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1978 ANNUAL REPORT OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION






Ill

LETTER OF TRANSMITTAL

FEDERAL DEPOSIT INSURANCE CORPORATION
Washington, D.C., November 26, 1979

SIRS: In accordance with the provisions of section 17(a) of the Federal
Deposit Insurance Act, the Federal Deposit Insurance Corporation is
pleased to submit its annual report for the calendar year 1978. This report
is a reprint of the report issued on March 15, 1979, expanded to include
bank merger decisions, statistical tables and other updated information
pertinent to the operations of the Corporation.

Very truly yours,

Irvine H. Sprague
Chairman

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




IV




FEDERAL DEPOSIT INSURANCE CORPORATION

V

FE DE RA L DEPOSIT INSURANCE C OR POR ATI ON

BOARD OF DIRECTORS

Acting Chairman..................................................................................John G. Heimann
Director ..................................................................................................William M. Isaac
Comptroller of the Currency.............................. ............................John G. Heimann
OFFICIALS

Deputy to the Chairman..................................................................Lewis G. Odom, Jr.
Special Assistant to the Chairman ..........................................Sherwin R. Koopmans
Special Assistant to the Chairman ..................................................Douglas H. Jones
Special Assistant to the Chairman ....................................................Leonard Lapidus
Special Assistant to the Chairman ........................................................Harold Nathan
Assistant to the Chairman..........................................................Alfred H. Teichler, Jr.
Assistant to the Director..........................................................................Edwin B. Burr
Special Assistant to the Director..................................................David B. Jacobsohn
Special Assistant to the Director............................................................Alison L. Falls
Assistant to the Director (Comptroller of the Currency)..................David C. Motter
Executive Secretary....................................................................................Alan R. Miller
Director; Division of Bank Supervision ....................................................John J. Early
Acting General Counsel........................................................................Reford J. Wedel
Controller ................................................................................................James A. Davis
Director, Division of Liquidation ............................................................George W. Hill
Director, Division of Management Systems
and Financial Statistics...................................................................Robert P. Rogers
Director o f Research ....................................................................Stanley C. Silverberg
Director, Office of Corporate Audits ................ ..........................Robert D. Hoffman
Acting Director, Office of Consumer Affairs
and Civil Rights..............................................................................Carmen J. Sullivan
Director, Office of Personnel Management......................................Jack C. Pleasant
Director, Office of Employee Relations ..................................................Joe S. Arnold
Assistant to the Board of Directors..................................................Sydney S. Sterns




December 31, 1978

VI

FEDERAL

D EPO SIT

IN S U R A N C E

C O R P O R A T IO N

R E G IO N S

Regional Directors
Atlanta
Lewis C. Beasley
233 Peachtree St., N.E. Suite 2400
Atlanta, Georgia 30303
Boston
Anthony S. Scalzi
60 State Street, 17th Floor
Boston, Massachusetts 02109
Chicago
W. Harlan Sarsfield
233 South Wacker Drive, Suite 6116
Chicago, Illinois 60606
Columbus
Vacant
1 Nationwide Plaza, Suite 2600
Columbus, Ohio 43215
Dallas
Quinton Thompson
350 North S t Paul Street, Suite 2003
Dallas, Texas 75201
Kansas City
Robert V. Shumway
2345 Grand Avenue, Suite 1500
Kansas City, Missouri 64108
Madison
James E. Halvorson
1 South Pinckney Street, Room 813
Madison, Wisconsin 53703

Memphis
Roy E. Jackson
1 Commerce Square, Suite 1800
Memphis, Tennessee 38103
Minneapolis
Robert P. Gough
730 Second Avenue South, Suite 266
Minneapolis, Minnesota 55402
New York
Bernard J. McKeon
345 Park Avenue, 21st Floor
New York, New York 10022
Omaha
Burton L. Blasingame
1700 Farnam Street, Suite 1200
Omaha, Nebraska 68102
Philadelphia
James L. Sexton
5 Penn Center Plaza, Suite 2901
Philadelphia, Pennsylvania 19103
Richmond
John Stathos
Eighth & Main Building, Suite 2000
707 East Main Street
Richmond, Virginia 23219
San Francisco
Charles E. Doster
44 Montgomery Street, Suite 3600
San Francisco, California 94104
December 3 1 ,1 97£

FEDERAL

DEPOSIT

Main

550

Office:




17th

INSURANCE

Street,

CORPORATION

N. W„ W a s h i n g t o n , D. C.

20429

VII

CONTENTS
Chairman's statem ent................................................................
PART ONE
OPERATIONS OF THE CORPORATION
Administration of the Corporation.........................................................
Supervision of Banks.............................................................................
Bank Closings and Liquidation Activities...............................................
Consumer and Civil Rights Protection...................................................
Finances of the Corporation..................................................................

xi

3
5
17
23
26

PART TWO
ENFORCEMENT PROCEEDINGS
Actions to terminate insured status.......................................................
Cease-and-desist actions........................................................................

37
37

PART THREE
MERGER DECISIONS OF THE CORPORATION
Bank absorptions approved by the Corporation.................................. 47
Bank absorptions denied by the Corporation........................................ 103
PART FOUR
REGULATIONS AND LEGISLATION
Legislation— 1978 .................................................................................
Rules and regulations.............................................................................

113
114

PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number of banks and branches............................................................ .120
Assets and liabilities of b a nks.............................................................. .141
Income of insured banks.........................................................................165
Banks closed because of financial difficulties; FDIC income,
disbursements, and losses.................................................................. .181




VIII

TABLES
NUMBER OF BANKS AND BRANCHES:
Explanatory note....................................................................................................... 120
101. Changes in number and classification of banks and branches in the
United States (States and other areas) during 1 9 7 8 ............................ 122
102. Changes in number of commercial banks and branches in the United
States (States and other areas) during 1978, by State........................ 124
103. Number of banking offices in the United States (States and other areas),
December 31, 1978

Banks grouped by insurance status and class of bank, and by State
or area and type of office ....................................................................

126
104. Number and assets of all commercial and mutual savings banks in the
United States (States and other areas), December 31, 1978
Banks grouped by class and asset size .............................................. 135
105. Number, assets, and deposits of all commercial banks in the United
States (States and other areas), December 31, 1978
Banks grouped by asset size and State .............................................. 136
ASSETS AND LIABILITIES OF BANKS:
Explanatory note.......................................................................................................
106. Assets and liabilities of all commercial banks in the United States (States
and other areas), June 30, 1978
Banks grouped by insurance status and class of bank ....................
. 107. Assets and liabilities of all commercial banks in the United States (States
and other areas), December 31, 1978
Banks grouped by insurance status and class of bank ....................
108. Assets and liabilities of all mutual savings banks in the United States
(States and other areas), June 30, 1978, and December 31, 1978
Banks grouped by insurance status ....................................................
109. Assets and liabilities of insured commercial banks in the United States
(States and other areas), December call dates, 1973-19 78 ..............
110. Assets and liabilities of insured commercial banks (domestic and foreign
offices), United States and other areas, 1973-19 77 ..........................
110A. Assets and liabilities of insured commercial banks (domestic and
foreign offices), United States and other areas, December 31, 1978 ..
111. Assets and liabilities of insured mutual savings banks in the United
States (States and other areas), December call dates, 1 9 7 3-19 78 ..
112. Percentages of assets, liabilities, and equity capital of insured commer­
cial banks operating throughout 1978 in the United States (States and
other areas), December 31, 1978
Banks grouped by amount of assets ..................................................
113. Percentages of assets and liabilities of insured mutual savings banks
operating throughout 1978 in the United States (States and other
areas), December 31, 1978
Banks grouped by amount of assets ..................................................
114. Distribution of insured commercial banks in the United States (States
and other areas), December 31, 1 9 7 8 ....................................................



141

143

146

150
152
155
156
158

160

161
162

IX

INCOME OF INSURED BANKS:
Explanatory note........................................................................................................
115. Income of insured commercial banks in the United States (States and
other areas), 1 9 7 3 -1 9 7 8 ..........................................................................
116. Ratios of income of insured commercial banks in the United States
(States and other areas), 19 7 3 -1 9 7 8 ....................................................
117. Income of insured commercial banks in the United States (States and
other areas), 1978
Banks grouped by class of bank..........................................................
118. Income of insured commercial banks operating throughout 1978 in the
United States (States and other areas)
Banks grouped by amount of assets ..................................................
119. Ratios of income of insured commercial banks operating throughout
1978 in the United States (States and other areas)
Banks grouped according to amount of assets..................................
120. Income of insured mutual savings banks in the United States (States and
other areas), 1 9 7 3 -1 9 7 8 ..........................................................................
121. Ratios of income of insured mutual savings banks in the United States
(States and other areas), 1973-19 78 ....................................................
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:
FDIC INCOME, DISBURSEMENTS, AND LOSSES
Explanatory note........................................................................................................
122. Number and deposits o f banks closed because o f financial difficulties,
1934-19 78 ................................................................................................
123. Insured banks requiring disbursements by the Federal Deposit Insurance
Corporation during 1978 ..........................................................................
124. Depositors, deposits, and disbursements in failed banks requiring dis­
bursements by the Federal Deposit Insurance Corporation, 19341978
Banks grouped by class of bank, year of deposit payoff or deposit
assumption, amount of deposits, and State ......................................
125. Recoveries and losses by the Federal Deposit Insurance Corporation on
principal disbursements for protection of depositors, 1 9 34-19 78 . . .
126. Analysis of disbursements, recoveries, and losses in deposit insurance
transactions, January 1, 1934-December 31, 1 9 7 8 ............................
127. Income and expenses, Federal Deposit Insurance Corporation, by year,
from beginning of operations, September 1 1 ,1 9 3 3 , to December 31,
1978 ............................................................................................................
128. Protection of depositors of failed banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934-19 78 ............................
129. Insured deposits and the deposit insurance fund, 1 934-19 78 ..............




165
168
170

171

173

175
177
179

181
183
184

185
188
189

190
191
192

X

BACKGROUND
The Federal Deposit Insurance Corporation came into being during
the economic and banking crises of the early 1930s, when thousands
of banks were forced to close their doors. For over a century, it had
proved impossible to overcome the impact of bank failures on
noteholders and depositors. A number of States had tried various
forms of insurance or guaranty plans, some with fair success, but all
of these had become inoperative by 1933. While during the period
1886-1933 numerous attempts were made to provide insurance pro­
tection to bank depositors on a national rather than statewide basis, it
took the severe depression of the 1930s to convince the people of
the nation that positive measures were required to eliminate the dis­
astrous losses associated with bank failures.
The Federal Deposit Insurance Corporation was created by the
Banking Act of 1933 to protect depositors in the nation's banking
system, and to promote safe and sound banking practices. The Cor­
poration accomplishes these purposes through a program of Federal
deposit insurance and through the regulation and supervision at the
Federal level of the more than 8,500 FDIC-insured State-chartered
banks that are not members of the Federal Reserve System.
Incorporated banks and trust companies that are engaged in the
business of receiving deposits may participate in Federal deposit
insurance. This insurance is mandatory for national banks and State
bank members of the Federal Reserve System. Of the 15,205 banks
in operation in the United States at year-end 1978, including com­
mercial banks and mutual savings banks, about 97 percent were
insured by the FDIC.
Each depositor in an insured bank is protected by Federal deposit
insurance on the aggregate of all deposits held in the same right and
capacity up to the maximum limit provided by the Federal Deposit
Insurance Act. The maximum was $2,500 when Federal deposit
insurance became effective on January 1, 1934. Over the 44-year life
of the deposit insurance program, the amount has been increased
several times, with the most recent increase becoming effective on
November 27, 1974, when the general limit was raised to $40,000.




XI

CHAIRMAN'S STATEMENT
An im provem ent in the nation's
general econom ic condition during
1978 resulted in a strengthening of the
banking system. Preliminary p ro fit
figures indicate a recovery by many
banks from the depressed levels of the
1974-76 period. Industry improvement
was reflected by the decline in the
number o f banks on the FDIC's
problem list. Also, seven insured banks
failed in 1978, continuing the decline
begun in 1977 from the large number
of failures in 1975 and 1976.
Maintaining the safety and sound­
ness of the banking system is a primary
function of the FDIC. While the FDIC's
activities in carrying out this function
have grown as banks have grown in
size and expanded their services, it also
has been given responsibilities fo r
enforcing compliance by banks with an
increasing number of laws designed to
protect consumers and to safeguard
equal opportunities and civil rights.
The FDIC's supervisory role was
expanded greatly in 1978 by the
enactment of tw o new laws— the Inter­
national Banking A ct of 1978 and the
Financial Institutions Regulatory and
Interest Rate Control A ct of 1978.The
International Banking Act provides for
Federal regulation of foreign banking
activities in domestic financial markets.
The Financial Institutions Regulatory
and Interest Rate Control A ct covers
several subjects relating to commercial
and mutual savings banks, savings and
loan associations, and credit unions.
Among the provisions of the act most
relevant to the FDIC are the expansion
of the FDIC's enforcement powers,
restrictions on loans by banks to their
insiders, prohibitions on certain bank
management interlocks, the authority
over the establishment and operation
of foreign branches by insured State
nonmember banks, the authority to dis­
approve changes in control of insured
State nonmember banks, and the rais­



ing of the deposit insurance limit on
time and savings deposits in Individual
R e tire m e n t A c c o u n ts and Keogh
accounts to $100,0 00.
Several regulations of major signifi­
cance to banks and their depositors
were issued during the year. The
automatic transfer of funds from sav­
ings to checking accounts maintained
in the same institution was authorized.
Regulations governing savings and
time deposits were amended to author­
ize the issuance of 6-m onth "money
m arket" certificates of deposit and 8year certificates paying a maximum of
7 -3 /4 percent for commercial banks.
The payment of interest on Treasury
Tax and Loan Accounts was also
authorized.
The Board in conjunction with the
other Federal banking supervisory
agencies has sought to obtain unifor­
mity in many regulations applicable to
all types of banks, and in some cases to
all types of depository financial institu­
tions. A number of uniform regulations
and procedures were adopted during
the past year, among them uniform rat­
ing systems for bank condition and
electronic data processing and trust
operations, guidelines for enforcing
truth-in-lending laws, and f actors fo r
evaiuating^country risk in fo re ig rijoans.
The Board has also sought, wherever
statutes permit, to simplify regulations
and paperwork and, if possible, to
avoid the im position o f additional
regulations.
The recent emphasis on consumer
protection, equal opportunities, and
civil rights continued in 1978. As a
result, an increasing amount of the
C orporation's resources has been
devoted to these activities. Regulations
were adopted late in the year to carry
out the provisions of the Community
Reinvestm ent Act. New regulations
also were adopted relating to the
FDIC's enforcement of the Fair Housing
A ct and the Equal Credit Opportunity

XII

FEDERAL DEPOSIT INSURANCE CORPORATION

Act, as it affects the home mortgage
market. Some major studies are under­
way to assess the impact and effec­
tiveness of some of the consumer pro­
tection laws. They include a study on
the Home Mortgage Disclosure Act and
another on mortgage market trends in
Brooklyn, New York. The study of the
Home Mortgage Disclosure A ct is a
comprehensive one being funded joint­
ly by the FDIC and the Federal Home
Loan Bank Board. The m ortgage
market study of Brooklyn will analyze
real estate transactions from 1969 to
1978. Examiners will use these data
when conducting Community Rein­
v e s tm e n t A c t e xam in a tio n s, and
economic analysis will attempt to ex­
plain trends in this market.
The examination process continues
to be a focal point of FDIC regulatory
activities; however, the examination
perspective has changed in response to
the changing banking industry and
r e g u la to r y e n v ir o n m e n t. M o re
emphasis is being placed on manage­
ment policies of banks and the effec­
tiveness of director oversight and less
time is being directed to physical
verification of assets held by banks.
D ire c t c o m m u n ic a tio n w ith bank
boards by the examining staff has
increased, particularly in problem bank
situations. Examination priorities have
been established so that large banks or
banks that present supervisory prob­
lems are examined more frequently and




extensively than small banks or banks
that do not present problems.
U tiliz in g c o n d itio n and incom e
reports submitted by banks, financial
analysts at the FDIC monitor bank per­
fo rm a n c e betw een exam in a tio n s
through a computerized information
system. This system compiles data that
permit an analyst to evaluate a bank's
current condition.
Finally, exam inations have been
specialized due to the increasing scope
of examinations and growth in tech­
nology and size of banks. Thus, the
examination process has evolved from
one report to a number of specialized
examinations. Electronic data process­
ing, trust, and consumer protection and
civil rights compliance examinations
have been added in recent years.
Over the years the Corporation's
expanding activities have reflected the
changes in the banking and regulatory
environment. We at the FDIC feel that
our organization has responded rapidly
and effectively to these changes and
are confident of our ability to do so in
the future.

John G. Heimann
Acting Chairman

[Ill I
111

I I

iiiiuii
mum
OPERATIONS OF THE CORPORATION



PART ONE




3

ADMINISTRATION OF
THE CORPORATION
Board of Directors. The FDIC is
headed by a three-member Board of
Directors, including the Comptroller of
the Currency who acts as an ex-officio
member. Two of the directors are
appointed by the President with the
advice and consent of the Senate for
6-year terms, and one of those direc­
tors is elected Chairman by the Board.
The Comptroller is also appointed by
the President, but for a 5-year term. As
required by law, Mr. John G. Heimann,
Comptroller of the Currency, became
the acting Chairman on August 16,
1978, following the retirement of Mr.
George A. LeMaistre. Mr. LeMaistre had
served as a member of the Board since
August 1, 1973 and as Chairman since
June 1, 1977. Mr. William M. Isaac was
appointed as a member of the Cor­
poration's
Board
of Directors on
March 28, 1978. The remaining posi­
tion on the Board was vacant at yearend.
Organizational changes. On Febru­
ary 16, 1978, the Board of Directors
established a Budget and Management
Committee. The committee is responsi­
ble fo r reviewing existing and proposed
projects, programs, and routine operat­
ing procedures, in terms of (1) the Cor­
poration's mission and objectives, (2)
cost effectiveness, (3) impact within
and outside the Corporation, and (4)
urgency and priority of resource alloca­
tions. The committee consists of the
Deputy to the Chairman, the principal
assistants to the other tw o members of
the Board, the Controller, the Executive
Secretary, and the General Counsel.
On April 25, 1 9 78 , the Board
adopted a resolution creating the
Office of Congressional Relations. This
office is responsible for congressional
and legislative relations and related



matters, and such other matters as
may be designated by the Chairman
and the Board of Directors. The office,
which reports directly to the Board,
was staffed by reassignment of certain
positions and employees previously
assigned to the Executive Office and
Legal Division. On May 30, 1978, the
Board dissolved the Office of Corpor­
ate Planning and the responsibilities of
that office were assumed by the Divi­
sion of Research, the Budget and
Management Com m ittee, and the
Office of the Controller.
Employees. The total employment
of the Corporation increased by 82 in
1978 to a year-end total of 3,773.
Approximately 70 percent of the Cor­
poration's employees were assigned to
the Division of Bank Supervision, and
about 74 percent of that division's
employees were field bank examiners.
During the year, the number of com­
missioned examiners rose by 115 to a
total of 1,138 at year-end. The turn­
over rate for field examiners was 8.0
percent compared to 8.2 percent in
1977. Of the 158 examiners who left
the FDIC during the year, 40 found
employment in banks. The turnover
rate for all employees excluding tem ­
porary personnel and college students
participating in the cooperative workstudy program was 16.6 percent in
1978, compared to 11.2 percent in
1977.
The percentage of women in the
C o r p o r a tio n 's g e n e ra l s c h e d u le
w orkforce increased from 28.8 percent
as of December 31, 1977, to 30.0 per­
cent as of December 3 1 ,1 9 7 8 . During
the same 12-month period, the per­
centage of minorities rose from 13.1
percent to 13.8 percent. Continued
progress is evident in the recruitment
o f women and minorities for positions
as bank examiners. As of December

4

FEDERAL DEPOSIT INSURANCE CORPORATION
NUMBER OF OFFICIALS AND EMPLOYEES
OF THE FEDERAL DEPOSIT INSURANCE CORPORATION
DECEMBER 31, 1977 AND 1978

Unit

Total.............................................
Directors.....................................
Executive O ffic e s .....................
Legal D ivision...........................
Division of Bank Supervision ..
Division of Liquidation.............
Division of Management
Systems and Financial
S ta tistics ...............................
Division of Research.................
Office of Congressional
Relations...................................
Office of the Controller............
Office of Corporate Audits
Office of Consumer Affairs
and Civil Rights.......................
Office of Employee Relations ..
Office of Personnel
Management...........................

Total
1978
1977
3,773*
2
44
105
2,648
459

3,691*
2
54**
104
2,564
479

Washington
office
1978
1977

Regional and
field offices
1978
1977

1,201
2
44
86
376
194

1,183
2
54
87
372
195

2,572
0
0
19
2,272
265

2,508
0
0
17
2,192
284

191
31

191
17

191
31

191
17

0
0

0
0

5
186
34

0
178
30

5
170
34

0
163
30

0
16
0

0
15
0

13
9

11
9

13
9

11
9

0
0

0
0

46

52

46

52

0

0

'Includes nonpermanent employees on short-term appointment or when actually employed: 528 in
1978 and 511 in 1977. Nonpermanent employees include college students participating in the
work-study program, clerical workers employed on a temporary basis at banks in process of
liquidation, and other personnel.
"Includes employees in the Office of Corporate Planning, which was dissolved in 1978.

31, 1977, 9.3 percent and 5.5 percent
o f the examiner w orkfo rce were
respectively women and minorities; by
December 31, 1978, those percen­
tages had increased to 10.9 percent
and 6.0 percent.
Late in 1978, the FDIC adopted
amendments to its regulations dealing
with actual or apparent conflicts of
interest by its employees. In general,
these amendments (1) prohibit senior
policym akers from obtaining credit
from banks or affiliates of banks pri­
marily supervised by the FDIC, (2)
establish guidelines for ownership of
bank-related securities, (3) eliminate
disclosure requirem ents fo r certain
fin a n c ia l in te re s ts ow ned by an
employee's spouse or dependents, (4)



g re a tly increase the num ber o f
employees required to file disclosure
sta te m e n ts, (5) e sta b lish fo rm a l
guidelines for processing these state­
ments, and (6) unite in one regulation
the various disclosure systems used by
the FDIC.
During 1978, four petitions to serve
as e xclu sive re p re se n ta tive s fo r
b a rg ain ing u n its o f C o rp o ra tio n
employees were filed with the Depart­
ment of Labor by labor organizations.
By year-end 1978, tw o bargaining
units of bank examiners and one unit of
clerical employees were represented by
a labor organization, tw o of which were
added during the year; tw o petitions
fo r representation o f other units
remained pending.

5

SUPERVISION OF BANKS

SUPERVISION OF BANKS
The FDIC has some supervisory
authority over all insured banks, but its
primary supervisory responsibilities are
for insured State-chartered banks that
are not members o f the Federal
Reserve System (insured State non­
member banks). As of December 31,
1978, there were 9,152 insured non­
member commercial and mutual sav­
ings banks with assets of $453.6 bil­
lion. These banks accounted for 60.2
percent of all the nation's banks and
30.5 percent of the assets of all banks
in the United States.
Exam ination a c tiv itie s . The FDIC's
examination policy takes into account
examination priorities, frequency, and
scope, and specifies areas where the

FDIC Regional Directors may use dis­
cretion while still maintaining a unifor­
mity of approach. Banks with known
supervisory or financial problems are
given first priority and receive a fullscale examination by the FDIC at least
once every 12 months. Large banks
(commercial banks w ith assets of
$ 1 0 0 million or more and mutual sav­
ings banks with assets of $5 0 0 million
or more) that do not present superviso­
ry or financial problems receive a fullscale examination during each 18month period. For smaller banks, a
modified examination may be alter­
nated with a full-scale examination if
the banks do not present supervisory or
financial problems and meet criteria
indicating satisfactory management,
adequate capital, acceptable fidelity

BANK EXAMINATION ACTIVITIES OF
THE FEDERAL DEPOSIT INSURANCE CORPORATION
IN 1977 AND 1978
Activity

Number
1978

1977

Bank examination activities - total...................................

20,248

21,746*

Safety and soundness examinations.............................
Regular examination of insured banks
not members of Federal Reserve System.................
Re-examinations..............................................................
Other examinations.................................................. .

6,961

7,473

6,745
149
67

7,265
181
27

Consumer protection examinations...............................

6,684

7,061

Examinations of departm ents.........................................
Trust departments............................................................
Data processing facilities................................................

2,092
1,387
705

2,162
1,425
737

Investigations......................................................................

2,755

3,007

Application review s..........................................................
New banks: State banks members of
Federal Reserve System.........................
New banks: Banks not members of
Federal Reserve System...............................................
New branches..................................................................
Mergers and consolidations.............................................
Other..................................................................................

1,756

2,043

26

9

136
877
103
614

160
931
122
821

*This total does not agree with the total shown in the 1977 Annual Report (27,502) because of a
new table format. For more meaningful reporting, the number of branches examined (7,314) was
deleted and the number of examinations of data processing facilities (237) and certain application
reviews (821) were added.




FEDERAL DEPOSIT INSURANCE CORPORATION

S U P E R V IS O R Y C L A S S E S OF B A N K S IN T H E
U N IT E D S T A T E S , D E C E M B E R 31, 1978
C o m m erc ial B an ks and M u tu a l Savings B anks




N U M B E R OF B A N K S

A S S E T S OF B A N K S

7

SUPERVISION OF BANKS

coverage, good earnings, and adequate
internal routine and controls. To
increase director participation in the
supervisory process, the examiner-incharge meets with either the board of
directors or an appropriate committee
o f th e board at each fu ll-s c a le
examination, and more often if neces­
sary. The Regional Director or his
designated representative participates
in the meetings if the banks has been or
may be form ally designated as a
problem bank.
The C o rp o ra tio n also re vie w s
Reports of Examination for national
and State-chartered banks that are
members o f the Federal Reserve
System (State member banks). The
reports for large banks that are not of
special s u p e rv is o ry concern are
reviewed annually and the reports for
smaller banks are reviewed at least
once every 3 years. Examination
reports of banks that are of special
concern, regardless of deposit size, are
reviewed as soon as they are made
available. Reports on the condition of
bank holding companies, prepared by
the Federal Reserve, are also reviewed
regularly.
For the past several years, the Cor­
poration has participated with various
S ta te b a n k in g d e p a r tm e n ts in
programs that share or reduce routine
examination activities. In 1978 the
Corporation entered into a Divided
Examination Program with the States
of Missouri and New Jersey. That
program was initiated in Georgia in
1977 and continued there in 1978.
Under the program, problem banks,
other banks in need of special supervi­
sion, and large banks are examined by
both the FDIC and the State supervisor
at least once each year. Examinations
of the remaining banks are divided be­
tween the State supervisor and the
FDIC and the supervisors alternate
examination of these banks annually.
Either supervisor may modify or cancel




the divided examination arrangement
w ithout prior notice.
Problem banks. The general decline
in the number of banks on the FDIC's
list o f problem banks, w hich had
peaked at 385 in November 1976,
continued through 1978. A fter remain­
ing relatively steady during the first few
months of the year, the list of problem
banks declined to 342 by year-end
1978, a net reduction of 26 for the
year. The continued reduction of the
number of problem banks reflected the
improvement in the economy and, in
particular, the continuing improvement
in the real estate sector and improved
agricultural prices, areas that had
caused problems for many banks in the
recent past.
The problem bank list is far from
static and most banks do not remain on
the list very long. During 1978, 192
banks were removed from problem
status, while 166 banks were added to
the list. Problems in the newly desig­
nated problem banks included lack of
adequate liquidity, asset deficiencies
re su ltin g

fro m

m ism a na ge m e nt or

insider abuses, poor earnings, and
inadequate capital. Of those banks on
the list at the end of 1978, 50 percent
had been in problem status for 18
months or less, while only 23 percent
had been on the list for more than 3
years.
In light of the FDIC's role as the
insurer of bank deposits, the FDIC
problem list includes national banks
and State member banks as well as
nonmember insured banks. There is
some overlap between those banks
considered by the Comptroller of the
Currency and the Federal Reserve to be
in need of close supervision and the
banks on the FDIC's problem bank list,
but not all banks being closely super­
vised by the Comptroller of the Curren­
cy and the Federal Reserve are on the
FDIC's problem list. Many of those

8

FEDERAL DEPOSIT INSURANCE CORPORATION

banks are strictly supervisory problems
and do not represent an undue risk to
the Corporation's insurance fund. The
FDIC Regional Offices maintain similar
lists of banks in need of close supervi­
sion but not formally designated as
problems by the Corporation.
For purposes of insurance risk
exposure, the FDIC list divides the
problem banks into three categories:
Serious Problem - Potential
Payoff: An advanced serious problem
situation with an estimated 50 percent
chance or more of requiring financial
assistance from the FDIC.
Serious Problem: A situation
that threatens ultimately to involve the

FDIC in a financial outlay unless drastic
changes occur.
O ther P roblem : A situation
wherein a bank contains significant
weaknesses but where the FDIC is less
vulnerable. Such banks require more
than ordinary concern and aggressive
supervision.
A review of the problem bank list
since year-end 1973 indicates that
about 30 percent of the banks that at
one time or another were considered
S erious P ro b le m -P o te n tia l P a y o ff
ultimately did fail. An additional 10 per­
cent were merged with other banks
without financial assistance from the
Corporation. Financial assistance from

N U M B E R OF PRO BLEM B A N K S
1 9 7 0 -1 9 7 8
Number of B anks
4 0 0 ------------------




SUPERVISION OF BANKS

the Corporation was received by 2 per­
cent. Fifty percent received a less
severe rating or were removed from
problem status. The tw o most serious
categories accounted for 93 of the
problem banks at year-end 1978,
down from 112 at the end of 1977.
The number of problem banks at
year-en d 1 9 7 8 broken d ow n by
deposit size was:
Deposit size

Less than $25 million
$ 2 5 -$ 5 0 million
$ 5 0 -$ 100 million
$ 1 0 0 -$ 5 0 0 million
$5 0 0 million-$1 billion
Over$1 billion
TOTAL

N um ber
of banks

233
48
24
26
5
6
342

Banks on the problem list had total
deposits of $ 6 4 billion. The total num­
ber of banks on the problem list repre­
sented only about 2 percent of all the
banks insured by the FDIC.
During 1978 the FDIC expanded its
program of notifying the directors of
nonmember banks when their bank is
recommended for problem status, a
program that had been tried experi­
mentally in tw o regions during 1977.
Also, the examiner-in-charge and a
representative of the Regional Office
meet with the directors of a problem
bank at th e co n c lu s io n o f each
examination. This program is useful not
only in keeping the directors of
problem banks informed of the Cor­
poration's concern about their bank,
but also in pointing out the respon­
sibilities and duties of the directors in
developing and implementing correc­
tive programs.
Trust departm ents. A State non­
member bank wishing to operate a
trust department must receive the Cor­
poration's consent to exercise trust
powers. The Corporation supervised




9

2,01 7 trust departments in State non­
member banks, with 58 new ones
beginning operations, in 1978. Each of
these trust departments is regularly
examined by FDIC examiners.
Beginning in 1978, the annual
survey that trust departments submit
to the FDIC was revised to require that
banks report only those assets over
which they exercise investment discre­
tion. The objective of this change is to
provide more meaningful information
a b o u t the e x te n t o f in ve stm e n t
authority and control over trust and
agency assets administered by bank
trust departments.
Examiner training. The Corporation
has a well-established training program
directed tow ard maintaining highly
qualified examiners. Courses on such
subjects as bank examination funda­
mentals, examination of computerized
banks, accounting and auditing techni­
ques, financial analysis, and FDIC
policies and regulations are offered.
Content of these courses is updated
and new courses are frequently added
to the program in response to current
banking developments. In recent years,
extensive training on consumer protec­
tion laws and their enforcement has
been provided. In 1978, EDP training
was expanded to include a course in
mini-computers and a course in bank
analysis using externally available infor­
mation was added.
U niform supervision. The Corpora­
tion works with the other Federal bank­
ing agencies to develop to the extent
possible uniform supervisory policies
and procedures and to elim inate
unnecessary duplication of regulatory
e ffo rt. An Interagency Supervisory
Committee, which includes representa­
tives from the three Federal banking
agencies as well as the Federal Home
Loan Bank Board and the National
Credit Union Adm inistration, was

10

FEDERAL DEPOSIT INSURANCE CORPORATION

established in early 1 977 to coordinate
certain supervisory policies and pro­
cedures. The committee already has a
number of accomplishments, including
the establishment of uniform bank,
EDP, and trust rating systems; the con­
tinuation of a program for rating and
reviewing shared national credits (loans
of $ 2 0 million or more to one borrower
shared by tw o or more banks); agree­
ment upon a definition of a concentra­
tion of credit; the adoption of the
annual Trust Department Report and
the Country Exposure Report; and the
issuance of a joint policy statement and
the establishment of examination pro­
cedures covering improper or illegal
payments by banks and bank holding
companies.
The uniform interagency system for
rating the condition and soundness of
the nation's banks, adopted in 1978, is
based upon an evaluation by examiners
of five key measures of a bank's opera­
tion that reflect an institution's finan­
cial condition, compliance with banking
statutes and regulations, and overall
operating soundness. The specific
dimensions appraised are capital ade­
quacy, asset quality, management,
earnings, and liquidity. Based on its
summary rating, a bank is placed in one
of five groups, ranging from banks that
are sound in almost every respect to
those with weaknesses that require
immediate corrective action and con­
stant supervisory attention.
The agreement by the Federal bank
supervisory agencies on what con­
stitutes the main elements of a bank's
operation and condition, and on how
these elements can be combined into
an overall rating, provides a basis for
comparable appraisals by the agencies
of all of the nation's federally insured
banks. The adoption of the uniform rat­
ing system also makes possible more
meaningful reporting on the condition
of the nation's banking system to the
Congress and the public. The ratings



fo r individual insured nonmember
banks are confidential.
A new uniform interagency trust rat­
ing system also was implemented in
1978. Bank examiners assess a trust
d e p a rtm e n t's a d m in is tra tio n and
operations in such areas as the depart­
ment's management capabilities, the
soundness of the policies and pro­
cedures to carry out the department's
fiduciary obligations, the quality of ser­
vice rendered to the public, and the
effect of the department's activities on
the soundness of the bank. As in the
past, these ratings are considered con­
fidential by the banking agencies.
Financial In stitution s Regulatory
and Interest Rate Control A c t of
1978. Bank supervision in a number of
areas was affected by a comprehen­
sive act passed late in 1978. The
Financial Institutions Regulatory and
Interest Rate Control A ct of 1978
(FIRIRCA) expands the Federal financial
re g u la to ry agencie s' e n fo rc e m e n t
powers, imposes restrictions on lend­
ing to "bank insiders," and authorizes
the agencies to disapprove changes in
control of financial institutions. The
FIRIRCA also provides the FDIC with
authority over the establishment and
operation of foreign branches and
foreign bank acquisitions by insured
State nonmember banks. Other provi­
sions of the act that importantly affect
the FDIC are the raising of the deposit
insurance limit for time and savings
d e p o s its in In d ivid u a l R etire m e n t
Accounts and Keogh accounts from
$ 4 0 ,0 0 0 to $ 1 00,0 00, and the exten­
sion of the authority to establish ceil­
ings on interest rates paid by financial
in s titu tio n s on tim e and savings
deposits.
Interest rate regulations. The FDIC
amended its regulations to perm it
insured State nonmember banks to
transfer funds automatically from an

SUPERVISION OF BANKS

individual's savings account to a
checking or other account of the same
depositor. The FIRIRCA subsequently
imposed a limitation requiring that the
interest rate that could be paid on sav­
ings deposits from which automatic
transfers may be made was not to
exceed the maximum rate of interest a
commercial bank may pay on savings
deposits. The FDIC amended its regula­
tions to limit the maximum rate payable
by mutual savings banks on savings
deposits subject to automatic transfer
authorizations to not more than the
commercial bank rate.
Another amendment made in 1978
provides fo r a money market certificate
of deposit. This is a variable rate time
deposit of $ 1 0 ,0 0 0 or more w ith a
maximum rate equivalent to each
week's Treasury auction discount rate
on 6-m onth Treasury bills and w ith a
fixed term of 26 weeks. This deposit
category is designed to permit banks to
compete for short-term money market
funds.
The regulations were also amended
to provide for a new category of 8-year
time deposits w ith a 7 -3 /4 percent
maximum interest rate for commercial
banks and an 8 percent maximum for
mutual savings banks. Individual Retire­
ment Account, Keogh Plan, and public
unit time deposits were made eligible
for the 8 percent rate.
Effective May 1 1 ,1 9 7 8 , an amend­
ment was made to allow insured State
nonmember banks to pay interest on
Treasury tax and loan accounts (TTLs).
According to recent Treasury regula­
tions, interest must be paid on such
accounts that are in the nature of over­
night borrowings. In effect, the Treas­
ury regulations require payment of a
higher rate of interest than the rate
which normally may be paid on a
bank's short-term funds. The amend­
ment to the FDIC regulation has the
effect of exempting TTLs from the
interest rate restrictions in Section




11

329.10 by expanding the regulation's
exceptions to include obligations of
both the United States and its agen­
cies.
E n fo rce m e n t proceedings. Upon
finding that an insured State nonmem­
ber bank has operated in an unsafe or
unsound manner or has violated an
applicable law, rule, regulation, or w rit­
ten agreement entered into with the
FDIC, the FDIC may initiate a ceaseand-desist proceeding if the bank does
not correct the violations or unsound
banking practices. If the bank does not
observe a cease-and-desist order, the
FDIC may seek enforcement in a U.S.
District Court or it may initiate proceed­
ings to terminate deposit insurance.
Also, where an insured bank's condi­
tion has become unsound, the FDIC
may initiate proceedings to terminate
the bank's deposit insurance.
The FDIC may issue cease-anddesist orders under Sections 8(b) and
8(c) of the Federal Deposit Insurance
Act. During 1978, there were 51 such
actions authorized by the Board of
D ire c to rs w h ic h resulted in the
issuance of 26 final orders under Sec­
tion 8(b) and 5 temporary cease-anddesist orders under Section 8(c). In
addition, six final orders were issued
during the year covering the ceaseand-desist proceedings initiated during
1977. During 1978, the FDIC also
brought an enforcement action in the
appropriate United States D istrict
Court against one bank for violations of
a Section 8(b) order.
The C o rp o ra tio n has used its
authority to issue cease-and-desist
orders as a means to achieve correc­
tion of certain weaknesses in banks
more frequently in recent years. It first
used the authority in 1971 and from
1971 through 1975 issued 37 ceaseand-desist orders. In the last 3 years it
has issued 118 orders under Sections
8(b) and 8(c). For the first time the

FEDERAL DEPOSIT INSURANCE CORPORATION

12

FDIC issued a cease-and-desist order
during 1978 against a bank for the sole
purpose of correcting unsatisfactory
operations in the bank's trust depart­
ment operations. Four other ceaseand-desist orders were issued to cor­
rect violations of various consumeroriented laws and regulations. The
remaining 32 orders were issued pri­
marily fo r the purpose of correcting
unsatisfactory financial conditions or
management practices.
The FIRIRCA gives the Federal bank­
ing supervisors expanded authority to
issue cease-and-desist orders. In addi­
tion, it gives the banking supervisors
the power to levy fines of up to $1 ,000
per day on both banks and bankers for
certain violations.
The FDIC may initiate terminationof-insurance proceedings under Sec­
tion 8(a) o f the Federal Deposit
Insurance A ct if it finds that a bank has

been conducting its affairs in an unsafe
or unsound manner and is in an unsafe
or unsound financial condition. If a
bank does not correct deficiencies
noted by the FDIC within a prescribed
tim e period after notification, an
administrative hearing is held at which
the bank can respond to the Corpora­
tion's charges. If the charges are sub­
stantiated, the FDIC may terminate the
insured status of the bank. The deposi­
tors of the bank are then notified of the
termination, but each deposit (less sub­
sequent withdrawals) continues to be
insured for 2 years.
During 1978, the FDIC initiated
three term ination-of-insurance pro­
ceedings by issuing Findings of Unsafe
or Unsound Practices and Condition
and Orders of Correction. All three pro­
ceedings were still pending at year-end.
From 1934 to 1978, action was taken
under Section 8(a) against a total of

CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT
SPECIFIC UNSAFE OR UNSOUND PRACTICES OR VIOLATIONS
OF LAW OR REGULATIONS, 1976, 1977, AND 1978
1978

1977

1976

Actions authorized by Board of Directors...........................................

51

50

41

Actions in negotiation at end of y e a r..................................................

22

6

15

Cease-and-desist orders outstanding at beginning of year-total . . .
Section 8(b)...........................................................................................
Section 8(c)...........................................................................................

65
63
2

36
34
2

15
15
0

Cease-and-desist orders issued during year-total.............................
Section 8(b)...........................................................................................
Section 8(c).........................................................................................

31
26
5

39
31
8

26
21
5

Cease-and-desist orders issued in actions authorized in prior
year-total.............................................................................................
Section 8(b)...........................................................................................

6
6

13
13

3
3

Cease-and-desist orders term inated-total.........................................
Section 8(b)...........................................................................................
Section 8(c)...........................................................................................

32
28
4

23
15
8

8
5
3

Cease-and-desist orders in force at end of year-total.......................
Section 8(b)...........................................................................................
Section 8(c)...........................................................................................

70
67
3

65
63
2

36
34
2




SUPERVISION OF BANKS

243 banks, and 240 cases had been
closed at the end of 1978. In slightly
less than one-half of the closed cases,
corrections were made, and in most of
the other closed cases the banks were
absorbed by other insured banks or
ceased operations prior to the estab­
lishment of a date for deposit insurance
termination. In 15 cases, insurance was
terminated or the bank ceased opera­
tions following the fixing of a date for
insurance termination.
Under Section 8(e) of the Federal
Deposit Insurance Act, the FDIC may
remove an officer, director, or other
person participating in the manage­
ment of an insured State nonmember
bank if it determines that the person
has violated a law, rule, regulation, or
fin a l c e a s e -a n d -d e s is t o rd e r; has
engaged in unsafe or unsound banking
practices; or has breached his fiduciary
duty. The individual's action also must
involve personal dishonesty and entail
substantial financial damage to the
bank, or s e rio u sly p re ju d ice the
interests of the bank's depositors. The
FIRIRCA amended Section 8(e) to allow
for action where the individual has
re c e iv e d fin a n c ia l g a in o r has
demonstrated a willful or continuing
disregard for the safety and soundness
of the bank. During 1978, no removal
proceedings were initiated.
Section 8(g) of the Federal Deposit
Insurance A ct authorizes the Corpora­
tion to suspend or remove officers,
directors, and other persons participat­
ing in the affairs of insured State non­
member banks who are indicted for a
felony involving dishonesty or a breach
of trust. Three individuals were sus­
pended during 1978.
Bank control and insider transac­
tions. Insured State nonmember banks
must report to the FDIC any change in
the bank's outstanding voting stock
that will result in a change of control of
the bank. During 1978, 521 notices



13

were filed with the Corporation. In con­
nection with a change in control, an
insured bank must also report the
change or replacement of its chief
executive officer or any director occur­
ring within the subsequent 12-month
peiod.
The FIRIRCA gives the Corporation
and the other Federal banking agencies
the power to disapprove changes in
control of insured banks and bank
holding companies. Persons acquiring
control of an insured State nonmember
bank will be required to provide 60
days' prior written notice of their inten­
tions to the Corporation, including
detailed personal background and
financial data, contemplated organiza­
tional changes, and information relating
to the terms and financing of the pro­
posed acquisition. A fter considering
the views of the State supervisory
authority, the Corporation may disap­
prove the proposed acquisition on the
basis o f anticom petitive considera­
tions, or if the financial status, compe­
tence, experience, and integrity of the
acquiring persons or their management
might jeopardize the financial stability
of the bank or would prejudice the
interests of the depositors. In addition,
the reports required relating to changes
in chief executive officers and directors
occurring w ithin 12 m onths o f a
change in control have been expanded
by the 1978 legislation to include
information on past and present busi­
ness and professional affiliations.
The FIRIRCA also addresses many
of the areas covered by a special
survey of bank stock loans, loans to
officials and major shareholders of
other banks, and insider loans and
overdrafts, which was conducted at
the request of the U.S. Senate Banking
Com m ittee in October 1977. This
survey of all insured commercial banks,
conducted jointly by the three Federal
bank supervisory agencies, was com­
pleted in March 1978 and revealed that

14

FEDERAL DEPOSIT INSURANCE CORPORATION

in a small percentage of cases, a bank's
insiders, insiders of other banks, or
public officials were given special con­
sideration. The majority of instances of
preferential interest rates reported by
State nonmember banks had already
been identified during FDIC examina­
tions.
The FIRIRCA imposes restrictions on
lending to bank insiders of correspon­
dent banks. It prohibits loans or exten­
sions of credit to these individuals that
are not made on substantially the same
terms as those for comparable transac­
tions with other persons. The act also
places limits on borrowings from a
bank by its executive officers and
shareholders owning 10 percent or
more of its stock.

International banking. The Cor­
poration's involvement in the area of
in te r n a tio n a l b a n k in g in c re a s e d
markedly during 1978 and resulted in
new supervisory approaches to this
important segment of the banking
business. Much of the increase can be
traced to the FIRIRCA and the Interna­
tional Banking A ct of 1978, which
added significantly to the Corporation's
supervisory responsibilities.
Under the FIRIRCA, State nonmem­
ber insured banks must now obtain the
prior written consent of the Corpora­
tion before establishing or operating a
foreign branch, or before obtaining any
interest in a bank or other entity
organized under the laws of a foreign
country.
The International Banking A ct is
intended to provide a framework for
Federal supervision and regulation of
foreign banks operating in the United
States through branches, agencies, or
commercial lending companies in a
manner similar to domestic banks.
Specifically, it provides foreign banks
w ith the option o f establishing a
Federal branch, w ith the approval of
the Office of the Comptroller of the



Currency, in any State where the
establishment of a branch or agency is
not prohibited by State law and where
the bank does not presently have
State-chartered branches or agencies.
It gives the Corporation primary super­
visory responsibility for insured Statelicensed branches. This act also pro­
vides fo r interstate branching by
foreign banks under certain conditions.
Under the International Banking Act,
no foreign bank may establish or oper­
ate a Federal branch that receives
deposits of less than $ 1 0 0 ,0 0 0 w ith­
o u t o b ta in in g F e d e ra l d e p o s it
insurance. In States that require deposit
insurance for State-chartered banks,
State branches that receive deposits of
less than $ 1 0 0 ,0 0 0 must be insured.
An exemption from mandatory deposit
insurance may be granted, by the FDIC
in the case of a State-licensed branch
or by the Comptroller of the Currency
in the case of a Federal branch, if the
branch is not engaging in domestic
retail deposit activity. Foreign bank
branches that are not subject to man­
datory insurance may voluntarily apply
for Federal deposit insurance coverage.
In keeping with the objective of
striving toward a uniform approach to
common examination problems, the
th re e F ed e ra l b a n k in g a g e n c ie s
adopted procedures for evaluating and
commenting on country risk factors in
the international loan portfolios of U.S.
banks. Country risk in bank lending
refers to the possibility that economic,
political, or social conditions in a coun­
try might create a situation in which
borrowers in that country would be
unable to service or repay their debts to
foreign lenders in a timely manner.
Under the new system, examiners
will segregate country risk factors from
the evaluation of other lending risks
and will assess bank management's
ability to analyze and monitor country
risk in its international lending. The new
procedure will emphasize diversifica­
tion of exposure to individual countries

SUPERVISION OF BANKS

as the primary method of moderating
country risk in international portfolios.
Examiners will adversely classify a
bank's aggregate credits to a country
on the basis of country risk only when
there has been an interruption in debt
servicing or when such an interruption
is considered imminent. The commer­
cial credit risks in the bank's inter­
national portfolios will continue to be
assessed on an individual loan basis in
accordance with traditional standards
of credit analysis.
The Country Exposure Report is an
outgrowth of an experimental program
initiated by the three Federal bank
supervisory agencies in June 1977.
Due to the success of this program, the
agencies agreed to make the report
mandatory for any domestic bank with
a foreign branch, a foreign subsidiary,
or an Edge A ct or Agreement corpora­
tion and aggregate foreign claims in
excess of $ 20 million. This semi­
annual report is intended to capture
data on foreign credit activity of U.S.
banks in all countries, by type of bor­
rower and maturity of claims. Banks are
also required to report firm com m it­
ments to extend additional credit in any
country.

15

In response to the Corporation's
increased involvement in international
banking, a concerted effort has been
made to enhance the expertise of its
s ta ff in this area. A number of
examiners have attended specialized
courses and seminars designed to
increase their knowledge of interna­
tional banking activities. In 1979, it is
anticipated that the Corporation will
join with the other tw o Federal bank
supervisory agencies in a joint 2-week
international banking school with the
objective of making this program a
required course for examiners encoun­
tering international activities in their
bank examination work. The Corpora­
tion has also created a staff position in
its Washington Office with the specific
responsibility of focusing on interna­
tional activities of domestic banks and
domestic operations of foreign banks.
A p p lic a tio n s . State nonmember
banks must apply to the FDIC to obtain
deposit insurance. The Corporation's
approval is also required before an
insured nonmember bank may estab­
lish a new branch office or relocate an
existing office. The FDIC also rules on
merger transactions when the surviving
bank is to be an insured State non­

FDIC APPLICATIONS
1978

1977

Deposit insurance— ta l ....................................... .............
to
Approved.........................................................................................
Denied...............................................................................................

98
94
4

104
98
6

New branches (prior co n sent)-to tal............................... .............
Approved.........................................................................................
Branch....................................................................
Limited B ran ch.............................................................. ..........
Remote Service Facility .................................... ........
Denied............................................................. .............

1,055
1,045
680
162
203
10

974
969
691
194
84
5

M erg e rs *-to ta l.................................................................... .............
Approved............................................................................ ............
Denied.................................................................................. ............

70
65
5

76
72
4

’ Certain mergers undertaken as part of internal reorganizations not included.




16

FEDERAL DEPOSIT INSURANCE CORPORATION

member bank, or in any merger of an
insured bank with a noninsured institu­
tion. During 1978, the FDIC considered
98 applications for Federal deposit
insurance, including 36 from State
member banks which applied for con­
tinuation of their insured status follow ­
ing voluntary withdrawal of their mem­
bership from the Federal Reserve
System, and 1,055 applications to
establish new branches or operate
limited branch facilities. It acted on 70
m erger-type proposals, including 7
emergency cases, in 1978.
In a p p ro v in g or denying such
applications, the Corporation considers
such factors as the bank's financial
history and condition, its capital ade­
quacy, its future earnings prospects
and management, the needs of the
community to be served, and in a
merger or consolidation, the competi­
tive effects of the transaction. In addi­
tion, as required by the Community
Reinvestm ent A ct of 1977 w hich
became effective in 1978, the Cor­
poration also takes into account the
record of a financial institution in meet­
ing the credit needs of its community,
including low- and moderate-income
neighborhoods. A bank's poor perfor­
mance in meeting the credit needs of
its community may be grounds for
denial of an application.
Reports and surveys. In carrying
out its broad supervisory respon­
sibilities, the FDIC requires reports on
certain activities of insured nonmember
banks. The Corporation administers
and enforces the registration and
reporting provisions of the Securities
Exchange A ct of 1 934 with respect to
insured nonmember banks. The num­
ber of registered banks reporting to the
FDIC was 377 at year-end 1978 com­
pared to 357 the year earlier. State
nonmember banks acting as registrars
and transfer agents for certain classes
of securities must also register with the



Corporation. Late in 1978, amend­
ments to FDIC regulations made its
s e c u ritie s d isclo su re requirem en ts
substantially similar to those of the
Securities and Exchange Commission,
in accordance with Section 1 2(i) of the
Securities Exchange Act.
All federally insured banks are
required to file Reports of Income and
Condition with their respective Federal
bank supervisory agency. State non­
member banks and mutual savings
banks file their reports with the FDIC.
The FDIC may assess a penalty against
a bank for late filing of these reports. In
the first court challenge to a penalty
imposed under Section 7(a)(1) of the
Federal Deposit Insurance Act, a
Federal judge in Texas recently upheld
a $ 1 ,000 fine assessed against a
Texas bank. The court dismissed the
allegation that the Corporation's action
was arbitrary, capricious, and an abuse
o f d is c re tio n (Federal D eposit
Insurance Corporation v. The Bevans
State Bank of Menard' No. C A -6-78002 5 (N.D. Tex. Nov. 22, 1978)).
The Reports of Income and Condi­
tion for commercial banks were revised
at the end of 1978. As a result of these
revisions, which were made jointly by
the three Federal bank agencies, more
information will be provided on banks
with foreign offices. Also, for the first
time, small banks (those with less than
$ 1 0 0 million in total assets) could
choose to file shorter versions of the
Reports of Income and Condition. Revi­
sions to the Reports of Income and
Condition for mutual savings banks,
after being presented to the industry
for comments, were adopted at yearend and will go into effect with the
March 1979 reports.
In addition to its continuing surveys,
the Corporation in conjunction with the
Federal Reserve Board conducted
statistical sample surveys on money
market certificate activity and the auto­
mated transfer of funds from savings

BANK CLOSINGS AND LIQUIDATION ACTIVITIES

to checking accounts. Information from
these surveys is used by the Federal
Reserve Board to assess and monitor
the economic effect of these new
financial transactions. Also in 1978,
information on holdings of New York
City obligations and of Cleveland
obligations was requested from certain
banks.
Computerized analysis. The Inte­
grated Monitoring System (IMS) is a
c o m p u te riz e d in fo rm a tio n system
designed to monitor bank performance
between examinations and aid in the
exam ination process. Currently this
system is applied only to insured non­
member commercial banks, but it is
expected to be expanded to include
insured mutual savings banks in 1979.
From data submitted by banks in
their Reports of Condition and Income,
the IMS performs certain basic tests
which measure a bank's capital ade­
quacy, liquidity, asset and liability mix
and growth, and profitability. If a bank
fails one or more of the tests, additional
data are obtained for further analysis.
Where analysis indicates a potential
p ro b le m or a d v e rs e c o n d itio n ,
appropriate supervisory action is initi­
ated, such as a visitation or an early
examination. The system enables the
Corporation to identify with greater
accuracy banks, or particular aspects
of a bank's operation, that especially
m erit closer supervisory attention,
thereby facilitating a swifter and more
effective response by the Corporation.
In the coming year, the Comparative
Performance Report will serve to sup­
plem ent the Integrated M onitoring
System data given to FDIC examiners
and financial analysts. This report is a
revision of the Comparative Perfor­
mance Tables the FDIC sends to banks,
w hich show data based on their
Reports of Income and Condition. Many
of the changes in the report resulted
from the responses of nearly 4,300



17

bankers to a survey of their informa­
tional needs sent in early 1978.
In 1978 the Corporation's com ­
puterized on-line system was upgraded
to improve the speed and efficiency
w ith which examination and other bank
reports are edited and processed. The
system is designed to accommodate
additions, such as those required by
the new interagency uniform bank rat­
ing system, and modifications to the
exam ination and report form s. By
redesigning the com puterized bank
structure data base and the systems
fo r processing banks' Reports of
Income and Condition, and by installing
a new computer which processes data
three times faster than the model it
replaced, the Corporation is now able
to provide information more quickly to
the banking community.

BANK CLOSINGS AND
LIQUIDATION ACTIVITIES
Federal deposit insurance covers the
aggregate deposits of individuals and
businesses in each insured bank up to
$ 4 0 ,0 0 0 and, as provided by the
Financial Institutions Regulatory and
Interest Rate Control Act of 1978,
covers Individual Retirement Accounts
and Keogh accounts up to $100,000.
Time and savings deposits held by
government units (except deposits held
in out-of-State banks) are insured up to
$ 1 0 0 ,0 0 0 fo r each depositor. On
December 31, 1978, nearly 98 percent
of all commercial banks in the United
States and about 70 percent of all
mutual savings banks were covered by
Federal deposit insurance.
When an insured bank fails, the FDIC
has tw o principal methods available to
protect the depositors: the deposit
assumption method and the deposit
payoff method. In the 548 insured
bank failures that have required Cor­
poration disbursements since 1934,

FEDERAL DEPOSIT INSURANCE CORPORATION

DEPOSITS A N D LOSSES IN A LL IN S U R E D B A N K S
R EQ U IR IN G D IS B U R S E M E N T S BY FDIC, 1 9 3 4 -1 9 7 8
TOTAL DEPOSITS
$7.29* billion

DISBURSEMENTS BY FDIC*'
$5.07 billion

••Includes collections and disbursements by liquidators in the I,eld ($1.5 billion) which were previously excluded from this chart.




BANK CLOSINGS AND LIQUIDATION ACTIVITIES

244 were deposit assumption cases
and 304 were direct payoff cases. In a
deposit assumption case, the deposi­
to rs' accounts in the failed bank
becom e d e p o s it a cco u n ts in the
assuming bank. All depositors are
thereby afforded full protection with
minimal, or no, disruption of banking
services to the community. When the
deposit payoff method is used, the
FDIC pays directly to depositors the net
amount eligible for deposit insurance.
These payments begin usually within 5
to 7 days of the bank closing. Pay­
ments of the uninsured portions of
deposits are made from the proceeds
of liquidated assets and other sources.
The FDIC may also provide direct
assistance to an operating insured bank
in danger of failing to enable it to
remain open if that bank is essential to
maintain adequate banking services in
a community. It has provided such
assistance in four cases, most recently
in 1976.
In the 548 failed bank cases, 99.8
percent of the depositors had received
or were assured of payments of their
deposits in full at the end of 1978, and
99.8 percent of the total deposits had
been paid or made available to them. In
the 304 deposit payoff cases, more
than 98.8 percent of depositors had
received full recovery, and while the
recovery of uninsured deposits varies
b etw een in d iv id u a l cases, in the
aggregate almost 97 percent of total
deposits had been paid or made availa­
ble. About 70 percent of the total
amount already recovered by or made
available to depositors in deposit
payoff cases was provided by FDIC
payments of insured deposits, with
additional amounts provided from the
proceeds of liquidated assets, offsets
against indebtedness, and pledged
assets.
Bank fa ilu re s in 1 9 7 8 . Seven
insured banks ranging in deposit size



19

from about $1 million to about $608
million failed in 1978. The Corporation
used the direct payoff method in one
case and assisted sound banks to
assume the deposits of the other six
banks. The assuming banks paid
purchase premiums totaling $42.3 mil­
lion. The purchase premiums are added
to the capital cushion available to the
FDIC to absorb losses.
In the largest insured bank failure in
1978, the Corporation arranged an
assumption of the $607.6 million in
deposits of Banco Credito y Ahorro
Ponceno, Ponce, Puerto Rico— and for
the first time, the deposits of a failed
bank w ere d ivid e d betw een tw o
assuming banks. Banco Popular de
Puerto Rico, San Juan, acquired 36
offices comprising approximately tw othirds of the deposits of the failed bank
and also the bank's trust department.
The other 14 offices, including the
New York branch office, were taken
over by Banco de Santander-Puerto
Rico, San Juan. By allowing the two
purchasers to select those branches
which more closely fit their operations
and competitive requirements, sub­
s ta n tia l purchase prem ium s w ere
received, and the anticom petitive
effects of one very large bank acquiring
another were avoided.
The one statutory payout in 1978
was of the Watkins Banking Company
in Faunsdale, Alabama, a small bank
w ith less than 500 depositors. Virtually
all the deposits of approximately $1
million were either secured or within
the $ 4 0 ,0 0 0 FDIC insurance max­
imum.
L itigation on standby letters of
credit. A fter United States National
Bank failed in October 1973, the FDIC
arranged for Crocker National Bank to
assume approximately $1 billion in
deposit and other liabilities. However,
C ro cker did not assum e certain
standby letters of credit issued by

20

FEDERAL DEPOSIT INSURANCE CORPORATION

USNB to guarantee the debts of com­
panies dominated by C. Arnholt Smith
and his associates. Two holders of
such standby letters of credit, First
Empire Bank and Societe Generale,
sued the FDIC, maintaining that the
bank's obligations to them should have
been provided for in the same way as
those assumed by Crocker since they
were not associated with Smith. A
federal district court in California held
that the FDIC, in determining not to pay
those suspect letters of credit, had prop­
erly exercised the discretion granted to it

under Federal banking law. That decision
was appealed to the Ninth Circuit Court
of Appeals and was reversed in favor of
th e l e t t e r o f c r e d it h o ld e r s
[First Empire bank v. Federal Deposit
Insurance Corporation, 572 F.2d 1361
(9th Cir. 1978)). In October 1978, the
Supreme Court declined to review the
Ninth Circuit's opinion. The effect of
that denial is that the FDIC must pay
the amount due on the letters of credit
that were not assumed by Crocker. The
FDIC has provided for the liability in its
reserve for potential losses in litigation.

IN S U R E D B A N K F A IL U R E S
1 9 3 4 -1 9 7 8
Number of banks
8 0 -------------------------------------------------------------------------------------------------------

70 ■
[

I

Depo sit P a y o f f

Deposit Assumption
60-

50

40-

0

1
0

Ifflyy^^illillilCHr^r'nN n

ynUJi II
l J i]

\m m m m m m m m m m m rnm m m m m m m m m m nm i i n i i t it m m u m m m m n m m m m m m
1934

'36

'38

'40




'42

'44

'46

'48

'50

'52

'54

'56

'58

'60

'62

'64

'66

'68

70

72

74

76

78

21

BANK CLOSINGS AND LIQUIDATION ACTIVITIES
INSURED BANKS CLOSED DURING 1978 REQUIRING DISBURSEMENTS
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

Name and location

Date of
deposit payout
or assumption

Number of
depositors
or accounts

Amount of
deposits (in
millions of
dollars)

The Drovers' National Bank
of Chicago
Chicago, Illinois.......................

January 19, 1978

43,800

197.2

First Bank of Macon County
Notasulga, Alabama...............

January 26, 1978

2,919

3.8

Wilcox County Bank
Camden, Alabama...............

March 1, 1978

3,447

10.6

Banco Credito y Ahorro
Ponceno
Ponce, Puerto Rico.................

March 31, 1978

294,000

607.6

Watkins Banking Company
Faunsdale, Alabama...............

July 21, 1978

492

1.3

Banco de Ahorro de
Puerto Rico
San Juan, Hato Rey,
Puerto R ic o ...................

September 5, 1978

4,202

11.8

North Point State Bank
Arlington Heights, Illinois........

December 16, 1978

15,500

21.8

Liquidation a c tiv itie s . The Division
of Liquidation was handling 79 open
liquidation cases in 30 States, the
Virgin Islands, and Puerto Rico at yearend 1978. There were over 75,000
assets having a book value of more
than $2 billion to be liquidated.
A pproxim ately one-third o f these
assets were real estate related.
The FDIC's policy is to convert the
assets of closed banks to cash as early
as practical for distribution to the credi­
tors and stockholders and to realize a
maximum recovery through these
efforts. The Division of Liquidation
closed 31 transactions in 1978 involv­
ing bulk sales of assets totaling $2 02
million, setting an all-time collection
record for the division of $812.8 mil­
lion.
Sixty-six insured banks closed from
January 1, 1970, to December 31,



1978, involving total assets of approx­
imately $8 billion and total deposits of
approximately $5 billion. In the 46
purchase and assumption transactions,
new banks acquired approxim ately
$3.6 billion of assets at book value
from the FDIC, as receiver, which had
the effect of immediately recovering
those substantial am ounts fo r the
benefit of the creditors. For the same
period, the FDIC, as liquidator, collected
approximately $3.5 billion, in principal,
interest, and costs, from the remaining
assets. In addition, the Corporation
recovered $317 million from purchase
premiums paid by new banks for the
right to acquire the failed banks'
deposits and valuable banking loca­
tions.
T h e C o r p o r a tio n 's liq u id a tio n
expenses amounted to about $129
million versus collections of $3.5 bil­
lion for the period January 1, 1970,

22

FEDERAL DEPOSIT INSURANCE CORPORATION

to December 31, 1978. This repre­
sents a very favorable 3.7 percent ratio
of expenses to collections. Legal fees
for the same period amounted to 1.1
percent of collections. Both ratios are

exceptional when measured against
typical expenses and legal fee results in
bankruptcies.
R e c o v e ry f o r c r e d it o r s and
stockholders can also result in some

L IQ U ID A T IO N A C T IV IT Y
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 , 1 9 7 0 - 1 9 7 8
M illio n s of d o llars
2 ,7 0 0 -------—

----------------------------------------------------------------------------------------------------------------------------

2 ,4 0 0 -----------------------------------------------

BO O K VALUE
OF A S S E T S
2,100 ------------------------------------------------

1 ,8 0 0

1 ,5 0 0

1,200

900

600

300




CONSUMER AND CIVIL RIGHTS PROTECTION

cases from directors' liability actions
initiated by the receiver. Because many
bank closings are the direct result of
bank directors' failure to use reasona­
ble care in discharging their duties or
their allowance of violations of banking
laws, the FDIC normally investigates
potential negligence and files claims
against members of the bank's board
when such action is warranted. In
1 9 78, the FDIC filed 9 dire cto rs'
liability suits; at the end of 1978, 28
such suits were pending.
Whenever it is determined that the
bank suffered losses due to the fraudule n t and d is h o n e s t a c ts o f its
employees, the Corporation pursues a
claim against the bank's Bankers
Blanket Bond carrier. Most claims are
settled w ithout litigation; however, at
the end of 1978 there were 16 such
suits pending.

CONSUMER AND
CIVIL RIGHTS PROTECTION
The FDIC is responsible fo r enforc­
ing a growing number of consumer
protection and civil rights laws and
regulations w ith respect to insured
State nonmember banks. These laws
include the Truth in Lending Act, the
Fair Credit Reporting Act, the Real
Estate Settlement Procedures Act, the
Equal Credit Opportunity Act, the Fair
Housing Act, the Home Mortgage Dis­
closure Act, the Fair Debt Collection
Practices Act, and the Community
Reinvestment Act.
The FDIC carries out these enforce­
ment responsibilities primarily through
a program o f separate specialized
examinations directed solely to check­
ing fo r compliance with the various
laws and regulations. These examina­
tio n s are c o n d u c te d by tra in e d
examiner specialists at times other than
during the regular safety and sound­
ness examinations, with special follow up examinations or visitations as the



23

circumstances may require.
Violations or exceptions noted in the
c o m p lia n ce re p o rts are ro u tin e ly
followed up by the Regional Offices to
assure that corrective measures are
taken. If voluntary compliance cannot
be obtained by additional follow-up
exam inations, visitations, meetings
w ith the boards of directors of the
banks involved, or other means, the
Division of Bank Supervision or the
Office of Consumer Affairs and Civil
Rights may recommend that formal
enforcement action under Section 8(b)
of the FDI Act be initiated. During
1978, the FDIC's Board of Directors
issued four such orders involving in
whole or in part violations of consumer
protection or civil rights laws and
regulations.
Fair housing. A new FDIC regulation
became effective in m id-1978 that is
intended to provide a basis for a more
effective FDIC housing lending enfor­
cement program under the Fair Housing
and Equal Credit Opportunity Acts. The
regulation establishes recordkeeping
requirements for insured State non­
member banks with respect to inquiries
and applications for home loans. A
home loan is defined as any extension
of credit relating to the purchase, con­
struction, refinancing, im provem ent,
repair, or maintenance of a one- to
four-fam ily residential dwelling which
an applicant intends to occupy as a
principal residence and which is used
to secure the loan. All banks subject to
the regulation are required to request
and retain information on the name,
address, race, national origin, sex,
marital status, and age of persons who
inquire about or apply for home loans,
and on the location of the property to
be financed. If a bank is located within
a Standard M etropolitan S tatistical
Area (SMSA) and has assets of more
than $ 10 million, it is also required to
obtain extensive credit-related infor­
mation about the financial status of the

24

FEDERAL DEPOSIT INSURANCE CORPORATION

loan applicant and the characteristics
of the property involved and the loan
being requested.
The purpose of this data collection
effort is to provide a valid statistical
basis for detection of possible home
loan discrimination. The Corporation
began developing a computerized Fair
Housing statistical analysis system in
1978 to analyze the home loan inquiry
and application data maintained by
State nonmember banks. The relation­
ship between inquiries and applica­
tions, the relationship between suc­
cessful and unsuccessful applications,
and the loan terms granted to bor­
rowers will be categorized and com­
pared by the race, sex, age, and marital
status of inquirers and applicants. Use
of this system will not definitely estab­
lish the existence of illegal discrimina­
tion but should identify fo r FDIC
examiners those banks requiring more
extensive examination and follow-up
efforts.
M ortgage disclosure. Substantial
progress was made on a study of hous­
ing-related loan data required of certain
depository institutions under the Home
Mortgage Disclosure Act. The study,
which is being jointly funded by the
FDIC and the Federal Home Loan Bank
Board, is designed to assess the
accuracy with which depository institu­
tions are compiling the loan disclosure
reports and to identify the proportion
of mortgage loans made by institutions
subject to the act. A series of reports
will be prepared on a variety of issues,
including the costs of compliance,
possible amendments to the act and
the im plem enting Regulation C to
increase the usefulness of these data
to the public and the regulatory agen­
cies, and improvements in location
coding and enforcement procedures.
A lthough the study was originally
scheduled to be completed by late
1978 , the breadth o f the issues



addressed and technical problems
associated with collection of certain of
the necessary information have caused
a postponement in the anticipated
completion date to early 1979
C om m unity reinvestm ent. Late in
1977 a new Federal law, the Com­
munity Reinvestment Act, directed the
Federal financial regulatory agencies to
encourage the institutions they regu­
late to help meet the credit needs of
their communities, including low- and
moderate-income neighborhoods. The
agencies were fu rth e r required to
assess the institutions' records in doing
so and to take those records into
account when evaluating applications
requiring prior agency approval. To
implement this law, the FDIC issued
jointly with the Comptroller of the Cur­
rency, the Federal Home Loan Bank
Board, and the Federal Reserve Board
final regulations which became effec­
tive in late 1978.
The regulations give FDIC-supervised banks 90 days in which to pre­
pare Com m unity Reinvestment A ct
Statements. These statements must
define the bank's local community,
without excluding any low- and moder­
ate-income neighborhoods, and iden­
tify the types of credit needs within
that community which the bank is pre­
pared to serve. Both the statement and
any written comments on it must be
made available to the public. FDIC
examiners will review the CRA State­
m ents d uring regular com p lia n ce
examinations, with the results weigh­
ing heavily in Corporation decisions
concerning pending bank applications.
The H o u s in g and C o m m u n ity
Development Am endm ents A ct of
1978 established a National Neighbor­
hood Reinvestment Corporation. The
Chairman of the FDIC is a member of
the board of directors. The Neighbor­
hood Reinvestment Corporation was
created for the purpose of promoting

CONSUMER AND CIVIL RIGHTS PROTECTION

reinvestment in older neighborhoods
through the efforts of local financial
institutions, community groups, and
local government.
Consumer com plaints and inqu­
iries. The Office of Consumer Affairs
and Civil Rights is responsible for the
appropriate disposition of consumer
complaints and inquiries directed to the
FDIC. During 1978, 2,263 complaints
and 2,474 inquiries were received by
the FDIC nationwide, up 6.5 percent
and down 1.3 percent respectively over
the number processed during 1977.
The increase in consumer complaints
and inquiries, which is expected to con­
tinue over the next few years, is
attributable primarily to greater con­
sumer awareness of their rights under
the various consumer protection and
civil rights statutes. Also, more con­

25

sumers may be filing complaints as a
result of the FDIC's consumer informa­
tion brochure explaining how to file a
complaint. Corrective action is sought
in all cases where a bank error or viola­
tion of law is discovered as a result of a
complaint and follow -up action is taken
to ensure subsequent compliance.
Consumer and banker education.
During 1978, the staff from the Office
of Consumer Affairs and Civil Rights
m ade num erous p re se n ta tio n s to
bankers and industry groups. They par­
ticipated in a series of eight workshops,
sponsored by the American Bankers
Association and held at various loca­
tions around the country, to promote
banker education in the areas of con­
sumer protection and civil rights. Also,
a special 2-day FDIC training program
on the new Community Reinvestment

CONSUMER COMPLAINTS AND INQUIRIES, 1977 AND 1978

Complaints and inquiries - total.

1978
4,737

1977
4,657

Deposit function.......................
Payment of in te re st...............
Account differences...............
Advertising...............................
Early withdrawal penalties. . . .
Policies and practices..............
Other.........................................

1,315
158
182
34
217
574
150

962
131
238
35
148
332
78

Loan function............................................................ ........
State or contract la w .............................................
Equal Credit Opportunity A c t ...............................
Fair Credit Reporting A c t.......................................
Individual bank loan policy.....................................
Collection and repossession.................................
Fair housing............................................................
Truth in lending......................................................
Other Federal la w s .................................................
Other........................................................................

1,931
115
543
133
308
100
70
183
48
431

1,601
101
508
165
242
58
49
145
21
312

Trust services..................................................................

68

55

Safe deposit - safekeeping services...........................

32

42

Insurance coverage..........................................................

685

822

General,

706

1,175




26

FEDERAL DEPOSIT INSURANCE CORPORATION

A ct regulation was presented in late
1978 to examiner personnel in all 14
Regional Offices. The program's major
goal was to provide instruction and
training in CRA examination techniques
to the special compliance examiners,
who will, in turn, be providing similar
instruction and guidance to the bankers
who must comply w ith the regulations.
It was felt this approach offered the
best opportunity for maximizing the
number of examiners and bankers to be
reached in the shortest possible time.
The FDIC also distributed more than
half a million pamphlets on consumer
information, fair credit billing, truth in
lending, and equal credit opportunity
during 1978.
FINANCES OF THE CORPORATION
Deposit insurance fund. The Cor­
poration's basic financial resource for
the protection of depositors is the
deposit insurance fund which has been
accumulated entirely from net income
over the years. The fund increased by
$803.2 million during the year to a
total of $ 8 . 8 billion. That amount
equaled about 1 .2 percent of estimated
insured deposits. Should additional
funds ever be needed, the Corporation
is authorized to borrow up to $3 billion
from the U.S. Treasury, but it has never
exercised this authority.
The Corporation disbursed $470.7
million in the failures of seven insured
banks during 1978. Based on current
estimates, approximately 1.7 percent
of this amount will not be recovered by
the Corporation, and accordingly, $7.8
m illio n o f the d is b u rs e m e n t w as
charged against current income. In
addition, the Corporation purchased
$4.3 million in capital notes from banks
that acquired the major part of the
assets and liabilities of tw o of the cur­
rent year's failed banks.
Income. Assessments and interest
income are the tw o principal sources of



C orporation income. During 1978,
gross assessments of $810.5 million
accounted for 58.1 percent of total
income and interest on the portfolio of
U.S. Government securities of $567
million equaled 40.6 percent of the
total. Other income is primarily from
interest earned on capital notes.
The basic assessment rate paid by
insured banks has been 1 / 1 2 of one
percent of total assessable deposits
since 1935, but legislation enacted in
1950 in effect reduced the statutory
rate of assessment by providing a cred­
it to be applied against gross assess­
ments levied, after subtracting the Cor­
poration's expenses and provision for
losses, each year. This credit to insured
banks has been 6 6 - 2/3 percent since
December 31, 1961. A fter allowing for
the FDIC's administrative and operating
expenses of $103.2 million and provi­
sion for insurance losses and expenses
incurred to protect depositors of $41.9
million, the statutory credit to banks
amounted to approximately $443.1
million in 1978, an increase of $ 31.5
million from the previous year. This
made the net assessment paid by
insured banks equal to approximately
1/26 of one percent of assessable
deposits in 1978. The assessment
credit for 1978, which becomes availa­
ble to the insured banks on July 1,
1979, constituted 91 percent of the
FDIC's liabilities at year-end.
In te re s t on U.S. G o v e rn m e n t
securities increased by $ 73 million
from year-end 1977 and the yield on
cost rose from 7.15 percent to 7.55
percent. The improved yield in large
part is due to the Corporation's ability
to take advantage of changes in
general m a rke t c o n d itio n s w h ic h
favorably influenced the current year's
net purchases of about $ 1.1 billion,
and to some extent is due to the re­
placement of a limited amount of
securities w ith others more in line with
prevailing yields. Following conven­
tio n a l a c c o u n tin g p rin cip le s, the

FINANCES OF THE CORPORATION

approximately $3 million loss on the
sale of the low-yield issue was charged
against current income.
Audits. In m id-1978, the Board of
Directors adopted a resolution redefin­
ing the functions of the Office of Cor­
porate Audits in a manner consistent
with Government policies on audits of
Federal operations and programs. In the
past the Office of Corporate Audits
has been charged w ith evaluating
whether the FDIC's financial, fiscal, and
accounting operations are properly
conducted and accurately reported.
The resolution expands the Office's
jurisdiction to include the determination

of whether applicable laws and regula­
tio n s have been co m p lie d w ith ,
resources are managed in an efficient
manner, and desired results and objec­
tives are being achieved in an effective
manner.
In addition to the continuing internal
audit activity, the Corporation's finan­
cial operations are audited annually by
the General Accounting Office and
audit results are reported to Congress.
The Federal Banking Agency Audit Act
(Public Law 9 5 -3 2 0 ), w hich was
enacted during 1978, authorizes the
General Accounting Office to conduct
periodic performance audits of the
Corporation also.

A P P LIC A TIO N OF REVENUES
FEDERAL DEPO SIT IN S U R A N C E C O R PO R A TIO N
1 9 6 8 -1 9 7 8
M illions of dollars
1 ,40 0 —

HHm

Expenses and Provision for Losses_

f ljlf lj

Assessm ent Credits

1,200 —

|
1,000 —




| Additions to Insurance Fund

27

FEDERAL DEPOSIT INSURANCE CORPORATION

28

COMPARATIVE STATEMENT
OF FINANCIAL CONDITION (In thousands)

ASSETS:

December 31,

1978

Cash

$

4,343

December 31,
1977

$

8,663

U.S. Government obligations:
8,210,441
162,720
8,373,161

7,129,055
137,957
7,267,012

33,980
861
940,309
19,104
135,568
273,949
855,873

49,764
900.
1,171,083
19,122
132,155
244,741
1,128,283

23,936
37,028
20,700
40,264

27,765
37,423
15,400
49,788

Miscellaneous assets

2,759

2,370

Land and office building, less depreciation
on building

6,283

6,418

$9,282,683

$8,462,534

Securities at amortized cost
Accrued interest

Equity in assets acquired from deposit payoff
cases and insured banks assisted under
Section 13(e) of the FDI Act:
Depositors' claims paid
Depositors' claims unpaid
Loans and assets purchased
Assets purchased outright
Notes purchased plus accrued interest
Less reserves for losses

Equity in assets acquired from insured banks
assisted under Section 13(c) of the FDI Act:
Assets purchased outright
Notes purchased plus accrued interest
Less reserves for losses

Total Assets




FINANCES OF THE CORPORATION

29

F E D E R A L DEPOSIT INSU RANCE CO RPO R ATIO N

LIABILITIES AND THE
DEPOSIT INSURANCE FUND:

December 31,

Accounts payable and accrued liabilities

December 31,

1978

1977

$

4,963

$

5,947

Earnest money, escrow funds, and
collections held for others

4,893

12,086

Accrued annual leave

4,716

4,316

0
443,101
11,990
455,091

411,947
0
16,789
428,736

16,166
861
17,027

17,761
900
18,661

486,690

469,746

8,795,993

7,992,788

$9,282,683

$8,462,534

Due insured banks:
Net assessment income credits:
Available July 1, 1978
Available July 1, 1979
Other

Liabilities incurred in failures of insured banks:
Notes payable plus accrued interest
Depositors' claims unpaid

Total Liabilities

Deposit Insurance Fund

Total Liabilities and the Deposit Insurance Fund




30

FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT OF INCOME
AND THE DEPOSIT INSURANCE FUND (In thousands)

For th e tw e lv e m o n th s ended

December 31,
1978

Revenues:
Assessments earned
Interest on U.S. Government securities
Amortization of premiums and discounts (net)
Interest earned on notes receivable
Other income
Total

$

810,532
567,042
(1,264)
11,974
7,313
1,395,597

December 31,
1977

$

731,468
493,990
9,171
14,841
442
1,249,912

Assessment Credits, Expenses, and Losses:
Provision for assessment credits
Administrative and operating expenses (net)
Nonrecoverable insurance expenses
Provision for insurance losses
Loss on sale of securities
Total

Net Income

Deposit Insurance Fund-January 1

Deposit Insurance Fund-December 31




443,534
103,289
5,409
36,532
3,628
592,392

412,086
89,344
3,492
20,827
0
525,749

803,205

724,163

7,992,788

7,268,625

$8,795,993

$7,992,788

FINANCES OF THE CORPORATION

COMPARATIVE STATEMENT OF CHANGES
IN FINANCIAL POSITION (In thousands)

31

F E D E R A L DEPOSIT INSU RANCE C O RP O R ATIO N

For th e tw e lv e m o n th s ended

December 31,
1978

December 31,
1977

Operations:
Net deposit insurance assessments
Interest on U.S. Government obligations
Interest on notes receivable
Other income
Total

$ 366,998
567,042
11,974
7,313
953,327

$ 319,382
493,990
14,841
442
828,655

Less:
Administrative and operating expenses,
net of depreciation
Nonrecoverable insurance expense
Total

103,154
5,409
108,563

89,209
3,492
92,701

Resources provided from operations

844,764

735,954

794,469

1,369,625

799,248
26,355
4,320
$2,469,156

419,095
21,956
14,197
$2,560,827

$1,686,705

$1,877,394

Financial Resources Were Provided From:

Maturity and sale of U.S. Government obligations,
less, $3,628 net loss in 1978
Collections received on assets acquired in receivership
and deposit assumption transactions, excluding
$261,000 in 1977 in Franklin National Bank liquida­
tion collections applied directly to the reduction of
the F.R.B. indebtedness before F.R.B. payoff
Increase in assessment credits due banks
Decrease in cash
Total Financial Resources Provided
Financial Resources Were Applied To:
Purchase of U.S. Government obligations
Increase (decrease) in U.S. Treasury one-day certifi­
cates
(Total purchases - $37,679,123 in 1978 and
$32,543,000 in 1977
Total maturities - $37,485,081 in 1978 and
$32,561,000 in 1977)
Acquisition of Assets acquired in receivership and
deposit assumption transactions, excluding
$ 19,100 in 1977 representing the increase in prin­
cipal and accrued interest on the F.R.B. indebtedness
and other notes payable before F.R.B. payoff
Increase in accrued interest on securities
Net change in other assets and liabilities
Payment of F.R.B. indebtedness:
Principal
Accrued interest
Total Financial Resources Applied



194,042

(18,000)

554,280
24,763
9,366

95,880
7,844
(10,167)

0
0
$2,469,156

389,000
218,876
$2,560,827

32

FEDERAL DEPOSIT INSURANCE CORPORATION

NOTES TO FINANCIAL STATEMENTS
GENERAL
These statements do not include
accountability for assets and liabilities of
closed insured banks for which the Cor­
poration acts as receiver or liquidating
agent. Periodic and final accountability
reports of its activities as receiver or
liquidating agent are furnished by the Cor­
poration to courts, supervisory authorities,
and others as required.

Reclassifications. Certain reclassifica­
tions were made in the 1977 financial
statements to conform to the presentation
used in 1978.
U.S. GOVERNMENT OBLIGATIONS
Investment in securities at December
31, 1978 and 1977 was.
(in thousands)

1978
Face Value
Purchase Price
Market Value

1977

$8,210,911
8,216,348
7,718,383

$7,119,458
7,132,322
7,073,876

ACCOUNTING POLICIES
U.S. G o v e rn m e n t o b lig a tio n s .
Securities are shown at amortized costs
which is the purchase price of the
securities less the amortized premium or
plus the accreted discount. Such amortiza­
tion and accretion are computed on a daily
straight-line basis from the date of acquisi­
tion to the date of maturity.
Deposit insurance assessments. The
Corporation assesses insured banks at the
rate of 1/12 of one percent per year on the
bank's average deposit liability less certain
exclusions and deductions. Assessments
are due in advance for each six-month
period and credited to income each month.
Section 7(d) of the Federal Deposit
Insurance Act states that each July 1, six­
ty-six and two-thirds percent of the Cor­
poration's net assessment income from the
prior calendar year be made available to
insured banks as a prorated credit against
the current assessment due.
Reserve for losses. It is the policy of
the Corporation to establish an estimated
reserve for loss at the time a bank fails.
These reserves are reviewed every six
months and adjusted as required, based on
the financial developments which accrue
during each six-month period. The Cor­
poration does not state its estimated con­
tingent liability for unknown future bank
closings because such estimates are
impossible to make. The Corporation's
contingent liability for eventual net losses
depends upon factors which cannot be
assessed until or after a bank has actually
failed. The Corporation's entire deposit
insurance fund and borrowing authority are
available, however, for such contingencies.
Depreciation. The headquarters build­
ing is depreciated on a straight-line basis
over a 50-year estimated life. The cost of
furniture, fixtures, and equipment is
expensed at time of acquisition.




RESERVE FOR LOSSES
As of December 31, 1978 and 1977
the Corporation's reserve for losses on
deposit payoff cases and on banks assisted
under Sections 13(c) and 13(e) of the
Federal Deposit Insurance Act are as
follows:
1978
1977
Depositors'claims paid
Loans and assets purchased
Assets purchased outright

$ 14,475,000 $ 16,032,000
240,763,500 210,709,400
39,410,000
33,400,000

$ 294 , 648,500 $ 260 , 141,400

NOTES PURCHASED TO FACILITATE
DEPOSIT ASSUMPTIONS
The Corporation's outstanding principal
on notes receivable, purchased to facilitate
deposit assumptions and mergers of
closed insured banks under Section 13(e)
of the Federal Deposit Insurance Act, at
December 31, 1978 and 1977 are:
1977
1978
$
1,000,000 $
Clearing Bank
1,500,000
Marine National Exchange Bank
1,500,000
1,500,000
of Milwaukee
First Tennessee National Cor­
16,000,000
16,000,000
poration
8,000,000
8,000,000
First Tennessee National Bank
Bank Leumi Trust Company of
New York
10,000,000
10,000,000
New Orleans Bancshares, Inc.
6,666,667
7,500,000
European-American Bancorp.
85,000,000
85,000,000
Drovers Bank of Chicago
4,000,000
250,000
Town-Country National Bank
-

$ 132 ,416,667 $ 129 , 500,000

NOTES P UR CH A SE D TO A S S I S T
OPERATING BANKS
The Corporation's outstanding principal
on notes receivable, purchased under
authority of Section 13(c) of the Federal
Deposit Insurance Act, at December 31,
1978 and 1977 are:
1978
1977
Unity Bank and Trust Company
Bank of the Commonwealth

$ 1,500,000
35,500,000

$ 1,500,000
35,500,000

$ 37 , 000,000 $ 37 ,000,000

FINANCES OF THE CORPORATION

LIABILITIES INCURRED IN FAILURES
OF INSURED BANKS
Notes payable. This amount represents
the unpaid principal and accrued interest on
the Corporation's unsecured notes desig­
nated “ 5.775% Series A Notes due January
1, 1988" and “ 5.775% Series B Notes due
January 1, 1990“ as set forth in the con­
sents, exchange agreement, and agree­
ments of release and satisfaction related to
the sale of Franklin Buildings, Inc. to European-American Bank and Trust Company.




33

CONTINGENT LIABILITIES
S o u th e rn B a n c o r p o ra tio n n o te
receivable. On December 9, 1976,
Southern Bancorporation repaid in full the
$8 million note that the Corporation had
purchased on September 24, 1974.
Southern Bancorporation financed this
transaction by obtaining a loan from First
Union National Bank of North Carolina. To
induce FUNB to enter the loan agreement,
the FDIC agreed to guarantee the payment
of 75 percent of the unpaid principal
amount of the loan on the terms and condi­
tions set forth in the guarantee agreement.
As of December 31, 1978 and 1977,
FUNB's outstanding principal due on the
loan totaled $6.6 million and $7.4 million,
respectively.







ENFORCEMENT PROCEEDINGS
PART TWO




CEASE-AND-DESIST ACTIONS
Actions to Terminate Insured Status
Federal Deposit Insurance Act-Section 8(a)

37

reduce adversely classified assets;
obtain current credit and other sup­
porting documentation for all existing
loans; eliminate all concentrations of
credit; eliminate without loss or liability
to the bank all overdrafts and prohibit
future overdrafts to directors, officers,
and employees, or their interests;
adopt and fo llo w acceptable loan
policies; adopt an acceptable audit
program; correct internal routine and
control deficiencies; correct violations
of laws, rules, and regulations; discon­
tinue cash dividends; and obtain a cer­
tain level of capital if continued insured
status was desired.

The Corporation has issued 33 termination
of insurance orders since January 1971; 3
were issued in 1978. In each case, the bank
was found to be in unsafe or unsound condition.
Also, a number of other termination of
insurance actions have been recommended but
were withdrawn by the Board of Directors
because of favorable interim affirmative actions
by the bank involved. As in the case of ceaseand-desist actions, the threat of termination of
insurance has caused many of the banks to take
affirmative steps to correct deficiencies, thus
eliminating the need for finalizing the actions.

Summary of cases
Cease-and-Desist Actions
Federal Deposit Insurance Act-Section 8(b)

Bank No.

31

Deposits— -$101.3 million
Notice of intention to terminate
insured status issued on April 19,
1978. Bank ordered to provide accept­
able management; eliminate or reduce
adversely classified assets; reduce loan
volume; establish a plan to control
operating losses; correct violations of
laws, rules, and regulations; take
necessary steps to comply, where
appropriate, with the Order to Cease
and Desist issued on January 25, 1978
and the Letter Agreement dated June
16, 1977; adopt and follow acceptable
loan and investment policies; imple­
ment a plan to provide stability and
diversification to the deposit structure;
discontinue cash dividends; and obtain
a certain level of capital if continued
insured status was desired.

32

Deposits— $3.7 million
Notice of intention to terminate
insured status issued on June 9, 1978.
Bank ordered to provide acceptable
management; eliminate or reduce
adversely classified assets; reduce
overdue loans; correct violations of
laws, rules, regulations, and loan docu­
m entation exceptions; discontinue
cash dividends; and obtain a certain
level of capital if continued insured
status was desired

33

Deposits— $30.8 million
Notice of intention to terminate
insured status issued on September
15,1978. Bank ordered to provide
acceptable management; eliminate or




The Corporation has issued 137 cease-anddesist orders since January 1971; 32 were
issued in 1978. In addition, 18 temporary
cease-and-desist orders have been issued,
including 5 in 1978. In each case, the bank was
ordered to cease and desist from unsafe or
unsound practices and to take affirmative
action to correct conditions. Several such
actions are now in various stages of processing.
In addition, a number of other cease-anddesist proceedings were terminated when the
banks involved, in response to a threatened
cease-and-desist order, took affirmative steps
to correct the problems.
In four other cases, one in 1978, formal w rit­
ten agreements between banks and the Cor­
poration were ratified by the FDIC Board of
Directors. Noncompliance with these formal
written agreements can result in a cease-anddesist action.

Summary of cases

Bank No.

106

Deposits— $ 18.0 million
Consent cease-and-desist order
entered on January 25, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets; adoption of
acceptable loan policies; limitations on
credit to any person or concern, includ­
ing any person related to such person
or concern; and credit to or for the

FEDERAL DEPOSIT INSURANCE CORPORATION

38

benefit o f tw o or more unrelated
obligors where repayment is based
upon the assets or revenue derived
from the same source; compliance
with laws, rules, and regulations; and
elimination of loan documentation defi­
ciencies.
107

108

Deposits— $7.8 million
Consent cease-and-desist order
entered on January 25, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets and overdue
loans; adoption of acceptable loan and
investment policies; compliance with
laws, rules, and regulations; dis­
closures and restrictions relating to a
credit life insurance agency operated
on bank premises by insiders; and dis­
continuance of cash dividends.
Deposits— $3.4 million
Consent cease-and-desist order
entered on January 25, 1978 to re­
place a temporary order to cease and
desist. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirmative action with
respect to acceptable management;
reduction of adverse classifications;
adoption of written lending policies;
collection of outstanding and limita­
tions on future out-of-area loans;
limitations on credits to insiders or for
the benefit of tw o or more obligors
where payment is based on the assets
of or revenue derived from the same
source; elimination of loan documenta­
tio n d e ficie n cie s; p ro h ib itio n o f
repurchase of participations sold w ith­
out recourse; recording on the books
any liability for repurchase agreements
outstanding; adopting a schedule for
the periodic balancing of all general
ledger accounts; correction of all viola­
tions of laws and regulations; injection
of new capital; review of and restric­
tions on all compensation to, and
expense allowance of, directors and
officers; review of income and expense
statements monthly; maintenance of
adequate records for Federal and State
income taxes; disclosures and restric­
tions relating to a credit life insurance
agency operated on bank premises by
insiders; restrictions on payment of
cash dividends; compliance with a
separate letter agreement between the




bank and the chartering authority; and
efforts to collect loans made to or
related to control owners and prohibi­
tion of any new credit to these
individuals.
109

Deposits— $102.5 million
Consent cease-and-desist order
entered on January 25, 1978 to re­
place a temporary order to cease and
desist. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirmative action with
respect to entering into any business
transactions which exceed $1 0,00 0 in
the aggregate with the chairman of the
board, his interests, or any person
related to him.

110

Deposits— $20.1 million
Consent cease-and-desist order
entered on March 14, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirmative action with respect to com­
pliance with laws and regulations relat­
ing to consumer protection, financial
recordkeeping and reporting, and bank
protection.

111

Deposits— $24.8 million
Consent cease-and-desist order
entered on March 14, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets; adoption of
acceptable loan policies; restrictions on
new loans to certain insiders; internal
control procedures; injection of new
capital; and discontinuance of cash
dividends.

112

Deposits— $526.0 million
Consent cease-and-desist order
entered on March 14, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets and delin­
quent loans; injection of new capital;
adoption of acceptable loan policies;
elimination of loan documentation defi­
ciencies; and discontinuance of cash
dividends.

113

Deposits— $12.2 million
Consent cease-and-desist order
entered on April 7, 1978. Bank ordered
to cease and desist from unsafe or
unsound practices and take affirmative

CEASE-AND-DESIST ACTIONS
action w ith respect to acceptable
management; reduction of adversely
classified assets; compliance w ith
laws, rules, and regulations; reduction
of loan volume and overdue loans;
adoption of acceptable loan policies;
increasing and maintaining capital at a
specified relationship to assets; provi­
sion for adequate liquidity; and internal
control procedures.
114

Deposits— $3.5 million
Consent cease-and-desist order
entered on April 19, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified and special men­
tioned assets and loan volume; adop­
tion of acceptable loan and investment
policies; compliance with laws, rules,
and regulations; provisions for increas­
ing capital; discontinuance of cash
dividends; procurement of fide lity
insurance; and disclosures and restric­
tions related to the sale of credit life
insurance or any o th e r type o f
insurance written by bank personnel or
written on bank premises incidental to
bank loans.

located out of trade area; elimination
of loans secured by certain bank
stocks and loans made fo r the pur­
pose of facilitating the carrying of
investment in such bank stocks; and
elim ination of loan docum entation
deficiencies.
117

Deposits— $1.6 million
Notice of charges issued on April 19,
1978 and consent cease-and-desist
order entered on June 9, 1978. Bank
ordered to cease and desist from unsafe
or unsound practices and take affirma­
tive action with respect to acceptable
management; reduction of adversely
classified assets and loan volume;
adoption of acceptable loan policies;
limitations of credit to any person or
concern, including any person who
controls, is controlled by or under
common control w ith such person or
concern, or any tw o or more unrelated
obligors where payment is based
upon the assets of or revenue derived
from the same source; prohibition of
extensions of credit to out-of-tradearea borrowers and brokered deposits
w ith tie-in loans; elimination of loan
documentation deficiencies; com pli­
ance w ith laws, rules, and regulations;
internal control procedures; and dis­
continuance of cash dividends.

118

Deposits— $7.1 million
Consent cease-and-desist order
entered on April 25, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets and overdue
loans; adoption of acceptable loan
policies; compliance with laws, rules,
and regulations; elimination of loan
docum entation deficiencies; discon­
tinuance of cash dividends; increasing
capital; internal control procedures;
obtaining shareholder and board of
director approval of the conduct of an
insider related insurance business on
bank premises and assurance from the
bank's insurer that such operations will
not adversely a ffe ct blanket bond
coverage; and review of the structure
for salaries of officers, directors, and
employees.

119

Deposits— $7.3 million
Notice of charges issued on May 19,
1978 and consent cease-and-desist
order entered September 6, 1978.

Deposits— $109.7 million
Consent cease-and-desist order
entered on April 7, 1978. Bank ordered
to cease and desist from unsafe or
unsound practices and take affirmative
action with respect to compliance with
consumer protection laws and regula­
tions pertaining to bank protection and
real estate settlement procedures.

115

116

Deposits— $12.4 million
Notice of charges issued on April 19,
1978 and consent cease-and-desist
order entered on May 5, 1978. Bank
ordered to cease and desist from unsafe
or unsound practices and take affirma­
tive action with respect to acceptable
management; increasing capital; reduc­
tion of adversely classified assets and
overdue loans; limitations on credit to
directors, officers, their affiliates and
interests, or any tw o unrelated direc­
tors, o ffice rs, th e ir a ffilia te s and
interests where payment is based
upon the assets of or derived from the
same source; adoption of acceptable
loan policies; compliance w ith laws,
rules, and regulations; restrictions on
credit to out-of-trade-area borrowers
and/or loans secured by collateral




39

40

FEDERAL DEPOSIT INSURANCE CORPORATION
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets and a con­
centration of credit; adoption of accep­
table loan policies; compliance with
laws, rules, and regulations; provisions
for increasing capital; restrictions on
payment of cash dividends; and dis­
closures and restrictions relating to a
credit life insurance agency operated
on bank premises.

120

Deposits— $7.8 million
Consent cease-and-desist order
entered on May 24, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reductions of
adversely classified assets and loan
v o lu m e ; re p u rc h a s in g a d v e rs e ly
classified assets sold to a certain bank;
prohibition of the sale or purchase of
any assets or services from a certain
bank; adoption of acceptable loan and
investment policies; compliance with
laws, rules, and regulations; dis­
closures and restrictions relating to a
credit life insurance agency operated
on bank premises by insiders; and
discontinuance of cash dividends.

121

Deposits— $6.1 million
Notice of charges issued on June 9,
1978 and consent cease-and-desist
order entered on July 14, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets, concentra­
tions of credit, and overdue loans; pro­
visions for an adequate loan valuation
reserve and liquidity; elimination of
loan d o cu m e n ta tio n d e ficie n cie s;
restrictions on loans to insiders; adop­
tion of acceptable loan and investment
policies; and internal control pro­
cedures.

122

Deposits— $2.7 million
Notice of charges issued on June 9,
1978 and consent cease-and-desist
order entered on August 1 1, 1978.
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets and overdue
loans; provision for an adequate loan




valuation reserve; maintenance of an
acceptable level of capital; adoption of
acceptable loan policies; and obtaining
written appraisals for all criticized real
estate loans.
123

Deposits— $4.2 million
Notice of charges issued on June 26,
1978 and consent cease-and-desist
order entered on August 2, 1978. Bank
ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action with respect to
acceptable management; increasing
capital; compliance with laws, rules,
and regulations; reduction of adver­
sely classified assets, loan volume,
and overdue loans; restriction on
credit to insiders and reduction of
concentrations of credit to insiders or
form er insiders; adoption of accepta­
ble loan policies; restrictions on credit
to out-of-trade-area borrowers and/
or loans secured by collateral located
out of trade area; and elimination of
loan documentation deficiencies.

124

Deposits— $35.3 million
Notice of charges issued on July 14,
1978 and consent cease-and-desist
order entered on September 6, 1978.
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management in the trust
department; elimination of estimated
losses; compliance with the Corpora­
tion's Statement of Principles of Trust
Department Management; mainte­
nance of accurate and adequate files
and documentation; discontinuance of
investing trust funds in notes secured
by junior liens on real estate; a written
program for the orderly disposition of
all imprudent trust investments; com­
pliance with laws, rules, and regula­
tions; provisions for a comprehensive
outside audit of the trust department;
and provisions for adequate internal
audit control.

125

Deposits— $109.0 million
Notice of charges issued on July 14,
1978 and consent cease-and-desist
order entered on August 11, 1978.
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
acceptable management; reduction of
adversely classified assets; provisions
for an adequate loan valuation reserve;
adoption of acceptable loan policies;

CEASE-AND-DESIST ACTIONS

desist from unsafe or unsound prac­
tices and take affirm ative action with
respect to acceptable management;
reduction o f adversely classified
assets and loan volume; adoption of
an acceptable loan policy; elimination
of loan documentation deficiencies;
injection of new capital; provisions
fo r an ad eq ua te loan v a lu a tio n
reserve; and discontinuance of cash
dividends.

elimination of loan documentation defi­
ciencies; internal control procedures;
compliance w ith laws, rules, and
regulations; and provisions for an out­
side audit.
126

127

128

129

Deposits— $3.2 million
Notice of charges issued on August
2, 1978 and consent cease-and-desist
order entered on September 6, 1978.
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action with respect to
acceptable management; increasing
capital; compliance with laws, rules,
and regulations; reduction of adver­
sely c la s s ifie d assets and loan
volum e; restrictio ns on cred it to
insiders; adoption of acceptable loan
policies; provisions for an adequate
loan valuation reserve; o ve rd ra ft
limitation; elimination of loan docu­
mentation deficiencies; and provi­
sions for an outside audit.
Deposits— $3.7 million
Consent cease-and-desist order
entered on August 2, 1978 to replace a
temporary order to cease and desist.
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action w ith respect to
entering into any business transaction
with and/or from extending direct or
indirect credit of any kind to or for the
benefit of the controlling shareholder
and/or any person related to that per­
son; acceptable management; reduc­
tions of adversely classified assets;
adoption of acceptable loan policies;
prohibition of credit to borrowers who
reside out of bank's trade area; com­
pliance with laws, rules, and regula­
tions; and the discontinuance of cash
dividends.
Deposits— $13.0 million
Notice of charges issued on August
11, 1978 and consent cease-and-desist
order entered on September 15, 1978.
Bank ordered to cease and desist from
unsafe or unsound practices, and take
affirm ative action w ith respect to
compliance with consumer protection
laws and regulations pertaining to
financial recordkeeping and reporting.
Deposits— $13.7 million
Notice of charges issued on Septem­
ber 6, 1978 and consent cease-anddesist order entered on November 8,
1978. Bank ordered to cease and




41

130

Deposits— $7.2 million
Notice of charges issued on Septem­
ber 6, 1978 and consent cease-anddesist order entered on November 17,
1978. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirm ative action with
respect to acceptable management;
reduction o f adversely classified
assets and overdue loans; provision
fo r an a d eq ua te loan v a lu a tio n
reserve; implementation of a reasona­
ble repayment schedule for one type
of loan; elimination of loan documen­
ta tio n d e fic ie n c ie s ; a d o p tio n o f
acceptable loan policies; internal con­
tro l procedures; com pliance w ith
laws, rules, and regulations; and
reviewing the appropriateness of and
providing documentation w ith respect
to fees or compensation for services
paid to any d irector or business
interests of any officer or director.

131

Deposits— $7.4 million
Notice of charges issued on Septem­
ber 6, 1978 and consent cease-anddesist order entered on November 17,
1978. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirm ative action w ith
respect to acceptable management;
provisions fo r increasing capital;
adoption of acceptable investment
and loan policies; reduction of adver­
sely classified assets; provisions fo r
an adequate loan valuation reserve;
restrictions on overdrafts and adop­
tion of an acceptable overdraft policy
and extensions of credit to insiders;
and compliance w ith laws, rules, and
regulations.

132

Deposits— $12.1 million
Notice of charges issued on Septem­
ber 28, 1978 and consent cease-anddesist order entered on December 20,
1978. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirm ative action w ith

FEDERAL DEPOSIT INSURANCE CORPORATION

42

respect to acceptable management;
reduction o f adversely classified
assets and a concentration of credit;
p r o h ib itio n o f th e sale a n d /o r
purchase of assets involving indebt­
edness of certain persons or their
interests; adoption of policies relating
to excess funds sold and loans; com ­
pliance w ith laws, rules, and regula­
tions; injection of new capital; dis­
closures and restrictions relating to a
credit life insurance agency operated
on bank premises by insiders; and dis­
continuance of cash dividends.
133

Deposits— $2.2 million
Notice of charges issued on Septem­
ber 28, 1978 and consent cease-and
desist order entered on December 20,
1978. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirm ative action with
respect to acceptable management;
reduction o f adversely classified
assets and a concentration of credit;
p r o h ib itio n o f th e sale a n d /o r
purchase of assets involving indebt­
edness of certain persons or their
interests; compliance w ith laws, rules,
and regulations; remuneration to an
insider; adoptions of policies relating
to excess funds sold and loans; injec­
tion of new capital; discontinuance of
cash d iv id e n d s ; d is c lo s u re s and
restrictions relating to a credit life
insurance agency operated on bank
premises by an interest of insiders;
and assurance that deposit balances
at other banks are maintained at
reasonable levels.

Deposits— $1 2.8 million
Notice of charges issued on October
12, 1978 and consent cease-and-desist
order entered on December 7, 1978.
Bank ordered to cease and desist from
unsafe or unsound practices and take
affirm ative action with respect to
acceptable management and board
membership requirements; reduction
of adversely classified assets and loan
volume; adoption of acceptable loan
policies; o ve rd ra ft and cash item
restrictions to a certain corporation;
restrictions and limitations on exten­
sions of credit to any person or con­
cern, including any person who con­
trols, is controlled by or under com ­
mon control with such person or con­
cern, or any tw o or more unrelated
obligors where repayment is based
upon the assets of or revenue derived
from the same source, and the sale of
excess funds to another financial
in s titu tio n ; com pliance w ith laws,
rules, and regulations; elimination of
loan d o c u m e n ta tio n d e fic ie n c ie s ;
injection of new capital; limitations
and restrictions on the payment of
cash dividends; provision for an ade­
quate loan valuation reserve; policies
regarding other real estate; obtaining
appraisals for other real estate and
reducing book values accordingly;
disclosure and restrictions related to
the sale of credit life insurance or any
other type of insurance written by
bank personnel or written on bank
premises incidental to bank loans; and
internal control procedures.

136

Deposits— $5.5 million
Notice of charges issued on Novem­
ber 8, 1978 and consent cease-anddesist order entered on December 20,
1978. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirmative action with
respect to acceptable management;
reduction of adversely classified assets
and overdue loans; provision for an ad­
equate loan valuation reserve; and
adoption of acceptable loan policies.

137

Deposits— $5.3 million
Consent cease-and-desist order
entered on November 17, 1978 to re­
place a temporary order to cease and
desist. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirmative action with
respect to acceptable management;

Deposits— $4.5 million
Notice of charges issued on Septem­
ber 28, 1978 and consent cease-anddesist order entered on December 20,
1978. Bank ordered to cease and
desist from unsafe or unsound prac­
tices and take affirm ative action with
respect to acceptable management;
reduction of adversely classified
assets and a concentration of credit;
p ro h ib itio n on th e sale a n d /o r
purchase of assets involving indebt­
edness of certain persons or their
interests; adoptions of policies relat­
ing to excess funds sold and loan
p o lic ie s ; c o m p lia n c e e w ith laws,
rules, and regulations; provisions for
an adequate loan valuation reserve;
adequate documentation of securities
transactions; and discontinuance of
cash dividends.

134

135




CEASE-AND-DESIST ACTIONS
reduction of adversely classified assets
and overdue loans; provision for ade­
quate liquidity; prohibition as lender to
a certain corporation; prohibition of
acting as lead bank in any loan, with or
without guarantee, which exceeds the
bank's legal lending limit; collection of
or conditions under which obligations
of tw o insiders may be continued;
limitation on loan volume; adoption of
acceptable loan policies; prohibition
a g a in s t p ro v id in g c o m p e n s a tin g
balances at other banks for the benefit
of the bank's customers except as per­
mitted by law and upon approval by the
supervisory authorities; compliance
with violations of laws and regulations;
and elimination of loan documentation
deficiencies.

of the controlling shareholder and/or
any person related to that person.
A permanent cease-and-desist order
was issued on August 2, 1978.
15

Formal W ritten Agreement
Federal Deposit Insurance Act-Section 8(b)
Summary of cases
Bank No.

Deposits— $5.1 million
W ritten Agreement entered into on
November 8, 1978. Bank agreed for
purposes of effecting correction of
unsafe or unsound practices to provide
acceptable management; reduce loan
volume; remove all nongovernmental
o u t-o f- tr a d e - a r e a ra te -s e n s itiv e
deposits; correct violations of laws,
rules, regulations, and technical excep­
tions; adopt an acceptable loan policy;
reduce concentrations of credit and
adversely classified assets; submit a
plan to increase capital and, until such
time as a satisfactory capital condition
is achieved, take commissions from the
sale of credit life into the income of the
bank; contract for an independent out­
side audit; and discontinue cash divi­
dends.

17




Deposits— $13.1 million
Temporary cease-and-desist order
issued on August 4, 1978. Bank was
ordered to cease and desist from
engaging in any business transaction
w ith an uninsured affilia te d bank;
extending credit, directly or indirectly,
to or for the benefit of the controlling
stockholder, his interests, or persons
related to him; transacting business of
the affiliate in any authorized office of
the bank; and permitting any employee
of the bank from serving simultaneous­
ly as an employee of the affiliate.
The order was outstanding at yearend.

Bank No.

Deposits— $3.7 million
Temporary cease-and-desist order
issued on April 25, 1978. Bank was
ordered to cease and desist from enter­
ing into any business transaction with
and/or from extending direct or indirect
credit of any kind to or for the benefit

Deposits— $12.8 million
Temporary cease-and-desist order
issued on August 2, 1978. Bank was
ordered to cease and desist from
extending any additional credit, directly
or indirectly, to or for the benefit of a
director, or any payment against
uncollected funds; engaging in the sale
of any loan participation with recourse;
and repurchasing any loan or participa­
tion sold by the bank without approval
from the supervisory authorities. The
order also placed certain restrictions on
credit to insiders and the bank's loan
volume.
The order was outstanding at yearend.

Temporary Cease-and-Desist Actions
Federal Deposit Insurance Act-Section 8(c)
14

Deposits— $5.3 million
Temporary cease-and-desist order
issued on June 16, 1978. Bank was
ordered to cease and desist from acting
as lender in a proposed guaranteed
extension of credit; and participating
as lead bank in any loan, with or w ith­
out guarantee, which exceeds the
bank's legal lending limit, without prior
a p p ro v a l fro m th e s u p e rv is o ry
authorities.
A permanent cease-and-desist order
was issued on November 17, 1978.

16

4

43

18

Deposits— $103.9 million
Temporary cease-and-desist order
issued on December 15, 1978. Bank
was ordered to cease and desist from
entering into or consummating any
transaction for the sale of any bank
asset, whether book or nonbook, for

FEDERAL DEPOSIT INSURANCE CORPORATION

44

any amount less than face value.
The order was outstanding at yearend.

Suspension and Prohibition Actions
Federal Deposit Insurance Act-Section 8(g)
When an officer, director, or other person
who participates in the management of an
insured nonmember bank is charged, in an
in fo rm a tio n , in d ic tm e n t, or c o m p la in t
authorized by a U.S. Attorney, with the com­
mission of, or participation in, a felony involving
dishonesty or a breach of trust, the Corporation
may suspend or prohibit the person from par­
ticipating in the affairs of the bank. Suspension
proceedings are initiated by the issuance of a
Notice and Order of Suspension and Prohibi­




tion, which is served on the individual involved,
specifies the charges, and orders the individual
to be suspended from his position and
prohibited from participating in the affairs of
the bank. The suspension and/or prohibition
remains in effect until the matter is disposed of
or terminated by the FDIC. If convicted of the
offense, a removal order may be issued. After
the s ta tu to ry a u th o rity fo r suspending
individuals was ruled unconstitutional by a
Federal district court in 1976 (Feinbergv. FDIC,
420 F. Supp. 109 (D.D.C. 1976)), the FDIC
issued regulations during November 1977 to
address the deficiencies found by the court.
The FIRIRCA provides hearing requirements for
section 8(g) actions and thus remedies the con­
stitutional defects found by the court. Four such
orders were issued in 1978 against three
individuals serving as officers and/or directors
of four banks.

MERGER DECISIONS OF THE CORPORATION



PART THREE




BANKS INVO LVED IN ABSORPTION APPROVED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1 9 7 8
State

Town or City

Bank

Alabama

Cullman

First Alabama Bank of Cullman (in
organization)
First State Bank of Cullman, Alabama, Inc.
Bank of East Lauderdale (in organization;
change title to East Lauderdale Banking
Company)
East Lauderdale Banking Company

Rogersville

California

Connecticut

Healdsburg Branch— The First National Bank of
Cloverdale
Encino (Los Angeles)
First State Bank of Encino (in organization)
La Jolla
La Jolla Bank & Trust Company
Los Angeles (Sun Valley) American Pacific State Bank
Los Angeles
Imperial Bank
North Hollywood
North Hollywood Branch— The Hongkong
Bank of California
Oceanside
W est Coast National Bank
Palo Alto
*San Jose and San Francisco Branches—
Camino— California Bank
San Francisco
Encino Branch— The Hongkong Bank of
California
Santa Rosa
Bank of Sonoma County

102
102

102
102

Cloverdale

Hartford
New Haven
Plainville
Waterbury

Florida

Page

Auburndale
Brooksville
Cocoa
Collier County
(P.O. Naples)
Deerfield Beach
Dunedin
Fort Lauderdale

Haines City
Hernando County
(P.O. Spring Hill)
Hollywood
Indialantic
Jacksonville

53
94
60
80
95

Colonial Bank of Hartford
Colonial Bank of New Haven (change title to
Colonial Bank)
Colonial Bank of Plainville
Colonial Bank of Waterbury

82
82
82

Barnett Bank of Auburndale (change title to
Barnett Bank of East Polk County)
Hernando State Bank
Southeast National Bank of Cocoa
Barnett Bank of Collier County

100
100
100
100

Southeast Bank of Deerfield Beach
Southeast National Bank of Dunedin
Southeast Everglades Bank of Fort
Lauderdale (change title to Southeast Bank
of Broward)
Southeast Bank of Galt Ocean Mile
The Exchange Bank of Central Florida
(change title to Exchange Bank of Polk County)
First American National Bank of Hernando
County
Southeast Bank of Hollywood Hills
Landmark Bank of Brevard
Atlantic Bank of Lake Forest
Atlantic Bank of Normandy
Atlantic Bank of South Jacksonville
Atlantic Bank of Springfield (change title to
Atlantic Bank of Jacksonville)
Atlantic Bank of West Jacksonville
Atlantic University Bank

'Banks absorbed in "emergency” approvals under provisions of Section 18(c).




95
80
94
53
60

82

100
100

100
100
100
100
100
100
100
100
100
100
100
100

48
State

FEDERAL DEPOSIT INSURANCE CORPORATION
Town or City

Lake W orth
Largo
Lauderhill
Melbourne

Miami

Miramar
Naples
North Palm Beach

Oakland Park
Orlando

Pensacola

Pinellas Park
Sanford

Satellite Beach
South Pasadena
Tallahassee

Titusville
Winter Haven

Georgia

Dalton
Columbus

Griffin
Montezuma
Oglethorpe




Bank
Flagship State Bank of Arlington
Flagship State Bank of Jacksonville (change
title to Flagship Bank of Jacksonville)
Flagship State Bank of North Jacksonville
Flagship State Bank of South Jacksonville
First American Bank of Lake Worth, National
Association
Southeast First Bank of Largo (change title to
Southeast Bank of Pinellas)
Pan American Bank of Inverrary (change title
to Pan American Bank of Broward)
Landmark Bank of Melbourne, National
Association
Southeast Bank of Melbourne
Commercial Bank & Trust Company
North Miami Branch — City National Bank of
Miami
Southeast Bank of Miramar
Barnett Bank of Naples
First American Bank of North Palm Beach
(change title to First American Bank of Palm
Beach County)
Pan American Bank of Broward County,
National Association
Flagship Bank of Orlando
Flagship Bank of West Orlando, National
Association
The Bank of West Florida
The W est Pensacola Bank (change title to
The W est Florida Bank)
Southeast Bank of Pinellas Park
Flagship U.S. Bank of Seminole
Flagship Bank of Sanford (change title to
Flagship Bank of Seminole)
Southeast First National Bank of Satellite
Beach
Southeast National Bank of St. Petersburg
Flagship American Bank of Tallahassee
Flagship Peoples Bank of Tallahassee
The Gulf National Bank
The Lewis State Bank
Southeast Bank of Titusville (change title to
Southeast Bank of Brevard)
Barnett Bank of East Polk County, National
Association
The Exchange National Bank of W inter
Haven
Hardwick Bank & Trust Company
Normandy Carpets Employees' Credit Union
CB&T Second Mortgage Company (in
organization)
Columbus Bank and Trust Company
CBT-lnterim, Inc. (in organization)
Commercial Bank & Trust Company
The Citizens Bank of Montezuma (change
title to The Bank of Macon County)
Bank of Oglethorpe

Page
100
100
100
100
96
100
101
100
100
68
68
100
100

96
101
101
101
90
90
100
100
100
100
100
101
101
100
100
100
100
100
56
56
102
102
102
102
54
54

BANK ABSORPTIONS APPROVED BY THE CORPORATION
State

Bank

Valdosta

Illinois

Town or City

Investors of Georgia, Inc.
The Park Avenue Bank

Arlington Heights
Chicago

Indiana

Cross Plains
East Enterprise
New Albany
Versailles
Vevay

*North Point State Bank
The Bank & Trust Company of Arlington Heights
Drovers Bank of Chicago (in organization)
*The Drovers' National Bank of Chicago
The Cross Plains State Bank
East Enterprise State Bank
American Bank
Floyd County Bank
Bank of Versailles
Vevay Deposit Bank

Kentucky

Cynthiana

Harrison State Bank Company (in organization)
The Harrison Deposit Bank and Trust Company

Maine

Bangor

Depositors Trust Company of Bangor
(change title to Depositors Trust Company of
Eastern Maine)
The Liberty National Bank in Ellsworth
Gardiner Savings Institution
Hallowell Savings and Loan Association
Depositors Trust Company of Portland
(change title to Depositors Trust Company of
Southern Maine)
Springvale National Bank

Ellsworth
Gardiner
Hallowell
Portland

Springvale
Maryland

Baltimore
Hancock

Hyattsville
Potomac
Salisbury
Silver Spring
Towson
Michigan

Brighton
Frankenmuth
Hartford

Merrill
Newport

Missouri

Hawk Point
Troy

The Equitable Trust Company
Blue Ridge Trust Company (in organization;
change title to The Peoples National Bank of
Hancock)
The Peoples National Bank o f Hancock
Suburban Trust Company
Free State Bank and Trust Company
Truckers and Savings Bank
American Bank of Maryland (change title to
First American Bank of Maryland
Chesapeake National Bank
BSB Bank (in organization)
The Brighton State Bank
Frankenmuth Bank & Trust
VB State Bank (in organization; change title to
Van Buren State Bank)
Van Buren State Bank
The Farmers and Merchants State Bank of
Merrill
Newport Bank (in organization; change title
to The Newport State Bank)
The Newport State Bank
Peoples Bank of Hawk Point (change title to
Peoples Bank of Lincoln County)
Citizens Bank of Troy

'Banks absorbed in “ emergency" approvals under provisions of Section 18(c).




49
Page
56
56
98
98
54
54
57
85
63
63
57
85
102
102

98
98
86
86

99
99
83

102
102
75
75
83
87
87
102
102
88
102
102
88
102
102

91
91

50

FEDERAL DEPOSIT INSURANCE CORPORATION

State

Town or City

Bank

New Jersey

Atlantic City
Clifton

Guarantee Bank
Phillipsburg and Pohatcong Branches— New
Jersey Bank (National Association)
Bank of West Jersey

64
97

Burlington County Trust Company
Swedesboro Trust Company
The Town & Country Bank

97
69
64

Albany Savings Bank
The Citizens Bank
Erie Federal Savings and Loan Association
The Bank of Le Roy
(change title to Genesee
Country Bank)
East River Savings Bank

71
81
58

The New York Bank for Savings
Oneida Federal Savings and Loan
Association
First Chartered Savings and Loan
Association

84

The Cumberland Bank
Morehead Plaza Branch— Bank of North
Carolina, National Association
County Bank & Trust Company (in
organization)
Peoples Bank & Trust Company

81

Delran Township
(P.O. Delran)
Moorestown
Swedesboro
Raritan Township
(P.O. Flemington)
New York

Albany
Attica
Buffalo
Le Roy

New York
(Manhattan)
Oneida
Port Jervis

North Carolina

Fayetteville
Jacksonville
Morehead City
Rocky Mount

Ohio

Harpster
Union Township
(P.O. Morristown)

Page
69

81
58

71
84

79
79
81

Upper Sandusky

The Harpster Bank
F. S. B. C. State Bank (in organization;
change title to The Eastern Ohio Bank)
The Eastern Ohio Bank
The Commercial Savings Bank

Oregon

Coos Bay
Lincoln City
McMinnville
Medford

Western Bank
Lincoln Bank
Yamhill County Bank
Crater National Bank

89
67
67
89

Pennsylvania

Abbottstown
Bedford
Brockway
Brookville
Hanover
Hawley
Johnstown
Scranton

Abbottstown State Bank
The First National Bank in Bedford
Brockway Citizens Bank
Brookville Bank and Trust Company
Farmers Bank and Trust Company of Hanover
The First National Bank of Hawley
Johnstown Bank and Trust Company
West Side Bank (change title to First State Bank)

73
60
72
72
73
76
60
76

South Dakota

Morristown
W atertown

First Security Bank
Farmers and Merchants Bank and Trust of
Watertown

93




65
102
102
65

93

BANK ABSORPTIONS APPROVED BY THE CORPORATION
State

Town or City

Bank

Texas

Austin

900 Congress State Bank (in organization;
change title to Texas State Bank)
Texas State Bank
Clifton Bank
New Clifton State Bank (in organization)
Greenville Avenue Bank & Trust
Walnut Hill & Greenville Bank (in
organization; change title to Greenville
Avenue Bank and Trust)
Bank of Fort W orth
Camp Bowie Bank (in organization; change
title to Ridglen Bank)
New Bank of Fort W orth (in organization;
change title to Bank of Fort Worth)
Ridglen Bank
Allied Champions Bank (in organization)
Champions Bank
East Freeway State Bank (in organization;
change title to First State Bank and Trust
Company of Houston)
First State Bank and Trust Company of
Houston
Main Bank of Houston
New Main Bank of Houston (in organization)
Lewisville State Bank
New Lewisville State Bank (in organization)

Clifton
Dallas

Fort W orth

Houston

Lewisville

Utah

Helper
Kamas
Logan
Ogden

Salt Lake County
(P.O. Salt Lake City)
Virginia

Herndon

McLean
Springfield
Other Areas
Puerto Rico

Mayaguez
Ponce
San Juan
(P.O. Hato Rey)
San Juan

The Helper State Bank
Kamas State Bank
Commercial Security Bank of Logan
Commercial Security Bank
Citizens National Bank (change title to The
Citizens Bank)
Commercial Security Bank of Salt Lake

Arlington Trust Company, Incorporated
(change title to First American Bank of
Virginia)
Clarendon Bank & Trust
Alexandria National Bank of Northern Virginia

Page

102
102
102
102
102

102
102
102
102
102
102
102

102
102
102
102
102
102
67
77
70
67
77
55

59
59
59

Banco Comercial de Mayaguez
"Banco Credito y Ahorro Ponceno
*Banco de Ahorro de Puerto Rico

78
62
78

Banco de Santander-Puerto Rico
Banco Popular de Puerto Rico

62
62

*Banks absorbed in “ emergency” approvals under provisions of Section 18(c).




51

FEDERAL DEPOSIT INSURANCE CORPORATION

52

BANKS INVOLVED IN ABSORPTIONS DENIED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1978
State

Town or City

Indiana

Edinburg
Franklin

The Edinburg State Bank
Franklin Bank and Trust Company

103
103

Mississippi

Magnolia
McComb

Southwest Mississippi Bank (change title to
First Bank of Southwest Mississippi)
BankofM cCom b

105
105

Linwood
Westmont

The Mainland Bank
First Peoples Bank of New Jersey

107
107

New Jersey




Bank

Page

53

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

American Pacific
State Bank
Los Angeles (Sun
Valley), California

Banking offices
in operation
Before

After

16,584

to acquire assets and
assume deposit liabilities o f

North Hollywood
Branch—
The Hongkong Bank
of California
North Hollywood

3,372*

*Total deposits of office to be transferred by the Hongkong
Bank of California. Assets not reported by office.

Summary report by Attorney General,
September 21, 1977
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
January 1 1 ,1 9 7 8
American Pacific State Bank, Los Angeles,
California ("Am erican"), a State nonmember
insured bank w ith to ta l reso urce s o f
$ 1 6 ,5 8 4 ,0 0 0 and IPC deposits of $ 1 2 ,2 7 9 ,000, has applied, pursuant to Section 18(c)
and other provisions of the Federal Deposit
Insurance Act, for the FDIC's prior consent to
acquire a portion of the assets of and assume
liability to pay a portion of the deposits made
in The Hongkong Bank of California, San Fran­
cisco, California ("Hongkong"), and to estab­
lish the North Hollywood Branch (total
deposits $3 ,372 ,0 00 ) of the latter as a
branch of American, increasing the number of
its offices to two.
Competition. American operates its sole
office in Sun Valley, a section of the city of Los
Angeles located approximately 15 miles
northwest of the downtown area.
Hongkong operates nine offices with its head
office and one branch in San Francisco, five
branches in Los Angeles County, one branch in
S acram ento, and one in Agana, Guam.
Hongkong has indicated its intention to confine
its operations to major financial and foreign
trade centers and to reduce its retail business,
and the disposition of its North Hollywood
Branch is a part of this retrenching program.




The proposed transaction would have its
most direct and immediate effects in the trade
area of Hongkong's North Hollywood Branch.
This branch is located approximately 11 miles
northwest of downtown Los Angeles in a
section of the city known locally as North
Hollywood (estimated population 93,000). The
area is primarily a "bedroom " community with
economic activity limited to retail and service
type businesses. In this local area, five banks
maintain seven offices holding aggregate IPC
deposits of $198,368,000. Hongkong holds
the smallest share ($2,946,000), a nominal 1.5
percent of IPC deposits. American is not
represented in the trade area. Following the
proposed transaction, American would acquire
Hongkong's small share of these deposits.
Hongkong's North Hollywood Branch is
located approximately 4 road-miles southwest
of American's sole office. Both banks are
located in the Los Angeles metropolitan area
which can be approximated by Los Angeles
County. Within Los Angeles County, American
ranks as the 64th largest commercial banking
organization and has a 0.04-percent share of
the countywide IPC deposits. Hongkong ranks
31 st with a 0.16-percent share. Although some
existing competition between the two banks
w o uld be elim ina ted by the proposed
tra n sa ctio n , the ad d itio n o f H o ng kong 's
deposits to American's totals would constitute
a de minimus addition to existing concentration
levels w ithin the county and would not
perceptibly a ffe ct its commercial banking
structure.
As California law provides for statewide
branching, American could enter the trade area
through de novo branching, although expansion
into this area dominated by other banks is not
anticipated. Hongkong is retrenching and is not
likely to expand its operations in the area
through de novo branching.
For these reasons, it appears that the
approval of the transaction would not eliminate
significant existing or potential competition be­
tween the proponents, nor would it affect the
structure of commercial banking in any relevant
area. The Board of Directors, therefore, has
concluded that the proposed transaction would
not, in any section of the country, substantially
lessen competition, tend to create a monopoly,
or in any other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. American has satisfactory financial
and managerial resources and the proposed
transaction should have no adverse effect on
these resources. Its future prospects appear
favorable.

FEDERAL DEPOSIT INSURANCE CORPORATION

54

Convenience and Needs of the Community
to be Served. American will not offer the trust
and international services presently offered by
Hongkong, and American's lending limits are
lower. The effect on convenience and needs is
not considered meaningful, however, as the
two largest banks in the State serve the area
and can provide these services to the small
segm ent o f the p o pu latio n w ith in the
community of Sun Valley who require them.
American will offer more aggressive retail
services in this area.
Based on the foregoing, the Board of
Directors has concluded that approval of the
application is warranted.

notice, dispenses with the solicitation of competi­
tive reports from other agencies, and authorizes
the transaction to be consummated immediately.

Resources
(in thousands
of dollars)

The Citizens Bank
of Montezuma
Montezuma, Georgia
(change title to The
Bank of Macon County)

Banking offices
in operation
Before

After

13,729

1

2

8,831

1

to consolidate w ith

Bank of Oglethorpe
Oglethorpe
Resources
(in thousands
of dollars)

Drovers Bank of
Chicago
(in organization)
Chicago, Illinois

Banking offices
in operation
Before

12,127

0

After

1

to purchase certain assets
and assume the deposit
liabilities o f

The Drovers' National
Bank of Chicago
Chicago

260,275

1

Approved under emergency provisions. No
report received from the Attorney General.
Basis for Corporation approval,
January 19, 1978
Pursuant to Sections 5 and 18(c) and other
provisions of the Federal Deposit Insurance Act,
applications have been filed for Federal deposit
insurance on behalf of Drovers Bank of Chicago,
Chicago, Illinois, a newly chartered State non­
member bank having $12,126,501 in capital,
and for consent to its purchase of certain assets
of and assumption of liability to pay deposits
made in The Drovers' National Bank of Chicago,
Chicago, Illinois, w ith total resources of
$260,275,000 as of June 30, 1977.
As of January 19, 1978, The Drovers'
National Bank of Chicago had deposit and other
liabilities of some $233,100,000 and operated
one office. On January 19, 1978, the Federal
Deposit Insurance Corporation was appointed as
Receiver of The Drovers' National Bank of
Chicago.
The Board of Directors finds that the failure of
The Drovers' National Bank of Chicago requires it
to act immediately and thus waives publication




Summary report by Attorney General,
October 18, 1977
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
January 25, 1 978
The Citizens Bank of Montezuma, Mon­
tezuma, Georgia ("Citizens Bank” ), an insured
State nonmember bank with total resources
of $1 3,72 9,00 0 and total IPC deposits of
$10,022,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to consolidate with the Bank of
Oglethorpe, Oglethorpe, Georgia ("Oglethorpe
Bank"), an insured State nonmember bank with
total resources of $8,831,000 and total IPC
deposits of $7,267,000, under a new charter
with the title "The Bank of Macon County."
Oglethorpe Bank's sole office would become
the only branch of the resultant bank.
Competition. The two banks are located in
cities situated about 2 miles apart in Macon
County which is in south-central Georgia. The
county had a 1970 population of 12,933
which represented a 1.8-percent decline from
the 1 960 figure. In this very sparsely populated
agricultural area, the banking market most
relevant to an evaluation of this proposed
transaction would, in our opinion, be an area
within a radius of approximately 20 road-miles
of Montezuma and Oglethorpe. This would
include all of Macon County and adjoining
portions of Sumter, Schley, Taylor, Crawford,
Peach, Houston, and Dooly Counties. This area
is primarily rural with an economy predicated
chiefly upon agriculture. The city of Americus,
with a 1970 population of 16,091, is located

BANK ABSORPTIONS APPROVED BY THE CORPORATION
17 road-miles southwest of Oglethorpe and
serves as the area's economic center. Americus
and the city of Perry, which had a 1970
population of 7,771 and is about 20 road-miles
northeast of Montezuma, provide the major
sources of nonfarm employment and shopping
convenience to local residents. The relevant
market, with the exception of Americus and
Perry, has experienced a moderate decline in
population. Its median household buying level is
substantially below the 1976 state median.
Some direct competition would be elimi­
nated by this proposal. The competitive effect
of the transaction, however, is regarded as
insignificant in light of the number of alternative
sources of commercial banking services avail­
able. Of the 18 banks operating 22 banking
offices in the relevant area, the proponents rank
6th and 1 2th in percentage of total deposits
held. The resultant bank would hold merely
10.2 percent of such deposits and would rank
third. It appears that a competitive banking cli­
mate would continue and no significant adverse
competitive effects would accrue as a result of
the proposed consolidation.*
Under Georgia's statutes, each bank may
branch within Macon County, and as a result,
the prospect of increased competition between
the proponents by their de novo expansion
would be eliminated by the proposal. In light of
the low population density, below average
economic indices (such as median household
buying levels), and the current employment and
shopping commutation patterns, however, such
expansion does not appear to be likely.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. Both banks have satisfactory finan­
cial and managerial resources, and the resultant
bank would have favorable future prospects.
Convenience and Needs of the Community
to be Served. The proposed consolidation
would not substantially change the services
now available to customers of either bank,
except that the resultant bank would have an
increased lending limit.

’ Principals of Citizens Bank acquired effective stock con­
trol of Oglethorpe Bank on June 27, 1977. Since the cur­
rent affiliation of the two banks has not heretofore been
subject to regulatory scrutiny, the affiliation is of no per­
suasive value in determining, for purposes of the Bank
Merger A ct what competitive impact, if any, the proposed
transaction may have. Therefore, the Board of Directors
has ignored the affiliation in its assessment of the pro­
posal.




55

Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
of dollars)

Commercial Security
Bank
Ogden, Utah

Banking offices
in operation
Before

After

323,987

15

17

20,865

2

to merge with

Commercial Security
Bank
of Salt Lake
Salt Lake County (P.O.
Salt Lake City)

Summary report by Attorney General,
November 15, 1977
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
January 25, 1978
Commercial Security Bank, Ogden, Utah
("Applicant"), an insured State nonmember
bank with total resources o f$ 323 ,9 87 ,0 00 and
total IPC deposits of $238,877,000, has
applied, pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act,
for the Corporation's prior consent to merge
with Commercial Security Bank of Salt Lake,
Salt Lake County (P.O. Salt Lake City), Utah
("Other Bank"), an insured State nonmember
bank with total resources of $2 0,86 5,00 0 and
total IPC deposits of $14,956,000. The banks
would merge under the charter and title of
Applicant, and incident to the transaction, the 2
offices of Other Bank would be established as
branches of the resulting bank bringing the total
number of its offices to 17.
Competition. E ssentially a co rp o ra te
reorganization, the proposal would provide a
m eans by w h ic h C o m m e rc ia l S e c u rity
Bancorporation, Ogden, Utah, a registered bank
holding company, may consolidate most of its
operations. The proponents have been under
common control since 1974. The proposed
merger would not affect the structure of
commercial banking or the concentration of
banking resources within any relevant market.
In view of the foregoing, the Board of
Directors is of the opinion that the proposed

FEDERAL DEPOSIT INSURANCE CORPORATION

56

merger would not, in any section of the country,
tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for the purposes of this proposal. The financial
and managerial resources of the resultant bank
would be satisfactory and its future prospects
appear favorable.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

Resources
(in thousands
of dollars)

The Park Avenue Bank
Valdosta, Georgia

11,237

Banking offices
in operation
Before

After

2

2

to merge with

Investors of Georgia,
Inc.
Valdosta

271

Summary report by Attorney General,
November 30, 1977
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
February 16, 1978

Resources
(in thousands
of dollars)

Hardwick Bank & Trust
Company
Dalton, Georgia

49,972

Banking offices
in operation
Before

4

After

4

to purchase the assets
and assume the liabilities o f

Normandy Carpets
Employees'
Credit Union
Dalton

99

Approved under emergency provisions. No
report requested from the Attorney General.
Basis for Corporation approval,
February 1 6, 1 978
Pursuant to Section 18(c) and other provi­
sions of the Federal Deposit Insurance Act,
Hardwick Bank & Trust Company, Dalton,
Georgia, a State nonmember insured bank with
total resources of $4 9,97 2,00 0 and total IPC
deposits of $41,468,000, has applied for the
Corporation's prior consent to purchase the
assets and assume the liabilities of Normandy
Carpets Employees' Credit Union, Dalton,
Georgia ("Credit Union” ), a State-chartered,
noninsured financial institution w ith total
resources o f $ 9 9 ,0 0 0 and lia b ilitie s of
$91,000.
The Board of Directors finds that the fact
that the Georgia Department of Banking and
Finance has taken possession as receiver of
Credit Union requires it to act immediately and
thus waives publication of notice and dispenses
with ths solicitation of competitive reports from
other agencies, and authorizes the transaction
to be consummated immediately.




The Park Avenue Bank, Valdosta, Georgia
("Park Bank"), an insured State nonmember
bank with total resources o f$ 1 1,237,000 and
total IPC deposits of $8,734,000, has applied
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
Corporation's prior consent to merge, under its
charter and title, with Investors of Georgia, Inc.,
Valdosta, Georgia ("Company"), a noninsured
financial company with total resources of
$2 71 ,0 00 (as of November 14, 1977). Park
Bank presently operates one branch in the city
of Valdosta. Company occupies office space at
Park Bank's main office, and no additional
offices are involved in the proposed merger.
Competition. Both institutions operate in
Lowndes County, Georgia, which borders on
the State of Florida. The county, which had a
1970 population of 55,112, is primarily rural
with an economy predicated chiefly upon
agriculture. The city of Valdosta, (1970
population 32,303) serves as the county seat
and the area's economic center. Six banking
organizations operated a total of 14 banking
offices in the county. The local banking market
is dominated by three offices of the State's
largest banking organization, which holds 37.8
percent of the county's IPC deposits. Park Bank
holds 7.3 percent of such deposits and ranks
fourth in the county by that measure. The
proposed transaction will have no effect upon
these percentages and is not regarded as
having any significant effect upon competition
in Lowndes County.
Due to the asset structure and nature of
Company, and the fact that it was established
by the principal shareholders of Park Bank, it is
doubtful that direct competition with Park Bank
has ever existed. As Company is phasing down
its activities with a view toward possible

BANK ABSORPTIONS APPROVED BY THE CORPORATION
dissolution, the potential for future competition
is nonexistent and not regarded as material to
the consideration of the proposed transaction.
Based on the foregoing, the Board of
Directors is of the opinion that the proposed
transaction would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources; Future
Prospects. Both institutions have adequate
financial and managerial resources for the
p u rp o s e o f th is p ro p o s a l. W ith th e
contemplated increase in capital, the resultant
bank would have favorable future prospects.
Convenience and Needs of the Community
to be Served. The proposed merger would have
no material effect on services now available to
customers in the service area. Considerations of
convenience and needs of the community are
consistent with approval of the application.
Based on the foregoing, the Board of
Directors has concluded that approval of the
application is warranted.

Resources
(in thousands
of dollars)

Bank of Versailles
Versailles, Indiana

Banking offices
in operation
Before

After

7,257

2

3

1,957

1

to merge with

The Cross Plains
State Bank
Cross Plains

Summary report by Attorney General,
September 14, 1977
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
February 16, 1978
Bank of Versailles, Versailles, Indiana, a State
nonmember insured bank, with total resources
of $7 ,257,000 and total IPC deposits of
$5,602,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge, under its charter and
title, with The Cross Plains State Bank, Cross
Plains, Indiana ("S ta te B a n k"), a S tate
nonmember insured bank with total resources
of $1 ,957,000 and total IPC deposits of
$1,510,000. Incident to the transaction, the
sole office of State Bank would be established
as a branch of the resultant bank.




57

Competition. The proponents are located in
Ripley County, which is in southeastern Indiana.
Bank of Versailles operates a main office and a
branch in Versailles (1970 population 1,120),
the county seat, approximately 10 road-miles
northwest of Cross Plains where State Bank
maintains its sole office. Ripley County (1970
population 21,138) is rural with an economy
predicated chiefly upon agricultural activities.
The s o u th e rn p o rtio n s o f th e c o u n ty
experienced a population decline in the period
1960 to 1970 with the town of Versailles
recording a 12-percent loss. The county ranks
substantially below the 1976 State median
household buying level.
Of the 8 commercial banks operating 11
offices in Ripley County, Bank of Versailles and
State Bank are the smallest 2, holding 5.0 per­
cent and 1.3 percent of the county's IPC
deposits, respectively. The resultant bank
would hold 6.3 percent of such deposits and
continue to rank as the county's smallest com­
mercial bank in IPC deposit holdings. It would
appear that the structure of commercial bank­
ing in Ripley County would not be significantly
effected by the proposed transaction.*
Under Indiana statutes, banks headquartered
in Ripley County may branch de novo and
merge only within the confines of the county,
subject to home office protection. In light of the
limited scope of operation of the proponents
and the limited number of towns in the county
which are not already served by a home office
or branch of an established bank, de novo
branching appears an unlikely vehicle for
increased future competition between these
two banks.
The primary trade area most affected by the
proposed transaction would be the area within a
10-mile radius of Cross Plains, including the
southern portion of Ripley County and adjoining
portions of Dearborn, Ohio, Switzerland, and
Jefferson Counties. The population of the area
is approximately 8,700. A total of four com­
mercial banks operate five offices in the area
with the proponents ranking third and fourth in
percentage of IPC deposits held. The resultant
bank would hold 30.3 percent of such deposits

‘ On May 23, 1977, Mr. John House, principal stockholder
of the Bank of Versailles, purchased effective stock con­
trol of State Bank. In December, 1977, effective stock
control of both proponents was sold to Frank L. Farrar.
Since the current affiliation of the two banks has not
heretofore been subject to regulatory scrutiny, the affilia­
tion is of no persuasive value in determining, for purposes
of the Bank Merger Act, what competitive impact, if any,
the proposed transaction may have. Therefore, the Board
of Directors has ignored the affiliation in its assessment of
the proposal.

FEDERAL DEPOSIT INSURANCE CORPORATION

58

and remain the smallest competitor in the trade
area. Due to the depressed economic situation
and relatively small market area, the slight
increase in concentration that will result from
this merger is not competitively significant.
A number of alternate sources of commercial
banking services are available in the nearby
urban areas of Madison and LawrenceburgAurora, where a number of the trade area's resi­
dents commute for shopping alternatives and
nonfarm employment. It would appear that a
competitive banking climate would continue in
the market and that no significant adverse com­
petitive effect would accrue as a result of the
proposed transaction.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources of each institu­
tion have been satisfactorily resolved. The
resultant bank is anticipated to have favorable
future prospects.
Convenience and Needs of the Community
to be Served: The proposed merger would
result in no substantial change in the services
now available to customers of either bank. Con­
siderations of convenience and needs of the
community are consistent with approval of the
application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

East River Savings
Bank
New York (Man­
hattan),
New York

Banking offices
in operation
Before

After

1,495,334

13

17

57,384

4

to merge with

Erie Federal Savings
and Loan Asso­
ciation
Buffalo

Summary report by Attorney General,
January 4, 1977
The closest offices of Applicant and Erie are
4 50 miles apart, and according to the applica­
tion, each has an insignificant number of




accounts originating from the area served by
the other. The proposed transaction, therefore,
would not eliminate any significant existing
competition. Erie holds the seventh largest
share (1.2 percent) of deposits held by the 10
thrift institutions presently operating in Erie
County (three savings banks, which hold
approximately .91 percent of Erie County thrift
institutions deposits, and four savings and loan
associations).
In view of Erie's size and position among Erie
County thrift institutions, Applicant's entry into
Buffalo by means of the proposed acquisition
would not have an adverse effect upon com­
petition.
Basis for Corporation approval,
February 24, 1978
East River Savings Bank, New York (Manhat­
tan), New York ("Savings Bank” ), an insured
mutual savings bank with total resources of
$ 1 ,4 9 5 ,3 3 4 ,0 0 0 and to ta l de p o sits o f
$1,391,594,000, has applied, pursuant to
Section 18(c) and other provisions of the
Federal D eposit Insurance A ct, fo r the
Corporation's prior consent to merge, under its
charter and title, with Erie Federal Savings and
Loan A s s o c ia tio n , B u ffa lo , New Y o rk
(“ Association” ), a federally insured savings and
loan association w ith total resources of
$ 5 7 , 3 8 4 , 0 0 0 and t o t a l d e p o s its o f
$51,357,000. Incident to the merger, the 4
offices of Association would become branches
of the resultant bank, increasing to 17 the
number of its offices.
Competition. The market most affected by
the proposed transaction would be Erie County,
New York, where Association operates its head
office and three branches. Erie County (1970
population 1,1 13,49 1) is located in the
northwestern portion of New York State
adjacent to the Canadian border. Buffalo (1970
population 462,768) is the area's largest city
and chief economic center and is regarded as a
regional center for wholesale, retail, and foreign
trade. While the city of Buffalo has sustained a
decrease in population in the period 1960 to
1970 and ranks below the 1976 State median
household buying level, the surrounding area of
Erie County has shown a reversal of those
trends. Erie County has a stable, diversified
economic base predicated upon heavy industry,
manufacturing, transportation, service, and
retail business.
The Erie County thrift institution market
contains 3 mutual savings banks and 7 savings
and loan associations operating a total of 60
banking offices. Association is the seventh
largest of these institutions, holding 1.3 percent
of the county's thrift institution deposits.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
The primary service area of Savings Bank
consists of the New York City - Long Island
metropolitan market which is located in the
extreme southeastern portion of New York
State. The trade areas of the two proponents
are regarded as separate and distinct, with a
distance of more than 400 miles separating
their nearest offices. It is evident that there is no
significant existing competition between the
two institutions which would be eliminated by
their merger.
Any possibility that competition may develop
between the proponents through de novo
branching appears remote. The modest size of
Association would seem to preclude its entry
in to the d ista n t, in te nsive ly co m p e titiv e
metropolitan New York City market. Savings
Bank, governed by a State statute limiting its de
novo expansion to one such office each year,
would likely prefer entry into an area less distant
than the Buffalo market.
Under the circumstances, the Board of
Directors is of the opinion that the proposed
merger would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The fin a n cia l and m anagerial
resources of each institution, and of the
resulting bank, are considered satisfactory.
W ith th e c o n te m p la te d a d d itio n o f
subordinated debentures to the surplus, the
future prospects of the resulting bank are
favorable.
Convenience and Needs of the Community
to be Served. Savings Bank's entry into the
Buffalo market would make available certain
services not now offered by Association.
Considerations of convenience and needs of
the community to be served are consistent with
approval of the application.




Resources
(in thousands
of dollars)

Arlington Trust
Company, In­
corporated
Herndon, Virginia
(change title to First
American Bank of
Virginia)

59

Banking offices
in operation
Before

After

276,603

15

43

248,595

16

148,222

12

to merge with

Clarendon Bank &
Trust
McLean
and
Alexandria National
Bank
of Northern Virginia
Springfield

Summary report by Attorney General,
December 20, 1977
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
February 24, 1978
A rlington Trust Company, Incorporated,
Herndon, Virginia ("A rlingto n T ru st''), an
insured State nonmember bank with total
resources o f$ 2 7 6 ,6 0 3 ,0 0 0 and total IPC
deposits of $ 2 0 9 ,2 4 8 ,0 0 0 , has filed an
application pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act,
seeking the Corporation's prior written approval
to merge with
Clarendon Bank & Trust,
McLean, Virginia ("Clarendon Bank"), with total
resources of $2 48 ,5 95 ,0 00 and total IPC
deposits of $204,137,000, and Alexandria
National Bank of Northern Virginia, Springfield,
Virginia ("Alexandria N ational"), w ith total
resources of $1 48 ,2 22 ,0 00 and total IPC
deposits of $126,991,000. The resultant bank
will operate under the charter of Arlington Trust
and with the title First American Bank of
Virginia. The 17 offices of Clarendon Bank
(including 1 approved but unopened branch)
and 12 offices of Alexandria National would be
established as branches of the resultant bank,
and incident to the merger, the main office
location would be redesignated to the present
main o ffice site of Clarendon Bank. The
resultant bank would commence operations
with a total of 44 offices.

60

FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. All three banks are controlled
by Financial General Bankshares, Inc.,
Washington, D.C. This holding company is the
eighth largest commercial banking organization
in Virginia, controlling eight commercial banks
w h o s e t o t a l d e p o s it s a g g r e g a t e
$773,670,000, or 5.0 percent of the State's
total commercial bank deposits. The sole
purpose of the proposed merger is to enable
F in a n cia l G eneral B an ksha res, Inc. to
consolidate its operations in Northern Virginia.
The proposed merger is essentially a corporate
reorganization and would not a ffe c t the
structure of commercial banking or the
concentration of banking resources in any
relevant market area.
Under those circumstances, the Board of
Directors is of the opinion that the proposed
merger would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. Each of the three proponents has
adequate financial and managerial resources for
the business they conduct, as would the
resultant bank. The future prospects of the
resultant bank are favorable.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent.
On the basis of the foregoing, the Board of
Directors has concluded that approval of the
application is warranted.

Basis for Corporation approval,
March 10, 1978
Pursuant to Section 18(c) and other provi­
sions of the Federal Deposit Insurance Act,
Imperial Bank, Los Angeles, California, an
insured State nonmember bank with total
resources o f$ 3 1 5 ,8 5 4 ,0 0 0 and total IPC
deposits of $24^,1 76,000, has applied for the
Corporation's prior consent to purchase certain
assets and assume the liability to pay deposits
made in two branches of Camino — California
Bank, Palo Alto, California ("Camino Bank” ),
also an insured State nonmember bank, with
total resources of $22,111,000 and total IPC
deposits of $17,267,000. The San Jose and
the San Francisco branches (total IPC deposits
of $10,386,000) of Camino Bank would be
established as branches of Imperial Bank under
the terms of the proposed transaction.
The Board of Directors finds that the
probability of imminent failure of the Camino
Bank requires it to act immediately and thus
waives publication of notice and dispenses with
the solicitation of competitive reports from
other agencies, and authorizes the transaction
to be consummated immediately.

Resources
(in thousands
of dollars)

Johnstown Bank and
Trust Company
Johnstown,
Pennsylvania

Banking offices
in operation
Before

After

149,748

16

20

30,191

4

to merge w ith

Resources
(in thousands
of dollars)

Imperial Bank
Los Angeles,
California

315,854

Banking offices
in operation
Before

After

13

15

to purchase certain assets
and assume the deposit
liabilities o f

San Jose and San
10,386*
Francisco Branches —
Camino—California
Bank
Palo Alto

2

'Total IPC deposits of two branches of Camino — California
Bank to be acquired by Imperial Bank. Assets not reported
by office.

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




The First National Bank
in Bedford
Bedford

Summary report by Attorney General,
December 13, 1977
Bank's office locations are limited to Bedford
County, where Applicant at present has no
offices. The closest offices of the two institu­
tions are approximately 25 miles apart and are
located in different markets. No branch offices
of either bank will be closed if the merger is
consummated. Accordingly, the merger should
have no appreciable effect on actual competi­
tion in the market area now served by Bank.
The proposed merger, however, will have an
adverse effect on potential competition in Bed­
ford County. At present eight banks have office
locations there, of which Bank is the second
largest. Banking is highly concentrated: the top
two banks have a combined market share of 51

BANK ABSORPTIONS APPROVED BY THE CORPORATION
percent and the top four have a combined
market share of 76 percent. Bank's market
share is approximately 21 percent. As a
relatively large regional bank, Applicant has the
resources to enter the Bedford County market
de novo or by a less anticompetitive acquisition
of one of the smaller banks. However, there are
numerous potential entrants into the market
from among the banks located in counties sur­
rounding Bedford County, under Pennsylvania's
contiguous county branching laws.
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tially adverse effect on competition.
Basis for Corporation approval,
March 14, 1978
Johnstow n Bank and Trust Company,
Johnstown, Pennsylvania (“ Johnstown Bank''),
an insured State nonmember bank with total
resources of $1 49 ,7 48 ,0 00 and total IPC
deposits of $ 1 2 7 ,2 2 8 ,0 0 0 , has applied,
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
FDIC's prior consent to merge with The First
N a tio n a l B an k in B e d fo rd , B e d fo r d ,
Pennsylvania ("B edford Bank''), w ith total
resources of $ 3 0 ,1 9 1 ,0 0 0 and total IPC
deposits of $25,840,000, under the charter
and title of Johnstown Bank. Incident to the
merger, the 4 existing offices of Bedford Bank
would become branches of the resultant bank,
increasing the number of its authorized offices
to 21.
Competition. Johnstown Bank operates 16
offices: its main office and 7 branches in
Cambria County, 6 branches in Somerset
County, and 2 branches in Westmoreland
County. It has received approval to establish an
additional branch in Cambria County. Bedford
Bank operates four offices in Bedford County:
its main office and one branch in Bedford, one
branch in Schellsburg, and one branch in Manns
Choice.
Bedford County (1970 population 42,353,
down from 42,451 in 1960) is situated
immediately southeast of Cambria County.
Approximately two-thirds of Bedford County is
forest land while the remainder is devoted pri­
marily to agricultural pursuits. Light manufac­
tu rin g , re ta il e s ta b lis h m e n ts , s e rv ic e
enterprises, and tourism provide some diver­
sification for the county's economy. Bedford
County's 1976 median household buying level
was $11,399, some 21 percent below the
comparable State figure.
The effects of the proposed merger would
be confined primarily to the central portion of
Bedford County within a radius of approximate­
ly 1 2 road-miles of the town of Bedford. Bed­
Digitized for ford Bank is one of five commercial banks
FRASER



61

operating a total of nine offices in this portion
of the county and holds the largest share, 32.5
percent, of IPC deposits as of June 30, 1977.
The First National Bank of Everett, located 10
miles east of Bedford, and The Hartley National
Bank of Bedford each hold 24.4 percent, which
is the next largest share of IPC deposits. Johns­
town Bank is not represented in Bedford County
and would merely succeed to Bedford Bank's
share of the deposits. Thus, the structure of
commercial banking in the local market would
not be affected by the proposed merger.
There is no significant existing competition
between the two proponents. Travel between
Johnstown and Bedford is impeded by the
mountainous terrain. Major highways in the area
run north to south, and except for the Penn­
sylvania Turnpike, east-west travel is quite
limited. Residents of the two areas are not likely
to cross commute for shopping or employment.
The closest offices of the proponents are 35
miles apart, and neither bank draws a signifi­
cant measure of business from the other's pri­
mary trade area.
Pennsylvania law limits commercial bank
expansion by either merger or de novo branch­
ing to the county in which the main office is
located and to contiguous counties. Johnstown
Bank has a maximum legal branching area con­
sisting of Bedford, Blair, Cambria, Clearfield,
Indiana, Somerset, and Westmoreland Coun­
ties. Thus, each proponent could legally branch
de novo into areas presently served by the
other. Bedford County, however, recorded a
slight population decline between 1960 and
1970, and its income level is substantially
below that of the State as a whole, which
makes de novo expansion into Bedford County
unattractive for Johnstown Bank. Bedford Bank
is not likely to attempt further de novo expan­
sion due to its relatively limited financial and
managerial resources. Therefore, the proposed
merger would not eliminate any significant
potential competition between the proponents.
As of June 30, 1976, within its maximum
legal branching area, Johnstown Bank had the
sixth largest share of the total deposits of $2.8
billion with 4.4 percent of such deposits. The
proposed merger would add only 0.9 percent to
that share. The proposed merger would not
eliminate any significant existing or potential
competition between Johnstown Bank and
Bedford Bank, nor would it materially affect the
structure of commercial banking in any relevant
area.
Based on the preceding, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.

FEDERAL DEPOSIT INSURANCE CORPORATION

62

Financial and Managerial Resources; Future
Prospects. Both banks have satisfactory finan­
cial and managerial resources and the resultant
bank would have favorable future prospects.
Convenience and Needs of the Community
to be Served. As a result of the proposed
merger, Bedford Bank's customers will enjoy
higher savings deposit interest rates, higher
certificate of deposit rates, easier access to
trust services, and a substantially increased
legal lending limit.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Banco de S antanderPuerto Rico
San Juan, Puerto
Rico

51,664

Banking offices
in operation
Before

After

1

15

196,852*

14

'Deposits of 14 offices of Banco Credito y Ahorro Ponceno
to be acquired by Banco de Santander — Puerto Rico.

Approved under emergency provisions. No
report requested from the Attorney General.
Basis for Corporation approval,
March 31, 1978
Banco de Santander— Puerto Rico, San Juan,
Puerto Rico, an insured Commonwealth-char­
tered nonmember bank with total resources of
$51,664,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
consent to purchase a portion of the assets of
and assume a portion of the liability to pay
deposits made in Banco Credito y Ahorro
Ponceno, Ponce, Puerto Rico, an insured
Commonwealth-chartered nonmember bank.
As an incident to the transaction, 14 offices of
Banco Credito y Ahorro Ponceno with deposits
of $ 1 96 ,8 52 ,0 00 would become branches of
Banco de Santander-Puerto Rico.
As of March 31, 1978, Banco Credito y
Ahorro Ponceno had deposits and other
liabilities of some $6 40 million and operated 50
offices. On that date Puerto Rico Secretary of
Digitized forthe Treasury Julio Cesar Perez closed the bank,
FRASER



Resources
(in thousands
of dollars)

Banco Popular de
Puerto Rico
San Juan,
Puerto Rico

to purchase a portion o f the
assets and assume a portion
o f the deposit liabilities o f

Banco Credito y
Ahorro Ponceno
Ponce

and the FDIC was named Receiver. This
purchase and assumption transaction is a
companion to another transaction by which
Banco Popular de Puerto Rico, San Juan, Puerto
Rico, acquired the other 36 offices of Banco
Credito y Ahorro Ponceno. The majority of the
offices acquired by Banco Santander-Puerto
Rico were in close proxim ity to existing
branches of Banco Popular de Puerto Rico.
The Board of Directors finds that the failure
of Banco Credito y Ahorro Ponceno requires it
to act immediately and thus waives publication
of notice, dispenses with the solicitation of
competitive reports from other agencies, and
authorizes the transaction to be consummated
immediately.

Banking offices
in operation
Before

1,250,233

82

401,346*

After

36

118

to purchase a portion of
the assets and assume a
portion o f the deposit
liabilities o f

Banco Credito y
Ahorro Ponceno
Ponce

'Deposits of 36 offices of Banco Credito y Ahorro Ponceno
to be acquired by Banco Popular de Puerto Rico.

Approved under emergency provisions. No
report requested from the Attorney General.
Basis for Corporation approval,
March 31, 1978
Banco Popular de Puerto Rico, San Juan,
Puerto Rico, an insured Commonwealth-char­
tered nonmember bank with total resources of
$1,250,233,000, has applied, pursuant to
Section 18(c) and other provisions of the
Federal D eposit Insurance A ct, fo r the
Corporation's consent to purchase a portion of
the assets and assume a portion of the liability
to pay deposits made in Banco Credito y Ahorro
Ponceno, Ponce, Puerto Rico, an insured
Commonwealth-chartered nonmember bank.
As an incident to the transaction, 36 offices of
Banco Credito y Ahorro Ponceno with deposits
of $4 01 ,3 46 ,0 00 would become branches of
Banco Popular de Puerto Rico.
As of March 31, 1978, Banco Credito y
Ahorro Ponceno had deposits and other
liabilities of some $6 40 million and operated 50

BANK ABSORPTIONS APPROVED BY THE CORPORATION
offices. On that date Puerto Rico Secretary of
the Treasury Julio Cesar Perez closed the bank,
and the FDIC was named Receiver. This
purchase and assumption transaction is a
companion to another transaction by which
Banco de Santander-Puerto Rico, San Juan,
Puerto Rico, acquired the other 14 offices of
Banco Credito y Ahorro Ponceno, most of
which were in close proximity to offices of
Banco Popular de Puerto Rico.
The Board of Directors finds that the failure
of Banco Credito y Ahorro Ponceno requires it
to act immediately and thus waives publication
of notice, dispenses with the solicitation of
competitive reports from other agencies, and
authorizes the transaction to be consummated
immediately.

Resources
(in thousands
of dollars)

Floyd County Bank
New Albany, Indiana

Banking offices
in operation
Before

40,099

3

19,266

After

7

4

to purchase the assets
and assume the deposit
liabilities of

Am erican Bank
New Albany

Summary report by Attorney General,
March 14, 1978
The main offices of Applicant and Bank are
approximately 1 mile apart in New Albany, plus
Applicant operates two branch offices and
Bank operates one branch in New Albany. It is
therefore obvious that Applicant and Bank are
direct competitors and that the proposed
acquisition would eliminate existing competition
to a significant degree.
Selection of an appropriate geographic
market within which to assess the effect of the
proposed merger on concentration in commer­
cial banking is very difficult because of the
proximity to New Albany of the commercial
area of Clark County and of the city of Louis­
ville, Kentucky. Neither the application nor other
data presently available to the department con­
tains information sufficient to permit a precise
calculation of a relevant geographic market. We
note, however, that of the eight commercial
banks presently operating in Floyd and Clark
Counties, Indiana, Applicant, as of June 30,
1977, was the fifth largest and Bank was the
eighth largest with 11.3 percent and 5.5 per­
cent respectively, of the total deposits held by
the commercial banks in those two counties. If
the merger were consummated, the resulting




63

bank would become the third largest bank with
16.9 percent of the total commercial bank
deposits in the two-county area, and the fourfirm concentration ratio in that area would
increase from 69.2 percent to 73.6 percent.
Basis for Corporation approval,
April 7, 1978
Floyd County Bank, New Albany, Indiana
("Applicant"), an insured State nonmember
bank with total resources of $4 0,09 9,00 0 and
total IPC deposits of $34,005,000, has applied,
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
Corporation's prior consent to purchase the
assets of and assume the liability to pay
deposits made in American Bank, New Albany,
Indiana, an insured State nonmember bank with
total resources of $19,266,000 and total IPC
deposits of $15,772,000. The four offices of
American Bank would be operated as branches
of Applicant, increasing the number of its
offices to seven. In order to effectuate the
transaction, the resultant bank w ill issue
30,000 shares of common stock and place
$ 1 ,400 ,0 00 in subordinated capital notes to
augment its capital structure.
Competition. Floyd County, the State's
second smallest county in land area is located in
southern Indiana and is part of the five-county
L o u is v ille , K e n tu c k y -ln d ia n a S ta n d a rd
Metropolitan Statistical Area. W ith only a
limited amount of industry and manufacturing
activity, the county's economy is largely depen­
dent upon and closely tied to that of Louisville
and Jefferson County, Kentucky, where an esti­
mated one-half of its work force commutes for
employment.
Shopping patterns also point to a close
economic tie between Floyd County and the
neighboring, more populous Clark County,
where recent development activity has cen­
tered. Floyd County's median household buying
level of $13,162 (1976) was substantially
lower than that of the Louisville metropolitan
area and that of Jefferson County, Kentucky.
The proponents' main offices are approx­
imately 1 mile distant from each other along
Spring Street in New Albany, which is a major
east-west artery connecting the city with the
urbanized area of adjoining Clark County. The
main office and drive-in branch of American
Bank are located in the downtown section of
New Albany while Applicant's main office is
situated at the junction of a major north-south
highway providing access to the city of Louis­
ville on the south. Other offices of the propo­
nents serve the western and northern portions
of developed areas of the county and are not
regarded to be in direct competition with each

64

FEDERAL DEPOSIT INSURANCE CORPORATION

other. Of the four commercial banks headquar­
tered in Floyd County, the proponents rank as
the two smallest in share of deposits held. The
resultant bank would hold 34.2 percent of the
county's commercial bank deposits and would
rank as the second largest of three banks in the
county by such a measure.
Intense competition exists in Floyd County
emanating from banks headquartered in
neighboring Jefferson County, Kentucky, which
due to their relative size and central location
exert a significant com petitive influence
throughout the entire Louisville metropolitan
area. In light of the established commutation
patterns, existence of common communication
media, and strong economic ties, the threecounty area of Floyd and Clark Counties,
Indiana and Jefferson County, Kentucky is
regarded as the relevant geographic market for
purposes of determining the com petitive
effects of the proposed transaction.
The three largest Louisville-based commer­
cial banks together hold 70.5 percent of the
area's commercial bank deposits. In com­
parison, A p p lic a n t and A m erican Bank
aggregately hold only 1.6 percent of the
market's commercial bank deposits and rank as
the 11 th and 1 5th largest banks, respectively.
Considering the modest relative size and market
share of the proponents, the proposed transac­
tion is seen as having little competitive impact
on the structure of commercial banking in the
market. Likewise, although a potential exists for
increased competition between the proponents
through future de novo branching activity,
because of the dominance of the Jefferson
County-based banking organizations, elimina­
tion of such future competition is regarded as
having only a limited competitive significance.
Under the circumstances, the Board of Direc­
tors is of the opinion that the proposal would
not, in any section of the country, substantially
lessen competition, tend to create a monopoly,
or in any other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources have been
satisfactorily resolved. The resultant bank, with
the proposed additions to its capital structure, is
anticipated to have favorable future prospects.
Convenience and Needs of the Community
to be Served. The proposed transaction would
result in no substantial change in the services
now available to customers of either bank. Con­
siderations of convenience and needs of the
community are consistent with approval of the
application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.




Resources
(in thousands
of dollars)

The Town & Country
Bank
Raritan Township
(P.O. Flemington),
New Jersey

Banking offices
in operation
Before

36,612

3

18,435*

After

2

5

to purchase the assets and as­
sume the deposit liabilities o f

Phillipsburg and
Pohatcong
Branches —
New Jersey Bank
(National Association)
Clifton

'Total IPC deposits of two offices to be transferred by New
Jersey Bank (National Association). Assets not reported
by office.

Summary report by Attorney General,
January 30, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
May 5, 1978
The Town & Country Bank, Raritan Town­
ship (P.O. Flemington), New Jersey ("Town
Bank” ), an insured State nonmember bank with
total resources of $3 6,612,000 and total IPC
de po sits o f $ 2 7 ,4 1 0 ,0 0 0 , has applied,
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
Corporation's prior consent to purchase the
assets of and assume the liability to pay
deposits made in two branches of New Jersey
Bank (National Association), Clifton, New
Jersey ("National Bank''), with total resources
of $8 34 ,5 11 ,0 00 and total IPC deposits of
$ 6 8 4 ,2 7 2 ,0 0 0 . The P h illip s b u rg and
Pohetcong branches of National Bank, with
total IPC deposits of $18,435,000, would be
established as branches of Town Bank.
Competition. The proposed transaction
involves National Bank's only two branches in
W a rre n C o u n ty , w h ic h are lo c a te d
approximately 72 miles west of its main office.
Warren County (1970 population 73,879) is
located in the western portion of the State
adjoining the Delaware River boundary with
Pennsylvania. Both branches to be acquired are
located along major traffic arteries, north of and
sou th e a st o f the d o w n to w n sectio n o f
P hillip sbu rg. These branches, w h ich are
approximately 15 road-miles distant from the
nearest branch of Town Bank, are regarded as

BANK ABSORPTIONS APPROVED BY THE CORPORATION
competing in a market area which includes the
town of Phillipsburg, the borough of Alpha, and
the townships of Pohatcong, Lopatcong, and
Greenwich in New Jersey and the city of
Easton, Pennsylvania. The market, which had a
1970 population of approximately 60,000, has
a diversified economy encompassing industrial,
agricultural, and commercial activity.
Ten commercial banks operate a total of 20
offices in this market area, with the 3 largest
institutions holding a 77.6-percent market
share of IPC deposits. National Bank presently
holds 7.1 percent of such deposits and ranks as
the market's fifth largest competitor. Town
Bank does not compete in this market and thus,
the proposed transaction is regarded as having
no effect on existing competition or on the local
market structure.
State statutes permit de novo branching
activity throughout New Jersey, subject to
certain home office protection provisions
Town Bank, as an aggressive, rapidly growing
Hunterdon County institution can be regarded
as a potential competitor in adjoining Warren
County markets.
N ational Bank has em barked upon a
retrenchment program with its management
desirous o f concentrating their e ffo rts in
markets in the northeastern portion of the State
where they are more heavily represented. The
potential for increased future competition by
National Bank in this market is not regarded as
significant.
In view of the foregoing, the Board of
Directors is of the opinion that the proposed
merger would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to
financial and managerial resources have been
satisfactorily resolved. The resultant bank, with
the contem plated addition to its capital
structure, is anticipated to have favorable future
prospects.
Convenience and Needs of the Community
to be Served. The proposed transaction would
result in no substantial change in the services
now available in the market. Considerations of
convenience and needs of the community are
consistent with approval of the application.
Based on the foregoing, the Board of
Directors has concluded that approval of the
application is warranted.




65

Resources
(in thousands
of dollars)

The Commercial
Savings Bank
Upper Sandusky, Ohio

Banking offices
in operation
Before

After

39,324

2

3

7,978

1

to acquire the assets and
assume the deposit liabilities
of

The Harpster Bank
Harpster

Summary report by Attorney General,
January 13, 1 978
Ohio law, presently prohibiting branches
across State lines, permits statewide operation
of multibank holding companies. Hence, an outof-county bank could acquire Bank as a means
of entering the Wyandot County market. The
proposed acquisition eliminates Bank as an
entry vehicle.
Given the relatively small size of the banks
and the rural nature of the area, it appears that
the relevant geographic market is— at m ost—
Wyandot County. Applicant, on the other hand,
states that the relevant market includes adja­
cent Marion County. While we recognize that
some residents may go to Marion County to
satisfy their banking needs, a situation common
to most rural banking markets, it nevertheless
appears that the preponderance of Wyandot
County residents bank within the county. None
of the Marion County banks are so large that
they could offer substantially different services
than Applicant.
Applicant and Bank are direct competitors.
Bank is 7 miles from Applicant's main office in
Upper Sandusky and 1 7 miles from its branch
in Carey. There are no intervening banks be­
tween Applicant's main office and Bank. Two
other banks also have offices in Upper San­
dusky. The county's other banks are in Carey,
Sycamore, and Wharton. Those towns are each
10 miles on the "fa r” side of Upper Sandusky
from Harpster. The nearest banks to Bank out­
side the county are the three previously men­
tioned Marion County banks, 15 miles from
Bank. Thus the three banks in Upper Sandusky,
including Applicant, are Bank's only meaningful
com petitors. A pplicant admits that it has
attracted 350 customers from Bank in recent
years.
Six banks operate in Wyandot County. Appli­
cant is the second largest in terms of total
deposits, with a 28 percent market share. It is
the largest in terms of net loans with a 33 per­
cent market share. Bank is the second smallest
with 6 percent of deposits and 7 percent of net

FEDERAL DEPOSIT INSURANCE CORPORATION

66

loans. If the proposed acquisition is consum­
mated Applicant will increase its share of the
market by 6 percent to 34 percent, although its
rank as second largest in terms of deposits and
largest in terms of net loans will remain con­
stant.
In sum, the proposed acquisition would elimi­
nate existing direct competition, increase con­
centration, and diminish potential competi­
tion— in short, it would adversely affect com­
petition. It clearly would be more consistent
with the public interest for an out-of-county
bank, via the holding company vehicle, to
acquire bank as a means of entering the market
de novo than for the second largest bank and a
direct competitor to acquire Bank.
Basis for Corporation approval,
May 5, 1978
The Commercial Savings Bank, Upper
Sandusky, Ohio ("A p p lic a n t"), a State non­
member insured bank w ith total resources of
$ 3 9 ,3 2 4 ,0 0 0 and total IPC deposits of
$ 3 3 ,4 4 7 ,0 0 0 , has applied, pu rsua nt to
Section 18(c) and other provisions of the
Federal D eposit Insurance A ct, fo r the
Corporation's prior consent to acquire the
assets of and assume liability to pay deposits
made in The Harpster Bank, Harpster, Ohio
("O ther Bank"), w ith total resources of
$ 7 ,9 7 8 ,0 0 0 and to ta l IPC d e po sits of
$ 6 ,9 8 3 ,0 0 0 . Incident to the transaction, the
sole o ffic e o f O th e r Bank w o u ld be
established as a branch of Applicant.
Competition. Applicant operates its main
office in Upper Sandusky, in central Wyandot
County, and one branch in Carey, in northwest
Wyandot County. Other Bank operates its sole
office in Harpster, in south-central Wyandot
County. Wyandot County is located in the
northwest portion of Ohio. The area is primarily
agriculturally oriented with some small industry
in the Upper Sandusky area. The population of
the county was 21,826 in 1970, an increase of
178 persons over 1960. Upper Sandusky's
p o pu latio n in 1 9 7 0 was 5 ,6 4 5 , w h ile
Harpster's population in 1970 was 291. The
1976 median household buying level in W yan­
dot County was $12,071, considerably less
than the State level of $14,648.
The primary trade area of Applicant is the
whole of Wyandot County. Applicant has the
second largest share, 29.7 percent, of IPC
deposits aggregating $11 million held by 11
offices of 6 commercial banks located in the
county.
Other Bank's trade area is the southern onehalf of W yandot County, including the town of
Upper Sandusky, and the upper portion of
adjoining Marion County, including the town of
Digitized for Marion. The market had a population estimated
FRASER



at 45,072 in 1970, having registered an
increase of some 2,184 persons since 1960.
Other Bank has the second smallest share, 3.2
percent, of IPC deposits aggregating $21 5 mil­
lion held by 1 7 offices of 7 commercial banks
located in the area.
Upper Sandusky and Harpster are only 7
road-miles apart with no other banking offices
intervening. Therefore, it is evident that some
degree of overlapping of trade areas exists.
Although the proposed transaction would
eliminate some competition between the two
proponents, customers in Other Bank's trade
area would still have a number of choices for
commercial banking services. The resulting
bank would still have only the fourth largest
share, 16.5 percent, of the IPC deposits held by
17 offices of the 6 commercial banks remaining
in the area.
Although both banks may legally establish de
novo branches in Wyandot County, it does not
appear likely that Applicant will establish a
branch in the Harpster area due to the limited
deposit potential there. It also does not appear
likely that Other Bank would establish a branch
in Upper Sandusky considering the fact that
Other Bank has been in business for approx­
imately 95 years and is still operating as a unit
bank. In addition, the elimination of Other Bank
as an independent institution is not regarded as
significant since the bank is not considered a
viable competitor and its future growth poten­
tial is considered weak under present economic
conditions.
Although the Board of Directors recognizes
that consummation of the proposal would have
some serious anticompetitive effects, Other
Bank's weakened condition prevents it from
providing effective competitive banking serv­
ices.
In view of the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The fin a n cia l and m anagerial
resources of Applicant are considered satisfac­
tory. Other Bank has experienced sizable
operating losses during the past few years and
its financial resources are considered marginal.
W ith the contemplated addition to capital, the
future prospects of the resulting bank are
favorable.
Convenience and Needs of the Community
to be Served. The proposed transaction would
assure more competitive banking services in the
local market of Other Bank.
Based on the foregoing information, the
Board of Directors has concluded that approval
of the application is warranted.

67

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

Lincoln Bank
Lincoln City, Oregon

Banking offices
in operation
Before

After

41,045

7

8

2,992

1

to merge with

Yamhill County Bank
McMinnville

Summary report by Attorney General,
February 24, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
May 19, 1978
Lincoln Bank, Lincoln City, Oregon, an
insured State nonmember bank with total
resources of $ 4 1 ,0 4 5 ,0 0 0 and total IPC
deposits of $ 3 2,04 0,00 0,has applied, pursuant
to Section 18(c) and other provisions of the
Federal Deposit Insurance Act, for the FDIC's
consent to merge, under its charter and title,
with Yamhill County Bank, McMinnville, Oregon
(“ County Bank"), a State member bank with
total resources of $2,992,000 and total IPC
deposits of $2,469,000. The sole office of
County Bank would be established as a branch
of Lincoln Bank increasing the total number of
its offices to eight.
Competition. Lincoln Bank operates seven
offices in three counties on the coast of
Oregon, with its head office located in Lincoln
City. County Bank operates as a unit bank in
McMinnville, approximately 45 road-miles
northeast of Lincoln City.
The proposed merger would have its most
direct and immediate impact in Yamhill County.
Yamhill County, with a 1970 population of
40,213, is located on the eastern side of the
Coast Range of mountains in Oregon's most
heavily developed corridor running between
Portland and Eugene. The county is considered
to have a primarily agricultural economy.
McMinnville, w ith a 19 70 population of
10,125, is the largest city and serves as the
county seat. The city has experienced rapid
growth in recent years and has a favorable
economic outlook.
Six commercial banks operate a total of 12
offices in Yamhill County. Dominating the area
is a Portland-based bank with five offices and
51.5 percent of the market's IPC deposits.
County Bank is the smallest institution in the
market holding only a 2.1 -percent market share
of the IPC deposits. Lincoln Bank operates one
branch in Willamina (located approximately 21




road-miles southwest of McMinnville) which
holds 5.4 percent of the county's IPC deposits.
The resultant bank's 7.5-percent market share
of the IPC deposits would have no significant
effect on competition or on the structure of the
local market.
State statutes preclude branching into com­
munities of less than 50,000 population that
already have banking offices. Lincoln Bank,
therefore, is precluded from engaging in any de
novo expansion into McMinnville. County
Bank's modest size and limited resources pre­
clude any expansion activity at this time. The
potential for increased future competition be­
tween these tw o institutions is not regarded as
significant.
Financial and Managerial Resources; Future
Prospects. Lincoln Bank has satisfactory finan­
cial and managerial resources. The resultant
bank is anticipated to have favorable future
prospects.
Convenience and Needs of the Community
to be Served. Comparisons of loan rate
schedules indicate that Lincoln Bank's rates are
generally lower than the prevailing rates in
effect at County Bank. This, along with an
increased lending limit, should be favorably
received by customers in Yamhill County.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Commercial Security
Bank
Ogden, Utah

Banking offices
in operation
Before

After

353,852

19

22

15,969

3

to purchase the assets and
assume the deposit liabilities
of

The Helper State Bank
Helper

Summary report by Attorney General,
May 11, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
May 24, 1978
Commercial Security Bank, Ogden, Utah
("Commercial Bank"), an insured State nonmem­
ber bank with total resources of $353,852,000
and total IPC deposits of $253,833,000, has

68

FEDERAL DEPOSIT INSURANCE CORPORATION

applied, pursuant to Section 18(c) and other provi­
sions of the Federal Deposit Insurance Act, for the
FDIC's consent to purchase the assets of and
assume the liability to pay deposits made in The
Helper State Bank, Helper, Utah ("State Bank” ), an
insured State nonmember bank with total
resources of $15,969,000 and total IPC deposits
of $13,666,000.* Incident to the transaction, the
3 offices of State Bank would be established as
branches of Commercial Bank, increasing the num­
ber of its offices to 22.
Competition. Commercial Bank's operations
are primarily confined to the central portion of
the State in an area known as the "W asatch
Front.” This highly developed strip running
north-south is bordered on the west by moun­
tains, desert, and the Great Salt Lake, and on
the east by rugged mountainous terrain. The
Wasatch Front, while representing less than 5
percent of the State's land area, holds more
than 75 percent of its population in an
urbanized area that includes most of Utah's
major cities.
State Bank operates in Carbon and Emery
Counties located on a plateau east of these
mountains. This area's 1970 population was
20,784 and it had a 1976 median household
buying level substantially below the State's
figure. Population declines are in evidence for
the period 1960 to 1970; however, the future
economic prospects appear favorable due to
vast deposits of coal found in the area. The city
of Price (1970 population 6,218) serves as the
seat of Carbon County and is a principal com­
mercial center.
The proposed transaction would have its
most direct and immediate effect in Carbon and
Emery Counties, which contain 5 commercial
banks operating 12 offices. State Bank, Utah's
24th largest bank, holds 15.4 percent of this
market's commercial bank deposits thereby
ranking as the market's 3rd largest bank. The
State's three largest commercial banks are rep­
resented in this market and aggregately hold
82.8 percent of the deposits. Since Commercial
Bank, the State's fourth largest bank, is not rep­
resented, the proponents operate in separate,
distinct markets and are not in direct competi­
tion. Therefore, consummation of the proposed
transaction would have no significant effect on
existing competition.
Utah statutes permit statewide branching,
except in cities or towns where banks already
do business. Although Commercial Bank is

presently prohibited from branching into the
community of Helper, it could establish de novo
offices at other sites in State Bank's trade area.
However, in light of the number of existing
banking offices in this large, but relatively
sparsely populated area, the elimination of
some potential for future competition between
the proponents is not regarded as significant.
State Bank's modest size and limited financial
and managerial resources appear to preclude
any meaningful de novo expansion into areas
now served by Commercial Bank.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. Both banks have acceptable financial
and managerial resources and the proposed
transaction should have no adverse effect on
these resources. The future prospects of the re­
sultant bank appear favorable.
Convenience and Needs of the Community
to be Served. Consummation of the proposed
transaction will provide residents with a number
of commercial banking services not presently
available at State Bank, including trust services,
credit card plans, mortgage banking, and a sub­
stantially increased lending limit.

Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Commercial Bank &
Trust Company
Miami, Florida

Banking offices
in operation
Before

95,223

3

12,513*

After

4

1

to purchase assets and as­
sume deposit liabilities of

North Miami B ranchCity National Bank
of Miami
Miami

‘ Total deposits of office to be transferred by City National
Bank of Miami. Assets not reported by office.

Summary report by Attorney General,
April 11, 1978
'Data concerning Commercial Security Bank, Ogden, Utah
have been adjusted to reflect the merger of that bank with
Commercial Security Bank of Salt Lake, Salt Lake County
(P.O. Salt Lake City), Utah, effected February 28, 1978.




We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.

69

BANK ABSORPTIONS APPROVED BY THE CORPORATION
Basis for Corporation approval,
June 26, 1978
Commercial Bank & Trust Company, Miami,
Florida ("Commercial Bank” ), an insured State
nonmember bank w ith total resources of
$ 9 5 ,2 2 3 ,0 0 0 and total IPC deposits of
$80,628,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the FDIC's prior con­
sent to purchase the assets of and assume the
liability to pay certain deposits made in the
North Miami branch of City National Bank of
Miami, Miami, Florida ("City Bank"), with total
resources of $3 96 ,4 51 ,0 00 and total IPC
deposits of $332,750,000. The North Miami
branch, with aggregate deposits of approx­
imately $12,513,000, would be operated as a
branch of Commercial Bank.
Competition. The proposed transaction
would have its most direct and immediate
impact in Dade County. The economy of the
area relies primarily upon recreation and tour­
ism. The county's population as of year-end
1976 was approximately 1.5 million.
Commercial Bank operates its three offices
in the county. City Bank's North Miami branch is
located approximately 5 miles north of Com­
mercial Bank's nearest office. Given the prox­
imity of the applicant's offices to the North
Miami branch, approval of the proposed trans­
action would eliminate some direct competi­
tion between City Bank and Commercial Bank.
However, within Dade County, 71 banks, repre­
senting 47 banking organizations, operate 161
offices. Commercial Bank holds 1.3 percent of
the county's IPC deposits, thereby ranking 18th
largest in IPC deposits among commercial
banks. The proposed transaction would transfer
only 0.2 percent of the deposits to Commercial
Bank, increasing its share of the deposits to 1.5
percent. The deposits to be acquired appear
even more inconsequential when the existing
concentration level of commercial banking in
the county is analyzed. The three largest bank­
ing organizations hold an aggregate share of 41
percent. Overall, given Commercial Bank's small
deposit percentage and the existing level of
commercial banking concentration in Dade
County, the proposed transaction would have
no significant effects on existing competition.
Consummation of the proposed transaction
would not affect future competition in the
county. The proponents would continue to
operate in the county and the deposits to be
acquired by Commercial Bank' constitute such
an insignificant share of the total deposit base
that Commercial Bank would not derive any
major competitive advantage over other banks
in the area.




The Board of Directors is of the opinion that
the proposed transaction would not, in any sec­
tion of the country, substantially lessen com­
petition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources have been
satisfactorily resolved. The resultant bank is
anticipated to have favorable future prospects.
Convenience and Needs of the Community
to he Served. The proposed transaction would
serve to substitute Commercial Bank for City
Bank at the North Miami branch site and would
result in little change in the level of services
offered the community. Considerations of con­
venience and needs of the community are con­
sistent with approval of the transaction.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Guarantee Bank
Atlantic City, New
Jersey

Banking offices
in operation
Before

After

252,102

16

18

21,025

2

to merge with

Swedesboro Trust
Company
Swedesboro

Summary report by Attorney General,
April 27, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis fo- Corporation approval,
June 26, 1978
Guarantee Bank, Atlantic City, New Jersey,
an insured State nonmember bank with total
resources of $2 52 ,1 02 ,0 00 and total IPC
deposits of $200,412,000, has applied, under
Section 18(c) and other provisions of the Federal
Deposit Insurance Act, for the FDIC's prior con­
sent to merge with Swedesboro Trust Com­
pany, Swedesboro, New Jersey, a State-char­
tered member bank with total resources of
$ 2 1 ,0 2 5 ,0 0 0 and total IPC deposits of
$18,176,000. The proposed merger would be
effected under the charter and title of
Guarantee Bank.

70

FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. Guarantee Bank operates 15
branches in Atlantic, Cape May, and Cumber­
land Counties in southeast New Jersey.
Swedesboro Trust Company operates its main
office in Swedesboro and a branch in W oolwich
Township located approximately 3 road-miles
from its main office. Both offices are located in
western Gloucester County in an area that has
remained relatively rural and undeveloped. The
borough of Swedesboro (1970 population of
2,287) and surrounding area are experiencing
some new commercial and residential construc­
tion and appear to have favorable future
prospects.
The relevant market in which to assess the
impact of the proposed merger is regarded as
the area within an approximate 10-road-mile
radius of Swedesboro, which includes portions
of Gloucester and Salem Counties. Thirteen
commercial banks operate a total of 28 offices
in this market, with representatives of several of
the S tate's larger banking organizations
included.
Swedesboro Trust Company holds 9.9 per­
cent of the market's IPC deposits and ranks as
the fifth largest bank in the market by such a
measure. Guarantee Bank is not represented in
the market as its nearest office is located
a p p r o x im a t e ly 3 0 r o a d - m ile s f r o m
Swedesboro. The proponents, therefore, are
not in direct competition and the transaction is
viewed as having no significant effect on exist­
ing competition.
State statutes permit de novo branching
throughout New Jersey, subject to certain
home office protection provisions. Swedesboro
Trust Company, which presently operates only
one branch a short distance from its main
office, does not possess the financial or
managerial resources to mount any meaningful
de novo expansion into areas relatively distant
from Swedesboro. Guarantee Bank, while
experienced in de novo activity and branch
operation, has confined its operations to the
southeast portion of the State. Although
Guarantee Bank is capable of successfully
branching into the Swedesboro market, it is not
likely to do so in light of the number and size of
other competitors already established in the
area and the distance of that market from its
present base of operation. Thus, the elimination
of some potential for increased future competi­
tion between the proponents is regarded as
having little competitive impact.
The Board of Directors is of the opinion that
the proposed merger would not, in any section
of the country, substantially lessen competition,
tend to create a monopoly, or in any other man­
ner be in restraint of trade.




Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources have been
satisfactorily resolved. While capitalization of
Guarantee Bank is considered to be below
desired levels, the proposed merger will have a
slightly positive effect due to the strong
capitalization of Swedesboro Trust Company.
The resultant bank would appear to have
favorable future prospects.
Convenience and Needs of the Community
to be Served. The proposed transaction would
result in no substantial change in the services
now available in the Swedesboro market. The
considerations of convenience and needs of the
com m unity, however, are consistent w ith
approval of the application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Commercial Security
Bank
Ogden, Utah

Banking offices
in operation
Before

After

353,852

19

20

7,694

1

to merge with

Commercial Security
Bank of Logan
Logan

Summary report by Attorney General,
April 11, 1978
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
June 26, 1978
Commercial Security Bank, Ogden, Utah
("Applicant” ), an insured State nonmember
bank with total resources of $3 53 ,852,000
and total IPC deposits of $253,833,000, has
applied, pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act,
for the FDIC's prior consent to merge with
Commercial Security Bank of Logan, Logan,
Utah ("Other Bank"), an insured State non­
m em ber bank w ith to ta l resources o f

71

BANK ABSORPTIONS APPROVED BY THE CORPORATION
$ 7 ,6 9 4 ,0 0 0 and to ta l IPC de po sits o f
$6,247,000.* The banks would merge under
the charter and title of Applicant, and the sole
office of Other Bank would be established as a
branch of the resultant bank, increasing the
total number of its offices to 20.**
Competition. E ssentially a co rp o ra te
reorganization, the proposed transaction would
provide a means by which Commercial Security
Bancorporation, Ogden, Utah, a registered bank
holding company, may consolidate its opera­
tions. The proponents have been under com­
mon control since 1973 when Other Bank was
organized as a wholly owned subsidiary of the
holding company. The proposal would not
affect the structure of commercial banking or
the concentration of banking resources within
any relevant area, nor would it have any signifi­
cant effect on existing or potential competition.
In view of the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for the purposes of this proposal. The resultant
bank would appear to have favorable future
prospects.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently available
through either proponent.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

’ Financial data as of June 30, 1977. Data concerning Com­
mercial Security Bank, Ogden, Utah, have been adjusted to
reflect the merger of that institution with Commercial
Security Bank of Salt Lake, Salt Lake County (P.O. Salt
Lake City), Utah, effected February 18, 1978.
**On May 24, 1978, the Board of Directors of the Federal
Deposit Insurance Corporation granted its approval to
Applicant to purchase the assets of and assume the
liability to pay deposits made in The Helper State Bank,
Helper, Utah. The Helper State Bank operates three
offices and, as of June 30, 1977, had total resources of
$15,969,000 and total IPC deposits of $13,666,000.




Resources
(in thousands
of dollars)

Albany Savings Bank
Albany, New York

Banking offices
in operation
Before

After

829,643

12

13

26,544

1

to merge with

Oneida Federal Savings
and Loan Association
Oneida

Summary report by Attorney General,
May 2, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
August 2, 1978
Albany Savings Bank, Albany, New York
("Savings Bank"), an insured mutual savings
bank with total resources of $8 29 ,6 43 ,0 00
and total deposits of $771,298,000, has
applied, pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act,
for the Corporation's prior consent to merge,
under its charter and title, with Oneida Federal
Savings and Loan Association, Oneida, New
York ("Association"), a federally insured sav­
ings and loan association with total resources
o f $ 2 6 ,5 4 4 ,0 0 0 and to ta l d e po sits of
$24,334,000, upon the latter institution's con­
version to a State charter. Incident to the
merger, the sole office of Association would be
established as a branch of the resultant bank.
Competition. Savings Bank operates 12
offices in central and northern New York State
and has received regulatory approval for an
additional de novo branch. Branches in Glens
Falls, Johnstown, and Troy have been acquired
since 1970 through mergers with three Statechartered savings and loan associations.
Association, established in 1887, operates its
sole office in the city of Oneida, approximately
120 road-miles west of Albany, New York.
Oneida (1970 population 11,658) is situated in
the eastern portion of Madison County adjoin­
ing the Oneida County boundary. A good high­
way system provides ready access to the
neighboring city of Rome (1970 population
50,148) which is regarded as the economic
center for the area.
The relevant market in which to assess the
competitive impact of the proposed merger is
regarded as the area within an approximate 15road-mile radius of the city of Oneida, which
includes portions of Madison and Oneida Coun­
ties. Six th rift institutions operate a total of 10
offices in the market with mutual savings banks

72

FEDERAL DEPOSIT INSURANCE CORPORATION

holding the dominant market share. Association
ranks as the fourth largest thrift institution in
the market, holding 7.4 percent of the market's
in s t i t u t io n d e p o s its . S a v in g s B a n k,
whose nearest office is located north of the city
of Syracuse, approximately 25 road-miles dis­
tant from Oneida, is not represented in the
market and the proponents are thus not in
direct competition. Consummation of the trans­
action will merely serve to substitute a large
mutual savings bank for a relatively small, local
savings and loan association and will have no
significant adverse effect on existing competi­
tion.
The possibility that competition may develop
between the proponents through de novo
branching appears remote. The modest size and
conservative management of Association,
which has operated as a unit institution since
in ce p tio n , w o uld seem to preclude any
meaningful expansion activity into areas now
served by Savings Bank. Savings Bank,
governed by State statutes limiting such de
novo expansion to a single branch each year, is
viewied as an unlikely entrant into the Oneida
market in the near future.
The Board of Directors is of the opinion that
the proposed merger would not, in any section
of the country, substantially lessen competition,
tend to create a monopoly, or in any other man­
ner be in restraint of trade.
Financial and Managerial Resourcesiy Future
Prospects. The fin a n cia l and m anagerial
resources of each institution, and of the result­
ant bank, are considered satisfactory. The
future prospects of the resultant bank are
regarded as favorable.
Convenience and Needs of the Community
to be Served. Savings Bank's entry into the
Oneida market would make available an addi­
tional alternative for certain thrift institution ser­
vices not now offered by Association. Con­
siderations of convenience and needs of the
community to be served are consistent with
approval of the application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.




Resources
(in thousands
of dollars)

Brookville Bank and
Trust Company
Brookville, Penn­
sylvania
(change title to
Unibank)

Banking offices
in operation
Before

46,206

3

27,443

After

4

1

to merge with

Brockway Citizens
Bank
Brockway

Summary report by Attorney General,
May 2, 1978
Jefferson County (1970 population 47,000)
is located in the west-central portion of Penn­
sylvania. Its economy is based primarily on
farm ing, coal mining, and lumbering and,
according to the application, is expected to
experience slow but steady growth.
Bank's sole office in Brockway is approx­
imately 15 miles northeast of Brookville in
which Applicant operates its main office and
one branch. There are no bank offices in the
intervening area (which is sparsely populated),
although Deposit National Bank, DuBois, oper­
ates a branch in both Brookville and Brockway.
It appears, therefore, that the proposed trans­
action would eliminate some direct competition
between Applicant and Bank.
Nine banks currently operate offices in
Jefferson County. As of June 30, 1977, Appli­
cant held the second largest share (17.3 per­
cent) and Bank held the fifth largest share (9.8
percent) of the total deposits held in Jefferson
County banking offices. If the proposed trans­
action is consummated, the resulting bank
would be the largest bank in the county with a
27.1-percent share of deposits held in county
banking offices. Concentration among the four
largest banks in the county (in terms of county
deposits) would increase from 77.1 percent to
87.0 percent. We note, however, that the pro­
posed transaction's effect on concentration
would be less substantial if the banking offices
in DuBois, in adjacent Clearfield County, were
considered to be in the same market area as the
Jefferson County banking offices.
Overall, in our view, the proposed transaction
would have an adverse effect on competition.
Basis for Corporation approval,
August 2, 1978
Brookville Bank and Trust Company, Brook­
ville, Pennsylvania ("Brookville Bank"), an
insured State nonmember bank with total
resources of
$4 6,206,000 and total IPC

BANK ABSORPTIONS APPROVED BY THE CORPORATION
deposits of $37,675,000, has applied, pur­
suant to Section 18(c) and other provisions of
the Federal Deposit Insurance Act, for the Cor­
poration's prior consent to merge with Brock­
way Citizens Bank, Brockway, Pennsylvania
("Citizens Bank” ), with total resources of
$ 2 7 ,4 4 3 ,0 0 0 and total IPC deposits o f
$22,240,000, under the charter of Brookville
Bank and with the title "Unibank” . Incident to
the merger, the one existing office of Citizens
Bank would become a branch of the resultant
bank, increasing the number of its offices to
four.
Competition. Brookville Bank operates its
main office in Brookville, one branch just out­
side Brookville, and one branch in Summerville.
Citizens Bank operates its sole office in Brock­
way. All offices of both banks are located in
Jefferson County, which is in the west-central
portion of Pennsylvania.
Jefferson County's 1970 population was
43,695, a decline from 46,792 in 1960.
Approximately 70 percent of Jefferson County
is forest lands and 16 percent is pasture and
crop lands. Lumbering, agriculture, and light
manufacturing are the main economic activities.
The county's median buying level in 1976 was
$11,266, some 22 percent below the State
figure.
Essentially, the effects of this merger would
be limited to Citizens Bank's local market area,
encompassing the northeast section of Jeffer­
son County, the southern part of Elk County,
and the northwest portion of Clearfield County.
Citizens Bank is one of six commercial banks
operating in the local market area and holds
11.5 percent of the IPC deposits. Brookville
Bank is not represented in this market and
would merely succeed to Citizens Bank's share
of the deposits. The structure of commercial
banking in the local market would not be
affected by the proposed merger.
The trade areas of the proponents are dis­
tinct, and travel between the two areas is
impeded by mountainous terrain and a limited
number of roads. The major highway in the
area, Interstate Highway 80, runs east-west
close to Brookville, but other highways are
restricted by mountain ranges. The closest
offices of the proponents are 18 miles distant,
and neither bank draws a significant measure of
business from the other's service area. No sig­
nificant existing competition would be elimi­
nated by the proposed merger.
Pennsylvania law limits commercial bank
expansion by either merger or de novo branch­
ing to the county in which the main office is
located and to contiguous counties. Thus, each
proponent could branch de novo in Jefferson
County and the surrounding counties of Forest,
Clarion, Armstrong, Indiana, Clearfield, and Elk.




73

Neither Brookville Bank nor Citizens Bank are
likely to attempt de novo expansion into distant
markets where much larger banks are well
established, and economic conditions and the
low population per banking office in Jefferson
County are not conducive to such expansion
there. It, therefore, appears unlikely that any
substantial potential for increased competition
between the proponents through their de novo
branching in the future would be eliminated by
the proposed merger.
Within its maximum legal branching area,
Brookville Bank holds 2.7 percent of the total
com mercial bank deposits. The proposed
merger would increase Brookville Bank's total
deposit share to 4.2 percent. Thus, the com­
mercial banking structure in the legal branching
area would not be materially affected.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competiton, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The proponents have satisfactory
financial and managerial resources for the busi­
ness they conduct, as would the resultant bank.
The future prospects for both existing banks
and the resultant bank appear favorable.
Convenience and Needs of the Community
to be Served. The proposed merger would bring
Citizens Bank's customers trust services and
larger lending limits. Although there are other
alternative sources for these services in the
market, the considerations of convenience and
needs are consistent with approval of the
application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Farmers Bank and
Trust Company of
Hanover
Hanover, Penn­
sylvania

Banking offices
in operation
Before

107,232

4

2,914

1

to merge with

Abbottstown State
Bank
Abbottstown

After

5

74

FEDERAL DEPOSIT INSURANCE CORPORATION
Summary report by Attorney General,
June 8, 1978

Each bank at present operates in different
counties. Adams County, where Bank is
located, had a 1970 population of 56,937.
York County, where Applicant is located, had a
1970 population of 272,603. A t present 10
banks operate a total of 24 offices in Adams
County; 8 of these banks are headquartered in
the county. Bank is the smallest of these institu­
tions, with 1.1 percent of total deposits in the
county. Fifteen banks operate a total of 82
offices in York County; 10 banks are headquar­
tered there. Applicant ranks fifth among the
banks in York County with 7.5 percent of coun­
ty deposits.
Although Applicant and Bank at present
operate their offices in separate counties, the
acquisition will have a direct impact on actual
competition in the Abbottstown area. Hanover,
where Applicant is located, is a commercial hub
for the rural area surrounding it, including
Abbottstown, and Applicant is one of the domi­
nant banks in this area. Abbottstown and
Hanover are only 7 miles apart; in fact, Appli­
cant concedes that the primary service areas of
the two banks overlap. Within Bank's service
area, Applicant holds 88 percent of the total
loans and 69 percent of the total deposits, Bank
having 1.2 percent and 2.1 percent, respective­
ly. The overlap of the two banks' service areas
is of concern because Bank is the only commer­
cial bank in Abbottstown, although other banks
are located in the vicinity. A purchaser with a
smaller presence in this area would obviously be
preferable to Applicant.
Overall, in our view, the proposed transaction
would have an adverse impact on competition.
Basis for Corporation approval,
August 2, 1978
Farmers Bank and Trust Company of
Hanover, Hanover, Pennsylvania ("Farmers
Bank” ), an insured State nonmember bank with
total resources of $107 ,2 32 ,0 00 and total IPC
de po sits o f $ 8 9 ,9 8 8 ,0 0 0 , has applied,
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
Corporation's prior consent to merge with
A b b o tts to w n S tate Bank, A b b o tts to w n ,
Pennsylvania ("S ta te B a n k "), w ith to ta l
resources of $ 2 ,9 1 4 ,0 0 0 and total IPC
deposits of $2,542,000. The banks would
merge under the charter and title of Farmers
Bank and the sole office of State Bank would be
operated as a branch of the resultant bank,
which would commence operation with a total
of five offices.
Competition. Farmers Bank operates its head
office and three branches in Hanover (1970




population 15,623) and its environs in the
western portion of York County, in southcentral Pennsylvania. The borough of Abbotts­
town (1970 population 552) is located 7 roadmiles north of Hanover in the extreme eastern
portion of adjoining Adams County. Hanover
functions as the service and commercial center
of the large, generally rural area encompassing
the western portion of York County and the
eastern portion of Adams County in Penn­
sylvania and a small adjoining portion of the
State of Maryland. While agricultural pursuits
remain the area's chief economic activity,
steady growth in residential construction and
industrial expansion has been in evidence. The
median household buying levels for both Penn­
sylvania counties are above the comparable
figure for the State. Future economic prospects
appear favorable as the Hanover area is
expected to continue to attract industrial
development due to its skilled, stable work
force and proximity to large urban markets.
The relevant market area in which to assess
the competitive impact of the proposed trans­
action is regarded as the area within a 1 2 roadmile radius of the borough of Abbottstown,
which would include the commercial center of
Hanover and surrounding portions of Adams
and York Counties. Ten commercial banks
operate a total of 22 offices in the market with
State Bank (the State's smallest commercial
bank) holding only a nominal 0.9 percent of the
market's IPC deposits.
State Bank is located only 7 road-miles north
of the closest office of Farmers Bank. As the
major portion of State Bank's service area is
contained within the service area of Farmers
Bank and the local shopping and commutation
patterns indicate that Hanover is the likely and
probable source of retail, commercial, and alter­
nate banking services for residents of the area
in which State Bank is located, clearly the pro­
ponents are in direct competition. Elimination of
this existing com petition, however, is not
regarded as significant in light of the de minimis
volume of deposits generated by State Bank in
its over 58 years of operation and its stagnant
growth pattern in a market in which other com­
petitors have been able to increase their deposit
volume substantially in recent years.
Represented among the 10 banks already in
the local market are several regional banks with
substantial deposit bases and branching net­
works. Among these are National Central Bank,
Lancaster; Dauphin Deposit Trust Company,
Harrisburg; and Cumberland County National
Bank and Trust Company, New Cumberland,
which have organizational deposits ranging
from approximately $225 million to $9 10 mil­
lion. There appears to be a sufficient number of
alternate sources of commercial banking serv­

BANK ABSORPTIONS APPROVED BY THE CORPORATION
ices to assure the continuance of a competitive
banking environment in the market if the pro­
posed merger is consummated. Farmers Bank's
share of the market coupled with State Bank's
minute volume of deposits, therefore, does not
have an adverse effect upon competition. In
addition, a total of six other commercial banks,
e a c h w ith d e p o s its g r e a te r th a n
$100,000,000, have the ability under State
statutes to branch de novo into this local
market. Although some potential for future
competition between the proponents would be
eliminated by the proposal, in light of the limited
resources of State Bank and the number of
other large competitors now serving or able to
enter this market, the effect on the potential for
future competition would be insignificant.
The Board of Directors is of the opinion that
the proposed transaction would not, in any sec­
tion of the country, substantially lessen com­
petition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The financial resources of both pro­
ponents are considered satisfactory. Potential
problems concerning aging management and
management succession at State Bank would
be resolved by the proposed merger. The result­
ant bank is anticipated to have favorable future
prospects.
Convenience and Needs of the Community
to be Served. Farmers Bank offers a wider range
of customer services, including a modest-sized
trust department, and pays higher rates of
interest on savings and time deposits than pres­
ently available at State Bank. Adoption of Farm­
ers Bank's interest rate schedule and the
availability of additional banking services should
be of benefit to the present customers of State
Bank. The considerations of convenience and
needs of the community to be served are fac­
tors in favor of approval of the application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Suburban Trust
Company
Hyattsville, Mary­
land

Banking offices
in operation
Before

After

1,057,686

65

67

14,484

2

to merge w ith

Free State Bank and
Trust Company

Potomac



75

Summary report by Attorney General,
July 14, 1978
We have reviewed this proposed transaction
and conclude that it would not have a signifi­
cant adverse effect upon competition.
Basis for Corporation approval,
August 1 1 ,1 9 7 8
Suburban T ru s t Com pany, H ya ttsville ,
Maryland (“ Suburban T ru st” ), an insured
State nonmember bank w ith total resources
o f $ 1 ,0 5 7 ,6 8 6 ,0 0 0 and total IPC deposits
of $ 8 8 2 ,2 6 6 ,0 0 0 , has applied, pursuant to
Section 18(c) and other provisions of the
Federal Deposit Insurance Act, fo r the Cor­
poration's prior consent to merge w ith Free
State Bank and Trust Company, Potomac,
Maryland ("F S B "), w ith total resources of
$ 1 4 ,4 8 4 ,0 0 0 and total IPC deposits of
$ 1 2 ,4 6 6 ,0 0 0 . Suburban Trust is a w holly
owned subsidiary o f Suburban Bancorporation, a registered bank holding company
w hich controls three Maryland banks. The
proponents would merge under the charter
and title o f Suburban Trust and the tw o
o ffic e s o f FSB w o u ld be operated as
branches of the resultant bank.
Competition. Suburban Trust, headquartered
in Hyattsville, operates 65 offices in 5 counties
and the city of Baltimore. Fifty-one of these
offices, holding almost 90 percent of the
bank's aggregate deposits, are located in the
Maryland portion of the Washington, D.C.
Standard Metropolitan Statistical Area, with a
total of 24 offices serving Montgomery County.
Required approvals have been obtained to estab­
lish an additional two offices in Montgomery
County: one in Gaithersburg and another in
R ockville. FSB com m enced op e ra tio n in
Potomac in the southern portion of Montgom­
ery County in August 1972. One de novo
branch, established in May 1977, is operated in
Rockville, approximately 6.8 road-miles north­
east of Potomac.
M o n tg o m e ry C ounty, M aryland (1 9 7 0
population 552,809), adjoins the District of
Columbia and has an economy that can be con­
sidered intricately tied to the city of Washing­
ton. A number of the county's residents are
employed in the District of Columbia and there
is substantial commutation daily between the
two areas. This common economic tie is par­
ticularly in evidence in the southern portion of
the county, which includes the communities of
Potomac and Rockville. Median household buy­
ing levels for Montgomery County for 1976
were significantly higher than comparable
figures for neighboring counties and 42.1 per­
cent higher than the State's figure. Intense
competition exists between banks in Montgom­
ery County and those in the city of Washington,

76

FEDERAL DEPOSIT INSURANCE CORPORATION

and thus, it is appropriate to consider the com­
bined area of the District of Columbia and
Montgomery County, Maryland, as the relevant
geographic market in which to consider the
competitive impact of the proposed transac­
tion.*
A total of 38 commercial banks operate 330
offices in this market. Suburban Trust, which
holds 7.2 percent of the m arket's total
deposits, ranks as the area's fifth largest com­
petitor by such a measure. FSB ranks as the
31st largest bank in the market, holding only
0.2 percent of the total deposits. Upon consum­
mation of the proposed transaction, Suburban
Trust would increase its market share of
deposits only a nominal amount to 7.4 percent,
which would have no significant effect on the
structure of commercial banking in the market.
The proponents' closest offices are located
approximately 2 road-miles apart in the city of
Rockville, with a second Rockville branch of
Suburban Trust located 4 miles south of FSB's
branch office. FSB's main office in Potomac is
located approximately 5 miles west of one of
Suburban Trust's Bethesda branches. While the
proximity of offices indicates that some exist­
ing competition between the proponents would
be eliminated by the proposed transaction, the
existence of numerous offices of other banks in
the immediate area indicates that a competitive
banking environment would continue in the
market if the merger were consummated.
Maryland State statutes permit statewide
merging and de novo branching. Due, however,
to restrictive zoning ordinances, Suburban
Trust has been effectively prevented from de
novo entry into Potomac. FSB, which has
experienced initial start-up problems, lacks the
financial and managerial resources to mount
effectively any meaningful expansion into other
areas now served by Suburban Trust. Thus, the
effect of the proposed transaction on the
potential for future competition would be of lit­
tle significance.
The Board of Directors is of the opinion that
the proposed transaction would not, in any sec­
tion of the country, substantially lessen com­
petition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. FSB experienced initial start-up
problems and presently lacks the financial and
managerial resources to develop into an effec­
tive competitor, while Suburban Trust has had a

’ See Basts for Corporation Approval of the merger of The
Commerce Bank and Trust Company of Maryland,
Bethesda, Maryland, and Potomac National Bank,
for Potomac, Maryland. FDIC Annual Report-1977, pp.80-81.
FRASER

Digitized


satisfactory record in both of these areas of
consideration. The resultant bank is anticipated
to have favorable future prospects.
Convenience and Needs of the Community
to be Served. The services to be offered by the
resultant bank are presently available at offices
of a number of large competitors in the relevant
market. The proposed transaction, thus, would
have a minimal effect on the convenience and
needs of the community to be served.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Banking offices
in operation
R
esources
(in thousands
Before After
of dollars)

W est Side Bank
Scranton, Pennsyl­
vania
(change title to
First State Bank)

67,495

4

20,151

7

3

to merge with

The First National
Bank of Hawley
Hawley

Summary report by Attorney General,
May 25, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
August 1 1 ,1 9 7 8
West Side Bank, Scranton, Pennsylvania
("W est Bank” ), an insured State nonmember
bank with total resources of $6 7,495,000 and
total IPC deposits of $60,554,000, has applied,
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
Corporation's consent to merge, under its
charter, with The First National Bank of Hawley,
Hawley, Pennsylvania ("First National” ), with
total resources of $2 0,151,000 and total IPC
deposits of $18,220,000. Incident to the trans­
action, the three offices of First National would
be established as branches of West Bank and
the present main office of First National would
be designated as the main office of the result­
ant bank, which would commence operation
with seven offices and with the title "First State
Bank” .
Competition. W est Bank operates its main
office and three branches in the Scranton area
of Lackawanna County. First National operates

77

BANK ABSORPTIONS APPROVED BY THE CORPORATION
two offices in Hawley, Wayne County, and one
office in Lackawaxen Township, Pike County.
The borough of Hawley (1970 population
1,331) is located in the relatively sparsely
populated hill region on the northern fringe of
the Pocono Mountains. The borough of
Honesdale (1970 population 5,224), located
approximately 10 road-miles northwest of
Hawley, serves as the area's principal commer­
cial center. Wayne and Pike Counties contain a
large percentage of crop and pasture land, with
the principal agricultural activity being dairy
farming. While some manufacturing activity is
in evidence, recreational activity and tourism
have grown in economic importance in recent
years. A sizable number of seasonal or
"second” homes are located in the two-county
area. While the median household buying levels
for Wayne and Pike Counties are somewhat
below the comparable figure of the State, the
area has experienced increases in population
and has a favorable economic prospect.
The relevant market in which to assess the
competitive impact of the proposed transac­
tion is regarded as the area within a 15 -to-2 0road-mile radius of Hawley which would include
portions of Wayne and Pike Counties. Ten com­
mercial banks operate a total of 14 offices in
this market, with First National holding a 10.3percent share of the market's IPC deposits. First
National ranks as the fourth largest bank in the
market by such a measure, with the three larger
institutions, based in neighboring Honesdale,
aggregately holding 51.8 percent of the IPC
deposits in the market. As West Bank is not rep­
resented in this market (proponents' nearest
offices are located approximately 35 road-miles
apart), they are not regarded as being in direct
competition and the proposed transaction is
seen as having no significant effect on existing
competition or on the structure of commercial
banking in the local market.
Pennsylvania statutes permit de novo
branching activity in a bank's home office coun­
ty and in contiguous counties, and as such,
each proponent is permitted to enter the market
now served by the other. West Bank, based in
the western portion of the city of Scranton, has
limited its branching activity to the urbanized
area in and around that city and appears an
unlikely candidate for de novo expansion into
the rural Hawley market in light of the numerous
banking offices already serving the relatively
limited population of the area. First National
does not possess the financial resources to
mount any meaningful expansion effort into the
urban area of Scranton now served by West
Bank. It therefore follows that no significant
potential for increased future competition be­
tween the proponents would be eliminated by
consummation of the proposed transaction.




The Board of Directors is of the opinion that
the proposed transaction would not, in any sec­
tion of the country, substantially lessen com­
petition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources have been
satisfactorily resolved. The resultant bank is
anticipated to have favorable future prospects.
Convenience and Needs of the Community
to be Served. The proposed transaction would
not substantially change the services now
available to the customers of either bank. The
considerations of convenience and needs of the
community are consistent with approval of the
application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Citizens National
Bank
Ogden, Utah
(change title to
The Citizens Bank)

Banking offices
in operation
Before

23,119

3

7,462

After

4

1

to consolidate with

Kamas State Bank
Kamas

Summary report by Attorney General,
April 27, 1978
The consolidating banks are both majorityowned subsidiaries of the same bank holding
company. As such, their proposed consolida­
tion is essentially a corporate reorganization
and would have no effect on competition.
Basis for Corporation approval,
August 1 1 ,1 9 7 8
Citizens National Bank, Ogden, Utah ("Citizens
Bank” ), with total resources of $2 3,119,000
and total IPC deposits of $14,915,000, has
applied, pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act,
for the Corporation's prior consent to consoli­
date with Kamas State Bank, Kamas, Utah
("Kamas Bank"), w ith total resources of
$ 7 ,4 6 2 ,0 0 0 and total IPC deposits of
$5,487,000, under a new State charter with
the title "The Citizens Bank". The sole office of
Kamas Bank would- be established as a branch
of the resultant bank which would commence

78

FEDERAL DEPOSIT INSURANCE CORPORATION

operation as an insured State nonmember bank
operating a total of four offices.
Both proponents have been under effective
common control since December 1968. The
principal shareholders of Kamas Bank hold a
majority of the outstanding shares of Citizens
Bankshares, Inc., a one-bank holding company,
whose principal asset and subsidiary is Citizens
Bank. The eight members of Citizens Bank's
board of directors are members of the ninemember board of directors of Kamas Bank.
Senior officers of Citizens Bank serve in a dual
capacity with corresponding titles and respon­
sibilities of Kamas Bank.
Competition. Citizens Bank has confined its
operations to three offices located in the
urbanized Ogden-Salt Lake City corridor along
the eastern shore of the Great Salt Lake. They
serve an area described as a narrow strip of
developed land bounded on the east by a fo r­
midable mountain range which serves as a
natural barrier restricting travel and easy
access. Kamas Bank operates its sole office
east of the mountains approximately 40 roadmiles east of Salt Lake City (site of nearest
office of Citizens Bank) and approximately 75
road-miles southeast of Ogden. Kamas Bank is
the third largest commercial bank in its local
market holding 14.6 percent of the market's
IPC deposits. The State's largest and thirdlargest banking organizations are represented in
this market and both hold larger market shares
than Kamas Bank; together they hold 62.1 per­
cent of the market's IPC deposits.
Due to the geographic barrier and distance
between the proponents' closest offices, little
or no existing competition is in evidence.
Likewise, and because of the modest size and
resources of the two proponents, the prospects
for increased future competition are regarded
as remote.
The Board of Directors is of the opinion that
the proposed transaction would not, in any sec­
tion of the country, substantially lessen com­
petition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial resources of each bank and of the resultant
bank have been satisfactorily resolved. The
managements of both institutions are essentially
identical and would be unaffected by the pro­
posed transaction. The future prospects of the
resultant bank are regarded as favorable.
Convenience and Needs of the Community
to be Served. There would be no significant
effect on the volume or types of services to be
offered upon consummation of the proposed
transaction. Considerations of convenience and
needs of the community are, therefore, consis­
tent with approval of the application.




Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Banco Comercial
de Mayaguez
Mayaguez, Puerto
Rico

Banking offices
in operation
Before

After

74,102

3

4

13,565

1

to purchase the assets and as­
sume the deposit liabilities of

Banco de Ahorro
de Puerto Rico
San Juan (P.O. Hato
Rey)

Approved under emergency provisions. No
report requested from the Attorney General.
Basis for Corporation approval,
September 5, 1978
Banco Comercial de Mayaguez, Mayaguez,
Puerto Rico, an insured State nonmember bank
with total resources of $74,102,000, has
applied, pursuant to Section 18(c) of the
Federal D eposit Insurance A ct, fo r the
Corporation's consent to purchase the assets
of and assume the liability to pay deposits made
in Banco de Ahorro de Puerto Rico, San Juan
(P.O. Hato Rey), Puerto Rico, an insured State
nonmember bank w ith total resources of
$13,565,000. Incident to the proposed trans­
action, the sole office of Banco de Ahorro de
Puerto Rico would become a branch of Banco
Comercial de Mayaguez.
As of September 5, 1978, Banco de Ahorro
de Puerto Rico had deposits of $1 1,900,000
and operated one office. On September 5,
1978, the Federal Deposit Insurance Corpora­
tion was appointed as Receiver of Banco de
Ahorro de Puerto Rico.
The Board of Directors finds that the failure
of Banco de Ahorro de Puerto Rico requires it to
act immediately and thus waives publication of
notice, dispenses with the solicitation of com­
petitive reports from other agencies, and
authorizes the transaction to be consummated
immediately.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

Banking offices
in operation
Before

After

1

County Bank &
Trust Company (in
organization)
Morehead City,
North Carolina
to purchase the assets and as­
sume the deposit liabilities of

Morehead Plaza
Branch —Bank of
North Carolina,
National Associa­
tion
Jacksonville

2,352*

1

'Total IPC deposits of office to be transferred by "Bank of
North Carolina, National Association” . Assets not reported
by office.

Summary report by Attorney General,
May 11, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
September 6, 1978
Pursuant to Sections 5 and 18(c) and other
provisions of the Federal Deposit Insurance Act,
applications have been filed on behalf of Coun­
ty Bank & Trust Company, Morehead City,
North Carolina ("CBT"), a proposed new bank
in organization, for Federal deposit insurance
and for the Corporation's prior consent to
purchase the assets of and assume the liability
to pay deposits made in the Morehead Plaza
branch of Bank of North Carolina, National
A sso cia tio n , Ja ckso n ville , N orth Carolina
("BNC"). The Morehead Plaza branch, with
total IPC deposits of $2,352,000, would be
operated as the sole office of CBT.
Competition. The proposed transactions are
a vehicle by which a group of Carteret County,
North Carolina, businessmen can establish an
independent, locally owned commercial bank in
the Morehead City area. Carteret County (1970
population 31,603) is located in southeastern
coastal North Carolina. It is of irregular shape of
some 50 miles from east to west and 10 to 15
miles from north to south, occupying a penin­
sula and series of coastal islands between Pam­
lico Sound and the Atlantic Ocean. A large por­
tion of the county's land is described as low
swampy woodland unsuitable for extensive
cultivation and sparsely populated. The county
has a diversified economic base encompassing
manufacturing of apparel, processing of fish
products, and tourism. Agricultural activities




79

include the raising of tobacco, potatoes, and
vegetables. Morehead City has a large port
facility operated by the State and has
developed into a deep water harbor and ship­
ping center. Only two major highways connect
the county with other centers of commercial
activity. New Bern (1970 population 14,660) is
located approximately 35 road-miles northwest
of Morehead City and Jacksonville (1970
population 16,021) is located approximately 45
road-miles west.
Morehead City (1970 population 5,233) and
the neighboring tow n of Beaufort (19 70
population of 3,368), located 3 road-miles east,
form the principal economic and commercial
centers of the county. The proposed site of the
new bank is in the Morehead Plaza Shopping
Center located on U.S. Route 70 in Morehead
City, which contains over 200,000 square feet
of retail space. It is expected to attract residents
from throughout the county and has the poten­
tial of replacing the downtown portion of
Morehead City as the area's chief retail center.
The relevant market in which to assess the
competitive impact of the proposed transac­
tions is regarded as Carteret County, where 4
banks operate a total of 14 offices. Under the
proposal, BNC, which holds a modest 1.7 per­
cent of the county's IPC deposits, will withdraw
from representation in thee market and be re­
placed by CBT, which hopes to capture a larger
market share by aggressively marketing its
characteristics as a locally owned, independent
bank. Eleven of the remaining 13 banking
offices in the county are offices of the State's
la rgest and f if th la rgest banks, w h ich
aggregately hold 90.3 percent of the market's
IPC deposits. The proposed transaction is seen
as having no significant effect on existing com­
petition or on the structure of commercial bank­
ing in this local market.
North Carolina statutes concerning de novo
branching permit statewide activity. BNC has
operated its sole office in Carteret County since
February 1973 and has failed to make a signifi­
cant market penetration. It is thus seen as
unlikely to attempt a further expansion in the
area in light of the number of other banking
offices present. In this concentrated market,
with large, well established statewide institu­
tions, it is believed that the proposed transac­
tions would have little effect on the potential for
future competition between the proponents.
Under these circumstances, the Board of
Directors is of the opinion that the proposed
transaction would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The resultant bank would have an

80

FEDERAL DEPOSIT INSURANCE CORPORATION

adequate volume of capital funds for the type
and nature of business it is expected to draw
during its early years of operation, and its finan­
cial resources are anticipated to be satisfactory.
CBT's management is also considered ade­
quate, and its future prospects are regarded as
acceptable.
Convenience and Needs of the Community
to be Served. It is anticipated that CBT will
develop into an effective competitor. CBT pro­
poses to offer free checking accounts and
expanded banking hours, which are expected to
be favorably received by potential customers in
the Morehead City market. The considerations
of convenience and needs of the community are
consistent with approval of the applications.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion for Federal deposit insurance and the
application to purchase assets and assume
liabilities is warranted.

Resources
(in thousands
of dollars)

Banking offices
in operation
Before

After

1

First State Bank
of Encino (in
organization)
Encino (Los
Angeles), California
to purchase the assets and as­
sume the deposit liabilities of

Encino Branch—
The Hongkong Bank
of California
San Francisco

5,537*

1

Summary report by Attorney General,
June 26, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
'Total deposits of office to be transferred by The
Hongkong Bank of California. Assets not available by
office.

Basis for Corporation approval,
September 28, 1978
Pursuant to Sections 5, 18(c), and other pro­
visions of the Federal Deposit Insurance Act,
applications have been filed on behalf of First
State Bank of Encino, Encino (Los Angeles),
California ("First Bank"), a proposed new bank
in organization, for Federal deposit insurance
and for the FDIC's prior consent to purchase the
assets of and assume the liability to pay




deposits made in the Encino Branch of The
Hongkong Bank of California, San Francisco,
California ("HKB"). The Encino Branch, with
total deposits of $5,537,000, would be oper­
ated as the sole office of First Bank.
Competition. The proposed transaction
would have its most direct and immediate
impact in the trade area of Encino. Encino is an
approximately 15-to-2 0-sq uare -m ile com ­
munity containing an estimated population of
44,000. Ventura Boulevard serves as a major
east-west thoroughfare in the San Fernando
Valley and has experienced extensive "s trip "
commercial development along much of its 17mile route. In this corridor, several distinct retail
and commercial centers are in evidence with
residential development centered on the north
and south side of the boulevard. In Encino,
several high-rise office buildings have opened
and the community serves as a focal point for
extensive retail and commercial activity.
Ten commercial banks operate a total of 12
offices in the above-described Encino market.
Represented in this group are the five largest
banking organizations in California. Under the
proposals, HKB, which presently holds only a
modest 2.8 percent of the m arket's IPC
deposits, will withdraw from representation in
Encino and be replaced by First Bank which will
be locally owned and managed. Thus, the pro­
posed transaction is seen as having no signifi­
cant adverse effect on existing competition or
on the structure of commercial banking in the
local market. The possibility of potential com­
petition developing between the subject banks
is remote since HKB desires to withdraw from
this area.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The proposed First Bank would have
an adequate level of capital funds to support
the type and nature of business it is expected to
draw during its early years of operation. Its
financial resources are anticipated to be
satisfactory and its management is regarded as
adequate. First Bank's future prospects appear
to be favorable.
Convenience and Needs of the Community
to be Served. The proposals will not affect the
number of banks or banking offices serving the
Encino community and will merely serve to
substitute an independent, locally owned and
managed commercial bank for a branch of an
out-of-area bank whose interests appear to lie
in other fields. It is anticipated that the new
bank will attain sufficient deposit volume to

81

BANK ABSORPTIONS APPROVED BY THE CORPORATION

become a profitable operation. The considera­
tions of convenience and needs of the com­
m unity to be served are consistent w ith
approval of the transactions.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion for Federal deposit insurance and the
application to purchase assets and assume
liabilities is warranted.

Resources
(in thousands
of dollars)

The Bank of
Le Roy
Le Roy, New York
(change title to
Genesee Country
Bank)

Banking offices
in operation
Before

37,285

3

20,096

After

5

2

to merge with

The Citizens Bank
Attica

Summary report by Attorney General,
July 14, 1978
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.

New York State's total deposits), may consoli­
date its operations in Genesee and Wyoming
Counties. The proponents have been owned by
Security New York State Corporation since
1970, and their proposed merger would not
affect the structure of commercial banking or
the concentration of banking resources within
the relevant market.
The Board of Directors is of the opinion that
the transaction, would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources; Future
Prospects. While the proponents' capital posi­
tions are somewhat below desired levels, their
financial and managerial resources are con­
sidered adequate for purposes of this proposal.
The resultant bank should be able to operate
more efficiently and its future prospects appear
favorable.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ from those presently offered by each
proponent. The considerations of convenience
and needs of the community are consistent
with approval of the transaction.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

Resources
(in thousands
of dollars)

Basis for Corporation approval,
September 28, 1978
The Bank of Le Roy, Le Roy, New York
("Applicant"), an insured State nonmember
bank with total resources of $3 7,285,000 and
total IPC deposits of $24,648,000, has applied,
pursuant to Section 18(c) and other provisions
of the Federal Deposit Insurance Act, for the
FDIC's prior consent to merge with The Citizens
Bank, Attica, New York ("Other Bank"), with
total resources of $20,096,000 and total IPC
deposits of $16,883,000. The banks would
merge under the charter of Applicant with the
title "Genesee Country Bank,” and the two
offices of Other Bank would become branches
of the resultant bank, which would commence
operations with a total of five offices.
Competition. E ssentially a co rp o ra te
reorganization, the proposal would provide a
means whereby Security New York State Cor­
poration, Rochester, New York, the 19th largest
of the State's commercial banking organiza­
tions, controlling nine banks with aggregate
total deposits of $9 68 ,9 57 ,0 00 (0.7 percent of




Peoples Bank &
Trust Company
Rocky Mount, North
Carolina

Banking offices
in operation
Before

After

294,674

42

47

23,334

5

to merge with

The Cumberland Bank
Fayetteville

Summary report by Attorney General,
August 30, 1978
We have reviewed this proposed transaction
and conclude that it would not have a signifi­
cant adverse effect upon competition.
Basis for Corporation approval,
October 5, 1978
Peoples Bank & Trust Company, Rocky
Mount, North Carolina ("Peoples Bank"), an
insured State nonmember bank with total
resources of $294 ,6 74 ,0 00 and total IPC

82

FEDERAL DEPOSIT INSURANCE CORPORATION

deposits of $232,129,000, has applied, pur­
suant to Section 18(c) and other provisions of
the Federal Deposit Insurance Act, for the Cor­
poration's prior consent to merge with The
Cumberland Bank, Fayetteville, North Carolina
("Cumberland Bank"), with total resources of
$ 2 3 ,3 3 4 ,0 0 0 and total IPC deposits of
$16,412,000. The banks would merge under
the charter and title of Peoples Bank, and inci­
dent to the merger, the 5 existing offices of
Cumberland Bank would become branches of
the resultant bank, increasing the number of its
offices to 47.
Competition. Peoples Bank is the 11 th
largest banking organization in North Carolina. It
currently operates 42 offices located predomi­
nantly in the northeastern portion of the State.
The nearest office of Peoples Bank to an office
of Cumberland Bank is located in Raleigh,
approximately 60 miles north. Cumberland
Bank operates four offices in Fayetteville and
one in nearby Spring Lake. The areas served by
the two banks do not overlap.
The effects of this proposal would be most
pronounced in Cumberland County, the primary
market of Cumberland Bank. Fayetteville is the
only urban area in the county, but Fort Bragg,
one of the Nation's largest military installations,
and adjoining Pope Air Force Base add con­
siderable population to the area. There are 9
banking in s titu tio n s , o p e ra tin g 65 banking
offices, located in the county. This includes 7 of
the State's 10 largest banking organizations.
Cumberland Bank has 5.8 percent of the total
IPC deposits in the county. Peoples Bank is not
represented in the county, and inasmuch as the
proposal would merely substitute Peoples Bank
for Cumberland Bank, at the same sites, it is not
expected that relative local market shares
would be affected.
Under North Carolina law each bank could
establish de novo branches in areas serviced by
the other bank. Because of its limited resources
and the distances involved, Cumberland Bank is
unlikely to engage in any such de novo branch­
ing activity. Peoples Bank has the capability for
de novo branching, but there is little incentive to
enter by this means because of the number of
commercial banking offices already in Cumber­
land County. It therefore appears unlikely that
any significant potential competition would be
eliminated by the proposed merger.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. Both proponents have satisfactory
financial and managerial resources, as would




the resultant bank. The future prospects appear
favorable.
Convenience and Needs of the Community
to be Served. Consummation of this proposed
merger would make available larger lending
limits and more sophisticated banking services
to Cumberland Bank's customers. These serv­
ices are available at a number of other large
commercial banks in the area, but the con­
siderations of convenience and needs are
nevertheless consistent with approval of the
proposed merger.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Colonial Bank of
New Haven
New Haven,
Connecticut
(change title to
Colonial Bank)

Banking offices
in operation
Before

After

292,064

20

66

523,834

34

42,134

6

43,336

6

to merge with

Colonial Bank of
Waterbury
and
Colonial Bank of
Hartford
Hartford
and
Colonial Bank of
Plainville
Plainville

Summary report by Attorney General,
June 26, 1978
The merging banks are all wholly owned sub­
sidiaries of the same bank holding company. As
such, their proposed merger is essentially a cor­
porate reorganization and would have no effect
on competition.
Basis for Corporation approval,
October 12, 1978
Colonial Bank of New Haven, New Haven,
Connecticut ("Applicant"), an insured State
nonmember bank w ith total resources of
$ 2 9 2 ,0 6 4 ,0 0 0 and total IPC deposits of
$238,224,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the FDIC's prior con­
sent to merge with Colonial Bank of Waterbury,
Waterbury, Connecticut, with total resources of
$ 5 2 3 ,8 3 4 ,0 0 0 and total IPC deposits of

BANK ABSORPTIONS APPROVED BY THE CORPORATION
$3 40 ,4 17 ,0 00 ; Colonial Bank of Hartford,
Hartford, Connecticut, with total resources of
$ 4 2 ,1 3 4 ,0 0 0 and total IPC deposits of
$37,841,000; and Colonial Bank of Plainville,
Plainville, Connecticut, with total resources of
$ 4 3 ,3 3 6 ,0 0 0 and total IPC deposits of
$35,047,000. These banks would merge under
the charter of Applicant and, w ith the title
"Colonial Bank." The 46 authorized offices of
the other banks would be established as
branches of the resultant bank. The main
office location will be redesignated to the pres­
ent main office site of Colonial Bank of Waterbury.
Competition. E ssentially a co rp o ra te
reorganization, the proposal would provide a
means by which Colonial Bancorp, Inc., Waterbury, Connecticut, a bank holding company
which controls these four banks only, may con­
solidate its operations. The proponents have
been under common control since 1977. The
proposed merger would not affect the structure
of commercial banking or the concentration of
banking resources within the relevant markets.
In view of the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for the purposes of this proposal. The financial
and managerial resources of the resultant bank
would be satisfactory and its future prospects
appear favorable.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant markets by the resultant bank would
not d iffe r materially from those presently
offered by each proponent.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

Resources
(in thousands
of dollars)

The Equitable
Trust Company
Baltimore, Mary­
land

Banking offices
in operation
Before

After

1,448,598

95

99

18,220

4

to merge with

Truckers and Savings
Bank
Salisbury




83

Summary report by Attorney General,
August 28, 1978
We have reviewed this proposed transaction
and conclude that it is essentially a corporate
reorganization and would have no effect on
competition.
Basis for Corporation approval,
October 12, 1978
The Equitable Trust Company, Baltimore,
Maryland ("Applicant"), an insured State non­
m em ber bank w ith to ta l resources o f
$1 ,448 ,5 98 ,0 00 and total IPC deposits of
$1,138,728,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the FDIC's prior con­
sent to merge with Truckers and Savings Bank,
Salisbury, Maryland ("Truckers"), with total
resources of $ 1 8 ,2 2 0 ,0 0 0 and total IPC
deposits of $14,827,000. These banks would
merge under the charter and with the title of
Applicant and the fou r existing and one
approved but unopened offices of Truckers
would be established as branches of the result­
ant bank.
Competition. Applicant and Truckers are
wholly owned subsidiaries of Equitable Bancorporation, Baltimore, Maryland, a bank holding
company, and have been under common con­
trol since 1974. Essentially a corporate
reorganization, this proposal would result in the
business of these tw o banks being conducted
under the charter and title of Applicant. The
proposed merger would not affect the structure
of commercial banking or the concentration of
banking resources within the relevant market.
In view of the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for the purposes of this proposal. The financial
and managerial resources of the resultant bank
would be acceptable and its future prospects
appear favorable.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

84

FEDERAL DEPOSIT INSURANCE CORPORATION

Resources
(in thousands
of dollars)

The New York
Bank for Savings
New York, (Man­
hattan), New York

Banking offices
in operation
Before

After

3,765,557

26

32

96,265*

6

to merge with

First Chartered
Savings and Loan
Association
Port Jervis
'Total deposits.

Summary report by Attorney General,
August 8, 1978
The closest offices of the merging parties
(Applicant's Bedford Hills office in Westchester
County and First Chartered's Nyack office in
Rockland County) are 21 miles apart. The
application indicates that, based upon a samp­
ling of accounts, the merging parties have a
negligible number of common depositors.
However, according to the application, there is
some deposit overlap between Applicant and
First Chartered; thus, as of December 31,
1977, Applicant held $27.7 million in deposits
drawn from First Chartered's primary and
secondary service areas, and First Chartered
held $2.3 million in deposits drawn from Appli­
cant's primary and secondary service areas. It
therefore appears that the proposed merger
would eliminate some existing competition be­
tween Applicant and First Chartered. However,
it does not appear that concentration among
t h r if t in s titu tio n s w o uld be s ig n ific a n tly
increased in any relevant market. Finally, under
New York law, thrift institutions may establish
one de novo branch office per year. The poten­
tial for increased future competition between
Applicant and First Chartered through de novo
branching is therefore limited.
Basis for Corporation approval,
October 30, 1978
The New York Bank for Savings, New York
(Manhattan), New York ("NYBS"), an insured
mutual savings bank with total resources of
$ 3 ,7 6 5 ,5 5 7 ,0 0 0 and to ta l d e po sits o f
$3,359,764,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge with First Chartered
Savings and Loan Association, Port Jervis, New
York ("First Chartered"), a Federally insured
savings and loan association with total deposits
of $96,265,000. The 2 institutions would
merge under the charter and title of NYBS, and




incident to the merger, the 6 offices of First
Chartered would become branches of the re­
sultant bank, which would commence operating
with a total of 32 offices and 1 approved, but
unopened office.
Competition. NYBS operates its main office
and 16 branches in Manhattan, 2 branches in
W estchester County, 3 branches in the
Rochester area of Monroe County, and 4
branches in the Syracuse area of Onondaga
County. An additional branch has been
approved for the Syracuse area. NYBS is the
third largest thrift institution in New York State.
The relevant market in which to assess the
competitive impact of the proposed transaction
is regarded as Orange and Rockland Counties,
where First Chartered operates its six offices.
While there is some evidence of commutation
to New York City and other nearby areas for
employment, the majority of the residents of
the two-county area are employed locally.
Several well-known industrial firms have estab­
lished manufacturing facilities in this market
and contribute to a stable economic base.
There are 31 thrift institutions operating 65
offices in the relevant market. First Chartered,
which ranks as the market's fifth largest thrift
institution, holds a modest 6.4 percent of the
area's thrift institution deposits. NYBS, whose
nearest office is located 21 road-miles distant
from the closest office of First Chartered, is not
represented in this market. The proposed trans­
action would have no significant effect on exist­
ing competition between the proponents or on
the structure of thrift institution banking in the
local market. NYBS's ranking as the State's
third largest thrift institution would not be
materially affected by the relatively modest
volume of deposits held by First Chartered.
The potential for substantial competition to
develop between the tw o banks through de
novo branching is considered remote due to the
very strong competition First Chartered would
encounter in the New York City area and the
statutory limitation of one de novo branch a
year applicable to NYBS.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources have been
satisfactorily resolved, and the resultant bank is
anticipated to have favorable future prospects.
Convenience and Needs of the Community
to be Served. NYBS's entry into the Orange and
Rockland Counties market would make avail­
able an additional alternative for certain thrift

vvsy

; p ^ o v t r ’ s v i Hrr '.G ^ -e ^ v ^ f.v :

institution services not now offered by First
Chartered. The considerations of convenience
and needs of the community to be served are
consistent with approval of the application.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion Is warranted.

Resources
(in thousands
of dollars)

Vevay Deposit Bank
Vevay, Indiana

Banking offices
in operation
Before

After

16,568

1

2

2,979

1

to merge with

East Enterprise
State Bank
East Enterprise

Summary report by Attorney General,
August 28, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
November 8, 1978
Pursuant to Section 18(c) and other provi­
sions of the Federal Deposit Insurance A c t an
application has been filed on behalf of Vevay
Deposit Bank, Vevay, Indiana ("Applicant"), an
insured State nonmember bank with total
resources of $ 1 6 ,5 6 8 ,0 0 0 and total IPC
deposits of $13,252,000, for the FDIC's prior
consent to merge, under its charter and title,
with East Enterprise State Bank, East Enterprise,
Indiana ("State Bank"), also an insured State
nonmember bank, with total resources of
$ 2 ,9 7 9 ,0 0 0 and to ta l IPC de po sits o f
$2,434,000. The sole office of State Bank
would be established as a branch of the result­
ant bank.
Competition, Applicant operates its sole
office in the town of Vevay (1970 population
1,463) in the southern portion of Switzerland
County of southeastern Indiana and has
received approval to establish its first de novo
branch, also in Vevay. State Bank operates its
sole office at the village of East Enterprise (esti­
mated population 1 50) in the northern part of
Switzerland County approximately 12 roadmiles northeast of Vevay.
Switzerland County and adjoining Ohio
County (1970 population 6,306 and 4,289,
respectively), which form the relevant market in




85

which to assess the competitive impact of the
proposed transaction, are among the smallest
of Indiana's counties in both area and popula­
tion. These counties are located in the rural,
extreme southeastern portion of the State
adjoining the Ohio River. The terrain is generally
hilly and the economy predicated, to a large
exte nt, upon live sto ck p ro d u ctio n and
agriculture. The city of Madison (1970 popula­
tion 13,081) and the Aurora-Lawrenceburg
area (estimated population 9,000) contain
diversified industry and manufacturing plants
which serve, to some extent, as centers for
nonagricultural employment for the market's
rural residents.
In the relevant market, four commercial
banks each operate a single office. Applicant,
holding 38.7 percent of the market's IPC
deposits, ranks as its largest bank; State Bank is
the smallest, holding a 6.8-percent share of
such funds which are drawn from a limited local
area. The two-county market is sparsely popu­
lated with the city of Madison and the AuroraLawrenceburg area providing, to some extent
an alternate source of commercial banking
service. Represented in these cities are banks of
a substantially larger size than the institutions
competing in Switzerland and Ohio Counties.
While the proposed merger would eliminate
some existing competition between the propo­
nents and increase concentration levels in the
market these consequences have only limited
significance in light of the small size of the rele­
vant market and its deposit potential Although
the proposed merger would reduce from four to
three the number of commercial banks in this
market the effectiveness of State Bank as a
c o m p e tito r appears lim ite d. S tate Bank,
organized in 1909, has attained less than $3
million in total deposits in its almost 70-year
history and presently administers a loan
portfolio of only $770,000.
Indiana statutes permit de novo branching
throughout a bank's home office county, sub­
ject to a home office protection provision. State
Bank's limited size., however, appears to pre­
clude its expansion by such means. Applicant,
while possessing the necessary resources and
ability to engage in de novo branching, is ham­
pered by Switzerland County's limited popula­
tion, particularly in the northern portion of the
county m the vicinity of East Enterprise. The
proposed transaction is thus viewed as having
no significant effect on the potential for future
competition between the proponents.
Under the circumstances, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would n o t in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.

-tDLRA*. 0- " " l r

86

Financial and Managerial Resources; t> rrre
P rospects. The fin a n cia l and m anagerial
resources of both proponents ar;d of the result­
ant bank are consde'ed adequate lor purposes
of this proposal Fr«t rasultain bank is antic;
paled to have T s v o r b le future prospects,
Convenience and Needs o f the Community
to he Served. State Bank's limited resources
have prevented it from offering many full serv­
ice commercial banking ^er sees that vvouic oe
available at the resuitart c»jK In aactoio*» a
.
modernization program is ^
r
for State
Bank's building, and a drive-up ‘ability wojk.1 be
added. The considerations of convenience and
needs of the community to be served appear to
add some weight in favor of approval of the
application.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

1
—

■

Banking offices
in operation

| Resources
I (in thousands
| of dollars)

Gardiner Savings
Institution
Gardiner, Maine
to merge with
Hailowell Savings and
Loan Association
Hailowell

Before j| After
.
.

| 50,058

4,618

i

4

!

j

Summary report by Attorney General,
October 3, 1978
The primary service area of Applicant over­
laps that of Bank. The main offices of both are
located 4.3 miles apart in Kennebec County. In
view of the overlapping service areas of Appli­
cant and Bank and the closeness of their
offices, the proposed acquisition would elimi­
nate both present and future direct competition
for deposits.
As of June 30, 1977, Applicant was the
seventh largest banking institution in Kennebec
County, with 7.9 percent of total savings
deposits in all financial institutions. Bank is the
smallest of fo ur savings associations in the
county, with 1.1 percent of total savings
deposits in financial institutions. Consummation
of the proposed acquisition would give the
resulting bank a totai of 9,0 percent of savings
deposits in county financial institutions.




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Basis for Corporation approval,
November 8f 1978
Gardiner Savings Institution, Gardiner, Maine
("Gardiner Savings"), an insured mutual sav­
ings b&nx with total resources of $5 0,058,000
and tctr-s deposits of $ 4 5 ,7 3 0 ,0 0 0 , has
applied Pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act,
for the
prior consent to merge with
Hailowell Savings and Loan Association,
Hailowell, Maine ("S&L"), a federally insured
savings and loan association with total
resources of $4,618,000 and total deposits of
$4,441,000 T he merger would be effected
'e* tne charter and title of Gardiner Savings
r id thr, so!e office of S&L would be established
as * oranch of the resultant bank.
Competition, Gardiner Savings operates
three offices in the three-county area in the
cap till region of Maine, with its main office in
(; jiner, Kennebec County, approximately 7
.«
*
south of the city of Augusta, and
•> . nohes 10 miles south and 17 miles
_
southeast of Gardiner, in Richmond, Sagadahoc
County, and Wiscasset, Lincoln County, respec­
tive:’/ Gardiner Savings is the 16th largest
mutual savings bank in Maine, having 2.3 per­
cent of deposits held by all mutual savings
banks in the State. S&L's sole office is located
in Hailowell (1970 population 2,814), approx­
imately 4 miles north of Gardiner Savings' main
office,
S&L's service area is located wholly within
the service area of Gardiner Savings. In addition
to Hailowell, the relevant trade area in which to
assess the competitive impact of the proposed
transaction consists of the cities of Augusta to
the north and Gardiner to the south, along with
the surrounding municipalities of Farmingdale,
W e st Gardiner, P itts ton, Randolph, and
Chelsea. The combined population of this area
in 1970 was 40,755, a modest increase of 2.5
percent over 1960 The area serves as a shop­
ping and service center for a number of sur­
rounding towns, in addition to having heavy
manufacturing, some tourism, and a concentra­
tion of governmental activity.
Gardiner Savings holds approximately 20.8
percent of deposits held by thrift institution
offices in the relevant market. It ranks third in
market share among five thrift institutions
which operate a totai of seven offices in the
trade area, S&L is the smallest of these five
institutions, holding 2.9 percent of area thrift
institution deposits, in view of S&L's relatively
small size, limited resources, and weakened
condition, the proposed transaction is seen as

j -NS

i'

having no significant effect on existing com­
petition or on the potential for increased future
competition between the proponents.
Under the circumstances, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The fin a n cia l and m anagerial
resources of Gardiner Savings are satisfactory.
S&L's financial resources have deteriorated to
the point where the institution functions as only
a weak competitor. Its acquisition by Gardiner
Savings will eliminate such problems. The
future prospects of the resultant bank are
regarded as satisfactory.
Convenience and Needs of the Community
to be Served. S&L's sole office would become a
branch of Gardiner Savings which will offer a
broader range of thrift institution services than
have been available to S&L's patrons. The re­
placement of a small, weakened, and unaggressive institution with a sound and more
aggressive one should benefit local residents.
The considerations of convenience and needs
of the community appear to add some support
to approval of the transaction.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

American Bank of
Maryland
Silver Spring,
Maryland
(change title to
First American Bank
of Maryland)

Banking offices
in operation
Before

After

212,570

20

24

41,963

4

to merge with

Chesapeake National
Bank
Towson

Summary report by Attorney General,
August 8, 1 978
The merging banks are both majority-owned
subsidiaries of the same bank holding company.




> h O. '

-

As such, her :soo -sed merger is essentially a
corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
November 8, 1978
American Bank of Maryland, Silver Spring,
Maryland ("American"), an insured State non­
m em ber bank w ith to ta l resources o f
$ 2 1 2 ,5 7 0 ,0 0 0 and total IPC deposits of
$184,338,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the FDIC's prior con­
sent to merge with Chesapeake National Bank,
Towson, Maryland ("Chesapeake"), with total
resources of $ 4 1 ,9 6 3 ,0 0 0 and total !rC
deposits of $36,182,000. These banks wo
merge under the charter of American and w;
the title "First American Bank of Maryland
The four existing offices of Chesapeake would
be established as branches of the resultant
bank.
Competition. E ssentially a co rp o ra te
reorganization, the proposal would provide a
vehicle by which Financial General Bankshares,
Inc., Washington, D.C., a multi-bank holding
company, may consolidate its operations in
central Maryland. The proponents are both par­
tially owned by a wholly owned subsidiary of
the holding company, Financial General Cor­
poration of Maryland, which owns 45.8 percent
of American and 93.6 percent of Chesapeake.
American, based in Silver Spring, operates a
total of 20 offices serving central Maryland
from the Baltimore area to suburban Washing­
ton, D.C. Chesapeake, based in Towson north
of the city of Baltimore, operates four offices in
the Baltimore and Annapolis areas. While the
primary service areas of the proponents do
overlap to some minor extent, the service ar
are viewed as generally complementary. Eh
tive, direct competition, absent the comrownership factor, is in evidence only at off?
located in the vicinity of Annapolis. In ligh v
the number of other banking alternatives av: ■able to residents of that area, consummatior .
the proposed transaction would have little com­
petitive impact.
The common ownership interest in both pro­
ponents by the holding company precludes any
significant existing or potential competition.
Chesapeake was established in 1964 and has
remained under majority control of the holding
company since that time. Minority "co ntrol" of
American dates from 1955, and while actual
ownership of that institution by the holding
company is slightly less than 50 percent, it
seems unlikely that the actual majority control
of the institution would be allowed to pass to
another individual or group.

FEDERAL DEPOSIT INSURANCE CORPORATION

88

Under these circumstances, the Board of
Directors is of the opinion that the proposed
transaction would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for the purposes of this proposal. The financial
and managerial resources of the resultant bank
would be acceptable, and its future prospects
appear favorable.
Convenience and Needs o f the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent or available at competing
banks. The considerations of convenience and
needs of the community, however, are consis­
tent with approval of the transaction.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
On the basis of the foregoing, the Board of
Directors has concluded that approval of the
application is warranted.

Resources
(in thousands
of dollars)

Frankenmuth Bank
& Trust
Frankenmuth, Michigan

Banking offices
in operation
Before

After

1 9 3 ,1 3 9

14

15

9 ,2 1 0

1

to consolidate w ith

The Farmers and
M erchants State Bank
of M e rrill
Merrill

Summary report by Attorney General,
June 26, 1978
We have reviewed this proposed transaction
and conclude that it would not have a signifi­
cantly adverse effect upon competition.
Basis for Corporation approval,
November 8, 1978
Frankenmuth Bank & Trust, Frankenmuth,
Michigan ("Frankenmuth Bank"), an insured
State nonmember bank with total resources of
$ 1 9 3 ,1 3 9 ,0 0 0 and total IPC deposits of
$1 58,085,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's




prior consent to consolidate with The Farmers
and Merchants State Bank of Merrill, Merrill,
Michigan ("Farmers Bank” ), an insured State
m em ber bank w ith to ta l resources of
$ 9 ,2 1 0 ,0 0 0 and to ta l IPC d e po sits o f
$7,703,000, under the charter and title of
Frankenmuth Bank. Farmers Bank's sole office
would be operated as a branch of the resultant
bank.
Competition. The tw o banks are located in
cities situated about 30 miles apart in Saginaw
County, which is in east-central Michigan. The
county had a 1970 population of 219,743,
which was a 1 5.2-percent increase from the
1960 population figure. The banking market
most relevant to an evaluation of this proposed
transaction would be an area within an approxi­
mate 20-road-mile radius of Merrill, including
portions of Saginaw, Midland, and Gratiot
Counties. Much of the area is rural with the
economy chiefly predicated upon agriculture.
The cities of Saginaw, 19 70 population
9 1 ,8 4 9 , and M idland, 1 9 7 0 p o pu latio n
34,921, serve as the area's economic centers
and provide nonfarm employment and shop­
ping convenience to residents of the trade area.
The area, with the exception of the city of
Saginaw, has experienced a moderate growth
in population, and except for Gratiot County,
income averages are near or above the 1977
State median household buying level.
The proponents are in direct competition to
the extent that tw o of Frankenmuth Bank's
branches are in the relevant market of Farmers
Bank. The competitive effect of the transaction,
however, is regarded as nominal in light of the
number of alternate sources of commercial
banking available in the market area and the
relative size of such competing institutions. The
closest offices of the tw o banks are 14 miles
apart with offices of other banks in the inter­
vening area.
Of the 14 banks operating a total of 53
offices in the relevant market, the proponents
rank 7th and 13th in percentage of total
deposits held. The resultant bank would hold
4.4 percent of such deposits and would con­
tinue to rank seventh in the market. It would
appear that a competitive banking climate
would continue in the market and that the pro­
posed consolidation would not have any
material effect on the structure of commercial
banking.
Under Michigan statutes, each bank may
branch within 25 miles of its main office within
Saginaw County or any of the counties con­
tiguous thereto, but no de novo branch may be
established in any community in which another
bank is already in operation. Thus, the potential
for competition to increase via de novo branch­
ing is not significant.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
The proposed consolidation of Frankenmuth
Bank and Farmers Bank would not eliminate any
significant existing or potential competition be­
tween them, nor would it materially affect the
concentration of banking resources in the local
market.
Based upon the foregoing, the Board of
Directors is of the opinion that the proposed
transaction would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources; Future
Prospects. Both banks have satisfactory finan­
cial and managerial resources, and the resultant
bank, with the proposed addition to its capital
stru c tu re , w o uld have fa vo ra b le fu tu re
prospects.
Convenience and Needs o f the Community
to be Served. The proposed consolidation
would result in some improvement in the serv­
ices available to the customers of Farmers Bank.
The resultant bank would have an increased
lending limit and would provide trust services
and expertise in specialized lending areas. The
considerations of convenience and needs of the
community are consistent with approval of the
application.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

W estern Bank
Coos Bay, Oregon

Banking offices
in operation
Before

After

2 4 6 ,6 1 6

26

35

4 8 ,0 7 2

9

to merge with

Crater National Bank
Medford

Summary report by Attorney General,
October 13, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
November 8, 1978
Western Bank, Coos Bay, Oregon, an insured
State nonmember bank with total resources of
Digitized$ 2 4FRASER 0 0 and total IPC deposits of
for 6 ,6 1 6 ,0



89

$ 1 89,797,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the FDIC’s prior con­
sent to merge, under its charter and title, with
Crater Natonal Bank, Medford, Oregon ("Crater
Bank” ), with total resources of $48,072,000
and total IPC deposits of $39,450,000. The
nine offices of Crater Bank will be established
as branches of the resultant bank. Incident to
the transaction, Class A Convertible Preferred
Stock will be issued, and the FDIC's advance
consent to the retirement thereof is also sought.
Competition. Based in Coos Bay on the
southwestern coast of Oregon, Western Bank
operates 26 offices in 12 of the State's coun­
ties. Crater Bank operates all of its nine offices
within Jackson County in southern Oregon,
which is regarded as the relevant market in
which to assess the competitive impact of the
proposed transaction.
Jackson County (1970 population 94,533)
has experienced rapid growth in recent years
with development most evident along a series
of valleys and centered at the city of Medford
(1970 population 28,454), which serves as a
principal commercial, retail, and economic
center for a wide area. Approximately one-third
of the county's manufacturing is engaged in the
wood products industry; however, tourism,
related recreational pursuits, and specialized
agricultural crops contribute to a stable
economic base.
Seven commercial banks operate a total of
28 offices in this market, including offices of
the State's three largest commercial banks.
Crater Bank, which is ranked as the third largest
commercial bank in this market, holds 12.4 per­
cent of its IPC deposits. This market share is
significantly smaller than the 72.C-percent
combined share held by the tw o Portland-based
commercial banks that dominate this local
market as well as other markets in the State.
Western Bank, whose nearest office is more
than 40 road-miles from any office of Crater
Bank and separated by mountainous terrain, is
not represented in the market. Its merger with
Crater Bank would have no effect on existing
competition between the institutions or on the
structure of the local market.
Oregon State statutes prohibit de novo
branching in communities of less than 50,000
population that contain existing banking offices.
Western Bank is therefore precluded from de
novo entry into the city of Medford and most
other developed areas of Jackson County.
While some potential de novo branch sites do
remain. Western Bank is not viewed as likely to
expend the time and resources necessary to
make a significant market penetration in light of
the number of established banking offices in
the developed portions of the county and the

90

FEDERAL DEPOSIT INSURANCE CORPORATION

concentrated nature of the local banking
market. Crater Bank, which has chosen to con­
fine its operations to Jackson County, is not
anticipated to expand into geographic areas
removed from this base to become a major
competitor of Western Bank in the near future.
The proposed transaction is thus seen as hav­
ing no significant effect on potential competi­
tion between the proponents.
Western Bank, ranked as Oregon's fifth
largest commercial bank with 2.2 percent of the
State's total commerciai bank deposits, would
acquire only an additional 0.4 percent of such
funds as a consequence of the proposed trans­
action. This modest increase in share of State
deposits would have little material effect on the
concentration of banking resources in light of
the substantially larger shares held by the
State's two largest commercial banks, which
aggregately hold 55.3 percent of Oregon's
commercial bank deposits.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The fin a n cia l and m anagerial
resources of both proponents are regarded as
satisfactory. W ith the proposed additions to the
resultant bank's capital structure, its future
prospects appear favorable.
Convenience and Needs o f the Community
to he Served. The resultant bank will offer more
, ensive commercial banking services than are
f sently available at Crater Bank. These serv; are available at local offices of Oregon's
* ?.e largest banks, but the proposed merger
,-uld bring another source for such services to
ir e local market. The considerations of con­
venience and needs of the community to be
served are consistent with approval of the
application.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.




Resources
(in thousands
of dollars)

The W est Pensacola
Bank
Pensacola, Florida
(change title to The
West Florida Bank)

Banking offices
in operation
Before

After

37,883

2

4

13,797

2

to merge with

The Bank of W est
Florida
Pensacola

Summary report by Attorney General,
August 30, 1 978
Both Applicant and Bank operate in the Pen­
sacola SMSA, which consists of Escambia and
Santa Rosa Counties. Bank's home office is
located 8.7 miles north of Applicant's home
office; Applicant's branch office is 3.5 miles
east of the home office of Bank. However,
numerous other banking institutions operate in
the area served by Bank and Applicant. Appli­
cant ranks sixth of 20 banks in the SMSA, con­
trolling 6.85 percent of total deposits. Bank
ranks 1 5th in the SMSA, controlling 2.1 8 per­
cent of total deposits. In Escambia County
Applicant ranks 6th with 8.2 percent of total
deposits and Bank ranks 11 th with 2.60 per­
cent of total deposits of 16 banks in the county.
The resulting bank would rank 5th with 9.04
percent of total deposits in the SMSA and 5th
with 10.7 percent of total deposits in the coun­
tyIt thus appears that the two institutions com­
pete directly in both Escambia County and the
Pensacola SMSA and that the proposed merger
would eliminate some existing competition. In
view of the size of the institutions, their relative
market shares, and the presence of alternative
banking institutions, we conclude that this
merger would have a slightly adverse effect on
competition.
Basis for Corporation approval,
November 1 7, 1978
The W est Pensacola Bank, Pensacola,
Florida ("W est Pensacola''), an insured State
nonmember bank w ith total resources of
$ 3 7 ,8 8 3 ,0 0 0 and total IPC deposits of
$27,100,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge, under its charter, with
The Bank of West Florida, Pensacola, Florida
("W est Florida''), an insured State nonmember
bank with total resources of $1 3,79 7,00 0 and
total IPC deposits of $11,186,000. Incident to

the
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of West honda '* o d '
^'s^pf a*,
branches of t h e re-«J? r , t or- ^ «.;o w ' m , . commence operation *vith f^ut of* ces and w th
the title "The West Flor da
,
Competition, The proponents are located in
Escambia County, the westernmost county in
the Florida panhandle. West Pensacola operates
its head office near downtown Pensacola
(1970 population 59,507), the county seat,
and its only branch approximately 9 miles to the
north. W est Florida's main office is located
approximately 9 miles northwest of downtown
Pensacola and its only branch is located 16
miles north of the main office in the town of
Molena, Florida In addition to the Pensacola
Naval Air Station and support facilities which
are the principal contributors to the local
economy, a number of manufacturing plants
are important to the economy of Escambia
County (1970 population 205,334), as are
commercial and sport fishing and shipping. The
county experienced a population increase of
1 8.1 percent in the period 1960 to 1970.
Of the 13 commercial banks operating 25
banking offices in Escambia County, West Pen­
sacola and West Florida are ranked sixth and
ninth by deposit size, holding 8.1 percent and
2.8 percent of the county's total deposits,
respectively. The resultant bank would hold
10.9 percent of such deposits, making it the
fifth largest bank in the county. It would appear
that the structure of commercial banking in
Escambia County would not be significantly
affected by the proposed transaction.*
While the proponents' nearest offices are
located less than 4 miles apart in the unincor­
porated Ensley portion of the county, and the
proponents' head offices are only 9 miles dis­
tant, actual direct competition between the two
institutions appears to be somewhat limited.
West Pensacola, established in 1950, has
grown into a commercially oriented institution
centered near the downtown business district
of Pensacola, while West Florida, established in
1967, has chosen to operate principally as a
consumer-oriented bank serving outlying por­
tions of the county. In light of the proponents'
differing customer bases and the presence of

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consumma-

r>,ofG'-'Cd ‘ rvise c h o n is viewed as
r C3i»t r/jverse .rnpact on existing

"
^ n re t^ n ^
Under f\or:o.z statutes, banks headquartered
in Escambia County may branch de novo and
merge only within the confines of the county.
Each operating bank may establish tw o
branches per calendar year, in addition to those
acquired via merger The impact of the pro­
posed transaction on the potential for future
competition is regarded as nominal.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources of each institution
have been satisfactorily resolved and the result­
ant bank is anticipated to have favorable future
prospects.
Convenience and Needs o f the Community
to be Served. The proposed merger would
result in no substantial change in the services
now available to customers of either bank. The
considerations of convenience and needs of the
community are consistent with approval of the
application.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
(in thousands
of dollars)

Peoples Bank of
Hawk Point
Hawk Point, Missouri
(change title to Peoples
Bank of Lincoln County)

Banking offices
in operation
Before

After

14,218

1

2

5,340

2

to merge with

*!n August 1977, Mr. James H. Baroco, principal
stockholder of West Pensacola, began purchasing and
now has effective stock control of West Florida. Since the
current affiliation of the two banks has not heretofore
been subject to regulatory scrutiny, the affiliation is of no
persuasive value in determining, for purposes of the Bank
Merger Act, what competitive im pact if any, the proposed
transaction may have. Therefore, in accordance with past
agency practice, the Board of Directors has ignored the
affiliation in its assessment of the proposal.




Citizens Bank of
Troy
Troy

Summary report by Attorney General,
August 8, 1 978
We have reviewed this proposed transaction
and conclude that it would not have a signifi­
cant adverse effect upon competition.

92

FEDERAL DEPOSIT INSURANCE CORPORATION
Basis for Corporation approval
November 1 7.. 1 978

Pursuant to Section 18(c) and other provi­
sions of the Federal Deposit Insurance Act, an
application has been filed
;:ehalf of Peoples
Bank of Hawk Point,. Haw< Point, Missouri
("Peoples Bank"), an insured State nonmember
bank with total resources of $1 4,21 8,000 and
total IPC deposits of $1 2,496,000, for the Cor­
poration's prior consent to merge, under its
charter, with Citizens Bank of Troy, Troy,
Missouri ("Citizens Bank"), also an insured
State nonmember bank, with total resources of
$ 5 ,3 4 0 ,0 0 0 and to ta l IPC de p o sits of
$3,751,000. Peoples Bank seeks to redesig­
nate its main office location to the present site
of the main office of Citizens Bank and to
establish the sole office of Peoples Bank as a
branch of the resultant bank, which would bear
the title "Peoples Bank of Lincoln County."
Citizens Bank's present branch (facility) at
Moscow Mills will be discontinued. Incident to
the transaction, the proponents have proposed
raising $6 00 ,0 00 as an addition to the resultant
bank's capital structure. Such capital funds
would include $ 4 0 0 ,0 0 0 in subordinated
capital notes and the Corporation's advance
consent to their mandatory retirement provision
is also sought.
Competition. Peoples Bank operates its sole
office in Hawk Point (1 970 population 354) in
the western part of Lincoln County, Missouri.
Citizens Bank is headquartered in the city of
Troy (1 970 population 2,538), located in the
south-central portion of Lincoln County approx­
imately 8 road-miles east of Hawk Point, and
operates a branch (facility) at Moscow Mills
(1970 population 399), located approximately
6 road-miles southeast of Troy. Lincoln County
(1970 population 18,041) is located in eastcentral Missouri approximately 40 miles north­
west of the St. Louis metropolitan area. While
an increasing number of the county's residents
commute daily for employment to the St. Louis
area, the county is still primarily rural with
agricultural pursuits providing the major source
of income. The completion of Interstate Route
70 (a major east-west artery) approximately 5
miles below the county's boundary has served
to accelerate the area's residential develop­
ment. While the 1 970 median household buy­
ing level for Lincoln County was lower than
comparable figures for the State and St. Louis
m etropolitan area, its geographic location
adjoining rapidiy growing St. Charles County
and its stable economic base indicate that the
area has favorable economic prospects.
The relevant market in which to assess the
competitive impact of the proposed transaction
is regarded as the area within approximately 1 5




miles of the city of Troy, which includes most
of Lincoln County and adjoining portions of
Warren and Si Cha-les Counties. There are 1 1
commercial h.nrM< operating a total of 13
offices in trvs rna» ket with Peoples Bank holding
11 2 ofcrcem ( ■ me area's IPC deposits and
ranking a» the third largest bank by such a
measure. Citizens Bank, with only 3.4 percent
of the market's IPC deposits, is the smallest
commercial bank in the market and, based in
Troy, faces intense competition from the sub­
stantially larger Boatmen's Bank of Troy, an
affiliate of one of Missouri's largest banking
organizations. The resultant bank wili hold 14.6
percent of the market's IPC deposits and
remain as the area's third largest commercial
bank. The proposed tra n sa ctio n w o uld ,
therefore, have little effect on the structure of
commercial banking in the relevant market.
The proponents' head offices are located
approximately 8 road-miles apart and, to some
extent, must be considered to be in direct com­
petition. Citizens Bank, however, in its 5 years
of operation, has failed to achieve any signifi­
cant market penetration and has not developed
into a major competitive factor in the county. In
addition, the market already contains a number
of other, larger commercial banks, and the
elimination of this existing competition is not
viewed as having any significant adverse effect
upon competition.
Missouri statutes severely restrict de novo
branch activity with the proponents limited to
the operation of only one branch (facility) in
towns within 1 5 miles of the head office with a
population of not more than 1,550 that contain
no existing banking services. Both proponents
are, thus, effectively barred from any such de
novo expansion activity. The proposed transac­
tion would have little effect on the potential for
future competition between the proponents.
Under the circumstances, the Board of Direc­
tors is of the opinion that the proposed transac­
tion would not, in any section of the country,
substantially lessen competition, tend to create
a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future
Prospects. The factors relating to financial and
managerial resources have been satisfactorily
resolved. The resultant bank, with the proposed
additions to its capital structure, is anticipated
to have favorable future prospects.
Convenience and Needs o f the Community
to be Served. As a direct result of the proposal,
the Moscow Mills branch (facility) will be dis­
continued. This office was opened in February
1975 and has failed to develop a sufficient
customer base to justify economically its con­
tinued operation. The closing of the Moscow

- ' > r fX-MS A r ^ ’O. P ' - v ^ r » s
. "

Mills office is expecie~ to h<Ht# * file materia!
impact on the convenience ar 3
eds of the
community.
The proposed merger would result in no sig­
nificant change in the level or pricing of com­
mercial banking services. The considerations of
convenience and needs of the community are
consistent with approval of the applications.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tions is warranted.

Resources
(in thousands
of dollars)

Farmers and M erchants
Bank and Trust
of W atertow n
Watertown, South
Dakota

Banking offices
in operation
Before

After

51,740

2

4

7,232

2

to purchase the asse ts and as­
sum e the deposit lia b ilitie s o f

First Security Bank
Morristown

Summary report by Attorney General,
June 8, 1 978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
November 17,. 1978
Farmers and Merchants Bank and Trust of
Watertown, Watertown, South Dakota ("Farm­
ers"), an insured State nonmember bank with
total resources of $51,740,000 and total IPC
deposits of $41,380,000, has applied, pur­
suant to Section 18(c) and other provisions of
the Federal Deposit Insurance Act, for the Cor­
poration's prio' co g e n t
p,„r- »ibc
csse^s
of and assume ihe iidu In /
k‘L
ie
in First Security
M .kp^
* S. iV
Dakota ( " S e c u ^
‘t* 3 vne ‘ "
m em ber ban!, w t i t ' t j .
rs o , " ^
$ 7 ,2 3 2 ,0 0 0 a m
^
.
f
$5,828,000, and to ejr'.-b'Ji-’-. the *wo i f f »o^s if
Security as brFPCii^s * + r\ r<^<- Apn* :ftiOp
*
has also beer T-'de
S900 OuO in
capital notes as d e d it o r
-! i -a r f:l sir. r
ture of the rest |t?ni frank u c : ck >^rctsent to retire said notes,.
Competition, Farmers is the 12th largest
banking organization in the State of South




~,. *4 “ ; r

93

Dakota it c u r t '- t ’’ operates two offices, both
in the e *c+em portion of the State, and has
approval to open an additional branch, also in
this area. The two offices of Security are
located in Corson County, in the northwestern
portion of the State.
This proposal would have its greatest impact
on the market area of Security. This area, pre­
dominantly agricultural, is very sparsely popu­
lated, with only a limited network of roads.
There are no other banks in the relevant market
area and the nearest commercial banking office
is located in Lemmon, South Dakota, approx­
imately 25 miles west of Security's main office.
The main offices of the proponents are sepa­
rated by approximately 270 miles and the
closest branches are approximately 220 miles
apart. There is, therefore, no overlap in respec­
tive market areas, This proposal would not
eliminate any existing competition between the
two banks or have any significant effect on the
structure of commercial banking in the market.
In view of the see of the two proponents, con­
summation ‘ 4 transaction would have no
materia! eff * f o ' fc « structure of commercial
~e
banking in the Slate.
T he probability of de novo branching by
Farmers into the Morristown-Mclntosh area is
limited by home office protection provisions of
the South Dakota banking law, as well as by the
sparse population of the area. Conversely, while
South Dakota statutes would permit Security to
branch into Farmers' market area, it does not
appear to possess the resources necessary to
m o u n t any m e a n in g fu l exp ansion in to d is ta n t

areas. The transaction would therefore have no
significant effect on the potential for increased
future competition between the proponents.
Under the circumstances, the Board of Direc­
tors ic o* the opinion that the proposed transac­
tion
' o i , in any section of the country,
SLbSt^ntsaf i >essen competition, tend to create
a m cnop^v or in any other manner be in
restraint
tiade.
Financial and Managerial Resources; Future
Prospects. The fin a n cia l and m anagerial
resources of the proponents and of the resuita r s bank £ e *ega*-ded as satisfactory. The resi
i hrnk
fin the proposed addition to its
Cc3’i sl “ t'-c iu 'e -.'voufd appear to have favorat-!c f r ,re o - so - cts
j
'■ «• Needs o f the Community
■>
/
to he Served -'he. omnrmnities now served by
Sec.. i*y
enjoy a higher legal lending limit
d id trt.st -s * ic
to be offered by the resultant
bank The /%»n„vcerations of convenience and
<
le o i’. »*f tr> ccr*’ -nity appear consistent with
8
nx '-‘ t ''j
"
che transaction.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist

r *

Based on the for^u^
r*’-. ;
.
tors has concluded th?i <.v7 'T*val o' *he .-i; .
tlon is warranted.

on ,

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.

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to merge with

W est Coast National
Bank
Oceanside

r> ' i

*
■
!
!

I
:

;
:

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i

We have reviewed this piopooed transaction
and conclude that it would not have a substan­
tia! competitive impact.
Basis for Corporation approval,
November 3Gf 1 9 7 8
La Jolla Bank & Trust Comps i L i iol!a,
California ("Applicant” ), an ir.?»u.ed 3 .ale i;jh rnem ber bank w ith tota! re:-c;ir*..es of
$ 5 1 ,9 4 4 ,0 0 0 and total IPC aer cs>:.3 of
$43,382,000, has applied, pursuant tc Cc-ction
18(c) and other provisions of the f eaerai
Deposit Insurance Act, for the Corporation's
prior consent to merge, under its charter and
title, with West Coast National Bank, Ocean­
side, California ("WCNB” ), with total resources
of $31,00 3,00 0 ar.d to+Gi :PC deposits of
$23,640,000. The five offices o? W CNB would
be established
v-rsnchei c.f tr<e resultant
bank.
Competition. Applicant oper?i£. to neac
office in La Joiia, in the nort’ie n
-st J o'*t,o»'
of the city of San Diego «po*cx.r. -ueir u m vo
north^e^t c4 ^re
"
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romrrcrcia* DnPks
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Summary report by /' TtO.-^cy General
October 13, I 97o

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ea
La Jolla Bank &
Trust Company
La Jolla, California

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l,e g i r rert ^c,t petition. Califor•’Jc
f
^to**-^vsc:c
novo branching
acuvit^ a j * o<-. w
*
t- o j the potential to
exp&f:? d •
> .c • e .«ti' lie other's serv*
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tirp
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BANK ABSORPTIONS A F Tsatisfactorily resolved, W ith the proposed
$1 ,500,000 addition to the resultant bank's
capital structure, its future prospects appear
favorable.
Convenience and Needs o f the Community
to be Served. The proposed transaction would
result in no substantial change in either the level
or pricing of commercial banking services in the
community now served by WCNB. While the re­
sultant bank will offer a higher legal iending limit
and use of Applicant's modest-sized trust
department at offices of WCNB, these services
are available in the market at larger institutions.
The considerations of convenience and needs
of the community, however, are consistent with
approval of the transaction.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Banking offices
in operation

Resources
(in thousands
of dollars)

Bank of Sonoma
County
Santa Rosa, Cali­
fornia

Before

71,434

4

7,345*

After

1

5

to purchase the assets and as­
sume the deposit liabilities o f

Healdsburg Branch —
The First National
Bank of Cloverdaie
Cloverdaie

!

*IPC deposits o f o ffic e to be transferred by The First
National Bank o f CSoverdale. Assets not available by
office.

Summary report by Attorney General,
July 31, 1978
The banks involved are both wholly owned
subsidiaries of the same bank holding company.
As such, the proposed transaction is essentially
a corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
November 30, 1 978
Bank of Sonoma County, Santa Rosa,
California, an insured State nonmember bank
with total resources of $71,434,000 and total




/

{

THE i'

j RHO-

IPC deposit >
239,000, has applied, pur­
suant to Sc *10.1 s6 c) and other provisions of
the Federal deposit insurance Act, for the Cor­
poration's prior consent to purchase the assets
of and assume the liability to pay deposits made
in the Healdsburg branch ($7,327,000 as of
March 31, 1 978) of The First National Bank of
Cloverdaie, CSoverdale, California, with total
resources of $ 3 1 ,6 7 8 ,0 0 0 and total IPC
deposits of $26,837,000. The Healdsburg
branch would be established as a branch of
Bank of Sonoma County.
Competition. The proponents have been
wholly owned (except for directors' qualifying
shares) subsidiaries of independent Bankshares
Corporation, San Rafael, California, a bank
holding company, since 1 972. The proposed
transaction, essentially a restructuring of cer­
tain aspects of each bank, would result in a
branch of one subsidiary being acquired by
another subsidiary. The subsequent operation
of the branch at the same location would result
in no change in concentration of banking
resources or in the structure of commercial
banking in any relevant area.
In view of the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources appear to be adequate for
the purposes of this proposal. The financial and
managerial resources of the resultant bank,
with the contemplated addition to capital,
would be satisfactory and its future prospects
appear favorable.
Convenience and Needs o f the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent.
Available inform ation indicates that no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION

96

Resources
(in thousands
of dollars)

First American Bank
o f North Palm
Beach
North Palm Beach,
Florida
(change title to First
American Bank of Palm
Beach County)

Banking offices
in operation
Before

After

80,237

5

8

95,317

3

to merge with

First Am erican Bank
o f Lake W orth,
National Associa­
tion
Lake Worth

Summary report by Attorney General,
August 28, 1978
We have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.
Basis for Corporation approval,
November 30, 1978
First American Bank of North Palm Beach,
North Palm Beach, Florida ("PB"), an insured
State nonmember bank with total resources of
$ 8 0 ,2 3 7 ,0 0 0 and total IPC deposits of
$60,240,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge with First American
Bank of Lake Worth, National Association, Lake
W orth, Florida ("LW ” ), with total resources of
$ 9 5 ,3 1 7 ,0 0 0 and total IPC deposits of
$67,146,000. The banks would merge under
the charter of PB and with the title "First
American Bank of Palm Beach County." Inci­
dent to the merger the 3 existing offices and
the 1 approved, but unopened office of LW,
would become branches of the resultant bank,
increasing the number of its approved offices to
10.
Competition. PB was organized in 1959,
and while a number of the original founding
shareholders continue to own stock in the bank,
a group of investors headed by Roy W. Talmo
purchased a substantial interest in the bank in
1966. Mr. Talmo and his interests control
approximately 34 percent of the bank's stock
and he serves as chairman of the board. PB's
main office is located in North Palm Beach and
it operates four branches, including one drive-in
facility, all located within 8 miles of the main
office. An application for an additional office, to
be located in Tequesta, Florida (approximately




10 miles north of the main office), recently
received supervisory approval.
LW was organized in 1956, and control of
the bank was acquired by Roy W. Talmo and his
interests through stock purchases in 1965 and
1973. Mr. Talmo and his interests presently
control approximately 28 percent of the stock
and he serves as chairman of the board. LW's
main office and one branch are located in Lake
W orth with another branch located approx­
imately 10 miles west of the main office in
W est Palm Beach. An additional branch has
recently been approved for Pahokee, Florida
(40 miles northwest of the main office).
Florida banking law prohibits branching out­
side of a bank's home county. All offices of
both banks are located in Palm Beach County.
Their closest offices are separated by only 7
miles, and while the service areas of the propo­
nents overlap, PB's offices serve mainly the
northeastern portion of the county and LW's
offices the central portion. Actual direct com­
petition between the two appears to be some­
what limited. The approved, but unopened
branch of LW will serve the western portion of
the county. If the merger is approved, the serv­
ice area of the resultant bank would cover all
major population centers in the county. The
relevant area of impact for this proposal is
therefore considered to be Palm Beach County.
Palm Beach C ounty, located on the
southeastern coast of Florida approximately 40
miles north of Miami, is a rapidly growing area.
Its 1 970 population was 348,753, representing
a 52.9-percent increase over the 1960 popula­
tion of 228,106, and its estimated population
for 1977 was 485,600. The 1977 median
effective household buying level for the county
was $13,801, compared to $12,106 for the
State. As of June 30, 1978, there were 26
banking organizations represented in the coun­
ty, operating 93 banking offices. The propo­
nents ranked 11th and 12th, controlling 3.6
percent and 3.3 percent of the IPC deposits in
the county. If the merger is approved the result­
ant bank would become the fourth largest
banking organization in the county, holding 6.9
percent of such deposits. It would appear that
the structure of commercial banking in Palm
Beach County would not be significantly
affected by the proposed transaction.'
*PB and LW have 12 stockholders in common, who control
47.5 percent and 41.3 percent of the outstanding stock
of the banks respectively. Since this affiliation between
the two banks has not heretofore been subject to
regulatory scrutiny, the affiliation is of no persuasive value
in determining, for the purposes of the Bank Merger Act,
what competitive impact, if any, the proposed transaction
may have. Therefore, in accordance with past agency
practice, the Board of Directors has ignored the affiliation
in its assessment of the proposal.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
Six of the State's 10 largest holding com­
panies operate in the county. In view of the
small relative market shares held by the propo­
nents, and the size and number of competing
banking organizations, there appears to be little
potential for significant competition to develop
between the proponents in the near future.
Based on the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future
Prospects. The considerations relating to finan­
cial and managerial resources have been
satisfactorily resolved, and resultant bank is
anticipated to have favorable future prospects.
Convenience and Needs o f the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent. The considerations of con­
venience and needs of the community to be
served, however, are consistent with approval
of the application.
Available inform ation indicates th a t no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
Based on the foregoing, the Board of Direc­
tors has concluded that approval of the applica­
tion is warranted.

Resources
of dollars)

Burlington County
T rust Company
Moorestown, New
Jersey

Banking offices
in operation
Before

181,983

10

46,333

After

14

4

to merge with

Bank of W est Jersey
Delran Township
(P.O. Delran)

Summary report by Attorney General,
September 13, 1978
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.

97

State nonmember bank with total resources of
$ 1 8 1 ,9 8 3 ,0 0 0 and total IPC deposits of
$147,688,000, has applied, pursuant to Sec­
tion 18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge with Bank of West
Jersey, Delran Township (P.O. Delran), New
Jersey ("Other Bank''), with total resources of
$ 4 6 ,3 3 3 ,0 0 0 and total IPC deposits of
$39,399,000. The banks would merge under
the charter and title of Applicant and the 4
offices of Other Bank would be established as
branches of the resultant bank, which would
commence operations with a total of 14 offices.
C o m p e titio n . E ssentially a corp ora te
reorganization, the proposal would provide a
means whereby Fidelity Union Bancorporation,
Newark, New Jersey, the State's fourth largest
banking organization owning six banking sub­
sidiaries w ith aggregate total deposits of
$ 1 ,637 ,8 75 ,0 00 (6.4 percent of New Jersey's
total deposits), may consolidate its operations
in Burlington County.' Other Bank has been
owned by Fidelity Union Bancorporation since
1971. Applicant was recently acquired (July
1978) by the parent with the approval of the
Board of Governors of the Federal Reserve
System. The proposed merger would not affect
the structure of commercial banking or the con­
centration of banking resources within the rele­
vant market.
The Board of Directors is of the opinion that
the transaction would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for the purposes of this proposal, and the future
prospects of the resultant bank appear favora­
ble.
Convenience and Needs o f the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent. The considerations of con­
venience and needs of the community are con­
sistent with approval of the transaction.
Available inform ation indicates th a t no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

Basis for Corporation approval,
November 30, 1978
Burlington County Trust Company, Moores-


town, New Jersey ("Applicant"), an insured


‘ Fidelity Union Bancorporation figures adjusted to include
July 1978 acquisition of Applicant.

:.v .;

i-'j'.w c ':' :x n ? 0 '-'V nc ^

B nking offi.^s
a
;f: ^0? r
'ai:u,

’ ■ "•'■usc’K:
r1
i

B fore A
e
h

of doHars)

The Bank 8f Trust
i 93,021
Company of Arlington
;
Heights
i
Arlington Heights,
i
Illinois
i
to purchase the assvts and as- i
same *h&. d -^ G 'i't I!s b illie s o f \

IMorth Point State
Bank
Arlington Heights

|

,

The Bank & Tru~t Company oi Arlington
Heights, A r lin g to n Heicnts, Lunois an insured
a.e nonmem^e: bark v». jth total resources o f
0 2 1 ,000, n a s a : f
o j ' s u a n t to Section
J v of the Federal Oecos«i insurance Act, for
,#
1
Corporation's consent to purchase the
assets of and ass.
the,* liability to pay
deposits made m N o rth Point State Bank,
A r^ig to ^ Heights, Illinois, an insured State nonr- v n b e r bank w ith to ta l resources of
V I’),207,000, Incident to the transaction, the
o^’ice of North Point State Bank would
become a facility of The Bank & Trust Company
of Arlington Heights.
As of December 16, 1 978, North Point
State Bank had deposits of approximately
$ 2 0 ,8 0 0 /0 0 0 and operated one office. On
December 16, 1978, the Federal Deposit
Insurance Corporation was appointed as
Receiver of North Point State Bank.
The Board of Directors finds that the
failure of North Point State Bank requires it
to act immediately and thus waives publica­
tion of notice, dispenses with the solicitation
of com petitive reports from other agencies,
and authorizes the transaction to be con­
summated immediately.

£,rter

!

4

8

i
j
]
]
I

i

to merge w ith

The Liberty National
Bank in Ellsw orth
Ellsworth

S e h re :

2 7 ,6 7 3 1

(change title to
Depositors Trust
Company
of Eastern Maine)

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




r: ; ! ? r s)

o fP a p g o r
F h ncor. Paine

\

of'iCiS

'; ................ \G cT .:
^.C

(ir r c u s a n d s < --------------- -—
—
o

Depositor.' Trust
Company

I 29,207 j

Basis for Corrc*"* on
December 1 5 5978

B
j~,k

,

20,771

4
I

:

Summary report by Attorney General,
September 1 3, 1978
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
December 20, 1978
Depositors Trust Company of Bangor,
Bangor, Maine ("Applicant"), an insured State
non member bank w ith total resources of
$ 2 7 ,6 7 3 ,0 0 0 and total IPC deposits of
$21,743,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge w ith The Liberty
National Bank in Ellsworth, Ellsworth, Maine
(“ Other Bank” ), w ith total resources of
$ 2 0 ,7 7 1 ,0 0 0 and total IPC deposits of
$1 7,022,000. These banks would merge under
the charter of Applicant and with the title
"Depositors Trust Company of Eastern Maine."
The four existing offices of Other Bank would
be established as branches of the resultant
bank.
C o m p e titio n . Essentially a corp ora te
reorganization, the proposal would provide a
means by which Depositors Corporation,
Augusta, Maine, a bank holding company, may
consolidate its operations in eastern Maine. The
proponents have been commonly controlled
since 1969. The proposed merger would not
affect the structure of commercial banking or
the concentration of banking resources within
the relevant market.
In view of the foregoing, the Board of Direc­
tors is of the opinion that the proposed merger
would not, in any section of the country, sub­
stantially lessen competition, tend to create a
monopoly, or in any other manner be in restraint
of trade.

BANK ABSCRr

m GNS

APPPOVS

Financial m d MGnage.'ia! Resources, future
Prospects. The proponent?/ financial and
managerial resources are considered adequate
for the purposes of this proposal. The financial
and managerial resources of the resultant bank
would be satisfactory and its future prospects
appear favorable.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent.
Available inform ation indicates tha t no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

Resources
(in thousands
cf dollars)

Depositors Trust Com­
pany of Portland
Portland, Maine
(change title to De­
positors T rust
Company
of Southern Maine)

Banking offices
in operation
Before

26,476

4

17,166

After

2

6

to merge with

Springvale National
Bank
Springvale

i

Summary report by Attorney General,
August 8, 1978
The merging banks are both wholly owned
subsidiaries of the same bank holding company.
As such, their proposed merger is essentially a
corporate reorganization and would have no
effect on competition.
Basis for Corporation approval,
December 20, 1978
Depositors Trust Company of Portland, Port­
land, Maine (“ Applicant” ), an insured State
nonmember bank w ith total resources o f




r ORATION

$ 2 6 ,4 7 3 ,0 0 0 and tola! IPC deposits o f
$22,195,000, has applied, pursuant to Section
* 8*c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's
prior consent to merge with Springvale National
Bank, Sprsngvale, Maine ("Other Bank” ), with
total resources of $17,16 6,00 0 and total IPC
deposits of $14,892,000. The banks would
merge under the charter of Applicant and with
the title "D epo sitors T rust Company o f
Southern Maine." The tw o offices of Other
Bank would become branches of the resultant
bank, which would commence operations with
a total of six offices. Additionally, Applicant
requests the prior approval of the Corporaton
for the resultant bank to exercise trust powers.
Competition. E ssentially a co rp o ra te
reorganization, the proposal would provide a
means w h ere by D e po sito rs C o rp o ra tio n ,
Augusta, Maine, the State's second largest
banking organization owning six banking sub­
sidiaries w ith aggregate total deposits o f
$ 3 58 ,0 00 ,0 00 (15.0 percent of Maine's total
deposits), may consolidate its operations in
southern Maine. Applicant and Other Bank have
been owned by Depositors Corporation since
1972 and 1971, respectively, and their pro­
posed merger would not affect the structure of
commercial banking or the concentration of
banking resources within the relevant market.
The Board of Directors is of the opinion that
the transaction would not, in any section of the
country, substantially lessen competition, tend
to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources; Future
Prospects. The proponents' financial and
managerial resources are considered adequate
for purposes of this proposal, and the future
prospects of the resultant bank appear favora­
ble.
Convenience and Needs of the Community
to be Served. The services to be offered in the
relevant market by the resultant bank would not
differ materially from those presently offered
by each proponent. The considerations of con­
venience and needs of the community are con­
sistent with approval of the transaction.
Available inform ation indicates tha t no
inconsistencies with the purposes of the Com­
munity Reinvestment Act appear to exist.
On the basis of the foregoing information,
the Board of Directors has concluded that
approval of the application is warranted.

100

FEDERAL DEPOSIT INSURANCE CORPORATION

Effective January 1 1977, Fo-'da ''.-rk'nq
statutes were changed to ai!o^ c o jr.f, 'a ; ^
branching. !n response to this chanc;? thrj
following 15 merger applications ~vc;vng
affiliates of the same holding c o »
in
Florida were filed during 1378. Altho-joh n e y
did not involve a "phantom bank," these were
essentially corporate reorganizations having no
effect on competition. In each instance, the
Attorney General's report stated that the pro­
posed transaction would have no effect on
com petition. The Corporation's basis fo r
approval in each case stated that ail factors
required to be considered pertinent to the
application were favorably resolved.
Southeast Everglades Bank o f Fort Lauder­
dale, Fort Lauderdale, Florida (change title to
Southeast Bank o f Brow ard); offices: 1 ;
resources: 57,113 ($000); to merge with
Southeast Bank o f Broward, Fort Lauderdale;
offices: 2; resources: 25,229 ($000); and
Southeast Bank o f Deerfield Beach, Deerfieid
Beach; offices: 2; resources: 91,283 ($000);
and Southeast Bank o f Galt Ocean Mile, Fort
Lauderdale; offices: 1; resources: 3 9 ,2 5 8
($000); and Southeast Bank o f Hollywood
Hills, Hollywood; offices: 1; resources: 72,351
($000); and Southeast Bank o f Miramar,
Miramar; offices: 1; resources: 29,576 ($000).
Approved: January 1 1.
The Lewis State Bank, Tallahassee, Florida;
offices: 3; resources: 72,784 ($000); to merge
with The Gulf National Bank, Tallahassee;
o ffic e s : 1; resources: 1 3 ,6 1 9 ($ 0 0 0 ).
Approved: January 25.
Barnett Bank o f Auburndale, Auburndaie,
Florida (change title to Barnett Bank o f East
Polk County); offices: 1; resources: 9,754
($000); to merge with Barnett Bank o f East
Polk County, National Association, W inter
Haven; offices. 3; resources: 71,209 ($000).
Approved: February 24.
Landmark Bank o f Brevard, Indialantic,
Florida; offices: 1; resources: 1 5,680 ($000);
to merge with Landmark Bank o f Melbourne,
National Association, Melbourne; offices: 2;
resources: 25,059 ($000), Approved: March
14.
F lagship S ta te Bank o f J a c k s o n v ille ,
Jacksonville, Florida (change title to Flagship
Bank o f Jacksonville)', offices: 1; resources:
54,447 ($000); to merge with Flagship State
Bank o f Arlington, Jacksonville; offices: 1;
resources: 1 5,037 ($000); and Flagship State
Bank o f N orth Jacksonville, Jacksonville;
offices: 1; resources; 7,650 ($000); and Flag­
ship State Bank o f South Jacksonville,
Jacksonville; offices. 1; resources: 4 ,9 0 9
($000). Approved: March 14,




Barnett Bank o f Naples, Naples, Florida;
offices: 2 , resources P 0.38/ -$000); to merge
with Barnett Sank o f Cc-iier County, Collier
County (P.O. Naples/, r-.^ o s 1; resources:
22,218 ($000).
*'oe »\iarch 14.
Flagship Bank o f San>
ora. Sanford, Florida
(change title to Flagship Bank o f Seminole)',
offices: 1; resources: 34,643 ($000); to merge
with Flagship U.S. Bank o f Seminole, Sanford;
o ffic e s : 2 ; resources: 2 0 ,1 6 3 ($ 0 0 0 ).
Approved: May 5.
Hernando State Bank, Brooksville, Florida;
offices: 5; resources: 46,855 ($000); to merge
with First American National Bank o f Hernando
County, Hernando County (P.O. Spring Hill);
o ffic e s : 1 ; resources: 1 9 ,5 7 8 ($ 0 0 0 ).
Approved: June 26.
Atlantic Bank o f Springfield, Jacksonville,.
Florida (change titse to A tla n tic Bank o f
Jacksonville)', offices; 3; resources: 101,920
($000); to merge with Atlantic Bank o f West
J a c k s o n v ille , J a c k s o n v ille ; o f f ice s: 2;
resources: 46,454 ($000); and Atlantic Bank
o f Lake Forest, Jacksonville; offices: 1 ;
resources: 43,902 ($000); and Atlantic Bank
o f South Jacksonville, Jacksonville; offices: 1;
resources: 32,773 |$000); and Atlantic Bank
o f Norm andy, Ja ckso n ville ; o ffic e s : 1 ;
resources: 18 ,948 ($000); and A tla n tic
U niversity Bank, Jacksonville; offices: 1 ;
resources: 1 3,308 ($000). Approved: August
11.
Southeast First Bank o f Largo, Largo, Florida
(change title to Southeast Bank o f Pinellas);
offices: 1; resources: 88,931 ($000); to merge
with Southeast National Bank o f Dunedin,
Dunedin; o ffic e s : 1; resources: 6 1 ,8 2 8
($000); and Southeast Bank o f Pinellas Park,
Pinellas Park; offices: 1; resources: 14,239
($000); and Southeast National Bank o f St.
Petersburg, South Pasadena; offices: 1 ;
resources: 43,261 ($000). Approved: Septem­
ber 6.
Southeast Bank o f Titusville, Titusville,
Florida (change title to Southeast Bank o f Bre­
vard): offices: 1; resources: 34,525 ($000); to
merge with Southeast First National Bank o f
Satellite Beach, Satellite Beach: offices: 1;
resources: 27.389 ($000); and Southeast
Bank o f Melbourne, Melbourne; offices: 1;
resources: 19,140 ($000); and Southeast
National Bank o f Cocoa, Cocoa; offices: 1;
resources: 12,288 ($000). Approved: Septem­
ber 6.
The Exchange Bank o f Central Florida,
Haines City, Florida (change title to Exchange
Bank o f Polk County)] offices: 2 ; resources:
1 4 , 9 7 2 ($000); to merge with The Exchange
National Bank o f Winter Haven, Winter Haven;

3 r’t ' v V
o ffic e s : 3; resources: 111..281

- '

{$ 0 00).

Approved: October 3 0 .

Pan American Bank o f /nverrary, Lauderhill,
Florida (change title to Pan American Bank o f
Broward)] offices: 2; resources: 1 9 ,0 4 3
($000); to merge with Pan American Bank o f
Broward County, NationaiAssociation, Oakland
Park; offices: 1; resources: 22,840 ($000).
Approved: November 1 7.
Flagship Bank o f Orlando, Orlando, Florida;




1
O r -’IC-JS, ' . .'i, u i ■ 6 3
’

5 3 ,6 3 c

1C

t

wi-v F-agrJh'p San* of West Or/antio f *
r.
A s i > o r ’c : ; o ‘ : ,

O n an Jo , o ffices

1, res

8,486 ($000). Approved: November 30 ,
Flagship Peoples Bank o f Tallahassee,
Tallahassee, Florida; offices: 2; resources:
2 4 ,7 3 6 ($0 00 ); to merge w ith Flagship
American Bank o f Tallahassee, Tallahassee;
offices: 1; resources: 3,235 ($000). Approved:
November 30.

,
aer transactions

* <- * ■ *

^ ' :
,. * *

4 m
~

a r q . sitio rs of banks v ,f n^ci-ng
^
the following approvals n i 9 / 3 ,r eprh r?
stance, the Attorney General's rep o r ; 4^xec;
that the proposed transaction wouid have re
effect on competition. The Corporation's basis
for approval in each case stated that the pro­
posed transaction would not, per se, change the
com petitive structure of banking, nor affect the
banking services that the (operating) bank has
provided in the p a s t and that all other factors
required to be considered pertinent to the
application w ere favorably resolved.
B l u e Ridge Trust Company, Hancock, M ary­
land, in organization; o ffices: 0 ; resources: 1 20
($ 0 0 0 ); to merge with and change title to T h e
Peoples National Bank o f Hancock, Hancock,
M arylan d ; o ffic e s : 2 ; re so u rc e s: 1 0 ,4 9 3
($ 0 0 0 ). Approved: February 23 .
C a m p Bowie Bank, Fort W orth, T e xas, in

organization; offices: 0; resources: 200
($000); to merge with and change title to
R i d g l e n B a n k , Fort Worth, Texas; offices: 1;
resources: 9 1 ,2 5 2 ($000). Approved: March
29.
E a s t Freeway S t a t e B a n k , Houston, Texas, in
organization; offices: 0; resources: 200
($000); to merge with and change title to F i r s t
S ta te

B a n k

a n d

T ru st

C om p an y

o f

H o u sto n ,

Houston, Texas; offices: 2; resources: 65,71 8
($000). Approved: May 22.
C lift o n
B an k,
Clifton, Texas; o ffices: 1;
resources: 27,526 ($000); to merge with New
C l i f t o n S t a t e B a n k , Clifton, Texas, in organiza­
tion; offices: 0; resources: 50 ($000).
Approved: May 23.
T h e
B r ig h to n
S ta te
B a n k ,
B rig h to n ,
Michigan; offices: 5; resources: 79 ,3 8 7
($0 00 ); to consolidate w ith B S B B a n k ,
Brighton, Michigan, in organization; offices: 0;
resources: 120 ($000). Approved: May 24.
N e w p o rt
B a n k ,
Newport, Michigan, in
organization; offices: 0; resources: 120
($000); to consolidate and change title to T h e
N e w p o rt
S ta te
B a n k
Newport, Michigan;
o ffic e s : 2; resources: 1 2 ,9 6 2 ($ 0 0 0 ).
Approved: July 1 2.
W a l n u t H i l l & G r e e n v i l l e B a n k , Dallas, Texas,
in organization; offices: 0; resources: 200
($000); to merge with and change title to
G r e e n v i l l e A v e n u e B a n k & T r u s t , Dallas, Texas;
o ffic e s : 1; resources: 6 6 ,2 2 2 ($ 0 0 0 ).
Approved: July 1 2.
F ir s t A la b a m a
B a n k
o f C u l l m a n , Cullman,
Alabama, in organization; offices: 0; resources:
100 ($000); to merge with F i r s t S t a t e B a n k o f
C u llm a n ,
A la b a m a ,
In c .,
Cullman, Alabama;
o ffic e s : 2; resources: 1 4 ,8 7 6 ($ 0 0 0 ).
Approved: August 24.
B a n k
o f E a s t L a u d e r d a le ,
R ogersville,
Alabama, in organization; offices: 0; resources:




(
; -*

•

~

' x :/ ""i- rr' ilc K

“ '.v'r'v.c-j

~

'

‘

'<

r , j'J ^

< ■ L r ryif-9/i /, K r .
v

2

rer 3 u r ^ '

>
■
le

l u 338

$ 0 0 0 ’. Approved: August 29.

Columbus Bank and Trust Company, Colum ­
esources: 21 2,031
c ^ S e c o n d M o rtg a g e
C o m p a n y , Columbus, v °or<j<a, in organization;
o ffices: 0 ; resources: . ,*.42 ‘, $ 0 0 0 ). Approved:
August 29.
Commercial Bank & Trust Company, Griffin,
Georgia; offices: 4 ; resources: 93,103 ($000);
to merge w ith CBT-interim,. Inc., G riffin,
Georgia, in organization; offices: 0; resources:
1 ($000). Approved: September 1 3.
Lewisville State B a n k , Lewisville, Texas;
offices: 1; resources: 33,1 18 ($000); to merge
with A/eiv Lewisville State B a n k , Lewisville,
Texas, in organization; offices: 0; resources:
200 ($000). Approved: October 1 2.
N e w B a n k o f F o r t W o r t h , Fort Worth, Texas,
in organization; offices: 0; resources: 200
($000); to merge with and change title to B a n k
o f F o r t W o r t h , Fort Worth, Texas; offices: 1;
resources: 100,31 8 ($000). Approved: Octo­
ber 1 6.
F . S . B , C. S t a t e B a n k , Union Township (P.O.
Morristown), Ohio, in organization: offices: 0 ;
resources: 313 ($000); to merge with and
change title to T h e Eastern O h i o B a n k , Union
Township {P.O. M orristown), Ohio; offices: 1 ;
resources: 4,696 ($000). Approved: October 31.
A l l i e d C h a m p i o n s B a n k , Houston, Texas, in
organization; offices: 0; resources: 100
($000); to merge w ith C h a m p i o n s B a n k ,
Houston, Texas; offices: 1; resources: 58,914
($000). Approved: November 20.
V B
S ta te
B a n k ,
Hartford, Michigan, in
organization; offices: 0; resources: 120
($000); to merge with and change title to V a n
B u r e n S t a t e B a n k , Hartford, Michigan; offices:
2; resources: 21,851 ($000). Approved:
November 28.
9 0 0 C o n g r e s s S t a t e B a n k , Austin, Texas, in
organization; offices: 0; resources: 200
($000); to merge with and change title to T e x a s
S ta te
B a n k ,
A ustin , Texas; o ffic e s : 1 ;
resources: 1 0 4 ,0 3 8 ($ 0 0 0 ). A pproved:
November 29.
M a in
B a n k
o f H o u s to n ,
Houston, Texas;
offices: 1; resources: 68,430 ($000); to merge
with N e w M a i n B a n k o f H o u s t o n , Houston,
Texas, in organization; offices: 0; resources:
211 ($000). Approved: November 29.
bus, Georgia; offices:
($ 0 0 0 ); to merge with •

The

H a rris o n

D e p o s it B a n k

a n d

T ru st

C o m ­

C ynthiana, K entucky; o ffic e s : 1 ;
resources: 13,633 ($000); to merge with H a r ­
r is o n
S ta te
B a n k
C o m p a n y , Cynthiana, Ken­
tucky, in organization; offices: 0; resources: 0.
Approved: November 30.
p a n y ,

BANK ABSORPTIONS DENIED BY THE CORPORATION
Banking offices
in operation

Resources
(in thousands
of dollars)

Franklin Bank and
Trust Company
Franklin, Indiana

After

5

8

69,671

i

to merge w ith

The Edinburg State
Bank
Edinburg

Before

18,674

3

Summary report by Attorney General,
March 20, 1978
All of the proponents' offices are located in
Johnson County. Their closest offices, Appli­
cant's main o ffice in Franklin (population
11,477} and Bank's branch office in Franklin,
are about 2 miles apart. Applicant's Franklin
branch office is about 4 miles from Bank's
Franklin branch. The only other bank in Franklin
has three offices. In addition, Applicant's
Whiteland branch office is located about 2
miles from Bank's New Whiteland branch.
Bank's main office is located about 12 miles
from A pplicant's nearest branch. It thus
appears that the proposed acquisition would
eliminate a significant amount of existing direct
competition.
Selection of an appropriate geographic
market within which to assess the effect of the
proposed merger on concentration in commer­
cial banking is difficult because of the proximity
to Johnson County of the Indianapolis suburbs
to the north and Columbus to the south. Data
presently available to the department is insuffi­
cient to permit a precise calculation of a rele­
vant geographic market. We note, however,
that there are 5 banking institutions, accounting
for a total of 21 offices, in Johnson County. As
of June 30, 1977, Applicant had approximately
26 percent of the total deposits held by com­
mercial banks in the county, and Bank had 7
percent. The largest bank in the county,
National Bank of Greenwood, had 33 percent of
such deposits; the other two banks accounted
for 25 percent and 8 percent. If the proposed
merger is consummated, the resulting bank
would have about 33 percent of the total com­
mercial bank deposits in the county, and the
three-firm concentration ratio in the county
would increase from approximately 84 percent
to 91 percent.
Basis for Corporation denial,
May 19, 1978
Franklin Bank and Trust Company, Franklin,
Indiana ("Applicant” ), an insured State non­




m em ber b a n k w ith to ta l resources o f
$ 6 9 ,6 7 1 ,0 0 0 and total IPC deposits of
$52,390,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit insurance A ct, for the FDIC's consent
to merge, under its charter and title, with The
Edinburg State Bank, Edinburg, Indiana ("State
Bank"), an insured State nonmember bank with
total resources of $18,67 4,00 0 and total IPC
deposits of $1 2,593,000. Incident to the trans­
action, Applicant would establish the three
offices of State Bank as branches of the result­
ant bank, increasing to eight the number of
offices operated. Consent to issue $2,000,000
in subordinated capital notes as an addition to
the bank's capital structure and advance con­
sent to their mandatory retirement is also
sought.
Competition. Both proponents are headquar­
tered in Johnson County, which has a primarily
rural economy and is located in south-central
Indiana (1970 population 61,138). The city of
Franklin (1970 population 11,477), which is
located near the geographic center of Johnson
County, serves as the county seat and as a prin­
cipal commercial center. Applicant operates its
head office and a branch in the city of Franklin
and one branch each in Whiteland (5 road-miles
north), Greenwood (10 road-miles north), and
Ninevah (12 road-miles south). State Bank,
headquartered in Edinburg (1970 population
4,456), operates branches at Franklin (10 roadmiles northwest) and at New Whiteland (16
road-miles northwest). Due to its head office
location in the extreme southeastern corner of
Johnson County, State Bank is seen as compet­
ing in a market that includes much of Johnson
County and adjoining portions of Shelby and
Bartholomew Counties.
If the transaction were approved, the result­
ant bank would be competing in an area which
would include all of Johnson County and
adjoining portions of Shelby and Bartholomew
Counties, where 8 commercial banks operate a
total of 37 offices. In share of total deposits
held, Applicant and State Bank rank as the
market's third and seventh largest banks,
respectively. The resultant bank would hold
1 7.7 percent of these deposits and rank as the
third largest of the banks. This would reflect an
increase in the concentration of deposits, with
the three largest banks holding 69.1 percent.
Johnson County, which is the legal branch­
ing and merging area for both banks involved in
this proposal, contains 5 commercial banks
operating 22 offices. Subsequent to the trans­
action, the resultant bank would operate eight
of these offices and hold 33.0 percent of the
county's commercial bank deposits, making it

104

FEDERAL DEPOSIT INSURANCE CORPORATION

the second largest institution. This would
increase the level of concentration of commer­
cial bank deposits with the tw o largest banks
holding 66.4 percent of the county's deposits
and the three largest holding 91.6 percent of
the deposits.
The consummation of this transaction would
preclude future competition between the pro­
ponents in a number of areas in Johnson Coun­
ty. As both institutions have demonstrated their
willingness and ability to establish de novo
branches in portions of the county removed
from their headquarters location, there is no
evidence to suggest that, in the absence of this
proposal, additional de novo expansion activity
would not be conducted by either or both
institutions. The consummation of this merger
would forever foreclose this potential for
increased competition.
The proposed transaction, if consummated,
would (1) eliminate significant existing competi­
tion between the proponents, (2) increase sub­
stantially the deposit concentration in both the
legal branching area and the relevant market,
(3) reduce the number o f banking alternatives
available to residents of the market area, and (4)
eliminate the potential for increased future
competition between the tw o banks. On the
basis of the foregoing, and in consideration of
the standards established by the Supreme
Court in cases involving mergers of banks
which compete in the same local market, the
Board of Directors is of the opinion that the
proposed merger would "substantially lessen
competition" within the relevant area.
Financial and Managerial Resources; Future
P rospects. The fin a n c ia l and m anagerial
resources of the proponents are considered
satisfactory, and each has favorable future
prospects as an independent institution.
Convenience and Needs o f the Community
to be Served. There is little evidence to suggest
that, subsequent to the transaction, any signifi­
cant change in the type of banking services
would result. No new services would be offered
to the community. Inasmuch as the proposed
transaction would have a substantial anticom­
petitive impact, this effect does not appear to
be outweighed by other considerations of pub­
lic interest.
The Board of Directors, accordingly, believes
that the application should be and it hereby is,
denied.
Statement upon reconsideration,
August 1 1 ,1 9 7 8
On May 19, 1978, Franklin Bank and Trust
Company, Franklin, Indiana ("Applicant"), an
insured State nonmember bank, was denied the
Corporation's
prior approval to merge with The



Edinburg State Bank, Edinburg, Indiana ("State
Bank"), an insured State nonmember bank. The
proponents subsequently petitioned the Cor­
poration to reconsider its denial. The FDIC
Board of Directors, having reconsidered its ear­
lier decision, affirms its denial with the follow ­
ing statement.
The Board of Directors concluded in its
original decision that the proposed merger, if
consummated, would (1) eliminate significant
existing competition between the proponents,
(2) increase substantially the deposit con­
centration in both the legal branching area and
the relevant market, (3) reduce the number of
banking alternatives available to residents of the
market area, and (4) eliminate the potential for
increased future competition between the two
applicant banks. On the basis of the foregoing,
the Board of Directors was of the opinion that
the proposed merger would "su bstan tia lly
lessen competition” within the relevant banking
market.
In seeking reconsideration of the Corpora­
tion's previous denial, the proponents have pre­
sented a number of facts, figures, and exhibits
to support their contention that Marion County
and the city of Indianapolis should be included
in the delineation of the relevant market, thus
rendering the market shares held by the propo­
nents to be nominal. In such an enlarged market,
the existing and potential competition between
the proponents would appear less substantial,
and could possibly be termed as insignificant.
The city of Greenwood and its environs are
shown to be the principal commercial center of
Johnson County, containing a major portion of
the population and recent commercial develop­
ment. A significant portion of Johnson Coun­
ty's work force was shown as commuting to
Marion County for employment. The propo­
nents indicate that Johnson County is intricate­
ly tied economically with neighboring Marion
County and in particular to the city of
Indianapolis. It is, therefore, advanced that in
light of a common economic tie, intense com­
petition exists with larger Indianapolis-based
banks, some of which have branches at or near
the Johnson-Marion County boundary.
Greenwood (1970 population 11,408) is
located in the extreme northern portion of
Johnson County, adjoining the Marion County
boundary, approximately 10 road-miles north­
west o f Franklin (1970 population 11,477) and
approximately 20 road-miles northwest of
Edinburg (1970 population of 4,456). Green­
wood and its environs have grown at a more
rapid pace than other communities in Johnson
County and have experienced commercial
development that could be characterized as
suburban growth emanating from the city of
Indianapolis. Applicant maintains only a single

105

BANK ABSORPTIONS DENIED BY THE CORPORATION
branch o ffice in this northern portion of
Johnson County, at Greenwood (established in
July, 1974). This office holds IPC deposits of
$1,054,000, or a mere 2.0 percent of Appli­
cant's total IPC deposit base of $52,390,000.
State Bank is not represented in this portion of
the county.
Four of Applicant's five offices, providing 98
percent of its IPC deposit base, and all offices
of State Bank are located in the central and
southeastern portion of Johnson County,
where the economic characteristics are more
agriculturally oriented than in the northern sec­
tion. While a number of offices of Indianapolisbased banks are located in the proximity of the
Johnson County line, these institutions are
restricted by State statutes from de novo
branching activity outside their head office
county. Neither Applicant nor State Bank are
engaged, to any significant degree, in intense
"head-on" competition with offices of these
larger Indianapolis-based banks and no infor­
mation has been presented that would indicate
that either proponent derives any sizable
volume of business from any portion of Marion
County.
In the central and southeastern portion of
Johnson County, seven of the proponents’
eight offices are located in close proximity. At
Whiteland and New Whiteland, the proponents'
offices are located only 1 mile apart with no
intervening banking offices present. State
Bank's Franklin branch is located 1.5 miles from
the head office of Applicant, again with no
intervening banking offices present. The propo­
nents' head offices are located only 10 roadmiles distant w ith tw o major highway arteries
providing easy access and permitting significant
interaction between the tw o communities.
In light of the foregoing, the FDIC adheres to
its original conclusion and finds nothing in the
record to cast doubt on the initial determination
that the proposed transaction would result in
substantially anticom petitive effects. The
FDIC's Board of Directors again concludes that
approval of the proposed merger of Franklin
Bank and Trust Company and The Edinburg
State Bank is not warranted and should be
denied.




Resources
of dollars)

S outhw est M ississippi
Bank
Magnolia, Mississippi
(change title to First
Bank of Southwest
Mississippi)

Banking offices
in operation
Before

27,239

3

33,920

After

7

4

to consolidate with

Bank of McComb
McComb

Summary report by Attorney General,
May 18, 1978
The appropriate area within which to assess
the competitive effects of the proposed trans­
action is Pike County where all the offices of
Applicant and Bank are located.
The head offices of the two banks are 10
miles apart. Branches are as close as 5 miles.
W ithin a distance of 13 miles covering four
communities are six of the banks' seven
offices; the seventh is in Osyka, 18 miles south
of Magnolia. These are the only banking com­
munities in the county.
The county's population dropped from
35,000 in 1960 to 31,800 in 1970. Supple­
mental information reports the 1975 popula­
tion as 34,000. Two forecasts have been made
jointly by U.S. Departments of Agriculture and
Commerce. One in 1972 projected a gain to
about 40 ,000 in 2020, and one in 1976 pro­
jected a loss to about 31,700 in 2020. Per
capita annual income in Pike County of $2,775
is more than 10 percent below the statewide
figure of $3,098, itself the lowest in the nation.
The county does not appear to be a good
prospect for new bank entry.
Bank is the second largest in deposits in the
county with 24 percent and Applicant is tied for
third w ith 19 percent. Deposit Guaranty
National Bank, the State's largest bank, oper­
ates five offices in Pike County and First
National Bank of Jackson, the State's second
largest, operates three offices in the county. All
these offices are in McComb. Deposit Guaranty
is the largest in the county, with 38 percent of
deposits, and First National of Jackson has 19
percent of county deposits; thus, the State's
tw o largest banks have 57 percent of county
deposits. First National also has the closest
branches in adjoining counties, 85 percent of
deposits in the county to the east and 100 per­
cent of deposits in the county to the west of
Pike County.
The application lists three Brookhaven banks
and one in Tylertown as competitors, as well as
two banks in Louisiana. Brookhaven is more

DEPOSIT |NSoPAN~F C

t!

2 7 miles no; lh o f McConrb Tyleaov\n, 2 0

i v e s e a s t is /vnere Pr s t Nation??: of Jackso n
h a s 8 5 p e rc e n t of c o u n ty d e p o s its . A
Brookhaven bank has a branch in Bog tie Chitto
about 2 0 miles north of McComb. Th is may be
an alternative for custom ers roughly m idway
between M cCom b and Bogue Chitto but it is
hardly a realistic alternative for the bulk of the
residents of the McComb-Magnolia area. The
other banks are even farther aw ay. None of
these banks are in Pike County.

The application itseif estimates that at least
1 5 percent of customers have accounts at both
banks and that they account for at least 1 5 per­
cent o f IPC deposits. This means th a t
customers having deposits of about $1 7-1 8
million out of total IPC deposits of $ 1 1 8 million
at both banks would lose the benefit of competition between the banks which presumably
led them to open these accounts.
Accordingly, it appears that the proposed
transaction is a merger of two direct competi­
tors with 43 percent of deposits in an area now
served by four banks and that it would eliminate
a significant amount of existing competition
without any likelihood of new entry. Consum­
mation of the proposed merger would change
market shares in term s of total deposits from
38 percent 24 percent, 19 percent, and 19
percent to 43 percent 38 percent and 1 9 per­
cent.
Overall, the proposed transaction wouid
have a significant adverse effect upon competi­
tion in commercial banking in Pike County.
Basis for Corporation denial,
May 19, 1978
Southw est Mississippi Bank, Magnolia,
Mississippi {"Southwest Bank"), an insured
State nonmember bank with total resources of
$ 2 7 ,2 3 9 ,0 0 0 and total IPC deposits of
$21,494,000, has applied, pursuant to Section
18(c) and other provisions of the Federal
Deposit Insurance A c t for the FDIC's consent
to consolidate under its charter with Bank of
M cCom b, M cCom b, M ississippi, an insured
State nonmember bank with total resources of
$ 3 3 ,9 2 0 ,0 0 0 and total IPC deposits of
$ 2 7 ,1 0 2 ,0 0 0 . Sou thw est Bank seeks to estab­
lish the four o ffices of Bank of M cCom b as
branches of the resultant bank, with the title
"First Bank of So u thw est M ississippi,” and to
redesignate its main office site to the present
main office site of Bank of M cCom b. The result­
ant bank would operate seven offices.
Com petition, S o u th w e st Bank operates
branches at Fernwood (3 road-miies north of
Magnolia) and at Osyka (14 road-miies south of
Magnolia). Bank of McComb operates three
o ffices in the city of M cCom b and a branch at
Summit (5 road-miies north of McComb).




ON'

These o ffices of the proponents are in Pike
County.

Pike County (1970 population 31,756) is
located in the southwestern portion of the State
adjoining the Louisiana boundary. The economy
is chiefly predicated upon agriculture; however,
some industrial firms have located along inter­
state Route 55 and U.S. Route 51 (running
north-south) in the McComb area. While Mag­
nolia (1970 population 1,913) is the county
seat, the city of McComb (1970 population
11,969) serves as the county's chief commer­
cial center. The economic picture of this area
can best be described as static with moderate
declines in both population and agricultural
activity in evidence. The effective median
household buying level of $8,441 (1976) is
significantly lower than the state figure as well
as substantially below the national average.
The two banks are headquartered in com­
munities located less than 8 road-miies apart,
connected by interstate Route 55 and U.S.
Route 5 1 , with the Fernwood branch of South­
west Bank located approximately 4 road-miies
from the nearest office of Bank of McComb and
within 6 miles of three of its offices. The Inters­
tate Route 55 corridor provides residents easy
access throughout the developed portion of the
county. Additionally, Southwest Bank, with a
branch at Osyka, located in the southern portion
of the county only 6 road-miies from Kent­
wood, Louisiana, is regarded as competing not
only in Pike County, but also in adjoining por­
tions of Tangipahoa Parish, Louisiana. Due to
the ease of access and the proximity of five of
the proponents' seven offices, the two banks
are in direct, significant competition throughout
Pike County and approval of the proposed con­
solidation would eliminate this competition.
This market area contains 6 commercial
banks operating a total of 1 7 offices. The pro­
ponents rank as the second and third largest
banks in the market in total deposits held, with
Bank of McComb holding a 2 1 ,6-percent
market share and Southwest Bank a 1 7.3-per­
cent market share. The resultant bank would
hold 38.9 percent of the market's total com­
mercial bank deposits and rank as the area's
largest bank. This would significantly increase
deposit concentration with the two largest
banks, subsequent to the transaction, holding
73.2 percent of the market's deposits. In addi­
tion, the proposal would reduce from tw o to
one, the number of banks headquartered in Pike
County, eliminating a viable, local alternative to
the Jackson-based banks in the market as a
source of commercial banking services.
Under Mississippi statutes, both proponents
may branch de novo throughout much of Pike
County and other areas within a 100-miie
radius. The Bank of McComb and Southwest

” AMi;

nv;

'Ue wrl- cs latvshf.n i-'bDtbfK"i< .a t>
t'.-1 -r!-£ " C-I • '<* '’0V 0’ a"‘C~. a
5nC
•
'
-1
‘ rCoi-'cBC

Ban*

ih e m an ag sn a ' <nd tsnan c’a, re so u rc e s to
j
engage in su ch co ntinued exp an sio n . It
therefore fo llow s that there is the potential for
increased future competition between the pro­
ponents, and that this potential competition
would ba eliminated by consumm ation of this
transaction.
The proposed consolidation of these two
banks would (1) eliminate substantial existing
competition, (2) increase significantly the level
of deposit concentration in the local m arket (3)
reduce the number of alternative sources of
com m ercial banking services in the market,
eliminating one of the tw o locally based banks,
and (4) eliminate the potential for increased
future competition between the proponents. On
the basis of the foregoing, the Board of Direc­
tors is of the opinion that the proposed tran sac­
tion would "substantially lessen com petition”
within the relevant area.

Financial and Managerial' Resources; Future
Prospects. T h e f in a n c ia l and m a n a g e ria l
resources of the applying banks are sa tisfa c ­
tory, and each has favorable future prospects.
The future prospects of the resultant bank
would also be favorable.

Convenience and Needs o f the Community
to be Served. W hile the proponents point out
that certain econom ies of scale and resultant
co st savings would result in the combined
institution and hold out the prospect of a possi­
ble increase in trust activities, it is feit that no
significant change in the type, level, or pricing
of present services would result from the pro­
posed consolidation. Moreover, approval would
result in a lessening of the com m ercial banking
alternatives available in this m arket
The Board of Directors, accordingly, believes
that the application should be, and hereby is,
denied.

T CO
t*P

R ^ A 'f C v

T hc board c f D ire cto rs concluded in its
o r ig r iy ’ d e cisio n th at the proposed conso l'd aho n ;f consummated w o u ld , (1) elim i­
nate su b sta n tia l existin g co m p etitio n , (2)
increase significantly the level of deposit
c o n cen tratio n in the local m arket, (3) reduce
the num ber of alte rn a tive so u rc e s of c o m ­
m ercial banking s e rv ic e s in the m arket,
eliminating one of the tw o locally based
b a n ks, and (4) elim inate the potential fo r
in cre ase d fu tu re co m p etitio n betw een the
p ropon ents. On the b a sis of the fo reg o ing ,
the Board of D ire cto rs w a s of the opinion
th at the proposed tra n sa c tio n w ould “ su b ­
s ta n tia lly lessen c o m p e titio n " w ith in the
relevan t banking m arket.
in seekin g reco n sid era tio n of the C o rp o ra ­
tio n 's p revio us denial, the proponents re ite r­
ated th at ih e b an ks operate in se p arate
m ark ets (northern and so u thern se ctio n s of

Pike County) and, therefore, are not in direct
co m p etitio n. S u c h an argum ent had been
p revio u sly co n sid ered by the Board o f Direc­
to rs w h ic h found th at “ Due to the ease of
a c c e s s and the p ro xim ity of five of the pro­
pon ents' seven offices, the tw o banks are in

direct, significant com petition . . . and
approval o f the proposed co n so lid a tio n
would eliminate this co m p etition ." As no
new fa c ts or inform ation which would cast
doubt upon the initial determination tha t the
proposed transaction would result in sub­
stantially anticom petitive effects have been
presented, the FDIC's Board of Directors
again concludes that approval of the pro­
posed consolidation of the Bank of McComb
w ith S outhw est Mississippi Bank is not w a r­
ranted and should be denied.

Statem ent upon reconsideration,
August 2, 1 3 7 8
On M ay 1 9 , 1 9 7 8 , S o u th w e st M ississip p i
B an k, M agnolia, M ississip p i, an insured S ta te
nonm em ber bank w ith total- re so u rc e s of
$ 2 7 ,2 3 9 ,0 0 0 and toca. iPG d e p o sits of
$ 2 1 ,4 9 4 ,0 0 0 , w a j deMea ihe C o rp o ra tio n 's
prior ap pro val to consolidate w ith Ban k of
McComb, McComr) ‘^ s ^ s v p p i, an insured
S ta te nonm em ber bafsK vv tr iotal re so u rc e s
of $ 3 3 ,9 2 0 ,0 0 0 and total IPC d e p o sits of
$ 2 7 ,1 0 2 ,0 0 0 . Southwest M.ssissippi Bank
and Bank of McComb subsequently p e ti­
tioned the C o rp o ratio n tc re co n sid e r its
d e n ia l T h e F D IC 's Board of D ire c to rs, having
reco n sid ere d its earlier d e cisio n , a ffirm s its
denial w ith the fo llo w in g statem e n t.




107

Resources
(in thousands
of dollars)

7 8 0 ,3 1 5
F ir s t P e o p les B an k
of N e w J e r s e y
Westmont, New Jersey

Banking offices
in operation
Before

After

46

51

to acquire the assets and as­
sume the deposit lia b ilitie s o f

T h e M ainland Bank

3 5 ,8 8 4

5

Linwood
Sum m ary report by Attorney General,
May 2, 1973
W e have reviewed this proposed transaction
and conclude that it would not have a substan­
tial competitive impact.

108

1 T : 0 V 1 INSURANCE CORPORA HON

Bank. Peoples Bank's nearest offices bound the
m a rk e t o n th e n o r th a n d to the s o u th . It h a s one

Basis for Corporation denial
October 5, 1978
Pursuant to Section 18(c) and other provi­
sions of the Federal Deposit insurance A c t an
application has been filed on behalf of First Peo­
ples Bank of New Jersey, Westmont, New
Jersey ("Peoples Bank” ), an insured State non­
m em ber bank w ith to ta l resources of
$ 7 80 ,3 15 ,-0 00 and total SPC deposits of
$590,467,000, for the Corporation's prior
consent to acquire the assets of and assume
the liability to pay deposits made in The Main­
land Bank, Linwood, New Jersey, also an
insured State nonmember bank,, with total
resources o* $3 5,88 *- 0 0 C and total IPC
deposits of $28,016,000 The five offices of
The M ah ^n a Bank wo ’u he established as
branches of Peoples B t k
.=
Peoples Bank was chartered in 1921 and
operated as a national bank until March 21,
1978, when it withdrew from the Federal
Reserve System and converted into a Statechartered insured nonmember bank, it presently
operates 4 6 offices in 8 counties of southern
New Jersey and has received the necessary
regulatory authority approvals to establish 2
additional de novo branch offices. Peoples Bank
has experienced rapid expansion in the last
decade as a result of seven merger transactions
since late 1 969,
The instant expansion proposal to acquire
The Mainland Bank was submitted in substan­
tially the same form to the Office of the Comp­
troller of the Currency r '0 C r , l in 1977 when
Peoples Sank was urde- ^hat agency's jurisdic­
tion Tha^ proposal
de ‘ied on December 1,
1977, when the OCC found that Peoples
B?nx's financial and managerial resources were
*r..-deq>
jcKe 10 support additional expansion
pMns. «i$ cnroobec.
Como-? ‘-O'. Tne le v a n t market in which to
assess *h '
impact of the proposed
tr-jMsactuon is regarded as the trade area pres­
e t : * s-Wrbc
" :e Mainland Bank which
ir-oludes ir.e e i t^f portion of Atlantic County,
New Jersev
j ’ ‘mg those communities
lo^at^d c n th t
is^nds w hirh ?re
,
V r
r- r-gp
\}y ^ r *Jf v
i'b
n
yt Kvers r n j ,nief i ^
l »r r .a .c J
z. p- s i p a t e a ^oL, of j.C ~ f Vr _ ~ f sa
r 1

'.v

, « x ^ d n as
\

t» f G* *i *

^ s Tr

a

1

' * rj
>

ef r - •> T

L ~ ' (:ni< r :r v >

-t-co ,

3

*I o

J

\~rq c

*
hut T* r -vKPt <-na
- sc**** • ~V
s n t iier t: _n t r y
2 | crt
he'r ) r
X

-

\

*-

,if

R j,*,r " f S c

t; -

8fS0y', .. *
t

"i n' ■ « 'I
'

5

6-f jt&S

, •' 5 '< ^

Peoples Bank is not represented in the rele­
vant gecgraomc market and is not considered
to be
r<r~oi ?-repetition with The Mainland




o f f ic e

at

H a m m o n to n ,

in

A tla n tic

C o u n ty ,

a p p r o x im a te ly 1 3 m ile s n o r th o f T h e M a in la n d
B a n k 's W e y m o u t h B ra n c h . Its c lo s e s t o ffic e s

north of the market are 7 miles distant from
T h e M a in la n d B a n k 's o ffic e s , but a re lo c a te d in
a n o th e r c o u n ty . T o th e s o u th , P e o p le s B a n k 's
n e a re s t o ffic e s a re lo c a te d in C a p e M a y C o u n ty ,
a p p r o x im a te ly 1 2 m ile s d is ta n t.
N e w J e r s e y s ta tu te s p e r m it s ta te w id e d e
n o v o branching activity, s u b je c t to c e rta in h o m e
o f f ic e p r o t e c tio n p ro v is io n s . T h e a d v e n t o f
le g a liz e d c a s in o g a m b lin g in n e a rb y Atlantic
C ity a n d th e p o te n tia l e f fe c ts o f o ff - s h o r e o il
e x p lo r a tio n a re a n tic ip a te d to h a v e a fa v o r a b le
e c o n o m ic im p a c t throughout m u c h o f th e s e r v ­
ice area o f T h e M a in la n d B a n k. T h is a re a is
re g a rd e d as a p rim e p o te n tia l m a r k e t f o r d e
novo e x p a n s io n n o t o n ly b y P e o p le s B a n k , b u t
a ls o b y a n u m b e r o f o th e r c o m m e r c ia l b a n k in g
o r g a n iz a tio n s in th e S ta te . T h e number o f

potential e n tr a n ts to th e m a r k e t s e e m s to
a s s u re th e c o n tin u a tio n o f a c o m p e titiv e b a n k ­
in g c lim a te , re g a rd le s s o f th e c o n s id e r a tio n s o f
th e fin a n c ia l a n d m a n a g e ria l re s o u rc e s o f th e
p r o p o n e n ts in v o lv e d in th e p r o p o s e d tr a n s a c ­
tio n . T h e p o te n tia l f o r fu tu r e c o m p e t it io n b e ­
tw e e n th e p ro p o n e n ts , w h ic h w o u ld be fo r e ­
c lo s e d b y th e p ro p o s e d a cqu isition ., is n o t v ie w e d
as h a v in g a s ig n ific a n t a d v e rs e im p a c t.
U n d e r th e s e c irc u m s ta n c e s , th e B o a rd o f
D ire c to rs is o f th e o p in io n th a t th e p r o p o s e d
tr a n s a c tio n w o u ld n o t in a n y s e c tio n o f th e
c o u n tr y , s u b s ta n tia lly le s s e n c o m p e titio n , te n d

to create a monopoly, or in any other manner be
in r e s tr a in t o f tra d e .
F i n a n c ia l

and

M a n a g e ria l

Resources;

F u tu re

Prospects.

T h e M a in la n d B a n k 's fin a n c ia l a n d
m a n a g e ria l re s o u rc e s a re a t unacceptable le v e ls

effectively c e a s e d to fu n c tio n
as a viable competitor in the market. Peoples
Bank has undergone extensive e xp ansion in
recent years, which has placed a considerable
a n d th e b a n k h a s

s tr a in

upon

its

fin a n c ia l

re s o u rc e s . C a p ita ! fu n d s

and

m a n a g e r ia l

h a v e fa ile d

to

keep

p a c e w it h th e ra p id a s s e t a n d d e p o s it g r o w th .
P e o p le s B a n k
h a ve arisen ft or

ro t resolved

p r o b le m s th a t

fts p !o r a c q u is itio n s and has
<Hdt it is p r e s e n tly c a p a b le

fa i e d 13 dem, r,?
of 3 '
»
4
i,«sir on. The Coroor^tion is
of .iy ,p r on i h j j tne proposeo tr a n s a c tio n
wo . '* serve
o ’ute th e fin a n cia l and
r rp n a r je n a l
w r u Ct p ^ e ^ e

4o

,,_s o f P e o p le ^ B a n k and
De a substan sal a d d itio n a l

;;u rd<*n ad* ers«h/ a ffe c tin g
o r ;,5pc cts o f "'-e 'isulting bank.
'c

er>'f}

the

fu tu re

N e e d s o f th e C o m m u n ity

Served The Mainland Bank's weakened
fin a n c ia l a rid managerial re s o u rc e s h a v e p r e c lu d ­
ed it fro m e ffe c tiv e ly com p e tin g in the m arket
to b e

• '- - .

.1 u the p'eposes
i)oscio'e s^ p is

1

vwuid c^'fer ~
n
s to r in g fui! c e rv ix corn-

meiCJSi b d tiK ii^ ^ervicas 3' m e c^.ice s u- T *e

Mainland 8a .k vtfhile such considerations relat­
ing to the convenience and needs of the com­
munity to be served add some weight in favor
of approval of the proposed transaction, the
additional services to be provided by Peoples




^
i

i*

J ‘

. J

' ,

'

:v;‘~-b0! c* com peting
:u

com,' ,..n r / v ou lu

! - TL-! ' ^

£

The ove,/"I
ly

'.-uv

weigh the negative aspects inherent in the pro­
posal,
Based on the foregoing, the Board of Direc­
tors concludes that approval of the application
is not warranted.










LEGISLATION- 1 9 7 8
In te rn a tio n a l B anking A c t, The
international Banking Act of 1978,
Public Law 9 5 -3 69 , provides for the
Federal regulation of foreign banks in
domestic financial markets Specifical­
ly, it provides foreign banks with the
option of establishing a Federal branch,
with the approval of the Office of the
Comptroller of the Currency, in any
State where the establishment of a
branch or agency is not prohibited by
State law and where the bank does not
p re s e n tly have S ta te -c h a p te re d
branches or agencies. This act also
provides for interstate branching by
foreign banks, after the foreign bank
has designated a home State, if such
branching is in compliance with State
law and deposits in all States other
than the home State are related to
international transactions or foreign
a c tiv itie s . A g r a n d fa th e r c la u s e
exempts branches that were estab­
lished or applied for by July 2.7, 1978.
This act provides fo r insurance
coverag e o f ce rta in d e p o s its in
domestic branches of foreign banks It
mandates Federal deposH insurance if
such branches accept deposits of
$ 1 0 0 ,0 0 0 or less, unless the branch is
determ ined n o t to be engaged in
domestic retai! deposit activities. Other
branches may obtain deposit insurance
on an optional basis.
The act further subjects foreign
banks w ith dom estic branches to
Federal Reserve reserve requirements
and to provisions In the Bank Holding
Company Act of 1956. Additionally, it
amends the Edge Act by eliminating
provisions which discriminated against
foreign banks and by deleting the
s ta tu to ry restriction on leveraging
equity capital.
The act also requires the FDiC to
participate in the preparation of reports
to Congress relating to the treatment
of United States banks in foreign coun­



tries and an evaluation of the McFadden A ct restrictions on branching by
national banks.
Financial Institution s Regulatory
and Interest Rate Control A ct, The
Financial Institutions Regulatory and
Interest Rate Control A ct (FIRIRCA),
Public Law 9 5 -630, is a comprehen­
sive package of legislation affecting a
number of areas relating to bank super­
vision. It expands the administrative
enforcement powers of the financial
regulatory agencies by authorizing
them to issue cease-and-desist orders
against directors and officers of finan­
cial institutions and to impose civil
money penalties for violations of law or
final cease-and-desist orders. It also
permits such agencies to remove direc­
tors and officers who threaten the
soundness of a financial institution.
The act imposes additional restrictions
on lending to bank insiders and to
insiders of correspondent banks. In
addition, prohibitions -are placed on cer­
ta in in te rlo c k in g d ire c to ra te and
em ploym ent relationships between
financial institutions.
The act gives financial regulatory
agencies the authority to disapprove
changes in control of financial institu­
tions. Furthermore, the FDIC is given
express authority over the establish­
m e n t and o p e ra tio n o f fo re ig n
branches and the acquisition of the
shares of foreign banks by State non­
member insured banks. This authority
is similar to that exercised by the
Federal Reserve with respect to foreign
branches and foreign bank acquisitions
of member banks.
This act also establishes the right of
privacy fo r custom ers o f financial
institutions, authorizes Federal charters
for mutual savings banks, and raises
the deposit insurance limit on Individual
Retirement Accounts (IRA) and Keogh
accounts from $ 4 0 ,0 0 0 to $100,0 00.
Moreover, this act creates a Federal
F inancial In s titu tio n s E xam ination

FEDERAL DEPOSIT INSURANCE CORPORATION

Council. The council consists of the
Chairman of the FDIC, the Comptroller
of the Currency, a Governor of the
Board of Governors of the Federal
Reserve Board, the Chairman of the
Federal Home Loan Bank Board, and
the Chairman of the National Credit
Union Administration Board. The pri­
mary function of this council is to
establish uniform examination stand­
ards for financial institutions. Public
Law 9 5 -6 3 0 also requires banks to dis­
close material facts through annual
reports to the appropriate Federal
banking agency.
This act extends to December 15,
1980, and gives the Federal financial
regulatory agencies the authority to
establish ceilings on interest rates paid
by financial institutions on time and
s a v in g s d e p o s its . It e lim in a te s ,
however, the interest rate differential
between commercial banks and thrifts
institutions on savings deposits or
a cco u n ts fro m w h ic h a u to m a tic
transfers may be made, pursuant to a
prearrange d agreem ent, to cove r
checks drawn by the depositor. The act
also authorizes NOW (negotiable order
of withdrawal) accounts in New York. It
contains other provisions a ffe ctin g
credit unions and savings and loan
associations, extending the ExportImport Bank for 5 years, and establish­
ing c e rta in c o n s u m e r - p r o te c tio n
safeguards in the electronic funds
transfer area.
Federal B anking A ge ncy A u d it
Act. The Federal Banking Agency Audit
Act, Public Law 95-320, authorizes the
General Accounting Office to conduct
periodic performance audits of the
FDIC, the Federal Reserve System, and
the Office of the Comptroller of the
Currency. Prior to the enactment of this
act, these three financial regulatory
agencies were not subject to such GAO
audits, although the FDIC has been
subject to GAO audits of its financial
operations for the past 32 years.



Stil! exempt from this audit authority
are transactions conducted by or on
behalf of a foreign bank or government
or an intematonal financing organiza­
tion, m atters relating to monetary
policy, and transactions by the Federal
Open Market Committee.
Housing and Com m unity D evelop­
m ent Am endm ents. Title VI of the
Housing and Community Development
Amendments of 1978, Public Law 95557, established a National Neighbor­
hood Reinvestment Corporation. Its
board of directors consists of the
Chairman of the FDIC, the Chairman of
the Federal Home Loan Bank Board, a
member of the Board of Governors of
the Federal Reserve System, the
Comptroller of the Currency, and the
Chairman of the National Credit Union
Administration Board. The Neighbor­
hood Reinvestment Corporation was
created for the purpose of promoting
reinvestment in older neighborhoods
through the efforts of local financial
institutions, community groups, and
local government.

RULES AND REGULATIONS
D evelopm ent and re v ie w of FDIC
rules and regulations (Part 302). On
November 15, 1978, the FDIC pub­
lished a proposed amendment to Part
302 of its regulations which would
revise and codify its rulemaking pro­
cedures. As revised, Part 302 would
describe the general procedures by
which the FDIC develops and reviews
its rules and regulations. The revision
was proposed to comply with Execu­
tive Order 1 2 044 (“ Improving Govern­
ment Regulations") and to make the
FDIC's rulemaking procedures more
responsive to banks and the public at
large. Some of the objectives of the
proposed FDIC procedures are (1)
regulations will be clearly and under­
standably written; (2) their need and
purpose will be clearly established; (3)
the FDIC Board of Directors will exer­

.u-»

cise e ffe c tiv e o v e rs ig h t o f th e ir
development; (4) the public will be
given an opportunity to participate in
the rulemaking process; (5) alternative
approaches will be considered; and (6)
b u rd e n s on th e p u b lic w ill be
minimized.
inte re st Rate Regulations (Part
329). Effective November 1, 1978, the
FDIC amended Part 329 of its regula­
tions to permit insured State nonmem­
b e r b a n k s to t r a n s f e r fu n d s
automatically from a savings account
to a checking or other account of the
same individual depositor. Section
329.7 of the FDIC's regulations was
amended In October 1978 to limit the
maximum rate payable on savings
deposits th at are subject to such
automatic transfer authorizations to
not more than the commercial bank
rate, as required by Title XV! of the
FIRIRCA.
Part 329 was further amended on
June 1, 1978, to provide for a money
market certificate of deposit. This is a
variable rate time deposit of less than
$100,0 00 , the maximum rate of which
is equivalent to the Treasury auction
discount rate on 6-m onth Treasury
bills. It has a fixed term of 26 weeks.
This deposit category is designed to
permit banks to compete for short­
term money market funds.
Part 329 was also amended to prov*de for a new category of 8-year time
c-posits with a 7 -3 /4 percent maxi <um interest rate fo r com m ercial
i ;nks and 8 percent maximum for
mutual savings banks. The amendment
also makes IRA, Keogh Plan, and public
unit time deposits eligible for the 8 per­
cent rate. This amendment took effect
June 1, 1978.
Another amendment to Part 329
allows mutual savings banks in the
State of Washington to issue 8-year
time certificates of deposits at the 8
percent rate, despite the provisions of a
Washington State law that prohibit



T'C'-vo

115

payment of interest on a time deposit
for a period in excess of 6 years. The
amendment allows payment at the 8
percent rate for 6 years subject to
compulsory call by the bank if the
Washington law remains unchanged at
the end of the 6-year period. The pur­
pose of this amendment is to provide
adequate time for the Washington
State legislature to conform the law to
the FDIC's regulations and, at the same
time, avoid placing mutual savings
banks in Washington at a competitive
disadvantage because of the Washing­
ton law restrictions.
Finally, on May 11, 1978, the FDIC
amended Section 329.10 of its regula­
tions to allow insured State nonmem­
ber banks to pay interest on Treasury
tax and loan accounts (TTLs). Accord­
ing to recent Treasury regulations,
interest must be paid on such accounts
that are in the nature of overnight bor­
rowings. In effect, the Treasury regula­
tions require payment of a higher rate
of interest than the rate that normally
may be paid on a bank's short-term
funds. The amendment to the FDIC
regulation has the effect of exempting
TTLs from the interest rate restrictions
in Section 329.10 by expanding the
regulation's exceptions to include
obligations of both the United States
and its agencies.
D e p o sit Insurance (P art 3 3 0 ).
Effective March 15, 1978, Part 330
was amended to provide separate
insurance coverage for interests in pen­
sion and other trusteed employee
benefit funds. The trust interest of
each employee will be insured up to
$40,000, as if each trust interest had
vested, whether the trust is actually
vested or nonvested. In the past, there
were no specific provisions for deposit
insurance of such funds, but vested
and a scerta in a b le in te re s ts w ere
separately insured to the maximum of
$ 4 0 ,0 0 0 based on p rin cip le s o f
insurance of trust interests, and the

116

FEDERAL DEPOSIT IN S U R E CE

aggregated nonvested interests in such
funds were insured up to $40,000.
insurance Coverage of Tim e and
S avin gs D eposits o f Keogh and
Individual Retirem ent A ccount Funds
(Parts 330 and 331), On December 7,
1978, amendments to sections 330.1,
330.10, and 331 1 were approved to
reflect the separate insurance coverage
of $ 1 0 0 ,0 0 0 for time and savings
deposits of Keogh and !RA funds. The
separate coverage was provided for by
T itlr KM of the F!RS
RCA which took
(/fe e " on November 10, 1978.
Securities of insured S tate Nonmem ber Banks fP ir t 335), The FDIC
jdcp te d amendments to Part 335 on
December 20, 1978 These amend­
ments make the FDIC securities dis­
closure requirements similar to those of
the Securities and Exchange Commis­
sion, as required by Section 1 2 fi) of the
Sec*."lues Exchange Act. The amend­
ments a1 correct a number of errors
so
and make minor technical revisions.
E m ployee R e s p o n s ib ilitie s and
Conduct (Part 336!, On D e c e m b e r 20,
1978,, the FDIC adopted amendments
to Part 338 'which are designed to
avoid actual conflicts of interest or the
appearance of conflicts of interest. The
amendments (1 ’ nohibit senior policy
makers from
certain credit;
(2) establish psjicp’mes concerning
ownership of bank-related securities;
(35 eliminate disclosure requirements
for certain financial interests owned by
an employee's spouse or dependent;
(4) greatly increase the number of
employees required to file disclosure
s ta te m e n ts ; (5) esta b lish fo rm a l
gu,de!mes for processing these stater r r n ^ and (8) unite in one regulation
th e v a rio u s d is c lo s u re s y s te m s
employed by the FDIC.
F air H o u s in g (P a rt 3 3 8 ). An
amendment to Part 338 became effec­
tive on July 3, 1 978. The regulation is
an outgrowth of the FDIC's duty to
compel insured State nonmember



M iO N

banks to comply with the Fair Housing
Act and the Equal Credit Opportunity
Act. Part 338 incorporates an amended
version of the advertising and poster
requirements that were formerly con­
tained in the FDIC's policy statement
on fa ir h o u s in g e n title d '"N o n discrim ination in Real Estate Loan
A c t iv it ie s . " it a lso e s ta b lis h e s
re c o rd k e e p in g re q u ire m e n ts fo r
monitoring insured State nonmember
banks' compliance with the Federal fair
housing laws. The intent of the regula­
tions is to provide a basis for a more
effective FDIC fair housing enforce­
ment program.
Recordkeeping and Confirm ation
Requirements for Securities Trans­
actions (Part 344!, On February 23,
1 978, the FDIC published for comment
proposed Part 344 which would estab­
lish recordkeeping, written procedure,
and confirmation requirements for cer­
tain securities transactions effected by
insured State nonmember banks for
tru st departm ent and other bank
customers. These proposals are in
response to recommendations in the
SFC's Final Report on Bank Securities
Activities. The report includes a recom­
mendation to Congress that the Federal
banking agencies be required to issue
and e n fo rce s p e c ific re g u la tio n s
governing the conduct of banks in
effecting securities transactions for the
accounts of others. Based on the com­
ments received, on November 6, 1978,
the FDIC published for comment a
revised Part 344.
C om m unity Reinvestm ent A c t of
1977 (Parts 345 and 303). Part 345
became effective on November 6,
1 978, and implements the Community
Reinvestment Act of 1 977 (CRA). Part
345 is intended to encourage insured
State nonmember banks to help meet
the credit needs of their communities,
including low- and moderate-income
neighborhoods, in conformity with the
safe and sound operation of such

RULES AND REGULATIONS

banks. Under the regulations, the FDIC
will assess the banks' records in meet­
ing the credit needs of their com­
munities and, after assessing those
records, will take them into account
when evaluating applications by those
banks. Applications affected are those
for deposit insurance in connection
with a newly chartered bank, for estab­
lishment of a new branch or other
deposit-accepting facility, for reloca­
tion of a main or branch office, and for
approval of a merger, consolidation,
acquisition of assets, or assumption of
liabilities.
To implement these requirements,
Part 303 was amended to specify that a
bank must increase (1) the number of
times that notice of the filing of applica­
tions for branches, for relocation, and for
deposit insurance must be published and
(2) the number of communities in which
notice of application for branches and
relocations must be published. In the
case of relocation applications, notice
must be published in the lobby of the
office which is to be moved. These




117

amendments are designed to improve
application procedures and enhance
public awareness of prospective actions
of those banks to which the CRA
applies. These amendments took effect
on November 6, 1978.
Rem ote S e rv ic e F a c ility Pro­
cedures (Parts 303, 304, and 328).
Proposed amendments to Parts 303,
304, and 328, published for comment
on October 12, 1978, would revise the
current FDIC procedures relating to
remote service facilities. Included in the
designation "rem ote service facilities"
are automated teller machines, cash
dispensing machines, point-of-sale ter­
minals, and other remote electronic
facilities where deposits are received,
checks are paid, or money is lent. The
rules are designed to comply with court
decisions classifying such remote serv­
ice facilities as branches, to minimize
the administrative burden on banks
which seek to establish such facilities
and on the FDIC, and to provide the
FDIC with the information needed to
regulate these remote service facilities.




ill
111

mum!
iiiiiiiii




STATISTICS OF BANKS
AND DEPOSIT INSURANCE
PART FIVE

FT
:u :

N
)
O

NUMBER OF BANKS AND BRANCHES
m

O
m

JO

Table 101.

Changes in number and classification of banks and branches in the United States (States and
other areas) during 1978

Table 102.

Changes in number of commercial banks and branches in the United States (States and other
areas) during 1978, by State

Table 103.

^

Number of banking offices in the United States (States and other areas), December 31, 1978

^

“0

o

h

Banks grouped by insurance status and class o f bank, and by State or area and type of office

Table 104.

§

Number and assets of all commercial and mutual savings banks in the United States (States and
other areas), December 31, 1978

z

>

m
o

Banks grouped by class and asset size

Table 105.




Number, assets, and deposits of all commercial banks in the United States (States and other
areas), December 31, 1978
Banks grouped by asset size and State

J
O

g
^
d

Nondeposit trust companies include institutions operating under trust
company charters which are not regularly engaged in deposit banking but are
engaged in fiduciary business other than that incidental to real estate title or
investment activities.
Mutual savings banks include all banks operating under State banking
codes applying to mutual saving banks.
Institutions excluded. Institutions in the following categories are excluded,
though such institutions may perform many of the same functions as commer­
cial and savings banks:
Banks that have suspended operations or have ceased to accept new

121




deposits and are proceeding to liquidate their assets and pay off existing
deposits;
Building and loan associations, savings and loan associations, credit unions,
personal loan companies, and similar institutions, chartered under laws apply­
ing to such institutions or under general incorporation laws, regardless of
whether such institutions are authorized to accept deposits from the public or
from their members and regardless of whether such institutions are called
"banks" (a few institutions accepting deposits under powers granted in
special charters are included);
Morris Plan companies, industrial banks, loan and investment companies,
and similar institutions except those mentioned in the description of institu­
tions included;
Branches of foreign banks and private banks which confine their business to
foreign exchange dealings and do not receive "deposits" as that term is com­
monly understood;
Institutions chartered under banking or trust company laws, but operating as
investment or title insurance companies and not engaged in deposit banking or
fiduciary activities;
Fedeal Reserve Banks and other banks, such as the Federal Home Loan
Banks and the Savings and Loan Bank of the State of New York, which oper­
ates as rediscount banks and do not accept deposits except from financial
institutions.
Branches: Branches include all offices of a bank other than its head office, at
which deposits are received, checks paid, or money lent. Banking facilities
separate from a banking house, banking facilities at government establish­
ments, offices, agencies, paying or receiving stations, drive-in facilities, and
other facilities operated for limited purposes are defined as branches under the
Federal Deposit Insurance Act, section 3(o), regardless of the fact that in cer­
tain States, including several that prohibit the operation of branches, such
limited facilities are not considered branches within the meaning of State law.

NUMBER O BANKS A D BRANCHES
F
N

Banks: Commercial banks include the following categories of banking
institutions:
National banks;
Incorporated State banks, trust companies, and bank and trust companies
regularly engaged in the business of receiving deposits, whether demand or
time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New Hampshire;
Industrial and Morris Plan banks which operate under general banking codes,
or are specifically authorized by law to accept deposits and in practice do so,
or the obligations of which are regarded as deposits for deposit insurance;
A regulated certificated bank in Georgia; government-operated banks in
North Dakota and Puerto Rico; a savings institution, known as a "trust com­
pany," operating under special charter in Texas; the Savings Banks Trust
Company in New York; the Savings Bank and Trust Company Northwest
Washington in the State of Washington; and branches of foreign banks
engaged in a general deposit business in Illinois, Massachusetts, New York,
Oregon, Pennsylvania, Washington, Guam, Puerto Rico, and Virgin Islands;
Private banks under State supervision, and such other private banks as are
reported by reliable unofficial sources to be engaged in deposit banking.

122

Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1978
All banks

Commercial banks and nondeposit trust companies
Insured

Type of change
Total

Insured

Non
insured

Members
F.R. System

Total

Mutual savings banks
Noninsured

Total
State

Banks
of
deposit

Non
deposit

Total

Insured

Non
insured

com
panies^

ALL BANKING O FFICES
Number of offices. December 31 . 1978 ...............................................................................
Number of offices, December 31, 1 9 7 7 ...............................................................................

52,604
50,695

51,699
49.825

905
870

49,598
47,914

49,182
47,523

22,731
22,294

5,721
5,610

20,730
19,619

315
292

101
99

3,006
2,781

2,517
2,302

489
479

Net change during ye a r...........................................................................................................

+1,909

+1,874

+35

+ 1,684

+ 1,659

+437

+111

+1,111

+23

+2

+225

215

+10

Offices op ened .....................................................................................................................

2,426

2,371

55

2,165

2,129

990

199

940

33

3

261

242

Banks ..............................................................................................................................................
Branches

19

184
2,242

150
2,221

34
21

182
1,983

148
1,981

37
953

17
182

94
846

31
2

3
0

2
259

2
240

0
19

Offices closed.......................................................................................................................

517

509

8

481

477

223

85

169

3

1

36

32

4

Banks ....................................................................................................................................................
Branches .................................................................................

185
332

179
330

6
2

181
300

178
299

62
161

14
71

102
67

2
1

1
0

4
32

1
31

3
1

Changes in classification....................................

....

0

+12

0

+7

-3 3 0

-3

+340

-7

0

0

+5

-5

0
0

Among banks....................................................
Among branches.................

+4
+8

-1 2

- 4
—8

0
0

+3
+4

66
264

- 18
+ 15

+87
+ 253

-3
-4

0
0

0
0

+1
+4

-1
-4

15,206
15,207

14,716
14,741

490
466

14,741
14,740

14,391
14,418

4,564
4,655

1,000
1,015

8,827
8,748

261
235

89
87

465
467

325
323

140
144

-2 7

-9 1

-2

+2

-4

BANKS
Number of banks, December 31, 1 9 7 8 .................................................................................
Number of banks, December 31 , 1 9 7 7 .................................................................................
Net change during ye a r...........................................................................................................

New banks.................................................................................................................
Banks added to count6...........................................
Banks ceasing operation................................................

...




-2 5

+24

+1

-1 5

+79

+26

+2

150

34

182

148

37

17

94

31

3

2

2

0

150
0

30
4

178
4

148
0

37
0

17
0

94
0

27
4

3
0

2
0

2
0

0
0

....

185

179

6

181

178

62

14

102

2

1

4

1

3

182
1
0
1
1

Absorptions, consolidations, and mergers
Closed because of financial difficulties....................
Other liquidations....................................................
Discontinued deposit operations..............
Banks deleted from count
Noninsured banks becoming in su re d ..........

-1
184

180
4

Banks beginning operation.................................................................................................

178
1
0
0
0

4
0
0
1
1

178
1
0
1
1

177
1
0
0
0

62
0
0
0
0

14
0
0
0
0

101
1
0
0
0

1
0
0
1
0

0
0
0
0
1

4
0
0
0
0

1
0
0
0
0

3
0
0
0
0

0

+4

0

+3

0

0

+3

0

0

-4

-3

+1

-1

FEDERAL DEPOSIT INSURANCE CORPORATION

National

Not
mem
bers
F.R.
System

Other changes in classifica tio n ......................................................................................

0

0

0

0

0

-6 6

-1 8

+ 84

0

0

0

0

0

National succeeding State bank...............................................................................................
State succeeding national bank...............................................................................................
Admission of insured bank to F.R. System..........................................................................
Withdrawal from F.R. System with continued insurance.............................................
Insured bank becoming noninsured bank.............................................................................
Mutual savings bank converted to commercial bank......................................................

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
0
0

+3
-6 9
0
0
0
0

0
+7
+ 12
-3 7
0
0

-3
+62
-1 2
+37
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
0
0
0
0

332
27
24
5
233

316
24
22
5
225

16
3
2
0
8

330
26
24
5
233

315
24
22
5
225

79
6
3
4
53

22
1
1
1
9

214
17
18
0
163

15
0
2
0
6

0
2
0
0
2

2
1
0
0
0

1
0
0
0
0

1
1
0
0
0

58

58

0

57

57

0

0

57

0

0

1

1

0

54
574

12
12

2,541
2,314

2,192
1,979

349
335

Changes not involving number in any class

Change
Change
Change
Change
Change

in
in
in
in
in

title..................................................................................................................................
location.........................................................................................................................
title and location........................................................................................................
name of location........................................................................................................
location within c ity ..................................................................................................

Change in corporate powers

BRANCHES
Number of branches, December 31, 1 9 7 8 5 .........................................................................
Number of branches, December 31, 1 9 7 7 5 .........................................................................

37,398
35,4882

36,983
35,0843

415
4044

34,857
33,1742

34,791
33,1053

18,167
17,6393

4,721
4,595

11,903
10,8713

Net change during ye a r..........................................................................................................

+1,910

+1,899

+11

+1,683

+1,686

+528

+126

+1,032

0

+227

+213

+14

Branches opened for b usin ess........................................................................................

2,242

2,221

21

1,983

1,981

953

182

846

2

0

259

240

19

Facilities designated by Treasury............................................................................................
Absorbed bank converted to branch......................................................................................
Branch replacing head office relocated................................................................................
New branches..................................................................................................................................
Branches and/or facilities added to count6........................................................................

0
162
48
1,968
64

0
159
48
1,961
53

0
3
0
7
11

0
158
48
1,732
45

0
158
48
1,730
45

0
51
14
865
23

0
29
2
144
7

0
78
32
721
15

0
0
0
2
0

0
0
0
0
0

0
4
0
236
19

0
1
0
231
8

0
3
0
5
11

Branches discontinued........................................................................................................

332

330

2

300

299

161

71

67

1

0

32

31

1

Facilities designated by Treasury............................................................................................
Branches .............................................................................................................................................
Branches and/or facilities deleted from count..................................................................

3
267
62

3
267
60

0
0
2

3
236
61

3
236
60

2
117
42

0
66
5

1
53
13

0
0
1

0
0
0

0
31
1

0
31
0

0
0
1

Other changes in classifica tio n......................................................................................

Branches
Branches
Branches
Branches

changing class as a result of conversion.........................................................
of noninsured banks admitted to insurance...................................................
transferred through absorption, consolidation, or merger..........................
of insured banks withdrawing from F.R.S........................................................

-3

0

+8

-8

0

+4

-2 6 4

+15

+253

-4

0

0

+4

-4

0
0
0
0

0
+8
0
0

0
-8
0
0

0
0
0
0

0
+4
0
0

-2 0 2
0
-6 2
0

+23
0
+ 117
-1 2 5

+ 179
+4
-5 5
+ 125

0
-4
0
0

0
0
0
0

0
0
0
0

0
+4
0
0

0
-4
0
0

5
255
405

5
254
403

0
1
2

5
250
375

5
250
374

3
85
162

0
7
37

2
158
175

0
0
0

0
0
1

0
5
30

0
4
29

NUMBER O BANKS AN BRANCHES
F
D

Granted trust powers.................

0
1
1

Changes not involving number in any class

Changes in operating powers of branches...........................................................................
Branches transferred through absorption, consolidation, or merger.........................
Changes in title, location, or name of location..................................................................

11ncludes noninsured nondeposit trust companies, members of the Federal Reserve System.
21977 branch totals adjusted.
3Revised.
^•Fourteen noninsured branches of insured banks previously classified noninsured are now classified as insured branches.
5|ncludes facilities established at the request of the Treasury or commanding officer of government installations, and also a few seasonal branches that were not in operation as of December 31.
6Banks or branches opened prior to 1978 but not included in count as of December 31, 1977.

123




124

Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1978, BY STATE
Ceasing operation in 1978

Beginning operation in 1978

Net change
during 1978

In operation

Banks

Dec. 31, 1977

Dec. 31, 1978

State

Banks

Branches

Branches
Branches

Other

178

3

236

64

204

176

3

232

62

5

2

2

0

4

2

0
0
0
0
0

43
7
21
22
137

3
1
0
0
4

2
0
0
0
4

1
0
1
0
0

2
1
2
3
12

0
1
0
0
1

19
1
0
1
6

3
0
0
0
0

18
5
4
5
160

0
7
0
0
77

0
8
0
0
75

0
0
0
0
0

1
2
0
0
0

0
0
0
0
1

+34
+2
+ 13
+88
+40

1
0
0
9
2

0
0
0
0
0

33
3
13
85
42

4
0
0
4
6

2
0
0
2
5

0
0
0
0
0

3
0
0
1
8

0
1
0
0
0

+1
+1
NA
+2
NA

-9
+48
+38
+45
-4

1
1
0
2
0

0
0
0
0
0

22
47
40
44
4

2
1
0
2
0

0
0
0
0
0

0
0
0
0
0

6
0
2
1
7

27
0
0
0
1

812
927
1,704
76
604

-2
+4
+3
+7
0

+43
-3
+89
+ 100
+31

1
4
5
7
1

0
0
0
0
0

43
13
91
98
30

4
0
2
3
2

3
0
2
0
1

0
0
0
0
0

3
12
4
0
1

1
4
0
1
0

372
21
177
119
126

+1
+3
+1
+1
0

+27
+2
+22
+ 11
+9

2
3
1
1
2

0
0
0
0
0

29
2
24
11
8

4
0
0
0
2

1
0
0
0
2

0
0
0
0
0

5
0
2
0
1

1
0
0
0
0

New

Other

New

Other

+1

+ 1,683

178

4

1,777

206

32,893

+1

+1,682

177

3

1,772

30

281

0

+1

1

1

553
112
484
372
3,906

310
12
25
262
235

509
106
465
353
3,778

+2
NA
+3
NA
+9

+44
+6
+ 19
+ 19
+ 128

5
0
4
0
13

394
65
19
17
617

81
587
147
138
743

372
72
19
16
686

64
577
143
133
507

+22
-7
NA
+1
-6 9

+ 17
+ 10
+4
+5
+236

Georgia...............................................
H a w a ii...............................................
Idaho....................................................
Illinois..................................................
Indiana...............................................

440
11
24
1,277
406

786
160
228
394
1,035

441
11
24
1,270
409

752
158
215
306
995

-1
NA
NA
+7
-3

Iowa....................................................
Kansas ...............................................
Kentucky............................................
Louisiana............................................
Maine..................................................

657
617
344
256
43

500
256
644
715
293

656
616
344
254
43

509
208
606
670
297

Maryland............................................
Massachusetts................................
Michigan............................................
Minnesota.........................................
Mississippi.........................................

106
152
365
761
185

855
924
1,793
176
635

108
148
362
754
185

M issouri............................................
Montana............................................
Nebraska............................................
Nevada ...............................................
New Hampshire.............................

720
163
459
9
79

399
23
199
130
135

719
160
458
8
79

Branches

Banks

Branches

Banks

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

14,741

34,857

14,740

33,1741

50 States and O.C...................

14.711

34,575

14,710

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

30

282

Alabama............................................
Alaska..................................................
Arizona...............................................
Arkansas ............................................
California............................................

312
12
28
262
244

Colorado............................................
Connecticut......................................
Delaware............................................
District of Columbia....................
Florida..................................................

Absorptions

States




FEDERAL DEPOSIT INSURANCE CORPORATION

Other

Branches

Banks

New Jersey......................................
New M exico...................................
New Y o rk .........................................
North Carolina................................
North Dakota...................................

184
87
298
89
174

1,535
227
3,317
1,683
117

188
84
295
90
173

1,5011
216
3,313
1,654
110

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

482
485
63
378
17

1,941
217
525
2,427
226

487
483
55
387
17

1,827
175
495
2,360
225

South Carolina................................
South Dakota...................................
Tennessee .........................................
Texas .................................................
Utah....................................................

87
156
350
1,401
68

662
149
953
203
253

88
158
348
1,382
73

629
137
910
176
229

Vermont..............................................
Virginia ...............................................
Washington......................................
West Virginia...................................
Wisconsin.........................................
Wyoming............................................

30
263
103
231
633
88

147
1,302
785
56
444
3

31
280
96
227
628
82

3
0
21
6

24
2
232
24

1
0
23
6

-4
+3
+3

0
3
12
1
1

0
0
0
0
0

35
12
68
39
7

4
0
9
2
0

4
0
8
2
0

0
0
1
0
0

5
1
66
11
0

0
0
7
1
0

-5
+2
+8
-9
NA

+ 114
+42
+30
+67
+1

0
2
10
2
0

0
0
0
0
0

121
42
29
75
1

6
0
2
11
0

5
0
2
11
0

0
0
0
0
0

10
0
1
16
0

3
0
0
3
0

-2
+2
+ 19
-5

+33
+ 12
+43
+27
+24

0
0
2
19
5

0
0
0
0
0

33
8
49
27
15

1
4
1
0
10

1
2
0
0
10

0
0
0
0
0

1
0
6
0
1

0
0
1
0
0

145
1,255
766
51
427
3

-1
-1 7
+7
+4
+5
+6

+2
+47
+ 19
+5
+ 17
NA

0
6
7
4
5
6

0
0
0
0
0
0

7
39
20
5
36
0

0
25
1
0
0
0

1
23
0
0
0
0

0
0
0
0
0
0

4
16
2
0
13
0

1
1
0
0
6
0

26
2
229
24

+2
NA
-2
NA

-2
NA
+3
NA

1
0
0
0

1
0
0
0

1
0
4
0

0
0
2
0

0
0
2
0

0
0
0
0

1
0
3
0

2
0
0
0

-1

-1

Other areas

Pacific Islands................................
Canal Zone......................................
Puerto Rico......................................
Virgin Islands...................................

11977 branch totals adjusted.
NA-No activity.

125




NUMBER O BANKS A D BRANCHES
F
N

+1

+34
+ 11
+4
+29
+7

126

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS). DECEMBER 31, 1978
BANKS G O PED ACCORDING TO INSURANCE STATUS AND CLASS O BANK, AND BY STATE O AREA AND TYPE O O E
RU
F
R
F FFIC
Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

Insured

Percentage insured'!

Noninsured

Non
deposit
trust
companies3

Total

Insured

Non­
insured

All
banks
of
de­
posit

Com
mercial
banks
of
deposit

Mutual
savings
banks

State

United States— all o f f ic e s ..................

52.604

51,699

905

49,598

49,182

22,731

5,721

20,730

315

101

3,006

2,517

489

98.3

99.2

83.7

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches^ ....................................................

15,206

14,716

490

14,741

14,391

4,564

1,000

8,827

261

89

465

325

140

96.8

97.6

69.9

8,410
6,796

8.060
6,656

350
140

8,348
6,393

2.276
2.288

500
500

5.249
3.578

242
19

81
8

62
403

35
290

27
113

95.8
97.9

96.1
99.6

56.5
72.0

37,398

36,983

415

34,857

34,791

18,167

4,721

11,903

54

12

2,541

2,192

349

98.9

99.8

86.3

50 States & D .C .— all offices.............

52.292

51,419

873

49,286

48,902

22,671

5,721

20,510

285

99

3,006

2,517

489

98.3

99.2

83.7

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches^ ....................................................

15,176

14,703

473

14,711

14,378

4,564

1,000

8,814

246

87

465

325

140

96.9

97.7

69.9

8,393
6.783

8,056
6,647

337
136

8,331
6,380

8,021
6,357

2.276
2.288

500
500

5.245
3.569

231
15

79
8

62
403

35
290

27
113

96.0
98.0

96.3
99.6

56.5
72.0

37,116

36,716

400

34,575

34,524

18,107

4,721

11,696

39

12

2,541

2,192

349

98.9

99.9

86.3

Other Areas— all offices.......................

312

280

32

312

280

60

0

220

30

2

0

0

0

89.7

89.7

0.0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches^ ....................................................

30

13

17

30

13

0

0

13

15

2

0

0

0

43.3

43.3

0.0

17
13

4
9

13
4

17
13

4
9

0
0

0
0

4
9

11
4

2
O

0
0

0
0

0
0

23.5
69.2

23.5
69.2

0.0
0.0

282

267

15

282

267

60

0

207

15

0

0

0

0

94.7

94.7

0.0

Alabama— all o f f ic e s ............................

865

865

0

865

865

448

48

369

0

0

0

0

0

100.0

100.0

0.0

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

312

312

0

312

312

99

23

190

0

0

0

0

0

100.0

100.0

0.0

147
165

147
165

0
0

147
165

147
165

32
67

14
9

101
89

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

553

553

0

553

553

349

25

179

0

0

0

0

0

100.0

100.0

0.0

Alaska— all o ffices.................................

129

129

0

124

124

90

0

34

0

0

5

5

0

100.0

100.0

100.0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

14

14

0

12

12

6

0

0

2

2

0

100.0

100.0

100.0

2
12

0
0

1
11

1
11

0
6

0
0

0
0

0
0

1
1

1
1

0
0

100.0
100.0

100.0
100.0

100.0
100.0

115

115

0

112

112

84

0

6
/
5
28

0

2
12

0

3

0

100.0

100.0

100.0

Arizona— all o f fic e s ...............................

512

504

8

512

504

323

0

181

0

8

0

0

0

98.4

0.0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

28

20

8

28

20

0

17

0

8

0

0

0

71.4

71.4

0.0

18
10

10
10

8
O

18
10

10
10

3
/

2

0
0

9
8

0
0

8
O

0
0

0
0

0
0

55.6
100.0

55.6
100.0

0.0
0.0

484

484

320

0

164

0

0

0

0

0

100.0

100.0

0.0

Total

Insured

Non­
insured

Total

Members F.R.
System

Total

Na­
tional

8.025
6.366

State




484

484

0

0

3

98.4

FEDERAL DEPOSIT INSURANCE CORPORATION

Banks
of de
posit2

Nonmem­
bers
F.R.
Sys
tem

State and type of bank
or office

634

631

3

634

631

245

24

362

1

2

0

0

0

99.5

99.5

0.0

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

262

259

3

262

259

69

1

2

0

0

0

98.9

98.9

0.0

108
151

3
0

111
151

108
151

16
53

6
/

184

111
151

5

91
93

1
0

2
0

0
0

0
0

0
0

97.3
100.0

97.3
100.0

0.0
0.0

372

372

0

372

372

176

18

178

0

0

0

0

0

100.0

100.0

0.0

California— all o f f ic e s ..........................

4,150

4,126

24

4,150

4,126

2,789

344

993

0

24

0

0

0

99.4

99.4

0.0

Banks .............................................................
Unit banks...............................................
Banks operating branches...............
Branches^ ....................................................

244

229

15

244

229

53

7

169

0

15

0

0

0

93.9

93.9

0.0

78
166

69
160

9
6

78
166

69
160

10
43

0
7

59
110

0
0

9
6

0
0

0

0
0

88.5
96.4

88.5
96.4

0.0
0.0

3,906

3,897

9

3,906

3,897

2,736

337

824

0

9

0

0

0

99.8

99.8

0.0

Colorado— all o f fic e s ............................

475

380

95

475

380

186

28

166

95

0

0

80.0

80.0

0.0

394

299

95

394

0

0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

299

137

22

140

95

0

0

0

0

75.9

0.0

327
67

75.9

232
67

95
0

327
67

232
67

97
40

18
4

117
23

95
0

0
0

0
0

0
0

0
0

70.9
100.0

70.9
100.0

0.0
0.0

81

81

0

81

81

49

6

26

0

0

0

0

0

100.0

100.0

0.0

Connecticut— all offices.......................

1,021

1,021

0

652

652

220

88

344

0

0

369

369

0

100.0

100.0

100.0

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

130

130

0

65

65

19

2

44

0

0

65

17
113

0
0

12
53

12
53

3
16

0
2

9
35

0
0

0
0

5
60

65
5

100.0

17
113

891

891

0

587

587

201

86

300

0

0

Delaware— all offices............................

192

190

2

166

164

10

0

154

0

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

21

19

2

19

17

5

0

6
13

2
0

8
11

6
11

1
4

0
0

0
0

2
0

0
2

171

171

0

147

147

5

0

12
5
7
142

0

8
13

0

0

24

D .C.— all offices......................................

155

155

0

155

155

152

0

3

0

0

0

100.0

100.0

0.0

17

17

0

17

17

0

0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches.......................................................

16

0

1

0

0

0

0

0

100.0

100.0

0.0

4
13

4
13

0
0

4
13

4
13

4
12

0
0

0
1

0
0

0
0

0
0

0
0

0
0

138

100.0
100.0

100.0
100.0

0.0
0.0

138

0

138

138

136

0

2

0

0

0

0

0

100.0

100.0

0.0

Florida— all offices.................................

1,360

1,356

4

1,360

1,356

579

44

733

1

3

0

99.7

99.7

0.0

617

613

4

617

613

236

27

350

3

0

0

99.4

99.4

292
325

288
325

4
0

0.0

292
325

288
325

101
135

17
10

170
180

1
/

0
0

0

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

0

3
0

0
0

0
0

0
0

98.6
100.0

98.6
100.0

0.0
0.0

743

743

0

743

743

343

17

383

0

0

0

0

0

100.0

100.0

0.0

Georgia— all o ffic e s...............................

1,226

1,226

0

1,226

1,226

415

85

726

0

0

0

100.0

100.0

0.0

440

440

0

440

440

64

9

367

0

0

0

0
0

0

Banks .............................................................
Unit banks...............................................
Bank operating branches...............
Branches .......................................................

0

100.0

100.0

0.0

199
241

199
241

0
0

199
241

199
241

13
51

2
7

184
183

0
0

0
0

0
0

0
0

0
0

786

100.0
100.0

100.0
100.0

0.0
0.0

786

0

786

786

351

76

359

0

0

0

0

0

100.0

100.0

0.0

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

171

165

6

171

165

13

0

152

0

6

0

0

96.5

96.5

0.0

Banks .............................................................
Unit banks..............................................
Bank operating branches...............
Branches .......................................................

11

8

0

3

11

8

2

0

6

0

3

0

0

0

72.7

1
10

72.7

0.0

0
8

1
2

1
10

0
8

0
2

0
0

0
6

0
0

1
2

0
0

0
0

0
0

157

0.0
80.0

0.0
80.0

0.0
0.0

3

157

11

0

146

0

3

0

0

0

98.1

98.1

0.0

160

0

100.0

100.0

60

0
0

100.0
100.0

100.0
100.0

100.0
100.0

304

304

0

100.0

100.0

100.0

2

26

26

0

99.0

98.8

100.0

2

2

2

0

90.5

89.5

100.0

2

0
0

75.0
100.0

75.0
100.0

0.0
100.0

24

0

100.0

100.0

100.0

0

127




160

0

NUMBER O BANKS AN BRANCHES
F
D

Arkansas— all o ffices............................

128

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK. AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank
or office

Total

Insured

Non­
insured

Total

Total

Noninsured

Members F.R.
System
Na­
tional

State

Nonmem­
bers
F.R.
Sys­
tem

Banks
of deposit2

Non
deposit
trust
com
panies3

Total

Insured

Non
insured

All
banks
of
de­
posit

Com­
mercial
banks
of
deposit

Mutual
savings
banks

252

252

184

10

58

14

0
0

0.0

4

0
0

100.0

6

0
0

100.0

24

0
0

0

24

0

100.0

100.0

0.0

6
18

6
18

0
6

2
2

4
10

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

44

0

0

0

0

0

100.0

100.0

0.0

938

29

7

0

0

0

97.8

97.8

0.0

755

29

0

0

97.2

97.2

0.0

29
O

7
7

0

594
161

0
0

0
0

96.2
100.0

96.2
100.0

0.0
0.0

100.0

Idaho— all o ffices....................................

252

252

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

24

24

0
0

6
18

6
18

0
0

228

228

0

228

228

178

6

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

1,671

1,635

36

1,671

1,635

605

92

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

1,277

1,241

1,241

419

67

272
147

50
17

36

1,277

916
325

36
0

952
325

O

0
0

394

394

0

394

394

186

25

183

0

0

0

0

0

100.0

Indiana— all o f f ic e s ...............................

1,447

1,445

2

1,441

1,439

627

90

722

1

1

6

6

0

99.9

99.9

100.0

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

410

408

2

406

404

121

41

242

1

1

4

4

0

99.5

99.5

100.0

135
275

133
275

2
0

133
273

131
273

28
93

20
21

83
159

1
O

1
0

98.5
100.0

98.5
100.0

100.0
100.0

1,037

0

1,035

1,035

506

49

480

0

0

2
2
2

0
0

1,037

2
2
2

0

100.0

100.0

100.0

Iowa— all o f fic e s ....................................

1,157

1,150

7

1,157

1,150

234

92

824

6

1

0

0

0

99.4

99.4

0.0

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

657

650

650

99

44

507

6

1

0

0

0

98.9

98.9

0.0

379
271

7
7

657

386
271

386
271

379
271

48
51

23
21

308
199

6
0

1
0

0
0

0
0

0
0

98.2
100.0

98.2
100.0

0.0
0.0

500

500

0

500

500

135

48

317

0

0

0

0

0

100.0

100.0

Kansas— all o f f ic e s ...............................

873

872

1

873

872

291

24

557

1

0

0

0

0

99.9

99.9

0.0

Banks .............................................................
Unit Banks...............................................
Banks operating branches..............
Branches .......................................................

617

616

1

617

616

151

19

446

0

0

0

0

99.8

99.8

0.0

484
133

483
133

1
0

484
133

483
133

100
51

15
4

368
78

1
/

O

0
0

0
0

0
0

0
0

99.8
100.0

99.8
100.0

0.0
0.0

256

256

0

256

256

140

5

111

0

0

0

0

0

100.0

100.0

0.0

952
325

0

916
325

0.0

0.0

Kentucky— all o ffices............................

988

987

1

988

987

335

103

549

1

0

0

0

0

99.9

99.9

0.G

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

344

343

1

344

343

79

10

254

1

0

0

0

0

99.7

99.7

0.0

135
209

134
209

17
62

3
7

114
140

1
0

0
0

0
0

0
0

0
0

99.3
100.0

99.3
100.0

0.0
0.0

644

256

93

295

0

0

0

0

0

100.0

100.0

0.0




135
209

134
209

1
0

644

644

0

644

FEDERAL DEPOSIT INSURANCE CORPORATION

Insured

Percentage insuredl

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

971

971

0

971

971

344

52

575

0

0

0

0

0

100.0

100.0

0.0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

256

256

0

256

256

54

7

195

0

0

0

0

0

100.0

100.0

0.0

72
184

72
184

0
0

72
184

72
184

12
42

1
6

59
136

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

715

715

0

715

715

290

45

380

0

0

0

0

0

100.0

100.0

0.0

Maine— all o f f ic e s .................................

451

451

0

336

336

134

40

162

0

0

115

115

0

100.0

100.0

100.0

Banks .............................................................
Unit Banks..............................................
Banks operating branches..............
Branches .......................................................

73

73

0

43

43

17

3

23

0

0

30

30

0

100.0

100.0

100.0

9
64

9
64

0
0

4
39

4
39

1
16

0
3

3
20

0
0

0
0

5
25

5
25

0
0

100.0
100.0

100.0
100.0

100.0
100.0

378

378

0

293

293

117

37

139

0

0

85

85

0

100.0

100.0

100.0

Maryland— all offices............................

1.019

1,019

0

961

961

393

109

459

0

0

58

58

0

100.0

100.0

100.0

Banks .............................................................
Unit Banks..............................................
Banks operating branches..............
Branches .......................................................

109

109

0

106

106

34

6

66

0

0

3

3

0

1000

100.0

100.0

25
84

25
84

0
0

25
81

25
81

5
29

0
6

20
46

0
0

0
0

0
3

0
3

0
0

100.0
100.0

100.0
100.0

0.0
100.0

910

910

0

855

855

359

103

393

0

0

55

55

0

100.0

100.0

100.0

M assachusetts— all o f f ic e s ...............

1,700

1,204

496

1,076

1,069

521

72

476

6

1

624

135

489

70.8

99.3

21.6

Banks .............................................................
Unit Banks..............................................
Banks operating branches...............
Branches^ ....................................................

315

169

146

152

146

73

7

66

5

1

163

23

140

53.7

96.1

14.1

52
263

19
150

33
113

22
130

16
130

8
65

0
7

8
58

5
0

1
0

30
133

3
20

27
113

36.5
57.0

72.7
100.0

10.0
15.0

1,385

1,035

350

924

923

448

65

410

1

0

461

112

349

74.7

99.9

24.3

Michigan— all o ffices............................

2,158

2,155

3

2,158

2,155

993

569

593

3

0

0

0

0

99.9

0.0

Banks .............................................................
Unit Banks..............................................
Banks operating branches...............
Branches .......................................................

365

364

1

365

364

125

83

156

1

0

0

0

0

99.7

99.7

0.0

72
293

72
292

72
293

72
292

13
112

17
66

42
114

0
1

0
0

0
0

0
0

0
0

100.0
99.7

100.0
99.7

0.0
0.0

1,793

1,791

0
1
2

1,793

1,791

868

486

437

2

0

0

0

0

99.9

99.9

0.0

Minnesota— all o ffices.........................

938

935

3

937

934

285

40

609

2

1

1

1

0

99.7

99.7

100.0

Banks .............................................................
Unit Banks..............................................
Banks operating branches...............
Branches .......................................................

762

759

3

761

758

205

32

521

2

1

1

1

0

99.6

99.6

100.0

623
139

620
139

3
0

622
139

619
139

151
54

25
7

443
78

2
0

1
0

1
0

1
0

0
0

99.5
100.0

99.5
100.0

100.0
0.0

176

176

0

176

176

80

8

88

0

0

0

0

0

100.0

100.0

0.0

M ississip p i— all o ffice s .......................

820

819

1

820

819

292

18

509

0

1

0

0

0

99.9

99.9

0.0

Banks .............................................................
Unit Banks..............................................
Banks operating branches...............
Branches .......................................................

185

184

184

37

5

142

0

1

0

0

0

99.5

99.5

0.0

41
143

1
/

185

42
143

0

42
143

41
143

4
33

2
3

35
107

0
0

1
0

0
0

0
0

0
0

97.6
100.0

97.6
100.0

0.0
0.0

635

635

0

635

635

255

13

367

0

0

0

0

0

100.0

100.0

0.0

M issouri— all o ffic e s ............................

1,119

1,113

6

1,119

1,113

169

89

855

0

6

0

0

0

99.5

99.5

0.0

Banks .............................................................
Unit Banks..............................................
Banks operating branches..............
Branches .......................................................

720

714

6

720

714

101

52

561

0

6

0

0

0

99.2

99.2

0.0

406
314

400
314

6
0

406
314

400
314

55
46

26
26

319
242

0
0

6
0

0
0

0
0

0
0

98.5
100.0

98.5
100.0

0.0
0.0

399

399

0

399

399

68

37

294

0

0

0

0

0

100.0

100.0

0.0

Montana— all o f fic e s ............................

186

183

3

186

183

67

49

67

0

3

0

0

0

98.4

98.4

0.0

Banks ............................................................
Unit Banks..............................................
Banks operating branches..............
Branches .......................................................

163

160

3

163

160

56

45

59

0

3

0

0

0

98.2

98.2

0.0

141
22

138
22

3
0

141
22

138
22

56
10

41
4

51
8

0
0

3
0

0
0

0
0

0
0

97.9
100.0

97.9
100.0

0.0
0.0

23

23

0

23

23

11

4

8

0

0

0

0

0

100.0

100.0

0.0

129




99.9

NUMBER O BANKS A D BRANCHES
F
N

Louisiana— all o ffices............................

130

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

Non­
insured

Members F.R.
System

Total

Total

Na
tional

State

Non
mem­
bers
F.R.
Sys
tem

Banks
of de
posit2

Non­
deposit
trust
com
panies3

Total

Insured

Non­
insured

All
banks
of
de
posit

Com­
mercial
banks
of
deposit

Mutual
savings
banks

Nebraska— all o ffices............................

658

651

7

658

651

259

10

382

0

7

0

0

0

98.9

98.9

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

459

452

452

117

0

0

0

98.5

98.5

0.0

0

374
78

80
37

287
40

0
0

7
7

0

381
78

O

0
0

0
0

0
0

98.2
100.0

98.2
100.0

0.0
0.0

199

199

0

199

199

142

8
7
/
2

327

374
78

7
7

459

381
78

55

0

0

0

0

Nevada— all o f f ic e s ..............................

139

139

0

139

139

89

24

26

0

0

0

0

0

100.0

100.0

0.0

9

9

0

9

9

4
/

1

4
/

0

0

0

0

0

100.0

100.0

0.0

3

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

22

0

0

0

0

0

100.0

100.0

0.0

0

100.0

100.0

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

2
7

2
7

0
0

2
7

2
7

130

130

0

130

130

85

New Hampshire— all o ffices...............

282

281

1

214

213

137

5

71

0

1

68

68

0

99.6

99.5

100.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

105

104

78

36

0

1

26

26

0

99.0

98.7

100.0

0

26
53

25
53

39
7

3

33
71

1
/

79

34
71

16
20

0
0

1
0

8
18

8
18

0
0

97.1
100.0

96.2
100.0

100.0
100.0

177

177

0

135

135

98

2
1
2

35

0

0

42

42

0

100.0

100.0

100.0

New Je rse y— all o ffices.......................

1,901

1,901

0

1,719

1,719

1,069

24

436

0

0

182

182

0

100.0

100.0

100.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

204

204

0

184

184

96

15

73

0

0

20

20

0

100.0

100.0

100.0

30
174

30
174

0
0

27
157

27
157

12
84

0
15

15
58

0
0

0
0

3
17

3
17

0
0

100.0
100.0

100.0
100.0

100.0
100.0

1,697

1,697

0

1,535

1,535

973

199

363

0

0

0

100.0

100.0

100.0

New Mexico— all o f fic e s ....................

314

313

1

314

313

159

19

135

0

Banks .............................................................
Unit Banks...........................................
Banks operating branches...............
Branches .......................................................

87

86

86

40

6

40

0

22
65

1
/

87

21
65

0

22
65

21
65

10
30

2
4

9
31

0
0

227

227

0

227

227

119

13

95

0

0

New York— all o f fic e s .........................

4,727

4,643

84

3,615

3,531

1,606

1,650

275

79

5

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches^ ....................................................

413

340

73

298

225

124

47

54

68

5

133
280

69
271

64
9

130
168

66
159

33
91

11
36

22
32

59
9

5
O

4,303

11

1,482

1,603

11

0




4,314

3,317

3,306

3

32

O
1
23

221

162

162

1

0

0

0

99.7

99.7

0.0

1

0

0

0

98.9

98.9

0.0

1
0

0
0

0
0

0
0

95.5
100.0

95.5
100.0

0.0
0.0

0

0

0

100.0

100.0

0.0

1,112

1,112

0

98.2

97.7

100.0

115

115

0

82.3

75.5

100.0

3
112

3
112

0
0

51.9
96.8

50.8
94.6

100.0
100.0

997

997

0

99.7

99.7

100.0

FEDERAL DEPOSIT INSURANCE CORPORATION

Insured

Total

Percentage insuredl

Noninsured

Insured
State and type of bank
or office

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

1,772

1,761

11

1,772

1,761

832

7

922

11

0

0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

89

88

1

89

88

27

2

59

1

0

0

17
72

17
71

0
1

17
72

17
71

3
24

1
1

13
46

0
1

0
0

0
0

1,683

1,673

10

1,683

1,673

805

5

863

10

0

0

North Dakota— all offices.....................

291

288

3

291

288

87

6

195

1

2

0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

174

171

3

174

171

43

3

125

1

2

0

100
74

97
74

3
0

100
74

18
25

1
2

78
47

1
0

2
0

0
0

117

117

0

117

117

44

3

70

0

Ohio— all o f f ic e s ....................................

2.423

2,422

1

2,423

2,422

1,375

572

475

1

0

0

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

482

481

1

482

481

217

110

154

1

0

0

131
351

130
351

1
0

131
351

130
351

38
179

36
74

56
98

1
0

0
0

0
0

1,941

1,941

0

1,941

1,941

1,158

462

321

0

0

0

Oklahoma— all o f f ic e s ..........................

702

695

7

702

695

359

18

318

5

2

0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

485

478

478

191

16

271

5

2

0

361
117

7
7

485

368
117

0

368
117

361
117

122
69

14
2

225
46

5
0

0
0

217

217

0

217

217

168

2

47

0

2
0
0

0

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

604

598

6

588

582

335

1

246

6

0

16

16

0

99.0

99.0

100.0

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches^ ....................................................

65

62

3

63

60

6

1

53

3

0

2

2

0

95.4

95.2

100.0

27
38

25
37

2
1

27
36

25
35

1
5

1
0

23
30

2
1

0
0

0
2

2

0
0

92.6
97.4

92.6
97.2

0.0
100.0

539

536

3

525

522

329

0

193

3

0

14

14

0

99.4

99.4

100.0

Pennsylvania— all o ffices....................

2,999

2,989

10

2,805

2,795

1,644

194

957

8

2

194

194

0

99.7

99.6

100.0

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches^ ....................................................

386

378

370

226

12

132

6

2

8

8

0

97.9

97.9

100.0

106
272

8
7

378

113
273

113
265

106
264

75
151

3
9

28
104

5
1

2
0

0
8

8

0
0

93.8
99.6

93.8
99.6

0.0
100.0

2.613

2,611

0

186

186

0

99.9

99.9

100.0

Rhode Island— all o ffices....................

317

304

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

23

20

4
19

3
17

294

284

South Carolina— all offices..................

749

Banks .............................................................
Unit Banks...........................................
Banks operating branches...............
Branches .......................................................

87

20
67

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

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................




1
2

97
74

0

0

0

0

99.4

0.0

0

98.9

98.9

0.0

0
0

100.0
98.6

100.0
98.6

0.0
0.0

0

99.4

0

99.4

99.4

0.0

0

99.0

99.0

0.0

0

98.3

98.3

0.0

0
0

97.0
100.0

97.0
100.0

0.0
0.0

0

0.0

100.0

100.0

0

100.0

100.0

0.0

0

99.8

99.8

0.0

0
0

99.2
100.0

99.2
100.0

0.0
0.0

0

100.0

100.0

0.0

0

99.0

99.0

0.0

0

98.6

98.6

0.0

0
0

98.1
100.0

98.1
100.0

0.0
0.0

0

100.0

100.0

100.0

2,427

2,425

1,418

182

825

2

13

243

230

120

0

110

12

1

74

74

0

95.9

94.7

100.0

3

17

14

5

0

9

2

1

6

6

0

87.0

82.4

100.0

3
6

0
2

1
0

0
6

0
0

75.0
89.5

75.0
84.6

0.0
100.0

0

96.6

95.6

100.0

1
2

4
13

3
1

0
5

0
0

10

0

68

10

226

216

115

0

101

749

0

749

749

349

17

383

0

0

0

87

0

87

87

18

7

62

0

0

0

20
67

0
0

20
67

20
67

1
17

2
5

17
45

0
0

0
0

0
0

662

662

0

662

662

331

10

321

0

0

0

305

304

1

305

304

123

44

137

0

1

0

156

155

1

156

155

32

28

95

0

1

0

105
51

104
51

1
0

105
51

104
51

19
13

19
9

66
29

0
0

1
0

0
0

149

149

0

149

149

91

16

42

0

0

0

0

6
68

0
0
0
0
0
0
0
0
0
0

0

100.0

100.0

0.0

0

100.0

100.0

0.0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0

100.0

100.0

0.0

0

99.7

99.7

0.0

0

99.4

99.4

0.0

0
0

99.0
100.0

99.0
100.0

0.0
0.0

0

100.0

100.0

0.0

NUMBER O BANKS AN BRANCHES
F
D

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

North Carolina— all o ffices..................

132

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK. AND BY STATE OR AREA AND TYPE OF OFFICE

Noninsured

Insured

Total

Insured

Non­
insured

Total

Total

Members F.R.
System

Na­
tional

State

Nonmem­
bers
F.R.
Sys­
tem

Banks
of deposit2

Non
deposit
trust
com
panies3

Total

Insured

Non
insured

All
banks
of
de
posit

Com­
mercial
banks
of
deposit

Mutual
savings
banks

Tennessee— all o ffice s .........................

1.303

1,301

2

1,303

1,301

483

59

759

1

1

0

0

0

99.8

99.8

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

350

348

2

350

348

266

1

1

0

0

0

99.4

99.4

0.0

96
252

2
0

98
252

96
252

72
7

10

98
252

88
178

1
O

1
O

0
0

0
0

0
0

98.0
100.0

98.0
100.0

0.0
0.0

953

953

0

953

953

411

49

493

0

0

0

0

0

100.0

100.0

0.0

65

1
9

Texas— all o f f ic e s .................................

1,604

1,598

6

1,406

1,598

645

57

896

6

0

0

0

0

99.6

99.6

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches...............
Branches .......................................................

1,401

1,395

6

1,401

1,395

609

40

746

6

0

0

0

0

99.6

99.6

0.0

1,226
175

1,220
175

6
0

1,226
175

1.220
175

580
29

26
14

614
132

6
O

0
0

0
0

0
0

0
0

99.5
100.0

99.5
100.0

0.0
0.0

203

203

0

203

203

36

17

150

0

0

0

0

0

100.0

100.0

0.0

Utah— all o f fic e s ....................................

321

319

2

321

319

126

100

93

0

2

0

0

0

99.4

99.4

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

68

66

2

68

66

10

0

2

0

0

0

97.1

97.1

0.0

43
25

41
25

2
0

43
25

6
4

13
7

43

41
25

28
15

0
0

2
O

0
0

0
0

0
0

95.3
100.0

95.3
100.0

0.0
0.0

253

253

0

253

253

116

87

50

0

0

0

0

0

100.0

100.0

0.0

Vermont— all offices..............................

202

201

1

177

176

59

1

116

0

1

25

25

0

99.5

99.4

100.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches.......................................................

36

35

29
7

13

1

15

0

1

4
9

1
O

2
13

0
0

1
0

6
/

100.0

8
27

1
/

30

9
27
166

166

0

147

147

46

0

101

0

Virginia— all o ffice s ..............................

1.565

1,564

1

1,565

1,564

777

475

312

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches .......................................................

263

262

263

262

88

79

95

74
189

73
189

1
/

0

74
189

73
189

14
74

29
50

30
65

0
0

1,302

1,302

0

1,302

1,302

689

396

217

0

0

0

Washington— all o ffices.......................

1.016

1,006

10

888

878

629

40

209

9

1

128

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches^ ....................................................

112

102

10

103

93

20

5

68

9

1

9

9

0

41
71

31
71

10
0

41
62

31
62

2
18

3
2

26
42

9
O

1
0

O
9

O
9

0
0

904

904

0

785

785

609

35

0

0

0

100.0




0

8
22

22

6

141

6

0

97.2

96.7

5

1
5

0
0

88.9
100.0

87.5
100.0

100.0
100.0

0

19

19

0

100.0

100.0

100.0

0

1

0

0

0

99.9

99.9

0.0

0

1

0

0

0

99.6

99.6

0.0

1
0

0
0

0
0

0
0

98.6
100.0

98.6
100.0

0.0
0.0

0

0

100.0

100.0

0.0

128

0

99.0

98.9

100.0

91.1

90.3

100.0

75.6
100.0

75.6
100.0

0.0
100.0

100.0

100.0

119

119

FEDERAL DEPOSIT INSURANCE CORPORATION

State and type of bank
or office

Percentage insured1

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

West Virginia— all o f f ic e s ..................

287

287

0

287

287

134

35

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches .......................................................

118

0

0

0

0

0

100.0

231

100.0

231

0

231

231

106

29

96

0

0

175
56

175
56

0

0

0

100.0

100.0

0.0

0
0

175
56

175
56

78
28

23
6

74
22

0
0

0
0

0
0

0
0

56

0
0

100.0
100.0

100.0
100.0

0.0
0.0

56

0

56

56

28

6

0

0

0

0

0

100.0

100.0

0.0

W isconsin— all o ffices..........................

1,080

1,075

5

1,077

1,072

284

47

741

0

5

3

3

0

99.5

99.5

100.0

Banks .............................................................
Unit Banks............................................
Banks operating branches...............
Branches .......................................................

636

631

5

633

628

129

27

411
225

472

0

5

3

406
225

5
0

3

0

99.2

99.2

100.0

408
225

403
225

82
47

18
9

303
169

5
0

3
0

3
0

444

0
0

0
0

98.8
100.0

98.8
100.0

100.0
0.0

444

0

444

444

155

20

269

0

0

0

0

0

100.0

100.0

22

0.0

0.0

91

91

0

91

91

47

16

28

0

0

0

0

0

100.0

100.0

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches...............
Branches .......................................................

88

88

0

88

88

46

16

26

0

0

0

0

0

100.0

100.0

85
3

85
3

0
0

85
3

85
3

0.0

45
1

16
0

24
2

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

3

3

0

3

3

1

0

2

0

0

0

0

0

100.0

100.0

0.0

27

25

2

27

25

9

0

16

2

0

0

0

0

92.6

92.6

0.0

3

1

2

3

1

0

0

1

2

0

0

0

0

33.3

33.3

0.0

2
1

0
1

2
0

2
1

0
1

0
0

0
0

0
1

2
0

0
0

0
0

0
0

0
0

0.0
100.0

0.0
100.0

0.0
0.0
0.0

OTHER AREAS
Pacific Islands— all offices^...............

Banks .............................................................
Unit Banks............................................
Banks operating branches..............
Branches^ ....................................................

24

24

0

24

24

9

0

15

0

0

0

0

0

100.0

100.0

Canal Zone— all o f fic e s .......................

2

2

0

2

2

2

0

0

0

0

0

0

0

100.0

100.0

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches...............
Branches? ....................................................

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
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
0.0

2

2

0

2

2

2

0

0

0

0

0

0

0

100.0

100.0

0.0

Puerto R ico— all o ffices.......................

253

229

24

253

229

25

0

204

22

2

0

0

0

90.5

90.5

0.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches...............
Branches8 ....................................................

21

12

9

21

12

0

0

12

7

2

0

0

0

57.1

57.1

0.0

9
12

4
8

5
4

9
12

4
8

0
0

0
0

4
8

3
4

2
0

0
0

0
0

0
0

44.4
66.7

44.4
66.7

0.0
0.0

232

217

15

232

217

25

0

192

15

0

0

0

0

93.5

93.5

0.0

Virgin Islands— all o f f ic e s ..................

30

24

6

30

24

24

0

0

6

0

0

0

0

80.0

80.0

Banks .............................................................
Unit Banks...........................................
Banks operating branches..............
Branches9 ....................................................

6

0

6

6

0

0

0

0

6

0

0

0

0

0.0

0.0

0.0

6
0

0
0

6
0

6
0

0
0

0
0

0
0

0
0

6
0

0
0

0
0

0
0

0
0

0.0
0.0

0.0
0.0

0.0
0.0

24

24

0

24

24

24

0

0

0

0

0

0

0

100.0

100.0

NUMBER O BANKS A D BRANCHES
F
N

Wyoming— all o ffices............................

0.0

133




0.0

13
4

D E C E M B E R 3 1 , 1 9 7 8 - C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

1Nondeposit trust companies are excluded in computing these percentages.
2|ncludes 9 noninsured branches of insured banks: 7 in the Pacific Islands and 2 in the Canal Zone.
^Includes noninsured nondeposit trust companies that are members of the Federal Reserve System.
^California: 1 branch operated by a State nonmember bank in Puerto Rico.
Massachusetts: 1 branch operated by a noninsured bank in New York.
New York: 18 branches operated by 3 State nonmember banks in Puerto Rico.
Oregon: 1 branch operated by a national bank in California.
Pennsylvania: 2 branches operated by a noninsured bank in New York and a national bank in New Jersey.
Washington: 3 branches operated by a national bank in California.
5United States possessions: American Samoa, Guam, Midway Islands and Northern Mariana Islands.
Trust Territories: Caroline Islands and Marshall Islands.
^Pacific Islands: 23 branches —
American Samoa: 1 insured branch operated by a State nonmember bank in Hawaii.




Guam: 11 insured branches operated by 2 State nonmember banks in Hawaii, a State nonmember bank and a national
bank in California and 2 national banks in New York.
Caroline Islands: 4 noninsured branches operated by a national bank in California and a State nonmember bank in
Hawaii.
Northern Mariana Islands: 4 insured branches operated by a national bank and a State nonmember bank in California
and a State nonmember bank in Hawaii.
Marshall Islands. 3 noninsured branches operated by a national bank in California and a State nonmember bank in
Hawaii.
?Canal Zone: 2 noninsured branches operated by 2 national banks in New York. Branch deposits are not insurable in the
Canal Zone. Branches are listed with the parent bank.
8puerto Rico: 25 insured branches operated by 2 national banks in New York, and a national bank in California.
9\/irgin Islands: 24 insured branches operated by 2 national banks in New York, a national bank in California, and a
national bank in Pennsylvania.

FEDERAL DEPOSIT INSURANCE CORPORATION

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

Table 104. NUMBER AND ASSETS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS
IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978
BANKS G O PED BY CLASS AND ASSET SIZE
RU
(In thousands of dollars)
Insured commercial banks
Asset size

Members F.R. System
Total
National

Nonmembers
F.R. System

State

Non­
insured
banks
and trust
companies

Mutual savings banks
Non
insured

Insured

Number of banks

Less than $5.0 million.................................................
$5.0 to 9.9 m illion.......................................................
$10.0 to 24.9 m illion.................................................
$25.0 to 49.9 m illion.................................................
$50.0 to 99.9 m illion..................................................
$100.0 to 299.9 million...............................................
$300.0 to 499.9 million..............................................
$500.0 to 999.9 million..............................................
$1.0 to 4.9 billion..........................................................
$5.0 billion or more.......................................................

1.158
2,388
4.882
3.284
1,749
1,116
222
190
193
25

973
2,352
4,836
3,214
1,615
938
166
135
139
23

122
379
1,366
1,208
711
495
92
83
95
13

47
127
312
228
127
88
20
17
24
10

804
1,846
3,158
1,778
777
355
54
35
20
-

185
29
25
14
10
34
18
18
16
-

3
12
29
77
98
31
35
38
2

2
9
27
47
46
7
2

Total b an ks...................................................

15,205

14,391

4 ,5 6 4

1,000

8,827

349

325

140

_

-

(In thousands of dollars)

NUMBER O BANKS A D BRANCHES
F
N

All
banks

Amount of assets

Less than $5.0 million..................................................
$5.0 to 9.9 million.......................................................
$10.0 to 24.9 m illion.................................................
$25.0 to 49.9 m illion.................................................
$50.0 to 99.9 m illion.................................................
$100.0 to 299.9 million...............................................
$300.0 to 499.9 million...............................................
$500.0 to 999.9 million...............................................
$1.0 to 4.9 billion..........................................................
$5.0 billion or more.......................................................

3,733,754
17,861,356
81,083,384
115,209,026
121,937,721
179,803,835
86,145.080
128,435,555
373,342,428
375,495,215

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

1 ,4 8 3 ,0 4 7 ,3 5 4

3,442,950
17,612,878
80,317,611
112,461,978
112,083,102
149,148,495
64,143,777
89,317,803
276,041,619
364,437,560
1 ,269.007,7731

462,208
2,880,462
23,349,459
43,230,564
49,753,340
78,505,925
35,742,352
56,259,595
197,917,134
234,183,992

160,306
960,260
5,220,457
7,944,305
9,066,934
14,895,206
8,305,360
11,802,251
46,978,917
130,253,568

2,820,436
13,772,156
51,747,695
61,287,109
53,262,828
55,747,364
20,096,065
21,255,957
31,145,568
0

290,804
210,134
378,660
518,446
672,109
5,973,107
7,065,630
12,539,548
28,174,939
0

0
24,623
210,113
1,220,925
5,632,306
17,265,671
12,358,436
25,457,195
69,125,870
11,057,655

0
13,721
177,000
1,007,677
3,550,204
7,416.562
2,577,237
1,121,009
0
0

7 2 2,285,031

2 3 5,5 8 7 ,5 6 4

3 1 1,13 5 ,1 7 8

5 5 ,8 2 3 .3 7 7

14 2 ,3 5 2 ,7 9 4

15,863,410

1Domestic assets only; does not include assets of branches of U.S. banks in "Other areas."

135




136

Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS'! IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1978
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of —

State

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

14,740
1,563,884,529
1,260,413,601

1.158
3,733,754
3,105,410

2,381
17,823,012
15,873,003

4,861
80,667,627
72,346,990

3,228
112,980,424
100,737,029

1,625
1 12,755,261
99,697,023

971
154,819,475
131,515,551

181
70,109,541
56,838,684

154
101,919,447
78,749,306

154
304,872,796
230,599,357

27
604,203,192
470,951,248

312
14,737,005
12,657,531

10
35,260
28,589

43
333,364
292,434

151
2,559,046
2,292,779

68
2,431,653
2,175,900

19
1,220,080
1,083,690

13
2,037,087
1,784,845

1
388,356
337,022

5
2,950,393
2,447,110

2
2,781,766
2,215,162

0
0
0

12
1,921.515
1,569,933

0
0
0

0
0
0

0
0
0

2
77,058
68,049

5
317,579
270,151

3
492,572
389,185

1
425,859
336,397

1
608,447
506,151

0
0
0

0
0
0

27
10,184,089
8.870,955

9
15,334
5,161

3
20,612
16,918

6
93,142
84,199

1
35,705
33,713

2
168,133
154,943

1
243,374
221,910

1
367,256
327,238

1
502,033
452,112

3
8,738,500
7,574.761

0
0
-0

262
9.267,552
8,022,468

16
47,009
39,735

37
282,538
251,313

101
1,619,318
1,458,021

63
2,157,452
1,924,575

28
1,794,312
1,590,054

13
1,844,189
1,601,804

3
977,383
745,898

1
545,351
411,068

0
0
0

0
0
0

244
191,914,025
158,779.375

17
33,855
8,185

25
184,675
147,951

53
968,278
865,697

58
2,063,645
1,831,974

35
2,496,993
2,231,063

33
5,788,913
5,203,582

2
684,002
568,901

10
5,417,505
4,783,724

5
10,820,270
9,060,605

6
163,455,889
134,077,693

394
13.374,211
1 1,263,754

110
284,501
203,909

59
443,046
366,526

121
1,934,391
1,720,929

56
2,024,367
1,808,823

28
2,029,833
1,789,699

16
2,246,096
1,929,657

0
0
0

2
1,324,365
1,077,245

2
3,087,612
2,366,966

0
0
0

65
11,992,218
10,061,666

1
4,697
4,270

3
21,159
17,798

20
328,831
289,600

18
602,119
523,105

9
636,020
566,491

6
861,772
730,044

1
471,054
408.642

3
1,918,156
1,645,417

4
7.148,410
5,876,299

0
0
0

19
3,410,922
2,611,134

2
593
0

3
19,907
17,675

6
92,617
83,564

2
59,703
51,615

2
158,485
143,330

0
0
0

1
430,028
388,436

2
1,196,642
1,003,077

1
1,452,947
923,437

0
0
0

17
7,086,581
5,838.979

0
0
0

2
16,831
12,366

2
26,311
24,713

3
135,645
116,127

3
210,041
184,917

2
230,258
201,923

1
467,864
423,789

2
1,505,449
1,191,562

2
4,494,182
3,683,582

0
0
0

All
banks

Total United States and
other areas?

States
Alabama

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Alaska

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Arizona

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Arkansas

Banks.............................................................
Assets..........................................................
Deposits.......................................................
California

Banks.............................................................
Assets..........................................................
Deposits.......................................................
Colorado

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Connecticut

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Dejaware

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
District of Columbia

Banks.................................................
A ssets.......................................................
Deposits................................




FEDERAL DEPOSIT INSURANCE CORPORATION

Banks.............................................................
Total assets^
Total deposits3

Florida

Banks..........................
..............
A ssets..........................................................
Deposits.......................................................

1

0
0

617
37.448,956
32,213,996

14
41,901
26,144

48
366,123
315,856

210
3,613,083
3,207,674

152
5,518,544
4.943.724

96
6,777.964
6,039,172

81
12,141.651
10,632,469

4,295,415
3,551,714

440
20,792,659
16,590,099

38
121,748
107.735

82
615,057
548,388

179
2,997,827
2,688,649

98
3,374,862
2,990.964

20
1,488,179
1,297,451

17
2.497,786
2.183,131

2
767,945
628,409

4
8,929,255
6,145,372

0
0
0

11
4,211,864
3.704.915

1
415
0

1
9,726
0

1
11,404
0

1
35,209
32,653

4
773.030
702,752

1
352,465
325,073

2
3,029,615
2,644,437

0
0
0

24
4,296,491
3,602,347

0
0
0

5
42,915
38,417

7
122,442
108,777

3
103,641
94,986

4
274,358
227,622

1
165.203
147,044

1
351,131
307,859

516,770
435,791

2
2,720,031
2,241,851

0
0
0

1,277
121,380,290
94.253,364

88
329,052
268,032

195
1,478,692
1,320,189

423
6,896,554
6,143,738

268
9,697,377
8,556,167

166
11,615,249
10,128,739

117
18,394.929
14,344,279

11
4,507,316
3,492,192

4
2,666,848
1,702,169

2
6,869,059
5,335,982

3
58,925,214
42,961,877

406
28,220,927
23,701,770

8
20,612
14,588

37
283,426
253,135

121
2,085,095
1,894,361

113
3,923,407
3,529,460

76
5,396,050
4,828,147

38
6,229,265
5,405,230

7
2,540,739
2,121,254

3
1,774,475
1,453,535

3
5,967,858
4,202,060

0
0
0

657
17,882,365
15,627,714

33
118,363
105,872

173
1,340,038
1,213,731

244
3,990,087
3,615,812

146
4,968,673
4,481,834

41
2,893,601
2,586,949

15
2,155,393
1,825,115

4
1.572,450
1,220,471

1
843,760
577,930

0
0
0

0
0
0

617
13,568,762
11.706,613

123
420,176
376,177

154
1,120,666
1,009,312

197
3,159,100
2.844.679

93
3,202,375
2,849.207

36
2,339,220
2,069,256

11
1,916,118
1,450,809

2
715,338
578,793

1
695,769
528,380

0
0
0

0
0
0

344
16,046,662
13,689,911

20
68,539
60.345

45
347,149
308,312

129
2,158,637
1,950,175

92
3,190,763
2,881,389

34
2,305,715
2,051,083

18
2,450,315
2,209,391

2
794,440
604,933

2
1,415,168
1,136,385

2
3,315,936
2,487,898

0
0

256
19,156,370
16,290,978

7
23,674
20,011

16
121,557
109,553

75
1,308,829
1,1 76,285

84
3,013,635
2,715,899

40
2,661,798
2,368,774

21

3,798,079
3,295,153

5
1,886,750
1,593,806

7
4,734,975
3,755,632

1
1,607,073
1,255,865

0
0
0

43
3,008,695
2,591,264

0
0
0

3
22,798
20,178

12
224,013
199,574

15
518,531
459,828

427,108
367,676

5
1,059,579
913,215

2
756,666
630,793

0
0
0

0
0
0

0
0
0

106
14,041,272
11,576,093

1
2,338
1,722

16
122.718
107,946

26
436,677
390,950

28
981,097
872,721

1,436,391
1,290,829

8
1,1 77,655
1,049,923

152
28,062,311
21,832,912

4
14,026
7,788

8
62,995
55,670

42
697,514
578,906

33
1,192,606
1,007,254

30
2,149,197
1,851,865

3,160,839
2,658,280

11

4
2,541,653
1,971,316

2,152,622
1,525,927

0

Georgia

Banks..........................................................
A ssets..........................................................
Deposits.......................................................
Hawaii

Banks..........................................................
Assets....................
............
Deposits.................
............
Idaho

Banks.................
A ssets..............
Deposits...........

1

Banks.................
A ssets..............
Deposits. . . .
Indiana

Banks.................
A ssets..............
Deposits...........
Iowa

Banks.................
Assets..............
Deposits............
Kansas

Banks.................
A ssets..............
Deposits............
Kentucky

Banks.................
A ssets..............
Deposits. .

0

NUMBER O BANKS A D BRANCHES
F
N

Illinois

Louisiana

Banks..............
A ssets............
Deposits. .
Maine

Banks..............
A ssets............
Deposits .

6

Maryland

Banks..............
A ssets............
Deposits.

20

0
0
0

2
1,094,048
870,853

5
8,790,348
6,991,149

0
0
0

7
2,844,213
2,380,360

3
1,681,130
1,394,232

3
5,862,931
4,261,903

1
10,396,860
7,636,654

Massachusetts




21

137

Banks.......................
A ssets....................
Deposits.

138

Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1978-CONTINUED
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of —

State

All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

h/lichigan

365
48,165,374
40,583,398

6
15,871
10,626

23
185,582
163,784

100
1,629,576
1,470,635

105
3,656,172
3,290,238

61
4,236,363
3,818,840

51
8,524,058
7,630,634

6
2,446,149
2,179,786

4
2,400,057
2,123,012

8
16,025,143
12,883,103

1
9,046,403
7,012,740

761
25,007,859
20,524,811

75
277,365
245,955

215
1,571,840
1,437,855

283
4,551.647
4,107,826

119
4,155,567
3,727,029

47
3,191,123
2,855,146

16
2,345,884
2,028,401

3
966,089
740,562

0
0
0

3
7,948,344
5,382,037

0
0
0

185
9,444,942
8,314,275

5
18,021
11,836

25
186,806
165,864

71
1,183,557
1,074,544

51
1,788,725
1,610,462

19
1,344,802
1,196,867

10
1,798,178
1,611,613

2
706,753
637,627

0
0
0

2
2,418,100
2,005,462

0
0
0

720
29,247,195
23,494,859

76
255,289
223,319

150
1,107,927
996,024

244
4,034,657
3,622,968

150
5,153,265
4,557,731

64
4,319,091
3,777,227

29
4,598,435
3,761,788

1
353,835
309,979

2
1,792,492
1,269,488

4
7,632,204
4,976.335

0
0
0

163
4,458,263
3,955,345

11
29,853
24,866

34
257,170
231,321

65
1,008,496
914,993

33
1,088,881
985,983

13
949,804
837,096

7
1,124,059
961,086

0
0
0

0
0
0

0
0
0

0
0
0

459
9,562,484
8,192,532

104
319,611
281,250

134
964,970
868,540

145
2,347,642
2,115,502

45
1,454,812
1,300,842

22
1,437,498
1,275,101

4
445,986
397,473

3
1,246,929
987,017

2
1.345,036
966,807

0
0
0

0
0
0

9
3,286,806
2,876,931

1
1,770
1,241

0
0
0

1
17,189
14,131

0
0
0

1
95,277
88,156

3
723,063
635,733

1
437,731
371,479

1
704,339
626,977

1
1,307,437
1,139,214

0
0
0

79
2,711,275
2,394,142

5
13,267
10,658

10
74,010
65,888

28
489,354
438,619

23
806,376
716,485

8
543,769
464,849

5
784,499
697,643

0
0
0

0
0
0

0
0
0

0
0
0

184
32,197,257
27,492,713

1
751
8

1
9,871
8,013

32
567,569
499,984

53
1,978,575
1,770,997

33
2,374,932
2,099,194

33
5,250,694
4.641,744

11
4,317,441
3,733,870

15
10,698,820
9,204,066

5
6,998,604
5,534,837

0
0
0

87
4,905,028
4,295,090

3
8,152
6,714

6
46,153
40,043

24
424,784
380,972

31
1,122,952
1,012,728

15
1,086,807
980,259

6
954,992
823,385

0
0
0

2
1,261,188
1,050,989

0
0
0

0
0
0

298
404,994,263
304,462,470

18
47,532
37,515

10
72,863
60,883

52
890,560
775,425

48
1,656,583
1,420,428

38
2,701,219
2,243,314

48
8,200,374
6,130,322

21
8,225,748
5,072,382

28
19,638,555
11,198,388

26
53,129,265
35,231,927

9
310,431,564
242,291,886

Minnesota

Banks....................................................
A ssets..........................................................
Deposits.......................................................
M ississippi

Banks.............................................................
Assets..........................................................
Deposits.......................................................
Missouri

Banks.............................................................
Assets..........................................................
Deposits.......................................................
Montana

Banks.............................................................
Assets..........................................................
Deposits.................................................
Nebraska

Banks.............................................................
Assets..........................................................
Deposits..............................................
Nevada

Banks.............................................................
Assets..........................................................
Deposits.......................................................
New Hampshire

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
New Jersey

Banks.......................................................
A ssets..........................................................
Deposits.......................................................
New Mexico

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
New York

Banks.............................................................
A ssets.......................................................
Deposits..................




FEDERAL DEPOSIT INSURANCE CORPORATION

Banks.............................................................
A ssets..........................................................
Deposits.......................................................

North Carolina

Banks.............................................................
Assets..........................................................
Deposits.......................................................

89
20,645,978
17,039,049

4
16,647
12,762

6
44,370
36,826

22
345,619
304,336

24
820,784
726,506

14
981,582
854,803

7
1,296,139
1,132,033

6
2,218,631
1,949,428

1
544,852
488,938

5
14,377,354
11,533,417

0
0
0

174
4,435,241
3,858,809

13
44,747
38,296

38
295,812
268,343

85
1,361,115
1,228,516

21
759,376
679,408

9
587,672
520,384

7
810,468
721,541

0
0
0

1
576,051
402,321

0
0
0

0
0
0

482
49,285,117
40,156,082

7
26,829
24,173

49
358,775
319,486

146
2,505,308
2,235,646

123
4,380,875
3,798,990

82
5,833,082
5,079,522

48
7,467,320
6,405,648

10
3,989,606
3,383,670

7
5,154,278
4,125,027

10
19,569,044
14,783,920

0
0
0

485
17,036,048
14,604,562

52
188,352
163,403

126
923,160
821,615

152
2,492,412
2,242,379

91
3,121,069
2,785,444

47
3,230,388
2,860,181

11
1,695,280
1,455,012

2
768,891
648,059

2
1,918,821
1,565,795

2
2,697,675
2,062,674

0
0
0

63
11,589,899
9,502,515

8
18,659
9,795

10
75.804
64,912

17
280,467
250,050

11
369,005
334,194

8
561,850
507,637

4
656,715
571,092

2
719,328
629,058

1
614,296
529,240

2
8,293,775
6,606,537

0
0
0

378
78,536,921
61,903,490

5
10,605
4,334

31
239,574
203,293

96
1,650,524
1,481,166

91
3,345,592
2,989,162

71
4,934,762
4,411,080

48
7,892,285
6,962,142

13
5,055,882
4,422,805

10
6,484,211
5,599,728

10
23,217,875
18,422,800

3
25,705,611
17,406,980

17
5,672,218
4,529,062

2
1,751
1,210

1
9,760
8,975

4
58,620
49,860

3
103,714
91,147

1
53,052
48,134

3
451,846
386,251

3
4,993,475
3,943,485

0
0
0

87
6,281,452
5,282,889

10
40,771
35,172

9
69,714
59,098

35
547,249
483,098

15
508,185
440,035

11
708,930
627,717

2
426,479
381,416

1
369,193
331,053

3
2,308,193
1,872,560

1
1,302,738
1,052,740

0
0
0

156
4,216,179
3,784,679

20
74,481
65,553

51
389.084
354,653

54
838,026
757,536

16
564,223
510,747

8
539,909
485,162

5
941,664
839,690

2
868,792
771,338

0
0
0

0
0
0

0
0
0

350
20,042,647
17,289,047

17
54,653
47,860

49
357,279
319,513

120
1,991,217
1,793,580

89
3,054,416
2,726,389

46
3,183,533
2,855,373

19
2,645,892
2,347,703

2
779,018
661,237

3
1,794,642
1,448,288

5
6,181,997
5,089,104

0
0
0

1,401
88,921,401
74,359,518

106
354,002
304,299

232
1,727,000
1,536,873

448
7,536,856
6,772,554

342
11,781,442
10,570,728

160
11,176,623
10,034,518

78
12,263,542
10,797,805

16
6,008,972
4,945,755

9
5,683,503
4,760,960

7
13,348,747
10,263,328

3
19,040,714
14,372,698

68
5,848,372
4,950,802

10
27,647
21,732

19
134,300
115,361

19
311,403
279,804

9
298,299
271,698

3
202,638
176,140

4
892,458
743,998

1
441,263
380,427

1
690,108
587,956

2
2,850,256
2,373,686

0
0
0

30
2,038,970
1,842,360

4
12,399
11,071

1
6,183
5,454

6
120,848
108,976

10
330,827
301,736

4
309,477
280,218

4
900,853
809,577

1
358,383
325,328

0
0
0

0
0
0

0
0
0

North Dakota

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Ohio

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Oklahoma

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Pennsylvania

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Rhode Island

Banks.............................................................
A ssets..........................................................
Deposits.......................................................

—

—
—

-

South Carolina

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
South Dakota

Banks.............................................................
A ssets..........................................................
Deposits.......................................................

NUMBER O BANKS A D BRANCHES
F
N

Oregon

Tennessee

Banks.......................................................
A ssets..........................................................
Deposits....................................................
Texas

Banks.............................................................
A ssets..........................................................
Deposits....................................................
Utah

Banks..........................................................
A ssets..........................................................
Deposits.......................................................
Vermont




139

Banks.............................................................
A ssets..........................................................
Deposits.......................

140

Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1978-CONTINUED
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of —

State

All
banks

$5.0 million
to
$9.9 million

Less
than
$5 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

Virginia

263
20,937,087
17,854,396

12
38,183
28,616

35
271,095
238,255

90
1,491,678
1,334,532

65
2,301,131
2,073,183

32
1,998,728
1,795,749

18
3,106,450
2.728,125

2
883.350
738,576

4
2,515,344
2,115,259

5
8.331,128
6.802,101

0
0
0

103
20,124,059
15,223,096

10
26,153
17,512

16
120,807
96,982

33
517,390
461,464

18
614.255
546,603

10
642,222
519,576

7
1,295,501
694,215

3
1,116,084
771,463

1
628,390
541,318

4
7,962,320
6,383,243

1
7,200,937
5,190,720

231
8,617,368
7,397,586

10
31,148
24,131

29
217,081
191,494

84
1,455,440
1,296,249

63
2,160,752
1,923,483

28
1,936,597
1,681,694

16
2.415,506
1,998,071

1
400,844
282,464

0
0
0

0
0
0

0
0
0

633
23,886,226
19,975,830

46
161,568
134,703

99
749,766
682,470

245
4,136,500
3,741,048

156
5,368,247
4,797.281

57
3,921,385
3.428.699

25
3,824,514
3.205,273

1
352,163
288,891

2
1,233,334
928,500

2
4,138,749
2,768,965

0
0
0

88
2,711,701
2,404,163

11
35,584
28,537

12
83,216
74,014

27
454,384
409,033

24
848.010
762,252

11
730,767
638,686

3
559,740
491,641

0
0
0

0
0
0

0
0
0

0
0
0

3
68,037
56,199

1
0
0

1
8,263
5,218

0
0
0

0
0
0

1
59,774
50,981

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

1

0
0
0

6
90,275
69,104

1
31,376
24,377

0
0
0

6
862,498
644,755

4
1,481.796
1,304,450

0
0
0

3
4,380,151
2,567,186

0
0
0

1
8,785
8,285

1
14,069
13,378

1
48,871
40,776

1
85.299
82,819

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

Washington

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
West Virginia

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
W isconsin

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Wyoming

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Other areas
Guam

Banks.............................................................
A ssets..........................................................
Deposits.......................................................
Puerto Rico

Banks.............................................................
A ssets..........................................................
Deposits.......................................................

21
6,846,096
4,609,872

-0

6
157,024
145,258

-0

-0

Virgin Islands

Banks.............................................................
A ssets..........................................................
Deposits.......................................................

2
-0

11ncludes nondeposit trust companies: 8 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 3 in Florida, 3 in Hawaii, 7 in Illinois, 1 in Indiana, 1 in Iowa, 1 in Massachusetts, 1 in Mississippi, 6 in Missouri, 3 in
Montana, 7 in Nebraska, 1 in New Hampshire, 1 in New Mexico, 5 in New york, 2 in Oklahoma, 2 in Pennsylvania, 1 in Rhode Island, 1 in South Dakota, 1 in Tennessee, 2 in Utah, 1 in Vermont, 1 in Virginia, 1 in
Washington, and 5 in Wisconsin.
2Excludes data for branches in U.S. territories of banks headquartered in the United States, and excludes data for 19 insured branches in New York of 3 insured nonmember banks in Puerto Rico and 1 insured branch
in California of an insured nonmember bank in Puerto Rico.
3Data are from fully consolidated Reports of Condition, including domestic and foreign offices.




FEDERAL DEPOSIT INSURANCE CORPORATION

Banks.............................................................
A ssets..........................................................
Deposits.......................................................

ASSETS AND LIABILITIES OF BANKS
Table 106.

Assets and liabilities of all commercial banks in the United States (States and other areas), June
30, 1978

Table 107.

Assets and liabilities of all commercial banks in the United States (States and other areas),
December 31, 1978

Table 108.

Assets and liabilities of all mutual savings banks in the United States (States and other areas),
June 30, 1978, and December 31, 1978

Table 109.

Assets and liabilities of insured commercial banks in the United States (States and other areas),
December call dates, 1973 — 1978
Assets and liabilities of insured commercial banks (domestic and foreign offices), United States
and other areas, 1973 — 1977
Assets and liabilities of insured commercial banks (domestic and foreign offices), United States
and other areas, December 31, 1978.
Assets and liabilities of insured mutual savings banks in the United States (States and other
areas), December call dates, 1973 — 1978
Percentages of assets, liabilities, and equity capital of insured commercial banks operating
throughout 1978 in the United States (States and other areas), December 31, 1978

Banks grouped by insurance status and class o f bank

Banks grouped by insurance status and class o f bank

Banks grouped by insurance status

Table 110.
Table 1 10A.
Table 111.
Table 112.

Banks grouped by amount o f assets

Table 113.

Percentages of assets and liabilities of insured mutual savings banks operating throughout 1978
in the United States (States and other areas), December 31, 1978

Table 114.

Distribution of insured commercial banks in the United States (States and other areas), Decem­
ber 31, 1978

Banks grouped by amount o f assets

Banks grouped according to amount o f assets and by ratios of selected items to assets or
deposits
Commercial banks
Insured banks having resources of $25 million or more are required to report
their assets and liabilities on the basis of accrual accounting. Where the results
would not be significantly different, at the option of the bank, trust department
accounts and certain other accounts may be reported on a cash basis. All
banks, regardless of size or accounting system, are required to report
unearned income on loans in the Report of Condition, Schedule A (loans). All
banks, regardless of size or accounting system, are required to report income
taxes on a current accrual basis. The income taxes must be computed on the
amount of income and expense included in the Report of Income.




Each insured bank having foreign offices is required to submit a consoli­
dated report including these offices; however, except for table 110 tables on
pages 143-164 contain only the domestic assets and liabilities of banks.
Beginning in 1969, all majority-owned premises subsidiaries are fully consolddated; other majority-owned domestic subsidiaries (but not commercial bank
subsidiaries) are consolidated if they meet any of the following criteria: (a) any
subsidiary in which the parent bank's investment represents 5 percent or more
of its equity capital accounts, (b) any subsidiary whose gross operating
revenues amount to 5 percent of the parent bank's gross operating revenues,
or (c) (beginning in December 1972) any subsidiary whose "Income (loss)

Mutual savings banks
The Reports of Condition and Income for mutual savings banks were revised
in major respects in 1971. Among the changes was a requirement for con­
solidating the accounts of branches and subsidiaries with the parent bank, on
a comparable basis with commercial bank reports (see above). A 1972 revi­
sion broadened the criteria for consolidated reporting; it also provided for the
reporting of investments in unconsolidated subsidiaries on an equity basis,
comparable with commercial bank reporting.
One objective of the revisions in 1971 was to provide a simplified reporting
form. To this end, the schedules for deposits and securities were condensed
and simplified.
Several changes were made in the reporting of specific items. Loans are
reported in somewhat more detail than formerly. In real estate loans, construc­
tion loans are shown separately, and loans secured by residential properties
are detailed as to those secured by 1- to 4-family properties and by multifami­
ly (5 or more) properties.
Another important change shifted various reserve accounts which had been
carried as deductions against assets (about $200 million in 1971) into the
surplus accounts.
Beginning June 30, 1972, mutual savings banks with total resources of $25
million or more are required to prepare Reports of Condition on the basis of
accrual accounting. All banks, regardless of size, are required to report income
taxes on an accrual basis.
Foreign assets of banks
Since June 30, 1974, a consolidated statement of domestic and foreign
assets and liabilities of U.S. banks has been published semiannually by the
Corporation in Assets and Liabilities —Commercial and Mutual Savings Banks.
(Beginning with June 30, 1977, foreign office assets and liabilities itemized by
State are published in Assets and Liabilities —Commercial and Mutual Savings
Banks.) In December 1978, a revised fully consolidated domestic and foreign
Report of Condition was instituted.
Sources of data
Insured banks: see p. 166; noninsured banks: State banking authorities and
reports from individual banks.

FEDERAL DEPOSIT INSURANCE CORPORATION



"subordinated notes and debentures," to be shown in the liabilities section of
the Report of Condition. Accordingly, "capital accounts" became the "equity
capital" section.
In 1978 an abbreviated Report of Condition was instituted for banks with
less than $100 million in total consolidated assets. Beginning with December
1978, other liabilities for borrowed money include interest-bearing demand
notes issued to the U.S. Treasury.
Asset and liability data for noninsured banks are tabulated from reports per­
taining to the individual banks. In a few cases, these reports are not as detailed
as those submitted by insured banks.
Additional data on assets and liabilities of all banks as of December 31,
1977, and June 30, 1978, are shown in the Corporation's semiannual publica­
tion Assets and Liabilities—Commercial and Mutual Savings Banks.

142

before income taxes and securities gains or losses” amounts to 5 percent or
more of the "income (loss) before income taxes and securities gains or
losses" of the parent bank. Beginning in 1972, investments in subsidiaries not
consolidated in which the bank directly or indirectly exercises effective control
are reported on an equity (rather than cost) basis with the investment and
undivided profits adjusted to include the parent's share of the subsidiaries' net
worth.
In the case of insured banks with branches outside the 50 States, net
amounts due from such branches are included in "Other assets" and net
amounts due to such branches are included in "Other liabilities." Branches of
insured banks outside the 50 States are treated as separate entities but are not
included in the count of banks. Data for such branches are not included in the
figures for the States in which the parent banks are located.
From 1969 through 1975, all reserves on loans and securities, including the
reserves for bad debts set up pursuant to Internal Revenue Service rulings,
were included in "Reserves on loans and securities" on the liability side of the
balance sheet. Beginning in 1976, the IRS reserve is divided as follows, (a) the
"valuation" portion of the reserve (plus any other loan loss reserve) is shown
on the asset side of the face of the report as an offset to gross loans; (b) the
"deferred income tax" portion is included in "other liabilities"; and (c) the
"contingency" portion is included in "undivided profits," or "reserves for con­
tingencies and other capital reserves" (preferably the former). The valuation
reserve on securities, formerly shown on the liabilities side, is included in
"reserve for contingencies and other capital reserves" beginning in 1976.
"Unearned income on loans," previously reported in "other liabilities," is
reported separately as an exclusion from total loans and total assets beginning
December 3 1 ,1 9 7 6 .
Individual loan items are reported gross. Instalment loans, however, are
ordinarily reported net if the instalment payments are applied directly to the
reduction of the loan. Such loans are reported gross if, under contract, the
payments do not immediately reduce the unpaid balances of the loan but are
assigned or pledged to assure repayment at maturity.
The category "Trading account securities" was added to the condition
report of commercial banks in 1969 to obtain this segregation for banks that
regularly deal in securities with other banks or with the public. Banks occa­
sionally holding securities purchased for possible resale report these under
"Investment securities."
Assets and liabilities held in or administered by a savings, bond, insurance,
real estate, foreign, or any other department of a bank, except a trust depart­
ment, are consolidated with the respective assets and liabilities of the com­
mercial department. "Deposits of individuals, partnerships, and corporations"
include trust funds deposited by a trust department in a commercial or savings
department. Other assets held in trust are not included in statements of assets
and liabilities.
Demand balances with, and demand deposits due to, banks in the United
States, except private banks and American branches of foreign banks, exclude
reciprocal interbank deposits. (Reciprocal interbank deposits arise when two
banks maintain deposit accounts with each other.)
the caption "Capital notes and debentures" was changed to
In 1976,

Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1978
BANKS G O P BY INSURANCE STATUS AND CLASS O BANK
R U ED
F
(Amounts in thousands of dollars)
Insured banks

Assset, liability or expense item

Noninsured banks

Members of
Federal Reserve System

Total

Not
members
Total

Total
Total

National

State

Banks
ot
deposit

Nondeposit
trust
companies2

System

1,226,811,222

1,181.635.323

893,037,057

675,652,397

217.384,660

288,598,266

45,175.899

44,520.620

655.279

Cash and due from banks— total.........................................................................

166.914,083

158,605.576

134,197.812

91,140.392

43,057,420

24,407,764

8.308.507

8.256,580

51,927

Cash items in process of collection..............................................................................
Demand balances with commercial banks in the United States.......................
All other balances with depository institutions in the U.S. and with
banks in foreign countries...............................................................................................
Balances with Federal Reserve Banks...........................................................................
Currency and coin...................................................................................................................

69,513,707
42,125,244

69,406,346
38,341,352

66,610,739
23.267,303

42,637,380
14,887,500

23,973,359
8,379,803

2,795,607
15,074,049

107,361
3,783,892

107,066
3.746,362

295
37,530

13,739,692
29,573,900
11,961,540

9,344,894
29,565,825
11,947,159

6,047,769
29,565,777
8,706,224

3,980.366
22,824,689
6,810,457

2,067,403
6,741,088
1,895,767

3,297,125
48
3,240,935

4,394,798
8,075
14,381

4,389,000
0
14,152

5,798
8,075
229

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

265.265.377

262,154,356

180,259,997

138,532.714

41,727,283

81,894,359

3,111,021

2,979,465

U.S. Treasury securities........................................................................................................
Obligations of other U.S. Government agencies and corporations3.................
Obligations of States and political subdivisions in the U.S.................................
All other securities................................................................................................................

131,556

94,507,369
38,941,568
116,823,564
14,992,876

93,457,638
38,566,812
115,911,368
14,218,538

63,361,685
24,217,200
81,010,888
11,670,224

47.530,326
19,599,400
62,967,559
8,435,429

15,831,359
4,617,800
18,043,329
3,234,795

30,095,953
14,349,612
34,900,480
2,548,314

1.049,731
374,756
912,196
774,338

1,007,896
372,526
877,808
721,235

41,835
2,230
34,388
53,103

190,809

Federal funds sold and securities purchased under agreements
to r e s e ll....................................................................................................................

49,129,592

44,006,310

34,561,671

27,858,330

6,703.341

9,444,639

5,123,282

4,932,473

Loans, net....................................................................................................................

657,146,270

633,416.957

471,570,168

365,803,116

105,767,052

161,846,789

23,729,313

48,440

Plus: Allowances for possible loan losses..................................................................
Loans, total..................................................................................................................................
Plus: Unearned income on lo a n s...................................................................................

23,680,873

7,387,279
664,533,549
16,293,868

7,206,816
640,623,773
16,233,433

5,680,613
477,250,781
10,830,179

4,244,820
370,047,936
8,999,537

1,435,793
107,202,845
1,830,642

1,526,203
163,372,992
5,403,254

180,463
23,909,776
60,435

180,035
23,860,908
60,435

428
48,868
0

Loans, g ro ss...............................................................................................................

680,827,417

656.857.206

488,080.960

379.047.473

109,033,487

168,776,246

23,970,211

Real estate loans — total.....................................................................................................
Construction and land development...........................................................................
Secured by farmland........................................................................................................
Secured by 1—4 family residential properties....................................................
Secured by multifamily (5 or more) residential properties.........................
Secured by nonfarm nonresidential properties....................................................
Loans to financial institutions.........................................................................................
Loans for purchasing or carrying securities............................................................
Loans to finance agricultural production and other loans to farmers...........
Commercial and industrial loans...................................................................................
Loans to individuals—total...............................................................................................
To purchase private passenger automobiles on instalment basis..............
Credit cards and related plans....................................................................................
T purchase mobile homes (excluding travel trailers).....................................
o

23.921.343

48,868

194,466,700

194,072,142

132,711,372

107,117,013

25,594,359

61,360,770

394,558

24,093,792
8,206,458
105,954,695
5,365,072
50,846,683

390,178

4,380

24,033,847
8,187,723
105,727,323
5,344,087
50,779,162

17,943,749
3,565,146
73,461,997
3,901,064
33,839,416

13,991,371
2,937,594
60.365,313
2,798,069
27,024,666

3.952.378
627.552
13,096,684
1,102,995
6,814,750

6,090,098
4.622,577
32,265,326
1,443,023
16,939,746

59,945
18,735
227,372
20,985
67,521

45,109,367
16,187,862
27,070,112
224,500,545
154,834,239

59,945
18,212
224,084
20,602
67,335

0
523
3.288
383
186

35,637,177
15,677,418
27,011,475
212,791,169
154,628,563

33,494,435
14,647,374
14,813,042
171,842,593
106,084,221

22,717,002
8,521,451
12,919,968
130,475,963
86,634,049

10.777,433
6,125,923
1,893,074
41,366,630
19,450,172

2,142,742
1,030,044
12,198,433
40,948,576
48,544,342

9,472,190
510,444
58,637
11,709,376
205,676

56.132,760
20,258,046
9,387,071

9,472,190
505,539
58,633
11,709,093
205,566

0
4,905
4
283
110

56,088,199
20,247,198
9,386,253

35,799,321
17.816,200
6,553,424

29,705,735
14,504,290
5,749,721

6,093,586
3,311,910
803.703

20,288,878
2,430,998
2,832,829

44,561
10,848
818

44,512
10,848
813

ASSETS A D LIABILITIES O BANKS
N
F

Total a s s e t s ..................................................................................................................

49
0
5

All other instalment loans for household, family and other personal
expenditures......................................................................................................................
Single payment loans for household, family and other personal
expenditures.........................................................................................................................

39,499,733

39,405,897

25,747.957

20,816.194

4,931,763

13,657,940

93,836

93,825

11

29,556,629

29,501,016

20,167,319

15.858,109

4,309,210

9,333,697

55,613

55,568

45

18,658,592

17.039,262

14,487,923

10,662,027

3,825,896

2,551,339

1,619,330

1,580,144

39,186

Total loans and secu rities.................................................................................

971.541,239

939,577,623

686,391,836

532.194.160

154,197.676

253,185,787

31,963,616

31.592.811

370,805




143

All other loans............................................................................................................................

Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
144

JU N E 3 0 , 1 9 7 8 — C O N TIN U ED
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)

Insured banks

Assset, liability or expense item

Noninsured banks

Members of
Federal Reserve System

Total
Total
Total

National

State

Not
members
of F.R.
System

Total

Banks
of
deposit

Nondeposit
companies2

6,308,427

6,307,591

5,923,957

4,706,740

1,217,217

383,634

836

725

111

19,553,205
2,992,379
59,501,889

19,445,038
2,958,975
54,740,520

14,126,179
2,435,518
49,961,755

11,353,602
1,829,256
34,428,247

2,772,577
606,262
15,533,508

5,318,859
523,457
4,778,765

108,167
33,404
4,761,369

87,381
15,943
4,567,180

20,786
17,461
194,189

Total liabilities and equity capital..........................................................................

1,226,811,222

1,181,635,323

893,037,057

675,652,397

217,384,660

288,598.266

45,175,899

44.520,620

655.279

Business and personal deposits— to t a l.............................................................

814,625,532

800,407,750

576,204,271

448.441,174

127,763,097

224,203.479

14,217,782

14,191.743

26.039

Individuals, partnerships, and corporations — demand...........................................
Individuals, partnerships, and corporations—savings.........................................
Individuals and nonprofit organizations—savings.................................................
Corporations and other profit organizations —savings...........................................
Individuals, partnerships, and corporations —time....................................................
Deposits accumulated for payment of personal loans —tim e.............................
Certified and officers' checks, travelers’ checks, letters of
credit — demand....................................................................................

282,856,150

281,143,967

208,191,570

159,693,042

48,498,528

72,952,397

1,712,183

1,691,160

21,023

221.815,219
211,001,245

221.180.985
210,391,492

151.943.732
144.506.281

121.651.070
115.834,518

30.292.662
28.671.763

69,237,253
65.885.211

634.234
609,753

632.270
607.789

1.964
1.964

10,813,974
291,860,056
90,163

10,789,493
283,063,584
90,163

7,437,451
204,517,200
72,141

5,816,552
160,091,782
53,791

1,620,899
44,425,418
18,350

3,352,042
78,546,384
18,022

24,481
8,796,472
0

24,481
8,796,188
0

0
284
0
2,768

18,003,944

14,929,051

11,479,628

6,951,489

4,528,139

3,449,423

3,074,893

3,072,125

88,961,056

88,434,444

60,272,525

48,781,923

11,490,602

28,161.919

526,612

526,577

35

States Government —demand..............................................................................
States Government —savings..............................................................................
States Government —time....................................................................................
and political subdivisions — demand................................................................
and political subdivisions—savings...............................................................
and political subdivisions —time.....................................................................

8,225,839
63,022
999,270
18,527,984
4,553,165
56,591,776

8,207,390
63,022
999,000
18,441,142
4,531,310
56,192,580

5,877,197
52,931
793,494
12,463,533
2,884,063
38,201,307

4,719,195
43,766
703,821
10,009,601
2,135,267
31,170,273

1,158,002
9,165
89,673
2,453,932
748,796
7,031,034

2,330,193
10,091
205,506
5,977,609
1,647,247
17,991,273

18,449
0
270
86,842
21,855
399,196

18,414
0
270
86,842
21,855
399,196

35
0
0
0
0
0

All other deposits— total.........................................................................................

70 ,5 53 ,85 7

63 ,9 38 ,05 0

61 .1 28 ,72 9

32 ,9 79 ,28 5

2 8 ,1 49 ,44 4

2,809,321

6 ,6 1 5 ,8 0 7

6 .5 9 4 ,0 3 8

21,769

Demand........................................................................................................................................
Savings........................................................................................................................................
Tim e..............................................................................................................................................

49,679,789
34,272
20,839,796

47,165,399
34,074
16,738,577

45,643,969
30,809
15,453,951

22,456,549
18,482
10,504,254

23,187,420
12,327
4,949,697

1,521,430
3,265
1,284,626

2,514,390
198
4,101,219

2,492,621
198
4,101,219

21,769
0
0

Government deposits— t o t a l.................................................................................

United
United
United
States
States
States

Total deposits.............................................................................................................

974,140,445

952,780,244

697,605,525

530,202,382

167,403,143

255,174,719

21,360,201

21,312,358

47,843

Demand........................................................................................................................................
Savings........................................................................................................................................
Time..............................................................................................................................................

377,293,706
226,465.678
370,381.061

369,886.949
225,809.391
357.083.904

283.655.897
154.911.535
259.038.093

203.829.876
123.848.585
202.523.921

79.826.021
31.062,950
56,514.172

86.231.052
70.897.856
98.045.811

7.406.757
656,287
13.297.157

7,361,162
654.323
13.296.873

45.595
1.964
284

162,460,020

139,793,108

129,301,431

95,334,106

33,967,325

10,491,677

22,666.912

22,334,098

93,463,393

89,240,327

83,081,243

63,190,787

19,890,456

6,159,084

4,223,066

4,223,066

0

14,004,039
1,762,742
53,229,846

9,444,033
1,757,257
39,351,491

9,031,947
1,425,462
35,762,779

5,788,01 1
1,006,172
25,349,136

3,243,936
419,290
10,413,643

412,086
331,795
3,588,712

4,560,006
5,485
13,878,355

4,495.302
816
13,614,914

64,704
4,669
263,441

Miscellaneous liabilities— total............................................................................

Federal funds purchased and securities sold under agreements
to repurchase.................................................................................................................
Interest bearing demand notes issued to the U.S. Treasury and other
liabilities for borrowed money....................................................................................
Mortgage indebtedness and liability for capitalized le ases................................
All other liabilities.................................................................................................................




332,814

FEDERAL DEPOSIT INSURANCE CORPORATION

Lease financing receivables..................................................................................................
Bank premises, furniture and fixtures, and other assets representing
bank premises..........................................................................................................................
Real estate owned other than bank premises................................................................
All other a sse ts..........................................................................................................................

Total liabilities (excluding subordinated notes and debentures)..........

1,136,600,465

1,092,573,352

826,906,956

625,536,488

201,370.468

265,666,396

44,027,113

43,646,456

Subordinated notes and debentures....................................................................

5,874,090

5,794,411

4,440,123

3,095,982

1,344,141

1,354,288

79,679

78,327

1,352

Equity capital— total................................................................................................

84,336,667

83,267,560

61,689,978

47,019,927

14,670,051

21,577,582

1,069,107

795,837

273,270

Preferred stock— par value...............................................................................................
Preferred stock —shares outstanding (in thousands)..............................................
Common stock —par value..................................................................................................
Common stock —shares outstanding (in thousands)..............................................
Surplus....................................................................................................................................
Undivided profits and reserve for contingencies and other
capital reserves...........................................................................................................

107,486
7,333
17,960,748
1,916,794
32,478,290

101,245
7,252
17,765,826
1,905,831
31,956,866

32,605
3,725
12,743,176
1,274,992
22,905,774

26,193
640
9,740,275
1,038,952
16,878,681

6,412
3,085
3,002,901
236,040
6,027,093

68,640
3,527
5,022,650
630,839
9,051,092

6,241
81
194,922
10,963
521,424

5,840
58
141,674
6,913
466,175

401
23
53.248
4,050
55,249

33,790,143

33,443,623

26,008,423

20,374,778

5,633,645

7,435,200

346,520

182,148

164,372

13.61

13.42

15.03

13.49

19.81

8.46

18.39

18.55

7.92

10.88
10.74

11.17
11.01

9.81
10.38

9.94
10.57

9.41
9.79

15.40
12.98

3.15
3.73

3.10
3.59

6 72
13.35

58.17
6.60
6.87

57.94
6.45
7.05

57.31
7.48.
6.91

58.89
7.12
6.96

52.40
8.60
6.75

59.88
3.28
7.48

64.27
10.46
2.375

64.67
10.09
1.795

36.58
35.42
41.70

8.74

8.96

8.87

8.76

9.26

9.22

2.985

2.265

48.67

Standby letters of credit —total...................................................................................
Time certificates of deposits in denominations of $100,000 or more.................
Other time deposits in amounts of $100,000 or m
ore ...........................................

18,973,556
158,075,933
27,893,775

17,818,040
153,217,336
25,990,674

16,749,967
124,263,101
22,275,385

11,664,412
91,354,122
18,485,486

5,085,555
32,908,979
3,789,899

1,068,073
28,954,235
3,715,289

1,155,516
4,858,597
1,903,101

1,155,516
4,858,597
1,902,817

0
0
284

Number of banks at end of period......................................................................................

14,729

14,395

5,621

4,616

1,005

8,774

334

246

88

380,657

PERCENTAGES
Of total assets:

Of total assets other than cash and U.S. Treasury securities:

Total equity capital^.........................................................................................
Memoranda

^Includes asset and liability figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital is not allocated to these branches by the parent banks.
2Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.
3Because noninsured commercial banks are not required to submit Schedule B, "Securities— Distribution by Remaining Maturity, “ these distributions are not available for noninsured banks and for "All commercial
banks.”
4 0n ly asset and liability data are included for branches located in "other areas” of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded from the computa­
tion of ratios of equity capital to assets.
5Data for branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of deposit and in "to ta l” columns.
Note. Further information on the reports of assets and liabilities of banks may be found on pp. 141-142.

145




ASSETS A D LIABILITIES O BANKS
N
F

Cash and due from depository institutions....................................................
U.S. Treasury securities and obligations of other U.S. Government
agencies and corporations..................................................................................................
All other securities...................................................................................................................
Loans (including federal funds sold and securities purchased under
agreements to resell) ..............................................................................
All other a ssets................................................................................................................
Total equity capital^.....................................
................................

146

Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1978
BANKS G O P BY INSURANCE STATUS AND CLASS O BANK
R U ED
F
(Amounts in thousands of dollars)
Insured banks

Noninsured banks

National

State

Total
Total

Total

Banks
of
deposit

Nondeposit
companies

Total a s s e t s ..................................................................................................................

1,329,012,482

1,273,189,105

961,885,965

726.298.401

235.587.564

311,303.140

55.823,377

54.899,771

923.606

Cash and due from depository institutions—total.......................................................
Cash items in process of collection..............................................................................
Demand balances with commercial banks in the
United States..........................................................................................................................
All other balances with depository institutions
in the U.S. and with banks in foreign countries.........................................................
Balances with Federal Reserve Banks...........................................................................
Currency and coin....................................................................................................................

188.549,964
75,434,689

178,327,313
75,291,809

150,423,347
72,337,585

103,043,189
47,859,893

47,380,158
24,477,692

27,903,966
2,954,224

10,222,651
142,880

10,059,115
142,536

163,536
344

46,970,200

42,572,323

25,548,882

15,277,879

10,271,003

17,023,441

4,397,877

4,245,277

152,600

16,148,997
34,400,640
15,595,438

10,493,618
34,398,107
15,571,456

6,554,683
34,398,101
11,584,096

4,415,649
26,442,687
9,047,081

2,139,034
7,955.414
2,537,015

3,938,935
6
3,987,360

5,655,379
2,533
23,982

5,646,147
1,234
23,921

9,232
1,299
61

Securities— T o t a l.....................................................................................................

2 7 2 ,1 5 7 ,4 7 9

26 8.77 7 ,8 5 6

183,888,222

14 0,68 1 .3 5 9

4 3 .2 0 6 .8 6 3

8 4 ,8 8 9 .6 3 4

3 .3 7 9,6 23

3 ,0 7 2 ,3 0 0

307,323

U.S. Treasury securities........................................................................................................
Obligations of other U.S. Government
agencies and corporations..............................................
.................
Obligations of States and political subdivisions
in the U.S..................................................................................................................................
All other securities....................................................................................................................

90,644,189

89,699,426

60,118,003

45,285,125

14.832,878

29,581,423

944,763

873,515

71,248

42,704,588

42,316,375

26,513,332

21,308,168

5,205,164

15,803.043

388,213

380,694

7,519

124,577,088
14,231,614

123,510,734
13,251,321

86,434,476
10,822,411

66,743,327
7,344,739

19,691,149
3,477,672

37,076,258
2,428,910

1,066,354
980,293

930,876
887,215

135,478
93,078

Federal funds sold and securities purchased under
agreements to r e s e ll..............................................................................................

54,999,683

48.755,878

37,569,069

31,023,186

6.545.883

11,186.809

6,243.805

6.131,115

112,690

Loans, net.......................................................................................................................

7 1 1,8 8 0 ,2 9 3

6 8 2,8 6 6 .6 5 4

5 0 7 ,67 2 ,2 5 5

3 9 2 .7 5 1 .2 4 3

1 1 4.9 2 1 ,0 1 2

1 7 5 .1 9 4 .3 9 9

2 9 ,0 1 3 .6 3 9

2 8 ,9 56 ,37 1

5 7 ,268

Plus: Allowances for possible loan losses.....................................................................
Loans, total.....................................................................................................................................
Plus-. Unearned income on lo a n s.......................................................................................

7,891,213
719,771,506
17,789,386

7,714,708
690,581,362
17,726,868

6,053,426
513,725,681
11,822,995

4,565,741
397,316,984
9,788,830

1,487,685
116,408,697
2,034,165

1,661,282
176,855,681
5.903,873

176.505
29,190,144
62,518

175,923
29,132,294
62,198

582
57,850
320

Loans, g ro ss..................................................................................................................

737,560,894

708,308.232

525.548.678

407.105.816

118.442.862

182.759,554

29.252.662

29.194.492

58.170

Real estate loans —Total........................................................................................................
Construction and land development..............................................................................
Secured by farmland...........................................................................................................
Secured by 1-4 family residential properties..........................................................
Secured by multifamily (5 or more) residential properties.............................
Secured by nonfarm nonresidential properties.......................................................

214,050,007

213,625,237

145,814,742

118,039,653

27,775.089

67,810,495

424,770

419,002

5,768

27,323,235
8,501,381
118,719,540
5,742,247
53,763,604

27,269,354
8,480,930
118.476,776
5,723,046
53,675,131

15,978,933
3,057,249
67,711,791
3,013,995
28,277,685

4,347,605
626.867
14.437.879
1.092.997
7.269.741

6,942.816
4.796.814
36,327,106
1,616,054
18.127,705

53,881
20,451
242.764
19.201
88.473

53.783
19,934
239.507
18.823
86.955

98
517
3.257
378
1.518




20,326,538
3,684,116
82,149,670
4,106,992
35,547,426

FEDERAL DEPOSIT INSURANCE CORPORATION

Total

Asssel, liability or expense item

Not
members
of F.R.
System

Members of
Federal Reserve System

55,532,743
14,854,702

43.459,007
14,380,222

41,172,828
13,338,296

27,193,870
7,983,537

13,978,958
5,354,759

2,286,179
1,041,926

12,073,736
474,480

12,069,448
472,580

4,288
1,900

28,250,090
236,856,746

28,191,763
223,243,865

15,464,961
179,584,844

13,430,975
135,756,018

2,033,986
43,828,826

12,726,802
43,659,021

58,327
13,612,881

58,327
13,610,791

0
2,090

Loans to individuals—total....................................................................................

167,937,855

167,675,391

115,239.517

93,793,563

21,445,954

52,435,874

262,464

261,278

1,186

To purchase private passenger automobiles on installment basis.
Credit cards and related plans.....................................................................
To purchase mobile homes (excluding travel trailers).......................
All other instalment loans for household, family
and other personal expenditures................................................................
Single payment loans for household, family and other
personal expenditures.......................................................................................

61,107,896
24,508,763
9,736,157

61,051,302
24,496,572
9,734,878

39,018,985
21,689,272
6,677,296

32,301,433
17,600,614
5.897,301

6,717,552
4,088,658
779,995

22,032,317
2,807,300
3,057,582

56,594
12,191
1,279

56,077
12.191
1,279

517
O
0

41,971,994

41,853,614

27,323,946

21,753,399

5,570,547

14,529,668

118,380

117,897

483

30,613,045

30,539.025

20,530,018

16,240,816

4,289,202

10,009,007

74,020

73,834

186

All other loans..............................................................................................................

20,078,751

17,732,747

14,933,490

10,908,200

4,025,290

2,799,257

2,346,004

2,303,066

42,938

Total loans and securities..............................................................................
Lease financing receivables.................................................................................
Bank premises, furniture and fixtures, and other
assets representing bank premises................................................................
Real estate owned other than bank premises..............................................
All other a ss e ts........................................................................................................

1,039,037,455

1.000,400,388

729,129.546

546,455.788

164,673,758

271.270.842

38.637,067

38,159.786

477.281

7,660,080

7,657,996

7,084,293

5,567,229

1,517,064

573,703

2,084

2,084

0

20,671,128
2,517,740
70,756,115

20,551,097
2,475,901
63,776,410

14,843,212
1,985,969
58,419,598

11,968,634
1,544,012
39,719,549

2,874,578
441,957
18,700,049

5,707,885
489,932
5,356,812

120,031
41,839
6,799,705

92,425
19,289
6,567,072

27,606
22,550
232,633

Total liabilities and equity capital...................................................................

1,329,012,482

1,273,189,105

961,885,965

726.298.401

235,587,564

311.303,140

55,823,377

54,899.771

923.606

Business and personal deposits—total..........................................................
Individuals, partnerships, and corporations—demand..........................
Individuals, partnerships, and corporations—savings..........................
Individuals and nonprofit organizations—savings................................
Corporations and other profit organizations—savings.......................
Individuals, partnerships, and corporations—time...................................
Deposits accumulated for payment of personal
loans—time...........................................................................................................
Certified and officers' checks, travelers' checks,
letters of credit—demand..............................................................................

875,036,279
311,312,230
217,165,009

857,642,324
309,347,998
216,503,446

615,760,269
228,317,516
147,023,837

480,270,853
175,953,695
118,019,703

135,489,416
52,363,821
29,004,134

241,882,055
81,030,482
69,479,609

17,393,955
1,964,232
661,563

17,346,200
1,921,131
661,431

47,755
43,101
132

206,185,405
10,979,604

205,568,072
10,935,374

139,673,675
7,350,162

112,232,683
5,787,020

27.440,992
1,563,142

65,894,397
3,585,212

617,333
44,230

617,201
44,230

132
0

327,425,692

316,146,234

228,399,626

178,960,744

49,438,882

87,746,608

11,279,458

11,279,458

0

109,598

109,598

87,539

64,277

23,262

22,059

0

0

0

19,023,750

15,535,048

11,931,751

7,272,434

4,659,317

3,603.297

3,488,702

3,484,180

4,522

Government deposits—t o t a l..............................................................................
United States Government—demand................................................................
United States Government—savings................................................................
United States Government—tim e.....................................................................
States and political subdivisions—demand.................................................
States and political subdivisions—savings.................................................
States and political subdivisions—time..........................................................

88,767,961

88,240.496

59.254,334

47,962,022

11,292.312

28.986.162

527,465

526.593

872

2,732,227
82,737
866,499
19,335,289
4,314,253
61,436,956

2,725,862
82,733
866,499
19,202,176
4,298,654
61,064,572

1,900,487
57,496
675,944
12.667,760
2,603,398
41,349,249

1,518,949
51,049
520,376
10,367,327
1,995,931
33,508,390

381,538
6,447
155,568
2,300,433
607,467
7,840,859

825,375
25,237
190,555
6,534,416
1,695,256
19,715.323

6,365
4
0
133,113
15,599
372,384

6,362
0
0
133,113
14,734
372,384

3
4
0
0
865
0

All other deposits—total.......................................................................................
Demand.........................................................................................................................
Savings..........................................................................................................................
Tim e...............................................................................................................................

79.445,876

70,501,728

67,392,909

35,969.502

31.423.407

3,108.819

8,944,148

8.939.096

5,052

56,136,821
45,369
23,263,686

53,474,157
43,766
16,983,805

51,656,332
30,689
15,705,888

26,185,705
23,665
9,760,132

25,470,627
7,024
5,945,756

1,817,825
13,077
1,277,917

2,662,664
1,603
6,279,881

2,657,612
1,603
6,279,881

ASSETS AN LIABILITIES O BANKS
D
F

Loans to financial institutions..............................................................................
Loans for purchasing or carrying securities.................................................
Loans to finance agricultural production and
other loans to farmers..........................................................................................
Commercial and industrial loans.....................................................................

5,052
0
0

147




148

Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
(Amounts in thousands of dollars)
Noninsured banks

Insured banks

Assset, liability or expense item

Not
members

Members of
Federal Reserve System

Total

Total
Total

National

State

System

Banks
of
deposit

Nondeposit
companies

Total deposits................................................................................................................

1,043,250,116

1,016,384,548

742,407,512

564,202,377

178,205,135

273.977,036

26,865.568

26,811,889

53,679

Demand...........................................................................................................................................
Savings...........................................................................................................................................
Tim e.................................................................................................................................................

408,540,317
221,607,368
413,102,431

400,285,241
220,928.599
395,170,708

306,473,846
149,715,420
286,218,246

221,298,110
120,090,348
222,813,919

85,175,736
29,625,072
63,404,327

93,811.395
71,213,179
108,952,462

8,255,076
678,769
17,931,723

8,202.398
677,768
17.931,723

52,678
1,001
0

Miscellaneous liabilities— total...............................................................................

191,280,293

163,522,078

150,643,528

109,823,930

40,819,598

12,878.550

27.758,215

27,182.693

575,522

96,283,820

91,291,670

84,973,167

64.908,212

20,064,955

6,318,503

4,992,150

4.980,833

11,317

Federal funds purchased and securities sold under
agreements to repurchase....................................................
Interest bearing demand notes issued to the U.S.
Treasury and other liabilities for borrowed money. . . .
..............
Mortgage indebtedness and liability for
capitalized leases....................................................................................................................
All other liabilities....................................................................................................................

29,287,827

22,791,813

20,723,962

13,266,921

7,457,041

2,067,851

6,496,014

6,419,012

77,002

2,042,992
63,665,654

2,035,029
47,403,566

1,655,394
43,291,005

1,232,722
30,416,075

422,672
12,874,930

379,635
4,112,561

7,963
16,262,088

739
15,782,109

7,224
479,979

Total liabilities (excluding subordinated notes
and deb entu res)...................................................................................................

1,234,530,409

1,179,906,626

893,051,040

674,026,307

219,024,733

286,855,586

54,623,783

53.994,582

629,201

Subordinated notes and debentures.......................................................................................

5,945,067

5,864,838

4,401,101

3,065,280

1,335,821

1,463,737

80,229

78,915

1,314

Equity capital— total...................................................................................................

88,537,005

87,417,641

64,433,824

49,206,807

15,227,017

22,983,817

1,119.364

826,273

293,091

Preferred stock— par value..................................................................................................
Preferred stock—shares outstanding (in thousands).................................................
Common stock—par value.....................................................................................................
Common stock—shares outstanding (in thousands).................................................
Surplus...........................................................................................................................................
Undivided profits and reserve for contingencies
and other capital reserves..............................................

120.187
5,948
18,355,101
2,254,594
33,714,192

113,851
5,866
18,157,997
2,244,476
33,202,557

32,170
1,632
12,940,287
1,303,588
23,493,743

28,772
1,151
9,911,602
1,054,938
17,290,549

3,398
481
3,028,685
248,650
6,203,194

81,681
4,234
5,217,710
940,888
9,708,814

6,336
82
197,104
10,118
511,635

5,934
59
142,399
6,779
453,315

402
23
54,705
3,339
58,320

36.347.525

35,943,236

27,967,624

21,975,884

5,991,740

7,975,612

404,289

224,625

179,664




FEDERAL DEPOSIT INSURANCE CORPORATION

D E C E M B E R 3 1 , 19 7 8 - C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

Percentages
Of total assets:

Cash and due from depository institutions.................
U.S. Treasury securities and obligations of other
U.S. Government agencies and corporations................................................................
All other securities....................................................................................................................
Loans (including Federal funds sold and securities
purchased under agreements to rese ll)........................................................................
All o*her a sse ts..........................................................................................................................
Total equity capital....................................................................................................................

14.19

14.01

15.64

14.19

20.11

8.96

18.31

18.32

17.71

10.03
10.44

10.37
10.74

9.01
10.11

9.17
10.20

8.51
9.83

14.58
12.69

2.39
3.67

2.28
3.31

8.53
24.75

58.30
7.04
6.66

58.07
6.81
6.87

57.31
7.93
6.70

58.98
7.47
6.78

52.19
9.36
6.47

60.40
3.36
7.38

63.48
12.16
2.01

64.23
11.85
1.51

18.46
30.55
31.73

8.44

8.70

8.58

8.51

8.80

9.06

2.51

1.88

42.55

Of total assets other than cash and U.S. Treasury securities:
Total equity capital...................................................................................................

Standby letters of credit —total...................................
Time certificates of deposit in denominations of
$100,000 or m ore....................................................................................................................
Other time deposits in amounts of $100,000 or m ore..............................................

20,249,831

19,019,271

17,790,776

11,693,263

6,097,513

1,228,495

1,230,560

1,230,560

0

184,551,337
29,421,386

178,1 19,339
26,827,041

143,905,524
23,133,864

105,680,494
19,274,722

38,225,030
3,859,142

34,213,815
3,693,177

6,431,998
2,594,345

6,431,998
2,594,345

0
0

Number of banks at end of period.......................................................................................

14,740

14,391

5,564

4,564

1,000

8,827

349

262

87

149




ASSETS A D LIABILITIES O BANKS
N
F

Memoranda

150

Table 108. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1978, AND DECEMBER 31, 1978
BANKS G O P BY INSURANCE STATUS
R U ED
(Amounts in thousands of dollars)
December 31, 1978

June 30, 1978
Asset, liability, or surplus account item

Insured

Noninsured

Insured

Noninsured

Total

Total a s s e ts ................................................................................................................................................................

153,165,725

137,667,745

15,497,980

158,216,204

142,352,794

15,863,410

Cash, balances with banks, and collection item s— total.......................................................................

2,198,250

1,975,613

222,637

3,779,649

3,570,970

208,679

Currency and co in ...............................................................................................................................................................
Demand balances with banks in the United S ta tes.............................................................................................
Other balances with banks in the United States..................................................................................................
Cash items in process ^ collection............................................................................................................................

424,967
779,348
773,553
220,382

353,289
660,657
766,938
194,729

71,678
118,691
6,615
25,653

478,801
968,325
2,152,100
180,423

411,640
861,088
2,136,238
162,004

67,161
107,237
15,862
18,419

47,540,306

43,252,114

4,288,192

47,847,827

43,546,458

4,301,369

United States Government and agency securities —to ta 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.......................................................................................................................

17,768,774

15,867,408

1,901,366

18,032,040

16,215,435

1,816,605

1,550,037
4,130,637
1,971,321
10,116,779

1,354,087
3,531,436
1,674,630
9.307,255

195.950
599,201
296.691
809.524

1.595.436
3.836,804
1,796,268
10,803,532

1,371,969
3,270,419
1,517,745
10,055,302

223.467
566.385
278.523
748.230

Corporate bonds.....................................................................................................................................................................
State, county, and municipal obligations....................................................................................................................
Other bonds, notes, and debentures............................................................................................................................

17,869,546
3,015,514
4,075,434

16,716,233
2,948,680
3,634,645

1,153,313
66,834
440,789

17,390,387
3,358,312
4,280,175

16,376,504
3,297,215
3,587,862

1,013,883
61,097
692,313

Corporate stock —total.......................................................................................................................................................
Bank.......................................................................................................................................................................................
Other....................................................................................................................................................................................

4,811,038

4,085,148

725,890

4,786,913

4,069,442

717,471

557.871
4,253,167

395.171
3.689.977

162.700
563.190

554,289
4,232,624

387,736
3,681,706

166.553
550.918

Federal funds sold and securities purchased under agreements to re se ll........................................

3,360,326

3,025,758

334,568

2,124,608

1,889,991

234,617

Other loans— to ta l..............................................................................................................................................

96,015,044

85,708,417

10,306,627

100,265,735

89,478,402

10,787,333

Real estate loans—total....................................................................................................................................................
Construction loans..........................................................................................................................................................
Secured by farmland..............................................................................................................................................

91,626,048

95,217,878

85,110,267

10,107,611

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 VA..........................................................................................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration..........................................................................................
Not insured by FHA...........................................................................................................................................
Secured by other properties.....................................................................................................................................
Loans to domestic commercial and foreign banks................................................................................................
Loans to other financial institutions.............................................................................................................................
Loans to brokers and dealers in securities..............................................................................................................
Other loans for purchasing or carrying securities..................................................................................................
Loans to farmers (excluding loans on real estate)................................................................................................
Commercial and industrial lo ans..................................................................................................................................




81,926.715

9,699,333

1,444,577
46,659

1,300,404
37,929

144.173
8.730

1,687,918
48,193

1,506,918
38,425

181.000
9.768

11,062,735
11,992,407
36,769,505

10,411,496
11,028,650
30.636,633

651.239
963,757
6.132.872

10,835,874
11,895,197
40,017,561

10,221.738
10.941.774
33.464.642

614.136
953.423
6.552.919

2.969,710
12,305,885
15,034,570

2.938.085
11.720.942
13.852.576

31,625
584,943
1,181.994

2,970,824
12,320,741
15,441,570

2.940.909
11.780.535
14.215.326

29.915
540.206
1.226.244

11,351
66,063
0
1,825
1,318
420,628

11,351
65,890
0
1,293
1,318
410,855

0
173
0
532
0
9,773

97,670
117,426
2,000
2,278
1,167
385,176

97,670
117,296
2,000
1,688
1,167
375,396

0
130
0
590
0
9,780

FEDERAL DEPOSIT INSURANCE CORPORATION

Total

Loans to individuals for personal expenditures...........
All other loans (icluding overdrafts) ........................................................................................................................

3,783,043
104,768

3,216,884
74,111

566,159
30,657

4,328,283
113,857

3,685,543
87,375

642,740
26,482

146,915.676

131,986,289

14.929,387

150,238,170

134.914.851

15,323,319

1,355,659
465,477
140,785
2,089,878

1.206,642
420,531
121,155
1,957,515

149,017
44,946
19,630
132,363

1,423,555
430,301
138,106
2,206,423

1,266,509
382,005
119,910
2,098,549

157,046
48.296
18,196
107,874

Total liabilities and surplus acco un ts..............................................................................................................

153,165,725

137,667,745

15,497,980

158,216,204

142,352,794

15,863,410

Deposits— t o ta l..................................................................................................................................................

139,657,342

125,700,097

13,957,245

143,684,179

129,449,932

14,234,247

Savings and time deposits —to ta l..............................................................................................................................
Savings deposits...........................................................................................................................................................
Deposits accumulated for payment of personal loans................................................................................
Fixed maturity and other time deposits..........................................................................................................
Demand deposits—total..................................................................................................................................................

137,824,190

123,939,877

13,884,313

141,778,046

127,600,309

14,177,737

8294,642
0
5,589,671

72,340,668
37
69,437,341

64,291.598
37
63,308,674

1,833,152

1,760,220

72,932

1,906,133

1,849,623

56,510

Miscellaneous lia bilities— t o t a l...................................................................................................................

3,004,951

2,673,337

331.614

3,633,409

3,250,493

382,916

Securities sold under agreements to repurchase.................................................................................................
Other borrowings.................................................................................................................................................................
Other liabilities....................................................................................................................................................................

436,104
732,668
1,836,179

433,960
709,259
1,530,118

2,144
23,409
306,061

594,397
1,076,612
1,962,400

578,706
1,025,607
1,646,180

15,691
51,005
316,220

77,946,128
1
59,878,061

69,651,486
1
54,288,390

8,049,070
0
6,128,667

Total liabilities.....................................................................................................................................

142,662,293

128,373,434

14,288.859

147,317,588

132,700,425

14,617,163

Minority interest in consolidated subsidiaries..........................................................................................

60

60

0

122

60

62

Surplus accounts— total...................................................................................................................................

10,503,372

9,294.251

1,209,121

10,898,494

9.652.309

1,246,185

Capital notes and debentures.......................................................................................................................................
Other surplus accounts.....................................................................................................................................................

350,601
10,152,771

350,017
8,944,234

584
1,208,537

353,956
10,544,538

353,956
9,298,353

0
1,246,185

1.4
11.6
19.4

1.4
11.5
19.9

1.4
12.3
15.4

2.4
11.4
18.8

2.5
11.4
19.2

1.3
11.5
15.7

64.9
2.6
6.9

64.5
2.7
6.8

68.7
2.2
7.8

64.7
2.7
6.9

64.2
2.7
6.8

ASSETS A D LIABILITIES O BANKS
N
F

Total loans and s e c u r it ie s ..............................................................................................................

Bank premises, furniture and fixtures, and other assets representing bank premises..........................
Real estate owned other than bank premises.......................................................................................................
Investments in subsidiaries not consolidated..........................................................................................................
Other a sse ts.........................................................................................................................................................................

69.5
2.1
7.9

PERCENTAGES
Of total assets:

Cash and balances with other banks........................................................................................................................
U.S. Government and agency securities........................................................................................................................
Other securities.........................................................................................................................................................................
Loans (including federal funds sold and securities purchased under
agreements to resell)..................................................................................................................................................
Other a ssets...............................................................................................................................................................................
Total surplus accounts........................................................................................................................................................
Of total assets other than cash and U.S. Government obligations:

Total surplus accounts...........................................................................................................................................................

7.9

7.8

9.0

8.0

7.9

9.0

Number of banks............................................................................................................................................................................

467

324

143

465

325

140

151




152

Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1 9 7 3 -1 9 7 8
(Amounts in thousands of dollars)
Asset, liability, or expense item

Dec. 31. 19732

Dec. 31, 19742

Dec. 31, 19752

Dec. 31, 1976

Dec. 31, 1977

Dec. 31, 1978

820,689.664

899,056,643

938,888,209

1,011,273,832

1,137,794,616

1,273,189,105

Cash and due from banks— total..................................................................................

116,940.118

126,069,289

129,022,793

130,210,127

160,382,169

178,327,313

Cash items in process of collection....................................................................................
Demand balances with commercial banks in the United States.............................
All other balances with depository institutions in the U.S. and with banks in
foreign countries.......................................................................................................................
Balances with Federal Reserve Banks.................................................................................
Currency and coin..........................................................................................................................

44,662,237
30,129,625

47,279,797
34,399,470

47,332,735
32,168,664

48,368,126
33,022,240

66,451,288
39,238,490

75,291,809
42,572,323

3,558,726
27,820,742
10,768,788

5,546,812
27,116,210
11,727,000

10,387,072
26,779,065
12,355,257

10,664,363
25,964,340
12,191,058

11,351,612
29,339,126
14,001,653

10,493,618
34,398,107
15,571,456

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

188,230,007

193,877,525

227.831.583

249,964,940

258,404,575

268,777,856

U.S. Treasury securities............................................................................................................
Obligations of other U.S. Government agencies and corporations.....................
Obligations of States and political subdivisions in the U.S....................................
All other securities.....................................................................................................................

55.293.390
27.537.760
91.227.221
14.171.636

51,867,904
31,090,271
96,771,409
14,147,941

81,008,162
33,285,855
100.801,799
12,735,767

96.884.312
34.324.587
103.505.149
15.250.892

95.960.613
35.812.026
112.898.620
13.733.316

89.699,426
42,316,375
123,510,734
13,251,321

Federal funds sold and securities purchased under agreements to resell . . .

34,379.920

38,944,238

37.361.788

45,855,864

49,881,414

48,755,878

Loans, net............................................................................................................................

447.786,537

493,064,162

488.721,442

518,737,329

591,327,780

682,866,654

Plus: Allowances for possible loan losses.........................................................................
Loans, total............................................................................................................................................
Plus: Unearned income on lo ans..........................................................................................

5,274,856
453,061,393
6,694,937

5,871,660
498,935,822
7,258,209

6,070,344
494,791,786
7,489,884

6,195,279
524,932,608
12,625,341

694,793
598,022,573
14,702,996

7,714,708
690,581,362
17,726,870

Loans, g ro ss........................................................................................................................

459.756.330

506,194,031

502,281,670

537,557.949

612,725,569

708.308,232

Real estate loans—total............................................................................................................
Construction and land development1............................................................................
Secured by farmland...........................................................................................................
Secured by / — to 4—family residential properties.........................................
Secured by multi-family (5 or more) residential properties.............................
Secured by nonfarm nonrosidential properties.......................................................
Loans to financial institutions...................................................................................................
Loans for purchasing or carrying securities......................................................................
Loans to finance agricultural production and other loans to farmers....................
Commercial and industrial loans.............................................................................................
Loans to individuals—total............................................................................................................
To purchase private passenger automobiles on instalment basis.......................
Credit cards and related plans.............................................................................................
To purchase mobile homes (excluding travel trailers)...............................................

118,789,396

131,739,920

136,196,154

150,986,919

178.632,320

213,625,237

0
5.419.112
67.794.978
6.922.145
38.653.161

0
6,030,121
74,580,012
7,543,920
43,585.867

0
6.370.212
77.029.917
5.899.737
46.896.288

17.347.914
6.718.186
81.110,248
4,440.412
41,370,159

21,389,331
7,730,264
96,757,037
4,907,100
47,848,588

27,269,354
8.480.930
118.476.776
5.723.046
53.675.131

39,695,760
11,925,517
17,149,902
158,690,504
100,393,366

45,204,515
9,187,663
18,226,897
184,074,531
103,692,681

38,967,664
10,879,410
20,138,952
175,946,906
106,848,796

35,848,326
15,088,146
23,216,369
178,635,361
118,863,153

36,816,981
17,110,918
25,713,073
197,076,515
141,257,446

43,459,007
14,380,222
28,191,763
223,243,865
167,675,391

33.480.736
9.130,563
8.380,191

32,942,938
11,126,994
9,001,883

33.509.251
12.351.630
8.667.742

39.824.875
14.430.339
8.737.928

49,861.799
18,475.596
9.125.428

61.051.302
24.496,572
9,734,878

25,647,787

27,631,598

29.099.650

31.549.012

35,852,029

41,853,614

23.754,089

22,989,268

23,220,523

24.320.999

27,942.594

30,539.025

14,067,824

13,303,788

14,919,675

16,118,316

17,732,747

725,885,925

753,914,813

814.558,133

899.613,769

1,000,400,388

All other instalment loans for household, family and other personal
expenditures....................................................................................................................
Single payment loans for household, family and other personal
expenditures...........................................................................................................
All other loans . .
Total loans and secu ritie s.............




13,111.885
670,396,464

FEDERAL DEPOSIT INSURANCE CORPORATION

Total a s s e t s .............................................................................................................................

Lease financing receivables..................................................................................................
Bank premises, furniture and fixtures, and other assets representing bank
premises...........................................................................................................................................
Real estate owned other than bank premises........................................................................
All other a ssets..................................................................................................................................

2,136,002

3,056,755

4,413,014

5,119,280

5,810,261

7,657,996

12,788,824
433,997
17,994,259

14,288,523
811,239
28,944,912

15,598,231
1,909,555
34,029,803

16,702,977
2,894,011
41,789,304

18,344,595
3,095,496
50,548,326

20,551,097
2,475,901
63,776,410

Total liabilities and equity capital...................................................................................

820,689,664

899,056,643

938,888,209

1,011,273,832

1,137.794.616

1,273,189,105

Business and personal deposits— to ta l....................................................................

557,465,547

606.374,826

647,239,798

697,387,703

777,177,835

857,642,324

Individuals, partnerships, and corporations—demand.................................................
Individuals, partnerships, and corporations—savings.................................................
Individuals and nonprofit organizations—savings.................................................
Corporations and other profit organizations—savings1.....................................
Individuals, partnerships, and corporations—time.........................................................
Deposits accumulated for payment of personal loans—tim e..................................
Certified and officers' checks, travelers' checks, letters of credit —demand . .

233,115,295
127,775,141

237,069,468
136,074,273

247,869,290
160,653,632

256,806,660
197,660,954

287,843,595
215,197,708

309,347,998
216,503,446

United
United
United
States
States
States

States Government —demand....................................................................................
States Government —savings!................................................................................
States Government—time.........................................................................................
and political subdivisions —demand.....................................................................
and political subdivisions — savings"! ..................................................................
and political subdivisions —time..............................................................................

All other deposits— total................................................................................................

Demand..............................................................................................................................................
Savings1 ...........................................................................................................................................
Time...................................................................................................................................................

136,074,273
O

160,653,632
O

189.028.878
8.632.076

204.453.839
10.743.869

205,568,072
10,935374

222,482,603
369,690
10,378,792

227,691,785
279,512
10,745,579

231,211,673
144,385
11,564,031

259,896,427
100,303
14,139,802

316,146,234
109,598
15,535,048

73,661,450

74,215,373

70,707,733

71,946,030

84,641,977

88,240.496

9,886,922
0
440,649
18,747,431
0
44,586,448

4,822,299
0
500,147
18,706,776
0
50,186,151

3,126,631
0
588,481
18.879,180
0
48,113,441

3,042,572
56,735
686,053
17,989,214
6,050,857
44,120,599

7,341,318
58,209
828,852
19,208,773
4,789,442
52,415,383

2,725,862
82,733
866,499
19,202,176
4,298,654
61,064,572

50,494,156

65,522,043

63,078.870

61.593,152

67,453,933

70,501,728

36,497,159
0
13,996,997

43,322,732
O
22,199,311

40,800,386
0
21,998,972

44.566.366
113.672
16.913.114

50.222.044
28.235
17.203.654

53.474.157
43.766
16,983,805

Total deposits....................................................................................................................

681,621,153

746,112,242

780,746,889

830,926,885

929.273,745

1,016,384,548

Demand..............................................................................................................................................
Savings.............................................................................................................................................
Time...................................................................................................................................................

309,107,653
127,775,141
244,738,359

314,300,067
136,074,273
295,737,902

321,421,066
160,653.632
298,672,191

333.968.843
203,882,218
293.075.824

378.755.532
220.073.594
330.444,619

400.285,241
220,928.599
395,170,708

Miscellaneous liabilities— total...................................................................................

79,820,189

88,107,647

87,786.577

102.975,877

123,501,267

163,522,078

Federal funds purchased and securities sold under agreements to repurchase.
Interest bearing demand notes issued to the U.S. Treasury and other
liabilities for borrowed money......................................................................................
Mortgage indebtedness and liability for capitalized le ases...............................
All other liabilities.................................................................................................................

50,469,996

51,217,439

52,189,647

70,298,626

82,952,495

91,291,670

7,118,442
771,519
21,460,232

4,814,560
725,190
31,350,458

4,604,259
775,396
30,217,275

5,080,647
804,996
26,791,608

6,694,413
1,038,857
32,815,502

ASSETS A D LIABILITIES O BANKS
N
F

Government deposits— t o t a l........................................................................................

127,775,141
0
185,200,805
513,460
10,860,846

22,791,813
2,035,029
47,403,566
1,179,906,626

Total liabilities (excluding subordinated notes and debentures).............

761,441,342

834,219,889

868,533,466

933,902,762

1,052,775,012

Subordinated notes and debentures.......................................................................

4,117,351

4,258,989

4,398,892

5,122,527

5,739,194

5,864,838

Equity capital— total...................................................................................................

55,130,971

60,577,765

65,955,851

72,248.543

79,280,410

Preferred stock—par value.......................................................................................
Common stock— par value.........................................................................................
Surplus...............................................................................................................................
Undivided profits and reserve for contingencies and other capital
reserves..................................................................................................................................

87.417.641

65,650
13,846,071
23,593,350

43,460
14,788,893
25,312,574

47,881
15,565,026
26,706,053

67,328
16,221,264
28,894,323

98,791
17,265,237
31,085,492

113,851
18,157,997
33,202,557

17,625,900

20,432,838

23,636,891

27,065,628

30,830,890

35,943,236

153




154

Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1 9 7 3 - 1 978-CONTINUED
(Amounts in thousands of dollars)
Asset, liability, or expense item

Dec. 31. 19732

Dec. 31, 19742

Dec. 31. 19752

Dec. 31, 1976

Dec. 31, 1977

Dec. 31, 1978

PERCENTAGES
Of total assets:

14.25

14.02

13.74

12.88

14.10

14.01

10.09
12.84

9.23
12.34

12.17
12.09

12.97
11.74

11.58
11.13

10.37
10.74

59.39
3.42
6.72

59.83
4.59
6.74

56.68
5.31
7.02

56.44
5.96
7.14

56.94
6.25
6.97

58.07
6.81
6.87

Of total assets other than cash and U.S. Treasury securities:

Total equity capital.............. ..............................................................................................................

8.50

8.40

9.05

9.21

8.99

8.70

Number of banks at end of period...................................................................................................

13,976

14,228

14,384

14,411

14,412

14,391

1Not available before 1976.
2Where possible, figures are restated to reflect current reporting requirements. For amounts on an "as reported" basis, see Annual Reports of prior years.




FEDERAL DEPOSIT INSURANCE CORPORATION

Cash and due from depository institutions.........................................................................
U.S. Treasury securities and obligations of other U.S. Goverment agencies
and corporations.............................................................................................................................
All other securities.............................................................................................................................
Loans (including federal funds sold and securities purchased under agreements
to resell)...........................................................................................................................................
All other a sse ts...................................................................................................................................
Total equity capital.............................................................................................................................

Table 110. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES),
UNITED STATES AND OTHER AREAS, 1 9 7 4 -1 9 7 7
Dec. 31, 1974

Dec. 31, 1975

Dec. 31, 1976

June 30, 1977

Dec. 31, 19771

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

1,045,972,427

1,095,388,957

1,182,390,845

1,228,366,375

1,339,393,026

Cash and due from banks.......................................................................................................................................

178,295,259

189,406,997

203,772,449

208,283,772

242,983,142

Securities—total.........................................................................................................................................................
U.S. Treasury securities....................................................................................................................................
Obligations of U.S. Government agencies and corporations............................................................
Obligations of States and political subdivisions...................................................................................
Other bonds, notes, and debentures..........................................................................................................
Corporate stock......................................................................................................................................................
Trading account securities..............................................................................................................................

197,019,318

231,527,434

254,383,382

259,474,871

264,525.796

51,886,435
31,088,271
96,800,855

80,963,492
33,281,405
100,873,178

9.201,132

10.710,644

96,874,136
34,323,582
103,588,597
9,594,671
1.750,989
8.251.407

97,233,796
34,389,521
108,720,777
9,864,455
1,809,269
7,457,053

96,026,151
35,818,251
113,019,592
10,542,996
1,853,806
7,265,000

Federal funds sold and securities purchased under agreements to resell........................................

39,005,103

Direct lease financing.................................................................................................................................
Bank premises, furniture and fixtures, and assets representing bank premises.........................
Real estate owned other than bank premises.........................................................................................
Investments in unconsolidated subsidiares and associated companies.............................................
Customers liability on acceptances outstanding...........................................................................................
Other a ss e ts.........................................................................................................................................................

36,992,511

40,899,161

49,845,033

586,055,773

580,596,623

45,861,131
620,866,854
6,347,839
627,214.693

656,224,103
6,674,638
662,898,741

715,851,991
6,894,344
722,746,335

3,273,680

4,054,812

5.816,434

6,186,765

6,977,301

14,674,995

16,054,291

17,242,930

17,944,356

19,010,491

828,853

1,935.839

2,974,073

3,162,192

3,134,042

750,218
10,632,747

789,718

954,500

941,211

987,244

7,095,983

11,864,784

14,433,352

14,280,877

20,895,631

21,475,599

18,654,308

20,816,592

21,797,109

1,045,972,427

1,095,388,957

1,182,390,845

1,228,366,375

1,339,393,026

Total deposits...........................................................................................................................................................

871,225,194

Federal funds purchased and securities sold under agreements to repurchase.........................

Total liabilities and equity capital....................................................................................

915,856,039

991,913,006

1,022,062,067

1,116,617,556

50,980,062

52,609,050

70,435,494

75,820,815

83,315,006

Other liabilities for borrowed money................................................................................................................

8.368,159

7,934,301

9,510,108

11,563,041

Mortgage indebtedness.............................................................................................................................................

725,166

774.450

826,196

856,439

1,048,297

14,131,257

11.291,867

12,048,179

14,594,467

14,432,321

Acceptances executed and outstanding..........................................................................................................
Other liab ilities...........................................................................................................................................................
Total liabilities (excluding subordinated notes and debentures)...................................................

13,146,839

28,426,938

29,031.187

20,171,609

22,334,880

25,711,530

973,856,776

1,017,496,894

1,104,904,592

1,147,231,709

1,254,271,549

Subordinated notes and debentures...................................................................................................................
Reserves on loans and securities—tota|2.......................................................................................................
Reserve for losses on loans............................................................................................................................
Other reserves on loans....................................................................................................................................
Reserves on securities...................................................................................................................

4,261,373

4,422,484

5,220,566

5,450,465

5,830,565

8,779,607

9,193,375

8.466.353
144,446
168,808

8,791,680
212,260
189,435

Equity capital —to ta l................................................................................................................................................

59,074,671

72,265,687

75,684,201

ASSETS AN LIABILITIES O BANKS
D
F

Loans, total....................................................................................................................................................................

5,698,715

8.042,625

79,290,912

64,276,204

Memoranda
Standby letters of credit outstanding3...................................

16,410,420

Number of banks..............................................................................................................................................................

14,228




14,384

20,043,593

112,053,745
24,503.572

135,756,267
26,366,568

14,411

14,441

14,412

155

1 For more detailed 1 9 7 7 data, see Assets and Liabilities, Commercial and Mutual Savings Banks, December 31, 1977.
2Changes in the reporting of loan losses beginning in 1 9 7 6 are discussed on page 142.
3Data not available prior to 1 9 7 6 .

17,198,835

114,172,181
23,307,985

Time certificates of $100,000 or more;3
Time certificates of deposit..............................................................................
Other time deposits......................................................................................................................

156

Table 110A. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES).
UNITED STATES AND OTHER AREAS, DECEMBER 31, 1978'
Banks with foreign offices
Foreign offices
and Edge and
agreement
subsidiaries

Domestic offices

Consolidated
reports

Consolidated
Total — Columns 1
and 4

Total Assets .................................................................................................................................................

660.586,728

239,209,434

608.421,045

847.630.479

1,508.217.207

Cash and due from depository institutions...........................................................................................................
Cash items in process of collection and unposted debits........................................................................
Demand balances with commercial banks in the U.S.................................................................................
Time and savings balances with commercial banks in U.S.....................................................................
Balances with other depository institutions in the U.S..............................................................................
Balances with banks in foreign countries........................................................................................................
With foreign branches of other U.S. banks...............................................................................................
With other banks in foreign countries........................................................................................................
Balances with central banks..................................................................................................................................
Balances with Federal Reserve banks........................................................................................................
Balances with other central banks.................................................................................................................
Currency and coin.......................................................................................................................................................

71,047,051
17,115,855
25,597,499
2,673,411
2,063,973
1,347.451
N/A
N/A
12,553,829
12,553,829
N/A
9,695.033

96,181,149
1,883,165
4,610,696
1,118,505
230,887
83,642,267
18,391,587
65,250.680
4,459,660
566,068
3,893,592
235,969

106,832.727
58,020.871
16,959,173
983.473
75,165
3,080.125
529,493
2,550,632
21,866,740
21,844,206
22,534
5,847,180

203,013,876
59.904,036
21,569,869
2,101.978
306,052
86,722,392
18,921,080
67,801,312
26.326,400
22,410,274
3,916,126
6,083,149

274,060,927
77,019,891
47,167,368
4,775,389
2,370,025
88,069,843
N/A
N/A
38,880,229
34,964,103
N/A
15,778.182

Securities— to tal.........................................................................................................................................

174,474.133

7,724,550

94,121,950

101,846.500

276.320.633

U.S. Treasury securities...........................................................................................................................................
Obligations of U.S. Government agencies and corporations..................................................................
Obligations of States and political subdivisions..........................................................................................
Other bonds, notes, and debentures....................................................................................................................
Corporate stock............................................................................................................................................................
Trading account securities.....................................................................................................................................

59,070,019
30,077,067
80,683,209
3,836,329
483,294
324,215

41,607
4,278
203,293
6,611,403
171,520
692,449

30,629,407
12,239,201
42,645,915
1,544,865
954,465
6,108,097

30,671,014
12,243,479
42,849,208
8.156,268
1,125,985
6,800,546

89.741.033
42.320,546
123,532,417
11,992,597
1,609,279
7,124,761

Less: reserve for possible loan losses..............................................................................................................
Loans, total...........................................................................................................................................................................
Less: unearned income on loans..........................................................................................................................
Loans, gross........................................................................................................................................................................
Real estate loans (including only loans secured primarily by real estate).....................................
Loans to financial institutions...............................................................................................................................
To real estate investment trusts and mortgage companies...............................................................
To commercial banks in the U.S.....................................................................................................................
To U.S. branches and agencies of foreign b anks...........................................................................
To other commercial banks in the U.S...................................................................................................
To banks in foreign countries.........................................................................................................................
To foreign branches of other U.S. banks.............................................................................................
To other banks in foreign countries........................................................................................................
To finance companies in the U.S...................................................................................................................
To other financial institutions.........................................................................................................................
Loans for purchasing or carrying securitites (secured and unsecured)..............................................
Loans to farmers.........................................................................................................................................................
Commercial and industrial loans (except those secured primarily by real estate).......................
To U.S. addressees (domicile).......................................................................................................................
To non-U.S. addressees (domicile)..............................................................................................................
Loans to individuals for household, family and other personal expenditures................................
All other lo ans............................................................................................................................................................
Loans to foreign government and official institutions........................................................................
Other loans...............................................................................................................................................................
Direct lease financing....................................................................................................................................................
Bank premises, furniture and fixtures, and other assets representing bank premises. . .
Real estate owned other than bank premises...................................................................




24,919,434

199,066

23,809,210

24,008,276

48,927,710

366,064,370

Federal funds sold and securities purchased under agreements to resell.................................

143,903,749

314,040,754

457.944.503

824.008.873

3,575,398
369,639,768
12,473,258
382,113,026
138,175,458
4,505,362
1,095,496
560,278
N/A
N/A
228,130
N/A
N/A
633,144
1,988,314
2,574,469
23.951.853
93.274,518
N/A
N/A
113,376,495
6,254,872
N/A
N/A
1,696,007

242,417
144.146,166
1,026,444
145,172,608
4,335,879
22,780,815
80,891
2,348,304
447,723
1,900,581
15,540,309
377,057
15,163,252
284,177
4,527,134
961.145
455.782
85,542,095
3.379.190
82,162,905
4,787,396
26,309.497
22,991,591
3.317,906
1,405,246

4,138,994
318,179,748
5,175.576
323.355,326
74.579.460
38,812,812
7,218.826
4,202,316
1,670,141
2,532,175
9,922,082
466,657
9,455.425
8,066,647
9,402,941
11,805,591
4,238,840
128,818,212
119,830,128
8.988,084
53,740,786
11,359,623
2,429,658
8,929,965
5,955.448

4,381,411
462,325.914
6,202,020
468,527,934
78,915,339
61,593,628
7,299,717
6,550,620
2,117,864
4,432,756
25.462,391
843,714
24,618,677
8,350,825
13.930,075
12,766,736
4,694,622
214,360.307
123,209.318
91,150.989
58,528,182
37.669.120
25,421,249
12,247,871
7,360,694

7,956,809
831,965,682
18,675,278
850,640,960
217,090,797
66,098,990
8,395,213
7,110,898
N/A
N/A
25,690,521
N/A
N/A
8,983,969
15,918,389
15,341,205
28,646,475
307,634,824
N/A
N/A
171,904,677
43,923,992
N/A
N/A
9,056,701

12,363,283

824,681

8,149,433

8,974,114

21,337,397

922,603

119,810

1,464,912

1,584,722

2,507,325

FEDERAL DEPOSIT INSURANCE CORPORATION

Domestic only
banks and
reporting
branches

Investments in unconsolidated subsidiaries and associated companies................................................
Customer's liability of acceptances outstanding...............................................................................................

47,549

-1 ,337,566

2,361,274

1,023,708

1,071,257

343,721

3,797,994

18,657,383

22,455,377

22,799,098

8,708,577

-13,609,245

33,027,954

19,418,709

28,127,286

660,586,728

239,209.434

608,421,045

847,630.479

1,508,217,207

Total deposits..............................................................................................................................................................
Individuals, partnerships and corporations..............................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e ....................................................................................................................................................................
U.S. Government...................................................................................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e ....................................................................................................................................................................
States and political subdivisions in the U.S.............................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e ....................................................................................................................................................................
Foreign governments and official institutions.........................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e ....................................................................................................................................................................
Deposits of commercial banks in the U.S..................................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e ....................................................................................................................................................................
Deposits of banks in foreign countries.......................................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e ....................................................................................................................................................................
All other deposits................................................................................................................................................
Demand..............................................................................................................................................................
Savings..............................................................................................................................................................
T im e .................................................................................................................................................................

573,201,984
496,960,075
171,258,720
146,437,961
179,263,394
2,067,676
1.629,925
56,212
381,545
57,227,388
14,275,286
3,566,455
39,385,647
155,951
40,300
1.139
114,515
8,679,749
7,147,904
3,188
1,528,657
475,196
228,107
0
247,089
983,252
719,797
22,729
240,726

220,619,569
68,307,952
N/A
N/A
N/A
203,789
N/A
N/A
N/A
225,363
N/A
N/A
N/A
33,490,372
N/A
N/A
N/A
15,696.373
N/A
N/A
N/A
99,950,405
N/A
N/A
N/A
N/A
N/A
N/A
N/A

439,811,012
342,052,178
137,446,898
69,656,522
134,948,758
1,590,578
1,079,468
26.456
484,654
27,145,004
4,876,954
714,585
21,553,465
8,128,766
1,797,711
16,101
6,314,954
42,652,868
35,310,734
414
7,341,720
9,404,204
8.222,583
195
1,181,426
N/A
N/A
N/A
N/A

660,430,581
410,360,130
N/A
N/A
N/A
1,794,367
N/A
N/A
N/A
27,370,367
N/A
N/A
N/A
41,619,138
N/A
N/A
N/A
58,349,241
N/A
N/A
N/A
109,354,609
N/A
N/A
N/A
N/A
N/A
N/A
N/A

1,233,632,565
907,320,205
N/A
N/A
N/A
3,862,043
N/A
N/A
N/A
84,597,755
N/A
N/A
N/A
41,775,089
N/A
N/A
N/A
67,028,990
N/A
N/A
N/A
109,829,805
N/A
N/A
N/A
983,252
N/A
N/A
N/A

Certified and officers checks, travelers checks, and letters of credit sold for cash. . .
Federal funds purchased and securities sold under agreements to repurchase . .
Interest bearing demand notes and other liabilities for borrowed money. .

6,652,697

2,745,315

8,837,414

11.582,729

18,235,426

21,137,970

109,666

70,153,700

70,263,366

91,401,336
32,968,855

6,218,268

10,181,142

16,569.445

26,750,587

Mortgage indebtedness...................................

905,452

43,135

1,128,767

1,171,902

2,077,354

Acceptarces executed and outstanding . .

344.036

3,838,014

18,839.318

22,677,332

ASSETS A D LIABILITIES O BANKS
N
F

Other assets.......................................................................................................................................................................
Total liabilities and equity c a p ita l.......................................................................................................

23,021,368

7,591,874

Other liabilities.................................................
Total liabilities (excluding subordinated notes and debentures) . .
Subordinated notes and debentures. .

4,100,385

19,823,468

23,923,853

31,515,727

609,399.584

238,891,911

566,325,710

805.217,621

1,414,617,205

2,575,147

Equity capital— to ta l..................................................................

293,832

3,289,691

3,583,523

6,158,670

48,611,997

23,691

38,805,644

38.829.335

87,441,332

2,428,292

6,852,521

16,438,715

23,291,236

25,719,528

67,456,718
9,423,712

N/A
N/A

110,068,449
17,139,007

N/A
N/A

N/A
N/A

155
-

14,391
19

Memoranda

Standby letters of credit outstanding. . . .
Time certificates of 8100,000 or more:
Time certificates of deposits................................
Other time deposits............................................................................................................................

1Totals for items that are not explicitly reported are derived mathematically.

Digitized N/A FRASER
for Not available.


14,236
19

_
-

157

Number of banks..............................................................................................................................................................
Number of reporting branches....................................................................................................................................

158

Table 111. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1 9 7 3 -1 9 7 8
(Amounts in thousands of dollars)
Dec. 31, 1974

Dec. 31, 1975

Dec. 31, 1976

Dec. 31, 1977

Dec. 31. 1978

Total a s s e t s ..........................................................................................................................................................

93,012,515

95,589,401

107,280,765

120,839,827

132,201,371

142,352,794

Cash, balances with banks, and collection item s— t o t a l.................................................................

1,847,776

2,053,353

2.195,390

2,188,926

2,214,478

3,570,970

Currency and coin............................................................................................................................................................
Demand balances with banks in the United States.........................................................................................
Other balances with banks in the United States...............................................................................................
Cash items in process of collection......................................................................................................................

226,905
711,172
817,495
92,204

268,102
683,943
1,022,757
78,551

308,887
706,116
1,091,274
89,113

338,001
925,344
807,240
118,341

386.038
761,624
922,001
144,815

411,640
861,088
2,136,238
162,004

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

21,871,412

22,684,614

30,421,034

37,984.627

42.219.724

43,546,458

United States Government and agency securities—total..............................................................................
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................................................................................................................

5,971,200

5,967,835

9,468,682

13,194,506

15.496,605

16,215,435

831,719
1.513,476
789,936
2,836,069

712.274
1.604.165
694.251
2.957.145

1.312.116
2.761.242
1.167.218
4.228.106

State, county, and municipal obligations.............................................................................................................
Corporate bonds...............................................................................................................................................................
Other bonds, notes, and debentures......................................................................................................................

907,013
10,026,920
1,713,867

882,620
10,560,303
1,856,557

3,252,412

3,417,299

3,630,475

364,066
2,888,346

348.290
3.069.009

374.851
3.255.624

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

Corporate stock—to ta l
Bank................................................................................................................................................................................
Other..............................................................................................................................................................................

1,488,631
13,503,561
2,329,685

1.981.205
3.237.461
1.383.006
6.592.834
2,301,574
15.781,623
3,019,191

1.857.506
3.427.509
1.751,417
8.460.173

1,371.969
3.270.419
1.517.745
10.055,302

2,770,854
16,449,941
3,503,057

16,376,504
3,297,215
3,587,862

3,687,733

3,999,267

4,069,442

387,161
3.300.572

409.239
3.590.028

387.736
3.681.706

Federal funds sold and securities purchased under agreements to r e s e ll ...................................

1,252,753

964,856

897,063

1,322,316

1,880,491

1,889,991

Other loans— t o t a l .........................................................................................................................................

6 5 ,8 70 ,71 4

6 7 ,4 4 9 ,2 1 7

7 0 ,8 1 2 ,0 4 0

7 5 .9 9 0 ,4 2 2

8 2 ,3 0 7 ,7 9 5

8 9 ,4 7 8 ,4 0 2

Real estate loans—total.............................................................................................................................................
Construction loans...................................................................................................................................................
Secured by farmland.............................................................................................................................................

63,946,513

65,339,748

68,371,859

72,820,626

78,739,467

85,110,267

1,090,262
51,160

821.250
49.185

824.494
48.239

854,499
46,364

1.117.143
39.101

1.506.918
38.425

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

11,147.343
11.221.051
23.393.029

10.587.327
11.027,870
28.437.445

10.221.738
10.941.774
33.464.642

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

2.428.166
10.874.242
12.855.932

2,695,114
11,360,282
13,475,185

2.940.909
11.780.535
14.215.326

Loans to brokers and dealers in securities.....................................................................................................
Other loans for purchasing or carrying securities......................................................................................
Loans to farmers (excluding loans on real estate)...................................................................................
Commercial and industrial loans.........................................................................................................................
Loans to individuals for personal expenditures............................................................................................
All other loans (including overdrafts)..............................................................................................................

13,679
29,473
4,441
2,221
1,323
173,322
1,665,365
34,377

18,339
26,324
743
930
1,416
175,360
1,812,329
74,028

25,275
32,714
0
1,480
1,456
288,976
2,052,147
38,133

26,955
57,234
0
1,494
918
599,849
2,412,478
70,868

10,254
56,679
30,000
1,285
1,407
506,372
2,892,234
70,097

97,670
117,296
2,000
1,688
1,167
375,396
3,685,543
87,375

Total loans and securities.............................................................................................................

88,994,879

91,098,687

102,130,137

115,297,365

126,408,010

134,914,851

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 VA
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration
Not insured by FHA.....................................................................................................................................
Secured by other properties

.................................
................................
..............................................
Loans to domestic commercial and foreign banks.................................
Loans to other financial institutions...........................................




FEDERAL DEPOSIT INSURANCE CORPORATION

Dec. 31, 1973

Asset, liability, or surplus account item

Bank premises, furniture and fixtures, and other assets representing bank premises.........................
Real estate owned other than bank premises..........................................................................................................
Investments in subsidiaries not consolidated..........................................................................................................
Other assets.............................................................................................................................................................................

760,289
180,671
64,883
1,164,017

857,879
233,775
82,292
1,263,415

963,664
418,233
94,253
1.479,088

1,063,867
490,059
112,754
1,686,856

1,161.551
444,012
115,357
1,857,963

1,266,509
382,005
119,910
2,098,549

Total liabilities and surplus a c c o u n ts .........................................................................................................

93,012.515

95,589,401

107,280,765

120,839.827

132,201,371

142,352.794

Deposits— total...............................................................................................................................................

84,890,128

86,814,415

98,126,107

110,998,759

121,265,988

129,449,932

Savings and time deposits—total...........................................................................................................................
Savings deposits.....................................................................................................................................................
Deposits accumulated for payment of personal loans..........................................................................
Fixed maturity and other time deposits.......................................................................................................
Demand deposits—t o ta l.............................................................................................................................................

84,008,571

85,904,825

97,133,340

109,895,767

119,734,061

127,600,309

57,591.849
476
26.416.246

56.497.626
295
29.406.904

62.050.661
430
35.082.249

881,557

909,590

992,767

1,102.992

1,531,927

1,849,623

M iscellaneous liabilities— total.................................................................................................................

1,609,538

1,952,443

1,815,359

1,865,047

2,125.609

3,250,493

Securities sold under agreements to repurchase..............................................................................................
Other borrowings...........................................................................................................................................................
Other liabilities.................................................................................................................................................................

26,089
445,901
1,137,548

217,561
667,256
1,067,626

108,715
465,279
1,241,365

69.118
356,329
1,439,600

169,166
483,710
1,472,733

578,706
1,025,607
1,646,180
132,700,425

67.295.029
1
42,600.737

70.382.619
19
49.351.423

64.291.598
37
63.303.674

86,499,666

88,766,858

99,941,466

112,863,806

123,391,597

0

0

70

61

61

60

Surplus accounts— t o t a l..............................................................................................................................

6,512,849

6,822,543

7,339,229

7,975,960

8,809,713

9,652,309

Capital notes and debentures....................................................................................................................................
Other surplus accounts...............................................................................................................................................

114,953
6,397,896

169,460
6,653,083

190,279
7,148,950

213,264
7,762,696

353,386
8,456,327

353,956
9,298,353

2.0
6.4
17.1
72.2
2.3
7.0

2.1
6.2
17.5
71.6
2.5
7.1

2.0
19.5
66.8
2.8
6.8

1.8
10.9
20.5
64.0
2.8
6.6

1.7
11.7
20.2
63.7
2.7
6.7

2.5
11.4
19.2
64.2
2.7
6.8

PERCENTAGES
Of total assets:

Cash and balances with other banks...........................................................................................................................
U.S. Government and agency securities.....................................................................................................................
Other securities....................................................................................................................................................................
Loans (including federal funds sold and securities purchased under agreements to resell)..............
Other assets.............................................................................................................................................................................
Total surplus accounts........................................................................................................................................................

8.8

Of total assets other than cash and U.S. Government and agency securities:

Total surplus accounts........................................................................................................................................................

7.6

7.8

7.7

7.6

7.7

7.9

Number of banks.......................................................................................................................................................................

322

320

329

329

323

ASSETS A D LIABILITIES O BANKS
N
F

Total lia b ilitie s................................................................................................................................
Minority interest in consolidated subsidiaries.....................................................................................

325

159




160

Table 112. PERCENTAGES OF ASSETS, LIABILITIES, AND EQUITY CAPITAL OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978
IN THE UNITED STATES (STATES AND OTHER AREAS) DECEMBER 31, 1978
BANKS G O PED BY AMOUNT O ASSETS
RU
F
Banks with assets of —
Asset, liability, or equity capital item
All
banks
Total a s s e t s ..............................................................................................

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
or more

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

14.0
7.1

10.5
15.2

9.2
12.8

9.0
10.1

9.1
.9.2

9.5
8.6

10.9
8.8

13.2
8.1

13.8
8.3

15.4
6.5

18.7
4.2

3.3
9.7
1.0

9.4
3.9
.6

8.1
7.1
.5

6.5
11.0
.5

5.0
13.1
.6

4.5
13.7
.7

4.3
13.3
.7

3.9
11.9
.9

3.0
11.4
1.1

2.6
9.2
1.0

1.6
5.5
1.7

3.8

7.0

5.1

3.9

3.2

2.9

3.4

4.5

5.0

4.9

3.2

Loans, n e t...........................................................................................................
Unearned income on loans...........................................................................
Allowance for possible loan losses..........................................................
Loans, gross........................................................................................................
Real estate loans.......................................................................................
Loans to financial institutions.............................................................
Loans for purchasing or carrying securities................................

53.6
1.4
.6
55.6

51.1
1.4
.4
52.8

54.5
1.6
.4
57.5

56.0
1.9
.5
58.4

56.4
2.1
.5
59.0

56.7
2.1
.5
59.3

55.0
1.9
.6
57.5

53.3
1.7
.6
55.6

52.9
1.6
.6
55.1

53.1
1.1
.6
54.8

51.3
.7
.7
52.7

16.8
3.4
11

13.8
.1
.1

17.2
.1
.1

20.6
.1
.1

22.5
.2
.2

22.6
.3
.2

21.9
.6
.4

18.8
1.3
1.0

17.9
2.0
.9

14.7
4.2
1.1

11.2
7.5
2.4

2.2
17.5

16.2
7.3

14.2
8.7

9.5
10.4

5.6
11.8

2.9
14.3

1.4
15.7

1.1
16.5

.8
17.1

.8
19.3

.7
21.9

10.8
2.4
1.4

11.1
3.2
1.0

11.7
3.4
1.0

12.9
3.8
1.0

13.9
3.8
.9

14.4
3.7
.9

13.8
3.0
.8

13.4
2.7
.9

12.6
2.6
1.2

10.6
2.2
1.8

6.1
1.0
1.8

Loans to finance agricultural production and other
loans to farmers....................................................................................
Commercial and industrial loans.......................................................
Loans to individuals for household, family and other
personal expenditures.........................................................................
Single payment loans for personal expenditures.......................
All other loans.............................................................................................
All other a sse ts......................................
Total liabilities and equity capital.....................................................

Deposits—total...................................................................................................
Demand deposits.................................................................................
Time and savings.................................................................................
Individuals, partnerships, and corporations—demand..............
Individuals, partnerships, and corporations—time and savings
U.S. Government..........................................................................................
States and political subdivisions..........................................................
Certified and officers' checks................................................................
All other deposits.......................................................................................

7.4

2.3

2.6

2.8

3.3

3.5

3.8

4.2

4.5

7.4

13.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

79.8

88.4

89.7

89.8

89.3

88.7

86.8

84.2

82.0

75.8

70.3

31.5
48.3

36.5
51.8

31.6
58.1

30.5
59.3

29.8
59.6

29.8
58.9

30.3
56.5

32.2
52.0

33.5
48.6

31.7
44.1

32.4
37.9

24.3
41.8
.3
6.6
1.2
5.6

32.6
45.0
.2
9.8
.7
.2

27.7
51.7
.3
8.9
.8
.2

26.6
53.2
.4
8.5
.9
.2

26.2
53.3
.3
8.3
1.0
.2

26.0
52.0
.3
8.7
1.0
.7

25.6
49.0
.3
9.1
1.0
1.9

26.0
44.3
.3
9.0
1.1
3.5

26.8
41.4
.3
8.0
1.3
4.2

24.9
37.6
.3
7.1
1.0
4.9

20.7
32.0
.2
2.9
1.7
12.8

Federal funds purchased and securities sold under
agreements to repurchase................................................................
Interest-bearing demand notes issued to the U.S. Treasury
and other liabilities for borrowed money.........................................
All other liabilities^.......................................................................................
Subordinated notes and debentures..........................................................
Equity capital......................................................................................................

7.2

.3

.5

.7

1.0

1.5

3.3

5.6

7.5

11.0

11.6

1.8
3.7
.5
6.9

.0
.4
.1
10.9

.1
.5
.1
9.1

.2
.7
.2
8.3

.3
1.1
.2
7.9

.5
1.2
.3
7.5

.9
1.3
.5
7.1

1.4
1.4
.5
6.8

1.6
1.6
.6
6.4

2.4
3.6
.7
6.1

3.0
8.0
.4
6.5

Number of banks...................................................................................................

14,243

874

2,317

4,829

3,210

1,614

936

166

135

139

23

1Securities held in trading accounts are included in "O ther assets."
2|ncludes minority interest in consolidated subsidiaries.
Note: For income and expense data by size of bank, see tables 118 and 119. Dollar amounts of assets and liabilities (in $000) of insured commercial banks by size of bank are contained in Assets and LiabilitiesCommercial and Mutual Savings Banks (with 1978 Report of Income), December 31, 1978.




FEDERAL DEPOSIT INSURANCE CORPORATION

100.0%

Cash and due from depository institutions............................................
U.S. Treasury securities!..............................................................................
Obligations of other U.S. Government agencies
and corporations..........................................................................................
Obligations of States and political subdivisions'!.............................
All other securities..........................................................................................
Federal funds sold and securities purchased under
agreements to resell.........................................................................

Table 113. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1978 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978
BANKS G O PED BY AMOUNT O ASSETS
RU
F
Banks with assets of —
Asset, liability, or surplus account item

Total a s s e t s ................................................................................................................

All
banksl

Less
than
$10.0 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1 billion
or
more

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

2.5
11.4
11.5
2.3
5.4

3.4
7.0
6.0
.0
4.4

2.2
13.1
6.3
1.3
4.7

2.6
8.7
6.1
.6
5.4

2.2
8.4
5.6
.6
5.0

2.4
10.3
7.0
1.3
5.0

2.6
12.0
7.3
1.2
4.0

2.5
12.7
9.3
2.2
5.2

2.5
11.4
14.3
2.9
5.8

1.3

3.5

1.6

1.7

1.4

1.3

1.9

1.5

1.2

Other loans and discounts.......................................................................................
Real estate loans —total............................................................................................
Construction loans..................................................................................................
Secured by farmland....................................................................................
Secured by residential properties:...............................................................
Insured by FHA..................................................................................................
Guaranteed by VA....................................................................................
Not insured or guaranteed by FHA or VA...................................
Secured by other properties..............................................................................
Commercial and industrial lo a n s...........................................................................
Loans to individuals for personal expenditures....................
All other loans including overdrafts.............................................................

62.9
59.8

73.6
65.7

69.3
63.4

72.5
66.7

74.3
68.3

70.1
66.2

68.6
64.6

63.7
60.3

59.2
56.8
.7

Other assets . .

1.1
.0

1.0
.7

.4
.6

1.2
.2

1.8
.2

1.9
.1

1.8
.0

1.0
.0

9.2
7.7
31.8
10.0

.6
.2
56.3
6.9

1.2
3.6
52.2
5.4

1.5
2.9
54.6
6.3

2.7
3.8
53.3
6.5

3.7
4.5
48.7
7.3

7.0
7.1
41.7
7.0

9.9
7.9
31.4
10.1

11.2
8.8
24.8
11.3

.3
2.6
.2

.3
7.6
.0

.5
5.2
.2

.1
5.6
.1

.3
5.5
.2

.1
3.6
.2

.3
3.5
.2

.2
3.1
.1

.3
1,8
.3

.0

2.7

2.2

1.5

2.4

2.5

2.6

2.4

2.9

2.7

Total liabilities and surplus acco un ts...............................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Deposits —total...................................................................................................................
Savings deposits...........................................................................................................
Deposits accumulated for payment of personal loans...............................
Fixed maturity and other time deposits.........................................................
Demand deposits...........................................................................................................

90.9

91.3

90.5

90.7

90.9

90.9

90.8

45.2
.0
44.4
1.3

63.1
.0
28.0
.2

91.1

90.9

50.8
.0
38.9
.8

54.3
.0
35.3
1.1

50.2
.0
39.7
1.0

48.3
.0
41.5
1.1

45.1
.0
44.5
1.2

48.7
.0
40.9
1.5

ASSETS A D LIABILITIES O BANKS
N
F

100.0%

Cash and due from banks...............................................................................................
United States Government and agency securities.................................................
Corporate bonds...........................................................................................................
State, county and municipal obligations..................................................................
Other securities..........................................................................................
Federal funds sold and securities purchased under...........................................
agreements to resell........................................................................................................

42.9
.0
46.7
1.3

Miscellaneous liabilities . .

2.3

.1

1.5

1.4

1.5

1.9

2.3

2.0

2.5

Surplus accounts.................................................................................................................
Capital notes and debentures.................................................................................
Other surplus accounts............................................................................................

6.8

8.6

8.0

7.9

6.9

6.6

1.3
7.3

.3
7.7

.2
7.7

7.2
./

6.9

2
6.6

7.6
./

7.5

7.1

.2
6.7

.2
6.7

.3
6.3

Number of banks......................................................................................................................

325

3

12

29

77

98

31

35

40

' Dollar amoonts of assets and liabilities (in $000) of insured mutual savings banks in Assets and Liabilities—Commercial and Mutual Savings Banks (with 1977 Report of Income). December 31, 1977.

161




162

Banks with assets of —
Ratios
(In percent)

All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

143
2,741
4,937
3,349
1,697
783
344
160
237

14
168
298
183
104
84
36
22
64

35
537
807
463
252
120
59
36
43

60
1,074
1,723
1,071
518
190
107
42
51

21
614
1,198
794
339
155
48
21
24

2,023
2,946
2,813
2,125
1,423
998
664
464
241
193
126
104
271

133
128
132
113
91
80
57
52
29
37
26
22
73

253
360
358
348
278
229
155
112
60
47
40
27
85

712
954
924
731
479
351
230
163
91
59
32
36
74

477
730
674
500
323
190
129
75
36
30
14
12
24

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$1.0 billion
to
$4.9 billion

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$5.0 billion
or
more

8
241
587
460
190
84
26
7
12

4
93
259
275
181
75
25
10
16

0
7
35
37
42
17
11
6
11

0
4
19
36
34
20
13
5
4

1
3
11
28
30
33
15
11
7

0
0
0
2
7
5
4
0
5

232
400
395
216
151
89
51
39
14
10
8
3
7

135
230
218
167
74
41
28
16
9
7
4
3
6

31
55
32
16
7
10
6
3
1
2
2
1
0

18
36
38
18
10
4
6
3
0
0
0
0
2

25
44
37
15
10
3
2
1
1
1
0
0
0

7
9
5
1
0
1
0
0
0
0
0
0
0

Ratios of cash and due from depository
institutions to total assets of —

Less than 3 .0 ......................................................................
3.0 to 5 .9 9 .................................................................................
6.0 to 8 .9 9 .................................................................................
9.0 to 1 1 .9 9 ...............................................................................
12.0 to 1 4 .9 9 ............................................................................
15.0 to 1 7 .9 9 ............................................................................
18.0 to 20.99 ............................................................................
21.0 to 23.99 ............................................................................
24.0 or more...........................................................................

Ratios of U.S. Treasury securities to total assets of—

Less than 3.0..............................................................................
3.0 to 5 .9 9 .................................................................................
6.0 to 8 .9 9 .................................................................................
9.0 to 1 1 .9 9 ...............................................................................
12.0 to 1 4 .9 9 ............................................................................
15.0 to 1 7 .9 9 ............................................................................
18.0 to 20.99 ...........................................................................
21.0 to 23.99 ............................................................................
24.0 to 26.99 ............................................................................
27.0 to 29.99 ............................................................................
30.0 to 32.99 ............................................................................
33.0 to 35.99 ............................................................................
36.0 or more..............................................................................




FEDERAL DEPOSIT INSURANCE CORPORATION

Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1978
BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Ratios of obligations of States and political sub­
divisions to total assets of—
1,110
534
590
1,035
1,419
1,863
2,149
2,050
1,542
986
838
275

331
138
135
132
87
45
45
18
13
12
14
3

364
160
204
325
324
326
253
172
96
58
44
26

328
127
156
326
517
729
802
644
514
311
286
96

63
66
56
134
264
389
515
583
467
326
258
93

16
21
12
61
113
165
269
340
251
180
145
42

7
15
13
22
53
120
164
213
159
82
76
14

1
2
5
7
14
25
35
41
17
11
8
0

0
3
3
6
17
24
28
23
19
5
6
1

0
2
5
14
22
36
36
76
6
1
1
0

0
0
1
8
8
4
2
0
0
0
0
0

138
104
220
385
607
920
1,496
2,257
2,827
2,777
1,803
669
188

58
29
49
53
72
88
107
116
133
136
73
38
21

26
27
51
86
111
180
268
353
393
395
296
118
48

27
24
66
146
208
298
509
702
869
941
697
276
73

15
16
31
49
108
179
318
515
704
668
424
156
31

6
5
15
27
49
85
124
271
386
387
197
56
7

4
3
6
19
36
47
100
191
226
191
86
24
5

1
0
1
4
9
12
24
40
37
22
15
1
0

1
0
0
0
8
11
20
32
39
15
8
0
1

0
0
1
0
5
15
22
34
36
17
7
0
2

0
0
0
1
1
5
4
3
4
5
0
0
0

676
1,721
2,764
2,960
2,346
1,687
1,039
529
255
151
263

27
51
119
175
147
122
92
63
39
27
111

83
259
442
507
405
271
171
86
47
32
49

260
619
994
1,000
744
541
329
165
73
52
59

182
441
679
662
508
342
225
95
49
16
15

74
224
320
350
283
187
98
42
19
7
11

37
109
164
209
168
133
57
36
9
6
10

5
10
23
24
30
31
22
13
3
4
1

5
3
11
13
35
29
14
15
5
3
2

3
5
11
18
22
27
28
11
9
2
3

0
0
1
2
4
4
3
3
2
2
2

Ratios of net loans to total assets of—

Less
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
70.0
75.0

than 2 0 ...............................................................................
to 24.99 ............................................................................
to 29.99 ............................................................................
to 34.99 ............................................................................
to 39.99 ............................................................................
to 44.99 ............................................................................
to 49.99 ............................................................................
to 54.99 ............................................................................
to 59.99 ............................................................................
to 64.99 ............................................................................
to 69.99 ............................................................................
to 74.99 ............................................................................
or more...............................................................................

Ratios of total demand deposits to total deposits of—

Less
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0

than 2 0 ...............................................................................
to 24.99 ............................................................................
to 29.99 ............................................................................
to 34.99 ............................................................................
to 39.99 ............................................................................
to 44.99 ............................................................................
to 49.99 ............................................................................
to 54.99 ............................................................................
to 59.99 ............................................................................
to 64.99 ............................................................................
or more...............................................................................

163




ASSETS A D LIABILITIES O BANKS
N
F

Z e ro ................................................................................................
Less than 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 24.99 ............................................................................
25.0 or more...............................................................................

164

Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1978 (CONTINUED)
BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS
Banks with assets of —
Less
than
$5 million

$5.0 million
to
$9.9 million

345
405
722
1,126
1,521
1,833
1,699
1,503
1,168
903
692
468
379
307
261
1,059

6
3
8
19
44
59
80
55
81
59
60
49
47
44
36
323

17
26
52
99
193
260
279
251
216
176
150
96
73
66
77
321

Less than 7.0..............................................................................
7.0 to 8 .4 9 .................................................................................
8.5 to 9 .9 9 .................................................................................
10.0 to 1 1 .4 9 ............................................................................
11.5 to 1 2 .9 9 ............................................................................
13.5 to 1 4 .4 9 ............................................................................
15.5 to 1 5 .9 9 ...........................................................................
16.0 to 1 7 .4 9 ............................................................................
17.5 to 1 8 .9 9 ............................................................................
19.0 to 20.49 ............................................................................
20.5 to 2 1 .9 9 ...........................................................................
22.0 or more..............................................................................

658
2,142
3,301
2,792
1,861
1,121
737
468
298
205
151
657

4
26
63
95
119
101
73
65
44
48
26
309

Number of banks...........................................................................

14,391

973

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

Ratios of total equity capital to total assets of—

Less than 5 .................................................................................
5.0 to 5 .4 9 .................................................................................
5.50 to 5 .9 9 ..............................................................................
6.00 to 6 .4 9 ..............................................................................
6.50 to 6 .9 9 ..............................................................................
7.00 to 7 .4 9 ..............................................................................
7.50 to 7 .9 9 ..............................................................................
8.00 to 8 .4 9 ..............................................................................
8.50 to 8 .9 9 ..............................................................................
9.00 to 9 .4 9 ..............................................................................
9.50 to 9 .9 9 ..............................................................................
10.00 to 10.49...........................................................................
10.50 to 10.99...........................................................................
11.00 to 11.49...........................................................................
11.50 to 11.99............................................................................
12.00 or more...........................................................................

71
83
178
337
472
632
586
579
439
369
256
179
167
121
85
282

79
87
198
281
384
446
408
387
278
191
143
90
62
55
43
82

51
65
113
194
231
275
203
143
100
68
57
36
20
13
10
36

65
72
93
131
131
125
110
70
48
33
16
12
8
3
8
13

15
22
27
17
23
14
20
9
3
3
4
4
1
2
1
1

15
23
24
22
16
9
9
5
2
3
2
2
1
1
0
1

22
21
25
22
25
11
3
3
1
0
4
0
0
1
1
0

4
3
4
4
2
2
1
1
0
1
0
0
0
1
0
0

24
147
350
435
356
288
200
136
106
66
52
192

143
573
1,093
1,070
728
429
298
173
105
62
54
108

158
589
911
698
407
193
114
59
27
16
12
30

114
394
511
295
156
56
29
19
10
13
5
13

120
259
249
155
77
38
18
12
5
0
1
4

32
44
40
26
9
6
4
2
1
0
1
1

28
45
41
9
4
5
1
2
0
0
0
0

29
59
36
7
4
4
0
0
0
0
0
0

6
6
7
2
1
1
0
0
0
0
0
0

2,352

4,836

3,214

1,615

938

166

135

139

23

1

Ratios of total equity capital to total assets other
than cash and government securities of—




FEDERAL DEPOSIT INSURANCE CORPORATION

All
banks

Ratios
(In percent)

INCOME OF INSURED BANKS

Table 115.

Income of insured commercial banks in the United States (States and other areas), 1973 — 1978

Table 116.

Ratios of income of insured commercial banks in the United States (States and other areas),
1 9 7 3 -1 9 7 8

Table 117.

Income of insured commercial banks in the United States (States and other areas), 1978
Banks grouped by class of bank

Table 118.

Income of insured commercial banks operating throughout 1978 in the United States (States
and other areas)
Banks grouped by amount of assets

Table 119.

Ratios of income of insured commercial banks operating throughout 1978 in the United States
(States and other areas)
Banks grouped according to amount of assets

Table 1 20.

Income of insured mutual savings banks in the United States (States and other areas), 1973 —
1978

Table 121.

Ratios of income of insured mutual savings banks in the United States (States and other areas),
1 9 7 3 -1 9 7 8

The income data received and published by the Corporation relate to com­
mercial and mutual savings banks insured by the Corporation.
Commercial banks
Banks having assets of $25 million or more are required to report consoli­
dated income accounts on an accrual basis. Where the results would not be
significantly different, certain accounts may be reported on a cash basis.
Smaller banks continue to have the option of submitting their reports on a
cash or an accrual basis, except that unearned income on loans, and income
taxes, must be reported on a current accrual basis.
Prior to 1976, insured banks were required to submit a consolidated Report
of Income, including all majority-owned domestic premises subsidiaries




and other nonbank subsidiaries that were significant according to certain tests.
Beginning in 1976, the consolidated income report must include also all
majority-owned Edge Act and Agreement Corporations, and all majorityowned significant foreign subsidiaries and associated companies to the extent
that the income of such subsidiaries is remittable.
Banks were required to report income and expenses more frequently begin­
ning in 1976. Banks having assets of $300 million or more submit quarterly
statements and other insured banks submit semiannual reports. In this report,
income data are included for all insured banks operating at the end of the
respective years, unless indicated otherwise. In addition, when appropriate,
adjustments have been made for banks in operation during part of the year but
not at the end of the year.

166

Mutual savings banks
For a discussion of the report of income and expenses for mutual savings
banks prior to 1971, see the 1951 Annual Report, pp. 50-52.
Beginning December 31, 1971, income and expenses for mutual savings
banks are reported on a consolidated basis in the same manner as required of
commercial banks, including all domestic branches, domestic bank premises
subsidiaries, and other significant nonbanking domestic subsidiaries.
Beginning in 1972, banks with total resources of $25 million or more are
required to prepare their reports on the basis of accrual accounting. All banks




are required to report income taxes on an accrual basis.
Under operating income, certain income from securities formerly in the
"other" category are shown separately beginning 1971. Income from U.S.
Treasury securities is combined with income from U.S. Government agency
and corporation securities. Somewhat fewer items are detailed under operat­
ing expenses. Beginning in 1971, actual net loan losses (charge-offs less
recoveries) are included as an expense item in the operating section of the
report (see discussion below). In 1970 and prior years (table 120), the
amounts shown for this expense item were "recoveries credited to valuation
adjustment provisions on real estate mortgage loans" less the "realized losses
charged to valuation adjustment provisions on [these] loans," which were
reported in those years in the memoranda section.
The nonoperating sections of the report were condensed in 1971, with
realized gains and losses on securities, mortgage loans, and real estate
reported "net" rather than in separate sections and captions as before.
Detailed data formerly reported on reconcilement of valuation adjustment pro­
visions were almost entirely eliminated, except for a simple reconciliation of
surplus.
Sources of data
National banks and State banks in the District of Columbia not members of
the Federal Reserve System: Office of the Comptroller of the Currency.
State banks members of the Federal Reserve System. Board of Governors of
the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.
REPORTING OF LOSSES AND RESERVES
FOR LOSSES ON LOANS,

1948 - 1978
Commercial banks
Use of the reserve method of loan accounting was greatly encouraged
when, in 1947, the Internal Revenue Service set formal standards for loan loss
transfers to be permitted for Federal tax purposes. In their reports submitted to
the Federal bank supervisory agencies prior to 1948, insured commercial
banks included in non-operating income the amounts of recoveries on loans
(applicable to prior charge-offs fo r losses) w hich included, for

FEDERAL DEPOSIT INSURANCE CORPORATION

Several changes were made in 1976 in the format of the income reports
submitted by banks, mainly involving additional separate items on the face of
the report. Those changes are indicated in several historical data tables to
follow, with explanatory notes where necessary.
In 1976, the method used for determining "provision for possible loan
losses” was changed significantly. Also, beginning in 1976, "memoranda"
data in table 115 and elsewhere on charge-offs and recoveries to loan loss
reserves include also the gross charge-offs and recoveries on loans by banks
not on a reserve basis of accounting (see p. 167).
In December 1978 an abbreviated Report of Income was instituted for banks
with total consolidated assets less than $100 million.
"Applicable income taxes" on income before securities gains or losses is an
estimate of the tax liability that a bank would incur if its taxes were based sole­
ly on operating income and expenses; that is, if there were no security gains or
losses, no extraordinary items, etc. The amount reported by each bank con­
sists of Federal, State and local, and foreign income taxes, estimated using the
tax rates applicable to the reporting bank. Income taxes currently payable, and
deferred income taxes, are included.
The memoranda item "total provision for income taxes" includes applicable
taxes on operating income, applicable taxes on securities gains and losses and
extraordinary items, and tax effects on differences between the provision for
loan losses charged to operating expense and transfers to the reserve for bad
debt losses on loans. For banks generally the transfers to reserve for bad debts
have exceeded the provision for loan losses and consequently have tended to
reduce tax liability. (Since enactment of the Tax Reform Act of 1969, additions
to loan loss reserves for Federal tax purposes have been subject to a schedule
of limitations that will eventually put these reserves on a current experience
basis.)

167




of the formulas was discontinued. Banks are instructed to expense an amount
which in the judgment of bank management will maintain an adequate reserve,
and to provide a fully reviewable record for bank examination purposes of the
basis for the determination of the loan-loss provision.
Also beginning in 1976, banks not on a reserve basis report gross chargeoffs and recoveries; the difference— net losses— is reported as the "provision
for loan losses" in operating expenses. Banks continue to report all transfers to
and from reserves in the memoranda section of the income statement, but this
detailed information is not included in the tables to follow.
Mutual savings banks
While mutual savings banks reported loan losses and transfers to loss
reserves prior to 1951, the Corporation's published statistics did not show
these data separately, as was the case also for recoveries and transfers from
reserves. When the reporting form was revised extensively in 1951, these
various nonoperating expenses were itemized, and a memoranda section was
added to show also the losses and recoveries in reserve accounts. "Realized"
losses (and recoveries) for which no provision had been made, and transfers
were included in the nonoperating expense (income) section, while direct
write-downs and other loan losses for which provision had been made, were
reported separately in a memoranda account.
Following 1951, the loan loss section of the reports of condition and income
and expense remained unchanged until 1971. Beginning in 1971, the income
report was revised in a manner similar to changes in 1969 applicable to com­
mercial banks, to show actual net loan losses as operating expenses. (Mutual
savings banks did not have the option available to commercial banks of report­
ing losses based on recent years' average experience.) At the same time, all
valuation reserves ware merged into surplus accounts on statements of condi­
tion submitted to the Federal supervisory agencies.

INCOME O INSURED BANKS
F

banks using the reserve method, transfers from loan loss reserves. Direct
charge-offs and losses on loans, and transfers to reserves were included
together in non-operating expenses. Banks using the reserve method were not
required to report separately their actual losses, that is, charges against loan
loss reserves. (In statements of condition prior to 1948, insured banks
reported loans on a net basis only, after allowance for loan loss reserves.
Beginning with the June 30, 1948 report, banks were required to report gross
loans, with total valuation reserves, those set up pursuant to Internal Revenue
Service regulations, and other reserves shown separately. However, instalment
loans ordinarily continued to be reported net if the instalment payments were
applied directly to the reduction of the loan.)
Beginning with the year 1948, the income reports were revised to show
separately, in a memoranda section, the losses charged to reserves. These
items continued to be combined in the non-operating expense section until
1961. Recoveries credited to reserves were also itemized in the memoranda
section beginning in 1948, as were the amounts transferred to and from
reserves during the year. Each of these debits and credits was segregated as
to reserves set up pursuant to IRS regulations, and other reserves. Losses and
recoveries, and transfers to and from reserves, but not the specific tax-related
transfers, were separetely reported in the Corporation's published statistics.
Several important revisions were made in the format of the income reports
of commercial banks in 1969. A new entry entitled "provisions for loan
losses" was included under operating expenses. This item included actual loan
losses (charge-offs less recoveries) during the year or, at the option of the
bank, an amount derived by applying the average loan loss percentage for the
five most recent years to the average amount of loans during the current year.
Banks had the option also of providing a larger amount in any year than the
amount indicated by the formula. Beginning in 1976, required use

168

Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8
(Amounts in thousands of dollars)
Income item

1973

1974

1975

19761

19771

19781

53.036,327

68,160,779

66,558,502

80.663.853

90,357,541

113,581,682

Interest and fees on loans..............................................................................................................

35,375,638

47,138,740

43,379,504

51,645,260
4,486,655

58,990,506
4.887,917

76,182,124
6,712,575

Income on federal funds sold and securities purchased under agreements to
resell in domestic offices........................................................................................................
Interest on U.S. Treasury securities and on obligations of other U.S.
Goverment agencies and corporations3..............................................................................
Interest on obligations of States and political subdivisions of the U.S.3 .................
Income from all other securities3................................................................................................

2,486,695

3,712,304

2,294,621

1.984,757

2,476,313

3,682,320

4,937,659
3,864,785
371,987

5,459,834
4,453,876
467,873

6,789,577
4,918,518
533,244

Income from fiduciary activities..................................................................................................
Service charges on deposit accounts in domestic o ffices..............................................
Other service charges, commissions, and fe es.....................................................................
Other income3.....................................................................................................................................

1,459,879
1,326,992
1,251,651
1,961,041

1,506,206
1,459,858
1,408,525
2,553,563

1,601,968
1,555,360
1,653,549
3,832,161

8,391,374
5,134,676
856,053
534,254
1,794,732
1.635.463
2,182,927
2,017,702

8,863,977
5,365,327
968,672
699,273
1,980,395
1,806.509
2,408,698
1,909,954

9,384,132
6,038,829
1,094,853
861,989
2,139,266
2,048,989
2,937,435
2,499,170

Operating expenses— t o t a l ................................................................................................

44,330,459

58,910,355

57,582,040

70,750,168

78,791,583

98,480,372

Salaries and employee benefits..................................................................................................
Interest on time certificates of deposit of $100,000 or more issued by
domestic offices^
...........................................................................................................
Interest on deposits in foreign offices^.
........................................................................
Interest on other deposits..............................................................................................................
Expense of federal funds purchased and securities sold under agreements to
repurchase in domestic offices.............................................................................................
Interest on demand notes issued to the U.S. Treasury and other borrowed
money .................................................................................................................................................
Interest on subordinated notes and debentures......................................................................
Occupancy expense of bank premises, net, and furniture and equipment
expense..............................................................................................................................................
Provision for possible loan losses...............................................................................................
Other operating expenses.................................................................................................................

10,127,808

11,586,433

12,686,720

14,752,297

16,346,067

18,743,800

6,763.105
10,215,971
21,832,936

11,736.511
14,558,371
23,918,087

19,834,817

27,888,772

26,245,936

7,111,054
8,749,673
19,143,238

3,899,016

5,985,504

3,322,993

3.311,741

4,542,669

7,264,001

503,941
254,458

917,638
283,203

377,195
294,098

667,197
344,952

818,374
392,274

1,457,931
448,488

1,782,956
1,264,695
5,461,527

2,052,345
2,286.132
6,549,607

2,324,644
3,612,410
7,185,305

2,764,804
3,691,378
8,492,452

3.049,121
3.301,041
9.599,250

5,584,768
3,524,704
11,243,711
15,101,310

Income before income taxes and securities gains or lo s s e s ....................................

8,705,868

9,250,424

8,976,462

9,913,685

11,565,958

Applicable income t a x e s .....................................................................................................

2,121,100

2,084,028

1,792,696

2,290,772

2,831,871

4,162,112

Income before securities gains or lo sses.......................................................................

6,584,768

7,166,396

7,183,766

7,622,913

8,734,087

10,939,198

Securities gains or losses, gross......................................................................................

-7 3 ,4 5 8

-1 6 1 ,2 4 7

34,376

312,267

141,674

-4 4 7 ,1 2 4

Applicable income ta xe s.................................................................................................................
Securities gains or losses, net.....................................................................................................

-4 6 ,3 2 3
-2 7 ,1 3 5

-7 4 ,1 9 5
-8 7 .0 5 2

— 2,690
37,066

118,233
194,034

43,189
98,485

-2 2 2 ,2 3 0
-2 2 4 ,8 9 4

Income before extraordinary item s....................................................................................

6,557,633

7,079,344

7,220,832

7,816,947

8,832,572

10,714,304

Extraordinary items, gross...................................................................................................

30,817

17,877

46,823

28,104

55,082

43,737

Applicable income ta xe s.................................................................................................................
Extraordinary items, net....................................................................................................................

9,256
21,561

5,957
11,920

13,044
33,779

1,774
26,330

8,249
46,833

- 1 ,4 9 3
45,230

Net incom e...............................................................................................................................

6,579,194

7,091,264

7,254,611

7,843,277

8,879,405

10,759.534




FEDERAL DEPOSIT INSURANCE CORPORATION

Operating income— to ta l.....................................................................................................

Memoranda

2,429,330

2,768,104

3,032,444

3,036,222

3,304,789

3,721,926

2.425,633
3.697

2,765,674
2,430

3,030,230
2,214

3,033,628
2,594

3,301,525
3,264

3,718,211
3,715

Provision for income taxes —to ta l..................................................................................................
U Federal income taxes..........................................................................................................
.S.
U State and local income taxes..........................................................................................
.S.

1,715,439

1,759,739

1,727,041

2,410,779

2,883,309

3,938,389

1.336,317
379,122

1,357,934
402.345

1,225,927
501,114

1,371,638
491,712
547,429

1,773,219
525.833
584.257

2,537,962
656,274
744,153

Net loan losses or recoveries —to ta l............................................................................................
Recoveries on loans.........................................................................................................................
Losses on loans..................................................................................................................................

-1,159,187

-1,956,931

-3 ,242.830

-3 ,50 3 ,2 4 6

-2 ,797,105

388,846
-1,548,033

461,350
-2,418,281

547,380
-3,790,210

687,401
-4,190,647

813.900
-3.611.005

A sse ts— to ta l.........................................................................................................................

776,702,572

871,394,495

924,946,738

1,123,469,176

1,249,961,111

1,403,493,088

Cash and due from depository institutions.............................................................................
U.S. Treasury securities and obligations of other U.S. agencies
and corporations3...................................................................................................................
Obligations of states and political subdivisions............................................................
Other securities^..................................................................................................................................
Net loans6.............................................................................................................................................
All other a sse ts..................................................................................................................................

110,168,143

122,224,773

126,838,007

194,312,500

218,357,890

248,632,890

58,603,925
89,241,780
29,355,715
453,238,907
36,094,102

52,822,043
94,524,535
35,256,603
519,572,131
46,994,410

65,992,148
98,953,279
39,203,344
536,061,723
57,898,237

88,520,749
102,733,896
51,110,347
632,696,842
54,094,842

96,664,647
108,429,263
54,293,953
709,816,228
62,399,129

131,799,055
117,331,876
20,129,242
764,772,496
74,589,592

Liabilities and equity capital— total................................................................................

776,702,572

871,394,495

924,946,738

1,123,469.176

1,249,961,111

1,403,493,088

Total deposits.......................................................................................................................................
Demand deposits.........................................................................................................................
Tim and savings deposits....................................................................................................
e
Deposits in foreign offices.........................................................................................
Subordinated notes and debentures............................................................................................
Other borrowings and all other liabilities................................................................................
Total equity capital............................................................................................................................

640,806,208

710,029,868

756,948,586

944,238,914

1,043,478,575

1,157,408,490

293,708,282
347,097,926

307,363,186
402,666,682

313,836,391
443,112,195

320,488,016
474,499,317
149,251,581

347.903.682
519.939.386
175 635 507

377.305.796
592.066.952
188.034.718

4,044,715
80,677,846
51,173,803

4,204,891
100,573,737
56,585,999

4,328,561
101,918,202
61,751,389

4,865,972
105,647,909
68,716,381

5,500,132
125,239,154
75,743,250

5,952,193
156,087,365
84,028,113

Number of employees on payroll (end of period).....................................................................

1,093,616

1,160,585

1,226,415

1,255,025

1,320,598

1,319,828

Number of banks (end of period)....................................................................................................

13,976

14,228

14,384

14,411

14,412

14,391

Dividends declared on equity capital —to ta l.............................................................................
Cash dividends declared on com on stock........................................................................
m
Cash dividends declared on preferred stock........................................................................

-2,496,977

1.074,435
3,571,412

Average assets, liabilities, and equity capital^

INCOME O INSURED BANKS
F

1Data are from fully consolidated reports of income, including domestic and foreign offices.
2Figures not available before 1976.
^Securities held in trading accounts are included in "All other assets"; income from these securities is included in "Other income."
^Included in "Interest on other deposits" before 1976.
^Averages of amounts reported at beginning, middle, and end of year. 1976, 1977, 1978 averages are based on consolidated reports, domestic and foreign.
®For years before 1976, data are gross loans. Includes federal funds sold.

169




1974

1975

19761

$100.00

$100.00

$100.00

Interest and fees on loans2..............................................................................................................

71.39

74.60

68.62

Interest on U.S. Treasury securities and on obligations of other U.S.
Government agencies and corporations.................................................................................
Interest on obligations of States and political subdivisions...............................................
Income from all other securities...................................................................................................
Income from fiduciary activities......................................................................................................
Service charges on deposit accounts in domestic offices.................................................
Other service charges, commissions, and fees.........................................................................
Other operating income.......................................................................................................................

6.53
7.29
3.48
2.75
2.50
2.36
3.70

5.05
6.53
3.65
2.21
2.14
2.07
3.75

6.67
7.39
4.33
2.41
2.34
2.48
5.76

Income item

19771

19781

$100.00

$100.00

$100.00

66.49
5.56

68.03
5.41

70.31
5.91

7.41
6.37
4.05
2.23
2.03
2.71
3.16

7.08
5.94
3.80
2.19
2.00
2.67
2.88

8.26
5.32
.96
1.88
1.80
2.59
2.96

Operating expenses— to ta l...................................................................................................

83.58

86.43

86.51

87.71

87.20

86.70

Salaries and employee benefits......................................................................................................
Interest on deposits in domestic offices....................................................................................

19.10
37.40

17.00
40.92

19.06
39.43

Interest on demand notes issued to the U.S. Treasury and other borrowed money4 .
Occupancy expense of bank premises, net, and furniture and equipment expense .
Provision for possible loan lo sses................................................................................................
Other operating expenses.................................................................................................................

8.78
5.62
2:38
10.30

10.54
5.01
3.35
9.61

6.00
5.79
5.43
10.80

18.29
32.55
10.85
5.36
5.56
4.57
10.53

18.09
31.65
11.31
6.37
5.51
3.65
10.62

16.50
31.39
12.82
8.07
4.92
3.10
9.90

Income before income taxes and securities gains or l o s s e s ....................................

16.42

13.57

13.49

12.29

12.80

13.30

6.83
5.71
1.12
.85

7.82
6.76
1.06
.81

7.20
6.23
.97
.78

7.18
6.30
.88
.70

7.23
6.30
.93
.71

8.09
7.02
1.08
.77

Amounts per $ 1 00 of total assets^

Operating income—total..........................................................................................................................
Operating expenses—to ta l....................................................................................................................
Income before income taxes and securities gains or lo sses.................................................
Net income....................................................................................................................................................

.08
- .2 5
.25

Recoveries credited to allowance......................................................................................................
Losses charged to allowance.................................................................................................................
Provision for possible loan losses
....
Amounts per $ 1 0 0 of total equity capital5

Net income....................................................................................................................................................
Cash dividends declared on common stock....................................................................................
Net change in capital accounts (less cash dividends on common and preferred stock) .

12.86
4.74
8.11

12.53
4.89
7.64

11.75
4.91
6.84

11.41
4.42
6.99

11.72
4.36
7.36

12.80
4.42
14.796

9.76

Special ratios^

8.35

9.79

8.52

8.48

8.66

5.91

6.51

6.73

6.75

6.62

7.12

4.33

4.71

4.97

5.00

4.95

4.80

Income on loans per $100 of loans2.......................................................................................
Income on U.S. Treasury and other U.S. Government agency and corporation
securities per $100 of those securities...........................................................................
Income on obligations of states and political subdivisions per $100 of
those obligations...........................................................................................................
Service charges on demand deposits in domestic offices per $100 of
those deposits.............................................................................................................................
Interest paid on time and savings deposits in domestic offices per $100 of
those deposits........................................................................................................................................

.45

.47

.50

.51

.52

.54

5.71

6.93

5.92

5.53

5.50

6.02

Number of banks at end of period......................................................................................................

13,976

14,228

14,384

14,411

14,412

14,391

1Based on consolidated (including foreign) reports of income— see table 115, note 1.
2|ncludes federal funds sold.
3|Mot available before 1976.
^Includes interest on federal funds purchased, subordinated notes and debentures, and other borrowed money.
^Ratios are based on averages of assets and liabilities— see table 115 notes 5 and 6.
6|ncludes all changes; prior to 1978 the ratio represents changes due to net income only.




FEDERAL DEPOSIT INSURANCE CORPORATION

1973

Amounts per $1 00 of operating income
Operating income— total........................................................................................................

17
0

Table 116. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8

Table 117. INCOME OF ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1978
BANKS GROUPED BY CLASS OF BANK
(Amounts in thousands of dollars)
Members F.R. System
Income item
National

Member

Non­
members
F.R. System

Operating
throughout
the year

Operating
less than
full year

113.581,682

67,842,394

21,288.380

24,450,908

113.521.758

59,924

Interest and fees on lo ans...................................................................................................................................................
Interest on balances with depository institutions.......................................................................................................
Income on federal funds sold and securities purchased under agreements to resell in domestic
o ffices......................................................................................................................................................................................
Interest on U.S. Treasury securities and on obligations of other U.S. Government agencies
and corporations....................................................................................................................................................................
Interest on obligations of States and political subdivisions...................................................................................
Income from all other securities.......................................................................................................................................
Income from direct lease financing.................................................................................................................................
Income from fiduciary activities.......................................................................................................................................
Service charges on deposit accounts in domestic offices......................................................................................
Other service charges, commissions, and f e e s ..........................................................................................................
Other operating income........................................................................................................................................................

76,182,124
6,712,575

45,997,682
4,407,311

13,927,640
1,979,252

16,256,802
326,012

76,151,465
6,710,554

30,659
2,021

3,682,320

2,197,794

610,418

874,108

3,673,011

9,309

9,384,132
6,038,829
1,094,853
861,989
2,139,266
2,048,989
2,937,435
2,499,170

4,721,572
3,252,138
693,157
639,358
1,214,782
1,089,525
1,932,197
1,696,878

1,457,909
1,003,170
201,213
166,597
697,045
244.502
467,186
533,448

3,204,651
1,783,521
200,483
56,034
227,439
714,962
538,052
268,844

9,372,333
6,037,652
1,094,541
861,988
2,138,961
2,047,616
2,936,362
2,497,275

11,799
1,177
312
1
305
1,373
1,073
1,895

Operating expenses— to tal................................................................................................................................

98.480.372

58,975,758

18,807,300

20,697,314

98,419,998

60,374

Salaries and employee benefits..........................................................................................................................................
Interest on time certificates of deposit of $100,000 or more issued by domestic offices....................
Interest on deposits in foreign offices...........................................................................................................................
Interest on other deposits......................................................................................................................................................
Expense of federal funds purchased and securities sold under agreement to repurchase in
domestic offices....................................................................................................................................................................
Interest on demand notes issued to the U.S. Treasury and other borrowed money..................................
Interest on subordinated notes and debentures..........................................................................................................
Occupancy expense of bank premises, net, and furniture and equipment expense..................................
Provision for possible loan loss..........................................................................................................................................
Other operating expenses......................................................................................................................................................

18,743,800
11,736,511
14,558,371
23,918,087

10,845,175
7,021,874
10,139,704
12,873.945

3,270,921
2,564,736
4,260.520
2,947,332

4,627,704
2,149,901
158,147
8,096,810

18,727,918
11,731,711
14,558,221
23,900,369

15,882
4,800
‘ 150
17,718

7,264,001
1,457,931
448,488
5,584,768
3,524,704
11,243,711

4,989,628
1,023,090
234,334
3,194,270
2,131,211
6,522,527

1,813,834
380,086
99,349
1,029,957
639,573
1,800,992

460,539
54,755
114,805
1,360,541
753,920
2,920,192

7,262,047
1,457,819
448,164
5,579,539
3,522,959
11,231,251

1,954
112
324
5,229
1,745
12,460
-4 5 0

Income before income taxes and securities gains or l o s s e s .................................................................

15,101,310

8,866,636

2,481,080

3,753,594

15,101,760

Applicable income taxes.....................................................................................................................................

4,162,112

2,591,042

735,925

835,145

4,161,110

1,002

Income before securities gains or lo s s e s ....................................................................................................

10,939,198

6,275,594

1,745,155

2,918,449

10,940,650

INCOME O INSURED BANKS
F

Operating income— t o t a l ...................................................................................................................................

- 1 ,4 5 2

Securities gains (losses), g ro ss......................................................................................................................

- 4 4 7 ,1 2 4

-2 5 3 ,5 2 8

- 1 2 4 ,5 1 8

-6 9 ,0 7 8

-4 4 7 ,1 7 1

47

Applicable income taxes........................................................................................................................................................
Securities gains (losses), n e t.............................................................................................................................................

-2 2 2 ,2 3 0
-2 2 4 ,8 9 4

-1 2 5 ,2 3 2
-1 2 8 ,2 9 6

-6 8 ,2 2 9
-5 6 ,2 8 9

- 2 8 ,7 6 9
-4 0 ,3 0 9

-2 2 2 ,2 5 3
-2 2 4 ,9 1 8

23
24

Income before extraordinary ite m s .................................................................................................................

10,714,304

6,147,298

1,688,866

2,878,140

10.715.732

-1 ,4 2 8

Extraordinary items, g r o ss ................................................................................................................................

43,737

26,858

- 1 ,9 0 2

18.781

43.808

-7 1

Applicable income taxes........................................................................................................................................................
Extraordinary items, n et........................................................................................................................................................

- 1 ,4 9 3
45,230

808
26,050

- 2 .6 2 5
723

324
18,457

- 1 ,4 8 2
45,290

-1 1
-60

171




172

Table 117. INCOME OF ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1978
BANKS GROUPED BY CLASS OF BANK-CONTINUED
(Amounts in thousands of dollars)
Members F.R. System
Income item

Total

Nonmembers
F.R. System

National

Net in co m e .............................................................................................................................................................

10,759,534

Member

6,173,348

1,689,589

2,896,597

Operating
throughout
the year

Operating
less than
full year

10,761,022

-1 ,4 8 8

3,721,926

2,196,029

732,044

793,853

3,721,592

334

3.718,211
3.715

2,194,664
1,365

731,852
192

791,695
2,158

3.717.877
3.715

334
0

Provision for income taxes— t o t a l..................................................................................................................

3,938,389

2,466,618

665,071

806,700

3,937,380

1,009

U.S. Federal income taxes.................................................................................................................................................
U.S. State and local income taxes...............................................................................................................................
Foreign income taxes.........................................................................................................................................................

2.537,962
656.274
744,153

1,582.351
338.712
545.555

295,850
176,103
193,118

659,761
141,459
5,480

2.537.038
656,189
744,153

924
85
0

Dividends declared on equity capital— to ta l................................................................................................

Cash dividends declared on common stock..............................................................................................................
Cash dividends declared on preferred stock...........................................................................................................

Net loan losses (recoveries)— to t a l...............................................................................................................

Recoveries credited to allowance..................................................................................................................................
Losses charged to allowance...........................................................................................................................................
Number of full-time equivalent employees at end of period. .
Number of banks........................................................................................................................................................................




-2 ,4 9 6 ,9 7 7

-1 ,4 3 8 ,7 0 5

-4 9 9 ,7 9 9

-5 5 8 ,4 7 3

-2 ,4 9 6 ,0 0 0

-9 7 7

685.906
2.124.611

178,857
678,656

209.672
768.145

1.074.235
3.570.235

200
1.177

1,319,828

733,696

207,653

378,479

1,318,040

1,788

14,391

4,564

1,000

8,827

14,243

148

1,074,435
3,571,412

FEDERAL DEPOSIT INSURANCE CORPORATION

MEMORANDA

Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES
(STATES AND OTHER AREAS)
BANKS GROUPED BY AMOUNTS OF ASSETS
(Amounts In thousands of dollars)
EJanks with assets of —
Income item

All
banks!

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

113,521,758

238,241

1,332.840

6,171.621

8,702,436

8,677.812

11,411,770

4,890,473

6,801,841

20,809.009

44,485,715

Interest and fees on loans.......................................................
Interest on balances with depository institutions . . . .
Income on federal funds sold and securities
purchased under agreements to resell in
domestic offices.......................................................
Interest on U.S. Treasury securities and on
obligations of other U.S. Government agencies
and corporations................................................................
Interest on obligations of States and political
subdivisions.................................................................................
Income from all other securities............................................
Income from direct lease financing......................................
Income from fiduciary activities...........................................
Service charges on deposit accounts in domestic
offices.............................................................................................
Other service charges, commissions, and fees..............
Other operating income.............................................................

76,151,465
6,710,554

142,972
2,244

845,519
9,299

4,052,450
36,099

5,832,373
48,571

5,895,812
52,424

7,658,493
93,483

3,232,540
42,749

4,495,531
108,572

13,720,268
999,469

30,275,507
5,317,644

3,673,011

17,000

73,840

272,925

323,307

272,558

350,453

206,338

270,900

773,975

1,111,715

9,372,333

52,659

246,613

939,734

1,165,330

1,063,396

1,404,176

554,606

703,835

1,685,213

1,556,771

6,037,652
1,094,541
861,988
2,138,961

7,209
1,562
62
268

62,930
7,258
877
3,886

431,260
34,588
4,567
24,224

714,525
53,699
10,053
28,956

737,408
56,544
19,186
84,176

939,665
76,143
32,092
185,613

357,400
38,801
27,562
118,152

471,848
74,696
48,036
176,283

1,125,864
122,784
148,924
671,659

1,189,543
628,466
570,629
845,744

2,047,616
2,936,362
2,497,275

.6,711
5,038
2,516

39,980
28,907
13,731

197,458
123,217
55,099

269,872
173.395
82,355

244,291
162,764
89,253

285,551
258,567
127,534

112,445
137,511
62,369

160,211
185,778
106,151

402,017
660,252
498,584

329,080
1,200,933
1,459,683

Operating expenses— t o t a l ..............................................

98,419,998

203.550

1,136,041

5,138,235

7,221,122

7.278.994

9,729,278

4,207,121

5.917,614

18.228.388

39,359,655

Salaries and employee benefits...........................................
Interest on time certificates of deposit of
$100,000 or more issued by domestic offices...........
Interest on deposits in foreign offices................................
Interest on other deposits.......................................................
Expense of federal funds purchased and securities
sold under agreement to repurchase in domestic
offices.............................................................................................
Interest on demand notes issued to the U.S. Treasury
and other borrowed money.................................................
Interest on subordinated notes and debentures..............
Occupancy expense of bank premises, net, and
furniture and equipment expense.....................................
Provision for possible loan lo ss...........................................
Other operating expenses..........................................................

18,727,918

60,092

281,980

1,165,882

1,558,028

1,568,375

2,104,519

923,527

1,306,713

3,718,621

6,040,181

11,731,711
14,558,221
23,900,369

6,803
0
82,125

46,900
0
510,208

284,468
0
2,377,949

518,995
0
3,304,283

686,448
0
3,107,305

1,142,244
5,755
3,691,152

555,596
2,174
1,349,948

848,299
76,125
1,635,555

2,683,512
1,074,685
4,043,536

4,958,446
13,399,482
3,798,308

7,262,047

689

5,144

34,815

66,980

117,822

351,222

275,278

496,861

2,169,336

3,743,900

1,457,819
448,164

138
143

1,414
1,146

6,274
10,303

16,730
22,005

20,695
28,570

36,474
55,666

18,655
24,150

29,222
39,184

167,540
133,232

1,160,677
133,765

5,579,539
3,522,959
11,231,251

12,699
7,517
33,344

71,449
47,188
170,612

312,836
187,004
758,704

446,275
255,683
1,032,143

467,386
250,022
1,032,371

668,393
315,942
1,357,91 1

302,288
139,112
616,393

448,849
217,246
819,560

1,156,158
749,099
2,332,669

1,693,206
1,354,146
3,077,544

Income before income taxes and securities gains or
lo ss e s .................................................................................

15,101.760

34,691

196,799

1,033,386

1,481,314

1,398,818

1,682,492

683,352

884,227

2,580.621

5,126,060

Applicable income t a x e s ...................................................

4 ,1 6 1 ,1 1 0

6,647

41 ,3 04

2 2 2 ,5 3 2

3 2 9,01 3

2 9 9,10 3

3 3 7 ,5 8 0

143,31 7

184,21 6

648.88 7

INCOME O INSURED BANKS
F

Operating income— to ta l...................................................

1,948,511

173




174

Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES
(STATES AND OTHER AREAS)-CONTINUED
BANKS GROUPED BY AMOUNTS OF ASSETS
(Amounts in thousands of dollars)
Banks with assets of —
All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

Income before securities gains or lo sse s....................

10,940,650

28.044

155,495

810,854

1,152,301

1,099,715

1.344,912

540,035

700,011

1,931,734

3,177,549

Securities gains (losses), g r o s s ....................................

-4 4 7 ,1 7 1

-4 9 8

-3 ,5 0 6

-1 5 ,1 0 9

- 2 5 ,3 1 2

-2 8 .3 1 6

- 3 8 ,4 7 8

-1 9 ,2 6 9

- 1 7 ,4 9 3

-1 0 8 ,6 1 2

-1 9 0 ,5 7 8

Applicable income ta x e s..........................................................
Securities gains (losses), net.................................................

-2 2 2 ,2 5 3
-2 2 4 ,9 1 8

-1 0 2
-3 9 6

-8 1 9
-2 ,6 8 7

-4 ,9 2 4
-1 0 ,1 8 5

-9 ,6 1 1
-15 ,7 0 1

-1 1 ,9 6 4
- 1 6 ,3 5 2

-1 9 ,0 0 6
-1 9 ,4 7 2

- 9 ,5 1 0
- 9 ,7 5 9

-9 ,1 2 8
-8 ,3 6 5

-5 3 ,6 9 6
-5 4 ,9 1 6

-1 03,493
-8 7 ,0 8 5

Income before extraordinary item s.................................

10.715,732

27.648

152,808

800,669

1,136,600

1,083,363

1,325,440

530,276

691,646

1,876,818

3,090,464

4 ,322

- 5 ,3 0 0

Extraordinary items, gross..............................................

4 3 ,8 0 8

119

823

4,219

7.316

7,373

13,943

7 ,118

3 ,875

Applicable income ta xe s..........................................................
Extraordinary items, net.............................................................

- 1 ,4 8 2
45,290

6
113

9
814

367
3,852

823
6,493

-3 6
7,409

693
13,250

-2 6 5
7,383

434
3,441

-643
4,965

-2 ,8 7 0
-2 ,4 3 0

Net income............................................................................

10,761,022

27,761

153,622

804.521

1,143,093

1,090,772

1,338,690

537,659

695,087

1,881,783

3,088,034

Dividends declared on equity capital— total...............

3,721,592

6.739

33,058

179,766

286,873

319,734

433,208

180,793

272,076

776,079

1.233.266

Cash dividends declared on common stock.................
Cash dividends declared on preferred stock.................

3.717,877
3,715

6.739
0

33,044
14

179,487
279

286,186
687

319,100
634

432,252
956

180.204
589

272.053
23

775,546
533

1.233.266
O

Provision for income taxes— total.................................

3,937,380

6,551

40,494

217,975

320,225

287,103

319,267

133,542

175.522

594,548

1,842,148

U.S. Federal income taxes....................................................
U State and local income taxes....................................
.S.
Foreign income taxes................................................................

2,537.038
656.189
744.153

5,624
927
0

34,772
5,722
0

189,286
28,689
0

281,306
38,919
O

249,175
37,928
0

268,449
50,797
21

114.824
18.685
33

138.091
35,524
1,907

440,018
106,064
48,466

815.488
332.934
693.726

Memoranda

Net loan losses (recoveries)— total...............................

Recoveries credited to allowance......................................
Losses charged to allowance.................................................
Number of full-time equivalent employees
at end of period.......................................................
Number of banks...........................................................................

- 2 ,4 9 6 ,0 0 0

- 5 .8 6 0

-3 6 ,9 1 2

-1 3 6 ,0 7 7

- 1 8 4 ,1 1 8

-2 2 7 ,8 4 5

- 1 1 6 ,5 8 7

- 1 6 3 .8 8 6

-5 2 5 ,4 2 7

-9 2 0 ,3 8 9

2,647
8,507

14,620
51,532

60,309
196,386

85,934
270,052

76,362
255,261

89,149
316.994

45.264
161.851

60,591
224,477

196.788
722.215

442.571
1.362.960

1,318,040

5,515

23,268

94,541

128,132

129,205

170,476

72,978

101,723

262,175

330,027

14,243

874

2,317

4,829

3,210

1,614

935

164

135

138

27

iThis group of banks is the same as the group shown in table 11 7 under the heading “ Operating throughout the year."




-1 7 8 ,8 9 9

1.074.235
3.570.235

FEDERAL DEPOSIT INSURANCE CORPORATION

Income item

Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES
(S T A T E S A N D O T H E R A R E A S ) 1
BANKS GROUPED BY AMOUNT OF ASSETS
Banks with assets of —
Income item

All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

Operating income— to ta l.................................................................................

$100 .0 0

$1 00.00

$100 .0 0

$100 .0 0

$ 1 0 0 .0 0

Interest and fees on loans..........................................................................................
Interest on balances with depository institutions...........................................
Income on federal funds sold and securities purchased under
agreements to resell in domestic offices..........................................................
Interest on U.S. Treasury securities and on obligations of other U.S.
Government agencies and corporations^.............................................................
Interest on obligations of States and political subdivisions.......................
Income from all other securities^..............................................................................
Income from fiduciary activities..............................................................................
Service charges on deposit accounts in domestic o ffices..........................
Other service charges, commissions, and fees.................................................
Other operating income2................................................................................................

67.08
5.91

60.01
.94

63.44
.70

65.66
.58

67.02
.56

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$ 1 0 0 .0 0

$ 1 00.00

$ 1 0 0 .0 0

67.94
.60

67.11
.82

66.10
.87

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

$1 00 .0 0

$100.00

$100.00

66.09
1.60

65.93
4.80

68.06
11.95

Amounts per $ 1 0 0 of operating income

7.14

5.54

4.42

3.72

3.14

3.07

4.22

3.98

3.72

2.50

8.26
5.32
.96
1.88
1.80
2.59
2.96

22.10
3.03
.66
.11
2.82
2.11
1.08

18.50
4.72
.54
.29
3.00
2.17
1.10

15.23
6.99
.56
.39
3.20
2.00
.97

13.39
8.21
.62
.33
3.10
1.99
1.06

12.25
8.50
.65
.97
2.82
1.88
1.25

12.30
8.23
.67
1.63
2.50
2.27
1.40

11.34
7.31
.79
2.42
2.30
2.81
1.84

10.35
6.94
1.10
2.59
2.36
2.73
2.26

8.10
5.41
.59
3.23
1.93
3.17
3.12

3.50
2.67
1.41
1.90
.74
2.70
4.55

Operating expenses— t o t a l ............................................................................

86.70

85.44

85.23

83.26

82.98

83.88

85.26

86.03

87.00

87.60

88.48

Salaries and employee benefits..............................................................................
Interest on deposits in domestic o ffices.............................................................
Interest on deposits in foreign offices..................................................................
Expense of federal funds purchased and securities sold under
agreements to repurchase in domestic offices..............................................
Interest on demand notes issued to the U.S. Treasury
and other borrowed money....................................................................................
Occupancy expense of bank premises, net, and furniture and
equipment expense.....................................................................................................
Provision for possible loan lo ss..............................................................................
Other operating expenses.............................................................................................

16.50
31.39
12.82

25.22
37.33
.00

21.16
41.80
.00

18.89
43.14
.00

17.90
43.93
.00

18.07
43.72
.00

18.44
42.35
.05

18.88
38.96
.04

19.21
36.52
1.12

17.87
32.33
5.16

13.58
19.68
30.12

6.40

.29

.39

.56

.77

1.36

3.08

5.63

7.30

10.42

8.42

1.28

.06

.11

.10

.19

.24

.32

.38

.43

.81

2.61

5.32
3.10
9.89

5.38
3.16
14.00

5.43
3.54
12.80

5.25
3.03
12.29

5.39
2.94
11.86

5.71
2.88
11.90

6.35
2.77
11.90

6.50
2.84
12.60

7.18
3.19
12.05

6.20
3.60
11.21

4.11
3.04
6.92

Income before income taxes and securities gains or lo ss e s...............

13.30

14.56

14.77

16.74

17.02

16.12

14.74

13.97

13.00

12.40

11.52

8.09
7.02
1.08
.77

6.48
5.54
.94
.76

7.20
6.14
1.06
.83

7.65
6.37
1.28
1.00

8.12
6.74
1.38
1.07

8.04
6.75
1.30
1.01

8.27
7.05
1.22
.97

7.70
6.62
1.08
.85

7.96
6.92
1.03
.81

8.35
7.31
1.04
.75

INCOME O INSURED BANKS
F

3.24

8.11
7.17
.93
.56

Amounts per $ 1 0 0 of total assets3

Operating income—total................................................................................................
Operating expenses—total.............................................................................................
Income before income taxes and securities gains or losses..........................
Net income..........................................................................................................................

175




176

Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES
(STATES AND OTHER AREAS) 1 - CONTINUED
BANKS GROUPED BY CLASS OF BANK - CONTINUED
Banks with assets of —
Income item

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

$25.0 million
to
$49.9 million

$50.0 million
to
$99.9 million

$100.0 million
to
$299.9 million

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

.08
- .2 5
.25

.07
- .2 3
.20

.08
- .2 8
.25

.07
- .2 4
.23

.08
- .2 5
.24

.07
- .2 4
.23

.06
- .2 3
.23

.07
- .2 5
.22

.07
- .2 6
.25

.08
- .2 9
.30

.08
- .2 5
.25

12.93
- 4 .4 7

6.62
- 1 .6 1

8.92
- 1 .9 2

11.97
- 2 .6 7

13.59
- 3 .4 0

13.47
- 3 .9 4

13.79
- 4 .4 5

12.44
- 4 .1 7

12.45
- 4 .8 7

12.73
- 5 .2 5

13.17
- 5 .2 6

14.70

7.57

10.59

13.65

15.48

15.28

16.10

14.11

15.45

15.73

13.65

Amounts per $ 1 0 0 of equity c a p ita l

Net income.........................................................................................................................
Cash dividends declared on common sto ck..........................................................
Net change in capital accounts (less cash dividends on common and
preferred sto ck)..............................................................................................................
Special ratios^

Number of banks at end of period...........................................................................

9.87

7.53

8.35

8.99

9.70

9.70

10.06

9.39

9.80

10.20

9.99

7.12

5.93

6.45

6.80

7.29

7.05

7.40

6.85

7.05

7.31

7.09

5.15

4.74

4.47

4.75

5.05

4.95

5.11

4.78

4.90

5.28

5.72

.55

.52

.69

.81

.85

.76

.69

.56

.57

.54

.29

6.15

4.59

5.14

5.51

5.93

5.91

6.15

5.70

6.00

6.40

6.66

14,243

874

2,317

4,829

3,210

1,614

935

164

135

138

27

Income on loans per $100 of loans.....................................................................
Income on U.S. Treasury and on other U.S. Government agency and
corporation securities per $100 of those securities......................................
Income on obligations of State and political subdivisions per $100 of
those obligations..............................................................................................................
Service charge on demand deposits in domestic offices per $100 of
those deposits.................................................................................................................
Interest paid on time and savings deposits in domestic offices per
$100 of those deposits................................................................................................

group of banks is the same as the group shown in table 11 7 under "Operating throughout the year.”
2|ncome from securities held in trading accounts is included in "O ther operating income."
iT h is

^Ratios are based on assets and liabilities repooted at end of year.




FEDERAL DEPOSIT INSURANCE CORPORATION

Recoveries credited to allowance..............................................................................
Losses charged to allowance.......................................................................................
Provision for possible loan losses..............................................................................

All
banks

Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8
(Amounts in thousands of dollars)
Income item

1973

1974

1975

19761

19771

19781

Operating income— total...........................................................................................................................................................

6,064.895

6,483,654

7,179,294

Interest and fees on real estate mortgage loans, net....................................................................................................................
Interest and fees on real estate mortgage loans, gross......................................................................................................
Less. Mortgage servicing fees ..........................................................................................................................................................
Interest and fees on other lo ans.............................................................................................................................................................
Interest on U.S. Government and agency securities.......................................................................................................................
Interest on corporate bonds........................................................................................................................................................................
Interest on State, county, and municipal obligations....................................................................................................................
Interest on other bonds, notes, and debentures................................................................................................................................
Dividends on corporate stock.....................................................................................................................................................................
Income from service operations................................................................................................................................................................
Other operating income.................................................................................................................................................................................

4,171,520

4,503,214

4,817,741

5,225,101

5,744,885

6,500,885

4.240.926
69.406

4.570.902
67.688

4.883,664
65.923

5.290,560
65,459

5.809.758
64.873

6,565.682
64.797

283,506
414,359
730,132
52,982
116,901
148,781
35,771
110,943

337,844
403,940
743,944
47,028
125,718
170,273
27,875
123,818

283,416
567,577
929,613
74,858
150,841
191,401
32,968
130,879

334.625
869,038
1,166,755
142,958
200,849
207,398
39,825
126,143

433,413
1,096,826
1,294,753
166,939
255,319
227,541
47,585
138,289

601,510
1,229,607
1,324,370
191,868
293,024
261,677
57,307
178,439

8,312,692

9,405,550

10,638,687

811,689

938,705

1,083,192

1,310,921

1,465,245

1,758,846

Salaries................................................................................................................................................................................................................
Pensions and other employee benefits.................................................................................................................................................
Interest on borrowed money.....................................................................................................................................................................
Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals), n e t............................
Furniture and equipment (including recurring depreciation)........................................................................................................
Actual net loan losses (charge-offs less recoveries)....................................................................................................................
Other operating expenses...........................................................................................................................................................................

307,030
72,567
28,907
96,128
37,104
8,994
260,959

344,304
83,338
66,110
114,206
43,815
10,034
276,898

388,061
98,268
55,168
135,754
52,543
21,836
331,562

440,284
114,310
45,365
158,044
62,285
78,732
411,901

497,563
128,539
46,827
172,095
73,948
69,975
476,298

570,838
148,166
122,436
189,459
88,131
109,426
530,390

Net operating income before interest and dividends on d eposits...............................................................................

5,253.206

5,544,949

6,096,102

7,001,771

7,940,305

8,879,841

Interest and dividends on deposits— total..........................................................................................................................

4 ,4 8 0,9 01

4 ,9 1 6 ,7 2 4

5 ,4 9 5 ,8 4 2

6 ,2 8 7 ,9 6 6

6 ,9 9 7 ,4 6 4

7 ,7 0 6,6 74

Savings deposits............................................................................................................................................................................................
Other time deposits.......................................................................................................................................................................................

3,567,595
913,306

3,607,170
1.309,554

3,778,695
1,717,147

4,160,435
2,127,531

4,222,013
2,775,451

3,930,597
3,776,077

Net operating income after interest and dividends on d ep osits.................................................................................

772,305

628,225

600,260

713,805

942,841

1,173,167

Net realized gains or losses on— to ta l...............................................................................................................................

- 9 2 ,3 5 7

- 1 4 8 ,8 4 4

- 6 3 ,2 8 3

2 0 ,2 60

18,562

- 5 3 ,4 8 4

Securities...........................................................................................................................................................................................................
Real estate mortgage loans........................................................................................................................................................................
Real estate........................................................................................................................................................................................................
Other transactions.......................................................................................................................................................................................

-6 5 ,9 7 3
-2 0 ,1 8 7
-6 7 3
- 5 ,5 2 4

-111,501
-3 8 ,5 5 6
588
625

-2 5 ,8 9 9
-2 2 ,9 0 4
- 7 ,1 6 9
-7 ,31 1

49,283
-2 1 ,5 5 4
-4 2 3
-7 ,0 4 6

47,625
-4 0 ,9 8 8
-2 ,8 0 4
14,729

INCOME O INSURED BANKS
F

Operating expenses— t o ta l......................................................................................................................................................

-44,941
-22 ,6 1 2
-2 ,0 1 3
16,082

Less minority interest in consolidated subsidiaries........................................................................................................

0

0

37

5

1

0

Net income before taxes...........................................................................................................................................................

679,948

479,381

536,940

734,060

961,402

1,119,683

Franchise and income taxes— total.......................................................................................................................................

201,792

161,870

171,549

227,088

280,260

310,945

Federal income tax.........................................................................................................................................................................................
State and local franchise and income taxes..................................................................................................................................

114,500
87,292

81,089
80,781

66,543
105,006

107,801
119,287

139,242
141,018

171,002
139,943

Net income....................................................................................................................................................................................

478,156

317,511

365,391

506,972

681,142

808,738

177




17
8

Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 - 1978-CONTINUED
(Amounts in thousands of dollars)
Income item

1974

1975

561,695
27,805

369,166
32,406

407,314
109,383

545,665
41,722

834,461
40,381

826,213
44,280

Assets— total.............................................................................................................................................

90.850.840

94.426.708

101.714.468

114.044.800

126.744.049

137.407.307

Cash and due from banks................................................................................................................................................................................
U.S. Government and agency securities...................................................................................................................................................
Other securities.................................................................................................................................................................................................
Real estate mortgage lo ans..........................................................................................................................................................................
Other loans and discounts.............................................................................................................................................................................
Other real estate............ ................................................................................................................................................................................
All other assets....................................................................................................................................................................................................

1,676,216
6,299,082
16,238,983
61,600,178
2,967,740
170,868
1,897,773

1,825,066
5,950,081
16,410,896
64,695,689
3,250,960
207,125
2,086,891

2,067,540
7,823,837
19,035,575
66,698,116
3,388,551
320,468
2,380,381

1,934,535
11,482,069
23,065,574
70,314,531
4,084,414
457,255
2,706,422

2,102,650
14,456,447
25,823,209
75,523,639
5,355,664
478,620
3,003,820

2,587,020
15,859,816
27,146,283
81,925,483
6,171,468
415,516
3,301,721

94.426.708

1973

19761

19771

19781

Memoranda

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

Change in surplus accounts, n e t
Discount on securities, total................................................................................................................................................................................

Liabilities and surplus accounts— to ta l.......................................................................................................

101.714.468

114.044.800

126.744.049

137.407.307

83,212,442

85,994,384

92,850,364

104,554,349

116,405,474

125,472,005

82,350,237
862,205

85,097,902
896,482

91,885,361
965,003

103,540,616
1,013,733

115,084,387
1,321,087

123,758,082
1,713,923

1,381,121
6,257,277

1,763,885
6,668,439

1,803,741
7,060,363

1,849,625
7,640,826

1,947,906
8,390,669

2,683,144
9,252,158

Number of employees (end of period)...........................................................................................................................................................

35,668

37,494

40,261

45,040

49,466

53,806

Number of banks (end of period).......................................................................................................................................................................

322

320

329

329

323

325

Total deposits....................................................................................................................................................................................................
Savings and time deposits.......................................................................................................................................................................

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

Demand deposits

Other liabilities
Total surplus accounts

1Averages of amounts reported at beginning, middle, and end of year.




90.850.840

FEDERAL DEPOSIT INSURANCE CORPORATION

Average assets and liabilities 1

Table 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8
Income item

1973

1974

1975

19761

19771

19781

Operating income— to ta l...............................................................................................................................................................................

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

Interest and fees on real estate mortgage loans—n e t ........................................................................................................................................
Interest and fees on other loans.......................................................................................................................................................................................
Interest on U.S. Government and agency securities..............................................................................................................................................
Interest on corporate bonds................................................................................................................................................................................................
Interest on State, county, and municipal obligations..............................................................................................................................................
Interest on other bonds, notes, and debentures.......................................................................................................................................................
Dividends on corporate stock.............................................................................................................................................................................................
Income from service operations.......................................................................................................................................................................................
Other operating income........................................................................................................................................................................................................

68.78
4.68
6.83
12.04
.87
1.93
2.45
.59
1.83

69.45
5.21
6.23
11.47
.73
1.94
2.63
.43
1.91

67.10
3.95
7.91
12.95
1.04
2.10
2.67
.46
1.82

62.85
4.03
10.45
14.04
1.72
2.42
2.49
.48
1.52

61.08
4.61
11.66
13.77
1.77
2.71
2.42
.51
1.47

61.11
5.65
11.56
12.45
1.80
2.75
2.46
54
1.68

Operating expense— t o t a l.............................................................................................................................................................................

13.38

14.48

15.09

15.77

15.58

16.53

Salaries........................................................................................................................................................................................................................................
Pensions and other employee benefits........................................................................................................................................................................
Interest on borrowed money................................................................................................................................................................................................
Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals)—net...................................................
Furniture and equipment (including recurring depreciation)................................................................................................................................
Actual net loan losses (charge-offs less recoveries)..............................................................................................................................................
Other operating expenses.....................................................................................................................................................................................................

5.06
1.20
.48
1.58
.61
.15
4.30

5.31
1.29
1.02
1.76
.68
.15
4.27

5.41
1.37
.77
1.89
.73
.30
4.62

5.30
1.38
.55
1.90
.75
.95
4.94

5.29
1.37
.50
1.83
.79
.74
5.06

5.37
1.39
1.15
1.78
.83
1.03
4.98

Amounts per $ 1 0 0 of operating income

86.62

85.52

84.91

84.23

84.42

83.47

73.88

75.83

76.55

75.64

74.40

72.44

Savings deposits2....................................................................................................................................................................................................................
Other time deposits^..............................................................................................................................................................................................................

58.82
15.06

55.63
20.20

52.63
23.92

50.05
25.59

44.89
29.51

36.95
35.49

8.36

Net operating income after interest and dividends on d e p o s its ......................................................................................................

12.74

8.59

10.02

Net realized gains (or losses) on— t o ta l.................................................................................................................................................

— 1.53

- 2 .3 0

- .8 8

.24

.20

Securities.....................................................................................................................................................................................................................................
Real estate mortgage loans................................................................................................................................................................................................
Real estate..................................................................................................................................................................................................................................
Other transactions. . . . .-.....................................................................................................................................................................................................

- 1 .0 9
- .3 4
- .0 1
- .0 9

— 1.72
- .6 0
.01
.01

- .3 6
- .3 2
- .1 0
- .1 0

.59
- .2 6
- .0 1
- .0 8

.51
- .4 4
- .0 3
.16

- .4 2
- .2 1
- .0 2
.15

Less minority interest in consolidated su b sid ia rie s.............................................................................................................................

.00

.00

(1)

(1)

(1)

.00

Net income before ta x e s...............................................................................................................................................................................

11.21

7.39

7.48

8.83

10.22

10.53

Franchise and income taxes— t o ta l...........................................................................................................................................................

3.33

2.49

2.39

2.73

2.98

2.93

Federal income ta x.................................................................................................................................................................................................................
State and local franchise and income taxes................................................................................................................................................................

1.89
1.44

1.25
1.24

.93
1.46

1.30
1.43

1.48
1.50

1.61
1.32

Net incom e........................................................................................................................................................................................................

7.88

4.90

5.09

6.10

7.24

INCOME O INSURED BANKS
F

Net operating income before interest and dividends on d ep o sits...................................................................................................
Interest and dividends on deposits— to tal..............................................................................................................................................

7.60

11.03
- .5 0

179




9.69

180
Table 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 - 1978-CONTINUED
1973

1974

1975

19761

19771

19781

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

7.29
1.15
6.14
5.51
.63
.02
.64
.20
.44

7.42
1.16
6.26
5.52
.74
.01
.76
.22
.54

7.74
1.28
6.46
5.61
.85
- .0 4
.81
.23
.59

Interest on U.S. Government and agency securities per $100 of U.S. Government and agency securities........................................
Interest and dividends on other securities per $100 of other securities............................................................................................................
Interest and fees on real estate mortgage loans per $100 of real estate loans..............................................................................................
Interest and fees on other loans per $100 of other loans.........................................................................................................................................
Interest and dividends on deposits per $100 of savings and time deposits.......................................................................................................
Net income per $100 of total surplus accounts..............................................................................................................................................................

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

7.57
7.45
7.43
8.19
6.07
6.64

7.59
7.53
7.61
8.09
6.08
8.12

7.75
7.63
7.94
9.75
6.23
8.74

Number of banks (end of period)..........................................................................................................................................................................................

322

320

329

329

323

325

Income item

Amounts per $ 1 0 0 of total assets^

Special ratios^

1Less than 0.005.
2See note to table 120.




FEDERAL DEPOSIT INSURANCE CORPORATION

Operating income —total............................................................................................................................................................................................................
Operating expense —to ta l.........................................................................................................................................................................................................
Net operating income before interest and dividends on deposits...........................................................................................................................
Interest and dividends on deposits—total.........................................................................................................................................................................
Net operating income after interest and dividends on deposits..............................................................................................................................
Net realized gains (or losses)—total..................................................................................................................................................................................
Net income before taxes...........................................................................................................................................................................................................
Franchise and income taxes—total........................................................................................................................................................................................

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:
FDIC INCOME, DISBURSEMENTS, AND LOSSES

Table 122.

Number and deposits of banks closed because of financial difficulties, 1934 — 1978

Table 123.

Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during
1978

Table 124.

Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal
Deposit Insurance Corporation, 1934— 1978
Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount o f
deposits, and State

Table 125.

Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements
for protection of depositors, 1934— 1978

Table 126.

Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1,
1 93 4 — December 31, 1978

Table 1 27.

Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of opera­
tions, September 11, 1933, to December 31, 1978

Table 128.

Protection of depositors of failed banks requiring disbursements by the Federal Deposit
Insurance Corporation, 1934— 1978

Table 129.

Insured deposits and the deposit insurance fund, 1934— 1978




182

Noninsured bank failures

Disbursements by the Federal Deposit Insurance Corporation to protect
depositors are made when the insured deposits of banks in financial
difficulties are paid off, or when the deposits of a failing bank are assumed by
another insured bank with the financial aid of the Corporation. In deposit
payoff cases, the disbursement is the amount paid by the Corporation on
insured deposits. In deposit assumption cases, the principal disbursement is
the amount loaned to failing banks, or the price paid for assets purchased from
them; additional disbursements are made in those cases as advances for pro­
tection of assets in process of liquidation and for liquidation expenses.
Under its section 13(c) authority, the Corporation has made disbursements
to four operating banks. The amounts of these disbursements are included in
table 126, but are not included in tables 124 and 125.

Statistics in this report on failures of noninsured banks are compiled from
information obtained from State banking departments, field supervisory
officials, and other sources. The Corporation received no reports of nonin­
sured bank closures due to financial difficulties in 1978.
For detailed data regarding noninsured banks that suspended in the
years 1934-1962, see the Annual Report for 1963, pp. 27-41. For
1963-1978, see table 122 of this report, and previous reports for respective
years.




Sources of data
Insured banks: books of bank at date of closing; and books of FDIC, Decem­
ber 31, 1978.

FEDERAL DEPOSIT INSURANCE CORPORATION

Deposit insurance disbursements

Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1 9 3 4 -1 9 7 8
Number

Deposits (in thousands of dollars)
Insured

Year
Total

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

692

61
32
72
84
81
72
48
17
23
5
2
1
2
6
3
9
5
5
4
5
4
5
3
3
9
3
2
9
3
2
8
9
8
4
3
9
84
6
3
6
4
144
17
6
7

Total

136

556

52
6
3
7
7
12
5
2
3

9
26
69
77
74
60
43
15
20
5
2
1
1
5
3
5
4
2
3
4
2
5
2
2
4
3
1
5
1
2
7
5
7
4
3
a
7
6
1
6
4
13
16
6
7

1
1
4
1
3
1
1
2
1
1
5
1
4
2
1
4
1

14
2
14
1

Insured

Without
disbursements
by FDIC2
8

With
disbursements
by FDIC3
548

9
25
69
75
74
60
43
15
20
5
2
1
1
5
3
4
4
2
3
2
2
5
2
1
4
3
1
5
2
7
5
7
4
3
9
7
6
1
6
4
13
16
6
7

Total

Noninsuredl

Total

6,081,926

143,500

5,938,426

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
55,2444
132,152
99,784
971,296
1,575,832
340,5744
865,659
205,208
854,154

35,364
583
592
528
1,038
2,439
358
79
355

1,968
13.405
27,508
33,677
59,684
157,772
142,430
29,717
19,185
12,525
U15
5,695
347
7,040
10,674
6,665
5,513
3,408
3,170
44,711
998
11,953
1U 30
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
339,574
864,859
205,208
854,154

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

1,0004
800

Without
disbursements
by FDIC2
41,147

85
328

1,190

26,449

10,084

With
disbursements
by FDIC3
5,897,279

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
5475
5,513
3,408
3,170
18,262
998
11,953
1U30
1,163
8,240
2,593
6^930
8,936

3,011
23,444
23,438
43,861
103,523
10,878
22*524
40J 34
54,821
132,152
20^480
971,296
1,575^832
339^574
864,859
205,208
854’, 154



183

1For 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 seven banks.
2For information regarding these cases, see table 23 of the Annual Report for 1963.
3For information regarding each bank, see the Annual Report for 1958, pp. 48 — 83 and pp. 9 8 — 127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as
of December 31, 1978.
Digitized ^Revised.
for FRASER

BANKS CLOSED; F IC INCOME, DISBURSEMENTS, A D LOSSES
D
N

1934 ................................
1935 ................................
1936 ................................
1937 ................................
1938 ................................
1939 ................................
1940 ................................
19 4 1 ................................
1942 ................................
1943 ................................
1944 ................................
1945 ................................
1946 ................................
1947 ................................
1948 ................................
1949 ................................
1950 ................................
1 951................................
1952 ................................
1953 ................................
1954 ................................
1955 ................................
1956 ................................
1957 ................................
1958 ................................
1959 ................................
1960 ................................
1 9 6 1 ................................
1962 ................................
1963 ................................
1964 ................................
1965 ................................
1966 ................................
1967 ................................
1968 ................................
1969 ................................
1970 ................................
1 9 7 1 ................................
1972 ................................
1973 ................................
1974 ................................
1975 ................................
1976 ................................
1977 ................................
1978 ................................

Non
insured!

Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1978

Deposit
payoff
310

Number of
depositors or
accounts^

Class
of bank

Name and location

184

Case
number

First payment to
depositors or
disbursements by FDIC

Date of closing or
deposit assumption

FDIC
disbursement?

Receiver or liquidating agent
or assuming bank

Watkins Banking Company
Faunsdale, Alabama

NM

The Drovers' National Bank
of Chicago. Illinois

N

43,800

January 19, 1978

118,745,794

240

First Bank of Macon County
Notasulga. Alabama

NM

2,919

January 26, 1978

2,129,469

First Alabama Bank
Notasulga, Alabama

241

Wilcox County Bank
Camden, Alabama

NM

3,447

March 1, 1978

8,200,572

Town-Country National Bank
Camden, Alabama

242

Banco Credito y Ahorro Ponceno
Ponce, Puerto Rico

NM

294,000

Deposit
assumption
239

492

July 21, 1978

July 24, 1978

$

Federal Deposit Insurance Corporation

Drovers' Bank of Chicago
Chicago, Illinois

Banco Popular de Puerto Rico
San Juan, Puerto Rico

323,513,861

Banco de Santander-Puerto Rico
San Juan, Puerto Rico
243

Banco de Ahorro de Puerto Rico
San Juan, Hato Rey, Puerto Rico

NM

4,202

September 5, 1978

9,526,147

244

North Point State Bank
Arlington Heights, Illinois

NM

15,500

December 16, 1978

14,739,518

Assets 1
Case
number

Deposit
payoff
310
Deposit
assumption
239

Cash and
due from
banks

$

140,240

U.S. Govern­
ment
obligations

$

417,857

Other
securities

$

69,170

Loans,
discounts, and
overdrafts

$

996,973

Banco Commercial de Mayaguez
Mayaguez, Puerto Rico
The Bank & Trust Company of
Arlington Heights
Arlington Heights, Illinois

Liabilities and capital accounts
Banking house,
furniture, and
fixtures

$

Other
real estate

33,074

Other
assets

$

2,518

Total

$

1,659,832

Deposits

$

1,282,300

Other
liabilities

$

261,967

Capital
stock

$

25,000

Other capital
accounts

$

90,565

25,812,566

33,407,874

24,773,620

118,385,283

3,395,957

15,022,418

6,028,710

226,826,428

197,165,861

29,744,830

5,500,000

240

249,770

748,225

19,656

3,489,851

5,898

13,264

11,661

4,538,325

3,825,059

348,588

100,000

241

277,637

1,906,739

849,012

9,345,874

212,095

24,038

36,713

12,652,108

10,585,424

1,723,777

250,000

92,907

242

36,606,190

42,325,511

81,539,041

492,269,015

3,785,452

7,023,155

48,991,770

712,540,134

607,610,688

79,455,389

13,457,525

12,016,532

7,244,109

213,698

701,533

18,756,940

432,472

243

691,320

300,000

244

2,717,464

498,850

2,990,488

-

264,678

201,353

9,352,013

11.831,012

393,369

519,674

(3,392,042)

1,069,784

26,465,998

21,850,142

1,716,013

410,000

2,489,843

1Figures as determined by FDIC Agents after adjustments of books of the bank immediately following its closing.
2|ncludes disbursements made to December 31, 1978, plus additional disbursements estimated to be required in these cases.




(5,584,263)

FEDERAL DEPOSIT INSURANCE CORPORATION

March 31, 1978

818,259

Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 8
BANKS G O PED BY CLASS O BANK, YEAR O D SIT PAYO O DEPOSIT ASSUMPTION, AMOUNT O DEPOSITS, AND STATE
RU
F
F EPO
FF R
F

Classification

Total

Payoff
cases

Deposits"!
(in thousands of dollars)

Number of depositors!

Assump
tion
cases

Total

Payoff
cases

Assump­
tion
cases

Total

Payoff
cases

Disbursements by FDIC1
(in thousands of dollars)

Assump
tion
cases

Advances and
expenses2

Principal disbursements

Total
All banks................................................

548

304

Payoff
cases3

Assump­
tion
cases^

Payoff
cases5

Assump­
tion
casesS

244

3,764,874

623,546

3,141,328

5,897,279

469,533

5,427,746

4,678,8668

325,951

4,352,915

9,148

204,637

65

1,538,957
428,129
1,797,788

108,812
88,894
425,840

1,430,145
339,235
1,371,948

3,262,117
438,232
2,196,930

113,780
34,388
321,365

3,148,337
403,844
1,875,565

3,061,622
322,675
1,294,569

65,230
26,500
234,221

2,996,392
296,175
1,060,348

2,917

106,286
23,953
74,398

15,767
44,655
89,018
130,387
203,961
392,718
256,361
73,005
60,688
27,371
5,487
12,483
1,383
10,637
18^540
5^671
6,366
5,276
6*752
24,469
1,811
17,790
15,197
2,338
9,587
3,073
11,171

15,767
32,331
43,225
74,148
44,288
90,169
20,667
38,594
5,717
16,917
899

1,968
U 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

1,968
9^091
11,241
14,960
10,296
32,738
5,657
14,730
1,816
6,637
456

941
8,891
14,460
19,481
30,479
67,770
74,134
23,880
10,825
7,172
1,503
1,768
265
1,724
2 990
2,552
3,986
1,885
1^369
5 017
913
6,784
3,458
1,031
3^026
1,835
4,765

941
6,026
7,735
12,365
9,092
26,196
4,895
12,278
1,612
5,500
404

Class of bank

National....................................................
State member F.R.S.............................
Nonmember F.R.S..................................
Year?
1934................................................................
1935 ................................................................
1936 ................................................................
1937 ................................................................
1938 ................................................................
1939 ................................................................
1940................................................................
1 941................................................................
1942 ................................................................
1 943................................................................
1 944................................................................
1945 ................................................................
1946 ................................................................
1947 ................................................................
1948 ............
1949 ................................................................
1950 ................................................................
1 951................................................................
1952 ................................................................
1953 ................................................................
1954................................................................
1955 ................................................................
1956 ................................................................
1957 ................................................................
1958 ................................................................
1959 ................................................................
1960 ................................................................

36
10

20

258

159

9
25
69
75
74
60
43
15

9
24
42
50
50
32
19

1

20

8
6

27
25
24
28
24
7
14

5

4

1

2
1
1

1

1
1
1

5
3
4
4

5
3
4
4

2

2

3
2
2
5
2
1
4
3
1

3
2
2
1
1
3
3
1

1

8,080
5,465
2 338
4,380
3,073
11,171

12,324
45,793
56,239
159,673
302,549
235,694
34,411
54,971
10,454
4,588
12,483
1,383
10,637
18,540
5*671
6*366
5*276
6 J5 2
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
49,388
125,034
136,773
14,987
17,369
5,888
1,459
5,695
347
7,040
10 674
5,475
5,513
3 408
3,170
18,262
998
5,450
6,628
4,084

4,438
2,795
1,031
2,796
1 835
4,765

2,865
6,725
7,116
21,387
41,574
69,239
11,602
9,213
1,672
1,099
1,768
265
1 724
? QQfl
2 552
3*986
1 885
1 369
5 017
913
2,346
663
230

1,112

5,119

43
108
67
103
93
162
89
50
38
53
9

272
934
905
4,902
17,603
17,237
1,479
1,076
72
37
96

]]

106
87
20
38
51
82

zuu
1 fifi
1Du
524
197
1LI
1j j
R
IQ
428
145
665
51
31

185




101

30
417

BANKS CLOSED; F IC INCOME, DISBURSEMENTS, A D LOSSES
D
N

Number of banks

186

Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 19 34-1978-C O N TIN U E D
BANKS G O PED BY CLASS O BANK, YEAR O D SIT PAYO O DEPOSIT ASSUMPTION. AMOUNT O DEPOSITS, AND STATE
RU
F
F EPO
FF R
F

Classification

Total

Payoff
cases

Assump­
tion
cases

Total

Payoff
cases

Disbursements by FDICf
(in thousands of dollars)

Deposits!
(in thousands of dollars)

Number of depositor!

Number of banks

Assump­
tion
cases

Total

Payoff
cases

5
2
7
5
7
4
3
9
7
6
1
6
4
13
16
6
7

5
2
7
3
1
4

107
109
62
72
59
58
34
24
7
6
7
2
1

7
1
8
6
8

8,301
36,433
19,934
14,363
1,012
4,729

24
23
25
36
37
36
27
15
6
5
7
2
1

38,347
83,370
92,179
160,388
211,352
302,665
294,630
375,371
308,637
244,265
394,670
629 000
630!000

29,695
65,512
57,287
74,296
70,846
89,127
50,445
146,454
12,481
27,403

8,652
17,858
34,892
86,092
140,506
213,538
244,185
228,917
296,156
216,862
394,670
629,000
630,000

6,418
17,759
22,315
54,424
79,547
190,451
231,127
384,848
257,585
525,377
1,142,879
1,539,566
1,444,982

3

4
1
2
3
4

16,048
2,692
6,350
390,819
18,852

2,571

13,477
2,692
1,809
372,929
12,770

21,865
5,044
4,836
1,032,658
24,749

1

6,544
20,403
31,850
23,655
8,382
21,925
8,246
24
516

4,947
13,920
12,921
26,820
29,173
70,385
55,868
148,421
40,176
66,902

1,471
3,839
9,394
27,604
50,374
120,066
175,259
236,427
217,409
458,475
1,142,879
1,539,566
1,444,982

5,000
12,906
15,615
36,057
46,466
114,576
127,930
237,983
118,732
344,942
705,7579
728,329
2,184,5718

5,270

16,595
5,044
2,894
986,438
18,345

341,317
704,283
88,442
332,485
95,524
363,868

83
86
37
36
22
22
7
9
1
1

3
3

3
5
3
1

945,501
1,575,832
299,672
846,000
205,100
852,868

8,936
23,444
23,438
42,889
774
10,878

’ 3
4
10
13
6
6

4
4
5
1
3

2
6

6,201
19,230
13,744
11,431
8,732
8,120
5,586
37,619
49,318
162,089
16,274
410,768
2,257,6308
303,131
549,376
21,8109
494,903

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
339,574
864,859
205,208
854,154

8 301
36,433
19,934
15,817
95,424
4 729
12,850
27,374
31,433
71,950
23,655
349,699
704,283
110,367
340,731
95,548
364,384

1,454
94,412
12,850
20,830
11,030
40,100

9,012
33,489
74,605
20,480
25,795
39,902
18,859
108
1,286

972
102,749
22,524
31,122
21,332
57,547

Payoff
cases3
6,201
19,230
13,744
10,958
735
8,120
7,599
29,354
53,790
16,274
16,802
25,992
11,630
818

Assump­
tion
cases^

473
7.997
5,586
30,020
19,964
108,299
393,966
2,257,630
277,139
537,746
21,810
494,085

Payoff
cases5
154
349
599
640
35
241
300
698
788
375
1,320
1,316
1,097
37

Assump
tion
cases6

123
1,609
1,114
4,401
1,859
10,795
1,001
82,003
19,551
21,713
1,761
11,156

Banks with deposits of:

Less than $100,000 ................................
$100,000 to $250,000 ..........................
$250,000 to $500,000..........................
$500,000 to $1,000,000.......................
$1,000,000 to $2,000,000 .................
$2,000,000 to $5,000,000 .................
$5,000,000 to $10,000,000
$10,000,000 to $25,000,000 ............
$25,000,000 to $50,000,000 ...........
$50,000,000 to $100,000,000 . . . .
$100 000,000 to $500,000,000
$50 o!ooo!ooo to $1,000,000,000
$1 000 000 000 or mors

4,309
11,554
10,549
20,962
22,886
52,052
37,964
108,954
9,700
47,021

691
1,352
5,066
15,095
23,580
62,524
89,966
129,029
109,032
297,921
705,757
728,329
2,184,571

88
209
164
444
738
1,177
950
2,544
581
513
810
930

154
173
611
2,352
3,950
9,329
12,534
12,181
27,613
23,156
36,726
3,894
71,962

3,384

11,543
5,082
1,832
429,147
9,315

131

572
394
293
3,809
2,476

State

Alabama..........................................................
Arizona
. .
Arkansas .......................................................
California.......................................................
Colorado..........................................................




6
3
4

4,541
17,890
6,082

1,942
46,220
6,404

14,927
5,082
3,408
442,093
13,926

1,576
12,946
4,611

43
1,605
292

FEDERAL DEPOSIT INSURANCE CORPORATION

Total

1961
1963
1964
1965 ................................................................
1966 ................................................................
1967
1968
1969 ................................................................
1970 ................................................................
1971................................................................
1972
1973 ................................................................
1974
1975 ................................................................
1976 ................................................................
1977 ................................................................
1978 ................................................................

Advances and
expenses2

Principal disbursements

Assump­
tion
cases

3
5
12
2
25

2
2
8
2
10

Indiana.............................................................
Io w a ................................................................
Kansas.............................................................
Kentucky.......................................................
Louisiana.......................................................

20
11
11
26
6

15
5
6
20
4

Maryland.......................................................
Massachusetts............................................
Michigan.......................................................
Minnesota....................................................

1
5
5
14
5

2
1
5
5

Mississippi....................................................
Missouri..........................................................
Montana..........................................................
Nebraska.......................................................
New Hampshire............................................

4
52
5
8
1

New Je rse y .................................................
New York.......................................................
North Carolina..............................................
North Dakota...............................................
Ohio...................................................................

1
3
4
15

8,839
14,082
32,442
2,451
160,955

5,379
1,725
8,797
2,451
44,383

5
6
5
6
2

30,006
25,206
8,065
40,313
79,117

12,549
5,736
3,824
19,352
8,999

1
3
4
9

9 710
22,567
42,279
172,607
2,650

6,643
23,655
10,452
2,650

3
38
3
8

1
14
2
1

14,351
55,554
1,500
7,773
1,780

42
28
7
29
5

13
3
2
18
2

29
25
5
11
3

Oklahoma.......................................................
Oregon.............................................................
Pennsylvania.................................................
South Carolina............................................
South Dakota..............................................

13
2
31
3
23

8
1
8
1
22

Tennessee ....................................................
Texas................................................................
Utah...................................................................
Vermont..........................................................
Virginia ..........................................................

13
46
1
3
9

8
33

Washington....................................................
West Virginia..............................................
Wisconsin.......................................................
Wyoming.......................................................

1
3
33
1

3,460
12,357
23,645

3
20

1,526
2,668
1,870
1,894
28,972

17,457
19,470
4,241
20,961
70,118

13,595
29,964
7,665
16,072
176,274

3,933
8,535
4,358
5,768
9,735

9 710
15,924
18,624
162,155

5,450
4^566
38,696
194,399
818

828
20,480
13,477
818

1,651
37,977
849
7,773

12,700
17,577
651
1,780

15,686
29,153
1,095
11,644
296

563,917
925,621
10,408
14,103
21,251

113,692
28,440
3,677
6,760
7,585

450,225
897,181
6,731
7,343
13,666

5
1
23
2
1

28,672
3,439
182,590
68,080
12,515

20,149
1,230
43,828
403
11,412

5
13
1
1
5

132,358
125,988
3,254
11 !o57
35,715

9,993
80,965

1

2
4

116,572

4,326
17,665
53,981
1,894
334,275

13
1

4,179
8,346
62,247
3,212

' 3

11,073
369,840

8,346
18,739

305,303

3,375
11,171
36,993
1,493
212^366

1,242
2,139
1,551
1,493
23^924

9,662
21,429
3,307
10,304
166,539

6,197
17,670
5,672
12,479
141,915

3,096
6,469
3,601
5,041
4,937

5,450
3 J3 8
18,216
180,922

2,346
3! 109
27,257
142,516
640

735
16,275
12,242
640

334
18,167
215
11,644

15.352
10,986
880

12,012
21,492
639
8,116
117

250,383
1,755,500
3,266
3,830
102,838

49,122
13,286
1,421
1,552
2,345

201,261
1,742,214
1,845
2,278
100,493

8,523
2,209
138,762
67,677
1,103

20,720
2,670
96,907
113,553
2,988

11,053
1,368
14,340
136
2,862

9,667
1,302
82,567
113,417
126

122,365
45,023
3,254
2^370
23,077

338,234
210,359
5,992
3,'725
17,779

1,620
142,151

4,179

8,687
12,638

2,800
14,997
52,111

43,508
3,212

1,538
2,006
112,627
2,033

369,840

14,219
789,442

188,442

8
65
33
29
513

10,647

3,101
11,201
2,071
7,438
136,978

39
149
60
156
149

384
730
288
621
3,982

2,133
9,032
35,442

2,346
2,374
10,982
130,274

257
14,028
186
8,116

11,755
7,464
453

40,049
10,836
1,156
1,397
1,610

11,665
1.948
67,485
60,650
2,411

336,614
68,208
5,992
350
10,127

128,008
137,947
3,538
3,445
8,263

1,538
106,661
2,033

935
1,458
117,980
202

1,458
5,096

8,712
351,5229

8,712

789,442

296

3,375
7,652
2,006
5,966

121,994
2,407,8598
2,387
2.656
90,788

'’ 9
374
204
17

496
698
2,096

665
371
1,994
13,677

5
330
6
151

518
1,185
21

81,945
2,397,023
1,231
1,259
89,178

519
842
23
24
7

22,790
82,809
179
203
4,388

7,936
986
10,133
136
2,388

3,729
962
57,352
60,514
23

178
11
75

800
81
10,736
8,751
9

1,164
97,279

126,844
40,668
3 538
186
4,396

28
1,760

8

117

3,259
3,867

26

’ 2l'
305

935
112,884
202

8,289
4,010
300
22
505
512

11
54

10,255
19

Other areas

Virgin Islands..............................................
Puerto Rico....................................................

1
3

1

11,073

14,219

897
351,522

4,053

Note: Due to rounding diffierences, components may not add to totals.




187

1Adjusted to December 31, 1978. In assumption cases, number of depositors refers to number of deposit accounts.
2Excludes $1,429 thousand of nonrecoverable insurance expenses in cases that were resolved without payment of claims or a disbursement to facilitate assumption of deposits by another insured bank and other
expenses of field liquidation employees not chargeable to liquidation activities.
3|ncludes estimated additional disbursements in active cases.
^Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
5These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.
6|ncludes advances to protect assets and liquidation expenses of $192,387 thousand, all of which have been fully recovered by the Corporation, and $12,250 thousand of nonrecoverable expenses.
^No cases in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years.
“ includes disbursements by liquidators in field ($1.5 billion) which were previously excluded from this table.
9|n 1977 the assets of Banco Economias were purchased outright by the Corporation. Disbursements in the case are included in table 126 under "Other disbursements” and are not included in this table.

BANKS CLOSED; F IC INCOME, DISBURSEMENTS, A D LOSSES
D
N

Connecticut....................................................
Florida.............................................................
Georgia..........................................................
Idaho................................................................
Illinois.............................................................

Table 125. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL
DISBURSMENTS FOR PROTECTION OF DEPOSITORS, 1 9 3 4 -7 8

Number
of
banks

Total..........................

548

4.678.866

73
475

Recoveries
to Dec. 31,
1978

Estimated
additional
recoveries

304

325,951

272,345

255,238
32,060

23
281

173,997
151,954

139,156
133,189

207
2,682
2,333
3,672
2,425
7,152
3,796
591
688
123
40

9
24
42
50
50
32
19
8
6
4
1

941
6,026
7,735
12,365
9,092
26,196
4,895
12,278
1,612
5,500
404

734
4,274
6,397
9,718
7,908
20,399
4,313
12,065
1,320
5,376
363

Losses1

3,539,242

852,326

287,298

4.281,170
397.696

3,173,606
365,636

852,326

941
8,891
14,460
19,481
30,479
67,770
74,134
23,880
10,825
7,172
1,503
1,768
265
1,724
2,990
2,552
3,986
1,885
1,369
5,017
913
6,784
3,458
1,031
3,026
1,835
4,765
6,201
19,230
13,744
11,431
8,732
8,120
5,586
37,619
49.318
162,089
16,274
410,768
2,257,6305

734
6,206
12,127
15,808
28,055
60,618
70,338
23,290
10,136
7,048
1,462
1,768
265
1,666
2,349
2,183
2,601
1,885
577
5,017
654
6,554
3,245
1,031
2,998
1,738
4,765
4,699
18,792
12,080
6,761
8,238
7,016
5,575
37,463
45,386
159,387
10,630
192,154
1,881,708
215,260
349,860
11,287
297,828

Recoveries
to Dec. 31,
1978

Deposit assumption cases

Deposit payoff cases
Principal
disburse
ments2

Estimated
additional
recoveries

Principal
disburse
ments

188

(Amounts in thousands of dollars)
All cases

Liquidation
status and year
of deposit payoff
or deposit
assumption

Number
of
banks

Losses 1

Number
of
banks

Principal
disburse
ments3

Recoveries
to Dec. 31,
1978

Estimated
additional
recoveries

20,366

33,240

244

4,352,915

Losses 1

3,266,897

831,960

254,058

20,366

14,475
18,765

50
194

4,107,173
245,742

3,034,450
232,447

831,960

240,763
13,295

3

930
995
1,025
1,241
1,355
3,214
378
396

1

58
641
369
1,385

Status

Active...........
Terminated . . .
Year4

1970
1971.
1972
1973.
1974.
1975.
1976
1977
1978

9
25
69
75
74
60
43
15
20
5
2
1
1
5
3
4
4
2
3
2
2
5
2
1
4
3
1
5
2
7
5
7
4
3
9
7
6
1
6
4
13
16
6
7

303,131
549,376
21,810
494,903

3

1

207
1,752
1,338
2,647
1,184
5,797
582
213
292
123
40

58
641
369
1,385
792
258
230
213
28
97
1,502

438
18
606
9
30
1
52
2,961
2,438
1,645
68,382
369,922
49,536
159,891
7,123
189,270

1,646
4,063
487
1,074
11
105
970
263
4,000
150,232
6,000
38,335
39,625
3,400
7,805

4
1
1
3
3
1
5
2
7
3
1
4

4,438
2,795
1,031
2,796
1,835
4,765
6,201
19,230
13,744
10,958
735
8,120

4,208
2,582
1,031
2,768
1,738
4,765
4,699
18,792
12,080
6,435
735
7,016

4
4
5
1
3

7,599
29,354
53,790
16,274
16,802

7,444
25,857
51,091
10,630
16,771

3
3

25,992
11,630

1

818

13,950
6,886

230
213
28
97

1
27
25
24
28
24
7
14
1
1
1
1
5
3
4
4
2
3
2
2
1
1

2,865
6,725
7,116
21,387
41,574
69,239
11,602
9,213
1,672
1,099
1,768
265 •
1,724
2,990
2,552
3,986
1,885
1,369
5,017
913
2,346
663

1.932
5,730
6,090
20,147
40,219
66,025
11,225
8,816
1,672
1,099
1,768
265
1,666
2,349
2,183
2,601
1,885
577
5,017
654
2,346
663

1

230

230

2
6

473
7,997

326
7,503

9

3
5
3
1

5,586
30,020
19,964
108,299

5.575
30,019
19,529
108,296

1
2

11

183
2

250

3
4
10
13
6
6

393,966
2,257,630
277,139
537,746
21,810
494,085

175,383
1,881,708
201,310
342,974
11,287
297,828

68,351
369,922

150,232
6,000
36,400
36,590
3,400
7,505

components may not add to totals.

258

1,502
438
18
606

1,646
3,917

30

1,074

50
2,778
2,436
1,645
31

105
720
263
4,000

10,107
1,709

1,935
3,035

518

300

11ncludes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered
2|ncludes estimated additional disbursements in active cases.
3Excludes excess collections turned over to banks as additional purchase price at termination of liquidation
4|\lo case in 1962 required disbursements.
5 Includes collections and disbursements by liquidators in the field ($1.5 billion), previously excluded from this table.
Note: Due to rounding differences,



792

39.429
158 182
7,123
188,752

146
487

FEDERAL DEPOSIT INSURANCE CORPORATION

1934. . .
1935.
1936.
1937.
1938
1939
1940.
1941
1942
1943
1944
1945
1946
1947.
1948
1949
1950.
1951
1952
1953.
1954.
1955.
1956.
1957..
1958.
1959.
1960.
1961.
1963.
1964
1965.
1966
1967
1968
1969.

Table 126. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1934 — DECEMBER 31, 1978
(In thousands)
Disbursements

Recoveries!

Losses

All disbursements— total.....................................................................................................................................................................................

$5,074,0712

$ 4 ,7 2 4 ,5 3 5 2

$ 3 49 ,5 3 6

Principal disbursements in deposit assumption and payoff ca se s— to ta l..................................................................................

4.678,866

4,391,568

287,298

Loans and assets purchased in liquidations (244 deposit assumption cases):
To December 31, 1978......................................................................................................................

4,119,165

3,165,564
699,543

254,058

Notes purchased to facilitate deposit assumptions, mergers, or consolidations:
To December 31, 1978......................................................................................................................

233,750

101,333
132,417

0

Deposits paid (304 deposit payoff cases):3
To December 31, 1978................................................................................................................
Estimated additional...............................................................................................

325,090
861

272,345
20,366

33,240

213.785

192,387

21,398

106,172
86,215
12,250
9,148

106,172
86,215
0
0

0
0
12,250
9,148

181,420

140,580

40,840

9,936

5,282
543

4,111

34,574

9,171
4,703

20,700

15,281

440
241
0

14,600

83,200
37,000

0

Advances and expenses in deposit assumption and payoff ca se s— total1...............

Expenses in liquidating assets:
Advances to protect a ssets............................................................................................................................
Liquidation expenses........................................................................................................................................................
Insurance expenses^........................................................................................................................................................
Field payoff and other insurance expenses in deposit payoff cases4...........................................................
Other disbursements— total........................................................................................................................

Corporation purchases:
To facilitate termination of liquidations.To December 31, 1978....................................................
Estimated additional..........................................................
To purchase assets from operating insured banks:
To December 31, 1978.......................................................
Estimated additional.............................................................
Other assets purchased outright:
To December 31, 1978....................................................
Estimated additional..........................................................
Unallocated insurance expenses^.......................................................
Assistance to operating insuued banks:
To December 31, 19785................................................................................................................................................................................................
Estimated additional.....................................................................................................
..............................................................

1,429
120,200

1,429

BANKS CLOSED; F IC INCOME, DISBURSEMENTS, A D LOSSES
D
N

Type of disbursement

1Excludes amounts returned to closed bank equity-holders and $92.2 million of interest and allowable return received by the FDIC.
2|ncludes collections and disbursements by liquidators in the field ($1.5 billion), previously excluded from this table.
3|ncludes estimated amounts for pending and unpaid claims in active cases.
^Not recoverable.
^Excludes $32 million originally disbursed as assistance to Farmers Bank of the State of Delaware and subsequently applied to assets purchased from operating insured banks.

189




190

Table 127. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933, TO DECEMBER 31, 1978
(In millions)
Income
Year
Total

Expenses and losses

Deposit insurance
assessments 1

Investments and
other sources2

Total
$1,470.1

$10,266.1

$5,022.3

$5,243.8

1978.....................................................
1977 .....................................................
1976.....................................................
1975.....................................................
1974.....................................................
1973.....................................................
1972.....................................................
1971.....................................................
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.....................................................
1933-34 ..........................................

952.1
837.8
764.9
689.3
668.1
561.0
467.0
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
477
48.2
43.8
20.8
7.0

367.0
319.4
296.5
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
(4)

585.1
518.4
468.4
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

148.95
113.6
212.35
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

$355.9

Interest on
capital stock3
$80.6

45.6
24.3
31.9
29.8
100.0
53.8
10.1
13.4
3.8
1.0
0.1
2.9
0.1
5.2
2.9
0.7
0.1
1.6
0.1
0.2
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

Administrative and
operating expenses
$1,033.6

103.3
89.3
180.45
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
38
3.7
3.6
3.4
3.0
2.7
2.5
2.7
4.26

Net income added to
deposit insurance fund4
$1,796.0

803.2
724.2
552.6
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

1For the period from 1950 to 1978, inclusive, figures are net after deducting the portion of net assessment income credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950,
as amended. Assessment credits to insured banks for these years amount to $5,291 million.
^Includes $21 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $73 million of interest on capital notes advanced to facilitate deposit assump­
tion transactions and assistance to open banks.
3Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by payments to the U.S. Treasury in 1947 and 1948.
4Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited to their accounts at the termination of the temporary funds and were
applied toward payment of subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from assessments during the existence of the temporary
insurance funds.
5|ncludes net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978.
6Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 1934.




FEDERAL DEPOSIT INSURANCE CORPORATION

Total...............................................

Deposit insurance losses
and expenses

All cases
(548 banks)

Deposit payoff cases
(304 banks)

Deposit assumption cases
(244 banks)

Item
Number or
amount

Percent

Number or
amount

Percent

Number or
amount

Percent

Number of depositors or accounts— total 1.............................................................................................................................

3,764,874

100.0

623,546

100.0

3,141,328

100.0

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

3,757,114

99.8

615,786

98.8

3,141,328

100.0

3,709,590
41,099
3,283
3,142

98.5
1.1
0.1
0.1

568,2623
41,099
3,283
3,142

91.1
6.6
0.6
0.5

3,141,328

100.0

100.0

From
From
From
From

FDIC2........................................................................................................................................................................................................
offset^.....................................................................................................................................................................................................
security or preference5...................................................................................................................................................................
asset liquidation^....................................................................................................................................
. .

Full recovery not received as of December 31, 1978 .................................................................................................

7,760

0.2

7,760

1.2

3,725
4^035

0.1
0.1

3,725
4,035

0.6
0.6

Amount of deposits (in thousands) — to ta l.............................................................................................................................

5,897,279

100.0

469,533

100.0

5,427,746

Paid or made available..............................................................................................................................................................

5,882,479

99.8

454,733

96.8

5,427,746

100.0

FDIC2...........................................................................................................................................................................................................
o ffset8........................................................................................................................................................................................................
security or preference9........................................................................................................................................................................
asset liquidation!0 ................................................................................................................................................................

5,754,400
23,755
54,478
49,846

97.6
0.4
0.9
0.9

326,6547
23,755
54,478
49,846

69.6
5.0
11.6
10.6

5,427,746

100.0

Not paid as of December 31 , 1 9 7 8 ....................................................................................................................................

14,800

0.2

14,800

3.2

Terminated c a s e s ..........................................................................................................................................................................................
Active cases! 1 ................................................................................................................................................................................................

3,172
11,628

0.0
0.2

3,172
11,628

0.7
2.5

Terminated c a s e s ....................................................................................................................................................................
Active cases...................................................................................................................................................................................................

By
By
By
By

1Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.
2Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks, facilitated by FDIC disbursements of $4,352,915 thousand, in deposit assumption cases.
3lncludes 60,913 depositors, in terminated cases, who failed to claim their insured deposits (see note 7).
^Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the absence of offsets.
^Excludes depositors, paid in part by the FDIC; whose deposit balances were less than the insurance maximum.
6The insured portions of these depositor claims were paid by the Corporation.
^Includes $51 6 thousand unclaimed insured deposits in terminated cases (see note 3).
8|ncludes all amounts paid by offset.
9|ncludes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the Corporation.
10lncludes unclaimed deposits paid to authorized public custodians.
111ncludes $2,985 thousand representing deposits available, expected through offset, or expected from proceeds of liquidation.

191




BANKS CLOSED; F IC INCOME, DISBURSEMENTS, A D LOSSES
D
N

Table 128. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
1 9 3 4 -1 9 7 8

Table 129. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1 9 3 4 -1 9 7 8
Ratio of deposit insurance fund to —

Total

Insured!

Percentage of
deposits insured

Deposit insurance fund
(in millions)

1978..........................................................
1977 ..........................................................
1976..........................................................
1975 ..........................................................

$1,145,835
1,050,435
941,923
875,985

$760,706
692,533
628,263
569,101

66.4%
65.9
66.7
65.0

$8,796.0
7,992.8
7,268.6
6,716.0

1974..........................................................
1973..........................................................
1972 ..........................................................
1971..........................................................
1970.......................................................

833,277
766,509
697,480
610,685
545,198

520,309
465,600
419,756
374,5684
349,581

62.5
60.7
60.2
61.34
64.1

1969....................................................
1968.......................................................
1967 ..........................................................
1966..........................................................
1965..........................................................

495,858
491,513
448,709
401,096
377,400

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

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

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

1959......................................
1958.......................................................
1957 .......................................................
1956..........................................................
1955..........................................................

Year (December 31)

Total deposits

192

Deposits in insured banks
(in millions)

Insured deposits
1.16%
1.15
1.16
1.18

6,124.2
5,615.3
5,158.7
4,739.9
4,379.6

.73
.73
.74
.78
.80

1.18
1.21
1.23
1.274
1.25

63.1
60.2
58.2
58.4
55.6

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

191,787
177,381
170,2104
160,3094
149,684

55.0
56.6
57.24
57.04
57.5

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

.82
.85
.84
.84
.85

1.48
1.50
1.474
1.474
1.48

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

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

57.4
56.8
56.3
55.2
54.8

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

.84
.81
.82
.79
.77

1.47
1.43
1.46
1.44
1.41

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

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

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

54.6
54.6
54.1
54.2
54.4

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

.76
.75
.72
.72
.74

1.39
1.37
1.34
1.33
1.36

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

156,786
153,454
154,096
148,458
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.......................................................
1941.......................................................
1940..........................................................

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

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

419
43.4
36.5
39.7
40.8

804.3
703.1
616.9
553.5
496.0

.60
.63
.69
.78
.76

1.43
1.45
1.88
1.96
1.86

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

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

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

42.9
45.5
46.8
44.4
44.7
45.1

452.7
420.5
383.1
343.4
306.0
291.7

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

1.84
1.82
1.70
1.54
1.52
1.61

1Figures estimated by applying, to the deposits in the various types of account at the regular Call dates, the percentages insured as determined from special reports secured from insured banks.
2December 20, 1963.
3December 28, 1962.
^Revised




FEDERAL DEPOSIT INSURANCE CORPORATION

.77%
.76
.77
.77




•




INDEX

195

Absorptions:
Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties.
Of operating banks, 1978...................................................................................... 15-16
Of operating banks approved by FDIC, 1978 ...................................... 15-16, 47-102
Of operating banks denied by FDIC, 1 9 7 8 .......................................... 15-16,103-109
Regulation o f ........................................................................................................... 15-16
Admission of banks to insurance: See also Applications from banks:
Applications for, 1978 .......................................................................................... 15-16
Number of banks admitted, by class of bank, 1978...................................... 122-123
Applications from b an ks................................................................................................. 15-16
Areas outside continental United States, banks and branches located in:
Number, December 31, 1978.......................................................................... 125, 133
Assessments for deposit insurance................................................................................ 26-27
Assets and liabilities of FDIC.............................................................................. 27-29, 32-33
Assets, liabilities and capital of banks. See also Deposits:
Commercial banks:
Foreign, of U.S. banks......................................................... 141-142, 155, 156-157
Grouped by insurance status, June 30, 1978 and December 31, 1978 . . 143-149
Sources of d a ta ....................................................................................................... 166
Insured commercial banks:
Amounts, December call dates, 1973-1978 ................................................ 152-154
Amounts, June 30, 1978 and December 31, 1978 by class of
bank.................................................................................................................143-149
Major categories, average, 1973-1978......................................................... 168-169
Percentage distribution, by size of bank, 1 97 8 ............................................ 162-164
Percentages of items, by size of bank, 1 9 7 8 ....................................................... 160
Insured mutual savings banks:
Amounts, December call dates, 1973-1978.............................................. 158-159
Major categories, average, 1973-1978 ..................................................... 177-178
Percentages of items, by size of bank, 1 9 7 8 ....................................................161
Methods of tabulating d a ta .............................................................................. 141-142
Mutual savings banks:
Grouped by insurance status, June 30, 1978, and December 31,
1 97 8 ............................................................................................................... 150-151
Sources of d a ta ......................................................................................................... 166
Assets, purchase of, by FDIC from banks in financial difficulties................. 8-9, 17, 19-21
Assumption of deposits of insured banks with financial aid of FDIC. See Banks in finan­
cial difficulties.
Attorney General of the United States, summary reports on absorptions............... 53-109
Audit of FDIC...................................................................................................................27,114
Automatic transfer of funds from savings to checking, survey and
regulation................................................................................................... xi, 11, 15-16, 115
Bad-debt reserves. See Valuation reserves.
Banco Credito y Ahorro Ponceno, Puerto R ico............................................................. 19, 21
Banco de Ahorro de Puerto Rico, Puerto R ico .....................................................................21
Bank control, changes, regulation o f ...................................................................xi, 10, 13-14
Bank holding companies, supervision o f ................................................................................ 7
Bank supervision. See Supervision of banks; Examination of insured banks.
Banking offices, number of. See Number of banks and branches.
Banks in financial difficulties:
Insured banks requiring disbursements by FDIC:
Assets and liabilities o f ............................................................................................184
Deposit size o f ......................................................................................................... 186
Deposits protected, 1934-1978.............................................. 17-20, 185-186, 191




196

FEDERAL DEPOSIT INSURANCE CORPORATION

Disbursements by FDIC, 1934-1978................................................ 17-18, 185-189
Failures in 1978 ............................................................................................. xi, 19-21
Loans made and assets purchased by FDIC.................................. 17-23, 28, 31-32
Location by State, 1934-1978....................................................................... 185-187
Losses incurred by depositors................................................................. 18, 19, 191
Losses incurred by FDIC.......................................................................... 18, 188-189
Number of, 1934-1978 .................................................................................. 20, 183
Number of deposit accounts, 1934-1978 .......................................... 185-187, 191
Recoveries by FDIC on assets acquired, 1934-1978 ........................... 18, 188-189
Noninsured banks:
Number and deposits of commercial banks closed, 1934-1978 ....................... 183
Banks, number of. See Number of banks and branches.
Board of Directors of FDIC. See Federal Deposit Insurance Corporation.
Board of Governors of the Federal Reserve System. See Federal Reserve authorities.
Branches:
Establishment approved by FDIC, 1 9 7 8 ............................................................... 15-16
Number of. See Number of banks and branches.
Call reports. See Assets, liabilities, and capital of banks:
Reports from banks.
Capita! of banks. See Assets, liabilities, and capital of banks; Banks in financial
difficulties; Income of insured commercial banks;
Examination of insured banks.
Cease-and-desist proceedings............................................................................ 11-13, 37-44
Charge-offs by banks. See Income of insured commercial banks; Income of insured
mutual savings banks; Valuation reserves.
Class of bank, banking data presented by:
Absorptions .......................................................................................................122-123
Income of insured commercial banks, 1 978 ................................................... 171-172
Insured banks requiring disbursements by FDIC, 1 9 3 4 -1 9 7 8 ....................... 185-187
Number of banks and banking offices, 1978................................ 122-123, 126-134
Number of banks and assets.................................................................................... 135
Classification of banks......................................................................................................... 121
Closed banks. See Banks in financial difficulties.
Commercial banks, See Assets, liabilities, and capital of banks; Deposits; Income of
insured commercial banks; Number of banks and branches.
Community Reinvestment A c t ..................................................... xi-xii, 16, 23-24, 116-117
Compliance examinations.................................................................................. xii, 5, 7, 23-24
Comptroller of the Currency........................................................................ 3, 7, 14, 24, 114
Consolidations. See Absorptions.
Consumer complaints and inquiries, 1977 and 1 97 8 ......................................................... 25
Credit, bank. See Assets, liabilities, and capital of banks.
Credit u n io n s............................................................................................................................xi
Country Exposure R eport............................................................................................... 10, 15
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance, applications for.................................................................................. 15-16
Deposits. See also Assets, liabilities, and capital of banks:
Banks closed because of financial difficulties, 1934-1978 . . . 17-19, 183, 185-187
Commercial banks:
By insurance status and type of bank, and type of account, June 30,
1978................................................................................................................. 143-145
By insurance status and type of bank, and type of account, December 31,
1978............................................................................ .................................... 146-149
By State and asset size of bank.....................................................................136-140
Insured commercial banks:
Average demand and time deposits, 1973-1978 ........................................ 168-169



INDEX

197

December call dates, 1973-1978................................................................... 152-1 54
Insured mutual savings banks:
Average demand and time deposits, 1973-1978 ........................................ 177-178
December call dates, 1973-1978................................................................... 158-1 59
Mutual savings banks, by insurance status, June 30, 1978, and December 31,
1978 ......... ....................................................................................................... 150-151
Deposits insured by FDIC:
Estimated insured deposits, December 31, 1934-1978 ........................................ 192
Maximum per depositor, changes in................................ x, xi, 10, 17, 113, 115-116
Deposits, number of insured commercial banks with given ratios of demand to total
deposits...................................................................................................................... 162-164
Directors of banks.......................................................................................................9, 13, 23
Directors of FDIC. See Federal Deposit Insurance Corporation.
Disbursements. See Banks in financial difficulties.
Divided Examination Program................................................................................................... 7
Dividends:
To depositors in insured mutual savings banks. See Income of insured mutual
savings banks.
To stockholders of insured commercial banks. See Income of insured commer­
cial banks.
Earnings of banks. See Income of insured commercial banks; Income of insured mutual
savings banks.
Electronic data processing, examination o f .....................................................................xii, 10
Employees:
Conflict of in te re st.........................................................................................................4
FDIC.................................................................................................................... 3-4, 116
Insured commercial banks, number and compensation, 1 9 7 3 -1 9 7 8 ........... 168-169
Insured mutual savings banks, number and compensation, 1973-1978. . . . 177-178
Equal Credit Opportunity A c t ..................................................................................xi, 23, 116
Examination of insured banks:
By FDIC, 1 9 7 8 .......................................................................................................xii, 5-7
Regions and regional directors............................................................................ vi, 5, 7
Expenses of banks. See Income of insured commercial banks; Income of insured
mutual savings banks.
Expenses of FDIC...................................................................................... 26-27, 30, 31, 190
Failures, See Banks in financial difficulties.
Fair Credit Billing Act.............................................................................................................. 23
Fair Credit Reporting A c t .......................................................................................................23
Fair Debt Collection Practices A c t ..................................................................................23-24
Fair Housing Lending......................................................................................... xi, 23-24, 116
Federal Banking Agency Audit A c t.............................................................................. 27, 114
Federal Deposit Insurance Corporation:
Actions on applications......................................................................................... 15-16
Assessments on insured banks............................................................. 26, 29-32, 190
A u d it..............................................................................................................................27
Banks examined by, and submitting reports to ................................................. 5-7, 16
Borrowing power.......................................................................................................... 26
Budget and Management Committee............................................................................ 3
Capital Stock.............................................................................................................. 190
Comparative Performance Report................................................................................ 17
Computerized analysis capabilities...................................................................... 17, 24
Consumer and civil rights protection..............................................xi-xii, 9, 19, 23-26
Coverage of deposit insurance........................................x, xi, 10, 17, 113, 115-116
Delegated authority, applications approved under....................................................... 5
Deposit insurance disbursements........................................ 17-21, 26, 184-189, 191



198

FEDERAL DEPOSIT INSURANCE CORPORATION

Deposit insurance fund (surplus).................................................. 26, 29-30, 190, 192
Directors (members of the Board)............................................................................ v, 3
Disclosure...............................................................................................................4, 116
Divisions.................................................................................................................. iv, 3-4
Employees...........................................................................................................3-4, 116
Enforcement activities.............................................................................. 11-13, 37-44
Equal Employment Opportunity Program...................................................................3-4
Examination of banks................................................................................ 3„5-7, 1 7, 23
Financial statements, 1978.................................................................................... 28-32
Income and expenses, 1 933-1978.......................................................................... 190
Insured banks requiring disbursements by. See Banks in financial difficulties
Integrated Monitoring System (IM S ).......................................................................... 17
Liquidation activities.................................................................................. 17-19, 21-22
Loans to, and purchase of assets from, insured banks................... 17-23, 28, 31-32
Losses incurred, 1 9 3 4 -1 9 7 8 ..................................................................... 18, 188-189
Methods of protecting depositors........................................................................ 17, 19
Office of Congressional Relations.................................................................................. 3
Office of Corporate A u d its ..........................................................................................27
Officials........................................................................................................................ v, 4
Organization...............................................................................................................iv, 3
Payments to insured depositors.................................................. 18-19, 185-189, 191
Petition for Representation of Bargaining U nits........................................................... 4
Problem banks....................................................................................................... xii, 7-9
Receiver, FDIC a s ................................................................................................... 21-23
Recoveries............................................................................................. 21-23, 188-189
Regions............................................................................................................................ vi
Regulation of bank securities.................................................................................... 116
Regulation of interest rate s.....................................................................xi, 10-11, 115
Reports from banks............................................................................................... 16-17
Reports of changes in bank control.......................................................................13-14
Reserve for losses on assets acquired................................................... 28, 30, 32-33
Revision of rulemaking procedures............................................................. xi, 114-115
Rules and regulations......................................................... xi, 10-11, 23-24, 114-117
Sources and application of funds................................................................................ 31
Supervisory responsibility....................................................................................5-8, 16
Surveys during 1978.......................................................................xi-xii, 13-14, 16-17
Training programs............................................................................................. 9, 15, 26
Federal Home Loan Bank Board.......................................................................... xi, 9, 24, 114
Federal legislation, 1978 ........................................................................................xi, 113-114
Federal Reserve authorities........................................................................ 5, 7, 24, 113-114
Federal Reserve member banks. See Class of bank, banking data presented by.
Financial Institutions Regulatory and Interest Rate Control
Act of 1978 ......................................................................................xi, 10-14, 17, 113-114
First Bank of Macon County, Alabama.......................................................................... .
21
General Accounting O ffice..................................................................................................... 27
Home Mortgage Disclosure Act of 1975 .............................................................xi-xii, 23-24
Housing and Community Development Amendments Act of 1978 .........................24, 114
Income of FDIC............................................................................................... 26, 30, 32, 190
Income of insured commercial banks:
Amounts of principal components:
Annually, 1973-1978 .................................................................................... 168-169
By class of bank, 1978 .................................................................................. 171-172
By size of bank, 1978 .................................................................................... 173-174
Methods of tabulating data............................................................................ 165-167



INDEX

199

Ratios of income items:
Annually, 1 9 7 3 -1 9 7 8 .............................................................................................. 170
By size of bank, 1978 .................................................................................... 173-1 74
Sources of d a ta ......................................................................................................... 166
Income of insured mutual savings banks:
Amounts of principal components, 1973-1978 ............................................ 177-178
Ratios of income and expense items, 1973-1978 ........................................ 179-180
Sources of d a ta ......................................................................................................... 166
Individual Retirement A ccounts................................................xi, 10-11, 17, 113, 115-116
Insider transactions............................................................................................... xi, 10, 13-14
Insolvent banks. See Banks in financial difficulties.
Insured banks. See Assets, liabilities, and capital of banks; Banks in financial
difficulties; Deposits: Income of insured commercial banks; Income of insured
mutual savings banks; Number of banks and branches.
Insured commercial banks not members of the Federal Reserve System.
See Class of bank, banking data presented by.
Insured deposits. See Banks in financial difficulties; FDIC, coverage of deposit
insurance.
Insured State banks members of the Federal Reserve System. See Class of bank, bank­
ing data presented by.
Interagency Supervisory Committee........................................................................................9
Interagency Supervision........................................................... xi, 7, 9-10, 13-14, 16-17, 24
Interest rates:
Maximum rates on deposits.......................................................................... xi, 11, 115
Paid on deposits............................................................................................... 170, 183
Payment on Individual Retirement Accounts..................................................... 1 1,115
Payment on Keogh Retirement Plans.................................................................11,115
Payment on Treasury Tax and Loan Accounts............................................xi, 11, 115
Regulations:
Automatic Transfer of funds from savings to checking...........................xi, 10, 115
6-Month money market certificates of deposit........................................ xi, 11, 115
8-year certificates of d ep osit.....................................................................xi, 11, 115
International banking....................................................................................xi, 10, 14-15, 113
International Banking Act of 1978.......................................................................... xi, 14, 113
Investments. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC;
Banks in financial difficulties.
Keogh retirement plans.............................................................xi, 10-11, 17, 113, 115-116
Legislation relating to deposit insurance and banking, Federal,
enacted in 1978............................................................................................... xi, 113-114
Litigation:
Fines.............................................................................................................................. 16
Federal Deposit Insurance Corporation vs. The Bevans State Bank of Menard . . . . 16
First Empire Bank vs. Federal Deposit Insurance Corporation.................................. 20
Standby letters of c re d it............................................................................................. 20
Loans. See Assets, liabilities, and capital of banks; Banks in financial difficulties.
Losses:
Of banks. See Income of insured commercial banks; Income of insured mutual
savings banks.
Of FDIC.............................................................................. 18-19, 27, 30-32, 188-190
On loans, reserves for. See Valuation reserves.
Provision for, insured banks................................ 168-169, 170, 173-174, 175-180
Mergers. See Absorptions.
Money market certificates of deposit, survey and regulation................. xi, 11, 15-16, 115
Mutual savings banks. See Assets, liabilities, and capital of banks; Deposits; Income of
insured banks; Number of banks and branches.



200

FEDERAL DEPOSIT INSURANCE CORPORATION

National banks. See Class of bank, banking data presented by.
National Credit Union Administration.............................................................................. 9,114
National Neighborhood Reinvestment Corporation..................................................... 24,114
New banks, 1978......................................................................................................... 122-125
Noninsured banks. See Absorptions; Admission of banks to insurance; Assets,
liabilities, and capital of banks; Banks in financial difficulties; Classification of
banks; Class of bank, banking data presented by; Deposits; Number of banks and
branches; Reports from banks.
North Point State Bank, Illinois............................................................................................. 21
Number of banks and branches:
Banks;
By insurance status and type of bank, June 30, 1978, and
December 31, 1 9 7 8 ...................................................................... 145, 149, 151
By insurance status, type of bank, number of branches, and State,
December 3 1 ,1 9 7 8 ................................................................................ 126-133
By State and asset size of bank.....................................................................136-140
By supervisory status and asset size .....................................................................135
Changes during 1978 .................................................................................... 122-125
Branches:
By insurance status and type of bank, December 31, 197 8 ....................... 122-123
By insurance status, type of bank, and State, December 31, 1978 ......... 126-133
Changes during 1978 .................................. ................................................ 122-125
Insured commercial banks:
December call dates, 1973-1978 ................................................................. 152-154
Distributed by capital ratios and distribution of assets and deposits,
December 31, 1978...................................................................................... 162-164
Insured mutual savings banks:
December call dates, 1973-1978 ................................................................. 158-159
Noninsured banks by State, December 31, 1 9 7 8 ........................................ 126-133
Unit banks, by insurance status and State, December 31, 1978............... 126-133
Obligations of banks. See Assets, liabilities, and capital of banks.
Officials of FDIC .........................................................................................................................v
Operating banks. See Number of banks and branches.
Payments to depositors in closed insured banks. See Banks in financial difficulties.
Personnel. See Employees.
Possessions, banks and branches located in. See Areas outside continental United
States, banks and branches located in.
Problem banks................................................................................................................ xii, 7-9
Protection of depositors. See Banks in financial difficulties; Deposit insurance
coverage.
Real Estate Settlement Procedures Act of 1 9 7 4 ................................................................. 23
Receivership, insured banks placed in. See Banks in financial difficulties.
Recoveries:
By banks on assets charged off. See Income of insured commercial banks;
Income of insured mutual savings banks.
By FDIC on disbursements. See Banks in financial difficulties.
Regions, FDIC............................................................................................................................vi
Remote Service Facility Procedures....................................................................................117
Removal proceedings.............................................................................................................13
Reports from banks................................................................................................................ 16
Reserves:
Of FDIC, for losses on assets acquired......................................................... 28, 32-33
Of insured banks for losses on assets. See Valuation reserves.
With Federal Reserve Banks. See Assets, liabilities, and capital of banks.
Rules and regulations of the FDIC. See Federal Deposit Insurance Corporation.



INDEX

201

Salaries and wages of insured banks. See Income of insured commercial banks;
Income of insured mutual savings banks.
Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC;
Banks in financial difficulties.
Securities and Exchange Commission........................................................................ 16, 116
Securities, bank, regulation o f ......................................................................................16, 116
Securities Exchange Act of 1 93 4 ................................................................................ 16, 116
Size of bank, data for banks classified by amount of assets:
Assets and liabilities, percentages of, insured banks, 1978 ......................... 160-161
Banks requiring disbursements by FDIC, (deposit size) 1934-1978 ..................... 186
Income of insured commercial banks, 1978................................................... 173-174
Income ratios of insured commercial banks, 1978 ........................................ 175-176
Number, assets, and deposits of all banks...............................................................135
Number, assets, and deposits of all commercial banks, by State................. 136-140
Number of employees of insured commercial banks, 1978 .................................. 174
Number of insured commercial banks, grouped by ratios of selected items
to assets and deposits, December 31, 1978 .......................................... 162-164
State, banking data classified by:
Changes in commercial banks and branches, 1978 ...................................... 124-125
Disbursements, deposits, and depositors in insured banks requiring
disbursements by FDIC, 1934-1978 ......................................................... 185-187
Number, assets, and deposits of commercial banks, by asset size of bank . 136-140
Number of banks and branches, by class of bank and type of office,
December 31, 1978 ........... ..................................................................... 126-133
Percentage of banks insured, December 31, 1 9 7 8 ........................................ 126-133
State banks. See Class of bank, banking data presented by.
Stockholders of banks, net profits available for. See Income of insured commercial
banks.
Supervision of bank holding companies..................................................................................7
Supervision of banks by FDIC....................................................................................... 5, 9-10
Supervisory class, banks grouped by:
Assets and liabilities of, June 30, 1978, and December 31, 1978 ............. 143-149
Changes in number of, 1978 .......................................................................... 122-123
Number of banks and s iz e ........................................................................................135
Income of insured commercial banks...............................................................171-172
Number of banking offices, by State, December 31, 1 97 8 ........................... 126-133
Suspension proceedings.........................................................................................................13
Taxes paid by insured banks. See Income of insured commercial banks; Income of
insured mutual savings banks.
Terminations of insurance for unsafe and unsound practices.............................. 11-13, 37
The Drovers' National Bank of Chicago, Illinois...................................................................21
Treasury Tax and Loan A cco u n ts.......................................................................... xi, 11, 115
Trust activities of banks, examination o f.....................................................................xii, 9-10
Trust assets of insured commercial banks, survey o f ........................................................... 9
Trust Department R eport.......................................................................................................10
Truth in Lending A c t.............................................................................................................. 23
Uniform Interagency Supervision. See Interagency Supervision
Unit banks, by insurance status and State, December 31, 1978 ........................... 126-133
United States National B a n k................................................................................................. 19
Valuation reserves. See also Assets, liabilities, and capital of banks:
Amounts held, June 30, 1978, and December 31, 1978 ............................ 143-149
Amounts held, December call dates, 1973,1978 .......................................... 152-154
Watkins Banking Company, Alabama....................................................................................21
Wilcox County Bank, Alabam a............................................................................................. 21







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