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1979 ANNUAL REPO
FEDERAL DEPOSIT INSURAIS




: THE
)RPO




Ill

Board o f D ire cto rs

John G. Heimann

Irvine H. Sprague

William M. Isaac

Comptroller of the Currency

Chairman

Director







LETTER OF TRANSMITTAL

FEDERAL DEPOSIT INSURANCE CORPORATION
W ashington, D.C., August 1, 1 980

SIRS: In accordance with the provisions of section 17(a) of the
Federal Deposit Insurance Act, the Federal Deposit Insurance Corpo­
ration is pleased to submit its annual report for the calendar year
1979.

Very truly yours,

Irvine H. Sprague
Chairman

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




VI




FEDERAL DEPOSIT INSURANCE CORPORATION

VII

FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS
Chairman ............................................................................... Irvine H. Sprague
D irector.....................................................................................William M. Isaac
Comptroller o f the Currency................................................ John G. Heimann
WASHINGTON OFFICE
Deputy to the Chairm an............................................................... Alan R. Miller
Assistant to the D irector............................................................... Edwin B. Burr
Special Assistant to the D ire cto r......................................... Merphil S. Kondo
Assistant to the Director (Comptroller of the
Currency).................................................................................David C. Motter
Executive Secretary...............................................................Hoyle L. Robinson
Director: Division of Bank Supervision......................................... John J. Early
General C ounsel................................................................. Frank L. Skillern, Jr.
C ontroller................................................................................... James A. Davis
Director: Division of Liquidation.................................................George W. Hill
Director, Division of Management Systems
and Financial Statistics.................................................... George G. Kershaw
Director of Research........................................................Stanley C. Silverberg
Director, Congressional Liaison S ta ff...................................... Kenneth Fulton
Director, Office of Corporate A u d its .................................. Robert D. Hoffman
Director, Office of Consumer Affairs
and Civil R ights.................................................................. Henry S. Newport
Director, Office of Personnel Management........................... Jack C. Pleasant
Director, Office of Employee Relations........................................Joe S. Arnold
Assistant to the Deputy to the Chairman......................... Michael A. Hovan, Jr.




December 3 1 ,1 979

FEDERAL

DEPOSIT INSURANCE CORPORATION

REGIONS

Regional Directors
Memphis
Atlanta
Roy E Jackson
.
Lewis C. Beasley
1 Commerce Square, Suite 1800
233 Peachtree Street, N.E., Suite 2400
Memphis, Tennessee 38103
Atlanta, Georgia 3 0 0 4 3
Minneapolis
Boston
Robert P Gough
.
Anthony S. Scalzi
730 Second Avenue South. Suite 266
60 State Street, 17th Floor
Minneapolis, Minnesota 55402
Boston, Massachusetts 02109
New York
Chicago
Bernard J. McKeon
W. Harlan Sarsfield
345 Park Avenue. 21 st Floor
233 S. Wacker Drive, Suite 6116
New York, New York 10154
Chicago. Illinois 60606
Omaha
Columbus
Burton L. Blasingame
Robert V. Shumway
1700 Farnam Street, Suite 1200
1 Nationwide Plaza, Suite 2600
Omaha, Nebraska 68102
Columbus, Ohio 4321 5
Philadelphia
Dallas
James L. Sexton
Quinton Thompson
5 Penn Center Plaza, Suite 2901
350 North St. Paul Street, Suite 2000
Philadelphia, Pennsylvania 19103
Dallas, Texas 75201
Richmond
Kansas City
John R Curtis
.
Joseph V. Prohaska
Eighth and Main Bldg
2345 Grand Avenue, Suite 1500
Kansas City, Missouri 64108
707 East Main Street
Richmond, Virginia 2321 9
Madison
San Francisco
James E Halvorson
.
Charles E. Doster
1 South Pinckney Street, Room 813
44Montgomery Street, Suite 3600
Madison, Wisconsin 53703
San Francisco. California 94104
December 3 1 .1 9 7 9

FED
DEPOSIT INSURANCE CORPORATION
 E R A L
M a in O f
http://fraser.stlouisfed.org/ f ic e : 5 5 0 1 7 t h S t r e e t . N .W ., W a s h i n g t o n . D C. 2 0 4 2 9
Federal Reserve Bank of St. Louis

IX

CONTENTS
PART ONE
OPERATIONS OF THE CORPORATION
Operations of the Corporation....................................................................
Enforcement Proceedings..........................................................................
Problem Banks.............................................................................................
Failed Banks.................................................................................................
Consumer and Civil Rights Protection.......................................................
Interest Rate Developments........................................................................
International Banking..................................................................................
Reports and Surveys...................................................................................
Bank Security...............................................................................................
Securities Activities......................................................................................
Legal Activities.............................................................................................
Research Activities.......................................................................................
Computer Management Systems...............................................................
Special Services...........................................................................................
Personnel.....................................................................................................
Finances of the Corporation........................................................................

3
10
12
14
19
22
24
26
26
27
28
29
30
31
32
34

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

49
50

PART THREE
MERGER DECISIONS OF THE CORPORATION
Bank absorptions approved by the Corporation........................................
Bank absorption denied by the Corporation...............................................

63
127

PART FOUR
REGULATIONS AND LEGISLATION
Legislation— 19 7 9 .......................................................................................
Rules and regulations..................................................................................

131
131

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



138
159
186
201

X

TABLES
NUMBER OF BANKS AND BRANCHES:
Explanatory n o te s .........................................................................................
101. Changes in number and classification of banksand branches in the United
States (States and other areas) during 1979 ...............................
102. Changes in number of commercial banksand branches in the United
States (States and other areas) during 1979, by S ta te ...............
103. Number of banking offices in the United States (States and other
areas), December 31, 1979
Banks grouped by insurance status and class of bank, and by State
or area and type of o ffic e ............................................................
104. Number and assets of all commercial and mutual savings banks in the
United States (States and other areas), December 31, 1979
Banks grouped by class and asset s iz e ......................................
105. Number, assets, and deposits of all commercial banks in the United
States (States and other areas), December 31, 1979
Banks grouped by asset size and S tate......................................
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, 1979
Banks grouped by insurance status and class of b a n k .............
107. Assets and liabilities of all commercial banks in the United States
(States and other areas), December 31, 1979
Banks grouped by insurance status and class of b a n k .............
108. Assets and liabilities of all mutual savings banks in the United States
(States and other areas), June 30, 1979, and December 31, 1979
Banks grouped by insurance status...........................................
109. Assets and liabilities of insured commercial banks in the United States
(States and other areas), December call dates, 1974-1979.........
110. Assets and liabilities of insured commercial banks (domestic and
foreign offices). United States and other areas, 1973-1977 .......
110A. Assets and liabilities of insured commercial banks (domestic and foreign
_
offices). United States and other areas, December 31, 1978 _
110B. Assets and liabilities of insured commercial banks (domestic and foreign
offices). United States and other areas, December 31, 1979 ___
111. Assets and liabilities of insured mutual savings banks in the United
States (States and other areas), December call dates, 1974-1979
112. Percentages of assets, liabilities, and equity capital of insured
commercial banks operating throughout 1979 in the United States
(States and other areas), December 3 1 ,197 9
Banks grouped by amount of a sse ts ..........................................
11 3. Percentages of assets and liabilities of insured mutual savings banks
operating throughout 1979 in the United States (States and other
areas,) December 31, 1979
Banks grouped by amount of a sse ts ..........................................
114. Distribution of insured commercial banks in the United States (States
and other areas), December 31, 1979...........................................



138
140
142

144
153
154
159
161
164
168
170
173
174
176
178

180

181
183

XI

INCOME OF INSURED BANKS:
Explanatory note........................................................................................
1 15. Income of insured commercial banks in the United States (States
and other areas), 1974-1 979 ......................................................
1 16. Ratios of income of insured commercial banks in the United States
(States and other areas), 1974-1 979 ..........................................
1 17. Income of insured commercial banks in the United States (States
and other areas), 1979
Banks grouped by class of bank...............................................
1 18. Income of insured commercial banks operating throughout 1979 in
the United States (States and other areas)
Banks grouped by amount of assets........................................
1 19. Ratios of income of insured commercial banks operating through­
out 1979 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), 1974-1 979 ......................................................
121. Ratios of income of insured mutual savings banks in the United
States (States and other areas), 1974-1 979 ...............................
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:
FDIC INCOME DISBURSEMENTS, AND LOSSES
Explanatory n o te ........................................................................................
122 Number and deposits of banks closed because of financial difficul­
ties, 1934-1979 ............................................................................
123. Insured banks requiring disbursements by the Federal Deposit
Insurance Corporation during 1979 ...........................................
124. Depositors, deposits, and disbursements in failed banks requiring
disbursements by the Federal Deposit Insurance Corporation,
1934-1979
Banks grouped by class of bank, year of deposit payoff or
deposit assumption, amount of deposits, and S ta te ...............
125. Recoveries and losses by the Federal Deposit Insurance Corpora­
tion on principal disbursementsfor protection of depositors 1934-1979
126. Analysis of disbursements, recoveries, and losses in deposit insur­
ance transactions, January 1, 1934-December 31, 1979 .........
127. Income and expenses, Federal Deposit Insurance Corporation, by
year, from beginning of operations, September 1 1, 1933, to
December 31, 1979 ....................................................................
128. Protection of depositors of failed banks requiring disbursements by
the Federal Deposit Insurance Corporation, 1934-1 979 ...........
129. Insured deposits and the deposit insurance fund, 1934-1 9 7 9 _
_




186
189
191
192
194
196
197
199

201
203
204

205
208
209
210
211
212










3

O PER ATIO N S OF
THE C O R P O R A TIO N
The principal objectives of the Fed­
eral Deposit Insurance Corporation
are to protect bank customers through
deposit insurance and consumer pro­
tection programs and to promote a
healthy banking system.
Bank examinations are the front
line of the FDIC's operations to pro­
mote and maintain the safety and
soundness of the banking system
and to enforce compliance with con­
sumer and civil rights laws.
The FDIC has some supervisory
authority over all federally insured
banks, but its primary responsibili­
ties are for the 8,938 insured Statechartered banks that are not mem­
bers of the Federal Reserve System
(insured State nonmember banks)
and 324 insured mutual savings
banks. As of December 31, 1979,
there were 14,608 insured com­

mercial and mutual savings banks
with domestic and foreign assets of
$1. 7 trillio n . These banks ac­
counted for 97 percent of all banks
in the United States.
The Corporation's partner agen­
cies, the Office of the Comptroller of
the Currency (OCC) and the Board of
Governors of the Federal Reserve
System, similarly examine national
banks and State member banks, respec­
tively.
The FDIC depends on a corps of
skilled, dedicated and well trained
field examiners to perform the basic
supervisory function. They are sup­
ported by administrative, policy and
review officials in its Division of
BankSupervision (DBS) in Washington.
Funding for these operations in
1979 commanded the largest share
of the FDIC administrative budget —
$78.1 million, or 68 percent of total
expenditures of $107.1 million.
The bulk of bank supervision fund­

S U PER VISO R Y CLASSES OF B A N K S IN THE
U N ITED STATES, D EC EM BER 3 1 , 1 9 7 9
C o m m ercia l Banks and M u tu a l S avings Banks

NUMBER OF BANKS




ASSETS OF BANKS

State M em ber FRS 6
State M em b er 16.0%
Not Insured by
FDIC 2.8%

FEDERAL DEPOSIT INSURANCE CORPORATION

4

ing is distributed appropriately to
the field. Almost $67.9 million was
expended in 1979 by the 14 Re­
gional Offices which in turn super­
vise 1 50 field examination offices.
The Corporation conducted 19,900
bankexamination activities in 1979.
The following table compares the
1978 and 1979 exami nation workload:
1978
Bank Examination Activities:
Safety & Soundness
Consumer Protection
Examinations of Trust
& EDP Departments
Investigations
A pplications
TOTAL

1979

6,961
6 .6 84

7,2 14
4,8 09

2,092
2,755
1,756

2,523
2,892
2,476

2 0 .2 4 8 19 .914

Efforts to make the most efficient
use of examiner time include new
emphasis on the divided examina­
tion concept. The FDIC has agree­
ments to share examination resour­
ces with State bank supervisors in
Georgia, Missouri, New Jersey, Illi­
nois, Michigan and North Dakota,
and expects to enter into agree­
ments with three additional States in
1980. Such agreements can mean
substantial savings in examiner time
because they provide that each au­
thority need examine each year only
half of those banks whose records
show need of only minimal supervi­
sion. Problem banks, other banks in
need of special supervision, and large
banks are examined both by the
FDIC and the bank's State supervi­
sor at least once each year.
Safety and Soundness Examina­
tions. The first priority of FDIC exam­
inations is the effective surveillance
and supervision of banks having finan­
cial weaknesses or operating prob­
lems. Banks presenting financial risk
to the Corporation receive a fullscope examination at least once
every 12 months. Banks with a less­
er degree of supervisory problems,
but in less than fully satisfactory



condition, receive a full-scope exami­
nation at least every 18 months.
Other banks, not representing finan­
cial or supervisory concern to the
FDIC, receive either a full-scope or
modified examination at least once
in each 18 month period.
To increase and encourage bank
director participation in the supervi­
sory process. Corporation examin­
ers meet with either the Board of
Directors or an appropriate Commit­
tee of the Board at each full-scope
examination, or more often if neces­
sary. The Regional Director, or a desig­
nated representative, participates in
these meetings if the bank is or may
be formally designated a problem
bank.
The FDIC also reviews OCC and
Federal Reserve Reports of Exami­
nation fo r national and Statechartered banks that are members
of the Federal Reserve System. Re­
ports for large banks that are not of
special supervisory concern are re­
viewed annually and reports for small­
er banks are reviewed at least once
every three years. Examination re­
ports of banks that are of supervi­
sory concern, regardless of size, are
reviewed as soon as they are made
available. The FDIC also reviews Re­
ports of Bank Holding Company In­
spection prepared by the Federal
Reserve.
Compliance Examinations: Corpo­
ration responsibility centers on en­
forcement of consumer protection
and civil rights laws for State non­
member banks, including the Truth
in Lending Act, the Fair Credit Re­
porting Act, the Fair Housing Act,
the Home Mortgage Disclosure Act,
the Fair Debt Collection Practices
Act, the Community Reinvestment
Act, the Electronic Funds Transfer
Act, the Equal Credit Opportunity
Act and others.
Violations or exceptions noted dur­
ing compliance examinations are re­
ported to the banks involved and
routinely followed up by the Re­

5

OPERATIONS OF THE CORPORATION

gional Offices to assure corrective
action is taken. If voluntary com­
pliance cannot be obtained by moral
suasion and additional follow-up ex­
aminations, visits, meetings with
Boards of Directors of the banks
involved or other informal means,
the Division of Bank Supervision
(DBS) or the Office of Consumer
Affairs and Civil Rights (OCACR)
may recommend thatformal enforce­
ment action under Section 8(b) of
the FDI Act be initiated. During
1979, the FDIC's Board of Directors
issued seven such orders involving
violations of consumer protection or
civil rights laws and regulations.
This was the second full year of
separate compliance examinations
and the resources devoted to such
examinations is expected to con­

tinue to increase in 1 980. The Cor­
poration spent $ 1 2 million for com­
pliance enforcement in 1979, com­
pared with $9.7 million in 1978and
$2.25 million in 1976.
There were 4,800 compliance ex­
aminations in 1 979, a decline from
6,700 in 1978 as examiners and
institutions adjusted to uniform en­
forcement guidelines which were
introduced in 1978.
Each complianceexamination aver­
aged 56 hours in 1979, almost
double the 1978 average. This is
expected to climb to 70 hours in
1980.
The FDIC expe cts to spend
387,000 examiner hours on com­
pliance examinations in 1 980, a 60
percent increase from 1979. Truthin-Lending enforcem ent w ill ac­

BANK EX A M IN A T IO N ACTIVITIES OF
THE FEDERAL DEPOSIT IN SUR ANCE CORPO RATION
IN 1 9 7 8 A N D 19 7 9
Activity

Number
1979

1978

Bank examination activities— to ta l....................................

19,914

20,248

Safety and soundness exam inations..............................

7,214

6,961

Regular examination of insured banks not
members of Federal Reserve System .........................
Re-exam inations..............................................................
Other exa m ina tion s........................................................

6.887
127
200

6.745
149
67

Consumer protection exam inations.................................

4,809

6,684

Examinations of d e p a rtm e n ts...........................................
Trust d e p a rtm e n ts.............................................................
Data-processing fa c ilitie s ................................................

2,523
1.510
1.013

2,092
1.387
705

Inve stig atio ns.......................................................................

2,892

2,755

Application re v ie w s .............................................................
New banks: State banks members of
Federal Reserve S ystem .................................................
New banks: Banks not members of
Federal Reserve S ystem .................................................
New b ra n c h e s ....................................................................
Mergers and c on solida tio ns...........................................
O th e r....................................................................................

2,476

1,756

30

26

164
1,177
147
958

136
877
103
614




6

FEDERAL DEPOSIT INSURANCE CORPORATION

count for about half of that time, up
from 44 percent in 1979. Equal
Credit Opportunity Act and Com­
munity Reinvestment Act enforce­
ment will each take another 1 5 per­
cent of compliance examination time
and Fair Housing Act enforcement
10 percent.
All examiners receive special train­
ing in the conduct of compliance
examinations. In 1979 compliance
and enforcement programs were
strengthened by creating a career
specialty for compliance examiners.
Atyear-end, 46 of the 1 14 approved
positions were filled. Eventually, all
compliance examinations will be con­
ducted by career specialists. A reor­
ganization plan was under study at
year-end to further strengthen FDIC's
efforts in the consumer area.
Trust Department Examinations. A
State nonmember bank wishing to
operate a trust department must re­
ceive the Corporation's consent to
exercise trust powers. During 1979,
52 new trust departments began
operations in banks supervised by
the FDIC.
The Corporation supervises 2,069
trust departments in State non­
member banks. As of December 31,
1 978, the latest date for which fig ­
ures are available, these trust depart­
ments managed about $45 billion in
discretionary trust assets. Most of
the trust departments supervised by
the Corporation are relatively small:
1,563, or 78 percent, have $ 10 mil­
lion or less in trust assets. However,
the Corporation also supervises 71
trust departments of over $ 100 mil­
lion and 10 of these manage over $ 1
billion in discretionary trust assets.
Additionally, 453 banks were regis­
tered with the FDIC as registrars and
transfer agents of certain classes of
securities as required by the Securi­
ties Exchange Act of 1934.
Each State nonmember banktrust
department is examined regularly by
the Corporation. To enhance the



FDIC's trust examination capabil­
ities, 15 Trust Specialist bank exam­
iners have been appointed in 10
Regional Offices.
Each trust department supervised
by the Corporation must file an an­
nual report showing the market
value of discretionary trust assets
under its control. The 1979 report
was the first such statistical survey
of banks to be conducted under the
auspices of the Federal Financial
Institutions Examination Council (FFIEC).
In addition, the FDIC expanded cov­
erage of the report to include those
mutual savings banks exercising
trust powers. The report also in­
cludes, for the first time, a schedule
giving certain details about each
collective investment fund operated
by a bank's trust department.
A survey to determine the extent of
overseas trust activities of State non­
member banks was conducted atthe
end of 1979 under the auspices of
the FFIEC. The survey requested infor­
mation on the type, volume, and
location of investment management
and other fiduciary services offered
overseas.
The Corporation changed Part 309
of its Rules and Regulations in 1979
to allow additional inform ation
shown on the Trust Department An­
nual Report to be made available to
the public upon request in the same
manner as bank Reports of Condi­
tion and Reports of Income.
A new Part 344 of the Corpora­
tion's Rules and Regulations was
adopted in 1979, effective January
1, 1980, setting uniform minimum
standards in bank recordkeeping,
customer confirmations, and other
policies and reporting requirements
on securities transactions for trust
department and other bank cus­
tomers.
Electronic Data Processing (EDP)
Examination. In 1 979, the FDIC en­
hanced its EDP training program for
examiners, and structured EDPTrain-

/

OPERATIONS OF THE CORPORATION

ing Courses for Interagency use.
In 1978, the Corporation adopted
an Interagency EDP policy state­
ment which brought about joint or
rotated examinations of independ­
ent data centers and distribution of
examination reports to all servicers
and serviced institutions. This gen­
erated a substantial am ount of
paperwork ;so the policy was modi­
fied in m id-1979 in favor of distribu­
tion only when conditions noted at a
servicer could adversely or materially
affect serviced institutions.
Development of the Interagency
EDP Examination Manual began in
early 1979. Publication is expected
in m id-1980 and implementation
shortly thereafter. A draft of the man­
ual was reviewed by bankers, data
processors, consultants and reg­
ulators.
Applications. State nonmember
banks must apply to the FDIC to,
among other things, obtain deposit
insurance, establish new branches,
or relocate existing offices. The Cor­
poration also rules on merger, con­
solidation and purchase and assump­
tion transactions when the resulting

bank is to be an insured State non­
member bank, or on any mergertype transaction of an insured bank
with a noninsured institution. In ap­
proving or denying applications, the
FDIC considers such factors as the
bank's financial history and condi­
tion, its capital adequacy, its future
earnings prospects, the general char­
acter of its management, and the
convenience and needs of the com­
munity to be served, and — in a
merger-type transaction — the ef­
fect on competition.
During 1979, the Corporation con­
sidered:
• three applications of foreign
banks for U.S. branch offices;
• 166 applications of banks for
deposit insurance, including
31 from State member banks
w h ich app lied fo r c o n tin ­
uation of insured statusfollowing voluntary withdrawal of mem­
bership from the Federal Re­
serve system;
• 1,437 applicationstoestablish
new branches or operate lim­
ited branch and remote serv­
ice facilities; and

FDIC APPLICATIO NS
1979

1978

Deposit insurance— to ta l.................................................. .............
A p p ro ve d ........................................................................... .............
D e n ie d ............................................................................... .............

169
167
2

134
130
4

New Branches (prior consent)— to ta l.............................. .............
A p p ro ve d ........................................................................... .............
B ran ch.............................................................................. ............
Limited B ran ch................................................................•............
Remote Service Facility................................................. ............
D e n ie d ................................................................................ ............

1,437
1,434
84 5
122
467
3

1,055
1,045
680
162
203
10

M ergers*— to ta l.................................................................. ............
A p p ro ve d ........................................................................... ............
D e n ie d ................................................................................ ............

53
52
1

70
65
5

‘ C ertain m ergers undertaken as part of internal reorganizations not included.




8

FEDERAL DEPOSIT INSURANCE CORPORATION

• 53 merger-type proposals, in­
cluding three emergency cases.
All applications were approved ex­
cept for two denials of insurance,
three denials of branches, and one
denial of a merger.
The Change in Bank Control Act,
Title VI of The Financial Institutions
Regulatory and Interest Rate Control
Act of 1978 (FIRlRCA), effective
March 10, 1979, expanded Section
7(j) of the Federal Deposit Insurance
Act to give the Corporation and the
other Federal banking agencies the
power to deny in advance changes in
control of insured banks and bank
holding companies. The expanded
Section 7(j) requires personsorgroups
buying control of an insured State
nonmember bankto provide 60 days
written notice to the Corporation,
plus detailed personal background
and financial data and information
on the terms and financing of the
proposed acquisition.
After considering the views of the
appropriate State chartering author­
ity, the Corporation may deny the
proposed acquisition on the basis of
anticompetitive considerations. The
acquisition may also be barred if the
financial status, competence, expe­
rience and integrity of the acquiring
persons or their management might
jeopardize the financial stability of
the bank or prejudice the interests of
the depositors. The legislation pro­
vides for the exchange of informa­
tion among Federal banking agen­
cies and provides appeal p ro ­
cedures for purchasers whose acqui­
sitions have been denied. Previous
requirements that banks report, with
certain exceptions, loans secured by
25 percent or more of the outstand­
ing stock of a bank to the appro­
priate Federal regulator remain in
effect. In addition, reports pre­
viously required from banks relating
to changes in chief executive o ffi­
cers and directors occurring within
12 months of a change in control



were expanded by the 1978 legisla­
tion to include information on their
past and present business and pro­
fessional affiliations.
Implementation of the Change in
Bank Control Act included adoption
by the Corporation of a policy state­
ment and revisions to Part 303 of its
regulations. These were developed
on an interagency basis and are
consistent with those of the other
Federal bank supervisory agencies.
Both reflect policies which provide
for effective administration with mini­
mum additional burden on the mar­
ketplace, balancing the prevention
of serious harmful effects of some
transactions against the impact of
the statute on legitimate business
transactions. Authority to act on cer­
tain "prior notices” has been dele­
gated to the Corporation's Regional
Directors; however, only the Board
of Directors may disapprove a no­
tice.
During 1979,therewere469 changes
in control of State nonmember banks
reported to the Corporation. These
changes included formations of and
acquisitions by bank holding com­
panies, transactions w hich o c ­
curred prior to the effective date of
the Change in Bank Control Act, and
other transactions not necessarily
subjecttothe"prior notice" require­
ments. The Corporation accepted
148 "prior notices" pursuant to the
Act. Of this total, 120 "letters of
intent not to disapprove" were
issued, 1 5 had not been acted on at
year-end, nine were withdrawn and
one was disapproved by the FDIC
Board of Directors. In three cases
the period for disapproval was pur­
posely allowed to expire without the
issuance of a "letter of intent not to
disapprove." Average processing time
for the 1 24 "prior notices" acted on
during 1 979 was 34.5 days. About
3,700 workhours were devoted in
1 979 to evaluating and processing
"prior notices."

OPERATIONS OF THE CORPORATION

In connection with changes in
bank control, the FDIC and the other
Federal bank regulators began ef­
forts in 1979 to develop a compre­
hensive central data base of infor­
mation on foreign investment in U.S.
banks. It is anticipated that the data
base will become operational in
1980.
Uniform Supervision. During 1979,
the Corporation continued to make
significant advances in the devel­
opment of uniform supervisory poli­
cies and procedures and the elimi­
nation of duplication of regulatory
effort. FDIC participation in the Inter­
agency Coordinating Committee, which
was set up early in 1977 to coordi­
nate certain supervisory policies
and procedures among the three
Federal banking agencies was car­
ried over into the activities of the
Federal Financial Institutions Exam­
ination Council (FFIEC).
The FFIEC, which was created by
Title X of FIRIRCA, consists of OCC,
the Federal Reserve Board, the Fed­
eral Home Loan Bank Board, the
National Credit Union A dm inis­
tration and the FDIC. The Council
established five task forces to work
on development of a common moni­
toring system for banks; coordina­
tion of supervisory activities; uni­
form administration of consumer pro­
tection laws and regulations; com­
mon data gathering systems; and
common educational programs. Proj­
ects completed by the various task
forces and approved by the Council
are detailed in the FFIEC's annual
report.They includea uniform inter­
agency system for rating financial
institutions; joint regulations and re­
porting requirements underthe Inter­
national Banking Act; procedures
for coordination of formal corrective
actions and bank holding company
inspections and subsidiary bank exam­
inations; a proposed policy on credit
life insurance sales by lenders; and
policies on uniform disclosure of



9

enforcement actions, payment of bank
employees' membership fees and
dues in private clubs that discrimi­
nate, and the purchase and sale of
U.S.-guaranteed loans.
The uniform system for rating
banks and thrift institutions and ident­
ifying those with problems makes it
possible to reconcile differences among
credit unions, savings and loan asso­
ciations, mutual savings banks and
commercial banks to achieve uni­
formity and consistency in evaluat­
ing their soundness and their com­
pliance with law. While ratings for
individual institutions are not made
public or given to the institutions
examined, a uniform rating system
permits a better comparison of the
varied aggregate data regularly made
available by the five agencies.
Shared national credits are those
loans aggregating $20 million or
more to one borrower which are par­
ticipated in or shared by two or more
banks. During 1979, the FDIC con­
tinued its participation with the OCC
and the Federal Reserve Board in an
annual review of these credits. The
review and classification of shared
national credits, conducted inde­
pendently of regular examinations,
is the responsibility of speciallyselected joint examiner teams as­
signed to the lead bank or agency for
such credits. Ordinarily, shared na­
tional credits are reviewed only on
an annual basis; however, any par­
ticipating bank involved may re­
quest, through its lead bank, that an
interim review of an individual credit
be conducted. The appraisal as­
signed at the lead bank, including
any adverse classification, is appli­
cable to all participations of such
credit held by any national, State
member or State nonmember in­
sured bank, and remains in effect
until the next regular annual review
or subsequent change resulting from
an interim review. A total of 271
insured State nonmember banks par­

10

FEDERAL DEPOSIT INSURANCE CORPORATION

ticipated in shared national credits
in 1979.
The FDIC, the OCC, the Federal
Reserve and the Conference of State
Bank Supervisors jointly issued on
May 7, 1979, a revised statementon
classification of bank assets and
appraisal of securities in bank exam­
inations, including amended rules
for assessing bank holdings of muni­
cipal general obligations. The state­
ment is a revision of the Uniform
Agreement on the Classification of
Assets and Appraisal of Securities
Held by Banks issued in 1938 and
revised in 1949. The revision (1)
provides expanded definitions of'Substandard,'' “ Doubtful/' and "Loss”
categories used for criticizing bank
assets; (2) sets guidelines for ex­
aminers to follow in distinguishing
investment quality from subinvest­
ment quality securities in bank port­
folios; and (3) restates guidelines for
examiners to use in computing a
bank's net sound capital. The re­
vised Uniform Agreement also pro­
vides an exception to the general
rulesfor appraisal and classification
of municipal general obligation se­
curities in bank portfolios.
The three Federal bank regulatory
agencies issued a joint policy state­
ment on November 15, 1979, set­
ting forth precautionary rules and
specific guidelines for commercial
and mutual savings banks that en­
gage in futures, forward and stand­
by contracts for U.S. government
and agency securities. The policy
statement, which is to become effec­
tive on January 1, 1980, said that
banks that engage in these con­
tracts should do so in accordance
with safe and sound banking practi­
ces, with levels of activity reason­
ably related to the bank's business
needs and its capacity to fulfill its
obligations under these contracts. It
also provided a set of guidelines that
should be followed by banks author­
ized to participate in these markets.



The statement noted that the agen­
cies will closely monitor bank tran­
sactions in financial futures, for­
ward and standby contracts. De­
pending on what this monitoring
discloses, it might be necessary to
establish position lim its or take
other supervisory precautions against
unsafe or unsound practices.
ENFORCEMENT PROCEEDINGS
If a supervised bank does not cor­
rect an unsafe or unsound practice
or a violation of a law, rule, regula­
tion or written agreement with the
FDIC, the Corporation may initiate a
cease-and-desist proceeding. If the
bankdoes not comply, the FDIC may
seek enforcement in a U.S. District
Court or levy a fine.
The FDIC may issue cease-anddesist orders under Sections 8(b)
and 8(c) of its Act. During 1979, the
Board of Directors authorized 59
such actions, resulting in 37 final
orders under Section 8(b) and six
temporary orders under Section 8(c).
In addition, 15 final orders were
issued covering cease-and-desist proceedings begun in 1978. The FDIC
also brought one enforcement ac­
tion in 1979 against a bank in the
appropriate United States District Court
for violation of Section 8(b) orders.
The Corporation is making greater
use of its authority to issue ceaseand-desist orders to achieve correc­
tion of certain weaknesses in banks.
It first used the authority in 1971
and from 1971 through 1975 issued
37 orders. Inthelastfouryearsithas
issued 176 orders under Sections
8(b) and 8(c). During 1979, seven
cease-and-desist orders were issued
to correct violations of various consumeroriented laws and regulations. Another
51 orders were issued primarily to
correct unsatisfactory financial con­
ditions or management practices.
FIRIRCAexpanded the Federal bank

ENFORCEMENT PROCEEDINGS

supervisors' authority under Section
8(b) to also permit cease-and-desist
orders against bankers and fines of
up to $ 1,000 per day on both banks
and bankers for certain violations.
No fines were levied during 1979.
The FDIC may initiate terminationof-insurance proceedings under Sec­
tion 8(a) of the Federal Deposit Insu­
rance Act if it finds a bank is in an
unsafe or unsound financial condi­
tion. If a bank does not correct defi­
ciencies noted by the FDIC within a
prescribed time period, an adminis­
trative hearing is held at which the
bank can respond to the Corpora­
tion's charges. If the charges are
substantiated, the FDIC may termi­
nate the insured status of the bank.
The depositors of the bank are then

notified of the termination, but de­
posits (less subsequent withdrawals)
continue to be insured fortw o years.
During 1979, the FDIC initiated
nine termination-of-insurance pro­
ceedings by issuing Findings of Un­
safe or Unsound practices and Con­
dition and Orders of Correction. Six
proceedings were still pending at
year-end; the otherthree were made
moot by two bank closings and a
merger. From 1 934 through 1979,
action was taken under Section 8(a)
against a total of 252 banks, and
246 cases had been closed at the
end of 1979. In slightly less than
one-half of the closed cases, correc­
tions were made; in most of the
other closed cases the banks were
absorbed by other insured banks or

C E A SE -A N D -D ES IST ORDERS A N D ACTIO N S TO CORRECT
SPECIFIC UNSAFE OR UN SO U N D PRACTICES OR VIO LATIO NS
OF LAW OR REGULATIONS: 1 9 7 6 , 1 9 7 7 , 1 9 7 8 , A N D 19 7 9
1979

1978

1977

1976

Actions authorized by Board of D irectors.................................

59

51

50

41

Actions in negotiation at end of ye a r........................................

16

22

6

15

Cease-and-desist orders outstanding at beginning of
ye a r-to ta l....................................................................................
Section 8(b) ..............................................................................
Section 8 (c)...............................................................................

70
67
3

65
63
2

36
34
2

15
15
0

Cease-and-desist orders-issued during y e a r-to ta l.................
Section 8 ( b ) ..............................................................................
Section 8 (c)...............................................................................

43
37
6

31
26
5

39
31
8

26
21
5

Cease-and-desist orders issued in actions authorized
in prior y e a r-to ta l.....................................................................
Section 8 ( b ) ..............................................................................

15
15

6
6

13
13

3
3
o

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

40
31
9

32
28
4

23
15
8

8
5
3

Cease-and-desist orders in force at end of y e a r-to ta l............
Section 8 ( b ) ..............................................................................
Section 8(c)................................................................................

88
88
0

70
67
3

65
63
2

36
34
2




12

FEDERAL DEPOSIT INSURANCE CORPORATION

ceased operations priorto the estab­
lishment of a date for insurance ter­
mination. In 15 cases, insurance
was terminated or the bank ceased
operations following the fixing of a
date for insurance termination.
Under Section 8(e) of the FDI Act,
the FDIC may remove an officer,
director, or other person participat­
ing in the management of an insured
State nonmember bank if it deter­
mines that the person has (1) vio­
lated a law, rule, regulation, or final
cease-and-desist order; (2) has en­
gaged in unsafe or unsound banking
practices; or (3) breached his or her
fiduciary duty. The individual's ac­
tion must involve personal dishon­
esty or a willful disregard for the
safety and soundness of the bank.
Also, the action must entail substan­
tial financial damage to the bank, or
seriously prejudice the interests of
the bank's depositors or the individ­
ual must have received financial gain.
During 1 979, two actions were
taken under Section 8(e).
Section 8(g) of the FDI Act author­
izes the Corporation to suspend or
remove officers, directors, and other
persons participating in the affairs
of insured State nonmember banks
who are indicted for a felony involv­
ing dishonesty or a breach of trust.
One individual was suspended under
this section in 1979.
Section 19 of the FDI Act prohibits
anyone convicted of any criminal
offense involving dishonesty or breach
of trust from serving as a director,
officer or employee of any insured
bank without the written consent of
the Corporation. In 1978 the Corpo­
ration amended Part 303 of its regu­
lations to delegate to the Board of
Review, the Director of the Division of
Bank Supervision, and its Regional
Directors the authority to approve
certain applications under Sec­
tion 19 where the subject of the
request would not constitute a sig­
nificant threat or risk to the safety



and soundness of the applicant bank.
During 1979, the Corporation con­
sidered 62 cases under Section 19,
approving all but four.

PROBLEM BA N K S
For the third consecutive year, the
number of institutions on the FDIC's
list of problem banks, which peaked
at 385 in November 1976, con­
tinued to decline. By year-end 1979,
the number of problem banks was
287, the lowest since m id-1975 and
a net reduction of 55 for the year.
The decrease is attributed to improve­
ment in the real estate sector and in
local economic conditions follow­
ing the 1973-1975 recession. Be­
cause of the time lag before banks
are affected by an economic cycle
and the time it takes to examine
banks and complete the review and
analysis process, any increase inthe
number of problem banks stemming
from unfavorable developments in
the last half of 1979 might not be
evident until late 1980.
The problem bank list (which in­
cludes national and both member
and nonmember State banks) con­
tinues to be very fluid and most
banks remain on the list for a rela­
tively short period. During 1979,
there were 198 banks removed from
problem status, while 143 were
added. Of those on the list at the end
of 1979, 55 percent had been in
problem status for 18 months or
less, while only 23 percent had been
on the list for more than three years.
Areas of concern in these newlydesignated problem banks included
asset problems resulting from mis­
management and/or insider abuses,
poor earnings, inadequate capital,
and insu fficie n t liquidity. W hile
some banks have relaxed loan qual­
ity considerations in an effort to
generate income to meet rising
costs, other banks have experienced

13

PROBLEM BANKS

disintermediation problems, both of
which have become matters of super­
visory concern.
The FDIC divides problem banks
into three categories based on the
degree of insurance risk:
SERIOUS PROBLEM— POTEN­
TIAL PAYOFF: An advanced seri­
ous problem situation with an
estimated 50 percent or more
chance of requiring financial
assistance by the FDIC.
SERIOUS PROBLEM: A situa­
tion thatthreatens ultimately to
involve the FDIC in a financial
outlay unless drastic changes
occur.
OTHER PROBLEM: A situation
in which a bank has significant

weaknesses but the FDIC is
less vulnerable. Such banks requireaggressivesupervisionand
more than ordinary attention.
An analysis of the problem bank
list since 1973 shows that about 34
percent of the banks once desig­
nated "Serious Problem-Potential
Payoff" ultimately failed. Another 10
percent merged with other banks
without financial assistance from
the Corporation, while one percent
were financially assisted by the Cor­
poration. Fifty-three percent were
accorded a less severe rating or
removed from problem status. Each
of the banks in this category at the
end of 1979 held deposits of less
than $50 million. The two most seri-

NUMBER OF PROBLEM BANKS
1 9 7 0 — 1978
N um ber o f Banks

4 0 0 -------------------|

S erious P rob lem — Potential Payoff

feBjH S erious Problem
]

----

O ther Problem

300-

200

100

1970

1971




1972

1973

1974

1975

1976

1977

1978

1979

14

FEDERAL DEPOSIT INSURANCE CORPORATION

ous problem categories accounted
for 67 of the problem banks at yearend 1979, a significant reduction
from the 93 at the end of 1978.
Of the 287 banks on the problem
list at the end of 1979, nine were
affiliates of multi-bank holding com­
panies, while 34 were owned by
one -b a n k h o ld in g com pan ies.
Based on deposit size, banks on the
problem list were distributed as fol­
lows:
Deposit Size
Number of Banks
Less than $25 m illion
1 93
$25 - $50 m illion
47
$50 - $ 100 m illion
24
$1 00 - $5 0 0 m illion
15
$5 00 m illio n - $ 1 billion
6
$ 1 billion or more
_ 2
_
TOTAL
287

P roblem banks re p re se n te d
only about two percent of all banks
insured by the FDIC.
The FDIC continues to aggres­
sively supervise problem banks, as
well as those which need moresupervisory attention but do not present
an undue risk to the insurance fund.
During 1979,the Corporation adopted
a procedure to generally require, as
a minimum, cease-and-desist action
againsta problem bankand a less for­
mal memorandum of understanding
with a bank considered to be of super­
visory concern, as defined by the
uniform rating system. This procedurealso isfollowed bytheOCC and
the Federal Reserve Board. Close con­
tact at the W ashington and Re­
gional levels with these Federal reg­
ulators has enabled the Corporation
to keep more currently informed about
banks supervised by them and,
where appropriate, has facilitated
the scheduling of examinations of
related banks and holding compan­
ies supervised by the FDIC and the
other supervisors. Atyear-end, the agencies adopted policy statements cal­
ling for close coordination of exam­
inations and enforcement actions



against related institutions.
The Corporation continues to con­
duct more frequent examinations
and visitsto problem banks, to regu­
larly meet with directors and man­
agement of such banks, and to for­
mally notify them when their bank is
recommended for problem status.
Such procedures not only keep the
d ire ctors of problem banks in ­
formed of the Corporation's con­
cern, but point out their responsibili­
ties and duties in developing and
implementing corrective programs.
FAILED B A N K S
Protection of Depositors. Ten in­
sured banks with deposits totaling
$111 million closed in 1979, com­
pared to seven banks with $854 mil­
lion in deposits in 1978. The FDIC
has nearly completed payoffs of de­
posits of about $12.7 million in
three of the 1979 closings. In the
seven other closed banks, the FDIC
arranged purchase and assumption
transactions which automatically pro­
tected all accounts, including those
in excess of the insurance limit. The
purchase and assumption transac­
tions were assisted by cash ad­
vances of $70.5 million from the
FDIC insurance fund. In these cases
$7.8 million in purchase premiums
were received from the assuming
banks.
The deposit assumption and the
deposit payoff are the two principal
methods available to the FDIC to
protect depositors. In the 558 in­
sured bank failures that have re­
quired Corporation disbursements
since 1934, 251 were deposit as­
sumptions and 307 were direct de­
posit payoffs. In the assumption meth­
od, which has been used increas­
ingly in recent years, the depositors'
accounts in the failed bank become
depositaccountsinthehealthyassuming bank. All depositors are thereby

15

FAILED BANKS

afforded full protection with min­
imal or no disruption of banking ser­
vices to the community. In a payoff,
the FDIC pays depositors the net
amount covered by deposit insur­
ance. These payments usually begin
within five to seven days of the bank
closing. Payments of the uninsured
portions of deposits, to the extent
possible, are made over a period of
tim efrom the proceeds of liquidated
assets and other sources.
The FDIC also may provide direct
assistance to an operating insured
bank in danger of failing to enable it
to remain open if that bank is essen­
tial to maintain adequate banking
services in a community. It has pro­
vided such assistance in four cases,
most recently in 1976.
In the 558 failed bank cases, 99.8
percent of the depositors had re­

ceived or were assured of payments
of their deposits in full at the end of
1979, and 99.8 percent of the total
deposits had been paid or made
available to them. In the 307 deposit
payoff cases, 98.8 percent of depos­
itors had received full recovery. While
the recovery of uninsured deposits
varies, in the aggregate almost 97
percent of total deposits had been
paid or made available. About 70
percent of the total amount already
recovered by or made available to
depositors in deposit payoff cases
was provided by FDIC payment of
insured deposits, with additional
amounts provided from the pro­
ceeds of liquidated assets, offsets
against indebtedness and pledged
assets.
Liquidation Activities. During the
1960s, 43 insured banks with as-

DEPOSITS AND LOSSES IN ALL INSURED BANKS
REQUIRING DISBURSEMENTS BY FDIC, 1 9 3 4 -1 9 7 9
TOTAL DEPOSITS
$7.40 billion
DISBURSEMENTS BY FDIC"
$5.22 billion

Lost or not yet available to depositors
$14.5* million

•Revised
"Includes collections and disbursements by liquidators in the field ($1.5 billion) which were
previously excluded from this chart.




FEDERAL DEPOSIT INSURANCE CORPORATION

16

I N S U R E D B A N K F A IL U R E S

1934

—

1979

N u m b e r o f ban ks
8 0 ----------------------------------------------------------------------------------------------------------------------------------

70D e p o s it P a y o ff
D e p o s it A s s u m p tio n
60-

50-

40-

sets of $326.5 million failed, affect­
ing 231,688 depositors with depos­
its of $283.5 million. The 1970s
saw 76 insured bankfailures involv­
ing assets of about $8 billion and
2.1 million depositors with deposits
totaling about $5 billion. At the end
of 1979, the Division of Liquidation
was disposing of the assets of 84
banks in 27 States, the Virgin Is­
lands, and Puerto Rico. At year-end
1979, there were more than 76,000
assets with a book value of more
than $1.9 billion to be liquidated.
About one-third of these assets were
real estate related.



The FDIC's policy is to convert the
assets of closed banks to cash as
early as practical and to realize max­
imum recovery for distribution to the
creditors and stockholders.
In the 53 purchase and assump­
tion transactions inthe 1970s, banks
acquired about $3.6 billion of as­
sets from the FDIC. as receiver,
which had the effect of immediately
recovering substantial amounts for
the creditors. For the same period,
the FDIC, as liquidator, collected
about $3.8 billion in principal, inter­
est and costs from the remaining
assets. In addition, the receiverships

FAILED BANKS

recovered $325 million from pur­
chase premiums paid by banks for
the right to acquire the failed banks'
deposits and banking locations.
Recovery for creditors and stock­
holders can also result in some cases
from directors' liability actions ini­
tiated by the receiver and /or liquid­
ator. Because many bank closings
are the direct result of bank direc­
tors' failure to use reasonable care
in discharging their duties or permit­
ting violations of banking laws, the
FDIC normally investigates potential

negligence and files claims when
warranted against members of the
bank's board. In 1979, the FDIC filed
four directors' liability suits; at the
end of 1979, there were 26 such
suits pending.
Whenever it is determined thatthe
bank suffered losses due to the fraud­
ulent and dishonest acts of its em­
ployees, the Corporation pursues a
claim against the institution's Bank­
ers Blanket Bond carrier. Most claims
are settled without litigation. How­
ever, at the end of 1979, there were

INSUR ED BAN KS CLOSED DURING 1 9 7 9 REQ UIRING DISBUR SEM ENTS
BY THE FEDERAL DEPOSIT IN SUR ANCE CO RPO RATION

Name and location

Date of
deposit payout
or assumption

Number of
depositors
or accounts

Am ount of
deposits (in
m illions of
dollars)

Toney Brothers Bank
Doerun, G e o rg ia .....................

January 5, 1979

1.470

5.8

Village Bank
Pueblo West, C o lo ra d o ..........

January 26, 1 979

1.394

4.9

Southern National Bank
Birmingham, A labam a............

June 14. 1979

3.61 1

24.0

Bank of Enville
Enville, T enn esse e..................

June 16. 1979

949

3.1

The Guaranty Bank & Trust
Company
Chicago, I llin o is ......................

July 14. 1979

5.2 70

7.4

Gateway National Bank of
Chicago
Chicago, I llin o is ......................

July 14. 1979

3 ,7 0 0

9.2

The Farmers State Bank
Protection, Kansas..................

September 2 1 ,1 979

1,206

4.7

Fidelity Bank
Utica, M is s is s ip p i....................

September 28, 1 979

1 1.91 1

30.2

American National Bank
Houston. T e x a s .......................

October 1 2, 1 979

5.1 00

10.4

Livingston State Bank
Livingston. New J e rse y ..........

October 1 2, 1 979

7.226

11.1




FEDERAL DEPOSIT INSURANCE CORPORATION

18

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 ,
M illio n s o f d o lla rs

1970—

1979

2. 70 0--------------------------------------------------------------------------------------------------------

1970

'71

N um ber

90 -----------------

3 0 ------------------

20----------------10 ------------------

0— i----------r1970

—I
—

— r~

'71

12

73

74

nine such suits pending.
An important innovation in the
FDIC’s liquidation program devel­
oped in 1979 for introduction in
1980 is a separate budget to intro­
duce tighter monitoring and control
to this unique aspect of FDIC opera­



75

- r-

76

'77

'78

'79

tions. This budget will encompass
insurance fund expenditures which
the Corporation seeks to recoupthrough
liq u id ation operations before it
writes off a loss. The 1 980 budget
covers costs to be incurred in 1980
in the continuing administration of

CONSUMER AND CIVIL RIGHTS PROTECTION

banks that failed in 1979 or earlier—
an active caseload of 84 banks.
There is also a small contingency
fund to begin closed-bank activities
for failures that may occur in 1980.
Individual closed-bank budgets will
be developed and incorporated as
failures occur.
Also, a new integrated liquidation
accounting system, to become opera­
tional in January 1980, is designed
to operate on computers. It will be
able to produce on demand full finan­
cial statements and budget status
reports for all closed-bank activities.
These reports separately and to ­
gether will provide much greater
information for the management of
banks in liquidation.
The system tested well in late 1979,
but 1 980 will be a year of conver­
sion and initial operation. The Cor­
poration will obviously need some
running time and experience with
the system to overcome shortcom­
ings and introduce refinements.
The FDIC is charged with obtain­
ing the best possible recovery in
each liquidation. Its goal is to repay
the insurance fund first and to return
any excess to bank shareholders
where a purchase and assumption is
arranged or to share the recovery
proportionally with general cred­
itors and then the shareholders when
the Corporation serves as receiver
following a deposit payoff.
CONSUMER AND CIVIL
RIGHTS PROTECTION
Resolving Complaints. Examiner moni­
toring of consumer and civil rights
compliance by banks is comple­
mented by the work of the Office of
Consumer Affairs and Civil Rights
(OCACR) which follows up com ­
plaints of individuals. OCACR also
disseminates consumer protection
information and in November 1979
introduced a consumer hot line which



19

draws about 240 calls a week. This
hot line helps consumers and banks
by promoting better understanding
and resolution of questions.
This year saw the appointments of
OCACR's first permanent Director
and a Community Reinvestment Act
specialist. The Corporation also ap­
pointed a specialist for Spanish­
speaking persons. Among otherduties,
this specialist oversees the transla­
tion of FDIC consumer pamphlets
into Spanish. OCACR w ill also
launch a special outreach program
forSpanish-speaking persons in 1980
and will explore the possibility of
other specialized outreach pro­
grams.
In 1979 the FDIC instituted a new
computerized system to:
(1) follow the status and handling of
consumer complaints and requests
for information,
(2) produce one-page summaries of
census information for use by exam­
iners and other FDIC personnel eva­
luating bank compliance with the
Community Reinvestment Act,
(3) summarize hundreds of letters of
comment on proposed new Truthin-Lending Guidelines, and
(4) tabulate a follow-up survey ask­
ing complainants if their problems
were satisfactorily resolved.
Fair Housing. The FDIC developed
and pre-tested a data collection sys­
tem to provide a valid statistical
basis for the monitoring of home
loans under the Fair Housing and
Equal Credit Opportunity Acts. This
system will supplement the tools of
the compliance bank examiner. It is
slated to become operational during
1980.
The data collection system is de­
signed to detect possible home loan
discrimination. The relationship be­
tween inquiries and applications, be­
tween successful and unsuccessful
applications, and the loan terms grant­
ed to borrowers will be categorized
and compared by the race, sex, age

20

FEDERAL DEPOSIT INSURANCE CORPORATION

and marital status of inquirers and
applicants. Use of this system will
not definitely establish the existence
of illegal discrimination, but should
identify for FDIC examiners those
banks requiring more extensive exam­
ination and follow-up.
Mortgage Disclosure. The FDIC and
the Federal Home Loan Bank Board
completed a study of the Home Mort­
gage Disclosure Act (HMDA). The
study assessed the accuracy of 44
depository institutions' HMDAstatements and the cost of preparing the
data on mortgage lending activity
w hich appears in these s ta te ­
ments.
The study concluded that home
mortgage disclosure data are used
extensively by the Federal financial
supervisory agencies as part of their
compliance examinations. However,
it concluded that many institutions
do not have sufficiently accurate
statements. Further, the cost of com­
piling home mortgagedisclosuredata
was shown to vary considerably among
institutions.
The report recommended exten­
sion of the Act, which was passed in
1975 and expires in 1980 if not
reenacted. The FDIC has gone on
record as supporting the extension
of the Home Mortgage Disclosure
Act.
Truth-In-Lending Enforcement Guide­
lines. The FDIC, in conjunction with
the other Federal financial regula­
tory agencies, adopted effective Jan­
uary 4, 1979, uniform guidelines for
the enforcement of Truth In Lending
Regulation Z. These guidelines call
for reimbursement to customers for
overcharges of $ 1.00 or more, or for
smaller overcharges that are part of
a consistent pattern of violations or
result from gross negligence or w ill­
ful violations of the Truth In Lending
Act. Changestosimplifyand streng­
then the guidelines were proposed
in October. Pending consideration
of the nearly 800 comments re­



ceived and the adoption of revised
guidelines, FDIC supervised banks
are temporarily being permitted to
defer making such reimbursements.
Community Reinvestment. The Com­
munity Reinvestment Act (CRA) of
1977, which became effective in
November 1978, requires the Cor­
poration to monitor the records of
financial institutions in meeting the
credit needs of their communities,
including lowand moderate-income
neighborhoods.
Effective February 4, 1979, the
Board of Directors of each insured
State nonmember bank was re­
quired to adopt a CRA statement for
its local service area. FDIC regula­
tions specify the minimum require­
ments for a CRA statement and,
among other things, require that the
current CRA statement be available
for public inspection at the home
office of the bank and at each office
of the bank in the local community
delineated in the statement, except
for off-premises electronic deposit
facilities. Banks are required to main­
tain files that are readily available for
public inspection, including any
signed written comments received
from the public within the previous
two years that specifically relate to
the bank's statement or its perfor­
mance in helping meet the credit
needs of its community or com­
munities.
A bank's CRA perform ance is
taken into account by the FDIC in
considering applications for deposit
insurance, establishment of branches
or other facilities, relocations of
main or branch offices, and applica­
tions for merger, consolidation, ac­
quisition of assets or assumption of
lia b ilities. The assessment of a
bank's CRA performance record may
be a basis for denial of an applica­
tion.
Twenty-five challenges to applica­
tions by FDIC-supervised banks
have been filed on CRA grounds,

21

CONSUMER AND CIVIL RIGHTS PROTECTION

and early in 1979 the first denial of a
bank application on CRA grounds
occurred. Other applications which
were subjected to challenges have
been approved by the Corporation
and activity in this area continues to
be substantial, particularly in met­
ropolitan areas.
Right to Financial Privacy Act of
1978 . The Right to Financial Privacy
Act, Title XI of FIRIRCA, became
effective in March 1979. The Act
places restrictions on the use of
information derived from bank cus­
tomer records which is lawfully in
the FDIC's possession. In most cases,
customer information contained in
examination reports can no longer

be transferred to other Federal govern­
ment authorities without notifica­
tion to the affected customer. Also,
the FDIC must be assured that the
information is required in connec­
tion with a legitimate law enforce­
ment activity. In 1979 the Division
of Bank Supervision began review­
ing and revising all policies and
procedures which are affected by
the provisions of the Act.
Consumer Complaints and Inquir­
ies. OCACR is responsible for the
appropriate disposition of con­
sumer complaints and inquiries di­
rected to the FDIC. During 1979
there were 2,801 complaints and
5,270 inquiries received by the FDIC

CO NSUM ER CO M PLAINTS A N D INQ UIRIES, 1 9 7 8 A N D 1 9 7 9
1979

1978

Complaints and inquiries— to ta l......................................

8,071

4,737

Deposit fu n ctio n .............................................................
Payment of in te re s t..................................................
Account diffe re n ce s.................................................
A dve rtising.................................................................
Early withdrawal p e n a ltie s ......................................
Policies and practices..............................................
‘ D iscrim ina tion...........................................................
O th e r...........................................................................

2,685
243
377
82
745
587
11
641

1,315
158
182
34
217
574

Loan fu n c tio n .................................................................
State or contract la w ................................................
Equal Credit O pportunity A c t.................................
Fair Credit Reporting A c t........................................
Individual bank loan po licy......................................
Collection and repossession...................................
Fair housing................................................................
Truth in le n d in g ........................................................
Other Federal law s....................................................
O th e r...........................................................................

2,528
163
646
256
180
142
51
379
285
426

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

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

61

68

Safe deposit— safekeeping services..........................

38

32

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

974

685

G eneral...........................................................................

1,754

706

•Electronic Funds T ra n s fe r...........................................

31

‘ Category not listed for 1 978.




—

150

—

22

FEDERAL DEPOSIT INSURANCE CORPORATION

nationwide, an increase of 538 and
2,796, respectively, over 1978. This
increase is due in part to installation
of a toll-free telephone number
(800-424-5488) at the Washington
Office to handle complaints and in­
quiries. The increase also is attribu­
table to an outreach initiative to
increase consumers' awareness of
their rights under the various con­
sumer protection and civil rights sta­
tutes. Mostquestionsfielded by OCACR
centered on deposit withdrawal pen­
alties, bankdeposit policies and prac­
tices, the Equal Credit Opportunity
Act and the Truth in Lending Act.
Corrective action is sought in all
cases where a bank error or violation
of law is discovered as a result of a
complaint, and follow-up action is
taken to ensure compliance.
Consumer and Banker Education.
During 1979, the OCACR staff made
numerous presentations to consu­
mer, community and industry groups.
The FDIC also distributed more than
3 2 m i l l i o n p a m p h l e t s on c o n s u m e r

information. These free pamphlets
are available singly to individuals
and in quantity to banks and consu­
mer organizations. OCACR also has
distributed these pamphlets at con­
sumer fairs and national confer­
ences.
Minority Bank Development Pro­
gram. In 1979, the three Federal
bank regulatory agencies and the
Department of Commerce were instru­
mental in organizing the Minority
Bank Development Program. The pro­
gram is designed to serve as a cata­
lyst to coordinate, structure and en­
courage private sector support for
the nation's minority-owned banks,
of which there are about 100. The
program will offer management and
market development activities and
foster the establishment of an inde­
pendent capital support vehicle.
Opportunity Funding Corporation
has been given the grant to estab­
lish, coordinate and direct all pro­



gram components. An Executive Com­
mittee composed of private sector
participants and the Department of
Commerce will offer continuing ad­
vice on all aspects of the program
and its policies and priorities. The
FDIC and other bank regulators
serve on an Advisory Committee which
will offer training assistance, per­
form studies, provide feedback on
the program's effectiveness and
make suggestions for im prove­
ments. The FDIC's share of the fund­
ing of this program is on a year-toyear basis and future grants will
depend on an assessment of the
program's effectiveness. At the end
of 1979, the program's manage­
ment was in place and studies were
nearing conclusion on criteria for
selection of a few target banks for
receipt of intensive assistance.

INTEREST RATE
DEVELOPMENTS
Increased Interest Expense. Sharp­
ly rising interest rates and such in­
novations as money market certifi­
cates of deposit (MMCDs), auto­
matic transfer service (ATS) and neg o tia b le o rd e r of w ith d ra w a l
(NOW) accounts in New York State,
combined to cause marked changes
in the liability structure of many U.S.
banks in 1979. Banks acquired highyielding assets, but on balance, the
net effect on the industry as a whole
probably was some narrowing in net
interest margins.
The general level of interest rates
on market securities fluctuated with­
in a range of 9 to 10 percent in the
first half of 1 979, before rising
sharply in the second half. At yearend, six-month Treasury bill rates
were 12.50 percent on a bond-yield
basis and Federal funds rates ap­
proached 15 percent. MMCD rates
more than doubled over the rates
available on regular passbook sav­

INTEREST RATE DEVELOPMENTS

ings and other time deposits of less
than $10,000, prompting the con­
version of many deposit accounts.
At commercial and mutual savings
banks, holdings of MMCDs (time
deposits of $10,000 or more with
maturities of six months and paying
a maximum rate linked to the inter­
est rate on newly issued six-month
Treasury bills) increased sharply as
banks sought to compete with alter­
native market instruments, includ­
ing money market mutual funds.
By the end of December 1979,
MMCDs amounted to $34.4 billion,
or more than 24 percent of total
deposits at mutual savings banks,
and to $103.2 billion or nearly 10
percent of total domestic deposits at
commercial banks. Special tabula­
tions from September and Decem­
ber condition reports showed an
increase from 570 to 1,573 in the
number of insured nonmember
banks having ratios of MMCDs to
total deposits of 20 percent or more.
Banks with less than $ 100 million in
assets headquartered outside met­
ropolitan areas held a disproportion­
ately large amount of these highcost deposits.
Accenting the 1979 increase in
interest expense for banks was the
continuing shift of consumer funds
from non-interest bearing demand
deposits to interest-bearing trans­
action accounts: ATS and NOW bal­
ances. A substantial amount of ef­
fort is being expended through the
bank monitoring systems to assess
the capacity of individual bank man­
agements to structure their loan and
securities portfolios to cope with the
present inflationary environment.
Mutual Savings Banks. Unprecedentedly high interest rates, espe­
cially in the latter half of 1979, sub­
jected the mutual savings bank in­
dustry to a severe earnings squeeze.
In addition, savings banks, particu­
larly in metropolitan areas such as
New York and Boston, experienced



23

substantial deposit outflow s in
1979. With increasing interest rates
available in other areas, net deposit
outflows excluding interest at mu­
tual savings banks increased through­
out the year and totaled $7 billion
for 1979. For the month of October
alone, deposit losses were well in
excess of $ 1 billion.
The introduction of six-month
money market certificates in 1978,
while perhaps averting some de­
posit losses, sharply increased the
cost of funds for mutual savings
banks. Large proportions of these
money market certificates repre­
sented transfers from relatively lowcost savings deposits. With relative­
ly inelastic earnings position, the
overall profitability of the industry
was substantially reduced in 1979.
Reflecting a concern for the earn­
ings squeeze and deposit outflow,
with the resultant liquidity pres­
sures, the FDIC increased its efforts
to more closely monitor industry
trends as well as its surveillance of
individual banks.
Small Savers. In an effort to help
small savers. Federal regulators
moved jointly in 1979 to approve a
series of interest rate regulatory
changes.
Effective July 1, regulators in­
creased the maximum passbook
rate to 5 1 percent from 5 percent
/4
for commercial banks and to 51
/2
percent from 5 1 percent for thrifts,
A
created a newfour-yearfloating rate
savings certificate and eliminated
the minimum denomination on most
time deposits.
In December, regulators created a
new 2V4 year certificate to replace
the four-year floating rate certifi­
cate, at a yield tied to the yield on
Treasury securities maturing in 2 Vi
years. The agencies also increased
the ceiling on 90 day to one-year
deposits to 5% percent from 5Vi
percent for commercial banks and
to 6 percent from 53 percent for
A

24

FEDERAL DEPOSIT INSURANCE CORPORATION

thrifts. These actions were to be­
come effective January 1, 1980.
IN T E R N A T IO N A L B A N K IN G
The Corporation's increased in­
volvement in the area of interna­
tional banking continued during
1 979 as evidenced, in part, by the
issuance of several regulations and
final as well as proposed policy state­
ments covering aspects of this im­
portant segment of the banking bus­
iness. Much of the Corporation's
activity was attributable to FIRIRCA
and the International Banking Act of
1978 (IBA).
To implement FIRIRCA, the Corpora­
tion adopted a new regulation, Part
347, pertaining to foreign banking
activities of insured State nonmem­
ber banks. Under the regulation, an
insured State nonmember bank
must obtain the Corporation's con­
sent before establishing its first
branch in a foreign country or be­
fore acquiring any ownership inter­
est in a foreign bank or other finan­
cial entity. A foreign branch is per­
mitted to exercise certain powers
beyond its general banking powers,
provided they are consistent with
the laws of the State where the bank
is chartered and with banking prac­
tices in the foreign country where
the branch is located.The regulation
also sets forth requirements for
establishing additional branches in
a foreign country; for recordkeep­
ing, controls and reporting on for­
eign activities; and for making loans,
purchasing securities or investing in
affiliated foreign banks or financial
entities.
Another new regulation, Part 346,
was issued to implement Section 6
of the IBA which, among other
things, authorizes and in some
cases requires, Federal deposit in­
surance coverage of U.S. branches
of foreign banks. Under the regula­
tion, a State branch of a foreign bank
which accepts initial deposits of less
than $100,000 must become in­



sured if it is located in a State that
requires State banks to have deposit
insurance. A branch may be exemp­
ted from this requirement if the ac­
ceptance of initial deposits of less
than $100,000 is limited to one or
more exempt categories listed in the
regulation. A branch which is ex­
empted by the regulation from the
insurance requirement must notify
its depositors that deposits in the
branch are not insured.
The regulation also sets forth re­
quirements for the operation of in­
sured branches, including — but not
limited to — furnishing the Corpora­
tion with information regarding the
overseas activities of the foreign
bank and its affiliates to the extent
allowed by foreign law; allowing the
FDIC to examine all offices of the
foreign bank and its affiliates in the
U.S.; pledging assets to the Corpo­
ration; and maintaining assets pay­
able in the U.S., in dollars or a freelyconvertible foreign currency, at
least equal to the amount of the
insured branch's liabilities. In addi­
tion, the regulation establishes rules
for the operation of insured and
uninsured branches in the same
State.
During the year, 14 foreign banks
applied fo r insurance fo r 26
branches located in various parts of
the country. At year end, insurance
had been granted to three branches
of two banks.
Since the IBA granted supervisory
responsibilities to each of the Fed­
eral bank regulatory agencies, a
joint policy statement was issued
through the FFIEC on the supervi­
sion of U.S. branches and agencies
of foreign banks. The agencies' super­
visory operations will be aimed at
assuring the safety and soundness
of these institutions and their adher­
ence to U.S. law and regulation. To
ensure close cooperation with State
authorities, a uniform examination
approach has been developed through
the FFIEC to minimize dual examina­
tions and to facilitate joint FederalState examinations, when desirable.

INTERNATIONAL BANKING

The Federal regulatory authorities,
through the FFIEC and in coopera­
tion with affected State authorities,
also have developed joint reporting
requirements for U.S. offices of for­
eign banks. In recognition of the
reliance of these offices on the finan­
cial strength of their parent and affil­
iated offices outside the U.S., the
regulators also will seek assurance
thatthe parent institutions are finan­
cially sound. To this end, the agen­
cies plan to collect information on
the consoldiated operations of the
foreign banks and will continue to
engage in dialogue with senior man­
agement of the banks and bank super­
visory authorities of other nations.
In recognition of the importance
of overseas lending activities of U.S.
banks, the Corporation and other
banking agencies havecontinued to
follow uniform procedures for eva­
luating and commenting on country
risk factors in the international loan
portfolios of U.S. banks. Country risk
in bank lending refers to the possi­
bility that economic, political or
social conditions in a country might
create a situation in which borrow­
ers in that country would be unable
to service or repay their debts to for­
eign lenders in a timely manner.
The uniform procedure requires
examiners to segregate country risk
factors from the evaluation of other
lending risks and to assess a bank's
ability to analyze and monitor coun­
try risk in its international lending.
The assessment emphasizes diversi­
fication of exposure to individual
countries as the primary method of
moderating country risk in interna­
tional portfolios. Examiners classify
a bank's aggregate credits to a coun­
try on the basis of country risk only
when there has been an interruption
in debt servicing or one is consi­
dered imminent. The commercial
credit risks in the bank's interna­
tional portfolios continue to be as­
sessed on an individual loan basis in
accordance with traditional stand­



25

ards of credit analysis.
To help monitor the growth and
composition of the international
loan portfolios of U.S. banks, the
Corporation receives the results of
the semi-annual Country Exposure
Report. The report is mandatory for
any domestic bank with a foreign
branch, a foreign subsidiary, or an
Edge Act or Agreement corporation
(branches of national banks estab­
lished with Federal Reserve appro­
val in foreign countries to finance
and stimulate foreign trade) with
aggregate foreign claims in excess
of $20 million. It is intended to cap­
ture data on foreign credit activity of
U.S. banks in all countries, by type of
borrower and maturity of claims.
Banks are also required to report
firm commitments to extend addi­
tional credit in any country.
The Corporation, through the
FFIEC, in 1979 issued a proposed
Statement of Policy Concerning Min­
imum Standard for Documentation,
Accounting and Auditing of Foreign
Exchange and Money Market Opera­
tions of Commercial Banks. The in­
tent of the policy statement is to
reinforce existing accounting proce­
dures and auditing practices widely
utilized by commercial banks in mon­
itoring and controlling foreign ex­
change and money market activities.
The policy statement emphasizes
the need for timely and accurate
internal reporting so that bank
boards of directors, senior manage­
ment and government supervisors
can manage and supervise this in­
creasingly important aspect of inter­
national banking activity.
Because of the Corporation's in­
creased involvement in interna­
tional banking, an effort has been
made to enhance the staff's exper­
tise in this area. A number of exa­
miners have attended specialized
courses and seminars in interna­
tional banking. In cooperation with
the other two Federal banking agen­

FEDERAL DEPOSIT INSURANCE CORPORATION

26

cies, the Corporation participated in
1 979 in a two-week basic course in
international banking. Additional in­
ternational banking courses are ex­
pected to be conducted in 1980
under the auspices of the FFIEC. The
Corporation also filled a staff posi­
tion in its Washington Office having
specific responsibility for focusing
on international activities of domes­
tic banks and domestic operations
of foreign banks.

collected quarterly, while the Report
of Income, which was previously col­
lected at the end of the year, now is
collected on a semi-annual basis.
These revisions to the reports, which
had not been changed for a number
of years, were designed in part to
provide additional information to
achieve an effective integrated mon­
itoring system for mutual savings
banks. Work on the system has pro­
gressed and it is expected to be
operational early in 1980.

REPORTS AND SURVEYS
During 1979, the FDIC staff was
involved in the development of bank
reports, largely required by statute,
and as participants in the activities
of the FFIEC. Among these were
reports for U.S. branches and agen­
cies of foreign financial institutions
initiated pursuant to the Interna­
tional Banking Act of 1978. As re­
quired by FIRIRCA, reports were also
developed for the disclosure of loans
extended to certain bank employees
and stockholders by the employing
bank or its correspondent banks.
The staff provided analytical sup­
port to promote interagency uniform­
ity in bank report instructional mate­
rials, in the publication of statistics,
and in the further development of
automated bank surveillance sys­
tems and reports related to such
systems.
Surveys were initiated for moni­
toring money market certificates
and automatic transfers from sav­
ings accounts. FDIC staff also partic­
ipated in the establishment of a new
weekly survey of selected nonmem­
ber banks for data to be used by the
Federal Reserve in estimating the
non member bank component of the
nation's money supply.
A new Report of Condition and a
new Report of Income were introduced
in 1979formutualsavingsbanks.The
Report of Condition continues to be



BANK SECURITY
Part 326 of the FDIC's Rules and
Regulations implements the Bank
Protection Act of 1968. It prescribes
minimum standards for the installa­
tion, maintenance, and operation of
security devices; procedures to dis­
courage external bank crimes; and
guidelines and procedures to assist
in the apprehension of persons com­
mitting those crimes. Similar regula­
tions were adopted by the other
Federal bank regulatory agencies.
Part 326 requires banks to file
Reports on Security Devices and
Reports of Crime with the appro­
priate FDIC Regional Offices. The
Corporation received 1,451 Re­
ports of Crime in 1979, up from
1,186 in 1978. During 1979, FDIC
and the other Federal bank regula­
tors began discussions on a joint
proposal to amend the implement­
ing regulations of the Bank Protec­
tion Act. Substantive changes being
considered include reducing or
simplifying reporting requirements
for banks.
The upsurge of white collar crime
experienced by the banking industry
in recent years began to erode the
availability of fidelity insurance for
many banks. To combat this trend,
the FDIC participated in the devel­
opment of the Controlled Group
Bonding Plan sponsored by the

SECURITIES ACTIVITIES

American Bankers Association. The
plan, which gained acceptance in
many States in 1 978, is designed to
provide banks with adequate fidelity
and surety coverage while also pro­
viding the insurer a reasonable re­
turn on his risk investment. Banks
participating in the plan must agree
to engage an approved examining
firm to conduct an in-depth exami­
nation of their internal controls. Con­
versely, participating insurers agree
to give special consideration to un­
derwriting fidelity coverage for par­
ticipating banks. The objective of the
plan is to reduce the risk of bank
losses arising from the dishonest
acts of bank directors, officers and
employees.

SECURITIES ACTIVITIES
Registration and Reporting. The
Corporation administers and enfor­
ces the registration and reporting
provisions of the Securities Ex­
change Act of 1934 for insured
nonmember banks. These provisions
are applicable to banks with more
than$1 million in assets and 500 or
more holders of any class of equity
security. Such banks are required to
file an initial registration statement
and periodic reports, as well as a
special report covering any material
event which occurred in the preced­
ing month.
To comply with the Corporation's
regulation, any matter presented for
a vote of security holders must be
effectuated through a proxy state­
ment, orthrough an information state­
ment if proxies are not solicited.
Where directors are to be elected,
the proxy or information statement
must be accompanied or preceded
by an annual report disclosing the
financial condition of the bank. Offi­
cers and directors of a bank whose
securities are registered and any
person or related group of persons



27

holding more than five percent of
such securities must report their
holdings and any changes in their
holdings to the Corporation. All re­
quired statements and reports filed
with the Corporation under the Secu­
rities Exchange Act are public doc­
uments and are available for inspec­
tion at the Corporation's head­
quarters and elsewhere.
At the end of 1979, there were
396 banks registered with the FDIC,
compared to 377 in 1978.
Municipal Securities Dealer Activ­
ities. As of December 31, 1 979, 54
State nonmember banks or their de­
partments were registered as munic­
ipal securities dealers. All municipal
securities dealers are subject to rules
promulgated by the Municipal Secu­
rities Rulemaking Board (MSRB).
During 1979 the FDIC's reporting
schedules were revised to comply
with newly adopted and amended
MSRB Rules and comprehensive
examination guidelines were devel­
oped.
Lost and Stolen Securities Pro­
gram. The Corporation shares en­
forcement responsibility with the Secu­
rities and Exchange Commission for
Rule 1 7f-1 which established a na­
tional computer-assisted reporting
and inquiry system for lost, stolen,
counterfeit and forged securities.
After a pilot period of about a year
and a half, the program and Rule
1 7f-1 became permanent on July 1,
1979. All insured banks and bro­
kers, dealers and other securities
firms are subject to the rule and are
required to register with the Secu­
rities Information Center, Inc., (SIC),
Wellesley, Massachusetts. The lost
and stolen securities program cre­
ates a central data base at the SIC of
reported thefts and losses. Banks
are required to validate certain secu­
rities coming into their possession
by checking with the SIC; all mis­
sing, lost, stolen or counterfeit secu­
rities must be reported to the SIC.

28

FEDERAL DEPOSIT INSURANCE CORPORATION

The objective of the program is to
identify and thereby reduce traffic in
such securities. Examination proce­
dures were revised in 1979 to ac­
commodate these added responsi­
bilities and to assure compliance by
banks supervised by the FDIC.
Offering Circular Policy State­
ment. The issuance of securities by
banks is subject to the antifraud
provisions of Federal securities
laws, which require full and ade­
quate disclosure of material facts.
On July 2. 1979, the Corporation
issued a statement of policy out­
lining the minimum standards for
the disclosure of material facts in
connection with the offer and sale of
banksecurities by insured State non­
member banks. The statement of
policy is designed to acquaint banks
with their legal exposure when offer­
ing securities for sale and to pro­
mote greater awareness of their re­
sponsibilities under the antifraud
provisions of Federal securities law.
In general, a filing requirementfor
offering circulars is not imposed by
the Statement of Policy. However,
submission of circulars for review by
the FDIC staff is encouraged. The
Corporation continues to require the
use of offering circulars by banks
that are subject to orders under
Section 8 of the Federal Deposit
Insurance Act. The Corporation also
will review whether public investors
have been provided sufficient dis­
closure of material facts by any State
nonmember bank which is in organi­
zation. The staff of the Corporation
is available for consultation and as­
sistance.

LEGAL ACTIVITIES
The Legal Division has wide rang­
ing responsibilities within the Cor­
poration, including regulations, en­
forcement actions and liquidation
litigation.



The Legal Division initiated a
major effort in the fall of 1979 to
reduce costs of closed-bank law­
suits, including the fees of outside
attorneys. The FDIC is at present
involved in more than 5,000 law­
suits connected with liquidation and
other closed-bank matters.
A computer program is being de­
veloped to help FDIC staff attorneys
better supervise and evaluate the
performance of outside attorneys.
The program, scheduled for intro­
duction in the spring of 1980, is
intended to allow FDIC staff attor­
neys to increase their participation
in liquidation matters and perform
certain work for which FDIC has
been paying private firms.
In addition, the General Counsel
has established further guidelines
for selection of outside counsel.
These guidelines, aimed at achiev­
ing broader representation, include:
(a) the same law firm usually will not
be hired as lead local counsel on
more than one liquidation simultane­
ously pending; and (b) when feasi­
ble, at least two firms will be used in
each liquidation.
Fees paid by the FDIC to outside
counsel are dependent on the num­
ber of bank failures, the size of those
banks, and the nature and complex­
ity of the litigation they generate.
New steps for cost-effective repre­
sentation do not mean a sacrifice in
quality. The Corporation continues
to be committed to hiring top flight
lawyers to handle liquidation mat­
ters. It takes good lawyers to get
good results, and that is to the ben­
efit of the Corporation, depositors,
creditors and shareholders of the
banks whose assets are being liqui­
dated.
Besides these improvements in
procedures, the Legal Division has
advantageously diminished its case­
load. The major part of the Franklin
National Bank securities litigation,
which is a significant portion of the

RESEARCH ACTIVITIES

largest and most complex liquida­
tion in the FDIC's history, was settled
in December 1979.
In addition to monitoring the work
of outside attorneys, the Legal Div­
ision was faced with a demanding inhouse workload in 1979. Staff at­
torneys drafted 13 final rules to
implement FIRIRCA.
The Legal Division is continuing
an exhaustive review of existing regula­
tions in support of an effort to
reduce the regulatory burden and
paperwork. The Chairman has desig­
nated a full time task force for this
effort. In 1979 the Corporation elim­
inated six regulations, issued a pol­
icy statement in lieu of one pro­
posed regulation and substantially
reduced two other regulations. This
is an effort that will continue in
1980.
Evaluating comment on proposed
regulations by the industry and the
public is a major task. In 1979 the
Corporation received more than
1,500 such letters.
Staff attorneys also drafted the
final regulation to implement the
International Banking Act. The under­
taking required innovation and imag­
ination because the law gives the
FDIC an assignment in a new area.
Finally, the Legal Division served
as the FDIC's formal enforcement
arm in handling the various cease
and desist, removal and insurance
termination cases described under
"Enforcement Proceedings."
RESEARCH ACTIVITIES
The FDIC experienced continuing
strong demand in 1979 for support
and assistance by its research organ­
ization.
The Division of Research continu­
ously monitors developments in the
financial industry and the economy
and assesses the implications of
existing and proposed regulations,



29

proposed legislation and virtually all
policy issues that will require con­
sideration by the FDIC Board.
Some of the economic and finan­
cial subjects studied this year were
deposit insurance reform, new or
m o dified types of d e p o sit a c­
counts, the condition of commercial
and mutual savings banks, oper­
ations of foreign banks in the U.S.,
rising inflation and interest rates,
State usury ceilings, prospects for
the h ou sin g in d u s try , Federal
Reserve membership, and the im­
pact of payment of interest on tran­
saction accounts (NOW accounts,
automatic transfer accounts, tele­
phone transfer services, etc.).
In addition to conducting eco­
nomic and financial studies of di­
rect policy interest to the Board of
Directors, the Division of Research
assisted in activities of other parts of
the Corporation, such as: an evalua­
tion of bank capital adequacy; the
current environment and prospec­
tive developments in electronicfund
transfer systems; the effectiveness
of cease-and-desist orders in cor­
recting unsafe and unsound bank­
ing practices; an assessment of cur­
rent and prospective activity by com­
mercial banks in financial futures
markets; and studies of fin a n ­
cial considerations in the disposi­
tion of acquired assets and liquida­
tion accounting procedures. Re­
search personnel also assisted the
Legal Division as consultants or ex­
pert witnesses in legal suits in­
volving the Corporation.
Major interagency activities in­
volved analyses for three task forces
created by Congress or the Presi­
dent. These task force studies ad­
dressed deposit interest rate ceil­
ings and housing finance (Regula­
tion Q), branching by financial
institutions (McFadden Act) and the
treatment of U.S. banks by other
nations (National Treatment). The
staff also participated in a Depart­

30

FEDERAL DEPOSIT INSURANCE CORPORATION

ment of Commerce task force on the
role of government in the electronic
fund transfer field.
A major study that required a co­
ordinated effort on the part of a
number of Corporation divisions
and offices was an analysis of capi­
tal adequacy in the banking indus­
try. An internal task force was
formed in June 1978 to study the
issue of capital adequacy. The task
force addressed two broad ques­
tions:
(1) Is there a capital problem in
the industry, and, if so, how se­
vere is it?
(2) What are the alternative solu­
tions for dealing with the bank
capital situation?
These questions obviously en­
compass many of the policy consid­
erations that bank supervisors deal
with every day. Phase I of the study,
w h ich was com plete d in Sep­
tember 1979, concluded that, des­
pite the extended declining trend in
capital ratios for the industry, the
smaller capital margins have not
imperiled the safety and soundness
of banks. The report set forth the
need for constant review of regula­
tory policies in light of the impact of
changing risks on the capital posi­
tion of banks. This assessment of the
bank capital situation included,
along with the important safety and
soundness aspects, the im plica­
tions for the structural and competi­
tive prospects for banks in an in­
creasingly complex financial envi­
ronment.
Phase II of the study is focusing on
alternative solutionsto the bankcapital s itu a tio n . It is speci f i cal l y
addressing capital standards, the
role of subordinated debentures, and
holding company capitalization of
subsidiary banks.
COMPUTER MANAGEMENT
SYSTEMS
Computer services generally con­




tinued to play an expanding role in
FDIC operations in 1979 under the
supervision of the Division of Man­
agement systems and Financial Sta­
tistics (DMSFS). National banks
were added to the FDIC's system of
processing Reports of Condition
and Income of 9,200 State nonmem­
ber banks, involving an additional
4,600 reports, including the more
complex reports of larger banks.
National bank reports were trans­
ferred from the OCC to the FDIC to
achieve the savings, efficiency and
consistency of a single system. The
FDIC absorbed the cost. Hereafter,
the FDIC will handle all requests for
national as well as State nonmem­
ber bank data. The Federal Reserve
collects corresponding data for
State member banks and provides
this information for incorporation
into the FDIC data base.
The FDIC's Integrated Monitoring
System (IMS) performs certain basic
tests from data submitted by banks
in their Reports of Condition and
Income. These tests measure a
bank's capital adequacy, asset qual­
ity, liquidity, asset and liability mix
and growth, and profitability. If a
bank fails one or more of the tests,
further analysis of additional data
available from the system is per­
formed. Where analysis indicates an
adverse condition or a potential
problem, appropriate supervisory
action is initiated. The IMS enables
the Corporation to identify with
greater accuracy banks, or particu­
lar aspects of a bank's operation,
that merit closer supervisory atten­
tion, thereby allowing swifter and
more effective response.
In 1979 the Comparative Perfor­
mance Report (CPR) served to sup­
plement the IMS reports distributed
to FDIC examiners and financial ana­
lysts. This report was a revision of
the C o m pa ra tive P erform ance
Tablesthe FDIC regularly has sentto
all insured banks since 1967, and
shows both individual bank data and

SPECIAL SERVICES

peer group data based on informa­
tion from Reports of Income and
Condition. A similar report for yearend 1979 is to be sent to insured
non member banks and to examiners
and financial analysts for their use
with IMS information.
The Corporation expects to achieve
further savings and efficiency by
sharing its processed bank data
base with Federal and State authori­
ties through a teleprocessing sys­
tem. Seven States and the OCC are
already connected, and the Federal
Reserve Board is expected to have
its link by March 1980. The New
York Banking Department is propos­
ing to dispense with its separate
Report of Condition and Income in
favorof theone its banks file with the
FDIC. Michigan authorities are seek­
ing approval of a simplified exami­
nation report made possible by the
tie-in to the FDIC computerized data
base.
The system aids supervision by
giving FDIC Regional Offices imme­
diate access to the bank data base
and to the bank monitoring system.
This permits improved scheduling of
bank examinations and more effec­
tive bank examinations because ex­
aminers can focus their attention on
particular areas of concern. The sys­
tem adapts quickly to special moni­
toring requirements and provides a
range of financial analysis facilities
that assist in special studies and
further improvement of the bank
monitoring system.
DMSFS will seek ways to improve
internal Corporation management
systems in 1980. The division will
provide computer support next year
for refinement of the new liquidation
accounting system, implementation
of the new system for tracking out­
side legal fees involved in closed
banks, and development of a new
recruiting system for examiners. A
new payroll accounting system is
also in the planning stage for 1980.



31

Accounting Standards and Instruc­
tions. The quality of financial report­
ing by the banking industry is of
utmost concern to the Corporation,
since it is integral to decisions made
in furtherance of the FDIC's various
statutory responsibilities. The Cor­
poration recognizes that financial
statements of banks should reflect
business and economic reality. Ac­
cordingly, representatives from the
Corporation cooperate with other
Federal agencies and professional
organizations in continuous efforts
to evaluate financial reporting re­
quirements and to improve the qual­
ity of data provided to the public and
the Corporation by insured State
nonmember banks.
SPECIAL SERVICES
The Office of Legislative Affairs
(OLA) includes the Office of Informa­
tion, which is the Corporation's main
point of contact with the public and
the news media. In 1979 the Office
of Information responded to an aver­
age 100 telephone calls and 150
written requests each day. The Of­
fice is responsible for the prepara­
tion and distribution of letters to
banks and FDIC staff describing pro­
posed or adopted regulations or pol­
icies, the Corporation's annual re­
port, news releases and other litera­
ture describing FDIC operations and
procedures.
The information Office also works
jointly with the Office of the Execu­
tive Secretary in administering the
Corporation's reporting service on
the FDI Act and regulations and
related statutes.
The Office of Legislative Affairs is
also responsible for receiving and
obtaining responses to Congression­
al correspondence and telephone
inquiries and for coordinating other
communications with Congress. In
addition, the Legislative Counsel in
OLA responded to 33 requests in

32

FEDERAL DEPOSIT INSURANCE CORPORATION

1979 from Congress and 19 from
the Office of Management and Bud­
get for detailed and in some cases
extensive comments on proposed
legislation and to numerous other
requests for information.
The FDIC Office of Corporate Aud­
its performed 53 audits of various
aspects of Corporation activities in
1979, one more than in 1978. Aud­
its are designed to determ ine
whether financial, fiscal and ac­
counting operations are properly
conducted and fairly presented,
whether laws and regulations are
complied with, and whether resour­
ces are managed efficiently and de­
sired objectives met.
The Office of the Executive Secre­
tary performs corporate secretarial
functions, such as issuing notices of
all meetings of the Board of Direc­
tors and the FDIC's standing com­
mittees, recording all votes and
minutes of these meetings, main­
taining an index of all official actions
of the Corporation, publishing in the
Federal Register notices of pro­
posed or final rulemaking, and re­
ceiving the thousands of public com­
ments on proposed regulatory ac­
tions.
In 1979 the Executive Secretary's
staff performed secretarial func­
tions for 116 Board meetings. The
Office also provided the necessary
staff coordination for 17 proposed
regulatory actions on which public
comment was received.
The Office of the Executive Secre­
tary administers Corporation com­
pliance with the Freedom of Infor­
mation Act, the Government in the
Sunshine Act and the Privacy Act of
1974. It also performs editorial func­
tions in connection with the FDIC's
loose-leaf reporting service on laws,
regulations and related materials.
In addition, the Executive Secre­
tary serves as the Corporation's Eth­
ics Counselor under the Ethics in
Government Act of 1978 and FDIC's



own regulations. This official also
serves as the Corporation's Records
Management Officer.
The Office of the Controller is
responsible for the preparation of
both the administrative and the liq­
uidation budgetsandforall account­
ing functions. The Controller's office
also performs a number of impor­
tant additional functions, including
headquarters building services, print­
ing and mailing, telecommunications,
purchasing, library services and
administration of assessments. A
major function of the Controller's
Office is management of the FDIC
insurance fund which totaled $9.8
billion at the end of 1979, up $1
billion from 1978. All FDIC uncom­
mitted cash is invested in U.S. govern­
ment securities.
PERSONNEL
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 direc­
tors are appointed by the President
with the advice and consent of the
Senate for six-year terms, and one is
elected Chairman by the Board. The
Comptroller is also appointed by the
President, but for a five-year term.
Mr. Irvine H. Sprague succeeded
Mr. George A. LeMaistre as Chair­
man of the Board of Directors on
February 7, 1979. Mr. John G. Heimann, Comptroller of the Currency,
had served as the Acting Chairman
since Mr. LeMaistre's retirement on
August 1 5, 1978. Chairman Sprague
previously served as a member of
the Corporation's Board of Directors
from September 27,1 968, until Feb­
ruary 15, 1973.
Director William M. Isaac contin­
ued to serve his term as a member of
the Board of Directors. Comptroller
Heimann continued to serve as an ex
officio member of the Board of

33

PERSONNEL

Directors.
Employees. The employment of
the Corporation decreased by 179
in 1979, to a year end total of 3,598.
Turnover in FDIC employment for
the year was 13.4 percent (includ­
ing 9.4 percentfor bankexaminers),
compared to an estimated government-wide turnover rate of nearly
25 percent.
Average grade and salary of the
FDIC workforce in 1979 were GG9.4 and $ 19,958.
The Corporation's Office of Per­

sonnel Management oversees em­
ployee benefits, recruiting and hir­
ing, and position management and
classification. The Office of Employ­
ee Relations administers the Corpo­
ration's equal employment opportu­
nity and labor relations programs.
The Corporation continued to im­
prove its record in hiring women and
minorities this year. In the GeneralGraded Workforce, women employ­
ees increased to 30.5 percent in
1979. up slightly from 30.1 percent
in 1978. M inorities represented

NUM BER OF OFFICIALS A N D EMPLOYEES
OF FEDERAL DEPOSIT INSUR ANCE CO RPO RATION
DECEMBER 31, 19 7 8 A N D 19 79

U nit

Total
1979
1978

W a sh in g to n
o ffic e
1979
1978

Regional and
fie ld o ffice
1979
1978

Total .........................................

3,598

3,773

956

1,201

2,642

2,572

D ir e c to r s ...............................
‘ Executive O f f ic e s ................
Legal D iv is io n ......................
D ivision of Bank

2
15
100

2
32
105

2
15
83

2
32
86

0
0
17

0
0
19

S u p e r v i s i o n .......................

2,521
432

2 ,6 4 8
459

159
186

376
194

2 ,3 6 2
246

2 ,2 7 2
265

187
25
181

191
31
186

187
25
164

191
31
17 0

0
0
17

0
0
16

33

34

33

34

0

0

19

13

19

13

0

0

8

9

8

9

0

0

44

46

44

46

0

0

16

5

16

5

0

0

15

12

15

12

0

0

D ivision of L iq u id a tio n ___
D ivision of M an a g e m en t
System s and F inancial
S ta tis tic s .............................
Research D iv is io n ...............
O ffice of the C o n tro lle r......
O ffice of C o rpo ra te
A u d it s ...... ...........................
O ffice of C onsum er A ffa irs
and Civil R ig h ts .................
O ffice of Em ployee
R e la tio n s.............................
O ffice of Personnel
M a n a g e m e n t......................
O ffice of Legislative
A ffa ir s ..................................
‘ ‘ O ffice of Executive
S e c re ta ry ............................

‘ O ffice of Executive S ecretary in clu d e d in Executive O ffices in 1 9 7 8 .
“ O ffice of In fo rm a tio n in clu d e d in O ffice of Legislative A ffa irs in 1 9 7 9 .




34

FEDERAL DEPOSIT INSURANCE CORPORATION

14.8 percent of the General-Graded
Workforce, compared to 14.3 per­
cent the previous year. Women in
bank examiner jobs (including stu­
dent assistants) assigned to the 14
regions increased from 13.4 per­
cent to 13.8 percent and minorities
in such positions increased from 8.2
percent to 8.5 percent.
A Chairman's Task Force is seek­
ing ways to improve opportunities
for women and minorities and con­
sidering other reforms such as part
time employment opportunities.
Personnel Adm inistration. The
FDIC in 1979 adopted several impor­
tant new personnel policies and pro­
grams. These included policies gov­
erning leave usage, probationary
periods for supervisors and manag­
ers, and inhouse and outside train­
ing. Position management and classi­
fication projects included: implemen­
tation of a new pay system for all field
liquidation support personnel, com­
pletion of a two-year study of the
management structures of the 14
Regional Offices, a study of the levels
of duties and responsibilities of field
office supervisor positions, and insti­
tution of an annual review of all Cor­
poration position descriptions for ac­
curacy and completeness.
This was the first full year of opera­
tion under a new merit promotion
pr ogr am and a new in ce n tive
awards program, both of which were
adopted in 1978. The Corporation
in 1979 processed 318 selections
under the new internal placement
program and granted 40 monetary
incentive awards. At the Corpora­
tion's Awards Ceremony on Decem­
ber 19, 1979, 104 employees were
recognized for 15, 25, 35 and 40 or
more years of service. Also, three
employees received special honor­
ary awards:
Chairman's Award Betty L. Freese
Exceptional service by
a non-examiner employee



Edward J. Roddy Lewis C. Beasley
Award
Exceptional service by
an examiner
Nancy K. Rector
Terryl L. Paiste
Award
Exceptional service of
a humanitarian nature
Examiner Training. The Corpora­
tion conducts a comprehensive train­
ing program designed to maintain a
highly-qualified, well-informed ex­
aminer staff. During 1 979 more
than 2,200 students received train­
ing in such areas as bank examina­
tion fundamentals, accounting and
auditing techniques, credit apprai­
sal, management and supervision,
financial analysis, consumer and
civil rights compliance, examination
of computerized banks and trust de­
partment examinations. Programs
are conducted in the Division of
Bank Supervision's modern training
center located in Rosslyn, Virginia.
In addition to FDIC examiners,
about 270 studentsfrom State Bank­
ing Departments, foreign govern­
ments and other Federal agencies
participated in FDIC-sponsored train­
ing progams during the year.
Six programs involving 208 stu­
dents were held in 1979 under the
aegis of the Federal Financial Insti­
tution Examination Council. It is antic­
ipated that such training will be
expanded into areas as consumer
protection, white collar crime and
international banking during 1980.

FINANCES OF THE
CORPORATION
Deposit Insurance. Federal de­
posit insurance covers the aggre­
gate deposits of individuals and busi­
nesses in each insured bank up to
$40,000 and Individual Retirement
Accounts and Keogh accounts up to
$ 100,000. Time and savings depos­

FINANCES OF THE CORPORATION

its held by government units (except
deposits in out-of-State banks) are
insured up to $100,000 for each
depositor. On December 31, 1979,
more than 97 percent of all com­
mercial banks in the United States
and about 70 percent of all mutual
savings banks were covered by Fed­
eral deposit insurance.
Deposit Insurance Fund. The Cor­
poration's deposit insurance fund
provides the basic resource for the
protection of depositors. It is the
excess of the Corporation's assets
over its liabilities and represents the
net income accumulated since the
beginning of deposit insurance in
1933. Should additional funds ever
become needed, the Corporation,
under authority granted but never
exercised, may borrow up to $3 bil­
lion from the U.S. Treasury.
The d e p o s it i nsur ance f und
amounted to $9.8 billion at the end
of 1979, an increase of more than
$1 billion since the end of 1978.
This increase was $194 m illion
greater than the increase for 1978
and twice the increase in 1974. Net
assessments incurred by insured
banks in 1979 were $356 million, or
3 percent less than they incurred in
1978. The year-to-year improve­
ment in revenue reflects the Corpo­
ration's ability to take advantage of
the particularlyfavorablechanges in
the interest rates earned on its expand­
ing portfolio of government securi­
ties, and a more favorable than antic­
ipated recovery experience on as­
sets acquired from failed banks.
During the past several years, the
deposit insurance fund has re­
mained at about 1.2 percent of total
insured deposits. While there is no
actuarial consensus as to what the
appropriate amount of the fund should
be, the basic strength of the fund has
been demonstrated by thefactthat it
has been more than sufficient to
meet all requirements made upon it,
even during the larger-than-usual



35

bank failures of 1973-78. During
this period the assets of those bank
failures amounted to $7.7 billion;
whereas, by the end of 1979 the
Corporation had reduced the book
value figure for all banks in liquida­
tion to about $1.9 billion. In addi­
tion, during recentyears, the Corpo­
ration has set aside $227 million to
cover possible insurance losses on
liquidations currently in process,
and increased its administrative bud­
get to meet rising costs and broad­
ened responsibilities. The deposit
insurance fund increased 60 per­
cent, from $6.1 billion at the end of
1974 to $9.8 billion at the end of
1979, the largest percentage in­
crease for anyfive-year period since
World War II.
Income and Expenses. The Corpo­
ration's gross revenues amounted to
$1.6 billion in 1979. Of the total
revenue, $882 million was from as­
sessments payable by insured banks
for deposit insurance, $704 million
from interest on investments in U.S.
Government securities, and $30 mil­
lion from notes receivable and other
sources.
Since 1935, the basic assessment
rate paid by insured banks has been
1/1 2 of one percent of total asses­
sable deposits. Legislation enacted
in 1950 in effect reduced the statu­
tory rate of assessment by providing
a 60 percent credit to be applied
against gross assessments levied
each year. This credit to insured
banks was increased to 66 2 /3 per­
cent on December 31, 1961. This
percentage is applied to the gross
assessment due from banks in the
calendar year after subtracting the
Corporation's administrative and
operating expenses, nonrecoverable
insurance expenses, and additions
to reserves for losses in the calendar
year. Thus, although banks were ini­
tially assessed $882 million 1979,
they received assessment credits of
$526 million, which resulted in net

FEDERAL DEPOSIT INSURANCE CORPORATION

36

APPLICATION OF REVENUES
FEDERAL DEPOSIT INSURANCE CORPORATION
1969 — 1979

Mi l l i ons of doll ars
1,600—r

1.400m

Expenses and Provision f o r Losses

1,200
I

I Assessment Credits
]

A d di t i on s to I nsur ance Fund

1,000

TOTAL REVENUES
800

600-

400-

200 -

1969 '70

'71

'72

' 73

assessments of only $356 million.
This sum is equivalent to 1 /3 0 of
one percent of assessable deposits
and compares with 1 / 2 6 of one
percent in 1978.
The Corporation's administrative
and operating expenses were $ 107
million in 1979, an increase of less
than four percent from 1978 des­
pite rising costs and the Corpora­
tion's expanding responsibilities
with respect to bank supervision and
consumer affairs. For the first time



'74

' 75

'76

' 77

'78

' 79

since 1972, the provision for insu­
rance losses and the nonrecoverable insurance expenses were re­
duced during 1979. The reduction
of $55 million reflected the rela­
tively small size of each of the banks
that failed during theyearand better
than expected collections on liqui­
dations involving earlier bank fail­
ures.
GAO Audit. In addition to the
FDIC's continuing internal audit activ­
ity, the General Accounting Office

FINANCES OF THE CORPORATION

continued to conduct an annual
audit of the financial operations of
the Corporation. In addition, under
the Federal Banking Agency Audit
Act (Public Law 95-320), enacted in
1978, the General Accounting Of­
fice also continued to conduct peri­
odic performance audits of the Cor­
poration. These performance audits
primarily concentrated on: bank su­
pervision, with particular emphasis
on the examination process and the
supervision of bank holding com­
panies; foreign banking activity in
the U.S.; identification and disclo­
sure of problems in the banking sys­
tem; consumer related compliance
examinations; and regulatory bur­
den and structure. The results of
both types of audit are reported to
Congress.
Assets and Liabilities. The Corporation'sfinancial position continued




37

to improve steadily during 1979,
resulting in a $ 1.0 billion increase to
the deposit insurance fund. Total
assets on December 31, 1979
amounted to $10.4 billion. Cash
and U.S. Government securities, val­
ued at amortized cost plus accrued
interest, amounted to $9.6 billion.
The remaining assets represented
primarily equity in assets acquired
from failed banks, after allowance
for reserves for losses. These assets
include loans and notes purchased
to facilitate deposit assumptions
and mergers, subrogated claims
against closed banks, and assist­
ance to operating banks.
At the end of 1979, liabilities of
the Corporation were $567 million.
Of this total, $539 million repres­
ented assessment credits due in­
sured banks which will be made
available to them in 1980.

FEDERAL DEPOSIT INSURANCE CORPORATION

38

COMPARATIVE STATEMENT
OF FINANCIAL CONDITION (in thousands)

ASSETS:

December 31,
19 7 9

Cash

$

1.523

December 31,
1 9 78

$

4,343

U.S. Government obligations: (Note 1)
Securities at amortized cost
Accrued interest
Total

9,449,595
186,511
9,636,106

8,210,441
162,720
8,373,161

31,676
802
746,583
18,391
133,627
257,384
673,695

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

22,143
37,000
20,000
39,143

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

Miscellaneous assets (Note 5)

2,765

2,759

Land and office building, less depreciation
on building

6,148

6,283

$10,359,380

$9,282,683

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 (Note 3)
Less allowance for losses (Note 2)
Total
Equity in assets acquired from insured banks
assisted under Section 13(c) of the FDI Act:
Assets purchased outright
Notes purchased plus accrued interest (Note 4)
Less allowance for losses (Note 2)
Total

Total Assets

The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.




39

FINANCES OF THE CORPORATION

FEDERAL DEPOSIT INSURANCE CORPORATION

LIABILITIES AND THE
DEPOSIT INSURANCE FUND:
December 31,
19 79

Accounts payable and accrued liabilities

$

5,309

December 31,
1 9 78

$

4,963

Earnest money, escrow funds, and
collections held for others

1,920

4,893

Accrued annual leave of employees

5,393

4,716

Due insured banks:
Net assessment income credits:
Available July 1, 1979
Available July 1, 1980 (Note 6)

0
524,672

443,101
0

Available excess credits (Note 7)

13,981

11,990

538,653

455,091

14,571
802

16,166
861

15,373

17,027

Total Liabilities

566,648

486,690

Deposit Insurance Fund

9,792,732

8,795,993

$10,359,380

$9,282,683

Total

Liabilities incurred in failures of insured banks:
Notes payable plus accrued interest (Note 8)
Depositors' claims unpaid
Total

Total Liabilities and the Deposit Insurance Fund

The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.




FEDERAL DEPOSIT INSURANCE CORPORATION

40

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

For the twelve m onths ended

December 31,
1 9 79

December 31,
19 7 8

Revenues:
Assessments earned
Interest on U.S. Government obligations
Amortization of premiums and discounts (net)

$

881,970
699,900

$

810,532
567,042

4,433

(1,264)

Interest earned on notes receivable

12,370

11,974

Other income

17,280

7,313

1,615,953

1,395,597

Total
Assessment Credits, Expenses, and Losses:
Provision for assessment credits

525,538

143,534

Administrative and operating expenses (net) (Note 10)

106,791

103,289

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

4,137

5,409

(17,252)
0

36,532
3,628

619,214

592,392

996,739

803,205

8,795,993

7,992,788

$9,792,732

$8,795,993

The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.




41

FINANCES OF THE CORPORATION

FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT OF CHANGES
IN FINANCIAL POSITION (in thousands)

For the twelve m onths ended

December 31,
1 9 79

December 31,
19 7 8

Financial Resources Were Provided From:
Operations:
Net deposit insurance assessments
Interest on U.S. Government obligations
Interest on notes receivable
Other income
Total

$ 356,432
699,900
12,370
17.280
1,085,982

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

106,656
4,137

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

110,793

103,154
5.409
108,563

Resources provided from operations

975,189

844,764

879,975

794,469

341,542
83,562
2,820
$2,283,088

799,248
26,355
4.320
$2,469,156

$2,246,816
(132,120)

$1,686,705
194,042

Maturity and sale of U.S. Government obligations,
less, $3,628 net loss in 1978
Collections received on assets acquired in receiver­
ship and deposit assumption transactions
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 Certificates
(Total purchases - $35,828,626 in 1979 and
$37,679,123 in 1978
Total maturities - $35,960,746 in 1979 and
$37,485,081 in 1978)
Acquisition of Assets acquired in receivership and
deposit assumption transactions
Increase in accrued interest on securities
Net change in other assets and liabilities
Total financial resources applied

141,078
23,791
3.523

554,280
24,763
9,366

$2,283,088

$2,469,156

The accompanying summary of significant policies and notes to financial statements are an integral part of
these statements.




42

FEDERAL DEPOSIT INSURANCE CORPORATION

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General. These statements do not include accountability for assets and liabilities of closed insured
banks for which the Corporation acts as receiver or liquidating agent. Periodic and final accountability
reports of its activities as receiver or liquidating agent are furnished by the Corporation to courts, superviso­
ry authorities, and others as required.
U.S. Government Obligations. Securities are shown at amortized cost which is the purchase price of
the securities less the amortized premium or plus the accreted discount. Such amortization and accretion
are computed on a daily straight-line basis from the date of acquisition 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. Assess­
ments 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, sixty-six and two-thirds percent of the Corpora­
tion's net assessment income from the prior calendar year be made available to insured banks as a prorated
credit against the current assessment due.
Allowance for Losses. It is the policy of the Corporation to establish an estimated allowance for loss at
the time a bank fails. These allowances are reviewed every six months and adjusted as required, based on
the financial developments which accrue during each six-month period. The Corporation does not state its
estimated contingent 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 bor­
rowing authority are available, however, for such contingencies.
Depreciation. The headquarters building 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.
Reclassifications. Certain reclassifications have been made in the 1978 financial statements to con­
form to the presentation used in 1979.

NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1979 and 1978
1. U.S. Government Obligations. All cash received by the Corporation which is not used to defray operat­
ing expenses or for outlays related to assistance to banks and liquidation activities, is invested in U.S. Treas­
ury securities. As of December 31,1979 the Corporation's investment portfolio consisted of the following:
(In thousands)

Maturity

Description

Par Value

Book Value

Market Value

Cost

1 -Day

Special Treasury
Certificates

Less Than
1 Year

U.S.T. Notes and
Bonds

1,081,002

1,079,672

1,058,910

1,074,447

2-5 Years

U.S.T. Notes and
Bonds

3,7 9 9 ,9 2 0

3,799,232

3 ,5 24,120

3 ,799,448

6 -1 0 Years

U.S.T. Notes and
Bonds

4 ,3 5 6 ,6 2 6

4 ,3 5 5 ,7 7 0

3,978,462

4 ,359,313

Over 10 Years

U.S.T. Notes and
Bonds




$

141,922

$

141,922

$

141,922

$

141,922

75,546

72,999

5 9,634

71,806

$9,455,016

$9,449,595

$8 ,763,048

$9 ,446,936

FINANCES OF THE CORPORATION

43

FEDERAL DEPOSIT INSURANCE CORPORATION

2. Allowance for Losses. An analysis of the changes in the allowance for losses on the accounts described
below for years ended December 31, 1979 and 1978 follows:
1979
1978
Depositors' claims paid:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at termination
Balance, end of period

$ 14,475,000
4,100,000
(1,775,000)
0
16.800,000

$ 16,032,000
300,000
(1,214,000)
(643.000)
14.475.000

Loans and assets purchased:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at termination
Balance, end of period

240,763,500

210,709,400

9,255,000
(27,683,000)
(11,500)
222.324,000

7,505,000
23,735,100
(1,186.000)
240,763.500

39,410,000

33,400,000

0
(1,150,000)
0
38,260,000

0
6,010,000
0
39.410.000

Assets purchased outright:
Balance, beginning of period
Add (Subtract):
Provision charged to expense
Net adjustment to prior years
W rite-off at termination
Balance, end of period

$277,384,000

$294,648,500

3. 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, 1979 and 1978 are:
1979
1978
$ 1,000,000
Clearing Bank
$ 1,000,000
1.500.000
Marine National Exchange Bank of Milwaukee
1,500,000
16,000,000
16,000,000
First Tennessee National Corporation
8,000,000
8,000,000
First Tennessee National Bank
8.750.000
Bank Leumi Trust Company of New York
10,000,000
6,666,667
5,833,333
New Orleans Bancshares, Inc.
European-American Bancorp.
85,000,000
85,000,000
4,000,000
4,000,000
Drovers Bank of Chicago
Town-Country National Bank
250,000
250.000
$130,333,333

$132,416,667

4. Notes Purchased to Assist 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, 1979 and 1978 are:
1979
1978
$ 1,500,000
Unity Bank and Trust Company
$ 1,500,000
35.500,000
Bank of the Commonwealth
35.500.000




$37,000,000

$37,000,000

44

FEDERAL DEPOSIT INSURANCE CORPORATION

5. Miscellaneous Assets. The Corporation's miscellaneous assets at December 3 1 ,1 9 7 9 and 1978 are:
1979
1978
Receivables
$1,719,000
$1,748,000
Prepaid Items
1,046,000
1,011,000
$2,765,000
$2,759,000
6. Assessment Credits Due Banks July 1,1 980 . The computation of net assessment income credits that
will become available to banks on July 1, ‘1980 is as follows.
Computation:
Gross Assessment Income C.Y. 1979
Less: Administrative and Operating Expenses
Provision for Losses
Insurance Expense
Net Assessment Income

$106,791,000
(17,252,000)
4,125,000

Distribution:
1/3 to F.D.I.C.
2/3 to Insured Banks

$262,246,000
524,493,000

Assessment Credit Available to Banks - July 1 1980:
Assessment Credit C.Y. 1979
Prior Years Credits
Assessment Credit Available July 1, 1980

$524,493,000
1 79,000
$524,672,000

Effective Rate of Assessment for C.Y. 1979:

$880,403,000

93,664,000
$786,739,000

$786,739,000

1/30 of 1% of Total Assessable Deposits

7. Available Excess Credits. As of December 3 1 ,1 9 7 9 and 1978, assessments receivable from insured
banks reflected credit balances representing excesses of assessment income credits made available to
insured banks on July 1, 1979 and 1978 over assessments due for the last six months of each calendar
year. These excess credits continued to be available to insured banks at the beginning of the next assess­
ment period in the following calendar years.
8. Notes Payable. These amounts represent the unpaid principal and accrued interest on the Corporation's
unsecured notes designated "5.775% Series A Notes due January 1, 1988” and "5.775% Series B Notes
due January 1, 1990'' as set forth in the consents, exchange agreement, and agreements of release and
satisfaction related to the sale of Franklin Buildings, Inc. to European-American Bank and Trust Company.
9. Southern Bancorporation Note Receivable. On December 9, 1976, Southern Bancorporation repaid in
full the $8 million note that the Corporation had purchased on September 24, 1974. Southern Bancorpora­
tion 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 conditions set forth in the guarantee agreement. As of
December 31, 1979 and 1978, FUNB's outstanding principal due on the loan totaled $5.8 million and $6.6
million, respectively.
10. Lease Commitments. Rental expense of $4,556,000 (1979) and $3,916,000 (1978) for office
premises has been charged to expense. Minimum rentals for each of the next 5 years and for subsequent
years thereafter are as follows:
1980

1981

1982

1983

1984

1985 or after

$4,249,000

$3,595,000

$3,359,000

$1,988,000

$1,492,000

$3,456,000

Most office premise lease agreements provide for increase in basic rentals resulting from increased proper­
ty taxes and maintenance expense.




FINANCES OF THE CORPORATION

COMPTROLLER GENERAL OF THE UNITED STATES
W A S H I N G T O N . D .C .

20548

The Honorable Irvine H. Sprague
Chairman, Board of Directors
Federal Deposit Insurance
Corporation
Dear Mr. Sprague:
Pursuant to section 17(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1827), we have examined the State­
ment of Financial Condition of the Federal Deposit Insurance
Corporation as of December 31, 1979, and the Related State­
ments of Income and the Deposit Fund, Changes in Financial
Position, and Analysis of the Deposit Insurance Fund.
Our
examination was made in accordance with the Comptroller
General's standards for financial and compliance audits.
We
included such tests of the accounting records and such audi t­
ing procedures as we considered necessary in the circum­
stances.
To the extent possible, we supplemented our audit
procedures by using work of the Corporation's internal
audi to rs.
In our opinion, the financial statements referred to
above present fairly the financial position of the Federal
Deposit Insurance Corporation at December 31, 1979, and the
results of its operations and changes in its financial po si­
tion for the year then ended, in conformity with both ge ne r­
ally accepted accounting principles and the accounting pr in­
ciples prescribed by the Comptroller General applied on a
basis consistent with that of the preceding year.




Sincerely yours

Acting '
of the United States










CEASE-AND-DESIST ACTIONS

cla ssified assets; o b ta in adequate
docum entation; cease extending credit
to any borrower noted as a concentra­
tion and elim inate such concentra­
tions; elim inate w ith o u t loss or liability
to the bank extensions of credit by
means of overdraft or cash item to
insiders and cease extending such
credit; adhere to specific guidelines
reg a rd ing e xte nsio n s o f c re d it to
insiders owning 10% of the bank's
sto ck; reduce loan vo lu m e ; a dopt
acceptable w ritte n loan and invest­
m e n t p o lic ie s ; p ro v id e a d e q u a te
liquidity; correct internal control defi­
ciencies and adopt a w ritte n internal
audit program; discontinue cash d ivi­
dends; increase capital; and provide an
acceptable asset condition and a cer­
tain level of capital.

Actions to Term inate Insured Status
Federal Deposit Insurance Act-S ection 8(a)
The Corporation has issued 42 term ination of
insurance orders since January 1971; nine were
issued in 1979. In each case, the bank was
found to be in unsafe or unsound condition.
A number of other term ination of insurance
actions have been recommended but w ith ­
drawn because of corrective action by the bank
involved. As in the case of cease-and-desist
actions, the threat of term ination of insurance
has caused many of the banks to take affirm a­
tive steps to correct deficiencies, thus e lim inat­
ing the need for final action.

Summary of cases

Order term inated on July 9, 1979,
after bank was closed.

Bank No.

34

35

36

Deposits— $50.5 m illion
Notice of intention to term inate
insured status issued on February 16,
1979. Bank ordered to provide accepta­
ble m anagem ent; reduce adversely
classified assets; establish an adequate
loan loss reserve; cease extending
credit to any borrower noted as a con­
centration and elim inate concentra­
tions; adopt w ritte n loan policies; take
appropriate action to elim inate deficit
net operating income; correct internal
control deficiencies and institute a
w ritte n a u d it pro g ra m ; d is c o n tin u e
cash dividends; increase capital; and
provide an acceptable asset condition
and a certain level of capital.
Deposits — $5.0 m illion
Notice of intention to term inate
insured status issued on May 7, 1979.
Bank ordered to provide acceptable
management, increase capital; reduce
adversely classified assets; establish
an adequate reserve for loan losses;
c o rre c t d o c u m e n ta tio n d e ficie n cie s;
adhere to certain lending requirements
based on a specified loan to deposit
ratio; adopt w ritte n loan and invest­
m ent policies; reduce concentrations
of credit; correct internal control defi­
ciencies; correct violations of laws,
rules and regulations; and provide an
acceptable asset condition and a cer­
tain level of capital.
Deposits — $3.5 m illion
Notice of intention to term inate
insured status issued on May 21, 1979.
Bank ordered to provide acceptable
m a n a g e m e n t; re d u c e a d v e rs e ly




49

37

Deposits — $35.9 m illion
Notice of intention to term inate
insured status issued on June 7, 1979.
Bank ordered to provide acceptable
m an a g e m en t; a d o pt w ritte n loan,
investm ent and operating policies w ith
consideration given to liq u id ity needs;
adhere to an outstanding supervisory
corrective order; increase capital; and
provide an acceptable asset condition
and a certain level of capital.
Order term inated on July 2, 1979,
after bank was closed.

38

Deposits — $15.3 m illion
Notice of intention to term inate
insured status issued on July 2, 1979.
Bank ordered to provide acceptable
m a n a g e m e n t; re d u c e a d v e rs e ly
classified assets; correct loan docu­
m entation deficiencies; adopt accepta­
ble w r it te n loan and in v e s tm e n t
policies; discontinue cash dividends;
in cre a se c a p ita l; and p ro v id e an a c ­
c e p ta b le asset c o n d itio n and a c e r­
ta in level o f ca p ita l.
Order term inated on November 5,
1979, follow in g purchase and assump­
tion by another bank.

39

Deposits— $4.7 m illion
Notice of intention to term inate insured
status issued on July 30, 1979. Bank
ordered to provide acceptable manage­
m ent; increase capital; reduce adver­
sely classified assets; provide an ade­
quate loan loss reserve; elim inate loan
d o c u m e n ta tio n d e ficie n cie s; a d o pt
acceptable w ritte n loan policies; adopt

50

FEDERAL DEPOSIT INSURANCE CORPORATION

policies to ensure com pliance w ith
FIRIRCA; reduce c o n c e n tra tio n s of
credit; discontinue cash dividends; and
provide an acceptable asset condition
and a certain level of capital.
40

Deposits — $87.9 m illion
Notice of intention to term inate
insured status issued on September 17,
1979. Bank ordered to increase capital;
e s ta b lis h an a d e q u a te loan loss
reserve; reduce adversely classified
assets; establish a plan to control
expenses; and provide an acceptable
asset condition and a certain level of
capital.

Bank No.

138

Deposits — $4.9 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on January 10, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce adve rse ly cla ssified
assets; establish an adequate loan loss
reserve; inject new capital; reduce
overdue loans; adopt acceptable w rit­
ten loan policies; establish a plan to
control expenses; com ply w ith laws,
rules and re g u la tio n s; and in itia te
appropriate action in connection w ith
student loans in default.

139

Deposits — $16.4 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on January 10, 1979. Bank
ordered to inject new capital; reduce
adverse classifications; establish an
adequate loan loss reserve; correct
loan d o c u m e n ta tio n d e fic ie n c ie s ;
reduce overdue loans; adhere to its
sta te d in s ta llm e n t loan ch a rg e -o ff
policy; com ply w ith laws, rules and
regulations; and discontinue cash d ivi­
dends.

140

Deposits — $13.0 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
e n te re d on J a n u a ry 10, 1 9 7 9 , to re ­
place a te m p o ra ry o rd e r to ce ase-anddesist. Bank ordered to provide accep­
table management; adopt acceptable
w ritte n loan policies; reduce adverse
classifications; correct internal control
and loan docum entation deficiencies;
form ulate w ritte n policies and pro­
cedures for investm ent of bank funds;
and co m p ly w ith laws, rules and
regulations.

141

Deposits— $13.5 m illion
C o n s e n t c e a s e - a n d - d e s is t o rd e r
entered on January 10, 1979, to re­
place a tem porary order to cease-anddesist. Bank ordered to not engage in
any business transactions w ith a cer­
tain affiliate, including but not lim ited
to deposit relationships, loans to or for
the benefit of the affiliate, its officers,
d ire c to rs , s h a re h o ld e rs or o th e r
insiders of the affiliate, loans or par­
ticipations in loans purchased from or
sold to the affiliate, and the purchase of
goods or services from the affiliate;
cease g ra n tin g c re d it d ire c tly or
indirectly to or for the benefit of a cer­
tain individual, his business interests or

Deposits— $16.2 m illion
Notice of intention to term inate
insured status issued on August 13,
1979. Bank ordered to provide accepta­
ble m anagem ent and to increase
capital.

41

Summary of cases

42

Deposits — $5.1 m illion
Notice of intention to term inate
insured status issued on September 17,
1979. Bank ordered to provide accepta­
ble management; adopt procedures to
ensure maintenance of accurate books
and records; provide for an audit
program; reduce adversely classified
assets; increase capital; adopt w ritte n
loan and investm ent policies; discon­
tinue cash dividends; and provide an
acceptable asset condition and a cer­
tain level of capital.

Cease-and-Desist Actions
Federal Deposit Insurance Act-Section 8(b)
The Corporation has issued 189 cease-anddesist orders since January 1971, including 52
in 1979. In addition, 24 tem porary cease-anddesist orders were issued in that period, includ­
ing six in 1979. In each case, the bank was
ordered to cease and desist from unsafe or
unsound practices and to take affirm ative
action to correct conditions. Several such
actions are now in various stages of processing.
Also, a number of other cease-and-desist
proceedings were term inated when the banks
involved, in response to a threatened ceaseand-desist order, took affirm ative steps to cor­
rect the problems.
In six other cases, tw o in 1979, formal w rit­
ten agreements between banks and the Cor­
poration were ratified by the FDIC Board of
Directors. Noncompliance w ith these formal
w ritte n agreements can result in a cease-anddesist action.




CEASE-AND-DESIST ACTIONS
persons related to him, the affiliate or
any insider or affiliate of the bank; to
prohibit any of its employees from serv­
ing sim ultaneously as an employee of
the affiliate or perform recordkeeping
services for the affiliate; cease tran ­
sacting any business of the affiliate in
any authorized office of the bank or in
offices owned, leased or otherwise
controlled by the bank; and cease
extending any credit to any parties
secured in w hole or in part by deposits
in the affiliate.

51

v iso ry a p p ro va l; p ro h ib it e xte n d in g
credit to insiders whose outstanding
credit is adversely classified; levy serv­
ice charges on all deposit accounts of
insiders in th e same m anner and
degree as levied on other deposit
customers; and discontinue cash d ivi­
dends.

143

Deposits — $13.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on January 24, 1979. Bank
ordered to provide acceptable manage­
ment, reduce adverse classifications;
elim inate adversely classified obliga­
t i o n s o f in s id e r s , s u b s t a n t i a l
s to ckh o ld e rs, a n d /o r th e ir related
interest; elim inate and cease extending
credit in the form of overdrafts to
insiders, substantial stockholders or
c o m p a n ie s in w h ic h t h e y a re
in te re s te d ; e sta blish sp e cific p ro ­
cedures and/or guidelines w ith regard
to outstanding extensions of credit to
directors and substantial stockholders;
elim inate adversely classified loans to
and cease extending credit to bor­
rowers w ho do not reside or conduct
business w ith in the bank's normal
trade area; declare a m oratorium on
renewals and extensions of installm ent
loans; provide adequate collateral and
credit file docum entation; reduce loan
volume; m aintain an adequate loan
loss reserve; adopt a loan policy; cor­
rect internal control deficiencies and
adopt an internal audit program; com p­
ly w ith laws, rules and regulations; and
discontinue cash dividends.
Deposits — $7.2 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on January 24, 1979. Bank
ordered to provide acceptable manage­
ment; reduce adverse classifications;
e lim in a te c r itic is m s p e rta in in g to
assets liste d fo r special m e n tio n ;
e s ta b lis h an a d e q u a te loan loss
reserve; adopt acceptable w ritte n loan
policies, including provisions for credit
exte nd e d to in sid ers; e sta blish a
charged-off loan ledger; com ply w ith
laws, rules and regulations; inject new
c a p ita l; a d o pt a cce p ta b le w ritte n
in v e s tm e n t p o lic ie s ; re d u c e loan
volum e; cease payment of com pensa­
tion to directors w ith o u t prior super­




Deposits — $4.1 m illion
C o n s e n t c e a s e - a n d - d e s is t o rd e r
entered on January 24, 1979. Bank
ordered to correct violations of con­
sumer protection laws related to Finan­
cial Recordkeeping and Reporting of
C urrency and Foreign T ra n sa ction s
Regulations; Truth in Lending Act,
Equal Credit O pportunity A ct; Real
Estate Settlem ent Procedures A ct; and
part 338 (Fair Housing) of the Corpora­
tio n 's Rules and R egulations; and
employ or designate a person to assure
future com pliance w ith all consumer
and civil rights-related laws and regula­
tions.

145

Deposits — $15.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on February 16, 1979. Bank
ordered to provide acceptable m anage­
m ent; reduce adverse classifications;
provide an adequate loan loss reserve;
reduce overdue loans; adopt accepta­
ble w r it te n loan and in v e s tm e n t
policies; inject new capital; provide ad­
equate internal control procedures;
and correct violations of laws, rules and
regulations.

146

Deposits — $6.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on February 16, 1979. Bank
ordered to inject new capital and pro­
vide an adequate loan loss reserve.

147

142

144

D eposits— $29.6 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on February 16, 1979. Bank
ordered to provide acceptable manage­
m ent; obtain supervisory approval for
payment of management fees for serv­
ices n o t p e rfo rm e d by s a la rie d
employees; inject new capital; reduce
adverse classifications; lim it credit to
directors, officers, their affiliates and
interests and any tw o or more unre­
lated directors, officers, their affiliates
and interest where payment is based
upon the assets of or revenue derived
from the same source; reduce con­
centrations of credit, loan volum e and
overdue loans; not repurchase loans
sold or sell additional loan participa­

FEDERAL DEPOSIT INSURANCE CORPORATION

52

tions; adopt acceptable w ritte n loan
policies; reduce loans originating o u t­
side the bank's normal trade area; cor­
rect docum entation deficiencies; and
periodically review w ritte n policies and
esta blish e d procedures fo r c o n fo r­
mance.
148

149

150

151

Deposits — $131.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on M arch 6, 1979. Bank
ordered to provide acceptable manage­
ment; reduce adverse classifications;
establish adequate reserves for loan
losses, other real estate, and Leeway
Investments; provide adequate col­
lateral and credit file docum entation;
cease extending credit to borrowers
outside the bank's normal trade area
except for one and tw o fam ily resi­
dences; adopt acceptable w ritte n loan
and investm ent policies; lim it credit to
any person or concern and any tw o or
more unrelated obligors where pay­
ment is based upon the assets of or
revenue derived from the same source;
re d u c e c o n c e n tr a tio n s o f c r e d it;
increase surplus and reserves to a cer­
tain level; correct internal control defi­
ciencies; and correct violations of laws,
rules and regulations.
Deposits — $11.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to inject a cash contribution to surplus
and obtain a formal, w ritten, legal op i­
nion from com petent tax counsel con­
cerning the proper valuation of the
bank's b u ild in g and prem ises fo r
income tax purposes.
Deposits — $14.1 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to provide acceptable m anagement;
reduce adverse classifications; e lim i­
nate overdrafts; reduce loan volum e
and overdue loans; adopt acceptable
w ritte n loan and investment policies;
provide an adequate loan loss reserve;
c o rre c t d o c u m e n ta tio n d e ficie n cie s;
correct violations of laws, rules and
regulations; maintain com plete and
accurate board and loan com m ittee
m inutes; maintain its general ledger
and daily statem ent in conform ance
w ith generally accepted standards; and
discontinue cash dividends.
D eposits— $17.6 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered




to reduce adversely classified assets,
assets listed for special m ention, con­
centrations of credit, and loan volume;
increase the interest rate charged on a
loan to a certain insider; adopt accep­
table w ritte n loan policies; provide an
adequate loan loss reserve; define its
normal trade area and reduce, restrict
and lim it extensions of credit to bor­
rowers outside of the defined area;
e lim in a te b o rro w in g s o th e r th a n
securities sold under repurchase agree­
m ent; inject new capital; and correct
violations of laws, rules and regula­
tions.
152

Deposits — $6.1 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to inject new capital;
abide by certain restrictions regarding
loan volume, sale of loan participations,
and se cu ritie s tra n s a c tio n s ; cease
extending or renewing credit w ith o u t
first obtaining certain specific docu­
m entation and correct docum entation
deficiencies; lim it volum e of overdrafts
to a specified level; place certain
restrictions on extensions of credit to
borrowers residing outside its normal
trade area; establish an adequate loan
loss reserve; correct violations of laws,
rules and regulatons; and discontinue
cash dividends.

153

Deposits — $13.9 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on April 2, 1979. Bank ordered
to correct violations of consumer pro­
tection laws related to Truth in Lending
A c t; Financial Recordkeeping and
Reporting of Currency and Foreign
Transactions Regulations; Equal Credit
O pportunity A ct; and employ or desig­
nate a person to assure future com pli­
ance w ith all civil rights-related laws
and regulations.

154

Deposits — $15.5 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on April 9, 1979. Bank ordered
to provide acceptable m anagement;
reduce adverse classifications; reduce
loan volum e and adhere to certain
re s tric tio n s reg a rd ing same; cease
extending credit based on deposits that
have a brokered origin; establish con­
trols and procedures for extension of
dealer floor-plan credit lines; adopt
acceptable w ritte n loan and overdraft
policies; provide an adequate loan loss

CEASE-AND-DESIST ACTIONS
reserve; correct loan docum entation
deficiencies; review and take neces­
sary action w ith regard to expenditures
related to travel, entertainm ent and
legal services; correct internal control
d e fic ie n c ie s ; cease e xe rcisin g tru s t
powers w ith o u t supervisory approval;
and correct violations of laws, rules and
regulations.
155

156

Deposits— $5.4 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered April 9, 1979, Bank ordered to
p ro v id e a c c e p ta b le m a n a g e m e n t;
reduce adverse classifications; lim it
credit to any person or concern and any
tw o or more unrelated obligors where
paym ent is based upon the assets of or
revenue derived from the same source;
cease extending additional credit to
insiders or persons related to insiders
whose credit is adversely classified;
approve and e sta blish reasonable
lim itations on sale of excess funds;
reduce loan volume and adhere to cer­
tain restrictions regarding same; pro­
vide an adequate loan loss reserve;
adopt acceptable w ritte n loan, over­
draft, and insider policies; correct loan
d o c u m e n ta tio n d e ficie n cie s; cease
purchasing any loan or other asset
from any source in consideration for or
to facilitate the sale of bank insider
debt or debt of any person related to
any insider of the bank; abide by cer­
tain restrictions related to the sale of
other real estate or other bank assets;
correct internal control deficiencies;
m aintain a certain level of adjusted
capital and reserves; correct violations
of laws, rules and regulations; and
adhere to certain restrictions regarding
paym ent of cash dividends.
D eposits— $21.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on A p ril 23, 1979. Bank
ordered to provide acceptable manage­
ment; reduce adverse classifications;
reduce loan volum e and adhere to cer­
tain restrictions regarding same; lim it
credit to any person or concern and any
tw o or more unrelated obligors where
paym ent is based upon the assets of or
revenue derived from the same source;
adopt acceptable w ritte n loan and
other real estate policies; adhere to
certain restrictions regarding exten­
sions of credit of any kind to three cer­
tain individuals; extend credit secured
by real estate w ith in governing law;
provide an adequate loan loss reserve;




53

correct loan docum entation deficien­
cies; p ro vid e an a cce p ta b le loan
liability ledger; cease releasing col­
lateral held to secure credit extended
unless payment is received approx­
im ating the fair market value of the col­
lateral released; and correct violations
of laws, rules and regulations.
157

Deposits— $18.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on May 21,1979. Bank ordered
to correct violations of consumer pro­
te c tio n law s related to Financial
Recordkeeping and Reporting of Cur­
re n c y and F o re ig n T ra n s a c tio n s
Regulations; Truth in Lending A ct;
Equal Credit O pportunity A ct; Real
Estate Settlem ent Procedures A ct; and
Parts 329 (Interest on Deposits) and
338 (Fair Housing) of the Corporation's
Rules and Regulations; and em ploy or
designate a person to assure future
com pliance w ith all cited consumer
and civil rights-related laws and regula­
tions and the Corporation's Rules and
Regulations.

158

Deposits— $2.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on May 30, 1979. Bank ordered
to provide acceptable managem ent;
reduce adverse classifications; adopt
acceptable w ritte n loan policies; pro­
vide an adequate loan loss reserve; cor­
rect loan docum entation deficiencies;
review and adopt necessary adjust­
ments regarding salaries and employee
benefits paid officers and employees;
adopt plans and take affirm ative action
w ith regard to obtainm ent of adequate
premises for the conduct of the bank's
business; correct internal control defi­
ciencies; discontinue cash dividends;
and correct violations of laws, rules and
regulations.

159

Deposits— $70.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on June 11, 1979. Bank
ordered to provide acceptable manage­
m ent for its trust departm ent; conduct
trust operations in accordance w ith the
Corporation's Statem ent of Principles
of Trust Departm ent Managem ent; cor­
rect trust departm ent recordkeeping
deficiencies; conduct an asset review
of all trust accounts; correct other
docum entation deficiencies and note
same in the trust com m ittee m inutes;
obtain trust com m ittee approval prior
to opening any new trust account or
closing any existing account and the

54

FEDERAL DEPOSIT INSURANCE CORPORATION
purchase, sale or change regarding
trust assets; establish and im plem ent
p ro c e d u re s to c o n fo rm w ith th e
Employee Retirement Income Security
A ct; establish dual control procedures
for all trust departm ent assets; obtain
in d e p e n d e n t legal counsel o p in io n
regarding past and present operation of
the comm on trust fund in accordance
w ith the w ritte n plan and the trust
com m ittee w ill review same; correct
v io la tio n s ; esta blish a program to
effectively supervise trust departm ent
operations; disclose certain transac­
tio n s in v o lv in g any tru s t a cco u n t
resulting in an adjustm ent w h ich oper­
ates to the disadvantage of such trust
account; disclose litigation pertaining
to the operation of the trust depart­
m ent to, and establish an adequate
reserve for same if deemed necessary
by supervisory authorities; and provide
necessary training of the bank's inter­
nal audit personnel in auditing pro­
cedures for the bank's trust depart­
ment.

Deposits — $82.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on June 18, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to adhere to certain
restrictions regarding disbursem ent or
paym ent of any monies, including cred­
it extensions, to a certain holding com ­
pany and/or to any party w herein such
d is b u rs e m e n t w o u ld inure to the
benefit of said holding company, or
invoice the purchase of said holding
com pany's stock w ith o u t prior super­
visory approval.

D eposits— $5.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 2, 1979. Bank ordered
to provide acceptable management;
reduce adversely cla ssifie d assets;
lim it credit to any director or officer of
the bank or their affiliates and interests
or any tw o or more directors or officers
of the bank or their affiliates and
interests where payment is based upon
the assets of or revenue derived from
the same source; lim it the total indebt­
edness to directors and officers of the
bank, th e ir a ffilia te s and in te re sts;
reduce concentrations of credit; reduce
loan volum e and adhere to certain
re s tric tio n s reg a rd ing same; adopt
a c c e p ta b le w r itte n loan p o lic ie s ;
reduce overdue loans; correct loan
d o cu m e n ta tio n d e fic ie n c ie s ; pro vid e
an adequate loan loss reserve; adopt
acceptable liq u id ity policies; adopt an
a c c e p ta b le w r itte n in te rn a l a u d it
program and correct internal control
deficiencies; periodically review w rit­
ten bank policies and established pro­
cedures for conform ance; com ply w ith
Title I of the Financial Institutions
Regulatory and Interest Rate Control
A ct; and correct violations of laws,
rules and regulations.

164

Deposits— $11.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 2, 1979. Bank ordered

D eposits— $16.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on June 18, 1979. Bank
ordered to provide acceptable manage­
m ent; reduce adverse classifications;
elim inate and cease extending credit to
borrowers w ho do not reside or con­
duct business w ith in its defined trade
area; adopt acceptable w ritte n loan
policies; establish an adequate loan
loss reserve; inject new capital; fo rm u ­
late a liq u id ity policy; improve operat­
ing earnings; adopt an internal w ritte n
audit program and correct internal con­
tro l d e fic ie n c ie s; o b tain adequate
b la n ket and excess em ployee d is ­
honesty bond coverage; correct viola­
tions of laws, rules and regulations;
and discontinue cash dividends.

161

Deposits — $13.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
e ntered on June 25, 1979. Bank
ordered to provide acceptable manage­
m ent; reduce adverse classifications;
cease extending additional credit to
insiders or persons related to insiders
whose credit is adversely classified;
reduce loan volume and adhere to cer­
tain restrictions regarding same; adopt
acceptable w ritte n loan and invest­
m e n t p o lic ie s ; d is c lo s e to th e
shareholders all details on an insider
credit life insurance agency operated
on the premises; require approval by
tw o -th ird s of the shareholders of any
decision not to retain such income for
the bank, but in any event provide
reasonable reim bursem ent to the bank
for use of premises, personnel, and
equipm ent; provide an adequate loan
loss reserve; correct loan docum enta­
tion deficiencies; correct internal con­
trol deficiencies; correct violations of
laws, rules and regulations; and dis­
continue cash dividends.

163
160

162




CEASE-AND-DESIST ACTIONS
to provide acceptable m anagement;
reduce adversely classified assets and
loans listed for special m ention; reduce
loan volume and adhere to certain
restrictions regarding same; reduce
overdue loans; adopt acceptable w rit­
ten loan policies; provide an adequate
loan loss reserve; correct loan docu­
m entation deficiencies; adopt accept­
able liq u id ity p o licie s; in je c t new
capital; correct violations of laws, rules
and regulations, including consumer
protection laws; employ or designate a
person to assure future compliance
w ith all consumer and civil rightsrelated law s and re g u la tio n s; and
periodically review w ritte n policies and
established procedures for conform ­
ance.
165

Deposits — $4.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 9, 1979. Bank ordered
to provide acceptable m anagement;
reduce adversely cla ssified assets;
reduce overdue loans; adopt accept­
able w ritte n loan policies; provide an
adequate loan loss reserve; ad o pt
acceptable liq u id ity policies; and cor­
rect loan docum entation deficiencies.

166

D eposits— $20.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to provide acceptable m anagement;
reduce adversely cla ssified assets;
adopt acceptable w ritte n loan policies;
adhere to certain restrictions regarding
a c c o u n tin g fo r in te re st incom e on
loans, loan participations sold, and loan
volume; correct loan docum entation
deficiencies; review all loans and lines
of credit to directors and their interests
at least semi-annually; cease extend­
ing credit to directors whose loans are
adversely classified unless adequate
security is obtained and in conform ­
ance w ith applicable law; collect all
outstanding loans to certain individuals
and c o m p a n ie s u n le ss a d e q u a te

security is provided, otherwise, same
are to be charged off and new equity
capital injected at least equal to the
amount charged off; adhere to certain
restrictions regarding the payment of
a ny fee, c o m m is s io n , c h a rg e or
expense for legal services or services of
a real estate agency or broker unless
same is fu lly supported and docu­
mented; provide an adequate loan loss
reserve; m aintain a certain level of
adjusted capital and reserves; correct
violations of laws, rules and regula­
tions; and discontinue cash dividends.
168

Deposits — $15.1 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to provide acceptable management;
reduce adversely classified assets; col­
lect all debts of any director or direc­
tor's interests w hich are adversely
classified; adopt acceptable w ritte n
loan policies; provide an adequate loan
loss reserve; reduce and adhere to cer­
tain restrictions regarding loan volume;
and co m p ly w ith laws, rules and
regulations.

169

Deposits— $17.3 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to reduce adversely classified assets;
adhere to certain restrictions regarding
the sale of loans or loan participations
and docum entation in the granting of
extensions of credit; correct loan docu­
m e n ta tio n d e ficie n cie s; p ro vid e an
adequate loan loss reserve; inject new
capital; and com ply w ith laws, rules
and regulations.

170

Deposits— $4.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to adhere to certain
restrictions regarding extensions of
additional credit in the form of cash
item s, o ve rd ra fts, or any pa ym e n t
a g a in s t u n c o lle c te d fu n d s ; cease
extending credit guaranteed in whole
or in pa rt by th e Farmers Home
A d m in is tra tio n , th e Sm all Business
A dm inistration, or any other agency of
the United States Government; and
adhere to a specified dollar lim it in
extending credit w ith o u t prior approval
of a m ajority of directors or a co m m it­
tee th e re o f w h o are not fu ll-tim e
officers of the bank.

Deposits — $69.4 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 16, 1979. Bank ordered
to provide acceptable m anagement;
reduce adversely classified assets; pro­
vide an adequate loan loss reserve;
adhere to certain restrictions regarding
loan volume; adopt adequate liq u id ity
policies; m aintain a certain level of
to ta l c a p ita l and reserves; co rre ct
violations of laws, rules and regula­
tions; and discontinue cash dividends.

167




55

56
171

FEDERAL DEPOSIT INSURANCE CORPORATION
Deposits — $32.7 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 23, 1979. Bank ordered
to correct violations of consumer pro­
te c tio n law s related to Financial
Recordkeeping and Reporting of Cur­
re n c y and F o re ig n T ra n s a c tio n s
Regulations; Truth in Lending Act;
Equal Credit O pportunity A ct; Real
Estate Settlem ent Procedures A ct; and,
Parts 326 (S ecurity and C ontrols
Against External Crimes), 329 (Adver­
tis in g of Interest or D ividends on
Deposits), and 338 (Fair Housing) of the
Corporation's Rules and Regulations;
and employ or designate a person to
assure future com pliance w ith all con­
sumer and civil rights-related laws and
regulations.

172

Deposits — $62.8 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on July 30, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to reduce adversely
classified assets; reduce overdue loan
volum e; inject new capital and m ain­
tain a certain level of adjusted capital
and reserves; discontinue purchase of
or further speculation in the purchase
o r sale o f G o v e rn m e n t N a tio n a l
Mortgage Association forward place­
ment contracts; com ply w ith laws,
rules and regulations; and adhere to
certain restrictions regarding payment
of cash dividends.

173

D eposits— $10.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on August 6, 1979. Bank
ordered to provide acceptable m anage­
m ent; reduce adversely cla ssified
assets; reduce overdue loans and con­
centrations of credit; adopt acceptable
w ritte n loan policies; establish an ade­
quate loan loss reserve; correct loan
d o c u m e n ta tio n d e ficie n cie s; o b ta in
w ritte n verifications from banks to
w hich loan participations have been
sold regarding the bank's obligation to
repurchase; inject new capital; and
correct internal control deficiencies,
including establishm ent of an accrual
accounting system for the recording of
discounted installm ent loan income.

174

Deposits — $103.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on August 6, 1979 to replace a
tem porary order to cease-and-desist.
Bank ordered to cease from entering
into or consum m ating any transaction
for the sale of any nonbook or classified




loan of the bank for any am ount less
than face value to any insider, form er
insider, person related to an insider or
form er insider, to a certain bank or to
any insider or person related to an
insider of that bank.
175

Deposits — $5.8 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on August 13, 1979. Bank
ordered to provide acceptable manage­
ment; reduce adverse classifications;
im plem ent supervisory recom m enda­
tions regarding loans listed for special
m ention; reduce loan volum e and over­
due loans; establish an adequate loan
loss reserve; adopt acceptable w ritte n
loan policies; inject new capital; and
com ply w ith laws, rules and regula­
tions.

176

Deposits — $1.3 billion
Cease-and-desist order entered on
August 21,1979. Bank ordered to com ­
ply w ith Section 329.8 (interest on
deposits) of the Corporation's Rules
and Regulations. In particular, the bank
shall cause all visual advertisements
for a period of three months, in daily
new spapers selected in a m anner
designed to reach the greatest number
of its depositors, to contain in a clear
conspicuous manner a notice related to
the c o m p o u n d in g of in te re s t/d iv i­
dends; and establish an account that
properly reflects the bank's liability
from w hich customers may request
r e s titu tio n fo r u n d e rp a y m e n t of
interest/dividends.

177

Deposits — $41.1 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on August 20, 1979. Bank and
in d iv id u a l respondents ordered to
adhere to certain restrictions regarding
the sale of loans or loan participations,
d o cu m e n ta tio n in the g ra n tin g of
extensions of credit and loan volume;
reduce and adhere to certain restric­
tions regarding extensions of credit to
the interests of certain individual res­
pondents; adopt acceptable w ritte n
loan policies; establish an acceptable
loan liability ledger; increase the rate of
interest on outstanding obligations of
c e rta in in d iv id u a l respondents and
establish a rate of interest for loans to
individual respondents at the m ax­
im um rate for money market ce rtifi­
cates of deposits perm itted by applica­
ble regulation plus specified percen­
tage points; prepare a detailed report of
all expenses charged to the bank by its

CEASE-AND-DESIST ACTIONS
directors and other employees and
re c o v e r fro m th e d ire c to rs and
e m p lo y e e s a ll p e rs o n a l e xp e n se s
approved by the d ire c to rs a fte r a
specified date; and com ply w ith laws,
rules and regulations.
178

D eposits— $37.2 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 1, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce adversely cla ssified
assets; adopt acceptable w ritte n loan
policies, including guidelines for loans
to insiders, principal shareholders and
their interests; correct loan docum en­
tation deficiencies; adhere to certain
lim itations on extensions of credit to
any one person, including any com ­
pany or companies he or she may con­
trol; reduce concentrations of credit;
adopt acceptable w ritte n investment
policies, including adequate provisions
for liquidity; inject new capital and
subm it a plan for the replacement of
subordinated capital notes m aturing in
March 1981; take appropriate action to
im prove operating earnings; not enter

181

Deposits — $17.3 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on October 15, 1979. Bank
ordered to not have less than five direc­
tors on its board and not less than tw o thirds of the directors dom iciled w ith in
its state; have an outside audit con­
ducted regarding the bank's expense
accounts to determ ine w hich expense
items paid by the bank were reasonable
and normal bank expenses and w hich
items were expenses of a personal
nature to an insider, the latter to reim ­
burse the bank for same; adopt an
a cce p ta b le program fo r a m o n th ly
review by the board of all expense
items of the bank, including adequate
d o c u m e n ta tio n and a n n u a l b o a rd
• approval of all salaries, allowances,
bonuses and fees for officers, directors
and employees; adhere to a certain
percentage of average assets for a pre­
ceding year regarding total annual sal­
ary and bonus expense to be paid;
adopt an audit program w hich shall
include an annual audit by an outside
accounting firm ; prohibit its officers
and employees from perform ing serv­
ices during normal bank w orking hours
for a certain insider, certain corpora­
tions, or any other entity owned or con­
trolled directly or indirectly by that cer­
tain insider (other than the bank) w ith ­
out the bank receiving compensation
for such services; cease extending
loans to its affiliates in violation of a
certain law and obtain adequate docu­
m entation and collateral for all loans to
it s a f f i l i a t e s ; d is c lo s e to th e
shareholders all details on an insider
credit life insurance agency operated
on the premises; and the board shall
a n n u a lly re vie w and d e te rm in e by
a p p ro p ria te re s o lu tio n w h e th e r the
bank w ill continue to perm it credit life
insurance to be w ritte n by bank per­
sonnel and/or w ritte n on bank prem ­
ises, incidental to bank loans, in con­
nection w ith said insurance agency.

182

Deposits — $3.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 15, 1979 to replace
a tem porary order to cease-and-desist.
Bank ordered to discontinue cash or
noncash bonus to directors, officers
and employees; discontinue payment

Deposits — $11.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on September 10, 1979. Bank
ordered to reduce adversely classified
assets; establish an adequate loan loss
reserve; adhere to certain docum enta­
tion restrictions prior to extending or
renewing credit; request current finan­
cial data from all obligors whose exten­
sions of credit are adversely classified;
provide evidence of title and priority of
liens on all real estate securing any
applicable extension of credit and per­
fect any and all security interests on
real or personal property; and com ply
w ith laws, rules and regulations.

180

into any contractual agreements for the
leasing of bank premises w ith o u t prior
supervisory approval; and com ply w ith
laws, rules and regulations.

Deposits — $40.0 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on August 27, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce adversely cla ssified
assets; adopt an acceptable w ritte n
loan policy; reduce overdue loans; cor­
rect loan docum entation deficiencies;
e s ta b lis h an a d e q u a te loan loss
reserve; reduce and maintain loan
volum e at a specified level; maintain
adequate cash reserves and refrain
from unnecessary borrowing to sup­
port liquidity; inject new capital; com ­
ply w ith laws, rules and regulations;
and cause annual independent audits
to be made.

179




57

FEDERAL DEPOSIT INSURANCE CORPORATION
of m anagement fees and/or director
fees; provide inform ation satisfactory
to support the salary, fees and other
direct remuneration paid to any direc­
tor, officer or employee w ho does not
serve as a full-tim e officer or employee;
adhere to certain restrictions regarding
any increases in salary and/or expense
allowances of full-tim e officers and
employees; adhere to certain lim ita ­
tions and restrictions in the reim burse­
m ent of expenses to any officer, direc­
tor or employee; review and docum ent
in the minutes of regular m eetings of
the board approval or disapproval of all
detailed income and expense state­
m ents; cease payment of management
fees to tw o certain form er owners of
the bank and seek reim bursem ent from
three certain individuals for manage­
ment fees paid to the tw o form er
owners; cease extending any addi­
tional credit to or for the benefit of
directors, a certain form er director,
principal stockholders, or tw o certain
form er owners of the bank; adopt
a c c e p ta b le w r itte n loan p o lic ie s ;
reduce adversely cla ssified assets;
e s ta b lis h an a d e q u a te loan loss
reserve; initiate and pursue all actions
necessary to obtain reim bursem ent
from three certain individuals for cer­
tain unsafe or unsound banking prac­
tices com m itted in connection w ith an
agreement to purchase the bank from
tw o form er owners of the bank related
to extensions of credit to and property
conveyed to the form er owners and
obtain a specified amount of new
capital by direct contribution from the
th re e c e rta in in d ivid u a ls; p ro vid e
acceptable management; reduce over­
due loans; com ply w ith laws, rules and
regulations; and discontinue cash or
noncash dividends.
D eposits— $3.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 15, 1979 to replace
a tem porary order to cease-and-desist.
Two active directors and a form er
director ordered to cease acceptance
or receipt of cash or noncash bank d ivi­
dends; one of the directors and the
form er director are to cease accept­
ance or receipt of cash or noncash
bonus or director fees and any increase
in salary or other direct or indirect
remuneration w ith o u t adequate docu­
m entation from the bank supporting
same; reimburse the bank for a certain




extension of credit adversely classified
loss, bank property conveyed, manage­
ment fees paid, and for the difference
between preferential interest rate and a
nonpreferential rate given to the form er
owners of the bank on their real estate
loans; and take steps to correct and
com ply w ith applicable laws, rules and
regulations.
184

Deposits — $18.2 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on October 22, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce adversely cla ssifie d
assets; increase the number of nonofficer-directors on the loan com m ittee
from tw o to four and require the loan
c o m m itte e to give p rio r approval
regarding secured or unsecured exten­
sions of credit over certain stated
amounts; reduce overdue loans and
loan volume; adhere to its overdraft
policy; form ulate an acceptable w ritte n
liq u id ity policy; inject new capital; pro­
vide an adequate loan loss reserve; be
made beneficiary on life insurance
policies on w hich the prem iums are
paid by the bank; discontinue any
fa v o ra b le tr e a tm e n t to a c e rta in
individual; increase fid e lity insurance
coverage to recommended level; and
discontinue cash dividends.

185

Deposits — $6.3 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on October 22, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce a d versely cla ssified
assets; collect and/or provide evidence
that a certain adversely classified loan
endorsed by an insider no longer w a r­
rants adverse c la s s ific a tio n ; a dopt
acceptable w ritte n loan policies; pro­
vide an adequate loan loss reserve;
reduce loan volum e and adhere to cer­
tain restrictions regarding same; cor­
rect loan docum entation and internal
control deficiencies; inject new capital;
com ply w ith laws, rules and regula­
tions; and discontinue cash dividends.

186

Deposits — $17.0 m illion
C o n se n t c e a s e -a n d -d e s is t o rd e r
entered on October 22, 1979. Bank
ordered to provide acceptable m anage­
m en t; reduce adversely cla ssified
assets; lim it credit to any director or
officer of the bank or their affiliates and
interests or any tw o or more directors
or officers of the bank where payment
is based upon the assets of or revenue
derived from the same source; lim it the

CEASE-AND-DESIST ACTIONS
total indebtedness to directors and
officers of the bank, their affiliates and
interests; adhere to certain restrictions
regarding specific adversely classified
loans or related loans to a certain
individual; adopt acceptable w ritte n
loan policies; correct loan docum enta­
tion deficiencies; provide an adequate
loan loss reserve; adopt acceptable
liq u id ity policies; adopt a policy estab­
lishing guidelines and procedures for
the elim ination of the excessive use of
uncollected funds; adopt a policy and
adhere to certain restrictions regarding
overdrafts to past or present officers or
directors or their interests and to a cer­
tain individual and his interests; cor­
rect v io la tio n s o f laws, rules and
regulations; and inject new capital.
187

D eposits— $59.2 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on December 17, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce adversely cla ssified
assets; increase the number of nonofficer-directors on the loan com m ittee
by one and require the loan com m ittee
to g iv e p rio r a p p ro v a l re g a rd in g
secured or unsecured extensions of
credit over certain stated amounts;
reduce overdue loans, loan volume, and
concentrations of credit; provide* an
adequate loan loss reserve; form ulate
an acceptable w ritte n liq u id ity policy;
inject new capital; and discontinue
cash dividends.

loan policy; provide an adequate loan
loss reserve; and inject new capital.

Formal W ritte n Agreem ent
Federal Deposit Insurance A ct-S e ctio n 8(b)
Bank No.

5

Deposits— $199.9 m illion
W ritte n agreement entered on Sep­
tem ber 10, 1979. Bank agreed to am or­
tize certain purchase and servicing
contracts on a straight-line basis over a
12-year period b e g in n in g January
1980.

6

Deposits— $70.2 m illion
W r itte n a g re e m e n t e n te re d on
November 5, 1979. Bank agreed to co l­
lect and/or improve the quality of cer­
tain insider loans subject to adverse
classification and listed for special
m ention sufficient to warrant removal
of the designations; reduce remaining
adversely classified assets and loans
liste d fo r special m e n tio n ; a d o pt
acceptable w ritte n loan and invest­
m ent policies; adhere to FDIC's pub­
lished statem ent of policy concerning
income tax rem ittance by banks to
their holding com pany affiliates; pro­
vide an adequate loan loss reserve; and
adhere to certain restrictions regarding
payment of m anagement, consultant or
other fees of any nature to directors or
their interests or the bank's holding
company.

D eposits— $3.9 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on December 10, 1979. Bank
ordered to correct violations of con­
sumer protection laws related to Finan­
cial Recordkeeping and Reporting of
C urrency and Foreign T ra n sa ction s
Regulations; Truth in Lending A ct;
Equal Credit O pportunity A ct; and,
parts 326 (S e cu rity and C ontrols
Against External Crimes), and 345
(Comm unity Reinvestment Act) of the
Corporation's Rules and Regulations;
and em ploy or designate a person to
assure future com pliance w ith all con­
sumer and civil rights-related laws and
regulations.

188

189

D eposits— $68.5 m illion
C o n s e n t c e a s e -a n d -d e s is t o rd e r
entered on December 17, 1979. Bank
ordered to provide acceptable manage­
m en t; reduce adversely cla ssifie d
assets; adopt an acceptable w ritte n




59

Tem porary cease-and-desist actions
Federal D eposit Insurance A ct-S e ctio n 8(c)
Bank No.

19

D eposits— $62.8 m illion
Temporary cease-and-desist order
issued on January 10, 1979. Bank
o rd e re d to c e a s e -a n d -d e s is t fro m
further purchase of, or further specula­
tion in, the purchase or sale of Govern­
m ent National M ortgage Association
futures, excepting further purchases or
sales of same on w hich the bank is pre­
sently legally obligated.
A perm anent cease-and-desist order
was issued on July 30, 1979.

20

Deposits — $6.1 m illion
Temporary cease-and-desist order
issued on January 19, 1979. Bank
o rd e re d to c e a s e -a n d -d e s is t fro m
extending credit exceeding a specified
am ount in the form of overdrafts or by

60

FEDERAL DEPOSIT INSURANCE CORPORATION
holding checks as cash items for any
one custom er or account; extending
credit in violation of a certain state
statute; and abide by certain restric­
tions regarding loan volum e and the
sale of any loan or participation in any
credit.
A perm anent cease-and-desist order
was issued on April 2, 1979.
21

D eposits— $4.7 m illion
Temporary cease-and-desist order
issued on May 25, 1979. Bank ordered
to adhere to certain restrictions regard­
ing extensions of additional credit in
the form of cash items, overdrafts, or
paym ent against uncollected funds;
cease extending credit guaranteed in
w hole or in part by the Farmers Home
A d m in is tra tio n , th e Sm all Business
A dm inistration, or any other agency of
the United States Government; and
adhere to a specified dollar lim it in
extending credit w ith o u t prior approval
of a m ajority of directors or a co m m it­
tee thereof who are not full tim e
officers of the bank.
A perm anent cease-and-desist order
was issued on July 16, 1979.

Deposits — $3.9 m illion
Temporary cease-and-desist order
issued on August 10, 1979. Bank
ordered to cease pa ym e n t of all
m a n a g e m e n t a n d d ir e c t o r fe e s ,
bonuses, and dividends; raising any
a nd a ll s a la rie s to o ffic e r s and
employees; extending any additional
credit to or for the benefit of members
o f board of d ire c to rs or p rin cip a l
sto ckh o ld e rs; co n ve yin g the bank's
assets w ith o u t adequate considera­
tion; extending credit in violation of
Federal Reserve Regulation 0 ; seek
reim bursem ent for vehicles owned by
the bank and conveyed to form er
o w n e rs ; a s p e c ifie d a m o u n t o f
m an a g e m en t fees paid to fo rm e r
owners, and a specified am ount for
loans classified loss granted to form er
owners.
A perm anent cease-and-desist order
was issued on October 15, 1979.

24

D eposits— $3.9 m illion
Temporary cease-and-desist order
issued on August 10, 1979. Three cer­
tain active directors ordered to cease
acceptance or receipt of dividends,
b o n u s e s , d ir e c to r s fe e s , s a la ry
increases, conveying bank assets, mak­
ing loans, and paying management
fees w ith o u t adequate consideration,
and any extension of credit from the
bank; and, reimburse the bank for
assets conveyed, loans m ade and
management fees paid to tw o certain
in d iv id u a ls in c o n n e ctio n w ith an
agreement to purchase the bank.
A permanent cease-and-desist order
was issued on October 15, 1979.

D eposits— $82.4 m illion
Temporary cease-and-desist order
issued on May 7, 1979. Bank ordered to
adhere to certain restrictions regarding
th e d is b u rs e m e n t of any m onies,
including credit extensions, to a certain
holding company and/or to any other
p a rty w h e re in such d is b u rse m e n t
w ould inure to the benefit of said hold­
ing company.
A perm anent cease-and-desist order
was issued on June 18, 1979.

22

23




MERGER DECISIONS OF THE COf




PART THREE




63
BAN KS INVO LVED IN ABSO R PTIO N S APPRO VED BY
THE FEDERAL DEPOSIT IN S U R A N C E C O RPO RATIO N IN 1 9 7 9
State

Town or City

Bank

Alabam a

Evergreen

First Alabam a Bank of C onecuh C ou n ty
(in o rg a n iza tio n )
The C onecuh C o u n ty Bank
Lee C o u n ty Bank (in o rg a n iza tio n;
ch a n g e title to The Bank o f East
A labam a)
The Bank of East Alabam a

O pelika

Alaska

A n c h o ra g e

C a lifo rn ia

A naheim
Fresno
F ulle rton
Grass V alley
Gardena
Irvine
Liverm ore
Los A ngeles

Page

12 5
1 25

125
1 25

Alaska Pacific Bank
Alaska Interim Bank (in o rg a n iza tio n)

1 25
1 25

H eritage Bank
First N ational Bank o f Fresno
C a lifo rn ia Pacific Bank
Gold C o u n try Bank
R epublic Bank
Irvine National Bank
V alley Bank, National A sso cia tio n
S herm an Oaks B ra n ch —
M a n u fa ctu re rs Bank
C a lifo rn ia Overseas Capital
Co., Inc. (in o rg a n iza tio n)
C a lifo rn ia Overseas Bank
Los A ngeles
S urety N ational Bank (change title to
(P.O. Encino)
C a lifo rn ia Overseas Bank)
Los A ngeles (Sun Valley) A m e rica n Pacific State Bank
N e w p o rt Beach
In te rn a tio n a l C entral Bank
In te rn a tio na l T rust C o rp o ra tio n
O akland
Central Bank
San F rancisco
Bank of A m erica N ational T rust and
Savings A sso cia tio n
The H ongkong Bank of C a lifo rn ia
(change title to Oakland Bank)
San Rafael
IBC Investm ent C o rp o ra tio n (in
org a n iza tio n)
S outh Lake Tahoe
Tahoe National Bank

1 17
108
119
125
119
117
108

C o n n e c tic u t

H a rtfo rd
New Haven

The G uaranty Bank and T rust C o m pa n y
First Bank

Florida

Bay C o u n ty
(P.O. Panama City)

S o u th e a st Beach State Bank (change
title to S outheast Bank of Panama
City)
B arnett Bank of Daytona Beach (change
title to Barnett Bank of Volusia
C ounty)
B arnett Bank of DeLand, National
A sso cia tio n
B arnett Bank of Delray Beach (change
title to B arnett Bank of Palm Beach
C ounty)
A m e rica n Bank o f H o llyw o o d
First A m e rica n Bank of Hom estead
A m e rica n A rlin g to n Bank
A m e rica n Beach Boulevard Bank (change
title to A m e rica n Bank)

D aytona Beach

DeLand
Delray Beach

H o llyw o o d
Hom estead
Ja ckso n ville




102
107
107
107
102
122
1 22
7 0 ,1 1 8
93
70
125
108
99
99

100

72
72

1 15
118
98
110
1 10

64
State

FEDERAL DEPOSIT INSURANCE CORPORATION
Town or City

Ja ckso n ville Beach
Lake W o rth
M argate
N orth M iam i
Panama C ity
Pem broke Park
(P.O. Hallandale)
Pom pano Beach

Riviera Beach
Tequesta
W e st Palm Beach
G eorgia

A lb a n y
A tlanta
C o lu m b u s
D alton

D o erun
D u lu th
H am pton

Law renceville

M acon

M arietta

M o u ltrie
Illin ois

C h ica g o

S c h a u m b u rg

Bank

A m e rica n M a n d a rin Bank
S o utheast Bank of Edgew ood
S outheast First Bank of Ja cksonville
(change title to S outheast Bank of
Ja cksonville)
S ou th e a st First N ational Beach
Bank
First M arin e N ational Bank and T rust
C o m pa n y of Lake W o rth
Florida Coast Bank of Coral S prings,
N ational A sso cia tio n
First A m e rica n Bank of Dade C o u n ty
S o u th e a st N ational Bank of Panama
C ity
Pem broke Park B ra n ch — A m e rica n Bank
of H allandale
Florida Coast Bank of P om pano Beach
(change title to Florida Coast Bank
of Brow ard C ounty)
First M arin e Bank & T rust C om pany of
the Palm Beaches
First M arin e N ational Bank & Trust
C om pany, J u p ite r/T e q u e s ta
B arnett Bank of Palm Beach C o u n ty

110
109

S e cu rity Bank and T rust C om pany
D uC orp. Inc. (in o rg a n iza tio n )
CB&T, Inc. (in o rg a n iza tio n)
First Railroad Bank of D alton (in
o rg a n iza tio n ; ch a n ge title to The
Bank of D alton)
The Bank of D alton
*Toney B rothers Bank
The Bank of D u lu th
In te rim -H a m p to n , Inc. (in
o rg a n iza tio n )
The Bank of H am pton
G w in n e tt C o m m e rcial Bank
T rust C o m pa n y of G w in n e tt C o u n ty (in
o rg a n iza tio n ; ch ange title to
G w in n e tt C o m m e rcial Bank)
Georgia Bank and T rust C om pany
G eorgia In te rim C om pany (in
o rg a n iza tio n )
First Railroad Bank of C obb C o u n ty
(in o rg a n iza tio n; ch a n ge title to
The C o m m e rcial Bank of C obb C ounty)
The C o m m e rcial Bank of C obb C o u n ty
A m e rica n Banking C om pany

1 25
1 26
125

In d ep e n d e n ce Bank of C hica g o
‘ G uaranty Bank & T rust C om pany
'G a te w a y N ational Bank of C hica g o
H.S. Bank (in o rg a n iza tio n ; ch ange
title to S u b u rba n Bank of H o ffm a n S ch a u m b u rg )
S u b u rba n Bank o f H o ffm a n -S ch a u m b u rg

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




Page

109
109
96
97
98
100
1 18

97
96
96
1 15

1 26
1 26
123
126
126
1 26
125

125
125
1 25

1 26
1 26
123
124
124
124

126
1 26

BANK ABSORPTIONS APPROVED BY THE CORPORATION
State

Town or City

Indiana

Fort W ayne

M aine

Lew iston
Liverm ore Falls
Portland
South Paris

M aryla n d

B a ltim ore

H agerstow n
H ancock
Rockville
M assa ch u se tts

M ic h ig a n

B u rlin g to n
W a lth a m

Big Rapids
Clare
O livet

M ississip p i

C lin to n
Leakesville
V icksb u rg
W a yn e sb oro

New Jersey

New York

B e rnardsville
Clayton

M o rris to w n
A lb a n y
B uffalo
Fredonia
Genesee
K ingston
New York (B rooklyn)
New York (M a n h a tta n )
O ssining
Syracuse
T arrytow n




Bank

S u m m it Bank and T rust C om pany
of Fort W ayne (in o rg a n iza tio n ; ch a n ge title
to Indiana Bank and T rust C o m pa n y of
Fort W ayne)
Indiana Bank and T ru st C o m pa n y of
Fort W ayne
N orth e a st Bank of Lew iston and
A u b u rn
A ugusta and W a te rville B ranches—
Liverm ore Falls T rust C o m pa n y
M aine Savings Bank
S outh Paris Savings Bank
A rlin g to n Federal Savings
and Loan A sso cia tio n
C entral Savings Bank
E quitable T rust C o m pa n y
A n tie ta m Bank C o m pa n y
Peoples Bank of H ancock
U niversity National Bank

65
Page

126
126

83
83
77
77

89
89
69
1 11
111
69

BayBank M iddlesex, N.A.
BayBank N e w to n -W a lth a m T ru st C om pany
(change title to BayBank M iddlesex)

101

C entral M ich ig a n Bank and T ru st
CM B Bank (in o rg a n iza tio n)
Citizens Bank and T rust C o m pa n y
CBC Bank (in o rg a n iza tio n)
The O livet State Bank
New State Bank of O livet (in o rg a n iza tio n )

125
125
1 26
1 26
1 26
1 26

The A m e rica n Bank
Bank of Leakesville
Bank of V icksb u rg (change title
to The A m e rica n Bank)
First State Bank
Bernards State Bank
Peoples Bank of South Jersey (in
o rg a n iza tio n )
Peoples Bank of S outh Jersey
The M o rris C o u n ty Savings Bank
A lb a n y Savings Bank
M e ch a n ics Exchange Savings Bank
Erie Savings Bank
Fredonia Savings and Loan
A sso cia tio n
Genesee Valley N ational Bank and
Trust C om pany of Genesee
Heritage Savings Bank
The Dim e Savings Bank of
New York
E m igrant Savings Bank
P rudential Savings Bank
W e stch e ster C o u n ty Savings and
Loan A sso cia tio n
First T rust and D e p o sit C om pany
Peoples W e stch e ster Savings Bank

101

69
87
69
87
121
1 25
1 25
121
75
91
104
104
74
75
91
72
72
90
74
90

FEDERAL DEPOSIT INSURANCE CORPORATION

66
State

Town or City

Bank

Page

N orth C arolina

C onw ay
Fayetteville
Raleigh

Bank of C onw ay
Cape Fear Bank & T rust C om pany
C a p ito l N a tio n a l Bank
First-C itizens Bank & T rust C om pany
W a cca m a w Bank and T rust C om pany
(change title to U nited Carolina
Bank, W h ite ville )

103
97
97
103

W h ite ville

O hio

Akron
C o lu m b u s
G allipolis

H arrisb u rg
Hopedale
M ario n

Salem
S teubenville
U nion T ow n sh ip
(P.O. M o rris to w n )
W a d sw o rth
Yorkville

The Firestone Bank
S o cie ty Bank
CS Bank (in o rg a n iza tio n; change
title to The C o m m e rcial and Savings Bank)
The C o m m e rcial and Savings Bank
*The A m e rica n Bank of Central O hio
Heritage Bank, N.A. — H opedale
The F. B. G. Bank of M ario n (in
o rg a n iza tio n; ch a n ge title to The
M ario n C o u n ty Bank)
The M a rio n C o u n ty Bank
Heritage Bank, N.A. — Salem
H eritage Bank, N.A. — S teubenville
(change title to H eritage Bank)
The Eastern O hio Bank
The Firestone Bank of W a d sw o rth
The C o m m u n ity Savings Bank C o m pa n y

97
1 16
122
1 25
125
1 22
76

125
125
76
76
84
1 16
84

O klahom a

Tulsa

C o m m u n ity Bank & T rust C om pany
C o m m u n ity Banksite, Inc.

94
94

O regon

Hood River

Hood River C o u n ty Bank
Hood River C o u n ty Interim Bank (in
o rg a n iza tio n )
The C o m m u n ity Bank
First State Bank of O regon
First State Interim Bank of O regon
(in o rg a n iza tio n )
The U nion N ational Bank
of Lew isburg
The First N ational Bank of M illville
C entral C ou n ties Bank
N o rth e rn C entral Bank

126

Lake O swego
M ilw au kie

Pennsylvania

Lew isburg
M illv ille
State C ollege
W illia m s p o rt

S outh C arolina

C olu m b ia

Florence
T renton
Texas

A d d iso n

C ollege S ta tio n

Bankers T ru st of South C arolina
=irst-C itize n s Bank and T rust C om pany
o f S outh C arolina
The Peoples Bank of South C arolina, Inc.
The Bank of T re n to n
New A d d iso n State Bank (in
o rg a n iza tio n ; ch a n ge title to A d d iso n
State Bank)
A d d iso n State Bank
B a n k o fA & M
Texas A & M Bank (in o rg a n iza tio n;
ch a n ge title to Bank of A & M)

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




126
1 12
1 12
112
80
79
80
79
81
114
81
114

1 26
1 26
125
125

BANK ABSORPTIONS APPROVED BY THE CORPORATION
State

Town or City

Fort W o rth

H ouston

H u tch in s

Ja ckso n ville

Pasadena

Taft

Page

C o llegiate State Bank of Fort W o rth
(in o rg a n iza tio n ; ch a n ge title to
U niversity Bank)
New Riverside Bank (in o rg a n iza tio n ;
ch a n ge title to Riverside State Bank)
Riverside State Bank
U niversity Bank
A llied Cypress Bank (in o rg a n iza tio n )
A llied M e rca n tile Bank (in
o rg a n iza tio n)
A m e rica n Bank (in o rg a n iza tio n)
‘ A m e rica n N ational Bank
C o m m e rcial State Bank
Cypress Bank
M e rca n tile Bank o f H ouston (change
title to A llied M e rca n tile Bank)
New C o m m e rcial State Bank (in
o rg a n iza tio n)
New Port C ity Bank (in o rg a n iza tio n)
Port C ity State Bank
New South Central Bank (in
o rg a n iza tio n; ch a n ge title to S outh
Central Bank)
S outh C entral Bank
Allied Texas Bank (in o rg a n iza tio n )
Texas Bank and T rust C o m pa n y (change
title to A llied Texas Bank)
San Ja c in to State Bank
South S treet State Bank (in
o rg a n iza tio n; ch a n ge title to San Ja cin to
State Bank)
New First State Bank of Taft (in
o rg a n iza tio n; ch a n ge title to The
First State Bank of Taft)
The First State Bank of Taft

Utah

R ichfield

V alley Central Bank
VC Bank C o rp o ra tio n (in o rg a n iza tio n )

V e rm o n t

Barre
B u rlin g to n

Batreal, Inc.
M e rch a n ts Properties, Inc.
The M e rch a n ts Bank

V irg in ia

C h in co tea g u e

Bank of C h in co tea g u e , Inc.
(change title to Farm ers & M e rch a n ts
Bank — Eastern Shore)
Farmers & M e rch a n ts N ational Bank
in O nley
The C olo n ial Bank
Citizens and Farm ers Bank

O nley
P rovidence Forge
W est Point

67

125
125
125
1 25
126
126
124
124
126
126
126
126
12 6
126

126
126
126
126
125

125

126
126
126
126
87
87
87

105
105
86
86

O ther Areas
Puerto Rico

San Juan (Hato Rey)
San Juan (Rio Piedras)

S co tia b a n k de Puerto Rico
(in o rg a n iza tio n)
Banco M e rca n til de Puerto
Rico. Inc.

'B anks absorbed in "emergency" approvals under provisions of Section 18(c).




95

95

68

FEDERAL DEPOSIT INSURANCE CORPORATION
T ow n o r C ity

State

Halifax

Canada

A rg e n tin a

B uenos Aires

Bank

Page

Puerto Rican Branches — The Bank of
Nova Scotia

95

R osario Branch — Banco A lem an
T ra n sa tla n tico

93

BANKS INVOLVED IN ABSORPTIONS DENIED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1979
Pennsylvania

C o n n e au tville
W a rre n




The Farm ers N ational Bank of
C o n n e au tville
The Pennsylvania Bank and T rust
C o m pa n y

127
127

69

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

The E qu itab le T ru st
C om pany

Banking Offices
in Operation
Before

After

1,534,945

102

117

124,875

15

B altim ore, M aryland

to merge with
U n iv e rs ity N ational
Bank

Convenience and Needs of the Commu­
nity to be Served. S e rvice s to be offe re d in
the relevant m arket by the resultant bank
w o uld not d iffe r m ate ria lly from those p re ­
sently o ffe re d by each p ro p o n e n t.
A va ila b le inform ation in d ica te s that no in­
co n siste n cie s with the p u rp o se s of the C om ­
m unity R einvestm ent A c t a p p e a r to exist.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.

R ockville, M aryland
S um m ary rep o rt by A tto rn ey G eneral,
N o ve m b e r 13, 1978
The m erg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e b a n k h o ld in g c o m ­
pany. As such, their p ro p o se d m erg e r is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o u ld have no e ffe c t on co m p e titio n .
B asis for C o rpo ra tion A p p ro va l
Ja n u ary 24, 1979
The E q u ita b le Trust C om pany, Baltim ore,
M aryla n d (“ A p p lic a n t” ), an in su re d State
n o n m e m b e r b a n k w ith total re so u rce s of
$1 ,53 4 ,9 4 5 ,00 0 and total IPC d e p o sits of
$ 1 ,2 1 2 ,5 0 3 ,0 0 0 , has a p p lie d p u rsu a n t to
S ection 18(c) and oth er pro visio n s of the
F e d e ra l D e p o s it In s u ra n c e A c t, f o r th e
FDIC's p rio r c o n s e n t to m erge w ith U niversity
N ational Bank, R ockville, M aryland, with total
re s o u rc e s of $ 1 0 1 ,5 1 0 ,0 0 0 . The m e rg e r
w o u ld be u n d er the c h a rte r and with the title
of A p p lic a n t, and the fifteen existing, and one
a p p ro v e d but u n o pe n e d , b ra n ch e s of U ni­
ve rs ity National Bank w ould be e sta b lish e d
as b ra n c h e s of the resultant bank.
The p ro p o n e n ts are both w h o lly-o w n e d
(e x c e p t d ire c to rs ’ q u a lifyin g sh a re s) s u b ­
s id ia rie s of E quita b le B a n co rpo ra tion , B alti­
m ore, M aryland, a bank ho ld in g co m p a n y.
This rela tio n sh ip has existed sin ce 1974. The
p ro p o sa l is esse n tia lly a co rp o ra te re o rg a n i­
zation a nd w o u ld not a ffe ct the stru ctu re of
c o m m e rc ia l b a n king or the co n ce n tra tio n of
b a n k in g reso u rce s w ithin the relevant m arket.
In vie w of the fo re g o in g , the Board of
D ire cto rs is of the o p in io n that the p ro p o se d
m e rg e r w o u ld not, in any se ctio n of the c o u n ­
try, su b s ta n tia lly lessen co m p e titio n , te n d to
cre a te a m on o p o ly, or in any other m anner be
in restra in t of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The p ro p o n e n ts ’ fin a ncia l
a nd m an a g e ria l reso u rce s are c o n s id e re d
a d e q u a te for the p u rp o se s of this p ro p o sa l.
F inancial and m an a g e ria l reso u rce s of the
resultant b a n k w o u ld be a c c e p ta b le and its
fu tu re p ro s p e c ts a p p e a r fa vo ra b le .




Resources
(in thousands
of dollars)

Bank o f V icksb u rg

Banking Offices
in Operation
Before

38,316

3

11,648

After

6

3

V icksb u rg ,
M ississip p i
(cha n g e title to The
A m e rica n Bank)

to merge with
The A m erican Bank
Clinton, M ississip p i
S um m ary re p o rt by A tto rn ey G eneral,
O cto b e r 13, 1978
We have review ed this p ro p o s e d tra n s a c ­
tion and c o n c lu d e th a t it w o u ld not have a
su b stan tia l c o m p e titive im pa ct.
Basis fo r C o rp o ra tio n A p p ro va l
Ja n u ary 24, 1979
B ank of V icksb u rg , M ississip p i (“ B V ” ), an
insured State n o n m e m b er ba n k with total
reso u rce s of $38 ,3 1 6 ,0 0 0 and total IPC d e ­
posits of $23,081,000, has a p p lie d , p u rsu a n t
to S ection 18(c) and other p ro visio n s of the
Federal D e p o sit In su ra n ce A ct, for the C or­
p o ra tio n ’s p rio r co n se n t to m erg e with The
A m e rica n Bank, C linton, M ississip p i (“ A m e ri­
c a n ” ), with total re so u rce s of $ 11,648,000
and total IPC d e p o s its of $5,807,000. The
banks w o u ld m e rg e u n d e r the ch a rte r of BV
and with the title of The A m e rica n Bank, and
incident to the m erger, the three offices of
A m e rica n w o u ld b e co m e b ra n ch e s of the
resulting bank, in cre a sin g the n u m b e r of a p ­
p ro ve d o ffices to seven.
Competition. BV, e s ta b lish e d in 1974, o p ­
erates three o ffice s in V icksb u rg , M ississip p i.
An a d d itio n a l b ra n ch has rece n tly been a p ­
p ro ve d fo r the city of Ja ckso n , M ississip p i,
a p p ro x im a te ly 40 m iles from its m ain office.
As of D e ce m b e r 31, 1977, BV was ranked as
the 63rd la rg e st co m m e rcia l b a n k in the

70

FEDERAL DEPOSIT INSURANCE CORPORATION

state, co n tro llin g a m od e st 0.36 p e rce n t of
the s ta te ’s co m m e rcial bank de p osits.
A m e rica n , e sta blish e d in 1973, o p e ra te s
its m ain o ffic e and one b ra n ch in Clinton,
M is s is s ip p i, and an a d d itio n a l b ra n ch in
Jackso n , M ississip p i, seven m iles east of the
m ain o ffic e . As of D e c e m b e r 31, 1977,
A m e rica n w as ranked as the 147th larg e st
c o m m e rcia l bank in the state, co n tro llin g a
n e g lig ib le 0.12 p e rc e n t of the s ta te ’s c o m ­
m ercial b a n k d e p osits.
The p ro p o s e d m erg e r w ould have its m ost
im m e d ia te c o m p e titiv e e ffe ct in A m e ric a n ’s
p rim a ry m arket area, co m p o se d of eastern
H inds C ounty, w estern Rankin County, and
the so u the rn p o rtio n of M adison C ounty.
Jackson, the c a p ita l of M ississip p i, is c e n ­
trally lo c a te d in this area. The 1970 p o p u la ­
tion of the area w as a p p ro xim a te ly 180,700
(inclu d in g 154,000 from the city of Ja ckso n ),
co m p a re d to a 1960 p o p ula tio n of 161,000
(inclu d in g 144,400 from the city of Ja ckso n ).
There are 88 o ffice s of 14 co m m e rcial banks
o p e ra tin g w ithin this m arket. A m e rica n c o n ­
trols o n ly 0.5 p e rc e n t of the m a rke t’s c o m ­
m ercial b a n k IPC d e p osits, m aking it the
fourth sm alle st c o m m e rcia l bank. The s ta te ’s
tw o la rg e st banks d o m in a te the m arket with
80.4 p e rc e n t of the co m m e rcial bank IPC
d e p osits. BV is not lo ca ted in the area and
the c lo se st e xisting b ra n ch e s of the tw o
banks are s e p a ra te d by a p p ro xim a te ly 40
miles. It th e re fo re a p p e a rs that there is no
sig n ific a n t existing c o m p e titio n betw een the
tw o banks that w o uld be e lim inated by the
p ro p o s e d m erger.
The p ro p o n e n ts ’ legal b ra n ch in g areas,
un d er M ississip p i ba n king laws, o ve rla p to a
g re a t extent. BV has a p p ro va l to o pen a
branch in Jackso n , a p p ro xim a te ly 3 m iles
from a b ra n ch of A m e rica n . The p ro p o sa l will
the re fo re elim inate futu re co m p e titio n b e ­
tw een the p ro p o n e n ts.
C o n sid erin g the m od e st share of the m ar­
ket held by A m e rica n and the co m p e titio n
p ro v id e d by the s ta te ’s tw o la rg e st b a n king
o rg a n iza tio ns, the elim ination of this p otential
co m p e titio n is of little s ig n ifica n ce .
Based on the fo re g o in g , the Board of Di­
rectors is of the op in io n that the p ro p o se d
m erg e r w o u ld not, in any section of the co u n ­
try, s u b sta n tia lly lessen co m p e titio n , tend to
crea te a m on o p o ly, or in any other m anner be
in restraint of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. C o n sid e ra tio n s relating to
fin a n c ia l and m a n a g e ria l re so u rce s have
been s a tis fa c to rily resolved, and the resultant
bank is a n tic ip a te d to have fa vo ra b le fu tu re
p ro s p e c ts .

Convenience and Needs of the Community



to be Served. The p ro p o se d m erg e r w ould
have little e ffe ct on the c o n ve n ie n ce and
needs of the se rvice area, other than p ro v id ­
ing the resulting b a n k with a hig h er le nding
limit. C o n sid e ra tio n s of c o n v e n ie n c e and
needs of the co m m u n ity are nevertheless
co n sisten t with a p p ro va l of the a p p lica tio n .
A va ila b le in form ation in d ica te s that no in­
co n siste n cie s with the p u rp o se s of the C om ­
m unity R einvestm ent A ct a p p e a r to exist.
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w a rra n te d .

Resources
(in thousands
of dollars)

The H ongkong Bank
of C alifornia

Banking Offices
in Operation
Before

After

142,018

6

47

500,714

41

San F ra n cisco ,
C alifornia
(cha n g e title to
Central Bank)

to merge with
Central Bank
O akland, C a lifornia
S um m ary re p o rt by A tto rn ey G eneral,
N o ve m b e r 17, 1978
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e th a t it w o uld not have a
sub stan tia l co m p e titive im pact.
Basis for C o rpo ra tion A p p ro va l
January 24, 1979
Pursuant to S ection 18(c) and other p ro v i­
sions of the Federal D ep o sit Insu ra n ce Act,
an a p p lic a tio n has been file d on b ehalf of The
H o n g ko ng Bank of C alifornia, San F rancisco,
C a lifornia (“ H K B ” ), an insu re d State non­
m e m b e r b a n k w ith to ta l re s o u r c e s of
$ 1 4 2 ,0 1 8 ,0 0 0 a n d to ta l IPC d e p o s its of
$106,1 2 2 ,0 0 0, fo r the C o rp o ra tio n ’s p rio r
co n se nt to m erge, u n d er its charter, with
Central Bank, O a kla nd , C alifornia, also an
insured State n o n m e m b er bank, with total
reso u rce s of $ 5 0 0,714,000 and total IPC d e ­
p osits of $ 404,940,000, and to esta blish the
41 o ffice s of C entral Bank as b ra n ch e s of the
resultant b a n k w hich w ould co m m e n ce o p e r­
ation with a total of 47 o ffice s and bear the
title “ C entral B a n k” . In cid e n t to the tra n s a c ­
tion, the m ain o ffice lo ca tio n of the resultant
bank w o u ld be c h a n g e d to the p re se n t site of
the m ain o ffice of Central Bank.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Competition. The H o n g ko ng and Shanghai
Banking C o rpo ra tion (“ H & S ” ), p arent of HKB,
has p ro p o s e d the a cq u isitio n of a m ajor
interest in M arine M idla n d Banks, Inc., a
large N ew York State b a n king org a n iza tio n.
As restra in ts bar H&S from h o ld in g the c o n ­
tro llin g in te re s t in b o th M a rin e M id la n d
Banks, Inc., and HKB, ah a tte m p t has been
m ade to sell, or o th erw ise d isp o se of, the
o ffices and c o m m e rcia l ba n king b u siness of
the C a lifo rn ia -b a se d bank.
HKB, b a se d in San F ra n cisco , o p e ra te s six
b a n king o ffic e s in C alifornia; tw o in the city of
San F ra n cisco , and one each in the citie s of
S acram ento, Beverly Hills, C arson and Los
A ng e le s. C entral Bank, b a se d in O akland,
o p e ra te s 41 o ffic e s in 12 co u n tie s of C alifor­
nia w ith m ost of its o ffices lo ca ted in the East
Bay R egion of the San F ra n cisco -O a kla n d
m etro p o lita n area and in the central portion of
the state in the S a cra m e n to and San Joa q uin
Valleys. A sin g le o ffic e is also o p e ra te d at
Long Beach in the Los A n g e le s m etro p o lita n
area.
There are three relevant m arkets in w hich
to a ssess the c o m p e titive im p a ct of the p ro ­
p o se d tra n sa ctio n . The p ro p o n e n ts ’ clo se st
o ffices are lo ca te d in the S a cra m e n to area,
a p p ro x im a te ly one m ile apart, and are re­
g a rd e d as be in g in d ire c t co m p e titio n in this
relevant m arket. O ffice s of the p ro p o n e n ts in
the San F ra n c is c o -O a kla n d area a n d in the
Los A n g e le s -L o n g B each area, w hile not in
clo se p ro xim ity and s e p a ra te d by num erous
inte rve n in g b a n king o ffices, are vie w e d as
c o m p e tin g in the sam e re sp e ctive m arkets.
In each of these m arkets the p ro p o n e n ts
hold less than 1.0 p e rc e n t of the re sp e ctive
m a rk e t’s c o m m e rcia l b a n k d e p o sit base and
rank am ong the sm aller co m m e rcial banks by
such a m easure. All three m arkets are re­
g a rd e d as be in g h ig h ly co n ce n tra te d , with
the th re e la rg e st b a n king o rg a n iza tio ns re p ­
re s e n te d th e re in a g g re g a te ly c o n tro llin g
betw een 64.5 p e rc e n t and 78.0 p e rce n t of
the re s p e c tiv e m a rk e t’s d e p o s it base. In light
of the relatively nom inal volum e of d e p o sits
held by the p ro p o n e n ts in these m arkets, the
c o n su m m a tion of the p ro p o s e d tra n sa ctio n is
re g a rd e d as having no sig n ifica n t a d ve rse
e ffe c t upon existing c o m p e titio n or u pon the
stru ctu re of c o m m e rc ia l ba n king co m p e titio n
in any of th e se relevant areas.
In the State of C alifornia, C entral Bank
ranks as the 13th la rg e st ba n k in share of
total co m m e rcial b a n k d e p o sits held w hile
HKB ranks as the 44th la rg e st b a n k in share
of such fu n ds. The resultant bank, w hich
w ould rank as the S ta te ’s 12th la rg e st bank,
w o uld hold only 0.5 p e rce n t of C a lifo rn ia ’s
c o m m e rc ia l bank d e p o sits, a share s ig n ifi­



71

ca n tly sm alle r than th o se held by other,
la rg e r sta te w ide b a n kin g o rg a n iza tio ns. The
p ro p o se d m erg e r of C entral Bank and HKB is
vie w e d as having little e ffe ct u pon the s tru c ­
ture of co m m e rcial b a n king or the c o n c e n tra ­
tion of b a n king reso u rce s in California.
C a lifo rn ia sta tu te s p e rm it s ta te w id e de
novo b ra n ch in g and m erg e r a ctivity. H K B ’s
pare n t has in d ic a te d its intention to sell the
bank, thus c o n sid e ra tio n of its poten tia l e x­
pa n sion a c tiv itie s is not rele va n t to this
analysis. Central B a n k’s a cq u isitio n of H K B ’s
sin g le ba n king o ffice in S a cra m e n to and
three o ffices in the Los A n g e le s area are
view ed as having an in sig n ifica n t e ffe ct on
potential de novo en try d ue to the nu m b e r of
existing o ffice s of other co m m e rcia l banks
and the c o n c e n tra te d nature of th e se b a n k­
ing m arkets. Central Bank, w h ich cu rre n tly
has no o ffice s in the city of San F rancisco,
m ust, how ever, be re g a rd e d as a p otential de
novo b ra n ch in g e n tra n t to that city. San F ran­
cisco , it is noted, is h e avily ba n ked , with a
n u m ber of large, sta te w id e ba n king o rg a n i­
zations b a se d in the city and d o m in a tin g its
co m m e rcial b a n kin g activitie s. The p ro p o se d
tran sa ctio n thus, w o u ld have little im p a ct on
the p otential for co m p e titio n betw e en the
pro p o n e n ts.
U nder the circ u m s ta n c e s , the Board of
D irectors is of the o p in io n th a t the p ro p o se d
m erg e r w o u ld not, in any se ctio n of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , te n d to
create a m o n o p o ly, or in any o th e r m an n e r
be in restraint of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. C o n sid e ra tio n s relating to the
m anagerial reso u rce s of the p ro p o n e n ts and
of the resultant b a n k have been sa tisfa cto rily
resolved. E quity ca p ita l of the resu lta n t bank
and of its parent, C entral B anking System ,
Inc., on a c o n so lid a te d basis, after g ivin g
co n sid e ra tio n to the p ro je c te d im p a c t of the
p ro p o se d m erg e r, is b e lo w d e sire d levels. It
w ould a p p e a r that the ca p ita l s tru ctu re of
both the resu lta n t b a n k and of its p a re n t is in
need of p e rm a n e n t a d d itio n a l e q u ity ca p ital
fu n ds, in o rd e r to p ro p e rly s u p p o rt the instant
m erg e r p ro p o sa l. With the a d d itio n of such
ad d itio n a l e q u ity fu n ds, the resultant bank
and its p a re n t w o u ld a p p e a r to have fa v o ra ­
ble fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d by the
resultant b a n k w o u ld not d iffe r m ate ria lly from
those p re se n tly a va ila b le th ro u g h either p ro ­
po n en t or at other b a n kin g o rg a n iza tio ns.
C o n sid era tio ns of co n ve n ie n ce and needs of
the co m m u n ity are neve rth e le ss co n siste n t
with a p p ro va l of the tran sa ctio n .
A va ila b le inform ation in d ica te s that no in­

72

FEDERAL DEPOSIT INSURANCE CORPORATION

co n s is te n c ie s with the p u rp o se s of the C om ­
m unity R einvestm ent A ct a p p e a r to exist.
B ased on the fo re g o in g inform ation, the
B oard of D ire cto rs has c o n c lu d e d th a t a p ­
proval of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

B arn ett Bank of
Daytona Beach

56,246

Banking Offices
in Operation
Before

2

After

3

Financial and Managerial Resources; Fu­
ture Prospects. The p ro p o n e n ts ’ fin a ncia l

D aytona Beach,
Florida

and m an a g e ria l reso u rce s are co n sid e re d
a d e q u a te for the p u rp o se s of this p ro p o sa l.
F inancial and m an a g e ria l reso u rce s of the
resultant b a n k w ould be sa tisfa cto ry and its
futu re p ro s p e c ts a p p e a r fa vo ra b le .

(cha n g e title to
B arnett Bank of
Volusia C ounty)

to merge with
B arn ett Bank of
DeLand, N ational
A s s o c ia tio n

Inc., Ja ckso n ville , Florida, a re g iste re d bank
h o ld in g co m p a n y, m ay co n so lid a te its o p e r­
ations in V olusia County. A p p lic a n t a nd O ther
Bank have been u n d er com m on o w n e rsh ip
and con tro l sin ce A p p lic a n t was e sta b lish e d
in Ja n u a ry of 1971, a nd th e ir p ro p o s e d
m erg e r w o u ld not a ffe ct the stru ctu re of
co m m e rcial ba n king or the c o n ce n tra tio n of
b an king reso u rce s w ithin the relevant m arket.
The B oard of D ire cto rs is of the o p in io n that
the tran sa ctio n w ould not, in any se ctio n of
the country, su b sta n tia lly lessen co m p e titio n ,
tend to crea te a m onopoly, or in any other
m anner be in restraint of trade.

87,255

1

D eLand, Florida
S um m ary rep o rt by A tto rn ey G eneral,
O c to b e r 3, 1978
The m erg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e bank h o ld in g c o m ­
pany. As such, th e ir p ro p o se d m erg e r is
e ssentially a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe c t on co m p e titio n .

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant b a n k w ould
not d iffer m aterially from those p re se n tly of­
fe re d by each p ro p o n e n t.
A va ila b le inform ation in d ica te s that no in­
c o n siste n cie s with the p u rp o se s of the C om ­
m unity R einvestm ent A ct a p p e a r to exist.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arra n te d .

B asis for C o rp o ra tio n A p p ro va l
Ja n u ary 24, 1979
B arnett Bank of D aytona Beach, D aytona
B each, F lo rid a ( "A p p lic a n t” ), an in su re d
State n o n m e m b er bank with total reso u rce s
of $56,246,000 and total IPC d e p o sits of
$43,593,000, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and o ther p ro visio n s of the Federal
D eposit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rior co n s e n t to m erge, u n d er its charter, with
Barnett Bank of D eLand, National A s s o c ia ­
tion, D eLand, F lorida (“ O ther B a n k” ), with
total reso u rce s of $ 8 7 ,255,000 and total IPC
d e p o s its of $76,882,000, and to esta blish the
sole o ffice of O ther Bank as a b ra n ch of the
resultant b a n k w h ich w o u ld co m m e n ce o p e r­
ation w ith a total of th re e o ffices and with the
title “ B arnett Bank of V olusia C o u n ty” . In ci­
d e n t to the tra n sa ctio n , the main o ffice lo c a ­
tion of the resu lta n t b a n k w ould be d e s ig ­
nated as the p re se n t site of the m ain o ffice of
O ther Bank.
Competition. E ssentially a c o rp o ra te reo r­
ga n izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich B arnett Banks of Florida,




Resources
(in thousands
of dollars)

E m ig rant S avings
Bank

Banking Offices
in Operation
Before

After

2 ,524,353

15

30

751,045

15

N ew York
(M anhattan), New
York

to merge with
P rud en tial S avings
Bank
N ew York
(M anhattan), New
York
S um m ary rep o rt by A tto rn ey G eneral,
no rep o rt received.
Basis for C o rpo ra tion A p p ro val
F ebruary 16, 1979
Pursuant to S ection 18(c) and other p ro vi­
sions of the Federal D ep o sit Insu ra n ce Act,
E m ig ra n t S a vin g s Bank, N ew Y ork (P.O.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
M anhattan), New York (“ E m ig ra n t” ), an in­
sured m utual savin g s b ank with total re­
s o u rce s of $ 2 ,5 2 4 ,3 5 3 ,00 0 and total d e p osits
of $2,33 4 ,5 4 0 ,00 0 , has a p p lie d for the C or­
p o ra tio n ’s p rio r c o n se n t to m erge, u n d er its
ch a rte r and title, w ith Prudential Savings
Bank, New York (P.O. M anhattan), N ew York
(“ P ru d e n tia l” ), an insured m utual savings
bank w ith total reso u rce s of $ 7 51,045,000
and total d e p o s its of $701,918,000. In cid en t
to the tran sa ctio n , the fifteen o ffices of Pru­
de ntial w o u ld be e sta b lish e d as b ra n ch e s of
the resultant ba n k w hich w o uld co m m e n ce
o p e ra tio n with a total of thirty o ffices.
Competition. Em igrant, based in M anhat­
tan, o p e ra te s a total of 15 o ffice s in New York
(M anhattan), Q ueens, Nassau and Suffolk
C o unties and has rece ive d reg u la to ry a p ­
p ro v a l to e s ta b lis h a b ra n c h o ffic e in
W e stch e ster County. Prudential, also based
in M anhattan, o p e ra te s 15 offices in New
York (M anhattan), Kings (B rooklyn), Nassau
and W e stch e ster Counties. Each p ro p o n e n t
has been involved in m erg e r tran sa ctio n s
sin ce 1969 with other th rift in stitutions based
w ithin N ew York City.
N either E m igrant nor Prudential holds a
s ig n ific a n t share of the th rift institution d e ­
p o sit base in any of the co u n tie s in w hich the
p ro p o n e n ts are re p re s e n te d . In N assau,
W e stch e ster and K ings Counties, the resul­
tant institution w o uld hold only 2.6 pe rce n t,
0.4 p e rc e n t and 1.7 p e rce n t, resp e ctive ly, of
the c o u n ty ’s th rift d e p osits, a m arket share
w h ich in e ach ca se is su b sta n tia lly lower than
the share held by o ther large thrift institutions
rep re se n te d therein. In N ew York C ounty
(M anhattan), E m igrant is ranked as the third
la rg e st thrift institution h o ld in g 7.4 p e rce n t of
th a t co u n ty's th rift in s titu tio n d eposits and as a
c o n s e q u e n c e o f th e p ro p o s e d m e rg e r w o u ld
a c q u ire P ru d e n tia l's 1.6 p e rc e n t share of
su ch fu n d s . T his w o u ld have no e ffe c t u p o n
th e re s u lta n t in s titu tio n 's ra n kin g and is n o t
re g a rd e d as h a vin g any s ig n ific a n t e ffe c t on
the s tru c tu re of th rift in s titu tio n banking in th is
area. In the c o m b in e d fo u r-co u n ty area of
New York, Kings, W e stch e ster and Nassau,
in w h ich P rudential is p re se n tly rep resented,
the resultant bank w o uld a g g re g a te ly hold
only 5.1 p e rc e n t of the a re a ’s thrift institution
d e p o sits, a share sig n ifica n tly sm aller than
the shares held by the three larger m utual
sa vin g s banks ba se d therein.
The five b o rro u g h s of New York City and
th e n e ig h b o r in g c o u n tie s of R o c k la n d ,
W e stch e ster, Suffolk and Nassau are re­
g a rd e d as having clo se e co n o m ic ties, with a
la rg e p o rtio n of the w ork fo rce e m p lo ye d with
N ew York City. The p re se n ce of com m on
a d v e r tis in g a n d c o m m u n ic a tio n m e d ia




73

th ro u g h o u t the m e tro p o lita n area serves as
a d d itio n a l e v id e n ce of e co n o m ic integration.
The resultant institution in this m etro p o lita n
area, sim ilarly, w o uld con tro l less than 5.0
p e rc e n t of the thrift institution d e p o sits and
the p ro p o se d tra n sa ctio n is vie w e d as having
no s ig n ifica n t e ffe ct upon the structu re of
thrift institution b a n king in such an area.
W hile som e e xisting co m p e titio n betw een
Em igrant and Prudential w ould be e lim inated
by the co n su m m a tion of the p ro p o se d tran s­
action, no sig n ifica n t a d ve rse e ffe ct on co m ­
p etition is in e vid e n ce as num erous other
la rg e thrift institution alte rn a tive s are a va il­
able in each of the areas served by the
pro p o n e n ts. In the New York, Kings, Nassau
a n d W e stch e ste r C o u n ty area, o ve r 500
ban king o ffice s are o p e ra te d by a total of 110
thrift institutions, of w h ich the resultant bank
w ould o p e ra te only 23. The co n tinu a tio n of a
c o m p e titive thrift institution ba n king e n viro n ­
m ent seem s assured.
E m igrant ranks as the fifth la rg e st and
Prudential as the 39th la rg e st m utual savings
bank in N ew York State. W hile each is p e r­
m itted to b ra n ch and m erg e th ro u g h o u t the
state, and thus, som e p o tential for in cre a se d
co m p e titio n in the fu tu re betw e en them w ould
be e lim inated by the p ro p o se d tran sa ctio n ,
New York statutes restrict de novo b ranch
exp a nsio n by m utual sa vin g s banks to one
such o ffice per year. This sta tu to ry b ra n ch in g
restraint and the p re se n ce of num erous other
large thrift institutions m ake this loss of p o ­
tential co m p e titio n in sig nifica n t.
U nder the circu m sta n ce s, the Board of
D irectors is of the op in io n that the p ro p o se d
m erg e r w ould not, in any section of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , tend to
c rea te a m onopoly, or in any other m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ru d e n tia l’s fin a ncia l c o n d i­
tion is re g a rd e d as less than d e sira b le as a
result of low ca p ita liza tio n , a high vo lu m e of
nonearning assets, p oor e a rn in g s retention
and in a d e q u a te loan su p e rvisio n , w hile the
fin a ncia l c o n d itio n of E m igrant has p roven to
be sound and g e n e ra lly free of such c riti­
cism . The resultant institution should have the
reso u rce s to c o rre c t such d e fic ie n c ie s w ithin
the fram e w o rk of a fin a n cia lly so u n d thrift
institution. C o n sid era tio ns relating to m an­
a gerial reso u rce s and the fu tu re p ro s p e c ts of
the resultant institution have been s a tis fa c ­
torily resolved. These c o n sid e ra tio n s w ould
outw e igh such lim ited a d ve rse c o m p e titive
e ffe cts as m ay exist.

Convenience and Needs of the Community
to be Served. Som e b e n efit w o uld a cc ru e to
the p u b lic from the p ro p o se d b ro a d e n in g of

74

FEDERAL DEPOSIT INSURANCE CORPORATION

d e p o s ito ry se rvice s o ffered and e xp a n d e d
b a n king hours at the p re se n t o ffice s of Pru­
d en tia l, how ever, the p ro p o se d tra n sa ctio n is
e x p e c te d to have little m aterial im p a ct upon
c o n v e n ie n c e and needs as such se rvice s are
re a d ily a va ilab le at o ffice s of other thrift in­
s titu tio n s in the areas served by the p ro p o ­
nents. C o n sid era tio ns relating to c o n v e n i­
e n ce and needs of the co m m u n ity to be
se rve d are, how ever, co n siste n t with a p ­
proval of the tran sa ctio n .
A va ila b le inform ation in d ica te s that no in­
co n s is te n c ie s with the p u rp o se s of the C om ­
m unity R einvestm ent A c t a p p e a r to exist.
B ased on the fo re g o in g , the B oard of Di­
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

F irst T ru st and
D e po sit C om pany

Banking Offices
in Operation
Before

509,811

44

27,214

After

46

2

S yracuse, N ew York

to merge with
G enesee Valley
N ational Bank and
T ru s t C om pany o f
G eneseo
G eneseo, New York
S um m ary rep o rt by A tto rn ey G eneral,
O c to b e r 20, 1978
We have revie w e d this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w ould not have a
s ig n ific a n tly a d ve rse e ffe ct upon c o m p e ti­
tion.
Basis for C o rpo ra tion A p p ro val
F eb ru a ry 16, 1979
First Trust and D e p o sit C om pany, S yra­
cuse, New York (“ First T ru st” ), an insured
State n o n m e m b er bank with total resources
of $ 5 0 9,8 1 1 ,0 0 0 and total IPC d e p o sits of
$ 3 9 0,453,000, has a p p lie d , pursu a n t to S e c­
tion 18(c) and other p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, for the C o rp o ra tio n ’s
p rio r c o n s e n t to m erge, u n d er its ch a rte r and
title, w ith G enesee Valley N ational Bank and
Trust C o m pa n y of G eneseo, G eneseo, New
York (“ G enesee V a lle y” ), with total reso u rce s
of $ 2 7 ,2 1 4 ,0 0 0 and total IPC d e p o sits of
$19,61 8 ,0 0 0 . G e n ese e V a lle y’s tw o o ffice s
w o u ld be o p e ra te d as b ra n ch e s of the resul­
tant bank.




Competition. The ba n king m arket m ost rel­
evant to an evaluation of the co m p e titive
im p a ct of the p ro p o se d tra n sa ctio n w o uld be
an area w ithin fifteen road m iles of G eneseo,
w h ic h w o u ld in c lu d e th e m a jo r ity o f
Livin gsto n County, and the a d jo in in g p o rtio n s
of G e n ese e and W yom ing C ounties. M uch of
the area is rural with both a g ricu ltu ra l and
industrial a ctivitie s in e vid e n ce . The tow n of
G e n ese o (1970 p o p u la tio n 7,278) serves as
the e co n o m ic ce n te r of the area by virtue of
its size relative to the su rro u n d in g c o m ­
m unities and the p re se n ce of a b ra n ch of the
state university. The area, with the e xce p tio n
of the town of G eneseo, has e xp e rie n ce d
only a m od e st p o p ula tio n g row th, and its
m ed ia n bu yin g levels are be lo w the 1977
state m edian.
In the relevant m arket, a total of nine co m ­
m e rc ia l b a n k s o p e ra te s ix te e n o ffic e s .
G enesee Valley, w hich ranks as the m a rke t’s
th ird la rg e st bank, h olds 14.5 p e rc e n t of its
IPC d e p o s it b a se , a s h a re s ig n ific a n tly
sm aller than those held by the m a rke t’s tw o
la rg e r in stitutions w hich a g g re g a te ly control
4 8 .6 p e rc e n t of such funds. N either First
Trust nor any affiliate of its p arent, First
C o m m e rcial Banks, Inc., is rep re se n te d in
this m arket, and G enesee Valley d o e s not
a p p e a r to be e n g a g e d in any s ig n ifica n t
d ire c t c o m p e titio n with this ba n king o rg a n i­
zation. The p ro p o n e n ts ’ nearest o ffices are
lo ca te d a p p ro xim a te ly 65 m iles a p a rt and no
o ffice of an affiliate is lo ca ted closer. The
p ro p o se d tran sa ctio n is vie w e d as having no
s ig n ific a n t e ffe ct on e xistin g co m p e titio n .
R ep re se n te d in the relevant m arket are af­
filiates of several of the s ta te ’s la rg e st b a n k­
ing o rg a n iza tio ns p ro vid in g intense c o m p e ti­
tion. Thus, the a cq u isitio n of this relatively
sm all local institution by a ban king o rg a n iz a ­
tion b a se d in the central and eastern portio n s
of the state w ould have no m aterial a d ve rse
im p a c t on the stru ctu re of co m m e rcial b a n k­
ing in the relevant m arket.
New York State statutes p e rm it sta te w ide
de novo b ra n ch in g , su b je c t to hom e o ffice
p ro te ctio n in co m m u n ities with a p o p ula tio n
of 5 0 ,000 or less. First Trust is thus p re c lu d e d
from de novo e xpansion into G eneseo, and
the p ro p o se d tra n sa ctio n will serve as an
entry m echanism p e rm ittin g First Trust to
e sta blish a p re se n ce in this local m arket.
G enesee Valley, d u e to its relatively m odest
size, do e s not a p p e a r to be in a po sitio n to
m ount any m eaningful e xp a nsio n ca m p a ig n
into areas rem oved from its p re se n t base of
o p e ra tio n . A c c o rd in g ly , the p ro p o se d tra n s­
a ctio n w o u ld not elim inate any s ig n ifica n t
poten tia l for c o m p e titio n b etw een the p ro p o ­
nents.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
B ased upon the fo re g o in g , the B oard of
D ire cto rs is of the op in io n that the p ro p o se d
tra n sa ctio n w o u ld not, in any se ctio n of the
c o u n try , s u b s ta n tia lly lessen co m p e titio n ,
te n d to c re a te a m onopoly, or in any other
m anner be in restra in t of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. Both banks have sa tisfa cto ry
fin a ncia l and m an a g e ria l resources, as w ould
the resultant b a n k w h ich is a n ticip a te d to
have fa v o ra b le fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. S ervices to be offe re d by the
resultant b a n k w o uld not d iffe r m aterially from
th o se a lre a d y a va ilab le in the m arket at other
b a n king org a n iza tio ns. As co n su m m a tion of
the p ro p o s e d tra n sa ctio n will m ake a va ilab le
an a d d itio n a l s o u rc e of such se rvice s in the
co m m u n ity, c o n s id e ra tio n s of co n ve n ie n ce
and ne e ds a p p e a r co n siste n t with a p p ro va l
of the a p p lic a tio n .
A va ila b le inform ation in d ica te s that no in­
c o n s is te n c ie s with the p u rp o se s of the C om ­
m unity R einvestm ent A c t a p p e a r to exist.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

A lb an y S aving s Bank

Banking Offices
in Operation
Before

After

9 1 7,365

14

21

24 3,189

7

A lb a n y, N ew York

to merge with
H eritage S avings
Bank
K ingston, New York
Sum m ary rep o rt by A tto rn e y G eneral,
F eb ru a ry 26, 1979
We have revie w e d this p ro p o se d tra n s a c ­
tion and c o n c lu d e th a t it w ould not have any
s ig n ific a n t e ffe c t on co m p e titio n .
Basis for C o rp o ra tio n A p p ro va l
M arch 20, 1979
A lb a n y Savings Bank, A lb a n y, New York,
an insu re d m utual s a vin g s bank with total
reso u rce s of $917,3 6 5 ,0 0 0 and total d e p o sits
of $851,439,000, has a p p lie d , p u rsu a n t to
S ection 18(c) and other p ro visio n s of the
Federal D e p o sit In su ra n ce A ct, fo r the C or­
p o ra tio n ’s p rio r co n s e n t to m erge, u n d e r its
c h a rte r and title, with H e rita g e S avings Bank,
K ingston, N ew York, an insured m utual sa v­
in g s
bank
w ith
to ta l
re s o u rc e s
of




75

$ 2 4 3 ,1 8 9 ,0 0 0
and
to ta l d e p o s its
of
$228,965,000. In cid e n t to the tra n sa ctio n , the
se ve n o ffic e s of H e rita g e S a vin g s B ank
w ould be e s ta b lish e d as b ra n ch e s of A lb a n y
S avings Bank w h ich w o u ld co m m e n ce o p e r­
ation with a total of 21 o ffices.
Competition. A lb a n y S avings Bank o p e r­
ates 14 o ffice s in the ce n tra l a nd northern
p ortions of New York State. B ra n ch es in
G lens Falls, Jo h n sto w n , Troy and O n e ida
have been a c q u ire d sin ce 1970 th ro u g h
m erg e r tra n sa ctio n s w ith four S ta te -ch a rte re d
s a v in g s and loan a s s o c ia tio n s . H e rita g e
S avings Bank o p e ra te s a total of seven of­
fice s in three c o u n tie s of the H u d so n River
V alley of so u the a ste rn New York State. In
1974, H e rita g e S a v in g s B ank, b a s e d in
K ingston in northern U lster C ounty, m erg e d
w ith B e a c o n S a v in g s B a n k , a c q u ir in g
bra n ch e s in the southern p ortion of D u tch e ss
C o u n ty a n d re s o u rc e s of a p p ro x im a te ly
$58,000,000. The p ro p o n e n ts ’ nearest o ffices
are in exce ss of 50 road m iles a p a rt, w ith a
n u m b e r of other th rift institution o ffice s se rv­
ing the in te rve n in g area. The tw o in stitutio n s
d o not a p p e a r to be in d ire c t co m p e titio n to
any sig n ifica n t d e g re e a nd the p ro p o s e d
tran sa ctio n is re g a rd e d as having little e ffe ct
upon existing co m p e titio n .
The area in w h ich the co m p e titive im p a c t of
the p ro p o se d tra n sa ctio n w ould be m ost d i­
rect and im m e d ia te is re g a rd e d as the area
w ithin an a p p ro x im a te 15 road m ile rad iu s of
the re sp e ctive citie s of K in g sto n a nd B eacon.
T hese tw o, e s s e n tia lly a d jo in in g re le va n t
m arkets, o ve rla p o nly to a lim ited e xte nt in the
vicin ity of P o u g h ke e p sie w here a lo ca llyb ased m utual sa vin g s b a n k d o m in a te s the
local thrift institution b a n king .
Kingston (1970 p o p u la tio n 25 ,54 4 ) is the
Ulster C ounty seat, lo ca te d in the n o rth e a st­
ern p ortion of the co u n ty a p p ro x im a te ly 90
road m iles north of New York C ity a nd a p ­
p ro xim a te ly 60 road m iles south of A lb a n y.
The e co n o m y of the K in g sto n area is p re d i­
ca te d upon a m ix of lig h t industry, a g ric u l­
ture, d a iry fa rm in g a nd tourism . The m ou n ­
tains and fo re sts th a t lie to the w e st of K in g s­
ton serve as a p o p u la r recre a tio na l area. The
citie s of B eacon a nd P o u g h ke e p sie (1970
pop ula tio n 13,255 and 32,029, re sp e ctive ly)
are c h ie f e c o n o m ic c e n te rs of D u tch e ss
C o u n ty, w ith P o u g h k e e p s ie lo c a te d a p ­
p ro xim a te ly e q u id is ta n t b etw een N ew York
City and A lb a n y. The a re a ’s e co n o m jc a c tiv ­
ity is well d ive rsifie d with e le ctro n ics, a p ­
parel, fo o d p ro ce ssin g , textiles, p a p e r p ro d ­
ucts and oth er m a n u fa ctu rin g of sig n ific a n c e .
A large IBM c o m p le x near P o u g h ke e p sie is
the a re a ’s la rg e st e m p lo ye r with its h ig h ly
skilled w orkers c o n trib u tin g to the relatively
h ig h m e d ia n h o u s e h o ld b u y in g le ve l of

76

FEDERAL DEPOSIT INSURANCE CORPORATION

D utchess C ounty in relation to c o m p a ra b le
fig u re s for a d jo in in g areas and for the state.
In the K ingston relevant m arket, a total of
nine th rift institutions o p e ra te 16 ba n king
offices. H e rita g e S avings Bank, w h ich holds
20.4 p e rc e n t of the m a rke t’s th rift in stitution
d e p o sits, ranks as its se co n d la rg e st thrift
institution. In the B eacon relevant m arket, a
total of 14 th rift institutions o p e ra te 37 b a n k ­
ing offices. H e rita g e Savings Bank, w hich
holds 7.7 p e rc e n t of the thrift in stitution d e ­
posits in this m arket, ranks as the fourth
larg e st th rift institution. A lb a n y Savings Bank
is not re p re s e n te d in either of these m arkets.
H e rita g e S avings B a n k’s S pring Valley o f­
fic e is lo c a te d in R ockland County, m ore than
70 road m iles south of K ingston, and is re­
g a rd e d as c o m p e tin g in a se p a ra te , d ista nt
local m arket. This office, w hich h olds a m o d ­
est 4.4 p e rc e n t of R ockland C o u n ty ’s thrift
institution d e p o s its , ranks am ong the a re a ’s
s m a lle r th rift in s titu tio n s . The p ro p o s e d
tra n s a c tio n w o u ld have little e ffe c t u pon
co m p e titio n or u pon the stru ctu re of thrift
institution b a n king in this relatively d ista nt
area.
The p ro s p e c ts of m eaningful co m p e titio n
d e v e lo p in g betw e en the p ro p o n e n ts th ro u g h
de novo b ra n c h in g in the fo re se e a b le fu tu re
a p p e a r rem ote as restrictive state statutes
lim it such e xp a nsio n fo r each p ro p o n e n t to a
sin g le de novo o ffic e per year. H e rita g e Sav­
ings Bank lacks the ne ce ssary reso u rce s to
m ount a m ea n in g fu l exp a nsio n effort out of
the H udson River Valley area it now serves
into areas s e rve d by A lb a n y S avings Bank.
W hile A lb a n y S a vin g s B ank m ust be re ­
g a rd e d as a p rim e poten tia l entrant into the
m arkets in the H u d so n River V alley now
served by H e rita g e Savings Bank, the ve h icle
of de novo b ra n ch entry is not e xp e c te d to
p ro d u c e a s ig n ific a n t co m p e titive im p a c t in
the fo re s e e a b le future. The p re se n ce of a
n u m b e r of large th rift institutions, with n u m e r­
ous b a n king o ffic e s in the Kingston and B e a ­
con m arkets, assures the co n tinu a tio n of a
co m p e titiv e th rift in stitution ban king clim a te
in these areas if the p ro p o se d m erg e r is
c o n su m m a ted . The loss of som e p otential for
future co m p e titio n betw e en the p ro p o n e n ts is
not re g a rd e d as h a ving a sig n ifica n t a d ve rse
c o m p e titiv e im pa ct.
U n der the c irc u m s ta n ce s, the Board of
D irectors has c o n c lu d e d that the p ro p o se d
tran sa ctio n w o u ld not, in any se ctio n of the
co u n try , s u b s ta n tia lly lessen co m p e titio n ,
tend to c re a te a m on o p o ly, or in any other
m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. H e rita g e Savings B a n k’s fi­
nancial co n d itio n is re g a rd e d as less than




d e sira b le as a result of a high vo lu m e of loan
losses and non ea rn in g assets with a p o o r
reco rd of e a rn in g s retention w hile the fin a n ­
cial c o n d itio n of A lb a n y S avings Bank has
proven to be g e n e ra lly free of such criticism .
The resultant institution should p o sse ss the
reso u rce s n e ce ssary to c o rre ct such d e ­
ficie n cie s w ithin the fram e w o rk of a fin a n cia lly
sound thrift institution.
C o n sid e ra tio n s relating to m an a g e ria l re­
so u rce s and fu tu re p ro s p e c ts of the resultant
institution have been sa tisfa cto rily resolved.

Convenience and Needs of the Community
to be Served. The p ro p o s e d tra n s a c tio n
w ould resolve the fin a ncia l and m an a g e ria l
d e fic ie n c ie s in e vid e n ce at H e rita g e S avings
Bank and thus e n h a n ce the co n ve n ie n ce and
needs of the co m m u n ities it serves. These
co n sid e ra tio n s w ould o u tw e igh such lim ited
a d ve rse c o m p e titive e ffe cts as m ay exist.
A review of a va ila b le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ent
of the tw o re sp e ctive institutions and other
relevant m aterial, d isclo se d no in co n siste n ­
cies with the p u rp o se s of the Act. The re su l­
tant institution is e x p e c te d to c o n tin u e to
m eet the c re d it needs of its entire co m m u n ity,
co n siste n t with the safe and sound op e ra tio n
of the institution.
Based on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arranted.

Resources
(in thousands
of dollars)

Heritage Bank, N.A.
— S teubenville

Banking Offices
in Operation
Before

129,735

8

75,000

8

14,010

After

3

19

S teubenville, O hio
(cha n g e title to
H e rita g e Bank)

to consolidate with
Heritage Bank, N.A.
— Salem
Salem , O hio

and
H eritage Bank, N.A.
— Hopedale
H opedale, Ohio
S um m ary rep o rt by A tto rn e y G eneral,
J a n u ary 5, 1979
The c o n s o lid a tin g b a n ks are all w hollyo w ned su b sid ia rie s of the sam e b a n k h o ld in g

BANK ABSORPTIONS APPROVED BY THE CORPORATION
c o m p a n y. As such, their p ro p o s e d c o n s o li­
dation is e sse n tia lly a c o rp o ra te re o rg a n iza ­
tion a nd w o u ld have no e ffe ct on co m p e titio n .
Basis fo r C o rp o ra tio n A p p ro va l
A p ril 2, 1979
H e rita g e B a n k , N .A . — S te u b e n v ille ,
S teubenville, O hio (“ S te u b e n v ille ” ), with total
assets of $1 2 9,7 3 5 ,0 0 0 and total IPC d e ­
p o sits of $ 1 0 5,971,000, has a p p lie d , p u r­
suant to S ection 18(c) and other p ro visio n s of
the Federal D e p o sit In su ra n ce A ct, fo r c o n ­
sent to c o n s o lid a te w ith H e rita g e Bank, N.A.
— Salem , Salem , O hio (“ S a le m ” ), with total
assets of $ 7 5 ,0 0 0 ,0 0 0 and total IPC d e p o sits
of $64,217,000, and with H e rita g e Bank, N.A.
— H o p e d a le , H o p e d a le , O hio (“ H o p e d a le ” ),
with total assets of $ 1 4 ,010,000 and total IPC
d e p o s its of $11,453,000, u n d er a new state
charter, with the title, “ H e rita g e B a n k,” and to
e sta blish the e ig h t o ffice s of Salem and the
th re e o ffice s of H o p e d a le as b ra n ch e s of the
resulting bank. In c id e n t to the tra n sa ctio n ,
the T oronto O ffice of S te u b e n ville will be
re d e s ig n a te d as the m ain o ffice of the re su lt­
ing ba n k w h ich w o u ld o p e ra te with a total of
19 offices.
Competition. E ssentially a c o rp o ra te reo r­
g a n izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w h ich First S teuben B a n co rp, Inc.,
Toronto, O hio, a re g iste re d b a n k h o ld in g
c o m p a n y, m ay c o n s o lid a te its o p e ra tio n s in
Harrison, C o lu m b ia n a , and Jefferson C o u n ­
ties, Ohio. The p ro p o n e n ts have been u n d e r
co m m o n c o n tro l sin ce 1975, and th e ir p ro ­
po se d co n s o lid a tio n w o u ld not a ffe ct the
stru ctu re of c o m m e rc ia l b a n kin g or the c o n ­
ce n tra tio n of b a n k in g reso u rce s w ithin the
relevant m arket.
The Board of D ire cto rs is of the op in io n that
the tra n s a c tio n w o u ld not, in any se ctio n of
the country, s u b s ta n tia lly lessen co m p e titio n ,
tend to cre a te a m o n o p o ly or in any o th er
m anner be in restra in t of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for p u rp o s e s of this pro p o sa l. Fi­
nancial and m an a g e ria l reso u rce s of the re­
sultant ba n k w o u ld be sa tisfa cto ry and its
fu tu re p ro s p e c ts a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. S e rvice s to be o ffe re d in the
relevant m arket by the resulting b ank w ould
not d iffe r m ate ria lly from those p re se n tly of­
fe re d by each p ro p o n e n t.
A review of a va ila b le inform ation d is c lo s e d
no in c o n s is te n c ie s w ith the p u rp o se s of the
C o m m u n ity R einvestm ent A ct. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it ne e ds of its e ntire co m m u n ity, c o n s is ­




77

tent with the safe and so u n d o p e ra tio n of the
institution.
B ased on the fo re g o in g , the Board of D i­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w a rra n te d .

Resources
(in thousands
of dollars)

Maine S aving s Bank

Banking Offices
in Operation
Before

After

4 06 ,4 1 8

12

14

10,211

2

Portland, M aine

to merge with
S outh Paris S avings
Bank
South Paris, M aine

S um m ary rep o rt by A tto rn ey G eneral,
O c to b e r 3, 1978
We have review ed this p ro p o s e d tra n s a c ­
tion and c o n c lu d e th a t it w ould not have a
sig n ifica n tly a d ve rse e ffe ct u pon c o m p e ti­
tion.
Basis for C o rp o ra tio n A p p ro va l
A p ril 2, 1979
M ain e S a v in g s B a n k, P o rtla n d , M a in e
(“ A p p lic a n t” ), an in su re d m utual sa vin g s
b ank with total re so u rce s of $4 0 6,4 1 8 ,0 0 0
and total d e p o s its of $ 3 6 4,9 8 0 ,0 0 0 , has
a p p lie d , p u rsu a n t to S ection 18(c) and other
pro visio n s of the F ederal D e p o sit In su ra n ce
A ct, for the C o rp o ra tio n ’s p rio r co n se n t to
m erge, u n d e r its c h a rte r a nd title, with South
Paris S a vin g s Bank, South Paris, M ain e
(“ SPSB” ), an in su re d m utual sa vin g s bank
with total reso u rce s of $ 1 0 ,2 1 1 ,0 0 0 and total
d e p o sits of $9,363,000. In c id e n t to the tra n s ­
a ction, the tw o o ffice s of SPSB w o u ld be
e sta b lish e d as b ra n ch e s of A p p lic a n t. In a
co m p a n io n p ro p o sa l, A p p lic a n t also seeks
the C o rp o ra tio n ’s co n se n t to e sta blish a de
novo b ra n ch in the O xfo rd Plains S h o p p in g
Center, O xfo rd , M aine, w h ich is in clo se
pro xim ity to the tw o e xisting o ffice s of SPSB.
Competition. A p p lic a n t, b a se d in P ortland,
o p e ra te s 12 o ffice s in fo u r co u n tie s of central
and southern M aine, and has re ce ive d a p ­
p ro p ria te re g u la to ry a p p ro va l to e sta blish a
de novo b ra n ch in B a n g o r a p p ro x im a te ly 135
m iles n ortheast of P ortland. W hile the m ajority
of A p p lic a n t’s o ffice s are ce n te re d in the
u rb a n iz e d a re a s of c o a s ta l C u m b e rla n d
County, all b u t one of the b ra n ch e s o p e n e d
sin ce 1974 have been e sta b lish e d in m ore
d ista n t m arkets. SPSB, h e a d q u a rte re d in

78

FEDERAL DEPOSIT INSURANCE CORPORATION

South Paris, o p e ra te s a sin g le b ra n ch lo­
ca te d in South Paris V illage, a p p ro xim a te ly 2
road m iles w est of its m ain o ffice and 2 road
m iles east of A p p lic a n t’s p ro p o s e d O xford
b ranch.
The relevant m arket in w hich to a ssess the
c o m p e titiv e im p a c t of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the area w ithin an a p ­
p ro xim a te 15 roa d -m ile radius of South Paris,
e n c o m p a s s in g so u the a ste rn O xford C ounty
and sm all p o rtio n s of a d jo in in g A n d ro s c o g ­
gin and C u m b e rla n d Counties. This area,
c o n ta in in g a sta b le p o p ula tio n b a se e sti­
m a te d at a p p ro x im a te ly 15,00 0 , has an
e c o n o m y p re d ic a te d upon d a iry fa rm in g ,
light m a n u fa c tu rin g , lu m b e r and w o o d p ro d ­
ucts. R ecent g ro w th has been m ost p ro ­
n o u nce d in th e n e a rb y tow n of O xford.
In the relevant m arket, a total of th re e thrift
institutions o p e ra te five offices. SPSB, w h ich
holds a 22.8 p e rc e n t m arket share of the
d e p o sits held by such institutions, is s ig n ifi­
ca n tly sm aller than N orw ay Savings Bank,
w hich d o m in a te s the local m arket, ho ld in g
72.4 p e rc e n t of the th rift institution d e p o sits.
Bethel Savings Bank, b a se d in Bethel a p ­
p ro xim a te ly 25 road m iles north of South
Paris, has o p e n e d tw o o ffice s in this m arket
since 1975. To date, those b ra n ch e s have
been u n a ble to m ake a s ig n ific a n t p e n e tra ­
tion in d o lla r volum e of d e p osits. As A p p lic ­
ant is not re p re s e n te d in this m arket and the
p ro p o n e n ts ’ n earest o ffice s are lo ca ted a p ­
p ro xim a te ly 30 road m iles apart, d ire c t c o m ­
p etition betw e en the tw o institutions a p p e a rs
to be m inim al. The p ro p o se d tra n sa ctio n
w ould have no s ig n ific a n t e ffe ct on existing
co m p e titio n betw e en the tw o institutio n s or
upon the s tru c tu re of th rift in s titu tio n ba n king
in the rele va n t m arket.
A p p lic a n t is M a in e ’s la rg e st m utual sa v­
ings b a n k h o ld in g 17.1 p e rce n t of the s ta te ’s
total m utual s a vin g s b a n k d e p osits, a share
s ig n ific a n tly h ig h er than the sta te ’s se co n d
and th ird la rg e st such institutions. Its a c q u is ­
ition of SPSB, w h ich holds a m od e st 0.4
p e rce n t of such fu n d s in the state, w o u ld a d d
to this c o n ce n tra tio n ; how ever, such an a d d i­
tion is not re g a rd e d as having a sig n ific a n t
co m p e titiv e im pa ct.
M a in e s ta tu te s p ro v id e fo r s ta te w id e
b ra n c h in g a c tiv ity . SPSB has h is to ric a lly
chosen to serve its local com m unity, and as
one of the s ta te ’s sm aller m utual sa vin g s
banks, d o e s not po sse ss the reso u rce s to
e m b a rk upon any m ea n in g fu l e xp a nsio n into
new m arkets. A p p lic a n t, on the oth er hand,
with a re co rd of a g g re s s iv e b ra n ch d e v e lo p ­
m ent, m ust be re g a rd e d as a p o ten tia l de
novo e ntrant to the South P aris-N orw ay m ar­
ket.




The c o m p a n io n p ro p o sa l of A p p lic a n t to
e stablish a de novo b ra n ch in a new sh o p ­
ping ce n te r in the a d jo in in g tow n of O xford is
re g a rd e d as an in te gra l p a rt of this tra n s a c ­
tion. The u n im p re s s iv e g ro w th re c o rd of
an o th e r th rift in s titu tio n ’s re ce n t de novo
entry into the South P a ris-N orw a y m arket
a d d s som e s u p p o rt to A p p lic a n t's co n ten tio n
that de novo entry to th is relatively sta b le
local m arket w o u ld not be e c o n o m ic a lly a t­
tractive . W hile it w o u ld be p re fe ra b le , from a
co m p e titive sta n d p o in t, to have both A p p li­
ca n t and SPSB re p re se n te d in this local m ar­
ket, in the a b s e n c e of the p ro p o s e d tra n s a c ­
tion, A p p lic a n t is un likely to e xp a n d into this
area in the fo re se e a b le future. In such a light,
the loss of the poten tia l for fu tu re co m p e titio n
to d e ve lo p betw e en the p ro p o n e n ts is not
re g a rd e d as having any s ig n ific a n t a d ve rse
co m p e titive co n se q u e n ce .
The Board of D ire cto rs is of the o p in io n that
the p ro p o s e d m e rg e r w ould not, in any s e c ­
tion of the co u n try, s u b sta n tia lly lessen c o m ­
petition, te n d to c re a te a m on o p o ly or in any
other m anner be in restra in t of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a n cia l and m an agerial
reso u rce s of both p ro p o n e n ts are re g a rd e d
as sa tisfa cto ry and the resu lta n t institution is
a n tic ip a te d to have fa vo ra b le fu tu re p ro s ­
pects.

Convenience and Needs of the Community
to be Served. The p re se n t rate stru ctu re s and
fee sch e d u le s on d e p o sit and loan a cco u n ts
at SPSB, are m ore fa vo ra b le to thrift c u s to m ­
ers than th o se w h ich w o u ld be o ffe re d by
A p p lic a n t a n d th e re s u lta n t in s titu tio n .
A p p lic a n t does, how ever, offer a b ro a d e r
range of thrift institution se rvice s than are
p re se n tly a va ilab le at SPSB, in c lu d in g a full
ran g e of tim e and p e rsonal ch e c k in g d e p o sit
a c c o u n ts , h ig h e r le n d in g lim its, and e x ­
p a n d e d m o rtg a g e loan a ctivitie s. On b a l­
ance, c o n sid e ra tio n s relating to the c o n ve n i­
e n ce and needs of the co m m u n ity a p p e a r
c o n siste n t w ith a p p ro va l of the a p p lica tio n .
A review of a va ilab le inform ation, in clu d in g
the C o m m u n ity R ein ve stm e n t A c t S tatem ents
of the tw o re sp e ctive in stitutio n s and other
relevant m aterial, d is c lo s e d no in co n siste n ­
cies with the p u rp o se s of the A ct. The resu l­
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it ne e ds of its entire com m unity,
co n siste n t w ith the safe and sound o p e ra tio n
of the institution.
B ased on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w a rra n te d .

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

N o rth ern C entral
Bank

Banking Offices
in Operation
Before

After

278,621

17

19

16,892

2

W illiam sport,
P ennsylvania

to merge with
The F irst N ational
Bank o f M illv ille
M illville,
Pennsylvania
Sum m ary rep o rt by A tto rn e y G eneral,
Ja n u ary 15, 1979
O verall, in our view , the p ro p o s e d tra n s a c ­
tion w ould not have a s ig n ific a n tly a d ve rse
c o m p e titiv e e ffect.
Basis fo r C o rp o ra tio n A p p ro va l
Ap ril 2, 1979
N o rth e rn C e n tra l B a n k , W illia m s p o r t,
P e nnsylvania (“ N o rth e rn ” ), an insu re d State
n o n m e m b e r b a n k w ith total re so u rce s of
$ 2 7 8 ,6 2 1 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 220,863,000, has a p p lie d , p u rsu a n t to S e c­
tion 1 8 (c) a nd other p ro visio n s of the F ederal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
prio r co n s e n t to m e rg e w ith The First N ational
B a n k o f M illv ille , M illv ille , P e n n s y lv a n ia
(“ M illv ille ” ), w ith
to ta l
re s o u rc e s
of
$ 1 6 ,8 9 2 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 1 4 ,3 9 3 ,0 0 0 . T he se b a n ks w o u ld m e rg e
u n d er the c h a rte r a nd title of N orthern and
the tw o o ffic e s of M illville w o uld be e s ta b ­
lished as b ra n c h e s of the resultant bank,
w h ich w o u ld c o m m e n c e o p e ra tio n with a total
of 19 offices.
Competition. N o rthern o p e ra te s 17 o ffice s:
six, in c lu d in g its m ain o ffice in L yco m in g
County; one in B ra d fo rd County; e ig h t in
N o rth u m b e rla n d C ounty; and tw o in Sullivan
C ounty. M illv ille ’s m ain o ffice is lo ca ted in
C o lu m b ia C ounty a nd it o p e ra te s one b ra n ch ,
a p p ro x im a te ly 14 m iles from its m ain office, in
Lyco m in g C ounty. The m ain o ffice s of the tw o
ba n ks are a p p ro x im a te ly 34 road m iles a p a rt
but their nearest o ffices, the L ycom ing Mall
B ra n c h of N o rth e rn a n d th e C la rk s to w n
B ranch of M illville, are s e p a ra te d by only 7
road m iles.
The tw o o ffic e s of M illville o p e ra te in
s e p a ra te m arkets. The C larkstow n o ffice is
a p p ro x im a te ly 15 m iles from W illia m sp o rt
and its m arket in c lu d e s areas lo ca te d w ithin
10 to 12 m iles of C larkstow n, as well as the
city of W illia m sp o rt. N orthern has five o ffices
lo ca ted w ithin this m arket and is the d o m in ­




79

ant bank h o ld in g 31.2 p e rc e n t of the IPC
d e p osits. In sp ite of this, the e ffe ct on c o m ­
petitio n in this m arket w o u ld be n e g lig ib le
sin ce the C la rksto w n o ffice of M illville (e sta b ­
lished in 1975) has less than $ 7 00,000 in total
IPC d e p osits.
The c o m p e titiv e im p a c t of the p ro p o sa l
w ould be m ost im m e d ia te and d ire c t in the
area se rve d by the m ain o ffice of M illville.
This m arket are a e xte n d s a p p ro x im a te ly 10
to 12 road m iles from the b o ro u g h of M illville.
W hile the area is la rg e ly a g ricu ltu ra l, the
in d u stria lize d tow n of B lo o m sb u rg is lo ca te d
on the p e rim e te r of the m arket. The 1970
p o p ula tio n of the area w as 3 6 ,59 8 and the
town of B lo o m sb urg a c c o u n te d for 11,652 of
the total. There are 20 o ffice s of e ig h t co m ­
m ercial ba n ks se rvin g the area. N orthern is
not re p re se n te d in the m arket, and M illville
has the sm alle st share of IPC d e p o s its in the
area (6.0 p e rce n t). There d o e s not a p p e a r to
be any existing co m p e titio n b etw een the
p ro p o n e n ts w ithin this m arket. B e ca u se of
the lim ited p o p u la tio n of the M illville m arket it
is u nlikely th a t any su b stan tia l co m p e titio n
will d e ve lo p b e tw e en the tw o institutions.
U n der P e nnsylvania b a n king law, b ra n c h ­
ing is p e rm itte d in a b a n k ’s hom e c o u n ty and
all c o n tig u o u s co u n tie s. W ithin the 1 0 -co u n ty
region in w h ich N orthern m ay e xp a n d , a total
of 52 co m m e rcia l ba n ks o p e ra te 164 o ffice s
and
h o ld
d e p o s its
a g g r e g a t in g
$1,936,000,000. W hile N orthern h olds the
larg e st share of d e p o s its in the area (12.2
p e rce n t), the d e p o s it stru ctu re is relatively
u n co n ce n tra te d , w ith the 10 la rg e st banks
co n tro llin g slig h tly over 50 p e rc e n t of the
co m m e rcial b a n k d e p o sits. This p ro p o sa l
w ould in cre a se N o rth e rn ’s sh a re to 13 p e r­
cent. It d o e s not a p p e a r that the p ro p o sa l
would have any s ig n ific a n t a d ve rse e ffe ct on
the co n ce n tra tio n of b a n kin g re so u rce s or the
stru ctu re of co m m e rcia l b a n kin g in this rele ­
vant area.
U nder th e se circ u m s ta n c e s , the Board of
D irectors is of the o p in io n th a t the p ro p o s e d
m erg e r w o u ld not, in any se ctio n of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , te n d to
crea te a m on o p o ly, or in any other m anner be
in restraint of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. Both N orthern and M illville
have sa tisfa cto ry fin a n cia l and m an agerial
resources, and th e ir fu tu re p ro s p e c ts are
fa vo ra b le . The resultant ba n k sh o u ld also
have sa tisfa cto ry fin a n cia l and m an a g e ria l
resources and fa vo ra b le fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. The resultant b a n k will offer a
g re a te r va rie ty of d e p o s it se rvice s, tru st se r­
vices, and m ore so p h is tic a te d le n d in g se r­

80

FEDERAL DEPOSIT INSURANCE CORPORATION

vice s than are p re se n tly being o ffe re d by
M illville. W hile other b a n king o ffice s lo ca te d
in the tra d e area also p ro vid e th e se se rvice s,
none of these b a n king o ffice s are in the
im m e d ia te M illville area. The resultant b a n k
will th e re fo re be a b le to p ro vid e m ore c o n ­
ve n ie nt se rvice s to the local area and also be
b e tter a b le to c o m p e te with b ra n ch e s of
la rg e r banks in the s u rro u n d in g area.
A review of a va ila b le in form ation, in clu d in g
the C o m m u n ity R einvestm ent A ct S ta te m en ts
of the tw o re s p e c tiv e institutio n s and o ther
relevant m aterial, d is c lo se d no in c o n s is te n ­
cies with the p u rp o s e s of the A ct. The resu l­
ta n t institutio n is e x p e c te d to co n tin u e to
m eet the c re d it needs of its entire co m m u n ity,
c o n s is te n t w ith the safe and so u n d o p e ra tio n
of the institution.
B ased on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .

Resources
(in thousands
of dollars)

Central C o un tie s
Bank

Banking Offices
in Operation
Before

After

310,794

25

26

18,000

1

State College,
P ennsylvania

to merge with
The U nion N ational
Bank o f L e w isb urg
Lew isburg,
Pennsylvania
S um m ary rep o rt by A tto rn ey G eneral,
Ja n u ary 19, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w ould not have a
sub stan tia l c o m p e titiv e im pact.

Basis fo r C o rpo ra tion A p p ro val
A p ril 9, 1979
C e n tra l C o u n tie s Bank, S tate C o lle g e ,
P e n n sylva n ia (“ C entral C o u n tie s ” ), an in­
s ured State n o n m e m b er bank with total re­
s o u rce s of $ 3 1 0,7 9 4 ,0 0 0 and total IPC d e ­
p osits of $ 2 5 9,637,000, has a p p lie d , p u r­
suant to S ection 18(c) and other p ro visio n s of
the Federal D e p o sit In su ra n ce Act, for the
C o rp o ra tio n ’s p rio r c o n se n t to m erge, u n d er
its c h a rte r and title, w ith The Union N ational




Bank of Lew isb urg , Lew isb urg , P ennsylvania
(“ Union N a tio n a l” ), with total reso u rce s of
$ 1 8 ,0 0 0 ,0 0 0 a n d to ta l IPC d e p o s its o f
$ 15,876,000. In cid en t to the m erger, the sole
o ffice of Union National w ould b e co m e a
b ra n ch of the resultant bank, in cre a sin g the
n u m b e r of its a u thorized o ffice s to 26.
Competition. C entral C ounties o p e ra te s 25
offices: its m ain o ffice and six b ra n ch e s in
C entre County, ten b ra n ch e s in Blair C ounty,
four b ra n ch e s in C linton C ounty and four
b ra n ch e s in M ifflin County. Union National
o p e ra te s its sole o ffice in L e w isb urg , Union
County, w hich is situ a te d im m e d ia tely east of
C entre County.
The e ffe cts of the p ro p o se d m erg e r w ould
be m ost p ro n o u n ce d in Union N a tio n a l’s
m arket, w h ich co n sists of e a stern Union
C ounty and the a d jo in in g p o rtio n s of Nor­
th u m b e rla n d C ounty w ithin a b o ut 12 road
m iles of Lew isb urg . The area is la rg e ly fo re st
land with a d d itio n a l land d e vo te d to a g ric u l­
ture. L ig h t industry, a F ederal p e nitentiary,
and B ucknell University, with an e n ro llm e nt of
a p p r o x im a te ly 3 ,3 0 0 , a ffo rd a d d itio n a l
e m p lo ym e n t for the area residents. The ef­
fe ctive bu yin g incom e of Union C ounty in
1977 w as 8.5 p e rce n t b e lo w that of the state.
U nion National is one of tw elve banks
o p e a tin g a total of 21 o ffice s in this relevant
m arket and holds the ninth la rg e st share, 6.8
p e rce n t, of the IPC d e p o sits held by area
o ffice s of these banks. C onsum m ation of the
p ro p o s e d m erg e r w ould have little e ffe ct
upon the structu re of co m m e rcial ba n king in
the relevant m arket, as C entral C ounties is
not now rep re se n te d there.
A lth o u g h Union County and C entre County
are co n tigu o u s, there is no o ve rla p p in g of
se rvice areas as they are se p a ra te d by a
p ortio n of the A p p a la c h ia n Range and by
state fo re st lands. The clo se st o ffice of C en­
tral C ounties to Union N a tio n a l’s sole o ffice is
som e 34 m iles in d ista n ce . The p ro p o se d
tra n sa ctio n w ould have no s ig n ific a n t effe ct
on existing co m p e titio n betw e en the tw o in­
stitutions.
Pennsylvania law pe rm its a co m m e rcial
bank to b ranch de novo or m erg e w ithin its
hom e o ffice co u n ty and all co n tig u o u s co u n ­
ties. C entral C ounties can thus enter Union
C ounty de novo, and Union National m ay
sim ilarly enter C entre C ounty. Union National
has h isto rica lly co n fine d its o p e ra tio n to a
local m arket and does not p ossess the re­
s o u rce s n e ce ssary to e x p a n d into m ore d is ­
tant m arkets. Union County, with a stable
po p u la tio n base and a la rg e n u m ber of es­
ta b lish e d co m m e rcial banks, w ould a p p e a r
to hold only lim ited a ttra ctio n for de novo
entry by Central C ounties. The co u n ty w o uld

BANK ABSORPTIONS APPROVED BY THE CORPORATION
co n tin u e to enjoy a co m p e titive b a n king c li­
m ate su b s e q u e n t to c o n su m m a tion of the
p ro p o s e d tran sa ctio n , and the loss of som e
p oten tia l for the d e v e lo p m e n t of fu tu re c o m ­
p e tition betw e en the p ro p o n e n ts is not re­
g a rd e d as having any sig n ifica n t co m p e titive
im pact.
C entral C ounties is the se co n d larg e st of
the 41 c o m m e rcia l banks rep re se n te d in its
legal b ra n c h in g area with 15.0 p e rce n t of the
a re a ’s d e p o s its held by such banks. The
p ro p o s e d m erg e r w o uld in cre a se to 15.9
p e rc e n t C entral C o u n tie s’ d e p o s it share in
this area. Sim ilarly, the a cq u isitio n of Union
N ational w o uld not m aterially a ffe ct Central
C o u n tie s ’ share of the s ta te ’s co m m e rcial
b a n k d e p o s its w h ich w ould rem ain at less
than one p e rce n t.
B ased on the fo re g o in g , the Board of Di­
recto rs is of the o p in io n that the p ro p o se d
m erg e r w ould not, in any section of the c o u n ­
try, s u b sta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any other m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. Both banks have sa tisfa cto ry
fin a n cia l and m an agerial resources, as w ould
the resultant b ank w hich is a n ticip a te d to
have fa v o ra b le fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould
brin g into the L e w isb urg m arket, the se rvice s
of a n other of the re g io n ’s m ajor banks. The
resultant b a n k w o u ld offer a g re a te r va rie ty of
d e p o s it and loan services; m ore intensive
m arke tin g of co n su m e r le n d in g , in clu d in g
d e a ler fin a n c in g ; and a sig n ifica n tly larger
legal le n d in g limit. C o n sid era tio ns relating to
co n v e n ie n c e and n eeds of the co m m u n ity
a p p e a r co n s is te n t w ith a p p ro va l of the a p p li­
cation.
A review of ava ilab le inform ation d isclo se d
no in c o n s is te n c ie s with the p u rp o se s of the
C o m m u n ity R einvestm ent A ct. The resultant
ba n k is e x p e c te d to co n tin u e to m eet the
c re d it needs of its e ntire co m m u n ity, co n sis­
tent with the safe and sound op e ra tio n of the
bank.
Based on the fo re g o in g , the Board of Di­
recto rs has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .




81

Resources
(in thousands
of dollars)

Bankers T ru s t of
S outh C arolina

Banking Offices
in Operation
Before

6 8 4,765

89

40 ,744

After

97

8

C olum bia, South
Carolina

to merge with
The Peoples Bank o f
S outh C arolina,
Inc.
Florence, South
C arolina

S um m ary re p o rt by A tto rn e y G eneral,
F eb ru a ry 9, 1979
We have review ed the p ro p o sa l, and c o n ­
clu d e d th a t it is p e rm issib le .
Basis fo r C o rp o ra tio n A p p ro va l
A p ril 23, 1979
Bankers T rust of South C arolina, C olum bia,
South C arolina (“ B ankers T ru s t” ), an insured
State n o n m e m b er b a n k w ith total reso u rce s
of $ 6 8 4,765,000 and total I PC d e p o sits of
$497,656,000, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and o th er p ro visio n s of the Federal
D eposit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r co n se n t to m erge, u n d e r its ch a rte r and
title , w ith T he P e o p le s B a n k o f S o u th
C a ro lin a , In c., F lo re n c e , S o u th C a ro lin a
(“ P eoples B a n k” ), w ith total reso u rce s of
$ 4 0 ,7 4 4 ,0 0 0 a n d to ta l IPC d e p o s its of
$34,235,000. In cid e n t to th e tra n sa ctio n , the
e ig h t o ffice s of P eoples B ank w o u ld be e s­
ta b lish e d as b ra n ch e s of the resu lta n t bank.
Competition. B ankers Trust, b a se d in C ol­
u m bia, o p e ra te s 89 fu ll-s e rv ic e o ffice s in 18
co u n tie s of ce n tra l a n d so u thw este rn South
Carolina. It has been a p a rty to 16 m erg e r
tran sa ctio n s with c o m m e rc ia l ba n ks sin ce
1 9 5 5 a n d h a s p u rs u e d an a g g re s s iv e
b ra n ch in g p o licy. A w h o lly-o w n e d m o rtg a g e
su b sid ia ry, A ike n -S p e ir, Inc., is h e a d q u a r­
te re d in C o lu m b ia w ith its se rvice h e a d q u a r­
ters lo ca ted in F lorence. B usiness o ffice s of
this su b sid ia ry, w h ich se rv ic e a m o rtg a g e
loan p o rtfo lio of a p p ro x im a te ly $381,0 0 0 ,0 0 0
(D e ce m b e r 31, 1978), are m a in ta in e d in
C harleston, C o lu m b ia , F lo re n ce and G ree n ­
ville, South C arolina, a nd C harlotte, North
C arolina.
P eoples Bank w as o rg a n iz e d in 1965 and
o p e ra te s a total of e ig h t o ffice s in fo u r c o u n ­
ties of n o rth e a ste rn South C a rolin a . The
p rim a ry s e rv ic e a re a s of P e o p le s Bank,
w hich are re g a rd e d as the rele va n t m arkets
in w hich to assess the co m p e titiv e im p a c t of

82

FEDERAL DEPOSIT INSURANCE CORPORATION

the p ro p o s e d tran sa ctio n , are d e lin e a te d as
follow s: (1) the Florence m arket, a p p ro x i­
m ated by a 15 roa d -m ile radius of the city of
F lorence, in w hich three o ffice s are o p e ra te d ;
(2) the Sum ter m arket, a p p ro x im a te d by a 15
roa d -m ile radius of the city of Sum ter, in
w hich one o ffic e is o p e ra te d ; and, (3) the
M yrtle B each m arket, co n sistin g of a narrow
band of o ce a n fro n t co m m u n ities in H orry
C ounty, in w h ich th re e o ffice s are o p e ra te d .
In the F lorence, Sum ter and M yrtle B each
relevant m arkets, P eoples Bank holds 10.4
p e rce n t, 2.9 p e rc e n t and 7.7 p e rce n t of the
re sp e ctive m a rk e ts ’ IPC d e p o sit base. In the
Sum ter and M yrtle B each m arkets, Peoples
Bank is the sm alle st co m m e rcia l ba n k re p ­
resented, w hile it ranks as the fifth la rg e st of
e ig h t c o m m e rc ia l ba n ks in the F lo re n ce m ar­
ket w here it is h e a d q u a rte re d . In each of
these m arkets, the s ta te ’s tw o la rg e st c o m ­
m ercial b a n ks hold m arket shares s ig n ifi­
ca n tly la rg e r than th o se held by P eoples
Bank, w hose a c q u is itio n by Bankers T rust is
view ed as having no m aterial a d ve rse e ffe ct
upon the s tru c tu re of c o m m e rcia l ban king in
these relevant m arkets.
Peoples B a n k’s L y n ch b u rg office, lo ca ted
in the southern portio n of rural Lee County,
a p p ro x im a te ly 20 m iles so u thw est of Flor­
ence, is re g a rd e d as serving a sm all local
co m m u n ity as it is th e o n ly c o m m e rc ia l
b an king o ffic e for a d is ta n c e of m ore than 10
road m iles. In lig h t of the m od e st vo lu m e of
d e p o s its held by this o ffice, the p ro p o s e d
tra n s a c tio n w o u ld have little e ffe c t u p o n
c o m p e titio n or b a n king stru ctu re in th is rela­
tively lo ca lize d , rural area.
The p ro p o n e n ts are not cu rre n tly e n g a g e d
in any m aterial d ire c t c o m p e titio n as th e ir
c lo se st o ffic e s are lo ca ted m ore than 40 road
m ile s a p a rt in c o n tig u o u s R ich la n d a n d
Sum ter C ounties. The m erg e r of Bankers
Trust and P eoples Bank is thus re g a rd e d as
h a v in g no s ig n ific a n t a d v e rs e e ffe c t on
e xisting co m p e titio n .
As South Carolina statutes perm it statew ide
de novo b ra n c h in g and m erg e r a ctivity, s u b ­
je c t to ce rta in m inim um ca p ita liza tio n re­
quirem ents, each p ro p o n e n t has the p o te n ­
tial to b ra n ch into the areas now served by
the other. P eoples Bank, how ever, has fa iled
to ca p tu re a s ig n ific a n t share of d e p o sits in
any new m arket it has e n tere d and has not
e sta b lish e d a de novo b ra n ch sin ce June,
1974. B ankers Trust, w h ich posse sses the
re s o u rc e s a nd e x p e rie n c e n e ce ssa ry fo r
s ta te w ide b ra n c h in g , has co n ce n tra te d its
e fforts on the p rin c ip a l m arkets in the central
and so u thw este rn p o rtio n of the state. Ex­
p ansion into the n o rth e a st portio n of South
C arolina, and S um ter C ounty in p a rticu la r,




m ust be re g a rd e d as a lo g ical step at som e
p oint in tim e. Bankers T ru st’s a c q u isitio n of
Peoples Bank, how ever, with its relatively
m od e st m arket shares in areas w here the
sta te ’s tw o la rg e st b a n ks are firm ly e s ta b ­
lished, w o uld not result in the loss of any
sig n ifica n t p otential for fu tu re co m p e titio n
betw een the p ro p o n e n ts.
B ankers Trust is cu rre n tly the fourth largest
co m m e rcial ba n k in South C arolina, h o ld in g
11.3 p e rc e n t of the s ta te ’s total co m m e rcial
b ank d e p o sits. Its a cq u isitio n of Peoples
Bank, the s ta te ’s 2 2nd la rg e st co m m e rcial
bank h o ld in g a m od e st 0.7 p e rc e n t of such
fu n ds, w o u ld serve to in cre a se the levels of
sta te w ide c o n ce n tra tio n of co m m e rcial b a n k
d e p osits, how ever, such a m o d e st in cre a se
is not re g a rd e d as ha vin g any m ajor im p a ct
upon co m m e rcial ba n king or the co n c e n tra ­
tion of b a n king reso u rce s in South Carolina.
The B oard of D ire cto rs is of the op in io n that
the p ro p o se d m erg e r w o u ld not, in any s e c ­
tion of the co u n try, su b sta n tia lly lessen c o m ­
petition, tend to cre a te a m on o p o ly or in any
o ther m anner be in restra in t of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a n cia l and m anagerial
reso u rce s of both p ro p o n e n ts are re g a rd e d
as sa tisfa cto ry and the resultant bank is a n ­
tic ip a te d to have fa vo ra b le fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. The p ro p o s e d tran sa ctio n will
result in a b ro a d e r ran g e of co m m e rcial
ban king se rvice s a va ila b le to the p re se n t
cu sto m e rs of Peoples Bank. W hile such se r­
vic e s are g e n e ra lly a va ila b le at o ffices of
regional and sta te w ide ba n ks in the areas
now served by P eoples Bank, co n su m m a tion
of the p ro p o se d tra n sa ctio n will p ro vid e an
a d d itio n a l a lternative so u rce of such se r­
vice s. C o n sid e ra tio n s rela tin g to co n ve n i­
e n ce and needs of the co m m u n ity are c o n ­
sistent with a p p ro va l of the a p p lica tio n .
A review of a va ilab le info rm a tio n , in clu d in g
the C o m m u n ity R e investm ent A ct S ta te m en ts
of the tw o p ro p o n e n ts and o ther relevant
m aterial, d isclo se d no in co n siste n cie s with
the p u rp o se s of the Act. The resultant b a n k is
e xp e c te d to co n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the in stitu ­
tion.
Based on the fo re g o in g , the B oard of D i­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w arra n te d .

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

N o rth ea st Bank o f
L e w isto n and
A u b u rn

105,030

Banking Offices
in Operation
Before

After

11

13

Lew iston, M aine

to purchase the assets and
assume the deposit liabilities
of
A u g u sta and
W aterville
B ranches of
L iverm ore Falls
T ru s t Com pany

3 ,9 10 *

2

L iverm ore Falls,
M aine
* Total IPC d e p o sits of office s to be tra n s fe rre d by
Live rm o re Falls T ru st C o m pa ny. A ss e ts not ava ila b le
by office.

S um m ary rep o rt by A tto rn ey G eneral,
July 31, 1978
W e have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w ould not have a
s ig n ific a n tly a d ve rse e ffe ct upon c o m p e ti­
tion.
Basis for C o rpo ra tion A p p ro va l
M ay 7, 1979
N ortheast Bank of Lew iston and A uburn,
Lew iston, M aine (“ N ortheast B a n k” ), an in­
sured State n o n m e m b er bank with total re­
s o u rce s of $ 1 0 5,0 3 0 ,0 0 0 and total IPC d e ­
p o s its o f $ 8 1 ,9 0 6 ,0 0 0 , h a s a p p lie d ,
p u rs u a n tto Section 18(c) and o th er provisions
of the Federal D e p o sit Insurance Act, for the
C o rp o ra tio n ’s p rio r co n s e n t to p u rch a se the
assets of and assum e the lia b ility to pay
d e p o s its m ade in the A u g u sta and W aterville
b ra n ch e s of Liverm ore Falls Trust C om pany,
Liverm ore Falls, M aine (“ O ther B a n k” ). The
A u g u s ta and W aterville o ffice s of O ther Bank,
w ith a g g r e g a te to ta l IPC d e p o s its of
$ 3 ,9 1 0 ,0 0 0 , w o u ld b e e s ta b lis h e d as
b ra n ch e s of N ortheast Bank, in cre a sin g to 13
the n u m b e r of ba n king o ffices o p e ra te d .
N ortheast Bank is a s u b sid ia ry of N ortheast
B a n k s h a re A s s o c ia tio n , L e w isto n , M aine
(“ B a n k s h a re ” ), a m u lti-b a n k h o ld in g co m ­
p any c o n tro llin g e ig h t co m m e rcial banks in
M a in e
w ith
a g g r e g a te
d e p o s its
of
$ 3 2 6,7 2 6 ,0 0 0, ranking it as the s ta te ’s fourth
la rg e st c o m m e rc ia l b a n kin g o rg a n iza tio n,
with 13.0 p e rc e n t of the s ta te ’s co m m ercial
b a n k d e p o sits. B ankshare affiliates o p e ra te a
total of 44 o ffice s in e ig h t co u n tie s and are
m ost heavily re p re se n te d in A n d ro sco g g in ,
C u m b e rla n d and P e n o b sco t Counties. O ther
Bank p re se n tly o p e ra te s o ffices at Liverm ore




83

Falls and the a d jo in in g co m m u n ity of Jay in
w e st-ce n tra l Maine, and b ra n ch e s at A u ­
g u sta and W aterville w hich are the s u b je c t of
the cu rre n t p roposal. A b ra n ch at C hisholm ,
near Jay, w as clo se d in early 1978. The
A u g u sta and W aterville o ffice s are lo ca ted in
K e n n e b e c County, a p p ro xim a te ly 28 road
m iles southeast and 50 road m iles northeast
of Liverm ore Falls, resp e ctive ly, and are d e ­
em ed to c o m p e te in se p a ra te local m arkets.
Competition. The A u g u sta o ffice to be a c ­
q u ire d is lo ca ted in a s h o p p in g ce n ter on a
m ajor co m m e rcial street in the s ta te ’s capital
city (1970 p o p ula tio n 21,945) and co m p e te s
in a relevant m arket c o m p o s e d of the city of
A u g u sta and su rro u n d in g co m m u n ities w ithin
an a p p ro xim a te 10 m ile radius. The local
e co n om y is p rin c ip a lly ba se d upon a ctivity at
various state g o ve rn m e n t b u re a u s and a g e n ­
cies in A u g u sta with a veterans hospital at
n e a rb y T o g u s a ls o b e in g an im p o rta n t
e co n o m ic factor.
A total of seven co m m e rcia l banks o p e ra te
21 o ffice s in this relevant m arket w h ich in­
clu d e s rep re se n ta tio n by m ost of the s ta te ’s
la rg e s t b a n k in g o r g a n iz a tio n s . N e ith e r
N ortheast Bank nor any Bankshare affiliate is
rep re se n te d in the m arket. The nearest o ffice
of N ortheast Bank, w hich is the nearest o ffice
of any B ankshare affiliate, is lo ca ted a p ­
pro xim a te ly 30 road m iles southw est, and no
s ig n ific a n t existing co m p e titio n is in e vi­
d e n ce. N ortheast Bank w o u ld a cq u ire O ther
B a n k ’s IPC d e p o s it b a se of $ 2 ,71 0 ,0 0 0 ,
w h ich re p re se n ts a nom inal 1.9 p e rc e n t
share of the A u g u sta m arket. This is seen as
having no m aterial e ffe ct on the structu re of
co m m e rcial ban king in the local m arket or on
the co n ce n tra tio n of b a n king reso u rce s in
Maine.
The W aterville o ffice to be a cq u ire d is
lo ca ted in the d o w n tow n b u siness d is tric t of
W a te rville (19 7 0 p o p u la tio n 18,192) and
co m p e te s in a relevant m arket co m p o se d of
that city and su rro u n d in g co m m u n ities w ithin
an a p p ro xim a te 10 m ile radius. The local
e co n om y is ba se d upon d ive rsifie d m an­
u fa cturin g with d a iry farm in g and recreational
activitie s p ro vid in g som e e co n o m ic stim ulus.
A total of six co m m e rcia l banks o p e ra te 15
ban king o ffices in this relevant m arket w hich
in clu de s rep re se n ta tio n by several of the
s ta te ’s la rg e st ban king org a n iza tio ns. Neither
Northeast Bank nor any B ankshare a ffiliate is
p re se n tly rep re se n te d in the m arket. The
nearest o ffice of a Bankshare affiliate is lo­
ca te d a p p ro xim a te ly 35 road m iles northw est
in F arm ington, and no sig n ifica n t existing
co m p e titio n is in e vid e n ce . N ortheast Bank
w ould a cq u ire O ther B a n k’s nom inal IPC d e ­
p o sit b ase of $ 1 ,200,000 w hich rep re se n ts a

84

FEDERAL DEPOSIT INSURANCE CORPORATION

1.7 p e rc e n t share of the W aterville co m m e r­
cial b a n king m arket. This is seen as having
no s ig n ific a n t e ffe c t on th e s tru c tu re of
c o m m e rc ia l ban king in the local m arket or on
the c o n c e n tra tio n of b a n king reso u rce s in
M aine.
M aine statutes pe rm it sta te w ide m erg e r
and de novo b ra n ch in g a ctivity and each
p ro p o n e n t, thus, has the p otential to incre a se
fu tu re c o m p e titio n by such e xp a nsio n a c tiv ­
ity. O ther Bank has o p e ra te d the A u g u sta
and W aterville o ffice s sin ce 1974 as lim ited
se rvice fa c ilitie s and a p p e a rs to lack su ffi­
cie n t fin a ncia l and m anagerial reso u rce s to
m ake a s ig n ific a n t m arket p e n e tra tio n in
either of these d ista n t m arkets. N ortheast
B a n k ’s a c q u is itio n of the A u g u sta and W ater­
ville o ffic e s of O ther Bank is vie w e d as a
m ech a n ism p e rm ittin g N ortheast Bank and
B ankshare to enter these m arkets w h e re
m ost of the s ta te ’s la rg e st ba n king o rg a n iza ­
tions are a lre a d y e sta blish e d . This a c q u is i­
tion, thus, w o u ld have no s ig n ific a n t e ffe ct on
the p o tential for fu tu re co m p e titio n betw een
the p ro p o n e n ts.
Based on the fo re g o in g , the Board of Di­
rectors is of the o p inion that the p ro p o se d
tra n sa ctio n w ould not, in any se ctio n of the
co u n try , s u b s ta n tia lly lessen co m p e titio n ,
tend to c re a te a m onopoly, or in any other
m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of N ortheast Bank a p p e a r su ffi­
cie n t to s u p p o rt the a cq u isitio n of these tw o
b ra n c h e s and the resultant bank is a n tic i­
p a ted to have fa v o ra b le futu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. N ortheast Bank p ro p o se s to
u p g ra d e the A u g u s ta and W aterville o ffices
to full se rv ic e c o m m e rcia l ba n k b ra n ch e s
p ro v id in g a nu m b e r of se rvice s not p re se n tly
a va ilab le at O ther B a n k’s existing fa cilitie s.
W hile such se rvice s are ava ilab le in both
A u g u s ta and W aterville at offices of other
banks, N o rth e a st B a n k’s entry into these
co m m u n itie s will p ro v id e an a d d itio n a l a lte r­
nate so u rc e of such co m m e rcial ba n king
services. C o n sid era tio ns of c o n ve n ie n ce and
ne e ds of the c o m m u n ities to be served a d d
som e w e ig h t in fa vo r of a p p ro va l of the p ro ­
p o se d tran sa ctio n .
A review of a va ilab le inform ation, in c lu d in g
the p ro p o n e n ts ’ C o m m u n ity R e in ve stm e n t
A c t S tatem ents, d is c lo s e d no in co n siste n cie s
w ith the p u rp o s e s of the C om m unity Rein­
ve stm e n t A ct. The resultant institution is ex­
p e c te d to c o n tin u e to m eet the c re d it needs
o f its e ntire c o m m u n ity, co n siste n t with the
safe and so u n d o p e ra tio n of the institution.
B ased on the fo re g o in g , the B oard of Di­




rectors has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

The E astern O hio
Bank

Banking Offices
in Operation
Before

After

4,696

1

2

7,933

1

Union T ow nship
(P.O. M orristow n),
O hio

to merge with
The C o m m unity
S avings Bank
Com pany
Yorkville, O hio

Sum m ary rep o rt by A tto rn ey G eneral,
M arch 30, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e that it w o uld not have any
sig n ifica n t e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
M ay 7, 1979
The Eastern O hio Bank, Union Tow nship
(P.O. M orristow n), O hio (“ Eastern B a n k” ), an
insu re d State no n m e m b er bank with total
reso u rce s of $ 4 ,696,000 and total IPC d e ­
posits of $3,863,000, has a p p lie d , p u rsu a n t
to Section 18(c) and other p ro visio n s of the
Federal D ep o sit In su ra n ce A ct, for the C or­
p o ra tio n ’s p rio r co n se nt to m erge, u n d er its
ch a rte r and title, with The C o m m u n ity Sav­
ings Bank C om pany, Yorkville, O hio (“ C S B ” ),
with total reso u rce s of $ 7 ,93 3 ,0 0 0 and total
IPC d e p o sits of $6,774,000.
Eastern Bank w as a c q u ire d by and b e ­
ca m e a w h o lly-o w n e d s u b s id ia ry of First
Steuben B ancorp, Inc., Toronto, O hio (“ First
S te u b e n ” ) e ffe ctive D e ce m b e r 1, 1978. First
Steuben is a reg iste re d m u lti-b a n k hold in g
c o m p a n y co n tro llin g five co m m e rcia l banks
in eastern O hio with a g g re g a te total d e p o sits
of $ 2 0 9,354,000. On A pril 2, 1979, the C or­
p o ra tio n ’s Board of D ire cto rs g ra n te d its c o n ­
sent to the co n so lid a tio n of three of these
su b s id ia ry banks u n d er a new State ch a rte r
in a tra n sa ctio n that w as re g a rd e d , e sse n ­
tially, as a c o rp o ra te reo rg a n iza tio n .
Competition. Eastern Bank o p e ra te s its
sole o ffice in w estern B elm ont C ounty a p ­
p ro xim a te ly 18 road m iles w est of W heeling,
W est V irginia, se rvin g a sm all lo ca lize d m ar­
ket w hose e co n o m y is p re d ic a te d upon coal

BANK ABSORPTIONS APPROVED BY THE CORPORATION
m in in g . CSB o p e ra te s its sole o ffic e in
Yorkville, in the so u the a ste rn portion of Je f­
ferson C ounty in eastern Ohio, a p p ro xim a te ly
8 road m iles north of W heeling and 18 road
m iles south of S teubenville. The area in w hich
CSB co m p e te s , w h ich is re g a rd e d as the
relevant m arket in w h ich to assess the co m ­
p e titive im p a c t of the p ro p o se d tran sa ctio n ,
is d e lin e a te d as the area w ithin a 10 to 12
roa d -m ile radius of the v illa g e of Yorkville
in c lu d in g s o u th e rn p o rtio n s of J e ffe rs o n
C ounty, a d jo in in g p o rtio n s of northeastern
B e lm o n t C o u n ty a n d th e n e a rb y c ity of
W heeling, W est V irginia.
The v illa g e of Yorkville (1970 p o p ula tio n
1,656) is lo ca te d in the O hio River Valley
along a p rin c ip a l north-south h ig h w ay c o n ­
n e c tin g S teu b e n ville w ith the W heeling area.
The e co n o m y of the area, w ithin the im ­
m e d ia te v ic in ity of Yorkville, is heavily d e ­
p e n d e n t u pon steel p ro d u ctio n fa cilitie s lo­
c a te d alo n g the O hio River. The city of
W heeling (1970 p o p u la tio n 48,188) is easily
a c c e s s ib le to this portio n of the O hio River
Valley and serves as a focal p o in t fo r retail
and c o m m e rcia l activity.
The o ffic e s of Eastern Bank and CSB are
lo ca ted a p p ro x im a te ly 24 road m iles ap a rt
w ith little e v id e n c e of sig n ifica n t e co n o m ic
in te ra c tio n b e tw e e n th e ir rela tive s e rvice
areas, as the existing h ig h w a y system serves
to fo c u s travel in e a st-w e st and north-south
d ire c tio n s from the in te rve n in g W he e ling
urb a n area. L o ca te d in clo se p ro xim ity to
Yorkville and C S B ’s o ffice, how ever, are tw o
o ffice s of H e rita g e Bank, N.A. — S te ubenville
(“ H e rita g e B a n k” ), the lead b a n k of First
S teuben. H e rita g e B a n k’s T iltonsville o ffice
(IPC d e p o s its of $5,77 0 ,0 0 0 ) is lo ca ted a p ­
p ro xim a te ly 2 road m iles north of CSB w hile
H e rita g e B a n k’s o ffice at B rilliant is lo ca ted
a p p ro x im a te ly 10 road m iles distant. Both of
these o ffice s are re g a rd e d as b e ing in d ire ct
co m p e titio n w ith CSB. C onsum m ation of the
p ro p o s e d tra n s a c tio n w o uld serve to elim i­
nate this existing c o m p e titio n betw een CSB
and First Steuben and, sim ilarly, fo re clo se
the p o s s ib ility fo r in cre a se d fu tu re c o m p e ti­
tion b e tw e en these tw o ba n king o rg a n iza ­
tions. In light of the m od e st level of d e p o sits
g e n e ra te d at CSB sin ce its org a n iza tio n in
1947, how ever, the p ro p o se d tran sa ctio n is
vie w e d as having little sig n ifica n t e ffe ct upon
existing or potential c o m p e titio n betw een the
tw o b a n king org a n iza tio ns.
In the relevant m arket a total of 15 c o m ­
m ercial ba n ks o p e ra te 25 ba n king offices.
H e rita g e Bank ranks as the eighth la rg e st
c o m m e rc ia l bank in the m arket, h o ld in g 3.6
p e rc e n t of its IPC d e p o s it base, w hile CSB
ranks as its s e co n d sm alle st ban king o rg a n i­




85

zation, h o ld in g a m od e st 1.5 p e rce n t of such
funds. Eastern Bank is not re p re se n te d in this
m arket. The e ffe ct of the p ro p o s e d tra n s a c ­
tion w o uld be to in cre a se First S te u b e n ’s
share of the m a rke t’s IPC d e p o sits to a p ­
p ro xim a te ly 5.0 p e rce n t, w h ich is not re­
g a rd e d as h a ving any s ig n ific a n t im p a c t
upon the stru ctu re of co m m e rcia l ba n king in
the relevant m arket.
O hio sta tu te s p e rm it sta te w id e h o ld in g
co m p a n y exp a nsio n . First S teuben, w hich
has c o n fin e d its a ctivitie s to a relatively sm all
g e o g ra p h ic region of eastern Ohio, holds
only 0.56 p e rce n t of the s ta te ’s total co m m e r­
cial b ank d e p o sits, and w o u ld a c q u ire C S B ’s
nom inal 0.02 p e rc e n t share. The p ro p o se d
tra n sa ctio n thus is re g a rd e d as having no
m aterial e ffe ct upon th e c o n ce n tra tio n of d e ­
p o sits or b a n king reso u rce s in the State of
Ohio.
The B oard of D ire cto rs is of the o p in io n that
the p ro p o se d m erg e r w o u ld not, in any s e c ­
tion of the country, su b sta n tia lly lessen co m ­
petition, tend to c re a te a m on o p o ly, or in any
oth er m anner be in restra in t of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. C o n sid e ra tio n s relating to
fin a n cia l and m an a g e ria l re so u rce s have
been sa tisfa cto rily resolved, and the resultant
b a n k is a n ticip a te d to have fa vo ra b le futu re
p ro sp e cts.

Convenience and Needs of the Community
to be Served. C o nsum m ation of the p ro p o se d
tra n sa ctio n is a n tic ip a te d to result in the
in tro d u ctio n of a b ro a d e r ran g e of co m m e r­
cial ba n king se rvice s at the resultant bank
w hich should a c c ru e to the b e n efit of the
p re se n t cu sto m e rs of CSB. C o n sid era tio ns
relating to co n ve n ie n ce and needs of the
co m m u n ity are c o n siste n t with a p p ro va l of
the a p p lica tio n .
A review of a va ila b le inform ation, in c lu d in g
the Com m unity R einvestm ent A ct Statem ents
of the tw o p ro p o n e n ts and oth er relevant
m aterial, d isclo se d no in co n siste n cie s with
the p u rp o se s of the A ct. The resultant b ank is
e x p e c te d to co n tin u e to m eet the c re d it
needs of its entire co m m u n ity, c o n siste n t with
the safe and sound o p e ra tio n of the in stitu ­
tion.
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arra n te d .

FEDERAL DEPOSIT INSURANCE CORPORATION

86

Resources
(in thousands
of dollars)

C itizens and Farmers
Bank

Banking Offices
in Operation
Before

After

36,704

2

4

7,542

2

W est Point, Virginia
to

merge with

The C olonial Bank
Providence Forge,
Virginia

Sum m ary rep o rt by A tto rn ey G eneral,
M arch 9, 1979
W e have review ed this p ro p o se d tra n s a c ­
tion a nd c o n c lu d e that it w ould not have a
s u b s ta n tia lly a d ve rse e ffe ct upon c o m p e ti­
tion.
Basis for C o rpo ra tion A p p ro va l
M ay 7, 1979
C itizens and Farm ers Bank, W est Point,
V irg in ia (“ C itiz e n s ” ), an insured State non­
m e m b e r b a n k w ith to ta l re s o u r c e s o f
$ 3 6 ,7 0 4 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 3 0,786,000, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and other pro visio n s of the Federal
D ep o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r co n se n t to m erge with The Colonial
Bank, P ro v id e n c e Forge, V irg in ia (“ C o lo ­
nia l” ), with total reso u rce s of $7,54 2 ,0 0 0 and
total IPC d e p o s its of $5,154,000. The banks
w o u ld m erg e u n d e r the ch a rte r and title of
C itizens and, in c id e n t to the m erger, the tw o
e xisting o ffices of Colonial w ould b e co m e
b ra n c h e s of the resultant bank, in cre a sin g
the n u m b e r of its o ffices to four.
Competition. Both banks are lo ca ted in
s o u the a ste rn V irg in ia , b etw een R ichm ond
and N e w p o rt News. The clo se st o ffices of the
p ro p o n e n ts are s e p a ra te d by a p p ro xim a te ly
18 road m iles with no intervening o ffice s of
o ther c o m m e rcia l banks. The Pam unkey and
Y o rk R iv e rs s e rv e as n a tu ra l b a rr ie rs
s e p a ra tin g m ost of the b a n ks’ se rvice areas.
The only c o n n e c tin g point is at W est Point,
resulting in som e o ve rla p in se rvice areas.
The e ffe c t of the p ro p o se d m erg e r w ould
be m ost d ire c t and im m ediate in New Kent
and C harles C ity C ounties, Virginia, the p ri­
m ary se rvice area of Colonial. A t their clo se st
point, New Kent and C harles C ity C ounties
are 7 and 10 m iles, re sp e ctive ly, from the city
lim its of R ichm ond and run to w ithin 27 and
22 m iles, re sp e ctive ly, of N e w p o rt News. The
area is m ainly rural and sp a rse ly p o p u la te d
w ith nom inal industrial a ctivitie s. The 1977
e ffe c tiv e ho u seh o ld bu yin g in co m e of New
Kent and C harles C ity C ounties w as $11, 155




and $8,684, resp e ctive ly, well be lo w the state
a ve ra g e of $14,524. B e ca u se of the clo se
p ro xim ity of R ichm ond, m any of the resid e n ts
of the area co m m u te there for e m p lo ym e n t
and other b u siness a ctivitie s. Colonial is the
only co m m e rcial bank rep re se n te d in this
tw o -c o u n ty area. The clo s e s t co m m e rcia l
b a n ks are a p p ro x im a te ly ten m iles fro m
Q uinton Branch, and 15 m iles from the m ain
office, in the s u b u rb s of R ichm ond. W hile
C olonial does not a ctive ly co m p e te in the
R ichm ond m arket, the ba n ks in that area
p ro vid e co n ve nie n t alte rn a tive s fo r residents
of N ew Kent and C harles C ity C ounties who
w o rk or shop in the R ichm ond area. This
tra n sa ctio n will serve to su b stitu te one in d e ­
p e n d e n t ba n k for a n other and w hile som e
e xisting co m p e titio n will be elim in a te d , it is
not c o n s id e re d sig n ifica n t.
W hile state statutes w o uld allow in cre a se d
fu tu re c o m p e titio n th ro u g h de novo b ra n c h ­
ing, it a p p e a rs unlikely that this w o u ld d e ­
ve lo p . Colonial d oes not have s u fficie n t fi­
nancial and m anagerial reso u rce s to m ount
any s ig n ific a n t exp a nsio n p ro g ra m , and the
lim ited d e p o s it p otential of C o lo n ia l’s twoco u n ty m arket area m akes it a less than
d e sira b le area for C itizens to enter de novo.
The p ro p o se d m erg e r w o uld not e lim inate
any s ig n ific a n t e xisting or potential c o m p e ti­
tio n b e tw e e n C itize n s a nd C o lo n ial, nor
w o uld it have any a p p re c ia b le e ffe ct on the
co m m e rcia l ban king stru ctu re of any relevant
m arket.
Based on the fo re g o in g , the B oard of Di­
rectors is of the o p inion that the p ro p o se d
m erg e r w o uld not, in any section of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , tend to
cre a te a m onopoly, or in any o ther m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of both p ro p o n e n ts are re g a rd e d
as sa tisfa cto ry for p u rp o se s of the p ro p o se d
tran sa ctio n , and the resultant bank w ould
a p p e a r to have fa vo ra b le fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. C onsum m ation of the p ro p o se d
m erg e r w ould m ake a va ila b le e xp a n d e d ser­
vice s, in cre a se d le n d in g lim its, and trust se r­
vice s to C o lo n ial’s cu sto m e rs. C o n sid e ra ­
tions relating to co n ve n ie n ce and needs of
the co m m u n ity a p p e a r co n siste n t with a p ­
proval of the a p p lica tio n .
A review of ava ilab le inform ation d isclo se d
no in co n siste n cie s with the p u rp o se s of the
C o m m u n ity R einvestm ent A ct. The resultant
b a n k is e x p e c te d to co n tin u e to m eet the
c re d it n eeds of its entire co m m u n ity, c o n sis­
te n t with the safe and sound o p e ra tio n of the
bank.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.

87

The Board of D ire cto rs is of the o p inion that
the p ro p o se d tra n sa ctio n w ould not, in any
se ctio n of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m onopoly, or in
any other m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. F inancial a nd m an agerial re­
Resources
(in thousands
of dollars)

The M erchants Bank

119,133

Banking Offices
in Operation
Before

After

12

12

B urlington, Verm ont

to merge with
Batreal, Inc.

-

-

-

-

Barre, V erm ont

and
M erchants
P rop ertie s, Inc.
B urlington, Verm ont
S um m ary report by A tto rn ey G eneral,
M arch 30, 1979

so u rce s of all pa rtie s to the p ro p o se d tra n s­
a ction are sa tisfa cto ry and the resultant bank
is a n ticip a te d to have fa vo ra b le fu tu re p ro s­
pects.

Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould
not have any e ffe ct on the c o n ve n ie n ce and
n eeds of the co m m u n ity to be served.
A review of a va ilab le inform ation d isclo se d
no in co n siste n cie s with the p u rp o se s of the
C om m unity R einvestm ent Act. The resultant
b ank is a n tic ip a te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is ­
tent with the safe and sound op e ra tio n of the
institution.
B ased on the fo re g o in g inform ation, the
B oard of D irectors has c o n c lu d e d that a p ­
proval of the a p p lica tio n is w arranted.

The p ro p o s e d m erg e r involves tw o 100%
o w n e d real estate s u b s id ia ry co rp o ra tion s; is
e sse n tia lly a co rp o ra te reorganization; and
w ould have no e ffe c t on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
M ay 21, 1979
The M erch a n ts Bank, B urlington, Verm ont
(“ M e rc h a n ts ” ), an insured State n o n m em ber
ba n k with total reso u rce s of $ 1 19,133,000
and total IPC d e p o s its of $ 100,947,000, has
a p p lie d , p u rsu a n t to Section 18(c) and other
p ro visio n s of the Federal D eposit Insurance
A ct, fo r the C o rp o ra tio n ’s p rio r co n se nt to
m erg e w ith Batreal, Inc., Barre, Verm ont
(“ B a tre a l” ), and M erch a n ts Properties, Inc.,
B u rlin g to n , V e rm o n t (“ M P I” ), n o n in su re d ,
n o n ba n kin g e ntities w h o lly-o w n e d by M er­
chants. The p ro p o s e d tran sa ctio n w ould be
e ffe c te d u n d er the ch a rte r and title of M er­
chants.
Competition. Batreal w as fo rm e d by The
Barre Trust C om pany, Barre, Verm ont, prior
to its m erger with M erchants. MPI was form ed
in 1958 by The M erchants National Bank,
p re d e ce sso r to M erchants. Both Batreal and
MPI were organized for the purpose of holding
and m anaging real estate necessary for the
co n d u c t of banking business. Essentially this
transaction is an internal reorganization which
w ould result in returning title of the real estate
to M e rc h a n ts . The p ro p o s e d tra n s a c tio n
would have no effect on existing or potential
com p e titio n betw een the proponents or on the
structure of com m ercial banking in any rele­
vant area.




Resources
(in thousands
of dollars)

F irst State Bank

Banking Offices
in Operation
Before

34,041

4

18,658

After

3

7

W aynesboro,
M ississippi

to merge with
Bank of Leakesville
Leakesville,
M ississippi

Sum m ary report by A tto rn ey G eneral,
M arch 30, 1979
There a p p e a rs to be little likelihood that
p re se n t co m p e titio n betw e en A p p lic a n t and.
Bank will be in cre a se d as a result of de novo
e xpansion, in view of th e ir sm all size and the
a b se n ce of su ita ble p o p u la tio n ce n ters in
W ayne and G reene C ounties in w hich either
m igh t esta blish a de novo b ranch. M oreover,
c u r r e n t M is s is s ip p i la w r e q u ir e s t h a t
Leaksville have a p o p u la tio n of 3,100 in o rd e r
for a de novo b ra n ch to be o p e n e d a n d its
cu rre n t p o p ula tio n is 1,200.
Basis fo r C o rpo ra tion A p p ro va l
June 18, 197
First State Bank, W aynesboro, M ississippi
(“ FSB” ), an insured State n o n m e m b er bank

88

FEDERAL DEPOSIT INSURANCE CORPORATION

with total reso u rce s of $34 ,0 4 1 ,0 0 0 and total
IPC d e p o s its of $26,625,000, has a p p lie d ,
pu rsu a n t to Section 18(c) and o ther p ro vi­
sions of the Federal D ep o sit In su ra n ce A ct,
fo r the C o rp o ra tio n ’s p rio r co n se n t to m erge,
u n d e r its c h a rte r and title, w ith Bank of
Leakesville, Leakesville, M ississip p i (“ B O L ” ),
with total reso u rce s of $18 ,6 5 8 ,0 0 0 and total
IPC d e p o s its of $14,755,000. In cid e n t to the
tra n s a c tio n , the three o ffices of B O L w ould
be e s ta b lis h e d as b ra n ch e s of FSB.
Competition. FSB, h e a d q u a rte re d in the
to w n o f W a y n e s b o ro (1 9 7 0 p o p u la tio n
4,368), o p e ra te s lim ited se rvice fa cilitie s at
W a y n e s b o ro (N o rth s id e ) and C la ra (e s ti­
m ated p o p u la tio n 200), a p p ro xim a te ly 8 road
m iles southw est; and a d rive -u p fa c ility at
B u cka tu n n a (estim a te d p o p ula tio n 350), a p ­
p ro x im a te ly 12 road m iles so u th e a st, all
w ithin W ayne C ounty in so u the a ste rn M issis­
s ip p i. BOL, h e a d q u a rte re d in the town of
L e a k e s v ille (1 9 7 0 p o p u la tio n 1 ,0 9 0 ) in
G ree n e C ounty, o p e ra te s b ra n c h e s near
L u c e d a le (1970 p o p ula tio n 2,060), a p p ro x i­
m ately 22 road m iles south, and at State Line
(19 7 0 p o p u la tio n 598), a p p ro x im a te ly 22
road m iles n o rth e a st.*
W ayne C ounty (1970 p o p ula tio n 16,650),
lo ca ted in rural southeastern M ississip p i, has
a d iv e rs ifie d e co n om y e n co m p a ssin g m an­
u fa ctu rin g , tim b e r p ro d u ctio n , livestock, a g ­
riculture, and oil p ro d u ctio n . Its 1977 m edian
h o u sehold bu yin g level of $8,678, w hile s ig ­
n ifican tly low er than the state fig u re , c o m ­
p ares fa v o ra b ly w ith other n e a rb y areas.
G reene C ounty (1970 pop ula tio n 8,545), lo­
c a te d a d jo in in g and im m e d ia tely south of
W ayne C ounty, has an eco n om y p re d ic a te d
c h ie fly on a g ric u ltu re and tim b e r p ro d u ctio n ,
with its 1977 m ed ia n h ousehold buying level
of $ 6 ,445 ranking as one of the low est in the
state. In lig h t of the sp a rse p o p ula tio n and
lim ited e c o n o m ic s ig n ific a n c e of B O L ’s trad e
area and c o n s id e rin g the d ista n ce s betw een
b a n king o ffic e s in this rural area, the relevant
m arkets in w h ich to assess the co m p e titive
im p a c t of the p ro p o s e d tran sa ctio n are d e ­
lineated as the area w ithin an a p p ro xim a te 15
road m ile radius of each of B O L ’s three
offices.
The p ro p o n e n ts ’ c lo se st offices are lo ca ted
a p p ro x im a te ly 8 road m iles a p a rt in the State

* P rin cip a ls h o ld in g s to c k c o n tro l of First State Bank
a c q u ire d s to c k co n tro l of B ank of Le a ke sville in O c ­
to b e r, 1978. S in ce th e c u rre n t a ffilia tio n of the tw o
ba n ks has not h e re to fo re bee n s u b je c t to re g u la to ry
s cru tin y, th e a ffilia tio n is of no p e rs u a s iv e va lu e in
d e te rm in in g , fo r p u rp o s e s of the B ank M e rg e r A ct,
w h a t c o m p e titiv e im p a ct, if any, th e p ro p o s e d tra n s a c ­
tio n m ay have. T he re fo re , th e B o ard of D ire c to rs has
ig n o re d th e a ffilia tio n in its a s s e s s m e n t of th e p ro p o s a l.




Line m arket near the W ayne and G reene
co u n ty Line. FSB’s B u cka tu n n a o ffice is a
lim ited se rvice d rive -u p fa c ility co n sistin g of
o n ly o n e d riv e -in w in d o w a n d a s in g le
w a lk-u p lo b b y te ller station p ro vid in g fo r only
d e p o s it and p a ym e n t fu n ctio n s. The p ro xim ­
ity of this o ffice to the State Line b ra n ch of
BO L in d ica te s that som e existing co m p e titio n
betw e en the p ro p o n e n ts w o u ld be e lim inated
by the p ro p o se d tran sa ctio n .
In the relatively sm all State Line relevant
m arket, FSB’s B u cka tu n n a fa cility, e s ta b ­
lis h e d in 1 9 6 6 , h o ld in g an e s tim a te d
$ 2 ,68 7 ,0 0 0 in IPC de p osits; B O L ’s State Line
B ra n c h , e s ta b lis h e d in 1 9 4 7 , h o ld in g
$ 3 ,4 6 3 ,0 0 0 in IPC d e p o s its ; a n d an
A la b a m a -b a se d co m m e rcial bank h o lding
$ 1 2 ,4 4 5 ,0 0 0 in IPC d e p osits, c o m p rise all of
the co m m e rcia l ba n king a lternatives. W hile
the p ro p o se d tra n sa ctio n w ould re d u ce from
three to tw o the nu m b e r of co m m e rcial banks
rep re se n te d in the m arket, it is noted that
n e ith e r FSB n o r BOL has g e n e ra te d a s ig ­
n ifican t d e p o s it base th ro u g h these offices.
The M ississip p i portion of this area had a
1970 p o p u la tio n of 4 ,280 d is trib u te d over
som e 250 sq u a re miles, or a b o u t 17 p ersons
per sq u a re m ile. N evertheless, the p ro p o se d
m erg e r is vie w e d as having som e a d ve rse
im p a ct upon the structu re of co m m e rcial
b a n king and the co n ce n tra tio n of ban king
reso u rce s in this local m arket.
In the Leakesville and L u ce da le relevant
m arke ts, FSB in not re p re se n te d . B O L ’s
Leakesville m ain o ffice w ith IPC d e p o sits of
$ 9 ,41 1 ,0 0 0 is the only co m m e rcial ban king
o ffice for a d ista n ce of a p p ro xim a te ly 20 road
m iles. Its o ffice near Lu ce da le , e sta b lish e d in
1969, holds IPC d e p o sits of only $ 1 ,881,000
and has fa iled to d e ve lo p a sig n ifica n t share
of the m a rke t’s d e p o sit base with the two
la rg e r, lo c a lly -b a s e d c o m m e rc ia l b a n k s
a g g re g a te ly co n tro llin g 94.1 p e rce n t of the
m a rke t’s IPC d e p osits. FSB’s a cq u isitio n of
B O L ’s o ffice s at Leakesville and L u ce da le is
not re g a rd e d as having any sig n ifica n t im ­
p a c t upon the stru ctu re of co m m e rcia l b a n k­
ing or the co n ce ntra tio n of b a n king resources
in their resp e ctive m arkets.
M is s is s ip p i s ta tu te s p e rm it de novo
b ra n c h in g w ith in a 100 -m ile ra d iu s of a
b a n k ’s h o m e o ffic e , s u b je c t to c e rta in
m inim u m c a p ita liz a tio n re q u ire m e n ts and
hom e o ffice p ro te ctio n p rovisions. There are
no co m m u n ities of su fficie n t size in G reene
C ounty o pen to b ra n ch in g to e n co u ra g e de
novo entry by FSB. In the L u ce d a le relevant
m arket in G e o rg e C ounty, such exp a nsio n is
fe a sib le fo r FSB, how ever, such an o c c u r­
ren ce seem s rem ote in lig h t of the p re se n ce
of e sta b lish e d lo ca lly-b a se d banks and the

89

BANK ABSORPTIONS APPROVED BY THE CORPORATION
d is ta n c e and lack of easy a cce ss from its
p re se n t base of ope ra tio n . BOL, for its part,
w o u ld be u n lik e ly to e n te r th e d is ta n t
W a yn e sb oro m arket to c o m p e te d ire ctly with
the b a n k s re p re s e n te d the re . T he re fore ,
there a p p e a rs to be no sig n ifica n t potential
for in cre a se d c o m p e titio n to d e ve lop b e ­
tw een the p ro p o n e n ts in the fo re se e a b le fu ­
ture.
The B oard of D ire cto rs is of the o p inion that
the p ro p o s e d m erg e r w o uld elim inate som e
existing c o m p e titio n b etw een FSB and BOL
and w o u ld som ew hat in cre a se co n ce n tra tio n
in the local m arket. It w ould not, how ever, in
a ny s e c tio n of the co u n try, s u b s ta n tia lly
le s s e n c o m p e titio n , te n d to c r e a te a
m onopoly, or in any other m anner be in
restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of FSB and the resultant bank are
sa tisfacto ry. The fin a ncia l reso u rce s of BOL
w ould be c o n s id e ra b ly im pro ve d as p a rt of a
c o m b in e d bank w hich w o uld serve to out­
w e ig h the som ew hat ne g ative co m p e titive
a s p e c ts of the p ro p o se d tran sa ctio n . The
resultant bank is a n tic ip a te d to have fa vo r­
a ble fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. C onsum m ation of the p ro p o se d
tra n sa ctio n will have little e ffe ct on the level
and p ric in g of co m m e rcial ba n king services
in the areas served by the p ro p o n e n ts. C on­
s id e ra tio n s re la tin g to c o n v e n ie n c e and
n eeds are co n s is te n t with a p p ro va l of the
a p p lic a tio n .
A review of a v a ilab le inform ation, in clu din g
the C o m m u n ity R e investm ent A ct S tatem ents
of the p ro p o n e n ts and oth er relevant m ate ­
rial, d is c lo s e d no in c o n siste n cie s with the
p u rp o s e s of the A ct. The resultant bank is
e x p e c te d to c o n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n sisten t with
the safe and sound o p e ra tio n of the institu ­
tion.
B ased on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.




Resources
(in thousands
of dollars)

C entral S avings
Bank

Banking Offices
in Operation
Before

After

114,888

8

12

4 8 ,95 9 *

4

Baltim ore, M aryland

to merge with
A rlin g to n Federal
S avings and Loan
A sso cia tio n
Baltim ore, M aryland
* Total tim e and s a v in g s
d e p o s its .

Sum m ary rep o rt by A tto rn ey General,
May 11, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e that it w ould not have a
sub stan tia l co m p e titive im pact.
Basis for C o rpo ra tion A p p ro val
June 25, 1979
Central S avings Bank, Baltim ore, M aryland
(“ C S B ” ), an insu re d m utual sa vin g s bank
w ith total reso u rce s of $1 1 4,8 8 8 ,0 0 0 and total
tim e and sa vin g s d e p o sits of $ 9 7,257,000,
has a p p lie d , p u rsu a n t to S ection 18(c) and
other p rovisions of the Federal D ep o sit Insur­
an ce Act, for the C o rp o ra tio n ’s p rio r co n se nt
to m erge, u n d er its ch a rte r and title, with
A rlin g to n Federal Savings and Loan A s s o c i­
ation, Baltim ore, M aryland (“ A s s o c ia tio n ” ), a
F ed e ra lly-in su re d sa vin g s and loan a sso cia ­
tion with total tim e and sa vin g s d e p o sits of
$48,959,000, u pon the latter in stitu tio n ’s c o n ­
ve rsio n to a State ch a rte r. In cid e n t to the
m erger, the four o ffice s of A sso cia tio n w ould
be e sta b lish e d as b ra n ch e s of C entral Sav­
ings Bank, in cre a sin g to 12 the n u m b e r of
o ffices o p e ra te d .
Competition. CSB, b a se d in the co m m e r­
cia lized “ d o w n to w n ” p ortion of the C ity of
B altim ore, o p e ra te s tw o b ra n ch e s in the City
of Baltim ore, and five in n e ig h b o rin g B alti­
m ore and A nne A ru n d el Counties. A s s o c ia ­
tion, also h e a d q u a rte re d in “ d o w n to w n ” B al­
tim ore, o p e ra te s three b ra n ch o ffices in Bal­
tim ore County. Both institutions are re g a rd e d
as c o m p e tin g fo r fu n d s th ro u g h o u t the m et­
ropolitan B altim ore area w hich is re g a rd e d as
the relevant m arket in w hich to assess the
co m p e titive im p a c t of the p ro p o se d tra n sa c­
tion. This m arket is d e line a te d as the area
w ithin an a p p ro xim a te 20 mile radius of the
p ro p o n e n ts ’ head o ffices in B altim ore and
co n tain s a p o p ula tio n estim a te d to be in
e xce ss of 1,500,000. T he area enjoys a bro a d
e c o n o m ic b a se w ith he a vy in d u s try and

90

FEDERAL DEPOSIT INSURANCE CORPORATION

c o m m e rcia l a ctivity p re va le n t in the central
city and residential and lig h t industrial d e ­
v e lo p m e n t in su rro u n d in g areas.
A total of 54 thrift institutions o p e ra te 209
o ffic e s in this m arket with the fo u r la rg e st
in stitutions a g g re g a te ly h o ld in g 52.9 p e rce n t
of the a re a ’s thrift institution d e p osits. CSB is
ranked as the m a rk e t’s 8th la rg e st th rift in­
stitution, h o ld in g 2.2 p e rce n t of its thrift in­
stitution d e p osits, while A sso cia tio n is ranked
20th and holds a m ere 1.1 p e rce n t share of
such fu n ds. The resultant institution w ould
in cre a se its m arket share of thrift institution
d e p o s its to 3.3 p e rc e n t and rank as the 6th
la rg e st institution, but w ould rem ain s u b s ta n ­
tially sm alle r than the la rg e r th rift in stitutions
a lre a d y well e sta b lish e d in the m arket. The
p ro p o s e d tran sa ctio n is re g a rd e d as having
no m aterial e ffe c t on the stru ctu re of thrift
institution ba n king or the co n ce n tra tio n of
reso u rce s in the relevant m arket.
The p ro xim ity of the p ro p o n e n ts ’ head of­
fice s, lo ca te d on o p p o site co rn e rs of a m ajor
“ d o w n to w n ” B altim ore intersection, and of a
b ra n ch of CSB lo ca ted in a su b u rb a n sh o p ­
p ing c e n te r a cro ss a m ajor tra ffic arte ry from
a n o th e r s h o p p in g ce n te r co n ta in in g a b ranch
o ffic e of A sso cia tio n , in d ica te s that the p ro ­
p o n en ts are p re se n tly in d ire c t c o m p e titio n
and th a t som e e xisting co m p e titio n w o uld be
elim in a te d by c o n su m m a tion of the p ro p o se d
tran sa ctio n . Sim ilarly, as M aryland statutes
p e rm it sta te -w id e de novo b ra n ch in g , each
p ro p o n e n t has the potential to a ctive ly e x­
pa n d its o p e ra tio n by this m eans. Such a c ­
tion c o u ld serve to in cre a se co m p e titio n b e ­
tw een these tw o institutions. There is, h o w ­
ever, e v id e n c e of intense co m p e titio n for
thrift d e p o s its in the B altim ore m arket; and in
light of the p ro p o n e n ts ’ relatively m od e st size
in relation to other B altim ore thrift institutions,
the p ro p o s e d tra n sa ctio n is seen as having
no s ig n ific a n t a d ve rse e ffe ct on either e xist­
ing c o m p e titio n or on the potential for futu re
co m p e titio n .
The B oard of D irectors is of the op in io n that
the tra n s a c tio n w o u ld not, in any section of
the co u n try, s u b s ta n tia lly lessen co m p e titio n ,
tend to cre a te a m onopoly, or in any other
m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of each p ro p o n e n t are co n sid e re d
a d e q u a te fo r p u rp o s e s of this pro p o sa l. The
resultant ba n k w ould have sa tisfa cto ry fin a n ­
cial and m an agerial resources, and its fu tu re
p ro s p e c ts w o u ld a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. The p ro p o s e d tra n s a c tio n
w o uld result in no s u b stan tia l c h a n g e in the
s e rvice s now a v a ilab le in the m arket. C on­
sid e ra tio n s of co n v e n ie n ce and n eeds of the




co m m u n ity are co n sisten t with a p p ro va l of
the a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm eft A c t S tatem ents
of the p ro p o n e n ts and o th er relevant m ate­
rial, d isclo se d no in co n siste n cie s w ith the
p u rp o se s of the Act. The resultant bank is
e x p e c te d to co n tin u e to m eet the c re d it
ne e ds of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the in stitu ­
tion.
Based on the fo re g o in g , the B oard of Di­
recto rs has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

Peoples W estchester
Savings Bank

767,010

Banking Offices
in Operation
Before

14

After

17

Tarrytown, New York

to merge with
W estchester C ounty
Savings and Loan
A sso cia tio n

28,787*

3

O ssining, New York
* Total dep osits.

Sum m ary report by A tto rn ey G eneral,
June 27, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e th a t it w o u ld not have a
sig n ifica n tly a d ve rse e ffe c t u pon c o m p e ti­
tion.
Basis for C o rpo ra tion A p p ro val
June 25, 1979
P eoples W estch e ster S avings Bank, Tarrytow n, New York (“ P e o p le s” ), an insured
m utual savings bank with total reso u rce s of
$ 7 6 7 ,0 1 0 ,0 0 0
a n d to ta l d e p o s its
of
$707,7 8 4 ,0 0 0, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and other pro visio n s of the Federal
D e p o sit Insurance A ct, for the C o rp o ra tio n ’s
p rio r co n se n t to m erg e with W e stch e ster
C ounty Savings and Loan A sso cia tio n , O s­
sining, N ew York (“ S & L” ), a F ederally insured
m utual sa vin g s and loan asso cia tio n , with
total d e p o s its of $28,787,000. The tw o in­
stitu tio n s w o u ld m erg e u n d er the ch a rte r and
with the title of P eoples and, in cid e n t to the
m erg e r, the three o ffice s of S&L w o u ld b e ­
co m e b ra n ch e s of the resultant bank, w hich
w o u ld c o m m e n ce o p e ra tin g with a total of 17
offices.

91

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Competition. T he m ain o ffic e a n d 13
b ra n c h e s of Peoples, as well as the three
o ffice s of S&L, are all lo ca ted in W e stch e ster
County. W e stch e ster C ounty is situ a te d im ­
m ed ia te ly north of New York City and is pa rt
of the N ew Y ork-N ew Je rse y SMSA th a t c o n ­
sists of the five b o ro u g h s of New York City, as
well as Putnam , R ockland, and W estch e ster
C ounties in N ew York, a nd Bergen C ounty in
New Jersey. These areas all have close
e c o n o m ic ties, w ith s ig n ific a n t com m u ta tion
a m ong them for w ork, sh o p p in g and leisure.
In a d d itio n , thrift in stitutions, p a rticu la rly the
la rg e New York C ity-b a se d th rifts, a d ve rtise
th ro u g h o u t the area and there is intense
co m p e titio n in the region. The 1970 p o p u la ­
tion of the New York-N ew Jersey SMSA w as
9,973,577, and there are 849 o ffices of 144
th rift in s titu tio n s w ith to ta l d e p o s its of
$64 ,1 6 5 ,7 7 6 ,0 0 0 . The e ffe ct of this p roposal
w o u ld be in s ig n ific a n t in this area.
The c lo se st o ffice s of the p ro p o n e n ts are
less than one mile apart, with no intervening
o ffic e s of o ther th rift institutions. In sp ite of
this th e re are alte rn a tive s ava ilab le in the
v icin ity. In W e stch e ster C ounty alone there
are 120 o ffic e s of 40 thrift in stitutions and the
c o m m u ta tio n p a tte rn s o f a re a re s id e n ts
s u g g e s t th a t the thrift institutions ou tside the
co u n ty have a su b stan tia l co m p e titive im p a ct
w ithin the county. The c o m p e titio n that w ould
be e lim in a te d by this m erg e r is not c o n s id ­
ere d to be substan tia l.
N ew York law restricts de novo e xpansion
by a m utual sa vin g s bank to one b ra n ch each
year. The d e v e lo p m e n t of a sig n ifica n t in­
crea se in co m p e titio n th ro u g h such e xp a n ­
sion is th e re fo re lim ited. Further, the intense
co m p e titio n existing am ong thrift institutions
in the New York C ity area m inim izes the
c o m p e titiv e s ig n ific a n c e of a d d itio n a l de
novo b ra n c h in g a ctivity.
Based on the fo re g o in g , the B oard of Di­
recto rs is of the o p in io n that the p ro p o se d
m erg e r w o u ld not, in any se ctio n of the c o u n ­
try, su b s ta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any other m anner be
in restra in t of trade.
Financial and Managerial Resources; Fu­
ture Prospects. S & L’s fin a ncia l co n d itio n is
re g a rd e d as less than sa tisfa cto ry as a result
of s ig n ific a n t p otential losses in its se cu rity
portfo lio , low c a p ita liza tio n , p o o r e arnings
retention, and heavy b o rro w in g s. The fin a n ­
cial co n d itio n of P eoples is co n sid e re d to be
sound and g e n era lly free of such criticism .
The resu lta n t institution w ould have the re­
so u rc e s to a b s o rb the losses of S&L and
c o rre c t the o th er d e fic ie n c ie s , w ithin the
fra m e w o rk of a fin a n c ia lly sound thrift institu ­
tion. C o n sid e ra tio n s relating to m anagerial




reso u rce s and the fu tu re p ro s p e c ts of the
resultant institution have been sa tisfa cto rily
reso lve d and o u tw e igh any a d ve rse c o m ­
p e titive effects.

Convenience and Needs of the Community
to be Served. Som e b e n efit w o u ld a cc ru e to
the cu sto m e rs of S&L from the b ro a d e n in g of
loan and d e p o s it se rvice s and e xp a n d e d
b a n king hours at the p re se n t o ffice s of S&L;
how ever, the p ro p o se d tra n sa ctio n is e x­
p e cte d to have little m aterial im p a c t upon
co n ve n ie n ce and n eeds of the co m m u n ity as
such se rvice s are rea d ily a va ila b le at offices
of o ther thrift institutio n s in the areas served
by the p ro p o n e n ts. C o n sid era tio ns of c o n ­
ve n ie n ce and needs of the co m m u n ities to be
se rve d are co n siste n t with a p p ro va l of the
tran sa ctio n .
A review of a va ilab le in form ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R e in ve stm e n t
A c t Statem ents, d is c lo s e d no in co n siste n cie s
with the p u rp o se s of the C om m unity Rein­
ve stm e n t Act. The resultant institution is ex­
p e c te d to co n tin u e to m eet the c re d it needs
of its entire co m m u n ity, co n siste n t w ith the
safe and sound o p e ra tio n of the institution.
Based on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .

Resources
(in thousands
of dollars)

The Dime S avings
Bank o f New Y ork

Banking Offices
in Operation
Before

After

4,5 33 ,9 0 4

14

22

272,478

8

New York
(B rooklyn), New
York

to merge with
M echanics Exchange
S avings Bank
A lb a n y, N ew York
Sum m ary rep o rt by A tto rn e y G eneral,
N o ve m b e r 17, 1978
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e th a t it w ould not have a
su b stan tia l c o m p e titive im pact.
Basis for C o rpo ra tion A p p ro va l
July 16, 1979
The Dim e Savings Bank of N ew York, New
York (B rooklyn), New York (“ D im e ” ), an in­
su re d m utual sa vin g s bank with total re­
so u rce s of $ 4 ,55 3 ,9 0 4 ,00 0 and total d e p o sits

92

FEDERAL DEPOSIT INSURANCE CORPORATION

of $4,157,822,000, has a p p lie d , p u rsu a n t to
S ection 18(c) and other pro visio n s of the
Federal D eposit Insurance Act, for the C or­
p o ra tio n ’s p rior c o n se nt to m erge, un d er its
c h a rte r and title, with M ech a n ics E xchange
Savings Bank, A lbany, New York (“ M ESB” ),
an insu re d m utual sa vin g s ba n k with total
reso u rce s of $272,4 7 8 ,0 0 0 and total d e p o sits
of $ 251,361,000, and to esta blish the e ig h t
o ffic e s of MESB as b ra n ch e s of the resultant
institution.
Competition. The A p p lic a n t p re se n tly o p ­
erates 13 b ra n ch e s and 16 EFTU fa cilitie s in
Kings, Q ueens, New York, N assau, and Suf­
fo lk C ounties in the extrem e southeastern
portion of N ew York State. MESB, h e a d q u a r­
tered in A lb a n y, o p e ra te s 4 b ra n ch e s within
A lb a n y C ounty and a branch o ffice in each of
S aratoga, S ch o h a rie and O neonta C ounties.
The relevant m arket in w hich to a ssess the
co m p e titiv e im p a c t of the p ro p o se d m erg e r
is re g a rd e d prim a rily as the area w ithin a 15
road-m ile radius of the City of A lb a n y from
w hich MESB d e rive s the bulk of its de p osits.
W hile s u b je c t o p e ra te s a single b ra n ch office
in each of the co m m u n ities of O neonta, W il­
ton T ow nship and C obleskill, these o ffice s
are of m od e st size and their a cq u isitio n by
Dim e w ould have only m inim al co m p e titive
im pa ct.
A total of 14 thrift in stitutions are re p ­
resented in the A lb a n y m arket. MESB, rank­
ing as this m a rk e t’s seventh larg e st thrift
institution, holds o nly 5.9 p e rc e n t of the
a re a ’s thrift institution d e p o sit base. The tw o
la rg e st th rift institutions in this m arket a g g re ­
g a tely hold 44.1 p e rc e n t of its thrift institution
d e p o sits, and w ith 18 b anking o ffices are
re g a rd e d as dom inant. D im e ’s a c q u isitio n of
MESB w o uld have no sig n ifica n t a d ve rse
e ffe c t upon the c o m p e titive structu re of thrift
b a n king in this relevant m arket.
The D e p a rtm e n t of Ju stice co n c lu d e d that
c o n su m m a tion of this p roposal w ould not
result in any su b stan tia l co m p e titive im p a ct
and the C o m ptro lle r of the C u rre n cy and the
F e d e ra l R e s e rv e B o a rd c o n c u rr e d th a t
D im e ’s a c q u is itio n of MESB w ould have no
a d ve rse co m p e titiv e e ffect.
The p ro p o n e n ts ’ c lo se st offices are lo ca ted
a p p ro x im a te ly 140 road m iles apart, and
there is no s ig n ific a n t e xisting co m p e titio n
betw e en the tw o institutions w hich w ould be
e lim in a te d by c o n su m m a tion of the p ro p o se d
tran sa ctio n . N ew York State statutes restrict
de novo b ra n ch exp a nsio n by m utual savings
banks to a sin g le o ffice per year. Thus, the
po tential for the d e v e lo p m e n t of s ig n ifica n t
c o m p e titio n b e tw e e n D im e a n d M ESB
th ro u g h such e xp a nsio n is lim ited.
D im e is the se co n d la rg e st of the s ta te ’s
m utual s a vin g s banks ho ld in g a p p ro xim a te ly




5.5 percent of their aggregate deposits. Its
acquisition of MESB, the state’s 63rd largest
mutual savings bank, would add a nominal 0.3
percent to that total, which would have little
effect upon the concentration of thrift institu­
tion deposits in New York State.
The B oard of D irectors is of the o p inion that
the p ro p o se d m erg e r w o uld not, in any s e c ­
tion of the country, su b sta n tia lly lessen co m ­
petition, tend to crea te a m onopoly, or in any
o th e r m an n e r be in re s tra in t of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. Both p ro p o n e n ts have satis­
fa cto ry fin a ncia l and m an agerial resources,
as w o u ld th e re su lta n t in stitu tio n , w h ich
w o uld a p p e a r to have fa vo ra b le futu re p ro s­
pects.

Convenience and Needs of the Community
to be Served. C onsum m ation of the p ro p o se d
tra n sa ctio n w ould m ake a va ila b le a b ro a d e r
range of co n su m e r loans and la rg e r m ort­
g a g e loans with a g re a te r va rie ty of fin a n cin g
a rra n g e m e n ts th a n p re s e n tly a v a ila b le
th ro u g h MESB. D im e’s e xp e rie n ce with e le c ­
tro n ic fu n d s tran sfe r units and their pla n ne d
in tro d u ctio n in co m m u n ities se rve d by MESB
should a c c ru e to the b e n efit and a d d e d c o n ­
v e n ie n ce of its custom ers.
A S tatem ent in O p p o sitio n to the p ro p o se d
m erg e r has been filed on b ehalf of New York
P u b lic In te re s t R e s e a rc h G ro u p , In c .
(“ NYPIRG ” ) and other co m m u n ity interest
g ro u p s, urg in g the FDIC to d eny the a p p lic a ­
tion b a se d upon D im e ’s reco rd of m eeting
local c re d it needs. C o n sid e ra b le c o rre s p o n ­
d e n ce from in d ivid u a ls and g ro u p s c o m ­
m en tin g upon the p ro p o s e d m e rg e r and
upon D im e’s len d in g reco rd have been rec ie ve d by the FDIC. The FDIC re co g n ize s its
re sp o n sib ility to w eigh ca re fu lly all co m m e n ts
a n d v ie w s re c e iv e d a n d to c o n d u c t a
th o ro u g h inve stig a tio n of the le n d in g and
C om m unity R einvestm ent A c t p ra c tic e s of
the p ro p o n e n ts to the p ro p o se d m erg e r.*
In o rd e r to p ro vid e a forum for the p re se n ­
tation of oral co m m e n ts and opinions, an
inform al p ro ce e d in g w as held in New York
City on A pril 24, 1979, from 3:15 p.m . to 8:15
p.m ., before rep re se n ta tive s of the F D IC ’s

The C o m m u n ity R e investm en t A c t of 1977 (12 U.S.C.
2 90 1) re q u ire s that the C o rp o ra tio n assess the record
of th e p ro p o n e n ts to the p ro p o s e d tra n s a c tio n in
m e e tin g th e c re d it n ee ds of th e ir re s p e c tiv e , entire
c o m m u n itie s , in c lu d in g low - and m o d e ra te -in c o m e
n e ig h b o r h o o d s . W ith th e e x c e p tio n o f s e v e r a l
n e ig h b o rh o o d s lo c a te d in B rooklyn , no serious o b je c ­
tions have b ee n raised to the le n d in g p ra c tic e s in
c o m m u n itie s s erved by the p ro p o n e n ts . D im e ’s C o m ­
m unity R e investm en t A c t S tatem e nt d e lin e a te s all of
K in gs C o unty (B rooklyn), w ith o u t e x c e p tio n , as a p a rt
of its com m u n ity .

BANK ABSORPTIONS APPROVED BY THE CORPORATION
N ew York R egional O ffice, in clu d in g the Re­
gional D irector, and the New York State
B anking D epa rtm e n t, in c lu d in g the S u p e rin ­
te n d e n t of Banks. At that p ro ce e d in g , senior
m an a g e m en t o ffic ia ls of Dime, re p re se n ta ­
t i v e s ^ NYPIRG, and other m em b e rs of the
p u b lic w ere a ffo rd e d an o p p o rtu n ity to m ake
their view s known.
Data and fig u re s s u b m itte d by Dim e with
the a p p lic a tio n and su b se q u e n t thereto, in­
clu d in g a s o u rce and d isp o sitio n of fu n ds
s ch e d u le , in d ic a te that Dim e is p ro vid in g
m o rtg a g e fu n d s th ro u g h o u t K ings C ounty
(B rooklyn) and the rem a in d er of its prim ary
s e rv ic e area, co n s is te n t with the safe and
s ound o p e ra tio n of the institution. O b je ctio n s
raised by the c o m m u n ity g ro u p s re g a rd in g
re strictive le n d in g p ra c tic e s w ere th o ro u g h ly
review ed; and, in a d d itio n , a CRA a sse ss­
m ent of the institution w as c o n d u c te d in o rd e r
to im pa rtia lly assess the relevant e vid e n ce
p re se n te d by both the co m m u n ity g ro u p s
a nd the A p p lic a n t. B a se d on this in -d e p th
review, it is c o n c lu d e d th a t Dim e has m ade
a v a ila b le m o rtg a g e fu n d s in Brooklyn, even
d u rin g rece n t p e rio d s of “ tig h t m o n e y” and
disin te rm ed ia tio n . The fig u re s show a s u b ­
stantial investm ent of a va ilab le reso u rce s
w ithin the b a n k ’s p rim a ry m arket area sin ce
CRA w as e n a c te d in 1977. This co n tinu in g
effort, c o u p le d with a new bank p o licy not to
lend o u t-o f-sta te in 1979, is e x p e c te d to p ro ­
vid e even m ore near-term m ortg a g e a va il­
a b ility to the resid e n ts of D im e ’s m arket area.
H ow ever, th e re w as fo u n d a need for a d d i­
tional effo rt by the bank to reach som e p o c k ­
ets of low- and m o d e ra te -in co m e residents.
In this reg a rd , the State of New York has
c o n d itio n e d its a p p ro v a l on the e sta b lish ­
m ent by the b ank of a D ivision of C om m unity
A ffairs, w h ich will have the re sp o n sib ility of
c o n s u ltin g w ith and a ssisting local in d iv id u ­
als and g ro u p s as well as a d visin g senior
b a n k o fficia ls and b ra n ch m an a g e rs how
e ffe c tiv e ly to ca rry out their resp o n sib ilitie s
u n d er CRA.
The s p e c ia l review of D im e ’s C om m unity
R e in ve stm e n t A c t S ta te m en t and le n d in g
p ra c tic e s w as c o n d u c te d by C o rpo ra tion
exam iners on M arch 2, 1979 and d isclo se d
no in c o n s is te n c ie s with the p u rp o se s of the
Act. A sim ilar review of the C om m unity Rein­
v e stm e n t A c t S tatem ent and le n d in g p ra c ­
tice s of MESB also d is c lo s e d no in co n siste n ­
cies. No serious o b je c tio n s to the le nding
p ra c tic e s of MESB have been raised by any
co m m u n ity interest g ro u p in o p p o sitio n to the
p ro p o s e d m erger. The B oard of Trustees of
Dim e have o fficia lly c o n c lu d e d that if this
p ro p o sa l is c o n su m m a ted , Dim e will not only
c o n tin u e th e p re s e n t a n n u a l le v e l of




93

m o rtg a g e loans in the MESB se rvice area,
but also will fo llow D im e ’s b ro a d e r le n d in g
p o licie s and e n d e a vo r to in cre a se the level of
m o rtg a g e loans in the M e ch a n ics E xch a n g e
D ivision co n siste n t with this se rvice a re a ’s
de m a n d .
The FDIC co n sid e rs this ca se as e vid e n ce
of the e ffe ctive n e ss of the CRA pro ce ss,
d ra w in g to g e th e r the State and Federal re g ­
ulators, local co m m u n ity g ro u p s and the
b a n k in a c o m m o n e ffo rt to in su re the
m axim um fe a sib le co m m itm e n t to the local
area, to g e th e r w ith a p ro g ra m for co n tinu in g
a ffirm a tive actions. A key fa c to r in this ca se
was the interest and e ffo rt of local g ro u p s in
c a llin g a ttention to the bank and to the re g ­
ulators their co n ce rn s and needs.
C o n sid era tio ns relating to the c o n ve n ie n ce
and needs of the co m m u n ity to be se rve d are
co n sisten t with a p p ro va l of the a p p lica tio n .
B ased on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arra n te d .

Resources
(in thousands
of dollars)

Bank o f A m erica
N ational T ru st
and S avings
A s s o c ia tio n

Banking Offices
in Operation
Before

After

5 3 ,96 6 ,4 0 5 * 1 ,1 0 1 ’ 1 ,1 0 1 ’

San F rancisco,
C alifornia

to acquire the assets and
assume the deposit
liabilities of
The R osario Branch
o f B anco Alem an
T ra n sa tla n tico

4,673

1

B uenos Aires,
A rg e n tin a
* Total d o m e s tic
resources.
' D o m e s tic office s.

S um m ary rep o rt by A tto rn ey G eneral,
M arch 30, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e th a t it w o uld not have any
a d ve rse e ffe ct on co m p e titio n .
Basis for C o rp o ra tio n A p p ro va l
July 30, 1979
Bank of A m e rica National Trust a n d Sav­
ings A sso cia tio n , San F rancisco, C a lifornia
(“ B A ” ), w ith total d o m e s tic re so u rce s of

94

FEDERAL DEPOSIT INSURANCE CORPORATION

$ 5 3 ,9 6 6 ,4 0 5 ,0 0 0 and total d o m e stic d e p o sits
of $41,3 4 6 ,7 3 9 ,0 0 0 , has a p p lie d , p u rsu a n t to
S ection 18(c) and other p ro visio n s of the
Federal D eposit Insurance Act, for the C o r­
p o ra tio n ’s p rio r co n se n t to a cq u ire the assets
and assum e the liabilities of the Rosario
B ra n ch of B a n co A le m a n T ra n sa tla n tico ,
B uenos Aires, A rg e n tin a (“ BA T” ). The branch
has total reso u rce s of $4,67 3 ,0 0 0 and total
d e p o s its of $3,783,000. BAT is a n o n insured
b a n kin g c o rp o ra tio n o p e ra tin g in A rg e n tin a
as a s u b s id ia ry of D e utsche Bank A. G.,
Frankfurt, Federal R e p u b lic of G erm any. B A ’s
a p p lic a tio n to the Board of G overnors of the
Federal R eserve System for perm issio n to
e s ta b lis h a b ra n c h at B A T ’s lo c a tio n in
Rosario C ity w as a p p ro ve d D e ce m b e r 18,
1978.
Competition. The p ro p o s e d tra n s a c tio n
w o u ld ha ve a n e g lig ib le e ffe c t on B A ’s
d o m e s tic and fo re ig n m arkets. The e ffe ct of
this p ro p o sa l w o uld be to su b stitu te BA for
BAT in the Rosario, A rg e n tin a m arket in
w hich BA is not p re se n tly rep resented.

Financial and Managerial Resources; Fu­
ture Prospects. The financial and m anagerial
reso u rce s of BA are re g a rd e d as sa tisfacto ry
for the p u rp o s e of this tran sa ctio n , and its
fu tu re p ro s p e c ts a p p e a r favorable.

Convenience and Needs of the Community
to be Served. The p ro p o sa l w ould have no
p e rc e p tib le e ffe ct on the c o n ve n ie n ce and
needs of any of B A ’s d o m e stic m arkets or on
the Rosario m arket.
B ased on the fo re g o in g , the B oard of Di­
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arra n te d .

Basis for C o rpo ra tion A p p ro val
July 30, 1979
C o m m u n ity Bank & Trust C om pany, Tulsa,
O kla h om a (“ B a n k” ), an insured State non­
m e m b e r b a n k w ith to ta l r e s o u r c e s o f
$ 4 3 ,9 7 0 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 2 7,427,000, has a p p lie d , p u rsu a n t to S e c ­
tion 18(c) and other pro visio n s of the Federal
D e p o sit Insurance A ct, for the C o rp o ra tio n ’s
p rio r c o n s e n t to m e rg e w ith C o m m u n ity
Banksite, Inc., Tulsa, O kla h om a (“ B a n ksite ” ),
a n o n in s u re d , .n o n b a n kin g e n tity w h o lly
o w ned by Bank. The p ro p o se d m erg e r tran s­
actio n w o uld be e ffe cte d u n d er the ch a rte r
and title of Bank.
Competition. B anksite w as fo rm e d in 1968
by Bank for the p u rp o se of h o ld in g and
m a n a g in g real estate n e ce ssary fo r the c o n ­
d u c t of ba n king b usiness. The tra n sa ctio n is
esse n tia lly an internal reo rg a n iza tio n w hich
w ould result in title to the real estate being
returned to Bank. The p ro p o se d tran sa ctio n
w ould have no e ffe ct on existing or potential
co m p e titio n b etw een the p ro p o n e n ts or on
the stru ctu re of co m m e rcial ban king in any
relevant area.
The Board of D irectors is of the o p in io n that
the p ro p o se d tra n sa ctio n w o u ld not, in any
se ctio n of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m onopoly, or in
any o ther m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. Financial and m an agerial re­
so u rce s of each p a rty to the p ro p o se d tra n s­
a ctio n are sa tisfacto ry, and the resu lta n t
ba n k is a n ticip a te d to have fa vo ra b le futu re
p ro sp e cts.

Convenience and Needs of the Community
to be Served. The p ro p o se d m erg e r w ould

Resources
(in thousands
of dollars)

C o m m unity Bank &
T rust C om pany

Banking Offices
in Operation
Before

After

2

2

43,970

Tulsa, O klahom a

to merge with
C o m m unity Banksite,
Inc.

-

-

Tulsa, O klahom a

Sum m ary rep o rt by A tto rn ey G eneral,
M ay 11, 1979
The p ro p o s e d m erg e r involves a 100%
o w n e d real estate s u b s id ia ry co rp o ra tion ; is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n ; and
w o u ld have no e ffe c t on co m p e titio n .




have no e ffe ct on the c o n ve n ie n ce and needs
of the co m m u n ity to be served.
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ent
and other relevant m aterial, d is c lo s e d no
in co n siste n cie s with the p u rp o se s of the Act.
The resultant bank is a n tic ip a te d to co n tinu e
to m eet the c re d it needs of its entire co m ­
m unity, con sisten t with the safe and sound
o p e ra tio n of the institution.
Based on the fo re g o in g inform ation, the
Board of D irectors has c o n c lu d e d that a p ­
proval of the a p p lic a tio n is w arra n te d .

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

Banking Offices
in Operation
Before

S co tia b a n k de
P uerto Rico

After

7

(in o rg a n iza tio n)
San Juan (H ato
Rey), Puerto Rico

to merge with
B anco M erca ntil de
P uerto Rico, Inc.

150,943

3

and
to acquire the assets and
assume the deposit liabilities of
4 3 0 ,5 9 6 *

4

Halifax, C anada
* Total d e p o sits of o ffice s to be tran sferred by The Bank
of N ova Scotia. Assets not available by office.

S um m ary rep o rt by A tto rn ey General,
O c to b e r 20, 1978
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it is e ssentially a
c o rp o ra te reo rg a n iza tio n and w o uld have no
e ffe c t on c o m p e titio n .
Basis fo r C o rpo ra tion A p p ro va l
July 30, 1979
Pursuant to S ections 5 and 18(c) and other
pro visio n s of the Federal D eposit Insurance
A ct, a p p lic a tio n s have been file d for Federal
d e p o s it in su ra n ce on b e h alf of S co tia b a n k de
Puerto Rico, San Juan (H ato Rey), Puerto
Rico (“ S c o tia b a n k ” ), a p ro p o se d new bank in
org a n iza tio n, and for co n se n t to its m erger
with B anco M ercantil de Puerto Rico, Inc.,
San Juan (Rio Piedras), Puerto Rico (“ M er­
c a n til” ) (total reso u rce s $150,943,000; total
d e p o s its $ 1 2 4,593,000), an insured C om ­
m onw ealth ch a rte re d n o n m e m b er bank, and
fo r co n s e n t to p u rc h a s e ce rta in a ssets of and
assu m e the liability to pay ce rta in d e p o sits
m ade in the Puerto Rican b ra n ch e s of The
B a n k o f N o v a S c o tia , H a lifa x , C a n a d a
(“ BNS” )
(to ta l
b ra n c h
d e p o s its
$43 0,5 9 6 ,0 0 0) a n oninsured fo re ig n bank,
u n d e r th e c h a rte r a n d w ith th e title of
S co tia b a n k. In c id e n t to the tran sa ctio n , three
o ffice s of M ercantil and the four Puerto Rican
b ra n c h e s of BNS w o uld b e co m e o ffices of
the resulting b ank with the San Juan (H ato




Rey) b ra n ch of BNS d e sig n a te d as the main
office.
Competition. E ssentially a c o rp o ra te reor­
ganizatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich BNS m ay co n so lid a te m ost
of its o p e ra tio n s in Puerto Rico. BNS has four
b ra n ch e s in Puerto R ico and, sin ce June of
1975, it has had a c o n tro llin g interest in
M ercantil. The tra n sa ctio n w o uld not affe ct
the stru ctu re of co m m e rcia l ba n king or the
co n ce n tra tio n of b a n king reso u rce s w ithin
the relevant m arket.

Financial and Managerial Resources; Fu­
ture Prospects. M e rca n til’s fin a ncia l c o n d i­

San Juan (Rio
Piedras), Puerto
Rico

P ue rto Rican
bra nch es o f The
B ank o f Nova
S cotia

95

tion is re g a rd e d as less than sa tisfa cto ry
b e ca u se of in a d e q u a te ca p ital, poor e arn­
in g s re te n tio n a n d a h ig h v o lu m e o f
nonea rn in g assets. The fin a ncia l co n d itio n of
BNS has proven to be so u n d and g e n era lly
free of such criticism . The resultant institution
sh o u ld, th e re fo re , have the re so u rce s to
c o rre c t M e rca n til’s d e fic ie n c ie s w ithin the
fram e w o rk of a fin a n cia lly sound, F ed e ra lly
insu re d ban king institution. C o n sid era tio ns
relating to m an agerial reso u rce s and the fu ­
ture p ro sp e cts of the resu lta n t institution have
been sa tisfa cto rily resolved.

Convenience and Needs of the Community
to be Served. The resulting bank w ould p ro ­
vid e se rvice s not p re se n tly offe re d in d iv id u ­
a lly by the p a rtic ip a tin g institutions. New se r­
vice s in clu d e h ig h er rates on reg u la r savings
a cco u n ts for cu sto m e rs of BNS; a larger
le n d in g lim it for cu sto m e rs of M ercantil; d e ­
p o sit in su ra n ce fo r cu sto m e rs of BNS; and
co m p u te rize d d e m a n d d e p o sits and instal­
m ent loans fo r cu sto m e rs of both banks. The
p ro p o se d tran sa ctio n , how ever, is e x p e c te d
to have little m aterial im p a c t on co n ve n ie n ce
and needs of the co m m u n ity as su ch ser­
vice s are rea d ily a va ila b le at o ffice s of other
b a n king institutions in the areas served by
the pro p o n e n ts.
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ent
and other relevant m aterial, d isclo se d no
in co n siste n cie s with the p u rp o se s of the Act.
The resultant institution is e x p e c te d to co n ­
tinue to m eet the c re d it needs of its entire
co m m u n ity, c o n siste n t w ith the safe and
sound o p e ra tio n of the institution
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arra n te d .

96

FEDERAL DEPOSIT INSURANCE CORPORATION

Resources
(in thousands
of dollars)

First Marine Bank &
Trust Company of
the Palm Beaches

Banking Offices
in Operation
Before

After

179,879

8

14

116,385

4

Riviera Beach,
Florida

to merge with
First Marine National
Bank and Trust
Company of Lake
Worth
Lake Worth, Florida

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and

and
First Marine National
Bank & Trust
Company, Jupiter,
Tequesta

66,242

2

Tequesta, Florida

S um m ary rep o rt by A tto rn ey G eneral,
M arch 9, 1979
The m erg in g banks are all w h o lly-o w n e d
su b s id ia rie s of the sam e bank ho ld in g co m ­
pany. As such, their p ro p o se d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
A u g u st 6, 1979
First M arine Bank & Trust C o m pa n y of the
Palm Beaches, R iviera Beach, F lorida (“ First
M arin e ” ), an insured State n onm em ber b ank
w ith total reso u rce s of $179,8 7 9 ,0 0 0 and total
IPC d e p o s its of $151,118,000, has a p p lie d ,
p u rsu a n t to Section 18(c) and other p ro vi­
sions of the Federal D eposit Insurance A ct,
for the C o rp o ra tio n ’s p rio r co n se nt to m erg e
with First M arine National Bank and Trust
C o m pa n y of Lake W orth, Lake W orth, Florida
( “ L a ke W o rth ” ), w ith to ta l re s o u rc e s of
$ 1 1 6 ,3 8 5 ,0 0 0 a n d to ta l IPC d e p o s its of
$97,441,000, and First M arine National Bank
& T ru s t C o m p a n y , J u p ite r /T e q u e s ta ,
Tequesta, F lorida (“ T e q u e sta ” ), with total re­
s o u rce s of $ 6 6 ,2 4 2 ,0 0 0 and total IPC d e ­
po sits of $56,079,000. These banks w ould
m erg e u n d er the ch a rte r and title of First
M arine and, in c id e n t to the tran sa ctio n , the
four o ffice s of Lake W orth and the tw o offices
o f T e q u e s ta w o u ld b e e s ta b lis h e d as
b ra n ch e s of the resultant bank.
Competition. Essentially a co rp o ra te reor­
gan izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich First M arine Banks, Inc.,
Riviera Beach, F lorida (“ P arent” ), a bank




h o ld in g co m p a n y, m ay c o n so lid a te its o p e r­
ations in the State of Florida. The p ro p o n e n ts
have been u n d er com m on control sin ce their
a cq u isitio n by Parent (First M arine — 1964;
Lake W orth and T eq u e sta — 1973). The
p ro p o se d m erg e r w ould not a ffe ct the s tru c ­
ture of co m m e rcial ba n king or the co n c e n tra ­
tion of ba n king reso u rce s w ithin the relevant
m arket.
In view of the fo re g o in g , the B oard of
D ire cto rs is of the o p inion that the p ro p o se d
m erg e r w o u ld not, in any se ctio n of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , tend to
crea te a m onopoly, or in any other m anner be
in restraint of trade.

m a n a g e r ia l r e s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this p ro p o sa l.
Financial and m anagerial reso u rce s of the
resultant ba n k w ould be sa tisfa cto ry and its
futu re p ro s p e c ts a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. S e rvice s to be o ffe re d in th e
relevant m arket by the resultant ba n k w ould
not d iffe r m aterially from those p re se n tly of­
fe re d by each prop o n e n t.
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ent
of the three re sp e ctive institutions and other
relevant m aterial, in d ica te s no in co n siste n ­
cies with the p u rp o se s of the Act. The resul­
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it needs of its entire com m unity,
co n siste n t with the safe and sound o p e ra tio n
of the institution.
On the basis of the fo re g o in g inform ation,
the Board of D irectors has c o n c lu d e d that
a p p ro va l of the a p p lica tio n is w arranted.

97

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

W accam aw Bank and
T ru st C om pany

Banking Offices
in Operation
Before

After

2 97,940

46

55

39,400

7

W hiteville, North
C a rolina
(c h a n g e title to
U nited C arolina
Bank, W hiteville)

to merge with
Cape Fear Bank &
T ru s t Com pany
Fayetteville, North
C arolina

Financial and Managerial Resources; Fu­
ture P rospects. P r o p o n e n ts ’ fin a n c ia l a n d

and
C a pitol N ational
Bank

12,246

2

Raleigh, North
C arolina

Sum m ary rep o rt by A tto rn ey G eneral,
M ay 22, 1979
The m erg in g banks are both w ho lly-o w n e d
s u b s id ia rie s of the sam e b ank ho ld in g c o m ­
pany. As such, their p ro p o se d m erg e r is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o uld have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
A u g u s t 13, 1979
W a c c a m a w B a n k a n d T ru s t C o m p a n y ,
W hiteville, North C arolina (“ W a c c a m a w ” ), an
insured State n o n m e m b er bank with total
reso u rce s of $ 2 9 7,9 4 0 ,0 0 0 and total IPC d e ­
p o sits of $226,968,000, has a p p lie d , p u r­
suant to S ection 18(c) and other pro visio n s of
the Federal D ep o sit In su ra n ce Act, for the
C o rp o ra tio n ’s p rio r co n se n t to m erg e with
C a p e Fear Bank & Trust C om pany, F ayette­
ville, North C arolina (“ C a p e F ear” ), an in­
su re d State n o n m e m b er bank with total re­
s o u rce s of $39,4 0 0 ,0 0 0 and total IPC d e ­
p o sits of $31,160,000, and Capitol National
Bank, Raleigh, North C a rolina (“ C a p ito l” ),
with total reso u rce s $12 ,2 4 6 ,0 0 0 and total
IPC d e p o s its of $7,985,000. T hese banks
w o u ld m e rg e u n d e r th e c h a r te r of W a c ­
c a m a w and with the title “ U nited C arolina
Bank, W h ite ville ” and, in cid e n t to the tra n s­
a ction, the e ig h t o ffic e s (in clu d in g one a p ­
p ro ve d but u n o p e n e d ) of C ape Fear and the
tw o o ffic e s of C apito l w ould be e sta b lish e d
as b ra n c h e s of the resultant bank.
Competition. Essentially a co rp o ra te reor­
g a n izatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich U nited C arolina B an csh a re s




C orpo ra tion , W hiteville, N orth C a rolina (“ Un ite d ” ), a b a n k h o ld in g co m p a n y, m ay c o n ­
s o lid a te its o p e r a tio n s in e a s te rn N o rth
C arolina. U nited has one oth er b a n king su b ­
sid ia ry w h ich is lo ca ted in so u th-ce n tra l North
C arolina. The p ro p o n e n ts have been u n d er
co m m o n co n tro l sin ce 1973. The p ro p o se d
m e rg e r w o u ld n o t a ffe c t th e s tr u c tu r e of
co m m e rcia l b a n kin g or the co n ce n tra tio n of
b a n king reso u rce s w ithin the relevant m arket.
In view of the fo re g o in g , the B oard of
D irectors is of the op in io n that the p ro p o se d
m erg e r w o uld not, in any section of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , tend to
cre a te a m onopoly, or in any other m anner be
in restraint of trad e .

m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this prop o sa l.
Financial and m an a g e ria l reso u rce s of the
resultant b a n k w o uld be sa tisfa cto ry and its
futu re p ro s p e c ts a p p e a r favo ra b le .

Convenience and Needs of the Community
to be Served. S ervices to be o ffered in the
relevant m arket by the resultant bank w ould
not d iffer m aterially from those p re se n tly of­
fe re d by each p ro p o n e n t.
A review of a va ilab le inform ation, in c lu d in g
the C o m m u n ity R einvestm ent A c t S tatem ents
of each of the three banks, d isclo se s no
in c o n s is te n c ie s w ith th e p u rp o s e s o f th e
C om m unity R einvestm ent A ct. The resultant
institution is e x p e c te d to co n tin u e to m eet the
c re d it needs of its entire co m m u n ity, co n sis­
tent with the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
ap p ro va l of the a p p lic a tio n is w arra n te d .

Resources
(in thousands
of dollars)

Florida C oast Bank
o f P om pano Beach

Banking Offices
in Operation
Before

176,596

6

42,655

4

P om pano Beach,
Florida
(cha n g e title to
Florida Coast Bank
of B row ard C ounty)

to merge with
F lorida C oast Bank
o f Coral S prings,
N ational
A s s o c ia tio n
M argate, Florida

After

10

98

FEDERAL DEPOSIT INSURANCE CORPORATION
S um m ary rep o rt by A tto rn ey G eneral,
February 26, 1979

The m erg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e bank h o ld in g c o m ­
pany. As such, th e ir p ro p o se d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o u ld have no e ffe ct on co m p e titio n .

p e cte d to co n tinu e to m eet the c re d it needs
of its entire com m unity, co n siste n t with the
safe and sound o p e ra tio n of the institution.
On the basis of the fo re g o in g inform ation,
the Board of D irectors has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.

Basis for C o rpo ra tion A p p ro va l
A u g u s t 20, 1979
F lorida C oast Bank of P om pano Beach,
P o m p a no
Beach,
Florida
(“ Pom pano
B e a c h ” ), an insured State n o n m e m b er bank
with total reso u rce s of $176,5 9 6 ,0 0 0 and total
IPC d e p o s its of $ 138,362,000, has a p p lie d ,
p u rsu a n t to Section 18(c) and other p ro v i­
sions of the Federal D eposit Insurance A ct,
for the C o rp o ra tio n ’s p rio r co n se nt to m erg e
with Florida C oast Bank of Coral S prings,
National
A sso cia tio n ,
M argate,
F lorida
(“ M a rg a te ” ),
with
total
reso u rce s
of
$4 2 ,6 5 5 ,0 0 0 and total IPC d e p o sits of
$32,029,000. These banks w ould m erg e
un d er the ch a rte r of Pom pano Beach and
with the title “ F lorida C oast Bank of Brow ard
C o u n ty ” and, in c id e n t to the tran sa ctio n , the
four o ffice s of M argate w ould be e sta blish e d
as b ra n ch e s of the resultant bank.
Competition. E ssentially a c o rp o ra te reor­
ganizatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich F lorida C oast Banks, Inc.,
P om pano Beach, Florida (“ FC B” ), a bank
h o ld in g co m p a n y, m ay c o n so lid a te its o p e r­
ations in Brow ard C ounty. The p ro p o n e n ts
have been u n d er com m on control since
1974. The p ro p o s e d m erg e r w o uld not a ffe ct
the stru ctu re of co m m e rcial ba n king or the
co n c e n tra tio n of ba n king resources w ithin
the relevant m arket.
In view of the fo re g o in g , the B oard of
D irectors is of the op in io n that the p ro p o se d
m erg e r w o uld not, in any section of the c o u n ­
try, s u b sta n tia lly lessen co m p e titio n , tend to
c rea te a m onopoly, or in any other m anner be
in restraint of trade.

Financial and Managererial Resources;
Future Prospects. P ro p o ne n ts’ fin a ncia l and
m anagerial
reso u rce s
are
c o n sid e re d
a d e q u a te for the p u rp o se s of this prop o sa l,
and the futu re p ro s p e c ts of the resultant bank
a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. S ervices to be o ffered in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those p re se n tly of­
fe re d by each p ro p o n e n t.
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ents
of both banks, d is c lo s e s no in co n siste n cie s
with the p u rp o s e s of the C om m unity Rein­
v e stm e n t A ct. The resultant institution is ex­




Resources
(in thousands
of dollars)

F irst A m erican Bank
o f Dade C ounty

Banking Offices
in Operation
Before

After

67,522

1

2

16,344

1

North Miam i, Florida

to merge with
F irst A m erican Bank
o f Hom estead
H om estead, Florida

S um m ary rep o rt by A tto rn ey G eneral,
A p ril 20, 1979
The m erg in g banks are both m ajorityow ned su b sid ia rie s of the sam e bank ho ld in g
co m p a n y. As such, their p ro p o se d m erger is
esse n tia lly a co rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
A u g u st 20, 1979
First A m e rica n Bank of D ade C ounty, North
M iam i, Florida (“ A p p lic a n t” ), an insured State
n o n m e m b er bank with total a ssets of
$ 67 ,5 2 2 ,0 0 0 and total IPC d e p o sits of
$ 56,895,000, has a p p lie d , p u rsu a n t to S ec­
tion 18(c) and oth er p ro visio n s of the Federal
D ep o sit Insurance Act, for the C o rp o ra tio n ’s
p rio r c o n se n t to m erg e with First A m e rica n
Bank of H om estead, H om estead, Florida
(“ O ther B a n k” ), an insured State n o n m em ber
b ank with total a ssets of $16,3 4 4 ,0 0 0 and
total IPC d e p o sits of $11,611,000. These
b anks w o u ld m erg e u n d e r the ch a rte r and
title of A p p lic a n t and, in cid e n t to the tra n s a c ­
tion, the sole o ffice of O ther Bank w ould be
e sta blish e d as a b ra n ch of the resultant
bank.
Competition. Essentially a co rp o ra te reor­
g anization, the pro p o sa l w ould p ro vid e a
m eans by w hich A m e rica n B ankshares, Inc.,
North M iam i, Florida, a b ank h o ld in g co m ­
pany, m ay co n so lid a te its o p e ra tio n s in the
North M iam i-H o m e ste a d b a n king m arket.
The p ro p o n e n ts have been co m m o n ly co n ­
trolle d by A m e rica n B ankshares, Inc. sin ce
1973. The p ro p o se d m erg e r w ould not affe ct
the stru ctu re of co m m e rcia l ba n king or the

BANK ABSORPTIONS APPROVED BY THE CORPORATION
c o n c e n tra tio n of b a n king resources within
the relevant m arket.
In vie w of the fo re g o in g , the Board of
D ire cto rs is of the op in io n that the p ro p o se d
m erg e r w o u ld not, in any section of the c o u n ­
try, s u b s ta n tia lly lessen co m p e titio n , tend to
c rea te a m onopoly, or in any other m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ financial and
m an a g e ria l
reso u rce s
are
c o n sid e re d
a d e q u a te for the p u rp o se s of this p roposal,
and the resultant b a n k ’s futu re p ro sp e cts
a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. Services to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those p re se n tly of­
fe re d by each p ro p o n e n t.
A review of a va ila b le inform ation, in clu d in g
the C om m unity R einvestm ent A c t Statem ent
of both banks, d is c lo se s no in co n siste n cie s
with the p u rp o se s of the Act. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, co n s is ­
te n t with the safe and sound op e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the B oard of D irectors has c o n c lu d e d that
a p p ro v a l of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

F irst Bank

Banking Offices
in Operation
Before

After

4 6 9 ,7 0 4 *

30

35

39,995

5

New Haven,
C o n n e c tic u t

to acquire the assets and
assume the deposit liabilities
of
The G uaranty Bank
and T ru s t
C om pany
H artford,
C o n n e c tic u t
* D o m e s tic resources.

Sum m ary report by A tto rn ey G eneral,
no rep o rt rece ive d .
Basis for C o rpo ra tion A p p ro va l
A u g u s t 27, 1979
P ursuant to Section 18(c) and other p ro v i­
sions of the Federal D eposit Insurance A ct,
an a p p lic a tio n has been file d on b e h alf of
First Bank, New Haven, C o n n e cticu t, an in­




99

su re d S tate n o n m e m b e r b a n k w ith total
d o m e s tic re so u rce s of $ 4 6 9 ,7 0 4 ,0 0 0 and
total d o m e stic IPC d e p o sits of $ 365,265,000,
for the C o rp o ra tio n ’s co n se n t to a cq u ire the
assets of and assum e the liability to pay
d e p o sits m ade in The G uaranty Bank and
T ru s t C o m p a n y , H a r tfo r d , C o n n e c tic u t
(“ G ua ra n ty B a n k” ), with total reso u rce s of
$ 3 9 ,9 9 5 ,0 0 0 a n d to ta l IPC d e p o s its of
$33,805,000. In cid e n t to the tran sa ctio n , the
five o ffices of G ua ra n ty Bank will be e sta b ­
lished as b ra n ch e s of First Bank. The p ro ­
p o se d tra n s a c tio n is in s e p a ra b le from a
co m p a n io n a p p lic a tio n file d with the Board of
G overnors of the Federal Reserve System
w h e re b y F irstB a n co rp , Inc., N ew Haven,
C o n n e c tic u t (“ B a n c o rp ” ), p a re n t of First
Bank, seeks to a q u ire the o u tsta n d in g shares
of sto ck of the tw o co m m e rcial banks af­
filia te d w ith G uaranty Bank, w hich to g e th e r
p re se n tly form The C o n n e cticu t B a n cF ed e ration, Inc., H artfo rd , C o n n e c tic u t (“ CBF).
U pon co n su m m a tion of the related tra n s a c ­
tions, CBF and G uaranty Bank will be liq u i­
d ated.
Competition. First Bank o p e ra te s 30 o ffices
in so u th-ce n tra l C o n n e cticu t and a single
fo re ig n o ffice in the C aym an Islands. W hile
ce n te re d ch ie fly in New Haven and heavily
re p re se n te d in th a t city and s u rro u n d in g
com m u n ities, First Bank o p e ra te s a b ra n ch
n e tw o rk e n c o m p a s s in g a p p ro x im a te ly 50
m iles of C o n n e cticu t co a stlin e from M ilford in
the w est to New London in the east, as well as
o ffices in the W a llin gfo rd area north of New
Haven. G uaranty Bank o p e ra te s a total of five
o ffice s in the city of H artford and in the
a d jo in in g tow n of W est H artford in northcentral C o n n e cticu t.
The relevant m arket in w h ich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the p rim a ry se rvice area
of G uaranty Bank w h ich in clu d e s the city of
H artford and the a d ja c e n t co m m u n ities of
E a st H a rtfo rd , W e th e rs fie ld , a n d W e st
H artford. This area co n tain s an estim a te d
1970 p o p ula tio n in e xce ss of 3 0 0 ,0 0 0 and
has a d ive rsifie d e co n o m ic base e n co m ­
p a ssin g g o ve rn m e nta l se rvice s, c o m m e rce
and heavy industry. H artford is the state
c a p ital and co n tain s a large, w e ll-e sta b lish e d
in su ra n ce industry.
The tra d e areas of First Bank and G uaranty
Bank are se p a ra te and d is tin c t w ith their
clo se st o ffice s a p p ro xim a te ly 25 road m iles
d istant. The inte rve n in g M eridan SM SA (1970
p o p u la tio n 5 5 ,9 5 9 ) and th e N ew B rita in
SMSA (1970 p o p u la tio n 145,269) serve to
e ffe ctive ly se p a ra te the H a rtfo rd relevant
m arket from areas now se rve d by First Bank.
A ffilia te s of G uaranty Bank, ba se d in New

100

FEDERAL DEPOSIT INSURANCE CORPORATION

Britain and Terryville, w hose clo se st o ffices
are lo ca te d a p p ro x im a te ly 12 and 31 road
m iles, re s p e c tiv e ly from the nearest o ffice of
First Bank, are re g a rd e d as also serving
d is tin c tly s e p a ra te m arkets and do not c o m ­
pete, to any sig n ific a n t d e g re e , w ith First
Bank. The p ro p o s e d tran sa ctio n , therefore,
w o u ld not e lim inate any sig n ifica n t existing
c o m p e titio n betw een the tw o ba n king or­
g a n iza tio n s involved.
In the H artford relevant m arket a total of
seven co m m e rcial banks are rep re se n te d ,
with G u a ra n ty Bank h o ld in g a m od e st 2.2
p e rc e n t share of the m arke t’s co m m e rcial
b a n k IPC d e p o s it base. The area is d o m i­
nated by the s ta te ’s tw o la rg e st co m m e rcial
banks, both of w h ich are based in H artford,
w h ich a g g re g a te ly hold an 88.1 p e rc e n t
share of the m a rk e t’s co m m e rcial bank IPC
d e p o sits. C onsum m ation of the p ro p o se d
tra n sa ctio n w o uld m erely su b stitu te a large
s o u th e rn C o n n e c tic u t-b a s e d c o m m e rc ia l
b ank for an in e ffe ctive c o m p e tito r in the
H artford m arket and w o uld not have any
a d ve rse e ffe c t upon the structu re of c o m ­
m ercial b a n king in this relevant area.
C o n n e c tic u t s ta tu te s p e rm it s ta te w id e
m erg e r and de novo b ra n ch in g activity, s u b ­
je c t to a hom e o ffice p ro te ctio n provision.
F irs t B a n k is th e re fo re p ro h ib ite d fro m
b ra n c h in g into the city of H artford and other
co m m u n ities co n ta in in g an e xisting b a n k ’s
head office. G uaranty Bank and its affiliates
fa c e sim ilar d iffic u lty in e xp a n d in g southw ard
into areas now served by First Bank. In a d d i­
tion, G u a ra n ty B a n k ’s p re se n t w e a ke n e d
co n d itio n serves to p re ve n t it and its p a re n t
from e m b a rkin g upon any form of e xp a nsio n
into new m arkets at this tim e. The pro p o sa l
w o u ld have little e ffe c t upon the p otential for
in c re a s e d c o m p e titio n b e tw e e n th e tw o
ba n king o rg a n iza tio n s in the fo re se e a b le fu ­
ture.
B a n co rp, h o ld in g 4.4 p e rce n t of C o n n e c­
tic u t’s total co m m e rcial bank de p osits, ranks
as the s ta te ’s e ig h th la rg e st co m m e rcia l
b a n king o rg a n iza tio n. CBF, holding a 1.4
p e rc e n t share of such funds, ranks as C on­
n e c tic u t’s eleventh la rg e st b anking o rg a n iz a ­
tion. The p ro p o s e d series of tran sa ctio n s will
result in a b a n king o rg a n iza tio n w hich will
rank as C o n n e c tic u t’s seventh largest, h o ld ­
ing a m od e st 5.8 p e rc e n t share of the s ta te ’s
c o m m e rc ia l bank d e p o sits. Such a c o n se ­
q u e n c e is not v ie w e d as having any s ig n ific ­
ant a d ve rse c o m p e titiv e im p a ct in light of the
n u m b e r of s u b sta n tia lly la rg e r ba n king o r­
g a n izatio n s in the state w hich offer intense
co m p e titio n .
The B oard of D ire cto rs is of the op in io n that
the p ro p o s e d tra n sa ctio n w ould not, in any




se ctio n of the country, su b stan tia lly lessen
co m p e titio n , tend to crea te a m onopoly, or in
any other m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of G uaranty Bank have been se ri­
ously w e a ke n ed by serious asset p ro b le m s
and d e p o s it losses in rece n t m onths. The
p ro p o se d tran sa ctio n is a ve h icle w h e re b y
th e se p ro b le m s m ay be resolved within the
fram e w o rk of a relatively larger, fin a ncia lly
so u n d c o m m e rc ia l b a n k in g o rg a n iz a tio n .
C o n sid era tio ns relating to the fin a ncia l and
m an agerial reso u rce s of the resultant bank
have been sa tisfacto rily resolved, and its
futu re p ro s p e c ts a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. The a va ilab ility of an a d d itio n a l
regional ba n king o rg a n iza tio n in the H artford
m arket w h ich can offer h ig h er le n d in g limits
and a d d itio n a l ban king se rvice s than p re s­
ently a va ilab le at offices of G uaranty Bank
should a cc ru e to the b e n efit of the local
co m m u n ity. C o n sid era tio ns relating to the
co n ve n ie n ce and needs of the co m m u n ity
are co n siste n t with and a d d som e w e ig h t in
fa vo r of a p p ro va l of the a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts and other relevant m ate­
rial, d is c lo s e d no in co n siste n cie s w ith the
p u rp o se s of the Act. The resultant bank is
e x p e c te d to c o n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the bank.
B ased on the fo re g o in g , the B oard of Di­
rectors has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

S ou thea st Beach
S tate Bank

21,187

Banking Offices
in Operation
Before

After

2

3

Bay C ounty (P. 0 .
Panam a City),
Florida
(cha n g e title to
S outheast Bank of
Panam a City)

to merge with
S ou thea st N ational
Bank o f Panama
C ity
Panam a City,
Florida

12,974

1

BANK ABSORPTIONS APPROVED BY THE CORPORATION
S um m ary rep o rt by A tto rn ey G eneral,
M arch 30, 1979
The m e rg in g banks are both w h o lly-o w n e d
s u b s id ia rie s of the sam e b a n k h o ld in g co m ­
pany. As such, their p ro p o s e d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe c t on co m p e titio n .

101

with the p u rp o se s of the Act. The resultant
institution is e x p e c te d to co n tin u e to m eet the
c re d it needs of its entire co m m u n ity, c o n sis­
tent with the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w a rranted.

Basis fo r C o rpo ra tion A p p ro val
S e p te m b e r 10, 1979
S outheast Beach State Bank, Bay C ounty
(P. O. P anam a City), Florida (“ A p p lic a n t” ), an
insu re d State n o n m e m b er b ank w ith total
reso u rce s of $21,187,000 and total IPC d e ­
po sits of $ 1 5,772,000, has a p p lie d , p u rsu a n t
to S ection 18(c) and other p ro visio n s of the
Federal D ep o sit In su ra n ce A ct, for the C or­
p o ra tio n ’s p rio r co n s e n t to m erg e with South­
east N ational Bank of Panam a City, Panam a
City, Florida (“ O ther B a n k” ), with total re­
s o u rce s of $ 1 2 ,9 7 4 ,0 0 0 and total IPC d e ­
po sits of $9,040,000. These banks w o uld
m erg e u n d er the ch a rte r of A p p lic a n t and
with the title “ S outheast Bank of Panam a
C ity ” . The one existing and one a p p ro v e d but
u n o p e n e d o ffic e of O ther Bank w o uld be
e s ta b lis h e d as b ra n ch e s of the resu lta n t
bank.
Competition. E ssentially a co rp o ra te reor­
ga n izatio n , the p ro p o sa l w o u ld p ro vid e a
m eans by w h ich S outheast Banking C o rp o ­
ration, M iam i, Florida, a m ulti-b a nk h o ld in g
co m p a n y, m ay co n s o lid a te its o p e ra tio n s in
the Panam a C ity area. The p ro p o n e n ts have
been co m m o n ly c o n tro lle d sin ce 1974. The
p ro p o s e d m erg e r w o u ld not a ffe ct the s tru c ­
ture of c o m m e rcia l ba n king or the c o n c e n tra ­
tion of b a n king reso u rce s w ithin the relevant
m arket.
In vie w of the fo re g o in g , the B oard of
D ire cto rs is of the o p in io n that the p ro p o se d
m e rg e r w o u ld not, in any se ctio n of the co u n ­
try, s u b s ta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any other m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this prop o sa l.
F inancial and m an a g e ria l resources of the
resu lta n t ba n k w o uld be sa tisfa cto ry and its
fu tu re p ro s p e c ts a p p e a r favorable.

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffe r m ate ria lly from those p re se n tly of­
fe re d by each p ro p o n e n t.
A review of ava ilab le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R e investm ent
A c t Statem ents, d is c lo se s no in co n siste n cie s




Resources
(in thousands
of dollars)

B ayB ank
N ew ton-W altham
T ru st C om pany

Banking Offices
in Operation
Before

After

524,503

31

64

4 8 2,405

33

W altham ,
M assa ch u se tts
(ch a n g e title to
BayB ank
M idd le se x)

to merge with
BayB ank M iddlesex,
N. A.
B urlington,
M assa ch u se tts
S um m ary rep o rt by A tto rn ey G eneral,
June 27, 1979
The m erg in g banks are both w h o lly-o w n e d
s u b sid ia rie s of the sam e ba n k h o ld in g c o m ­
pany. As such, their p ro p o s e d m erg e r is
esse n tia lly a c o rp o ra te reo rg a n iza tio n and
w o uld have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
S e p te m b e r 17, 1979
B a y B a n k N e w to n -W a lth a m T ru st C o m ­
p any, W a lth a m , M a s s a c h u s e tts (“ A p p lic ­
a n t” ), an insured State n o n m e m b e r b a n k with
total reso u rce s of $ 5 2 4 ,5 0 3 ,0 0 0 and total IPC
d e p o sits of $390,871,000, has a p p lie d , p u r­
suant to Section 18(c) and o ther p ro visio n s of
the Federal D e p o sit In su ra n ce A ct, for the
C o rp o ra tio n ’s p rio r co n se n t to m erg e with
B ayB ank M idd le se x, N. A., B urlington, M as­
s a c h u s e tts ,
w ith
to ta l
re s o u rc e s
of
$ 4 8 2 ,4 0 5 ,0 0 0 a n d to ta l IPC d e p o s its of
$3 6 9,329,000. These tw o ba n ks w o uld m erg e
u n d er the ch a rte r of A p p lic a n t and with the
title “ B ayB ank M id d le s e x ” . The 33 o ffice s of
B ayB ank M idd le se x, N. A. w o u ld be e s ta b ­
lished as b ra n ch e s of the resultant bank, and
the m ain o ffice lo cation w ould be re d e s ig ­
nated to the p re se n t m ain o ffice lo cation of
B ayB ank M idd le se x, N. A.

102

FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. Essentially a co rp o ra te reor­
ga n izatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich BayB anks, Inc., Boston,
M assa ch u se tts, a bank h o ld in g co m p a n y,
m ay c o n s o lid a te the b ulk of its o p e ra tio n s in
M id d le s e x C ounty. The p ro p o n e n ts have
been co m m o n ly c o n tro lle d sin ce 1929. The
p ro p o s e d m erg e r w ould not a ffe ct the s tru c ­
ture of c o m m e rcia l ban king or the c o n c e n tra ­
tion of ba n king reso u rce s w ithin the relevant
m arket.
In vie w of the fo re g o in g , the B oard of
D ire cto rs is of the o p in io n that the p ro p o se d
m erg e r w ould not, in any section of the c o u n ­
try, s u b sta n tia lly lessen co m p e titio n , te n d to
cre a te a m onopoly, or in any other m anner be
in restraint of trade.
Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this p ro p o sa l,
and the fu tu re p ro s p e c ts of the resultant ba n k
a p p e a r favo ra b le .

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant b ank w ould
not d iffe r m ate ria lly from those p re se n tly of­
fe re d by each pro p o n e n t.
A review of ava ilab le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t Statem ents, d is c lo s e d no in co n siste n cie s
with the p u rp o s e s of the Act. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, co n s is ­
tent with the safe and sound op e ra tio n of the
institution.
On the b asis of the fo re g o in g inform ation,
the B oard of D irectors has co n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

A m erican P acific
State Bank

Banking Offices
in Operation
Before

After

26,363

2

3

7,134*

1

Los A n g e le s (Sun
Valley), C a lifornia

to acquire the assets and
assume the deposit liabilities
of
S herm an Oaks
B ranch —
M an ufacture rs
Bank
Los A n g e le s,
C alifo rn ia
* Total IPC d e p o s its of o ffic e to b e tra n s fe rre d by
M a n u fa c tu re rs Bank. A ss e ts not re p o rte d by office .




S um m ary rep o rt by A tto rn ey General,
A p ril 20, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e that it w ould not have a
s u b stan tia l c o m p e titive im pact.
B asis for C o rpo ra tion A p p ro va l
S e p te m b e r 17, 1979
A m e rica n P a cific State Bank, Los A ngeles,
(Sun Valley), C alifo rn ia (“ A m e ric a n ” ), an in­
sured State no n m e m b er b a n k with total re­
so u rce s of $26 ,3 6 3 ,0 0 0 and total IPC d e ­
p osits of $ 1 9,727,000, has a p p lie d , pu rsu a n t
to Section 18(c) and other p ro visio n s of the
F ederal D e p o sit In su ra n ce A ct, fo r the C or­
p o ra tio n ’s p rio r co n se n t to a cq u ire the assets
of and a ssu m e the lia b ility to pay the d e p o sits
m ade in the S herm an O aks Branch of M an­
u fa c tu re rs Bank, Los A n g e le s, C a lifo rn ia
( “ M a n u fa c tu r e r s ” ). T he S h e rm a n O a ks
B ra n c h , w ith
to ta l
IPC d e p o s its
of
$ 7,134,000, w o u ld be o p e ra te d as a b ra n ch
of A m e rica n .
Competition. A m e rica n o p e ra te s its head
o ffice in the co m m u n ity of Sun Valley and a
b ra n c h a c q u ir e d in 1 9 7 8 fro m a San
F ra n cisco -b a se d ba n k in the a d ja ce n t co m ­
m unity of North H ollyw ood, both loca tio n s in
the San F ernando Valley p ortion of the city of
Los A n g e le s. The Sherm an O aks o ffice to be
a cq u ire d is lo ca ted in the co m m u n ity of
Sherm an O aks in the southern portion of the
San F ernando Valley a p p ro xim a te ly 8 road
m iles so u thw est of A m e ric a n ’s head o ffice
and a p p ro xim a te ly 4 road m iles from its North
H ollyw ood O ffice.
The relevant m arket in w hich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the co m m u n ity of Sher­
m an O aks w hich is lo ca ted a p p ro xim a te ly 15
road m iles n o rth w e st of the “ d o w n to w n ”
b u sin ess d is tric t of Los A ngeles. Sherm an
O aks is p rim a rily a resid e n tia l co m m u n ity
with a p o p u la tio n estim a te d at 63,000. As
A m e rica n is not re p re se n te d in this relevant
m arket and a p p e a rs to de rive little of its
b u siness from the co m m u n ity, the p ro p o se d
tra n sa ctio n is re g a rd e d as having no s ig ­
n ifican t e ffe ct u pon existing co m p e titio n .
A total of 10 co m m e rcia l banks o p e ra te 16
o ffices in the Sherm an O aks m arket. In­
c lu d e d am ong th e se banks are several of
C a lifo rn ia ’s la rg e st co m m e rcial banks, with
the three la rg e st banks in the m arket a g g re ­
g a tely co n tro llin g 67.3 p e rce n t of the m ar­
ke t’s IPC d e p o s it base. In cid e n t to the p ro ­
p o se d tra n s a c tio n , M a n u fa c tu re rs , w h ich
p re se n tly h olds only a m od e st 2.2 p e rce n t
share of the m a rke t’s IPC d e p o sits, ranking it
as the sm alle st b a n k rep re se n te d in the m ar­
ket, will w ith d ra w and be re p la ce d by A m e ri­

BANK ABSORPTIONS APPROVED BY THE CORPORATION
can. The p ro p o s e d tra n sa ctio n w o u ld have
no a d v e rs e e ffe c t upon the structu re of co m ­
m ercial ba n king in this relevant area.
A s C a lifo rn ia sta tu te s p e rm it sta te w id e
b ra n ch in g activity, either A m e rica n or M an­
u fa c tu re rs ca n e n ter the areas p re se n tly
served by the other by m eans of de novo
b ra n ch e xpansion. The m a n a g e m en t of M an­
ufa cture rs, how ever, has in d ica te d its inten­
tio n of c o n c e n tra tin g its e n e rg ie s in the
w h o le sale b a n king fie ld and is unlikely, after
d is p o s in g of its retail b ra n ch e s in the San
Fern a n do Valley, to e xp a n d into the retailo rie n te d areas now se rve d by A m e rica n in
the fo re s e e a b le future. A m e rica n , with its
ra p id ly g ro w in g but lim ited reso u rce based,
is un likely to e xp a nd into the heavily banked
a re a s s u c h as S h e rm a n O a ks w h e re a
n u m b e r of large ba n king o rg a n iza tio ns are
firm ly e sta b lish e d . The p ro p o se d tran sa ctio n
w o u ld not elim inate any sig n ifica n t potential
for c o m p e titio n betw e en the pro p o n e n ts.
U n der the c irc u m s ta n ce s, the B oard of
D ire cto rs is of the o p in io n that the p ro p o se d
tra n s a c tio n w o uld not, in any section of the
co u n try , s u b s ta n tia lly lessen c o m p e titio n ,
tend to cre a te a m onopoly, or in any other
m anner be in restraint of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. The m anagerial reso u rce s of
A m e rica n and of the resultant bank are re­
g a rd e d as sa tisfacto ry. With the p ro p o se d
ad d itio n to the ca p ital stru ctu re of the resul­
tant bank, its fin a ncia l resources will be
a d e q u a te to s u p p o rt the p ro p o se d a c q u is i­
tion, and the resultant ba n k is a n ticip a te d to
have fa v o ra b le futu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. The p ro p o sa l will not a ffe ct the
n u m b e r of b a n king o ffice s serving the Sher­
m an O aks com m unity, nor is it e xp e cte d to
have any m aterial im p a ct upon the level of
c o m m e rc ia l b a n k in g s e rv ic e s a v a ila b le .
A m e rica n , how ever, is a n ticip a te d to co m ­
p ete m ore a g g re s s iv e ly for the retail-o rie n te d
b a n king b u siness in the co m m u n ity than has
M an u fa ctu re rs. C o n sid era tio ns of c o n ve n i­
e n ce and n eeds of the co m m u n ity are c o n ­
sistent w ith a p p ro va l of the tran sa ctio n .
A review of a va ilab le inform ation, in clu d in g
the C o m m u n ity R einvestm ent A ct S tatem ents
of the tw o re s p e c tiv e in stitutions and other,
relevant m aterial, in d ica te s no in co n siste n ­
cies with the p u rp o s e s of the Act. The resu l­
tant b a n k is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is ­
te n t with the safe and sound op e ra tio n of the
bank.
Based on the fo re g o in g , the Board of Di­
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.




103

Resources
(in thousands
of dollars)

F irst-C itize n s Bank & 1,292,597
T ru st C om pany

Banking Offices
in Operation
Before

After

228

229

R aleigh, North
Carolina

to merge with
Bank o f Conway

4,451

1

Conw ay, North
C arolina
S um m ary rep o rt by A tto rn ey G eneral,
M arch 21, 1980
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w o uld not have an
ad ve rse e ffe ct upon co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
O c to b e r 1, 1979
F irs t-C itiz e n s B a n k & T ru st C o m p a n y ,
Raleigh, North C arolin a (“ F irst-C itize n s” ), an
insured State n o n m e m b er b a n k with total
reso u rce s of $ 1 ,2 9 2 ,5 9 7 ,0 0 0 and total IPC
d e p o s its of $ 1 ,0 0 7 ,7 0 8 ,0 0 0 , has a p p lie d ,
p u rsu a n t to S ection 18(c) and o ther p ro vi­
sions of the Federal D e p o sit Insu ra n ce Act,
for the C o rp o ra tio n ’s p rio r co n se n t to m erg e
w ith B a n k o f C o n w a y , C o n w a y , N o rth
C arolina (“ O ther B a n k” ), w ith total reso u rce s
of $ 4 ,4 5 1 ,0 0 0 and total IPC d e p o s its of
$ 3,628,000. The ba n ks w o uld m erg e u n d er
the ch a rte r and title of F irst-C itizens and,
in cid e n t to the m erger, the one existing office
of O ther Bank w o u ld b e co m e a b ra n ch of the
resultant bank, in cre a sin g the nu m b e r of its
o ffice s to 229.
Competition. F irs t-C itiz e n s is th e fifth
la rg e st ba n k in North C arolina. It cu rre n tly
o p e ra te s 228 o ffice s th ro u g h o u t the state.
The nearest o ffice of F irst-C itizens to O ther
Bank is lo ca ted in W eldon, a p p ro xim a te ly 26
m iles w est of Conw ay, w h e re O ther Bank
o p e ra te s its only office. The areas se rve d by
the tw o banks do not ove rla p , and the p ro ­
po se d m erg e r w o uld not elim inate any s ig ­
n ifican t existing co m p e titio n b etw een them .
The e ffe ct of this p ro p o sa l w ould be m ost
p ro n o u n ce d in the p rim a ry m arket area of
O ther Bank w h ich e xte n d s fo r tw elve to fif­
teen road m iles from Conw ay. C onw ay is a
rural v illa g e in N o rth a m p ton County, and the
m arket area in clu d e s a su b stan tia l pa rt of
N o rth a m p ton C ounty and w estern H ertford
County, North C arolina, and the Boykins and
B ra n c h v ille c o m m u n itie s in S o u th a m p to n
C ounty, Virginia. There are six b a n king in­
stitutions o p e ra tin g e ig h t ba n king o ffices in

104

FEDERAL DEPOSIT INSURANCE CORPORATION

the relevant m arket area, in clu d in g three of­
fic e s of the s e co n d larg e st bank in the state.
O th e r Bank has only 5.2 p e rce n t of the total
IPC d e p o s its in the m arket area, and is the
s m alle st of the six banks. F irst-C itizens is not
re p re se n te d in the m arket area and, inas­
m uch as the p ro p o sa l w ould m erely s u b s ti­
tute F irst-C itizens fo r O ther Bank at the sam e
site, the local m arket stru ctu re w ould not be
a ffe cte d .
U nder North C arolina law, each bank could
e sta blish de novo b ra n ch e s in areas served
by the other bank. B ecause of its lim ited
resources, O ther Bank is u nlikely to e n g a g e
in any such de novo b ra n c h in g a ctivity.
F irst-C itizens has the c a p a b ility for de novo
b ra n c h in g , but there is little ince n tive to enter
by this route b e ca u se of the n u m ber of c o m ­
m ercial ba n king o ffices a lre a d y in the m arket
area. It th e re fo re a p p e a rs unlikely that any
s ig n ific a n t p otential co m p e titio n w o uld be
elim in a te d by the p ro p o se d m erger.
B ased on the fo re g o in g , the Board of Di­
rectors is of the o p inion that the p ro p o se d
m e rg e r w o uld not, in any section of the co u n ­
try, s u b sta n tia lly lessen co m p e titio n , tend to
c re a te a m on o p o ly, or in any other m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. Both p ro p o n e n ts have sa tis­
fa c to ry fin a ncia l and m anagerial resources,
as w o u ld the resultant bank. Future p ro s ­
p e c ts a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. C onsum m ation of this p ro ­
p o se d m erg e r w ould m ake ava ilab le to the
p u b lic a m ore a g g re s s ive banking o rg a n iz a ­
tion w h ich will p ro v id e e xp a n d e d ba n king
se rvice s to the p e o p le of C onw ay and its
relevant m arket area. C o n sid era tio ns of c o n ­
v e n ie n ce and needs are there fo re co n sisten t
with a p p ro va l of the p ro p o se d m erger.
A review of ava ilab le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t Statem ents, d is c lo se s no in co n siste n cie s
w ith the p u rp o s e s of the Act. The resultant
institution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n sis­
tent with the safe and sound ope ra tio n of the
institution.
B ased on the fo re g o in g , the Board of Di­
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.




Resources
(in thousands
of dollars)

Erie S avings Bank

Banking Offices
in Operation
Before

1,898,590

15

7,504

After

1

16

B uffalo, New York

to merge with
F redonia S avings
and Loan
A s s o c ia tio n
F redonia, New York
Sum m ary report by A tto rn ey G eneral,
June 27, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w o uld not have a
su b stan tia l co m p e titive im pact.
Basis for C o rpo ra tion A p p ro val
O cto b e r 1, 1979
Erie Savings Bank, Buffalo, N ew York, an
insured m utual savin g s bank with total re­
s o u rce s of $ 1 ,89 8 ,5 9 0 ,00 0 and total d e p o sits
of $1,75 8 ,4 1 9 ,00 0 , has a p p lie d , p u rsu a n t to
S ection 18(c) and other p ro visio n s of the
F ederal D ep o sit In su ra n ce A ct, for the C or­
p o ra tio n ’s co n se n t to m erge, u n d er its ch a r­
ter and title, with F redonia Savings and Loan
A sso cia tio n , F redonia, New York (“ FSL” ), a
F e d e ra lly-in su re d , S ta te -ch a rte re d sa vin g s
and loan asso cia tio n with total reso u rce s of
$7 ,50 4 ,0 0 0 and total d e p o sits of $6,901,000,
and to esta blish the sole o ffice of FSL as a
b ra n ch of Erie S avings Banks w h ich w ould
co m m e n ce o p e ra tio n with a total of 16 fullse rvice offices.
Competition. Erie Savings Bank, e s ta b ­
lished in 1854, o p e ra te s 15 fu ll-se rvice of­
fice s in three co u n tie s of w estern New York
state. H e a d q u a rte re d in Buffalo, Erie Savings
Bank is p rim a rily rep re se n te d in that city and
su rro u n d in g areas of Erie County. A d d itio n al
b ra n ch e s are o p e ra te d at Jam estow n and in
the O lean area, a p p ro xim a te ly 65 and 75
m iles south of Buffalo, resp e ctive ly. The in­
stitution has been a ctive in e sta blish in g EFT
Units and p re se n tly o p e ra te s such fa cilitie s in
10 counties, as far east as the S yracuse area.
FSL, e sta b lish e d in 1927, o p e ra te s its sole
office in the V illage of F redonia (1970 p o p u ­
lation 10,326) a p p ro xim a te ly 45 m iles so u th ­
w est of Buffalo.
The relevant m arket in w h ich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the area w ithin a 10-12
roa d -m ile radius of F re d o n ia-D u n kirk c o n ­
ta in in g an e stim a te d 1970 p o p u la tio n of
40,000. The V illage of F redonia is lo ca ted in
northern C h a u tau q u a C ounty a d ja c e n t to the

BANK ABSORPTIONS APPROVED BY THE CORPORATION

c ity of D unkirk (1970 p o p u la tio n 16,855)
w h ich is a m ajor ce n te r for m an u fa ctu rin g
and ind u stria l activity. Southern p o rtio n s of
C h a u ta u q u a C ounty are m ore a g ricu ltu ra lly
o rie n te d . Stainless steel p ro d u c ts and p ro c ­
e ssed fo o d s p ro v id e the ch ie f n o n ag ricu ltura l
e m p lo y m e n t a lternatives, with the State Univ e r is ty C o lle g e a t F re d o n ia p r o v id in g
e m p lo ym e n t fo r a p p ro x im a te ly 1,100.
The p ro p o n e n ts ’ c lo se st o ffices are lo ca ted
a p p ro x im a te ly 32 road m iles a p a rt and serve
se p a ra te , d is tin c t m arkets. FSL o p e ra te s in a
sm all lo ca lize d area in w h ich only three thrift
institution o ffice s are loca ted , of w hich FSL is
by far the sm alle st in share of total thrift
d e p o s its held. C o nsum m ation of the p ro ­
p o se d tran sa ctio n w ould m erely su b stitu te
Erie Savings Bank fo r a relatively sm all, local
s a vin g s a nd loan a sso cia tio n and w ould have
no s ig n ific a n t e ffe ct on e xisting co m p e titio n
or any a d ve rse im p a c t upon the structu re of
th rift institution b a n king in this relevant m ar­
ket.
The p o s s ib ility that any s ig n ifica n t level of
c o m p e titio n m ay d e v e lo p b etw een the p ro ­
po n en ts th ro u g h de novo b ra n ch in g a p p e a rs
rem ote. Erie S avings Bank, g o ve rn e d by a
state statute w hich lim its such de novo ex­
p a n sion to a sin g le o ffic e e ach year, is
v ie w e d as an unlikely p otential entrant into
the F redonia m arket in the fo re se e a b le future.
The m o d e st size and lim ited reso u rce s of
FSL, w hich has o p e ra te d from a sin g le o ffice
sin ce in ce p tio n , w o u ld seem to p re clu d e any
m ea n in g fu l de novo e xp a nsio n e ffort on its
pa rt into areas now served by Erie Savings
Bank.
The B oard of D ire cto rs is of the o p inion that
the p ro p o s e d m e rg e r w ould not, in any s e c ­
tion of the co u n try, s u b sta n tia lly lessen c o m ­
p e tition, tend to c re a te a m on o p o ly or in any
other m anner be in restraint of trade.

105

of both p ro p o n e n ts and o ther relevant m ate ­
rial, d isclo se d no in co n siste n cie s with the
p u rp o se s of the A ct. The resu lta n t institution
is e x p e c te d to co n tinu e to m eet the c re d it
n eeds of its entire co m m u n ity, co n siste n t with
its safe and sound opera tio n .
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

Bank of
C h incoteague, Inc.

Banking Offices
in Operation
Before

After

7,832

1

4

38,987

3

C h in co tea g u e ,
V irginia
(ch a n g e title to
Farm ers &
M erch a n ts Bank —
Eastern Shore)

to merge with
Farm ers &
M erchants
N ational Bank in
O nley
O nley, V irg in ia

S um m ary rep o rt by A tto rn ey G eneral,
A u g u st 13, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w o u ld not have a
s ig n ifica n tly a d ve rse e ffe ct upon c o m p e ti­
tion.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l resources of

Basis for C o rp o ra tio n A p p ro val
O cto b e r 1, 1979

both p ro p o n e n ts are a d e q u a te fo r p u rp o se s
of this tran sa ctio n . A p otential m an a g e m en t
s u c c e s s io n p ro b le m at FSL w ould be re­
so lve d by Erie Savings B a n k’s sa tisfacto ry
m an a g e m en t a d m in iste rin g the affairs of the
resultant institution w hose futu re p ro sp e cts
a p p e a r favorable.

Pursuant to Section 18(c) and oth er p ro v i­
sions of the Federal D e p o sit Insurance Act,
an a p p lic a tio n has been filed on b e h a lf of
Bank of C h in co tea g u e , Inc., C h in co tea g u e ,
V irg in ia (“ B O C ” ), an in su re d S tate n o n ­
m e m b e r b a n k w ith to ta l r e s o u r c e s of
$ 7 ,8 3 2 ,0 0 0 a n d to ta l IPC d e p o s its o f
$6,444,000, fo r the C o rp o ra tio n ’s co n se n t to
m erge, u n d er its charter, with F arm ers &
M erchants National Bank in O nley, Onley,
V irg in ia ("F a rm e rs B a n k ” ), w ith total re ­
so u rce s of $38 ,9 8 7 ,0 0 0 and total IPC d e ­
p osits of $ 3 4,267,000, and to esta blish the
three o ffice s of Farm ers Bank as b ra n ch e s of
the resu lta n t bank w hich w ould bear the title
"F a rm e rs & M e rc h a n ts B ank — E astern
S h o re ” . In cid e n t to the tran sa ctio n , the m ain

Convenience and Needs of the Community
to be Served. Erie Savings B a n k’s entry into
th e F re d o n ia -D u n k irk m arke t w o uld m ake
ava ila b le a se co n d so u rce of certain thrift
institution se rvice s not now o ffered by FSL.
C o n sid era tio ns relating to co n ve n ie n ce and
n e e ds of the c o m m u n ity to be served are
c o n s is te n t w ith a p p ro v a l of the a p p lica tio n .
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct Statem ents




106

FEDERAL DEPOSIT INSURANCE CORPORATION

o ffic e lo cation of the resultant ba n k w o u ld be
re d e s ig n a te d to the site of the cu rre n t m ain
o ffic e of Farm ers Bank.
Competition. BO C o p e ra te s its sole o ffice
in the tow n of C h in c o te a g u e (1970 p o p ula tio n
1,852) on C h in c o te a g u e Island in northern
A c c o m a c k C o u n ty on V ir g in ia ’s e a s te rn
shore. Farm ers Bank o p e ra te s its head o ffice
at O nley in cen tra l A c c o m a c k C ounty and tw o
bra n ch e s, one in the extrem e southern p o r­
tion of the co u n ty at Belle Haven and one at
O ak Hall, serving the northern portion of the
c ounty.
The relevant m arket in w hich to assess the
c o m p e titiv e im p a c t of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the northern portio n of
A c c o m a c k C ounty w ithin w hich BOC co m ­
petes. A c c o m a c k C ounty (1970 p o p ula tio n
29,004) is p rim a rily a g ricu ltu ra lly orie n te d
w ith p o u ltry p ro d u c tio n and p ro ce ssin g , v e g ­
e ta ble s, lum ber, tourism , and seafood p ro c ­
essing co n trib u tin g to the local e co n o m ic
base. The p o p ula tio n is relatively sta b le with
only a sm all d e c lin e in e vid e n ce betw een
1960 and 1970. The c o u n ty ’s 1978 m edian
househ o ld b u ying level is s ig n ifica n tly below
the c o m p a ra b le state fig u re . In the northern
portion of the county, the W allops Island
F light C enter of the National A e ro n a u tics and
S p a ce A d m in istra tio n (“ N AS A” ) se p a ra te s
C h in c o te a g u e Island from the bulk of A c ­
c o m a c k County. T ra n sp o rta tio n th ro u g h V ir­
g in ia ’s eastern shore region and A c c o m a c k
C ounty is p rim a rily in a north-south d ire ctio n
along the U. S. Route 13 co rrid o r. The town of
C h in c o te a g u e is lo c a te d a p p ro x im a te ly 9
m iles east of this h ig h w ay artery, a c ce ssib le
only by a sin g le road and ca u se w a y pa ssin g
th ro u g h the NASA center.
The c lo se st o ffic e of Farm ers Bank to BOC
is lo ca ted at O ak Hall in northern A c c o m a c k
C ounty a p p ro x im a te ly 10 road m iles w est of
C h in co tea g u e . This o ffic e ’s location near the
ju n ctio n of U. S. Route 13 and the d ire c t
ea st-w e st road le a d in g to C h in co te a g u e in­
d ic a te that there is som e e xisting co m p e titio n
betw een the tw o banks. The am ount of actual
d ire c t c o m p e titio n a p p e a rs lim ited, how ever,
with only a m od e st nu m b e r of d e p o sit and
loan cu sto m e rs at the O ak Hall o ffice being
dra w n from the C h in co te a g u e area. BO C
p rim a rily serves th e island and tow n of C h in ­
co te a g u e , a relatively isolated area, w hile the
O ak Hall o ffic e of Farm ers Bank, w hich is of
r e la tiv e ly m o d e s t s iz e (to ta l d e p o s its
$5 ,913,000), serves the northern portion of
the c o u n ty along the U. S. Route 13 co rrid o r.
The relevant m arket is d o m in a te d by the
p re s e n c e of a Bank of V irg in ia office, ho ld in g
59.4 p e rc e n t of the m a rke t’s IPC d e p o sits, a
m arket share m ore than d o u b le that w hich




w o uld be held by the resultant bank, su b ­
se q u en t to the instant m erg e r p roposal.
V irg in ia statutes pe rm it de novo b ra n ch
e x p a n s io n b y e ith e r o f th e p ro p o n e n ts
th ro u g h o u t A c c o m a c k County. Farm ers Bank
w ould be unlikely, how ever, to e xp a n d de
novo into the C h in co te a g u e are a of A c ­
c o m a c k C ounty now served by BOC and
an other in d e p e n d e n t co m m e rcia l bank, due
to the relatively low p o p ula tio n d ensity. BOC,
with its lim ited resource base, is unlikely to
e xp a nd de novo into m ore d ista n t areas now
served by Farm ers Bank, having o p e ra te d as
a unit b ank sin ce 1940 w hen BOC clo se d its
only b ra n ch , lo ca ted north of O ak Hall. The
loss of som e p otential for in cre a se d futu re
co m p e titio n betw een the tw o banks is not
re g a rd e d as having a s ig n ific a n t co m p e titive
im pact.

Financial and Managerial Resources; Fu­
ture Prospects. Financial reso u rce s of both
p ro p o n e n ts and of the resultant b a n k are
re g a rd e d as sa tisfacto ry. C o n su m m a tion of
the p ro p o se d tran sa ctio n will resolve a m an­
a g e m e n t su cce ssio n p ro b le m at BOC. The
resultant b ank is a n ticip a te d to have fa vo ra ­
ble fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. The resultant b ank will offer a
b ro a d e r ran g e of co m m e rcial ban king ser­
vice s than p re se n tly a va ilab le at the o ffice of
BOC. Deposit and loan rates will be restruc­
tured to reflect current m arket conditions.
C o n sid e ra tio n s relating to c o n ve n ie n ce and
needs of the co m m u n ity to be served are
c o n siste n t with a p p ro va l of the a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of both p ro p o n e n ts and o ther relevant m ate ­
rial, d isclo se d no in co n siste n cie s with the
p u rp o se s of the Act. The resultant b ank is
e x p e c te d to co n tinu e to m eet the c re d it
ne e ds of its entire com m unity, co n sisten t with
the safe and sound o p e ra tio n of the institu ­
tion.
Based on the fo re g o in g , the B oard of Di­
recto rs has co n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in thousands
of dollars)

Surety National Bank

Banking Offices
in Operation
Before

47,973

4

81,813

After

3

7

Los A n g e le s (P. O.
Encino), C alifornia
(c h a n g e title to
C alifo rn ia O verseas
Bank)
(c o n v e rt to State
ch a rte r)

to merge with
California Overseas
Capital Co., Inc.
(in o rg a n iza tio n)
Los A n g e le s,
C alifo rn ia

and
California Overseas
Bank
Los A ngeles,
C a lifornia

S um m ary rep o rt by A tto rn ey G eneral,
S e p te m b e r 19, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w o u ld not have a
s u b stan tia l c o m p e titiv e im pact.
Basis for C o rpo ra tion A p p ro val
O c to b e r 5, 1979
P ursuant to Section 18(c) and other p ro vi­
sions of the Federal D ep o sit Insurance A ct,
an a p p lic a tio n has been file d on beh alf of
Surety N ational Bank, Los A n g e le s (P.O. Encin o ), C alifo rn ia (‘‘Surety B a n k” ) w ith total
reso u rce s of $ 4 7 ,9 7 3 ,0 0 0 and total IPC d e ­
po sits of $ 2 9,633,000, fo r the C o rp o ra tio n ’s
p rio r co n se n t to m erge, upon Surety B a n k’s
c o n ve rsio n to a State ch a rte r, with C alifornia
O verseas C apital Co., Inc., a noninsured
C a lifo rn ia C o rpo ra tion in orga n iza tio n, and
to su b s e q u e n tly m erg e u n d er the new state
c h a rte r w ith C a lifornia O verseas Bank, Los
A n g e le s, C a lifornia (“ C O B ” ), with total re­
s o u rce s of $81 ,8 1 3 ,0 0 0 and total IPC d e ­
p o sits of $52,143,000. In cid e n t to the p ro ­
p o s e d tran sa ctio n , the three offices of COB
w o u ld be e s ta b lis h e d as b ra n ch e s of the
resultant ba n k w h ich w o u ld bear the title
‘‘C alifo rn ia O verseas B a n k” , and the m ain
o ffic e lo ca tio n of the resultant bank w ould be
re d e s ig n a te d to the p re se n t m ain o ffice site
of COB.
Competition. Surety Bank, h e a d q u a rte re d
in the co m m u n ity of E ncino in the San Fer­




107

n a n d o V a lle y p o rtio n of th e c ity of Los
A n g e le s, o p e ra te s b ra n ch e s in the c o m m u n ­
ity of R eseda and in the C ivic C enter D istrict
of the city of Los A ng e le s, and a b ra n ch at
M arina del Rey in so u thw este rn Los A n g e le s
C ounty. COB, h e a d q u a rte re d in the city of
Los A ngeles, a p p ro xim a te ly 4 m iles w est of
the “ d o w n to w n ” portion of the city, o p e ra te s
its three o ffices in the W ilshire B oulevard
co rrid o r with b ra n ch e s in the co m m u n ity of
W estw ood and in the city of Beverly Hills. A
rep re se n ta tive o ffice is also o p e ra te d in M a­
nila, P hilippines. C alifo rn ia O verseas Capital
Co., Inc., is a n o n insu re d co rp o ra tio n in o r­
g a n izatio n , w hich will be utilized as a ve h icle
to e ffe ct a co rp o ra te reo rg a n iza tio n , within
the fram e w o rk of the p ro p o se d transaction,
and w hich w ould have no e ffe ct on c o m p e ti­
tion in any relevant area.
Each of th e p ro p o n e n ts ’ o ffic e s serve
lo ca lize d m arkets in the h ig h ly d e ve lo p e d
urb a n portio n s of Los A n g e le s C ounty. The
p ro p o se d union of the tw o in stitutions w o uld
have its m ost d ire c t and im m e d ia te c o m p e ti­
tive im p a ct on those co m m u n ities now served
by Surety Bank, the sm alle r of the tw o banks
involved. COB is not rep re se n te d in any of
these m arkets with no o ve rla p of se rvice
areas in e vid e n ce . The p ro p o n e n ts ’ clo se st
o ffice s are lo ca te d a p p ro xim a te ly 4 m iles
a p a rt in a h ig h ly co n g e s te d urban area c o n ­
ta in in g num erous co m m e rcia l ba n king a lte r­
natives. C O B ’s o ffice s serve se p a ra te , d is ­
tin c t m arkets from th o se se rve d by Surety
B a n k’s o ffice s and the tw o banks are not
re g a rd e d as b e in g in d ire c t co m p e titio n to
any sig n ifica n t d e g re e .
In each of the fo u r relevant b a n king m ar­
kets served by Surety Bank, the institution
ranks as a relatively in e ffe ctive c o m p e tito r
with d e clin in g m arket shares. Surety Bank
holds m arket shares betw e en 0.1 p e rce n t
and 6.6 p e rce n t of of the IPC d e p o sits in
these four m arkets w h ich , in each case, is a
m arket share sig n ific a n tly sm aller than that
held by the su b sta n tia lly la rg e r banks re p ­
resented in these m arkets. Three of the four
Surety Bank o ffice s have su ffe re d d e p o sit
outflow s in the tw o year p e rio d June, 1977 to
June, 1979. The b a n k ’s three b ra n ch e s, all of
w hich w ere e s ta b lish e d m ore than ten years
ago, have fa ile d to d e ve lo p a sig n ifica n t
m arket pen etra tio n and d e p o sit gro w th in
their re sp e ctive m arkets, in sp ite of the g e n ­
erally fa vo ra b le e co n o m ic and g ro w th p ro s ­
p e cts p re va le n t in th e se areas.
CO B and Surety B ank rank as the 30th and
4 3 rd la rg e st co m m e rcia l banks, resp e ctive ly,
in share of d e p o sits held in Los A n g e le s
C ounty, a g g re g a te ly h o ld in g less than 0.3
p e rce n t of the C o u n ty’s IPC co m m e rcial ba n k

108

FEDERAL DEPOSIT INSURANCE CORPORATION

d e p o sits. In the State of C alifornia, the two
b a n ks are am ong the S ta te ’s sm allest a g g re ­
g a te ly h o ld in g only a nom inal vo lu m e of
C a lifo rn ia ’s co m m e rical bank de p osits. C o n ­
s u m m a tio n of th e p ro p o s e d tra n s a c tio n
w o u ld have little im p a c t on the level of c o n ­
ce n tra tio n of ba n king reso u rce s or on the
s tru c tu re of co m m e rcial ban king in any rele­
va n t area.
C a lifo rn ia s ta tu te s p e rm it s ta te w id e de
novo b ra n c h in g and m erg e r activity, th e re ­
fore, each p ro p o n e n t has the p otential to
e x p a n d into the m arkets now served by the
o th e r. C o m m e rc ia l b a n k in g in th e Los
A n g e le s C ounty area is d o m in a te d by o ffice s
of m ost of the sta te ’s la rg e st co m m e rcial
banks. O ver 1,200 ban king o ffices have been
e s ta b lis h e d in the county, with the s ta te ’s five
la rg e st co m m e rcial banks o p e ra tin g m ore
than 800 of these o ffices.
In such a ba n king environm ent, the loss of
som e p otential for in cre a se d levels of c o m ­
petitio n to d e v e lo p betw een the pro p o n e n ts,
g iven their m od e st relative size and level of
resources, is re g a rd e d as having little c o m ­
p e titive im pact.
The B oard of D ire cto rs is of the o p in io n that
the p ro p o s e d m erg e r w ould not, in any s e c ­
tion of the country, su b sta n tia lly lessen c o m ­
petition, tend to c rea te a m on o p o ly or in any
o ther m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of CO B are reg a rd e d as s a tis fa c ­
tory for p u rp o se s of this tran sa ctio n . Surety
Bank has e x p e rie n c e d earn in g s p ro b le m s
w hich w o uld be resolved by union with COB.
The resultant bank, with the p ro p o se d a d d i­
tions to it ca p ital structu re , is a n ticip a te d to
have fa v o ra b le futu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. Surety Bank has ce a se d to
fu n ctio n as an e ffe ctive c o m p e tito r in the
m arkets it p re se n tly serves. C onsum m ation
of the p ro p o s e d tran sa ctio n , while having
little im p a c t upon the typ e s and p ricin g of
c o m m e rc ia l b a n k in g s e rv ic e s o ffe re d in
these com m u n ities, will p ro vid e an a d d itio n a l
fu ll-s e rv ic e b a n k in g a lte rn a tiv e at S urety
B a n k’s o ffic e locations. C o n sid era tio ns re­
lating to c o n v e n ie n c e and needs of the c o m ­
m unity to be served are co n sisten t with a p ­
proval of the a p p lic a tio n .
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts, d is c lo s e d no in co n siste n ­
cies with the p u rp o s e s of the A ct. The resul­
tant b ank is e x p e c te d to co n tinu e to m eet the
c re d it n eeds of its entire co m m u n ity, co n s is ­
tent w ith the safe and sound o p e ra tio n of the
institution.




Based on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arranted.

Resources
(in thousands
of dollars)

Central Bank

Banking Offices
in Operation
Before

642,732

47

48,439

5

18,657

3

28,645

After

3

58

O akland, California

to merge with
First National Bank of
Fresno
Fresno, California

and
Tahoe National Bank
South Lake Tahoe,
C alifornia

and
Valley Bank, National
Association
Liverm ore, California
S um m ary rep o rt by A tto rn ey G eneral,
February 9, 1979
The m erg in g banks are all w ho lly-o w n e d
su b sid ia rie s of the sam e bank ho ld in g c o m ­
pany. As such, the p ro p o se d m erg e r is e s­
s e n tia lly a c o rp o ra te re o rg a n iz a tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro val
O cto b e r 15, 1979
C e n tra l
B a n k,
O a k la n d ,
C a lifo rn ia
(“ A p p lic a n t” ), an insured State no n m e m b er
b ank with total reso u rce s of $ 6 42,732,000
and total IPC d e p o sits of $ 511,062,000, has
a p p lie d , p ursuant to Section 18(c) and other
p ro visio n s of the Federal D ep o sit Insurance
A ct, for the C o rp o ra tio n ’s p rio r co n se n t to
m erge, un d er its ch a rte r and title, with: First
National Bank of Fresno, Fresno, C alifornia
(“ F N B ” ), with total reso u rce s of $ 4 8 ,439,000
and total IPC d e p o sits of $36,718,000; Tahoe
N ational Bank, South Lake Tahoe, C alifornia
( “ T N B ” ), with total reso u rce s of $ 1 8 ,657,000
and total IPC d e p o sits of $14,817,000; and,
Valley Bank, National A sso cia tio n , Liverm ore,
C a lifo rn ia (“ V a lle y B a n k ” ), w ith total re ­
so u rce s of $28 ,6 4 5 ,0 0 0 and total IPC d e ­
posits of $25,305,000. Incident to the trans­
action, the five offices of FNB, the three of­
fice s of TNB, and the three o ffice s of Valley
Bank w ould be e s ta b lish e d as b ra n ch e s of
the resultant bank.

109

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Competition. E ssentially a co rp o ra te reo r­
g a n izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich Central B anking System ,
Inc., O akland, C alifornia, a m ulti-b a nk h o ld ­
ing c o m p a n y, m ay c o n so lid a te these fo u r
b a n k in g s u b s id ia rie s in to a s in g le n o n ­
m em b e r bank. At least 90 p e rc e n t com m on
co n tro l of these four b a n ks has existed for
so m e years, and th e ir p ro p o s e d m e rg e r
w o u ld not a ffe c t the stru ctu re of co m m e rcial
b a n king or the co n c e n tra tio n of ban king re­
so u rce s in any relevant area.
The Board of D irectors is of the op in io n that
the tra n sa ctio n w ould not, in any section of
the co u n try, s u b s ta n tia lly lessen co m p e titio n ,
tend to cre a te a m onopoly, or in any o ther
m anner be in restraint of trad e .
Financial and Managerial Resources; Fu­
ture Prospects. The p ro p o n e n ts ’ m anagerial
reso u rce s are c o n s id e re d a d e q u a te for the
p u rp o s e s of th is p ro p o s a l. F in a n cia l re­
so u rc e s of the resultant bank, with the c o n ­
te m p la te d in cre a se in the ca p ita liza tio n of
A p p lic a n t w ould be a c c e p ta b le , and the re­
su lta nt bank is a n tic ip a te d to have fa vo ra b le
fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d by the
resultant bank w ould not d iffe r m ate ria lly from
those p re s e n tly offe re d by each of the p ro ­
ponents.
A review of a v a ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct Statem ents
of p ro p o n e n ts and oth er relevant m aterial,
d is c lo s e d no in c o n s is te n cie s with the p u r­
poses of the A ct. The resultant ba n k is e x­
p e c te d to co n tinu e to m eet the c re d it needs
of its entire co m m u n ity, co n siste n t with the
safe and sound o p e ra tio n of the institution.
B ased on the fo re g o in g , the B oard of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arra n te d .




Resources
(in thousands
of dollars)

Southeast First Bank
of Jacksonville

46,961

Banking Offices
in Operation
Before

After

2

4

Ja ckso n ville , Florida
(ch a n g e title to
S outheast Bank of
Jackso n ville )

to merge with
Southeast Bank of
Edgewood

13,308

1

46,201

1

Ja ckso n ville , Florida

and
Southeast First
National Beach
Bank
Ja ckso n ville Beach,
F lorida
S um m ary rep o rt by A tto rn ey G eneral,
M ay 11, 1979
The m erg in g b a n ks are all w h o lly-o w n e d
s u b sid ia rie s of the sam e ba n k ho ld in g c o m ­
pany. As such, th e ir p ro p o s e d m erg e r is es­
s e n tia lly a c o rp o ra te re o rg a n iz a tio n a n d
w o u ld have no e ffe ct on co m p e titio n .
Basis for C o rp o ra tio n A p p ro va l
O cto b e r 15, 1979
S o u th e a s t F irs t B a n k o f J a c k s o n v ille ,
J a ckso n ville , F lo rid a (“ A p p lic a n t” ), an in­
s u re d S ta te n o n m e m b e r b a n k (to ta l re ­
s o u rc e s $ 4 6 ,9 6 1 ,0 0 0 ; to ta l IPC d e p o s its
$29,4 7 2 ,0 0 0 ), has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and o th er p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
prio r co n se n t to m erg e with S outheast Bank
of E d g e w o o d , Ja ckso n ville , Florida, a State
m em b e r b a n k (total reso u rce s $13,308,000;
total IPC d e p o sits $ 1 0 ,627,000), and S outh­
east First National Beach Bank, Ja ckso n ville
Beach, F lorida (total reso u rce s $46,201,000;
to ta l IPC d e p o s its $ 3 6 ,4 9 4 ,0 0 0 ). T h e se
banks w ould m erg e u n d e r the ch a rte r of
A p p lic a n t and w ith the title “ S outheast Bank
of Ja c k s o n v ille ” . The sole o ffice of each of the
tw o banks b e in g a c q u ire d w ould be e s ta b ­
lished as b ra n ch e s of the resultant bank.
Competition. E ssentially a co rp o ra te reor­
ganizatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w h ich S outheast B anking C o rp o ­
ration, M iam i, F lorida, a b a n k h o ld in g c o m ­
pany, m ay co n so lid a te its o p e ra tio n s in Duval
County. The p ro p o n e n ts have been u n d er
co m m o n co n tro l since 1976. The p ro p o se d
m erg e r w o u ld not a ffe ct the stru ctu re of

110

FEDERAL DEPOSIT INSURANCE CORPORATION

c o m m e rcia l ba n king or the c o n ce n tra tio n of
c o m m e rc ia l banking reso u rce s w ithin the re­
levant m arket.
In vie w of the fo re g o in g , the B oard of Di­
recto rs is of the op in io n that the p ro p o se d
m e rg e r w ould not, in any section of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , te n d to
cre a te a m onopoly, or in any other m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te fo r the p u rp o se s of this prop o sa l.
F inancial and m an agerial reso u rce s of the
resultant ba n k w ould be sa tisfacto ry, and its
fu tu re p ro s p e c ts a p p e a r favo ra b le .

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those p re se n tly of­
fe re d by each p ro p o n e n t.
A review of a va ila b le inform ation, in clu d in g
the p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t S tatem ents, d is c lo se s no in co n siste n cie s
with the p u rp o s e s of the A ct. The resultant in­
stitution is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is ­
tent with the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro v a l of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

American Beach
Boulevard Bank

Banking Offices
in Operation
Before

19,994

3

16,184

After

1

5

Jacksonville, Florida
(c ha n g e title to
A m erican Bank)

to merge with
American Arlington
Bank
Jacksonville, Florida

and
American Mandarin
Bank

14,040

1

Jacksonville, Florida

Sum m ary report by A tto rn ey General,
June 27, 1979
The m erg in g banks are all w h o lly-o w n e d
s u b sid ia rie s of the sam e b a n k h o ld in g c o m ­
pany. As such, th e ir p ro p o se d m erg e r is




e sse n tia lly a co rp o ra te reo rg a n iza tio n and
w o u ld have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
O cto b e r 22, 1979
A m e ric a n
B each
B o u le v a rd
Bank,
J a ckso n ville , F lorida (“ A p p lic a n t” ), an in­
sured State non m e m b er b a n k with total re ­
s o u rce s of $19 ,9 9 4 ,0 0 0 and total IPC d e ­
p o sits of $ 17,512,000, has a p p lie d p u rsu a n t
to Section 18(c) and oth er p ro visio n s of the
Federal D ep o sit In su ra n ce A ct, fo r the C or­
p o ra tio n ’s p rio r co n se n t to m erg e with A m e ri­
can A rlin g to n Bank, Ja ckso n ville , Florida, an
insured State no n m e m b er ba n k with total
reso u rce s of $ 1 6 ,1 8 4 ,0 0 0 and total IPC d e ­
p o sits of $14,308,000, and A m e rica n M an­
d arin Bank, Ja ckso n ville , Florida, an insured
State n o n m e m b er bank with total resources
of $ 1 4 ,0 4 0 ,0 0 0 and total IPC d e p o sits of
$ 1 2 ,4 5 3 ,0 0 0 . T hese b a n ks w o u ld m e rg e
u n d er the ch a rte r of A p p lic a n t and w ith the
title “ A m e rica n B a n k” . The sole o ffice of each
of the tw o banks b e ing a cq u ire d w o u ld be
e sta b lish e d as b ra n ch e s of the resu lta n t
bank. The m ain o ffice lo ca tio n will be re d e s­
ig n a te d to the p re se n t site of A m e rica n M an­
da rin Bank.
Competition. Essentially a co rp o ra te reor­
g a n izatio n , the p ro p o sa l w o uld p ro vid e a
m eans by w hich A m e rica n Banks of Florida,
Inc., Ja ckso n ville , Florida, a b a n k h o ld in g
co m p a n y, m ay co n so lid a te three of its b a n k­
ing su b sid ia rie s in the city of Jackso n ville .
The p ro p o n e n ts have been co m m o n ly c o n ­
trolle d sin ce 1974. The p ro p o s e d m erg e r
w o uld not a ffe ct the structu re of co m m e rcial
b a n king or the co n ce n tra tio n of b a n king re­
so u rce s w ithin the relevant m arket.
In vie w of the fo re g o in g , the B oard of
D irectors is of the o p in io n that the p ro p o se d
m e rg e r w o u ld not, in any se ctio n of the c o u n ­
try, su b sta n tia lly lessen co m p e titio n , tend to
cre a te a m onopoly, or in any o ther m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this proposal,
and the future p ro s p e c ts of the resultant bank
a p p e a r favorable.

Convenience and Needs of the Community
to be Served. S ervices to be o ffered in the
relevant m arket by the resultant bank w ould
not d iffe r m aterially from those pre se n tly of­
fe re d by each p ro p o n e n t.
A review of a va ilab le inform ation, in clu d in g
th e p ro p o n e n ts ’ C o m m u n ity R einvestm ent
A c t S tatem ents, d isclo se s no in co n siste n cie s
w ith the p u rp o se s of the A ct. The resultant
institution is e xp e c te d to co n tin u e to m eet the

BANK ABSORPTIONS APPROVED BY THE CORPORATION
c re d it needs of its entire co m m u n ity, c o n sis­
tent w ith the safe and sound o p e ra tio n of the
institution.
On the basis of the fo re g o in g inform ation,
the B oard of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

Peoples Bank of
Hancock

Banking Offices
in Operation
Before

11,726

1

6,405

After

2

1

H a n co ck, M aryland

to merge with
Antietam Bank
Company
H a gerstow n,
M aryland
Sum m ary rep o rt by A tto rn ey General,
D e c e m b e r 7, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and c o n c lu d e that it w ould not have any
s ig n ific a n t e ffe ct u pon co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
O c to b e r 29, 1979
Pursuant to Section 18(c) and oth er p ro v i­
sions of the Federal D ep o sit Insurance Act,
an a p p lic a tio n has been file d on behalf of the
P eoples Bank of H a n co ck, H ancock, M ary­
land (“ P eoples B a n k ” ), an insu re d State
n o n m e m b e r b a n k with total reso u rce s of
$ 1 1 ,7 2 6 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 1 0,462,000, for the C o rp o ra tio n ’s p rio r c o n ­
sent to m erg e with A n tie ta m Bank C om pany,
H ag e rsto w n , M aryland ( “ A ntietam B a n k” ), an
insured State n o n m e m b er bank with total
reso u rce s of $ 6 ,40 5 ,0 0 0 and total IPC d e ­
p o sits of $4,313,000. In cid e n t to the p ro ­
p o se d tra n sa ctio n , the sole o ffice of Antietam
Bank w o u ld be e s ta b lis h e d as a b ra n ch of the
resultant bank.
Competition. P eoples Bank o p e ra te s its
sole o ffic e in the city of H a n co ck (1970
p o p u la tio n 1,832) lo c a te d in the n a rro w
p a n h a n d le of w estern W a shington County,
M aryland, near the P ennsylvania and W est
V irg in ia State bo rd e rs. P eop'es Bank is af­
filia te d w ith S u b u rb a n B a n c o r p o r a tio n ,
H yattsville, M aryland, a m ulti-b a nk h o ld in g
c o m p a n y c o n tro llin g th re e co m m e rcial banks
in M aryland with a g g re g a te d e p o sits in ex­
ce ss of $1 billion. A ntietam Bank o p e ra te s its
sole o ffic e in the c ity of H a g e rsto w n (1970




p o p ula tio n 26,543) in eastern W ashington
County.
The relevant m arket in w h ich to assess the
co m p e titive im p a ct of the p ro p o se d tra n s a c ­
tion is re g a rd e d as an area w ithin a p p ro x i­
m a te ly 10 ro a d m ile s o f th e c ity o f
H ag e rsto w n in eastern W ash in g to n County.
W a s h in g to n C o u n ty (1 9 7 0 p o p u la tio n
103,289, an in cre a se of 13.8 p e rce n t from
1960) is p rim a rily a g ricu ltu ra lly o rie n te d with
m a n u fa ctu rin g a ctivity ce n te re d in the vicin ity
of H agerstow n. The c o u n ty ’s 1978 m edian
h o u sehold bu yin g level of $13,282 is 19 p e r­
ce n t be lo w the c o m p a ra b le state figure.
The p ro p o n e n ts ’ o ffice s are lo ca ted m ore
than 25 road m iles a p a rt with no overlap of
se rvice areas in e vid e n ce and with num erous
co m m e rcial ba n king a lte rn a tive s located in
the in tervening area. P eoples Bank is lo ca ted
in the m ore m ou n ta in o us p ortion of w estern
W ash in g to n C ounty and w hile som e resi­
d e n ts of the H a n co ck area co m m u te to the
H ag e rsto w n area fo r em p lo ym e nt, such in­
te ra ctio n b etw een the tw o co m m u n ities is
lim ited and o f little c o m p e titive sig n ific a n c e
to th e p ro p o s e d tra n s a c tio n . As n e ith e r
P eoples Bank nor any affiliate of S u b u rba n
B a n c o r p o r a tio n is r e p r e s e n te d in th e
H ag e rsto w n m arket, co n su m m a tion of the
p ro p o se d tra n sa ctio n w o u ld have no s ig ­
n ifican t e ffe ct on existing co m p e titio n .
In the relevant m arket, 8 co m m e rcial banks
o p e ra te 34 offices. A n tietam Bank has failed
to esta blish a s ig n ific a n t m arket p e n etra tio n
and holds less than $4 m illion in IPC d e p o sits
rep re se n tin g only a 1.4 p e rce n t share of the
m a rke t’s total IPC d e p o s it base. The m a rke t’s
three la rg e st banks, m easured by share of
d e p o sits held, a g g re g a te ly con tro l m ore than
75 p e rce n t of the m a rke t’s IPC d e p osits.
R e p resented in this m arket are several of the
sta te ’s la rg e st b a n king o rg a n iza tio ns, p ro ­
vid in g intense co m p e titio n . In such a c o m ­
pe titive b a n king e nvironm ent, the a c q u isitio n
of A n tietam Bank by an affilia te of S u b u rba n
B a n co rpo ra tion w o u ld have no a d ve rse ef­
fe c t on the level of d e p o s it co n ce n tra tio n or
on the stru ctu re of co m m e rcia l ba n king in the
relevant m arket.
S u b u rb a n B a n c o rp o ra tio n is the fo u rth
la rg e st ba n king o rg a n iza tio n in M aryland,
h o ld in g 9.5 p e rce n t of the s ta te ’s total co m ­
m ercial b ank d e p o sits. A c q u isitio n of A n ti­
etam Bank, w hich h olds less than 0.1 p e rce n t
of such fu n ds, w o u ld have no m aterial im p a ct
upon the level of co n ce n tra tio n of co m m e r­
cial ba n king reso u rce s in the state.
M aryland state sta tu te s p e rm it sta te w ide
m erg e r and de novo b ra n ch in g activity, s u b ­
je c t to ce rta in m inim um ca p ita liza tio n re­
q u ire m e nts, and therefore, each p ro p o n e n t

FEDERAL DEPOSIT INSURANCE CORPORATION
has the potential to e xp a nd into areas now
se rve d by the other. A n tietam Bank lacks the
reso u rce s and e x p e rie n ce to m ount a m ajor
exp a nsio n effort, in the fo re se e a b le future,
into d ista n t areas p re se n tly served by S u b u r­
ba n B a n c o rp o ra tio n a ffilia te s . S u b u rb a n
B a n c o r p o r a tio n , w h ile p o s s e s s in g th e
n e c e s s a ry re s o u rc e s a n d e x p e rie n c e to
b ra n ch de novo into the H a g erstow n m arket,
w o uld fin d such entry on a de novo basis
d iffic u lt in light of the nu m b e r of relatively
la rg e ba n king o rg a n iza tio ns a lre a d y well e s­
ta b lis h e d in that m arket. The loss of som e
lim ited p otential for future co m p e titio n to d e ­
v e lo p b etw een the p ro p o n e n ts is re g a rd e d as
having little co m p e titiv e im pact.
The B oard of D irectors is of the op in io n that
the p ro p o s e d tran sa ctio n w ould not, in any
section of the country, su b stan tia lly lessen
co m p e titio n , tend to c rea te a m on o p o ly or in
any oth er m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. C o n sid era tio ns relating to
fin a n c ia l and m an a g e ria l re so u rce s have
been s a tisfa cto rily resolved and the resultant
bank is a n tic ip a te d to have fa vo ra b le futu re
p ro sp e cts.

Convenience and Needs of the Community
to be Served. The resultant bank w o uld be
able to offer a b ro a d e r ran g e of co m m e rcial
b a n king s e rvice s than p re se n tly a va ilab le at
A n tie ta m B a n k. W h ile su ch c o m m e rc ia l
b a n k in g fu n c tio n s a re a v a ila b le in th e
H a g e rsto w n c o m m u n ity at o ffices of other
m ajor regional and sta te w ide ban king o r­
ga n izatio n s rep re se n te d there, c o n su m m a ­
tion of the p ro p o s e d tran sa ctio n will b rin g an
a d d itio n a l alte rn a te so u rce of such se rvice s
to the com m unity. C o n sid era tio ns relating to
the co n v e n ie n c e and needs of the co m m u n ity
to be served are c o n siste n t with a p p ro va l of
the a p p lic a tio n .
A review of a v a ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts, d is clo se d no in co n siste n ­
cie s w ith the p u rp o se s of the Act. The resu l­
tant bank is e x p e c te d to co ntinue to m eet the
c re d it n eeds of its entire com m unity, c o n s is ­
tent w ith the safe and sound o peration of the
institution.
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w arranted.




Resources
(m thousands
of dollars)

First State Bank of
Oregon

371,679

Banking Offices
in Operation
Before

After

29

31

M ilwaukie, O regon

to merge with
The Community Bank

20,838

2

Lake O swego,
O regon

and
First State Interim
Bank of Oregon
(In organization)
Milwaukie, O regon

i

S um m ary report by A tto rn ey General,
June 27, 1979
The p ro p o s e d m ergers are p a rt of a plan
th ro u g h w hich Hood River C ounty Bank and
First State Bank of O regon w o uld b e co m e
s u b sid ia rie s of P acw est B a n co rp, a bank
h o ld in g co m p a n y. The instant m ergers, ho w ­
ever, w o u ld m erely co m b in e existing banks
with n o n -o p e ra tin g institutions; as such, and
w ithout reg a rd to the a cq u isitio n of the sur­
viv in g b a n ks by P a cw e st B a n co rp , th e y
w ould have no e ffe ct on co m p e titio n .
Basis for C orpo ra tion A p p ro val
O cto b e r 29, 1979
Pursuant to Section 18(c) and other p ro v i­
sions of the Federal D eposit Insu ra n ce Act,
an a p p lic a tio n has been file d on beh alf of
First State Bank of O regon, M ilw aukie, O re­
gon (“ First B a n k” ), an insured State non­
m e m b e r b a n k w ith to ta l r e s o u r c e s of
$ 3 7 1 ,6 7 9 ,0 0 0 and to ta l IPC d e p o s its of
$279,1 0 2 ,0 0 0, for the C o rp o ra tio n ’s co n se nt
to m erge, un d er its ch a rte r and title, with The
C o m m u n ity Bank, Lake O sw e g o , O reg o n
(“ C om m unity B a n k” ), with total reso u rce s of
$ 2 0 ,8 3 8 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 17,162,000, and with First State Interim
Bank of O regon, M ilw aukie, O regon (“ First
Interim B a n k” ), a p ro p o se d new bank in
o rg a n iza tio n, and for co n se n t to esta blish the
tw o o ffice s of C om m unity Bank as b ra n ch e s
of the resultant bank. The pro p o sa l is pa rt of
a series of tran sa ctio n s w h e re b y a m ultibank
ho ld in g co m p a n y, P acw est B a n co rp, M il­
w aukie, O regon, will be fo rm e d to a cq u ire all
of the o u tsta n d in g shares of sto ck of the
resultant b a n k in this p ro p o sa l plus tw o other
co m m e rica l banks lo ca ted in H ood River and
M cM innville, O regon.
Competition. First Bank, h e a d q u a rte re d in

BANK ABSORPTIONS APPROVED BY THE CORPORATION
the city of M ilw aukie in su b u rb a n Portland,
o p e ra te s 28 o ffice s in the three co u n tie s of
th e P o rtla n d (O re g o n ) m e tro p o lita n area
(1970 p o p u la tio n 880,675) and a single de
novo b ra n ch in Salem , a p p ro xim a te ly 45
m iles south of Portland. C om m unity Bank is
h e a d q u a rte re d in the C la cka m a s C ounty
p ortion of the city of Lake O sw e g o and o p e r­
a te s a de novo b ra n c h (e s ta b lis h e d in
January, 1976) at the Portland State U niver­
sity c a m p u s in the c ity of Portland, a p p ro x i­
m ately 6 m iles north of its head office. C om ­
m unity B a n k’s only other de novo b ranch, in
O reg o n City, a p p ro x im a te ly 5 m iles so u th ­
east of Lake O sw e g o and 6 m iles south of
M ilw aukie, was d is c o n tin u e d d u rin g 1976.
First State Interim Bank of O regon, M ilw aukie,
O regon, is a n o n op e ra tin g bank in o rg a n iza ­
tion w hich will be utilized as a ve h icle to
effe c t a co rp o ra te reo rg a n iza tio n , w ithin the
fra m e w o rk of the p ro p o sa l, and w hich w o uld
have no e ffe ct on c o m p e titio n in any relevant
area.
The c ity of P o rtla n d (1 9 7 0 p o p u la tio n
38 2,619) is the ch ie f industrial, co m m e rcial
and fin a n cia l ce n te r for m uch of the state and
the C o lu m b ia River Valley. The city, w hile
lo ca ted p rin c ip a lly in M ultnom ah County, has
g ro w n to e n c o m p a s s p ortions of a d jo in in g
C la cka m a s and W a h ington Counties. The city
of M ilw aukie ( t9 7 0 p o p ula tio n 16,379) a d ­
joins P ortland on the south and stra d d le s the
C la cka m a s-M u ltn o m ah C ounty line. The city
of Lake O sw e g o (1970 p o p ula tio n 14,573)
a d jo in s both M ilw aukie and Portland and is
a c tu a lly lo c a te d in all three counties. Both
M ilw aukie and Lake O sw e g o are e co n o m i­
c a lly h o m o g e n e o us w ith Portland and its en­
viron s and have sh ared in the rap id grow th
and d e v e lo p m e n t p re va le n t th ro u g h o u t m ost
of the m etro p o lita n area. The relevant m arket
in w h ich to asses the co m p e titive im p a ct of
the p ro p o s e d tra n sa ctio n is, therefore, re­
g a rd e d as the co n tig u o u s co u n tie s of C la c­
kam as, M ultnom ah and W ashington, being
g e n e ra lly c o te rm in o u s w ith th e P o rtla nd
m e tro p o lita n area in n o rthw estern O regon.
C o m m u n ity B a n k’s Viking O ffice at the
P ortland State U niversity ca m p u s is lo ca ted
a p p ro x im a te ly V m ile from the clo se st office
z
of First Bank and w ithin 1 m ile of three of First
B a n k’s o ffic e s serving th e “ d o w n to w n ” b u si­
ness s e c tio n of P ortland. As C o m m u n ity
B a n k ’s V ikin g O ffic e (tota l IPC d e p o s its
$ 2,41 1 ,0 0 0 ) caters p rin c ip a lly to a cliental
e vo lving from or a s s o c ia te d with the univer­
sity, there a p p e a rs to be little actual d ire ct
co m p e titio n with the o ffices of First Bank
s e rvin g the co m m e rcial and fin a ncia l co re of
P o rtla n d . C o m m u n ity B a n k ’s h e a d o ffic e
s e rvin g Lake O sw e g o is not d ire c tly a c c e s s i­




113

ble from o ffices of First Bank in th e a d jo in in g
city of M ilw aukie d u e to the natural ba rrie r
fo rm e d by the W illam ette River, and serves a
lim ited area in w h ich First Bank is not d ire c tly
rep re se n te d . The elim ination of som e existing
co m p e titio n b e tw een First Bank and C om ­
m un ity Bank, u pon c o n su m m a tio n of the
p ro p o se d tran sa ctio n , w o u ld have no sig n ifi­
ca n t co m p e titive im pa ct.
O reg o n statutes p e rm it sta te w ide de novo
b ra n ch in g , how ever, a hom e o ffice p ro te ctio n
p ro v is io n p ro h ib its su ch e x p a n s io n in to
co m m u n ities of less than 50,000 p o p ula tio n
co n ta in in g a b a n k ’s head o ffice. First Bank is,
therefore, p re c lu d e d from de nove en try into
the city of Lake O sw e g o w h ich is now served
by C om m unity Bank. C o m m u n ity Bank, with
its relatively m od e st reso u rce base, has little
potential to e xp a n d into o th er p o rtio n s of the
Portland m etro p o lita n area now se rve d by
First Bank, to any m ean in g fu l d e g re e , in lig h t
o f th e in te n s e c o m p e titiv e e n v iro n m e n t
th ro u g h o u t the area. C o m m u n ity B a n k’s a t­
te m p ts at de novo b ra n ch exp a nsio n have
m et with only lim ited s u cce ss as e vid e n ce d
by the d is c o n tin u a n c e of one o ffice and the
failure of the Viking O ffice to e sta blish a
sig n ifica n t m arket p e n etra tio n in its 3 1 years
/2
of op e ra tio n . C o n su m m a tion of the p ro p o se d
tra n s a c tio n w o u ld e lim in a te little m aterial
potential for in cre a se d c o m p e titio n b etw een
the p ro p o n e n ts in the fo re se e a b le future.
A total of 18 insured co m m e rcia l banks
o p e ra te 213 o ffice s in the relevant m arket.
First Bank, with an 8.6 p e rce n t share of the
m a rke t’s insured co m m e rcia l b a n k IPC d e ­
posits, ranks as the th ird la rg e st bank, a
ranking that w ould rem ain u n ch a n g e d upon
the a cq u isitio n of C o m m u n ity B a n k’s nom inal
0.47 p e rce n t m arket share. The m arket is
re g a rd e d as h ig h ly c o n ce n tra te d with the
s ta te ’s tw o la rg e st co m m e rcia l banks, in an
u n d isp u te d d o m in a n t p osition, a g g re g a te ly
co n tro llin g over 75 p e rc e n t of the m a rke t’s
IPC d e p o sit base. In lig h t of the c o n ce n tra te d
nature of the existing b a n king environm ent,
the p ro p o se d tra n sa ctio n w ould have no a d ­
ve rse e ffe ct upon the level of c o n ce n tra tio n of
ba n king reso u rce s or upon the s tru ctu re of
co m m e rcial ba n king in this m arket.
P acw est B a n co rp, upon form ation as p ro ­
p o se d , w o u ld b e c o m e the s ta te ’s fo u rth
la rg e st ba n king o rg a n iza tio n, h o ld in g a p ­
p ro x im a te ly 4 .3 5 p e rc e n t of th e in su re d
co m m e rcial b a n k d e p o s its in O regon, an
in cre a se of only 0.6 p e rce n t from the share
now held by First Bank. C om m unity B a n k’s
co n trib u tio n to this in cre a se rep re se n ts only a
0.2 p e rce n t share of the s ta te ’s total d e p o sits.
As in the Portland m arket, the s ta te ’s tw o
la rg e st ba n king o rg a n iza tio n s d o m in a te the

FEDERAL DEPOSIT INSURANCE CORPORATION
co m m e rc ia l b a n king in d u stry, by a w id e
m argin, a g g re g a te ly h o ld in g alm ost 70 p e r­
c e n t of O re g o n ’s insured co m m e rcial bank
d e p o s its . N either the p ro p o se d m e rg e r of
First Bank and C om m unity Bank nor the re­
lated tra n s a c tio n by P acw est B a n co rp to a c ­
q u ire u n it b a n k s in H o o d R iv e r a n d
M cM in n ville w ould have any sig n ifica n t a d ­
verse im p a c t upon the structu re of co m m e r­
cial ba n king or the level of co n ce n tra tio n of
b a n king reso u rce s in O regon.
The B oard of D ire cto rs is of the opin io n that
the p ro p o s e d tran sa ctio n w ould not, in any
section of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m onopoly, or in
any o ther m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. The fin a ncia l and m anagerial
reso u rce s of the p ro p o n e n ts are re g a rd e d as
sa tis fa c to ry and the resultant bank is a n tic i­
p a ted to have fa v o ra b le futu re p ro sp e cts.

Convenience and Needs of the Community
to Be Served. The resultant bank will offer a
b ro a d e r ran g e of co m m e rcial b anking se r­
v ic e s than p re se n tly ava ilab le at o ffice s of
C om m unity Bank. C o n sid era tio ns relating to
the co n v e n ie n c e and needs of the co m m u n ity
to be served are co n s iste n t with a p p ro va l of
the a p p lic a tio n .
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the (o p e ra tin g ) p ro p o n e n ts and other rele­
vant m aterial, d is c lo s e d no in co n siste n cie s
with the p u rp o se s of the Act. The resultant
b ank is e x p e c te d to co n tinu e to m eet the
c re d it needs of its entire com m unity, c o n s is ­
tent w ith the safe and sound o p e ra tio n of the
bank.
B ased on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w a rra n te d .

Resources
(in thousands
of dollars)

First-Citizens Bank
and Trust
Company of South
Carolina

Banking Offices
in Operation
Before

After

286,812

49

50

4,995

1

C o lum bia, South
C arolina

to merge with
The Bank of Trenton
Trenton, South
C arolin a




S um m ary report by A tto rn ey G eneral,
N o ve m b e r 17, 1978
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e that it w o u ld not have a
su b stan tia l co m p e titve im pact.
Basis for C o rpo ra tion A p p ro va l
O cto b e r 29, 1979
First-C itizens Bank and Trust C o m pa n y of
South Carolina, C olum bia, South C arolina
( “ F irs t-C itiz e n s ” ), an in s u re d S ta te n o n ­
m e m b e r b a n k w ith to ta l r e s o u r c e s o f
$ 2 8 6 ,8 1 2 ,0 0 0 and to ta l IPC d e p o s its of
$234,2 9 8 ,0 0 0, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and other p ro visio n s of the Federal
D e p o sit Insu ra n ce A ct, for the C o rp o ra tio n ’s
c o n se n t to m erge, u n d er its ch a rte r and title,
with The Bank of Trenton, Trenton, South
C a rolina (“ O ther B a n k” ), w ith total reso u rce s
of $4,995,000, and total IPC d e p o sits of
$ 3 ,488,000. In cid e n t to the p ro p o se d tra n s­
a ction the sole o ffice of O ther Bank w ould be
e sta b lish e d as a b ra n ch of First-C itizens.
Competition. F irst-C itizens, b a se d in C ol­
um bia, o p e ra te s 49 co m m e rcial b a n king o f­
fice s in 15 co u n tie s of South Carolina, Since
1968, the b a n k has been involved in eleven
m e rg e r-ty p e tra n sa ctio n s, a c q u irin g c o m ­
m ercial banks in a nu m b e r of lo ca tio n s in the
state. O ther Bank o p e ra te s its sole o ffice in
the tow n of T renton (estim ated p o p ula tio n of
less than 400) lo ca ted in southern E d g e fie ld
C ounty, a p p ro xim a te ly 60 m iles so u thw est of
C o lu m b ia and 23 road m iles north of A u ­
g usta, G eorgia.
The relevant m arket in w hich to assess the
c o m p e titive im p a ct of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the area w ithin an a p ­
p ro xim a te 15 roa d -m ile rad iu s of Trenton
w h ich in clu d e s m ost of E d g e fie ld C ounty and
a d jo in in g p o rtio n s of A ike n a nd S a lu d a
C o unties in the so u thw este rn p a rt of the
state. This area is relatively rural, with live­
stock, cro p s and lu m b e r-re la te d a ctivites the
p re d o m in a n t e co n o m ic pursu its. The textile
and a p p are l in d u stry has h isto rica lly p ro ­
vid e d a n o n ag ricu ltura l e m p lo ym e n t a lte rn a ­
tive. The c ity of A ike n (19 7 0 p o p u la tio n
13,436), lo ca ted a p p ro xim a te ly 14 road m iles
so u the a st of Trenton, serves as a focal poin t
for co m m e rcial, retail and m a n u fa ctu rin g a c ­
tivity.
The p ro p o n e n ts are not e n g a g e d in any
m aterial vo lu m e of d ire c t co m p e titio n as the
nearest o ffice of F irst-C itizens to Trenton is
lo ca ted at B e lve d e re in so uthw estern Aiken
C ounty, a d is ta n c e of a p p ro xim a te ly 18 m iles
from O ther Bank. This B e lve d e re O ffice and
tw o other b ra n ch e s of F irst-C itizens in Aiken
C o u n ty s e rv e a s e p a ra te m a rk e t w h ic h

BANK ABSORPTIONS APPROVED BY THE CORPORATION
pa ra lle ls the Savannah River (South C arolina
— G e o rg ia b o rd e r) b etw een the A u g u sta
(G eo rg ia ) area and the S avannah River Plant,
a m ajor U. S. G o ve rn m e nt installation. There
is no o ve rla p in se rv ic e areas, and the p ro ­
p o se d tra n sa ctio n w ould have no sig n ifica n t
e ffe ct on existing c o m p e titio n b etw een the
tw o banks.
In the relevant m arket five co m m e rcial
banks o p e ra te 16 o ffices. O ther Bank, h o ld ­
ing less than $4 m illion in IPC d e p osits, is the
m a rk e t’s sm alle st c o m m e rcia l bank. Each of
the o ther four banks re p re se n te d in this m ar­
ket rank a m ong the s ta te ’s ten la rg e st c o m ­
m ercia l b a n king org a n iza tio ns. The m a rke t’s
tw o la rg e st banks, m ea su re d in shares of
d e p o s its held, a g g re g a te ly co n tro l m ore than
73 p e rc e n t of the m a rk e t’s IPC d e p o sit base,
w hile O ther Bank ho ld s only a m od e st 4.2
p e rc e n t share. C o nsum m ation of the p ro ­
p o s e d tra n s a c tio n w o u ld su b stitu te FirstC itizens for O ther Bank and w ould have no
a d v e rs e im p a c t on the stru ctu re of co m m e r­
cial b a n king in the relevant m arket.
F irst-C itizens ranks as South C a ro lin a ’s
sixth la rg e st co m m e rcial bank, ho ld in g 4.8
p e rc e n t of the s ta te ’s c o m m e rcia l bank d e ­
p osits. The a c q u is itio n of O ther Bank, one of
the s ta te ’s sm allest co m m e rcial banks, with
less than a 0.1 p e rc e n t share of the sta te ’s
c o m m e rc ia l bank d e p osits, w ould have no
e ffe c t on F irst-C itize n s’ ranking in the state.
This m o d e st in cre a se is not re g a rd e d as
h a ving any m aterial im p a ct upon the level of
co n c e n tra tio n of b a n king reso u rce s or upon
the stru c tu re of c o m m e rcia l ba n king in South
Carolina.
South C a rolina statutes p e rm it sta te w ide
m e rg e r and de novo b ra n ch in g a ctivity, s u b ­
je c t to ce rta in m inim um ca p ita liza tio n re­
q u ire m e nts, and each p ro p o n e n t, therefore,
has the p o tential to e xp a n d into the area now
s e rve d by the other. O ther Bank, w hich has
o p e ra te d as a unit bank sin ce its e s ta b lis h ­
m ent in 1905, lacks the ne ce ssary level of
reso u rce s to m ount any m eaningful e xp a n ­
sion effo rt into areas now served by FirstC itize n s in the fo re s e e a b le fu tu re . W hile
F irs t-C itiz e n s ’ e xp a n sio n into the Trenton
m arket w o uld be p e rm itte d by state statute,
the a c q u is itio n of O ther Bank, with its m od e st
vo lu m e of d e p o s its and m arket penetration
after alm ost 75 years of opera tio n , is re­
g a rd e d as having little co m p e titive im pact.
The B oard of D ire cto rs is of the o p inion that
the p ro p o s e d tra n sa ctio n w ould not, in any
se ctio n of the country, su b sta n tia lly lessen
c o m p e titio n , tend to cre a te a m on o p o ly or in
any oth er m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. C o n sid era tio ns relating to



fin a n cia l and m a n a g e ria l re so u rce s have
been sa tisfa cto rily resolved. The reslutant
bank, with the p ro p o se d a d d itio n to its ca p ital
structu re , is a n ticip a te d to have fa vo ra b le
fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. F irst-C itizens will offer a g re a te r
ran g e of co m m e rcial b a n king se rvice s than
pre se n tly ava ilab le at O ther Bank. C o n sid e r­
ations relating to co n ve n ie n ce and needs of
the co m m u n ity to be se rve d are co n siste n t
with a p p ro va l of the a p p lica tio n .
A review of a va ilab le inform ation, in c lu d in g
the C om m u n ity R einvestm ent A ct S tatem ents
of the tw o p ro p o n e n ts, d is c lo s e d no in co n ­
siste n cie s with the p u rp o se s of the Act. The
resultant ba n k is e xp e c te d to co n tinu e to
m eet the c re d it needs of its entire com m unity,
co n siste n t with the safe and sound o peration
of the bank.
Based on the fo re g o in g , the Board of Di­
rectors has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arra n te d .

Resources
(in thousands
of dollars)

Barnett Bank of
Delray Beach

Banking Offices
in Operation
Before

97,040

4

85,396

After

9

5

Delray Beach,
Florida
(cha n g e title to
Barnett Bank of Palm
Beach County)

to merge with
Barnett Bank of Palm
Beach County
W est Palm Beach,
Florida

Sum m ary of rep o rt by A tto rn ey G eneral,
July 19, 1979
The m erg in g banks are both w h o lly-o w n e d
s u b sid ia rie s of the sam e b a n k ho ld in g c o m ­
pany. As such, their p ro p o s e d m erg e r is
e sse n tia lly a c o rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
Basis for C o rpo ra tion A p p ro va l
N o ve m b e r 13, 1979
B a rn e tt B ank of D e lray B e a ch , D e lray
B each, F lo rid a (“ A p p lic a n t” ), an in su re d
State n o n m e m b er bank with total reso u rce s
of $ 9 7 ,0 4 0 ,0 0 0 and total IPC d e p o sits of

116

FEDERAL DEPOSIT INSURANCE CORPORATION

$ 8 2,662,000, has a p p lie d p u rsu a n t to S e c­
tion 18(c) and other p ro visio n s of the Federal
D e p o sit Insurance A ct, for the C o rp o ra tio n ’s
p rio r c o n s e n t to m erg e with B arnett B ank of
Palm B e a ch C ounty, W est Palm B e a ch ,
F lo rid a (“ O ther B a n k ” ), an insu re d State
n o n m e m b e r b a n k w ith total re so u rce s of
$ 8 5 ,3 9 6 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 6 6 ,7 7 8 ,0 0 0 . These b a n ks w o u ld m e rg e
u n d e r the ch a rte r of A p p lic a n t and with the
title of O ther Bank. The five o ffice s of O ther
B ank w o u ld be e sta b lish e d as b ra n ch e s of
the resu lta n t bank.
Competition. Essentially a co rp o ra te reor­
g a n izatio n , the pro p o sa l w ould p ro vid e a
m eans by w hich B arnett Banks of Florida,
In c ., J a c k s o n v ille , F lo rid a , a m u lti-b a n k
h o ld in g co m p a n y, m ay c o n so lid a te its o p e r­
ations in Palm Beach County, Florida. The
p ro p o n e n ts have been u n d er co m m o n c o n ­
trol sin ce 1973. The p ro p o se d m erg e r w ould
not a ffe c t the stru ctu re of co m m e rcial b a n k­
ing or the c o n c e n tra tio n of ban king resources
w ithin the relevant m arket.
In vie w of the fo re g o in g , the B oard of
D ire cto rs is of the op in io n that the p ro p o se d
m erg e r w o u ld not, in any section of the co u n ­
try, su b sta n tia lly lessen co m p e titio n , tend to
c re a te a m onopoly, or in any o ther m anner be
in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ fin a ncia l and
m a n a g e r ia l re s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this prop o sa l.
Financial and m anagerial resources of the
resultant bank w ould be sa tisfacto ry, and its
fu tu re p ro s p e c ts a p p e a r favorable.

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant bank w ould
not d iffer m aterially from those p re se n tly of­
fered by each pro p o n e n t.
A review of ava ilab le inform ation, in clu d in g
the C o m m u n ity R einvestm ent A ct Statem ents
of the p ro p o n e n ts, d is clo se s no in co n siste n ­
cies w ith the p u rp o s e s of the A ct. The resul­
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it n eeds of its entire com m unity,
c o n siste n t w ith the safe and sound op e ra tio n
of the institution.
On the basis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n is w arra n te d .




Resources
(in thousands
of dollars)

The Firestone Bank

Banking Offices
in Operation
Before

378,301

16

11,391

After

18

2

A kron, O hio

to merge with
The Firestone Bank
of Wadsworth
W adsw orth, O hio
Sum m ary rep o rt by A tto rn ey G eneral,
S e p te m b e r 19, 1979
The m erg in g banks are both w h o lly-o w n e d
su b sid ia rie s of the sam e b ank h o ld in g co m ­
pany. As such, their p ro p o se d m erg e r is
esse n tia lly a co rp o ra te reo rg a n iza tio n and
w ould have no e ffe ct on co m p e titio n .
B asis for C o rpo ra tion A p p ro va l
N o ve m b e r 13, 1979
The Firestone Bank, Akron, O hio (“ A p p lic ­
a n t” ), an insured State n o n m e m b er bank with
total reso u rce s of $3 7 8,3 0 1 ,0 0 0 and total IPC
d e p o sits of $280,778,000, has a p p lie d p u r­
suant to Section 18(c) and other p ro visio n s of
the Federal D ep o sit In su ra n ce A ct, for the
C o rp o ra tio n ’s p rio r co n se nt to m erge with
T he
F ire s to n e
Bank
o f W a d s w o rth ,
W adsw orth, O hio (“ O ther B a n k” ), an insured
State n o n m e m b er bank with total reso u rce s
of $11 ,3 9 1 ,0 0 0 and total IPC d e p o sits of
$7,968,000. T hese banks w o uld m erge u n d er
the ch a rte r and w ith the title of A p p lica n t. The
tw o o ffices of O ther Bank w o u ld be e s ta b ­
lished as b ra n ch e s of the resultant bank.
Competition. Essentially a co rp o ra te reor­
gan izatio n , the p ro p o sa l w ould p ro vid e a
m eans by w hich Firestone B a n co rp., Inc.,
Akron, Ohio, a bank ho ld in g co m p a n y c o n ­
trollin g these tw o banks only, m ay co n so li­
d a te its ope ra tio n s. The p ro p o n e n ts have
been u n d er co m m o n control since 1973. The
p ro p o se d m erg e r w ould not in any section of
the co u n try, su b sta n tia lly lessen co m p e titio n ,
tend to cre a te a m onopoly, or in any other
m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. P ro p o n e n ts’ financial and
m a n a g e r ia l r e s o u r c e s a re c o n s id e r e d
a d e q u a te for the p u rp o se s of this proposal.
Financial and m an agerial reso u rce s of the
resultant b a n k w ould be sa tisfacto ry, and its
fu tu re p ro s p e c ts a p p e a r fa vo ra b le .

Convenience and Needs of the Community
to be Served. S ervices to be o ffe re d in the
relevant m arket by the resultant b ank w ould
not d iffe r m ate ria lly from those p re se n tly o f­
fe re d by each pro p o n e n t.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
A review of a v a ilab le inform ation, in c lu d in g
the C o m m u n ity R einvestm ent A ct S tatem ents
of the p ro p o n e n ts, d is clo se s no in co n siste n ­
c ie s with the p u rp o s e s of the A ct. The resu l­
ta n t in stitution is e x p e c te d to co n tinu e to
m eet the c re d it ne e ds of its entire co m m u n ity,
c o n s is te n t w ith the safe and sound o p e ra tio n
of the institution.
On the b a sis of the fo re g o in g inform ation,
the Board of D ire cto rs has c o n c lu d e d that
a p p ro v a l of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

Heritage Bank

Banking Offices
in Operation
Before

74,617

2

28,421

After

5

3

A naheim , California

to merge with
Irvine National Bank
Irvine, C alifornia
S um m ary re p o rt by A tto rn ey G eneral,
D e c e m b e r 7, 1979
We have revie w e d this p ro p o se d tra n s a c ­
tion a nd c o n c lu d e th a t it w o uld not have an
a d ve rse e ffe c t u pon co m p e titio n .
B asis fo r C o rp o ra tio n A p p ro va l
N o ve m b e r 26, 1979
H e rita g e Bank, A naheim , C alifornia, an in­
su re d State n o n m e m b e r b a n k with total re­
so u rce s of $ 7 4 ,6 1 7 ,0 0 0 and total IPC d e ­
p o sits of $65,2 1 7 ,0 0 0 , has a p p lie d p u rsu a n t
to S ection 18(c) and other p ro visio n s of the
Federal D e p o sit In su ra n ce A ct, fo r the C o r­
p o ra tio n ’s c o n s e n t to m erge, u n d e r its ch a r­
ter and title, w ith Irvine N ational Bank, Irvine,
C a lifo rn ia (“ IN B ” ) w ith total re so u rce s of
$ 2 8 ,4 2 1 ,0 0 0 a n d to ta l IPC d e p o s its o f
$ 2 2,753,000. In c id e n t to the p ro p o se d tra n s­
a ction the th re e o ffic e s of INB w ould be
e s ta b lis h e d as b ra n c h e s of the re sid e n t
bank.
Competition. H e rita g e Bank, e s ta b lish e d in
A u g u s t, 1975, is h e a d q u a rte re d in the city of
A n a h e im in th e n o rth w e s te rn p o rtio n of
O ra n g e C ounty, C alifo rn ia a p p ro xim a te ly 25
road m iles s o u the a st of the central b u siness
d is tric t of the city of Los A ng e le s. The bank
e s ta b lis h e d a b ra n c h in A p ril, 1978 in the
e a stern p o rtio n of the city of Santa Ana,
a p p ro x im a te ly 10 road m iles so u the a st of
A n a h e im , and has re ce ive d reg u la to ry a p ­
p roval to e sta blish a de novo b ra n ch o ffice in
the c ity of C osta M esa a p p ro xim a te ly 19 road




m iles south of A naheim . INB, e s ta b lish e d in
A u g u st , 1973, is h e a d q u a rte d in the ra p id ly
d e ve lo p in g co m m u n ity of Irvine at a site near
the O ra n g e C ounty A irp o rt in Coastal O ran g e
County. A b ra n ch in the new ly d e v e lo p e d
W o o d b rid g e se ctio n of Irvine w as e s ta b ­
lished in N ovem ber, 1978 a p p ro x im a te ly 5
road m iles east of th e m ain o ffic e and a
b ra n ch w as o p e n e d in S e p te m b e r, 1979 at
N e w p o rt B each a p p ro x im a te ly 6 road m iles
s o u thw est of th e m ain o ffic e .1
The relevant m arket in w h ich to a ssess the
co m p e titive im p a c t of the p ro p o s e d tra n s a c ­
tion is the area in w h ich INB p re se n tly co m ­
p e tes w h ich in clu d e s the co m m u n ity of Irvine
a nd the s u rro u n d in g citie s of Santa Ana,
C osta M esa and N e w p o rt B each, plus the
c o a s ta l c o m m u n itie s o f th e B a lb o a a nd
C orona del Mar. This m arket, c o n ta in in g a
1970 p o p u la tio n of a p p ro xim a te ly 300,000, is
e xp e rie n cin g rap id d e ve lo p m e n t with a s ig ­
n ifica n t e xp a nsio n in p o p u la tio n as well as
c o m m e rc ia l a n d in d u s tria l a c tiv ity . T he
O ra n g e C o u n ty A irp o rt, lo ca te d n ear the
ce n te r of the rele va n t m arket, is re p o rte d to
be am ong the n a tio n ’s b usiest, as m ea su re d
by total a irc ra ft tra ffic, and serves as a focal
p o in t fo r new d e ve lo p m e n t. The m a rke t’s
resid e n tia l b a se is co m p o s e d of relatively
a fflue n t p ro fe ssio n a ls w ith m ed ia n h o u seh o ld
bu yin g levels e stim a te d to be sig n ific a n tly
h ig h er than in n e ig h b o rin g areas.
The p ro p o n e n ts ’ clo se st o ffice s are lo ca te d
a p p ro xim a te ly 8 road m iles a p a rt a nd H eri­
ta g e B ank's a p p ro ve d , b u t u n o p e n e d o ffice
to be lo ca ted in C osta M esa will be w ithin 5
m iles of tw o of IN B ’s o ffices. This p ro xim ity of
o ffice s w o u ld in d ica te th a t the tw o b a n ks are
in d ire c t co m p e titio n in the relevant m arket,
and th is existing co m p e titio n w o u ld be e lim i­
nated by co n su m m a tio n of the p ro p o s e d
tran sa ctio n . Sim ilarly, as C alifo rn ia statutes
p e rm it s ta te w id e m e rg e r a n d de novo
b ra n ch in g a ctivity, the p ro p o sa l w ould p re ­
clu d e the poten tia l for in cre a se d levels of
c o m p e titio n to d e v e lo p betw e en them in this
m arket and w o u ld fo re clo se the poten tia l for
futu re c o m p e titio n w h ich co u ld result from an

1Principals of Heritage Bank acquired effective stock
control of INB in July 1979, and the two banks have
been operated under common management since that
time. Factors relating to this acquisition have been
subject to evaluation by the Office of the Comptroller of
the Currency pursuant to The Change in Bank Control
Act of 1978 (12 U.S.C. 1817(j). The Bank Merger Act
(12 U.S.C. 1828(c)), pursuant to which the instant
application has been filed, specifically requires the
consideration of statutory factors enumerated therein,
therefore, the Board of Directors has disregarded this
fact of common control in its analysis of the competitive
impact of the proposed merger transaction.

FEDERAL DEPOSIT INSURANCE CORPORATION
e xp a n sio n by either p ro p o n e n t into oth er
g e o g ra p h ic areas. This m arket, how ever, is
a lre a d y h ig h ly d e v e lo p e d and u rb a n ize d ,
c o n ta in in g n u m e ro u s o ffic e s o f la rg e
sta te w id e b a n king org a n iza tio ns. O ffices of
several of C a lifo rn ia ’s la rg e st co m m e rcial
banks are lo ca ted in clo se p ro xim ity to the
site of each of the p ro p o n e n ts ’ offices. In this
light, the loss of som e existing and p otential
c o m p e titio n b etw een the tw o banks, as a
c o n s e q u e n c e of the pro p o sa l, is re g a rd e d as
having little co m p e titiv e im pact.
In the relevant m arket a total of 33 insured
c o m m e rc ia l banks o p e ra te 114 b a n king o f­
fice s. INB, h o ld in g 1.0 p e rce n t of the m ar­
ke t’s IPC d e p o sits, ranks as its 18th larg e st
c o m m e rcia l b a n k w hile H e rita g e Bank, with a
nom inal 0.5 p e rc e n t share of such fu n ds,
ranks as the 25th la rg e st b a n k in the m arket.
A total of ten in d e p e n d e n t banks, in clu d in g
INB, have b e e n ch a rte re d in the relevant
m arket sin ce 1970. INB, how ever, has fa iled
to a ch ie ve the d e p o s it g row th enjo yed by
m ost of the b a n ks in this m arket and e xp e ri­
e n c e d a su b stan tia l d e c lin e in m arket share
held in the p e rio d June, 1978 to June, 1979.
C o m m e rcial b a n king in the relevant m arket is
d o m in a te d b y th e p re s e n c e of m ost of
C a lifo rn ia ’s la rg e st co m m e rcial b anking o r­
g a n iz a tio n s w ith th e s ta te ’s five la rg e s t
banks, as m ea su re d by total d e p o sits held,
ranking as the five la rg e st banks in the rele­
vant m arket, a g g re g a te ly ho ld in g over 60
p e rc e n t of the m a rk e t’s IPC de p osits. In such
a c o m p e titiv e environm ent, the p ro p o sa l is
re g a rd e d as having no sig n ifica n t e ffe ct on
the level of c o n c e n tra tio n of ba n king re­
so u rce s or u pon the stru ctu re of co m m e rcial
b a n king in any relevant area.
The B oard of D ire cto rs is of the opin io n that
the p ro p o s e d tra n sa ctio n w o uld not, in any
se ctio n of the country, su b stan tia lly lessen
co m p e titio n , te n d to cre a te a m on o p o ly or in
any o th er m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. C o n sid era tio ns relating to the
fin a ncia l and m an a g e ria l resources of H eri­
ta g e Bank and INB have been sa tisfa cto rily
reso lve d and the resultant bank is a n tic i­
pa ted to have fa v o ra b le fu tu re p ro sp e cts.

rece n t p e rio d s, p ro vid in g the cu sto m e rs of
the local co m m u n ity with an e ffe ctive a d d i­
tional so u rce of such co m m e rcia l ba n king
se rvice s. C o n sid era tio ns relating to the c o n ­
v e n ie n ce and n eeds of the co m m u n ity to be
se rve d are co n sisten t w ith a p p ro va l of the
a p p lica tio n .
A review of ava ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct S tatem ents
of the tw o banks, d isclo se d no in co n siste n ­
cie s with the p u rp o se s of the A ct. The resul­
tant institution is e x p e c te d to co n tinu e to
m eet the c re d it needs of its entire com m unity,
co n siste n t with the safe and sound opera tio n
of the bank.
Based on the fo re g o in g , the Board of Di­
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lic a tio n is w a rra n te d

Resources
(in thousands
of dollars)

American Bank of
Hollywood

Banking Offices
in Operation
Before

21,567

1

10,000*

After

1

2

H ollyw ood, Florida

to purchase the assets and
assume the deposit liabilities
of
Pembroke Park
Branch —
American Bank of
Hallandale
P em broke Park
(P. O. H allandale),
Florida
* Total deposits of office to be transferred by American
Bank of Hallandale. Assets not reported by office.

S um m ary rep o rt by A tto rn ey G eneral,
M ay 22, 1979
W e have review ed this p ro p o se d tra n sa c­
tion and c o n c lu d e that it w o uld not have a
su b stan tia l c o m p e titive im pact.

Convenience and Needs of the Community
to be Served. The p ro p o se d tra n sa ctio n is

Basis for C o rpo ra tion A p p ro va l
N o ve m b e r 26, 1979

not e x p e c te d to have any sig n ifica n t im p a ct
u pon the level and p ricin g of co m m e rcial
b a n king se rv ic e s in the co m m u n ity served by
e ither p ro p o n e n t as an e xtensive array of
such s e rvice s is a va ilab le at o ffice s of rela­
tive ly la rg e sta te w id e b a n king o rg a n iza tio ns
w h ich are h eavily re p re se n te d in these areas.
The resu lta n t b a n k is, how ever, e xp e c te d to
c o m p e te m ore a g g re s sive ly than INB has in

A m e rica n Bank of H ollyw ood, H ollyw ood,
Florida (“ H o llyw ood B a n k” ), an insured State
n o n m e m b e r b a n k with total reso u rce s of
$ 2 1 ,5 6 7 ,0 0 0 a n d to ta l IPC d e p o s its of
$ 1 9,128,000, has a p p lie d , p u rsu a n t to S ec­
tion 18(c) and oth er p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r co n se n t to p u rch a se ce rta in assets of
a nd assum e the lia b ility to pay ce rta in d e ­




BANK ABSORPTIONS APPROVED BY THE CORPORATION

p o sits m ade in the P em broke Park o ffice of
A m e ric a n B ank of H a lla n d a le , P e m b ro ke
Park (P.O. H alla n da le ), F lorida (“ H a llandale
B a n k ” ). The total d e p o sits to be assum ed
a g g re g a te a p p ro x im a te ly $10,000,000. A like
a m ount of assets w ould also be a cq u ire d ,
in c lu d in g the P em broke Park o ffice w hich
w ould be e s ta b lis h e d as a b ra n ch of H ol­
lyw ood Bank, in cre a sin g to tw o the nu m b e r of
ba n king o ffice s o p e ra te d .
H alla n da le Bank, w ith total resources of
$ 1 8 ,1 9 0 ,0 0 0 a n d to ta l IPC d e p o s its of
$15,51 7 ,0 0 0 , was e s ta b lish e d in 1974 as an
affilia te of H o llyw ood Bank (du e to com m on
ow n e rsh ip and in te rlo ckin g d ire cto rs). In a d ­
dition to its m ain office, it also o p e ra te s a
b ra n ch in C o o p e r C ity and one in Plantation,
Florida. In a se p a ra te a p p lica tio n filed in
co n ju n c tio n with this a p p lica tio n , H allandale
Bank req u e ste d , and rece ive d , perm issio n to
re d e s ig n a te its m ain o ffice (P em broke Park
o ffic e ) as a b ra n c h and re d e s ig n a te its
C o o p e r C ity o ffice as its m ain office.
Competition. All four ba n king o ffices of the
p ro p o n e n ts are lo ca ted in B row ard County,
Florida. W ithin this c o u n ty there are cu rre n tly
129 o ffic e s of 57 co m m e rcial banks. H ol­
lyw ood Bank is ranked as the tw enty-sixth
la rg e st in term s of c o m m e rcia l bank IPC
d e p o sits, c o n tro llin g 0.7 p e rce n t of such d e ­
posits. H a lla n da le Bank is ranked as tw entyninth la rg e st w ith only 0.5 p e rce n t of such
d e p o sits. In vie w of the co m m o n o w nership
th a t has existe d sin ce the form ation of H al­
lan d ale Bank, as well as the nom inal m arket
shares held by the tw o institutions, this tran s­
actio n is seen to have no m aterial effe ct on
existing c o m p e titio n in this area or on the
stru c tu re of c o m m e rc ia l ban king .
As pa rt of the a g re e m e n t betw een the
p ro p o n e n ts, som e of the com m on ow ners of
the tw o banks w o uld be d ivid e d and the
m ajority s to c k h o ld e rs w o uld be sp lit into two
g ro u p s, each co n tro llin g one of the banks.
This should e n h an ce the p ro s p e c ts for in­
c re a s e d fu tu re c o m p e titio n to d e ve lop be­
tw een the p ro p o n e n ts.
B ased on the fo re g o in g , the B oard of Di­
recto rs is of the op in io n that the p ro p o se d
tra n s a c tio n w ould not, in any section of the
c o u n try , s u b s ta n tia lly lessen c o m p e titio n ,
te n d to cre a te a m onopoly, or in any other
m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. With the c o n te m p la te d a d d i­
tion to its c a p ita l structu re , the financial and
m a n a g e ria l re s o u rc e s of H o llyw o o d Bank
a p p e a r su ffic ie n t to s u p p o rt the a cq u isitio n of
this b ra n ch , and the resultant bank is a n tic i­
p a te d to have fa vo ra b le fu tu re p ro sp e cts.

Convenience and Needs of the Community



119

to be Served. Both banks in volved in this
tra n sa ctio n have been o p e ra te d as affiliates
with the sam e b o a rd of d ire cto rs and p re s i­
dent. O ver the years they have d e v e lo p e d
b a sica lly the sam e po licie s, rates and se r­
vices. The a d d itio n of new ca p ital in both
institutions will p ro vid e them with a larger
le n d in g limit, and co n sid e ra tio n s of co n ve n i­
en ce and needs of the co m m u n ity a p p e a r to
be co n sisten t with a p p ro va l of this a p p lic a ­
tion.
A review of a va ilab le inform ation, in clu d in g
the C om m unity R einvestm ent A ct Statem ents
of both p ro p o n e n ts and other relevant m ate ­
rial, d isclo se d no in co n siste n cie s with the
p u rp o se s of the A ct. The resultant ba n k is
e x p e c te d to co n tin u e to m eet the c re d it
needs of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the in stitu ­
tion.
Based on the fo re g o in g , the Board of Di­
recto rs has c o n c lu d e d that a p p ro va l of the
a p p lica tio n is w arranted.

Resources
(in thousands
of dollars)

Republic Bank

Banking Offices
in Operation
Before

67,763

1

16,113

After

2

3

G ardena, C alifornia

to merge with
California Pacific
Bank
Fullerton, California

Sum m ary rep o rt by A tto rn ey G eneral,
O c to b e r 26, 1979
We have review ed this p ro p o se d tra n s a c ­
tion and co n c lu d e that it w o uld not have an
a d ve rse e ffe ct u pon co m p e titio n .
Basis for C o rpo ra tion A p p ro val
N o ve m b e r 30, 1979
R e p u b lic Bank, G ardena, C alifornia, an in­
sured State n o n m e m b er bank with total re­
so u rce s of $67 ,7 6 3 ,0 0 0 and total IPC d e ­
p osits of $ 56,461,000, has a p p lie d , p u rsu a n t
to Section 18(c) and o ther pro visio n s of the
F ederal D eposit In su ra n ce A ct, for the C or­
p o ra tio n ’s co n se n t to m erge, u n d er its c h a r­
ter and title, with C a lifo rn ia P a cific Bank,
Fullerton, C a lifornia (“ C P B ” ), with total re­
so u rce s of $16,11 3 ,0 0 0 and total IPC d e ­
p o sits of $11,725,000. In cid e n t to the p ro ­
p o se d tran sa ctio n , the tw o o ffice s of CPB

120

FEDERAL DEPOSIT INSURANCE CORPORATION

w o u ld be e sta b lish e d as b ra n ch e s of the
resultant bank.
Competition. R e p u b lic Bank, e sta b lish e d
in 1974, o p e ra te s its sole o ffice in the city of
G a rd e n a (1970 p o p u la tio n 4 1,021) in so u th ­
ern Los a n g ele s C ounty a p p ro xim a te ly 12
road m iles south of the cen tra l b u siness
d is tric t of the city of Los A ngeles. R e p u b lic
Bank has been g ra n te d a p p ro va l to esta blish
a de novo b ra n c h o ffic e s o u th w e s t of
G a rd e n a in the city of Torrance. CPB, e s ta b ­
lished in 1971, o p e ra te s its head o ffice in the
w estern p o rtio n of the city of Fullerton and a
b ra n ch lo ca te d a p p ro xim a te ly 3 m iles east
near the c ity ’s central b u siness d istrict. The
city of Fullerton (1970 p o p ula tio n 85,826;
e s tim a te d 1978 p o p u la tio n in e x c e s s of
100,000) is lo ca ted in northw estern O ran g e
C ounty a p p ro x im a te ly 25 road m iles so u th ­
east of the city of Los A ngeles.
The relevant m arket in w hich to assess the
c o m p e titiv e im p a c t of the p ro p o se d tra n s a c ­
tion is re g a rd e d as the tra d e area of CPB,
a p p ro x im a te d by the co n tig u o u s citie s of
Fullerton, A naheim , Brea, Buena Park, La
H a b re and P lacentia in the n o rthw estern p o r­
tion of O ran g e County. The m arket, co n ta in ­
ing a 1970 p o p u la tio n of a p p ro x im a te ly
4 0 0 ,0 0 0 , is a re la tiv e ly a fflu e n t, h ig h ly d e v e lo p e d u rb a n ize d area. It has e x p e ri­
e n c e d d y n a m ic g ro w th durin g the last tw o
d e c a d e s , w ith m od e ra te gro w th p ro je cte d for
th e n e xt d e c a d e . F o rm e rly a g ric u ltu ra lly
orie n te d , the area is now p rim a rily resid e n tia l
with a n u m b e r of la rg e industrial em p lo ye rs
lo ca ted in Fullerton. There is also e vid e n ce of
co m m u ta tion o u ts id e of relevant m arket for
e m p lo y m e n t alternatives.
T h e p r o p o n e n t s ’ c lo s e s t o ffic e s a re
s itu a te d a p p ro x im a te ly 20 road m iles a p a rt
w ith no e v id e n c e of o ve rla p in the se rvice
areas, in d ic a tin g that the pro p o sa l w ould
have no s ig n ific a n t e ffe ct on e xisting c o m ­
pe tition betw e en the tw o banks. C a lifornia
statutes p e rm it sta te w ide m erg e r and de
novo b ra n c h in g a c tiv ity and thus, there d o e s
exist som e poten tia l for co m p e titio n to d e ­
ve lo p betw e en them at som e futu re tim e. The
loss of this potential, how ever, is not re­
g a rd e d as having any m aterial a d ve rse c o m ­
p e titiv e im p a c t in lig h t o f th e h ig h ly d e v e lo p e d u rb a n iz e d nature of the p ro p o ­
n e n ts ’ re s p e c tiv e tra d e areas and of the
in te rve n in g area betw e en them , as well as
the p re s e n c e of num erous o ffice s of the
s ta te ’s la rg e st banks.
In the relevant m arket a total of 23 insured
c o m m e rcia l ba n ks o p e ra te 84 b a n king of­
fice s. CPB, h o ld in g only a 0.9 p e rce n t share
of th e m a rk e t’s IPC d e p o sits, ranks as one of
its sm alle st banks. CPB has fa iled to a ch ie ve




the d e p o s it gro w th enjo yed by m any of the
o ther ba n ks in this m arket d u rin g the 1970’s
and e xp e rie n ce d a loss in m arket share held
in the p e rio d from June, 1978 to June, 1979.
The m arket is d o m in a te d by o ffice s of m ost of
the s ta te ’s la rg e st ba n king o rg a n iza tio ns,
with tw o of C a lifo rn ia 's th re e la rg e st b a n ks
a g g re g a te ly h o ld in g 46.8 p e rce n t of the re­
levant m a rke t’s IPC d e p o s it base. In such a
c o m p e titive environm ent, the p ro p o sa l is re­
g a rd e d as having no sig n ific a n t e ffe ct on the
level of co n ce n tra tio n of b a n king reso u rce s
or u pon the stru ctu re of co m m e rcia l ban king .
The B oard of D ire cto rs is of the op in io n that
the p ro p o s e d tra n sa ctio n w o u ld not, in any
se ctio n of the country, su b sta n tia lly lessen
co m p e titio n , tend to cre a te a m on o p o ly or in
any o th er m anner be in restraint of trade.

Financial and Managerial Resources; Fu­
ture Prospects. CPB has had a history of p oor
e a rn in g s and is p re se n tly re g a rd e d as un­
d e rc a p ita liz e d . The b a n k has u n d e rg o n e
several c h a n g e s in senior m an a g e m en t in
rece n t years and has been una ble to e s ta b ­
lish itself as an e ffe ctive c o m p e tito r in its
m arket. R e p u b lic Bank has a history of sa tis­
fa c to ry o p e ra tio n w ith re la tiv e ly h e a lth y
e a rn in g s and tim ely ca p ita l augm e n ta tion .
The p ro p o se d tra n sa ctio n w o u ld p ro vid e a
m eans of resolving the p ro b le m s fa cin g CPB,
w ith in th e fra m e w o rk o f a la rg e r w e lle sta b lish e d bank. The resultant b a n k w o uld
p o sse ss a sa tisfa cto ry level of fin a ncia l and
m an a g e ria l reso u rce s to o ve rco m e th e se d if­
ficu ltie s and w ould a p p e a r to have fa vo ra b le
fu tu re p ro sp e cts.

Convenience and Needs of the Community
to be Served. The p ro p o s e d tra n s a c tio n
w o u ld have little m aterial im p a ct upon the
level and p ricin g of co m m e rcia l b a n king se r­
vice s in the co m m u n ity se rve d by CPB, as an
exte nsive array of such se rvice s is rea d ily
a v a ila b le at o ffic e s o f r e la tiv e ly la rg e
sta te w id e ban king o rg a n iza tio n s w hich are
h e avily rep re se n te d in this area. The resultant
b ank is, how ever, a n tic ip a te d to co m p e te
m ore a g g re ssive ly than CPB has been c a p a ­
b le of in recent p e rio d s, p ro vid in g cu sto m e rs
in the local co m m u n ity w ith an a d d itio n a l
e ffe ctive alternate so u rce of such co m m e r­
cial b a n king services. C o n sid e ra tio n s relat­
ing to the c o n ve n ie n ce a nd needs of the
co m m u n ity to be se rve d are co n siste n t with
a p p ro va l of the a p p lica tio n .
A review of the a va ilab le inform ation, in­
c lu d in g the C om m u n ity R einvestm ent A ct
S tatem ents of the p ro p o n e n ts, d isclo se d no
in co n siste n cie s w ith the p u rp o se s of the Act.
The resu lta n t b a n k is e x p e c te d to co n tin u e to
m eet the c re d it n eeds of its entire co m m u n ity,
c o n siste n t with the safe and so und o p e ra tio n

BANK ABSORPTIONS APPROVED BY THE CORPORATION
of the bank.
B ased on the fo re g o in g , the Board o f Di­
recto rs has c o n c lu d e d th a t a p p ro va l of the
a p p lic a tio n is w a rra n te d .

Resources
(in thousands
of dollars)

The Morris County
Savings Bank

Banking Offices
in Operation
Before

After

687,793

12

13

12,563

1

M orristow n, N ew
Je rse y
to

purchase the assets and
assume the deposit liabilities
of

Bernards State Bank
B ern a rd sville , N ew
J e rse y

S um m ary rep o rt by A tto rn e y G eneral,
N o ve m b e r 30, 1979
We have review ed this p ro p o se d tra n sa c­
tion and c o n c lu d e th a t it w o u ld not have a
s u b stan tia l c o m p e titiv e im pa ct.
B asis for C o rp o ra tio n A p p ro va l
N o ve m b e r 30, 1979
The M orris C ounty S avings Bank, M orris­
tow n, N ew Je rse y (“ A p p lic a n t” ), an insured
m utual s a vin g s b a n k w ith total reso u rce s of
$ 6 8 7 ,7 9 3 ,0 0 0 a n d to ta l d e p o s its
of
$642,5 6 8 ,0 0 0, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and o ther p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
co n s e n t to p u rc h a s e the assets of and a s­
sum e the lia b ility to pay d e p o sits m ade in
B e rn a rd s S tate Bank, B e rn a rd sville , New
J e rse y (“ State B a n k ” ), an insured State non­
m e m b e r b a n k w ith to ta l r e s o u r c e s o f
$ 1 2 ,5 6 3 ,0 0 0 a n d to ta l IPC d e p o s its o f
$ 9,95 9 ,0 0 0 , and to e sta blish the sole o ffice of
B e rn a rd s State Bank as a b ra n ch .
Competition. A p p lic a n t, h e a d q u a rte re d in
the to w n of M orristow n (19 7 0 p o p u la tio n
17,662), o p e ra te s ten o ffice s in M orris C ounty
in northern New Je rse y and one o ffice each in
a d jo in in g Sussex and W arren Counties. State
Bank, e s ta b lis h e d in 1975, o p e ra te s its sole
o ffic e in the b o ro u g h of B e rn a rd sville (1970
p o p u la tio n 6 ,6 5 2 ) in n o rth e rn S o m e rs e t
C ounty a p p ro x im a te ly 8 road m iles so u th ­
w e st of M orristow n.
The c o m p e titiv e im p a c t of the p ro p o se d
tra n s a c tio n w o uld be m ost d ire c t and im ­
m ed ia te in the area w ithin an a p p ro xim a te 10




121

roa d -m ile radius of B e rn a rd sville w h ich in­
c lu d e s the n o rth e rn p o rtio n of S o m e rse t
C ounty and the a d ja c e n t so uthern p ortion of
M orris County. This area, co n ta in in g an e sti­
m ated 1970 p o p u la tio n in e xce ss of 100,000,
is ra p id ly d e v e lo p in g a nd p re se n tly u n d e r­
g o in g a c h a n g e from a rural to a m ore su b u r­
ban nature. The 1978 m ed ia n h o u sehold
b u yin g levels fo r M orris and S om erset C o u n ­
ties are sig n ifica n tly h ig h e r than the c o m p a r­
a ble state fig u re of $20,037.
In the relevant area a total of ten co m m e r­
cial ba n ks o p e ra te 31 o ffices. State Bank
ranks as the 7th la rg e st co m m e rcia l b a n k in
the m arket h o ld in g a m o d e st 3.0 p e rc e n t
share of the m a rke t’s IPC d e p o s it base.
C o m m e rcial b a n king in th is m arket is d o m i­
na ted by the p re se n ce of affiliates of several
of the s ta te ’s la rg e st co m m e rcia l b a n king
org a n iza tio ns, w ith the m a rke t’s tw o la rg e st
banks, w h ich are a ffilia te d w ith such o rg a n i­
zations, a g g re g a te ly co n tro llin g over 55 p e r­
ce n t of the m a rke t’s co m m e rcia l b a n k IPC
d e p o sits . In such a c o m p e titive environm ent,
the p ro p o se d a cq u isitio n of State Bank is
re g a rd e d as having little im p a ct u p o n the
stru ctu re of co m m e rcia l ba n king .
A p p lic a n t o p e ra te s its head o ffice and four
b ra n ch o ffice s in relatively clo se p ro xim ity to
B e rn a rd sville with A p p lic a n t’s M endham O f­
fic e (total d e p o sits $ 6 6 ,1 9 9 ,0 0 0 ) lo ca te d less
than 5 road m iles from State Bank. A p p lic a n t
and State Bank, b y virtu e of th e ir re sp e ctive
ch a rte rs and C o rp o ra te po w e rs, serve d iffe r­
ent se g m e n ts of the b a n kin g p u b lic alth ou g h ,
to som e extent, they offer sim ilar s e rv ic e s .1
State Bank, how ever, h olds only 0.8 p e rce n t
of the IPC tim e and sa vin g s d e p o sits held by
o ffice s of co m m e rcia l ba n ks and th rift institu ­
tions in the m arket. The lim ited vo lu m e of
e xistin g c o m p e titio n b e tw e e n th e p ro p o ­
nents, and the p o ten tia l fo r in cre a se d co m ­
p e titio n to d e ve lop , how ever, do e s not rise to
a level of co m p e titive sig n ific a n c e that its
e lim in a tio n w o u ld s u b s ta n tia lly lessen c o m ­
petition.
The Board of D ire cto rs is of the o p in io n that
the p ro p o se d tra n sa ctio n w o uld not, in any
se ctio n of the co u n try, su b sta n tia lly lessen
co m p e titio n , te n d to cre a te a m on o p o ly or in
any o th er m anner be in restra in t of trade.

Financial and Managerial Resources; Fu­
ture Prospects. State Bank, e sta b lish e d in
1975, e xp e rie n ce d initial sta rt-u p d iffic u ltie s
and has fa iled to e sta blish itself as an e ffe c ­
tive co m p e titive fo rc e in the m arket. A p p li­
cant, w ith a histo ry of sa tisfa cto ry o peration,

1United

States v. Phillipsburg National Bank and Trust
Company, 399 U.S. 350 at 359-60 (1970).

FEDERAL DEPOSIT INSURANCE CORPORATION

122

p o sse sses the n e ce ssary fin a ncia l and m an­
ag e ria l reso u rce s to su cce ssfu lly a d d re ss
such p ro b le m s w ithin the fram e w o rk of a
fin a n c ia lly sound thrift institution. The resul­
tant institution is a n ticip a te d to have fa vo ra ­
ble fu tu re p ro s p e c ts .

Convenience and Needs of the Community
to be Served. As a d ire c t c o n se q u e n ce of this
p ro p o s a l, one c o m m e rcia l b a n king o ffice
w o uld be elim in a te d and re p la ce d by an
o ffic e of a relatively large m utual sa vin g s
bank. W hile A p p lic a n t w ould be a ble to p ro ­
v id e m ost of the p re se n t cu sto m e rs of State
Bank w ith equal or c o m p a ra b le services,
som e bu sin essm e n and m erch a n ts w ould
find it n e ce ssa ry to seek an a lte rn a te co m ­
m e rc ia l b a n k in g s o u rc e . In lig h t of th e
num erous o ffic e s of both sm all in d e p e n d e n t
co m m e rc ia l banks and of affiliates of rela­
tive ly la rg e s ta te w ide co m m e rcial ban king
o rg a n iz a tio n s ava ilab le in the m arket, this
c o n s e q u e n c e , a ffe c tin g o n ly a sm all segem ent of the local ba n king p u b lic, is re g a rd e d
as having only a m odest im pa ct. C o n sid e ra ­
tions relating to the c o n ve n ie n ce and needs
of the c o m m u n ity to be served, on bala nce ,
are co n s is te n t w ith a p p ro va l of the a p p lic a ­
tion.
A review of a v a ilab le inform ation, in clu d in g
the C o m m u n ity R einvestm ent A ct S tatem ents
of both p ro p o n e n ts and other relevant m ate ­
rial, d is c lo s e d no in co n siste n cie s with the
p u rp o s e s of the A ct. The resultant institution
is e x p e c te d to c o n tinu e to m eet the c re d it
ne e ds of its entire com m unity, c o n siste n t with
its safe and sound operation.
B ased on the fo re g o in g inform ation, the
Board of D irectors has co n c lu d e d that a p ­
proval of the a p p lic a tio n is w arranted.

Resources
(in thousands
of dollars)

International Central
Bank

1,000

Basis for C o rpo ra tion A p p ro va l
D e ce m b e r 17, 1979
International Central Bank (“ IC B ” ), N ew ­
po rt B each, C alifornia, an insured State non­
m em b e r b a n k with total a ssets of $1,000,000,
has a p p lie d , p u rsu a n t to S ection 18(c) and
oth er p ro visio n s of the Federal D ep o sit Insur­
a n ce A ct, for the C o rp o ra tio n ’s p rio r co n se nt
to m erg e with International Trust C o rpo ra tion
(“ ITC” ), N e w p o rt B each, C alifornia, a non in ­
su re d fin a ncia l c o rp o ra tio n w ith total assets
of $436,195, u n d er the ch a rte r and title of
ICB. A p p lic a tio n has also been m ade for the
resultant ba n k to e xe rcise trust pow ers.
B o th e n titie s a re w h o lly -o w n e d s u b ­
sid ia rie s of CPI G roup, Inc., N e w p o rt Beach,
C alifornia, a su b sid ia ry of A u to m a tic Data
Pro ce ssin g. CPI G roup, Inc. is an in d e p e n ­
de n t a d m in istra to r of in d ivid u a l and p a rtn e r­
sh ip “ K e o g h ” re tire m e n t p la n s, a nd a d ­
m inisters m any sm all to m edium co rp o ra te
plans, as well as in d ivid u a l retire m e n t plans.
The p ro p o se d tran sa ctio n , esse n tia lly an
internal reo rg a n iza tio n , w ould m erely c o n ­
so lid a te the a ffilia te d e n tities and fa cilita te
th e ir internal a cco u n tin g , and as such w ould
have no e ffe ct on existing or p otential co m ­
p e titio n in any relevant area. All fa cto rs re­
q u ire d to be co n sid e re d p e rtin e n t to each
a p p lic a tio n have been fa vo ra b ly resolved.
On the basis of the fo re g o in g inform ation,
the Board of D irectors has c o n c lu d e d that
a p p ro va l of the a p p lic a tio n s is w arra n te d .

Banking Offices
in Operation
Before

1

After

Resources
(in thousands
of dollars)

1

Society Bank

N e w p o rt Beach,
C a lifornia

Banking Offices
in Operation
Before

After

65,051

10

13

18,088

3

C olu m b u s, O hio

to merge with
International Trust
Corporation

su b sid ia rie s of the sam e bank h o ld in g c o m ­
pany. As such, their p ro p o se d m erg e r is
e sse n tia lly a co rp o ra te reo rg a n iza tio n and
w o uld have no e ffe ct on co m p e titio n .

436

N e w p o rt Beach,
C a lifornia

to purchase the assets and
assume the deposit liabilities
of
The American Bank
of Central Ohio
H a rrisb u rg , O hio
EMERGENCY

Sum m ary rep o rt by A tto rn e y G eneral,
S e p te m b e r 19, 1979
The m e rg in g ba n ks are both w h o lly-o w n e d




S um m ary rep o rt by A tto rn ey G eneral,
no re p o rt rece ive d .

123

BANK ABSORPTIONS APPROVED BY THE CORPORATION
Basis fo r C o rp o ra tio n A p p ro va l
D e ce m b e r 20, 1979
S o cie ty Bank, C olu m b u s, Ohio, an insured
State n o n m e m b er b a n k w ith total resources
of $ 6 5 ,0 5 1 ,0 0 0 and total IPC d e p o sits of
$ 4 9,290,000, has a p p lie d , p u rsu a n t to S e c­
tion 18(c) and o th er p ro visio n s of the Federal
D e p o sit In su ra n ce A ct, fo r the C o rp o ra tio n ’s
p rio r w ritten co n s e n t to p u rch a se ce rta in a s­
sets of and a ssum e the lia b ility to pay d e ­
po sits m ad e in The A m e rica n Bank of Central
O hio, H a rrisb u rg , O hio (“ A m e rica n B a n k” ),
an insu re d State n o n m e m b er b ank with total
reso u rce s or $ 1 8 ,0 8 8 ,0 0 0 and total IPC d e ­
p o sits of $ 1 6,409,000. The th re e o ffice s of
A m e ric a n B a n k w ill b e e s ta b lis h e d as
b ra n c h e s of S o cie ty Bank.
The S u p e rin te n d e n t of Banks fo r the State
of O h io has a d vise d the C o rpo ra tion of the
e x is te n c e of an e m e rg e n cy and req u e ste d
e x p e d itio u s actio n p u rsu a n t to p a ra g ra p h 6
o f S ection 18(c) o f the Federal D e p o sit Insur­
a n ce A ct. The p u b lic a tio n req u ire d by the
Bank M erg e r A c t has been c o m p le te d .
Competition. S o cie ty B ank o p e ra te s 10 of­
fic e s in Franklin C ounty, w h ich is lo ca ted in
c e n tra l O hio. S o cie ty B ank is a ffilia te d with
S o cie ty C o rpo ra tion , C leveland, O hio, the
s ta te ’s fou rth la rg e st b a n king org a n iza tio n. It
co n tro ls 13 ba n ks w h o se total co m m e rcial
b a n k d e p o s its at June 30, 1978 a g g re g a te d
$ 1 ,8 0 9 ,5 1 1 ,0 0 0 — 4 .9 p e rce n t of the S ta te ’s
total d e p o sits. A m e rica n B ank o p e ra te s three
o ffic e s in Franklin County, its m ain o ffice in
H a rrisb u rg , one b ra n c h in G rove City, and
one b ra n ch in the w e ste rn portio n of the city
of C o lum bus.
The area m ost relevant to co n sid e ra tio n of
a c o m p e titiv e an a lysis in this ca se is c o n s id ­
e re d to be Franklin C o u n ty a n d the a d jo in in g
p o rtio n s of M ad iso n and P ickaw ay C ounties
that are w ithin a p p ro x im a te ly ten road m iles
of H a rris b u rg . This relevant m arket, m ainly an
u rb a n iz e d area c o n ta in in g th e c ity o f C o lu m ­
bus (1970 p o p u la tio n 539,677), has an e sti­
m ated 1970 p o p ula tio n of 843,828. The m ar­
ket is s e rve d by 13 ba n ks o p e ra tin g 161
o ffices, and six of the s ta te ’s ten largest
b a n king o rg a n iz a tio n s are rep re se n te d there.
Of
th e
IP C
d e p o s its
a g g r e g a tin g
$ 3 ,00 7 ,4 8 2 ,00 0 held by area o ffice s of such
b a n ks at June 30, 1979, S o cie ty Bank held
1.6 p e rc e n t, the fifth la rg e st share; A m erican
B ank held 0.5 p e rce n t, the ninth larg e st
share.
F ollow ing co n su m m a tion of the p ro p o sa l,
S o cie ty B a n k ’s share w o u ld in cre a se only to
2.1 p e rc e n t and w o u ld rem ain as the fifth
la rg e s t b a n k in the m arket. A ny co m p e titio n
b e tw e en S o cie ty Bank and A m e rica n Bank
a p p e a rs to be m inim al in vie w of the size of




the other co m p e tito rs in the m arket and the
p re ca rio u s fin a ncia l co n d itio n of A m e rica n
Bank.
U n der these circu m sta n ce s, the B oard of
D ire cto rs has c o n c lu d e d th a t the p ro p o se d
tra n sa ctio n w o uld not, in any se ctio n of the
co u n try, s u b s ta n tia lly le sse n c o m p e titio n ,
te n d to crea te a m o n o p o ly or in any other
m anner be in restraint of trad e .

Financial and Managerial Resources; Fu­
ture Prospects. F in a n c ia l r e s o u rc e s of
A m e rica n Bank are in a d e q u a te and its future
v ia b ility is in g ra ve d o u bt. S o cie ty Bank has a
so und asset stru ctu re and sa tisfa cto ry m an­
a g e m e n t. With the c o n te m p la te d a d d itio n to
its ca p ita l a cco u n ts, p ro s p e c ts of the resul­
ta n t ba n k are c o n sid e re d fa vo ra b le .

Convenience and Needs of the Community
to be Served. C on su m m a tion of the p roposal
w o u ld p re c lu d e any in te rru p tio n of ba n king
se rvice s for the c lie n te le of A m e rica n Bank.
T hese in d ivid u a ls sh ould also b e n efit from
the resulting larger, so u n d institution.
A review of a va ila b le inform ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ents
of the p ro p o n e n ts and o th er relevant m ate ­
rial, d isclo se d no in co n siste n cie s w ith the
p u rp o se s of the A ct. The resultant b a n k is
e x p e c te d to co n tin u e to m eet the c re d it
n e e ds of its entire co m m u n ity, co n siste n t with
the safe and sound o p e ra tio n of the bank.
B ased on the fo re g o in g , the Board of Di­
recto rs has c o n c lu d e d th a t a p p ro va l of the
a p p lica tio n is w a rra n te d .

Resources
(in thousands
of dollars)

American Banking
Company

Banking Offices
in Operation
Before

17,990

1

6,780

After

1

2

Moultrie, G eorgia

to purchase the assets and
assume the deposit liabilities
of
Toney Brothers Bank
Doerun, G eorgia
A p p ro ve d u n d er e m e rg e n cy p rovisions.
No rep o rt re q u e ste d from the A tto rn e y G en­
eral.
Basis fo r C o rp o ra tio n A p p ro va l
Ja n u ary 6, 1979
A m e ric a n B a n kin g C o m p a n y , M o u ltrie ,
G e o rg ia , an insured State n o n m e m b er bank
w ith total re so u rce s of $ 1 7 ,9 9 0 ,0 0 0 , has

124

FEDERAL DEPOSIT INSURANCE CORPORATION

a p p lie d p u rsu a n t to Section 18(c) of the F ed­
eral D e p o sit Insurance A ct, for the C o rp o ra ­
tio n ’s c o n s e n t to p u rc h a se the a ssets of and
a ssu m e the lia b ility to pay d e p o sits m ade in
T oney Brothers Bank, Doerun, G eorgia, an
in su re d State n o n m e m b er b a n k with total
re s o u rc e s of $6,78 0 ,0 0 0 . In c id e n t to the
tra n sa ctio n , the sole o ffice of T oney Brothers
B ank w o u ld b e c o m e a b ra n ch of A m e rica n
B anking C om pany.
A s of Ja n u ary 5, 1979, Toney Brothers
B a n k h a d d e p o s its o f a p p r o x im a te ly
$ 5 ,8 0 0 ,0 0 0 and o p e ra te d one o ffice. On
J a n u a ry 5, 1979, the Federal D e p o sit Insur­
a n ce C o rpo ra tion w as a p p o in te d as R eceiver
of T oney Brothers Bank.
The B oard of D ire cto rs fin d s th a t the failure
of T oney B rothers Bank req u ire s it to act
im m e d ia te ly and thus w aives p u b lica tio n of
no tice, d is p e n s e s with the so licita tio n of
c o m p e titiv e rep o rts from other a g e n cie s, and
au tho rize s the tra n sa ctio n to be c o n s u m ­
m ated im m ediately.

Resources
(in thousands
of dollars)

Independence Bank
of Chicago

73,253

Illinois, an insured State n o n m e m b er ba n k
w ith to ta l re s o u rc e s o f $ 8 ,6 1 0 ,0 0 0 , a n d
G a te w ay N ational Bank of C h ica g o, C h ica g o,
Illinois, with total reso u rce s of $23,110,000.
In cid e n t to the tran sa ctio n , the sole o ffice of
G u a ra n ty Bank & Trust C o m pa n y and the
sole o ffic e of G a te w ay N ational B ank of
C h ic a g o w o u ld b e co m e fa cilitie s of In d e p e n ­
d e n ce Bank of C h ica g o. A p p lic a tio n is also
m ade for In d e p e n d e n c e Bank of C h ica g o to
e xe rcise trust pow ers.
On July 14, 1979, the Federal D eposit
In su ra n ce C o rpo ra tion w as a p p o in te d as Re­
ce ive r of G uaranty Bank & Trust C o m pa n y
(w hose d e p o sits w ere e stim a te d at a p p ro x i­
m ately $7 ,40 0 ,0 0 0 and o p e ra te d one office)
a n d G a te w a y N a tio n al B a n k of C h ic a g o
(w hose d e p o sits w ere estim a te d at a p p ro x i­
m ately $9,10 0 ,0 0 0 and o p e ra te d one office).
The Board of D irectors fin d s that the failure
of G u a ra n ty Bank & Trust C o m pa n y and
G a te w ay National Bank of C h ica g o req u ire s it
to a ct im m e d ia tely and thus w aives p u b lic a ­
tion of n otice, d isp e n se s with the solicitatio n
of c o m p e titive rep o rts from other a g e ncie s,
and au tho rize s the tra n sa ctio n s to be c o n ­
su m m a te d im m ediately.

Banking Offices
in Operation
Before

2

After

4

Resources
(in thousands
of dollars)

C h ica g o, Illinois

to purchase the assets and
assume the deposit liabilities
of
Guaranty Bank &
Trust Company

American Bank
Houston, Texas
8,610

1

and
23,110

1

C h ica g o, Illinois

A p p ro v e d u n d er e m e rg e n cy p rovisions.
No re p o rt re q u e ste d from the A tto rn ey G e n ­
eral.
Basis fo r C o rpo ra tion A p p ro va l
July 14, 1979
In d e p e n d e n c e Bank of C h ica g o, C h ica g o,
Illinois, an insured State n o n m e m b er bank
w ith total re s o u rc e s of $ 7 3 ,2 5 3 ,0 0 0 , has
a p p lie d p u rsu a n t to S ection 18(c) of the F ed­
eral D e p o sit In su ra n ce A ct, for the C o rp o ra ­
tio n ’s co n s e n t to p u rc h a se the a ssets of and
a ssu m e the lia b ility to p a y d e p o sits m ade in
G u a ra n ty Bank & Trust C om pany, C h ica g o,




Before

0

After

1

(in organization)

to purchase the assets and
assume the deposit
liabilities of

C h ica g o , Illinois

Gateway National
Bank of Chicago

-

Banking Offices
in Operation

American National
Bank

11,695

1

Houston, Texas

A p p ro v e d u n d er e m e rg e n cy provisions.
No rep o rt req u e ste d from the A tto rn ey G en­
eral.
Dasis for C o rp o ra tio n A p p ro va l
July 12, 1979
A m e rica n Bank, H ouston, Texas, a newly
c h a rte r e d S ta te n o n m e m b e r b a n k , has
a p p lie d p u rsu a n t to S ections 5 and 18(c) of
the Federal D e p o sit n su ra n ce Act, for F ed­
eral d e p o s it in su ra n ce and for the C o rp o ra ­
tio n ’s co n se n t to p u rch a se the assets of and
a ssum e the lia b ility to p a y d e p o sits m ade in
A m e rica n N ational Bank, H ouston, T exas
(total reso u rce s of $ 1 1 ,695,000).

BANK ABSORPTIONS APPROVED BY THE CORPORATION
On O c to b e r 12, 1979, the Federal D e p o sit
In su ra n ce C o rpo ra tion w as a p p o in te d as Re­
c e iv e r of A m e rica n N ational Bank (w hose
d e p o s its w ere a p p ro x im a te ly $ 9 ,69 0 ,0 0 0 and
o p e ra te d one office).
The B oard of D ire cto rs fin d s that the fa ilure
of A m e rica n National Bank req u ire s it to act
im m e d ia te ly and thus w aives p u b lic a tio n of
n o tice, d is p e n s e s w ith the s o licita tio n of
c o m p e titiv e rep o rts from other a g e n cie s, and
a u tho rize s the tra n sa ctio n to be co n su m ­
m ated im m ediately.

M erg e r tra n s a c tio n s w ere involved in the
a c q u is itio n s of ba n ks by h o ld in g co m p a n ie s
in the fo llow in g a p p ro v a ls in 1979. In each
in sta nce , the A tto rn ey G e n e ra l’s rep o rt stated
th a t the p ro p o s e d tra n s a ctio n w ould have no
e ffe c t on c o m p e titio n . The C o rp o ra tio n ’s
b asis for a p p ro va l in each ca se stated th a t
the p ro p o s e d tra n s a c tio n w ould not, per se,
c h a n g e the co m p e titiv e stru ctu re of ban king ,
nor a ffe c t th e b a n k in g se rv ic e s th a t the
(o p e ra tin g ) b a n k has p ro v id e d in the past,
a nd th a t all o ther fa c to rs req u ire d to be
c o n s id e re d p e rtin e n t to the a p p lic a tio n w ere
fa v o ra b ly resolved.
Lee County Bank, O pelika, A la b a m a, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 100
($000); to p u rc h a s e the assets and assum e
the d e p o s it lia b ilitie s of and c h a n g e title to
T h e B a n k o f E a s t A la b a m a , O p e lik a ,
A la b a m a ; o ffic e s : 3; re s o u rc e s : 3 9 ,4 4 2
($000). A p p ro v e d : Ja n u ary 25.

The F. B. G. Bank of Marion, M arion, Ohio,
in o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 0
($000); to m erg e with and c h a n g e title to The
M arion C ounty Bank, M arion, Ohio; o ffice s 4;
resources: 56,636 ($000). A p p ro ve d : F eb ­
ruary 2.

125

Trust Company of Gwinnett County, Lawrenceville, G eorgia, in o rg a n iza tio n; o ffices:
0; resources: 700 ($000); to m erg e with and
c h a n g e title to G w in n e tt C o m m e rcial Bank,
L a w renceville, G eorgia; o ffices: 2 resources:
2 2,396 ($000). A p p ro ve d : A pril 23.
Security Bank and Trust Company, A lbany,
G eorgia; offices: 2; resources: 3 1 ,160 ($000);
to m erg e with CB&T, Inc., C olum bus, G eor­
gia, in org a n iza tio n; offices: 0; resources: 1
($000). A p p ro ve d : A pril 24.
Alaska Pacific Bank, A n ch o ra g e , Alaska;
o ffic e s : 2; re s o u rc e s : 7 0 ,2 4 8 ($0 0 0 ); to
m erg e with A la ska Interim Bank, A n ch o ra g e ,
A laska, in o rg a n iza tio n; offices; 0; resources:
30 ($000). A p p ro ve d : M ay 1.
First Alabama Bank of Conecuh County,
E vergreen, A la b a m a, in o rg a n iza tio n; offices:
0; resources; 50 ($000); to m erg e with The
C o n ecuh C ounty Bank, Evergreen, A labam a;
offices: 1; resources: 17,928 ($000). A p ­
proved: M ay 15.

Central Michigan Bank and Trust, Big
R a p id s, M ic h ig a n ; o ffic e s : 9, re s o u rc e s :
5 7 ,2 2 7 ($000); to c o n s o lid a te w ith C M B
Bank, Big R apids, M ichig a n , in org a n iza tio n;
offices: 0; resources: 120 ($000). A p p ro ve d :
M ay 18.
CS Bank, G a llipolis, Ohio, in org a n iza tio n;
offices: 0; resources: 312 ($000); to p u rch a se
the a ssets and assum e the d e p o sit lia b ilitie s
of and c h a n g e title to The C o m m e rcial and
Savings Bank, G allipo lis, Ohio; offices: 3;
resources; 35,562 ($000). A p p ro ve d : M ay
25.
Gold Country Bank, Grass V alley. C a lifo rn ia ;
o ffic e s : 5; re so u rce s 2 2 ,1 4 7 ($ 0 0 0 ); to
m erge w ith IBC In ve stm e n t C o rp o ra tio n , San
Rafael, C a lifo rn ia , in o rg a n iz a tio n ; o ffic e s : 0;
resources: 1 0 ($ 0 0 0 ). A p p ro ve d : Ju n e 29.

G e o rg ia ; o ffic e s : 6; re s o u rc e s : 1 0 2 ,7 6 2
($000); to m erg e with G e o rg ia Interim C om ­
pany, M acon, G eorgia, in o rg anization; of­
fice s: 0; reso u rce s: 0 ($000). A p p ro ve d :
F eb ru a ry 23.

Peoples Bank of South Jersey, Clayton,
New Jersey, in o rg a n iza tio n; offices: 0; re­
sources: 860 ($000); to p u rch a se the assets
and assum e the d e p o s it lia b ilitie s of Peoples
Bank of South Jersey, Clayton, New Jersey;
offices: 7; resources: 31,654 ($000). A p ­
proved: July 20.

New Riverside Bank, Fort W orth, Texas, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 2 0 0
($000); to m erg e w ith and c h a n g e title to
R iverside State Bank, Forth W orth, Texas;
offices: 1; resources: 84,032 ($000). A p ­
p roved: M arch 29.

South Street State Bank, P asadena, Texas,
in orga n iza tio n; o ffices: O; resources: 200
($000); to m erg e with and c h a n g e title to San
Ja cin to State Bank, P asadena, Texas; of­
fices: 1; resources: 8 1 ,567 ($000). A p p ro ve d :
A u g u st 13.

Collegiate State Bank of Fort Worth, Forth
W orth, Texas, in orga n iza tio n; offices: 0; re­
s o u rce s: 200 ($000); to m e rg e w ith and
c h a n g e title to U niversity Bank, Forth W orth,
Texas; offices: 1; resources: 89,214 ($000).
A p p ro v e d : A pril 12.

Texas A & M Bank, C o lle g e Station, Texas,
in org a n iza tio n; offices: 0; resources: 200
($000); to m erg e with a nd c h a n g e title to
Bank of A & M, C o lle g e Station, Texas; o f­
fices: 1; resources: 52,410 ($000). A p p ro ve d :
A u g u st 24.

Georgia Bank and Trust Company, M acon,




126

FEDERAL DEPOSIT INSURANCE CORPORATION

H. S. Bank, S ch a u m bu rg , Illinois, in o rg a n i­
zation; offices: 0; resources: 0 ($000); to
m erg e w ith and ch a n g e title to S u b u rba n
Bank of H o ffm a n -S ch a u m b u rg , S ch a u m bu rg ,
Illinois; o ffices: 2; resources: 19,106 ($000).
A p p ro v e d : S e p te m b e r 10.
The Olivet State Bank, O livet, M ichigan;
offices: 1; resources: 7,033 ($000); to m erg e
with N ew State Bank of O livet, O livet, M ich i­
gan, in o rg a n iza tio n; o ffices: 0; resources:
120 ($000). A p p ro v e d : S e p te m b e r 13.
Summit Bank and Trust Company of Fort
Wayne, Fort W ayne, Indiana, in o rg a n iza tio n;
offices: 0; resources: 0 ($000); to m erg e with
and c h a n g e title to Ind ian a Bank and T rust
C o m p a n y of Fort W ayne, Fort W ayne, In­
diana; offices: 12; resources: 276,044 ($000).
A p p ro v e d : S e p te m b e r 28.

New Addision State Bank, A d d isio n , Texas,
in o rg a n iz a tio n ; o ffices: 0; reso u rce s: 50
($000); to m erg e with and ch a n g e title to
A d d is o n State Bank, A d d iso n , Texas; offices:
1; resources: 2 6 ,929 ($000). A p p ro ve d : O c­
to b e r 23.

resources: 200 ($000). A p p ro ve d : N o ve m b e r
16.

The Bank of Flampton, H am pton, G eorgia;
offices: 1; resources: 7,281 ($000); to m erge
with Inte rim -H a m p to n, Inc., H am pton, G e o r­
gia, in org a n iza tio n; offices: 0; resources: 1
($000). A p p ro ve d : N o ve m b e r 20.
Valley Central Bank, R ichfield, Utah; o f­
fices: 1, resources: 15,697 ($000); to m erg e
with VC Bank C o rpo ra tion , R ichfield, Utah, in
o rg a n iza tio n; offices: 0; resources: 0 ($000).
A p p ro v e d : N o ve m b e r 21.
First Railroad Bank of Dalton, D alton,
G e o rg ia , in o rg a n iz a tio n ; o ffic e s : 0; re ­
so u rce s: 500 ($000); to m e rg e w ith and
ch a n g e title to The Bank of Dalton, Dalton,
G eorgia; offices: 3; resources: 29 ,09 9 ($000).
A p p ro ve d : N o ve m b e r 21.
First Railroad Bank of Cobb County,
M arietta, G eorgia, in o rg a n iza tio n; offices: 0;
resources: 500 ($000); to m erg e with and
c h a n g e title to The C o m m e rcial Bank of C o b b
C ounty, M arietta, G eo rg ia ; o ffices: 7; re­
s o u rc e s :
4 8 ,6 3 6
($ 0 0 0 ).
A p p ro v e d :
N o ve m b e r 21.

New South Central Bank, H utchins, Texas,
in o rg a n iz a tio n ; o ffices: 0; reso u rce s: 50
($000); to m erg e with and ch a n g e title to
South C entral Bank, H utchins, Texas; offices:
1; resources: 9,781 ($000). A p p ro ve d : O c ­
to b e r 23.

The Bank of Duluth, D uluth, G eorgia; of­
fices: 1; resources: 26,727 ($000); to m erg e
with D uC orp, Inc., A tlanta, G eorgia, in o r­
g anizatio n ; o ffices: 0; resources: 1 ($000).
A p p ro ve d : N o ve m b e r 29.

Hood River County Bank, H ood River, O re ­
gon; offices: 1; resources: 6,501 ($000); to
m erg e w ith Hood River C ounty Interim Bank,
H ood River, O regon, in o rg anization; o ffices:
0; resources: 10 ($000). A p p ro ve d : O cto b e r
29.

Mercantile Bank of Houston, H o u sto n,
Texas; offices: 1; resources: 90,060 ($000);
to m erg e with and c h a n g e title to A llie d
M erca n tile Bank, H ouston, Texas, in o rg a n i­
zation; offices: 0; resources: 200 ($000). A p ­
pro ve d : N o ve m b e r 30.

New First State Bank of Taft, Taft, Texas, in
org a n iza tio n; offices: 0; resources: 50 ($000);
to m erg e w ith and ch a n g e title to The First
State Bank of Taft, Taft, Texas; offices: 1;
resources: 10,286 ($000). A p p ro ve d : O c ­
to b e r 31.

Allied Cypress Bank, Houston, Texas, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 100
($000); to m erg e with C yp ress Bank, H ous­
ton, Texas; o ffice s: 1; reso u rce s: 36 ,14 0
($000). A p p ro ve d : D e ce m b e r 7.

Citizens Bank and Trust Company, Clare,
M ic h ig a n ; o ffic e s : 7; re s o u rc e s : 7 2 ,7 3 8
($000); to m erg e w ith C BC Bank, Clare,
M ic h ig a n , in o rg a n iz a tio n ; o ffice s: 0; re­
so u rce s: 120 ($000). A p p ro ve d ; N ove m b e r
16.

Commercial State Bank, H ouston, Texas;
o ffic e s : 1; re s o u rc e s : 4 0 ,8 0 3 ($0 0 0 ); to
m erg e w ith New C o m m e rcial State Bank,
Houston, Texas, in org a n iza tio n; offices: 0;




Texas Bank and Trust Company, J a ckso n ­
ville, Texas; offices: 1; resources: 50,979
($000); to m erg e with and c h a n g e title to
A llie d T exas Bank, Ja ckso n ville , Texas, in
o rg a n iza tio n; offices: 0; resources: 75 ($000).
A p p ro ve d : D e ce m b e r 14.
Port City State Bank, Houston, Texas; of­
fices: 1; resources: 54,448 ($000); to m erge
w ith N ew Port C ity Bank, H ouston, Texas, in
o rg a n iz a tio n ; o ffic e s : 0; re s o u rc e s : 2 0 0
($000). A p p ro ve d : D e ce m b e r 21.

127

BANK ABSORPTION DENIED BY THE CORPORATION

Resources
(in thousands
of dollars)

The Pennsylvania
Bank and Trust
Company

Banking Offices
in Operation
Before

After

470,252

24

25

7,962

1

W arren,
Pennsylvania

to merge with
The Farmers National
Bank of
Conneautville
C onneautville,
Pennsylvania
Sum m ary rep o rt by A tto rn ey G eneral,
M ay 1, 1979
O verall, in our view , the p ro p o se d tra n s a c ­
tion w o u ld not have a sig n ific a n tly a d ve rse
c o m p e titiv e effe ct.
Basis for C o rp o ra tio n Denial
July 30, 1979
The P ennsylvania Bank and Trust C om ­
pany, W arren, P ennsylvania (“ Penn B a n k” ),
an insu re d State n o n m e m b er bank with total
reso u rce s of $ 4 7 0,2 5 2 ,0 0 0 and total IPC d e ­
p o sits of $394,3 8 4 ,0 0 0, has a p p lie d , p u r­
suant to S ection 18(c) and oth er pro visio n s of
the Federal D e p o sit In su ra n ce A ct, for the
C o rp o ra tio n ’s p rio r co n se n t to m erge with
The F arm ers National Bank of C onneautville,
C o n n e a u tv ille , P e n n s y lv a n ia ( “ F a rm e rs ” ),
w ith total reso u rce s of $ 7 ,96 2 ,0 0 0 and total
IPC d e p o s its of $6,971,000. The banks w ould
m e rg e u n d e r the ch a rte r and title of Penn
B ank and, in c id e n t to the m erger, the sole
o ffic e of Farm ers w o u ld b e co m e a b ra n ch of
the resu ltin g bank, in cre a sin g the n u m ber of
its o ffic e s to 25.
Penn Bank is the 24th la rg e st co m m e rcial
b a n k in P ennsylvania. Its m ain o ffice is lo­
c a te d in W a rre n C o u n ty a n d its le g a l
b ra n c h in g area co n sists of W arren C ounty
and the six co n tig u o u s counties. Its 24 offices
are lo c a te d in Erie (2), C ra w ford (6), V e nango
(4), Elk (4), M cK ean (3), and W arren (5)
C ou n ties w ith Forest b e in g the only co u n ty in
Penn B a n k ’s legal b ra n ch in g area in w h ich it
is not c u rre n tly re p re se n te d . Penn Bank has
the la rg e s t share of c o m m e rcia l bank d e ­
p o sits (20.5 p e rce n t) in the se ve n -co u n ty
area. F arm ers o p e ra te s its sole o ffice in the
n o rth w e ste rn se ctio n of C ra w ford County. It is
the sm alle st b a n k in the co u n ty and one of the
s m alle st ba n ks in the state.




Competition. Penn Bank o p e ra te s in se v­
eral m arkets s p re a d th ro u g h o u t its legal
b ra n c h in g a re a , p ro v id in g c o n v e n ie n tly
a va ila b le ban king se rvice s to a m ajority of the
resid e n ts of the area. In the C ra w ford C ounty
area Penn Bank has six o ffices, and th re e are
lo ca te d w ithin 15 road m iles of Farm ers. In
a d d itio n to these th re e o ffices, Penn Bank
has tw o b ra n ch e s in M ea d ville w hich is a p ­
p ro xim a te ly 16 road m iles from Farm ers. Its
clo se st o ffice to F arm ers is the L inesville
B ranch, a p p ro xim a te ly 8 road m iles so u th ­
w est. This is also the clo se st co m m e rcia l
b a n king o ffice to Farm ers.
The e ffe cts of the p ro p o s e d m erg e r w ould
be m ost im m e d ia te and d ire c t w ithin the
p rim a ry tra d e area of Farm ers, w h ich c o n ­
sists of that area w ithin a p p ro xim a te ly 15
road m iles of C onn e au tville and e xte n d e d in
the so u the a st to in clu d e the city of M eadville.
The area is la rg e ly a g ricu ltu ra l with in dustrial
a ctivitie s c o n ce n tra te d in M ea d ville and its
im m e d ia te s u rro u n d in g area. M ea d ville is the
c o u n ty se a t a n d s e rve s as th e p rim a ry
e co n o m ic ce n te r for the area. It is easily
a c c e s s ib le by tw o m ajor state h ig h w ays and
In te rsta te Route 79, a m ajo r n o rth -so u th
highw ay. The 1970 p o p u la tio n of the area
w as 47,949, w ith M ea d ville and the sur­
rou n d in g to w n sh ip s a c c o u n tin g for over 50
p e rc e n t of the p o p ula tio n .
The area is se rve d b y 15 o ffice s of six
c o m m e rcia l banks, in clu d in g five o ffice of
Penn Bank. Farm ers is the sm alle st b a n k in
the area, with 3.2 p e rc e n t of co m m e rcia l
ba n k IPC d e p o sits, but Penn Bank is the
d o m in a n t b a n k w ith 41.4 p e rc e n t of the
a re a ’s co m m e rcial b a n k IPC d e p o sits. There
are no interve n in g o ffice s of other co m m e r­
cial banks b etw een Farm ers and som e of the
b ra n ch e s of Penn Bank, in clu d in g the L ines­
ville o ffice (8 m iles) and the S aegertow n
o ffice (12 miles).
Therefore, the p ro p o se d tra n sa ctio n w ould
not only elim inate existing co m p e titio n , but it
w o uld serve to fu rth e r co n ce n tra te ba n king
reso u rce s in the d o m in a n t b a n k in the area,
and it w ould elim inate a co n ve n ie n t ba n king
alte rn a tive for m any of the area residents.
T here a p p e a rs to be no sig n ifica n t p o te n ­
tial for c o m p e titio n to in cre a se betw e en the
p ro p o n e n ts th ro u g h fu tu re de novo b ra n c h ­
ing. Farm ers does not a p p e a r to have the
fin a n cia l or m an a g e ria l reso u rce s to fa cilita te
such exp a nsio n , and the sp a rse p o p u la tio n
of the are a im m e d ia tely s u rro u n d in g Farm ers
d o e s not m ake it a ve ry a ttra ctive lo ca tio n for
de novo b ra n ch in g . In cre a se d c o m p e titio n
betw e en the tw o ba n ks co u ld o ccu r, how ­

128

FEDERAL DEPOSIT INSURANCE CORPORATION

ever, if Farm ers w ere to be a cq u ire d by a
ba n k o ther than Penn Bank. Such an a c q u is i­
tion c o u ld result in the eventual le ssening of
P enn B a n k ’s m a rk e t d o m in a tio n . U n d e r
P ennsylvania ba n king laws, there are 17
c o m m e rc ia l banks that co u ld m erg e with
Farm ers. They ran g e in d e p o sit size from
$ 6 ,90 0 ,0 0 0 to $4 2 1,8 6 9 ,0 0 0 (Penn Bank).
O nly five of these banks are cu rre n tly in
d ire c t c o m p e titio n w ith Farm ers. Of the banks
not in d ire c t co m p e titio n , there are five banks
with d e p o s its in e xce ss of $150,000,000.
T herefore, there a p p e a rs to be a su fficien t
n u m b e r of p o te n tia l m e rg e r p a rtn e rs fo r
Farm ers, any one of w hich w o u ld have a less
a n tic o m p e titiv e e ffe ct than a m e rg e r with
Penn Bank.
In vie w of the above, it a p p e a rs to the
C o rpo ra tion that the p ro p o se d m erg e r w ould
(i) elim inate sig n ific a n t e xisting co m p e titio n ,
(ii) in cre a se the d o m in a n t b a n k ’s share of the
m arket from 4 1.4 p e rc e n t to 4 4 .6 p e rce n t, (iii)
re d u c e the n u m b e r of b a n king a lte rn a tive s in
the relevant area from six to five, and (iv)
fo re clo s e the p o s s ib ility that sig n ifica n t new
c o m p e titio n c o u ld arise by e lim in a tin g a
m e rg e r p a rtn e r fo r a b ank not re p re se n te d in
the m arket.




Financial and Managerial Resources; Fu­
ture Prospects. Both banks have sa tisfa cto ry
fin a ncia l and m anagerial reso u rce s, and both
have sa tisfa cto ry p ro s p e c ts fo r the future.
The sam e w o u ld be true of the resulting bank
if the m e rg e r w ere a p p ro ve d . The b a n king
fa cto rs, a c c o rd in g ly , are c o n sid e re d to w e ig h
neither in fa vo r of nor a g a in st the m erg e r
pro p o sa l.

Convenience and Needs of the Community
to be Served. Since Penn B ank is a lre a d y
re p re se n te d in the m arket, there w ould be no
c h a n g e in se rvice s o ffe re d for the m arket as
a w hole. C o n sid era tio ns of c o n ve n ie n ce and
ne e ds of the co m m u n ity are neutral and
w e ig h neither in favor of nor a g a in st the
p ro p o se d m erger.
A review of ava ilab le in form ation, in clu d in g
the C om m unity R einvestm ent A c t S tatem ents
of the p ro p o n e n ts and o th er relevant m ate ­
rial, d is c lo s e d no in co n siste n cie s with the
p u rp o se s of the act.
S ince the a n tico m p e titive e ffe cts of the
p ro p o se d m erg e r are not, in the o p in io n of
the B oard of D irectors, cle a rly o u tw e ig h e d by
other fa cto rs, the C o rpo ra tion has c o n c lu d e d
that the p ro p o s e d m erg e r of Penn B ank and
Farm ers should be den ied .

REGULATIONS AND LEGISLATION




PART FOUR




131

LEGISLATION—1979
Financial Privacy Notification Re­
peal. Public Law96-3, approved March
7,1 979, repealed the notice require*
ment contained under section 1 104(d)
of the Right to Financial Privacy Act
which would have become effective
on March 10, 1979, and would have
required all creditor and financial
institutions to notify their cus­
tomers of the rights under this Act.
Insurance of Foreign Bank Branches.
Public Law96-64, approved September
14, 1 979 , amended the In te r­
national Banking Act of 1978 (Public
Law95-369)to permit existing branches
of foreign banks which have applied
for Federal deposit insurance by Sep­
tember 1 7, 1979, and have not had
their application denied, to continue
deposit retail operations until Jan­
uary 31,1 980.
Automatic Transfer Accounts-State
Usury Laws. Public Law 96-161,
approved December 28, 1979, ex­
tended for 90 days (until March 31,
1980) the authority for banks to
offer automatic transfers from sav­
ings to checking accounts, for sav­
ings and loan associations to oper­
ate remote service units, and for
credit unions to offer share draft
accounts. This legislation also ex­
empted agricultural and business
loans of $25,000 or more from State
usury limitations. This exemption ex­
pires on March 31, 1980 for those
States that have statutory usury pro­
visions and on July 1, 1981 for
those States having constitutional
usury restrictions. Any State could
reinstate its own usury ceilings by
taking affirmative action to that ef­
fect. Finally, Public Law96-161 auth­
orized interest-bearing negotiable order
of withdrawal (NOW) accounts for
the State of New Jersey.
RULES AND REGULATIONS-1979
Change in Bank Control (Part 303)
On January 24, 1979, the FDIC
adopted revisions to sections 303.1 1



and 303.15 of its regulations to
implement the Change in Bank Con­
trol Act of 1978. The Act requires
any person seeking to acquire con­
trol of an insured bank to file 60
days' advance notice with the appro­
priate Federal banking agency. In
addition, the Act describes the fac­
tors that the FDIC and other Federal
banking agencies are to consider in
determining whether a transaction
covered by the Act should be dis­
approved.
Disclosure of Trust Department As­
set Reports (Part 309). On October
22, 1979, the FDIC approved an
amendment to Part 309 of its regu­
lations to permit routine public dis­
closure on a request basis of Trust
Department Annual Reports cur­
rently filed with the FDIC by insured
State nonmember banks.
Interest Rate Regulations (Part 329).
Effective March 1 5, 1979, the FDIC
amended Part 329 of its regulations
to prohibitthe compounding of inter­
est by insured State nonmember
banks on money market certificates
of $10,000 or more. The ban ap­
plies to certificates with maturities
of 26 weeks that have their interest
rate ceiling keyed to the average
auction discount rate on the most
recently issued 6-month UnitedStates Treasury bills. The amended
Part 329 also requires that adver­
tisements by insured nonmember
banks offering such certificates con­
tain a statement that Federal reg­
ulations prohibit compounding of inter­
est during the term of deposit.
In addition, the amendment re­
duced the interest rate differential
normally available to mutual savings
banks on these instruments. This
reduction applies when the average
auction discount rate is greaterthan
8-% percent and the differential is
eliminated when the average auc­
tion rate is 9 percent or greater.
Part 329 wasfurtheramended on July
1, 1 979, in response to the problem
of the relatively low return small

132

FEDERAL DEPOSIT INSURANCE CORPORATION

savers were receiving under the exist­
ing interest rate structure. The maxi­
mum rate of interest on passbook
savings accounts was increased 1 /4
of one percent for both commercial
banks (to 5 V a percent) and thrift
institutions (to 5 Vi percent). A new
deposit category was established
for time deposits with maturities of 4
years or more. The rate ceiling on
these deposits was based on the
yield for 4-year government securi­
ties as determined each month by
theTreasury Department. Also, insti­
tutions were authorized to set their
own minimums for consumer-type
time deposits, except for the $ 10,000
minimum required for money mar­
ket certificates. And finally, early
withdrawal penalties in all deposit
categories were established for new
certificates issued or renewed after
July 1.
In conjunction with the above changes,
the FDIC issued a statement of pol­
icy clarifying the authority of banks to
accept deposits that have been
pooled by depositors to reach a min­
imum denomination requirement, but
prohibiting institutions from solicit­
ing, advertising or promoting pooled
deposits in any way.
Part 329 also was amended to
provide for the waiver of penalties for
early withdrawal of a time deposit in
the event a depositor dies or is de­
clared mentally incompetent. In addi­
tion, the new withdrawal penalties
which became effective on July 1
were extended to all time deposits,
irrespective of date. The ceiling rate
of interest payable on time deposits
with maturities of between 30 and
89 days was increased from 5 per­
cent to 5 1 percent, making it equal
/4
to the rate available on passbook
savings accounts. Also, repurchase
agreements (RPs) of less than $ 100,000
with maturities of 90 days or more
were made subject to interest rate
ceilings. To prevent undue hardship,
a 3-year phaseout period was pro­
vided. During this period, banks are



permitted to continue issuing such
RPs without regard to interest rate
ceilings so long as the total amount
outstanding does not exceed the
amount outstanding on August 1,
1979. This amendment took effect
on July 30, 1979.
Effective January 1,1 980, the FDIC
amended its regulations pertaining
to time deposits. Pursuant to these
revisions the existing 4-year floatingrate time deposit was replaced by a
new floating-rate certificate with a
maturity of 2Vi years and a rate tied
to the yield on Treasury securities
maturing in 2 1
/2years. For thrift insti­
tutions, the ceiling rate is 50 basis
points below the 2Vi year Treasury
rate while for banks the ceiling rate
is 75 basis points below the Treas­
ury rate. There are no minimum de­
p o s it re q u ire m e n ts and c o m ­
pounding of interest is permitted.
Another change increased by 1/ 4
of a percentage point the ceiling on
deposits maturing in 90 days to 1
year. The final amendment autho­
rized banks to pay the same rate as
thrifts when IRA/Keogh and govern­
mental unit funds are deposited in
the new 2Vi year or more certifi­
cates. Banks also may pay the same
rate as thrifts on IRA/Keogh and govern­
mental unit deposits of $ 10,000 or
more placed in 26-week money mar­
ket certificates regardless of the
level of the Treasury bill rate.
Recordkeeping and Confirmation
Requirements for Securities Trans­
act ions (Part 344). The FDIC
adopted, effective January 1, 1980,
new rules establishing uniform stand­
ards for bank recordkeeping, con­
firmation, and other procedures in
making securities transactions for
trust departments and other bank
customers. This action was taken
after a study by the Securities and
Exchange Commission on banksecurities activities and responds to cer­
tain recommendations in the SEC
report. The final rules were adopted
follow ing consideration of com ­

RULES AND REGULATIONS

ments received on proposals pub­
lished in January 1978 and revised
proposals published in November.
The final rules were substantially
unchanged from the November pro­
posals.
International Banking Act of 1978
(Part 346). On June 28, 1979, the
FDIC issued final regulations imple­
menting section 6 of the Interna­
tional Banking Act of 1978. These
regulations provide for Federal de­
posit insurance coverage of United
States branches of foreign banks
and, in some cases, require insur­
ance. Section 6 also amends the
Federal Deposit Insurance Act to
establish special requirements for
branches that are insured by the
FDIC.
Foreign Activities of Insured State
Nonmember Banks(Part 347) Effective
May 30,1979, the FDIC adopted new
regulations implementing theforeign
banking requirements in FIRIRCA.
Under the new regulations, any in­
sured State nonmember bank must
obtain the consent of the FDIC be­
fore establishing its first branch in a
foreign country or before acquiring
any ownership interest in a foreign
bank or other foreign financial en­
tity. The bank must provide 30 days'
notice to the FDIC concerning its
intent to relocate an existing foreign
branch or to increase the number of
foreign branches in a country where
it has an authorized foreign branch.
The FDIC also must be notified
when a foreign branch is closed. In
addition, the regulations require banks
to maintain a system of records,
controls, and reports on their for­
eign activities.
Management Official Interlocks (Part
348). The Depository Institution Man­
agement Interlocks Act was enacted
as Title II of FIRIRCA. The general
purpose of the Interlocks Act and
this Part is to foster competition
among depository institutions.
Tothisend.a management official
of a depository institution (bank.



133

savings and loan association, mut­
ual savings bank or credit union) or
depository holding company is gen­
erally prohibited from also serving
as a management official of another
depository institution or depository
holding company if the two organi­
zations: (1) are not affiliated and (2)
are very large or are located in the
same local area. The regulations
provide for specific exemptions from
the above prohibitions, but prior
FDIC approval is required.
Correspondent Accounts and Dis­
closure of Material Facts (Part 349
and 304). On March 10, 1979, Title
VIII (Correspondent Accounts) and
Title IX (D isclosure of M aterial
Facts) of FIRIRCA became effective.
Title IX contains provisions that
specify what information must be
reported by insured banks to the
Federal banking agencies regarding
loans by the bank to its own execu­
tive officers and principal share­
holders (but not directors) under
Title I of FIRIRCA. Title I and Federal
Reserve Board Regulation 0, which
implements it, are applicable to in­
sured State nonmember banks in
the same manner and to the same
extent as if they were State member
banks. Under Title IX, insured State
nonmember banks will report to the
FDIC. The FDIC has promulgated
section 304.4 of Part 304 to imple­
ment the reporting requirements of
Title IX.
Title VIII, in part, prohibits prefer­
ential loans to executive officers and
principal shareholders of a bank
from its correspondent banks, and
requires such persons to report to
their bank's board of directors on
their indebtedness (and indebted­
ness of their related interests) to the
bank's correspondent banks. The FDIC
has promulgated Part 349 to imple­
ment the reporting requirements (not
the prohibitions) of Title VIII. Both
sections 304.4 and Part 349 took
effect on December 31, 1979.
The FDIC, in conjunction with the

134

FEDERAL DEPOSIT INSURANCE CORPORATION

Board of Governors of the Federal
Reserve System and the Comptroller
of the Currency, has developed two
forms for use by executive officers,
principal shareholders and banks in
complying with the reporting require­
ments of Titles VIII and IX of FIRIRCA.
Form FFIEC 004 (Report on Indebted­
ness of Executive Officers and Prin­
cipal Shareholders and Their Re­
lated Interests to Correspondent Banks)
is a recommended form for use by
executive officers and principal share­
holders to report to the board of
directors of their bank on their indebt­
edness (and that of their related
interests) to correspondent banks,
as required by Title VIII and Part 349
of FDIC's regulations. FFIEC 004 (or
a similar form) is to be submitted by
executive officers and principal share­
holders to their banks by January
31, of each year.
Each executive officer and princi­
pal shareholder (reporting persons)
filing FFIEC 004 must indicate on
the form the name of the reporting
person, the name of the bank to
which the report is submitted, and
the name and address of the corres­
pondent bank to which the person or
related interest is indebted.
Form FFIEC 003 (Report on Owner­
ship of the Reporting Bank and on
Indebtedness of its Executive Offi­
cers and Principal Shareholders to
the Reporting Bank and to its Cor­
respondent Banks) is the form re­
quired by Title IX and section 304.4
of Part 304 of the FDIC's regulations
for use by insured State nonmember
banks in reporting to FDIC on the
aggregate direct indebted ness of exe­
cutive officers, principal share­
holders and their related interests to
the bank under Title I of FIRIRCA, as
required by Title IX. FFIEC 003 also
is used by the banks to report to
FDIC on the aggregate indebtedness
of these persons and their related
interests to correspondent banks as
reported under Title VIII. A consoli­
dated form has been adopted so that



a bank need file only one form with
FDIC in order to comply with the
reporting requirements of both Titles
VIII and IX. The law requires that this
information be made publicly avail­
able by the banks and by the FDIC.
Limits on Loans to Executive Offi­
cers, Directors and Principal Shareholders (Regulation 0). Section 22(h),
relating to limits on loans to execu­
tive officers, directors, and principal
shareholders of member banks, was
added to the Federal Reserve Act by
FIRIRCA, which further provides that
the provisions of section 22(h) are
applicable to nonmember insured
banks as well as to State member
banks.
Section 22(h) limits loans to exe­
cutive officers, principal share­
holders and their related interests to
10 percent of the bank's capital and
unimpaired surplus and prohibits
the payment of an overdraft of an
executive officer or director. It also
requires that every extension of credit
by a bank to any of its executive
officers, directors, or principal share­
holders and their related interests
be made on "substantially the same
terms" as "comparable transactions
with other persons." In addition, a
majority of the entire board of direc­
tors of the bank must approve in
advance an extension of credit to
any of the above persons which
exceeds $25,000.
Proposals to Simplify FDIC Rules
and Regulations. The FDIC policy
statement on regulations provides
for the review every 5 years of each
existing regulation to determine if it
should be continued, revised or elimi­
nated. The first review is well under­
way. During 1979, the majority of
the Corporation's existing regula­
tions and one proposed regulation
were reviewed. To date, 11 specific
actions have been taken: six regula­
tions (Parts 301, 302, 305, 306,
325and 334) were eliminated. Aseventh,
(Part 337) was substantially re­
duced by elimination of the insider

RULES AND REGULATIONS

transaction provisions. A proposed
regulation (Part 340, relating to offer­
ing circular requirements for the
public issuance of bank securities)
was withdrawn and replaced by a
substantially simplified policy state­




135

ment; and proposals recommending
the reduction or simplification of
three other regulations were issued.
Additional proposals to simplify and
reduce other regulations currently
are being drafted.







STATISTICS OF BANKS
AND DEPOSIT INSURANCE
PART FIVE

GO
00

N UM BER OF BANKS AND B R A N CH ES

m

o

m

Table 101.

Changes in number and classification of banks and branches in the United States (States and
other areas) during 1 979
o

>

Table 102.

Changes in number of commercial banks and branches in the United States (States and other
areas) during 1979, by State
q

§

Table 103.

Number of banking offices in the United States (States and other areas), December 31, 1979

Table 104.




z

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

c

Number and assets of all commercial and mutual savings banks in the United States (States
and other areas), December 3 1 , 1 9 7 9

Banks grouped by class and asset size

Table 105.

m

z
m

o

Number, assets, and deposits of all commercial banks in the United States (States and other
areas), December 31, 1979
§

Banks grouped by asset size and State

h

Institution s 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

139




BRANCHES

M utual savings banks include all banks operating under State banking
codes applying to mutual saving banks.

O BANKS AND
F

Nondeposit tru s t 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.

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;
Federal Reserve Banks and other banks, such as the Federal Home Loan
Banks and the Savings and Loan Bank of the State of New York, which operates
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

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.

140

T a b le 101.

CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1979
M utual savin gs banks

C om m e rcial banks and n ondeposit trust com panies
N oninsured

Insured
Non­
insured

N on­
deposit
trust
co m -.
panies

Total

Insured

Non­
insured

National

Type of change

Insured

Total

Insured
Total

Total

State

Not
m em ­
bers
F.R.
S ystem

23,307
22,731

5,856
5,725

21,993
20,730

330
314

104
102

3,338
3,006

2,840
2,517

498
489

M em bers
F.R . System

Banks
of
deposit

ALL BANKING OFFICES
Number of offices, December 31,1 9 7 9 ...................................................
Number of offices, December 31,1 9 7 8 ...................................................

54,928
52,608

53,996
51,703

932
905

51,590
49,599

51,156
49,186

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

+2,320

+2,293

+27

+1,991

+1,970

+576

+131

+1,263

+16

+2

+332

+323

+9

Offices o p e n e d ......................................................................................

2,895

2,849

46

2,532

2,498

1,072

236

1,190

27

7

363

351

12

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

239
2,656

206
2,643

33
13

237
2,295

204
2,294

42
1,030

31
205

131
1,059

26
1

7
0

2
361

2
349

0
12

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

575

563

12

544

533

279

79

175

6

5

31

30

1

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

244
331

238
325

6
6

240
304

234
299

106
173

32
47

96
79

1
5

5
0

4
27

4
26

0
1

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

0

+3

-3

0

+2

-2 1 7

-2 7

+246

-2

0

0

+1

-1

Am on g b a n k s .............................................................................
A m ong branches .............................................................................

0
0

0
+3

0
-3

0
0

0
+2

-5 2
-1 6 5

-2 3
-4

+ 75
+171

0
-2

0
0

0
0

0
+1

0
-1

15,201
15,206

14,688
14,716

513
490

14,738
14,741

14,364
14,391

4,448
4,564

977
1,000

8,939
8,827

282
2603

92
903

463
465

324
325

139
140

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

-5

-2 8

+23

-3

-2 7

-1 1 6

-2 3

+112

+22

+2

-2

-1

-1

Banks beginning o p e ra tio n ................................................................

239

206

33

237

204

42

31

131

26

7

2

2

0

New banks ............... , ......................................................................
Banks added to cou n t
..................................................................
Financial institution becom ing bank of d eposit ..........................

235
1
3

206
0
0

29
1
3

233
1
3

204
0
0

42
0
0

31
0
0

131
0
0

22
1
3

7
0
0

2
0
0

2
0
0

0
0
0

Banks ceasing o p e ra tio n .....................................................................

244

238

6

240

234

106

32

96

1

5

4

4

0

A b so rp tio n s, con so lid a tio n s, and m ergers .................................
Closed because of finan cial d if f ic u lt ie s ..........................................
Other liq u id a t io n s .............................................................................
Disco ntinued deposit operations ...................................................
Banks deleted from c o u n t ................................................................

235
1
3
1
4

235
1
2
0
0

0
0
1
1
4

231
1
3
1
4

231
1
2
0
0

106
0
0
0
0

32
0
0
0
0

93
1
2
0
0

0
0
0
1
0

0
0
1
0
4

4
0
0
0
0

4
0
0
0
0

0
0
0
0
0

Noninsured banks becoming in s u re d ...............................................

0

+4

0

+3

0

+1

+2

0

0

+1

BANKS
Number of banks, December 3 1 ,1979 .....................................................
Number of banks, December 3 1,1978 ...................................................




-4

-3

-1

FEDERAL DEPOSIT INSURANCE CORPORATION

All banks

Other changes in cla s s ific a tio n ..............................................
National succeedin g State b a n k ..........................................
State succeedin g national bank ..........................................
A d m is sio n of insured bank to F.R . System ......................
W ithdraw al from F.R . S ystem with continued insurance .
Insured bank becom in g n on insu red bank ........................
Mutual savin gs bank converted to com m e rcia l b a n k ___

0

0

0

0

-5 2

-2 3

+75

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

+1
-5 3
0
0
0
0

0
0
+6
-2 9
0
0

-1
+ 53
-6
+ 29
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

294
29
10
10
215

293
25
10
8
211

293
29
10
10
212

292
25
10
8
208

84
7
3
3
52

24
1
1
0
2

184
17
6
5
154

0
0
0
1
4

1
4
0
1
0

1
0
0
0
3

1
0
0
0
3

0
0
0
0
0

48

48

48

48

0

0

48

0

0

0

0

0

39,727
37,402

39,308
36,987

36,852
34,858

36,792
34,795

18,859
18,167

4,879
4,725

13,054
11,903

48
54

12
12

2,875
2,541

2,516
2,192

359
349

Changes not involving number in any class
Change
Change
Change
Change
Change

in
in
in
in
in

t it le .........................................................................
location ................................................................
title and location ................................................
name of location ................................................
location within c i t y ..............................................

Change in corporate powers
BRANCHES
Number of branches, December 31,1979,..
Number of branches, December 31,1978

+2,321

+1,994

+1,997

+692

+154

+1,151

0

+334

+324

+10

2,656

2,643

2,295

2,294

1,030

205

1,059

1

0

361

349

12

Facilities designated by T r e a s u r y ......................
A bsorbed bank converted to b r a n c h .................
Branch replacing head office relocated ...........
New b r a n c h e s .............................................. . . .
B ranches an d /o r facilitie s added to count

2
220
33
2,07 9
322

2
220
33
2,074
314

2
216
33
1,845
199

2
216
33
1,844
199

2
133
10
849
36

0
41
1
154
9

0
42
22
841
154

0
0
0
1
0

0
0
0
0
0

0
4
0
234
123

0
4
0
230
115

0
0
0
4
8

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

331

325

304

299

173

47

79

5

0

27

26

1

Facilities desig nated by Treasury ......................
B ranches ................................................................
B ranches an d /o r facilities deleted from count .

3
238
90

3
234
88

3
215
86

3
211
85

3
99
71

0
42
5

0
70
9

0
4
1

0
0
0

0
23
4

0
23
3

0
0
1

-6

Other changes in c la ssifica tio n ..............................................

0

+3

0

+2

-1 6 5

-4

+171

0

0

+1

-1

B ranches changing class as a result of c o n v e r s io n .........
B ranches of n oninsured banks adm itted to insurance . . .
Branches transferred throug h ab so rptio n, consolidation,
or m e r g e r ...........................................................................
B ranches of insured banks w ithdraw ing from F .R .S . . . .

0
0

0
+1

0
0

0
0

-1 7 5
0

+9
0

+ 16 6
0

0
0

0
0

0
0

0
+1

0
-1

0
0

+2
0

0
0

+2
0

+ 10
0

+ 69
-8 2

-7 7
+ 82

-2
0

0
0

0
0

0
0

0
0

-2

Changes not involving number in any class
Changes in operating p o w ers of b r a n c h e s ........................
B ran ch es tra n sfe rre d through ab so rptio n, con solida tion ,
or m e r g e r ...........................................................................
Changes in title, location, or name of lo c a tio n .................

1

1

1

1

1

0

0

0

0

0

0

0

402
474

402
473

402
474

374
448

272
213

20
40

82
195

0
0

0
0

28
26

28
25

0
1

Includes non insu red non de posit tru st com p an ies, m em bers of the Federal Reserve System.
^Reflects all banks opened or close d but not p re viou sly included in count.
^ 1978 Bank or banch total adjusted from prior year.
t.B an ks and branches opened p rior to 1979 but not included in count as of D ecem ber 31, 1978.
Includes all branch entities establish ed in a prior year but not previously included in count.




BRANCHES

+2,325

Branches opened for business ............................

Net change during y e a r .

NUMBER O BANKS AND
F

Granted trust p o w e r s ..........................

1 42

T a b le 102.

CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1979, BY STATE

Banks

B ran ch es

Banks

Branches

Banks

Branches

New

Other

New

Other

A b so rp tio n s

Other

Branches

Other

Total United S ta te s ................
50 States and D.C...................

14,738
14,708

36,852
0

14,741
14,711

34,861
0

-3
-3

+1,991
0

233
231

4
4

2,044
0

251
0

231
230

9
8

215
0

89
0

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

30

0

30

0

0

0

2

0

0

0

1

1

0

0

A la b a m a ...................................
A laska ......................................
A r iz o n a .....................................
A rkan sas .................................
C a lif o r n ia .................................

317
12
27
261
257

578
109
505
393
4 ,09 0

312
12
28
262
244

553
112
484
372
3,906

+5
NA
-1
-1
+ 13

+25
-3
+21
+21
+ 184

7
0
2
0
24

0
0
0
0
0

27
1
23
21
190

2
0
0
2
12

2
0
0
1
11

0
0
3
0
0

3
2
2
2
13

1
2
0
0
5

C olo rado
...............................
C o n n e c tio n .............................
Delaware .................................
D istrict of C o lu m b ia ...............
Florida .....................................

410
65
20
17
585

97
593
147
140
946

394
65
19
17
617

81
587
147
138
743

+ 16
0
+1
NA
-3 2

+16
+6
0
+2
+ 203

17
1
1
0
12

0
0
0
0
0

14
12
2
3
162

2
1
0
0
44

0
1
0
0
44

1
0
0
0
0

0
7
2
1
2

0
0
0
0
1

G eorgia ...................................
Hawaii .....................................
Idaho ........................................
Illinois .....................................
I n d ia n a .....................................

439
12
27
1,288
4 06

829
163
236
452
1 ,082

440
11
24
1 ,277
4 06

786
160
228
394
1,035

-1
+1
+3
+11
0

+ 43
+3
+8
+ 58
+ 47

0
1
3
15
1

0
0
0
1
0

48
3
8
59
47

2
0
0
5
1

1
0
0
4
1

0
0
0
1
0

4
0
0
5
0

3
0
0
1
1

I o w a ..........................................
Kansas .....................................
Kentucky .................................
L o u is ia n a .................................
M a in e ........................................

657
617
343
262
41

538
254
697
764
299

657
617
344
256
43

500
256
644
715
293

NA
0
-1
+6
-2

+38
-2
+ 53
+ 49
+6

0
1
1
7
0

0
0
0
0
0

49
22
53
50
5

0
1
2
4
2

0
0
2
1
2

0
1
0
0
0

9
1
1
5
0

2
24
1
0
1

M aryland .................................
M a s s a c h u s e t ts ........................
M ich igan .................................
M innesota ...............................
M is s is s ip p i...............................

102
149
372
762
183

905
936
2,001
227
666

106
152
365
761
185

855
924
1,793
176
635

-4
-3
+7
+1
-2

+ 50
+ 12
+ 208
+51
+31

1
1
8
2
1

0
0
0
0
0

49
22
210
50
32

5
4
2
1
4

5
4
1
0
3

0
0
0
1
0

2
8
2
0
4

2
6
2
0
1

M is s o u r i...................................
M o n t a n a ...................................
Nebraska .................................
Nevada .....................................
New H a m p s h ir e ......................

727
165
461
9
79

415
28
236
135
148

720
163
459
9
79

399
23
199
130
135

+7
+2
+2
0
0

+ 16
+5
+ 37
+5
+ 13

7
2
2
1
1

0
0
0
0
0

20
5
38
4
13

2
0
1
1
1

0
0
0
1
1

0
0
0
0
0

5
0
2
0
0

1
0
0
0
1

States




FEDERAL DEPOSIT INSURANCE CORPORATION

B ranches

Banks

B ranches

Banks

Dec. 31, 1978

Dec. 31, 1979

Ceasing operation in 1979

Beginning operation in 1979

Net change
during 1979

In operation
State

1 ,554
238
3 ,3 8 9
1 ,723
123

184
87
298
89
174

1,535
22
3,321
1,683
117

-8
NA
+4
-6
+1

+ 19
+11
+ 68
+ 40
+6

1
0
8
1
1

0
0
3
0
0

25
11
111
49
6

8
0
7
8
1

9
0
7
7
0

0
0
0
0
0

12
0
39
13
1

2
0
11
4
0

O h io ...............
O klahom a
O r e g o n ...........
P e n nsylva n ia .
Rhode Island .

408
496
80
378
17

2 ,10 6
248
551
2 ,4 7 9
231

482
485
63
378
17

1,941
217
525
2 ,427
226

-7 4
+11
+ 17
0
NA

+ 16 5
+31
+ 26
+ 52
+5

2
11
17
3
0

0
0
0
0
0

100
31
28
64
5

77
0
0
3
0

76
0
0
3
0

0
0
0
0
0

7
0
2
10
0

5
0
0
5
0

S outh C arolina
Sou th Dakota .
Tennessee . . .

85
155
352
1,427
76

687
158
992
234
273

87
156
350
1,401
68

662
149
953
203
253

-2
-1
+2
+ 26
+8

+ 25
+9
+ 39
+31
+ 20

0
1
3
28
9

0
0
0
0
0

25
6
49
33
19

3
3
0
1
1

2
2
0
2
1

0
0
1
0
0

3
0
9
3
0

0
0
1
0
0

30
234
110
235
636
94

159
1,372
884
59
500
3

30
263
103
231
633
88

147
1,302
785
56
444
3

NA
-2 9
+7
+4
+3
+6

+ 12
+ 70
+ 99
+3
+ 56
NA

0
7
7
4
3
6

0
0
0
0
0
0

12
53
100
4
66
0

0
36
0
0
0
0

0
36
0
0
0
0

0
0
0
0
0
0

0
14
0
1
10
0

0
5
1
0
0
0

4
0
20
6

25
2
2 29
24

3
0
21
6

24
2
232
24

+1
0
-1
NA

+1
NA
-3
0

1
0
1
0

0
0
0
0

1
0
2
2

0
0
2
0

0
0
1
0

0
0
1
0

0
0
7
2

0
0
0
0

V e r m o n t ....................
V irg in ia ......................
W a s h in g t o n .............
W est V i r g i n i a ...........
W is co n sin ...............
W y o m in g ..................

7,

Other areas
P a cific I s la n d s .........
Canal Zone .............
Puerto R ico .............
V irg in I s la n d s ...........

Branch total adjusted.
Canal Zone becam e a part of the R epu blic of Panam a on October 1, 1979.
N A = No activity

BRANCHES
143




AND

\ 1978

O BANKS
F

176
87
302
83
175

NUMBER

New Je rse y ..
New M e xico ..
N ew Y o rk
North Carolina
North Dakota .

1 44

NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1979

G R O U P E D A C C O R D IN G TO IN S U R A N C E S T A T U S AN D C L A S S OF B A N K , AN D B Y S TATE O R A R E A A N D T Y P E OF OFFICE
Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

Percentage insured1

Members F.R.
System

Insured

Non­
insured

All
banks
of
de­
posit

Com­
mercial
banks
of
deposit

Mutual
savings
banks

United States— all o ffic e s ...............................................

54,928

53,996

932

51,590

51,156

23,307

5,856

21,993

330

104

3,338

2,840

498

98.3

99.2

85.1

Banks ............................................................................
..................................................................
.........................................
Branches3........................................................................
50 States & D.C.— all offices .........................................
Banks ............................................................................
..................................................................
.........................................
Branches3 ......................................................................

15,201

14,688

513

14,738

14,364

4,448

282

92

31
293

139

96.6

4,879

13,054

48

12

2,875

2,516

359

98.9

95.7
$■§
99.8

70.0

18,859

95.4
98.0

97.5

36792

84
8

463

36,852

5,144
3,795

264

419

490
487

8,939

39,308

2,166
2,282

977

39,727

375
138

54,618

53,712

15,171

14,675

39,447

7,827
6,848

39,037

360
136

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

310

284

Banks ............................................................................
..................................................................
.........................................
Branches3 ......................................................................

30

13

280

271

STATE
Alabama— all o ffice s........................................................

Total

Non­
Insured insured

Total

Total

Na­
tional

Unit Banks
Banks operating branches

Unit Banks
Banks operating branches

8,187
6,984
19
11

7,831
6,857

4
9

8,148
6,590

7,800

Non­
deposit
trust
com-_
pames

Total

58
405

27
112

53.4
72.3

87.5

906

51,280

50,872

23,246

5,856

21,770

306

102

3,338

2,840

498

98.3

99.2

85.1

496

14,708

14,351

4,448

977

324

139

96.7

12,844

2,516

359

95.6
98.1

97.6

95.9
99.6

53.4
72.3

4,879

82
8

463

18,798

251
16

90

36,521

5,140
3,786

267

36,572

490
487

8,926

410

2,166
2,282

26

310

284

61

0

223

24

2

0

0

0

91.6

91.6

0.0

17

30

13

0

0

13

15

2
2

0

0

0

43.3

43.3

0.0
0.0

9

280

15
2

8,129
6,579
19
11

7,796
6,555
4
9

4
9

271

0
0

61

0
0

0

210

.

39

13
2

9

12

0

0

58
405

2,875

0
0

0

31
293

0
0

0

27
112
0
0

0

99.0

99.9

21.1
81.8

21.1
81.8

96.8

96.8

70.0

87.5
0.0

0.0

895

895

0

895

895

456

50

389

0

0

0

0

0

100.0

100.0

0.0

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

317

147
170

317

0

317

317

99

24

194

0
0

0

0
0

100.0

100,0
100.0

100.0

100.0
100.0

0.0
0.0

578

0

195

0
0

0

26

0
0

0

357

0
0

0

578

101
93

0

578

32
67

578

0
0

Alaska— all offices............................................................

126

126

0

121

121

88

0

33

0

0

5

5

0

100.0

100.0

100.0

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

14
2

14
2

0

12

6

0
0

0

2

2

0

100.0

100.0

100.0

112

0

109

109

82

0
0

6

12

0
6

0

112

0
0

12

0

27

0

3

3

Arizona— all o ffic e s ..........................................................

532

527

5

532

527

338

0

189

0

5

27

22

5
5

27

16
11

22

3

0

19

0

5

0

505

505

Unit Banks
Banks operating branches

Unit Banks
Banks operating branches

Banks

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

Unit Banks
Banks operating branches




12

16
11

505

147
170

11
11

505

0

147
170
1
11

147
170
1
11

11
11

1
2

335

14
10

0
0

0

1
5

10
9

170

0

0

0

0
0

0

0

0
0
5
0

0

0

1
1

0

0

100.0

0
0

0

0

0

99.1

99.1

0.0

0

0

0

81.5

81.5

0.0
0.0

0
0

0

0
0

0

0
0

0

100.0

68.8
100.0

100.0

100.0
100.0

0.0

1
1

0

100.0
100.0

100.0

0.0

100.0

68.8
100.0

100.0

100.0
100.0
100.0
0.0

0.0

C O R PO R A TIO N

Unit Banks
Banks operating branches

8,206
6,995

Banks
of de­
p o s it

INSURANCE

State

Nonmem­
bers
F.R.
S ys­
tem

State and type of bank
or office

DEPOSIT

Noninsured

Insured

FEDERAL

Ta b le 103.

Arkansas— all offices...............

654

651

3

Banks ...................................
.........................

Unit Banks
Banks operating branches.

261

258

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

393

102
156

393

3
0

0

393

393

185

California— all o ffic e s............

4,347

4,323

24

4,347

4,323

2,764

Banks ...................................
.........................

257

242

77
165

15

257

242

42

9

Unit Banks

105
156
86
171

3

9
6

654
261

105
156
86
171

651
258

102
156
77
165

253
68

15
53
13
29

25
6

1
5

373
184

1
1

2
2

189

1
0

2

19

86
98

377

1,182

0

7

193

0

0
7

0

64
129

0
0

0
0

0
0

0
0

99.5
98.9

99.5
98.9

0.0
0.0

0

0
0

0
0

0
0

97.1
100.0

97.1
100.0

0.0
0.0

24

0

0

0

99.4

99.4

0.0

15

0

0

0

94.2

94.2

89.5
96.5

0.0
0.0

0

9
6

0

0
0

0

0
0

0

0
0

100.0

89.5
96.5

100.0

0.0
0.0

4,090

4,081

4,090

4,081

2,722

370

989

Colorado— all offices..............

507

404

103

507

404

197

33

174

103

0

0

Banks ...................................
.........................

0

0

79.7

79.7

410

307

103

410

307

27

141

0.0

139

103

0

0

0

0

74.9

74.9

0.0

97

58

33

0

Unit Banks
Banks operating branches.

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

333
77
97

230
77
97

103
0

0

333
77

97

230
77

93
46

23
4

6

114
27

0

9

0

0

0

99.8

99.8

0.0

103
0

0
0

0
0

0
0

0
0

69.1
100.0

69.1
100.0

0.0
0.0

0

0

0

0

100.0

100.0

0.0

1,052

1,052

0

658

658

221

87

350

0

0

394

394

Banks ...................................
.........................

0

100.0

100.0

100.0

130

130

0

65

65

19

2

44

0

0

65

65

0

100.0

100.0

100.0

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

922

922

Delaware— all o ffic e s ............

193

Banks ...................................
.........................

22

Unit Banks
Banks operating branches.

9
13

15
115

0
0

11
54

11
54

3
16

0

593

593

202

191

2

167

165

20

2
2

20

18
7

7
13

0

9
11

11

0
2

8
36

85

306

11

0

154

6
2

0

12

4

0
0

5
7

0
0

0

329

329

4
61

0
0

100.0
100.0

100.0
100.0

100.0
100.0

0

2

26

26

0

99.0

98.8

100.0

0
0

0

2
2

0
2

2

0
2

2

0
0

0

77.8
100.0

90.9

77.8
100.0

90.0

0.0
100.0

0

0
0
0

4
61

0

100.0

100.0

100.0

100.0

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

171

171

0

147

147

0

142

0

100.0

Dist. of Col.— all o ffic e s ........

157

157

0

157

157

154

0

3

0

0

0

0

0

0

16

0

1

0

0.0

17

17

100.0

17

17

100.0

Banks ...................................
.........................

0

0

0

0

100.0

100.0

0.0
0.0

Unit Banks
Banks operating branches.

4
13

4
13

0
0

4
13

4
13

5

4
12

0
0

0

0

0
1

0
0

0
0

24

0
0

24

0
0

0
0

100.0
100.0

100.0

100.0
100.0

100.0

0.0

140

140

0

140

140

1,531

1,523

8

1,531

1,523

641

70

812

1

7

0

0

0

99.5

99.5

0.0

Banks ...................................
.........................

585

577

8

585

577

221

28

1

7

0

0

0

98.6

98.6

0.0
0.0

420

42

484

100.0

100.0

428

86

754

0

0

0

0

0

439

63

100.0

100.0

0.0

9
2

367

0

0

0

0

0

100.0

100.0

0.0
0.0

0

1,268

439

0

439

Unit Banks
Banks operating branches.

185
254

185
254

0
0

185
254

185
254
829

365

Hawaii— all offices .................

175

169

6

175

169

14

3

12
2

9

3

3

163

Unit Banks
Banks operating branches.

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

10

163

9

1
8

160

1
2

10

1
8

160

1
2

11

77

173
194

387

0
0

0

155

0

0

6

0

7

0
0

0

0
6

149

0

0
0

0

0

0
0

0

0

0

0.0

0.0
0.0

0
0

0
0

0
0

0

100.0

100.0

6

0

0

0

96.6

96.6

0.0

3

0

0
0

0

0
0

0

50.0
80.0

75.0

50.0
80.0

75.0

0.0
0.0

0

1
2
3

0

0
0

0

0

0

0

100.0
100.0

98.2

100.0
100.0

98.2

0.0
0.0
0.0

145




12
2

10
53

0

96.6
100.0

BRANCHES

946

1,268

1,268

Banks ...................................
.........................

0.0

96.6
100.0

439

829

100.0

0
0

1,268

0

100.0

0
0

Banks ...................................
.........................

829

0

0
0

Georgia— all offices.................

829

0

7
0

227
350

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

0

1
0

235
350
946

0

132
196

8
0

0

0

15
13

227
350

946

2

80
141

235
350

946

0

328

Unit Banks
Banks operating branches.

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

138

AND

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

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

O BANKS
F

Unit Banks
Banks operating branches.

15
115

NUMBER

Connecticut— all offices ........

146
FEDERAL

Ta b le 103.

N U M B E R O F B A N K I N G O F F I C E S IN T H E U N I T E D S T A T E S , ( S T A T E S A N D O T H E R A R E A S ) ,
D E C E M B E R 31, 1 9 7 9 - C O N T I N U E D

G R O U P E D A C C O R D IN G TO IN S U R A N C E S T A T U S AN D C L A S S OF B A N K , A N D B Y S T A T E O R A R E A AN D T Y P E OF OFFICE

State and type of bank
or office

Total

NonInsured Insured

Total

Total

Noninsured

Members F.R.
System

State

Banks
of de-_
p o s ir

Non­
deposit
trust
com­
panies

Total

Insured

Non­
insured

All
banks
of
de­
posit

Com ­
mercial
banks
of
deposit

Mutual
savings
banks

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

263

263

0

263

263

191

10

62

0

0

0

0

0

100.0

100.0

O.b

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

Idaho— all offices

27

7
20

27

7
20

0
0

0

27

27

7

1
6

16

0
0

0

0
0

0

0
0

0

0
0

0

0
0

0

100.0
100.0

100.0

100.0
100.0

100.0

0.0
0.0

0.0

236

236

0

236

236

184

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

1,740

1,702

38

1,740

1,702

621

89

992

32

6

0

0

0

97.8

97.8

0.0

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

1,288

924
364

1,250

38

1,288

1,250

410

43
19

596
182

32
0

6
0

0
0

0

0
0

0

0
0

97.0

95.9
100.0

97.0

95.9
100.0

0.0

0.0
0.0

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

452

247
163

0

452

886
364

6

0

924
364

32

452

38
0

778

452

886
364

62

Indiana— all o ffic e s ..........................................................

1,495

1,493

2

1,488

1,486

647

73

766

1

1

7

7

0

99.9

99.9

100.0

410

123
285

408

2
2

406

404

119

1
0

4

2
2

2
2

4

0
0

0

99.5

99.5

100.0

98.4
100.0

100.0

0

98.4
100.0

521

1
0

1

33

77
168

1

528

19
21

245

1,082

25
94

40

1,082

121
283

0

123
283

100.0

100.0

Banks

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

Branches

Illinois

all offices

Banks

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

Branches
Banks

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

Unit Banks
.....................................................
Banks operating branches .....................................
all offices

Banks

Branches

0

0

0

0

0

0

0

3

0

0

3

0

0

100.0

100.0

100.0

100.0

0.0

0.0

100.0
100.0

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

1,195

1,189

6

1,195

1,189

238

83

868

5

1

0

0

0

99.5

99.5

0.0

657

651

6

657

651

99

40

512

5

1

0

0

0

99.1

99.1

0.0
0.0

377
274

48
51

23
17

306
206

5
0

1
0

0
0

0
0

0
0

98.4
100.0

98.4
100.0

0.0

383
274

377
274

6
0

383
274

0

538

538

139

0

100.0

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

871

870

1

871

870

274

24

572

1

0

0

0

0

99.9

99.9

0.0

477
140

616

1
0

617

477
140

616

476
140

148

364
85

1

1
0

0

0
0

0

0

0

99.8

99.8

99.8
100.0

0.0
0.0

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

126

15
4

449

254

97
51

19

254

476
140

1

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

1,040

1,039

1

1,040

1,039

345

99

595

1

0

0

0

0

99.9

99.9

0.0

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

124
219

343

123
219

342

1
0

1

124
219

343

123
219

342

17
62

0

0

0

0

99.7

99.7

0.0

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

Branches

all offices

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

Branches

214

0

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

Banks

Banks

27

46

1,085

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

all offices

Kentucky

211

4
12

1,085

Unit Banks
Banks operating branches

Kansas

0

7
20

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

Branches

Iowa

125
285

7
20

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




538

617

697

538

254

697

0

0

254

697

697

79

266

43

5

356

123

9

254

90

341

3
6

103
151

0

0

1

1
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

99.8
100.0

100.0

99.2
100.0

100.0

100.0

100.0

99.2
100.0
100.0

0.0
0.0
0.0

0.0
0.0

0.0

C O RPO R ATIO N

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

4
2
2
6

INSURANCE

Na­
tional

Nonmem­
bers
F.R.
S ys­
tem

DEPOSIT

Insured

Percentage insured1

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

0.0

Louisiana— all o ffic e s ............

1,026

1,026

0

1,026

1,026

356

49

621

0

0

0

0

0

100.0

100.0

Banks ...................................
.........................

Unit Banks
Banks operating branches.

262

262

55

6

201

0

100.0
100.0

100.0
100.0

0.0
0.0

420

0
0

100.0

43

0
0

0

301

0
0

0

764

0
0

0

764

0
0

0

0

72
190

262

764

0
0

262

764

72
190

0

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

72
190

Maine— all o ffice s...................

461

461

0

340

340

123

41

176

0

0

121

121

0

100.0

100.0

Banks ...................................
.........................

70

70

0

41

41

14

3

24

0

0

29

29

0

100.0

100.0

100.0
100.0

Unit Banks
Banks operating branches.

8
62

8
62

0
0

58
143

0

0

0

0

0

100.0

100.0

100.0

109

38

152

3
21

0
0

0
0

4
25

4
25

0
0
0

100.0

100.0

1,072

0

1,007

1,007

394

106

507

0

0

65

65

0

100.0

100.0

105

105

0

102

31

62

62

100.0
100.0

100.0

0

0
0

100.0

441

0
3

0

101

0
3

3

363

0
0

3

905

0
0

0

905

15
51

0

0

0
5

66

967

4
27

5

967

0
0

102

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

19
86

100.0

100.0

Massachusetts— all offices . . .

1,722

1,217

505

1,085

1,078

492

76

510

6

1

637

139

498

70.7

99.4

Banks ...................................
.........................

312

167

145

149

143

71

7

65

5

1

163

29
134

139
27

53.5

96.0

Maryland— all offices ............

1,072

Banks ...................................
.........................

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

Branches .............................
M ich ig a n — a ll offices ............
Banks ...................................
........................

19
83

19
83

0

0

0

92

92

0

100.0
100.0

100.0
100.0
100.0
100.0

1,410

1,050

360

936

935

421

69

445

0

474

24
2
22
115

2,373

2,370

3

2,373

2,370

1,101

586

683

3

1

0

0

99.9

99.9

371

0

0

372

372

371

123

79

169

1

0

0

0

0

99.7

99.7

52
260

70
302

19
148

33
112

70
301

0
1

23
126

70
302

17
126

70
301

8
63

13
110

0
7

9
56

5
0

1

1
0

15
64

42
127

0
1

0
0

0
0

0
0

112

359

0
0

36.5
56.9

73.9
100.0

74.5

100.0
99.7

99.9

100.0
99.7

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

2,001

1,999

1,999

978

507

Minnesota— all offices ..........

991

988

3

989

986

315

40

631

1

2

2

2

0

99.7

99.7

Banks ...................................
........................

763

760

3

762

759

32

522

1

1

1

0

99.6

99.6

227

110

Unit Banks
Banks operating branches.

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

Mississippi— all offices..........

Unit Banks
Banks operating branches.

2,001

514

2

0

584
176

3
0

587
175

584
175

132
73

25
7

427
95

1
0

2
2

849

848

1

849

848

304

20

524

183

182

1

183

182

38

5

139

0
0
0

228

36
147

228

35
147

0

227

1
0

35
147
666

3
35
266

8

109

0

0

0

0

0
1

0
1

0
0

0

1

0

0

1
0
0

1

0
0
0

0

0
0
0

0

0

1

99.9

99.9

0

99.5
100.0

100.0

99.5
100.0

0

0

99.9

99.9

0

0
0
0

0

97.2
100.0
100.0

99.5

97.2
100.0
100.0

1

100.0

99.5

100.0
100.0
100.0

0.0
100.0

100.0
21.8
14.7

6.9
16.4
24.3

0.0

0.0

0.0

0.0
0.0
100.0
100.0
0.0
100.0

100.0

0.0

0.0

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

666

666

0

36
147
666

Missouri— all o ffice s...............

1,142

1,136

6

1,142

1,136

170

83

883

0

6

0

0

0

99.5

99.5

Banks ...................................
.........................

727

721

6

727

721

49
49

98

47
22

576

0

0
0

6

6
0

0

0
0

0

0
0

0

0
0

99.2

25

327
249

98.5
100.0

98.5
100.0

0.0
0.0

1
4
15

31
108
385

99.2

0.0
0.0
0.0

0.0

0.0

Unit Banks
Banks operating branches.

404
323

398
323

6
0

404
323

398
323

0

100.0

100.0

0.0

Montana— all o ffice s...............

193

190

3

193

190

68

51

71

0

3

0

0

0

98.4

98.4

0.0

Banks ...................................
........................

165

162

3

165

162

56

45

61

0

3

0

0

0

98.2

98.2

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

Unit Banks
Banks operating branches.

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

138
27

28

415

135
27
28

0

3
0

0

415

138
27

28

415

135
27

28

72

45
11

12

36

39
6

6

307

51
10

10

0

0
0

0

0

3
0

0

0

0
0

0

0

0
0

0

0
0

0

97.8
100.0

100.0

97.8
100.0
100.0

0.0

0.0
0.0

0.0

147




415

BRANCHES

587
176

205

100.0
100.0

AND

Banks ...................................
.........................

2

0.0

O BANKS
F

Unit Banks
Banks operating branches.

19
86

0
3

0.0

NUMBER

299

391

1
13

1
5

299

391

4
37

13
42

0

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

4
37

72
190

1 48

Commercial banks and nondeposit trust companies

All banks

NonInsured Insured

Total

State

Banks
of de­
p o s it

Non­
deposit
trust
com-g
pames

Insured

Total

Non­
insured

All
banks
of
de­
posit

Com ­
mercial
banks
of
deposit

Mutual
savings
banks

697

690

7

697

690

290

10

390

0

7

0

0

0

99.0

99.0

0.0

461

454

7

380
81

461

373
81

454

117

79
38

8

7
1

287
42

329

0
0

0

7
0

7

0
0

0

0
0

0

0
0

0

98.2
100.0

98.5

98.2
100.0

98.5

0.0
0.0

380
81

373
81

7
0

236

173

0

100.0

Nevada— all o ffic e s ..........................................................

144

144

0

144

144

107

24

13

0

0

0

0

0

100.0

100.0

0.0

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

9

9

0

9

9

4

1

0
1

0

0
0

0

0
0

0

0
0

0

0
0

0

0
0

100.0

100.0

100.0
100.0

0.0
0.0

New Hampshire— all o ffic e s ...........................................
Banks ............................................................................
.................................................................
.........................................
Branches ........................................................................

201

201

0

New Jersey— all offices...................................................

1,932

1,932

0

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

196

196

1,736

29
167

0

1,736

0
0

New Mexico— all o ffic e s .................................................

325

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

87

New York— all offices .....................................................
Banks ............................................................................
.................................................................
.........................................
Branches^ ......................................................................

143
271

Unit Banks
Banks operating branches

Unit Banl
Banks operating branches

Unit Banks
Banks operating branches
Unit Banks
Banks operating branches
Unit Banks
Banks operating branches

Unit Banks
Banks operating branches




236

236

0

236

2

61

0

0

0

0

100.0

0.0

0.0

135

3
6

135

0
0

0

135

135

103

23

4
2
2
9

0

100.0

100.0

0.0

306

305

1

227

226

130

7

89

0

1

79

79

0

99.7

99.6

100.0

105

104

1
0

1

24
55

79

78

36

0

0
0

1

1
0

26

8
18

26

0

53

96.9
100.0

98.7

53

0
0

99.0

94

4
2
2
3

38

148

7
29

14
24

148

23
55

95.8
100.0

100.0
100.0

1,730

1,730

1,077

237

416

0

0

202

202

0

100.0

100.0

100.0

176

176

93

15

68

20

100.0

348

0

182

182

100.0
100.0

100.0

222

0
0

100.0

984

3
17

0

1,554

0
0

20

1,554

0
0

0

0

15
53

0

100.0

100.0

324

1

325

324

163

20

141

0

1

0

0

0

99.7

99.7

0.0

86

1

87

86

40

6
2

40

0

1

0

0

0

98.9

98.9

0.0
0.0

3
6

32
73

29
167

31
73

3
6

26
150
21
66

3
6

26
150
20
66

1
3

11
82

10
30

0
15

51

8
32

238

20
66

238

1
0
0

238

238

123

14

101

4,958

4,864

94

3,691

3,597

1,661

1,596

340

83

302

219

116

46

57

11

3,389

3,378

1,545

21
66

414

4,544

331

70
261

4,533

73
10

140
162

67
152

32
84

4

12
34

1,550

23
34

283

0

0

0

0
0

0

0

0

3
17

0

8
18

0

0

100.0

100.0
100.0
95.2
100.0

100.0

100.0

100.0
100.0
100.0
0.0

0
0

0
0

88

6

1,267

1,267

0

98.1

97.5

100.0

77

6

112

112

0

80.0

72.5

100.0

67
10
11

0

6
0

0

0

3
109

1,155

0

3
109

1,155

0

0
0

0

95.2
100.0

100.0

0.0

1
0

0

0
0

100.0
100.0

100.0

49.0
96.3
99.8

100.0

47.9
93.8
99.7

0.0

100.0
100.0

100.0

CO R PO R A TIO N

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

INSURANCE

Na­
tional

Nebraska— all offices .................................................

Non­
mem­
bers
F.R.
S ys­
tem

Members F.R.
System

Total

DEPOSIT

Total

Percentage insured1

Noninsured

Insured
State and type of bank
or office

Mutual savings banks

FEDERAL

T a b le 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1979-CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS O BANK, AND BY STATE OR AREA AND TYPE O OFFICE
F
F

1,806
Banks ...................................

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

Branches ...............................
North Dakota— all o ffic e s ___
Banks ...................................

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

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

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

1,795

11

83

82

0
1

15
68

15
67

1

0

0

0

99.4

99.4

0.0

0
1

1

0
0

0

0
0

0

0
0

0

0
0

0

100.0
98.5

98.8

100.0
98.5

98.8

0.0
0.0

11
43

1,713

836

5

872

10

295

85

6

204

1

2

0

0

0

99.0

99.0

0.0

175

98

172

298

1
2

128

78
50

1

1
0

2
2

0

0

0
0

0

0
0

98.3

96.9
100.0

98.3

0

0
0

96.9
100.0

0.0
0.0

123

16
25

3

123

95
77

41

0

98
77

172

123

3
0

175

77
123

95
77

2,514

2,513

1

559

0

0

0

0

100.0

100.0

0.0

1

1,519

1

407

2,513

435

408

2,514
408

407

177

93

137

1

0

0

0

0

99.8

99.8

0.0

2,106

1,342

466

298

744

737

376

19

342

5

2

0

0

0

99.1

99.1

0.0

496

489

190

282

5

0

0
0

98.6

98.1
100.0

98.6

100.0

98.1
100.0

0.0

0

0
0

0

2

0
0

0

186

5
0

2
2

100.0

0.0
0.0

7

1

19

19

0

98.8

98.7

100.0

2

2

0

93.9

93.8

100.0

118
290

117
290

3

1
0
0

248

366
130

359
130
248

0

0

650

642

8

82

77

5

35
42

568

565

3,067
387

4
1

30
63

366
130

359
130

116
74

17

631

623

345

6

80

35
40

75

1
5

6

4
1

248

39
41

248

15
2

52
85

228
54

60

0

1
0
0

0

0

0
0

0

0

0

0
0

0

0

0

0
0

0

0

1

111
64
30
34

208

3
1

1
0
0

17

17

5

4

1

0
2

0
0

0

0

100.0

99.2
100.0

100.0

0
0

89.7
97.7

210

0

9

0

0
2

91.2
99.6

100.0

99.9

100.0

96.0

94.8

100.0

87.0

66.7
85.7

82.4

0.0
100.0

1,661

195

988

11

2

210

367

223

12

132

9

2,678

2

2,479

2,477

1,438

183

856

8
1

2
2

2,680

28
104

9

0

201

201

323

310

13

248

235

122

0

113

12

1

75

75

0

23

20
2

3

17

14
2

0
5

5

0
0

0

9
2

0
2

2

1
0

1

0
6

6

0
6

6

0
0

0

66.7
90.0

3
20

18

1
2

3
14

104
263
12

73
150

3
9

7

2

0

0
9

0
9

0
0

0

0.0

100.0

2,844

378

114
264

0.0

99.5

2,857

11

10
1

0.0
0.0

97.1

13

376

104
272

100.0

0.0

97.2

3,054

114
273

99.2
100.0

0.0

99.6

339

0

100.0

0.0

0.0
100.0

548

3

99.4

89.7
97.6

551

99.5

91.2
99.6

99.9

96.7

99.5

100.0

0.0
100.0
100.0

300

290

10

231

221

117

0

104

10

69

69

772

772

0

772

772

365

18

389

0

0

0

0

0

100.0

100.0

0.0

85

85

0

85

85

18

1
17

60

0

0

0

0

0

100.0

100.0

329

0

Branches ...............................
South Dakota— all o ffic e s ___
Banks ...................................

687

687

0

687

687

347

0

0

313

312

1

313

312

131

43

138

0

1

0

0

155

154

1

155

154

33

27

94

0

1

0

0

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

158

158

98

16

20
65

104
51

20
65

0
0

103
51

1
0
0

20
65

104
51
158

20
65

103
51

158

20
13

18
9

17
43

65
29
44

0
0
0
0

0

0
0

0
0

0
0

1
0
0

0

0
0

0

0

0
0

0

0

0
0
0
0
0
0
0
0

95.7

100.0

0.0

100.0
100.0

100.0
100.0

0.0
0.0

99.7

99.7

0.0

99.4

99.4

0.0

100.0

99.0
100.0

100.0

100.0

99.0
100.0
100.0

0.0

0.0
0.0

0.0

149




0

99.4

3

7
2
5
11

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

0

O BANKS
F

39
43

35
142

76

0

BRANCHES

Branches ...............................
Oregon— all o ffic e s .................
Banks ...................................

117
290

3

0

AND

7
7

118
290

2,106

44

0

NUMBER

7

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

0.0

1,723

489

Branches ...............................
South Carolina— all offices . . .
Banks ...................................

0

54

1
1

3

737

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

11

2

10

744

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

926

3
23

295

496

Branches3 .............................
Rhode Island— all o ffic e s ___
Banks ...................................

7

26

15
67

1,713

2,106

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

862

82

15
68

298

2,106

Branches3 .............................
Pennsylvania— all o ffic e s ___
Banks ...................................

1,795

83

1,723

Branches ...............................
Oklahoma— all office s ............
Banks ...................................

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

1,806

1 50
FEDERAL

NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1979-CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS O BANK, AND BY STATE OR AREA AND TYPE O OFFICE
F
F

T a b le 103.

Commercial banks and nondeposit trust companies

All banks

Total

Insured

Non­
insured

Total

Total

Percentage insured1

Members F.R.
System

State

Banks
of de­
p o s it

Non­
deposit
trust
companies

Total

Insured

Non­
insured

All
banks
of
de­
posit

Com ­
mercial
banks
of
deposit

Mutual
savings
banks

1,344

1,342

2

1,344

1,342

480

60

802

1

1

0

0

0

99.9

99.9

0.0

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

352

86
266

350

84
266

2
2

352

350

69

10

271

77
194

1
0

1

1

1
0

0
0

0

0
0

0

0
0

0

97.7
100.0

99.4

97.7
100.0

99.4

0.0
0.0

Texas— all offices ............................................................

1,661

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

1,427

0.0

0

84
266

0

100.0

1,656

5

1,661

1,656

669

58

929

5

0

0

0

0

99.7

99.7

0.0

1,223
204

1,422

1,218
204

5

5
0

1,427

1,223
204

1,422

1,218
204

615

568
47

41

27
14

766

623
143

5

5
0

0

0
0

0

0
0

0

0
0

0

0
0

99.6

99.6

0

100.0

99.6
100.0

100.0

0.0
0.0

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

349

347

2

349

347

132

114

101

0

2

0

0

0

99.4

99.4

0.0

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

76

74

2
2

76

74

11

16

0

97.4

97.4

0.0

0

0
0

0

98

0
0

0

121

0
0

2
2

273

30
17

0

273

9
7

47

Vermont— all o ffic e s .......................................................

222

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

36

186

186

8
27

1
0
0

Virginia— all offices.........................................................

1,606

1,605

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

234

61
173

233

1,372

60
173

1,372

1
0

Washington— all offices .................................................

1,187

1,177

Banks ............................................................................
.................................................................
.........................................
Branchess ......................................................................

120

110

10

1,067

1,067

0

Unit Banks
Banks operating branches
Unit Banks
Banks operating branches

Unit Banks
Banks operating branches
Unit Banks
Banks operating branches

Unit Banks
Banks operating branches




992

234

48
28

9
27

42
78

992

234

46
28

0

0

0

992

234

48
28

992

234

46
28

6
63

1
9

86
266

Unit Banks
Banks operating branches

411

54

7
4

50

17

531

163

0

0

0

0

0

0

0

0
0

0

273

273

221

1

189

188

56

1

131

0

1

33

33

0

35

1

30

29

12

0

1

6

6

0

159

44

1
0

16
2

159

4
8

1

0

115

1

1,606

1,605

697

607

1

234

233

72

78

0

1,372

1,372

625

29
49

10

994

984

636

110

100

21
2

884

884

615

32
78

10
0

8
22

61
173
42
68

7
22

60
173
32
68

10
62

19

54

0

0

0

0

95.8
100.0

0.0
0.0

95.8
100.0

0.0
0.0

99.5

99.5

100.0

97.2

96.7

100.0

100.0

100.0

0.0

1
0

301

0

1

0

0

0

99.9

99.9

0.0

83

0

1
0

0

0
0

0

0
0

99.6

98.4
100.0

99.6

100.0

98.4
100.0

100.0

0.0
0.0

0

0
0
0

0

218

0
0

1

529

21
62

8

340

9

1

193

193

0

99.2

99.0

100.0

4

75

9

1

10

10

0

91.7

90.9

100.0

3
1
4

27
48

265

0

0

9
0

0

0

1
0
0

27

0
10

183

1
5

0

0.0

0
0

14

1
5

0

99.6
100.0

100.0

27

0

0
10

183

0
0

0

0

0
0

0

88.9
100.0

100.0

76.2
100.0

100.0

87.5
100.0

100.0

76.2
100.0

100.0

100.0
100.0

100.0

0.0
0.0

0.0
100.0

100.0

CO R PO R A TIO N

Tennessee— all offices ...................................................

INSURANCE

Na­
tional

Non­
mem­
bers
F.R.
Sys­
tem

DEPOSIT

State and type of bank
or office

Mutual savings banks

Noninsured

Insured

West Virginia— all o ffic e s ............
Banks .........................................

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

Branches .....................................
Wisconsin— all offices...................
Banks .........................................

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

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

Banks ___

Branchess ...........................




0
0

0

100.0

100.0

0

0

0

0

100.0
100.0

0.0
0.0

0

100.0
100.0

6

788

0

5

3

3

0

99.6

99.6

100.0

473

0

5

3

3

0

99.2

99.2

98.7
100.0

100.0

18
9

100.0

100.0
°0
0.0

24

292
181
315

0
0

0

5
0

0

3
0

0

3
0

0

100.0

0
0

98.8
100.0

0

100.0

100.0

0.0
0.0

19

30

0

0

0

0

0

100.0

100.0

0.0

19
0

19

26
2

28

0
0

0

0
0

0

0
0

0

0
0

0

0
0

0

100.0
100.0

100.0

100.0
100.0

100.0

0.0
0.0

0

16

3

0

0

0

0

89.7

89.7

0.0

0

0
1

1

3
0

3

0
0

0

0
0

0

0
0

0

0
0

0

25.0

0.0
100.0

25.0

0.0
100.0

0.0
0.0

0

0

0

0

0

0

0

100.0

100.0

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

15

0

0

0

0

0

0

0

0

0

0

100.0

100.0

100.0

100.0

0.0

0.0

0.0
0.0
0.0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0

100.0

100.0

0

207

15

2

0

0

0

93.2

93.2

0.0

0

12

4
8

4
2

6

2
2

0
0

0

0
0

0

0
0

0

40.0
80.0

60.0

40.0
80.0

60.0

0.0
0.0

0

0

6

0

0

0

0

80.0

80.0

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

195

0
0

0

0

9

6
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

96.1

0.0
0.0

100.0

96.1

0.0
0.0

100.0

0.0

0.0
0.0
0.0

0.0

BR AN CHES

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

0.0

0

AND

Branches 7 ...................................
Virgin Islands — all office s..............

100.0

0
0

'

O BANKS
F

Branches6 ...................................
Puerto Rico— all offices ...............
Banks .........................................

100.0

0

99

NUMBER

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

0

0
0

27

0

Branchess ...................................
Canal Zone— all office s................
Banks .........................................

0

0

49

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

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

0

0
0

75
24

22

OTHER AREAS
Pacific Is.— all offices4 ................
Banks .......................................

0

0

123

29

Branches .....................................
Wyoming— all offices ...................
Banks .........................................

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

0

0
0

35

23
6

1 52

NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),
DECEMBER 31, 1 9 7 9 -C 0 N T IN U E D

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

' Nondeposit trust companies are excluded in com puting these percentages.
29 noninsured branches ofjn su red banks are included with parent banks— 7 in the Pacific Islands and 2
in the Canal Zone.
3 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 nonmem ber 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.
W ashington— 3 branches operated by a national bank in California.
4 United States possessions— American Samoa, Guam, Midway Islands and Northern Mariana Islands.
Trust Territo ries— Caroline Islands and Marshall Islands.
5 Pacific Islands— 23 branches— Deposits are insured only where indicated.
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.
Northen 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.
6 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.
7Puerto Rico— 25 insured branches operated by 2 national banks in New York, and a national bank in California.
8 Virgin Islands— 24 insured branches operated by 2 national banks in New York, a national bank in California, and a national bank in
Pennsylvania.
’ includes noninsured nondeposit trust companies— members of Federal Reserve System.

FEDERAL DEPOSIT INSURANCE CORPORATION

Table 103.

T a b le 104. NUMBER AND ASSETS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS

IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979
BANKS GROUPED BY CLASS AND ASSET SIZE
(In thousands of dollars)
Insured co m m e rcia l banks
A s se t S ize

All
banks

M em bers F.R . S ystem
Total
National

State

N o n m em b ers
F. R. S ystem

N on ­
insured
banks
and tru st
com p an ies

N on­
insured

Insured

_

L e s s than $ 5 .0 m illio n . . .
$ 5 .0 to 9 .9 m illio n .............
$ 1 0 .0 to 2 4 .9 m illio n . . . .
$ 2 5 .0 to 4 9 .9 m illio n ___
$ 5 0 .0 to 9 9 .9 m illio n ___
$ 1 0 0 .0 to 2 9 9 .9 m illio n ..
$ 3 0 0 .0 to 4 9 9 .9 m illio n ..
$ 5 0 0 .0 to 9 9 9 .9 m illio n ..
$ 1 .0 to 4 .9 b i l l i o n .............
$ 5 .0 b illion or m ore .........

1 ,15 6
2 ,1 4 9
4 ,7 6 0
3 ,4 1 8
1 ,87 4
1 ,20 9
218
194
193
30

830
2,12 8
4 ,7 2 8
3,371
1,764
1,051
171
149
144
28

91
327
1,249
1,201
760
534
85
85
98
18

50
119
293
227
115
99
17
23
24
10

689
1,682
3 ,1 8 6
1,943
889
418
69
41
22
-

274
19
17
7
8
22
7
9
11
-

2
10
23
81
98
35
35
38
2

Total b a n k s ................

15,201

14,364

4,448

977

8,939

374

324

139

52
5
17
21
38
5
1
-

Amount of assets
L ess than $ 5 .0 m illio n . . .
$ 5 .0 to 9.9 m illio n ...........
$ 1 0 .0 to 2 4 .9 m illio n ___
$ 2 5 .0 to 4 9 .9 m illio n . . . .
$ 5 0 .0 to 9 9 .9 m illio n ___
$ 1 0 0 .0 to 2 9 9 .9 m illio n ..
$ 3 0 0 .0 to 4 9 9 .9 m illio n . . .
$ 5 0 0 .0 to 9 9 9 .9 m illio n ..
$ 1 .0 to 4 .9 b i l l i o n .............
$ 5 .0 b illion or m ore

3 ,2 6 3 ,5 4 3
1 6 ,2 7 9 ,4 6 6
7 9 ,5 5 1 ,0 2 8
1 2 1 ,0 9 5 ,4 5 4
13 0 ,2 9 3 ,1 1 1
1 9 5 ,3 3 5 ,3 8 2
8 5 ,6 0 1 ,0 5 8
1 3 2 ,2 7 0 ,3 1 8
3 8 6 ,3 0 7 ,2 1 9
4 4 0 ,8 9 5 ,7 7 4

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

1,590,892,353

3 ,01 2 ,79 2
1 6 ,1 3 0 ,7 2 9
7 9 ,0 2 8 ,6 0 7
1 1 9 ,2 4 7 ,3 7 0
1 2 2 ,1 5 4 ,5 4 0
1 6 7 ,8 8 8 ,3 6 7
6 7 ,0 4 2 ,7 5 6
1 00 ,0 6 0 ,0 9 8
2 9 7 ,3 5 8 ,2 3 4
4 2 9 ,0 2 6 ,8 6 2

352,930
2 ,5 0 4 ,7 4 6
2 1 ,6 2 2 ,6 8 4
4 3 ,0 0 0 ,6 4 4
5 2 ,8 2 5,5 5 2
8 6 ,6 8 8 ,7 0 5
3 3 ,6 9 7 ,5 5 5
58,499,271
2 0 8 ,5 9 0 ,6 0 6
2 8 4 ,4 7 3 ,6 0 6

176 ,9 19
9 2 0 ,6 7 7
4 ,9 0 2 ,1 7 5
8 ,0 0 6 ,5 5 4
8 ,0 1 7 ,8 5 8
1 6 ,4 5 7 ,2 2 4
6 ,6 2 4 ,5 2 7
1 5 ,1 4 7 ,4 3 0
5 1 ,6 7 4 ,8 2 0
1 4 4 ,5 5 3 ,2 5 6

2 ,4 8 2 ,9 4 3
1 2 ,7 0 5 ,3 0 6
5 2 ,5 0 3 ,7 4 8
6 8 ,2 4 0 ,1 7 2
6 1 ,3 1 1 ,1 3 0
6 4 ,7 4 2 ,4 3 8
2 6 ,7 2 0 ,6 7 4
2 6 ,4 1 3 ,3 9 7
3 7 ,0 9 2 ,8 0 8
0

250,751
1 33 ,0 65
2 5 5 ,2 5 8
2 5 5 ,2 6 6
6 2 1 ,9 2 5
4 ,2 2 2 ,6 3 9
2 ,9 4 2 ,0 1 2
5 ,6 7 2 ,0 0 5
1 7 ,7 2 9 ,7 6 5
0

0
1 5,6 7 2
1 72 ,8 04
9 4 0 ,0 1 6
5 ,9 4 2 ,5 9 8
1 7 ,1 0 2 ,6 0 2
1 3,8 5 9,7 4 1
2 5 ,9 9 0 ,9 1 6
7 1 ,2 1 9 ,2 2 0
1 1 ,8 6 8 ,9 1 2

0
0
9 4 ,3 5 9
6 52 ,8 0 2
1 ,5 7 4 ,0 4 8
6 ,1 2 1 ,7 7 4
1 ,7 5 6 ,5 4 9
5 4 7 ,2 9 9
0
0

1,400,950,3551

792,256,299

256,481,440

352,212,616

32,082,686

147,112,481

BRANCHES

(In th ou san ds of do llars)

NUMBER O BANKS AND
F

Number of banks

M u tu al s a v in g s banks

10,746,831

1 D o m e stic assets only; does not in clud e assets of branches of U .S . banks in “ Other a rea s.’ ’

153




1 54

Ta b le 105.

NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1979
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of—

3,378
119,502,636
106,394,041

1,772
122,684,142
108,032,593

1,071
171,568,942
145,745,509

37
283,426
249,723

135
2,215,476
1,971,297

85
2,834,891
2,509,161

27
1,726,650
1,540,939

0
0
0

0
0
0

0
0
0

2
73,500
63,954

27
12,156,670
10,346,952

6
6,108
796

5
35,562
29,322

7
112,335
98,471

261
10,257,546
8,756,869

11
25,902
21,550

29
211,267
186,811

257
219,253,018
177,782,960

16
19,612
7,086

410
15,145,608
12,619,107

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

178
69,855,601
57,363,728

157
105,606,570
84,230,096

153
311,937,592
234,959,875

33
724,077,442
552,398,561

13
2,243,168
1,952,060

1
407,995
352,245

5
3,116,329
2,545,282

2
2,905,775
2,287,180

0
0
0

5
347,156
289,560

3
517,623
403,289

1
437,565
332,779

1
604,774
474,428

0
0
0

0
0
0

1
37,548
34,715

2
180,665
156,828

1
260,582
235,730

1
479,710
425,111

1
616,593
538,436

2
5,095,397
4,490,170

1
5,332,170
4,337,373

104
1,682,872
1,505,707

70
2,527,258
2,254,499

28
1,883,952
1,647,741*

15
2,241,060
1,921,831

3
1,084,330
791,820

1
600,905
426,910

0
0
0

0
0
0

25
185,812
142,907

57
967,632
823,327

56
2,061,487
1,806,362

38
2,729,454
2,419,747

40
7,025,326
6,277,297

4
1,397,433
1,162,832

10
6,654,355
5,785,548

5
12,143,219
9,989,224

6
186,068,688
149,368,630

110
284,168
193,719

57
424,083
348,136

128
2,096,004
1,852,527

59
2,144,665
1,861,776

31
2,133,243
1,893,496

21
3,067,958
2,611,188

0
0
0

2
1,646,581
1,301,919

2
3,348,906
2,556,346

0
0
0

65
12,944,890
10,802,700

1
4,975
4,445

2
14,567
12,682

20
363,198
318,311

18
642,629
564,673

10
772,653
678,651

6
996,687
830,121

0
0
0

4
2,608,683
2,252,736

4
7,541,498
6,141,081

0
0
0

20
3,678,731
2,746,869

2
3,082
1,908

2
12,250
10,803

6
86,616
78,420

3
88,036
76,116

1
69,481
61,079

2
300,941
97,039

1
459,359
404,321

2
1,266,439
1,076,220

1
1,392,527
940,963

0
0
0

17
7,815,939
6,353,506

0
0
0

0
0
0

4
61,004
51,425

2
98,605
85,183

3
169,459
147,961

3
373,179
319,574

0
0
0

3
2,123,535
1,715,468

2
4 ,990,157
4,033,895

0
0
0

14,738
1,724,008,628
1,377,037,113

1,104
3,263,543
2,691,883

2,147
16,263,794
14,411,928

317
15,785,089
13,450,183

12
51,379
42,296

12
1,980,618
1,564,010

Total United States and
other areas2
Banks .....................................
Total assets3 ..........................
Total deposits3 ......................

States
Alabama
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Alaska
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Arizona
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Arkansas
Banks .....................................
A s s e ts .....................................
D e p o s its ....................................

California
Banks .....................................
A s s e ts .....................................
D e p o s its ................................

Colorado
Banks .....................................
Assets ...................................
D e p o s its .................................

Connecticut
Banks .....................................
Assets
..................
D e p o s its .................................

Delaware
Banks .....................................
A s s e ts .....................................
D e p o s its ................................

District of Columbia
Banks .....................................
A s s e ts .....................................
D e p o s its ................................




CO R PO R A TIO N

4,745
79,248,366
70,808,899

$300.0 million $500.0 million
to
to
$499.9 million $999.9 million

INSURANCE

$100.0 million
to
$299.9 million

DEPOSIT

$50.0 million
to
$99.9 million

$5.0 million
to
$9.9 million

FEDERAL

State

$10.0 million $25.0 million
to
to
$24.9 million $49.9 million

Less
than
$5 million

All
banks

Florida
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Gef f i ...............................
A s s e ts .....................................
D e p o s its .................................

154
5,580,150
5,010,029

100
7,032,247
6,247,658

86
13,538,349
11,861,984

14
5,427,292
4,603,399

7
4,465,723
3,458,160

1
2,873,651
2,096,651

0
0
0

439
22,007,377
17,681,430

31
101,461
90,059

74
563,399
499,702

175
2,969,392
2,646,840

107
3,727,107
3,299,742

25
1,608,666
1,401,327

21
3,161,237
2,715,920

2
790,266
643,956

0
0
0

4
9,085,849
6,383,884

0
0
0

12
4,923,877
4,386,548

0
0
0

1
6,209
4,809

3
53,190
23,578

1
37,085
33,471

0
0
0

3
552,200
503,010

2
756,750
676,076

0
0
0

2
3,518,443
3,145,604

0
0
0

27
4,609,205
3,904,198

2
6,306
3,209

1
7,021
5,904

10
145,575
130,226

5
168,805
152,622

3
183,106
150,204

2
276,780
243,155

1
349,110
294,784

1
564,808
478,389

2
2,907,694
2,445,705

0
0
0

1,288
135,839,141
103,072,156

87
261,562
219,669

179
1,353,425
1,202,231

427
7,059,256
6,320,759

277
10,037,308
8,876,699

177
12,420,037
10,676,424

120
18,979,266
15,164,668

12
4,725,525
3,262,911

3
1,797,621
906,925

2
3,572,102
2,676,596

4
75,633,039
53,765,274

406
30,510,757
25,443,803

5
9,680
7,954

33
255,955
224,343

117
2,097,839
1,902,448

116
4,132,171
3,689,628

72
5,056,815
4,491,692

49
7,626,919
6,562,420

8
3,105,432
2,536,732

3
1,853,135
1,465,623

3
6,372,811
4,562,963

0
0
0

657
19,699,559
17,037,523

26
78,758
69,428

140267
1,073,507
965,090

155
4,358,214
3,924,042

5,497,143
4,913,597

44
3,071,531
2,711,421

20
2,945,042
2,466,096

3
1,274,172
976,525

2
1,401,192
1,011,324

0
0
0

0
0
0

617
15,289,420
13,164,468

89
293,310
261,920

162
1,176,730
1,063,309

200
3,238,155
2,913,637

106
3,706,816
3,313,702

44
2,929,534
2,547,741

13
2,292,277
1,750,813

2
823,104
668,497

1
829,494
644,849

0
0
0

0
0
0

343
17,878,453
15,006,109

21
76,532
66,752

35
283,990
254,016

119
1,971,124
1,766,270

99
3,424,750
3,074,974

41
2,795,733
2,487,374

21
2,775,126
2,426,587

3
1,173,376
893,812

2
1,557,602
1,211,846

2
3,820,220
2,824,478

0
0
0

262
21,810,824
18,542,796

6
23,384
19,391

19
156,818
136,890

65
1,166,939
1,041,615

83
3,084,541
2,779,072

51
3,412,639
3,045,403

23
4,119,361
3,645,928

7
2,900,234
2,437,746

6
4,192,060
3,338,990

2
2,754,848
2,097,761

0
0
0

41
3,221,582
2,748,345

0
0
0

2
15,249
13,087

7
110,703
98,215

15
479,940
425,087

10
661,023
575,579

4
810,221
676,268

3
1,144,446
960,109

0
0
0

0
0
0

0
0
0

102
15,489,968
12,989,067

2
8,880
5,625

10
78,500
69,267

27
472,434
422,168

27
987,458
880,827

18
1,246,928
1,115,607

10
1,340,339
1,203,095

1
300,053
265,077

2
1,189,078
993,776

5
9,866,298
8,033,625

0
0
0

149
32,264,127
24,372,293

6
9,512
5,034

4
28,513
25,531

37
625,679
543,380

29
1,060,243
919,957

34
2,451,058
2,019,380

26
4,013,583
3,250,712

4
1,556,828
1,320,540

4
2,325,966
1,956,039

4
7,818,752
5,604,436

1
12,373,993
8,727,284

Hawaii
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Idaho
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Illinois
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Indiana
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Iowa
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Kansas
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Kentucky
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Louisiana
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Maine
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Maryland
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Massachusetts
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

155




BRANCHES

166
2,922,035
2,594,821

AND

40
310,021
268,874

O BANKS
F

17
41,281
25,000

NUMBER

585
42,190,749
36,166,576

1 56

T a b le 105.

N U M B E R , A S S E T S , A N D D E P O S I T S O F A L L C O M M E R C I A L B A N K S IN T H E U N I T E D S T A T E S ( S T A T E S A N D O T H E R A R E A S ) ,

DECEMBER 31, 1 9 79-C O N T IN U E D
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets o f—

State

$25.0 m illion
to
$49 .9 m illion

$ 5 0 .0 m illion
to
$ 9 9 .9 m illion

$ 10 0.0 m illion
to
$ 2 9 9 .9 m illion

$ 30 0.0 m illion
to
$ 4 9 9 .9 m illion

$ 5 0 0 .0 m illion
to
$ 9 9 9 .9 m illion

$ 1 .0 billion
to
$ 4 .9 billion

372
5 0 ,2 1 9 ,0 7 3
4 1 ,2 4 3 ,8 6 9

6
1 9,6 3 0
1 3,4 8 5

24
192,852
166,902

98
1 ,68 4 ,80 6
1 ,51 0 ,11 0

104
3 ,70 1 ,22 2
3 ,31 3 ,10 5

67
4 ,7 2 4 ,0 8 3
4 ,2 3 8 ,6 7 9

53
8 ,9 7 6 ,3 5 5
7 ,94 7 ,81 1

6
2 ,3 5 3 ,7 8 8
2 ,0 5 8 ,4 7 3

5
2 ,9 5 0 ,8 1 8
2 ,5 5 0 ,1 8 7

8
1 6 ,5 9 9 ,9 9 7
1 2 ,8 4 1 ,4 6 5

1
9 ,0 1 5 ,5 2 2
6 ,6 0 3 ,6 5 2

762
2 8 ,4 1 2 ,5 9 0
2 2 ,9 2 7 ,1 0 2

62
23 2 ,7 3 7
2 0 6 ,6 1 0

208
1,550,231
1 ,40 5 ,68 0

283
4,66 5 ,00 8
4,1 9 9 ,0 6 7

131
4 ,59 8 ,04 7
4 ,08 3 ,69 2

54
3 ,7 4 7 ,2 9 7
3 ,3 3 7 ,4 7 8

18
2 ,7 4 6 ,2 2 0
2 ,3 5 5 ,4 4 8

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

0
0
0

3
9 ,8 1 5 ,5 9 2
6 ,5 8 0 ,3 8 0

0
0
0

183
1 0 ,5 8 4 ,7 9 2
9 ,1 9 7 ,7 8 3

4
14,272
8 ,4 0 2

18
137,577
122,022

67
1,11 3 ,58 8
1,005,541

49
1,674,962
1,509,953

29
1 ,9 3 2 ,6 9 4
1 ,7 2 7 ,1 8 7

9
1 ,2 6 0 ,7 9 0
1 ,1 3 1 ,5 5 8

5
1 ,7 5 3 ,0 7 8
1 ,5 5 2 ,4 4 2

0
0
0

2
2 ,6 9 7 ,8 3 1
2 ,1 4 0 ,6 7 8

0
0
0

727
3 2 ,4 8 5 ,5 6 3
2 5 ,8 4 1 ,7 5 2

72
2 4 4 ,7 5 6
2 1 2 ,0 3 6

137
1 ,03 5 ,88 5
925,428

244
4 ,0 6 3 ,3 4 2
3 ,64 3 ,08 3

160
5,62 9 ,83 8
5 ,01 6 ,13 7

77
5 ,2 8 9 ,0 2 4
4 ,6 3 5 ,6 4 6

30
5 ,1 7 2 ,9 8 8
4 ,2 1 0 ,3 1 0

1
4 2 3 ,2 9 7
3 7 1 ,5 1 2

1
9 8 0 ,6 7 6
6 7 8 ,2 2 7

5
9 ,6 4 5 ,7 5 7
6 ,1 4 9 ,3 7 3

0
0
0

165
4 ,89 1 ,11 1
4,32 1 ,14 1

9
2 4 ,5 5 6
2 0 ,0 1 7

26
193,907
172,970

75
1,18 4 ,45 2
1,06 6 ,79 6

35
1,24 6 ,15 0
1,123,078

12
9 5 0 ,5 7 8
8 3 1 ,7 9 4

8
1 ,2 9 1 ,4 6 8
1 ,1 0 6 ,4 8 6

0
0
0

0
0
0

0
0
0

0
0
0

461
1 0 ,5 0 2 ,8 6 5
8 ,9 6 1 ,5 5 8

101
3 2 5 ,1 3 6
2 86 ,4 37

123
916,242
823 ,3 18

150
2,48 0 ,26 4
2 ,21 1 ,24 4

53
1 ,755,016
1,542,529

25
1 ,7 2 6 ,3 2 8
1 ,5 1 8 ,4 5 4

4
4 9 7 ,3 1 9
4 3 6 ,6 7 6

3
1 ,3 2 5 ,7 1 7
1 ,0 6 6 ,7 4 9

2
1 ,4 7 6 ,8 4 3
1 ,07 6 ,15 1

0
0
0

0
0
0

9
3 ,6 3 1 ,5 0 7
3 ,1 2 6 ,8 5 8

2
6,061
3 ,5 2 5

0
0
0

1
16,919
13,521

0
0
0

0
0
0

2
2 6 4 ,5 8 7
2 3 6 ,0 2 4

2
7 9 9 ,9 7 8
6 7 8 ,2 9 2

1
7 8 0 ,6 2 2
6 6 3 ,5 4 0

1
1 ,7 6 3 ,3 4 0
1 ,5 3 1 ,9 5 6

0
0
0

79
3 ,0 2 3 ,1 5 8
2 ,6 4 4 ,8 4 3

4
12,2 0 3
1 0,4 6 6

10
7 5,550
67,042

25
4 52 ,8 18
401 ,4 13

23
789,767
694,190

11
7 0 1 ,5 1 4
6 0 9 ,5 2 7

6
9 9 1 ,3 0 6
8 6 2 ,2 0 5

0
0
0

0
0
0

0
0
0

0
0
0

176
3 4,3 0 7,3 4 1
2 8 ,9 6 8 ,8 6 8

1
1,761
1 ,17 0

0
0
0

23
4 08 ,6 99
358 ,3 00

49
1,788,943
1 ,579,380

33
2 ,1 8 4 ,5 7 4
1 ,9 5 6 ,0 2 6

38
5 ,9 3 4 ,4 5 0
5 ,2 0 2 ,4 4 9

9
3 ,6 4 4 ,7 4 1
3 ,1 7 7 ,9 8 2

17
1 1 ,7 1 9 ,7 4 7
9 ,9 6 6 ,5 0 9

6
8 ,6 2 4 ,4 2 6
6 ,7 2 7 ,0 5 2

0
0
0

87
5 ,4 2 2 ,7 1 4
4 ,7 2 6 ,8 1 9

2
4 ,3 8 0
3 ,6 4 5

5
39,802
34,4 8 5

23
4 17 ,7 26
369 ,3 57

33
1,262,604
1,140,115

16
1 ,3 1 3 ,0 2 7
1 ,1 7 3 ,6 3 3

6
9 9 4 ,9 9 2
8 7 2 ,7 9 0

0
0
0

2
1 ,3 9 0 ,1 8 3
1 ,1 3 2 ,7 9 4

0
0
0

0
0
0

302
435,2 75 ,7 61
326,5 74 ,2 31

57
3 7,1 1 0
31,2 9 8

9
66,228
56,453

50
8 71,573
7 44,040

44
1,608,731
1,360,856

35
2 ,5 4 8 ,1 7 8
2 ,1 2 6 ,9 2 4

46
7 ,5 5 0 ,6 9 5
5 ,6 6 8 ,6 6 6

12
4 ,7 2 7 ,9 9 2
3 ,4 0 1 ,8 0 0

19
1 3 ,5 8 0 ,6 5 3
9 ,1 2 7 ,9 7 7

21
4 8 ,1 8 5 ,7 2 8
3 3 ,3 7 3 ,4 9 4

9
3 5 6 ,0 9 8 ,8 7 3
2 7 0 ,6 8 2 ,7 2 3

Minnesota
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

Mississippi
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

Missouri
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

Montana
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

Nebraska
B anks ........................................
A sse ts .....................................
D e p o s it s ...................................

Nevada
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................

New Hampshire
B anks ........................................
A s s e t s .......................................
D e p o s it s ...................................

New Jersey
Banks ........................................
A s s e t s .......................................
D e p o s it s ...................................

New Mexico
Banks .......................................
A s s e t s .......................................
D e p o s it s ...................................

New York
Banks .......................................
A sse ts
.................................
D e p o s it s ...................................




FEDERAL DEPOSIT INSURANCE CORPORATION

$ 5 .0 m illion
to
$ 9 .9 m illion

All
banks

Michigan
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................

$ 5 .0 billion
or
m ore

L ess
than
$5 m illion

$ 10 .0 m illion
to
$ 24 .9 m illion

North Carolina
B anks ........................................
A s s e t s .......................................
D e p o s it s ...................................

83
2 3 ,5 2 5 ,6 8 4
1 8 ,8 6 4 ,6 2 9

4
12,975
10,542

6
45,6 4 0
3 7,939

20
328,341
287,283

21
773 ,1 14
675 ,6 40

14
1 ,0 1 4 ,4 1 8
8 7 9 ,6 6 0

5
1 ,0 2 2 ,8 4 5
8 89,651

5
1 ,7 8 6 ,0 8 6
1 ,5 4 8 ,4 9 4

3
1 ,6 3 9 ,1 0 5
1 ,4 3 1 ,5 2 7

3
5 ,9 6 9 ,4 0 0
4 ,7 8 1 ,9 0 7

2
1 0 ,9 3 3 ,7 6 0
8 ,3 2 1 ,9 8 6

175
4 ,8 7 0 ,6 3 8
4 ,1 5 6 ,5 6 8

10
2 9,730
23,623

34
258 ,0 29
232 ,5 15

87
1 ,41 8 ,54 6
1 ,272,023

26
930 ,8 88
8 16 ,0 26

10
7 1 2 ,9 8 0
6 2 9 ,8 7 3

7
8 8 1 ,2 9 4
7 7 4 ,7 6 3

0
0
0

1
639,171
4 0 7 ,7 4 5

0
0
0

0
0
0

4 08
5 2 ,9 0 1 ,8 5 8
4 1 ,7 3 3 ,1 1 8

5
17,703
15,790

44
3 24,393
284,603

117
1,983,141
1,769,934

98
3 ,3 1 1 ,6 3 4
2 ,93 5 ,84 3

63
4 ,2 3 7 ,1 0 3
3 ,6 8 5 ,3 9 8

55
8 ,5 1 4 ,5 1 7
7 ,2 5 1 ,8 9 4

7
2 ,7 3 5 ,7 2 7
2 ,2 5 8 ,2 2 3

8
5 ,4 0 3 ,3 0 2
4 ,3 9 2 ,0 4 3

11
2 6 ,3 7 4 ,3 3 8
1 9 ,1 3 9 ,3 9 0

0
0
0

496
1 9,7 1 8,8 7 1
1 6,8 4 1,4 7 3

48
1 52,078
128,586

114
858 ,0 10
760,738

148
2 ,38 7 ,64 9
2 ,149,565

108
3 ,7 0 2 ,3 1 3
3,31 8 ,45 2

53
3 ,5 2 9 ,1 3 7
3 ,1 1 9 ,8 4 2

19
2 ,8 5 4 ,7 2 0
2 ,4 8 0 ,2 8 5

1
359,151
3 1 0 ,8 1 0

1
5 7 1 ,7 6 4
4 5 3 ,3 8 9

4
5 ,3 0 4 ,0 4 9
4 ,1 1 9 ,8 0 6

0
0
0

80
1 2 ,6 1 3,5 9 8
1 0 ,3 4 9,1 0 8

14
34,026
22,182

15
120,682
98,363

21
3 29,323
2 92,526

14
497 ,3 19
444,083

6
4 2 3 ,5 9 7
376 ,4 74

5
7 7 9 ,9 6 5
6 9 3 ,6 9 0

2
780 ,6 73
6 9 2 ,6 5 7

1
7 15 ,1 62
6 0 7 ,4 8 9

2
8 ,93 2 ,85 1
7 ,1 2 1 ,6 4 4

0
0
0

378
8 5 ,0 0 2 ,2 3 8
6 7 ,3 6 6 ,6 7 3

6
6,301
676

25
190,559
161,051

94
1,634,427
1,446,088

85
3 ,1 3 0 ,7 2 5
2 ,79 6 ,25 3

78
5 ,3 8 6 ,5 6 0
4 ,8 0 9 ,7 6 0

52
8 ,5 8 6 ,7 9 2
7 ,6 3 8 ,1 7 4

13
5 ,2 0 7 ,2 9 5
4 ,4 5 8 ,6 5 0

11
7 ,0 5 5 ,3 5 8
6 ,0 8 4 ,6 3 0

10
2 1 ,1 6 4 ,8 8 3
1 6 ,8 7 7 ,1 8 5

4
3 2 ,6 3 9 ,3 3 8
2 3 ,0 9 4 ,2 0 6

17
6 ,3 7 8 ,0 4 6
5 ,0 3 7 ,0 5 8

3
1,492
1,157

0
0
0

5
76,561
65,076

2
63,6 4 8
55,091

1
56,3 9 0
5 0 ,3 7 4

3
4 8 6 ,5 5 2
4 1 0 ,3 6 8

0
0
0

0
0
0

3
5 ,6 9 3 ,4 0 3
4 ,4 5 4 ,9 9 2

0
0
0

85
6 ,9 6 5 ,3 0 2
5 ,8 1 0 ,1 4 3

8
33,454
27,922

9
65,719
57,207

35
5 78,440
505,638

15
534 ,5 57
4 63 ,4 16

10
729,451
6 3 4 ,6 4 8

3
5 6 2 ,6 3 4
5 0 3 ,1 9 3

1
4 1 1 ,0 0 9
3 6 7 ,8 8 5

3
2 ,6 0 3 ,3 5 3
2 ,1 1 2 ,6 6 4

1
1 ,4 4 6 ,6 8 5
1 ,1 3 7 ,5 7 0

0
0
0

155
4 ,6 7 5 ,3 9 2
4 ,1 8 3 ,8 2 0

21
8 5,640
74,966

39
303,598
2 73,612

59
885,273
799,464

17
550 ,4 25
4 93 ,3 54

12
8 3 5 ,5 3 0
7 5 2 ,6 5 7

5
1 ,0 1 8 ,3 0 4
8 9 7 ,8 4 8

1
4 4 6 ,5 5 8
3 9 6 ,2 9 4

1
5 50 ,0 64
4 9 5 ,6 2 5

0
0
0

0
0
0

352
2 2 ,0 5 6 ,5 7 5
1 8 ,6 4 4 ,7 6 3

15
4 8,968
43,2 4 9

45
347 ,3 87
310 ,1 15

117
1,953,761
1,766,364

92
3 ,1 8 8 ,2 0 0
2 ,8 5 4 ,9 4 4

52
3 ,6 3 7 ,7 4 5
3 ,2 4 3 ,4 7 4

21
3 ,1 1 4 ,1 8 0
2 ,7 3 2 ,4 9 8

2
9 1 2 ,0 3 0
7 3 4 ,2 0 2

3
1 ,9 4 4 ,6 6 7
1 ,5 7 9 ,5 8 3

5
6 ,9 0 9 ,6 3 7
5 ,3 8 0 ,3 3 4

0
0
0

Banks .......................................
A s s e t s .......................................
D e p o s it s ...................................

1 ,427
1 0 2 ,8 3 9 ,9 2 4
8 5 ,2 7 0,2 1 1

86
2 92,960
248,461

203
1 ,57 7 ,34 5
1 ,398,045

440
7,418,671
6 ,64 7 ,66 6

375
1 3,2 5 5,7 5 3
11,915,341

193
1 3 ,5 5 0 ,5 2 6
1 2 ,1 8 0 ,0 7 8

90
1 4 ,3 4 2 ,4 2 4
1 2 ,6 3 3 ,1 1 5

19
7 ,2 8 4 ,4 1 4
6 ,0 8 0 ,3 6 2

10
6 ,7 1 8 ,7 3 4
5 ,3 4 9 ,7 1 8

7
1 0,7 8 1,2 7 1
7 ,9 5 9 ,8 6 8

4
2 7 ,6 1 7 ,8 2 6
2 0 ,8 5 7 ,5 5 7

Utah
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................

76
6 ,3 3 3 ,5 7 8
5 ,4 1 3 ,4 8 5

15
36,192
26,611

17
121,259
104,180

24
387,580
344,613

9
330 ,4 64
297 ,4 70

3
214,001
1 90 ,3 9 0

3
6 1 1 ,1 4 6
5 1 6 ,9 8 9

2
8 1 2 ,7 8 7
7 0 6 ,0 8 5

1
7 4 7 ,8 7 8
651,761

2
3 ,07 2 ,27 1
2 ,5 7 5 ,3 8 6

0
0
0

30
2 ,2 1 2 ,5 8 5
1 ,9 8 8 ,7 2 8

2
3,363
2,830

3
20,036
17,725

4
79,457
70,783

12
4 04 ,3 20
3 67 ,1 48

2
1 26 ,7 8 9
114,271

5
8 9 6 ,9 3 3
8 0 5 ,5 6 5

2
6 8 1 ,6 8 7
6 1 0 ,4 0 6

0
0
0

0
0
0

0
0
0

North Dakota
B anks ........................................
A s s e t s .......................................
D e p o s it s ...................................

Ohio
Ban ks .......................................
A s s e t s .......................................
D e p o s it s ...................................

Oklahoma
B anks .......................................
A s s e t s ........................................
D e p o s it s ...................................

Oregon

Pennsylvania
Banks .......................................
A s s e t s ........................................
D e p o s it s ...................................

Rhode Island
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

South Carolina
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................
B anks ........................................
A s s e t s ........................................
D e p o s it s ...................................

Tennessee
Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

BRANCHES

South Dakota

NUMBER O BANKS AND
F

Banks ........................................
A s s e t s ........................................
D e p o s it s ...................................

Texas

Vermont
Banks .......................................
A s s e t s ........................................
D e p o s it s ...................................

1 57




1 58

Ta b le 105.

NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1979-CONTINUED
BANKS GROUPED BY ASSET SIZE AND STATE
(Amounts in thousands of dollars)
Banks with assets of—
$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$5.0 billion
or
more

63
2,232,348
2,004,245

33
2,137,678
1,910,090

15
2,702,872
2,344,586

2
820,028
688,938

3
2,117,520
1,809,550

5
10,880,833
8,830,914

0
0
0

36
598,528
529,795

21
801,477
715,327

10
721,704
572,482

6
1,287,771
758,415

1
318,345
272,158

2
1,223,228
1,057,248

4
8,689,069
6 ,984,995

1
8,364,233
6,639,876

27
219,974
191,764

79
1,383,771
1,227,854

69
2,398,809
2,129,996

30
2,054,022
1,787,725

19
2,932,513
2,349,083

1
459,855
313,729

0
0
0

0
0
0

0
0
0

35
113,356
95,380

99
752,944
678,287

229
3,868,735
3,485,969

176
6,064,281
5,364,355

63
4,245,595
3,686,069

29
4,396,199
3,658,241

1
369,291
288,983

2
1,382,849
1,018,871

2
4,636,505
3,042,822

0
0
0

94
3,082,501
2,734,732

14
50,103
40,257

12
89,741
79,483

26
443,941
398,164

24
844,945
758,176

15
1,009,100
895,378

3
644,671
563,274

0
0
0

0
0
0

0
0
0

0
0
0

3
74,500
59,954

1
1,503
190

0
0
0

1
10,508
6,974

0
0
0

1
62,489
52,790

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

20
7,215,219
5,027,647

5
0
0

0
0
0

5
97,270
79,053

0
0
0

0
0
0

3
584,734
489,909

4
1,791,636
1,560,583

0
0
0

3
4,741,579
2,898,102

0
0
0

6
209,482
204,760

5
0
0

0
0
0

0
0
0

0
0
0

0
0
0

1
209,482
204,760

0
0
0

0
0
0

0
0
0

0
0
0

234
22,360,616
18,887,613

13
51,445
38,417

22
168,316
146,762

78
1,249,576
1,114,111

110
22,146,002
17,639,863

13
26,063
17,765

16
115,584
91,802

235
9,484,209
8,028,595

10
35,265
28,444

636
25,829,755
21,318,977

Virainia
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Washington
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

West Virginia
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Wisconsin
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Wyoming
B a n k s .....................................
A s s e ts .....................................
D e p o s its .................................

Other areas
Guam
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

Puerto Rico
Banks .....................................
A s s e ts .....................................
Deposits ...............................

Virgin Islands
Banks .....................................
A s s e ts .....................................
D e p o s its .................................

1 Includes 91 nondeposit trust companies: 5 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 7 in Florida 3 in Hawaii, 6 in
Illinois 1 in Indiana, 1 in Iowa, 1 in M assachusetts, 2 in Minnesota, 1 in M ississippi, 6 in Missouri, 3 in Montana, 7 in Nebraska 1 in
New Hampshire, 1 in New M exico, 6 in New York, 2 in North Dakota, 2 in Oklahoma, 1 in Oregon, 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, 5 in W isconsin and 1 in Puerto
2 Excludes 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
3 Data are from fully consolidated Reports of Condition including domestic and foreign offices.




C O RPO R ATIO N

$300.0 million
to
$499.9 million

INSURANCE

$100.0 million
to
$299.9 million

$5.0 million
to
$9.9 million

DEPOSIT

$10.0 million $25.0 million $50.0 million
to
to
to
$24.9 million $49.9 million $99.9 million

Less
than
$5 million

All
banks

FEDERAL

State

ASSETS AND LIABILITIES OF BANKS
Table 1 06.

Assets and liabilities of all commercial banks in the United States (States and other areas),
June 30, 1 979

Table 1 07.

Assets andjiabilities of all commercial banks in the United States (States and other areas),
December 31, 1 979

Table 108.

Assets and liabilities of all mutual savings banks in the United States (States and other areas),
June 30, 1 979, and December 3 1, 1 979

Table 109.

A ssets and liabilities of insured commercial banks in the United States (States and other
areas), December call dates, 1 9 7 4 — 1 979
Assets and liabilities of insured commercial banks (domestic and foreign offices), United
States and other areas, 1 973— 1 977
Assets and liabilities of insured commercial banks (domestic and foreign offices), United
States and other areas, December 31, 1978
A ssets and liabilities of insured commercial banks (domestic and foreign offices), United
States and other areas, December 31, 1 979
A ssets and liabilities of insured mutual savings banks in the United States (States and other
areas), December call dates, 1 9 7 4 — 1 979
Percentages of assets, liabilities, and equity capital of insured commercial banks operating
throughout 1 979 in the United States (States and other areas), December 31, 1979

Table 1 10.
Table 1 1 0A.
Table 1 10B.
Table 111.
Table 1 1 2.

Banks grouped by insurance status and class of bank

Banks grouped by insurance status and class of bank
Banks grouped by insurance status

Banks grouped by amount of assets

Table 113.

Percentages of assets and liabilities of insured mutual savings banks operating throughout
1 979 in the United States (States and other areas), December 31, 1979

Table 1 14.

Distribution of insured commercial banks in the United States (States and other areas),
December 31, 1 979

Banks grouped by amount of assets

Banks grouped according to amount of assets and by ratios of selected items to assets or
deposits
C om m ercial banks
Insured banks having total resources of $25 million or more are required
to report on the basis of accrual accounting. W here 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 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
consolidated report including these offices; however, except for table 110
tables on pages 161 -185 contain only the domestic assets and liabilities of




banks. Beginning in 1 969, all majority-owned bank premises subsidiaries
are fully consolidated; other m ajority-owned domestic subsidiaries (but not
commercial bank subsidiaries) are consolidated if they meet any of the
follow ing 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 "Incom e (loss) before income taxes and securities gains or
losses'' amounts to 5 percent or more of the "incom e (loss) before income
taxes and securities gains or losses” of the parent bank. Beginning in 1 972,
investments in subsidiaries not consolidated in which the bank directly or
indirectly exercises effective control are reported on an equity (rather than
cost) basis w ith the investment and undivided profits adjusted to include the

NOTE:

Tables w ith Report of Condition financial data may not balance as
a result of certain noninsured banks submitting balance sheet
data but not submitting supporting detail in some of the schedules.
Some noninsured banks that did not submit financial data are
included in the counts of banks.

FEDERAL DEPOSIT INSURANCE CORPORATION



bearing demand notes issued to the U.S. Treasury.
Asset and liability data for noninsured banks are tabulated from reports
pertaining to the individual banks. In a few cases, these reports are not as
detailed as those submitted by insured banks.
Additional data on assets and liabilities of all banks as of December 31,
1977, and June 30, 1978, are shown in the Corporation's semiannual
publication Assets and Liabilities—Commercial and Mutual Savings Banks.
M utual savings banks
The Reports of Income and Condition were significantly revised in 1 979.
The intent of the revisions was to provide more meaningful information
concerning the operations and condition of the mutual institutions as well as
to bring reporting by such institutions into closer conformance to accounting
principles.
Report of Income
In addition to obtaining more detail concerning operating income and
expenses, the reporting form at and instructions were changed to reflect
interest and dividends paid or accrued as an operating expense. Gains and
losses on mortgage loans, real estate and other transactions are included in
other operating income or other operating expenses rather than being
separately stated. Income taxes are reflected separately on operating
income, securities transactions and extraordinary items. The reporting of the
provision for possible loan losses requires an expense based on manage­
ment discretion rather than an expense reflecting net loan losses.
Report o f C ondition
Significant changes to this form include the separate reporting and deduc­
tion of a valuation reserve against real estate loans and other loans. Deposit
categories were changed to reflect industry practice. A Memoranda sche­
dule and a Supplemental Schedule H were added to provide information
concerning the market value of bond and equity investments, selected asset
and liability average figures, and past due and non-accrual real estate loans.
M aturity distributions of security investments, time deposits and borrowed
funds were incorporated into the report.
Foreign assets o f banks
Since June 30, 1 974, a consolidated statement of domestic and foreign
assets and liabilities of U.S. banks has been published sem iannually by the
Corporation in Assets and Liabilities—Commercial and Mutual Savings
Banks. (Beginning w ith June 30, 1 977, 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 o f data
Insured banks: seep, 187; noninsured banks: State banking authorities and
and reports from individual banks.

1 60

parent's share of the subsidiaries' net worth.
In the case of insured banks w ith branches outside the 50 States and D.C.,
net amounts due from such branches are included in "O ther assets” and net
amounts due to such branches are included in "O ther liabilities.” Branches
of insured banks outside the 50 States and D. C. 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 1 9 6 9 through 1 975, 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 1 976, the IRS reserve is divided as
follows: (a) the "va lu a tio n " 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
total loans; (b) the "deferred income ta x" portion is included in "other
liabilities"; and (c) the "contingency" portion is included in "undivided
profits,” or "reserves for contingencies and other capital reserves" (prefera­
bly 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 1 976.
"Unearned income on loans," previously reported in "other liabilities,” is
reported separately as an exclusion from gross loans and total assets begin­
ning March 3 1 ,1 976.
Beginning March 31, 1979, "deposits accumulated for the payment of
personal loans" was elim inated from deposits. Such "deposits" are required
to be deducted from the appropriate loan category before completion of
Report of Condition Schedule A (loans).
The category "Trading account securities" was added to the condition
report of commercial banks in 1 9 6 9 to obtain this segregation for banks that
regularly deal in securities w ith other banks or w ith the public. Banks
occasionally holding securities purchased for possible resale report these
under "Investm ent securities."
Assets and liabilities held in or adm inistered by a savings, bond, insur­
ance, real estate, foreign, or any other departm ent of a bank, except a trust
department, are consolidated w ith the respective assets and liabilities of the
commercial department. "Deposits of individuals, partnerships, and corpo­
rations" include trust funds deposited by a trust department in a commercial
or savings department. Other assets held in trust are not included in state­
ments of assets and liabilities.
Demand balances w ith, 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 tw o banks maintain deposit accounts w ith each other.)
In 1976, the caption "Capital notes and debentures” was changed to
"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 1 9 7 8 an abbreviated Report of Condition was instituted for banks w ith
less than $ 1 0 0 m illion in total consolidated assets. Beginning w ith
1978, other liabilities for borrowed money include interestDecember

T a b le 106.

ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1979
BANKS GROUPED BY INSURANCE STATUS AND CLASS O BANK
F
(Amounts in thousands of dollars)
Insured banks

Asset, 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
trust
companies

990,213,226

749,419,372

240,793,854

327,689,359

36,671,979

36,259,656

412,323

178,342,062

150,918,291

98,524,153

52,394,138

27,423,771

4,980,652

4,930,171

78,167,214
47,938,062

50,481

78,033,191
45,717,049

74,931,193
29,013,164

46,646,889
15,657,695

28,284,304
13,355,469

3,101,998
16,703,885

134,023
2,221,013

133,985
2,201,935

38
19,078

11,376,502
32,458,272
13,335,390

8,807,224
32,457,945
13,326,653

4,759,170
32,457,260
9,757,504

3,369,486
25,231,747
7,618,336

1,389,684
7,225,513
2,139,168

4,048,054
685
3,569,149

2,569,278
327
8,737

2,552,843
38
8,651

16,435
289
86

Securities— t o ta l............................................................................................

276,228,754

274,263,581

187,544,167

145,066,636

42,477,531

86,719,414

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

1,965,173

1,872,576

92,597

87,108,936
44,730,102
127,032,567
17,357,099

86,604,814
44,567,851
126,365,347
16,725,569

57,245,202
27,934,734
88,089,857
14,274,374

43,268,493
22,789,840
68,642,733
10,365,570

13,976,709
5,144,894
19,447,124
3,908,804

29,359,612
16,633,117
38,275,490
2,451,195

504,172
162,251
667,220
631,530

463,485
154,265
643,217
611,609

40,687
7,986
24,003
19,921

116,443

54,969,826

52,416,544

40,368,859

33,513,336

6,855,523

12,047,685

2,553,282

2,436,839

Loans, net ......................................................................................................

720,884,326

532,571,034

414,361,997

118,209,037

188,313,292

Plus: Allowances for possible loan losses ................................................
Loans, total ....................................................................................................
Plus: Unearned income on loans ...............................................................

742,809,909

21,925,583

21,896,884

28,699

8,567,003
751,376,912
19,470,307

8,447,992
729,332,318
19,430,281

6,647,838
539,218,872
12,933,611

4,996,242
419,358,239
10,708,031

1,651,596
119,860,633
2,225,580

1,800,154
190,113,446
6,496,670

119,011
22,044,594
40,026

118,533
22,015,417
39,706

478
29,177
320

Loans, gross ..................................................................................................

770,734,252

Real estate loans— t o t a l .............................................................................
.......................................................
.............................................................................
........................................
....................
......................................
Loans to financial in stitu tio n s.................................................................
Loans for purchasing or carrying s e c u ritie s ..........................................
Loans to finance agricultural production and other loans to fa rm e rs. . .
Commercial and industrial loans ...........................................................

748,762,601

552,152,485

430,066,272

122,086,213

196,610,116

228,813,552

21,971,651

21,942,394

29,257

228,401,583

155,772,197

126,814,505

28,957,692

72,629,386

411,969

407,012

4,957

48.169.705
14,728,202
29,839,361
249,797,543

38,695,569
14,574,731
29,786,725
240,944,514

36,549,021
13,507,367
16,067,473
193,437,260

2,146,548
1,067,364
13,719,252
47,507,254

Loans to individuals— to ta l.........................................................................

178,814,820

66.058.706
25,970,872
10,384,697
44,806,263
31,594,282

178,613,864

121,967,238

34,890,193
18,703,553
6,384,489
23,097,616
16,577,610

56,646,626

20,231,497

17,745,615

14,851,929

11,071,701

3,780,228

2,893,686

2,485,882

2,478,477

7,405

1,074,008,489 1,047,564,451

760,484,060

592,941,969

167,542,091

287,080,391

26,444,038

26,206,299

237,739

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

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

All other loans

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

Total loans and securites .....................................................................




29,568,294
8,669,974
127,477,999
6,086,500
57,010,785

29,496,093
8,648,228
127,278,238
6,076,386
56,902,638

66,008,730
25,955,620
10,383,864
44,743,760
31,521,890

21,965,719
3,719,907
88,038,168
4,421,681
37,626,722

42,116,339
22,903,023
7,153,129
28,840,555
20,954,192

17,351,695
3,10.0,617
72,778,217
3,335,351
30,248,625

24,503,901
8,264,468
13,987,683
145,770,553

4,614,024
619,290
15,259,951
1,086,330
7,378,097

12,045,120
5,242,899
2,079,790
47,666,707

7,530,374
4,928,321
39,240,070
1,654,705
19,275,916

99,653,461

22,313,777

23,892,391
3,052,597
3,230,735
15,903,205
10,567,698

7,226,146
4,199,470
768,640
5,742,939
4,376,582

9,474,136
153,471
52,636
8,853,029

71,648
21,555
196,810
9,781
107,218

9.469,945
153,471
52,636
8,850,239

553
191
2,951
333
929

200,956

199,673

1,283

72,201
21,746
199,761
10,114
108,147

49,976
15,252
833
62,503
72,392

49,336
15,250
833
61,862
72,392

4,191
0
0
2,790

640
2
0
641
0

O BA NKS
F

Federal funds sold and securities purchased under agreements
to resell ......................................................................................................

LIABILITIES

1,317,902,585

183,322,714

Cash items in process of collection ...........................................................
Demand balances with commercial banks in the United S ta te s ................
All other balances with depository institutions in the U.S. and with
banks in foreign countries .....................................................................
Balances with Federal Reserve B a n k s .........................................................
Currency and coin ......................................................................................

AND

1,354,574,564

Cash and due from depository institutions— t o t a l ......................................

ASSETS

Total a sse ts ........................................................................................................

1 62

Ta b le 106.

Noninsured banks

Insured banks
Members of
Federal Reserve System

Total
Total
Total

State

Total

Banks
of
deposit

Nondeposit
trust
companies

8,597,143

8,596,893

7,858,602

6,040,889

1,817,713

738,291

250

250

0

21,455,282
2,306,837
64,670,952

21,393,919
2,283,382
59,721,878

15,280,543
1,799,273
53,872,457

12,414,219
1,391,823
38,106,319

2,866,324
407,450
15,766,138

6,113,376
484,109
5,849,421

61,363
23,455
4,949,074

47,545
23,223
4,839,021

13,818
232
110,053

412,323

240,793,854

327,689,359

36,671,979

36,259,656

869,626,087

857,946,222

604,566,654

475,436,709

129,129,945

253,379,568

11,679,865

11,618,385

61,480

Individuals, partnerships, and corporations-savings ..................
Individuals and nonprofit organizations-savings .........................

Individuals, partnerships and corporations— d e m a n d ..................

216,311,370
205,860,310

295,322,501

215,798,870 145,905,613 116,908,123
205,360,187 138,940,203 111,430,237

294,311,005

214,228,239

165,228,089

49,000,150

80,082,766

961,731

5,477,886
186,238,039

3,473,273
99,686,381

12,377
8,055,976

511,398
499,740

49,765

6,965,410
232,173,972

69,893,257
66,419,984

1,011,496

10,438,683
331,860,353

28,997,490
27,509,966

11,658
8,048,315

719
7,661

18,075,887

15,975,994

12,258,830

7,062,458

5,196,372

3,717,164

2,099,893

2,096,941

2,952

Government deposits— t o ta l..............................................................

86,427,793

85,998,126

56,123,768

45,911,016

10,212,752

29,874,358

429,667

429,340

327

States Government— d e m a n d .............................................
States Government— savings .............................................
States Government— tim e ...................................................
and political subdivisions— d e m a n d ...................................
and political subdivisions— savings ...................................
and political subdivisions— t im e .........................................

2,076,359
85,602
901,259
18,013,990
4,196,071
61,154,512

2,074,141
85,602
900,822
17,920,963
4,188,894
60,827,704

1,361,429
63,585
658,101
11,741,020
2,594,850
39,704,783

1,122,269
61,394
453,195
9,560,549
1,878,157
32,835,452

239,160
2,191
204,906
2,180,471
716,693
6,869,331

712,712
22,017
242,721
6,179,943
1,594,044
21,122,921

2,218
0
437
93,027
7,177
326,808

2,213
0
437
93,027
7,177
326,486

5
0
0
0
0
322

All other deposits— to ta l....................................................................

71,056,398

67,581,501

64,499,643

32,566,726

31,932,917

3,081,858

3,474,897

3,472,393

2.504

55,386,353
57,343
15,612,702

54,022,237
57,343
13,501,921

52,377,060
39,377
12,083,206

24,428,442
26,007
8,112,277

27,948,618
13,370
3,970,929

1,645,177
17,966
1,418,715

1,364,116
0
2,110,781

1,361,612
0
2,110,781

2.504
0
0

1,027,393,382 1,011,525,849

388,840,087
220,689,426
417,828,454

384,304,340 291,966,578 207,401,807
220,130,709 148,603,425 118,873,681
407,090,800 284,620,062 227,638,963

725,190,065

553,914,451

171,275,614

84,564,771 92,337,762
29,729,744 71,527,284
56,981,099 122,470,738

286,335,784

15,867,533

4,535,747
558,717
10,737,654

15,790,774

4,505,303
557,615
10,717,223

30,444
1,102
20,431

228,055,173

207,964,097

192,972,142

140,426,429

52,545,713

14,991,955

20,091,076

19,842,345

248,731

115,213,261

112,706,308

105,061,803

79,501,616

25,560,187

7,644,505

2,506,953

2,500,495

6,458

35,426,244
2,071,948
75,343,720

30,836,161
2,065,635
62,355,993

28,558,992
1,644,597
57,706,750

18,879,837
1,261,356
40,783,620

9,679,155
383,241
16,923,130

2,277,169
421,038
4,649,243

4,590,083
6,313
12,987,727

4,586,630
618
12,754,602

3,453
5,695
233,125

Corporations and other profit organizations— s a v in g s ..................
Individuals, partnerships, and corporations— t i m e .......................
Certified and officers’ checks, travelers’ checks, letters of
credit— demand ..........................................................................

United
United
United
States
States
States

Demand ..........................................................................................
S a v in g s ............................................................................................
T im e ................................................................................................

Total deposits ....................................................................................

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

Miscellaneous liabilities— t o t a l........................................................
Federal funds purchased and securities sold under agreements
to purchase ..................................................................................
Interest bearing demand notes issued to the U.S. Treasury and
other liabilities for borrowed m o n e y ...........................................
Mortgage indebtedness and liability for capitalized le a s e s ............
All otner lia b ilitie s ............................................................................




1,354,574,564 1,317,902,585

10,451,060
339,916,329

1,487,524
45,935,933

512,500
500,123

1,102
383

76,759

C O R PO R ATIO N

990,213,226 749,419,372

Business and personal deposits— total ...........................................

Total liabilities and equity capital ........................................................

INSURANCE

Lease financing receivables ................................................................
Bank premises, furniture and fixtures, and other assets representing
bank premises ................................................................................
Real estate owned other than bank p re m ise s .....................................
All other a s s e t s ....................................................................................

National

Not
members
of F.R.
System

DEPOSIT

Asset, liability or expense item

FEDERAL

ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1979— CONTINUED
BANKS GROUPED BY INSURANCE STATUS AND CLASS O BANK
F
(Amounts in thousands of dollars)

Total liabilities (excluding subordinated notes and debentures) ___ 1,255,661,701

1,219,489,945

918,162,206

694,340,879

223,821,327

301,327,739

36,171,756

35,846,266

Subordinated notes and debentures.............................................................

5,946,552

5,931,552

4,430,987

3,205,706

1,225,281

1,500,565

15,000

13,736

1,264

Equity capital— total ......................................................................................

93,013,501

92,524,926

67,663,870

15,791,084

147,721
5,793
19,896,197
2,298,870
34,321,867

136,463
5,793
19,725,881
2,295,891
34,143,792

51,872,786

33,305
1,175
14,196,396
1,332,806
23,761,150

24,861,056

488,575

29,761
693
11,148,729
1,087,567
17,407,311

3,544
482
3,047,667
245,239
6,353,839

403,006

103,158
4,618
5,529,485
963,085
10,382,642

11,258
0
170,316
2,979
178,075

85,569

11,258
0
142,865
1,648
147,987

0
0
27,451
1,331
30,088

38,654,870

38,518,790

29,673,019

23,286,985

6,386,034

8,845,771

136,080

108,050

28,030

13.53

13.53

15.24

13.15

21.76

8.37

13.58

13.60

12.24

9.73
10.66

9.95
10.86

8.60
10.34

8.81
10.54

7.94
9.70

14.04
12.43

1.82
3.54

1.70
3.46

11.80
10.65

59.53
6.55
6.87

59.32
6.34
7.02

58.53
7.29
6.83

60.43
7.07
6.92

52.62
7.98
6.56

61.69
3.47
7.59

67.08
13.98
1.33

67.44
13.80
1.11

35.32
29.98
20.75

8.58"

8.79

8.65

8.54

9.05

9.18

1.5

Preferred stock— par v a lu e .........................................................................
Preferred stock— shares outstainding (in thousands) ..............................
Common stock— par v a lu e .........................................................................
Common stock— shares outstanding (in th o u sa n d s)................................
S u r p lu s ........................................................................................................
Undivided profits and reserve for contingencies and other
capital re se rv es.......................................................................................

325,490

PERCENTAGES

Total equity capital3 .........................................................................

1

1.314

26.64

MEMORANDA
23,562,757
174,664,718
28,477,769

22,408,468
168,584,502
26,826,517

21,037,509
129,851,854
22,950,981

14,584,616
99,971,735
18,940,367

6,452,893
29,880,119
4,010,614

1,370,959
38,732,648
3,875,536

1,154,289
6,080,216
1,651,242

1,154,289
6,080,216
1,651,242

0
0
0

Number of banks at end of period .....................................................................

14,730

14,367

5,481

4,493

988

8,886

363

275

88

Includes asset and liability domestic figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital
2 is not allocated to these branches by the parent banks.
Amounts shown as deposits are special accounts and univested trust funds, with the latter classified as demand deposits of individuals
3 partnerships, and corporations.
Only 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 computation of ratios of equity capital to assets.
Data for domestic branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of
deposit.
Note: Further information on the reports of assets and liabilities of banks may be found on pp. 159-160.

163




O BANKS
F

Standby letters of credit— total .........................................................................
Time certificates of deposits in denominations of $100,000 or m o r e ..............
Other time deposits in amounts of $100,000 or m o re ......................................

LIABILITIES

Of total assets other than cash and U.S. Treasury securities:

AND

Cash and due from depository institu tio n s.....................................................
U.S. Treasury securities and obligations of other U.S. Government
agencies and co rp o ra tio n s .........................................................................
All other securities ..........................................................................................
Loans (including federal funds sold and securities purchased
under agreements to resell) .......................................................................
All other a s s e t s ..........................................................................
Total equity capital3 ........................................................................

ASSETS

Of total assets:

1 64
FEDERAL DEPOSIT

Table 107.

ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1979
BANKS GROUPED BY INSURANCE STATUS AND CLASS O BANK
F
(Amounts in thousands of dollars)
Noninsured banks

Insured banks

Total

National

State

Not
members
of F.R.
System

796,797,598

256,481,440

107,149,430

52,540,439

Total
Total

Total assets..................................................................................................... 1,437,748,680 1,405,665,994 1,053,279,038
198,925,337
159,689,869
192,420,607
Cash and due from depository institutions— total

Securities— to ta l.........................................................................................
U.S. treasury securities ...........................................................................
Obligations of other U.S. government
agencies and corp orations...................................................................
Obligations of states and political subdivisions in the U .S ........................
All other securites.....................................................................................

Banks
of
deposit

Nondeposit
trust
companies

352,386,956

32,082,686

30,821,378

1,261,308

32,730,738

6,504,730

6,355,182

149,548

82,248,567

81,933,644

78,554,350

50,604,262

27,950,088

3,379,294

314,923

314,921

2

49,282,631

47,940,502

29,218,273

17,209,571

12,008,702

18.722.229

1,342,129

1,320,376

21,753

16,397,916
32,240,516
18,613,289

11,703,690
32,240,418
18,602,353

5,917,033
32,233,868
13,766,345

4,523,658
24,076,174
10,735,765

1,393,375
8,157,694
3,030,580

5,786,657
6,550
4,836,008

4,694,226
98
10,936

4,681,826
0
10,889

12,400
98
47

287,830,798

285,484,061

194,039,972

149,344,375

44,695,597

91,444,089

2,346,737

2,067,152

279,585

88,771,955

88,221,453

58,062,224

44,125,843

13,936,381

30.159.229

550,502

500,528

49,974

49,536,126
133,344,421
16,178,296

49,313,676
132,568,154
15,380,778

31,048,036
91,987,835
12,941,877

24,702,117
71,030,870
9,485,545

6,345,919
20,956,965
3,456,332

18,265,640
40,580,319
2,438,901

222,450
776,267
797,518

217,035
634,692
714,897

5,415
141,575
82,621

204,498

Federal funds sold and securities purchased under
agreements to re s e ll...............................................................................

63,528,912

61,065,864

45,304,643

36,263,627

9,041,016

15,761,221

2,463,048

2,258,550

Loans, net ......................................................................................................

784,577,966

766,830,747

568,711,373

440,644,422

128,066,951

198,119,374

17,747,219

17,708,262

38,957

Plus: Allowances for possible loan losses ...............................................
Loans, total ....................................................................................................
Plus: unearned income on loans .............................................................

9,058,528
793,636,494
20,564,660

8,958,983
775,789,730
20,532,380

7,033,207
575,744,580
13,727,366

5,295,670
445,940,092
11,320,141

1,737,537
129,804,488
2,407,225

1,925,776
200,045,150
6,805,014

99,545
17,846,764
32,280

99,473
17,807,735
32,280

72
39,029
0

Loans, gross ...................................................................................................

813,832,215

796,322,110

589,471,946

457,260,233

132,211,713

206,850,164

17,510,105

17,495,458

14,647

Real estate loans— t o t a l...........................................................................
.....................................................
...........................................................................
.......................................
....................
.....................................

32,974,100
8,588,802
137,566,006
6,326,898
59,738,138

244,796,237

167,513,417

24,956,154
3,675,244
95,266,411
4,542,364
39,073,244

136,799,573

30,713,844

5,226,728
607,605
16,106,716
1,119,376
7,653,419

77,282,820

397,707

394,918

44,474
25,855
217,982
21,107
85,500

2,789

Construction and land development
Secured by farmland
Secured by 1-4 family residential properties
Secured by multi family (5 or more) residential properties
Secured by nonfarm nonresidential properties




245,193,944

32,929,259
8,562,893
137,346,068
6,305,464
59,652,553

19,729,426
3,067,639
79,159,695
3,422,988
31,419,825

7,973,105
4,887,649
42,079,657
1,763,100
20,579,309

44,841
25,909
219,938
21,434
85,585

367
1956
327
85

CORPORATION

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 cou n tries...................................
Balances with federal reserve b a n ks.........................................................
Currency and coin ...................................................................................

Total

INSURANCE

Asset, liability or expense item

Members of
Federal Reserve System

48,955,987
13,596,448

41,919,383
13,501,352

39,751,940
12,393,758

25,844,744
7,065,325

13,907,196
5,328,433

2,167,443
1,107,594

7,036,604
95,096

7,032,601
95,096

31,083,846
265,797,624

31,036,748
257,678,468

16,794,277
207,851,734

14,700,658
156,073,838

2,093,619
51,777,896

14,242,471
49,826,734

47,098
8,119,156

47,098
8,119,156

0
0

187,923,537

67,841,181
29,975,383
10,659,121
47,190,823
32,257,029

187,789,998

128,771,259

105,132,243

23,639,016

59,018,739

133,539

133,539

0

21,280,483

19,599,924

16,395,561

11,643,852

4,751,709

3,204,363

1,680,559

1,673,050

7,509

1,135,937,676 1,113,380,672

808,055,988

626,252,424

181,803,564

305,324,684

22,557,004

22,033,964

523,040

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 installment basis .
Credit cards and related plans .....................................................
To purchase mobile homes (excluding travel trailers) .................
All other installment loans forhousehold, family
and other personal expenditures .............................................
Single payment loans for household, family
and other personal expenditures .............................................

All other loans ....................................................................................

Total loans and securities .

67,804,978
29,958,653
10,658,711
47,139,893
32,227,763

43,273,145
26,484,297
7,422,945
30,348,293
21,242,579

35,634,268
21,552,565
6,651,668
24,466,106
16,827,636

7,638,877
4,931,732
771,277
5,882,187
4,414,943

24,531,833
3,474,356
3,235,766
16,791,600
10,985,184

36,203
16,730
410
50,930
29,266

36,203
16,730
410
50,930
29,266

4,003
0

0
0
0
0
0

9,951,916

9,087,604

6,789,640

2,297,964

864,312

3,082

3,038

44

22,605,926
2,085,954
65,220,919

15,976,950
1,599,000
58,869,627

12,952,433
1,269,263
42,384,408

3,024,517
329,737
16,485,219

6,628,976
486,954
6,351,292

74,864
40,965
2,649,647

49,463
15,359
2,111,978

25,401
25,606
537,669

1,437,748,680 1,405,665,994 1,053,279,038

796,797,598

256,481,440

352,386,956

32,082,686

30,821,378

1,261,308

Business and personal deposits— to ta l................................

940,826,398

933,830,811

515,634,774

Individuals, partnerships and corporations— dem and........
Individuals, partnerships, and corporations— savings ___
..............
........
Individual, partnerships, and corporations— tim e ..............
Certified and officers’ checks, travelers’ checks, letters of
credit— d e m a n d .............................................................

334,976,081
203,411,779

659,295,640
246,076,913
136,824,080

187,736,093
109,406,809

274,535,171

6,995,587

334,126,108
203,132,354

143,660,866

25,162

58,340,820
27,417,271

88,049,195
66,308,274

849,973
279,425

6,970,425
827,294
279,425

22,679
0

AND

385,555,003

385,555,003

380,623,591

4,931,412

4,931,412

LIABILITIES

ASSETS

9,954,998
22,680,790
2,126,919
67,870,566

Lease financing receivables ...........................................
Bank premises, furniture and fixtures, and other assets
representing bank p re m is e s .......................................
Real estate owned otner than bank p re m ise s.................
All other a s s e ts ...............................................................

Total liabilities and equity capital ...........................................

193,594,207
9,817,572

Individuals and nonprofit organizations-savings
Corporations and other profit organizations-savings

193,337,392 130,405,449
9,794,962
6,418,631

104,321,055
5,085,754

264,309,218

26,084,394
1,332,877

210,986,835

62,931,943
3,376,331
53,322,383

256,815
22,610

116,314,373

256,815
22,610

0
0

15,948,758

12,085,429

7,505,037

4,580,392

3,863,329

934,777

932,294

2,483

87,229,187

86,768,339

55,967,139

45,668,860

1,659,485
54,338
724,523
12,440,121
2,250,283
38,838,389

1,354,497
49,631
501,176
10,092,060
1,727,263
31,944,233

460,848

2,409,529
72,882
949,616
19,047,809
3,802,922
60,946,429

2,406,844
72,882
949,192
18,932,709
3,794,443
60,612,269

30,801,200

United States government— d e m an d ........
United States government— savings ........
United States government— t im e ..............
States and political subdivisions— demand
States and political subdivisions— savings
States and political subdivisions— time . . .

10,298,279

747,359
18,544
224,669
6,492,588
1,544,160
21,773,880

460,845

3

304,988
4,707
223,347
2,348,061
523,020
6,894,156

2,685
0
424
115,100
8,479
334,160

2,682
0
424
115,100
8,479
334,160

3
0
0
0
0
0

All other deposits— to ta l..............................

80,369,388

74,006,025

70,574,513

37,556,742

33,017,771

3,431,512

Demand ...................................................
S av in g s.....................................................
T im e .........................................................

60,138,935
50,347
13,816,743

58,202,713
38,122
12,333,678

28,965,545
25,231
8,565,966

6,363,363
1,532,633
1,092
4,829,638

2.406

29,237,168
12,891
3,767,712

1,936,222
12,225
1,483,065

6,360,957

61,671,568
51,439
18,646,381

1,530,227
1,092
4,829,638

2.406
0
0

165




;

O BANKS
F

16,883,535

Government deposits— to ta l........................

1 66

A S S E T S AN D LIABILITIES OF ALL C O M M E RC IAL BANKS IN TH E UN ITED STATES (S TA TES AND O THER AR EAS),
D E C E M B E R 3 1, 1 9 7 9 - C O N T I N U E D
BAN KS G RO UPED BY IN SURAN CE STATU S AND C L A S S OF BANK
(Amounts in thousands of dollars)

Noninsured banks

Insured banks
Mem bers of
Federal Reserve System
State

1,108,689,961 1,094,605,175

434,988,071
207,339,022
466,362,537

431,553,354 330,464,661 235,653,232
207,050,026 139,166,823 111,208,934
456,001,795 316,205,808 251,998,210

785,837,292

598,860,376

186,976,916

94,811,429
27,957,889
64,207,598

225,005,467

207,863,851

192,201,521

140,606,762

114,868,745

112,149,032

104,531,369

79,152,078

33,221,162
2,160,935
74,754,625

27,875,285
2,106,731
65,732,803

25,715,892
1,637,416
60,316,844

17,148,196
1,234,597
43,071,891

1,333,947,822 1,302,469,026

Total

Banks
of
deposit

308,767,883

101,088,693
67,883,203
139,795,987

14,084,786

3,434,717
288,996
10,360,742

14,044,427

3,407,203
288,996
10,347,898

27,514
0
12,844

51,594,759

15,662,330

17,141,616

16,173,557

968,059

25,379,291

7,617,663

2,719,713

2,699,713

20,000

8,567,696
402,819
17,244,953

2,159,393
469,315
5,415,959

5,345,877
54,204
9,021,822

5,219,525
47,709
8,206,610

126,352
6,495
815,212

1,008,418

Total

Total deposits .........................................................................................

Demand ................................................................................................
Savings ................................................................................................
Tim e ......................................................................................................

Miscellaneous liabilities— to ta l...............................................................
Federal fu n ds purchased and securities sold under agreements
to repurchase ......................................................................................................
Interest bearing demand notes issued to the U.S. Treasury and other
liabilities fo r borrow ed m oney .......................................................................
M ortgage indebtedness and liability fo r capitalized le a s e s ..........................
All other lia b ilitie s ...................................................................................................

Total liabilities (excluding subordinated
notes and debentures)...................................................................

N ondeposit
tru s t
companies

40,359

978,038,813

739,467,138

238,571,675

324,430,213

31,478,796

30,470,378

Subordinated notes and debentures.....................................................

5,957,206

5,955,812

4,417,980

3,034,067

1,383,913

1,537,832

1,394

385

1,009

Equity capital— total .............................................................................

97,843,654

97,241,158

70,822,249

54,296,395

16,525,854

26,418,909

602,496

350,615

251,881

Preferred sto ck— par v a lu e ..............................................................................
Preferred sto ck— shares outstanding (in th o u s a n d s )...............................
Com m on stock— par v a lu e ..............................................................................
Com m on stock— shares outstanding (in th o u s a n d s )...............................
S u r p lu s .................................................................................................................
Undivided profits and reserve fo r contingencies
and other capital reserves .........................................................................

129,019
5,961
20,452,309
2,895,930
35,489,821

125,890
5,961
20,273,743
2,892,982
35,328,623

34,208
912
14,517,699
1,424,594
24,301,059

30,631
428
11,402,799
1,177,606
17,846,174

3,577
484
3,114,900
246,988
6,454,885

91,682
5,049
5,756,044
1,468,388
11,027,564

3,129
0
178,566
2,948
161,198

3,105
0
140,348
1,282
119,135

24
0
38,218
1,666
42,063

41,761,105

41,512,902

31,969,283

25,016,791

6,952,492

9,543,619

248,203

76,627

171,576




CORPORATION

National

Total

INSURANCE

Total

Asset, liability or expense item

Not
mem bers
of F.R.
System

FEDERAL DEPOSIT

Table 107.

PERCENTAGES
Of total assets:
Cash and due from depository institutions..............................................
U.S. Treasury securities and obligations of other U.S. government
agencies and corp ora tion s..................................................................
All other securities ..................................................................................
Loans (including federal funds sold and securities purchased
under agreements to resell) ................................................................
All other a ssets........................................................................................
Total equity capital3 ................................................................................

13.84

13.69

15.16

13.45

20.49

9.29

20.27

20.62

11.86

9.62
10.40

9.78
10.53

8.46
9.96

8.64
10.11

7.91
9.52

13.74
12.21

2.41
4.91

2.33
4.38

4.39
17.77

59.62
6.53
6.81

59.53
6.47
6.92

58.96
7.45
6.72

60.52
7.29
6.81

54.13
7.95
6.44

61.24
3.52
7.50

63.30
9.11
1.88

65.11
7.57
1.14

19.31
46.67
19.97

8.64

8.48

8.41

8.70

9.13

Of total assets other than cash and U.S. Treasury securities:
Total equity capital3 ..............................................................................

8.514

2.414

1.464

23.72

Memoranda
28,738,267
190,731,518
27,525,589

28,091,127
188,162,811
26,486,357

26,402,672
144,140,455
22,577,120

17,394,299
110,111,784
18,614,044

9,008,373
34,028,671
3,963,076

1,688,455
44,022,356
3,909,237

647,140
2,568,707
1,039,232

647,140
2,568,707
1,039,232

0
0
0

Number of banks at end of period ..............................................................

14,738

14,364

5,425

4,448

977

8,939

374

283

91

Note: Refer to footnotes on Table 106.

LIABILITIES
O BANKS
F
1 67




ASSETS AND

Standby letters of credit— total ..................................................................
Time certificates of deposits in denominations of $100,000 or m o r e .........
Other time deposits in amounts of $100,000 or m o re .................................

ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1979 AND DECEMBER 31, 1979
BANKS GROUPED BY INSURANCE STATUS
(Amounts in thousands of dollars)
Decem ber 31, 1979

Jun e 30, 1979
A sse t, liability, or s u rp lu s accou n t item

168

T a b le 108.

Insured

N o n in su red 1

Total

Insured

N on insu red1

Total Assets ..............................................................................................................................................

157,242,653

145,521,512

11,721,141

157,859,312

147,112,481

10,746,831

Cash and due from depository institutions .....................................................................................

2,830,649

2,607,063

223,586

3,140,377

2,929,219

211,158

411,501
7 97 ,3 27
1 ,4 4 7 ,9 6 4 2
173 ,8 57

3 61 ,5 48
7 18 ,9 35
1 ,36 7 ,88 2
158 ,6 98

4 7 3 ,8 4 6
8 7 0 ,5 6 9
1 ,6 4 4 ,0 5 2 2
151 ,9 10

4 25 ,0 07
8 08 ,1 44
1 ,55 8 ,06 8
1 38 ,0 00

C u rrency and c o i n .............................................................................................................................
Dem ana balances with com m e rcia l banks in the United States ...............................................
Other balances with d e posito ry in s titu tio n s ................................... ...............................................
Cash item s in pro cess of collection

4 9,9 5 3
78,3 9 2
8 0,0 8 2 2
1 5,159

4 8,839
6 2 ,425„
85,984
13,910

Securities— to ta l...................................................................................................................................

47,097,348

44,203,348

2,894,000

46,074,243

43,494,247

2,579,996

U .S . Treasury, agency, and corp oration o b lig a tio n s ...................................................................
............... .........................................................................................
..................................................................................................
................................................................................................
...............................................................................................................
Corporate bonds ...............................................................................................................................
O bligations of States and political sub d iv isio n s in the U .S ..........................................................
Other bond s, notes and debentures ..............................................................................................

18,367,853

1,726,983
3,409,454
1,958,324
11,273,0922

17,0 4 5,9 3 6

1,551,395
3,047,227
1,712,440
10,734,874

1 ,32 1 ,91 7

175,588
362,227
245,884
538,2182

1 8,565,349

1,563,546
3,254,881
1,597,005
12,149,9172

1 7,394,228

1,423,345
2,904,333
1,360,848
11,705,702

1,171,121

17,457,654
3,11 7 ,02 2
3,45 9 ,92 2

1 6,675,798
3 ,0 7 1 ,83 3
3 ,24 6 ,26 3

7 81,856
4 5 ,1 8 9
213 ,6 59

16,772,562
2 ,88 9 ,68 0
3 ,33 8 ,51 3

16,129,261
2 ,84 0 ,79 0
3 ,10 6 ,12 9

643,301
48,890
232,384

Corporate sto c k — totcl ....................................................................................................................
................................................................................................................................................
..............................................................................................................................................

493,301
4,201,596

4 ,69 4 ,89 7

381,344
3,782,174

4 ,16 3 ,51 8

111,957
419,422

4 ,50 8 ,13 9

346,793
3,677,046

4 ,02 3 ,83 9

92,693
391,607

Maturing in 1 year and le s s
Maturing in over 1 thru 5y e a rs
Maturing in over 5 thru 10 ye ars
Maturing over 10 y e a rs

Bank
O th e r

531 ,3 79

439,486
4,068,653

140,201
350,548
236,157
444,2152

484,300

Federal funds sold and securities purchased under agreements to resell ..............................

4,193,503

3,864,002

329,501

2,929,750

2,688,582

241,168

Loans, n e t ..............................................................................................................................................

98,898,575

90,870,937

8,027,638

101,351,259

93,869,281

7,481,978

9 4 ,7 4 7 ,5 4 1 2

6 ,96 8 ,11 2

Real estate loans, g ro ss

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

Less: Unearned incom e ...............................................................................................................
Less: Allowance for possible loan losses .................................................................................
Real estate loans, net .................................................................................................................
Construction and land developm ent .....................................................................................
Secured by farm lan d ...............................................................................................................
Secured by residential properties:
Secured by 1- to 4-family residential properties:
Insurea by FHA or guaranteed byVA ..........................................................................
Conventional....................................................................................................................
Secured multifamily (5 or more) residential properties:
Insured by FHA ...............................................................................................................
C onventional....................................................................................................................
Secured by nonfarm nonresidential p rop e rties ...................................................................
Other loans, gross ...........................................................................................................................
Less: Unearned incom e ...............................................................................................................
Less: Allowance for possible loan losses .................................................................................
Other loans, n e t .............................................................................................................................
L oans to financial institutions:

To real estate investment trusts and mortgage com panies ....................................................
To domestic commercial and foreign banks ............................................................................
To other financial institutions ....................................................................................................
Loans fo r purchasing or carryin g secu rities (secured and unsecured):
To brokers and dealers in se curities .........................................................................................
Other loans for purchasing or carrying securities ...................................................................

L oans to finance ag ricultural pro duction (except those secured prim arily by real estate) . . .
C om m ercial and industrial loans (except those secured p rim arily by real e sta te )...................




568,851
209,521
93,969,169
1,764,769
46,528

8 7 ,1 9 9 ,8 2 5

546,429
195,457
86,457,939
1,608,740
37,763

7 ,5 4 7 ,7 1 6

22,422
14,064
7,511,230
156,029
8,765

9 6 ,2 4 4 ,1 2 9

549,733
183,655
95,510,741
1,826,045
44,671

8 9 ,2 7 6 ,0 1 7

529,384
173,180
88,573,453
1,672,333
37,105

20,349
10,475
6,937,288
153,712
7,566

22,093,705
40,194,8782
2,984,128
12,451,901
15,211,632
5,268,380
327,225 2
11,749
4,929,406

21,005,513
35,219,906
2,962,077
12,010,065
14,355,761
4,711,338
288,827
9,513
4,412,998

1,088,192
4,974,9722
22,051
441,836
855,871
557,042
38,3982
2,236
516,408

21,488,284
42,359,3902
2,886,823
12,381,109
15,257,807
6,226,081
370,440
15,123
5,840,518

20,496,935
37,742,289
2,866,818
11,999,096
14,461,441
5,635,742
328,944
10,970
5,295,828

991,349
4,617,1012
20,005
382,013
796,366
590,339
41,496
4,153
544,690

4,165
205,371
83,178
0
2,045
724
2 88 ,5 40

4,155
205,127
83,008
0
1,721

10
244
170
0
324

724
2 81 ,0 03

0
7 ,5 3 7

1,699
228,118
48,013
0
1,929
1,120
4 84 ,0 59

1,689
228,118
47,843
0
1,791

10
0
170
0
138

1,120
475 ,8 46

0
8,213

FEDERAL DEPOSIT INSURANCE CORPORATION

Total

Loans to in divid ua ls fo r h ou se h old, fam ily, and other personal expenditures
(in clu de purchased paper):
.............................................
...............
.................
All other l o a n s .........................................................................................................

749,948
2,561,074
996,890

2 81 ,6 95

9 4,7 5 0

Total net loans and s e c u ritie s .............................................................................................

145,995,923

135,074,285

10,921,638

147,425,502

137,363,528

10,061,974

Bank pre m ise s, fu rniture and fixtures, capital leases, and other assets
representing bank p re m ise s ......................................................................................................
Real estate owned other than bank p rem ises .............................................................................
Investm ent in u n conso lid ated sub sid ia ries and associated c o m p a n ie s ....................................
Other a s s e t s ............................................................................................................................

1 ,44 8 ,95 3
366,611
156,406
2 ,2 5 0 ,6 0 8

1,32 5 ,91 2
331 ,5 93
1 48,046
2,170,611

123,041
35,0 1 8
8,36 0
79,997

1 ,50 1 ,92 4
320 ,8 27
159 ,2 13
2 ,3 8 1 ,7 1 9

1 ,3 8 9 ,1 1 6
2 95 ,1 55
1 50,958
2,2 9 5 ,9 2 3

112,808
25,672
8,255
8 5,796

10,746,831

installment loans to repair and modernize residential property
Other installment loans for household, family, and other personal expenditures
Single-payment loans for household, family, and other personal expenditures

672,015
2,260,278
921,612

376 ,4 45

77,933
300,796
75,278

858,823
2,871,333
1,425,031
3 05 ,9 56

776,860
2,577,044
1,318,908
206 ,5 23

81,963
294,289
106,123
99,433

Total lia b ilitie s and surplus a c c o u n ts ..................................................................................................

157,242,653

145,521,512

11,721,141

157,859,312

147,112,481

Deposits— t o ta l.....................................................................................................................................

143,110,820

132,562,958

10,547,862

141,969,396

140,6 56 ,4 27

132,337,884

66,535,602
5,901,949
60,633,653
74,120,825
2,454,393
1,334,600
1,119,793

1 30 ,1 23 ,7 45

60,842,015
5,186,906
55,655,109
69,281,730
2,439,213
1,332,786
1,106,427

1 0,532,682

5,693,587
715,043
4,978,544
4,839,095
15,180
1,814
13,366

139 ,2 74 ,2 55

59,262,102
5,456,433
53,805,669
80,012,153
2,695,141
1,542,216
1,152,925

1 29,674,702

54,482,515
4,825,465
49,657,050
75,192,187
2,663,182
1,541,281
1,121,901

4,779,587
630,968
4,148,619
4,819,966
31,959
935
31,024

Federal fu nd s purchased and securities sold under agreem ents to repurchase .....................
M ortgage indebtedness and liability fo r capital leases ..............................................................
Other liabilities fo r borrow ed m o n e y .............................................................................................
Other lia b ilitie s ..................................................................................................

1 ,084,858
66,434
1,06 6 ,17 7
1,04 3 ,90 9

1,07 5 ,00 3
65,240
999,444
8 88 ,5 03

9,855
1,194
6 6,733
155,406

1 ,64 4 ,19 7
67,093
2 ,04 3 ,67 2
1 ,02 5 ,75 4

1,643,214
6 5,840
1,959,463
876,263

983
1,253
84,209
149,491

9,867,448

9,631,512
9 ,599,553

Miscellaneous liab ilitie s:

135,591,148

10,781,050

146,750,112

136,882,664

374,956

374,956

0

382,373

382,373

0

Sunilus accounts— t o t a l......................................................................................................................

10,495,499

9,555,408

940,091

10,726,827

5,12 2 ,35 4
4 ,1 8 5 ,74 4
1,187,401

9,847,444

4,519,131
3 ,9 8 0 ,27 4
1 ,056,003

603,223
205,470
131,398

879,383

5 ,05 1 ,83 2
4 ,39 3 ,66 4
1,281,331

4 ,5 2 5 ,58 7
4 ,16 7 ,29 6
1,154,561

526,245
226,368
126,770

1.80
11.68
18.27
65.56
2.69
6 .67

1.79
11.71
18.66
65.10
2.73
6.57

1.91
11.28
13.41
71.3 0
2 .10
8.02

1.99
11.76
17.43
66.06
2.76
6.80

1.99
11.82
17.74
65.64
2.81
6 .69

1.96
10.90
13.11
71.86
2.16
8.18

7 .59

9.24

7.88

7.77

9.39

322

140

463

324

139

S urp lus .......................................................................................................................................
U nd ivided p r o f it s ..............................................................................................................................
Other surp lus reserves .................................................................................................................

PERCENTAGES
Of total assets*
Cash and due from deposito ry in s t it u t io n s ....................................................................................
U .S . Treasury ................................................................................................................................
A ll other s e c u r it ie s .................................................................................
Net loans (including federal fund s sold and secu ritie s purchased under agreem ents to resell) .
A ll other assets ...................................................................................................................................
Total surp lus accounts .......................................................................................................................

O BANKS
F

146,372,198

LIABILITIES

Total lia b ilitie s ........................................................................................................................
Subordinated notes and debentures ...............................................................................................

AND

Savings d e p o sits-to ta l
Subject to transfer by order (interest-brearing)
O th e r
Time deposits-total
Demand d ep osits-tota l
Subject to transfer by order (noninterest-bearing)
O th e r

ASSETS

S a vin gs and tim e d e p o s its — t o t a l ........................................................
...............................................................................................................
...................................................................
.....................................................................................
...................................................................................
...............................................................................................................
............................................................
.....................................................................................................

Of total assets other than cash and U.S. Government obligations:
Total surp lus accounts

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

N um ber of b a n k s .......................................................................................................

7.71
462

r

2 Does not include figures for banks w ho did not file Reports of Condition (42 in June, 53 in Decem ber).
Totals adjusted due to incom plete reporting by som e noninsured banks.

169




1 70

T a b le 109.

ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1974-1979
(Amounts in thousands of dollars)

A sset, liability, or expense item

Dec. 31, 19742

Dec. 31, 19752

Dec. 31, 1976

Dec. 31, 1977

Dec. 31, 1978

Dec. 31, 1979

899,056,643

938,888,209

1,011,273,832

1,137,794,616

1,273,189,105

1,405,665,994

Cash and due from banks— t o ta l...................................................................................................

126,069,289

129,022,793

130,210,127

160,382,169

178,327,313

192,420,607

Cash item s in p ro ce s s of collectio n ..........................................................................................
Dem and balances w ith co m m e rcia l banks in the United S t a t e s ...........................................
A ll other balances w ith d e posito ry in stitu tion s in the U .S . and with banks in
foreign c o u n trie s ......................................................................................................................
Balances with Federal B a n k s .......................................................................................................

4 7 ,2 7 9,7 9 7
3 4 ,3 9 9,4 7 0

4 7 ,3 3 2,7 3 5
3 2,1 6 8,6 6 4

4 8 ,3 6 8,1 2 6
3 3 ,0 2 2,2 4 0

66,4 5 1,2 8 8
3 9 ,2 3 8,4 9 0

7 5,2 9 1,8 0 9
4 2 ,5 7 2,3 2 3

81,933,644
47,940,502

5 ,54 6 ,81 2
2 7,1 1 6,2 1 0
1 1,7 2 7,0 0 0

1 0,387,072
2 6 ,7 7 9,0 6 5
12,355,257

10,664,363
2 5,9 6 4,3 4 0
1 2,191,058

11,3 5 1,6 1 2
2 9 ,3 3 9,1 2 6
14,0 0 1,6 5 3

10,4 9 3,6 1 8
3 4,3 9 8,1 0 7
1 5 ,5 7 1,4 5 6

1 1,703,690
3 2,240,418
18,602,353

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

193,877,525

227,831,583

249,964,940

258,404,575

268,777,856

285,484,061

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

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

88,221,453
49,313,676
132,568,154
15,380,778

Federal funds sold and securities purchased under agreements to r e s e ll..........................

38,944,238

37.361.788

45,855,864

49,881,414

48,755,878

61,065,864

Loans, net ........................................................................................................................................

493,064,162

488,721,442

518,737,329

591,327,780

682,866,654

766,830,747

5 ,87 1 ,66 0
4 98 ,9 35 ,8 22
7 ,2 5 8 ,20 9

6 ,07 0 ,34 4
4 94 ,7 9 1 ,7 8 6
7,48 9 ,88 4

6 ,1 9 5 ,2 7 9
5 24 ,9 32 ,6 08
12,625,341

694,793
5 9 8 ,0 22 ,5 73
14,7 0 2,9 9 6

7 ,71 4 ,70 8
6 9 0 ,5 81 ,3 62
1 7,7 2 6,8 7 0

8 ,958,983
7 75 ,7 89 ,7 30
2 0,532,380

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

506,194,031

502,281,670

537,557,949

612,725,569

708,308,232

796,322,110

Real estate lo a n s— t o t a l .............................................................................................................
' ...................................................................................
................................................................................................................
...............................................................
.............................................
...................................................................
L oans to financial in s t itu tio n s .....................................................................................................
L oans fo r p u rch asin g or carrying s e c u r it ie s ............................................................................
Loans to finance ag ricultural p ro duction and other loans to f a r m e r s ..................................
C om m e rcial and in du strial loans ..............................................................................................
L oans to in d iv id u a ls— t o t a l......................................................... ..................................................
.......................................
..................................................................................................
...........................................................

1 31,739,920

0
6,030,121
74,580,012
7,543,920
43,585,867

1 36,1 96 ,1 54

1 50 ,9 86 ,9 19

1 7 8 ,6 32 ,3 20

2 1 3 ,6 25 ,2 37

27,269,354
8,480,930
118,476,776
5,723,046
53,675,131

2 44,796,237

45,2 0 4,5 1 5
9 ,18 7 ,66 3
1 8,226,897
184,074,531
103,692,681

38,9 6 7,6 6 4
1 0,879,410
20,1 3 8,9 5 2
1 75 ,9 46 ,9 06
1 06 ,8 48 ,7 96

3 5 ,8 4 8,3 2 6
1 5,088,146
2 3 ,2 1 6,3 6 9
178,635,361
118,8 63 ,1 53

36,816,981
17,1 1 0,9 1 8
2 5,7 1 3,0 7 3
197,0 76 ,5 15
141,2 57 ,4 46

4 3,4 5 9,0 0 7
1 4,380,222
2 8 ,1 9 1,7 6 3
2 23 ,2 43 ,8 65
1 67,675,391

4 1,919,383
1 3,501,352
3 1,036,748
2 57,678,468
1 87,789,998

Plus: A llo w ances fo r p o ssible loan lo sses ...............................................................................
Loans, t o t a l........................................................................................................................................
Plus: Unearned incom e on loans ..............................................................................................

Loans gross

Construction and land development
Secured by farm land
Secured by 1- to 4-family residential properties
Secured by multi-family (5 or more) residential p rop e rties
Secured by nonfarm nonresidential properties

To purchase private passenger automobiles on installment b a s is
Credit cards and related plans
To purchase mobile homes (excluding travel trailers)
All other installment loans for household, family and other personal
expenditures .............................................................................................................................
Single payment loans for household, family and other personal
expenditures .............................................................................................................................

32,942,938
11,126,994
9,001,883
27,631,598
22,989,268

0
6,370,212
77,029,917
5,899,737
46,896,288

33,509,251
12,351,630
8,667,742
29,099,650
23,220,523

17,347,914
6,718,186
81,110,248
4,440,412
41,370,159

39,824,875
14,430,339
8,737,928
31,549,012
24,320,999

21,389,331
7,730,264
96,757,037
4,907,100
47,848,588

49,861,799
18,475,596
9,125,428
35,852,029
27,942,594

61,051,302
24,496,572
9,734,878
41,853,614
30,539,025

32,929,259
8,562,893
137,346,068
6,305,464
59,652,553

67,804,976
29,958,653
10,658,711
47,139,893
32,227,763

A ll other lo a n s ........................................................................................................................................

14,067,824

13.303.788

14,919,675

1 6,118,316

1 7,732,747

19,599,924

Total loans and s e c u ritie s ..............................................................................................................

725,885,925

753,914,813

814,558,133

899,613,769

1,000,400,388

1,113,380,672




FEDERAL DEPOSIT INSURANCE CORPORATION

Total a s s e ts ..........................................................................................................................................

Lease financing receivables .......................................................................................
Bank prem ises, furniture and fixtures, and other assets representing bank
p r e m is e s ....................................................................................................................
Real estate ow ned other than bank p r e m is e s ..........................................................
All other a s s e t s .............................................................................................................

3 ,05 6 ,75 5

4 ,41 3 ,01 4

5 ,1 1 9 ,28 0

5,810,261

7 ,65 7 ,99 6

9 ,951,916

1 4,288,523
8 11,239
2 8,9 4 4,9 1 2

15,598,231
1,90 9 ,55 5
3 4,0 2 9,8 0 3

1 6,702,977
2,894,011
4 1,7 8 9,3 0 4

1 8,3 4 4,5 9 5
3 ,09 5 ,49 6
5 0 ,5 4 8,3 2 6

2 0,5 5 1,0 9 7
2,475,901
6 3 ,7 7 6,4 1 0

2 2,605,926
2 ,085,954
6 5,220,919

1,405,665,994

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

899,056,643

938,888,209

1,011,273,832

1,137,794,616

1,273,189,105

B u sin e ss and p e rso n a l d e p o s its — to tal .................................................................
Individuals, p artnerships, and co rp o ra tio n s— dem and .....................................
Individuals, p artnerships, and co rp o ra tio n s— s a v in g s .......................................
...........................................
1 ................................
Individuals, pa rtn e rsh ips, and co rp o ra tio n s — tim e ...........................................
D ep osits accum ulated fo r paym ent of personal loans— t im e ............................
Certified and o ffic e rs ’ checks, tra vele rs’ ch ecks, letters of credit— demand ..

606,374,826

647,239,798

697,387,703

777,177,835

857,642,324

933,830,811

2 37 ,0 69 ,4 68
1 36.074.273

2 4 7 ,8 69 ,2 90
1 60.653.632

2 5 6 ,8 06 ,6 60
1 97,6 60 ,9 54

2 87 ,8 43 ,5 95
2 1 5 ,1 97 ,7 08

3 09 ,3 4 7 ,9 9 8
2 16 ,5 0 3 ,4 4 6

334,126,108
203.132.354

2 22,4 82 ,6 03
3 69,690
10,378,792

2 27 ,6 91 ,7 85
279,512
10,7 4 5,5 7 9

2 31 ,2 11 ,6 73
144,385
11,564,031

2 5 9 ,8 96 ,4 27
100,303
14,1 3 9,8 0 2

3 1 6 ,1 46 ,2 34
109,598
15,5 3 5,0 4 8

380,623,591

G overnm en t d e p o s its — t o t a l .....................................................................................
United States G overnm ent— d e m a n d ...................................................................
United States G overnm ent— sa v in g s1 .................................................................
United States G overnm ent— t i m e ..........................................................................
States and p o litical s u b d iv is io n s — dem and ........................................................
States and p o litical s u b d iv is io n s — s a v in g s1 ........................................................
States and political s u b d iv is io n s — t i m e ...............................................................

74,215,373

70,707,733

71,946,030

84,641,977

88,240,496

86,768,339

4 ,82 2 ,29 9

3,126,631

5 00,147
1 8,706,776

588,481
18,8 7 9,1 8 0

5 0,186,151

48,113,441

3 ,04 2 ,57 2
56,735
686,053
1 7,989,214
6 ,0 5 0 ,85 7
4 4 ,1 2 0,5 9 9

7 ,3 4 1 ,31 8
5 8,209
828 ,8 52
19,2 0 8,7 7 3
4 ,78 9 ,44 2
5 2 ,4 1 5,3 8 3

2 ,7 2 5 ,86 2
8 2,733
8 6 6 ,4 99
1 9,2 0 2,1 7 6
4 ,29 8 ,65 4
6 1,0 6 4,5 7 2

2,406,844
72,882
949,192
18,932,709
3 ,794,443
6 0,612,269

A ll other d e p o s its — t o t a l ............................................................................................
....................................................................................................................
....................................................................................................................
..........................................................................................................................

43,322,732
0
22,199,311

44,566,366
113,672
16,913,114

61,593,152

50,222,044
28,235
17,203,654

67,453,933

53,474,157
43,766
16,983,805

70,501,728

60,138,935
50,347
13,816,743

T o tal lia b ilit ie s and eq u ity ca p ita l

Individuals and nonprofit organizations-savings
Corporations and other profit organizations-savings

0

0

65,522,043

160.653.632
0

0
0

63,078,870

40,800,386
0
21,998,972

189,028,878
8,632,076

204,453,839
10,743,869

205,568,072
10,935,374

193,337,392
9,794,962

0

15,948,758

74,006,025

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

830,926,885

378,755,532
220,073,594
330,444,619

929,273,745

1,016,384,548

400.,285,241
226,928,599
395,170,708

1,094,605,175

M is c e lla n e o u s lia b ilit ie s — total ...............................................................................
Federal fund s purchased and secu rities sold under agreem ents to repurchase
Interest bearing dem and notes issued to the U .S. Treasury and other
liabilities fo r borrow ed m oney ..........................................................................
M ortgage indebtedness and liability fo r capitalized le a s e s ................................
All other lia b ilit ie s ....................................................................................................

88,107,647

87,786,577

102,975,877

123,501,267

163,522,078

207,863,851

5 1,2 1 7,4 3 9

52,1 8 9,6 4 7

7 0 ,2 9 8,6 2 6

8 2 ,9 5 2,4 9 5

9 1,2 9 1,6 7 0

112,149,032

4 ,8 1 4 ,56 0
7 25,190
31,3 5 0,4 5 8

4 ,6 0 4 ,2 5 9
775,396
3 0 ,2 1 7,2 7 5

5 ,08 0 ,64 7
8 04,996
2 6 ,7 9 1,6 0 8

6 .69 4 ,41 3
1,03 8 ,85 7
3 2 ,8 1 5,5 0 2

2 2 ,7 9 1,8 1 3
2 ,0 3 5 ,0 2 9
4 7 ,4 0 3 ,5 6 6

27,875,285
2,106,731
65,732,803

1,302,469,026

Demand
Savings
Time

746,112,242

780,746,889

431.553.354
207,050,026
456,001,795

To tal lia b ilit ie s (e x c lu d in g su b o rd in a te d notes and d e b e n tu re s)................

834,219,889

868,533,466

933,902,762

1,052,775,012

1,179,906,626

S u b o rd in a te d n otes and d e b e n t u r e s ...................................................................

4,258,989

4,398,892

5,122,527

5,739,194

5,864,838

5,955,812

Equity c a p ita l— to tal ..............................................................................................
Preferred s to c k — par v a lu e ................................................................................
Com m o n s to c k — par v a lu e ................................................................................
S u r p lu s ..................................................................................................................
Undivided profits and reserve fo r conting encies and other capital
reserves ...........................................................................................................

60,577,765

65,955,851

72,248,543

79,280,410

87,417,641

97,241,158

4 3,4 6 0
1 4,788,893
25,3 1 2,5 7 4

47,881
15,565,026
26,7 0 6,0 5 3

67,328
1 6,221,264
28,8 9 4,3 2 3

98,791
17,2 6 5,2 3 7
3 1 ,0 8 5,4 9 2

113,851
1 8,1 5 7,9 9 7
3 3 ,2 0 2,5 5 7

125,890
20,273,743
3 5,328,623

2 0,4 3 2,8 3 8

23,636,891

2 7,0 6 5,6 2 8

30,8 3 0,8 9 0

3 5 ,9 4 3 ,2 3 6

4 1,512,902




LIABILITIES O BANKS
F

To tal d e p o sits .............................................................................................................
....................................................................................................................
......................................................................................................................
..........................................................................................................................

0

ASSETS AND

Demand
Savings'
Time

136.074.273

ro

ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1974-19 7 9 -C O N T IN U E D
(Amounts in thousands of dollars)

T a b le 109.

Dec. 3 1, 19742

Dec. 31, 19752

Dec. 31, 1976

Dec. 31, 1977

Dec. 31, 1978

Dec. 31, 1979

PERCENTAGES
Of total assets:
Cash and due from deposito ry in s t itu tio n s ...................................................................................
U .S . Tre a su ry secu ritie s and o b lig atio n s of other U .S . G overnm en t agencies
and c o rp o ra tio n s ...........................................................................................................................
A ll other secu ritie s ...........................................................................................................................
L oans (including federal fu nd s sold and secu ritie s p u rch ase s under agreem ents
to resell) ........................................................................................................................................
A ll other a s s e t s .................................................................................................................................
Total equity c a p i t a l ...........................................................................................................................

14.02

13.74

12.88

14.10

14.01

13.69

9.23
12.34

12.17
12.09

12.97
11.74

11.58
11.13

1 0.3 7
10.74

9.78
10.53

59.83
4 .5 9
6 .74

56.68
5.31
7.02

5 6.44
5 .96
7.14

5 6.9 4
6 .25
6 .97

5 8.0 7
6.81
6 .87

59.53
6.47
6 .92

Of total assets other than cash and U.S. Treasury securities:
Total equity capital ...........................................................................................................................
N um ber of banks at end of period

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

8 .40

9.05

9.21

8 .99

8 .70

8 .64

1 4,228

14,384

14,411

1 4,412

14,391

14,364

1 Not available before 1976.
2 W here po ssib le, figu res are restated to reflect current reporting requirem ents. For am ounts on an “ as re ported” basis, see Annual Reports of p rior years.




FEDERAL DEPOSIT INSURANCE CORPORATION

A sse t, liability, or expense item

T a b le 110.

ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES),
UNITED STATES AND OTHER AREAS, 1974-1977
Dec. 31, 1974

Total a s s e ts

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

Cash and due from b a n k s ...............................................................................................................
S e cu ritie s — t o t a l ..............................................................................................................................
............................................................................................................
...............................................
.....................................................................
........................................................................................

Federal fu n d s sold and secu ritie s purchased under agreem ents to resell ..............................

........................................
........................................................................
Total lia b ilitie s and equity capital .....................................................
Total d e p o s it s .......................................................................
Federal fu n d s purchased and secu ritie s sold under agreements to re p u rc h a s e ............
Other liabilitie s fo r borrow ed m oney .................................................
M ortgage indebtedness .............................................................
A ccep tan ces executed and outstanding ...............................................
Other liabilities ......................................................................
Total liabilities (excluding sub ordinated notes and d e b e n tu re s) .......................
Sub ordin ated notes and d e b e n tu re s ..................................................
Reserves on loans and se cu ritie s — total2 ..............................................
Reserve for losses on lo a n s .......................................................
Other reserves on lo a n s ...........................................................
Reserves on securities ............................................................
Equity capital— t o t a l .................................................................

Jun e 30, 1977

Dec. 31, 1 9771

1,045,972,427

1,095,388,957

1,182,390,845

1,228,366,375

1,339,393,026

1 78 ,2 95 ,2 59
1 97 ,0 19 ,3 18

1 8 9 ,4 06 ,9 97
2 3 1 ,5 27 ,4 34

2 03 ,7 7 2 ,4 4 9
2 54 ,3 83 ,3 82

2 0 8 ,2 83 ,7 72
259,474,871

2 42,9 83 ,1 42
264,5 25 ,7 96

96,026,151
35,818,251
113,019,592
10,542,996
1,853,806
7,265,000

80,963,492
33,281,405
100,873,178
10,710,644
5,698,715

3 9 ,0 0 5,1 0 3

36,992,511

45,861,131

40,899,161

4 9,8 4 5,0 3 3

5 8 0 ,5 96 ,6 23
3 ,2 7 3 ,6 8 0
1 4,6 7 4,9 9 5
828 ,8 53
7 50 ,2 18
1 0,6 3 2,7 4 7
2 0,895,631

5 8 6 ,0 55 ,7 73
4 ,0 5 4 ,8 1 2
16,054,291
1,93 5 ,83 9
7 89 ,7 18
7 ,0 9 5 ,98 3
21 ,4 7 5 ,5 9 9

6 20 ,8 66 ,8 54
6 ,3 4 7 ,8 3 9
6 2 7 ,2 14 ,6 93
5 ,81 6 ,43 4
17,2 4 2,9 3 0
2 ,97 4 ,07 3
954,500
11,8 6 4,7 8 4
1 8,6 5 4,3 0 8

6 5 6 ,2 24 ,1 03
6 ,67 4 ,63 8
662,898,741
6 ,1 8 6 ,76 5
17,9 4 4,3 5 6
3 ,1 6 2 ,19 2
941,211
1 4,433,352
2 0 ,8 1 6,5 9 2

7 15,851,991
6,894,344
722,7 46 ,3 35
6,977,301
19,010,491
3,13 4 ,04 2
987,244
1 4,280,877
2 1,797,109

1,045,972,427

1,095,388,957

1,182,390,845

1,228,366,375

1,339,393,026

8 71 ,2 2 5 ,1 9 4
5 0,9 8 0,0 6 2
8 ,3 6 8 ,1 5 9
725 ,1 66
1 4 ,1 3 1,2 5 7
2 8,4 2 6,9 3 8
9 73 ,8 5 6 ,7 7 6
4 ,2 6 1 ,3 7 3
8 ,7 7 9 ,6 0 7

9 15 ,8 5 6 ,0 3 9
5 2 ,6 0 9 ,0 5 0
7 ,934,301
774 ,4 50
11,2 9 1,8 6 7
2 9 ,0 3 1,1 8 7
1 ,0 1 7 ,49 6 ,8 94
4 ,4 2 2 ,4 8 4
9 ,1 9 3 ,3 7 5

9 91 ,9 1 3 ,0 0 6
7 0,4 3 5,4 9 4
9 ,51 0 ,10 8
826 ,1 96
1 2,0 4 8,1 7 9
2 0,1 7 1,6 0 9
1 ,1 0 4 ,90 4 ,5 92
5 ,2 2 0 ,56 6

1 ,02 2 ,06 2 ,0 67
75,8 2 0,8 1 5
11,563,041
8 56 ,4 39
14,5 9 4,4 6 7
22,3 3 4,8 8 0
1 ,14 7 ,23 1 ,7 09
5 ,45 0 ,46 5

1,11 6 ,61 7 ,5 56
83,3 1 5,0 0 6
1 3,146,839
1,048,297
14,432,321
2 5,711,530
1,25 4 ,27 1 ,5 49
5 ,830,565

5 9,074,671

6 4 ,2 7 6,2 0 4

7 2 ,2 6 5 ,6 8 7

75,684,201

7 9,290,912

8,466,353
144,446
168,808

96,874,136
34,323,582
103,588,597
f 9,594,671
t- 1,750,989
8,251,407

97,233,796
34,389,521
108,720,777
9,864,455
1,809,269
7,457,053

51,886,435
31,088,271
96,800,855
9,201,132
8,042,625

8,791,680
212,260
189,435

LIABILITIES O BANKS
F

Loans, n e t .........................................................................................................................................
Plus: Reserve fo r p o ssib le loan lo s se s 2 ..................................................................................
Loans, t o t a l.......................................................................................................................................
D irect lease f in a n c in g .....................................................................................................................
Bank p re m ise s, furniture and fixtures, and assets representing bank prem ises ....................
Real estate ow ned other than bank p r e m is e s ..............................................................................
Investm ents in u n con so lid ated su b sid ia rie s and associated com panies ................................
Cu sto m e rs liability on accep tances o u ts ta n d in g
Other assets

Dec. 31, 1976

ASSETS AND

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

Dec. 31, 1975

MEMORANDA

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

S tandby letters of credit outstanding3
Tim e certificates of $ 1 0 0,00 0 or m ore:3
Tim e certificates of d e p o s it
Other tim e deposits
N um ber of banks

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

For more detailed 1977 data, see Assets and Liabilities, Commercial and Mutual Savings
^Changes in the reporting of loan losses beginning in 1976 are discussed on page 160.
Data not available prior to 1976.

14,228

14,384

17,1 9 8,8 3 5

2 0,043,593

1 12 ,0 53 ,7 45
2 4 ,5 0 3,5 7 2

1 35,756,267
2 6,3 6 6,5 6 8

14,411

14,441

14,412

Banks, December 31, 1977.
173




1 6 ,4 1 0,4 2 0
114,172,181
2 3,3 0 7,9 8 5

A S S E T S A N D L IA B IL IT IE S O F IN S U R E D C O M M E R C IA L B A N K S (D O M E S T IC A N D F O R E IG N O F F IC E S ),
U N IT E D S T A T E S A N D O T H E R AR E A S , D E C E M B E R 31, 1 9 7 8 1

1 74

Tab le 110A.

Banks with foreign offices
Domestic only
banks and
reporting
branches

Foreign offices
and Edge and
agreement
subsidiaries

Domestic offices

Consolidated
reports

Consolidated
Total — Columns 1
and 4

608,421,045

847,630,479

1,508,217,207

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 ta l..........................................................................................................

174,474,133

7,724,550

94,121,950

101,846,500

276,320,633

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

U .S. Treasury securities ..........................................................................................
Obligations of U.S. Government agencies and co rp o ra tio n s..................................
Obligations of States and political s u b d iv isio n s.......................................................
Other bonds, notes, and d e b e n tu res.......................................................................
Corporate s t o c k ........................................................................................................
Trading account s e c u ritie s .......................................................................................

Federal funds sold and securities purchased under agreements to re se ll

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

Loans, net ....................................................................................................................

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

Bank premises, furniture and fixtures, and other assets representing bank premises
Real estate owned other than bank premises




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

199,066

23,809,210

24,008,276

48,927,710

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

C O RPO RA TIO N

Less: reserve for possible loan lo s s e s .....................................................................
Loans, total ..................................................................................................................
Les ' unearned income on lo a n s .............................................................................
Loans, gross ................................................................................................................
Real estate loans (including only loans secured primarily by real estate) ..............
Loans to financial institutions .................................................................................
To real estate investment trusts and mortgage c o m p a n ie s ................................
To commercial banks in the U .S ...........................................................................
To U.S. branches and agencies of foreign banks ..........................................
To other commercial banks in the U .S .............................................................
To banks in foreign countries
To foreign branches of other U.S. b a n k s
To other banks in foreign co u n trie s .................................................................
To finance companies in the U .S
To other financial in stitu tio n s
Loans for purchasing or carrying securities (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 (d o m ic ile ).....................................................................
Loans to individuals for household, family and other personal expenditures
All other loans
Loans to foreign governments and official institutions ......................................
Other lo a n s ............................................................................................................
Direct lease fin a n c in g ....................................................................................................

24,919,434
366,064,370

INSURANCE

239,209,434

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

DEPOSIT

660,586,728

FEDERAL

Total Assets..................................................................................................................
Cash and due from depository institutions .................................................................
Cash items in process of collection and unposted debits ......................................
Dtemand balances with commercial banks in the U .S ...............................................
Time and savings balances with commercial banks in the U .S ...............................
Balances with other depository institutions in the U .S .............................................
Balances with banks in foreign co u n trie s.................................................................
With foreign branches of other U.S. b a n k s .........................................................
With other banks in foreign countries .................................................................
Balances with central b a n k s .....................................................................................
Balances with Federal Reserve banks .................................................................
Balances with other central b a n k s .......................................................................
Currency and coin ....................................................................................................

Investments in unconsolidated subsidiaries and associated co m p a n ie s ....................

47,549

-1 ,3 3 7 ,5 6 6

2,361,274

1,023,708

1,071,257

Customer’s liability of acceptances outstanding .......................................................

343,721

3,797,994

18,657,383

22,455,377

22,799,098

Other a s s e t s .................................................................................................................

8,708,577

-1 3 ,6 0 9 ,2 4 5

Total liabilities and equity c a p ita l............................................................................

660,586,728

239,209,434

Total d e p o s its ..........................................................................................................
Individuals, partnerships and c o rp o ra tio n s.......................................................
Demand ...........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
U.S. G overnm e n t................................................................................................
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 d e p o s its ................................................................................................
Demand ..........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
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 m o n e y ..................
Mortgage indebtedness ..............................................................................................
Acceptances executed and o u tsta n d in g ......................................................................
Other lia b ilitie s .............................................................................................................
Total liabilities (excluding subordinated notes and debentures) ............................
Subordinated notes and debentures .........................................................................

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
6,652,697
21,137,970
6,218,268
905,452
344,036
7,591,874
609,399,584
2,575,147

Equity capital— t o ta l..................................................................................................

28,127,286

1,508,217,207

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
11,582,729
70,263,366
26,750,587
1,171,902
22,677,332
23,923,853
805,217,621
3,583,523

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
18,235,426
91,401,336
32,968,855
2,077,354
23,021,368
31,515,727
1,414,617,205
6,158,670

48,611,997

23,691

38,805,644

38,829,335

87,441,332

O BA NKS
F

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
8,837,414
70,153,700
16,569,445
1,128,767
18,839,318
19,823,468
566,325,710
3,289,691

LIABILITIES

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
2,745,315
109,666
10,181,142
43,135
3,838,014
4,100,385
238,891,911
293,832

AND

19,418,709

847,630,479

ASSETS

33,027,954

608,421,045

^

MEMORANDA
Standby letters of credit outstan d in g..........................
Time certificates of $100,000 or more:
Time certificates of deposits ..................................................................................
Other time deposits ................................................................................................

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

Number of b a n k s ........................................................................................................
Number of reporting b ra n ch e s ....................................................................................

14,236
19

155

14,391
19

_

_

-

-

1 Totals for items that are not explicitly reported are derived mathematically.
N/A Not available.




CJI

A S S E T S A N D LIA B ILIT IE S O F IN S U R E D C O M M E R C IA L B A N K S (D O M E S T IC A N D F O R E IG N O F F IC E S ),
U N IT E D S T A T E S A N D O TH E R A R E A S , D E C E M B E R 31, 1 9 7 9 1

1 76

Ta b le 110B.

Banks with foreign offices
Domestic only
banks and
reporting
branches

Foreign offices
and Edge and
agreement
subsidiaries

Domestic offices

Consolidated
reports

Consolidated
Total — Columns 1
and 4

688,210,246

979,337,892

1,692,078,001

114,608,166
1,785,860
5,186,135
1,718,509
68,539
102,042,099
26,089,816
75,952,283
3,518,875
420,761
3,098,114
288,149

115,199,762
63,722,234
19,812,146
901,042
56,949
2,723,432
994,385
1,729,047
20,670,745
20,629,848
40,897
7,313,214

229,807,928
65,508,094
24,998,281
2,619,551
125,488
104,765,531
27,084,201
77,681,330
24,189,620
21,050,609
3,139,011
7,601,363

306,601,551
83,624,880
53,118,490
5,677,772
2,706,536
106,811,042
N/A
N/A
35,800,185
32,661,174
N/A
18,862,646

Securities— to ta l..........................................................................................................

180,654,263

8,676,287

104,593,025

113,269,312

293,923,575

U .S. Treasury securities .........................................................................................
Obligations of U.S. Government agencies and co rp o ra tio n s..................................
Obligations of States and political su b d iv is io n s .......................................................
Other bonds, notes, and d e b e n tu res.......................................................................
Corporate stock ........................................................................................................
Trading account s e c u ritie s .......................................................................................

57,941,042
33,884,968
84,289,498
3,584,790
491,907
462,058

205,023
49,102
475,313
6,631,241
169,430
1,146,178

30,280,411
15,428,601
48,042,973
1,668,164
1,003,196
8,169,680

30,485,434
15,477,703
48,518,286
8,299,405
1,172,626
9,315,858

88,426,476
49,362,671
132,807,784
11,884,195
1,664,533
9,777,916

36,013,875

354,941

24,907,823

25,262,764

61,276,639

Loans, net ....................................................................................................................

392,337,889

160,104,659

371,417,294

531,521,953

923,859,842

Less: reserve for possible loan lo s s e s .....................................................................
Loans, total ..................................................................................................................
Less: unearned income on lo a n s .............................................................................
Loans, gross ................................................................................................................
Real estate loans (including only loans secured primarily by real estate) ..............
Loans to financial institutions .................................................................................
To real estate investment trusts and mortgage c o m p a n ie s ................................
To commercial banks in the U .S ...........................................................................
To U.S. branches and agencies of foreign banks ..........................................
To other commercial banks in the U .S .............................................................
To banks in foreign countries .............................................................................
To foreign branches of other U.S. b a n k s .........................................................
To other banks in foreign co u n trie s .................................................................
To finance companies in tne U .S ..........................................................................
To other financial institu tio n s...............................................................................
Loans for purchasing or carrying securities (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 (d o m ic ile ).....................................................................
Loans to individuals for household, family and other personal expenditures
All other loans ..........................................................................................................
Loans to foreign government and official institutions ........................................
Other lo a n s ............................................................................................................
Direct lease fin a n cin g ....................................................................................................

3,944,967
396,282,856
13,867,819
410,150,675
150,244,567
4,032,783
906,529
530,572
N/A
N/A
279,637
N/A
N/A
534,672
1,781,373
2,381,916
26,136,821
99,500,357
N/A
N/A
121,099,677
6,754,554
N/A
N/A
1,895,218

224,756
160,329,415
1,390,457
61,719.872
5,347,419
27,894,848
103,893
537,932
256,091
281,841
20,337,528
320,276
20,017:252
294,524
6,620,971
1,072,287
422,273
94,477,628
5,059,717
89,417,911
5,532,886
26,972,531
23,510,562
3,461,969
1,823,521

5,013,752
376,431,046
6,594,843
383,025,889
93,699,271
37,620,545
6,538,057
3,739,925
1,396,410
2,343,515
7,583,348
314,471
7,268,877
8,891,137
10,868,078
11,021,335
4,882,787
157,148,759
148,717,088
8,431,671
66,085,494
12,567,698
1,842,733
10,724,965
8,047,517

5,238,508
536,760,461
7,985,300
544,745,761
99,046,691
65,515,393
6,641,950
4,277,857
1,652,501
2,625,356
27,920,876
634,747
27,286,129
9,185,661
17,489,049
12,093,622
5,305,060
251,626,386
153,776,804
97,849,582
71,618,380
39,540,229
25,353,295
14,186,934
9,871,038

9,183,475
933,043,317
21,853,119
954,896,436
249,291,258
69,548.176
7,548,479
4,808,429
N/A
N/A
28,200,513
N/A
N/A
9,720,333
19,270,422
14,475,538
31.441,881
351,126,743
N/A
N/A
192,718,057
46,294,783
N/A
N/A
11,766,256

Bank premises, furniture and fixtures, and other assets representing bank premises

13,518,925

973,800

9,057,121

10,030,921

23,549,846

892,217

122,099

1,117,304

1,239,403

2,131,620

Real estate owned other than bank premises




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

CO RPO RA TIO N

Federal funds sold and securities purchased under agreements to resell..............

INSURANCE

291,127,646

76,793,623
18,116,786
28,120,209
3,058,221
2,581,048
2,045,511
N/A
N/A
11,610,565
11,610,565
N/A
11,261,283

DEPOSIT

712,740,109

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 co u n trie s.................................................................
With foreign branches of other U.S. b a n k s .........................................................
With other banks in foreign countries .................................................................
Balances with central b a n k s .....................................................................................
Balances with Federal Reserve banks .....................................................................
Balances with other central b a n k s ...........................................................................
Currency and coin ....................................................................................................

FEDERAL

Total Assets..................................................................................................................

Investments in unconsolidated subsidiaries and associated co m p a n ie s ....................

42,259

517,763

552,626

1,070,389

1,112,648

Custom er’s liability of acceptances outstanding ........................................................

402,896

6,756,150

25,398,900

32,155,050

32,557,946

27,918,874

25,109,134

35,298,078

688,210,246

979,337,892

1,692,078,001

Total d e p o sits...........................................................................................................
Individuals, partnerships and c o rp o ra tio n s........................................................
Demand ...........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................
U.S. G overnm en t.................................................................................................
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 d e p o s its ................................................................................................
Demand ...........................................................................................................
Savings ...........................................................................................................
T im e .................................................................................................................

615,266,936
538,328,449
178,741,370
134,100,569
225,486,510
1,863,548
1,417,407
49,591
396,550
56,895,859
13,598,401
3,176,754
40,120,704
211,233
40,226
954
170,053
9,752,594
7,883,540
6,321
1,682,733
448,537
249,019
0
199,518
1,091,858
738,333
20,881
332,644

272,493,380
87,895,077
N/A
N/A
N/A
215,333
N/A
N/A
N/A
290,247
N/A
N/A
N/A
36,769,246
N/A
N/A
N/A
17,936,120
N/A
N/A
N/A
126,247,938
N/A
N/A
N/A
N/A
N/A
N/A
N/A

475,307,831
376,165,099
154,800,406
68,662,288
152,702,405
1,553,503
980,947
21,155
551,401
26,150,452
5,280,004
608,035
20,262,413
6,846,690
2,110,900
20,720
4,715,070
45,343,782
40,077,903
355
5,265,524
10,199,011
8,924,042
169
1,274,800
N/A
N/A
N/A
N/A

747,801,211
464,060,176
N/A
N/A
N/A
1,768,836
N/A
N/A
N/A
26,440,699
N/A
N/A
N/A
43,615,936
0
0
0
63,279,902
0
0
0
136,446,949
N/A
N/A
N/A
N/A
N/A
N/A
N/A

1,363,068,147
1,002,388,625
N/A
N/A
N/A
3,632,384
N/A
N/A
N/A
83,336,558
N/A
N/A
N/A
43,827,169
N/A
N/A
N/A
72,852,496
N/A
N/A
N/A
136,895,486
N/A
N/A
N/A
1,091,858
N/A
N/A
N/A

6,854,858

3,139,419

9,049,294

12,188,713

19,043,571

24,801,700

197,856

87,347,332

87,545,188

112,346,888

Interest-bearing demand notes and other liabilities for borrowed m o n e y ..................

5,933,394

11,673,614

21,919,296

33,592,910

39,526,304

Mortgage indebtedness ..............................................................................................

900,998

43,478

1,204,973

1,248,451

2,149,449

Acceptances executed and o u tstan d in g ......................................................................

403,221

5,825,332

26,612,866

32,438,198

32,841,419

Federal funds purchased and securities sold under agreements to repurchase

Other lia b ilitie s .............................................................................................................

9,371,013

597,028

28,684,160

29,281,188

38,652,201

Total liabilities (excluding subordinated notes and debentures) ............................

656,677,262

290,830,688

641,076,458

931,907,146

1,588,584,408

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

2,617,712

296,958

3,338,100

3,635,058

6,252,770

Equity capital — total .................................................................................................

53.445.135

0

43,795,690

43,795,690

97,240,825

Standby letters of credit ou tstan d in g ..........................................................................

3,228,477

6,686,660

24,816,081

31,502,741

34,731,218

Time certificates of $100,000 or more:
Time certificates of deposits ..................................................................................
Other time deposits .................................................................................................

79,583,973
7,889,601

N/A
N/A

107,330,684
18,046,394

N/A
N/A

N/A
N/A

Number of b a n k s .........................................................................................................
Number of reporting b ra n ch e s....................................................................................

14,200
19

164

14,364
19

Subordinated notes and debentures

MEMORANDA

'Totals for items that are not explicitly reported are derived mathematically.
NOTE: N /A —

Not Available.




O BANKS
F

Certified and officers checks, travelers checks, and letters of credit sold for cash . . .

LIABILITIES

-2 ,8 0 9 ,7 4 0

291,127,646

AND

10,188,944

712,740,109

ASSETS

Other a s s e t s .................................................................................................................

Total liabilities and equity c a p ita l............................................................................

A S S E T S A N D L IA B IL IT IE S O F IN S U R E D M U T U A L S A V IN G S B A N K S IN T H E U N IT E D S T A T E S (S T A T E S A N D O T H E R A R E A S ),
D E C E M B E R C A LL D A TES , 197 4-1 979

1 78

Tab le 111.

(Am oun ts in th ousan ds of do llars)
Dec. 31, 1976

Dec. 31, 1977

Dec. 31, 1978

Dec. 31, 1979

Total A sse ts................................................................................................................................

95,589,401

107,280,765

120,839,827

132,201,371

142,352,807

147,112,481

Cash and due from depository institutions...........................................................................

2,053,353

2,195,390

2,188,926

2,214,478

3,570,970

2,929,219

Currency and c o in ................................................................................................................
Demand balances with commercial banks in the United S t a t e s ........................................
Other balances with depository institutions .......................................................................
Cash items in process of collection ...................................................................................

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

425,007
808,144
1,558,068
138,000

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

22,684,614

30,421,034

37,984,627

42,219,724

43,546,458

43,494,247

U.S. Treasury, agency, and corporation obligations .............................................................
...............................................................................................
.........................................................................................
....................................... ............................................
........................................................................................................
Corporate b o n d s ......................................................................................................................
Obligations of States and political subdivisions in the U .S .....................................................
Other bonds, notes, and debentures .....................................................................................
Corporate stock— t o t a l............................................................................................................
....................................................................................................................................
....................................................................................................................................

5,967,835

712,274
1,604,165
694,251
2,957,145

9,468,682

1,312,116
2,761,242
1,167,218
4,228,106

13,194,506

1,981,205
3,237,461
1,383,006
6,592,834

15,496,605

1,857,506
3,427,509
1,751,417
8,460,173

16,215,435

1,371,969
3,270,419
1,517,745
10,055,302

17,394,228

1,423,345
2,904,333
1,360,848
11,705,702

10,560,303
882,620
1,856,557
3,417,299

13,503,561
1,488,631
2,329,685
3,630,475

15,781,623
2,301,574
3,019,191
3,687,733

16,449,941
2,770,854
3,503,057
3,999,267

16,376,504
3,297,215
3,587,862
4,069,442

16,129,261
2,840,790
3,106,129
4,023,839

Maturing in 1 year and less
Maturing in over 1 thru 5years
Maturing in over 5 thru 10 years
Maturing over 10 years

B an k
Other

Federal funds sold and securities purchased under agreements to re s e ll............................

Less: Unearned income
Less: Allowance for possible loan losses
Real estate loans, n e t
Construction and land development

Other loans, g ro s s ..................................................................................................................

Less: Unearned income ......................................................................................................
Less: Allowance for possible loan losses ...........................................................................
Other loans, n e t ..................................................................................................................
Loans to financial institutions:
To real estate investment trusts and mortgage companies ..........................................
To domestic commercial and foreign banks ...................................................................
To other financial institutions .........................................................................................
Loans for purchasing or carrying securities (secured and unsecured):
To brokers and dealers in securities ...............................................................................
Other loans for purchasing or carrying securities ........................................................

Loans to finance agricultural production (except those secured primarily by real estate) .
Commercial and industrial loans (except those secured primarily by real estate) ............
Loans to individuals for household, family, and other personal expenditures
(include purchased paper):
....................................
........
............
All other lo a n s ......................................................................................................................

installment loans to repair and modernize residential property
Other installment loans for household, family, and other personal expenditures
Single-payment loans for household, family, and other personal expenditures

Total net loans and securities.......................................................................................




897,063

387,161
3,300,572

1,322,316

409,239
3,590,028
1,880,491

387,736
3,681,706
1,889,991

346,793
3,677,046
2,688,582

67,449,217

70,812,040

75,990,422

82,307,795

89,478,403

93,869,281

65,339,748

N/A
N/A
65,339,748
821,250
49,185

68,371,859

N/A
N/A
68,371,859
824,494
48,239

72,820,626

N/A
N/A
72,820,626
854,499
46,364

78,739,467

N/A
N/A
78,739,467
1,117,143
39,101

85,110,268

N/A
N/A
85,110,268
1,506,918
38,425

89,276,017

529,384
173,180
88,573,453
1,672,333
37,105

23,553,308
18,275,751
1,688,126
10,076,268
10,875,860
2,109,469
N/A
N/A
2,109,469
N/A
18,339
26,324
743
930
1,416
175,360

22,930,121
20,123,915
1,949,245
10,693,613
11,802,232
2,440,181
N/A
N/A
2,440,181
N/A
26,747
32,835
0
1,990
1,460
297,097

22,368,394
23,393,029
2,428,166
10,874,242
12,855,932
3,169,796
N/A
N/A
3,169,796
N/A
26,955
57,234
0
1,494
918
599,849

21,615,197
28,437,445
2,695,114
11,360,282
13,475,185
3,568,328
N/A
N/A
3,568,328
N/A
10,254
56,679
30,000
1,285
1,407
506,372

21.163,512
33,524,543
2,940,909
11,778,017
14,157,944
4,368,135
N/A
N/A
4,368,135
N/A
97,670
117,296
2,000
1,688
1,167
375,396

20,496,935
37,742,289
2,866,818
11,999,096
14,461,441
5,635,742
328,944
10,970
5,295,828
1,689
228,118
47,843
0
1,791
1,120
475,846

0
1,812,329
N/A

0
1,984,829
N/A

0
2,412,478
N/A

0
2,892,234
N/A

0
3,685,543
N/A

776,860
2,577,044
1,318,908

90,133,831

101,233,074

113,975,049

124,527,519

133,024,861

137,363,528

74,028

95,223

70,868

70,097

87,375

206,523

CO RPO RA TIO N

Real estate loans, g r o s s ..........................................................................................................
.....................................................................................................
...........................................................................
..........................................................................................................
...............................................................................
Secured by farmland ......................................................................................................
Secured by residential properties:
Secured by 1 - to 4 -fa m ily residential properties:
Insured by FHA or guaranteed by V A .....................................................................
Conventional............................................................................................................
Secured multifamily (5 or more) residential properties:
Insured by FHA .
. .
...........................................................................
Conventional............................................................................................................
Secured by nonfarm nonresidential properties .............................................................

964,856

374,851
3,255,624

INSURANCE

Loans, net ..................................................................................................................................

348,290
3,069,009

DEPOSIT

Dec. 31, 1975

FEDERAL

Dec. 31, 1974

Asset, liability, or surplus account

Bank premises, furniture and fixtures, capital leases, and other assets representing
bank premises ...................................................................................................................
Real estate owned other than bank p re m is e s ........................................................................
Investment in unconsolidated subsidiaries and associated companies ................................
Other assets .......................................................................................................................

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
2,098,561

1,389,116
295,155
150,958
2,295,923

Total liabilities and surplus accounts......................................................................................

95,589,401

121,070,592

120,839,827

132,201,371

142,352,807

147,112,481

Deposits— total .....................................................................................................................

86,814,415

110,583,326

Savings and time deposits— to ta l......................................................................................
...................................................................................................
..........................................................
...........................................................................................................................
.......................................................................................................
.................................................................................................
....................................................
.......................................................................................................................

85,904,825

110,998,759

121,265,988

129,449,932

109,553,709

109,895,767

132,337,884

56.497.626
N/A
56.497.626
29,407,199
909.590
N/A
909.590

119,734,061

127,600,309

129,674,702

Federal funds purchased and securities sold under agreements to repurchase ..............
Mortgage indebtedness and liability for capital le a s e s ......................................................
Other liabilities for borrowed money ................................................................................
Other liabilities ...................................................................................................................

217,561
N/A
667,256
1,067,626

108,715

69,118

169,166

578,706

1,643,214

481,778
1,475,903

356,329
1,439,661

483,710
1,472,794

1,025,607
1,646,051

1,959,463
876,263

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

88,766,858

112,649,722

112,863,867

123,391,658

132,700,296

136,882,664

Subordinated notes and debentures....................................................................................

169,460

196,374

213,264

353,386

353,956

Savings deposits-total
Subject to transfer by order (interest-bearing)
Other
Time deposits-total
Demand deposits-total
Subject to transfer by order (noninterest-bearing)
Other

70.307.268
N/A
70.307.268
39,246,441
1.029.617
N/A
1.029.617

67.295.029
N/A
67.295.029
42,600,738
1.102.992
N/A
1.102.992

70.382.619
N/A
70.382.619
49,351,442
1.531.927
N/A
1.531.927

64.291.598
N/A
64.291.598
63,308,711
1.849.623
N/A
1.849.623

54,482,515
4,825,465
49,657,050
75,192,187
2,663,182
1,541,281
1,121,901

Miscellaneous liabilities:

N/A

N/A

65,840

382,373

7.762.696

8.456.327

9.298.555

9,847,444

N/A
N/A

N/A
N/A

7.762.696

N/A
N/A

8.456.327

N/A
N/A

9.298.555

N/A
N/A

4,525,587

4,167,296
1,154,561

2.15
6.24
17.49
71.57
2.55
6.96

1.94
8.92
19.35
67.12
2.68
6.79

1.81
10.92
20.51
63.98
2.78
6.42

1.68
11.72
20.21
63.68
2.71
6.40

2.51
11.39
19.20
64.18
2.72
6.53

1.99
11.82
17.74
65.64
2.81
6.69

7.60

7.62

7.36

7.39

7.59

7.77

320

476

329

323

325

324

PERCENTAGES
Of total assets:
Cash and due from depository in stitu tio n s..........................................................
U.S. Treasury .........................................................................................................................
All other securities ...............................................................................................
Net loans (including federal funds sold and securities purchased under agreements to resell)
All other a s s e t s .....................................................................................................
Total surplus a c c o u n ts .................................................................

Of total assets other than cash and U.S. Government obligations:
Total surplus a c c o u n ts .............................................................................
Number of banks ..................

179




O BANKS
F

8.224.496
8.224.496

LIABILITIES

6.653.083
6.653.083

AND

S u r p lu s ...............................................................................................................................
Undivided profits .........................................................................................................
Other surplus re se rv e s .........................................................................

N/A

ASSETS

Suralus accounts— total .......................................................................................................

N/A

18
0

Table 1 12.

P E R C E N T A G E S O F A S S E T S , LIAB ILIT IES, A N D E Q U I T Y C A P I T A L O F I N S U R E D C O M M E R C I A L B A N K S
O P E R A T I N G T H R O U G H O U T 1979 IN T H E U N IT E D S T A T E S A N D O T H E R A R E A S , D E C E M B E R 31, 1979
BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets of—
Asset, liability, or equity capital item
All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million
to
$24.9 million

100.0%

$25.0 million
to
$49.9 million

$10.00 million
to
$299.9 million

100.0%

$300.0 million
to
$499.9 million

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

100.0%

100.0%

100.0%

100.0%

100.0%

13.7
6.3

10.7
14.4

9.6
12.2

9.3
9.4

9.2
8.6

9.6
8.0

10.8
7.8

13.0
7.8

13.2
7.3

14.0
5.7

18.2
3.7

3.5
9.4
1.1

9.5
3.3
.5

8.5
6.1
.5

6.7
10.2
.5

5.4
12.4
.5

4.7
13.2
.6

4.3
13.2
.5

4.5
11.4
1.0

3.4
11.0
1.0

2.8
9.7
1.1

1.9
5.3
1.8

4.3

8.1

6.5

5.4

4.7

4.4

4.7

5.6

5.6

4.7

3.0

Loans, net ......................................................................................................................
Unearned income on lo a n s .........................................................................................
Allowance fo r possible loan lo s s e s ............................................................................
Loans, gross .................................................................................................................

54.6
1.5
.6
56.7

50.9
1.5
.4
52.8

53.8
1.5
.5
55.8

55.5
1.9
.5
57.9

55.7
2.0
.5
58.2

55.8
2.2
.5
58.5

54.8
2.0
.6
57.4
22.2
.5

52.7
1.9
.6
55.2

53.9
1.8
.6
56.3

54.1
1.2
.6
55.9

54.4
.8
.8
56.0

17.4
3.0
1.0
2.2
18.3
11.1
2.3
1.4

13.7
.1
.1
16.1
7.4
11.1
3.4
.9

16.4
.1
.1
15.0
8.6
11.4
3.3
.9

20.1
.1
.1
10.2
10.3
12.5
3.6
1.0

22.3
.2
.1
6.0
11.7
13.2
3.8
.9

22.5
.3
.2
3.1
13.9
14.0
3.6
.9

.3
1.4
15.6
13.7
2.9
.8

19.3
1.2
.7
1.1
15.9
13.5
2.4
1.1

18.7
1.5
.9
.8
17.1
13.5
2.6
1.2

15.9
3.4
.9
.7
19.4
11.7
2.2
1.7

100.0%

12.8
6.5
1.9
.8
24.3
6.9
1.0
1.8

All other assets .............................................................................................................

7.1

2.6

2.8

3.0

3.5

3.7

3.9

4.0

4.6

7.9

11.7

Total liabilities and equity capital...................................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Deposits— t o t a l .............................................................................................................

30.8
47.0

77.8

35.8
51.6

87.6

30.1
59.2

89.3

28.9
60.7

89.6

28.4
60.8

89.2

28.8
59.6

88.4

29.1
57.2

86.3

31.4
52.3

83.7

32.4
49.2

81.6

30.9
43.8

74.7

32.5
33.8

8.0

.3

.4

.5

.8

1.6

3.6

6.3

7.8

11.5

13.2

2.0
4.9
.4
6.9

.0
.6
.0
11.5

.1
.6
.1
9.5

.2
1.0
.1
8.6

.3
1.4
.2
8.1

.5
1.5
.3
7.7

.9
1.6
.4
7.2

1.0
1.7
.5
6.8

1.6
1.9
.6
6.5

2.3
4.6
.7
6.2

3.7
9.9
.4
6.5

4,694

3,365

1,764

1,051

170

149

144

28

Demand deposits.................................................................................
Time and savings.................................................................................

Individuals, partnerships, and corporations— dem and......................................
Individuals, partnerships, and corporations— time and sa vings......................
U.S. Government ....................................................................................................
States and political s u b d iv is io n s ............................................................................
Certified and officers’ checks ................................................................................
All other deposits ....................................................................................................
Federal funds purchased and securities sold under agreements
to repurchase ..........................................................................................................
Interest-bearing demand notes issued to the U.S. Treasury
and other liaDiliiies fo r borrowed m on ey..............................................................
All other liabilities
......................................................................................................
Subordinated notes and d e b e n tu re s .........................................................................
Equity c a p ita l.................................................................................................................
- Number of b a n k s ..........................................................................................................

^Securities held in trading accounts are included in “ Other assets.
Includes m inority interest in consolidated subsidiaries.




23.8
41.5
.2
5.9
1.1
5.3

14,159

32.1
44.8
.2
9.6
.7
.2

728

26.6
52.5
.3
8.9
.8
.2

2,066

25.5
54.4
.3
8.3
.9
.2

25.1
54.6
.3
8.1
.9
.2

25.4
53.1
.3
8.1
1.0
.5

24.7
50.5
.2
8.1
1.0
1.8

24.9
44.9
.3
8.4
1.2
4.0

26.1
42.6
.3
7.3
1.1
4.2

24.6
38.2
.3
6.1
.9
4.6

66.3

21.0
29.7
.2
2.5
1.5
11.4

FEDERAL DEPOSIT INSURANCE CORPORATION

Real estate loans .....................................................................................
Loans to financial institutions...................................................................
Loans forpurchasing or carrying securities ..............................................
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-pavment loans for personal expenditures .......................................
All other loans .........................................................................................

100.0%

100.0%

$5.0 billion
or
more

Cash and due from depository in s titu tio n s ..............................................................
U.S. Treasury Securities1 ...........................................................................................
Obligations of other U.S. Government agencies
and c o rp o ra tio n s............................................ .........................................................
Obligations of states and political subdivisions .....................................................
All other securities........................................................................................................
Federal funds sold and securities purchased
under agreements to r e s e ll.....................................................................................

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

100.0%

$50.0 million
to
$99.9 million

Table 113.

PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL BANKS OPERATING THROUGHOUT 1979 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979
BANKS GROUPED BY AMOUNT OF ASSETS

Banks with total assets of—
Asset, liability, or surplus account

Less
than
$10.0 million

$10.0 million $25.0 million $50.0 million
to
to
to
$24.9 million $49.9 million $99.9 million
100.00%

$100.0 million
to
$299.9 million

$300.0 million $500.0 million $1 billion
or
to
to
$499.9 million $999.9 million
more

100.00%

100.00%

100.00%

100.00%

100.00%

Cash and due from depository in s titu tio n s .................................................................................
Currency and c o in .........................................................................................................................
Demana balances with commercial banks in the United S ta te s ...........................................
Other balances with depository institutions ............................................................................
Cash items in process of collection ..........................................................................................

1.99
0.29
0.55
1.06
0.09

3.80
1.03
1.90
0.00
0.87

3.40
0.54
1.09
1.64
0.13

3.34
0.55
0.87
1.78
0.14

2.39
0.46
0.86
0.90
0.17

2.44
0.38
0.86
1.08
0.12

2.37
0.34
0.61
1.29
0.13

1.76
0.33
0.47
0.83
0.13

1.86
0.23
0.47
1.09
0.07

S ecurities— total ..............................................................................................................................
U.S. Treasury, agency, and corporation obligations .............................................................
Corporate b o n d s ...........................................................................................................................
Obligations of States and political subdivisions in the U.S.....................................................
Other bonds, notes and d e bentures..........................................................................................
Corporate stock— t o t a l ................................................................................................................
B a n k ...........................................................................................................................................
O th e r...........................................................................................................................................

29.57
11.83
10.96
1.93
2.11
2.74
0.24
2.50

14.82
2.46
5.99
0.00
0.82
5.55
0.20
5.35

22.82
13.76
3.30
1.12
1,94
2.70
0.75
1.95

21.19
9.35
6.44
0.69
1.05
3.66
0.53
3.13

18.90
8.78
4.87
0.64
0.92
3.69
0.70
2.99

22.10
9.97
6.25
1.12
1.46
3.30
0.49
2.81

22.51
11.74
6.47
0.75
1.06
2.49
0.34
2.15

29.08
12.95
9.88
1.57
1.80
2.88
0.28
2.60

33.30
12.10
13.53
2.52
2.62
2.53
0.11
2.42

100.00%

100.00%

100.00%

Federal funds sold and securities purchased under agreements to r e s e ll..........................

1.83

3.38

2.87

3.29

2.50

1.91

2.51

1.92

1.60

Loans, net .........................................................................................................................................
Real estate loans, g r o s s ..............................................................................................................
Less: Unearned incom e .........................................................................................................
Less: Allowance fo r possible loan lo s s e s ............................................................................
Real estate loans, n e t ..............................................................................................................
Construction and land developm ent.................................................................................
Secured by fa rm la n d ............................................................................................................
Secured by residential properties:
Secured by 1- to 4-fam ily residential properties:
Insurecf by FHA or guaranteed byV A ......................................................................
C onventional................................................................................................................
Secured m ultifam ily (5 or more) residential properties:
Insured by F H A ............................................................................................................
Conventional................................................................................................................
Secured by nonfarm nonresidential p ro p e rtie s ...............................................................
Other loans, gross .......................................................................................................................
Less: Unearned income .........................................................................................................
Less: Allowance fo r possible loan lo s s e s ............................................................................
Other loans, n e t .......................................................................................................................

63.81
60.69
0.36
0.12
60.21
1.14
0.03

75.02
68.29
0.00
0.00
68.29
0.60
0.27

69.35
62.76
0.08
0.26
62.42
0.74
0.59

69.55
63.46
0.03
0.15
63.28
0.82
0.17

73.68
67.63
0.05
0.12
67.46
1.43
0.25

70.85
66.54
0.11
0.13
66.30
1.66
0.05

69.84
65.60
0.21
0.07
65.32
1.84
0.02

64.21
61.05
0.38
0.14
60.53
1.44
0.01

60.44
58.01
0.45
0.12
57.44
0.80
0.01

13.93
25.65

0.00
60.31

4.47
50.68

4.24
51.07

5.58
52.32

7.13
46.01

11.92
38.11

14.70
23.69

16.16
17.73

1.95
8.16
9.83
3.83
0.22
0.01
3.60

0.00
0.00
7.11
6.73
0.00
0.00
6.73

0.00
1.15
5.13
7.15
0.22
0.00
6.93

0.00
2.12
5.04
6.74
0.44
0.03
6.27

0.05
1.73
6.28
6.65
0.42
0.02
6.22

0.10
4.10
7.39
4.91
0.35
0.01
4.55

0.51
5.92
7.28
4.92
0.41
0.01
4.52

2.01
9.65
9.55
4.02
0.33
0.01
3.68

ASSETS AND LIABILITIES O BANKS
F

Total A s s e ts ...........................................................................................................................................

All
banks

2.71
9.44
11.16
3.13
0.12
0.01
3.00




CO

182

Table 113.

PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL BANKS OPERATING THROUGHOUT 1979 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 197 9-C O N T IN U E D
BANKS GROUPED BY AMOUNT OF ASSETS
Banks with total assets of—

Asset, liability, or surplus account

Less
than
$10.0 million

$10.0 million $25.0 million
to
to
$24.9 million $49.9 million

$50.0 million
to
$99.9 million

$100.0 million $300.0 million $500.0 million $1 billion
or
to
to
to
more
$299.9 million $499.9 million $999.9 million

0.00
0.16
0.03

0.00
0.00
0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.29

0.05

0.01

0.00

0.00

0.10
0.05

0.07

0.00

0.00

0.06
0.01

0.22
0.04

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00

0.00
0.00
0.00

0.00
0.00

0.00
0.01

0.00
0.00

0.00
0.00

0.00
0.00

0.32

0.07

0.01
0.47

0.00
0.19

0.00
0.38

0.53
1.75
0.90
0.14

2.39
2.74
0.09
1.44

0.00

0.25

0.01
0.30

0.26

0.00
0.31

0.43
3.54
2.09
0.32

0.81
3.53
1.89
0.21

0.97
3.52
1.49
0.34

0.82
1.98
1.45
0.24

0.92
2.21
1.28
0.13

0.73
1.88
1.00
0.15

0.30
1.46
0.63
0.10

Total net loans and securities ...........................................................................................

93.38

89.84

82.17

90.74

92.58

92.95

92.35

93.29

93.74

Bank premises, furniture and fixtures, capital leases, and other assets representing
bank premises .........................................................................................................................
Real estate owned other than bank p re m is e s ...............................................................................
Investm ent in unconsolidated subsidiaries and associated companies ...................................
Other assets .......................................................................................................................................

0.94
0.20
0.10
1.56

2.48
0.10

0.92
0.06

1.69
0.11

1.30
0.19

0.40

0.58

0.83

1.04

1.17
0.19
0.05
1.29

1.11
0.16
0.07
1.43

1.02
0.17
0.16
1.68

0.81
0.22
0.11
1.66

Total lia b ilitie s and surplus a c c o u n ts ...............................................................................................

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

Deposits— total ................................................................................................................................
Savings and time deposits— to ta l...............................................................................................
Savings d e p o s its -to ta l............................................................................................................
Subject to transfer by order (in terest-bearing)................................................................
O th e r.......................................................................................................................................
Time d e p o s its - to ta l.................................................................................................................
Demand d e p o s its -T o ta l..........................................................................................................
Subject to transfer by order (noninterest-bearing).........................................................
O th e r.......................................................................................................................................

89.96
88.15
37.03
3.28
33.75
51.12
1.81
1.05
0.76

90.42
90.10
61.21
2.39
58.82
28.89
0.32
0.32

90.75
90.17
41.52
8.47
33.05
48.65
0.58
0.30
0.28

91.20
89.84
44.40
4.50
39.90
45.44
1.36
1.09
0.27

90.76
89.63
41.41
7.32
34.09
48.22
1.13
1.00
0.13

90.32
89.13
39.15
4.84
34.31
49.98
1.19
0.82
0.37

90.32
88.87
37.60
4.41
33.19
51.27
1.45
0.95
0.50

90.36
88.70
40.96
3.65
37.30
47.74
1.66
0.84
0.82

89.61
87.51
34.87
2.34
32.53
52.64
2.10
1.18
0.92

M iscellaneous lia b ilitie s :
Federal funds purchased and securities sold under agreements to repurchase.................
Mortgage indebtedness and liability for capital le a s e s ...........................................................
Other liabilities for borrowed money ....................................................................................
Other liabilities ..............................................................................................................................

1.12
0.04
1.33
0.60

0.00
0.00
0.00

0.63

0.03

0.00

0.00
0.00

0.00

0.02

0.26

0.28
0.52

0.03
0.84
0.65

0.41
0.04
1.28
0.60

0.37
0.04
1.62
0.62

0.74
0.05
1.02
0.60

1.60
0.05
1.44
0.59

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

93.05

90.44

91.64

92.03

92.28

92.65

92.97

92.77

93.29

Subordinated notes and d e b e n tu re s .............................................................................................

0.26

0.00

0.60

0.10

0.08

0.05

0.16

0.18

0.36

Sumlus accounts— total .................................................................................................................
S u rp lu s ...........................................................................................................................................
Undivided profits .........................................................................................................................
Other surplus re s e rv e s .................................................................................................................

6.69
3.08
2.83
0.78

9.56
2.87
6.69

0.00

7.76
4.56
3.07
0.13

7.87
3.64
3.39
0.84

7.64
3.02
3.56
1.06

7.30
2.97
3.38
0.95

6.87
2.75
3.39
0.73

7.05
3.34
2.89
0.82

6.35
3.07
2.55
0.73

Number of banks ..................................................................................................................................

324

2

10

23

81

98

35

35

40




0.00

0.00

0.00

0.00

0.00

FEDERAL DEPOSIT INSURANCE CORPORATION

Loans to financial institutions:
To real estate investment trusts and mortgage companies ..................................................
To domestic commercial and foreign b a n k s .............................................................................
To other financial in s titu tio n s .....................................................................................................
Loans for purchasing or carrying securities (secured and unsecured):
To brokers and dealers in s e c u ritie s ..........................................................................................
Other loans fo r purchasing or carrying securities ..................................................................
Loans to finance agricultural production (except those secured primarily by real estate) . . .
Commercial and industrial loans (except Those secured primarily by real estate) .................
Loans to individuals fo r household, family, and other personal expenditures
(include purchased paper):
Installm ent loans to repair and modernize residential p r o p e r ty ............................................
Other installm ent loans fo r household, fam ily, and other personal expenditures .............
Single-payment loans for household, family, and other personal expenditures.................
All other lo a n s ....................................................................................................................................

All
banks

Table 114.

ASSETS

DISTRIBUTIO N OF INSURED CO M M ERC IAL BANKS IN TH E UN ITED S TATES (STATES AN D O THER AREAS),
DE CE M B ER 31, 1979

B A N KS G RO U PED ACCORDING TO AM O UN T OF A S S E T S AND BY RATIOS OF SELECTED ITEM S TO AS SET S OR DEPO SITS
Banks w ith assets o f $5.0 million
to
$9.9 m illion

$10.0 million
to
$2 4 .9 m illion

$25.0 m illion
to
$49.9 m illion

$50.0 m illion
to
$99.9 m illion

$100.0 m illion
to
$299.9 m illion

144
2,672
4,827
3,345
1,716
827
372
182
279

22
124
214
183
119
54
36
23
55

32
467
693
432
227
121
59
41
56

50
996
1,672
1,000
523
257
117
49
64

22
650
1,263
808
341
171
67
23
26

8
292
602
477
229
92
32
13
19

7
129
294
309
175
70
29
14
24

R atios of U .S. T reasury s e c u ritie s to to ta l assets o f—
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 ................................................................................
1 5.0 to 1 7 .9 9 ................................................................................
18.0 to 2 0 .9 9 ................................................................................
21.0 to 23.99 ................................................................................
2 4 .0 to 26.99 ................................................................................
27 .0 to 2 9 . 9 9 ................................................................................
3 0 .0 to 3 2 . 9 9 ................................................................................
3 3 .0 to 3 5 . 9 9 ................................................................................
3 6 .0 or m o r e ................................................................................

2,325
3,189
2,930
1,982
1,365
905
573
346
208
128
119
89
205

141
96
117
104
81
65
49
36
31
17
14
18
61

270
353
345
288
254
193
127
81
50
45
32
22
68

790
1,011
922
664
481
302
210
126
68
37
39
28
50

575
786
748
484
307
196
107
66
30
20
23
11
18

285
473
432
247
136
84
45
24
15
5
7
7
4

160
304
260
141
86
41
27
11
10
4
4
2
1

$1.0 billion
to
$4 .9 billion

1
7
41
53
26
18
7
3
15

1
4
27
48
26
21
8
6
8

1
3
21
31
39
18
15
8
8

_
_

34
55
31
20
8
12
5
1
3

26
45
44
13
7
9
3

30
57
28
20
5
2

14
9
3
1

_
_

2

_
_
_
_

1
1

$ 5.0 billion
or
more

4
11
5
2
2
4

_1
_
_

_
1
—
_
_
_
_
_

-

-

—
1

183




$500.0 m illion
to
$ 999.9 m illion

O BANKS
F

Ratios of cash and due fro m de p o s ito ry
in s titu tio n s to to ta l assets o f—
Less than 3 . 0 ................................................................................
3 .0 to 5 . 9 9 .....................................................................................
6 .0 to 8 . 9 9 .....................................................................................
9.0 to 1 1 . 9 9 ...................................................................................
1 2.0 to 1 4 .9 9 ................................................................................
1 5.0 to 1 7 .9 9 ................................................................................
1 8.0 to 2 0 .9 9 ................................................................................
21 .0 to 2 3.99 ................................................................................
24 .0 or m o r e ................................................................................

$300.0 m illion
to
$499.9 m illion

LIABILITIES

All
banks

AND

Less
than
$5 million

Ratios
(In percent)

1 84

Table 114

D IS T R IB U T IO N OF INSURED C O M M E RC IAL BANKS IN THE UN ITED STATES (STA TES AN D O THER AR EAS),

Banks w ith assets o f—
Ratios
(in percent)

All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

$10.0 million $ 25.0 m illion
to
to
$ 49.9 m illion
$24.9 million

$50.0 million
to
$99.9 m illion

$100.0 m illion

to
$ 299.9 m illion

$ 300.0 m illion
to
$ 499.9 m illion

$ 500.0 m illion
to
$ 9 99.9 m illion

318
139
116
91
61
33
26
12
14
9
8
3

388
190
211
324
289
268
197
113
63
41
33
11

353
136
162
407
605
765
782
609
417
225
205
62

61
60
68
166
289
478
619
602
447
280
228
73

20
17
19
69
101
221
327
378
268
167
141
36

3
9
15
38
60
118
213
242
170
94
66
23

1
2
5
9
17
30
44
21
24
13
4
1

1
4
1
10
15
26
40
29
11
7
4
1

Ratios of net loans to to ta l assets o f—
Less than 20 ................................................................................
2 0 .0 to 24 .9 9
2 5 .0 to 2 9 .9 9 ............
3 0 .0 to 3 4 . 9 9 ............
3 5 .0 to 39 .9 9
4 0 .0 to 4 4 . 9 9 ............
4 5 .0 to 4 9 . 9 9 ............
5 0 .0 to 5 4 .9 9 ............
5 5 .0 to 59 .9 9
6 0 .0 to 6 4 .9 9 ............
65 .0 to 6 9 . 9 9 ............
7 0 .0 to 7 4 . 9 9 ............
7 5 .0 or m o r e ............

143
111
212
346
596
1,065
1,632
2,325
2,9 8 9
2,603
1,611
590
141

59
21
44
52
57
88
91
103
111
89
61
40
14

25
38
50
82
114
166
248
323
380
329
238
101
34

32
24
71
95
200
347
545
711
919
917
578
231
58

16
17
28
65
115
242
366
561
751
647
408
135
20

4
7
12
26
51
103
194
329
439
351
188
53
7

4
4
5
21
36
69
118
196
266
204
100
23
5

2
—
2
1
9
23
23
31
41
23
14
2
—

R atios of to ta l dem and de p osits to to ta l d e posits o f—
Less than 20 ................................................................................
20 .0 to 24 .9 9 ............
25 .0 to 2 9 . 9 9 ............
3 0 .0 to 3 4 . 9 9 ............
3 5 .0 to 3 9 . 9 9 ............
4 0 .0 to 4 4 .9 0 ............
4 5 .0 to 4 9 .9 9
50 .0 to 54.99 ............
55 .0 to 59.99
6 0 .0 to 64.99
65 .0 or m o r e ............

995
2,183
3,096
2,740
2,062
1 ,399
852
409
241
139
248

27
67
117
132
121
98
71
46
34
23
94

121
300
483
439
305
191
112
68
36
27
46

368
796
1,076
860
623
456
270
107
72
42
58

277
563
789
667
447
295
191
70
36
22
14

121
291
363
351
302
161
85
46
23
7
14

62
141
213
216
177
111
71
33
11
5
11

8
13
32
23
29
24
18
12
6
4
2




1

—
1
9
10
4
2
2

2
15
27
32
34
20
10
2
1

—
—
—

—

—

1
—
_

—
—

2
6
14
17
31
42
22
11
2
1

2
6
12
22
36
36
16
10
2
2

—
—
—

8
8
10
22
33
29
14
12
9
2
2

3
4
13
25
22
27
16
13
12
6
3

2
1
8
4
4
5
3
1

—

—
—
5
3
7
4
2
2
1
4

CORPORATION

1,145
558
600
1,138
1,474
1,975
2,284
2,028
1,424
838
690
210

$ 5.0 billion
or
more

INSURANCE

R atios of o b lig a tio n s of states and p o litic a l sub­
d iv is io n s to la l assets o f—
Z e r o .................................................................................................
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 ................
1 0.0 to 12 .49
1 2.5 to 1 4 .9 9 ............
15 .0 to 17.49
1 7.5 to 19.99
2 0 .0 to 2 4 .9 9 ............
25 .0 or m o r e ............

$1.0 billion
to
$4 .9 billion

FEDERAL DEPOSIT

D E C E M B E R 3 1, 1 9 7 9 - C O N T I N U E D
B AN KS G R O U PED ACCO RD IN G TO AM O U N T OF A SSET S AND BY RATIOS OF S ELECTED ITEMS TO A S S E T S OR D EPOSITS

5
4
8
12
21
32
51
39
63
60
51
44
32
42
34
332

13
12
31
64
122
196
225
245
201
148
149
131
96
73
51
371

32
65
115
256
409
541
607
561
475
404
304
230
156
132
88
353

50
77
154
242
376
482
468
405
333
211
141
127
85
56
45
119

42
49
118
173
247
266
253
185
126
84
71
44
31
21
12
42

48
65
107
135
156
145
102
104
62
39
25
20
11
14
4
14

18
13
24
22
33
18
13
13
5
4
1

R atios of to ta l eq u ity cap ita l to to ta l assets other
than cash and gove rn m e n t s e c u ritie s o f—
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 ................................................................................
13.0 to 1 4 .4 9 ................................................................................
14.5 to 1 5 .9 9 ................................................................................
16.0 to 1 7 .4 9 ................................................................................
17.5 to 1 8 .9 9 ................................................................................
19.0 to 2 0 .4 9 ................................................................................
20 .5 to 2 1 .9 9 ................................................................................
2 2 .0 or m o r e ............................................................................

548
1,943
3,219
2,873
1,939
1,249
719
492
316
212
144
710

9
18
36
76
79
81
59
65
40
42
32
293

18
93
253
375
327
288
175
144
116
62
53
224

87
442
1,010
1,069
785
509
281
180
107
79
38
141

127
522
960
773
445
230
140
71
35
19
12
37

89
398
554
352
187
89
35
22
12
9
6
11

113
298
280
184
92
41
23
9
5
1
3
2

29
44
53
22
11
6
3

_
2

14,364

830

2,128

4 ,728

3,371

1,764

1,051

171

N um ber of b a n k s ...........................................................

~4
2

1
1
1

1

17
27
35
22
15
11
4
5
1
1
2
3
1

_

4
8
5
3
3
1
3

_
_

_
_
_
1

-

-

29
56
39
12
8
1
3
1

37
63
29
8
4
3

10
9
5
2
1
1

_

_

1

-

—

149

144

28

O BANKS
F
185




14
21
31
16
25
10
15
6
1
2
2
3

LIABILITIES

243
341
628
945
1,407
1,702
1,741
1,563
1,267
953
746
602
416
342
235
1,233

ASSETS AND

R atios of to ta l eq uity cap ita l to to ta l assets o f—
Less than 5 ...................................................................................
5.0 to 5 . 4 9 .....................................................................................
5.5 0 to 5 . 9 9 ...................................................................................
6 .0 0 to 6 . 4 9 ...................................................................................
6 .5 0 to 6 . 9 9 ...................................................................................
7 .0 0 to 7 . 4 9 ...................................................................................
7 .5 0 to 7 . 9 9 ...................................................................................
8 .0 0 to 8 . 4 9 ...................................................................................
8 .5 0 to 8 . 9 9 ...................................................................................
9 .0 0 to 9 . 4 9 .........................................................................
9 .5 0 to 9 . 9 9 ...................................................................................
10 .0 0 to 1 0 .4 9 ..............................................................................
1 0.50 to 1 0 .9 9 ..............................................................................
1 1.0 0 to 1 1 .4 9 ..............................................................................
1 1.50 to 1 1 .9 9 ....................................................................
1 2.0 0 or m o r e ....................................................................

1 86

INCOME OF INSURED BANKS
Income of insured commercial banks in the United States (States and other areas),
1 9 7 4 — 1979
Ratios of income of insured commercial banks in the United States (States and other areas),
1 9 7 4 — 1979

Table 1 1 8.

Income of insured commercial banks operating throughout 1 979 in the United States (States
and other areas)

Table 1 1 9.

Ratios of income of insured commercial banks operating throughout 1979 in the United States
(States and other areas)

Table 1 20.

Income of insured mutual savings banks in the United States (States and other areas), 1 9 7 4 —
1979

Table 121.

Ratios of income of insured mutual savings banks in the United States (States and other areas),
1 9 7 4 — 1979

Banks grouped by class of bank

Banks grouped by amount of assets

Banks grouped according to amount of assets

The income data received and published by the Corporation relate to
commercial and mutual savings banks insured by the Corporation.
Com m ercial banks
Banks having total assets of $25 m illion or more are required to report
consolidated 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 1 976, 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 also include all
majority-owned Edge all majority-owned significant forand Agreement
Corporations, and eign subsidiaries and associated companies.
Banks were required to report income and expenses more frequently
beginning in 1 976. Banks having total assets of $3 0 0 m illion 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.
Several changes were made in 1 976 in the format of the income reports

C O R P O R ATIO N

Income of insured commercial banks in the United States (States and other areas), 1 979

INSURANCE

Table 1 1 7.

DEPOSIT

Table 116.

FEDERAL

Table 1 1 5.

B AN KS




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.

O INSURED
F

M utual 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
s u b s id ia rie s , and o th e r s ig n ific a n t n o n b a n kin g d o m e stic s u b ­
sidiaries.
Beginning in 1 972, banks w ith 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
"o th e r" category are shown separately beginning in 1 971. Income from U.S.
Treasury securities is combined w ith 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 1 97 0 and prior years (table 1 20), 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. Beginning in 1 979,
the amount to be expensed as a provision is based on management discretion
and is expected to be reflective of the adequacy of the existing valuation
reserve and the current condition of the loan portfolio.
The nonoperating sections of the report were condensed in 1971, with
realized gains and losses on securities, mortgage loans, and real estate
reported "n e t" rather than in separate sections and captions as before. In
1 979, these items were no longer required to be reported separately. They
are to be included in with other operating income or other operating
expenses. Detailed data formerly reported on reconcilement of valuation
adjustment provisions were almost entirely eliminated, except for a reconcili­
ation of surplus. For additional discussion of reporting changes in 1 979, (see
p. 160).

INCOME

submitted by banks, mainly involving additional separate items on the face of
the report. Those changes are indicated in several historical data tables, 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. 1 88).
In December 19 78 an abbreviated Report of Income was instituted for
banks w ith total consolidated assets of 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
solely 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 consists 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, securities gains and losses and extraordinary
items, and deferred income taxes resulting from "tim in g” differences. 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
lim itations that w ill eventually put these reserves on a current experience
basis.)

REPORTING OF LOSSES A N D RESERVES
FOR LOSSES ON LOANS,
Commercial banks
19 48 — 1979
Use of the reserve method of loan accounting was greatly encouraged
when, in 1 947, the Internal Revenue Service set formal standards for loan
CD

00

CD

INSURANCE
C O R P O R ATIO N

M utual savings banks
W hile mutual savings banks reported loan losses and transfers to loss
reserves prior to 1 951, 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 1 951, 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 commercial banks, to show actual net loan losses as operating
expenses. (Mutual savings banks did not have the option available to
commercial banks of reporting losses based on recent years' average
experience.) At the same time, all valuation reserves were merged into
surplus accounts on statements of condition submitted to the Federal
supervisory agencies. In 1979, loan loss reporting was again revised in a
manner consistent w ith reporting by commercial banks. The provision
expense is determined by bank management. The valuation reserves on real
estate loans and other loans are shown as separate deductions to the asset
categories on the Report of Condition.

DEPOSIT




which in the judgment of bank management w ill 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 1 976, 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.

FEDERAL

loss transfers to be permitted for Federal tax purposes. In their reports
submitted to the Federal bank supervisory agencies prior to 1 948, insured
commercial banks included in nonoperating income the amounts of recover­
ies on loans (applicable to prior charge-offs for losses) which included, for
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 nonoperating 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 1 948, insured banks
reported loans on a net basis only, after allowance for loan loss reserves.
Beginning w ith the June 30, 1 9 48 report, banks were required to report
gross loans, w ith total valuation reserves, those set up pursuant to Internal
Revenue Service regulations, and other reserves shown separately. How­
ever, instalment loans ordinarily continued to be reported net if the instal­
ment payments were applied directly to the reduction of the loan.)
Beginning w ith the year 1 948, 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 nonoperating 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 separately reported in the Corporation's published statistics.
Several important revisions were made in the form at 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 of the
formulas was discontinued. Banks are instructed to expense an amount

Table 115.

INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), 1974-1979
(Amounts in thousands of dollars)

Income item

1974

1975

19761

19771

19781

1979

Operating incom e— t o t a l .........................................................................................................

68,160,779

66,558,502

80,663,853

90,357,541

113,581,682

150,282,353

Interest and fees on loans...................................................................................
Interest on balances with depository institutions2 ................................................
Income on federal funds sold and securities purchases under agreements
to resell in domestic offices ............................................................................
Interest on U.S. Treasury securities and on obligations of other U.S.
Government agencies and corporations3 .........................................................
Interest on obligations of States and political subdivisions of the U.S.3 ..................
Income from all other securities3 ........................................................................
Income from direct lease financing2 ....................................................................
Income from fiduciary activities ..........................................................................
Service charges on deposit accounts in domestic offices.......................................
Other service charges, commissions, and fees ....................................................
Other income3 ....................................................................................................

47,138,740

43,379,504

51,645,260
4,486,655

58,990,506
4,887,917

76,182,124
6,712,575

102,192,459
10,669,726

1,984,757

2,476,313

3,682,320

6,126,340

6,789,577
4,918,518
533,244

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

10,686,277
6,955,222
1,198,071
1,073,254
2,375,711
2,528,752
3,641,607
2,834,934

Operating expenses— total ....................................................................................................

58,910,355

57,582,040

70,750,168

70,791,583

98,480,372

132,391,165

Salaries and employee benefits............................................................................
Interest on time certificates of deposit of $100,000 or more issues by
domestic offices4 ...........................................................................................
Interest on deposits in foreign offices2 ..........................................
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...................................................................................

11,586,433

12,686,720

14,752,297

16,346,067

18,743,800

21,562,167

27,888,772

26,245,936

7,111,054
8,749,673
19,143,238

6,763,105
10,215,971
21,832,936

11,736,511
14,558,371
23,918,087

18,178,650
24,523,807
29,185,414

5,985,504

3,322,993

3,311,741

4,542,669

7,264,001

12,356,285

917,638
283,203

377,195
294,098

667,197
344,952

818,374
392,274

1,457,931
448,488

3,167,247
501,470

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

6,281,496
3,785,642
12,848,987
17,891,188

Income before income taxes and securities gains or lo s s e s ...........................................

9,250,424

8,976,462

9,913,685

11,565,958

15,101,310

Applicable income t a x e s .........................................................................................................

2,084,028

1,792,696

2,290,772

2,831,871

4,162,112

4,742,118

Income before securities gains or lo s s e s ............................................................................

7,166,396

7,183,766

7,622,913

8,734,087

10,939,198

13,149,070

34,376

BANKS

2,294,621

5,459,834
4,453,876
467,873

INCOME O INSURED
F

3,712,304

-6 4 9 ,6 8 5

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

Applicable income taxes .......................................................
Securities gains or losses, net ............................................................................

-1 6 1 ,2 4 7

312,267

141,674

-4 4 7 ,1 2 4

-74,195
-87,052

-2,690
37,066

118,233
194,034

43,189
98,485

-222,230
-224,894

Income before extraordinary it e m s .......................................................................................

7,079,344

7,220,832

7,816,947

8,832,572

10,714,304

12,799,112

Extraordinary items, g ro s s ......................................................................................................

17,877

28,104

55,082

43,737

40,001

Applicable income taxes.....................................................................................
Extraordinary items, n e t.....................................................................................

46,823

5,957
11,920

13,044
33,779

1,774
26,330

8,249
46,833

-1,493
45,230

625
39,375

Net in c o m e .................................................................................................................................

7,091,264

7,254,611

7,843,277

8,879,405

10,759,534

12,838,487

Securities gains or losses, gross

189




-299,727
-349,958

INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), 1974-1979-C O N T IN U E D
(Amounts in thousands of dollars)

Incom e item

1974

1975

1 97 6 1

19
0

T a b le 1 1 5 .

1977'

197 8 1

1979

Memoranda
4 ,4 5 5 ,29 3

D ivid en ds declared on equity ca pita l— total ..........................................................................
?
......................................................................
......................................................................

2,765,674
2,430

3,030,230
2,214

3,033,628
2,594

3,301,525
3,264

3 ,3 0 4 ,7 8 9

3,718,211
3,715,7,809

3 ,7 2 1 ,92 6

4,447,484

Pro v isio n for in com e ta xe s— t o t a l............................................................................................
..................................................................................................
.....................................................................................
...........................................................................................................

1,357,934
402,345

1 ,759,739

1,225,927
501,114

1,727,041

2 ,41 0 ,77 9

2 ,88 3 ,30 9

1,773,219
525,833
584,257

2,537,962
656,274
744,153

3 ,93 8 ,38 9

2,653,069
902,579
887,369

Net loan losse s or re cove rie s— t o t a l.......................................................................................
.............................................................................................................
....................................................................................................................

-1 ,9 5 6 ,9 3 1

- 3 ,2 4 2 ,8 3 0

547,380
-3,790,210

687,401
-4,190,647

-3 ,5 0 3 ,2 4 6

- 2 ,7 9 7 ,1 0 5

- 2 ,4 9 6 ,9 7 7

- 2 ,5 6 4 ,2 6 0

871.394.495

924.946.738

1.123.469.176

1.249.961.111

1.403.493.088

1.584.170.199

122,224,773

1 26,8 38 ,0 07

194,3 12 ,5 00

2 18 ,3 57 ,8 90

2 4 8 ,6 32 ,8 90

2 8 3 ,2 13 ,7 80

5 2,822,043
9 4,524,535
35,256,603
519,572,131
46,994,410

6 5,9 9 2,1 4 8
9 8 ,9 5 3,2 7 9
3 9,2 0 3,3 4 4
536,0 61 ,7 23
5 7,8 9 8,2 3 7

8 8 ,5 2 0,7 4 9
1 0 2 ,7 33 ,8 96
5 1 ,1 1 0,3 4 7
6 32 ,6 96 ,8 42
5 4,0 9 4,8 4 2

9 6 ,6 6 4,6 4 7
1 08 ,4 29 ,2 63
5 4,2 9 3,9 5 3
7 09 ,8 16 ,2 28
6 2 ,3 9 9,1 2 9

131,7 99 ,0 55
117,3 31 ,8 76
2 0,1 2 9,2 4 2
7 64 ,7 72 ,4 96
7 4,5 8 9,5 9 2

133,2 87 ,0 94
127 ,7 70 ,1 23
23,0 7 9,9 7 3
9 2 2 ,2 11 ,1 28
94,608,101

Cast dividends declared on common s to c k
Cash dividends declared on preferred s to c k

Recoveries on loans
Losses on loans

461,350
-2,418,281

3 ,0 3 2 ,44 4

3 ,0 3 6 ,22 2

1,371,638
491,712
547,429

813,900
-3,611,005

1,074,435
3,571,412

4 ,44 3 ,01 7

1,198,985
3,763,245

Average assets, lia b ilitie s, and equity capital5
Assets— total
Cash and due from deposito ry in s t it u t io n s ........................................................................
U .S . Treasury secu rities and o b lig atio ns of other U .S. agencies
and co rp o ratio n s3 .............................................................................................................
O bligations of states and po litical sub d iv isio n s ...............................................................
Other secu rities3 ....................................................................................................................
Net loans6 ...............................................................................................................................
All other a s s e t s ......................................................................................................................

Liabilities and equity capital— total .....................................................................................

871.394.495

924.946.738

1.123.469.176

1.249.961.111

1.403.493.088

1.584.170.199

Total d e p o s it s ........................................................................................................................
.............................................................................................................
..............................................................................................
..............................................................................................
S ubordinated notes and d e b e n tu r e s ...................................................................................
Other b o rrow in gs and all other liabilities ..........................................................................
Total equity capital ................................................................................................................

307,363,186
402,666,682

7 10,029,868

313,836,391
443,112,195

7 5 6 ,9 48 ,5 86

320,488,016
474,499,317
149,251,581

9 44 ,2 38 ,9 14

1 ,0 4 3 ,47 8 ,5 75

1 ,1 5 7 ,40 8 ,4 90

1 ,27 6 ,96 8 ,8 68

4,204,891
100,573,737
56,585,999

4,328,561
1 01 ,918,202
6 1 ,7 5 1,3 8 9

4 ,86 5 ,97 2
1 05,6 47 ,9 09
68,716,381

5,50 0 ,13 2
1 25,239,154
7 5.7 4 3,2 5 0

5,95 2 ,19 3
156 ,0 87 ,3 65
8 4,0 2 8,1 1 3

6 ,2 0 2 ,58 7
2 0 8 ,5 42 ,1 97
9 2 ,4 5 6,5 4 7

N um b er of em ployees on payroll (end of p e r io d ) .................................................................

1,160,585

1 ,22 6 ,41 5

1,25 5 ,02 5

1 ,320,598

1,319,828

1,41 0 ,81 6

N um ber of banks (end of period) ............................................................................................

14,228

14,384

14,411

14,412

14,391

14,364

Demand deposits
Time and savings d ep o sits
Deposits in foreign offices

1 Data are from fully consolidated reports on incom e, in clud ing do m estic and foreign offices.
2Figures not available before 1976.
S e c u r it ie s held in trading accounts are includ ed in “ A ll other a s s e ts ” , incom e from these securities is included in “ Other in c o m e .”
4 Included in “ Interest on other d e p o sits” before 1976.
5Averages of am ounts reported at beginning, m iddle, and end of year, 1967, 1977, 1978 averages are based on consolidated reports,
d o m estic and foreign.
6For years before 1976, data are gro ss loans. Includes federal funds sold.




347,903,682
519,939,386
175,635,507

377,305,796
592,066,952
188,034,718

393,573,301
633,107,213
250,288,354

FEDERAL DEPOSIT INSURANCE CORPORATION

U.S. Federal income taxes
U.S. State and local income taxes
Foreign income taxes2

2 ,768,104

T a b le 1 1 6 .

RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979

1974

Income item

Amounts per $100 of operating income
Operating incom e— t o t a l...................................................................................................................
Interest and fees on loans2 ..........................................................................................................
Interest on balances with d e posito ry in stitu tion s3 .....................................................................
Interest on U .S . T reasury secu ritie s and on ob lig atio ns of other U .S.
G overnm ent agencies and c o r p o r a tio n s ..................................................................................
Interest on o b lig atio ns of States and po litical su b d iv isio n s ......................................................
Incom e from all other s e c u r it ie s ..................................................................................................
Incom e from fidu ciary a c t iv it ie s .............................................................................................
Service charges on de posit accou n ts in d o m estic offices ....................................................
Other service charges, c o m m is s io n s , and f e e s .........................................................................
Other operating incom e .............................................................

Operating expenses— total ...........................................................................................................

1975

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

74.60

68.62

6 6.49
5 .56

68.03
5.41

70.31
5.91

72.08
7.10

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

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

7.11
4 .63
.80
1.58
1.68
2.42
2.60

1 97 6 1

19771

1 97 8 1

1979

86.43

86.51

87.71

87.20

86.70

88.09

S alaries and em ployee benefits .............................................................
Interest on deposits in d o m estic o f f ic e s ....................................................
Interest on deposits in foreign offices3 ..............................................................................
Interest on dem and notes issued to the U .S . Treasury and other borrowed money4 ...........
O ccupancy expense of bank prem ises, net, and furniture and equipm ent e x p e n s e ...............
Pro visio n fo r po ssib le loan lo sse s .....................................................................................
Other operating e x p e n s e s .......................................................................................

17.00
4 0.92

19.06
39.43

10.54
5.01
3.35
9.61

6.00
5.79
5.43
10.80

18.29
3 2.55
10.85
5.36
5.56
4 .57
10.53

18.09
31.6 5
11.31
6 .37
5.51
3 .65
10.62

16.50
31.3 9
12.82
8.07
4 .92
3 .10
9.90

14.35
31.51
16.32
10.66
4 .18
2.52
8.55

Income before income taxes and securities gains or lo sse s......................................................

13.57

13.49

12.29

12.80

13.30

11.91

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

9.49
8.36
1.13
.81

.08
-.2 5
.25

.08
-.2 4
.24

Amounts per $100 of total assets5
Operating in co m e — t o t a l..................................................................................................
Operating exp e n se s— t o t a l ............................................................................................
Incom e before incom e taxes and secu rities gains or losses .................................................
Net in c o m e .......................................................
Recoveries credited to a llo w a n c e ...................................................................................
Lo sse s charged to a llo w a n c e .........................................................
Pro visio n fo r p o ssible loan lo sse s ..................................................................

Amounts per $100 of total equity capital5
Net in c o m e ......................................................................................
Cash dividend s declared on co m m o n s t o c k ................................................
Net change in capital accounts (less cash dividend s on com m on and preferred stock)

........

12.53
4 .8 9
7 .64

11.75
4.91
6.84

11.41
4 .42
6 .99

11.72
4 .3 6
7 .3 6

12.80
4 .42
1 4 .796

13.89
4.81
16.53

9 .79

8.52

8 .48

8 .66

9.76

11.64

6.51

6.73

6 .75

6.62

7.12

8.02

4.71

4 .9 7

5.00

4 .9 5

4 .80

5.44

.47

.50

.51

.52

.54

.64

6.93

5.92

5.53

5.50

6 .02

7.48

14,228

14,384

14,411

14,412

14,391

14,364

Special ratios5
Incom e on loans per $10 0 of loa ns2 ............................................
Income on U .S . Treasury and other U .S . G overnm en t agency and corporation
secu ritie s per $100 of those s e c u r it ie s .............................................................
Income on o b lig atio ns of states and po litical su b d iv is io n s per $100 of
th o se o b lig atio ns ..................................................................
S ervice charges on dem and d e posits in d o m estic offices per $100 of
th o se de posits ..............................................................................................
Interest paid on tim e and sav in g s deposits in d o m estic offices per $100 of
those de posits .......................................................................................................
N um ber of banks at end of period

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

Based on con solidated (in clu din g foreign) reports of in com e — see table 115, note 1.
^Includes federal fu nd s sold.
3Not available before 1976.
"In clu de s interest on federal fu n d s purchased, subordinated notes and debentures, and other borrow ed m oney.
5Ratios are based on averages of a ssets and lia b ilitie s — see table 115 notes 5 and 6.
in c lu d e s all changes; p rior to 1978 the ratio represents changes due to net incom e only.




1 92

T a b le 1 1 7 .

I N C O M E O F A L L I N S U R E D C O M M E R C I A L B A N K S IN T H E U N I T E D S T A T E S ( S T A T E S A N D O T H E R A R E A S ) , 1 9 7 9
(A m o u n ts in th o u s a n d s o f d o lla rs )

M em bers F.R . System
National

M em ber

N on­
m em bers
F.R . System

Operating
throughout
the year

Operating
less than
full year

89,886,053

29,026,821

31,369,479

150,200,882

81,471

1 0 2 ,1 92 ,4 59
10,6 6 9,7 2 6

6 1 ,8 0 1,8 5 4
6 ,9 3 1 ,22 4

1 9,454,915
3,142,851

2 0 ,9 3 5,6 9 0
595,651

102 ,152,334
10,6 6 2,9 2 8

4 0,125
6,798

6 ,1 2 6 ,3 4 0

3 ,5 5 1 ,15 8

999,274

1,575,908

6 ,1 0 6 ,47 6

19,864

1 0,6 8 6,2 7 7
6 ,95 5 ,22 2
1,198,071
1 ,07 3 ,25 4
2,375,711
2 ,5 2 8 ,75 2
3 ,6 4 1 ,6 0 7
2 ,8 3 4 ,93 4

5 ,36 7 ,18 8
3 ,74 8 ,21 6
7 54,858
7 30,483
1 ,34 5 ,01 9
1,316,051
2 ,453,021
1,886,981

1 ,571,506
1 ,146,880
232,966
2 55,830
7 63,524
291,667
556,801
610,607

3 ,74 7 ,58 3
2 ,06 0 ,12 6
210,247
86,941
2 67,168
921,034
6 31,785
337 ,3 46

1 0,6 7 9,1 1 6
6 ,9 5 2 ,41 8
1,19 7 ,13 3
1 ,07 3 ,24 7
2 ,3 7 5 ,7 1 0
2 ,52 6 ,99 3
3 ,6 4 0 ,46 6
2,834,061

7,161
2,804
938
7
1
1,759
1,141
873

Operating expenses— to ta l................................................................................................................................................

132,391,165

79,725,473

26,089,581

26,576,111

132,308,780

82,385

Sala rie s and em ployee b e n e f it s .....................................................................................................................................
Interest on tim e certificates of d e posit of $ 1 0 0 ,0 0 0 or m ore issu e d by dom estic offices ..................................
Interest on d e posits in foreign o f f ic e s ..........................................................................................................................
Interest on other d e p o s it s ..............................................................................................................................................
Expense of federal fu n d s purchased and secu ritie s sold under agreem ent to repurchase
in do m estic offices ....................................................................................................................................................
Interest on dem and notes issu ed to the U .S . Tre a su ry and other borrow ed m o n e y .............................................
Interest on sub ordinated notes and debentures ........................................................................................................
O ccupancy expense of bank prem ises, net, and furniture and equipm ent e x p e n s e .............................................
P ro visio n fo r p o ssib le loan lo ss ...................................................................................................................................
Other operating expenses ..............................................................................................................................................

2 1 ,5 6 2,1 6 7
18,1 7 8,6 5 0
2 4 ,5 2 3 ,8 0 7
2 9 ,1 8 5,4 1 4

12,403,664
10,7 2 3,4 6 0
1 6,9 0 3,5 2 9
15,7 3 7,0 4 0

3,71 8 ,17 3
3,594,811
7,35 0 ,36 4
3 ,43 4 ,40 4

5 ,44 0 ,33 0
3 ,86 0 ,37 9
2 69,914
1 0,0 1 3,9 7 0

2 1 ,5 4 0,3 3 0
18,1 6 4,6 5 7
2 4 ,5 2 3,8 0 7
2 9 ,1 7 0,5 7 9

21,837
13,993
0
14,835

1 2 ,3 5 6,2 8 5
3 ,16 7 ,24 7
501 ,4 70
6 ,2 8 1 ,49 6
3 ,7 8 5 ,64 2
12,8 4 8,9 8 7

8 ,498,431
2 ,01 4 ,74 3
265,383
3 ,5 7 1 ,28 2
2 ,25 1 ,73 4
7 ,35 6 ,20 7

3 ,0 5 1 ,09 6
963,284
99,526
1 ,135,114
677,863
2 ,06 4 ,94 6

806,758
189,220
136,561
1,57 5 ,10 0
8 56 ,0 45
3 ,4 2 7 ,83 4

12,355,601
3 ,1 6 6 ,8 8 6
501,451
6 ,2 7 4 ,0 4 5
3 ,7 8 2 ,9 8 8
1 2,8 2 8,4 3 6

684
361
19
7,451
2,654
20,551

Income before income taxes and securities gains or lo s s e s .....................................................................................

17,891,188

10,160,580

2,937,240

4,793,368

17,892,102

-9 1 4

4,742,118

2,753,735

890,572

1,097,811

4,741,365

753

Income before securities gains or lo s s e s ......................................................................................................................

13,149,070

7,406,845

2,046,668

3,695,557

13,150,737

-1 ,6 6 7

Securities gains (losses), gross .....................................................................................................................................

- 6 4 9 ,6 8 5
-2 9 9 ,7 2 7
-3 4 9 ,9 5 8

-3 4 9 ,3 8 3
- 1 6 3 ,2 4 0
-1 8 6 ,1 4 3

- 1 3 5 ,4 7 6
- 7 0 ,7 0 2
- 6 4 ,7 7 4

- 1 6 4 ,8 2 6
- 6 5 ,7 8 5
-9 9 ,0 4 1

- 6 4 9 ,7 2 8
-2 9 9 ,7 3 1
- 3 4 9 ,9 9 7

43
4
39

A p p licab le incom e taxes ................................................................................................................................................
S ecu ritie s gains (lo sses), net .......................................................................................................................................




C O R PO R ATIO N

150,282,353

Interest and fees on l o a n s ..............................................................................................................................................
Interst on balances with d e posito ry in stitu tion s ........................................................................................................
Incom e on federal fu n d s sold and secu ritie s pu rch ased under agreem ents to resell in
d o m estic offices ........................................................................... - a .........................................................................
Interest on U .S . Treasu ry secu ritie s and on ob lica tio n s of other U .S . Governm ent
agencies and c o rp o ra tio n s .........................................................................................................................................
Interest on o b lig atio ns of states and po litical s u b d iv is io n s .......................................................................................
Incom e from all other s e c u r it ie s ...................................................................................................................................
Incom e from direct lease f in a n c in g ..............................................................................................................................
Incom e from fid u ciary activities ...................................................................................................................................
Service charges on d e posit accou n ts in d o m e stic o f f ic e s .........................................................................................
Other service charges c o m m is s io n s , and fees ...........................................................................................................
Other operating in c o m e ..................................................................................................................................................

INSURANCE

Operating incom e— total ...................................................................................................................................................

DEPOSIT

Total
Incom e item

FEDERAL

BAN KS G R O U PED BY C LA SS O F BAN K

M em bers F.R . System
Income item

Total
National

M em ber

NonM em bers
F.R . System

Operating
throughout
the year

Operating
less than
full year

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

12,799,112

7,220,702

1,981,894

3,596,516

12,800,740

Extraordinary items, g ro s s ................................................................................................................................................

40,001

27,920

-2 ,2 9 2

14,376

A p p lica b le incom e taxes ................................................................................................................................................
E xtraordinary item s, net ................................................................................................................................................

39,990

626
3 9,375

1,957
25,963

9

-1 ,4 2 9
-8 6 6

98
14,278

625
39,365

1
10

Net In c o m e ..........................................................................................................................................................................

12,838,487

7,246,665

1,981,028

3,610,794

12,840,105

-1 ,6 1 8

4,455,170

123

Income before extraordinary it e m s

-1 ,6 2 8

MEMORANDA
4,455,293

2,649,709

4,447,484
7,809

2,648,199
1,510

Provision for income taxes— t o t a l...................................................................................................................................

U.S. Federal income taxes .............................................................................................................................................
U.S. States and local income taxes ..............................................................................................................................
Foreign income taxes ......................................................................................................................................................

2,653,069
902,579
887,369

4,443,017

2.592.452

1.442.452
437,592
712,408

Net loan losses (recoveries)— t o ta l................................................................................................................................

-2 ,5 6 4 ,2 6 0

1,198,985
3,763,245

Cash dividends declared on common stock ..............................................................................................................
Cash dividends declared on preferred s to c k ..............................................................................................................

Recoveries credited to allowance ................................................................................................................................
Losses charged to allowance .........................................................................................................................................

N um b er of b a n k s

366,988
282,775
168,678

818,441

1,032,124

843,629
182,212
6,283

2,652,558
902,332
887,369

511
247
0

-1 ,5 3 9 ,8 6 6

-4 1 2 ,0 9 7

-6 1 2 ,2 9 7

236,994
849,291

-2,5 6 3 ,8 1 7

-4 4 3

1,41 0 ,81 6

786,054

216,402

4 0 8 ,3 60

1,408,279

2,537

14,364

4,448

977

8 ,93 9

14,159

205

756,619
2,296,485

205,372
617,469

4,447,361
7,809

4,442,259

1,198,765
3,762,582

123
0

758

220
663

BANKS
193




977,578

971,515
6,063

O INSURED
F

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

N u m b er of fu ll-tim e equivalent em ployees at end of period

828,006

827,770
236

INCOME

Dividends declared on equity capital— t o t a l.................................................................................................................

1 94

Table 118.

BAN KS G RO UPED BY A M O U N T S OF A S SET S
(Am ounts in thousands of dollars)

Banks with assets of
$5.0 billion
or
more

5,843,893
3 ,848,478
87,009

8,874,771
5,97 3 ,9 3 0
189,421

2 6 ,62 1,70 2
18,0 22 ,37 8
1 ,2 71 ,8 45

6 5,2 47 ,6 29
45 ,0 65 ,6 72
8,743 ,8 03

346,901

437,111

1,16 0,32 5

1,862,024

1,582,703

633,315

805,291

1,93 8,60 7

1,961,962

1,118,584
7 0,527
34,317
213,819

395,236
43,342
26,018
108,465

563,042
79,796
69,553
192,640

1 ,38 3 ,98 5
123,722
186,156
684,514

1 ,451,375
739,117
722,446
1,031,974

322,034
189,736
100,671

373,607
298,124
153,226

136,929
152,306
65,894

205,339
239,748
118,900

463,996
83 0 ,02 4
556,150

420,005
1 ,577,577
1,671,674

8,4 6 2 ,1 3 8
1,716,726

8 ,885 ,7 9 4
1,780,268

12 ,489,490
2,4 5 6 ,9 6 6

5 ,078,158
987,827

7,8 1 3 ,4 8 8
1,559,431

2 3 ,8 4 2 ,0 9 0
4 ,1 7 0 ,2 1 5

58,920,769
7,35 0,44 9

409,132
0
2,554,504

813,059
0
3 ,896,113

1,085,137
0
3,763,523

1,931,312
4,668
4,635,451

887,537
12,055
1,537,892

1,365,699
159,772
2,057,023

4,46 2,9 61
1,60 4,37 4
4 ,7 1 0 ,9 0 5

7,1 3 5,6 86
22,74 2,9 3 8
5,44 6,7 69

6,891

46,351

95,265

188,569

586,353

441,026

799,133

3 ,4 9 4 ,3 6 2

6,69 6,9 07

2,167
951

21,595
9,854

50,628
22,785

75,609
32,820

126,737
62,719

57,710
27,263

109,072
51,537

4 6 0,3 1 8
1 34,309

2,26 2,78 6
159,102

12,281
7,758
31,092

66,145
40,963
159,249

316,937
188,159
780,724

480,917
268,816
1,117,829

524,143
2 75,097
1,160,628

766,132
354,944
1,564,208

322.279
1 5 1 |863
652,706

511,931
240,926
958,964

1 ,257,311
8 43 ,8 07
2 ,7 0 3 ,5 2 8

2,01 5,96 9
1,41 0,6 55
3,69 9,5 0 8

1 7 ,8 9 2 ,1 0 2

39,477

226,841

1,185,372

1 ,7 5 6 ,0 3 9

1,675,572

2,075,311

765,7 3 5

1,06 1 ,2 8 3

2 ,7 7 9 ,6 1 2

6,32 6,86 0

4 ,7 4 1 ,3 6 5

7,890

46,811

267,439

405,291

370,689

423,351

156,112

218,037

575 ,98 6

2,26 9,75 9

Less
than
$5 million

$5.0 million
to
$9.9 million

$25.0 m illion
to
$49.9 m illion

$50.0 m illion
to
$99.9 m illion

$100.0 m illion
to
$299.9 m illion

O p era ting in c o m e — t o t a l .........................................................
Interest and fees on lo a n s ....................................................
Interest on balances w ith d ep ository institutions
.
In com e on federal funds sold and securities
purchased under agreem ents to resell in
dom estic o f f i c e s ................................................................
Interest on U.S. Treasury securities and on
obligations o f other U.S. G overnm ent agencies
and c o rp o ra tio n s ................................................................
Interest on obligations of states and political
subdivision s .......................................................................
Incom e fro m all other s e c u r itie s ........................................
Incom e fro m direct lease fin a n c in g ...................................
In com e fro m fid ucia ry activities ........................................
Service charges on deposit accounts in dom estic
o ffic e s ...................................................................................
Other service charges, com m issions, and fees ............
Other operating incom e ......................................................

150,2 0 0 ,8 8 2
1 02,152,334
10 ,662,928

229,698
132,732
2,754

1,329,299
823,076
13,943

6,709,546
4,379,059
58,064

10 ,218,177
6 ,838,603
84,474

10,561,366
7,177,002
84,290

14,564,801
9,891,404
127,325

6 ,1 0 6 ,4 7 6

22,358

102,497

417,529

545,361

511,205

701,165

10,6 7 9 ,1 1 6
6 ,9 5 2 ,4 1 8
1,197,133
1 ,073,247
2 ,3 7 5 ,7 1 0

50,779

249,387

968,938

1,292,054

1,196,080

5,309
1,329
26
567

51,373
6,869
491
583

409,982
28,774
4,635
27,979

754,634
46,720
9,753
30,508

818,898
56,937
19,852
84,661

2 ,5 2 6 ,9 9 3
3 ,6 4 0 ,4 6 6
2 ,834,061

6,784
4,607
2,453

41,225
26,837
13,018

223,751
130,040
60,795

3 33,323
191,467
91,280

O perating expe n se s— to ta l ....................................................
Salaries and employee b e n e fits ..........................................
Interest on tim e certificates of d eposit of
$1 0 0 ,0 0 0 or m ore issued by dom estic offices
Interest on deposits in foreign offices ............................
Interest on other d e p o s its ....................................................
Expense of federal fun ds purchased and securities
sold under agreem ent fo repurchase in dom estic
o ff ic e s ...................................................................................
In te rest on dem and notes issued to the U.S. Treasury
and other borrow ed m o n e y .............................................
Interest on subordinated notes and d e b e n tu re s ............
Occupancy expense of bank prem ises, net, and
fu rn itu re and equipm ent e x p e n s e .................................
P rovision fo r possible loan l o s s ........................................
Other operating e x p e n s e s ....................................................

1 3 2 ,3 0 8 ,7 8 0
2 1 ,5 4 0 ,3 3 0

190,221
54,535

1,102,458
266,995

5,524,174
1,196,918

18 ,164,657
2 4 ,5 2 3 ,8 0 7
2 9 ,1 7 0 ,5 7 9

8,854
0
74,582

65,280
0
493,817

12,355,601

744

3 ,1 6 6 ,8 8 6
501,451

264
111

6 ,2 7 4 ,0 4 5
3 ,7 8 2 ,9 8 8
12 ,828,436

In com e b efore in com e taxe s and s e c u ritie s gains or
losses ........................................................................................
A p p lic a b le in co m e t a x e s .........................................................




$10.0 million
to
$24.9 million

$300.0 m illion
to
$499.9 m illion

CORPORATION

$ 1.0 billion
to
$ 4.9 billion

All
banks

INSURANCE

$500.0 m illion
to
$999.9 m illion

Incom e item

FEDERAL DEPOSIT

IN C O M E O F A LL INSU RED C O M M E RC IAL BANKS O P E R ATIN G TH R O U G H O U T 1979 IN TH E U N ITED STATES
(STATES AND O THE R AREAS)

Income before securities gains or losses......................

13,150,737

31,587

180,030

917,933

1,350,748

1,304,883

1,651,960

609,623

843,246

2,203,626

4,057,101

Securities gains (losses), g ro s s ....................................

-649,728

-837

-5,641

Applicable income t a x e s .............................................
Securities gains (losses), n e t .....................................

-299,731
-349,997

-6
-831

-1 ,2 72
-4 ,3 69

-33,629

-49,953

-9 ,0 6 5
-2 4 ,5 6 4

-54,023

-68,355

-17,091
-3 2 ,86 4

-30,971

-2 1 ,6 4 8
-3 2 ,3 7 5

-36,198

-3 1 ,5 2 3
-3 6 ,8 3 2

-186,854

-1 5 ,1 7 9
-1 5 ,79 2

-1 7 ,5 2 8
-1 8 ,6 7 0

-8 8 ,87 9
-9 7 ,97 5

-183,265

Income before extraordinary item s................................

12,800,740

30,756

175,661

893,369

1,317,884

1,272,508

1,615,128

593,831

824,576

2,105,651

3,971,376

Extraordinary items, gross ............................................

39,990

2,246

2,891

-2 4
2,270

6,029

17,219

69
2,822

7,463

3,624

-3 0 6
6,335

2,175
15,044

501
6,962

474
3,150

209
-2 ,3 2 4
2,533

0

Applicable income t a x e s .............................................
Extraordinary items, n e t .............................................

Net incom e.....................................................................

-9 7 ,54 0
-8 5 ,72 5

12

297

625
39,365

4
8

56
241

12,840,105

30,764

175,902

895,639

1,320,706

1,278,843

1,630,172

600,793

827,726

2,108,184

3,971,376

0
0

Memoranda
Dividends declared on equity capital— to ta l..................

Cash dividends declared on common stock ................
Cash dividends declared on preferred stock ................

4,447,361
7,809

4,455,170

6.916
0

6.916

34,108
35

34,143

192,670

192,336
334

321,688
506

322,194

373,637
804

374,441

552,454
1,016

553,470

203,805
3,234

207,039

319,487
1,222

320,709

917,292
658

917,950

1.525.638

Provision for income taxes— to ta l..................................

U.S. Federal income taxes .........................................
U.S. state and local income taxes ..............................
Foreign income taxes .................................................

4,442,259

2,652,558
902,332
887,369

7,888

6,787
1,101
0

45,595

39,084
6,511
0

258,350

224,728
33,622
0

388,269

339,610
48,558
101

348,735

300,787
47,599
348

394,003

329,825
64,178
0

141,434

118,514
22,910
10

200,983

153,283
45,407
2,293

334,226
107,199
43,358

484,783

2,172,219

Net loan losses (recoveries)— total ..............................

-2,563,817

1,198,765
3,762,582

-5,691

2,495
8,186

-30,371

14,347
44,718

-136,685

62,884
199,569

-194,577

88,665
283,242

-200,152

87,723
287,875

-255,207

102,575
357,782

-119,394

48,748
168,142

-178,086

67,215
245,301

-597,566

247,566
845,132

476,547
1,322,635

Number of full-time equivalent employees
at end of pe riod...........................................................

1,408,279

4,043

19,088

86,494

127,138

132,183

194,059

72,430

110,006

273,921

388,917

Number of banks ...........................................................

14,159

728

2,066

4,694

3,365

1,764

1,049

170

148

142

33

-846,088

BANKS
195




805,713
525,247
841,259

INCOME O INSURED
F

Recoveries credited to allowance ...............................
Losses charged to allowance .....................................

1.525.638
0

1 96

Table 119.

RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1979 IN THE UNITED STATES
(STATES AND OTHER AREAS)
BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets of—
All
banks

Less
than
$5 million

$5.0 million
to
$9.9 million

Operating Incom e— t o t a l ................................................................................
Interest and fees on lo a n s ............................................................................
Interest on balances with depository in s titu tio n s ....................................
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 c o rp o ra tio n s ...............................................
Interest on obligations of states and political subdivisions ..................
Income from all other s e cu ritie s.................................................................
Income from fiduciary a c tiv itie s .................................................................
Service charges on deposit accounts in domestic offices ....................
Other service charges, commissions, and fees ......................................
Other operating income ..............................................................................

$100.00
68.01
7.10

$100.00
57.78
1.20

$100.00
61.92
1.05

Income item

$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

$5.0 billion
or
more

$500.0 million
to
$999.9 million

$1.0 billion
to
$4.9 billion

$100.00
65.85
1.49

$100.00
67.32
2.13

$100.00
67.70
4.78

$100.00
69.08
13.40

$300.0 million
to
$499.9 million

Amounts per $100 of operating income
$100.00
66.92
.83

$100.00
67.95
.80

$100.00
67.91
.87

4.07

9.73

7.71

6.22

5.34

4.84

4.81

5.94

4.93

4.36

2.85

7.11
4.63
.80
1.58
1.68
2.42
2.60

22.11
2.31
.58
.25
2.95
2.01
1.08

18.76
3.86
.52
.04
3.10
2.02
1.02

14.44
6.11
.43
.42
3.33
1.94
.98

12.64
7.39
.46
.30
3.26
1.87
.99

11.33
7,75
.54
.80
3.05
1.80
1.14

10.87
7.68
.48
1.47
2.57
2.05
1.29

10.84
6.76
.74
1.86
2.34
2.61
1.57

9.08
6.34
.90
2.17
2.31
2.70
2.12

7.28
5.20
.46
2.57
1.74
3.12
2.79

3.01
2.22
1.13
1.58
.64
2.42
3.67

Operating expenses— total ............................................................................
Salaries and employee be ne fits...................................................................
Interest on deposits in domestic o ffic e s ...................................................
Interest on deposits in foreign offices .....................................................
Expense of federal funds purchased and securities sold under
agreements to repurchase in domestic o ffic e s ....................................
Interest on demand notes issued to the U.S. Treasury and other
borrowed m o n e y.......................................................................................
Occupancy expense of bank premises, net, and furniture and
equipment expense..................................................................................
Provision fo r possible loan l o s s .................................................................
Other operating expe n se s...........................................................................

88.09
14.34
31.51
16.33

82.81
23.74
36.32
.00

82.94
20.09
42.06
.00

82.33
17.84
44.17
.00

82.81
16.80
46.08
.00

84.13
16.86
45.90
.00

85.75
16.86
45.09
.03

86.90
16.90
41.51
.21

88.04
17.57
38.57
1.80

89.56
15.66
34.46
6.03

90.30
11.27
19.28
34.86

8.23

.32

.52

.69

.93

1.79

4.03

7.55

9.00

13.13

10.26

2.44

.16

.23

.47

.72

1.03

1.30

1.45

1.81

2.23

3.71

4.18
2.52
8.54

5.35
3.38
13.54

4.98
3.08
11.98

4.72
2.80
11.64

4.71
2.63
10.94

4.96
2.60
10.99

5.26
2.44
10.74

5.51
2.60
11.17

5.77
2.71
10.81

4.72
3.17
10.16

3.09
2.16
5.67

Income before income taxes and securities gains or lo s s e s ..................

11.91

17.19

17.06

17.67

17.19

15.87

14.25

13.10

11.96

10.44

9.70

9.49
8.36
1.13
.81
.08
-.2 4
.24

7.35
6.09
1.26
.98
.08
-.2 6
.25

7.88
6.54
1.34
1.04
.09
-.2 7
.24

8.48
6.98
1.50
1.13
.08
-.2 5
.24

8.83
7.31
1.52
1.14
.08
-.2 4
.23

9.09
7.65
1.44
1.10
.08
- .2 5
.24

9.36
8.03
1.33
1.05
.07
-.2 3
.23

9.00
7.82
1.18
.93
.08
-.2 6
.23

9.39
8.27
1.12
.88
.07
-.2 6
.25

9.44
8.45
.99
.75
.09
- .3 0
.30

9.96
8.99
.97
.61
.07
-.2 0
.22

13.91
4.82

8.03
1.81

10.90
2.11

13.14
2.82

14.10
3.43

14.30
4.18

14.52
4.92

13.49
4.58

13.49
5.21

12.72
5.54

14.83
5.70

9.05

12.09

14.46

15.98

15.85

16.57

16.17

15.25

18.00

16.06

10.32

Amounts per $100 of total assets
Operating income— t o t a l..................................................................................
Operating expenses— total ..............................................................................
Income before income taxes & securities gains or losses ........................
Net in c o m e ........................................................................................................
Recoveries credited to a llo w a n c e ...................................................................
Losses charged to allowance .........................................................................
Provision fo r possible loan losses .................................................................
Amounts per $100 of equity capital
Net in c o m e ........................................................................................................
Cash dividends declared on common s to c k .................................................
Net change in capital accounts (less cash dividends on common and
preferred stock) ...........................................................................................

16.18

Special ratios
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 s e c u ritie s ...............................
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 d eposits...............................................................................................
Interest paid on time & savings deposits in domestic offices per
$100 of those d e p o s its ................................................................................

11.65

8.19

8.80

9.68

10.75

11.31

10.87

11.58

11.62

12.58

8.02

6.74

7.14

7.51

7.91

8.04

8.08

8.08

7.89

8.07

8.46

5.44

4.87

4.58

4.84

5.10

5.21

5.40

5.15

5.36

5.49

6.21

.64

.63

.82

.98

1.02

.98

.84

.69

.71

.59

.33

7.48

5.13

5.60

6.17

6.68

6.96

7.32

7.08

7.37

7.62

8.86

Number of banks at end of period ................................................................

14,159

728

2,066

4,694

3,365

1,764

1,049

170

148

142

33




FEDERAL DEPOSIT INSURANCE CORPORATION

$100.00
65.26
.87

Table 120.

INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979

(Amounts in thousands of dollars)

Income item

Operating incom e— t o t a l
Interest and fees on:

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

Real estate loans, n e t
Other lo a n s

Operating expenses— t o t a l ...............................................................................................................

1975

1976

1977

1978

1979

7,187,542

8,331,083

9,433,998

10,668,024

11,966,717

4,503,214
337,884

4,817,741
283,416

5,225,101
334,625

5,745,032
433,478

6,500,885
601,510

7,173,749
490,742

5 67,577
9 29,613
74,858
150,841
191,401
3 2,9 6 8
139,127

8 69,038
1 ,16 6 ,75 5
142,958
200 ,8 49
207,398
3 9,825
144,534

1,09 6 ,58 0
1 ,294,958
166,854
255,214
227,542
47,6 1 4
166,726

1,22 9 ,60 7
1 ,32 4 ,37 0
191,868
2 93 ,0 24
2 61 ,6 77
5 7,307
2 07 ,7 76

4 08,238
1,380,468
1,351,138
200,592
260,660
287,779
75,930
337,421

N/A

4 03 ,9 40
7 43,944
4 7,028
1 25,718
170,273
2 7,875
1 33,715

N/A

N/A

N/A

N/A

6,624,666

7,646,301

8,519,950

9,503,400

11,060,177

3,778,695
1,717,147

4,160,435
2,127,531

4,223,409
2,774,056

3,930,597
3,776,077

N/A

N/A

3,229,489
5,729,297

55,168

4 5,3 6 5

4 6,8 2 7

1 22,436

N/A

N/A

N/A

N/A

4 27 ,6 42
114,206
4 3,8 1 5
10,034
324 ,1 38

4 8 6 ,3 29
135,754
52,543
21,8 3 6
3 77,194

5 54,594
158,044
62,285
78,732
459 ,3 15

6 26,108
1 72,059
73,863
69,950
533,678

719,004
189,459
88,131
109,426
5 68,270

Income before income taxes and net realized gains or losses

590,882

562,876

684,782

914,048

1,164,624

906,540

Applicable income and franchise taxes

161,870

171,549

227,088

280,168

310,945

259,173

Interest and d ividend s on:

Savings deposits (including deposits subject to transfer by o rd e r) ....................................
Time d ep o sits ..............................................................................................................................

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

Expense of federal fu nd s purchased and secu ritie s sold under agreement to repurchase
Interest on other bo rrow ed m o n e y
Interest on sub ordinated notes and d e b e n tu r e s .........................................................................
S alaries and em ployee benefits
O ccupancy expense of bank prem ises, net
Furniture and equipm ent e x p e n s e
P ro visio n for p o ssib le loan lo sse s
Other operating e x p e n s e s

..........................................................................
Income before net realized gains or lo s s e s .....................................................................

N/A
66,110
N/A

N/A

N/A

138,398
120,836
3 5,894
819,502
210,839
103,176
65,204
6 07,542

429,012

391,327

457,694

633,880

853,679

647,367

.....................................................................................
Net realized gains or losses, gross ................................................................................
S ecu ritie s ..................................................................................................................
Extraordinary it e m s ......................................................................................................

-111,501
N/A

-2 5 ,8 9 9
N/A

49.283
N/A

47.634
N/A

-4 4 ,9 4 1
N/A

- 1 ,0 3 7

-111,501

-2 5 ,8 9 9

49.283

47.634

-4 4 ,9 4 1

770

-1 1 1 ,5 0 1

- 2 5 ,8 9 9

4 9.283

47.634

-4 4 ,9 4 1

N/A

N/A

N/A

N/A

N/A

- 1 2 ,8 4 7
13,617

Net in c o m e ............................................................................................................................................

317,511

365,428

506,977

681,514

808,738

BANKS

5,902,669

3,607,170
1,309,554

INCOME O INSURED
F

.................................................................................................................
...................................................................................................................................
Incom e on federal fu nd s sold and secu ritie s purchased under agreem ents to r e s e ll.............
Interest on U .S . Treasu ry, agency, and corp oration o b lig a tio n s .............................................
Interest on corp orate b o n d s ..........................................................................................................
Interest on o b lig atio ns of States and p o litical sub d ivisio n s of the U .S .....................................
Interest on other bo nds, notes, and debentures .......................................................................
D ivid ends on s t o c k ..........................................................................................................................
Other service charg es, c o m m issio n s, and fees .........................................................................
Other operating incom e .................................................................................................................

1974

6,493,551

649,174

Net realized gains or losses, net ....................................................................................................
Plus: A pp licable incom e taxes

197




1,807

INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979-C O N TIN U E D
(Amounts in thousands of dollars)

Incom e item

1 98

T a b le 120.

1974

1975

1976

1977

1978

1979

Memoranda
3 69,166

4 07,314

5 45,665

8 34 ,7 17

826 ,4 15

6 49,415

N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A

11,213
2,184
45,568
8,558

P ro v isio n fo r in com e and fran ch ise ta xe s— t o t a l ............................................................................
U .S . Federal incom e t a x e s .............................................................................................................
State and local incom e and fran ch ise t a x e s .................................................................................

161,870
8 1,0 8 9
80,781

171,549
66,543
105,006

227,088
1.07,801
1 19,287

280,168
139,151
141,017

3 10 ,9 45
171,002
139,943

259,173
127,363
131,810

94.479.755

101.872.663

114.218.358

126.893.697

137.596.852

145.330.504

1 ,64 9 ,65 3
5 ,91 3 ,00 6
1 6,4 8 5,6 4 6
64,803,111
1 ,99 0 ,41 6
2 09 ,9 08
3 ,4 2 8 ,0 1 5

1 ,9 4 0 ,6 8 5
7 ,8 5 2 ,9 8 8
1 9,1 2 8 ,2 5 5
6 6 ,7 3 4 ,2 7 2
2 ,3 4 6 ,3 5 0
3 24 ,6 5 6
3 ,5 4 5 ,4 5 7

1 ,76 7 ,48 8
1 1 ,5 8 4,0 6 0
23,091,101
7 0 ,2 5 8 ,1 7 7
2 ,8 0 3 ,7 2 3
4 6 5 ,0 7 0
4 ,2 4 8 ,7 3 9

1 ,96 2 ,32 5
1 4 ,6 1 0,9 0 0
2 5 ,9 0 7 ,2 0 8
7 5 ,3 8 9 ,1 4 0
3 ,3 3 7 ,1 3 9
4 85 ,2 84
5,201,701

2 ,3 4 2 ,9 0 7
1 5,9 2 6 ,9 8 6
2 7 ,1 6 2 ,3 0 9
8 1 ,9 1 4 ,8 3 7
3 ,8 9 6 ,9 1 5
4 1 0 ,9 1 8
5 ,9 4 1 ,9 8 0

3 .0 8 4 .3 6 3
1 6,8 4 0,2 8 4
2 6,9 4 2 ,5 5 8
8 6 ,6 8 2 ,6 1 6
4 ,6 7 2 ,8 0 5
339 ,5 14
6 .7 6 8 .3 6 4

Liabilities and surplus accounts— total ..........................................................................................

94.479.755

101.872.663

114.218.358

126.893.697

137.596.852

145.330.504

Total d e p o s it s ...................................................................................................................................
...........................................................................................................................
...............................................................................................................................
........................................................................................................................
All other lia b ilit ie s .............................................................................................................................
S ubordinated notes and d e b e n tu re s ..............................................................................................
Total s u rp lu s a c c o u n t s ....................................................................................................................

56,878,427
28,175,681
916,668

8 5 ,9 7 0,7 7 6

59,730,943
32,305,817
978,310

9 3 ,0 1 5 ,0 7 0

1 0 4 ,7 11 ,2 48

116,564,671

1 25 ,6 2 0 ,2 8 7

1 31 ,8 42 ,3 43

1 ,81 4 ,04 5
143,958
6 ,55 0 ,97 6

1 ,79 1 ,23 0
1 72 ,5 10
6 ,8 9 3 ,8 5 3

1 ,855,561
2 03 ,3 13
7 ,4 4 8 ,2 3 6

1 ,94 0 ,48 4
262 ,1 02
8 ,1 2 6 ,4 4 0

2 ,7 2 4 ,6 5 5
3 51 ,0 30
8 ,9 0 0 ,8 8 0

3 ,5 5 5 ,3 5 9
3 73 ,8 04
9 ,5 5 8 ,9 9 8

N um ber of fu ll-tim e equivalent em ployees on payroll (end of p e r io d ) .........................................

3 7,4 9 4

40,261

4 5 ,0 4 0

4 9,4 6 6

5 3,8 0 6

53,708

N um ber of banks (end of p e r io d ) .......................................................................................................

320

329

329

323

325

324

Real estate lo ans
Other lo a n s
Real estate lo ans
Other lo a n s

Average assets and lia b ilitie s 1
Assets— total
Cash and due from deposito ry in s t itu tio n s ...................................................................................
U .S . Treasury, agency and corp oration o b lig a tio n s ...................................................................
All other securities ...........................................................................................................................
Real estate lo a n s ...............................................................................................................................
Other loans ........................................................................................................................................
Real estate ow ned other than bank p r e m is e s ..............................................................................
All other assets (including Federal fu nd s sold and secu rities purchased) ..............................

Savings deposits
Time deposits
Demand deposits

1Averages of am ounts reported at beginning, m iddle and end of year.

Note: N /A - Data not available.




64,969,577
38,718,326
1,023,345

69,232,480
46,005,857
1,326,334

68,634,606
55,267,097
1,718,584

59,979,665
69,619,528
2,243,150

FEDERAL DEPOSIT INSURANCE CORPORATION

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

R e cove rie s credited to allow ance fo r p o ssib le loan losses:
...............................................................................................................................
........................................................................................................................................
L o s se s charged to allow ance fo r p o ssib le loan losses:
...............................................................................................................................
........................................................................................................................................

Changes in s u rp lu s accou n ts, net

T a b le 121.

RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979

Incom e item

1974

1975

1976

1977

1978

1979

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

69.35
5.20

67.03
3.94

62.72
4.02

60.90
4.59

60.93
5.64

59.95
4.10

N /A
11.53
12.41
1.80
2.75
2.45
0.54
1.95

3.41
11.54
11.29
1.68
2.18
2.40
0.63
2.82

Amounts per $100 of operating income
Operating incom e— t o t a l....................................................................................................................
Interest and fees on:

Real estate loans, n e t .................................................................................................................
Other lo a n s ...................................................................................................................................

N /A
6 .22
11.46
0.72
1.94
2.62
0.43
2.06

N /A
7.90
12.93
1.04
2 .10
2.66
0 .46
1.94

N /A
10.43
14.00
1.72
2.41
2 .49
0.48
1.73

N /A
11.62
13.73
1.77
2.71
2.41
0.50
1.77

92.17

91.78

90.31

89.08

92.42

55.55
20.17

52.57
23.89

49.90
25.54

44.77
29.40

36.82
35.40

Expense of federal fu n d s purchased and secu rities sold under agreement to repurchase . . .
Interest on other bo rrow ed m o n e y ...............................................................................................
Interest on sub ordinated note: and d e b e n tu r e s .........................................................................
S alaries and em ployee benefits ....................................................................................................
O ccupancy expense of bank prem ises, net ................................................................................
Furniture and equipm ent e x p e n s e ..................................................................................................
P ro v isio n for p o ssib le loan lo sse s ...............................................................................................
Other operating e x p e n s e s ...............................................................................................................

N /A
1.02
N /A
6.59
1.76
0 .67
0.15
4 .99

N /A
0 .54
N /A
6.66
1.90
0.75
0 .95
5.51

N /A
0.50
N /A
6.64
1.82
0.78
0.74
5.66

N /A
1.15
N /A
6.74
1.78
0.83
1.03
5.33

26.98
47.88

interest and d ividend s on:

N /A
0 .77
N /A
6.77
1.89
0.73
0 .30
5 .25

1.16
1.01
0.30
6.85
1.76
0.86
0.54
5.08

Income before income taxes and net realized gains or lo s s e s ..................................................

9.10

7.83

8.22

9.69

10.92

7.58

Applicable income and franchise taxes .........................................................................................

2.49

2.39

2.73

2.97

2.92

2.17

Income before net realized gains or lo s s e s ..................................................................................

6.61

5.44

5.49

6.72

8.00

5.41

Net realized gains or losses, net ....................................................................................................

-1 .7 2

-0 .3 6

0.59

0.50

- 0 .4 2

0.01

N /A

N /A

N /A

N /A

N /A

- 0 .0 1

Net realized gains or losses, gross ................................................................................................

-1 .7 2

- 0 .3 6

0.59

0.50

- 0 .4 2

0.02

S ecu ritie s .........................................................................................................................................
E xtraordinary it e m s ..........................................................................................................................

- 1 .7 2
N /A

-0 .3 6
N /A

0 .59
N /A

0.50
N /A

-0 .4 2
N /A

-0 .1 0
0.12

Net in c o m e ............................................................................................................................................

4.89

5.08

6.08

7.22

7.58

BANKS

90.90

Savings deposits (including deposits subject to transfer by o rd e r) .....................................
Time deposits ..............................................................................................................................

Operating expenses— total ...............................................................................................................

INCOME O INSURED
F

Incom e on federal fu n d s sold and secu ritie s purchased under agreem ents to r e s e ll.............
Interest on U .S . T reasu ry, agency, and corp oration o b lig a tio n s .............................................
Interest on corp orate b o n d s ..........................................................................................................
Interest on o b lig atio ns of States and po litical sub d ivisio n s of the U .S .....................................
Interest on other b o nd s, notes, and debentures .......................................................................
D ivid en d s on s t o c k ..........................................................................................................................
Other service ch arq es, c o m m issio n s, and fees .........................................................................
Other operating in com e .................................................................................................................

5.42

Plus: A pp licable in com e taxes

199




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

200

T a b le 121.

RATIO INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979-C O N TIN U E D

Incom e item

1974

1975

1976

1977

1978

1979

Amounts per $100 of total assets1
8 .24
7.61
0.63
0.18
0 .45

6 .87
6 .25
0 .62
0 .17
0 .45
-0 .1 2

7 .06
6 .50
0 .56
0.17
0 .39
-0 .0 3

7 .29
6 .69
0.60
0 .20
0.40
0.04

7 .43
6.71
0.72
0 .22
0.50
0.04

7 .7 5
6 .90
0 .85
0.23
0.62
-0 .0 3

-0 .1 2
0 .33

-0 .0 3
0 .36

0.04
0.44

0.04
0.54

-0 .0 3
0 .59

6.83
6 .59
6 .95
16.97

7.23
7.04
7.22
12.08

7.50
7.44
7 .44
11.94

7.51
7.51
7 .62
12.99

7.72
7.62
7.94
15.44

8 .20
7.79
8.28
10.50

5 .78
4 .85

5 .97
5.30

6.06
6.81

6.07
8 .39

6.22
9.09

6.91
6 .79

320

329

329

323

325

324

00
.0

00
.0

00
.0

00
.0

00
.0

00
.0
00
.0
00
.0
0 .45

Special ratios1
Interest on U .S . Treasury, agency, and corp oration o b lig atio ns per $100
of U .S . Treasury, agency, and corp oration o b lig a t io n s .............................................................
Interest and d ividend s on all other securities per $100 of all other s e c u r it ie s ............................
Interest and fees on real estate loans per $100 of real estate loans, n e t .....................................
Interest and fees on other loans per $100 of other loans, n e t ......................................................
Interest and dividend s on savings and tim e d eposits per $100
of savings and tim e deposits .........................................................................................................
Net incom e per $100 of total surp lu s accounts
N um ber of banks (end of period)
^ e e note to Table 120.
Note: N /A - Data not available.




FEDERAL DEPOSIT INSURANCE CORPORATION

O perating in co m e — t o t a l............................................................................................
O perating expen se— t o t a l ...................................................................................................
Incom e before in com e taxes and net realized g a ins or l o s s e s ......................................................
A p p licab le incom e and franchise t a x e s ..............................................................................................
Incom e before net realized gains or lo sse s .....................................................................................
Net realized gains or lo sse s, g r o s s .....................................................................................................
A p p licab le incom e t a x e s ......................................................................................................................
Net realized gains or lo sses, n e t .........................................................................................................
Net in c o m e ............................................................................................................................................

Number and deposits of banks closed because of financial difficulties, 1934— 1979

Table 123.

Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during
1979

Table 124.

Depositors, deposits, and disbursements in failed banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934— 1979

Banks grouped by class of bank, year of deposit payoff or deposit assumption , amount of
deposits, and State
Recoveries and losses by the Federal Deposit Insurance Corporation on principal disburse­
ments for protection of depositors, 1934— 1979

Table 126.

Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January
1, 1934— December 31, 1979

Table 127.

Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of
operations, September 11, 1933, to December 31, 1979

Table 128.

Protection of depositors of failed banks requiring disbursements by the Federal Deposit
Insurance Corporation, 1934— 1979

Table 129.

Insured deposits and the deposit insurance fund, 1934— 1979

201




LOSSES

Table 125.

CLOSED; FDIC INCOME. DISBURSEMENTS, AND

Table 122.

BANKS

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:
FDIC INCOME, DISBURSEMENTS, AND LOSSES

202

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 w hen the deposits of a failing bank are assumed
by another insured bank w ith the financial aid of the Corporation. In deposit
payoff cases, the disbursement is the am ount paid by the Corporation on
insured deposits. In deposit assumption cases, the principal disbursement
is the am ount loaned to failing banks, or the price paid for assets purchased
from them; additional disbursements are made in those cases as advances
for protection of assets in process of liquidation and for liquidation
expenses.
Under its section 13(c) authority, the Corporation has made disburse­
ments to four operating banks. The am ounts 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
inform ation obtained from State banking departments, field supervisory
officials, and other sources. The Corporation received no reports of
noninsured bank closures due to financial difficulties in 1979.
For detailed data regarding noninsured banks that suspended in the years
1934-1962, see the Annual Report for 1963, pp. 27-41. For 1963-1979, 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,
December 31, 1979.

FEDERAL DEPOSIT INSURANCE CORPORATION

Deposit insurance disbursements

Table 122.

NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1979
Number

Deposits (in thousands of dollars)
Insured

Insured

136

556

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
8
6
3
6
4
14
17
6
7
10

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
9
7
6
1
6
4
13
16
6
7
10

1
1
‘' 4
1
3
1
1
2
. .. .
1
5

....

4
2
'‘ i
4
1

■ -j4
•
"2
' ■i 4
1

8

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
10

6,081,926
37,332
13,988
28,100
34,205
60,722
160,211
142,788
29,796
19,540
12,525
1,915
5,695
494
7,207
10,674
9,217
5,555
6,464
3,313
45,101
2,948
11,953
11,690
12,502
10,413
2,593
7,965
10,611
4,231
23,444
23,867
45,256
106,171
10,878
22,524
40,134
55,244
132,152
99,784
971,296
1,575,832
340,5744
865,659
205,208
854,154
110,696

143,500

5,938,426

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
1,915
5,695
347
7,040
10,674
6,665
5,513
3,408
3,170
44,711
998
11,953
11,330
11,247
8,240
2,593
6,930
8,936
3,011
23,444
23,438
43,861
103,523
10,878
22,524
40,134
54,821
132,152
20,480
971,296
1,575,832
339,574
864,859
205,208
854,154
110,696

'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 ;bdo4
800

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
5,475
5,513
3,408
3,170
18,262
998
11,953
11,330
1,163
8,240
2,593
6,930
8,936

3 ;o i l
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
110,696

Annual Report

Annual Report
Annual Report

203

For information regarding each of these banks, see table 22 in the 1963
(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.
^For information regarding these cases, see table 23 of the
for 1963.
For information regarding each bank, see the
for 1958, pp. 4 8 - 8 3 and pp. 9 8 -1 2 7 , and tables regarding deposit
.insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1979.
Revised.




Total

Without
disbursements
by FDIC2

LOSSES

692

1934 .............................
1935 .............................
1936 .............................
1937 .............................
1938 .............................
1939 .............................
1940 .............................
1 9 4 1 .............................
1942 .............................
1943 .............................
1944 .............................
1945 .............................
1946 .............................
1947 .............................
1948 .............................
1949 .............................
1950 .............................
1 9 5 1 .............................
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 .............................
1979 .............................

Total

Non­
insured1

INCOME, D ISB URSE M E NTS , AND

T otal.............................

With
disbursements
by FDIC3

CLOSE D; FDIC

Total

Without
disbursements
by FDIC2

BANKS

Total

Non­
insured1

Year

Case
Number
Deposit
payoff
311

204

Table 123.

INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1979

Class
of bank

Village Bank
Pueblo West, Colorado

Number of
depositors or
accounts1

M

Name and location

1,394

First payment to
depositors or
disbursements by FDIC

Date of closing or
deposit assumption

FDIC
,
disbursements

Receiver or liquidating agent
or assuming bank

Federal Deposit Insurance Corp.

2,415,657

Federal Deposit Insurance Corp.

September 24, 1979

3,812,168

Federal Deposit Insurance Corp.

2,763,931

American Banking Company
Moultrie, Georgia
Exchange National Bank of
Birmingnam, Birmingham, Alabama

June 16,1979
September 21, 1979

$

Bank of Enville
Enville, Tennessee

NM

949

313

The Farmers State Bank
Protection, Kansas

NM

1,206

Toney Brothers Bank
Doerun, Georgia

NM

1,470

January 5, 1979

N

3,611

June 14, 1979

16,954,189

NM

5,270

July 14, 1979

7,103,216

Independence Bank of Chicago
Chicago, Illinois

July 14, 1979

15,709,045

Independence Bank of Chicago
Chicago, Illinois

September 28, 1979

20,662,173

Bank of Jackson, N.A.
Jackson, M ississippi

Deposit
assumption
245
246

Southern National Bank
Birmingham, Alabama

247

The Guaranty Bank & Trust
Company, Chicago, Illinois

248

Gateway National Bank of
Chicago, Chicago, Illinois

N

3,700

NM

11,911

249

Fidelity Bank
Utica, M ississippi

250

American National Bank
Houston, Texas

N

5,100

October 12, 1979

1,881,904

American Bank
Houston, Texas

251

Livingston State Bank
Livingston, New Jersey

NM

7,226

October 12, 1979

5,412,496

Fidelity Union Trust Company
Newark, New Jersey

Case
number
Deposit
payoff
311
312
313
Deposit
assumption
245
246
247
248
249
250
251

$

U.S. Govern­
ment
obligations

124,835
252,773
411,928

$ 1,563,260
696,673
820,688

647,169
2,396,093
570,586
800,129
1,682,440
3,151,735
1,091,879

455,364
2,133,472
1,605,871
12,284,259
3 ,200,785
2,173,135
1,225,570

Other
securities

$

Loans,
discounts, and
overdrafts

100,000
115,400
104,935

$ 2,417,586
2,370,970
2,784,062

907,439
3 ,236,735
1,279,356
1,453,326
1,246,976
231,605
5,000

3,662,246
21,319,834
4,038,903
1,722,914
24,305,501
4,838,525
9,249,679

Banking house,
furniture, and
fixtures

$

336,919
31,864
212,951

$240,173

140,713
1,434,119
148,523
382,742
1,272,332
101,798
870,404

33,500
738,259

2 5 4 J2 2

67540
136,075
50,000

1Figures as determined by FDIC Agents after adjustments of books of the bank immediately following its closing,
in c lu d e s disbursements made to December 31, 1979, plus additional disbursements estimated to be required in these cases.




Other
assets

Other
real estate

$

Total

276,646
536
449,083

$ 5,059,419
3,468,216
5,037,769

$ 4,862,244
3,139,078
4,685,955

23,033
1,327,048
233,093
283,350
973,665
112,403
238,360

5,869,464
32,585,560
7,876,332
16,933,260
32,817,774
10,659,201
12,680,892

5,790,622
24,031,970
7,415,842
9,229,970
30,223,164
10,353,000
11,020,610

Capital
stock

Other
liabilities

Deposits

$

104,317
57,467
46,099

236,488
7,181,957
322,608
7,718,431
494,911
318,140
1,176,919

$

248,380
157,510
225,000

253,900
2.115.000
742.500
1.458.000
424.500
630,808
910,000

Other capital
stock

$

(155,522)
114,161
80,715

(411,546)
743,367
604,618
(1,473,141)
1,675,199
(642,747)
426,637

C O RPO RA TIO N

Liabilities and capital accounts

Assets1
Cash and
due from
banks

INSURANCE

312

DEPOSIT

June 19, 1979

January 29, 1979

FEDERAL

3,673,992

January 26, 1979

T a b le 1 24 .

Classification

Payoff
cases

Deposits1
(in thousands of dollars)

Number of depositors1

Assum p­
tion
cases

Total

Payoff
cases

Assum p­
tion
cases

Total

Payoff
cases

Disbursements by FDIC1
(in thousands of dollars)

Assum p­
tion
cases

Total

All banks .....................
Class of bank

558

307

National ..................
State member F.R.S.
Nonmember F.R.S. .

104
33
421

36

12

259

251

21
162

Advances and
expenses2

Principal disbursements
Payoff
cases3

Assum pt­
io n
cases

Payoff
cases5

Assum p­
tion
cases

6 2 7 ,2 8 6

3 ,1 7 9 ,6 1 6

6 ,0 0 7 ,9 7 5

4 8 2 ,1 6 4

5 ,5 2 5 ,8 1 1

4 ,7 9 0 ,0 4 8 8

3 3 5 ,8 0 0

4 ,4 5 4 ,2 4 8

9 ,6 3 4

2 3 7 ,0 3 3

1,551,371

108,815
91,650
426,821

1,442,556

3,305,731

3,191,952

3 3 9 ,3 3 5
1 ,3 9 7 ,8 2 5

4 4 7 ,8 6 7
2 ,2 5 4 ,3 7 7

113,779
44,023
324,362

3,120,632
340,142
1,329,274

65,058
34,248
236,494

3,055,574
305,894
1,092,780

3,051
1,316
5,267

125,425
24,579
87,029

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

4 3 0 ,8 8 5
1 ,8 2 4 ,6 4 6

4 0 3 ,8 4 4
1 ,9 3 0 ,0 1 5

Year7




9
25
69
75
74
60
43
15

20
5

1
27
25
24
28
24
7
14

1

2
1

1

1

1
1

5
3
4
4

5
3
4
4

2

2

3

3

5

1
1

2
2

2
1
4
3

1

2
2

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

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
6,752
24,469
1,811
9,710
9,732
5,207

1,968
13,320
27,508
33,349
59,684
157,772
142,430
29,717
19,185
12,525
1,915
5,695
347
7,040
10,674
5,475
5,513
3,408
3,170
18,262
998
11,953
11,330
1,163
8,240
2,593
6,930

1,968
9,091
11,241
14,960
10,296
32,738
5,657
14.730
1,816
6,637
456

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
2,990
2,552
3,986
1,885
1,369
5,017
913
2,346
663
' ' 230

43
108
67
103
93
162
89
50
38
53
9

272
934
905
4,902
17,603
17,237
1,479
1,076
72
37
96

11

393

200

106
87

20

38
51
82

166
524
127
195
428
145
665
51
' ' 31

205

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

LOSSES

3 ,8 0 6 ,9 0 2

CLOSED; FDIC INCOME, DISBURSEMENTS, AND

Number of banks

BANKS

D E P O S I T O R S , D E P O S I T S , A N D D I S B U R S E M E N T S IN F A I L E D B A N K S R E Q U I R I N G D I S B U R S E M E N T S B Y T H E
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N , 1 9 3 4 -1 9 7 9
B A N K S G R O U P E D B Y C L A S S OF B A N K , Y E A R OF D E PO S IT PAY O FF
OR D EPO SIT A S S U M P T IO N , A M O U N T OF D E P O S IT S , A N D STATE

DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 9 -CONTINUED
BANKS GROUPED BY CLASS O BANK, YEAR OF DEPOSIT PAYOFF
F
OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

N um ber of banks

C lassifica tion

Total

A ssu m p ­
tion
cases

Total

Payoff
cases

A s su m p ­
tion
cases

Total

Payoff
cases

A s su m p ­
tion
cases

Prin cipal disbu rsem ents

Total

1961
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979

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

5
2
7
5
7
4
3
9
7
6
1
6
4
13
16
6
7
10

5
2
7
3
1
4
'4
4
5
1
3
' 3
3
' '1
3

8,301
36,433
19,934
14,363
1,012
4,729

' 3
4
10
13
6
6
7

8,301
3 6,4 3 3
19 934
15,817
95,424
4,72 9
12 850
27,374
31,433
71,950
23 655
349 ,6 99
704 283
110,367
340,731
95 548
3 64,384
4 2,028

2
6
' 3
5
3
1

6,544
20,403
31,850
23 655
8,382
21,925
8,246
24
516
3,740

8 936
23 444
2 3,438
4 2,889
774
10,878

341,317
704 283
88,442
332,485
95 524
363,868
38,288

8,93 6
23 444
2 3,438
43,861
103,523
10,878
22,524
40,134
54,821
132,152
20,480
971,296
1 ,575,832
3 39 ,5 74
8 64 ,8 59
2 05 ,2 08
854,154
110,696

1,454
94,412
12,850
20,830
11,030
40,100

Banks with deposits of:
Less than $ 10 0,00 0 ....................
$ 1 0 0,00 0 to $25 0,00 0 ...............
$ 2 5 0 ,0 0 0 to $ 5 0 0 ,0 0 0 ...............
$ 5 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0
$ 1 ,0 0 0 ,0 0 0 to $ 2,0(to,000
$ 2 ,0 0 0 ,0 0 0 to $ 5 ,0 0 0 ,0 0 0
$ 5 ,0 0 0 ,0 0 0 to $ 1 0 L0 0 0 L000 . . . .
$1(),00(),000 to $ 2 ^,0 06 ,00 0 • • •
$ 2 5 ,0 0 0 ,0 0 0 to $ 5 0 ,0 0 0 ,0 0 0 ...
$50 0 0 0 L000 to $ 1 0 0 ,0 0 0 ,0 0 0 ..
$ 100 000 000 to $500 000 000
$ 5 0 0 ’ 0 0 0 ’000 to $ 1 ,0 0 0 ,0 0 0 ,0 0 0
$1 otio 0(50 000 o r more




39,902
18,859
108
1,286
12,631

945,501
1 ,575,832
299,672
8 46,000
2 05 ,1 00
8 52,868
98,065

972
102,749
22,524
31,122
21,332
57,547

6 201
19,230
13,744
10,958
735
8,120
7,599
29,181
53,790
16,275
16,802
25,992
11,482
818
10,169

Assu m pttion
cases

473
7 ,997
5,586
30,020
20,004
108,375
415,353
2 ,2 6 0 ,17 9
277,121
542,108
21,8 0 9
4 97 ,3 76
69,647

Payoff
ca se ss

154
349
599
640
35
242
301
696
799
383
1,426
1,366
1,217
46
182

A ssu m ption
cases

123
1,612
1,114
4,424
1,897
11,239
1,070
94,726
22,611
27,929
2,510
18,864
1,363

107
109
62
72
59
61
37
27
8
6
7
2
1

83
86
37
36
22
25
7
9
1
1

24
23
25
36
37
36
30
18
7
5
7
2
1

3 8,347
8 3 ,3 7 0
9 2,1 7 9
1 60,388
211 ,3 53
3 06 ,3 80
3 0 5 ,0 7 0
3 91 ,3 3 2
3 20 ,5 48
2 44 ,2 65
394 670
6 29 000
6 30 ,0 00

29,695
65,512
57,287
74,296
7 0,847
92,842
5 0,445
146,478
12,481
27,403

8,652
17,858
34,892
86,092
140,506
2 13,538
254,625
244,854
308,067
216,862
394 670
6 29 ’ 000
630,000

6,418
1 7,759
22,3 1 5
54,424
7 9,5 4 7
2 03 ,3 02
2 53 ,5 65
4 30 ,0 32
2 87 ,8 08
5 25 ,3 77
1 ,14 2 ,87 9
1 ,53 9 ,56 6
1 ,44 4 ,98 2

4,947
1 3,920
12,921
2 6,8 2 0
2 9,173
8 3,2 3 6
55,8 7 0
148,199
4 0 ,1 7 6
6 6,902

1,471
3 ,83 9
9,394
2 7,604
5 0,374
120,066
197,695
281 ,8 33
2 47 ,6 32
4 58 ,4 75
1 ,14 2 ,87 9
1 ,53 9 ,56 6
1 ,44 4 ,98 2

5,000
1 2,906
15,615
3 6 ,0 5 7
4 6 ,4 6 6
1 24 ,8 66
153 ,1 24
263 ,0 78
139 ,2 87
3 4 4 ,3 2 2 _
7 1 1 ,3 1 0 9
7 51 ,0 1 8
2 ,1 8 6 ,9 9 7 s

4,30 9
11,554
1 0,549
20,9 6 2
22,8 8 6
62,221
37,9 6 4
108,634
9 ,700
47,021

691
1,352
5,066
15,095
2 3,5 8 0
6 2,6 4 5
115,160
154,444
1 29,587
297,301
711 ,3 10
751 ,0 18
2 ,1 8 6 ,9 9 7

88
209
164
445
748
1,378
958
2 ,60 9
581
523
896
1,035

154
173
611
2,352
4,037
9,925
13,799
15,705
28,356
25,572
4 5,566
7,268
8 3,513

8

3

17,088
2,692
1,809
3 72 ,9 29
12,770

4 5 ,8 9 7
5 ,044
4 ,83 6
1,03 2 ,65 8
2 9,7 1 2

5,270

4 0 ,6 2 7
5,044
2,894
9 86 ,4 38
18,345

31,6 6 3
5,082
3,40 8
4 6 3 ,4 3 7 9
17,622

3,38 4

28,2 7 9
5,082
1,832
4 50 ,5 53
9,31 5

140

"6

1 9,660
2,69 2
6 ,35 0
3 9 0 ,8 1 9
2 0,3 9 6

2,572

8
6
9

5
1
2
3
4

1,374
464
325
4,27 5
2,618

State
A la b a m a .......................................
A rizo na
..........................
A rk an sas .......................................
C aliforn ia .....................................
C o lo r a d o .......................................

9,012
33,489
7 4,605
20,480
25,795

6 201
19 230
13,744
11,431
8,732
8,12 0
5,58 6
3 7,6 1 9
4 9,1 8 5
162,165
1 6,275
4 3 2 ,1 5 5 .
2 ,2 6 0 ,1 7 9
3 03,113
553 ,5 90
2 1,8 0 9
498 ,1 94
79,816

Payoff
ca se s3

Advances and
e x p e n se s 2

1

3
5

4,541
17,890
7,626

1,942
4 6 ,2 2 0
11,367

1,576
12,946
8 ,30 7

43
1,711
383

FEDERAL DEPOSIT INSURANCE CORPORATION

Payoff
cases

D isb ursem en ts by FDIC1
(in th ousan ds of dollars)

D ep o sits1
(in th ousan ds of dollars)

N um ber of de p o sito rs1

206

T a b le 1 2 4 .

3
5
3
2
27

2
2
8
2
10

I n d ia n a ..........................................
I o w a ..............................................
Kansas ..........................................
Kentucky ........................................
Louisiana .....................................

20
11
12
26
6
1
5
5
14
5
5
52
5
8
1

15
5
7
20
4

M a in e ............................................
M a r y la n d ........................................
M a s s a c h u s e t t s .............................
M ic h ig a n ........................................
M in n e s o ta .....................................
M is s i s s i p p i ...................................
M i s s o u r i ........................................
M o n t a n a ........................................
N e b ra s k a ........................................
New H am psh ire ..........................
New J e r s e y ...................................
New Y o rk .....................................
North C a rolina .............................
North Dakota ...............................
O hio ..............................................
O k la h o m a .....................................
O regon ..........................................
P e n n s y lv a n ia .................................
South C arolina .............................
South Dakota ...............................

43
28
7
29
5
13
2
31
3
23

Tennessee ......................................
Texas ............................................
..............................
Utah ............... >
V e r m o n t ........................................
V ir g in ia ..........................................

14
47
1
3
9

W ashingto n .................................
W est V irg inia ...............................
W is c o n s in ......................................
W yom ing ......................................

1
3
33
1

Other a re a s
V irgin I s la n d s ...............................
Puerto R ic o ...................................

1
3

1
3
5

125,542

4 ,3 2 6
17,665
59,772
1,894
350,921

1,526
2,668
1,870
1,894
28,972

17,457
19,470
4,241
20,961
70,1 1 8

13,595
29,964
1 2,337
1 6,072
176,274

3 ,933
8 ,535
9,030
5,768
9,73 5

9 710
15,’ 924
18,624
162,155

5 ,450
4 ,56 6
3 8,696
194,399
818
4 5 ,9 0 9
2 9 ,1 5 5
1,095
11 644
’ 296

828
20,480
13,477
818
334
1 8,169
215
11,644

13
3
2
18
2
8
1
8
1
22
9
33
"2
4
' 3
20

5,379
1,725
8,797
2 451
44,383

30,006
25,206
9,277
40,313
79,117

12,549
5,736
5,036
19,352
8,999

9 710
22,567
42,279
172,607
2,650
26,262
55,554
1,500
7,773
1,780

6,643
23,655
10,452
2 650
1,651
37,977
849
7,773

1

2
1
5
5
3
38
3
8

8,839
14,082
33,912
2 451
169,925

30
25
5
11
3
5
1
23
2
1

5 71,146
925,621
10,408
14,103
21,251
28,672
3,43 9
182,590
68,080
12,515

113,695
28,440
3 ,677
6 ,760
7 ,585
20,149
1,230
43,828
403
11,412

457,451
897,181
6,731
7 ,343
1 3,666
8,52 3
2 ,20 9
1 38,762
6 7,6 7 7
1,103

5
14.
1
1
5
1

133,317
131,109
3,254
11,057
35,715

10,952
80,986

122 ,3 65
50,1 2 3
3 254
2 ,370
23,077

17
5
6
5
6
2
1
3
4
9
2
14
2

'13
1

1
"3

4 ,179
8 ,346
62,247
3,212
11,073
369 ,8 40

3 ,46 0
12,357
2 5,115

24,611
1 7,577
651
1,780

8,687
12,638

4 ,17 9
8,346
18,739

261,401
1 ,7 5 5 ,5 0 0
3 ,26 6
3 ,8 3 0
102 ,8 38
2 0,7 2 0
2,67 0
9 6,9 0 7
113 ,5 53
2,98 8
3 4 1 ,4 5 0
2 20 ,4 83
5,992
3,72 5
17,779

43,508
3 ,212

1,538
2 006
112,627
2,033

3 69 ,8 4 0

14,229
7 89 ,4 42

11,073

2 ,800
14,997
57,902
321 ,9 49

3 ,37 5
11,171
3 9,640
1,493
2 36,756

1,242
2,139
1,551
1,493
23,924

9,662
21,429
3,307
10,304
1 66 ,5 39

6,197
17,793
9,725
12,519
141 ,9 16

3,096
6 ,469
7,654
5,041
4 ,93 7

5 450
3 ,738
18,216
180,922

2 346
3|109
27,257
142,592
640

735
16,275
12,242
640

45,5 7 5
1 0,986
880

3 3,2 5 2
21,4 9 2
639
8 116
117

296
4 9 ,1 1 9
13,286
1,421
1,552
2 ,345
11,053
1,368
14,340
136
2,862
4,83 6
141,922
3,375
7,652

2 12 ,2 82
1 ,74 2 ,21 4
1 ,845
2 ,278
100,493
9 ,66 7
1,302
82,5 6 7
1 13,417
126
3 36 ,6 14
78,561
5 992
’ 350
10,127
1,538

2 006
5,966

384
792
312
640
5,172

39,8 7 6
10,836
1,156
1,397
1,610

1 1,665
1,948
6 7,4 8 5
6 0,6 5 0
2,411
130 ,4 37
139 ,6 15
3 538
3*445
8,263

127 ,2 05
2 ,4 1 4 ,6 2 1 8
2 ,387
2 ,65 6
90,0 7 3

789 ,4 42

8 712
3 5 2 ’, 9 3 5 9

9
382
203
17

665
371
2,259
14,245

5
339
6
151

783
1,187
21

8 7 ,3 2 9
2 ,4 0 3 ,7 8 5
1,231
1,259
8 8,4 6 3

519
928
23
24
7

2 3,530
94,360
179
203
5,198

7,93 6
986
10,133
136
2 ,388

3 ,72 9
962
57,3 5 2
6 0,5 1 4
23

178
11
75

885
81
10,971
9,804
9

3 ,58 5
97,131

126 ,8 46
4 2,4 8 4
3 538
’ 186
4 ,39 6

92
1,796

8

117

3,259
3,867

935
1 458
5! 096

112,896
202

8,712

26

21
305
11
54

10 884
4 651
300
22
505
512
11,765
19

927
3 52 ,9 3 5

7,851

207




39
149
106
157
149

2 346
2*374
10,982
130,350

644
698
3,131

LOSSES

Note: Due to rounding differen ces, com p on en ts m ay not add to totals.

14,935

3,101
11,324
2,071
7 ,478
136 ,9 79

3 2,9 9 5
7,46 4
453

106,661
2,033

'A d ju s te d to D ecem ber 31, 1979. In assu m p tion cases, num ber of depositors refers to num ber of de posit accounts.
Exclud es $ 1 ,8 6 3 tho usan d of n on recoverable insurance expenses in cases that were resolved w ithout paym ent of claim s or a
d isb u rse m e n t to facilitate assu m p tio n of deposits by another insured bank and other expenses of field liquidation em ployees not
, chargeable to liquidation activities.
Includes estim ated additional disb u rse m e n ts in active cases.
Exclud es e xce ss co lle ctio n s turned over to banks as additional purchase price at term ination of liquidation.
^These disb u rse m e n ts are not recoverable by the Corporation; they con sist alm ost wholly of field payoff expenses.
Includes advances to pro te ct assets and liquidation expenses of $22 2,00 5 thousand, all of w hich have been fu lly recovered by the
C o r p o r a t io n , and $ 1 5 ,0 2 9 tho usan d of n on recoverable expenses.
No cases in 1962 required disb u rse m e n ts. D isb urse m en t totals for each year relate to cases occurrin g during that year, including
„ d isb u rse m e n ts made in sub se qu e nt years.
“ Includes disb u rse m e n ts by liqu idators in field ($ 1.5 billion).
In 1977 the assets of B anco E co n o m ia s were purchased outright by the Corporation. D isbursem ents in the case are included in table 126
under “ Other d is b u rse m e n ts ” and are not included in this table.

2 12,832

8
65
33
29
513

257
14,028
186
8,11 6

935
1 458
1 17 ’ 992
202

14,229

2,13 3
9,032
3 8,0 8 9

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND

C o n n e c tic u t...................................
F lo r id a ............................................
G e o r g ia ..........................................
Idaho ............................................
I llin o is ............................................

Liquidation
status and year
of deposit payoff
or deposit
assumption
T o ta l...............................

RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL
DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1 9 3 4 -7 9
(Amounts in thousands of dollars)

Principal
disburse­
ments

Recoveries
to Dec. 31,
1979

Deposit assumption cases

Deposit payoff cases

All cases
Number
of
banks

Estimated
additional
recoveries

Losses1

208

Table 125.

Number
of
banks

Principal
disburse­
ments2

Recoveries
to Dec. 31,
1979

Estimated
additional
recoveries

Losses1

Number
of
banks

Principal
disburse­
ments 3

Recoveries
to Dec. 31,
1979

Estimated
additional
recoveries

Losses1

558

4,790,048

3,848,583

670,270

271,195

307

335,800

284,557

15,678

35,565

251

4,454,248

3,564,026

554,592

235,630

80
478

4,383,917
406,131

3,474,524
374,059

670,270

239,123
32,072

26
281

183,846
151,954

151,368
133,189

15,678

16,800
18,765

54
197

4,200,071
254,177

3,323,156
240,870

654,592

222,323
13,307

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

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
49,185
162,165
16,275
432,155
2,260,179
303,113
553,590
21,809
498,194
79,816

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
7,339
8,241
7,016
5,575
37,524
48,479
161,328
10,630
212,200
2,025,127
236,859
387,281
13,007
348,689
28,597

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

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

3

930
995
1,025
1,241
1,355
3,214
378
396

1

58
641
369
1,385

230

230

6

473
7,997

326
7,506

' ' 3
5
3
1

5,586
30,020
20,004
108,375

5,575
30,019
19,774
108,372

1
2

'' 3
4
10
13
6
6
7

415,353
2,260,179
277,121
542,108
21,809
497,376
69,647

195,429
2,025,127
217,833
379,068
13,007
348,259
28,572

94,744
230,652
29,861
131,414
6,687
129,397
31,820

Status
A c tiv e .............................
Y e a r4

.........

''

i
27
25
24
28
24
7
14
1
1

1
1
1

' '58
641
369
1,385
'792

' '28
97
11
502
438
42
128
8
42
1
11
171
593
1,645
94,775
230,652
35,582
131,992
6,687
129,635
37,864

Ii6 2 2
3,963
485
1,062
11
85
533
243
4,000
125,180
4,400
30,672
34,317
2,115
19,870
13,355

' ' 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
7,013
735
7,016

' ' 4
4
5
1
3

7,599
29,181
53,790
16,275
16,802

'' 3
3
" i
3

Note: Due to rounding differences, components may not add to totals.

230
213
28
97

5
3
4
4
2
3
2
2
1
1

. . ..

792
258

1,502
438
42
.128

1,622
3,817

42

1,062

7,505
28,705
52,956
10,630
16.771

9
171
591
1,645
31

85
305
243
4,000

25,992
11,482

19,026
8,213

5,721
578

1,245
2,691

818
10,169

430
25

238
6,044

150
4,100

■
2

8

146
485
11
228

2
125,180
4,400
29,427
31,626
2,115
19,720
9,255

CORPORATION

258
230
213

Includes estimated losses in active cases. Not adjusted fo r interest or allowable return, which was collected in some cases in which the
9 disbursement was fully recovered.
^Includes estimated additional disbursements in active cases.
Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
No case in 1962 required disbursements.




207
1,752
1,338
2,647
1,184
5,797
582
213
292
123
40

INSURANCE

5
7
4
3
9
7
6
1
6
4
13
16
6
7
10

3

FEDERAL DEPOSIT

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
1970
197 1
1972
1973
1974
1975
1976
1977
1978
1979

Table 126.

ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1934— December 31, 1979
(In thousands)

Type of disbursem ent

Losses

All disbursements— total2 ...................................................................................

$5,219,134

$4,883,152

$335,982

Principal disbursements in deposit assumption and payoff cases— total

4,790,048

4,518,853

271.195

4 ,2 2 0 ,4 9 8

4 ,5 1 8 ,8 5 3
5 24 ,2 58

271.195

233 ,7 50

103 ,4 16
130 ,3 34

3 34 ,9 98
802

2 84 ,5 5 7
1 5,678

35,565

Advances and expenses in deposit assumption and payoff cases— to ta l.

246,668

222,005

24,663

Expenses in liquidating assets:
A dva nce s to protect assets ......................................................................
Liqu id ation expenses
Insurance e xp e n se s4
Field payoff ana other in su ra nce expenses in 307 deposit payoff cases4

115 ,1 47
106 ,8 58
15,0 2 9
9,63 4

115 ,1 47
106 ,8 58
0
0

15,029
9,634

182,418

142,294

40,124

9,99 3

5 ,3 3 9
593

4,061

3 4 ,9 6 9

1 2,040
2 ,92 9

20,000

15,393

1,011
182
0

14,200

L oa ns and a ssets pu rch ased in liqu idation s (251 deposit assum ption cases):
To D ecem ber 31, 1979 .....................................................................................
Estim ated additional .
Notes purchased to facilitate d e p osit assu m p tio n s, m ergers, or consolidations:
To D ecem ber 31, 1979 .........................................................................................
Estim ated a d d itio n a l............................._
D ep osits paid (307 d e p osit payoff cases):'
To D ecem ber 31, 1979 ........................
Estim ated a d d itio n a l...............................

Other disbursem ents— total
C orp oration purchases:
To facilitate term ination of liquidations:
To D ecem ber 31, 1979 .......................................
Estim ated a d d itio n a l..............................................
T o p u rc h a s e assets from operating insured banks:
To D ecem ber 31, 1979 .......................................
Estim ated a d d itio n a l..............................................
Other assets purchased outright:
To D ecem ber 31, 1979 .......................................
Estim ated a d d itio n a l..............................................
U nallocated insurance e xp e n se s4 ...............................
A ssista n c e to operating insured banks:
To Decem ber 31, 19785 ..........................................
Estim ated a d d itio n a l...................................................

1,863
1 2 0 ,2 0 0

8 3 ,2 0 0
3 7 ,0 0 0

0

0

'i] 8 6 3

LOSSES

R e co v e rie s1

BANKS CLOSED; FDIC INCOME. DISBURSEMENTS. AND

D isb ursem en ts

Exclud es am ounts returned to closed bank equity-holders and $120.9 m illio n of interest and allow able return received by the FDIC.
^Includes co lle ctio ns and disb u rse m e nts by liquidators in the field ($1.5 billion).
^Includes estim ated am ounts fo r pending and unpaid claim s in active cases.
^Not recoverable.
Exclud es $32 m illio n o rig in ally disb u rsed as assistan ce to Farm ers Bank of the State of Delaware and subsequently applied to assets
purchased from operating insured banks.

209




Table 127.

INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933 TO DECEMBER 31, 1979
(In millions)
o
Expenses and losses

Income
Year
Total

Deposit insurance
assessments1

Investment and
other sources2

$11,356.5

$5,378.7

$5,977.8

1979 ...............................
1978 ...............................
1977 ...............................
1976 ...............................
1975 ...............................
1974 ...............................
1973 ...............................
1972 ...............................
1 9 7 1 ...............................
1970 ...............................
1969 ...............................
1968 ...............................
1967 ...............................
1966 ...............................
1965 ...............................
1964 ...............................
1963 ...............................
1962 ...............................
1 9 6 1 ...............................
1960 ...............................
1959 ...............................
1958 ...............................
1957 ...............................
1956 ...............................
1955 ...............................
1954 ...............................
1953 ...............................
1952 ...............................
1 9 5 1 ...............................
1950 ...............................
1949 ...............................
1948 ...............................
1947 ...............................
1946 ...............................
1945 ...............................
1944 ...............................
1943 ...............................
1942 ...............................
1 9 4 1 ...............................
1940 ...............................
1939 ...............................
1938 ...............................
1937 ...............................
1936 ...............................
1935 ...............................
1 9 3 3 -3 4 ......................

1,090.4
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
47.7
48.2
43.8
20.8
7.0

356.4
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)

734.0
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

Total

Deposit insurance losses
and expenses

$1,563.8

$342.8

93.7.
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

1For the period from 1950 to 1979, 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 $5,817 million.
Includes $36 m illion of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $85
.m illio n of interest on capital notes advanced to facilitate deposit assumption transactions and assistance to open banks.
Paid 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.
Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited
to their accounts at the termination of the tem porary 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.
^Includes net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978.
Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30,
1934.

Interest on
capital stock3
$80.6

Administrative and
operating expenses
$1,140.4

13.1
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

$9,792.7
996.7
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

106.8
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

0.'1
0.3
0.3
0.1
0.1
0.8
6.6
i .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

Net income added to
deposit insurance fund

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

76.9
6.4
6.1
5.7
5.0
4.1
3.5
3.4
3.8
3.8
3.7
3.6
3.4
3.0
2.7
2.5
2.7
4 .2 6

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

FEDERAL DEPOSIT INSURANCE CORPORATION

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




_*

Table 128.

PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

A ll cases
(558 banks)

D eposit assum ption cases
(251 banks)

D eposit payoff cases
(307 banks)

Item
Percent

N um ber or
am ount

Percent

Num ber or
am ount

Percent

Number of depositors or accounts— to ta l1 ....................................................

3,806,902

100.0

627,286

100.0

3,179,616

100.0

Full recovery received or a v a ila b le .............................................................

3,799,366

99.8

619,750

98.8

3,179,616

100.0

F D IC 2 ..................................................................................................
o ffs e t4 ................................................................................................
secu rity or preference 5 ....................................................................
asset liq u id atio n 6 ..............................................................................

3,751,691
41,168
3,29 5
3 ,212

98.5
1.1
0.1
0.1

5 7 2 ,0 7 5 3
41,168
3,295
3,212

91.2
6.6
.5
.5

3 ,17 9 ,61 6

100.0

Full recovery not received as of December 31,1 9 7 9 ..............................

7,536

0.2

7,536

1.2

Term inated c a s e s ..........................................................................................
Active c a s e s ..................................................................................................

3 ,6 7 0
3 ,86 6

0.1
0.1

3 ,67 0
3 ,86 6

.6
.6

Amount of deposits (in thousands)— t o t a l......................................................

6,007,975

100.0

482,164

100.0

5,525,811

100.0

Paid or made available .................................................................................

5,993,515

99.8

467,704

97.0

5,525,811

100.0

5 ,86 2 ,24 9
2 3,8 0 9
56,671
50,7 8 6

9 7.6
.4
.9
.9

3 3 6 ,4 3 8 7
23,8 0 9
56,671
50,7 8 6

7 0.0
4 .9
11.7
10.4

5,525,811

100.0

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

14,460

.2

14,460

3.0

Term inated c a s e s ..........................................................................................
Active c a s e s 1 1 ..............................................................................................

3,171
1 1,289

.0
.2

3,171
11,289

.7
2.3

From
From
From
From

By
By
By
By

F D IC 2 .......................................................................................................
o ffs e t8 .....................................................................................................
secu rity or pre fere n ce 9 ........................................................................
asset liq u id a tio n 1 0 .................................................................................

Not paid as of December 31,1 9 7 9

N um ber of d e posito rs in deposit payoff cases; num ber of accounts in deposit assum ption cases.
Through direct paym ents to d e p osito rs in d e posit payoff cases; through assum ption of deposits by other insured banks facilitated by
FDIC disb u rse m e n ts of $ 4 ,4 5 4 ,2 4 8 tho usan d, in deposit assum ption cases.
^Includes 6 0,9 1 3 d e p osito rs, in term inated ca se s, who failed to claim their insured deposits (see note 7).
Includes only d e posito rs with claim s offset in full; m ost of these would have been fully protected by insurance in the absence of offsets.
Exclud es d e p osito rs, paid in part by the FDIC; w h ose deposit balances were less than the in su rance m axim um .
The insured portion s of these d e posito r claim s were paid by the Corporation.
Includes $516 thousand u n claim ed in su red d e posits in terminated cases (see note 3).
“ Includes all am ounts paid by offset.
Includes all secured and preferred claim s paid from asset liquidation; excludes secured and preferred claim s paid by the Corporation.
^Includes unclaim ed de posits paid to authorized p u blic custodians.
Includes $ 1,244 tho usan d representing de posits available, expected through offset, or expected from proceeds of liquidation.




LOSSES

Number or
amount

BANKS CLOSED, FDIC INCOME, DISBURSEMENTS, AND

1934-1979

nd

—1

Table 129.

IN S U R E D D E P O S IT S A N D T H E F D IC IN S U R A N C E F U N D , 1 9 3 4 - 1 9 7 9
(In m illions)

Ratio of deposit insurance fund to —

Deposits in insured banks
Year (December 31)
1979
1978
1977
1976
1975

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

Insurance
coverage
$40,000
40,0007
4 o ! ooo 6
40,000
40,000

Total1
$1,226,943
1,145,835
1,050,435
941,923
875,985

Insured1
$808,555
760,706
692,533
628,263
569,101

Percentage of
insured deposits

Deposit insurance
fund

65.9%
66.4
65.9
66.7
65.0

$9,792.7
8,796.0
7,992.8
7,268.8
6,716.0

Total
deposits

Insured
deposits

.80%
.77
.76
.77
.77

1.21%
1.16
1.15
1.16
1.18

40,000
20,000
20,000
20,000
20,000

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
6 1 ,34
64.1

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

1969
1968
1967
1966 ...............................................
1965 ...............................................

20,000
15,000
15,000
15,000
10,000

495,858
491,513
448,709
401,096
377,400

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

63.1
60.2
58.2
58.4
55.6

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

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

10,000
10,000
10,000
10,000
10,000

348,9810
313,304^
297,5483
281,304
260,495

191,787
177,381
170,210 4
160,3094
149,684

55.0
5 6 .6 ,
57.2 4
57.0 4
57.5

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

.82
.85
.84
.84
.85

1.48
1.50
1.47
1.474
1.48

1959
1958
....................
1957
...
1956
...
....................
1955 ...............................................

10,000
10,000
10,000
10,000
10,000

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

.84
.81
.82
.79
.77

1.47
1.43
1.46
1.44
1.41

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

10,000
10,000
10,000
10,000
10,000

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

110,973
105,610
101,841
96,713
91,359

54.6
54.6
54.1
54.2
54.4

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

5,000
5,000
5,000
5,000
5,000

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

5,000
5,000
5,000
5,000
5,000

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

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

41.9
43.4
36.5
39.7
40.8

804.3
703.1
616.9
553.5
496.0

.60
.63
.69
.78
.76

1.43
1.45
1.88
1.96
1.86

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

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

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

5,000
5,000
5,000
5,000
5,000
5 ,0 0 0 5

1Deposits in foreign branches are omitted from totals because they are not insured. Insured deposits are estimated by applying to the
deposits in the various types of accounts at the regular Call dates, the percentages insured as determined from special reports secured
Ofrom insured banks.
2December 20, 1963.
3 December 28, 1962.
^Revised.
^Initial coverage was $2,500 from January 1 to June 30, 1934.
*$100,000 for time and savings deposits of in-state governmental units provided in 1974.
$100,000 for Individual Retirement accounts and Keogh accounts provided in 1978.




FEDERAL DEPOSIT INSURANCE CORPORATION

1974 ...............................................
1973 ...............................................
1972 ...............................................
1 9 7 1 ...............................................
1970 ...............................................







INDEX

215

Absorptions:
Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties.
Of operating banks, 1 9 7 9 .................................................................................................. 7
Of operating banks approved by FDIC, 1 9 7 9 ............................................ 7, 63-1 28
Of operating banks denied by FDIC, 1 9 7 9 .......................................................... 7, 68
Regulation o f ................................................................................................................ 1 5 -1 6
A dmission of banks to insurance: See also A pplications from banks.
A pplications for, 1 9 7 9 .................................................................................................... 7-8
N umber of banks admitted, by class of bank, 1 9 7 9 ............................................ 1 4 0
A merican Bankers A s s o c ia t io n ................................................................................................ 27
A merican National Bank, Houston, T e x a s............................................................................. 17
Applications from b a n k s ................................................................................................................ 7
Areas outside continenta l United States, banks and branches located in:
Number, December 3 1 , 1 9 7 9 ............................................................................1 42,1 4 4
Assessments for deposit insurance
............................................................................... 3 5 ,3 6
Assets and liabilities of FDIC...............................................................................................3 7 - 3 9
Assets, liabilities and capital of banks. See also deposits:
Commercial banks:
Foreign, of U.S. b a n k s .................................................................. 1 59, 1 73, 1 74, 1 76
Grouped by insurance status, June 30, 1 9 7 9 and December 31,
1 9 7 9 ..................................................................................................................... 1 6 1 ,1 6 4
Sources of data ........................................................................................................... 1 60
Insured comm erc ial banks:
Assets and liabilities of insured com m ercial banks (Domestic and fo reign
offices) U.S. and oth er areas December 31, 1 9 7 9 ......................................... 176
Amounts, December call dates, 1 974-1 9 7 9 ...................................................... 1 70
Amounts, June 30, 1 9 7 9 and December 31, 197 9 by class of
b a n k .......................................................................................................................1 61,1 64
Major categories, average, 1 9 7 4 - 1 9 7 9 ............................................................... 189
Percentage distrib utio n, by size of bank, 1 9 7 9 ................................................. 1 83
Percentage of items, by size of bank, 1 9 7 9 ......................................................... 1 8 0
Insured mutual savings banks:
Amounts, D ecember call dates, 1 974-1 9 7 9 ...................................................... 1 78
Major categories, average, 1 9 7 4 - 1 9 7 9 ............................................................... 197
Percentage of items, by size of bank, 1 9 7 9 ......................................................... 181
Methods of tabulating data ............................................................................... 1 59-1 60
Mutual savings banks:
Grouped by insurance status. June 30, 1 9 7 9 and December 31, 1 9 7 9 ...... 1 68
Sources of data ........................................................................................................... 187
Assets, purchase of, by FDIC fro m banks in financial d iffic u ltie s ................................... 16
A s su m p tio n of d eposits of insured banks with financia l aid of FDIC. See Banks in
financial difficulties.
Attorney General of the United States, summ ary reports on a b s o r p t io n s .............6 3 - 6 8
A u d it of F D IC ........................................................................................................................... 3 6 - 3 7
Automatic transfer of funds from savings to checking, survey and regulation .... 22, 29
Awards to FDIC personnel ........................................................................................................ 34
Bad debt reserves. See Valuation reserves.
Bank control, changes, regulation o f ....................................................................................8, 9
Bank hold ing companies, supervision o f ............................................................................. 4, 9
Bank of Enville, T e n n e sse e ........................................................................................................ 17
Bank s e c u rity ..................................................................................................................................26
Bank crimes in 1 9 7 9 ........................................................................................................ 26
Bank Protection Act of 1 9 6 8 ........................................................................................ 26
Fidelity and surety coverage fo r b a n k s ....................................................................... 27



216

FEDERAL DEPOSIT INSURANCE CORPORATION

Bank supervision. See Supervision of banks; Examination of insured banks.
Banking offices, num ber of. See Number of banks and branches.
Banks in financial difficulties;
Insured banks requiring disbursements by FDIC:
Assets and liabilities o f ............................................................................................ 2 0 4
Deposit size o f ............................................................................................................ 2 0 5
Deposits protected, 1 9 3 4 - 1 9 7 9 ................................................. 1 4 -1 6 , 2 05, 21 1
Disbursements by FDIC, 1 934-1 9 7 9 ......................................... 14-1 6 , 2 05, 2 0 8
Failures in 1 9 7 9 ..................................................................................................... 16 -1 7
Loans made and assets purchased by FDIC...................................................1 4 -1 6
Location by State, 1 9 3 4-1 9 7 9 ............................................................................ 2 0 5
Losses incurred by d e p o s i t o r s ....................................................................... 15, 21 1
Losses incurred by F D I C ....................................................................... 15, 208, 209
Number of, 1 9 3 4 - 1 9 7 9 ....................................................................................20, 2 0 3
Number of deposit a c c o u n t s ....................................................................... 2 05, 21 1
Recoveries by FDIC on assets acquired 1 934-1 9 7 9 ............................ 2 0 8 ,2 0 9
Noninsured banks:
N umber and deposits of com m ercia l banks closed 1 9 3 4 -1 9 7 9 ................ 2 0 3
Banks, n um ber of. See Number of banks and branches.
Board of Directors of FDIC. See Federal Deposit Insurance C orporation.
Branches:
Establishment approved by FDIC, 1 9 7 9 .................................................................. 7-8
Number of. See Number of banks and branches.
Call reports. See Assets, liabilities, and capital of banks:
Capital a d e q u a c y .......................................................................................................................... 29
Capital of banks. See Assets, liabilities and capital of banks; Banks in financial
difficulties; Income of insured comm ercial banks;
Examination of insured banks.
Cease and desist p ro c e e d in g s .......................................................... 10-1 1, 29, 4 9 - 6 0
Charge-offs by banks. See Income of insured comm ercial banks; Income of
insured mutual savings banks; Valuation reserves.
Class of bank, banking data presented by:
A b s o r p tio n s .................................................................................................. 6 3 - 1 2 8 , 140
Income of insured com m ercial banks, 1 9 7 9 ...................................................... 1 92
Insured banks requiring disbursements by FDIC 1 934-1 9 7 9 ...................... 2 0 5
Number of banks and banking offices, 1 9 7 9 ............................................ 1 40, 1 4 4
Number of banks and a s s e t s .................................................................................... 1 53
Classification of b a n k s ............................................................................................................. 139
Closed banks. See Banks in financial difficulties.
Com m ercial banks. See Assets, liabilities and capital of banks; Deposits; Income
of insured com m ercial banks; Number of banks and branches.
C o m m u n ity Reinvestment A c t .........................................................................4, 6, 19, 20, 21
Compliance e x a m in a tio n s ........................................................................................................ 4-6
C om ptroller of the C u r r e n c y .................................................................vii, 3, 4, 9, 1 0, 1 4, 30
C om puter managem ent s y s te m s ............................................................................................. 3 0
Conference of State bank s u p ervis ors.................................................................................... 10
Consolidation. See Absorptions.
Consumer and banker education ............................................................................................22
C onsumer co m p la ints and inquiries, 1 9 7 8 and 1 9 7 9 ...................................................... 21
Country Exposure R eport.................................................................................................... 1 5, 25
Credit, bank. See Assets, liabilities, and capital of banks.
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance:
Applica tio n s f o r ................................................................................................................ 7-8
History of deposit fund ............................................................................................. 3 4 - 3 5



INDEX

217

Size o f d e p o s i t f u n d ...........................................................................................................................3 5
D e p o s its . See a ls o A ssets, lia b ilitie s , an d c a p ita l o f banks:
B a n k s c l o s e d b e c a u s e o f f i n a n c i a l d i f f i c u l t i e s , 1 9 3 4 - 1 9 7 9 . . . . 1 4 - 1 7. 2 0 3 , 2 0 5
C o m m e rc ia l banks:
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , a n d t y p e o f a c c o u n t ,
J u n e 3 0 , 1 9 7 9 ............................................................................................................................. 161
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , a n d t y p e o f a c c o u n t ,
D e c e m b e r 3 1 , 1 9 7 9 ................................................................................................................... 1 6 4
By S t a t e a n d a s s e t size o f b a n k ............................................................................................ 1 5 4
In s u re d c o m m e r c ia l banks:
A v e r a g e d e m a n d a n d t i m e d e p o s i t s , 1 9 7 4 - 1 9 7 9 ..................................................... 1 8 9
D e c e m b e r c a ll d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 0
Insu re d m u tu a l sa vin g s banks:
A v e r a g e d e m a n d a n d t i m e d e p o s i t s , 1 9 7 4 - 1 9 7 9 ..................................................... 1 9 7
D e c e m b e r c a ll d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 8
M u t u a l s a v i n g s b a n k s , b y i n s u r a n c e s ta tu s , J u n e 3 0 , 1 9 7 9 , a n d
D e c e m b e r 3 1 , 1 9 7 9 ................................................................................................................... 1 6 8
D e p o s i t s i n s u r e d b y FDIC :
E s t i m a t e d i n s u r e d d e p o s i t s , D e c e m b e r 3 1 , 1 9 3 4 - 1 9 7 9 ........................................ 2 1 2
M a x i m u m p e r d e p o s i t o r , c h a n g e s in ...................................................................................... 3 4
D e p o s its , n u m b e r of in s u re d c o m m e r c ia l ba n ks w ith g ive n ratio s o f d e m a n d to
t o t a l d e p o s i t s ............................................................................................................................................... 1 8 3
D i r e c t o r s o f FDIC . S ee F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n .
D i s b u r s e m e n t s . See B a n k s in f i n a n c i a l d i f f i c u l t i e s .
D i s i n t e r m e d i a t i o n ........................................................................................................................................... 1 3
D i v i d e d e x a m i n a t i o n p r o g r a m ............................................................................................................ 4, 2 4
D iv id e n d s :
T o d e p o s i t o r s in i n s u r e d m u t u a l s a v i n g s b a n k s . See I n c o m e o f i n s u r e d
m u tu a l s a v in g s banks.
T o s t o c k h o l d e r s o f i n s u r e d c o m m e r c i a l b a n k s . See I n c o m e o f I n s u r e d
c o m m e rc ia l banks.
E a rn in g s o f ba n ks. See In c o m e of in s u re d c o m m e r c ia l b a nks; In c o m e o f in s u re d
m u tu a l s a v in g s banks.
E d g e A c t ............................................................................................................................................................... 2 5
E le c tro n ic data p ro c e s s in g :
E x a m i n a t i o n o f ......................................................................................................................................... 6
I n t e r a g e n c y A D P p o l i c y s t a t e m e n t ............................................................................................... 7
I n t e r a g e n c y e x a m i n a t i o n m a n u a l ...................................................................................................7
T r a i n i n g p r o g r a m f o r e x a m i n e r s .....................................................................................................6
E l e c t r o n i c F u n d s T r a n s f e r A c t ............................................................................................................ 4, 2 9
E m p lo ye es:
A w a r d s ...................................................................................................................................................... 3 4
F D I C .................................................................................................................................................... 3 3 - 3 4
I n s u r e d c o m m e r c i a l b a n k s , n u m b e r a n d c o m p e n s a t i o n , 1 9 7 4 - 1 9 7 9 ............. 1 8 9
In s u re d m u tu a l s a v in g s banks, n u m b e r and c o m p e n s a tio n , 1 9 7 4 - 1 9 7 9 . ... 1 9 7
E q u a l C r e d i t O p p o r t u n i t y A c t ............................................................................................... 4, 6, 1 9 , 2 2
E x a m in a tio n of in s u re d banks:
By F D IC , 1 9 7 9 .................................................................................................................................... 3 - 6
D i v i d e d e x a m i n a t i o n c o n c e p t .......................................................................................................... 4
E x a m i n e r p o s i t i o n s , a p p r o v e d vs f i l l e d ...................................................................................... 6
E x a m i n e r t r a i n i n g ....................................................................................................................................6
S a f e t y a n d s o u n d n e s s e x a m i n a t i o n s ........................................................................................... 4
E x p e n se s o f banks. See In c o m e o f in s u re d c o m m e r c ia l banks; In c o m e o f in s u re d
m u tu a l s a v in g s banks.
E x p e n s e s o f F D I C ......................................................................................................................... 3 5 - 3 6 , 2 1 0




218

FEDERAL DEPOSIT INSURANCE CORPORATION

F a ilu r e s . S ee B a n k s in f i n a n c i a l d i f f i c u l t i e s .
Fair C r e d i t R e p o r t i n g A c t ................................................................................................................................ 4
Fair D e b t C o l l e c t i o n P r a c t i c e s A c t ............................................................................................................4
Fair H o u s i n g L e n d i n g .........................................................................................................................4, 6, 1 9
F a r m e r s S t a t e B a n k , P r o t e c t i o n , K a n s a s ........................................................................................... 17
F e d e r a l B a n k i n g A g e n c y A u d i t A c t ........................................................................................................ 3 7
F e d e r a l D e p o s i t I n s u r a n c e A c t .................................................................. 5 , 8 , 1 0 , 1 2 , 2 6 , 2 8 , 31
Federal D e p o s it In s u ra n c e C o r p o r a tio n :
A c t i o n s o n a p p l i c a t i o n s ................................................................................................................. 7 - 8
A s s e s s m e n t s o n i n s u r e d b a n k s ............................................................................... 3 5 - 3 6 , 2 1 0
A u d i t .................................................................................................................................................... 3 6 - 3 7
B a n k s e x a m i n e d b y a n d s u b m i t t i n g r e p o r t s t o ................................................................ 3 - 6
B o r r o w i n g p o w e r ................................................................................................................................ 3 5
C a p i t a l S t o c k ...................................................................................................................................... 2 1 0
C o m p a r a t i v e P e r f o r m a n c e R e p o r t ............................................................................................. 3 0
C o m p u t e r i z e d a n a l y s i s c a p a b i l i t i e s ..........................................................................................3 0
C o n s u m e r a n d c iv i l r i g h t s p r o t e c t i o n ......................................................................... 5, 1 9 - 2 1
C o v e r a g e o f d e p o s i t i n s u r a n c e ...................................................................................... 3, 3 4 - 3 5
D e p o s it in s u ra n c e d is b u rs e m e n ts
..........................4 3 , 2 0 4 - 2 0 9 , 21 1
D e p o s i t i n s u r a n c e f u n d ( s u r p l u s ) ..................................................... 3 5 , 3 8 - 4 1 , 2 1 0 , 2 1 2
D i r e c t o r s , ( m e m b e r s o f t h e B o a r d ) ............................................................................... iii, 7, 3 2
D i r e c t o r y o f key p e r s o n n e l ..............................................................................................................vii
D i v i s i o n s .................................................................................................................................................. 3 3
E m p l o y e e s ...............................................................................................................................................3 3
E n f o r c e m e n t a c t i v i t i e s ........................................................................................... 1 0 - 1 2 , 4 9 - 6 0
E q u a l E m p l o y m e n t O p p o r t u n i t y P r o g r a m .............................................................................3 3
E x a m i n a t i o n o f b a n k s ..................................................................................................................... 4 - 6
F in a n c i a l s t a t e m e n t s , 1 9 7 9 ...................................................................................................3 8 - 4 4
I n c o m e a n d e x p e n s e s , 1 9 3 3 - 1 9 7 9 ...................................................................................... 2 1 0
I n s u r e d b a n k s r e q u i r i n g d i s b u r s e m e n t s by. See B a n k s in f i n a n c i a l d i f f i c u l t i e s .
I n t e g r a t e d M o n i t o r i n g S y s t e m ( I M S ) ........................................................................................3 0
L i q u i d a t i o n a c t i v i t i e s ........................................................................................................ 1 6 - 1 7 , 19
L o a n s to , a n d p u r c h a s e o f a s s e t s f r o m , i n s u r e d b a n k s ............. 1 5 - 1 6 , 3 8 , 4 1 , 4 2
L o s s e s i n c u r r e d , 1 9 3 4 - 1 9 7 9 ........................................................................................... 15, 2 0 8
M e t h o d s o f p r o t e c t i n g d e p o s i t o r s .................................................................................... 1 4 - 1 9
O f f i c e o f C o r p o r a t e A u d i t s ............................................................................................................3 2
O f f i c i a l s ...................................................................................................................................... iii, vii, 3 2
O r g a n i z a t i o n ...............................................................................................................................................vi
P a y m e n t s t o i n s u r e d d e p o s i t o r s ..................................................... 1 4 - 1 5 , 2 0 5 , 2 0 9 , 2 1 2
P r o b l e m b a n k s .............................................................................................................................. 1 2 - 1 4
R e c e iv e r, FDIC a s .........................................................................................................................1 5 - 1 6
R e c o v e r i e s ........................................................................................................................... 1 8 - 1 9 , 2 0 8
R e g i o n s .................................................................................................................................................... viii
R e g u l a t i o n o f i n t e r e s t r a t e s ................................................................................................... 2 2 - 2 4
R e p o r t s f r o m b a n k s .......................................................................................................................... 2 6
R e p o r t s o f c h a n g e in b a n k c o n t r o l ..........................................................................................8 - 9
R e s e rv e f o r l o s s e s o n a s s e ts a c q u i r e d .................................................................. 3 0 , 3 8 , 4 0
R u le s a n d r e g u l a t i o n s ........................................................................................................ 1 3 1 - 1 3 4
S o u r c e a n d a p p l i c a t i o n o f f u n d s ............................................................................................... 41
S u p e r v i s o r y r e s p o n s i b i l i t y ............................................................................................................ 3 - 6
F e d e ra l F in a n c i a l I n s t i t u t i o n s E x a m i n a t i o n C o u n c i l ( F F I E C ) ............................... 6, 9, 2 4 - 2 6
F e d e r a l H o m e L o a n B a n k B o a r d ........................................................................................................ 9, 2 0
F e d e r a l l e g i s l a t i o n , 1 9 7 9 ......................................................................................................................... 1 31
F e d e r a l R e s e rv e a u t h o r i t i e s ........................................................................... 3, 4 , 9, 1 0 , 1 4 , 2 5 , 2 6
F e d e r a l R e s e rv e m e m b e r b a n k s . S e e C la s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by.




INDEX

219

F id e l i t y B a n k , U t i c a , M i s s i s s i p p i .............................................................................................................. 17
F i n a n c i a l I n s t i t u t i o n s R e g u l a t o r y a n d I n t e r e s t Rate C o n t r o l
A c t o f 1 9 7 8 (FIRIRCA ) ................................................................................................... 8, 9, 2 4 , 2 6 , 2 9
G a t e w a y N a t i o n a l B a n k o f C h i c a g o ...................................................................................................... 1 7
G e n e r a l A c c o u n t i n g O f f i c e ......................................................................................................................... 3 6
G u a r a n t y B a n k a n d T r u s t Co., C h i c a g o , III ........................................................................................ 17
H o m e M o r t g a g e D i s c l o s u r e A c t o f 1 9 7 5 .................................................................................... 4, 2 0
I n c o m e o f F D I C ............................................................................................................................. 3 5 - 3 7 , 2 1 0
In c o m e o f in s u re d c o m m e r c ia l banks:
A m o u n ts of p rin c ip a l c o m p o n e n ts :
A n n u a l l y , 1 9 7 4 - 1 9 7 9 ................................................................................................................ 1 8 9
By c la s s o f b a n k , 1 9 7 9 .............................................................................................................. 1 9 2
By size o f b a n k , 1 9 7 9 ................................................................................................................ 1 9 4
M e t h o d s o f t a b u l a t i n g d a t a ..................................................................................................... 1 8 6
R a tio s o f i n c o m e it e m s :
A n n u a l l y , 1 9 7 4 - 1 9 7 9 ................................................................................................................ 1 9 1
By size o f b a n k , 1 9 7 9 ................................................................................................................ 1 9 4
S o u r c e s o f d a t a ............................................................................................................................. 1 8 7
In c o m e o f in s u re d m u tu a l sa v in g s banks:
A m o u n t s o f p r i n c i p a l c o m p o n e n t s , 1 9 7 4 - 1 9 7 9 ........................................................... 1 9 7
R a tio s o f i n c o m e a n d e x p e n s e it e m s , 1 9 7 4 - 1 9 7 9 ..................................................... 1 9 9
S o u r c e s o f d a t a ................................................................................................................................ 1 8 7
I n d i v i d u a l R e t i r e m e n t A c c o u n t s ..............................................................................................................3 4
I n s o l v e n t b a n k s . S ee B a n k s in f i n a n c i a l d i f f i c u l t i e s .
I n s u r e d b a n k s . S e e A s s e t s , l i a b i l i t i e s a n d c a p i t a l o f b a n k s ; B a n k s in f i n a n c i a l
d iffic u ltie s ; D e p o s its ; In c o m e o f in s u re d c o m m e r c ia l banks; In c o m e of in s u re d
m u tu a l s a v in g s banks; N u m b e r of b a n ks and b ra n c h e s .
I n s u r e d c o m m e r c i a l b a n k s n o t m e m b e r s o f t h e F e d e r a l R e s e rv e S y s t e m .
S ee C la s s o f b a n k ; b a n k i n g d a t a p r e s e n t e d by.
I n s u r e d d e p o s i t s . S e e B a n k s in f i n a n c i a l d i f f i c u l t i e s ; FDIC, c o v e r a g e o f d e p o s i t
in s u ra n c e .
I n s u r e d S t a t e b a n k s m e m b e r s o f t h e F e d e r a l R e s e rv e S y s t e m .
S e e C la s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by.
I n t e r a g e n c y s u p e r v i s i o n ................................................................................................................ 3, 4, 6, 9
I n t e r e s t r a te s ;
I n c r e a s e d i n t e r e s t e x p e n s e ( g e n e r a l ) ...................................................................................... 22
F ed e ra l f u n d ra te s ............................................................................................................................ 22
Paid o n m a r k e t s e c u r i t i e s ................................................................................................................ 22
Paid o n m o n e y m a r k e t c e r t i f i c a t e s ........................................................................................... 23
Paid o n t r e a s u r y b i l l s ......................................................................................................................... 22
Paid o n d e p o s i t s ................................................................................................................... 191, 2 0 3
I n t e r n a t i o n a l b a n k i n g .................................................................................................................. 22, 24, 25
I n t e r n a t i o n a l B a n k i n g A c t o f 1 9 7 8 .................................................................................. 24, 26
I n v e s t m e n t s . See A s s e t s , lia b il i t i e s , a n d c a p i t a l o f b a n k s ; A s s e t s a n d l i a b il i t i e s o f
FDIC ; B a n k s in f i n a n c i a l d i f f i c u l t i e s .
K e o g h r e t i r e m e n t p l a n s .............................................................................................................................. 34
L e g a l D i v i s i o n a c t i v i t ie s :
E v a l u a t i o n o f o u t s i d e a t t o r n e y s ........................................................................................................ 28
G u i d e l i n e s f o r s e l e c t i n g o u t s i d e c o u n s e l .................................................................................. 28
L e g i s l a t i o n r e l a t i n g t o d e p o s i t i n s u r a n c e a n d b a n k i n g , F e d e ra l,
e n a c t e d in 1 9 7 9 ................................................................................................................... 131
L i q u i d a t i o n a c t i v i t ie s :
I n t e g r a t e d L i q u i d a t i o n A c c o u n t i n g S y s t e m ................................................................................. 19
R e c o v e r i e s t h r o u g h l i q u i d a t i o n ................................................................................................. 1 6 -17
L i v i n g s t o n S ta te B a n k , L i v i n g s t o n , N. J ............................................................................................... 17




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FEDERAL DEPOSIT INSURANCE CORPORATION

L o a ns. See A s se ts, l ia b ilit ie s , a n d c a p i t a l o f b a n k s ; B a n k s in f i n a n c i a l
d iffic u ltie s .
L o ss e s :
Of banks. See In c o m e of in s u re d c o m m e r c ia l banks; In c o m e of in s u re d
m u tu a l s a v in g s banks.
O f F D I C ................................................................................................................ 1 5, 3 9 , 2 0 8 , 2 0 9 , 2 1 0
O n l o a n s , r e s e r v e s f o r . Se e V a l u a t i o n r e s e r v e s .
P r o v i s i o n f o r , i n s u r e d b a n k s ............................................................ 1 8 9 - 1 9 1 , 1 9 4 , 1 9 6 - 2 0 1
M e rg e rs . See A b s o r p tio n s .
M i n o r i t y B a n k D e v e l o p m e n t P r o g r a m ................................................................................................. 2 2
M o n e y m a r k e t c e r t i f i c a t e s o f d e p o s i t ..........................................................................................2 2 - 2 3
M u n i c i p a l S e c u r i t i e s R u le s M a k i n g B o a r d ( M S R B ) ....................................................................2 7
M u t u a l s a v i n g s b a n k s . Se e A s s e t s , l i a b i l i t i e s a n d c a p i t a l o f b a n k s ;
D e p o s its ; In c o m e of in s u re d banks; N u m b e r of b a n ks and b ra n c h e s .
N a t i o n a l b a n k s . Se e C la s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by.
N a t i o n a l b a n k s a d d e d t o FD IC s y s t e m o f p r o c e s s i n g r e p o r t s
o f c o n d i t i o n .................................................................................................................................................. 3 0
N a t i o n a l C r e d i t U n i o n A d m i n i s t r a t i o n .....................................................................................................9
N e g o t i a b l e O r d e r o f W i t h d r a w a l ( N O W ) A c c o u n t s ............................................................. 2 2 , 2 9
N e w b a n k s , 1 9 7 9 ............................................................................................................................. 1 4 0 - 1 4 3
N o n in s u r e d banks. See A b s o r p tio n s ; A d m is s io n o f b a n k s to in s u ra n c e ;
A s se ts , l i a b il i t i e s a n d c a p i t a l o f b a n k s ; B a n k s in f i n a n c i a l d i f f i c u l t i e s ; C l a s s i f i c a ­
t i o n o f b a n k s ; C l a s s o f b a n k , b a n k i n g d a t a p r e s e n t e d by; D e p o s i t s ; N u m b e r o f
b anks and b ra n c h e s ; R ep orts fr o m banks.
N u m b e r of ba nks and b ra n c h e s :
Banks:
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , J u n e 3 0 , 1 9 7 9 a n d
D e c e m b e r 3 1 . 1 9 7 9 ........................................................................................ 1 6 1 , 1 6 4 , 1 6 8
By i n s u r a n c e s t a t u s , t y p e o f b a n k , n u m b e r o f b r a n c h e s a n d
S ta te , D e c e m b e r 3 1 . 1 9 7 9 ................................................................................................. 1 4 4
By S t a t e a n d a s s e t size o f b a n k ............................................................................................ 1 5 4
By s u p e r v i s o r y s t a t u s a n d a s s e t s i z e ................................................................................. 1 5 3
C h a n g e s d u r i n g 1 9 7 9 ................................................................................................... 1 4 0 , 1 4 2
Branches:
By i n s u r a n c e s t a t u s a n d t y p e o f b a n k , D e c e m b e r 3 1 , 1 9 7 9 ............................. 1 4 0
By i n s u r a n c e s t a t u s , t y p e o f b a n k a n d S ta te , D e c e m b e r 3 1 , 1 9 7 9 ............. 1 4 4
C h a n g e s d u r i n g 1 9 7 9 ................................................................................................. 1 4 0 , 1 4 2
Insured c o m m e r c ia l banks:
D e c e m b e r c a l l d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 0
D is trib u te d by c a p ita l, ratio s and d is trib u tio n of assets and
d e p o s i t s , D e c e m b e r 3 1 . 1 9 7 9 .......................................................................................... 1 8 3
In s u re d m u tu a l s a vin g s banks:
D e c e m b e r c a ll d a t e s , 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 8
N o n i n s u r e d b a n k s b y S t a te , D e c e m b e r 3 1 , 1 9 7 9 ................................................... 1 4 4
U n i t b a n k s , b y i n s u r a n c e s t a t u s a n d S t a te . D e c e m b e r 3 1 . 1 9 7 9 .................... 1 4 4
O b l i g a t i o n s o f b a n k s . S ee A s s e t s , l i a b i l i t i e s , a n d c a p i t a l o f b a n k s .
O f f i c e o f C o n s u m e r A f f a i r s a n d C iv il R i g h t s .............................................................. 5, 1 9 . 2 1 - 2 2
O f f i c i a l s o f F D I C ................................................................................................................................................. m
O p e r a t i n g b a n k s . S ee N u m b e r o f b a n k s a n d b r a n c h e s .
O p p o r t u n i t y F u n d i n g C o r p o r a t i o n ........................................................................................................ 2 2
P a y m e n t s t o d e p o s i t o r s in c l o s e d i n s u r e d b a n k s . S e e B a n k s in f i n a n c i a l
d iffic u ltie s .
P e r s o n n e l . S ee E m p l o y e e s .
P o s s e s s i o n s , b a n k s a n d b r a n c h e s l o c a t e d in. S e e A r e a s o u t s i d e c o n t i n e n t a l
U n i t e d S ta te s , b a n k s a n d b r a n c h e s l o c a t e d in.




INDEX

221

P r o b l e m b a n k s ........................................................................................................................................... 1 2 - 1 4
P r o t e c t i o n o f d e p o s i t o r s . S ee B a n k s in f i n a n c i a l d i f f i c u l t i e s ; D e p o s i t i n s u r a n c e
co ve ra g e.
R e c e i v e r s h i p , i n s u r e d b a n k s p l a c e d in. Se e B a n k s in f i n a n c i a l d i f f i c u l t i e s .
R eco ve rie s;
By b a n k s o n a s s e t s c h a r g e d o f f . S e e I n c o m e o f i n s u r e d c o m m e r c i a l b a n k s ;
in c o m e of in s u re d m u tu a l sa v in g s banks.
By FDIC o n d i s b u r s e m e n t s . See B a n k s in f i n a n c i a l d i f f i c u l t i e s .
R e g i o n s , F D I C .................................................................................................................................................... vm
R e m o v a l p r o c e e d i n g s .................................................................................................................................... 1 2
R e p o r t s f r o m b a n k s ....................................................................................................................................... 2 4
R e p o rts an d su rveys:
D e v e l o p m e n t o f ....................................................................................................................................2 4
D i s c l o s u r e o f l o a n s t o b a n k o f f i c e r s a n d s t o c k h o l d e r s ................................................. 2 6
M o n ito r in g m o n e y m arke t c e rtific a te s and a u to m a tic
t r a n s f e r s ...............................................................................................................................................2 6
N ew rep o rt fo rm fo r c o n d itio n and in c o m e
....................................................................... 2 6
R e s e a r c h a c t i v i t ie s ......................................................................................................................................... 2 9
R e s e rv e s :
O f FD IC , f o r lo s s e s o n a s s e ts a c q u i r e d .................................................................................. 3 8
O f i n s u r e d b a n k s f o r lo s s e s o n a s s e ts . S ee V a l u a t i o n re s e r v e s .
W i t h F e d e ra l R e s e rv e B a n k s . See A s s e ts , l i a b il i t i e s a n d c a p i t a l
of banks.
R i g h t t o F in a n c i a l P r iv a c y A c t o f 1 9 7 8 ............................................................................................... 21
R u le s a n d r e g u l a t i o n s o f t h e FDIC. See F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n .
R u le s a n d r e g u l a t i o n s , 1 9 7 9 :
C h a n g e in b a n k c o n t r o l ............................................................................................................... 131
C o r r e s p o n d e n t a c c o u n t s a n d d i s c l o s u r e o f m a t e r i a l f a c t s ..................................... 1 3 3
D i s c l o s u r e o f t r u s t a s s e t r e p o r t s ........................................................................................... 131
F o r e i g n a c t i v i t i e s o f i n s u r e d S ta te n o n m e m b e r b a n k s .............................................. 1 3 3
I n t e r e s t ra te r e g u l a t i o n s .............................................................................................................. 131
I n t e r n a t i o n a l B a n k i n g A c t .......................................................................................................... 1 3 3
Lim its on lo a n s to e x e c u tiv e o ffic e rs , d ire c to rs and p rin c ip a l
s h a r e h o l d e r s .................................................................................................................................. 1 3 4
M a n a g e m e n t o f f i c i a l i n t e r l o c k s ............................................................................................... 1 3 3
P r o p o s a l s t o s i m p l i f y FD IC r u le s a n d r e g u l a t i o n s ......................................................... 1 3 4
R e c o r d k e e p i n g f o r s e c u r i t y t r a n s a c t i o n s ........................................................................... 1 3 2
S a f e t y a n d s o u n d n e s s e x a m i n a t i o n s ........................................................................................................ 4
S a la r ie s a n d w a g e s o f i n s u r e d b a n k s . See I n c o m e o f i n s u r e d c o m m e r c i a l
banks; In c o m e of in s u re d m u tu a l sa v in g s banks.
S e c u r i t ie s . See A s s e ts , lia b il i t i e s , a n d c a p i t a l o f b a n k s ; A s s e t s a n d l i a b il i t i e s o f
FDIC; B a n k s in f i n a n c i a l d i f f i c u l t i e s .
S e c u r i t i e s a c t i v i t ie s :
L o s t a n d s t o l e n s e c u r i t i e s ..............................................................................................................2 7
M u n i c i p a l s e c u r i t i e s , d e a l e r a c t i v i t y ........................................................................................2 7
O f f e r i n g c i r c u l a r p o l i c y s t a t e m e n t ........................................................................................... 2 8
R e g i s t r a t i o n a n d r e p o r t i n g ............................................................................................................2 7
S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ............................................................................................... 2 7
S e c u r i t ie s , b a n k r e g u l a t i o n o f ..........................................................................................................2 7 - 2 8
S e c u r i t i e s E x c h a n g e A c t o f 1 9 3 4 .................................................................................................... 6, 2 7
S e c u r i t i e s I n f o r m a t i o n C e n t e r , I n c ......................................................................................................... 2 7
Size o f b a n k , d a t a f o r b a n k s c l a s s i f i e d b y a m o u n t o f a s s e ts :
A s s e t s a n d l i a b il i t i e s , p e r c e n t a g e s of, i n s u r e d b a n k s , 1 9 7 9 ................................. 1 8 0
B a n k s r e q u i r i n g d i s b u r s e m e n t s b y FDIC ( d e p o s i t size) 1 9 3 4 - 1 9 7 9 ................ 2 0 5
I n c o m e o f i n s u r e d c o m m e r c i a l b a n k s , 1 9 7 9 .................................................................. 1 9 3




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I n c o m e r a t i o s o f i n s u r e d c o m m e r c i a l b a n k s , 1 9 7 9 ................................................... 1 9 6
N u m b e r , a s s e ts , a n d d e p o s i t s o f all b a n k s ....................................................................... 1 5 3
N u m b e r , a s s e ts , a n d d e p o s i t s o f all c o m m e r c i a l b a n k s , b y S t a t e ........................ 1 5 4
N u m b e r o f e m p l o y e e s o f i n s u r e d c o m m e r c i a l b a n k s , 1 9 7 9 ................................. 1 9 4
N u m b e r o f i n s u r e d c o m m e r c i a l b a n k s , g r o u p e d by r a t io s o f s e l e c t e d
i t e m s t o a s s e ts a n d d e p o s i t s , D e c e m b e r 3 1 , 1 9 7 9 ............................................... 1 8 3
S m a ll s a v e rs :
I n t e r e s t ra te c h a n g e r e g u l a t i o n s ...............................................................................................2 3
T w o a n d o n e - h a l f y e a r c e r t i f i c a t e s ........................................................................................... 2 3
S o u t h e r n N a t i o n a l B ank, B i r m i n g h a m , A l a b a m a ........................................................................... 17
S p e c i a l s e rv ic e s :
O f f i c e of:
C o n t r o l l e r ...........................................................................................................................................3 2
C o r p o r a t e A u d i t s ............................................................................................................................ 3 2
E x e c u t i v e S e c r e t a r y .......................................................................................................................3 2
I n f o r m a t i o n ....................................................................................................................................... 31
L e g i s la t i v e A f f a i r s .......................................................................................................................... 31
S ta te , b a n k i n g d a ta c l a s s i f i e d by:
C h a n g e s in c o m m e r c i a l b a n k s a n d b r a n c h e s , 1 9 7 9 ................................................. 1 4 2
D i s b u r s e m e n t s , d e p o s i t s , a n d d e p o s i t o r s in i n s u r e d b a n k s r e q u i r i n g
d i s b u r s e m e n t s by FDIC, 1 9 3 4 - 1 9 7 9 ............................................................................. 2 0 5
N u m b e r , a s s e ts a n d d e p o s i t s o f c o m m e r c i a l b a n k s , by a s s e t size of
b a n k .................................................................................................................................................... 1 5 4
N u m b e r o f b a n k s a n d b r a n c h e s , by c la s s o f b a n k a n d t y p e o f o f f i c e ,
D e c e m b e r 3 1 . 1 9 7 9 ................................................................................................................. 1 4 4
P e r c e n t a g e o f b a n k s i n s u r e d , D e c e m b e r 3 1 , 1 9 7 9 ................................................... 1 4 4
S ta te b a n k s . See C la s s o f b a n k , b a n k i n g d a ta p r e s e n t e d by.
S t o c k h o ld e r s of b a n k s , net p r o f it s a v a ila b le fo r. See I n c o m e of in s u re d
c o m m e rc ia l banks.
S u p e rv is io n :
D e v e l o p m e n t o f u n i f o r m p o l i c i e s .................................................................................................9
F e d e ra l F in a n c i a l I n s t i t u t i o n s E x a m i n a t i o n C o u n c i l .......................................................... 9
I n t e r a g e n c y C o o r d i n a t i n g C o m m i t t e e ........................................................................................9
U n i f o r m a g r e e m e n t o n c l a s s i f i c a t i o n o f a s s e ts a n d a p p r a i s a l of
s e c u r i t i e s ............................................................................................................................................. 10
U n i f o r m m o n i t o r i n g o f f u t u r e s c o n t r a c t s ............................................................................... 1 0
U n i f o r m r a t i n g s y s t e m f o r e x a m i n a t i o n s .................................................................................. 9
R e s p o n s i b i l i t i e s u n d e r I n t e r n a t i o n a l B a n k i n g A c t ............................................................ 2 4
S u p e r v i s i o n o f b a n k h o l d i n g c o m p a n i e s ............................................................................................... 4
S u p e r v i s i o n o f b a n k s b y FDIC ................................................................................................................3 - 7
S u p e r v i s o r y c la s s , b a n k s g r o u p e d by:
A s s e t s a n d l i a b il i t i e s of, J u n e 3 0 , 1 9 7 9 a n d D e c e m b e r 3 1 , 1 9 7 9 .................... 1 61
C h a n g e s in n u m b e r of, 1 9 7 9 ................................................................................................... 1 4 0
N u m b e r o f b a n k s a n d s i z e .......................................................................................................... 1 5 3
I n c o m e o f i n s u r e d c o m m e r c i a l b a n k s ................................................................................ 1 9 2
N u m b e r o f b a n k i n g o f f i c e s , b y S ta te , D e c e m b e r 3 1 , 1 9 7 9 ................................... 1 4 4
S u s p e n s i o n p r o c e e d i n g s ............................................................................................................................ 12
T a x e s p a i d b y i n s u r e d b a n k s . S ee i n c o m e o f i n s u r e d c o m m e r c i a l b a n k s ;
In c o m e of in s u re d m u tu a l sa v in g s banks.
T e l e p h o n e t r a n s f e r s e r v i c e s .......................................................................................................................2 9
T e r m i n a t i o n s o f i n s u r a n c e f o r u n s a f e a n d u n s o u n d p r a c t i c e s ...................... 1 1 - 1 2 , 4 9 - 6 0
T o n e y B r o t h e r s Ba n k, D o e r u n , G e o r g i a .......................................................................................... 2 0 4
T r u s t a c t i v i t i e s o f b a n k s , e x a m i n a t i o n o f ............................................................................................... 6
T r u s t a s s e t s o f i n s u r e d c o m m e r c i a l b a n k s , s u r v e y o f ....................................................................6




INDEX

223

Trust departments:
Assets managed ...............................................................................................................................6
E x a m i n a t i o n s ......................................................................................................................................6
New depart ments in 1 9 7 9 ..........................................................................................................6
Numbe r su pe rv is ed ......................................................................................................................... 6
Overseas trust activities, survey o f .......................................................................................... 6
Reports r e q u i r e d ...............................................................................................................................6
Trust assets of insured comme rcial banks, survey of ....................................................6
Truth in Lending Act ............................................................................................................. 4-5 2 0 - 2 2
Uniform Interagency Supervision. See Interagency supervision.
Unit banks, by insurance status and State, December 31, 1 9 7 9 ................................... 144
Valu atio n reserves. See also Assets, liabilities, and capital of banks:
A m o u n ts held, June 30, 1 9 7 9 and December 31, 1 9 7 9 ...................................161, 164
A m o u n ts held, December call dates, 1 9 7 4 - 1 9 7 9 ........................................................... 170
Village Bank, Pueblo West, C o l o r a d o .............................................................................................. 1 7
W h it e Collar C r i m e .................................................................................................................................. 2 7








Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102