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Banking & Finance
A N E IG H T H D IS T R IC T P E R SP E C T IV E
Spring 1984

Eighth District Places 20 Banks Among
Nation’s Top 300 Correspondent Banks
Twenty Eighth District banks are among the largest
300 correspondent banks in the United States. The ranks,
published recently in the American Banker, are based on
demand deposits due to U.S. banks. This amount in­
cludes the balances that domestic banks hold with the
correspondent bank as compensation for services provid­
ed by the correspondent. It is one gauge of the value of
the services the correspondent provides to its domestic
customers.
The 20 Eighth District banks and their ranks are
grouped by state in the table on the next page. The banks
are located in all Eighth District states, with the excep­
tion of Mississippi. The largest correspondent bank in the

District is Mercantile Trust Company of St. Louis, which
had $232 million in correspondent balances when the
ranking was done; the smallest District bank among the
top 300 is Midland Bank and Trust Company of Ten­
nessee, which had $11 million.
The table also shows how the top Eighth District cor­
respondent banks rank nationally on the basis of total
deposits. Only nine banks in the District placed among
the nation’s largest 300 banks. A comparison o f the ranks
based on correspondent balances with the ranks based on
total deposits indicates that the large correspondent
banks in this District have more correspondent business
than banks of similar size in other Districts.

An Analysis of the Five Largest Banking Organizations in
Major Eighth District Banking Markets
The four small tables on the next page provide informa­
tion on the five largest banking organizations in the Lit­
tle Rock, Louisville, Memphis and St. Louis banking
markets. The markets are Rand-McNally Metropolitan
Areas, which account for geographic trade patterns. The
organizations are bank holding companies, which own
one or more banks in addition to other financial firms in
businesses closely related to banking. For each market,
the tables indicate the number of banks each organization
owned in January 1984, the total deposits o f these banks
as o f September 30,1983, and the organization’s share o f
total deposits.

to acquire or charter banks to add to their banking of­
fices; banking organizations in the other three markets
could open additional branches of a single bank. A
liberalization of Missouri branching restrictions in
September 1983 now permits a banking organization in
the St. Louis market to merge its banks into county-wide
branch banks.

The five largest organizations have more than half of
all deposits in the St. Louis market, and over 80 percent
in the other markets. The share of total deposits controll­
ed by the market’s five largest banks is one possible
measure of market structure. Another is the Herfindahl
index, which accounts for both the number o f banks in
In the St. Louis market, each organization owns at
the market and the disparity among their market shares.
least seven banks, whereas in the other three markets,
The Herfindahl index also is reported in
each owns one or sometimes two. This dif- •
the tables. It is measured on a scale from
ference results from tighter branching
restrictions in Missouri than in states
zero to 10,000; the top of the scale is reach­
ed if one organization controls all deposits
where the other three markets are located.
in a market. The Herfindahl index gives
Until recently, a bank in Missouri could
TH E
FEDERAL
much the same picture of market struc­
have only one office that provided a full
RESERVE
ture: on the basis of control over deposits,
range of banking services, but a bank in
RANK of
St. Louis is the least concentrated and
Arkansas, Kentucky or Tennessee could
r / A ST. IXH IS
Louisville the most concentrated of the
have several. As a result, banking
four markets.
organ ization s in St. L ouis needed




—Donald M. Brown

FEDERAL RESERVE BANK OF ST. LOUIS

SPRING 1984

TOP EIGHTH DISTRICT CORRESPONDENT BANKS

ARKANSAS
Commercial National Bank, Little Rock
Worthen Bank and Trust Co. NA, Little Rock
Union National Bank, Little Rock
First Commercial Bank NA, Little Rock

Demand Deposits
Due to
U.S. Banks

Corres­
pondent
Rank

Total
Deposits

(thousands)
$ 36,390
30,927
29,412
28,599

152
172
179
183

(thousands)
$ 331,629
524,743
429,548
298,451

Size
Rank

—
—
—

ILLINOIS
First National Bank, Belleville

20,835

222

233,649

INDIANA
Citizens National Bank, Evansville
Old National Bank, Evansville

23,429
23,394

207
209

429,460
479,116

KENTUCKY
Citizens Fidelity Bank and Trust Co., Louisville
First National Bank, Louisville
Liberty National Bank and Trust Co., Louisville

201,372
150,759
87,035

30
45
75

1,590,693
1,751,293
1,051,176

111
89
196

MISSOURI
Mercantile Trust Co. NA, St. Louis
Centerre Bank NA, St. Louis
Boatmen’s National Bank, St. Louis
Bank of St. Louis
Boatmen’s Union National Bank, Springfield
Commerce-Manchester Bank, St. Louis

232,113
184,643
173,664
34,780
21,454
18,463

23
34
40
157
218
238

1,708,898
1,638,007
695,797
202,647
207,710
142,948

84
95
230

TENNESSEE
First Tennessee Bank NA, Memphis
Union Planters National Bank, Memphis
National Bank of Commerce, Memphis
Midland Bank and Trust Company, Memphis

201,009
46,425
33,339
11,113

31
125
162
287

1,451,227
1,190,990
707,285
284,223

136
162
259

_

—

—
—
—

—

SOURCE: American Banker: The deposits and correspondent ranks were reported in the February 29, 1984,issue (pp. 10A-14A and p.1?A).
These figures are based on June 30,1983, Call reports. The size ranks were reported in the March 16,1984, issue (pp. 32-34) and
are based on December 31, 1983, Call reports.

LITTLE ROCK
Banking Organizations
First Commercial
First Arkansas
The Union of Arkansas
Frank Lyon Company
First American
Totals, five largest
Totals, market
Herfindahl index: 1,578

Number of
banks

LOUISVILLE
Banking Organizations

Number of
banks

Deposits
(thousands)

Percent
of market

25.1 %
22.3
15.8
8.9
8.5

First Kentucky National
Citizens Fidelity
Liberty United
Mid-America
CB Bancshares

2
1
1
1
_1

$1,813,900
1,546,700
1,060,700
358,800
144,200

31.7%
27.1
18.6
6.3
2.5

80.7%
100.0%

Totals, five largest
Totals, market
Herfindahl index: 2,145

6
26

$4,924,300
$5,717,900

86.1 %
100.0%

Deposits
(thousands)

Percent
of market

1
1
1
1
2

$585,838
520,559
367,470
208,186
198,884

6
15

$1,880,937
$2,332,137

MEMPHIS
First Tennessee Natl.
Union Planters
National Commerce
General Bancshares
Midland Trust
Totals, five largest
Totals, market
Herfindahl index: 1,922

2


ST. LOUIS

1
1
1
1
_1

$1,543,626
1,025,287
763,596
312,485
253,152

32.9%
21.9
16.3
6.7
5.4

Mercantile
Centerre
Commerce
Boatmen’s Bancshares
General Bancshares

9
7
20
10
7

$ 2,084,304
1,972,429
1,506,146
1,375,086
691,271

14.9%
14.1
10.7
9.8
4.9

5
25

$3,898,146
$4,692,547

83.0%
100.0%

Totals, five largest
Totals, market
Herfindahl index: 733

53
169

$ 7,629,236
$14,028,811

54.4%
100.0%

FEDERAL RESERVE BANK OF ST. LOUIS

SPRING 1984

EIGHTH DISTRICT BANKING DATA
(dollar am ounts in m illions)
Small Weekly Reporting Commercial Banks1

REGION I
(eastern M issouri and southern Illinois)

Assets
U.S. Treasury and Government Agency
Securities
Other Securities
Federal Funds Sold
Total Loans and Leases-Gross
Secured by Real Estate
Commercial and Industrial
To individuals

Feb. 1984

Mar. 1984

Apr. 1984

Percent Change
Year-to-Date

$ 631
218
114

$ 636
213
114

$ 637
216
112

8.1%
-3 .1
-3 1 .7

1,330
584
404
222

1,339
586
411
224

1,371
599
429
230

3.2
2.6
6.7
3.6

2,263

2,261

2,293

0.9

Liabilities
Total Deposits

REGION il
(Arkansas, northern M ississippi, w estern T en n e ss ee )

Assets

F e b .1984

Mar. 1984

Apr. 1984

Percent Change
Year-to-Date

U.S. Treasury and Government Agency
Securities
Other Securities
Federal Funds Sold

$340
216
59

$360
221
67

$376
218
69

10.6%
- 4 .0
15.0

Total Loans and Leases-Gross
Secured by Real Estate
Commercial and Industrial
To individuals

1,314
398
541
222

1,324
404
545
224

1,343
411
555
228

2.9
5.1
3.0
3.2

1,918

1,950

1,978

3.3

Liabilities
Total Deposits

REGION III
(w estern K entucky and southern Indiana)

Assets

Feb. 1984

Mar. 1984

Apr. 1984

Percent Change
Year-to-Date

U.S. Treasury and Government Agency
Securities
Other Securities
Federal Funds Sold

$462
236
182

$481
234
158

$491
233
145

4.0%
- 0 .9
-3 0 .0

Total Loans and Leases-Gross
Secured by Real Estate
Commercial and Industrial
To individuals

1,021
395
315
240

1,030
396
313
244

1,053
398
317
250

3.9
1.0
0.3
5.5

1,811

1,807

1,821

- 1 .5

Liabilities
Total Deposits

1 A sample of commercial banks with total assets less than $300 million.



3

EIGHTH DISTRICT BANKING DATA
(dollar amounts in millions)
Large Weekly Reporting Banks2
Selected Assets
Total Loans
Real Estate
To Financial Institutions
Agricultural
Commercial and Industrial
To Individuals
All Others
Total Investments
U.S. Treasury and Government Agency
Securities maturing in:
1 year or less
1 through 5 years
over 5 years
Securities of State and
Political Subdivisions

Percent Change
Year-to-Date

Feb. 1984

Mar. 1984

Apr. 1984

$11,144
2,315
921
96
4,201
2,228
1,383
3,043

$11,216
2,344
966
100
4,205
2,242
1,359
3,043

$11,400
2,323
1,012
107
4,308
2,286
1,364
3,083

535
944
290

573
869
322

659
808
328

13.8
- 1 3 .0
13.9

1,272

1,278

1,286

3.8

$13,859
1,514
954
8,276
1,630
2,983

$13,851
1,566
975
8,362
1,692
2,999

$14,173
1,511
1,005
8,376
1,686
3,002

4.3%
3.4
12.1
10.3
4.3
2.9
2.2
1.5

Selected Liabilities
Total Deposits
Demand Deposits Adjusted3
Other Transaction Balances4
Total Non-transaction balances
MMDAs
Time Deposits of $100,000 or more

- 0.8%
- 6 .4
0.7
0.6
6.8
-2 .8

Selected Eighth District Interest Rates

Super NOW Accounts
Money Market Accounts
Time certificates and time
deposits less than $100,000:
92 through 182 days
over 1 year but less than 2 1/2 years
2Vz years and over

F e b .1984

Mar. 1984

Apr. 1984

7.36%
8.40

7.52%
8.55

7.49%
8.52

9.38
9.81
9.93

9.78
10.08
10.30

9.78
10.16
10.30

Year Ago
Apr. 1983
7.00%
8.25

N/A
N/A
N/A

2 Large banks are those with total assets greater than $750 million.
3 All demand deposits except those of the U.S. government and commercial banks less cash items in the process of collection.
4 Includes NOW, Super NOW, ATS and accounts permitting telephone or preauthorized transfers.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102