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§7

Comptroller of the Currency
Administrator of National Banks




I*

1

»l%

* .»•




Annual Report 1976
Comptroller of the Currency

The Administrator of National Banks

John G. Heimann
Comptroller of the Currency

Letter of Transmittal

Treasury Department,
Office of the Comptroller of the Currency,
Washington, D.C., October 17, 1977

Sirs: Pursuant to the provisions of Section 333 of the United States Revised Statutes, I am pleased to submit the 1975 Annual Report of the Comptroller of the Currency.
Respectfully,
John G. Heimann,
Comptroller of the Currency.
The President of the Senate
The Speaker of the House of Representatives







Contents
Title of Section
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.

Condition of the National Banking System
Income and Expenses of National Banks
Structural Changes in the National Banking System
Bank Examinations and Related Activities
Law Department
Fiduciary Activities of National Banks
International Banking and Finance
Administration
Consumer Affairs
Other Activities
Financial Operations of the Office of the Comptroller of the Currency

Page
1
3
5
13
15
19
21
23
25
29
31

Appendices
A.
B.
C.
D.

Merger Decisions, 1976
Statistical Tables
Addresses and Selected Congressional Testimony
Selected Rulings

Index




37
121
187
263
291

Statistical Tables
Table No.

Title

1 Assets, liabilities and capital accounts, domestic offices of national banks, December 31, 1976 . . .
2 Income and expenses of national banks, December 31, 1976
3 National banks and banking offices, by states, December 31, 1976
4 Applications for national bank charters and charters issued, by states, calendar 1976
5 Applications for national bank charters pursuant to corporate reorganizations and charters issued, by
states, calendar 1976
6 Applications for conversion to national bank charter and charters issued, by states, calendar 1976
7 Branches of national banks, by states, calendar 1976
8 De novo branch applications of national banks, by states, calendar 1976
9 De novo branches of national banks opened for business, by community size and by size of bank,
calendar 1976
10 Mergers, calendar 1976
11 Examinations of overseas branches, subsidiaries and EDP centers of national banks, 1972 - 1976 .
12 Office of the Comptroller of the Currency: balance sheet
13 Office of the Comptroller of the Currency: statements of revenue, expenses and Comptroller's equity
14 Office of the Comptroller of the Currency: statement of changes in financial position

VI




Page
2
4
6
7
8
9
10
11
12
12
22
32
33
34

I. Condition of the National Banking System
The operations of national banks reflected the steady
recovery the U.S. economy experienced during 1976.
Loans were well over $300 billion. This figure is not directly comparable to 1975's because of changes in the
balance sheet reporting. Deposit growth reflected the
recovery; total deposits grew by 4.8 percent, 1 percent
more than the 1975 rate of 3.8 percent. IPC demand deposits grew 2.5 percent while IPC time and savings deposits increased 9.1 percent, reflecting the somewhat
improved state of the economy. Total time and savings
deposits relative to total deposits continued to increase,
to reach 59.9 percent in 1976. The 1972 figure was 52.0
percent.
Total book assets grew more than 5.4 percent in 1976.
The actual growth was closer to 7.3 percent if provision is
made for the new exclusion of loan reserves and unearned income in 1976. That is significant because it
shows a reversal of the previous trend of declining asset
growth. The four previous increases were 3.6 (1975), 9.2
(1974), 12.6 (1973) and 15.5 (1972) percent.
National banks' securities holdings (including those




held in trading accounts) increased by $10,527 million.
Holdings of U.S. Treasury securities for investment purposes increased more than 17 percent over year-end
1975. State and local government holdings also
increased slightly. The total increase in securities holdings was 8.4 percent, about half the 17.2 percent
increase from 1974 to 1975.
Reserves for possible loan losses reached over
$3,589 million. That figure is equivalent to 1.2 percent of
total loans. Total loans represented 52 percent of total
assets.
Total equity capital of national banks was $41,325 million. Capital notes and debentures increased $436 million, showing the continued weak position of bank stock
in the open market. Total equity capital to assets was 7.1
percent, while equity capital to risk assets, that is total
assets less cash, U.S. Treasuries, and securities of other
U.S. government agencies, was 9.4 percent. Those
ratios are not exactly comparable to those for earlier
years because of the reporting changes.

Table 1
Assets, liabilities and capital accounts, domestic offices of national banks, December 31, 1976
(Dollar amounts in thousands)
Amount

Percent
distribution

4,737 national banks
Assets

Cash and due from banks

$ 76,078,031

967,304
4,973,779

.65
1.69
.30
.31
.87
3.27

583,349,025

100.00

147,018,169
242,873,535
2,126,653
38,088,306
5,917,740
27,332,987
6,051,345

Total assets

.62
51.40

3,808,381
9,879,953
1,722,984
1,777,388
5,086,708
19,076,586

Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liability to this bank on acceptances outstanding
Other assets

5.17
52.02

3,589,367
299,847,407

Federal funds sold and securities purchased under agreements to resell
Total loans (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve

23.30

30,140,010
303,436,774

Total securities

22.28
9.02
2.91
9.84
.51
.17
.85

135,931,577

Federal Reserve stock and corporate stock
Trading account securities

13.04

129,990,494
52,612,836
17,005,880
57,384,363
2,987,415

Total, investment securities
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures

25.20
41.63
.37
6.53
1.01
4.69
1.04

Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits

469,408,735

Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures

;

80.47

188,175,050
281,233,685

Demand deposits
Time and savings deposits

32.26
48.21

51,678,941
2,741,434
406,112
5,140,675
9,921,683

8.86
.47
.07
.88
1.70

539,297,580

92.45

2,726,628

.47

18,754
9,106,275
15,853,738
15,271,833
1,074,217

1.56
2.72
2.62
.18

Equity Capital

Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital

41,324,817

7.08

583,349,025

100.00

NOTE: Data may not add to totals because of rounding. Dashes indicate amounts less than 0.005 percent.




II. Income and Expenses of National Banks
Total income and expenses of the National Banking
System reflected the steady recovery in the U.S. economy during 1976. Total income rose 23.4 percent, a reversal of the previous year's decline. Total expenses also
increased, by 25.2 percent. National banks' net income
increased $332.1 million, or 7.8 percent. That rate was
2.5 percent more than the 5.3 percent increase achieved
1974 to 1975. Applicable income taxes on operating
income rose to $1,436.8 million, 34.5 percent more than
the previous year. The rate of return on assets was 0.79,
slightly more than 1975's 0.77.
Interest and fees on loans increased $5,555.4 million
to $31,031.0 million, showing an increase of 21.8 percent. Income from federal funds sold or securities
purchased under agreements to resell decreased to
$1,383.6 million. Loan-related income fell to 64.6 percent
of total operating income, continuing the pattern of previous years. Total revenue from securities holdings
(including stock) as a proportion of total revenue declined slightly to 16.2 percent from 1975's 17.0 percent
figure.
Holdings of U.S. Treasury securities for investment
purposes increased $7,802 million. That produced an
increase in interest earned on such securities of $786.5




million, or 32.7 percent. The interest earned on U.S.
Treasuries was $1,964.1 million more than the earnings
on Federal funds sold and securities purchased to resell.
That reinforces the reversal of the previous trend. Prior to
1975, interest earned on U.S. Treasuries had been less
that the earnings from Federal funds sold and securities
purchased under agreements to resell. Revenues from
obligations of states and political subdivisions totalled
$2,801.1 million, a small increase over the 1975 figure.
The expense items involving interest payments
increased by 37.5 percent. Interest on deposits, the
largest expense item, increased to $20,885.8 million, an
increase for the year of 37 percent. Salaries and employee benefits increased 18.6 percent, more than double the previous year's increase. Provisions for loan
losses increased by $26.1 million, or 1.2 percent. That
small increase in the provision for loan losses was important in making 1976 a profit year.
Cash dividends paid totaled $1,821.1 million, almost
the same amount paid in 1976. In 1975, the dividend
pay-out ratio declined to 39.7 percent. The previous two
years' dividend pay-out ratios were 42.8 (1975) and 41.3
(1974) percent.

Table 2
Income and expenses of National banks, December 31, 1976
(Dollar amounts in thousands)
Amount

Percent
distribution

4,737 national banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to resell in domestic
offices
Income on securities:
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices .,
Other service charges, commissions, and fees
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more issued by domestic offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to repurchase in
domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses

$31,031,046
2,946,656

64.61
6.14

1,229,182

2.56

7,696,571

16.03

3,193,274
1,210,149
2,801,076
492,072

6.65
2.52
5.83
1.03

62,149
408,438
1,029,203
911,467
1,441,484
1,265,214

.13
.85
2.14
1.90
3.00
2.64

48,021,410

100.00

8,575,522
4,327,891
5,962,140
10,595,809

20.37
10.28
14.16
25.17

2,268,120
454,745
179,190
1,548,312
1,015,489
2,250,427
4,925,748

5.39
1.08
.42
3.68
2.41
5.34
11.70

42,103,393

100.00

Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect

5,918,017
1,436,755
4,481,262
168,493
-72,596
95,897
4,577,159
13,891

Net income

4,591,050

Cash dividends declared:
On common stock . . . .
On preferred stock....

1,820,000
1,088

Total cash dividends declared

1,821,088

Ratio to income before income taxes and securities gains or losses:
Applicable income taxes
Net securities gains
Extraordinary charges or credits

24.28
1.62
.24

Ratio to total operating income:
Salaries and wages
Interest on deposits*
All other operating expenses
Total operating expenses
Net income

17.86
43.49
26.33
87.68
9.56

* Includes expenses on all deposits.
NOTE: Data may not add to totals because of rounding. Includes all banks operating as national banks at year-end and full year data for
those state banks converting during the year.




Structural Changes in the National Banking
System
The National Banking System consisted of 4,737
banks as of year-end 1976. Of that number, 2,643 were
unit banks and 2,094 operated 16,640 domestic
branches. The total number of banking offices of national
banks in the U.S. was 21,377, an increase of 364 for the
year. During the year the number of branches increased
2.3 percent and the number of banking offices increased
1.7 percent. Both of those rates are less than the previous year's growth rates. The three large unit banking
states, Texas, Illinois and Florida, continued to lead in
total number of banks; at year-end 1976, there were 596,
425 and 306 banks in those states, respectively. California remained the state with the largest number of banking offices, with 2,766, up from 2,704 at year-end 1975.
New York and Pennsylvania continue to rank second and
third with 1,643 and 1,606 offices, respectively. New
York experienced a decrease of 138 offices, 117 of
which were branch offices. That shows the effect of the
change in that state's branching law which became effective in 1976.
During 1976, 536 cte novo branches entered the National Banking System. Mergers and conversions added




235 branches, while subtracting 394. The vast majority of
the new branches (ate novo) were in cities with populations of less than 100,000 persons. The percentage of
new branches in cities of that size was 69 percent in
1975, and increased to 75 percent in 1976. Banks with
total resources of less than $100 million established 238,
or 44 percent of the ate novo branches. The large banks,
those with over $1 billion in total resources, opened 142
branches, or about 26 percent of all new branches.
California led all states with 77 new branches, followed
by Michigan and Pennsylvania with 42 and 38, respectively.
Again, in 1976, the number of charters issued was
below the previous year's. There were 65 national banks
chartered in 1976 compared to 76 in 1975 and 92 in
1974. Only 34 applications were approved in 1976,
compared to 72 the previous year. Texas led the states in
charters issued with 19, followed by Florida with 8. Additionally, 14 banks were chartered for the purpose of effecting corporate reorganizations and 9 state-chartered
banks converted to national bank status.

Table 3
National banks and banking offices, by states, December 31, 1976
National banks
Total
All national banks
50 states
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia . . . .
Florida

With
branches

Unit

Number
of
branches

Number
of
offices

4,737
4,735
97
6
3
73
58
132
23
5
15
306

2,643
2,641
35
1
1
16
13
107
3
2
3
239

2,094
2,094
62
5
2
57
45
25
20
3
12
67

16,640
16,640
300
73
307
172
2,708
25
262
4
128
66

21,377
21,375
397
79
310
245
2,766
157
285
9
143
372

Kansas ..
Kentucky .
Louisiana.
Maine

64
2
6
425
120
100
169
82
54
17

17
0
1
315
33
52
121
25
11
1

47
2
5
110
87
48
48
57
43
16

318
11
167
110
483
85
70
228
254
117

382
13
173
535
603
185
239
310
308
134

Maryland
Massachusetts ..
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire .

41
75
122
203
38
115
56
120
4
43

9
19
181
5
61
49
84
1
10

33
66
103
22
33
54
7
36
3
33

365
506
792
28
220
69
7
52
78
89

406
581
914
231
258
184
63
172
82
132

New Jersey
New Mexico
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

104
38
129
28
43
219
195
7
237
5

9
8
34
7
21
50
141
1
83
0

95
30
95
21
22
169
54
6
154
5

1,012
115
1,514
788
23
1,018
54
310
1,369
115

1,116
153
1,643
816
66
1,237
249
317
1,606
120

South Carolina
South Dakota .
Tennessee . . .
Texas
Utah
Vermont
Virginia
Washington . . .
West Virginia .
Wisconsin . . . .
Wyoming

19
32
74
596
13
14
108
21
103
130
46

6
18
10
591
8
4
14
3
77
87
46

13
14
64
5
5
10
94
18
26
43
0

299
80
353
5
99
47
679
556
26
84
0

318
112
427
601
112
61
787
577
129
214
46

1
1

1
1

0
0

0
0

1
1

Georgia ..
Hawaii . . .
Idaho
Illinois
Indiana ..

Iowa

Puerto Rico
FDIC National Bank
District of Columbia - all*

16
129
13
* Includes national and non-national banks in the District of Columbia, all of which are supervised by the Comptroller of the Currency.




145

Table 4
Applications for national bank charters* and charters issued, by states, calendar 1976
Received^

Approved

Disapproved

Withdrawn

Pending
December 31,

Chartered

1976
Total

69

65

0
0
0
0
0
0
0
0
0
2

1
0
0
2
3
3
1
1
1
11

3
0
0
0
2
0
0
0
0

0
0
0

2

1

1
1

0

0
0
0
1
0

0
0
0
6
1
0
0
2
1
0

0
0
0
0
0
0
0
0
0
0

0
0
3
0
2
1
0
0
0
0

0
0
2
3
0
4
1
0
0
0

1

0
3
2
0
0
1
1
0
0
0

0
2
1
1
0
3
1
0
0
0

2
0
0
19
0
0
0
0
2
2
1

0
0

1
0
0
0
3
1
1

0
0
0
0
0
0
0
0
0
0

1
19
1
0
1
0
0
2
0

0
0

0
0

0
1

0
0

145

34

36

3
0
0
3
6
5
1
1
1
28

0
0
0
1
0
2
0
0
0
3

2
0
0
0
3
0
0
0
0
12

Georgia .
Hawaii . . .
Idaho
Illinois . . .
Indiana ..
Iowa . . . .
Kansas . .
Kentucky
Louisiana
Maine . . .

2
1
0
9
5
0
0
1
3
0

0
0
0
3
3
0
0
0
0
0

0
0
0
4
1
0
0
1
1
0

Maryland
Massachusetts .
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

0
0
4
1
2
0
0
0
0
0

0
0
1
1
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

New Jersey
New Mexico....
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

2
3
6
0
1
3
4
0
1
0

1
0
2
0
1
2
2
0
0
0

0
0
2
0
0
0

3
0
1
26
2
0
0
1
7
5
2

0
0
1
5
1
0
0
1
2
2
0
0
0

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida

South Carolina
South Dakota..
Tennessee
Texas
Utah
Vermont
Virginia
Washington . . .
West Virginia ..
Wisconsin
Wyoming

Virgin Islands
0
1
Puerto Rico ..
* Excludes conversions and corporate reorganizations.
t Includes 73 applications pending as of December 31, 1975.




1
0

1
0
0
0
0
2

0
0
0
0

1

0
0
0
0
0
0
0
0
0
1

1
0

Table 5
Applications for national bank charters pursuant to corporate reorganizations and charters issued, by states, calendar
1976
Pending
December 31,
Disapproved
Withdrawn
Received*
Approved
Chartered
1976
1
14
24
22
Total
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
1
0
0
0
1
0

Georgia .
Hawaii...
Idaho....
Illinois . . .
Indiana ..
Iowa . . . .
Kansas ..
Kentucky
Louisiana
Maine . . .

3
0
0
3
1
0
0
0
0
0

3
0
0
3
0
0
0
0
0
0

0
0
0
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
2
0
0
0
0
0
0

Maryland
Massachusetts .
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

1
3
5
0
0
0
0
0
0
0

1
3
5
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
1
2
0
0
0
0
0
0
0

New Jersey . . . .
New Mexico
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

0
0
1
0
0
1
0
0
0
0

0
0
1
0
0
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
0
0
0
0
0
0
0

0
0
1
0
0
2
0
0
0
0

South Carolina
South Dakota..
Tennessee
Texas
Utah
Vermont
Virginia
Washington . . .
West Virginia ..
Wisconsin
Wyoming

0
0
1
4
0
0
1
0
0
0
0

0
0
0
4
0
0
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
0
1
0
0
0
0
0
0
0
0

0
0
0
3
0
0
1
0
0
0
0

Virgin Islands
Puerto Rico ..

0
0

0
0

0
0

0
0

0
0

0
0

* Includes 2 applications pending as of December 31, 1975.




Table 6
Applications for conversion to national bank charter and charters issued, by states, calendar 1976
Received*

Approved

Rejected

Withdrawn

Pending
December 31,

Chartered

1976
Total

15

11

Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida

0
0
0
0
0
0
0
0
0
5

0
0
0
0
0
0
0
0
0
4

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

0
0
0
0
0
0
0
0
0
4

Georgia .
Hawaii . . .
Idaho
Illinois . . .
Indiana ..
Iowa . . . .
Kansas ..
Kentucky
Louisiana
Maine . . .

1
0
1
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

0
0
0
0
0
0
0
0
0
0

0
0
1
0
0
0
0
0
0
0

1
0
0
0
0
0
0
0
0
0

Maryland
Massachusetts .
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

0
0
1
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
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0

0
0
1
0
0
0
0
0
0
0

New Jersey . . . .
New Mexico....
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

0
1
0
1
0
0
0
0
0
0

0
1
0
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
0
0
0
0
0
0
0
0
0

0
0
0
1
0
1
0
0
0
0

South Carolina
South Dakota. .
Tennessee

0
0
0

Texas

1
0
0
1

0
0
0
1
0
0
1
0
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
0
0
0
0
0
2
0
0

0
0
0
0
0
0
1
0
0
0
0

Alabama

Alaska

Utah
Vermont
Virginia
Washington . . .
West Virginia ..
Wisconsin
Wyoming
* Includes those pending from prior years.




0
3
0
0

Table 7
Branches* of national banks, by states, calendar 1976
Branches
in
operation
December 31,
1975
All national banks
50 states

De novo
branches
opened for
business
Jan. 1 to
Dec. 31,1976

Branches
acquired
through
merger or
conversion
Jan. 1 to
Dec. 31, 1976

Existing
branches
discontinued
or
consolidated
Jan. 1 to
Dec. 31, 1976

Branches
in
operation
December 31,

1976

16,269
16,262
290
66
300
160
2,647
25
258
4
98
53

536
536
12
7
12
11
77
1
1
0
3
12

235
235
1
0
0
1
1
0
4
0
30
1

394
393
3
0
5
0
17
1
1
0
3
0

16,640
16,640

Georgia ..
Hawaii . . .
Idaho
Illinois
Indiana ..
Iowa
Kansas ..
Kentucky .
Louisiana.
Maine

318
11
161
103
469
83
63
204
242
128

5
0
6
9
16
2
9
23
12
1

5
0
0
0
1
0
0
1
0
1

10
0
0
2
3
0
2
0
0
13

318
11
167
110
483
85
70
228
254
117

Maryland
Massachusetts ..
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire .

357
504
749
25
210
65
5
50
77
85

10
15
42
4
11
4
2
3
1
6

2
2
16
0
1
0
0
0
0
0

4
15
15
1
2
0
0
1
0
2

365
506
792
28
220
69
7
52
78
89

New Jersey
New Mexico
New York
North Carolina .,
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

963
111
1,631
767
21
972
51
299
1,354
114

27
4
27
11
2
32
3
11
38
2

34
0
18
14
0
17
0
0
10
0

12
0
162
4
0
3
0
0
33
1

1,012
115
1,514
788
23
1,018
54
310
1,369
115

298
75
368
1
98
48
661
519
18
83
0

5
2
10
4
1
0
15
14
8
3
0

0
3
24
0
0
1
14
33
0
0
0

4
0
49
0
0
2
11
10
0
2
0

299
80
353
5
99
47
679
556
26
84
0

7%

0

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida

South Carolina
South Dakota .
Tennesse . . . .
Texas
Utah
Vermont
Virginia
Washington . . .
West Virginia .
Wisconsin . . . .
Wyoming
Virgin Islands
District of Columbia - allt

128

0

300
73
307
172
2,708
25
262
4
128
66

129

* Does not include foreign branches. For those branches, see table B-35.
t Includes national and non-national banks in the District of Columbia, all of which are supervised by the Comptroller of the Currency.
X Includes 6 branches of Virgin Islands National Bank, merged into First Pennsylvania Bank, N.A., December 31, 1975. Those branches are now
operated as "foreign branches" of the resulting bank.


10


Table 8
De novo branch applications of national banks, by states, calendar 1976
Received*

Approved
600

Rejected

Abandoned

Pending
December 31, 1976

77

32

256

11
6
7
5
63
4
4
0
2
119

1
0
0
0
6
0
0
0
2
21

0
0
0
0
0
0
0
0
0
10

9
3
11
4
18
2
1
0
2
20

9
0
10
50
33
3
7
30
20
3

9
0
9
23
17
2
5
26
12
3

0
0
0
0
4
0
1
0
1
0

0
0
0
2
2
1
0
0
2
0

0
0
1
25
10
0
1
4
5
0

Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

15
21
111
7
15
12
3
3
4
5

12
16
35
4
9
4
3
1
2
4

2
1
18
1
0
0
0
0
0
0

0
4
4
1
1
1
0
0
0
0

1
0
54
1
5
7
0
2
2
1

New Jersey
New Mexico
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

40
5
26
16
2
53
6
18
33
0

29
4
18
12
2
30
4
14
21
0

1
0
5
0
0
6
1
1
2
0

1
0
1
0
0
0
0
0
0
0

9
1
2
4
0
17
1
3
10
0

2
2
0
0
16
7
3
3
7
3
1
1
17
13
17
20
2
3
Wisconsin
1
5
Wyoming
0
0
* Includes 171 applications pending as of December 31, 1975.

0
0
1
0
0
0
0
1
0
1
0

0
0
0
0
0
0
1
0
1
0
0

0
0
8
0
4
0
3
2
0
3
0

Total ..

965

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida

21
9
18
9
87
6
5
0
6
170

Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine

South Carolina ..
South Dakota . ..
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia . . .




11

Table 9
De novo branches of National banks opened for business, by community size and.by size of bank,
calendar 1976
Population of cities
Less than 5,000

5,000 to 24,999
25,000 to 49,999
50,000 to 99,999
100,000 to 249,999 ..
250,000 to 499,999 ..
500,000 to 1,000,000
Over 1,000,000

Total

Branches

.100
.170
..76
..57
..52
..31
..30
..20

Less than 10.0
10.0 to 24.9
25.0 to 49.9

Total resources of banks
(millions of dollars)
:

Branches
25
70
83

50.0 to 99.9
100.0 to 999.9

60
156

1,000.0 and over

.142

Total

536

.536

Table 10
Mergers*, calendar 1976
Transactions
involving
two or more
operating banks

Others pursuant
to
corporate
reorganization

Applications received, 1976:
Mergers
Consolidations
Purchases and Assumptions

46
2
29

13
3
0

59
5
29

Total received

77

16

93

Approvals issued, 1976:
Mergers
Consolidations
Purchases and Assumptions

39
1
27

12
2
0

51
3
27

Total approvals

67

14

81

5
1
0

7
0
0

12
1
0

6

7

13

36
1
25

13
2
0

49
3
25

62

15

77

Abandoned, 1976:
Mergers
Consolidations
Purchases and Assumptions
Total abandoned
Consummated, 1976:
Mergers
Consolidations
Purchases and Assumptions
Total consummated

* Includes mergers, consolidations and purchases and assumptions where the resulting bank is a national bank.


12


Total

IV. Bank Examinations and Related Activities
By statute, all National banks are required to be
examined twice in each calendar year. However, the
Comptroller of the Currency, in the exercise of his discretion, may waive one such examination in each 2-year
period, or may cause such examinations to be made
more frequently, if considered necessary. The Code of
the District of Columbia authorizes the Comptroller to
examine each non-national bank and trust company located in the District.
For the year ended December 31, 1976, the Office
examined 5,426 banks, 11,357 branches and facilities,
1,453 trust departments and 261 affiliates and subsidiaries and conducted 314 special examinations and
visitations. The Office received 54 applications to establish new banks and processed 794 applications for de
novo branches and 9 applications to convert state banks
to national banking associations.
National bank examinations are designed to determine the condition and performance of banks, the quality
of their operations and the capacity of management and
to enforce compliance with federal laws. The Office is
presently implementing new examination policies and
procedures incorporating the recommendations of the
Haskins & Sells study, the informal acceptable practices
of many examiners and current industry innovations. The




examination process has been modified to place greater
emphasis on analysis and interpretation of financial data
and less on detailed verification. Also, more reliance is
being placed on systems for internal control and the
work performed by internal and external auditors. It is anticipated that all examiners will be using the new procedures by mid-1977.
As of December 31, 1976, the Office employed 2,336
examiners, 2,195 commercial and 141 trust examiners.
The Office continues to use a select group of EDP
examiners in each of the 14 regions to examine bank
EDP operations. Those examiners have been specially
trained in EDP and receive continuous update training,
as needed. A major achievement in EDP during the year
was the promulgation of Minimum Standards of Information for Automated Systems. That document will contribute to the improvement of information used for evaluations performed by this Office and by bank management.
Ninety-nine national banks with 635 foreign branches
are examined by examiners specially trained in
international procedures and policies. Those examiners
attend periodic seminars conducted by staff personnel
and outside international experts to update their knowledge on international financial affairs.

13




V. Law Department
The Law Department advises the Comptroller of the
Currency and his staff on legal matters pertaining to the
administration and interpretation of laws and regulations
governing the National Banking System. Attorneys in the
Law Department deal directly with the management of
national banks, with bank attorneys and accountants
and with the staffs of other government agencies and
Congressional committees. The Department also responds to litigation in which the Office may become
interested and exercises certain direct responsibility in
enforcement and securities disclosure. Some of the Department's major activities are described below.

Legislation
During 1976, the Law Department was responsible for
the preparation of testimony and related materials for the
Comptroller of the Currency and other agency officials in
connection with Congressional hearings. Topics
included practices and procedures of the Office, the
House Banking, Currency and Housing Committee's
study of Financial Institutions and the Nation's Economy
(FINE), proposed legislation to consolidate the federal
bank regulatory agencies into a single agency, and fair
lending practices. Representatives of the Office also
spoke on the need to strengthen the enforcement powers provided in the federal banking laws, the regulatory
processes of the Office particularly in connection with
the failure of Franklin National Bank, and federal enforcement of the Truth-in-Lending Act. (See Appendix C,
Addresses and Selected Congressional Testimony, pp.
187-262, in this report.) Agency comments also were offered on a wide array of proposed legislation affecting
bank regulation, ranging from freedom of information
and privacy to federal regulation of foreign banks, competition in banking, and anti-trust laws.

Litigation
On January 1, 1976, there were 39 cases pending in
which the Comptroller was a defendant. During the year,
17 of those cases were concluded, 11 in the Comptroller's favor, five unfavorably and one by stipulation resulting in a compromise acceptable to all parties.
The most significant cases were those involving the
Comptroller's Interpretive Ruling 7.7491 on customerbank communication terminals. Despite varying rulings
by the district courts, four courts of appeals considered




the cases and all ruled against the Comptroller's position
that CBCT's are not branches. In October, the Supreme
Court denied certiorari in two of the cases and the Comptroller's ruling subsequently was rescinded.
Other issues litigated during the year included the validity of the Comptroller's assessment proceedings,
whether an office engaged in providing trust services
constitutes a "branch" of a national bank, and the government's liability for alleged negligence in supervising
United States National Bank of San Diego and Franklin
National Bank. The Law Department also participated in
litigation brought by the Department of Justice alleging
that a transaction approved by the Comptroller leading
to the acquisition of four banks by Michigan National
Corporation violated Section 7 of the Clayton Act. That
litigation was eventually settled out of court.

Securities Disclosure
Major revisions in the consolidated reports of condition
and income ("call reports") required by the federal banking regulatory agencies were made during 1976. In addition, Securities and Exchange Commission Guides 61
and 3.were adopted as a result of the joint efforts of the
SEC - Federal Banking Agencies Task Force on statistical disclosure by bank holding companies. Those actions precipitated substantial modifications of the Comptroller's various regulations relating to the form and content of financial disclosure by national banks.
The Law Department assisted in revising 12 CFR 18,
"Form and Content of Annual Reports to Shareholders,"
to make the regulation substantially consistent with the
instructions for the new consolidated reports of condition
and income. As revised, the regulation provides specific
exemptions, as well as a short form for complying with it.
The Department also made a comprehensive revision
of 12 CFR 16, Securities Offering Disclosure Rules. That
regulation concerns the use of an offering circular by a
national bank when it offers and sells its equity securities.
The revision was adopted to require that prospective
investors be provided with all material facts and information relating to the business operations and financial
condition of national banks seeking to obtain funds
through the public offering and sale of their securities.
The disclosure guideline standards in the revised regulation were designed to facilitate compliance by smaller
banks and by organizing banks. For the first time, a

15

number of transactions were specifically exempted from
the offering circular requirements.
The Law Department also implemented amendments
to 12 CFR11, Securities Exchange Act Disclosure Rules,
designed to make the regulation substantially similar to
SEC rules, as mandated by law. Other changes were
made in the regulation in order to effect consistency with
the other reporting guidelines.
In connection with the Office's expanded responsibilities with respect to the regulation of bank municipal
securities dealers under the Securities Acts Amendments of 1975, the Department coordinated with the
SEC, the Municipal Securities Rulemaking Board and
other interested parties in carrying out the requirements
of the Securities Exchange Act of 1934. Accountants assigned to the Law Department also issued numerous
interpretations to bankers, public accountants and regional and Washington Office personnel regarding various accounting matters, including sale-and-lease back
transactions, accounting for dividends, accounting relating to the establishment of charitable trusts and accounting for accretion of discount on investment securities.

Interpretations and Regulations
During 1976, the Law Department responded to nearly
4,000 requests for information, advice and
interpretations of statutes and regulations from members
of the Comptroller's staff, banks, attorneys, bank customers and others. In addition, many formal rulings
involving new policies and procedures or modifications
of existing policies and procedures were either proposed or issued. Some are described below.
Banking Circular No. 79. The Commodity Futures Trading Commission has authorized the establishment of two
financial instrument futures markets: the Chicago Board
of Trade's GNMA Mortgage Futures contract which
commenced trading in October 1975, and the Chicago
Mercantile Exchange's Treasury bill (T-bill) futures contract which commenced trading in January 1976. Many
national banks sought to purchase and sell GNMA or
T-bil! futures contracts through those exchanges in order
to minimize their risk of loss resulting from interest rate
fluctuations in corresponding cash markets, e.g., conventional mortgages, U.S. Treasury bills and certificates
of deposit. Because the Comptroller believes such activity is incidental to the business of banking and permissible under 12 USC 24(7), he issued Banking Circular No.
79 on November 2,1976, advising all national banks that
their participation in those markets will be approved if,
among other things, they develop adequate internal
audit and control procedures and only engage in those
activities to substantially reduce the risk of loss resulting
from interest rate fluctuations in appropriate cash markets.
Trust Banking Circular No. 4 (Revised). In the initial issue
of Trust Banking Circular No. 4, December 23,1975, the
Office advised that investment of national bank trust assets in shares of mutual funds constituted an improper
delegation of the trust investment authority "under the
common law" and that the Office would, therefore, permit such investment only if there existed specific authority in state statutes or decisions or in the governing

16


instrument, or if there existed binding mutual consent
from all beneficiaries. That instruction was generally
interpreted by national bank trust officers to preclude
investment in mutual fund shares unless specific state
legislation expressly permitted investment by fiduciaries
in mutual funds. General "prudent man" language in
many state statutes was thought insufficient to provide
the necessary statutory authorization. Because the
Comptroller concluded that the Office should not attempt to state the common law of trusts on this question
in every state, he revised Trust Banking Circular No. 4 on
September 29, 1976, to permit national bank trust officers, on advice of local counsel, to invest trust assets in
shares of mutual funds if that investment is expressly or
implicitly authorized by state law.
Charitable Trusts. Legal arrangements and institutional
mechanisms were developed to permit national banks
seeking to fulfill their charitable commitments and
maximize their tax benefits to establish 10-year charitable trusts under 12 USC 24(8) and 12 CFR 7.7445. Typically, a national bank would transfer U.S. government
securities to the trust as corpus for a 10-year and onemonth period. The bank's trust department would serve
as trustee and distribute all income generated by the
corpus to philanthropic organizations approved by
Internal Revenue Service. Following the expiration of the
trust term, the trust would terminate and the assets would
automatically revert to the settlor bank. Because the trust
assets would revert to the settlor bank after a fixed term,
the Comptroller considered such a temporary transfer of
assets to be a contribution for the use of a foundation, not
a contribution to a foundation under 12 CFR 7.7445(c);
otherwise, the contribution limitations of paragraph (c)
would effectively preclude the establishment of a trust
that could generate enough income to satisfy the needs
of the respective charitable organizations.
12 CFR Parts 4 and 5. Parts 4 and 5 were amended on
November 1, 1976, to clarify and consolidate the application procedures relating to the various activities subject to supervision of the Comptroller and to expand the
scope of the regulations to include additional activities
within the hearing procedures. Specifically, the amendments establish revised Office procedures for charters,
branches, conversions, mergers, fiduciary powers,
operating subsidiaries, title changes, relocations and
changes in capital structure.
Interpretive Ruling 7.6125. Section 56 of Title 12 of the
United States Code requires that bad debts, i.e., "statutory bad debts," must be deducted from "net profits then
on hand" in order to compute funds available for the
payment of dividends. Confusion regarding the precise
meaning of "bad debt" became evident when certain
overdue real estate loans were so classified although
long-term workout schedules had been arranged that
minimized the risk of loss to the respective banks. That
action created the possibility that some financially sound
institutions would be precluded from declaring and paying regular dividends. Accordingly, on December 14,
1976, the Comptroller proposed that Interpretive Ruling
7.6125 be amended to allow for greater flexibility in the
treatment of such problem credits. In that regard, the

proposed revision clarifies the meaning of "bad debts"
without changing the substantive provisions of the present interpretive ruling.
Interpretive Ruling 7.7479. On December 14, 1976, the
Comptroller proposed to amend this interpretive ruling in
order to permit a national bank to make charitable contributions based upon its income before taxes during the
preceding calendar half-year. The present ruling limits
the amount contributed by a national bank to that "which
is allowed by the Internal Revenue Service as a deduction from income." That proviso effectively limits charitable contributions to 5 percent of a national bank's taxable
income computed without regard to such items as
carrybacks for net operating losses or capital losses and
certain deductions. The limitation was originally designed to prevent management of closely held banks
from contributing excessive sums to charities in which
the bank's controlling stockholders have a personal
interest.
The Comptroller continues to believe that a limitation of
some kind is necessary, but he does not think that the
"taxable income" standard is the best method. For
example, the present limitation unreasonably restricts
banks that have low taxable income due to heavy
investment in tax exempt securities from making contributions. That problem can be resolved by tying the 5
percent limitation to income before taxes, rather than
taxable income.
Another problem created by the present ruling relates
to the difficulty of forecasting the permissible amount
that can be given to charity. Although contributions are
made throughout the calendar year, the net taxable
income may not be known until long after the year has
ended. Therefore, the Comptroller has proposed authorizing national banks to contribute up to 5 percent of
"income before income taxes and securities gains or
losses" registered during the immediately preceding
calendar half-year.
Mortgage Backed Securities. In June 1976, the Comptroller's Office approved a proposal by a commercial bank
to sell conventional, single-family real estate loans to a
trust which finances the purchase by selling mortgage-backed bonds in denominations of $100,000 or
more to institutional investors. With the Comptroller's approval, the plan was subsequently modified to eliminate
the trust and convert the security from a bond to a
passthrough instrument backed by a pool of mortgages.
The securities will be sold through an underwriting syndicate, and the proceeds will be used to make more
mortgage loans.
Credit Life Insurance. During 1976, the Law Department
participated in several efforts to curb the payment of
credit life insurance income to officers, directors and




controlling stockholders of national banks. The most significant effort was the publication of a proposed regulation declaring the practice an unsafe and unsound banking practice. Earlier in the year, the Law Department filed
an amicus brief in litigation brought by a minority
shareholder against a bank's directors who had diverted
all the income from credit life insurance sales to a corporation owned exclusively by them.

Enforcement
In 1976, the Comptroller's enforcement activities were
more intense than in any past year. Two administrative
hearings were convened, testing the validity of Notices
of Charges and seeking final Orders to Cease and Desist
pursuant to the Financial Institutions Supervisory Act, 12
USC 1818(b) etseq. These hearings were the first involving the Comptroller since passage of the Act in 1966.
Both hearings resulted in judgments by an administrative law judge sustaining the charges.
The first hearing involved a Notice of Charges alleging
substantial self-dealing and other "insider" abuses. A
final Order was issued which largely circumscribed the
ability of insider personnel to favor their own interests.
The second hearing involved excessive salaries and
bonuses to officers and directors alleged to constitute an
unsafe and unsound banking practice. In a judgment
sustaining the charges the administrative law judge recommended a final Order limiting salaries and bonuses
to amounts representing more normal industry levels
within the bank's peer group.
The Law Department initiated 33 formal actions
against national banks in 1976. Although those actions
covered all areas of bank operations from capital adequacy to violations of consumer laws, certain subjects
were dealt with more frequently than others. Of the 33
formal actions, 17 related to abusive self-dealing and
self-serving transactions by senior officers, directors
and principal shareholders. Provisions for increased
capital were made in 16 actions and the hiring of a new
executive officer was required in 13. The implementation
of new lending policies in writing was ordered in 12 actions.
Directives were also issued to national banks requiring, among other things, that they comply with consumer
protection regulations and properly book credit life
insurance proceeds. Several national banks were required to make reimbursement to borrowers who had received inaccurate or incomplete disclosures required by
theTruth-in-LendingAct, 15 USC 1601 etseq., and Federal Reserve Regulation Z.
Civil money penalties were twice assessed against national banks for failure to submit timely reports of condition pursuant to 12 USC 161. Directors were required to
reimburse the bank in the amount of the assessment.

17




VI. Fiduciary Activities of National Banks
During/1976,46 national banks applied for permission
to exercise fiduciary powers. Of them, 33 were approved. At year-end, 2,008 national banks had the authority to exercise trust powers.
Much of the activity of the Trust Operations Division
during the year had to do with the implementation of the
recommendations of the Haskin & Sells study. By yearend nearly all of those revisions had been completed.
New trust examination procedures were devised by a
task force of examiners early in the year. The procedures
were tested in a number of banks across the country during March and April by examiners who had not participated in the drafting process and who were from regions
other than those from which the members of the task
force had been drawn. In June, 70 trust examiners and
assistant trust examiners attended a workshop held in
Washington at which the use of the new procedures was
explained. Examiners that attended the workshop returned to their regions to train other trust personnel in the
revised procedures.
In October the new examination system was put into
effect. In each region the first examination was of a large
bank in which all task force members could participate to
finalize their training. A revised Handbook for National
Trust Examiners was issued at that time. The handbook
contains all instructions necessary for trust examiners
properly to carry out their responsibilities. It also includes
copies of all of the Office's rulings relating to trust ac-




tivities and copies of the revised questionnaires and
checklists utilized under the new procedures. Thus far,
experience with the new examination procedures has
been favorable.
During the year the registration of national bank transfer agents with this Office was completed, currently 947
national banks are registered. Discussions were held
with the other banking agencies and the SEC with reference to the formulation of proposed regulations relating
to turn-around time and safe handling of securities. In a
related activity the Office, together with the other banking agencies and the SEC, proposed regulations pertaining to the supervision of clearing agents. That proposal
was still pending at year-end.
Another regulatory proposal published for comment
during the year related to the question of the separation
of trust department investment decision makers from
other sources of non-public information regarding
publicly-traded securities which may exist in the bank.
Many comments were received about that proposal. It is
hoped that final regulations on this subject can be made
early next year.
This Office also proposed an amendment to Regulation 9 which would limit the amount which a corporation
can borrow from a national bank trust department by
means of a variable amount note to the bank's lending
limit. Many comments were received with reference to
this proposal, most of which were significantly adverse.

19




VII. International Banking and Finance
The effects of economic resurgency in the United
States, beginning in late 1975, extending into mid-1976,
pausing slightly, and then ascending through year-end,
stimulated similar direct and indirect positive economic
progress throughout the greater part of the industrialized
world. The developed nations continued to experience
varying degrees of inflation, unemployment and underutilization of industrial capacity. However, the degree of
their revival from the seemingly insurmountable problems of the preceding 3 years, especially those which
were oil-related, justifies characterizing 1976 as a year of
recovery. The stronger industrialized nations were able
to compensate satisfactorily for both the increasing consumption and price of oil; however, their weaker counterparts were forced to continue borrowing to finance
oil-originated payments deficits. The non-oil producing
developing nations again fared poorly, tormented by uninterrupted domestic recession, depressed commodity
prices and persistent oil-generated trade deficits. Those
deficits, collectively amounting to an estimated $32 billion during 1976, although reduced from $40 billion in
1975, still presented tremendous financing problems to
world money markets. The stronger, semi-developed nations generally were able to finance their needs through
private bank sources, sometimes with the assistance of
public authorities. However, the lesser developed countries were forced to rely more heavily on direct credit
from international institutions, grants-in-aid and private
credit guaranteed by official agencies. Nevertheless, reschedulings and technical defaults did occur in a few
isolated instances. Total non-oil producing, lesser
developed nations' outstanding external debt grew to an
estimated $180 billion by the end of the year. The year
ended on a note of uncertainty, as internal division within
OPEC surfaced in the form of a split among the members
over oil price increases. While the relatively small
increase by the two major producers was expected to
have little impact on the industrial nations, the fact that
there was another increase could have substantial effect
on the developing nations.
The world financial community, prompted by the payments imbalances caused by the continued OPEC
surpluses/non-oil developing countries deficits and
concerned by the prospects of such imbalances disturbing the financial markets, continued to voice the need for
establishing coordinated international payments mech-




anisms to cooperate in handling the recycling of OPEC
reserves. However, the world commercial banking system was again able to cope effectively with the problem.
The foreign exchange markets endured periods of both
rational and irrational rate fluctuations, with several major
currencies suffering either deep depreciation or substantial devaluation. Within the semi-floating exchange
rate system, stronger currency nations came to the aid of
several weaker currency nations, helping to support their
currencies during these crises.
During 1976, United States banks increased their
foreign lending by approximately $20 billion, with total
overseas exposure now estimated at $80 billion. However, the 1976 increase took the form of shorter-term
credits, a change from the medium and longer term
loans of past years. Bankers reassessed their own rapid
growth in lending overseas and, conversely, the rapid
growth of borrowing by many countries. Several major
private bank credits were linked to adoption of economic
stabilization programs by the borrowing countries, in
cooperation with official lenders. The international assets
of national banks were estimated to total over $150 billion
at the end of 1976. Those assets were divided primarily
among the national banks that operate foreign branches.
Those banks are located in all 14 national bank regions.
Foreign branches are now operated by about 100 national banks. During 1976, the number of foreign
branches of national banks showed an overall net decrease of 40, primarily because of the consolidation of
several branch systems into subsidiary banks that resulted from changes in host country laws. At year-end,
total assets of the 635 foreign branches of national banks
aggregated $135 billion, a 20 percent increase over the
$112 billion at the end of 1975. National banks also continued to hold investments in foreign financial
institutions, either directly or through their Edge Act subsidiaries.
Supervisory responsibility for the international activities of all national banks is delegated to the
International Operations Division of the Office of the
Comptroller of the Currency. Through a 6-man team of
examiners based in London and experienced examiners
selected from the 14 regions, the International Operations Division conducts examinations of the international
divisions, foreign branches and foreign affiliates of national banks. The examinations are especially tailored to

21

the organizational, geographical and reporting structure
of the bank under examination and include evaluation of
the quality of international loan and investment portfolios,
analysis of foreign exchange activities and reporting
procedures, accounting and bookkeeping systems and
adequacy of internal controls and audit programs. The
examinations are coordinated by the International Options Division and are conducted by examiners selected
from each region. At present there are approximately
150 national bank examiners who regularly conduct
examinations of international banking divisions within
their home regions. During 1976, continuing the established OCC policy of performing direct on-site examinations of major foreign offices of national banks, 215 national bank examiners travelled to 37 countries to conduct examinations of 145 foreign branches with assets
totalling $66 billion. The assets of the remaining
branches, including $22 billion in shell branches in the
Caribbean, were examined using records maintained at
the bank's head offices. Thirteen foreign electronic data
processing centers were also examined.
In conjunction with the OCC's program for development of comprehensive procedures for all phases of
bank examination, the International Operations Division
produced a series of policies and procedures specifically designed for examination of the international banking activities of national banks. Field testing of those new
procedures began in December. Training of
international examiners continued to receive major em-

phasis, as a total of 93 examiners participated in quarterly seminars on all phases of international banking
which were conducted by the International Operations
Division. Five national bank examiners attended the
School for International Banking which is sponsored by
the American Bankers Association. In addition, a bimonthly newsletter comprised of relevant media articles
was mailed to approximately 300 examiners, as well as
to the staffs of the Board of Governors, the Department of
the Treasury and members of Congress.
The uncertain and sensitive area of direct and indirect
lending by national banks to foreign governments, especially those in the developing world, continued to present a supervisory issue for the OCC. The accurate and
uniform assessment of the quality of such credits held in
the loan portfolios of national banks remained the task of
the OCC Foreign Public Sector Credit Review Committee, working in conjunction with the International Operations Division.
During 1976, the International Operations Division
continued to work closely with the staffs of Congress, the
FDIC, the Board of Governors, the Bankers Association
for Foreign Trade and foreign officials and bankers in
order to improve the quality and supervision of the National Banking System throughout the world by
strengthening both supervisory techniques and communications between the regulatory agencies, bankers
and foreign governments.

Table 11
Examinations of overseas branches, subsidiaries, and EDP centers of national banks, 1972-1976
Year

1972
1973
1974
1975
1976


22


Examinations
Branches and
subsidiaries
184
92
137
80
145

EDP centers
4
3
4
15
13

Banks

Countries

Examiners

16
22
23
23
25

24
28
26
25
37

58
59
96
153
215

VIII. Administration
The Administration Department facilitates the work of
the Comptroller's Office by providing supporting administrative services. Established in 1975 as Washington
Operations, it was reorganized in 1976 with the transfer
of the Research and Analysis and Systems and Data
Processing Divisions to the Deputy Comptroller for Economics. It is directed by the Deputy Comptroller for Administration and is comprised of three operating divisions — Bank Organization and Structure, Finance and
Administration and Personnel Management. Although a
Financial Accounting and Reporting unit is organizationally a division of Administration, it is not yet operational.
Its responsibilities are presently performed by other
units.

Bank Organization and Structure Division
The responsibility of processing applications for charters, branches, conversions, operating subsidiaries, title
changes and relocations was transferred to the regional
offices in 1976. Concomitant with that transfer is an expansion of the role of the regional offices in the decisional
process, particularly for branch applications. In 1975,
each regional office appointed a regional director for
corporate activities to assist the regional administrator in
meeting that expanded responsibility.
During 1976, policy statements intended to provide
the public and the banking industry with a better understanding of the basis for corporate decisions were issued (See pp. 274-282 in this report). Additionally, all
forms, instructions and internal processing procedures
were revised and will be continually scrutinized with a
view toward further improvement.
Although much responsibility for processing applications has been transferred to the regional offices, the Bank
Organization and Structure Division in Washington will
continue to have primary responsibility for processing
merger proposals and preparing substantive recommendations on mergers, new bank charters and debt
capital proposals.

Finance and Administration Division
This division includes two branches, Fiscal Management
and Administrative Operations, and is responsible for
ensuring the bureau's sound financial position, for performing its fiscal operations and for providing administrative services, including procurement and property
management.
During 1976, a budget program based on responsibility accounting principles was developed and im-




plemented. Each unit prepared an expense budget for
calendar year 1977, then submitted it to a Budget Review Committee assembled to make recommendations
to the Comptroller. On approving the committee's proposed budget, the Comptroller reaffirmed the premise of
responsibility accounting, that managers be responsible
for expenditures under their jurisdiction.
A computer-produced monthly budget evaluation report designed in 1976 will be operational in 1977. It will
compare actual versus budgeted expenditures by function. The system will identify areas where cost savings
may be effected and should increase managers' awareness of the need to control expenses.
Development of the computer-based fiscal information system in 1976 was a major step toward providing
more knowledge of bureau spending and promoting optimum utilization of financial and physical resources in
the future. A subsystem for property accounting will
maintain inventory on all capital expenditures, identifying them by acquisition date, cost, location and depreciated value.
The Fiscal Management Branch carried out a variety of
other activities in addition to assisting in development of
the budget program and the fiscal information system.
They are covered in "Financial Operations of the Office
of the Comptroller of the Currency" elsewhere in this report.
As a result of the recommendations in the Haskins &
Sells study, the Administrative Operations Branch has
been very involved with facilities management and
space reorganization both at the Washington headquarters and at the 14 regional offices. Regional offices in Atlanta, Chicago, Minneapolis and San Francisco were relocated in 1976. The Boston and Portland offices also enlarged their headquarters. Two additional subregional
offices were established.
During 1976, a Bicentennial exhibit produced by Administrative Operations on the history of banking and the
role of the OCC in bank regulation was displayed in
banks throughout the country. That branch also continued to provide procurement and to supply reference
assistance, printing and reproduction services to the
bureau.

Personnel Management Division
During 1976, the main objective of the Personnel Management Division was to simultaneously operate ongoing programs and entirely new Human Resources programs recommended by Haskins & Sells. The responsi-

23

bility for collecting information for new programs, studying their potential impact on operating branches and
personnel and preparing specific program details was
given to several task forces made up of national bank
examiners. The Employee Relations Branch participated
in the development of new programs and in the upgrading of existing ones. Manuals were prepared and distributed to managers describing each of the proposed
programs. By year-end, a formal request for approval of
the new Human Resources Division was forwarded to the
Secretary of the Treasury.
Employee performance was highlighted in 1976 with
the presentation of achievement awards and seven cash
awards for employee suggestions which were adopted.
Twelve OCC employees were honored at this year's
Treasury ceremony. Guidelines were formulated for
special achievement awards to be presented in 1977 to
examiners who served as regional discussion leaders in
the implementation of new bank examination procedures.
In Manpower Planning, efforts were concentrated on
identifying information essential in operating a longrange planning and budgeting system. Once identified,
that information will be used to design a computer-based
data system for manpower planning to coordinate the
planning and human resources functions. The program
relies upon maintenance of a comprehensive human resources information system (HRIS) and has as its goal
the assurance that the OCC will have the proper number
of people and skills available at all times.
A national recruitment program has been designed to
help the OCC compete effectively with the financial
community for talented people. The program calls for a
national director in Washington, D.C. and coordinators in
the regional offices. It includes professional recruitment
training for all OCC recruiters, and requires an aggressive college-university relations program to maintain
contacts with campus officials. An inter-regional referral
system will provide qualified candidates with an oppor-


24


tunity to express geographical preferences, while ensuring that OCC geographic needs are satisfied. Finally, in
conjunction with the manpower planning function, all recruitment activity will be monitored to determine the best
sources of potential employees and full compliance with
EEO guidelines.
In order to carry out its mission effectively and to ensure that all professional and technical employees
develop to their maximum potential, the OCC has
created a modern, comprehensive personnel development program which recognizes that development occurs through an accumulation of work experience. The
program emphasizes, however, that such development
can be enhanced and accelerated through formal programs of continuing education and career development.
The program encompasses a systematic, planned approach to provide well balanced education throughout
each employee's career. Seven education levels will be
coordinated with individual experience levels to be responsive to the mutual needs of the individual and the Office. A personnel development task force of national
bank examiners completed its extensive study of continuing education needs and designed a program which
encompasses many different courses to meet the long
range needs of our employees.
Technical education for examiners focuses on various
aspects of bank examination, and is tailored to the new
bank supervisory procedures the OCC is implementing.
Technical concepts will be presented early and more
complex practices and policies will be approached in
later career stages. Elective courses will provide specialization in such areas as international banking or
examination of computer systems. Management education will provide personnel with a thorough knowledge of
the skills needed to meet the increasing demands facing
professional managers. The total technical and management curriculum will provide our primary staff, approximately 2,500 bank examiners, with 17.4 weeks of
formal education during their first 10 years with the OCC.

IX. Consumer Affairs
The Consumer Affairs Division of the Comptroller of the
Currency was created in March 1974, before it was legislatively mandated, and became operational in September 1974. From that time, the division has been responsible for the enforcement of all consumer protection
laws applicable to national banks. The division has equal
status with other, long established divisions of the Comptroller's Office and participates similarly in overall policy planning. The Consumer Affairs Division conducts
specialized examinations of each national bank, on a
continuing basis, to enforce compliance with consumer
laws and regulations.
The Consumer Affairs Division performs several basic
functions:
• Counselling the Comptroller of the Currency on
all matters which affect consumers.
• Receiving consumer complaints and resolving
them.
• Coordinating, supervising and reviewing consumer examinations.
• Following up on and supervising corrective action in cases of noncompliance discovered during the consumer examination.
• Monitoring, updating, and improving consumer
examination procedures.
• Compiling of new and revised laws and regulations and disseminating them to banks and the
public.
• Monitoring the development of electronic funds
transfer systems.
In performing those functions, the division ensures compliance with consumer laws. The division's first concern
is the consumer, and that commitment is best served by
guaranteeing that national banks comply with consumer
laws and by informing consumers of their rights and remedies.
During 1976, the National Commission on Electronic
Fund Transfers (NCEFT) became active. Mr. Thomas W.
Taylor, Associate Deputy Comptroller and director of
this division, represents this Office on the Commission.
The Office has played a major role in supporting its activities. Many of the critical areas of concern in EFT have
been reviewed and several recommendations have
been made to Congress.
On April 16, 1976, the Office of the Comptroller of the
Currency issued guidelines containing policy statements on the development of electronic fund transfers




(EFT). Those guidelines on non-legal issues address
consumer concerns as well as security considerations
and are based on an extensive study of existing EFT
networks. The guidelines will be incorporated into
examination procedures and have been well received,
as evidenced by distribution of more than 16,000 copies
to banks, state supervisors, data processors, consumer
groups and other interested parties. Guidelines were
deemed more appropriate than regulations because
they do not restrict innovative developments in EFT;
however, they are meant to convey our regulatory concern about EFT.

Compliance
The Consumer Affairs Division's statutory obligation is
administered through the bank examination process and
by the review and resolution of consumer complaints.
The Comptroller has assigned a specially trained corps
of national bank examiners to conduct consumer compliance investigations. Over 6 percent of the field staff
has been allocated to the consumer area. Those
examiners are supported by regional consumer specialists in each national bank region. During 1976, the division conducted three 2-week schools that trained more
than 140 examiners in the new consumer examination
procedures. A second series of three schools is scheduled for March and April 1977, and a third series will take
place in the fall.
The schools stress examination techniques and rely
heavily on case studies to give experience in examining
for compliance. The procedures are tailored to spot
those problems that are most likely to harm consumers.
Particular emphasis is placed on evaluating policies and
practices to detect unlawful discrimination. Bank lending
policies are examined as are policies implementing consumer protection laws. Consumer examinations also
involve extensive interviews with bank lending officers to
assure that the bank adheres to its policy standards.
In 1976, the Consumer Affairs Division developed the
Comptroller's Handbook for Consumer Examinations.
The handbook is divided into thirteen sections each of
which relates to a specific law, regulation or banking activity. Each section, where applicable, is divided into four
areas of interest.
• Introduction—which details the major provisions
of the law, regulation, or activity being discussed.
This section is meant to apply the language of the
regulation to various banking operations.

25

• Examination Objectives — which contains a description of the goals that should be of primary
interest to the examiner.
• Examination Procedures — which represents the
"what to do" of the examination process. These
procedures explain the order in which the work
programs should be executed.
• Verification Procedures — which represent the
"how to do it" of the examination process.
The handbook has been shared with numerous other
regulatory agencies and copies have been distributed to
all examiners and all national banks.
The consumer report of examination has been developed and the division prepares comprehensive
checklists and work papers to examine for bank compliance with consumer protection laws. The results of the
examinations indicate that the specialized examination
is both justified and effective.
The consumer report of examination consists of five
sections:
• Compliance — details the area o f ' n o n compliance giving the appropriate citation;
• Internal control — summarizes deficiencies in the
bank's program and recommends that certain
programs be implemented;
• Corrective action—outlines the action taken or to
be taken by the bank to correct past noncompliance and assure future compliance;
• Discriminatory policies/practices — details
questionable activities which may be discriminatory; and
• Impact of noncompliance — estimates monetary
harm suffered by consumers because of noncompliance.
The consumer examination now covers the Equal
Credit Opportunity Act, Regulation B, the Home
Mortgage Disclosure Act, Regulation C; the Real Estate
Settlement Procedures Act, Regulation X; the Truth-inLending Act, Fair Credit Billing Act and Consumer Leasing Act, Regulation Z; the Fair Credit Reporting Act; the
Fair Housing Act; Regulation Q; and applicable state
laws.
When noncompliance is found during an examination,
corrective action begins during the examination and the
problem may be resolved immediately. If the issue cannot be resolved during the examination, it is referred to
the regional office. In a few instances, final resolution is
accomplished by the Washington Office.
There are two primary ways of correcting noncompliance. When noncompliance has not resulted in
monetary harm to the consumer, the bank is directed to
immediately correct its procedures and forms. When
customers have suffered monetary harm, such as
through a miscalculation of annual percentage rate, the
bank may be directed to reimburse affected customers
for the excess amounts charged. Banks are encouraged
to voluntarily reimburse the affected customers. When a
bank fails to adequately do so, the Office of the Comptroller of the Currency is empowered to commence formal
enforcement proceedings against the bank. The Office
has used cease and desist authority and has made refer
26


rals to the United States Department of Justice. During
1976, in connection with noncompliance with consumer
laws and regulations, six such administrative actions
were taken and several referrals were made to the United
States Department of Justice.
During 1976, the division began to develop a system
to tabulate perceived violations of law. The purpose in
developing that computer-based system is to give the
Office the ability to analyze trends in order to pinpoint
problem areas that need attention and to facilitate corrective action.
Noncompliance may also be noted through the consumer complaint process. Complaints against national
banks cover the full spectrum of consumer banking activities. Upon receipt of complaint, the OCC contact the
bank concerned by letter or, if necessary, by an
examiner's visit. Depending on what is discovered,
either the bank is asked to remedy its error or the complainant is informed that no basis has been found for the
complaint.
A Consumer Complaint Information System (CCIS)
became operational at the 14 regional offices in January
1976. The CCIS enables the division to catalog complaints on a nationwide basis and to determine which
banks have a disproportionate number of complaints
filed against them. The information available from this
system allows the Office to identify common consumer
problems. The information is also valuable in conducting
consumer examinations.

Legislation
During 1976, Congress enacted the Consumer Leasing
Act (15 USC 1667) and amended the Equal Credit Opportunity Act (15 USC 1691) and the Real Estate Settlement Procedures Act (12 USC 2601). The Federal Reserve Board was entrusted with the responsibility for
promulgating regulations to implement the Consumer
Leasing Act (Regulation Z) and the Equal Credit Opportunity Act (Regulation B). The Department of Housing
and Urban Development (HUD) was entrusted with the
responsibility of promulgating regulations to implement
the Real Estate Settlement Procedures Act (Regulation
X). This division participated in the regulation making
process by offering comments to the Board and to HUD.
We also incorporated those acts and regulations into our
handbook of consumer examination and verification
procedures.
Also, the Home Mortgage Disclosure Act (12 USC
2801), enacted in 1975, became effective June 28,1976,
and is implemented by the Board's Regulation C. We
have also included that regulation in our handbook of
consumer examination and verification procedures.
In addition, the division has the continuing responsibility for enforcing compliance with previously enacted
state and federal consumer protection laws as they
apply to national banks.
The Consumer Affairs Division maintains a legislative
log for each session of Congress. That log keeps the division and other departments of the Comptroller's Office
updated on all pending consumer legislation and, also,
on all proposed and promulgated rules of the various
regulatory agencies.

Liaison
The division maintains continuing liaison with federal
regulatory agencies, state banking departments, consumer interest groups and industry associations to ensure mutual assistance and an intercharge of ideas
about consumer protection in banking. The Federal Reserve has the responsibility for promulgating several
consumer protection regulations and this Office has
benefited from their invitations to comment on proposed
regulations and from their formal and informal
interpretations issued after the regulations have become
effective.
Members of the Division of Consumer Affairs of the
Board of Governors of the Federal Reserve System, the
Office of Bank Customer Affairs of the Federal Deposit
Insurance Corporation, and the Comptroller's Consumer
Affairs Division meet frequently to discuss mutual problems and concerns. Information is exchanged concerning consumer complaints and examination procedures.




The assistance of the Division of Consumer Affairs of the
Board of Governors of the Federal Reserve System was
valuable in the compilation of the Comptroller's Handbook for Consumer Examination and this division has
provided them with similar assistance in developing their
new examination program.
Consultations are held with the Federal Trade Commission, the Federal Home Loan Bank Board, the Department of Housing and Urban Development and the
Civil Rights Division of the Department of Justice. In December 1976, this Office signed an agreement with the
Civil Rights Division of the Department of Justice which
will permit members of the Civil Rights Division, as observers, to accompany national bank examiners to several national banks during an examination for compliance with the Fair Housing Act. The purpose of that
cooperation is so that examiners may be instructed in
techniques of detecting discriminatory practices.

27




X. Other Activities
Operations Review
Prior to 1976 OCC had no formal operation's review program and no individual or group had overall responsibility for the review, evaluation and monitoring of the quality
of the OCC's performance of its bank supervision and
regulation functions. In 1976, the importance of such a
program was realized and a Deputy Comptroller for Operations Review was named. It is his responsibility to
develop and maintain the program; he reports directly to
the Comptroller of the Currency.
The first review of operating procedures was conducted in 1976 and covered the commercial examination process. A review team of 56 members, four from
each of the 14 regions, was selected and members were
assigned to regions other than their own. A questionnaire
was utilized and each team filed a report following the review of selected examination working papers, reports
and correspondence files. The Washington staff prepared a consolidated report to the Comptroller.

Operations Planning
Operations planning is a continuous management process involving all executives, managers and supervisors
of all units of the Comptroller's Office, In 18-month overlapping cycles starting each July 1, they plan, coordinate, manage and control policy and operating decisions to meet current and future demands on national
bank supervision and regulation. As each cycle begins,
the senior management group sets policy objectives and
functional operating goals. The objectives and goals, together with assumptions pertaining to the ever-changing
economic, political, social and technological environments in which the Office and the banking industry operate, form the bases for result-oriented performance
targets and action programs set out in operational plans
adopted by each functional, staff and operating unit.
Those unit plans cover the upcoming year and 5 years
beyond. They are consolidated, under the direction of
the Deputy Comptroller for Operations Planning, into an
operating plan covering the same time span. The Deputy
Comptroller is responsible for the development and effective functioning of the planning process.
Throughout 1976, the Operations Planning Department conducted orientation programs for key executives
and managers in Washington and in the regions. Early in
the year, it conducted workshops for unit heads and
planning associates, during which the first broad out-




lines of the planning process evolved. By May, the department had developed an operations planning guide,
which was used by all units in an abridged planning cycle, primarily to learn the process. From experience
gained from that abridged cycle, the process and guide
were refined and modified. A full length cycle was begun
in July 1976. Policy objectives and operating goals were
set and furnished to each unit and, by year-end, the
planning process was fully operational, with unit plans
expected early in 1977.

Economic Research and Operational Analysis
In October 1976, the Research and Analysis Division,
Statistical Division and Systems and Data Processing
Division were reorganized as the Department of Economic Research and Operational Analysis, under the
administrative direction of the Deputy Comptroller for
Economics and the Associate Deputy Comptroller for
Economic Research and Operational Analysis. Although
that change necessitated a few revisions in division
titles, the staffs and operations of the divisions remained
largely unchanged.
Economic Research and Analysis. By year-end, the authorized staff of the Division was eight senior economists
including the director and deputy director, five financial
analysts/research assistants, an editor, and three secretaries. In addition, the Division included regional
economists in each of the 14 national bank regions. During the first full year that it was fully staffed, the division
produced substantial work for the agency and for the
advancement of knowledge in the field of economics.
Major research projects by the Washington staff
included the Fair Housing Lending Pilot Project, which is
being used to implement fair housing regulations and
also to determine the effects, if any, of "redlining." Other
projects related to market location and chartering practices, loan rates and risk, liquidity, minority banks, statutory lending limits and loan size, examiner manpower
planning and a detailed examination of the effect of financial institution reform in the state of Maire. Regional
economists also contributed to Office research as well
as performing their regional duties. Research by regional economists included studies of classified assets,
potential competition, international bank examination,
common trust funds and bank executive compensation.
In accordance with recommendations of Haskins &
Sells, the regional duties of the regional economists were

29

expanded to include economic planning and related
items.
Financial Reports and Statistics. This division has primary responsibility for collecting, editing and inputting
accurate and timely bank financial data for use by the Office of the Comptroller of the Currency and other banking
regulatory agencies in support of their regulatory function. The data bases thus established have important
strategic uses in administering early-warning and economic forecasting systems. Additionally, the division
functions as the official custodian for financial and statistical reports required from national banks including
those required under certain provisions of Title 12 of the
United States Code and the Code of Federal Regulations.
During 1976, the division reviewed and edited approximately 88,000 financial reports received in response to
the Comptroller's quarterly calls on over 4,700 national
banks. The division also responded to numerous calls
from banks seeking assistance in the preparation of the
various call report forms and special supplements. Over
1,800 Trust Department Annual Reports were received
and edited and over 800 Common Trust Fund Surveys
from banks and trust companies administering common
trust funds were processed.
The division is responsible for preparing various statistical tables and schedules for use in the Comptroller's
Annual Report and other interagency publications and
reports.
The disclosure unit of the Division of Financial Reports
and Statistics is the focal point for the release of quarterly
financial statements, reports on trust department security transactions and holdings, and various annual report
and proxy materials from national banks subject to the
disclosure rules of the Securities Act of 1934. That unit
responded to approximately 1,300 requests for copies of
bank reports from interested parties in both the public
and private sectors in 1976. Those requests resulted in
the production of over 196,000 pages of material.
Systems and Data Processing. During 1976, the major
activities of the Systems and Data Processing Division
were conducted toward fulfilling the requirements of the
bureau's three major information systems:
• The Regulatory Information System;
• The Fiscal Information System; and
• The Administrative Information System


30


The National Bank Surveillance System (NBSS), a
major component of the Regulatory Information System,
became fully operational during the year. Effort in that
area has resulted in the development of an error free national bank data base for each quarterly call within 45
calendar days of the report due date. On-going activities
involve expanding and refining the data base and providing system output to bureau users and national
banks.
Also in the regulatory area, an automated public disclosure system was developed and became operational. Basically, the system produces those reports on
national banks that are available to the public, on request. The Financial Reports and Statistics Division's
public disclosure unit receives a large number of requests from the public for copies of call report documents. The new automated system greatly reduces the
manual burden of responding to such requests by
computer-generating needed data in report format. Systems and Data Processing also designed a new, automated trust annual report processing system during
1976.
The Fiscal Information System, a computerized accounting system software package, was thoroughly
tested and selected to prepare for an early 1977 conversion from the current system to a new and advanced
processing system. The system will identify the operating cost of each organizational unit and compare
budgeted figures with actual expenditures through
periodic, computer-generated financial reports. Also in
that area, the bureau's semiannual assessment return
was redesigned as a computer-generated self mailer.
The automated Human Resources Information System
(HRIS) is being developed to meet the Office's need for
accurate and up-to-date information concerning the
employee work force. That system is a major component
of the Administrative Information System. The elements
of this data base focus on formal education, job experience, skills inventory and continuing education. Such
statistics will provide a valuable management tool for
manpower planning purposes, budgeting considerations and for monitoring progress in employee career
development. The HRIS task force, with members from
the human resources user area and from the division
staff, has developed the general system design and has
identified preliminary system requirements and management reporting needs.

XI. Financial Operations of the Office of the
Comptroller of the Currency
Total revenue of the Office of the Comptroller of the
Currency for 1976 was $82.8 million, an increase of 40.6
percent over 1975, compared to a 3.7 percent increase
in the previous year. Assessment receipts, which account for 92 percent of total revenue, amounted to $76.1
million, an increase of $24.4 million due principally to an
increase in rates. Revenue from trust examinations totaled $2,527,000, a decrease of $186,000. Revenue
from applications for new branches and mergers and
consolidations increased by $152,000 and $83,000, respectively. New bank charter fees declined $9,000.
Interest on investments decreased $450,000, a decline
of 15 percent, to a total of $2,547,000. The other revenue
categories remained at substantially the same levels as
in 1975.
Total expenses amounted to $80.4 million, compared
to $68.6 million for 1975, an increase of $11.8 million.
That represents a 17.1 percent increase in 1976, compared to the 23.6 percent increase for 1974 to 1975.
Salaries, personnel benefits and travel expenses
amounted to $66.3 million, or 82.5 percent of total expenses for the year. Those three expenses amounted to
$59.2 million in 1975. Salary increases were caused by a
full year under the government-wide general pay
increase of 5 percent, effective October 1975, and
another general pay increase of 4.8 percent effective
October 1976, and an increase in our examining staff
and support personnel. Travel expenses totaled $12.1
million, a rise of $1.6 million over 1975. That increase was




caused by higher per diem and mileage allowances, as
well as by the increase in the examining staff. The higher
per diem and mileage allowances were in line with
increases authorized for employees of all federal agencies.
The remaining expenses totaled $14.0 million, an
increase of $4.2 million over the previous year. The most
significant increases occurred in data processing, consultants and education. The greater data processing
and consulting costs result from implementation of the
procedures study recommendations and the continuation of programs implemented in 1975. The increase in
education results from the greater emphasis on that area
and from training examiners in the new examination
techniques adopted as a result of the procedures study.
Although the costs related to the procedures study have
been substantial, for the most part they represent nonrecurring costs and the results achieved have been well
worth the cost in terms of more effective bank supervision by the Comptroller of the Currency.
The equity account is in reality a reserve for contingencies. The financial operations of 1976 have
increased that reserve by the $2.5 million excess of revenue over expenses to $26.5 million at year-end. That
represents a 3.7-month reserve for operating expenses,
based on the level of expenses over the last three
months of 1976. The equity account has been administratively restricted in the amount of $2,330,000, as explained in Note 3 to the financial statements.

31

Table 12

COMPTROLLER OF THE CURRENCY
BALANCE SHEETS
December 31
1976
1975
ASSETS
Current assets:
Cash
Obligations of U.S. government, at amortized cost (approximates market value) (Note 1)
Accrued interest on investments
Accounts receivable
Travel advances
Prepaid expenses and other assets

$

167,876
15,619,372
410,908
506,308
589,041
317,227

$

603,266
6,001,948
470,838
341,737
580,857
225,378

17,610,732

Less accumulated depreciation and amortization

Total assets

19,091,952

2,719,323
934,731
4,394,285

2,446,058
803,942
3,913,197

8,048,339
1,517,084

7,163,197
1,063,666
6,099,531
$33,415,507

$ 2,065,099
193,881
2,759,575

$ 1,062,306
211,744
2,118,915

5,018,555

3,392,965

3,377,354
2,705,297

3,301,420
2,704,743

11,101,206

9,399,128

2,330,000
24,137,223

2,160,000
21,856,379

26,467,223

Fixed assets and leasehold improvements, at cost (Note 1):
Furniture and fixtures
Office machinery and equipment
Leasehold improvements

13,426,442

$37,568,429

Long-term obligations of U.S. government, at amortized cost (approximates market value) (Note 1).

8,224,024

6,531,255

Total current assets

24,016,379

$37,568,429

$33,415,507

LIABILITIES AND COMPTROLLER'S EQUITY
Current liabilities:
Accounts payable and accrued expenses
Taxes and other payroll deductions
Accrued travel and salaries
Total current liabilities
Long-term liabilities:
Accgmulated annual leave
Closed Receivership Funds (Note 2) .
Total liabilities
Comptroller's equity:
Administratively restricted (Note 2)
Unrestricted

Total liabilities and Comptroller's equity
See notes at end of tables.


32


Table 13

COMPTROLLER OF THE CURRENCY
STATEMENTS OF REVENUE, EXPENSES AND COMPTROLLER'S EQUITY
Year ended December 31

1976
Revenue (Note 1):
Semiannual assessments
Examinations and investigations
Investment income
Examination reports sold
Other

1975
$51,753,849
3,860,808
2,997,207
223,945
62,117

82,809,524
Expenses:
Salaries
Retirement and other employee benefits (Note 3)
Per diem
Travel
Rent and maintenance (Note 3)
Communications
Moving and shipping
Employee education and training
Data processing
Printing, reproduction and subscriptions
Office machine repairs and rentals
Depreciation and amortization
Supplies
Consulting services
Conferences
Remodeling
Other

$76,128,296
3,828,929
2,546,640
219,977
85,682

58,897,926

49,305,710
4,898,077
7,972,002
4,152,614
2,977,690
1,219,463
1,095,522
1,700,485
1,690,655
993,668
425,457
498J20
431,249
2,525,685
162,144
49,407
260,132

44,073,615
4,204,230
7,220,781
3,289,408
2,613,596
'859,509
640,901
1,152,363
'378,940
707,601
321 ^684
386J28
310,715
1,926,987
190,586
117,389
187,645

80,358,680
Excess (deficiency) of revenue over expenses
Comptroller's equity at beginning of year
Comptroller's equity at end of year

68,582,078

2,450,844
24,016,379

(9,684,152)
33,700,531

$26,467,223

$24,016,379

See notes at end of tables.




33

Table 14

COMPTROLLER OF THE CURRENCY
STATEMENTS OF CHANGES IN FINANCIAL POSITION
Year Ended December 31

1976
Financial resources were provided by:
Excess (deficiency) of revenue over expenses
Charges and (credits) not affecting working capital in the period:
Additions to accumulated annual leave
Depreciation and amortization
Amortization of premium and accretion of discount on long-term U.S. government obligations, net
Net loss on sale of fixed assets

1975

$2,450,844

$(9,684,152)

Total
Financial resources were used for:
Purchase of leasehold improvements
Purchase of fixed assets
Payment of accrued leave

629,131
386,128

(16,872)
207

(21,010)
2,338

3,324,013
5,682,382
8,448
554

(8,687,565)
7,998,719
2,525
(2,189)

9,015,397

Working capital provided by (used for) operations for the period
Long-term U.S. government obligations transferred to current assets
Proceeds from sale of fixed assets
Net closed receivership fund receipts (disbursements)

391,114
498,720

(688,510)

Increase (decrease) in working capital

1,257,949
1,017,895
244,871

1,254,279

Total

481,088
458,011
315,180

2,520,715

$7,761,118

$(3,209,225)

$ (435,390)
9,617,424
(59,930)
164,571
8,184
91,849

$

Analysis of Changes in Working Capital

Increase (decrease) in current assets:
Cash
Obligations of U.S. government
Accrued interest
Accounts receivable
Travel advances
Prepaid expenses and other assets

9,386,708
(Increase) decrease in current liabilities:
Accounts payable and other accruals
Taxes and other payroll deductions
Accrued travel and salaries

482,029
(2,968,698)
(228,521)
89,494
43,972
26,826
(2,554,898)

See notes on next page.


34


(138,448)
(33,094)
(482,785)

(1,625,590)
Increase (decrease) in working capital

(1,002,793)
17,863
(640,660)

(654,327)

$7,761,118

$(3,209,225)

Notes to Financial Statements
December 3 1 , 1976 and 1975
Note 1—Organization and Accounting Policies
The Comptroller of the Currency (Comptroller's Office) was created
by an Act of Congress for the purpose of establishing and regulating a
National Banking System. The National Currency Act of 1863, rewritten
and re-enacted as The National Banking Act of 1864, created the
Comptroller's Office, provided for its supervisory functions and the
chartering of banks. The revenue of the Comptroller's Office is derived
principally from assessments and fees paid by the national banks and
interest on investments in U.S. government obligations. Assessments
paid by national banks are not construed to be government funds. No
funds derived from taxes or federal appropriations are allocated to or
used by the Comptroller's Office in any of its operations. The Comptroller's Office is exempt from federal income taxes.
The accounts of the Comptroller's Office are maintained on the accrual basis. Furniture, fixtures, office machinery and equipment are
depreciated on the straight-line basis principally over estimated useful
lives of 10 years. Leasehold improvements are amortized over the
terms of the related leases (including renewal options) or the estimated
useful lives, whichever is shorter. Premiums and discounts on
investments in U.S. government obligations are amortized or accreted
ratably over the terms of the obligations. U.S. government obligations
having a maturity date more than 12 months from the date of the financial statements are classified as long-term investments.
Note 2—Closed Receivership Funds
Prior to the assumption of closed national bank receivership functions by the Federal Deposit Insurance Corporation in 1936, the Comptroller of the Currency appointed individual receivers for all closed national banks. After settling the affairs of the closed banks and issuing
final distributions to the creditors of the banks (principally depositors),
the receivers transferred to the custody of the Comptroller's Office all
remaining funds which represented distributions which were undeliverable or had not been presented for payment. Closed Receivership
Funds in the accompanying balance sheets represent the potential
claims for such funds by the original creditors of the receiverships.
Since inception of the receivership function, unclaimed funds have
been invested in U.S. government securities. The income from
investments has been applied as an offset to expenses incurred by the
Comptroller's Office in performing this function and accordingly has
been recorded as revenue in the statements of revenue, expenses and
Comptroller's equity. Through December 31, 1976, income has exceeded direct expenses by approximately $2,330,000 (including
$170,000 and $160,000 in 1976 and 1975, respectively), which excess
amount is included in the Comptroller's equity. An analysis of allocable
indirect expenses has not been made.
In its reexamination of the legal status of Closed Receivership
Funds and related excess income earned thereon, the Comptroller's

legal staff has been unable to locate any definitive statutory or case law
which specifies the ultimate disposition of such funds. In the absence
of legal precedent, the legal staff is unable to currently give a definitive
opinion as to the appropriate disposition of either the unclaimed receivership funds or the excess income from investment of such funds.
The Comptroller is in the process of seeking legislative resolution of
these matters.
Pending a resolution of the legal uncertainties and legislative action
surrounding these funds, the Comptroller's Office has included a liability for Closed Receivership Funds in its balance sheets and recognized
income from investment of such funds as revenue in its statements of
revenue, expenses and Comptroller's equity. In recognition of these
uncertainties, the Comptroller has administratively restricted a portion
of the Comptroller's equity in an amount that approximates the excess
income earned from investment of Closed Receivership Funds since
custody of the funds commenced.
Note 3—Commitment and Contingencies
Regional and sub-regional offices lease office space under
agreements which expire at varying dates through 1990. Minimum
rental commitments under 100 leases in effect at December 31, 1976
aggregate approximately $1,365,000 for 1977 and varying lesser
amounts each year thereafter, to approximately $938,000 for 1981,
$3,005,000 for the period 1982-1986, and $499,000 for the period
1987-1990. In addition, the Comptroller's Office occupies office space
in Washington, D.C., under a lease agreement which provided for an
initial 5-year term with five consecutive 5-year renewal options. The
Comptroller's Office has exercised two of its options through 1989.
Rent is at an annual rate of $1,660,000. Certain of the leases provide
that annual rentals may be adjusted to provide for increases in taxes
and other related expenses.
The Comptroller's Office contributes to the Civil Service retirement
plan for the benefit of all its eligible employees. Contributions aggregated $3,381,600 and $3,000,900 in 1976 and 1975, respectively. The
plan is participatory, with 7 percent of salary being contributed by each
party.
The accompanying balance sheets include a liability for annual
leave, accumulated within specified limits, which if not taken by employees prior to retirement is paid at that date.
Various banks in the District of Columbia have deposited securities
with the Comptroller's Office as collateral for those banks entering into
and administering trust activities. These securities, having a par or
stated value of $12,593,000 are not assets of the Comptroller's Office
and accordingly are not included in the accompanying financial statements.
The Comptroller's Office is a defendant, together with other bank
supervisory agencies and other persons, in litigation generally related
to the closing of certain national banks. In the opinion of the Comptroller's legal staff, the Comptroller's Office will'be able to defend successfully against these complaints and no liability is expected to result
therefrom.

OPINION OF INDEPENDENT ACCOUNTANT
To the Comptroller of the Currency
In our opinion, the accompanying balance sheets, the related statements of revenue, expenses and Comptroller's
equity and of changes in financial position present fairly the financial position of the Comptroller of the Currency at
December 31,1976 and 1975, and the results of its operations and the changes in its financial position for the years then
ended, in conformity with generally accepted accounting principles consistently applied. Our examinations of these
statements were made in accordance with generally accepted auditing standards and accordingly included such tests
of the accounting records and such other auditing procedures as we considered necessary in the circumstances,
including confirmation of securities owned at December 31,1976 and 1975, by correspondence with the custodians.
Price Waterhouse & Co.

Washington, D.C.
April 29, 1977.




35







APPENDIX A

Merger Decisions, 1976




Merger* Decisions, 1976
/. Mergers consummated, involving two or more operating banks
Jan. 2, 1976:
Page
Citibank (Western), National Association, Buffalo, N.Y.
Citibank (Eastern), National Association, Castleton-onHudson, N.Y.
Citibank (Central), National Association, Oriskany Falls,
N.Y.
Citibank (Mid-Western), National Association, Honeoye
Falls, N.Y.
Merger
43
Jan. 2, 1976:
First National City Bank, New York City, N.Y.
Citibank (Suffolk), National Association, Islip, N.Y.
Citibank (Mid-Hudson), National Association, Woodbury,
N.Y.
Merger
43
Jan. 2, 1976:
National City Bank, Cleveland, Ohio
The Bank of Cleveland, Cleveland, Ohio
Merger
44
Jan. 10, 1976:
First National State Bank of New Jersey, Newark, N.J.
The Bank of Bloomfield, Bloomfield, N.J.
Purchase
45
Jan. 15, 1976:
Southeast First National Bank of Sarasota, Sarasota, Fla.
Palmer First National Bank and Trust Company of Sarasota,
Sarasota, Fla.
Purchase
46
Jan. 31, 1976:
Bank of Virginia N.A., Vinton, Va.
Bank of Virginia—Danville, Danville, Va.
Merger
.. 48
Jan. 31, 1976:
Bank of Virginia N.A., Vinton, Va.
Bank of Virginia—Lynchburg, Lynchburg, Va.
Merger
48
Feb. 3, 1976:
Old Colony Bank of Hampden County, N.A., Holyoke,
Mass.
Heritage Bank and Trust Company, Westfield, Mass.
Merger
49
Feb. 6, 1976:
First National State Bank/Mechanics, Burlington Township,
N.J.
Somerset Hills & County National Bank, Basking Ridge,
N.J.
Merger
50
Feb. 16, 1976:
First Tennessee National Bank, Chattanooga, Tenn.
The Hamilton National Bank of Chattanooga, Chattanooga,
Tenn.
Purchase
50
Feb. 17, 1976:
United National Bank, Rapid City, S. Dak.
Union Bank & Trust, Sioux Falls, S. Dak.
Consolidation
51
Mar. 1, 1976:
South Loop National Bank, Houston, Tex.
South Texas Bank, Houston, Tex.
Purchase
52
Mar. 5, 1976:
Old National Bank of Washington, Spokane, Wash.
Bank of the West, Bellevue, Wash.
Purchase
53




Mar. 5, 1976:
Page
The Farmers National Bank of Annapolis, Annapolis, Md.
The Millington Bank of Maryland, Millington, Md.
Merger
54
Mar. 9, 1976:
The First National Bank of Huntsville, Huntsville, Ark.
The Valley Bank, Hindsville, Ark.
Purchase
55
Mar. 15, 1976:
United National Bank, Castlewood, S. Dak.
First State Bank, Lake Norden, S. Dak.
Merger
56
Mar. 15, 1976:
Virginia National Bank, Norfolk, Va.
North American Bank and Trust, Leesburg, Va.
Merger
57
Mar. 17, 1976:
Peoples Bank of Mississippi, National Association, Union,
Miss.
Clinton National Bank, Clinton, Miss.
Merger
..
58
Mar. 20, 1976:
Puget Sound National Bank, Tacoma, Wash.
Continental Bank, Burien, Wash.
Purchase
59
Mar. 26, 1976:
The Edison Bank, National Association, South Plainfield,
N.J.
First National State Bank of the Jersey Coast, Spring Lake,
N.J.
Merger
60
Mar. 31, 1976:
Euclid National Bank, Euclid, Ohio
The Continental Bank, Cleveland, Ohio
Purchase
61
Mar. 31, 1976:
The First National Bank of Allentown, Allentown, Pa.
The Kutztown National Bank, Kutztown, Pa.
Merger
62
Apr. 1, 1976:
The New Farmers National Bank of Glasgow, Glasgow, Ky.
Hiseville Deposit Bank, Hiseville, Ky.
Merger
63
Apr. 10, 1976:
Greenville National Bank, Greenville, Ohio
The Citizens Bank Company, Ansonia, Ohio
Purchase
64
Apr. 19, 1976:
Landmark Bank of Pompano Beach, N.A., Pompano
Beach, Fla.
The Security State Bank of Pompano Beach, Pompano
Beach, Fla.
Purchase
65
Apr. 30, 1976:
The First National Bank of Greenville, Greenville, Ala.
The Citizens Bank of Georgiana, Georgiana, Ala.
Merger
66
May 1, 1976:
The Huntington National Bank of Columbus, Columbus,
Ohio
The Pickerington Bank, Pickerington, Ohio
Merger
67
May 3, 1976:
The First National Bank of Stone Harbor, Stone Harbor, N.J.
Independent National Bank, Willingboro, N.J.
Merger
68

39

May 21, 1976:
Page
The Chase Manhattan Bank (National Association), New
York, N.Y.
Chase Manhattan Bank of Long Island (National Association), Melville, N.Y.
Chase Manhattan Bank of the Mid-Hudson (National Association), Saugerties, N.Y.
Chase Manhattan Bank of Central New York (National Association), Syracuse, N.Y.
Chase Manhattan Bank of Eastern New York (National Association), Albany, N.Y.
Chase Manhattan Bank of the Southern Tier (National Association), Binghamton, N.Y.
Chase Manhattan Bank of Greater Rochester (National Association), Caledonia, N.Y.
Chase Manhattan Bank of Western New York (National Association), Buffalo, N.Y.
Chase Manhattan Bank of Northern New York (National Association), Canton, N.Y.
Merger
70
June 1, 1976:
The Citizens National Bank in Gastonia, Gastonia, N.C.
Union Trust Company of Shelby, Shelby, N.C.
Merger
71
June 8, 1976:
First City Bank—Northeast, N.A., Houston, Tex.
Northeast Bank of Houston, Houston, Tex.
Purchase
72
June 11, 1976:
Valley National Bank, Passaic, N.J.
Bank of Wayne, National Association, Wayne, N.J.
Merger
73
June 15, 1976:
New Jersey Bank (National Association), Clifton, N.J.
First State Bank of Hudson County, Jersey City, N.J.
Purchase
74
June 18, 1976:
First Bank National Association, Cleveland, Ohio
Community National Bank of Warrensville Heights, Warrensville Heights, Ohio
Purchase
75
June 28, 1976:
Wells Fargo Bank, National Association, San Francisco,
Calif.
The Topanga Plaza Branch of City National Bank, Beverly
Hills, Calif.
Purchase
76
June 30, 1976:
First National Bank of Springfield, Springfield, Vt.
The Merchants National Bank of St. Johnsbury, St.
Johnsbury, Vt.
Merger
77
June 30, 1976:
Beach Haven National Bank and Trust Company, Beach
Haven, N.J.
The Bank of New Jersey, N.A., Moorestown, N.J.
Merger
78
July 1, 1976:
The National Bank of Georgia, Atlanta, Ga.
Mercantile National Bank, Atlanta, Ga.
Purchase
79
July 12, 1976:
The Planters National Bank and Trust Company, Rocky
Mount, N.C.
Hanover Bank, Wilmington, N.C.
Merger
80
July 20, 1976:
The Oneida National and Trust Company of Central New
York, Utica, N.Y.
The Red Creek National Bank, Red Creek, N.Y.
81
Purchase


40


Aug. 24, 1976:
Page
Seattle—First National Bank, Seattle, Wash.
First National Bank in Port Angeles, Port Angeles, Wash.
The First American National Bank of Port Townsend, Port
Townsend, Wash.
Bank of Sequim, Sequim, Wash.
Forks State Bank, Forks, Wash.
Purchase
82
Aug. 31, 1976:
The First New Haven National Bank, New Haven, Conn.
The North Haven National Bank, North Haven, Conn.
Merger
86
Sept. 15, 1976:
United States National Bank in Johnstown, Johnstown, Pa.
The First National Bank of Coalport, Coalport, Pa.
Merger
88
Sept. 20, 1976:
First National Bank, Carbondale, Pennsylvania, Carbondale, Pa.
The First National Bank of Dickson City, Dickson City, Pa.
Merger
89
Sept. 30, 1976:
Fl National Bank, Ironton, Ohio
The First National Bank of Ironton, Ironton, Ohio
Purchase
90
Sept. 30, 1976:
FT National Bank, Troy, Ohio
The First National Bank & Trust Company, Troy, Ohio
Purchase
91
Oct. 1, 1976:
Canal National Bank, Portland, Me.
Central National Bank, Waterville, Me.
Merger
91
Oct. 1, 1976:
The Citizens National Bank of Evansville, Evansville, Ind.
The Lamasco Bank, Evansville, Ind.
Merger
92
Oct. 8, 1976:
The National Bank of Georgia, Atlanta, Ga.
The Hamilton Bank and Trust, Atlanta, Ga.
Purchase
94
Oct. 18, 1976:
New Jersey Bank (National Association), Clifton, N.J.
Plaza National Bank, Secaucus, N.J.
Merger
95
Nov. 1, 1976:
The Cumberland National Bank of Bridgeton, Bridgeton,
N.J.
United Jersey Bank/City National, Vineland, N.J.
Merger
95
Nov. 12, 1976:
Virginia National Bank, Norfolk, Va.
Fairfax County National Bank, Seven Corners, Va.
Merger
96
Nov. 19, 1976:
The Oneida National Bank and Trust Company of Central
New York, Utica, N.Y.
Ogdensburg Trust Company, Ogdensburg, N.Y.
Merger
98
Nov. 29, 1976:
First National Bank of Rio Grande City, Rio Grande City,
Tex.
First State Bank & Trust Company, Rio Grande City, Tex.
Purchase
99
Dec. 1, 1976:
American National Bank, Hamden, Conn.
Laurel Bank and Trust Company, Meriden, Conn.
Merger
100
Dec. 1, 1976:
The First National Bank and Trust Company of Western
Maryland, Cumberland, Md.
The First National Bank of Mount Savage, Mount Savage,
Md.
Merger
101

Dec. 17, 1976:
Page
New Jersey National Bank, Trenton, NJ.
First State Bank, Toms River, N.J.
Purchase
102
Dec. 28, 1976:
Citizens First National Bank of New Jersey, Ridgewood,
N.J.
The State Bank of North Jersey, Pine Brook, N.J.
Purchase
103
Dec. 31, 1976:
First National Bank of Jackson, Jackson, Miss.
Columbia Bank, Columbia, Miss.
Merger
104

Dec. 31, 1976:
Page
First Peoples National Bank of New Jersey, Haddon Township (P.O. Westmont), N.J.
The Provident Bank of New Jersey, Willingboro, N.J.
Purchase
105
Dec. 31, 1976:
Midlantic National Bank, Newark, N.J.
Midlantic National Bank/West, Morristown, N.J.
Merger
107
Dec. 31, 1976:
Union Chelsea National Bank, New York, N.Y.
Chelsea National Bank, New York, N.Y.
Purchase
108

//. Mergers consummated, involving a single operating bank
Jan. 5, 1976:
Page
Gateway National Bank of Fort Worth, Fort Worth, Tex.
Circle National Bank of Fort Worth, Fort Worth, Tex.
Merger
109
Mar. 11, 1976:
Commercial National Bank, Cassopolis, Mich.
C National Bank, Cassopolis, Mich.
Merger
110
Mar. 31, 1976:
American Security and Trust Company, National Association, Washington, D.C.
American Security and Trust Company, Washington, D.C.
Merger
111
Apr. 16, 1976:
The First National Bank of New Braunfels, New Braunfels,
Tex.
New Braunfels Commerce Bank National Association, New
Braunfels, Tex.
Merger
111
Apr. 29, 1976:
The Geuga County National Bank of Chardon, Chardon,
Ohio
The G.C. National Bank, Chardon, Ohio
Merger
112
June 16, 1976:
The First National Bank of San Jose, San Jose, Calif.
F.N. National Bank, San Jose, Calif.
Merger
113
July 1, 1976:
The First National Bank of Troutville, Troutville, Va.
Troutville Bank, N.A., Troutville, Va.
Merger
113

Aug. 16, 1976:
Page
The First National Bank of Elyria, Elyria, Ohio
FNB National Bank, Elyria, Ohio
Consolidation
114
Oct. 1, 1976:
The First National Bank of Henderson, Henderson, Tex.
South Main & Richardson National Bank, Henderson, Tex.
Merger
115
Dec. 3, 1976:
The National Bank of Ludington, Ludington, Mich.
NBL National Bank, Ludington, Mich.
Consolidation
115
Dec. 31, 1976:
Alamo Heights National Bank, Alamo Heights, Tex.
Heights Bank, National Association, Alamo Heights, Tex.
Merger
H6
Dec. 31, 1976:
First National Bank of Freeport, Freeport, III.
First Freeport Bank, National Association, Freeport, III.
Merger
117
Dec. 31, 1976:
The Chester National Bank, Chester, N.Y.
Chester Bank, N.A., Chester, N.Y.
. Merger
117
Dec. 31, 1976:
The Illinois National Bank of Springfield, Springfield, III.
INB National Bank, Springfield, III.
Merger
118
Dec. 31, 1976:
Williamstown National Bank, Williamstown, Mass.
Williamstown Bank (National Association), Williamstown,
Mass.
Merger
118

///. Mergers approved but abandoned, no litigation
Jan. 14, 1976:
Southeast First National Bank of Sarasota, Sarasota, Fla.
Palmer First National Bank and Trust Company of Sarasota,
Sarasota, Fla.
Merger ..




Page

119

July 20, 1976:
Page
The First National Bank of Maryland, Baltimore, Md.
The Citizens National Bank of Havre de Grace, Havre de
Grace, Md.
Merger
119

41




/. Mergers consummated, involving two or more operating banks.
CITIBANK (WESTERN), NATIONAL ASSOCIATION,
Buffalo, N.Y., and Citibank (Eastern), National Association, Castleton-on-Hudson, N.Y., and Citibank (Central), National Association, Oriskany Falls, N.Y., and Citibank (Mid-Western), National Association, Honeoye Falls, N.Y.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
Citibank (Eastern), National Association, Castleton-on-Hudson, N.Y. (5816), with
and Citibank (Central), National Association, Oriskany Falls, N.Y. (16089), with
and Citibank (Mid-Western), National Association, Honeoye Falls, N.Y. (15976), with
and Citibank (Western), National Association, Buffalo, N.Y. (10258), which had
merged Jan. 2, 1976, under charter of the latter bank (10258), and title "Citibank (New
York State), National Association." The merged bank at date of merger had

COMPTROLLER'S DECISION
On October 21, 1975, Citibank (Eastern), National Association, Castleton-on-Hudson, N.Y.; Citibank (Central), National Association, Oriskany Falls, N.Y.;
Citibank (Mid-Western), National Association, Honeoye
Falls, N.Y.; and Citibank (Western), National Association, Buffalo, N.Y., applied to the Comptroller of the
Currency for permission to merge under the charter of
the latter and with the title "Citibank (New York State),
National Association."
The proposed merger represents a corporate reorganization which would merely combine four existing

$ 36,362,000
34,903,000
41,321,000
46,650,000

9
5
10
12
36

159,236,000

subsidiary banks of Citicorp into a single institution that
will continue under the ownership of Citicorp. The resulting bank will continue to operate all existing offices
of the charter and merging banks.
Applying the statutory criteria, it is concluded that
the proposed merger is mereiy part of an internal corporate reorganization which will not adversely affect
competition in New York State. This application is,
therefore, approved.
December 1, 1975.
Note: No Attorney General's report was received.

FIRST NATIONAL CITY BANK,
New York City, N.Y., and Citibank (Suffolk), National Association, Islip, N.Y., and Citibank (Mid-Hudson), National
Association, Woodbury, N.Y.
Name of bank and type of transaction

Total assets

Banking offices
In
To be
operation operated

Citibank (Suffolk), National Association, Islip, N.Y. (15917), with
and Citibank (Mid-Hudson), National Association, Woodbury, N.Y. (P. O. Central Valley) (9990), with
and First National City Bank, New York, N.Y. (1461), which had
merged Jan. 2, 1976, under charter and title of the latter bank (1461). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On October 21, 1975, Citibank (Suffolk), National Association, Islip, N.Y.; Citibank (Mid-Hudson), National
Association, Woodbury, N.Y.; and First National City
Bank, New York, N.Y., applied to the Comptroller of the
Currency for permission to merge under the charter
and title of the latter.
The proposed merger represents a corporate reorganization which would merely combine three existing
subsidiary banks of Citicorp into a single institution that




$

47,012,000

5

33,101,000
26,732,196,000

10
251

28,812,309,000

266

will continue under the ownership of Citicorp. The resulting bank will continue to operate all existing offices
of the charter and merging banks.
Applying the statutory criteria, it is concluded that
the proposed transaction is merely part of a corporate
reorganization which will not adversely affect competition. This application is, therefore, approved.
December 1, 1975.
Note: No Attorney General's report was received.

43

NATIONAL CITY BANK,
Cleveland, Ohio, and The Bank of Cleveland, Cleveland, Ohio
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
The Bank of Cleveland, Cleveland, Ohio, with
and National City Bank, Cleveland, Ohio (786), which had
merged Jan. 2, 1976, under charter and title of the latter bank (786). The merged bank at
date of merger had

COMPTROLLER'S DECISION
On September 2, 1975, The Bank of Cleveland, Cleveland, Ohio, and National City Bank, Cleveland, Ohio,
applied to the Comptroller of the Currency for permission to merge under the charter and with the title of National City Bank.
National City Bank, the charter bank, was established in 1845 and currently has assets of $2.7 billion
and IPC deposits of $1.3 billion. National City Bank is
the lead bank for the state's third largest multi-bank
holding company, National City Corporation. Although
the charter bank is headquartered in Cleveland, its
service area includes all of Cuyahoga County where it
operates 45 branches. Cuyahoga County, with an estimated population of 1.7 million persons, is highly
industrialized and is an important commercial, transportation and service center.
National City Bank is the second largest bank in its
service alrea where direct competition is provided by
numerous banks located in Cleveland, including The
Cleveland Trust Company, with deposits of $2.9 billion,
a member of CleveTrust Corporation; The Capital National Bank, with deposits of $117.4 million, a member
of BancOhio Corporation; Central National Bank of
Cleveland, with deposits of $1.4 billion, a member of
Centran Corporation; Society National Bank of Cleveland, with deposits of $1 billion, a member of Society
Corporation; and Union Commerce Bank, with deposits of $1.2 billion, a member of Union Commerce
Corporation.
The Bank of Cleveland, the merging bank, was established in 1913 and now has assets of $28.8 million
and IPC deposits of $24.5 million. The merging bank
has one branch office in addition to its main office and
is the 12th largest of the 13 banks in Cuyahoga
County. The service area of the merging bank consists
of several ethnic neighborhoods located in central
Cuyahoga County. The Bank of Cleveland is a retailoriented bank whose operations are entirely local in
nature. The merging bank, which has few business
customers, relies primarily upon small personal check-




$

30,546,000
2,569,103,000
2,592,844,000

2
47

49

ing and savings accounts for its deposits, and thus
competes with nearby savings and loan associations
and credit unions. There is minimal competition between the charter bank and The Bank of Cleveland
because of the different nature of their banking operations. The charter bank has one small branch office
within the service area of the merging bank. However,
there are numerous banking alternatives in the merging bank's service area because each of the large
banks which compete with the charter bank has a
branch office within the area.
Consummation of the proposed transaction will not
significantly increase National City Bank's position relative to other banks in its service area. The resulting
bank will remain the second largest in the county. The
proposed transaction should benefit the customers of
the merging bank because the resulting bank will offer
over 40 banking services not presently available at the
merging bank. The charter bank plans to reduce fees
for many of the services now offered by merging bank.
The charter bank will benefit from the proposed transaction by gaining an office in Garfield Heights, a suburb with considerable commercial market potential.
Applying the statutory criteria, it is concluded that
the proposed merger will only slightly lessen competition in the relevant market and this application is,
therefore, approved.
November 26, 1975.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Bank's main office in Cleveland is located about six
blocks from Applicant's nearest branch. All 46 of Applicant's offices and both of Bank's offices are located
in Cuyahoga County. Applicant is the second largest
of 13 banks with offices in Cuyahoga County, while
Bank ranks 11th.
We conclude that the proposed transaction would
eliminate some existing competition between the parties and slightly increase concentration in commercial
banking in Cuyahoga County.

FIRST NATIONAL STATE BANK OF NEW JERSEY,
Newark, N.J., and The Bank of Bloomfield, Bloomfield, N.J.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
The Bank of Bloomfield, Bloomfield, N.J., with
was purchased Jan. 10, 1976, by First National State Bank of New Jersey, Newark, N.J.
(1452), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On January 10, 1976, application was made to the
Comptroller of the Currency for prior written approval
for First National State Bank of New Jersey, Newark,
N.J. ("Assuming Bank") to purchase certain of the assets and assume certain of the liabilities of The Bank of
Bloomfield, Bloomfield, N.J. ("Bloomfield").
As of the close of business on January 10, 1976,
Bloomfield was a state bank with three offices and one
approved but unopened office, all located in Bloomfield, N.J. As of January 7, 1976, Bloomfield had deposits of $26 million. On January 10, 1976, the Federal
Deposit Insurance Corporation ("FDIC") was appointed as receiver of Bloomfield. The present application is based upon an agreement, which is
incorporated herein by reference, by which the FDIC
as receiver has agreed to sell certain Bloomfield assets and liabilities to the Assuming Bank. For the
reasons stated hereafter, the Assuming Bank's application is approved, and the purchase and assumption
transaction may be consummated immediately.
Bloomfield was organized in 1963 and, as of January
7, 1976, had total assets of approximately $31.5 million.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds those anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution and the convenience and needs of the
community to be served. When necessary, however, to
prevent the disruptions attendant upon the failure of a
* Asset figures are as of call dates immediately before and after
transaction.




$32,501,959

3

1,358,706,000
1,173,201,000

32
35

bank, the Comptroller can dispense with the uniform
standards applicable to usual acquisition transactions
and need not consider reports on the competitive consequences of the transaction ordinarily solicited from
the Department of Justice and the other banking
agencies. He is authorized in such circumstances to
act immediately in his sole discretion, to approve an
acquisition and to authorize the immediate consummation of the transaction.
This proposed acquisition will prevent a disruption to
the community and potential losses to depositors. The
Assuming Bank has financial and managerial resources sufficient to purchase Bloomfield. Thus, the
approval of this transaction will help to avert a loss of
public confidence in the banking system, and may actually improve the services offered to the banking public.
The Comptroller thus finds that the proposed transaction will not result in a monopoly, be in furtherance of
any combination or conspiracy to monopolize or attempt to monopolize the business of banking in any
part of the United States and that the anticompetitive
effects of the proposed transaction, if any, are clearly
outweighed in the public interest by the probable effect of the proposed transaction in meeting the convenience and needs of the community to be served.
For these reasons, the Assuming Bank's application to
assume certain liabilities and purchase certain assets
of Bloomfield as set forth in the agreement executed
with the FDIC as receiver, is approved. The Comptroller further finds that the failure of Bloomfield requires
immediate action, as contemplated by the Bank
Merger Act, to prevent disruption of banking services
to the community; the Comptroller thus waives publication of notice, dispenses with the solicitation of competitive reports from other agencies and authorizes the
transaction to be consummated immediately.
January 10, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

45

SOUTHEAST FIRST NATIONAL BANK OF SARASOTA,
Sarasota, Fla., and Palmer First National Bank and Trust Company of Sarasota, Sarasota, Fla.
Banking offices
Total assets*

Name of bank and type of transaction

In
operation
Palmer First National Bank and Trust Company of Sarasota, Sarasota, Fla. (13352), with
was purchased Jan. 15, 1976, by Southeast First National Bank of Sarasota, Sarasota, Fla.,
(16531), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On January 13, 1976, application was made to the
Comptroller of the Currency to grant prior written approval for Southeast First National Bank of Sarasota,
Sarasota, Fla. ("Assuming Bank"), to purchase assets,
and to assume certain of the liabilities, of Palmer First
National Bank and Trust Company of Sarasota,
Sarasota, Fla. ("PFNB"). The instant application rests
upon an agreement, incorporated herein by reference
the same as if fully set forth, and, for the reasons set
forth below, the application is hereby approved, and
the Assuming Bank is hereby authorized immediately
to consummate the purchase and assumption transaction.
PFNB was initially organized as a national bank in
1929, when it was granted charter number 13352. As
of October 6, 1975, PFNB ranked as the second
largest bank in Sarasota County, Fla., with total assets
of $144 million and total deposits of $122 million. In
addition, PFNB managed trust assets as of October
1975, of approximately $356 million. The commercial
banking service area of PFNB consisted of the northern third of Sarasota County which contains the major
portions of the city of Sarasota, its business district
and the surrounding residential, commercial and
shopping areas.
On November 30, 1971, PFNB became a subsidiary
of Palmer Bank Corporation, a newly organized bank
holding company which simultaneously acquired two
additional Florida banks. Since 1971 the holding company has acquired several additional banks, four of
which were opened during the first quarter of 1974, as
well as non-bank subsidiaries. As of June 1975, the
holding company owned eight commercial banks and
three non-bank subsidiaries. On June 30, 1975, Palmer
Bank Corporation ranked 22nd in size of the 31 bank
holding companies in Florida. The holding company
had consolidated assets of $262 million, 55 percent of
which was represented by the assets of PFNB.
As of June 1969, PFNB had 49.1 percent of total assets invested in securities and 37.6 percent invested in
loans. Real estate loans and personal loans represented 30.4 percent and 31.2 percent, respectively, of
the loan portfolio. Classified assets as of January 30,
1973, represented only 19 percent of the bank's gross
capital funds and, of that figure, a mere 0.5 percent
represented a classification of doubtful or loss. Depreciation in the bond account was nominal.
Beginning in 1974, the asset quality of PFNB began
* Asset figures are as of call dates immediately before and after
transactions.


46


To be
operated

$135,870,600
5,000,000
117,320,100

to deteriorate and the bank experienced an increase in
classified assets, overdue loans and nonaccruing
loans, many of which involved real estate construction
projects that had been originated by Coastal Mortgage
Company, a wholly-owned subsidiary of Palmer Bank
Corporation. Many of the real estate borrowers experienced financial setbacks due to inflation, cost overruns, increased interest rates, the effects of the energy
crisis and the general decline in the economy. Because of those and other factors, losses were incurred
as the real estate borrowers were unable to meet their
obligations to the bank. Thus, in 1973, net loan
charge-offs were only $139,000. At year-end 1974, the
charge-offs had increased to $1,550,000. Subsequent
examinations during the early months of 1975 revealed
that management had been unable to reverse that
trend and the bank continued to sustain heavy loan
losses. As of October 6, 1975, classified assets were
345 percent of capital; loss and doubtful assets alone
aggregated $6,668,000, representing 74 percent of
capital; overdue loans represented 33.2 percent of
total loans; and nonaccruing loans aggregated 22
percent of total loans and 209 percent of capital.
With respect to the liability structure of PFNB, time
and savings deposits of individuals, partnerships, corporations and other private sector sources decreased
from 54 percent of total deposits in 1970 to 44 percent
in 1974. Demand deposits from the same sources decreased from 40 percent of total deposits, in 1970, to
32 percent, in 1974. However, public funds deposits
increased from 6 percent of total deposits, in 1970, to
24 percent in 1974. That shift in the deposit base to
funds which could be easily removed from the bank in
large amounts placed added pressure on the bank's
liquidity and increased the difficulty of accurately projecting the bank's money flow. From February 18,
1975, to the examination date of October 6, 1975, the
bank experienced a deposit run-off of approximately
$22 million. That was coupled with a diminishing ability
to attract funds in the money market. A reliance by
PFNB on the purchase of Federal funds and other
money market borrowings to maintain liquidity and a
corresponding loss of credibility with the sellers of
those funds, caused in large part by the publication of
the bank's annual report for 1974 and other adverse
publicity, forced PFNB to borrow funds from the Federal Reserve Bank of Atlanta, the lender of last resort.
Prior to the end of 1973, borrowings by the bank
from all sources were an insignificant portion of its
liabilities, aggregating only 4.4 percent of total
liabilities. On December 3 1 , 1974, Federal funds

purchased and securities sold subject to repurchase
agreements comprised 7.8 percent of total liabilities.
By the last week of December 1975, however, borrowings at the Federal Reserve Bank of Atlanta had
increased to a high of $11.5 million in order to maintain
liquidity in the face of heavy deposit withdrawals. The
continued inability of the bank to attract deposits or
raise funds in the money market further strained its liquidity position and reflected diminished public confidence in its viability as a financial institution.
The severity and multiplicity of problems facing
PFNB by early 1975, required the earliest feasible addition of equity capital and management expertise. The
unsuccessful attempts of Palmer Banking Corporation
and PFNB independently to raise additional equity
capital resulted in an effort to seek out a merger partner. An agreement by Southeast Banking Corporation,
the largest bank holding company in Florida, to acquire Palmer Bank Corporation and its subsidiaries
with the assistance of a $10 million loan from the FDIC
was subsequently reached. As part of that transaction
the Comptroller was first asked to approve the merger
of PFNB into a newly organized subsidiary bank of
Southeast Acquisition Corporation. However, as a result of litigation commenced or threatened against certain directors of PFNB and Palmer Bank Corporation
within the past few weeks, the parties postponed the
consummation of the transaction originally scheduled
for December 31, 1975, modified certain details of the
transaction with the permission of the Federal Reserve
Board, FDIC and the Comptroller and have now asked
the Comptroller to approve, in lieu of the proposed
merger of PFNB into a new bank, the purchase and
assumption agreement negotiated between PFNB and
Southeast First National Bank of Sarasota by which the
latter would purchase assets and assume certain
liabilities, including all deposit liabilities, of the former.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds those anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed




to consider the financial and managerial resources
and future prospects of the existing and proposed
institution and the convenience and needs of the
community to be served. When necessary, however, to
prevent the evils attendant upon the failure of a bank,
the Comptroller can dispense with the uniform standards applicable to usual acquisition transactions and
need not consider reports on the competitive consequences of the transaction ordinarily solicited from the
Department of Justice and other banking agencies. He
is authorized in such circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the immediate consummation of
the transaction.
The proposed acquisition will be in accord with all
pertinent provisions of the National Bank Act and will
prevent an enormous disruption to the community and
potential losses to a number of uninsured depositors.
The Assuming Bank will have strong financial and
managerial resources and this acquisition will enable
it—as a direct Southeast subsidiary—to enhance the
banking services offered in the Sarasota community.
Thus, the approval of this transaction will help to avert
a loss of public confidence in the banking system and
will improve the services offered to the banking public.
The Comptroller finds that the anticompetitive effects
of the proposed transaction, if any, are clearly outweighed in the public interest by the probable effect of
the proposed transaction in meeting the convenience
and needs of the community to be served. For these
reasons, the Assuming Bank's application to assume
certain liabilities and purchase assets of PFNB as set
forth in the agreement is approved. The Comptroller
further finds that the possible failure of PFNB requires
him to act immediately, as contemplated by the Bank
Merger Act, to prevent disruption of banking services
to the community; and the Comptroller thus waives
publication of notice, dispenses with the solicitation of
competitive reports from other agencies and authorizes the transaction to be consummated immediately.
January 14, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

47

BANK OF VIRGINIA N.A.,
Vinton, Va., and Bank of Virginia - Danville, Danville, Va.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Bank of Virginia - Danville, Danville, Va., with
and Bank of Virginia N.A., Vinton, Va. (16485), which had
merged Jan. 31, 1976, under charter and title of the latter bank (16485). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On December 3, 1975, Bank of Virginia - Danville,
Danville, Va., and Bank of Virginia N.A., Vinton, Va.,
applied to the Comptroller of the Currency for permission to merge under the charter and title of the latter.
The proposed merger represents a corporate reorganization which would merely combine two existing
subsidiary banks of Bank of Virginia Company into a
single institution that would continue under the ownership of the holding company. The resulting bank will
continue to operate all existing offices of the charter
and merging banks.
Applying the statutory criteria, it is concluded that
* Reflects the result of this merger and that with Bank of Virginia Lynchburg, which occurred on the same date.

$ 43,413,094
90,436,221

4
10

145,631,146*

14

the proposed merger is merely part of an internal corporate reorganization which will have no effect on
competition.
Approval of this application is conditioned upon this
Office's receipt of notice of publication by Bank of Virginia - Danville, a state bank, of a shareholders' meeting to ratify the subject merger and, receipt of notice of
the ratification by the shareholders.
December 30, 1975.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging
sidiaries of the
their proposed
ganization and

banks are both wholly-owned subsame bank holding company. As such,
merger is essentially a corporate reorwould have no effect on competition.

BANK OF VIRGINIA N.A.,
Vinton, Va., and Bank of Virginia - Lynchburg, Lynchburg, Va.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
Bank of Virginia - Lynchburg, Lynchburg, Va., with
and Bank of Virginia N.A., Vinton, Va. (16485), which had
merged Jan. 31, 1976, under the charter and title of the latter bank (16485). The merged
bank at date of merger had

COMPTROLLER'S DECISION
On December 3, 1975, Bank of Virginia - Lynchburg,
Lynchburg, Va., and Bank of Virginia N.A., Vinton, Va.,
applied to the Comptroller of the Currency for permission to merge under the charter and title of the latter.
The proposed merger represents a corporate reorganization which would merely combine two existing
subsidiary banks of Bank of Virginia Company into a
single institution that would continue under the ownership of the holding company. The resulting bank will
continue to operate all existing offices of the charter
and merging banks.
Applying the statutory criteria, it is concluded that
* Reflects the result of this merger and that with Bank of Virginia Danville, which occurred on the same date.


48


$ 11,781,831
90,436,221
145,631,146*

4
14
18

the proposed merger is merely part of an internal corporate reorganization which will have no effect on
competition.
Approval of this application is conditioned upon this
Office's receipt of notice of publication by Bank of Virginia - Lynchburg, a state bank, of a shareholders
meeting to ratify the subject merger and receipt of
notice of the ratification by the shareholders.
December 30, 1975.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging
sidiaries of the
their proposed
ganization and

banks are both wholly-owned subsame bank holding company. As such,
merger is essentially a corporate reorwould have no effect on competition.

OLD COLONY BANK OF HAMPDEN COUNTY, N.A.,
Holyoke, Mass., and Heritage Bank and Trust Company, Westfield, Mass.
Banking offices

Name of bank and type of transaction

Total assets
In
To be
operation operated

Heritage Bank and Trust Company Westfield Mass with
and Old Colony Bank of Hampden County, N.A., Holyoke, Mass. (1939), which had
merged Feb. 3, 1976, under charter and title of the latter bank (1939). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On January 21, 1976, Old Colony Bank of Hampden
County, N.A., Holyoke, Mass., applied to the Comptroller of the Currency for permission to merge with Heritage Bank and Trust Company, Westfield, Mass.,
under the charter and with the title of Old Colony Bank
of Hampden County, N.A. This application has been
processed pursuant to the emergency provisions of
the Bank Merger Act of 1966, contained in 12 USC
1828(c).
Old Colony Bank of Hampden County, N.A., the
charter bank, was founded in 1872 and currently has
assets of $35 million and IPC deposits of $25.3 million.
The charter bank is currently the fourth largest bank in
Hampden County and operates seven branch offices
in that county, with three branches in Holyoke, three
branches in Chicopee and one branch in Springfield.
The primary service area of the bank consists of the
Springfield-Chicopee-Holyoke Standard Metropolitan
Statistical Area (SMSA). In November 1973, the charter
bank was acquired as a wholly-owned subsidiary of
First National Boston Corporation, a multi-bank holding
company headquartered in Boston.
Heritage Bank and Trust Company, the merging
bank, was organized in 1967 and now has assets of
$12.3 million and IPC deposits of $9.6 million. The
merging bank operates its main office and one branch
in the city of Westfield which is the fourth largest city in
Hampden County, and geographically, lies in the center of that county, on the western edge of the
Springfield-Chicopee-Holyoke SMSA. The primary service area of the bank consists of the city of Westfield.
In May 1974, Heritage Bank and Trust Company was
acquired, as a wholly-owned subsidiary, by Heritage
Bancorp, Inc.
Both the charter and merging banks compete with
the three largest banks headquartered in Springfield,
which aggregately control 85 percent of the commercial bank deposits and operate 62 of the 82 commercial banking offices in Hampden County. Those three
banks are Third National Bank of Hampden County,
Springfield, with deposits of $256 million; Valley Bank
and Trust Company, Springfield, with deposits of $242
million, a subsidiary of Baystate Corporation; and
Shawmut First Bank and Trust Company, Springfield,
with deposits of $122 million, a member of Shawmut
Corporation.
There is little, if any, competition between the charter
and merging banks because each operates in a primary service area which is separate and distinct from
that from which the other derives a majority of its business. A survey of the deposits and loans taken in the



$11,810,178
36,273,385
47,161535

2
8
10

fall of 1975 by Old Colony Bank of Hampden County
reveals that more than 80 percent of the number and
dollar amounts of the personal demand deposits,
commercial demand deposits and savings deposits
originated from the three cities in which the charter
bank maintains branch offices — Chicopee, Holyoke
and Springfield. The same survey shows that the
majority of installment, commercial and real estate
loans of the charter bank came from those same cities.
Similarly, the business generated by Heritage Bank
and Trust Company in the primary service area of the
charter bank is minimal.
An important aspect of this transaction, prompting
the Comptroller to invoke the emergency provisions of
the Bank Merger Act, is the present financial position
of the merging bank. The deposits of Heritage Bank
and Trust Company have significantly declined in the
past 6 months. From a level of $12.5 million on June
30, 1975, its deposits fell to $10.6 million (unaudited)
on November 30, 1975. The bank's loan portfolio has
shown serious deterioration over the past 3 years.
Charge-offs for 1975 have virtually eliminated the previously established reserve for loan losses. Loans
classified substandard and doubtful during 1975 far
exceed the amount available at the bank to cover exposure for possible losses. The merging bank is also
carrying a substantial loss in its bond portfolio.
The instant merger will have beneficial effects on
both the banking community and the public served by
the two banks. The competitive environment of
Hampden County will be strengthened because a relatively small, healthy bank will enter the Westfield market and will present a competitive challenge to three
dominant banks which are already entrenched in that
area. The resulting bank will offer new services and will
expand existing services in the area now served by the
merging bank. Management of Old Colony Bank of
Hampden County has the capacity to assume this
added responsibility and become a vigorous competitor in this part of Hampden County. Of vital importance, consummation of this merger will insure the continued, uninterrupted performance of banking services
to the present customers of Heritage Bank and Trust
Company, thereby maintaining the confidence of the
public in the American banking system.
Applying the statutory criteria contained in 12 USC
1828(c), the Comptroller of the Currency finds that an
emergency exists because of the present condition of
Heritage Bank and Trust Company which requires expeditious action in order to prevent the failure of that
bank at some future date. Consistent with this finding,
it is concluded that the subject merger will not ad-

49

ward increased concentration in the county, although
the linking of Bank to FNBC may enhance its ability to
compete with greater vigor with the three largest
banks.
Although branching is permitted in Massachusetts, it
appears that prospective branching or de novo entry
by Applicant in Westfield is highly problematic given
the fact that its population of 31,000 is already served
by seven institutions.
In sum, it appears that the proposed merger will
eliminate some existing competition and will slightly
increase the concentration in commercial banking and
have a slight impact on potential competition. Overall,
the proposed merger would have slightly adverse
competitive consequences.

versely affect competition in Hampden County. This
application is, therefore, approved.
January 29, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant and Bank currently operate in each other's
market. Although it appears that the proposed merger
would eliminate some existing competition, the effect
should be slight.
Commercial banking in Hampden County is highly
concentrated with the three largest commercial banks
collectively accounting for an 85.6 percent share of
total deposits in the county. It appears that the proposed
acquisition will contribute slightly to the trend to-

FIRST NATIONAL STATE BANWMECHANICS,
Burlington Township, N.J., and Somerset Hills &
County National Bank, Basking Ridge, N.J.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
Somerset Hills & County National Bank, Basking Ridge, N.J. (6960), with
and First National State Bank/Mechanics, Burlington Township, N.J. (1222), which had
merged Feb. 6, 1976, under charter of the latter bank (1222) and title "First National
State Bank of West Jersey." The merged bank at date of merger had

COMPTROLLER'S DECISION

$ 83,022,242
124,172,444

8
15
23

207,194,686

The resulting bank will continue to operate the existing
offices of the charter and merging banks.
Applying the statutory criteria, it is concluded that
the proposed merger is merely part of an internal corporate reorganization which will not adversely affect
competition. This application is, therefore, approved.
December 31, 1975.

On November 6, 1975, Somerset Hills & County National Bank, Basking Ridge, N.J., and First National
State Bank/Mechanics, Burlington Township, N.J.,
applied to the Comptroller of the Currency for permission to merge under the charter of the latter and with
the title "First National State Bank of West Jersey."
The proposed merger represents a corporate reorganization which would merely combine two existing
subsidiary banks of First National State Bancorporation, Newark, N.J., into a single institution that will continue under the ownership of the holding company.

SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging
sidiaries of the
their proposed
ganization and

banks are both wholly-owned subsame bank holding company. As such,
merger is essentially a corporate reorwould have no effect on competition.

FIRST TENNESSEE NATIONAL BANK,
Chattanooga, Tenn., and The Hamilton National Bank of Chattanooga, Chattanooga, Tenn.
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

The Hamilton National Bank of Chattanooga, Chattanooga, Tenn. (7848), with
was purchased Feb. 16, 1976, by First Tennessee National Bank, Chattanooga, Tenn. (16552),
which had
After the purchase was effected, the receiving bank had

$476,673,000

25

16,000,000
353,904,000

0
25

Due to the emergency nature of the situation, no "Comptroller's Decision" or Attorney General's report was prepared.
* Asset figures are as of call dates immediately before and after transaction.


50


*

*

*

UNITED NATIONAL BANK,
Rapid City, S. Dak., and Union Bank & Trust, Sioux Falls, S. Dak.
Name of bank and type of transaction

Total assets*

Banking offices
In
To be
operation operated

Union Bank & Trust, Sioux Falls, S. Dak., with
and United National Bank, Rapid City, S. Dak. (15639), which had
consolidated Feb. 17, 1976, under charter and title of the latter bank (15639). The
consolidated bank at date of consolidation had

COMPTROLLER'S DECISION
On May 15, 1975, Union Bank & Trust, Sioux Falls, S.
Dak., and United National Bank, Rapid City, S. Dak.,
applied to the Comptroller of the Currency for permission to consolidate under the charter and with the title
of the latter and with its headquarters in Sioux Falls, S.
Dak.
United National Bank, the charter bank, was organized in 1914 and currently operates 15 branch offices with assets of $80.3 million and IPC deposits of
$56.2 million. An additional branch has been approved
but is not yet in operation. The charter bank is owned
by United National Corporation, a one-bank holding
company. The service area of the charter bank can be
broadly defined as that part of South Dakota which lies
either adjacent to or south of Interstate Highway 90
which connects Rapid City and Sioux Falls, the two
largest cities in the state. The economy of that region is
dependent on agricultural pursuits, tourism and related
service businesses.
The charter bank operates the majority of its
branches without competition in sparsely populated,
agricultural communities. In Vermillion it competes directly with a branch of National Bank of South Dakota,
Sioux Falls, the largest bank in the state, which has
deposits of $318.1 million and is a member of First
Bank System, Inc. Direct competition in Rapid City is
provided by additional branches of National Bank of
South Dakota and by First National Bank of the Black
Hills, Rapid City, which has deposits of $174.2 million
and is a member of Northwest Bancorporation. In
Sioux Falls, where the charter bank has operated a
branch for. less than 1 year, it again competes with National Bank of South Dakota which is headquartered in
that city, as well as with Northwestern National Bank of
Sioux Falls, which has deposits of $226.4 million and is
a member of Northwest Bancorporation; The First National Bank in Sioux Falls, which has deposits of $81.9
million; and two other, moderately-sized, independently
owned banks.

$33,313,000
98,733,000
123,544,000

2
16
18

Union Bank & Trust, the consolidating bank, was organized in 1929 and operates its main office and one
branch in Sioux Falls. It has assets of $31.1 million and
IPC deposits of $24.7 million. The area served by the
bank includes downtown Sioux Falls and the southwest
quadrant of the city. The economy of that region is
dominated by the city of Sioux Falls which is the agricultural and industrial center of South Dakota. Direct
competition for the consolidating bank is provided by
the large commercial banks headquartered in the city.
Although the charter bank operates a branch in
Sioux Falls, there is only minimal competition between
that branch and the consolidating bank. The Sioux
River divides the city roughly in half and the main office and branch of the consolidating bank are located
east of the river while the branch of the charter bank
branch is west of the river. Practically and historically
those .sections have been recognized as separate and
distinct service areas. The fact that the same individual
owns a controlling interest in both the consolidating
bank and the holding company that owns the charter
bank further minimizes competition between the two
banks.
Consummation of the proposed transaction will
stimulate competition in Sioux Falls because the resulting bank will be in a better position to compete with the
large holding company affiliated banks that are already established in the city. The consolidation will
have little effect outside the Sioux Falls area and the
principal benefit to the other communities served by
the charter bank will be the availability of the resulting
bank's larger lending limit. The charter bank already
maintains its executive offices in the Union Bank &
Trust building in Sioux Falls and the consolidation will
enable the resulting bank to establish more firmly its
identity in the banking center of South Dakota.
Applying the statutory criteria, it is concluded that
the proposed transaction is in the public interest and
this application is, therefore, approved.
August 15, 1975.
SUMMARY OF REPORT BY ATTORNEY GENERAL

* Asset figures are as of call dates immediately before and after transaction.




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

51

SOUTH LOOP NATIONAL BANK,
Houston, Tex., and South Texas Bank, Houston, Tex.
Name of bank and type of transaction

Total assets *

Banking offices
In
To be
operation operated

South Texas Bank, Houston, Tex., with
was purchased Mar. 1, 1976, by South Loop National Bank, Houston, Tex. (16558), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On March 1, 1976, application was made to the Comptroller of the Currency by the South Loop National
Bank, Houston, Tex., for permission to purchase some
of the assets and assume the liabilities of the South
Texas Bank, Houston, Tex. Instant application rests
upon an agreement incorporated herein by referencing
the same as if fully set forth, and, for the reasons set
forth below, the application is hereby approved and
the assuming bank is hereby authorized immediately
to consummate purchase and assumption transaction.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds these anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution and the convenience and needs of the
community to be served. When necessary, however, to
prevent the evils attendant upon the failure of a bank,
the Comptroller can dispense with the uniform standards applicable to usual acquisition transactions and
need not consider reports on the competitive consequences of the transaction ordinarily solicited from the
Department of Justice and other banking agencies. He
is authorized in such circumstances to act im* Asset figures are as of call dates immediately before and after
transaction.


52


$8,173,336

1

1,120,000
5,426,000

0
1

mediately, in his sole discretion, to approve an acquisition, and to authorize the immediate consummation of
the transaction.
The proposed acquisition will be in accord with all
pertinent provisions of the National Bank Act and will
prevent disruption to the community and potential
losses to a number of uninsured depositors. The
assuming bank will have strong financial and managerial resources, and this acquisition will enable it to enhance the banking services offered in the Houston
community. Thus, the approval of this transaction will
help to avert a loss of public confidence in the banking
system, and will improve the services offered to the
banking public.
The Comptroller finds that the anticompetitive effects
of the proposed transaction, if any, are clearly outweighed in the public interest by the probable effect of
the proposed transaction in meeting the convenience
and needs of the community to be served. For those
reasons, the assuming bank's application to assume
certain liabilities and purchase assets of South Texas
Bank as set forth in the agreement is approved. The
Comptroller further finds that the failure of South Texas
Bank requires him to act immediately, as contemplated
by the Bank Merger Act, to prevent disruption of banking services to the community; and the Comptroller
thus waives publication of notice, dispenses with the
solicitation of competitive reports from other agencies,
and authorizes the transaction to be consummated
immediately.
March 1, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

OLD NATIONAL BANK OF WASHINGTON,
Spokane, Wash., and Bank of the West, Bellevue, Wash.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
Bank of the West, Bellevue, Wash., with
was purchased Mar. 5, 1976, by Old National Bank of Washington, Spokane, Wash. (4668),
which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION

60

76

SUMMARY OF REPORT BY ATTORNEY GENERAL
Ten of Applicant's offices, five in King County and five
in Snohomish County, are within 11 miles of four of
Bank's King County offices; the closest offices are
about 4.4 road miles apart. Thus, the merger would
eliminate some existing competition between the
banks. Neither bank, however, controls a significant
portion of the total deposits in this area, which is dominated by two Seattle-based banks. Thus, the effect of
the merger on competition would not be significantly
adverse.

* Asset figures are as of call dates immediately before and after
transaction.

*

16

633,358,000
745,866,000

County. The city of Seattle dominates King County but
the selling bank has no offices in the city itself. Old National Bank has five offices in King County, two of
which are located in Seattle. Four of the purchasing
bank's offices are separated from the offices of the
selling bank by Lake Washington. The purchasing
bank's fifth branch in King County is more than 4 miles
from any branch of the selling bank. Additionally, because of the state branching laws, Bank of the West
cannot branch into Seattle proper and Old National
Bank is restricted from freely branching in King
County. Both banks are severely limited in their ability
to expand in this area of the state. Neither bank controls a significant portion of the total deposits in King
County which is dominated by the large Seattle-based
banks. As a result, only a minimal amount of competition between the two banks will be eliminated by the
proposed transaction and the effect on competition in
the King County area will not be significant.
Competition for both banks is provided by SeattleFirst National Bank, with deposits of $3.4 billion;
Rainier National Bank, with deposits of $2 billion;
Pacific National Bank of Washington, with deposits of
$800 million; and Peoples National Bank of
Washington, with deposits of $615 million.
Consummation of the proposed transaction will result in some loss of competition but the great number
of alternative banking offices throughout King County
reduces the impact of that slight loss. The transaction
will not change Old National Bank's position relative to
other banks in the state and the resultant bank will be
able to compete more effectively with the large
Seattle-based banks. The resulting bank will have a
larger lending limit and will be able to provide
increased services to present customers of the selling
bank, such as expanded trust services.
Applying the statutory criteria, it is concluded that
the proposed transaction will not significantly affect
competition and, therefore, it is approved.
February 2, 1976.

On September 30, 1975, Old National Bank of
Washington, Spokane, Wash., applied to the Comptroller of the Currency for permission to purchase the assets and assume the liabilities of Bank of the West,
Bellevue, Wash.
Old National Bank of Washington, the purchasing
bank, was organized in 1891 and, with assets of approximately $564 million and IPC deposits of approximately $445 million, ranks as the state's fifth largest
bank in deposit size. The purchasing bank currently
operates 60 offices. Forty-nine of the bank's offices are
located on the eastern side of the Cascade Mountains
which bisect the state. The economy of the area is
predominantly agricultural and Spokane is the principal urban center.
Old National Bank is a member of Washington
Bancshares, Inc., a bank holding company whose only
other affiliate bank is First National Bank in Spokane,
with deposits of $45.5 million. First National Bank in
Spokane operates no branches outside Spokane
County in eastern Washington.
In the past several years Old National Bank has expanded to the western and more densely populated
area of the state in and around Seattle. Old National
Bank's expansion has been primarily by acquisition
because of the state's restrictive branching laws which
only permit de novo branching within the county in
which the bank is headquartered or in any city or town
which has no bank or branch.
Bank of the West, the selling bank, is a statechartered bank organized in 1965 which presently operates 16 offices in western Washington. Bank of the
West has total assets of $117 million and IPC deposits
of $85 million and ranks as the state's 11th largest
bank in deposit size. The selling bank is headquartered in Bellevue, King County, Wash. Bellevue, a city
which is separated from Seattle by Lake Washington,
is a major port and manufacturing center.
Bank of the West has seven offices, acquired by
merger, in Cowlitz County which is in the southwestern
portion of the state approximately 100 miles from
Seattle. The purchasing bank has no offices in Cowlitz
County and, because of the state's restrictive branching laws, the purchasing bank is unable to branch de
novo into Cowlitz County. As a result the present
transaction will have little competitive impact in Cowlitz
County.
Bank of the West has nine offices located in King




$126,226,969

*

*

53

THE FARMERS NATIONAL BANK OF ANNAPOLIS,
Annapolis, Md., and The Millington Bank of Maryland, Millington, Md.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
The Millington Bank of Maryland, Millington, Md., with
and The Farmers National Bank of Annapolis, Annapolis, Md. (1244) which had
merged Mar. 5, 1976, under charter of the latter bank (1244) and title "Farmers National Bank of Maryland." The merged bank at date of merger had

COMPTROLLER'S DECISION
On January 16, 1976, the Farmers National Bank of
Annapolis, Annapolis, Md., applied to the Comptroller
of the Currency for permission to merge the Millington
Bank of Maryland under the charter of the Farmers National Bank of Annapolis and with the title of "Farmers
National Bank of Maryland." This application has been
processed pursuant to the emergency provisions of
the Bank Merger Act of 1966, contained in 12 USC
1828(c).
The Farmers National Bank of Annapolis, the charter
bank, was established in 1805 and currently has assets of $76 million and IPC deposits of $60 million. The
charter bank operates four offices in Annapolis and
five offices in surrounding Anne Arundel County.
The charter bank's service area encompasses almost all of Anne Arundel County which is located on
the Chesapeake Bay in eastern Maryland. The population of the service area, which is currently about
175,000, has grown rapidly because people who work
in Baltimore and Washington, D.C., are establishing
homes in the area.
The charter bank is the ninth largest of 16 banks, represented in Anne Arundel County. The five largest
banks in the state have offices in the county. However,
in spite of the highly competitive nature of banking in
the service area, the charter bank has realized excellent growth over the last 10 years and ranks second in
its share of total deposits in the county. Major competitors in the service area include Equitable Trust
Bank, Baltimore, with deposits of $992 million, a
member of the Equitable Bancorporation; Maryland
National Bank, Baltimore, with deposits of $1.9 billion;
and First National Bank of Maryland, Baltimore, with
deposits of $902 million.
The Millington Bank of Maryland, the merging bank,
was established in 1908 and operates as a unit bank
with assets of $5.6 million and IPC deposits of $5 million. Millington is an agricultural community with a
population of about 450 located in Kent County on the
eastern side of the Chesapeake Bay. The service area
of the merging bank includes much of Kent County
and part of Queen Anne County to the south, and extends east into Delaware. The economy of the service
area is dominated by agriculture. The merging bank is
the smallest of five banks serving Kent County. Two of
the largest banking organizations in the state have offices in the service area, including Maryland National
Bank and an affiliate of Mercantile Bankshares Corporation, the $25 million deposit Chestertown Bank of
Maryland, Chestertown.

54


$ 5,398,792
76,251,752
81,650,543

1
9
10

There is little, if any, competition between the charter
and merging banks because of the distance which
separates the closest offices of each bank, approximately 50 miles, and they are separated by the
Chesapeake Bay. The charter bank is interested in expanding into the Eastern Shore counties in order to
take advantage of the banking opportunities presented
by the increasingly successful agriculture industry.
An important aspect of this transaction prompting
the Comptroller to expedite this merger under
emergency provisions of the Bank Merger Act is the
present financial position of the merging bank. The
merging bank has not progressed significantly since
its organization in 1908 and, because of its size and
location, the merging bank has not been able to attract
and hold qualified management. More importantly, the
bank's condition decreased substantially during the
past few weeks when it experienced a $170,000 overdraft loss charged against the capital accounts of
$250,000. Also the merging bank has experienced an
additional $23,000 loan loss. Those substantial losses
in conjunction with the inability of stockholders to raise
additional capital have left the bank in a precarious
position militating against its future survivability as a
viable institution.
The instant merger will benefit the Millington community, now served by the merging bank, by providing
a more aggressive and viable competitor. Additionally,
the merger will only slightly increase the charter bank's
relative position in Anne Arundel County. The resulting
bank will offer new services and expand existing services in the area now served by the merging bank.
Farmers National Bank has both the capital and management capacity to absorb the merger without any
detriment to its own financial position, and to become
a vigorous competitor in Kent County. Of vital importance, consummation of this merger will insure the continued, uninterrupted, provision of banking services to
the present customers of The Millington Bank of Maryland, thereby maintaining the confidence of the public
in the banking system.
Applying the statutory criteria contained in 12 USC
1828(c), the Comptroller of the Currency finds that an
emergency exists because of the present condition of
the Millington Bank of Maryland which requires expeditious action in order to prevent the failure of that
bank at some future date. Consistent with that finding,
it is concluded that the subject merger will not adversely affect competition in Maryland. Accordingly,
this application is in the public interest and should be,
and is, approved.
February 23, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant operates solely in Anne Arundel County
(population 298,000) and Bank operates solely in Kent
County (population 16,000). The office of Applicant
closest to the sole office of Bank is 51 miles away, and
there are both competitive banking alternatives and
the Chesapeake Bay located in the area which separates Applicant and Bank. Thus, there currently exists
at best a negligible amount of competition between
Applicant and Bank.
There are currently 16 commercial banks serving
Anne Arundel County and they collectively operate 63
offices. Applicant operates nine of the offices and currently ranks second with 16 percent share of the deposits in the county. The five largest banks in the state
all have offices in Anne Arundel County. Bank is the
smallest of the five banks which currently operate a
total of nine offices in Kent County. Bank holds 7.5
percent of total county deposits. Two of the largest

banks in the state operate in Kent County. In any
event, since Applicant does not operate in Kent
County and Bank does not operate in Anne Arundel
County, the proposed acquisition will not increase the
level of concentration in either market.
Statewide branching is permitted in Maryland, so
both Applicant and the Bank are free to open
branches in the counties served by each other. The financial condition of Bank makes it obvious that it cannot entertain serious notions about expansion any time
soon, and the small population of Kent County and the
presence of many other banks in the county render
Kent County a less than likely target for expansion by
Applicant.
In sum, the proposed acquisition will not eliminate
any significant amount of existing competition, nor will
it appreciably increase concentration. It will remove
the theoretical possibility of de novo entry by each
bank into the area served by the other, a possibility
which appears to be rather remote.

THE FIRST NATIONAL BANK OF HUNTSVILLE,
Huntsville, Ark., and The Valley Bank, Hindsville, Ark.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
The Valley Bank, Hindsville, Ark., with
was purchased Mar. 9, 1976, by The First National Bank of Huntsville, Huntsville, Ark. (8952),
which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On March 8, 1976, application was made to the Comptroller of the Currency by the First National Bank of
Huntsville, Huntsville, Ark. ("Assuming Bank") for permission to purchase the assets and assume the
liabilities of The Valley Bank, Hindsville, Ark. The application rests upon an agreement incorporated herein
by referencing the same as if fully set forth, and, for the
reasons set forth below the application is hereby approved and the Assuming Bank is hereby authorized
immediately to consummate the purchase and assumption transaction, and to operate the office of The
Valley Bank as a branch office of the Assuming Bank.
During the course of an examination of The Valley
Bank, commencing February 10, 1976, a shortage
presently estimated at approximately $645,000 was
discovered. That shortage resulted from loans either
forged or in the names of non-existent persons. Capital
and reserves of The Valley Bank as of February 9,
1976, totalled approximately $152,600. In addition, the
bank carries a $75,000 Fidelity Coverage Bankers Blanket Bond, however, the bank carries no excess Employee Dishonesty Bond. Applicant is one of only two
banks eligible to establish a branch in Hindsville. The
other eligible bank, Bank of Kingston, Kingston, Ark., is
* Asset figures are as of call dates immediately before and after
transaction.




$1,936,637
18,457.000
20,077,000

a small institution located in a remote area of Madison
County, approximately 30 miles from Hindsville. The
Bank of Kingston has total deposits of approximately
$1.1 million and does not have the financial capacity to
absorb the Hindsville bank.
Under the Bank Merger Act, 12 USC, 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds these anticompetitive efects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution and the convenience and needs of the
community to be served. When necessary, however, to
prevent the disruptions attendant upon the failure of a
bank, the Comptroller can dispense with the uniform
standards applicable to usual acquisition transactions
and need not consider reports on the competitive consequences of the transaction ordinarily solicited from
the Department of Justice and the other banking
agencies. He is authorized in such circumstances to
act immediately in his sole discretion, to approve an
acquisition and to authorize the immediate consummation of the transaction.
The proposed acquisition will be in accord with all

55

pertinent provisions of the National Bank Act and will
prevent disruption to the Hindsville community and potential losses to several uninsured depositors. The Assuming Bank has sufficient financial and managerial
resources to absorb The Valley Bank. Thus, the approval of this transaction will help to avert a loss of
public confidence in the banking system and prevent
disruption of banking services to the community.
The Comptroller finds that the anticompetitive effects
of the proposed transaction, if any, are clearly outweighed in the public interest by the probable effect of
the proposed transaction in meeting the convenience
and needs of the community to be served. For those
reasons, the Assuming Bank's application to assume

the liabilities and purchase the assets of The Valley
Bank, as set forth in the purchase agreement, is
hereby approved. The Comptroller further finds that
the failure of The Valley Bank requires him to act immediately, as contemplated by the Bank Merger Act, to
prevent disruption of banking services to the community;
and the Comptroller thus waives publication of notice,
dispenses with the solicitation of competitive reports
from other agencies and authorizes the transaction to be
consummated immediately.
March 9, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

UNITED NATIONAL BANK,
Castlewood, S. Dak., and First State Bank, Lake Norden, S. Dak.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

First State Bank, Lake Norden, S. Dak., with
and United National Bank, Castlewood, S. Dak. (16470), which had
merged Mar. 15, 1976, under charter and title of the latter bank (16470). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On October 22, 1975, First State Bank, Lake Norden,
S. Dak., and United National Bank, Castlewood, S.
Dak., applied to the Comptroller of the Currency for
permission to merge under the charter and with the
title of the United National Bank.
United National Bank, the charter bank, was organized as a state bank in 1902, converted to a national bank in 1975, and now has assets of $5.2 million
and IPC deposits of $3.3 million. The bank operates no
branch offices. The service area of the charter bank
includes the town of Castlewood, S. Dak., population
523, and its immediate environs which include the surrounding area within an 8- to 10-mile radius.
The charter bank is the only bank domiciled in
Castlewood and competes primarily with two banks located in Watertown, about 15 miles north of
Castlewood. The larger of the two competitors in
Watertown, the largest city in the immediate area, is
the First National Bank of Watertown with deposits of
$39.5 million, a subsidiary of Northwest Bancorporation, Minneapolis. The other competitor, Farmers and
Merchants Bank & Trust, is an independent bank with
total deposits of $45.0 million. Those two banks, because of their size, are able to offer services, such as
greater lending limits, which the United National Bank
at Castlewood, because of its present small capital
base, is unable to extend. Competition between the
charter bank and these competitors is, therefore, substantial.
First State Bank, the merging bank, was organized
as a national bank in 1928, has operated as a state
banking institution since 1965 and now has assets of
$4.5 million and IPC deposits of $3.6 million. The bank
56



$4,664,736
5,190,046
9,854,782

1
1

operates no branch offices. The town of Lake Norden,
in which the bank is located, has a population of approximately 400 inhabitants. The bank's service area
includes Lake Norden and extends approximately 10
miles in all directions from Lake Norden. The economy
of the service area, like that of Castlewood, is almost
exclusively agricultural and there is no major industrial
operation in the Lake Norden area. Competition for the
merging bank is provided by the two banks in Watertown which compete with the charter bank.
There is no significant competition between the charter and merging banks because of the distance
separating the two banks and the existence of natural
barriers. The 19-mile distance between the two banks
and the presence of several intervening lakes establish
two different service areas. Moreover, the banks
involved in the proposed transaction are controlled by
the same individual. The transaction is therefore effectively a corporate reorganization of that individual's
holdings into a single entity which will not result in any
changes of policy or management. Finally, there is no
potential competition between the charter and merging
banks due to South Dakota's restrictive branch banking statutes which provide for home office protection.
Additionally, neither bank is of the size to undertake de
novo branching.
Consummation of the proposed merger may result in
some operational cost efficiencies, and the resulting
bank will have a larger lending limit thereby enabling it
to better serve the banking needs of the populace. The
resulting bank, with assets of $9.7 million and IPC deposits of $6.9 million, will remain considerably smaller
in size than the banks with which it will compete.
Applying the statutory criteria, it is concluded that

the proposed merger would have no adverse competitive effects and is not adverse to the public interest.
Accordingly, this application should be, and therefore
is, approved.
February 13, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The main (and only) office of Applicant in Castlewood
(population 523) is 19 miles from the main (and only)
office of the Bank in Lake Norden (population 393) and
there are competitive banking alternatives located in
the intervening area between the two towns. As of
June 30, 1974, five banks operated six offices in Hamlin County, with the Applicant holding about 11 percent
and the Bank holding about 10 percent of total Hamlin
County deposits. If the merger is approved, the result-

ing bank will be the largest in Hamlin County, holding
about 21 percent of county deposits.
The majority control of both the Applicant and the
Bank is held by the same individual, with the result that
the two banks have had numerous loan participations
during the past year. This factor somewhat mitigates
the anticompetitive effects of the merger.
It appears that the merger would eliminate some
existing competition as well as the potential for
increased competition in the future, and would also
substantially increase concentration among commercial banks in Hamlin County. It thus appears that the
proposed merger would have an adverse effect on
competition, although we note that the two banks are
quite small and Hamlin County is a sparsely populated
area which probably will not experience significant
economic growth anytime soon.

VIRGINIA NATIONAL BANK,
Norfolk, Va., and North American Bank and Trust, Leesburg, Va.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

North American Bank and Trust, Leesburg, Va., with
and Virginia National Bank, Norfolk, Va. (9885), which had
merged Mar. 15, 1976, under charter and title of the latter bank (9885). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On December 23, 1975, North American Bank and
Trust, Leesburg, Va., and Virginia National Bank, Norfolk, Va., applied to the Comptroller of the Currency for
permission to merge under the charter and title of "Virginia National Bank."
Virginia National Bank, Norfolk, Va., the charter
bank, is the lead bank for Virginia National
Bankshares, Inc., a multi-bank holding company that is
the second largest banking organization in the state.
The charter bank, with assets of $1.7 billion and IPC
deposits of $1.2 billion, operates 116 offices throughout the state of Virginia.
North American Bank and Trust, Leesburg, Va., the
merging bank, was established in 1972 under a state
charter and now has assets of $9.6 million and IPC
deposits of $5.4 million. The merging bank primarily
serves the town of Leesburg and the surrounding area
in Loudoun County. Loudoun County is located on the
fringe of the Washington, D. C. Standard Metropolitan
Statistical Area (SMSA) and is predominantly rural in
nature. Approximately one-third of the work force in
Loudoun County commutes to Washington, D. C , for
employment.
North American Bank and Trust is the smallest of
nine banks serving Loudoun County. The two dominant
competitors in its service area are First Virginia Bank/
First National, Purcellville, with deposits of $18 million,




$

8,783,472
1,745,416,361
1,753,137,292

1
118

119

which is a member of First Virginia Bankshares Corporation, and The Peoples National Bank of Leesburg,
with deposits of $28 million, which is a member of Financial General Bankshares, Inc.
The charter bank has no offices in Loudoun County
or within 25 miles of the merging bank. As a result, the
proposed transaction will not lessen any competition
within Loudoun County. In addition, consummation of
the merger will not significantly increase Virginia National Bank's relative position statewide.
Since its establishment in 1972, the merging bank
has been unable to achieve a profitable level of earnings. The bank has been experiencing increasing loan
losses, low liquidity and a deteriorating capital position. The future prospects for the merging bank are not
encouraging. The subject transaction presents a desirable alternative to possible liquidation of the bank or
financial support from regulatory agencies. The charter
bank has sufficient capital, financial resources and
management depth to absorb North American Bank
and Trust without damage to the charter bank's present
financial condition.
Consummation of the proposed transaction will
strengthen competition in Loudoun County. The resulting bank will offer additional banking services to the
community not presently offered by the merging bank,
such as more sophisticated real estate financing and
trust services. Virginia National Bank will not enter this

57

service area in a dominant position and a financially
weak competitor will have been replaced by a more
viable institution.
Applying the statutory criteria, it is concluded that
the proposed merger is in the public interest and this
application is therefore approved.
February 12, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
In sum, the proposed merger would not eliminate any
significant amount of existing competition. It would
abort the theoretical possibility that Applicant would
enter the market through the chartering of a new bank.
On balance, thev proposed merger would have only a
slightly adverse effect on competition.

PEOPLES BANK OF MISSISSIPPI, NATIONAL ASSOCIATION,
Union, Miss., and Clinton National Bank, Clinton, Miss.
Name of bank and type of transaction

Total assets

Banking offices
In
To be
operation operated

Clinton National Bank, Clinton, Miss. (16253), with
and Peoples Bank of Mississippi, National Association, Union, Miss. (16194), which had . . .
merged Mar. 17, 1976, under charter and title of the latter bank (16194). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On October 11, 1975, Clinton National Bank, Clinton,
Miss., and Peoples Bank of Mississippi, National Association, Union, Miss., applied to the Comptroller of
the Currency for permission to merge under the charter and with the title of Peoples Bank of Mississippi,
National Association.
Peoples Bank of Mississippi, National Association,
the charter bank, was organized in 1919 and, with IPC
deposits of $52.3 million and assets of $65.9 million,
operates 11 branches in seven counties east and
northeast of Jackson, Miss. The bank also had pending an application for another branch office in Winston
County. The charter bank's service area is considered
to be the seven counties in which it presently conducts
business: Attala, Grenada, Lauderdale, Neshoba,
Newton, Oktibbeha and Scott.
Competition is provided the charter bank by offices
of 16 different banking institutions, including Grenada
Bank, Grenada, with deposits of $175.8 million; Citizens National Bank of Meridian, with deposits of $58.4
million; Merchants and Farmers Bank, Koscuisko, with
deposits of $43.8 million; and Citizens Bank of
Philadelphia, with deposits of $24.6 million, among
other competitors.
Clinton National Bank, the merging bank, opened for
business on January 2, 1974, and, with IPC deposits of
$3.6 million and assets of $6.4 million, does not operate any branches. The service area of Clinton National
Bank consists of Clinton and its immediate environs
with a population estimated to be in excess of 13,500
persons. The merging bank is the fourth smallest of 11
commercial banks headquartered in Hinds County and
competes with offices of Mississippi's two largest
banks, First National Bank of Jackson, with deposits of
$586.5 million, and Deposit Guaranty National Bank,
Jackson, with deposits of $673.5 million. The merging
bank also competes with Mississippi Bank, Jackson,
with deposits of $76.3 million; First Mississippi National
Bank, Hattiesburg, with deposits of $181.8 million; and

58


$ 5,545,665
68,219,855
73,765,520

1
14
15

Fidelity Bank, Utica, with deposits of $17.6 million,
among other competitors.
There is minimal competition between Peoples Bank
of Mississippi, N.A., and Clinton National Bank because their closest two offices are separated by a distance of approximately 41 miles. Moreover, the merging bank's small size and its lack of experienced bank
management prevents the bank from being a significant competitor of Peoples Ba'nk of Mississippi. The
possible entry by the charter bank into Hinds County is
not so easily discounted. The charter bank has sufficient resources to enter the Hinds County service area
ate novo if the proposed merger is denied; nevertheless, consummation of the merger would not have an
adverse competitive effect. The merging bank would,
at best, provide weak competition for a de novo Hinds
County office of the charter bank if the latter chose that
alternative to enter Hinds County; the merging bank is
without experienced management and, given that
bank's portfolio problems and size, it will be quite
some time (should the merger not be consummated)
before Clinton National is a substantial competitive factor in the Hinds County service area. Further, entry into
Hinds county by Peoples Bank of Mississippi, with resources only a tenth as great as the major banks in the
Jackson area, will not have a dramatic impact on the
various markets for banking services. The state's
largest banks, Frist National Bank of Jackson and Deposit Guaranty Bank, dominate banking in Hinds
County and each operates a branch in Clinton where
the merging bank is located.
Consummation of the proposed merger should
stimulate competition in the service area of the merging bank. The transaction will resolve Clinton National's
management problems. Further, the resulting bank is
likely to retain the charter bank's aggressive competitive traits. In addition to replacing a relatively new,
inexperienced commercial bank with a more established and expansion-minded financial institution, consummation of this transaction will provide Clinton area

residents and businesses with the availability of a substantially increased lending limit, lower service
charges, extended banking loans and "personal banking service."
Applying the statutory criteria it is concluded that the
proposed merger is in the public interest and this application is therefore, approved.
February 11, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The closest offices of Applicant and Bank are approximately 61 miles apart and there are numerous other
banks plus the Metropolitan Jackson Area in the
intervening area. It appears, therefore, that the proposed
acquisition will not eliminate existing competition
to any appreciable extent. As of June 30, 1975, Applicant held approximately 1.03 percent of total state de-

posits and Bank held .10 percent. Thus, the merger of
the two banks will not appreciably increase concentration in commercial banking in the state or in any local
markets therein.
Both of the largest banks in the state have branches
in Clinton, a fast-growing town to approximately 10,000
people. A third bank was established in 1973. The
proposed acquisition can be characterized as a toehold acquisition by Applicant. It appears that Applicant
could have established (assuming state approval) a de
novo branch in Clinton, and the growth rate in the Clinton area suggests that a de novo branch might well be
possible, at least in the near term if not immediately.
Thus, the proposed merger may eliminate some potential competition.
In sum, the proposed merger may have slightly adverse anticompetitive consequences.

PUGET SOUND NATIONAL BANK,
Tacoma, Wash., and Continental Bank, Burien, Wash.
Total assets *

Name of bank and type of transaction

Banking offices
In
To be
operation operated

Continental Bank, Burien, Wash., with
was purchased Mar. 20, 1976, by Puget Sound National Bank, Tacoma, Wash. (12292), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On March 10, 1976, application was made to the
Comptroller of the Currency by Puget Sound National
Bank, Tacoma, Washington ("Assuming Bank") to
purchase the assets and assume the liabilities of Continental Bank, Burien, Wash. ("Selling Bank").
Assuming Bank, with approximately $346 million in
deposits, is the sixth largest bank in the state of
Washington. The Assuming Bank operates through a
34-branch network; all except five of the branches are
located in Pierce County. Two of the branches are located in King County, home of the Selling Bank, and
one of those branches is located approximately 5
miles from a branch office of the Selling Bank. However, because of the restrictions in the branching laws
of the state of Washington, Assuming Bank's further
expansion into King County and the trade area of Selling Bank, as a practical matter, can come only through
acquisition of an existing bank.
Selling Bank was chartered in 1969, and presently
has approximately $18 million in deposits. The trade
area of Selling Bank is presently serviced by 37 offices
of other commercial banks with total deposits of approximately $343 million.
An examination of Continental Bank on January 30,
1976, disclosed that the Selling Bank had been the vic* Asset figures are as of call dates immediately before and after
transaction.




$20,514,344

4

395,792,000
481,871,000

35
39

tim of certain forged notes creating a substantial and
debilitating effect upon its capital accounts. Current
known losses aggregate approximately $1.47 million,
reducing the capital accounts of the Selling Bank to
approximately $70,000.
Pursuant to the provision of the Bank Merger Act, 12
USC 1828(c), the Comptroller of the Currency cannot
approve a purchase and assumption transaction which
would have certain proscribed anticompetitive effects
unless the Office concludes that those anticompetitive
effects are clearly outweighed in the public interest by
the probable effect of the proposed transaction in
adequately meeting the convenience and needs of the
community to be served. Furthermore, the Office of the
Comptroller is directed to also fully consider the financial and managerial resources and future prospects of
the existing and proposed institution. When necessary,
however, to prevent the disruption attendant upon the
probable failure of a bank, the Comptroller can dispense with the uniform standards applicable to usual
acquisition transactions and need not consider reports
relating to the competitive consequences of the transaction ordinarily solicited from the United States Department of Justice and other banking agencies. The
Comptroller is specifically authorized in such exigent
circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the
immediate consummation of the proposed transaction.
The subject proposed transaction is deemed to be
in accord with all pertinent provisions of the National

59

Bank Act and will serve to prevent disruption of banking services to the Burien banking community and potential losses to uninsured depositors. The Assuming
Bank has sufficient financial and marginal resources to
absorb Continental Bank and be a strong competitive
force in Selling Bank's trade area. Approval of the
instant transaction will avert a potential loss of public
confidence in the banking system, and prevent disruption of any banking services to the relevant community.
Although this requisition will eliminate some direct
competition, the Comptroller finds that any anticompetitive effects of the proposal are clearly outweighed
by the probable effect of the resultant bank's ability to
meet the convenience and needs of the community to
be served. For the reasons herein stated, the Assum-

ing Bank's application to purchase the assets and assume the liabilities of Continental Bank is deemed to
be in the public interest and is approved. The Comptroller also finds that the probable failure of Continental Bank requires this Office to act immediately, as contemplated by The Bank Merger Act, to prevent disruption of banking services to the community, and the
Comptroller hereby waives publication of notice, dispenses with the solicitation of competitive factor reports from other agencies, and authorizes the immediate consummation of the proposed transaction.
March 20, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

THE EDISON BANK, NATIONAL ASSOCIATION,
South Plainfield, N.J., and First National State Bank of the Jersey Coast, Spring Lake, N.J.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

First National State Bank of the Jersey Coast, Spring Lake, N.J. (13898), with
and The Edison Bank, National Association, South Plainfield, N.J. (15845), which had
merged Mar. 26, 1976, under charter of the latter bank (15845) and titled "Edison/First
National State Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
On December 12, 1975, First National State Bank of
the Jersey Coast, Spring Lake, N.J., and The Edison
Bank, National Association, South Plainfield, N.J.,
applied to the Comptroller of the Currency for permission to merge under the charter of the latter and with
the title of "Edison/First National State Bank."
The Edison Bank, National Association, the charter
bank, was originated in 1956 as a state bank and now
operates 10 branches with assets of $98.8 million and
IPC deposits of $74.1 million. The service area of the
bank consists of Middlesex County, which has a population of approximately 607,000.
First National State Bank of the Jersey Coast, the
merging bank, is the survivor of a 1974 merger with
First National State Bank of Ocean County. The merging bank, with 11 offices, has assets of $94.2 million
and IPC deposits of $80.8 million. The bank's service
area includes Monmouth County, where it has four offices, and Ocean County where the bank maintains
seven offices. The combined population of the two


60


$ 93,182,054
93,500,271
186,682,325

11
10
21

counties that comprise its service is estimated at
738,000.
Edison Bank, National Association and First National
State Bank of the Jersey Coast are both wholly-owned
subsidiaries of the same multi bank holding company, First National State Bancorporation, Newark,
N.J., which controls six other banks and has aggregate deposits of $1.9 billion. As such, their proposed
merger is a corporate reorganization and would have
no effect on competition.
Applying the statutory criteria, it is concluded that
the proposed merger is not adverse to the public
interest and this application is, therefore, approved.
February 24, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging
sidiaries of the
their proposed
ganization and

banks are both wholly-owned subsame bank holding company. As such,
merger is essentially a corporate reorwould have no effect on competition.

EUCLID NATIONAL BANK,
Euclid, Ohio, and The Continental Bank, Cleveland, Ohio
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

The Continental Bank, Cleveland, Ohio, with
was purchased Mar. 31, 1976, by Euclid National Bank, Euclid, Ohio (15573), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On January 19, 1976, Euclid National Bank, Euclid,
Ohio, applied to the Comptroller of the Currency to
purchase certain assets and assume certain liabilities
of The Continental Bank, Cleveland, Ohio.
Euclid National Bank, the purchasing bank, was organized in 1952 as a state savings and loan association, has operated as a national bank since February
1966, and now has total deposits of approximately
$111 million. The bank operates seven branch offices
throughout Cuyahoga County and one branch office in
neighboring Lake County in addition to its head office
in Euclid, a suburban community which lies in both
Cuyahoga and Lake counties.
The Continental Bank, the selling bank, commenced
commercial banking operations in 1927 as a state
banking institution and now operates 10 offices in
Cuyahoga County. As of September 30, 1975, The
Continental Bank controlled total deposits of $77.1 million and ranked immediately behind the purchasing
bank as eighth largest of the 12 banks in the county.
Although both banks involved in the proposed
merger presently compete in the same relevant banking market, approximated by the Cleveland SMSA, in
only one instance do the subject banks' branches directly compete in the same service area. That competitive situation is, however, greatly mitigated by the restricted capabilities of the selling bank, which severely
limit its competitive posture, and further by the additional benefits accruing to the public through conditions of convenience and needs.
On a pro forma basis, approval of the instant application would have the effect of combining into one
institution the seventh and eighth largest banks in
Cuyahoga County which control approximately 1.4
percent and 1.0 percent of the total deposits in the
county, respectively. The resultant bank would become the sixth largest bank, surpassing The Capital
National Bank, a subsidiary of BancOhio Corporation,
by 0.1 percent. Additionally, it is noted that Euclid National Bank is a subsidiary of Winters National Corporation, Dayton, and the merger of the two subject banks
would not alter the present bank holding company's

* Asset figures are as of call dates immediately before and after
transaction.




$100,204,382
134,748,000
225,689,000

10
8
18

rank as 11th largest multi-bank holding company in
Ohio, controlling approximately 2.4 percent of total
state commercial banking deposits.
Winters National Corporation has committed itself to
add an additional $5 million in capital to the resulting
bank upon consummation of this merger. Also, the
parent bank holding company assures that assistance
will be provided management if the need arises. Consummation of the proposal should therefore resolve the
severe capital and managerial problems of the selling
bank. The combination of the two banks will improve
the ability of the surviving bank to better service the
needs and enhance the convenience of the banking
public by increasing the legal lending limit of the bank,
providing greater access to capital markets, increasing capabilities in international banking and providing
leasing and trust expertise; thereby resulting in a more
viable banking alternative better able to compete with
its five substantially larger competitors in the area, all
five of which are also affiliated with large, multi-bank
holding companies.
In conclusion, while consummation of the instant
proposal would result in the foreclosure of some slight
degree of present competition and preclude probable
future competition between the two banks, the slightly
adverse competitive effects are clearly outweighed by
overriding considerations with respect to convenience
and needs of the community to be served.
Applying the statutory criteria, it is concluded that
the proposed acquisition would have no significant
competitive effects and is not adverse to the public
interest. Accordingly, this application should be, and
therefore is, approved.
March 1, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant and Bank both principally operate in
Cuyahoga County, Ohio, and it is apparent from an
examination of the map contained in the application
that the two banks compete directly with each other. It
is thus clear that the proposed acquisition will eliminate direct competition between the parties.
The Cuyahoga County market is dominated by five
large banking institutions — Cleveland Trust Company, National City Bank, Central National Bank, Union
Commercial Bank and Society National Bank — which
collectively control 94.9 percent of deposits and 95.1
percent of loans and operate 85.7 percent of the bank-

61

ing offices in Cuyahoga County. Applicant ranks sixth
and Bank ranks seventh in size in Cuyahoga County.
However, Applicant and Bank combined would have
only a 2.9 percent share of deposits and 2.5 percent
share of loans in the market. Thus, the proposed ac-

quisition will not contribute significantly to the already
existing unhealthy degree of concentration in commercial banking in the area.
In short, the proposed acquisition will have some
adverse competitive effects.

THE FIRST NATIONAL BANK OF ALLENTOWN,
Allentown, Pa., and The Kutztown National Bank, Kutztown, Pa.
Total assets

Name of bank and type of transaction

Banking offices
In
To be
operation operated

The Kutztown National Bank, Kutztown, Pa. (5102), with
and The First National Bank of Allentown, Allentown, Pa. (373), which had
merged Mar. 31, 1976, under charter and title of the latter bank (373). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On September 15, 1975, The Kutztown National Bank,
Kutztown, Pa., and The First National Bank of Allentown, Allentown, Pa., applied to the Comptroller of the
Currency for permission to merge under the charter
and title of The First National Bank of Allentown.
The First National Bank of Allentown, the charter
bank, was established in 1855 and is the largest of two
banks headquartered in Allentown with IPC deposits of
$420 million and assets of $479 million. The bank operates 16 offices with four additional approved but unopened new branch sites. Allentown is located approximately 55 miles northwest of Philadelphia in the
Lehigh Valley which encompasses the three contiguous cities of Allentown, Bethlehem and Easton which
have a combined population of about 494,000 persons. The area is economically progressive with an
abundance of both light and heavy industry. The charter bank primarily serves that three-city area and the
surrounding area in Lehigh and Northampton counties.
Although the only two banks headquartered in Allentown are the charter bank and The Merchant's National
Bank of Allentown, with deposits of $308 million, competition is provided by branches of banks headquartered in other areas, such as Girard Bank, Philadelphia, with deposits of $2.8 billion; Industrial Valley
Bank and Trust Company, Jenkintown, with deposits of
$783 million; Union Bank and Trust Company of Eastern Pennsylvania, Bethlehem, with deposits of $142
million, and First Valley Bank, Bethlehem, with deposits
of $448 million. Other banks which have recently expanded into Allentown include First Pennsylvania
Bank, N. A., Philadelphia, with deposits of $4.2 billion;
American Bank and Trust Co. of Pennsylvania, Reading, with deposits of $951 million; and Bank of
Pennsylvania, Reading, with deposits of $283 million.
The Kutztown National Bank, the merging bank, was
established in 1897 and operates as a unit bank with
IPC deposits of $23.6 million and assets of $27 million.
Kutztown, in Berks County, is located approximately 16


62


$ 28,317,000
512,774,000
541,091,000

1
18
19

miles southwest of Allentown and is largely residential
and agricultural with an estimated population of 4,100
persons. The service area of the merging bank
includes Kutztown and the immediately surrounding
area. Competition for the merging bank is provided by
Farmers Bank of Kutztown with deposits of $20.5 million and a recently opened branch of American Bank
and Trust Company, Reading.
Because some Kutztown residents work in Allentown
and Lehigh County, the charter and merging banks do
have some mutual customers. However, because of
the intervening distance and because of the merging
bank's local orientation, there is minimal competition
between them. First National Bank of Allentown draws
few substantial depositors and loan customers from
the Kutztown vicinity.
The resulting bank will be able to offer a much wider
range of services to the Kutztown residents than is now
provided by Kutztown National Bank, such as
liberalized and more complete personal and commercial loan programs, compound interest from day of
deposit to day of withdrawal, higher interest rates on
savings, increased lending capacity for commercial
and industrial loans and expanded trust and estate
planning services.
Applying the statutory criteria, it is concluded that
although there will be a slight lessening of competition
the proposed merger is in the public interest and this
application is, therefore, approved.
February 2, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Although the main offices of the parties are about 17
miles apart, three of Applicant's branches in southwestern Lehigh County are within 10 to 12 miles of
Bank. However, there are several competitive alternatives in the intervening areas. Thus, on balance it appears that the proposed merger would eliminate some
existing competition between the parties.
Applicant is permitted by state law to enter de novo

the market served by Bank and it has the resources to
do so. Commercial banking in Berks County is highly
concentrated, with four banks controlling 88 percent of
deposits as of 1974. Bank ranked seventh of the 16
banks which serve Berks County, holding 2 percent of

total deposits held in the county. However, in view of
the existence of other significant potential entrants and
the modest market position of Bank, it appears that the
proposed merger would not eliminate substantial potential competition.

THE NEW FARMERS NATIONAL BANK OF GLASGOW,
Glasgow, Ky., and Hiseville Deposit Bank, Hiseville, Ky.
Total assets

Name of bank and type of transaction

Banking offices
In
To be
operation operated

Hiseville Deposit Bank, Hiseville, Ky., with
and The New Farmers National Bank of Glasgow, Glasgow, Ky. (13651), which had
merged Apr. 1, 1976, under charter and title of the latter bank (13651). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On December 22, 1975, Hiseville Deposit Bank,
Hiseville, Ky., and The New Farmers National Bank of
Glasgow, Glasgow, Ky., applied to the Comptroller of
the Currency for permission to merge under the charter and title of "The New Farmers National Bank of
Glasgow."
The New Farmers National Bank of Glasgow, the
charter bank, was established in 1932 and, with assets
of $36 million and IPC deposits of $27.7 million, now
operates three offices in Glasgow. Glasgow is located
in Barren County approximately 100 miles south of
Louisville, Ky., and has an estimated population of
11,000. The economy of Barren County is supported
primarily by farming, however industrial employment
opportunities are increasing in the county, particularly
in Glasgow. The charter bank's service area includes
all of Barren County; it is the second largest of five
banks headquartered in the county.
Hiseville Deposit Bank, the merging bank, was established in 1903 and now operates as a unit bank with
assets of $4.3 million and IPC deposits of $3.6 million.
Hiseville is a small farming community with a population of about 200, located 9 miles northeast of Glasgow. The merging bank's service area is limited to
Hiseville and the immediately surrounding agricultural
area.
Competition for both banks is provided by the other
three banks located in Barren County including Citizens Bank & Trust Company, Glasgow, with deposits
of $37.5 million; The Peoples Bank, Cave City, with
deposits of $5.9 million; and Park City State Bank, Park
City, with deposits of $2.4 million. Competition is also
provided by the banks located just outside Barren
County such as Horse Cave State Bank, Horse Cave,
with deposits of $14.9 million; Edmonton State Bank,
Edmonton, with deposits of $9.9 million; Bank of Summer Shade, Summer Shade, with deposits of $5.2 million; the Smith Grove branch of The American National
Bank and Trust Company of Bowling Green, with total
deposits of $69.6 million; and the Fountain Runn




$ 4,939,160
40,689,444
47,103,621

1
3
4

agency branch of Gamaliel Bank, Gamaliel, with total
deposits of $9.5 million.
The service areas of the charter and merging banks
do overlap, and consummation of the proposed transaction will result in a slight lessening of competition.
However, the extent of any loss of competition in Barren County is minimized by the fact that Hiseville Deposit Bank has had little competitive impact outside of
its own service area. In addition, the merger will not
place the resulting bank in a dominant position and
there are sufficient banking alternatives in the county.
Consummation of the proposed transaction will result in new and expanded banking services for the
Hiseville community. The resulting bank will offer agricultural and installment lending programs, bank
credit card services and trust services, none of which
are presently provided by the merging bank.
Recently, the chief executive officer of Hiseville Deposit Bank died suddenly, leaving a void in the bank's
leadership. Because of the size and location of the
merging bank, it will have difficulty attracting qualified
successor management. The subject proposal will
solve that problem.
Applying the statutory criteria, it is concluded that
although the proposed merger will result in a slight
lessening of competition, the Hiseville community will
receive increased and more convenient banking services; therefore, this application is approved.
February 24, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
In sum, this proposed merger will eliminate some existing competition and will slightly increase concentration
in commercial banking, and will eliminate one of the
five banks currently serving the area. Be that as it may,
in view of the small size of Bank and the community it
serves, the low population density of the market and
the managerial difficulties suffered by Bank, we conclude that the overall competitive effect of the proprosed
merged would be slightly adverse.

63

GREENVILLE NATIONAL BANK,
Greenville, Ohio, and The Citizens Bank Company, Ansonia, Ohio
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
The Citizens Bank Company, Ansonia, Ohio, with
was purchased Apr. 10, 1976, by Greenville National Bank, Greenville, Ohio (13944), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On October 29, 1975, Greenville National Bank,
Greenville, Ohio, applied to the Comptroller of the Currency for permission to purchase the assets and assume the liabilities of the Citizens Bank Company, Ansonia, Ohio.
Greenville National Bank, the purchasing bank, was
chartered in 1934 and is presently the second largest
of nine banks located in Darke County, Ohio. The bank
operates three banking offices—two in Greenville, and
one in Gettysburg, 7 miles to the east. The purchasing
bank has received approval to open an additional office in Darke County. The bank has assets of approximately $34.9 million and total IPC deposits of approximately $26.9 million.
The Citizens Bank Company, the selling bank, was
organized in 1904 and operates one banking office.
With assets of $8.2 million and total IPC deposits of
$6.4 million, it is the smallest commercial bank in
Darke County.
Both banks are located in Darke County, in southwestern Ohio, population about 50,000. The service
area of the purchasing bank is the Greenville - Gettysburg area which has a population of approximately
40,000 persons and, despite the presence of some
manufacturers, is primarily an agricultural area. The
selling bank is located in Ansonia, 8 miles north of
Greenville and has a population of 1,100. With the exception of a few small stores, the service area of the
selling bank is entirely reliant upon agriculture for its
economic base.
Both the selling and purchasing bank compete with
seven banks located in Darke County. They are: Second National Bank of Greenville, Greenville, Ohio, with
total deposits of $33.1 million; The Farmers State Bank,
Union City, Ohio, with total deposits of $17.8 million;
Peoples National Bank, Versailles, Ohio, with total deposits of $16.1 million; Arcanum National Bank, Arcanum, Ohio, with total deposits of $14.8 million; The
Farmers State Bank and Trust Company, New Madison, Ohio, with total deposits of $10.2 million; The Citizens State Bank, Greenville, Ohio, with total deposits
of $9.3 million; and The Osgood State Bank, Osgood,
Ohio, with total deposits of $7.1 million. Competition is
also provided by three savings and loan institutions:
Greenville Federal Savings and Loan Association,

$8,473,000

1

35,096,000
43,797,000

4

Greenville, Ohio, with total deposits of $41.6 million;
Arcanum Federal Savings and Loan Association, Arcanum, Ohio, with total deposits of $17.7 million; and
Versailles Savings and Loan Company, Versailles,
Ohio, with total deposits of $5.9 million.
Because the purchasing and selling banks' head offices are located approximately 8 miles apart there is
some competitive overlap in trade areas and there is
some direct competition between them. Should the
proposed transaction take place, the resulting bank
would become the largest bank in Darke County giving
the applicant approximately 26 percent of the county's
total deposits. The next largest bank in Darke County,
Second National Bank of Greenville, has approximately
24 percent of the total deposits in the county. A total of
six banks will remain in Darke County to provide alternative banking services in addition to the resulting
bank. Furthermore, inasmuch as the selling bank is the
smallest bank in Darke County, its elimination will not
greatly alter the competitive structure of the banking
market within the county.
Any slightly adverse competitive effects experienced
as a result of this transaction will be outweighed by the
benefits to the community which will accrue in terms of
its convenience and needs. The lending limit of the resulting bank will be much larger than the current limit
of the selling bank, which is considered inadequate to
meet the requirements of the larger agricultural farms
located in the trade area. Other benefits that will result
from the consummation of the proposed transaction
will be an increased capacity for consumer lending,
introduction of a bank credit card plan and automated
bookkeeping.
It is noted that the selling bank's chief executive officer is 23 years old with only 1 year of banking experience, four of its six directors are at least 75 years old,
and there is no provision for successor management.
Management of the purchasing bank is considered
good and, if the proposed acquisition occurs, the resulting bank will provide the Ansonia area with those
qualities now found lacking in the selling bank's management.
The statutory criteria having been met, it is concluded that the proposed transaction is in the public
interest. The application is, therefore, approved.
March 2, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL

* Asset figures are as of call dates immediately before and after
transaction.

64



There are presently nine banks in Darke County, of
which Second National Bank of Greenville is the

largest (total deposits - $30 million; IPC demand deposits $11.2 million, as of June 30, 1975) with about 22
percent of total county deposits. Applicant is the second largest with about 21 percent of total county deposits. Bank ranks eighth, with about 5 percent of total
county deposits. The remaining six banks in the county
are relatively small, single-office banks. The proposed
acquisition, accordingly, would give Applicant about
26 percent of total county deposits, woutd make Appli-

cant the largest bank in the county and would give the
two largest banks in the county control over almost 50
percent of total county deposits.
Accordingly, although Bank is rather small, it appears that the proposed acquisition will have an adverse effect on competition inasmuch as it will eliminate some direct competition and will also contribute
to increased concentration of commercial banking in
Darke County.

LANDMARK BANK OF POMPANO BEACH, N.A.,
Pompano Beach, Fla., and The Security State Bank of Pompano Beach, Pompano Beach, Fla.
Banking offices

Name of bank and type of transaction

Total assets*
In
To be
operation operated

The Security State Bank of Pompano Beach, Pompano Beach, Fla., with
was purchased Apr. 19, 1976, by Landmark Bank of Pompano Beach, N. A., Pompano Beach, Fla.
(16574), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
Landmark Bank of Pompano Beach, N.A. (a proposed
de novo bank), Pompano Beach, Fla. ("Assuming
Bank") has applied to the Comptroller of the Currency
for permission to purchase substantially all of the assets and assume substantially all of the liabilities of
The Security State Bank of Pompano Beach, Pompano
Beach, Fla., ("Selling Bank") under the charter and
with the title of the former. This application has been
processed pursuant to the emergency provisions of
the Bank Merger Act of 1966, contained within 12 USC
1828(c).
Inasmuch as the Assuming Bank is a proposed new
bank, it has no operating history. Selling Bank was organized in 1973 and currently has total deposits of
$4.4 million. On a pro forma basis, the surviving banking institution will become a wholly-owned subsidiary
of Landmark Banking Corporation, Fort Lauderdale,
Fla. ("Landmark"). Landmark is presently the eighth
largest bank holding company in the state of Florida,
with 16 banking subsidiaries controlling total deposits
of $744.3 million, representing approximately 3 percent of total commercial bank deposits in Florida.
In the relatively short operating history of the Selling
Bank, it has experienced an unusually rapid turnover
of management personnel, and has suffered substantial loan losses that have had a seriously adverse effect upon the bank's capital structure. Additionally,
Selling Bank has not been able to augment its eroded
capital position due to a trend of net operating losses.
In view of these and other relevant factors of record, it
is the conclusion of this Office that, absent the subject
proposal, the failure of Selling Bank is probable.

* Asset figures are as of call dates immediately before and after
transaction.



$5,007,000

1

945,000
5,242,000

0
1

Pursuant to the provisions of the Bank Merger Act of
1966, 12 USC 1828(c), the Comptroller of the Currency
cannot approve a purchase and assumption transaction which would have certain proscribed anticompetitive effects unless the Office concludes that the anticompetitive effects are clearly outweighed in the public interest by the probable effect of the proposed
transaction in adequately meeting the convenience
and needs of the community to be served. Furthermore, the Office of the Comptroller is also directed to
fully consider the financial and managerial resources
and future prospects of the existing and proposed
institution. Whenever necessary, however, to successfully prevent the disruption attendant upon the probable
failure of a bank, the Comptroller can dispense
with the uniform standards applicable to usual acquisition transactions and need not consider the reports relating to the competitive consequences of the transaction ordinarily solicited from the United States Department of Justice and other banking agencies. The
Comptroller is specifically authorized in such exigent
circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the
immediate consummation of the proposed transaction.
The subject proposal is deemed to be in accord with
all pertinent provisions of the National Bank Act and
will Serve to prevent disruption of banking services to
the Pompano Beach banking community and any potential losses to uninsured depositors.
Because of the proposed affiliation with Landmark,
the surviving institution's financial and managerial resources and future prospects are enhanced and appear favorable. Of vital importance, consummation of
this proposal will insure the continued, uninterrupted
provision of banking services to the present customers
of The Security State Bank of Pompano Beach, thereby
maintaining the confidence of the public in the banking
system.
65

Applying the statutory criteria contained within 12
USC 1828(c), the Comptroller of the Currency concludes that an emergency situation exists that requires
expeditious action in order to prevent the probable
failure of the Selling Bank. For the reasons herein
stated, the Assuming Bank's application to purchase
the assets and assume the liabilities of The Security

State Bank of Pompano Beach is judged to be in the
public interest and should be, and hereby is, approved.
April 15, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

THE FIRST NATIONAL BANK OF GREENVILLE,
Greenville, Ala., and The Citizens Bank of Georgiana, Georgiana, Ala.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

The Citizens Bank of Georgiana, Georgiana, Ala., with
and The First National Bank of Greenville, Greenville, Ala. (5572), which had
merged Apr. 30, 1976, under charter and title of the latter bank (5572). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On November 18, 1975, The Citizens Bank of Georgiana, Georgiana, Ala., and The First National Bank of
Greenville, Greenville, Ala., applied to the Comptroller
of the Currency for permission to merge under the
charter and with the title of the latter.
The First National Bank of Greenville, the charter
bank, was established September 10, 1900, and now
has total commercial deposits of approximately $31
million, which represent approximately 57 percent of
total deposits in Butler County. The bank is domiciled
in the city of Greenville and currently operates as a unit
bank.
In 1930, the city of Georgiana, Ala., had two banking
institutions; however, both failed and the town was left
without local banking service. Consequently, the management and shareholders of the charter bank sought
permission to establish an office in Georgiana, but
Alabama's restrictive state branching statutes in effect
at the time forbade the establishment of a branch office. Utilizing a portion of the capital funds of the charter bank, principals of the charter bank became organizers of The Citizens Bank of Georgiana, the merging bank, which opened as a state-chartered banking
institution in 1931. The two banks are affiliates as defined by 12 USC 221a. From that beginning, the two
banks have continued to operate as affiliates with considerable directorate and shareholder interlocks. To
cite but one case-in-point, the same person serves as
president of both the charter and merging banks.
On March 10, 1975, the Alabama State Legislature
made provision for:
Any bank, either incorporated or unincorporated,
whose principal place of business is located in
Butler County shall have the power to establish, to
maintain, and to operate within the limits or bound-

66



$ 7,858,133
35,702,450
43,217,737

aries of such county one or more branches or
branch banks. . . .
The purpose of the instant proposal is to provide the
means whereby The Citizens Bank of Georgiana may
become a more integral part of the charter bank, as
opposed to the merging bank continuing its present
status as an affiliate. Consummation of the subject
proposal will provide for certain economies of scale,
permit consolidation of some banking services and,
generally, improve and expand banking services
available to the populace of Butler County.
It is recognized that approval of this proposal would
have the effect of eliminating one of three banking alternatives domiciled in Butler County, Ala. However,
the charter bank competes with 13 banking offices,
excluding the merging bank, in its service area which
includes portions of seven neighboring counties.
Moreover, due to the aforementioned long-standing affiliation between the charter and merging banks, and
the approximately 20 miles which separate the two
banks, neither bank actively solicits business from the
primary service area of the other.
Applying the statutory criteria, it is concluded that
the proposed merger would have no significantly adverse competitive effects and is not adverse to the
public interest. Accordingly, this application should be,
and therefore is, approved.
March 8, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Both parties to this proposed merger operate under
the same majority stockholder and director control,
one branch having been initially created and
capitalized by the other. In short, the merger proposal
is essentially a corporate reorganization. Accordingly,
it appears that the proposal will have no effect upon
competition.

THE HUNTINGTON NATIONAL BANK OF COLUMBUS,
Columbus, Ohio, and The Pickerington Bank, Pickerington, Ohio
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
The Pickerington Bank, Pickerington, Ohio, with
and The Huntington National Bank of Columbus, Columbus, Ohio (7745), which had
merged May 1, 1976, under charter and title of the latter bank (7745). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On January 5, 1976, The Pickerington Bank, Pickerington, Ohio, and The Huntington National Bank of
Columbus, Columbus, Ohio, applied to the Comptroller
of the Currency for permission to merge under the
charter and title of "The Huntington National Bank of
Columbus."
The Huntington National Bank of Columbus, the
charter bank, was organized in 1866 and presently
operates 33 offices with assets of $822 million and IPC
deposits of $531 million. The charter bank is the lead
bank for Huntington Bancshares, Inc., Columbus,
which has 11 other affiliated banks, and is the state's
eighth largest bank holding company.
The primary service area for the charter bank is
Franklin County, Ohio. Columbus, the principal city in
Franklin County, is the state capital and second largest
city in Ohio with a population of approximately
540,000. The economy of Franklin County is highly diversified and is supported by a mix of manufacturing,
service and transportation industries.
The charter bank is the second largest of eight
banks in Franklin County and competes primarily with
other commercial banks located in the Columbus Metropolitan Area, including Ohio National Bank, Columbus, with deposits of $974 million, a member of BaneOhio Corporation; The City National Bank and Trust
Company of Columbus, with deposits of $544 million, a
member of First Bank Group of Ohio, Inc.; and The
Ohio State Bank, Columbus, with deposits of $103 million, a member of BancOhio Corporation.
The Pickerington Bank, the merging bank, was established in 1910 and currently has assets of $9.5 million and IPC deposits of approximately $7.5 million.
The merging bank operates only one branch in Pickerington in addition to its main office. Pickerington is a
small rural community with a population of about 700
persons, located approximately 18 miles southeast of
downtown Columbus. The service area of the merging
bank is confined to Pickerington and the immediately
surrounding area in northwest Fairfield County. Historically, the service area has been almost entirely residential and agricultural, with very little industry.
Fairfield County is adjacent to Franklin County but,
because of Ohio's branching laws, the charter bank
had been unable to expand into the merging bank's
service area through branching. However, portions of
the northwest area of Fairfield County were recently
annexed into the Columbus Standard Metropolitan
Statistical Area (SMSA). As a result, the proposed




$

8,999,000
872,964,000
881,175,000

2
32
34

merger is now permissible under Ohio's branching
laws.
The merging bank is the only bank headquartered in
Pickerington, and is the fifth largest of eight banks in
Fairfield County. Within the last 2 years, several
Columbus-based financial institutions have opened offices in the merging bank's service area, including
Ohio National Bank, noted above, and three savings
and loan associations. Other competition for the merging bank is provided by The Millersport Bank Company, Millersport, with deposits of $6 million; The Hocking Valley National Bank, Lancaster, with deposits of
$36 million, a member of BancOhio Corporation; The
Farmers & Citizens Bank of Lancaster, with deposits of
$45 million; and The Fairfield National Bank, Lancaster,
with deposits of $36 million.
Consummation of the proposed transaction will result in eliminating one independent bank serving Fairfield County. However, the impact of any loss of competition is greatly minimized by the fact that the merging bank, because of its limited resources, has not
been a strong competitor in the county. Additionally, it
is unlikely that the merging bank will be able to offer
the level of services needed to compete effectively
with the substantially larger Columbus-based
institutions which have recently branched into its service area. Also, the number of financial institutions now
in the area militates against the charter bank's successful de novo branching into the immediate Pickerington area; but, by consummation of the subject
transaction, a new vigorous competitor will enter the
community.
Furthermore, the resulting bank will offer the following services not presently available to the customers of
the Pickerington Bank, a full line of checking accounts,
such as overdraft checking; computerized savings accounts with higher effective interest rates; 24-hour automatic teller machines; lower minimum amounts on
certificates of deposit; a bank credit card program;
and real estate mortgages with lower down payments
and longer terms.
The subject merger will not change the charter
bank's deposit ranking in Franklin County and the parent holding company, Huntington Bancshares, Inc.,
will retain the same relative competitive position.
Applying the statutory criteria, it is concluded that
the proposed merger will result in some slight degree
of loss of competition, but the community of Pickerington will benefit by increased banking services. It
is the opinion of this Office that any slightly anticompetitive effects of the subject proposal are clearly out-

67

weighed by considerations of convenience and needs
and considerations relating to financial and managerial
resources. Accordingly, the proposal is deemed to be
in the public interest and should be, and hereby is,
approved.
March 29, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Fairfield County (population 80,000) is in central Ohio
and borders Franklin County in which Columbus is
situated. The Columbus SMSA embraces Franklin,
Fairfield and three other counties. Fairfield County is
now part of the Columbus SMSA. Pickerington, the
situs of Bank, is in the northeastern portion of Fairfield
County and is located approximately midway (about
18 miles from each) between Lancaster, the county
seat, and downtown Columbus. The Pickerington area
has been growing more rapidly than the remainder of
Fairfield County; its population increased by over 50
percent between 1960 and 1970, to about 4,800, and
is expected to almost double to about 8,800 by 1980.
Much of that growth is due to the area becoming a
residential suburb of Columbus.
Applicant has two offices located 6 and 7 miles, respectively, from the head office of Bank; one of these
offices appears to be only 2.5 miles from Bank's
branch office. It appears that Applicant derives 0.5
percent of its total deposits and loans from the principal service area of Bank and, conversely, that Bank
derives 17 percent of the total deposits and 15 percent
of its total loans from the principal service area of Applicant. Thus, although the dollar amounts involved are
relatively small, it is nonetheless obvious that the proposed acquisition will eliminate existing competition
between the merger parties.

The Columbus banking market is highly concentrated with three of the 13 banking organizations
(which operate 15 banks) serving the area accounting
for 95 percent of the total deposits. It appears that Applicant ranks second with 25.6 percent of total deposits, with the largest bank holding 45.7 percent of
total deposits, and that Bank ranks 14th among the 15
banks, with a market share of 0.4 percent. Thus, the
proposed acquisition will increase Applicant's market
share to 26 percent and thus will worsen an already
badly concentrated situation. It should be noted that
the 10 banks which collectively share with Bank the 5
percent of total deposits left over from the three dominant banks are each large enough to be potential candidates for merger with Bank, and that a merger between any of the 10 banks and Bank would be far
preferable to the proposed merger between Applicant and Bank.
Applicant currently has no branches in Fairfield
County. However, the extension of the corporate limits
of Columbus in 1974 means that Applicant is now free
to branch into Pickerington, Bank's headquarters.
Indeed, Ohio National, the largest bank in the Columbus banking market, recently received approval to
open a branch in Pickerington and is in the process of
constructing it. The rapid growth in Pickerington, and
its projected continuation, suggest that Applicant
might well decide to enter the area de novo absent this
proposed acquisition.
In sum, the proposed acquisition, although it
involves the acquisition of a relatively small bank, will
nonetheless have an adverse effect upon both existing
and potential competition and will contribute to the unhealthy degree of concentration which characterizes
the Columbus banking market.

THE FIRST NATIONAL BANK OF STONE HARBOR,
Stone Harbor, N.J., and Independent National Bank, Willingboro, N.J.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Independent National Bank, Willingboro, N.J. (16092), with
and The First National Bank of Stone Harbor, Stone Harbor, N.J. (12978), which had
merged May 3, 1976, under charter of the latter bank (12978) and title "Independent National Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
On July 15, 1975, Independent National Bank, Willingboro, N.J., and The First National Bank of Stone
Harbor, Stone Harbor, N.J., applied to the Comptroller
of the Currency for permission to merge under the
charter of First National Bank of Stone Harbor and with
the title "Independent National Bank."
The First National Bank of Stone Harbor, the charter
bank, was established in 1926 and now operates three
offices in Cape May County with IPC deposits of approximately $16.3 million and total assets of approximately $3.1 million. The primary service area of the

68


$15,752,751
37,263,361
53,016,112

bank is located in the mideastem portion of Cape May
County which is a summer resort and retirement area
with an estimated population of 8,784 persons. The entire county of Cape May has an estimated population
of 59,000 persons.
Competition for the charter bank is provided by an
office of First National Bank of South Jersey,
Pleasantville, with deposits of $387 million, which recently acquired The Cape May County National Bank,
Ocean City. Coastal State Bank, Ocean City, with deposits of $28.9 million, has an application pending for
a branch in the primary service area of the charter
bank. Additional competition in Cape May County is

provided by First National Bank of Cape May Court
House, with deposits of $46.8 million; Marine National
Bank, Wildwood, with deposits of $54.5 million; Union
Trust Company of Wildwood, with deposits of $32.3
million; and Citizens United Bank, N. A., Vineland, with
deposits of $106 million, which is a member of Citizens
Bankcorp.
Independent National Bank, the merging bank, was
organized in 1973 and has IPC deposits of $6.5 million
and assets of $10.2 million. The merging bank's service area is located in the northwestern portion of Burlington County which is an economically diversified
area with considerable growth potential and has an estimated population of 323,123 persons.
Competition for the merging bank is provided by offices of New Jersey National Bank, Trenton, with deposits of $625 million, which is a member of New Jersey National Corporation; First National State Bank/
Mechanics, Burlington Township, with deposits of $121
million, which is a member of First National State Bancorporation; Fidelity Bank and Trust Company of New
Jersey, Pennsauken, with deposits of $62.8 million;
Bank of West Jersey, Delran, with deposits of $34.5
million, which is a member of Fidelity Union Bancorporation; Friendly National Bank of New Jersey, Cinnaminson, with deposits of $22.2 million; and First Na-




tional Bank and Trust Company of Beverly, Edgewater
Park, with deposits of $21.4 million. Competition in the
service area is also provided by offices of the Howard
Savings Bank, Newark, with deposits of $1.3 billion.
There is negligible competition between the merging
banks because of the large distance between them.
The closest offices of these two banks are 63 miles
apart.
Consummation of the proposed merger will stimulate
competition in the service area of the merging bank
because the resulting branch in Willingboro will have a
larger lending limit and be an overall stronger competitor to the other banks in that market. The proposed
merger will also help to alleviate a management succession problem at Independent National Bank.
Applying the statutory criteria, it is concluded that
the proposed merger is in the public interest and the
application is, therefore, approved.
February 10, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
We have reviewed this proposed transaction and conclude that it would not have a substantial competitive
impact.

THE CHASE MANHATTAN BANK (NATIONAL ASSOCIATION),
New York, N.Y., and Chase Manhattan Bank of Long Island (National Association), Melville, N.Y., and Chase Manhattan Bank of the Mid-Hudson (National Association), Saugerties, N.Y., and Chase Manhattan Bank of Central New
York (National Association), Syracuse, N.Y., and Chase Manhattan Bank of Eastern New York (National Association), Albany, N.Y., and Chase Manhattan Bank of the Southern Tier (National Association), Binghamton, N.Y., and
Chase Manhattan Bank of Greater Rochester (National Association), Calendonia, N.Y., and Chase Manhattan Bank
of Western New York (National Association), Buffalo, N.Y., and Chase Manhattan Bank of Northern New York (National Association), Canton, N.Y.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Chase Manhattan Bank of Long Island (National Association), Melville, N.Y. (15922), which
merged Mar. 22, 1976, with
and Chase Manhattan Bank of the Mid-Hudson (National Association), Saugerties, N.Y. (1040),
which merged Apr. 2, 1976, with
and Chase Manhattan Bank of Central New York (National Association), Syracuse, N.Y.
(16047), which merged Apr. 9, 1976, with
and Chase Manhattan Bank of Eastern New York (National Association), Albany, N.Y.
(16203), which merged Apr. 16, 1976, with
and Chase Manhattan Bank of the Southern Tier (National Association), Binghamton, N.Y.
(16379), which merged Apr. 23, 1976, with
and Chase Manhattan Bank of Greater Rochester (National Association), Caledonia, N.Y.
(16050), which merged May 3, 1976, with
and Chase Manhattan Bank of Western New York (National Association), Buffalo, N.Y. (13952),
which merged May 7, 1976, with
and Chase Manhattan Bank of Northern New York (National Association), Canton, N.Y. (3696),
which merged May 21, 1976, with
and The Chase Manhattan Bank (National Association), New York, N.Y. (2370), which had
merged under charter and title of the latter bank (2370). The merged bank at date of merger
had

COMPTROLLER'S DECISION
On January 9, 1976, the following banks applied to the
Comptroller of the Currency for permission to merge
with The Chase Manhattan Bank (National Association), New York, N.Y., under its charter and title: Chase
Manhattan Bank of Long Island (National Association),
Melville, N.Y.; Chase Manhattan Bank of the MidHudson (National Association), Saugerties, N.Y.;
Chase Manhattan Bank of Eastern New York (National
Association), Albany, N.Y.; Chase Manhattan Bank of
Central New York (National Association), Syracuse,
N.Y.; Chase Manhattan Bank of the Southern Tier (National Association), Binghamton, N.Y.; Chase Manhattan Bank of Greater Rochester (National Association),
Caledonia, N.Y.; Chase Manhattan Bank of Western
New York (National Association), Buffalo, N.Y.; and
Chase Manhattan Bank of Northern New York (National
Association), Canton, N.Y.
The proposed merger represents a corporate reor-


70


$

27,867,484

6

28,546,044

9

18,019,231

6

12,063,811

4

6,843,472

2

25,631,563

7

30,910,986

9

20,445,027
25,409,953,855

1
227

25,489,462,000

270

ganization which would merely combine nine existing
subsidiary banks of Chase Manhattan Corporation into
a single institution that would continue under the ownership of the holding company. The resulting bank will
continue to operate all existing offices of the charter
and merging banks.
Applying the statutory criteria, it is concluded that
the proposed merger is merely part of an internal corporate reorganization which will have no affect upon
competition in New York State. This application is,
therefore, approved.
February 20, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging banks are all wholly-owned subsidiaries
of the same bank holding company. As such, their
proposed merger is essentially a corporate reorganization and would have no effect on competition.

THE CITIZENS NATIONAL BANK IN GASTONIA,
Gastonia, N.C., and Union Trust Company of Shelby, Shelby, N.C.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Union Trust Company of Shelby, Shelby, N.C, with
and The Citizens National Bank in Gastonia, Gastonia, N.C. (13779), which had
merged June 1, 1976, under charter of the latter bank (13779) and title "Independence
National Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
On November 26, 1975, The Citizens National Bank in
Gastonia, Gastonia, N.C, applied to the Comptroller of
the Currency for permission to merge with.Union Trust
Company of Shelby, Shelby, N.C, under the charter of
the Citizens National Bank in Gastonia and with the title
"Independence National Bank."
The Citizens National Bank in Gastonia, the charter
bank, was chartered in 1933, and at present operates
12 offices: six branches in Gastonia and five branches
in Gaston County. Citizens National Bank has assets of
$115 million and IPC deposits of approximately $95
million which make it the 16th largest bank in North
Carolina.
The charter bank serves Gaston County, a relatively
well developed area, which is coextensive with the
Gastonia SMSA. The principal manufacturing activity,
textile and textile related production, generated 59
percent of the county's 1973 payroll. The Gaston
County textile industry has recently rebounded from a
recessionary period during which there was high unemployment.
Citizens National Bank competes directly with nine
commercial banks, three of which are among the four
largest banks in North Carolina. Competitors include
Wachovia Bank and Trust Co., N.A., with deposits of
$2.64 billion; First Union National Bank, with deposits
of $1.45 billion; and First-Citizens Bank and Trust Co.,
with deposits of $1.05 billion. Forty-two percent of the
banking offices in Gaston County are maintained by
those three banks. Competition is also provided by
seven savings and loan associations and 18 loan and
finance companies.
Union Trust Co. of Shelby, the merging bank, was
chartered in 1922 and consolidated with Cleveland
Bank and Trust Co. around 1930. It presently operates
11 branches in the Cleveland - Rutherford County area
and has received approval to open a 12th branch. The
economy in Cleveland and Rutherford counties is predominately agricultural and is less dependent on the
textile industry than is Gaston County's.
At present, Union Trust Co. has total assets of $71.4
million and total IPC deposits of $50.6 million, making it
the second smallest bank in the Cleveland - Rutherford
County area. Union Trust Co. competes directly with
First Union National Bank, with deposits of $1.45 billion; First Citizens Bank and Trust Co., with deposits of
$1.05 billion; and Northwest Bank, with deposits of
$936 million. Those are three of the state's five largest




$ 69,482,000
125,452,000
195,456,000

13
13
26

banks and they operate 56 percent of the offices in the
two-county area.
The two banks submitting this application operate in
different geographic areas. Their nearest offices are 20
miles apart and there is little, if any, direct competition
between them.
Consummation of the proposed merger will leave the
relative position of competitor banks in the Gaston Rutherford - Cleveland County market areas virtually
unchanged. Since four of the five largest North
Carolina banks operate in the market area of the resulting bank, consummation of the proposed transaction
will not adversely affect competition. On the contrary,
competition in the three-county area should be further
stimulated by the addition of a new, larger competitor,
able to offer a wider range of services that either bank
is capable of offering as an independent competitor.
Applying the statutory criteria, it is concluded that
the proposed merger is in the public interest and will
not adversely affect competition. This application is,
therefore, approved.
March 12, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger would not produce a significant
increase in concentration in commercial banking.
Commercial banking in North Carolina is dominated by
five major banks who collectively hold in excess of
two-thirds of total statewide deposits. Consummation
of the proposed merger will not exacerbate the current
structure of commercial banking in the state and,
indeed, it may produce a new bank of sufficiently enhanced competitive vigor so as to offset the power of
the dominant banks. In terms of the tri-county area in
which the parties operate, the proposed merger will
produce a modest degree of increased concentration.
Applicant is the fifth largest of nine commercial banks
operating in Gaston County and Bank is the smallest
bank operating in Cleveland County, although it is the
fourth largest of five commercial banks operating in the
combined Cleveland and Rutherford counties.
North Carolina law permits statewide branch banking. Hence, in theory, the participants are free to
branch into the areas currently served by each other.
However, there appears to be little likelihood that either
Applicant or Bank would be apt to make further entry
into each other's service area. The towns in the tricounty area served by Applicant and Bank are all

71

presently served by more banks on the average than
are towns of similar population size nationwide. In addition, there are 40 banking offices in the area
involved, and the population per banking office is 12 to

18 percent below the United States average.
In conclusion, it is our view that the proposed acquisition will have an insignificant effect upon competition.

FIRST CITY BANK - NORTHEAST, N.A.,
Houston, Tex., and Northeast Bank of Houston, Houston, Tex.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
Northeast Bank of Houston, Houston, Tex., with
was purchased June 8, 1976, by First City Bank - Northeast, N. A., Houston, Tex. (16585),
which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On June 6, 1976, application was made to the Comptroller of the Currency by the First City Bank - Northeast, N.A., Houston, Tex., for permission to purchase
certain of the assets and assume certain of the
liabilities of the Northeast Bank of Houston, Houston^
Tex. Instant application rests upon an agreement
incorporated herein by referencing the same as if fully
set forth, and, for the reasons set forth below the application is hereby approved and the assuming bank is
hereby authorized immediately to consummate purchase and assumption transaction.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds these anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution, and the convenience and needs of the
community to be served. When necessary, however, to
prevent the evils attendant upon the failure of a bank,
the Comptroller can dispense with the uniform standards applicable to usual acquisition transactions and
need not consider reports on the competitive consequences of the transaction ordinarily solicited from the
Department of Justice and other banking agencies. He
* Asset figures are as of call dates immediately before and after transaction.


72


$19,872,000
1,250,000
16,724,000

is authorized in such circumstances to act immediately, in his sole discretion, to approve an acquisition, and to authorize the immediate consummation of
the transaction.
The proposed acquisition will be in accord with all pertinent provisions of the National Bank Act and will prevent disruption to the community and potential losses to
a number of uninsured depositors. The assuming bank
will have strong financial and managerial resources, and
this acquisition will enable it to enhance the banking services offered in the Houston community. Thus, the approval of this transaction will help to avert a loss of public
confidence in the banking system, and will improve the
services offered to the banking public.
The Comptroller finds that the anticompetitive effects
of the proposed transaction, if any, are clearly outweighed in the public interest by the probable effect of
the proposed transaction in meeting the convenience
and needs of the community to be served. For those
reasons, the assuming bank's application to assume
certain liabilities and purchase certain assets of Northeast Bank of Houston as set forth in the agreement is
approved. The Comptroller further finds that the failure
of Northeast Bank of Houston requires him to act immediately, as contemplated by the Bank Merger Act,
to prevent disruption of banking services to the community; and the Comptroller waives publication of
notice, dispenses with the solicitation of competitive
reports from other agencies and authorizes the transaction to be consummated immediately.
June 8, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

VALLEY NATIONAL BANK,
Passaic, N.J., and Bank of Wayne, National Association, Wayne, N.J.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Bank of Wayne, National Association, Wayne, N.J. (15934), with
and Valley National Bank, Passaic, N.J. (15790), which had
merged June 11, 1976, under charter and title of the latter bank (15790). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On January 16, 1976, Bank of Wayne, National Association, Wayne, N.J., and Bank of Passaic and Clifton,
National Association, Passaic, N.J., applied to the
Comptroller of the Currency for permission to merge
under the charter of the latter and with title "Valley National Bank."
Bank of Passaic and Clifton, National Association
("BOPAC"), the charter bank, was organized in 1927,
and converted to a national banking charter in 1970.
As of December 31, 1975, BOPAC was the 27th
largest bank domiciled in New Jersey, and controlled
total commercial deposits of $217.1 million. BOPAC
presently operates seven branches within the counties
of Passaic and Morris in the municipalities of Passaic,
Clifton, Little Falls, and Pequannock.
Bank of Wayne, National Association ("BOW"), the
merging bank, is headquartered in the township of
Wayne, N.J., and opened for business in 1972. As of
December 31, 1975, BOW was the 161st largest commercial bank in the state and had total deposits of $9.3
million. The merging bank presently has no operating
branches, but does have one approved, but unopened, branch approximately 4 miles southeast of its
main office.
The charter and merging banks have always been
affiliated by virtue of their common stock ownership.
BOW was opened in 1972 in order to enable BOPAC
to better serve the banking needs of customers in the
immediate Wayne area. The merging bank was forced




$ 10,079,000
242,671,000
252,535,000

1
9
10

to enter as a ate novo institution inasmuch as New Jersey restrictive branching statutes in effect at that time,
did not permit BOPAC to branch into Wayne.
As aforenoted, both banks are owned by common
stockholders. Additionally, seven of 10 directors of
BOW are directors of BOPAC, and seven of 12 directors of BOPAC are also directors of BOW. Because
of that close affiliation, there has never been, and is
not presently, any active competition between the two
banks. Consummation of the instant proposal would,
therefore, not adversely effect either present or future
competition in the area. The proposed merger should
bring into being greater economies of operation for the
two banks and the resulting institution should be better
able to more adequately and more actively compete
with numerous other financial institutions in the area by
utilizing its resources to the fullest.
Applying the statutory criteria, it is concluded that
the proposed merger will result in a more viable competitor in the relevant market and increase the banking
services offered to the community. It is the opinion of
this Office that the proposal is in the public interest,
and should be, and hereby is, approved.
April 9, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
We have reviewed this proposed transaction and conclude that it would not have a substantial competitive
impact.

73

NEW JERSEY BANK (NATIONAL ASSOCIATION),
Clifton, N.J., and First State Bank of Hudson County, Jersey City, N.J.
Banking offices

Name of bank and type of transaction

Total assets *
In
To be
operation operated

First State Bank of Hudson County, Jersey City, N.J., with
was purchased June 15, 1976, by New Jersey Bank (National Association), Clifton, NJ.
(15709), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On June 15, 1976, application was made to the Comptroller of the Currency by the New Jersey Bank, National Association, Clifton, N.J. ("Assuming Bank"), for
permission to purchase certain of the assets and assume certain of the liabilities of the First State Bank of
Hudson County, Jersey City, N.J. This application rests
upon an agreement incorporated herein by referencing
the same as if fully set forth and, for the reasons set
forth below the application is hereby approved and the
Assuming Bank is hereby authorized immediately to
consummate the transaction.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds these anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution, and the convenience and needs of the
community to be served. When necessary, however, to
prevent the evils attendant upon the failure of a bank,
the Comptroller can dispense with the uniform standards applicable to usual acquisition transactions and
need not consider reports on the competitive consequences of the transaction ordinarily solicited from the
Department of Justice and other banking agencies. He
* Asset figures are as of call dates immediately before and after
transaction.

74



$13,646,000

3

749,973,000
775,979,000

37
40

is authorized in such circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the immediate consummation of
the transaction.
The proposed acquisition will be in accord with all
pertinent provisions of the National Bank Act and will
prevent disruption to the community. The Assuming
Bank has adequate financial and managerial resources, and this acquisition will enable it to enhance
the banking services offered in the Clifton community.
Thus, the approval of this transaction will help to avert
a loss of public confidence in the banking system and
will improve the services offered to the banking public.
The Comptroller finds that the anticompetitive effects
of the proposed transaction, if any, are clearly outweighed in the public interest by the probable effect of
the proposed transaction in meeting the convenience
and needs of the community to be served. For those
reasons, the Assuming Bank's application to assume
certain liabilities and purchase assets of First State
Bank of Hudson County as set forth in the aforemoted
agreement is approved. The Comptroller further finds
that the failure of First State Bank of Hudson County
requires him to act immediately, as contemplated by
the Bank Merger Act, to prevent disruption of banking
services to the community; and the Comptroller thus
waives publication of notice, dispenses with the solicitation of competitive reports from other agencies and
authorizes the transaction to be consummated immediately.
June 15, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

FIRST BANK NATIONAL ASSOCIATION,
Cleveland, Ohio, and Community National Bank of Warrensville Heights, Warrensville Heights, Ohio
Banking offices
Name of bank and type of transaction

Total assets *

Community National Bank of Warrensville Heights, Warrensville Heights, Ohio (15561), with
was purchased June 18, 1976, by First Bank National Association, Cleveland, Ohio (16545),
which had
After the purchase was effected the receiving bank had

COMPTROLLER'S DECISION
On June 17, 1976, application was made to the Comptroller of the Currency for prior approval for First Bank
National Association, Cleveland, Ohio, ("Assuming
Bank"), to purchase the assets and to assume the
liabilities of Community National Bank of Warrensville
Heights, Warrensville Heights, Ohio ("CNB"). The
instant application rests upon an agreement,
incorporated herein by reference the same as if fully
set forth, and, for the reasons set forth below, the application is hereby approved, and the Assuming Bank
is hereby authorized to immediately consummate the
purchase and assumption transaction.
CNB was organized as a national bank on
November 30, 1965, when it was granted charter
number 15561. As of March 31, 1976, CNB was the
only bank headquartered in Warrensville Heights,
Ohio, and had total assets of approximately $16 million. It has operated one branch office. During an
examination of CNB commenced on July 15, 1974, a
large number of poor quality loans purchased from, or
originated through, Northern Ohio Bank, Cleveland,
Ohio, were discovered. The Comptroller of the Currency entered into an agreement with the board of directors of the CNB on November 22, 1974, calling for
the removal of approximately $6,553,000 in loans acquired from, or originated by, the Northern Ohio Bank.
All such loans were to be disposed of by January 31,
1975. Many of the loans were resold to the originating
bank during the 3-month period from November 1974
through January 1975. However, upon the closing of
Northern Ohio Bank in February 1975, approximately
$1,978,0(30 in loans purchased or otherwise acquired
through that bank remained on the books of CNB.
Subsequent loan losses and operating losses resulting
from high interest cost, heavy occupancy expenses,
declining loan revenues and a large employee staff
eliminated all equity capital in the bank and encroached upon the $540,000 in outstanding subordinated debentures. Equity capital was a deficit of
$142,000 as of the March 31, 1976 report of condition.
The severity and multiplicity of problems facing CNB
by early 1976 required the earliest feasible addition of

* Asset figures are as of call dates immediately before and after
transaction.




In
To be
operation operated

$15,927,000

2

12,760,000
29,734,000

1
3

equity capital and management expertise. An agreement has been negotiated between CNB and the Assuming Bank whereby the latter would purchase the
assets and assume the liabilities, including all deposit
liabilities, of the former. It is this agreement that the
Comptroller is now asked to approve.
Pursuant to the Bank Merger Act of 1966, 12 USC
1828(c), the Comptroller of the Currency cannot approve a purchase and assumption transaction which
would have certain proscribed anticompetitive effects
unless he finds those anticompetitive effects to be
clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served. Additionally, the Comptroller is directed to consider the financial and managerial resources and future prospects of the existing and proposed institution and the
convenience and needs of the community to be
served. When necessary, however, to prevent the evils
attendant upon the failure of a bank, the Comptroller
can dispense with the uniform standards applicable to
usual acquisition transactions and need not consider
reports on the competitive consequences of the transaction ordinarily solicited from the Department of Justice and other banking agencies. He is authorized in
such circumstances to act immediately, in his sole discretion, to approve an acquisition, and to authorize the
immediate consummation of the transaction.
The proposed acquisition will be in accord with all
pertinent provisions of the National Banking Act and
will prevent a disruption of banking services to the
community and potential losses to a number of uninsured depositors. The Assuming Bank will have
strong financial and managerial resources and this
acquisition will enable it to enhance the banking services offered in the Warrensville Heights community.
Thus, the approval of this transaction will help to avert
a loss of public confidence in the banking system and
will improve the services offered to the banking public.
The Comptroller finds that the anticompetitive effects
of the proposed transaction, if any, are clearly outweighed in the public interest by the probable effect of
the proposed transaction in meeting the convenience
and needs of the community to be served. For those
reasons, the Assuming Bank's application to purchase
the assets and to assume the liabilities of CNB as set
forth in their agreement is approved. The Comptroller

75

further finds that the possible failure of CNB requires
him to act immediately, as contemplated by the Bank
Merger Act, to prevent disruption of banking services
to the community; the Comptroller thus waives publication of notice, dispenses with the solicitation of com-

petitive reports from other agencies and authorizes the
transaction to be consummated immediately.
June 18, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

WELLS FARGO BANK, NATIONAL ASSOCIATION,
San Francisco, Calif., and the Topanga Plaza Branch of City National Bank, Beverly Hills, Calif.
Banking offices
Name of bank and type of transaction

Total assets *

Topanga Plaza Branch of City National Bank, Beverly Hills, Calif. (14695), with
was purchased June 28, 1976, by Wells Fargo Bank, National Association, San Francisco,
Calif. (15660), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
Wells Fargo Bank, National Association, San Francisco
("Wells"), has made application to the Comptroller of
the Currency to purchase the assets and assume the
liabilities of the Topanga Plaza Branch of City National
Bank, Beverly Hills ("Topanga Plaza Branch").
Wells is the successor to Mercantile Trust Company
which was incorporated under the laws of the state of
California in 1920. Wells became a national banking
association on January 30, 1962, and is the whollyowned subsidiary of Wells Fargo Company, San Francisco. The third largest commercial bank domiciled in
California, Wells controls total domestic deposits of
$9.8 billion.
City National Bank, the wholly-owned subsidiary of
City National Corporation, Beverly Hills, was established in 1953, and currently holds total commercial
bank deposits of $560 million. The Topanga Plaza
Branch of City National Bank was opened for business
in March 1960, and has total deposits of approximately
$2.4 million.
The service area of Topanga Plaza Branch encompasses the communities of Woodland Hills, Warner
Ranch and Canoga Park in the southwestern portion of
the San Fernando Valley in the city of Los Angeles. The
closest banking office of Wells is the Warner Ranch Office, less than 1 mile south of Topanga Plaza Branch.
Wells and City National Bank are, therefore, considered to be in direct competition. However, the Los
Angeles-Orange County banking market, the relevant
banking market, is served by over 70 banks, including
the 10 largest commercial banks in California. In a
market as large as that of Los Angeles-Orange County,

* Asset figures are as of call dates immediately before and after
transaction.

Digitized for 76
FRASER


In
operation

$2,393,000

1

10,766,126,000
11,153,293,000

To be
operated

336
337

the transfer of less than $3 million in deposits between
two banks whose market share of deposits is relatively
small, will have no significant impact upon banking
competition within the relevant area.
In conclusion, it is the opinion of this Office that this
proposal will not adversely affect competition among
banks in the relevant banking market, and inasmuch
as the Topanga Plaza Branch of City National Bank
has not been able to generate a satisfactory profit or
volume of business sufficient to justify its continued
existence, (as of October 1975, Topanga Plaza Branch
controlled total deposits approximately $725 thousand
less than it did in December 1971) its pro forma operation as an adjunct to the Warner Ranch Office of Wells
would insure the uninterrupted provision of banking
services to the banking public. Accordingly, this application should be, and hereby is, approved.
May 25, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant operates a branch office approximately 0.75
mile away from the Topanga Plaza Branch office in the
Los Angeles area. Accordingly, there exists some degree of direct competition between Applicant and the
Topanga Plaza Branch of Bank, minimized somewhat
by the fact that the branches are on opposite sides of
a heavily travelled boulevard which acts as a barrier.
Applicant's branch holds about 3.4 percent of commercial banking deposits in the area and the Topanga
Plaza Branch of Bank holds 1.1 percent of deposits.
Hence, the proposed acquisition will have only a minimal effect upon concentration. Finally, although
California permits statewide branch banking, it appears very improbable that the area could support ate
novo entry by Applicant.
In sum, the proposed acquisition will have only a
minimal adverse effect upon competition.

FIRST NATIONAL BANK OF SPRINGFIELD,
Springfield, Vt., and The Merchants National Bank of St. Johnsbury, St. Johnsbury, Vt.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

The Merchants National Bank of St. Johnsbury, St. Johnsbury, Vt. (2295), with
and First National Bank of Springfield, Springfield, Vt. (122), which had
merged June 30, 1976, under charter and title of the latter bank (122). The merged bank
at date of merger had

COMPTROLLER'S DECISION
The Merchants National Bank of St. Johnsbury, St.
Johnsbury ("Merchants"), and First National Bank of
Springfield, Springfield ("FNB"), have applied to the
Comptroller of the Currency for permission to merge
under the charter and with the title of the latter.
Merchants, the merging bank, was organized in
1875 and operates its head office in St. Johnsbury and
branches in Lyndonville and Newport. As of December
31, 1975, Merchants controlled total commercial bank
deposits of $8.1 million.
FNB, the charter bank, was chartered as a national
banking association in 1863 and, with total deposits of
approximately $36 million, is now the ninth largest of
30 commercial banks domiciled in Vermont. FNB currently operates a total of six banking offices in the
state.
The closest operating branch offices of FNB and
Merchants are more than 50 miles from each other,
and the head offices of the two subject banks are
separated by approximately 100 miles. Each of the two
banks serves a separate and distinct market, and
neither bank actively competes with the other. Consummation of the instant merger, therefore, would not
eliminate any meaningful degree of existing competition.
Pursuant to applicable Vermont state statutes,
statewide branching is permitted. Thus, either FNB or
Merchants could legally establish a ofe novo branch office within the service area of the other subject bank.
However, due to the relatively small size of both banks
herein involved and the economic infeasibility of such
a venture, it does not appear likely that these two
banks would choose this mode of expansion. It is con-




$ 9,374,000
40,856,000
48,691,000

cluded, therefore, that this merger would not adversely
affect potential competition between these two
institutions.
The resulting institution should be recognized as a
more viable competitor and a more meaningful banking alternative that is better able to meet the banking
needs of the communities to be served.
Accordingly, it is the opinion of this Office that the
proposed transaction is in the public interest, and
should be, and hereby is, approved.
May 26, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The head offices of the merging banks are located 100
miles apart and their closest branch offices are 50
miles apart. Thus, it would appear that no significant
amount of direct competition would be eliminated by
the proposed merger.
Under Vermont law, statewide branching is permitted. Applicant could, therefore, branch de novo into
Bank's service area. Opportunities for further branching into the sparsely settled St. Johnsbury area are limited, however, due to the present concentration of four
banking organizations in St. Johnsbury. Also, Applicant's resources are apparently not sufficient to justify
branching into a distant area dominated by banks
substantially larger than Bank, which is the smallest
banking organization operating in St. Johnsbury.
The proposed transaction would not eliminate any
significant amount of direct competition, although it
would eliminate the potential for increased competition
which would result if Applicant established a branch
office in St. Johnsbury. Overall, the proposed merger
has no significant competitive effect.

77

BEACH HAVEN NATIONAL BANK AND TRUST COMPANY,
Beach Haven, N.J., and The Bank of New Jersey, N.A., Moorestown, N.J.
Banking offices
Name of bank and type of transaction

Total assets
In
operation

Beach Haven National Bank and Trust Company, Beach Haven, N.J. (11658), with
and The Bank of New Jersey, N.A., Moorestown, N.J. (16397), which had
merged June 30, 1976, under charter and title of the latter bank (16397). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Beach Haven National Bank and Trust Company,
Beach Haven ("Beach Haven Bank"), and The Bank of
New Jersey, N.A., Moorestown ("BNJ"), have applied
to the Comptroller of the Currency for permission to
merge under the charter and with the title of the latter.
The head office of the resulting bank will be at Moorestown.
Beach Haven Bank was chartered as a national
banking association in 1920, and, as of December 31,
1975, controlled total commercial bank deposits of
approximately $58 million. With" the one exception of a
branch office located in Medford Lakes in Burlington
County, the remaining seven branches and Beach
Haven Bank's main office, are all located in the southeastern portion of Ocean County.
BNJ commenced business November 8, 1974, as a
de novo banking subsidiary of the ninth largest banking organization in the state, Bancshares of New Jersey, Moorestown ("Bancshares"), a registered multibank holding company. At year-end 1975,
Bancshares' three subsidiary banks held commercial
bank deposits aggregating approximately $644 million,
$2.6 million of which was controlled by BNJ. BNJ currently operates only from its head office. The bank has
however, filed an application for permission to establish a branch office in Moorestown. To date, this Office
has not acted upon the separate branch application of
BNJ.
The closest office of Beach Haven Bank is approximately 12 miles distant from BNJ, although another
subsidiary of Bancshares, The Bank of New Jersey,
Camden, maintains a branch approximately 11 miles
from the Medford Lakes branch of Beach Haven Bank.
All other branches of Beach Haven Bank are at least
45 miles from BNJ's location in Moorestown. Due to the
geographical distance involved and the presence of
numerous intervening banks, consummation of the
instant proposal would not eliminate any meaningful
degree of present competition between the two subject banks.
Applicable New Jersey state banking statutues do
make provision for statewide branch banking except
for towns with a population of less than 20,000 persons
(10,000 after January 1, 1977) where home office protection is in effect. Therefore, this merger would have
the effect of foreclosing the potential for increased
competition between subsidiaries of Bancshares and
Beach Haven Bank.


78


$68,562,000
6,728,000
75,290,000

To be
operated

-j

Q
10

By statute, 12 USC 1828(c)(5)(b), the Comptroller of
the Currency must also consider the public interest by
being mindful of the probable effect of the transaction
in meeting the convenience and needs of the community to be served, and the Comptroller cannot approve
a merger transaction which would have certain proscribed anticompetitive effects unless the Office concludes that these anticompetitive effects are clearly
outweighed in the public interest by the probable effect of the proposed transaction in more adequately
meeting the convenience and needs of the community
to be served.
Consummation of this merger would enhance competition within Ocean County, and Beach Haven, N.J.,
would become open to de novo branching, and the
services of the resulting institution would be extended
beyond the resort-oriented trade area presently served
by Beach Haven Bank. Additionally, affiliation with
Bancshares will enhance the future prospects of the
surviving bank by increasing the legal lending limit of
the bank, providing greater access to capital markets,
and providing for management depth and management succession. Thus, the new bank should be a
more viable banking alternative that will be better able
to compete with larger competitors and, thereby, better serve the needs of its banking community.
Accordingly, applying the statutory criteria, it is the
opinion of this Office that the foreclosure of any slight
degree of probable future competition which might
arise between Beach Haven Bank and BNJ is clearly
outweighed by considerations relating to convenience
and needs and future prospects of the bank. Therefore, it is the opinion of this Office that this transaction
is in the public interest, and should be, and hereby is,
approved. This approval is conditioned upon amendments to the merger agreement and articles of association which will reflect the head office of BNJ as
Moorestown. The amendments must be approved by
shareholders of both banks and evidence of such approval must be received by the Comptroller's Office
prior to consummation of the transaction.
May 28, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Bank's Medford Lakes Branch office is located about
12 miles northeast of Applicant's office and about 10
miles northeast of the two Gibbsboro offices of
Bancshares. Bank's remaining branch offices are at
least 45 miles southeast of Applicant's office. Thus, it

appears that the proposed acquisition will eliminate direct competition to an insignificant degree.
New Jersey law permits statewide branch banking
except for home office protection in towns of under
10,000. Accordingly, the only offices of Bank which are
protected are in Beach Haven (population 1,640), and
Applicant and Bancshares could branch de novo
elsewhere in Ocean County where Bank maintains its
other offices. Hence, the proposed acquisition would
eliminate potential competition to some extent.

The proposed acquisition will not contribute significantly to increased concentration. Applicant and its
parent collectively control about 7 percent of total deposits. Bank operates one branch in Burlington County
and the proposed acquisition would therefor increase
the combined market share of Applicant and
Bancshares to 7.5 percent.
In sum, the proposed acquisition would have only a
slightly adverse effect upon competition.

THE NATIONAL BANK OF GEORGIA,
Atlanta, Ga., and Mercantile National Bank, Atlanta, Ga.
Banking offices
Total assets *

Name of bank and type of transaction

In
To be
operation operated
Mercantile National Bank, Atlanta, Ga. (15789), with
was purchased July 1, 1976, by The National Bank of Georgia, Atlanta, Ga. (15541), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
The National Bank of Georgia, Atlanta, Ga. ("NBG"),
has applied to the Comptroller of the Currency for
permission to purchase substantially all of the assets
and to assume the liabilities of Mercantile National
Bank, Atlanta, Ga. ("Mercantile"). This application has
been processed under the emergency provisions of
the Bank Merger Act of 1966, as set forth in 12 USC
1828(c).
NBG, the assuming bank, was founded in 1911 as
the second Morris Plan Bank in the United States. NBG
became a national banking organization in 1965, and
currently has total commercial bank deposits of approximately $290 million. NBG presently ranks as the
fifth largest bank in the Atlanta banking market (approximated by the whole of Fulton and DeKalb counties), controlling 4.2 percent of total deposits within the
relevant market.
Mercantile, the selling bank, was chartered as a national banking organization in 1970 after operating for
10 years as a state banking instutition. Mercantile as of
March 31, 1976, held total commercial bank deposits
of $9.6 million, representing 0.2 percent of total market
deposits.
As may be seen by its deposit size, Mercantile is
among the smallest commercial banks operating within
the Atlanta market. During the years 1971 through
1975, inclusive, Mercantile's total assets decreased
approximately 18 percent, demand deposits decreased more than 30 percent and time deposits decreased about 10 percent. Decline in size and market
share has made the bank a relatively ineffective com* Asset figures are as of call dates immediately before and after
transaction.




$

9,001,000

3

346,997,000
380,969,000

26

29

petitor within the relevant market. Furthermore, during
the same 5-year period, Mercantile only had a net
operating profit in 1972 and 1973, with an average net
operating loss per year of approximately $63,000 for
the 5-year period. For the first quarter of 1976, Mercantile has reflected an average monthly net operating
loss of approximately $37,000. Operating losses in
addition to substantial loan losses have seriously
eroded the bank's capital structure. To further strain a
difficult situation, in its relatively short operating history,
Mercantile has experienced a rapid turnover of management personnel. The selling bank has not been
able to successfully augment its diminished capital
base through a retention of earnings due to the aforenoted net operating losses and, at the request of the
directors of Mercantile, the Comptroller of the Currency, on May 13, 1976, pursuant to Sections 12(i) and
12(k) of the Securities Exchange Act of 1934, temporarily suspended over-the-counter trading of Mercantile's securities.
In view of the record in this matter, it is the conclusion of this Office that an emergency situation exists
which requires an expeditious solution by the Comptroller's Office. Consistent with the applicable provisions of 12 USC 181, the Comptroller of the Currency
hereby specifically waives the requirement for
shareholder approval by owners of Mercantile's stock.
Also, the decision of the Comptroller is rendered pursuant to an agreement between the proponent banks
upon which the instant application rests, and is
incorporated herein by reference the same as if fully
set forth.
Pursuant to the provisions of the Bank Merger Act of
1966, 12 USC 1828(c), the Comptroller of the Currency
cannot approve a purchase and assumption transaction which would have certain proscribed anticompeti-

79

five effects unless the Office concludes that those anticompetitive effects are clearly outweighed in the public interest by the probable effect of the proposed
transaction in adequately meeting the convenience
and needs of the community to be served. Furthermore, the Office of the Comptroller is also directed to
fully consider the financial and managerial resources
and future prospects of the existing and proposed
institution. However, when an emergency situation
exists, the Comptroller may dispense with the normal
time requirements applicable to usual acquisition
transactions. In such situations the 30-day comment
period in which the Department of Justice and other
banking agencies submit reports relating to the competitive consequences of the transaction is reduced to
a 10-day comment period. Consummation of the
transaction must await an additional 5-day period.
Applying the statutory criteria contained with 12 USC
1828(c), the Comptroller of the Currency concludes
that an emergency situation exists, due to the general
condition of Mercantile, that requires expeditious action. For the reasons herein stated, NBG's application
to purchase the assets and assume the liabilities of
Mercantile National Bank is judged to be in the public
interest and is, hereby, approved.
June 24, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
The application has conflicting testimony about the distances between offices of Applicant and Bank, but apparently they are within a mile or two of each other in
certain areas. Accordingly, the proposed acquisition
will doubtless eliminate some existing competition.
The application lists 26 banks in the market area
served by the Applicant and Bank. Applicant ranks
fifth among these with 4.2 percent of combined deposits of $6.1 billion and Bank is one of five banks with
0.1 percent (there are five with 0.1 percent each). The
three largest banks have deposits, respectively, of
$1.9 billion (equal to 31 percent), $1.5 billion (equal to
24 percent), and $1.2 billion (equal to 20 percent) and
the fourth in size has $561 million (equal to 9 percent).
These four large banks operate 51 offices, 53 offices,
38 offices and 30 offices, respectively. The proposed
acquisition will increase concentration only to a slight
extent.
In sum, the proposed acquisition will eliminate direct
competition and will contribute slightly to increased
concentration. However, in view of the deterioration of
Bank's position in the market and the increasingly
large operating losses it has had to absorb in recent
years, the overall effect of the acquisition would not be
substantially adverse.

THE PLANTERS NATIONAL BANK AND TRUST COMPANY,
and Hanover Bank, Wilmington, N.C.
Banking offices
Name of bank and type of transaction

Total assets
In
operation

Hanover Bank, Wilmington, N.C, with
and The Planters National Bank and Trust Company, Rocky Mount, N.C. (10608), which had
merged July 12, 1976, under charter and title of the latter bank (10608). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Pursuant to the provisions of the Bank Merger Act of
1966 [12 USC 1828(c)L Hanover Bank, Wilmington,
N.C. ("Hanover"), and The Planters National Bank and
Trust Company, Rocky Mount, N.C. ("Planters"), have
applied to the Comptroller of the Currency for prior
permission to merge under the charter and with the
title of the latter.
Hanover, the merging bank, was organized
November 29, 1973, and commenced commercial
bank operations November 1, 1974. Hanover, the
smallest of 7 commercial banks serving the Wilmington, N.C. area, operates only from its main office,
but has sought and received permission for the establishment of a branch office in Wilmington. As of December 31, 1975, Hanover held total deposits of approximately $9 million.
Planters, the charter bank, was originally chartered
as a state banking institution in 1899, and converted to
a national banking association charter in 1914. Presently the 10th largest commercial bank domiciled in

80


$ 11,512,000
240,995,000
252,507,000

To be
operated

1
33
34

North Carolina, Planters maintains 31 banking offices
in 14 countries throughout the State. As of year-end
1975, Planters total deposits aggregated $226.4 million, representing 1.8 percent of total deposits held by
all commercial banking offices within the state.
The closest operating offices of the proponents are in
excess of 100 miles apart and there is no competition between these two banks. Inasmuch as applicable state
statutes do make provision for statewide branching, and
bank holding companies are permitted to establish de
novo subsidiaries, there exists the potential for the subject banks to become competitors at some date in the future. The likelihood of this event coming to fruition, however, is considered remote and highly unlikely given the
merging bank's deposit size and the economic factors in
the Wilmington area. Consummation of this proposal,
therefore, is considered to have no seriously adverse effect upon competition within the relevant area.
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that the transaction would

have the effect of improving the competitive position of
the merging bank through operating economies and
efficiencies, and provide an additional source of fullservice banking for the banking community. The resulting institution should be a well managed bank that is a
more meaningful banking alternative better able to
serve the needs of the public. This application is thus
deemed to be in the public interest and should be, and
hereby is, approved.
June 10, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
The office of Applicant closest to an office of Bank is
about 100 miles away, which indicates that the proposed acquisition will not eliminate any existing competition.

Bank is currently the smallest of the seven banks
that serve the Wilmington area. The three largest
banks collectively hold almost 76 percent of the deposits in the area. The two largest banking organiza-.
tions in the state share 61 percent of total deposits in
the area. Bank currently has only a 3.5 percent share
of total deposits. Hence, the proposed acquisition
should enhance competition in the area through the
strengthening of the smallest bank. North Carolina
does permit statewide branching and holding companies are permitted to establish de novo subsidiaries.
Accordingly, there is no impediment to the entry by
Applicant into the Wilmington area through means
other than acquisition. In this respect the proposed
acquisition does have some anticompetitive effect.
In sum, the proposed acquisition will have some anticompetitive effect because of its elimination of potential competition.

THE ONEIDA NATIONAL BANK AND TRUST COMPANY OF CENTRAL NEW YORK,
Utica, N.Y., and The Red Creek National Bank, Red Creek, N.Y.
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

The Red Creek National Bank, Red Creek, N.Y. (10781), with
was purchased July 20, 1976, by The Oneida National Bank and Trust Company of Central New
York, Utica, N.Y. (1392), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On July 12, 1976, application was made to the Comptroller of the Currency by The Oneida National Bank
and Trust Company of Central New York, Utica, N.Y.
("Assuming Bank") for permission to purchase the assets and assume certain of the liabilities of The Red
Creek National Bank, Red Creek, N.Y. The application
rests upon an agreement dated July 9, 1976 and a letter amending said agreement dated July 14, 1976.
Said agreement and letter are incorporated herein by
referencing the same as if fully set forth, and, for the
reasons set forth below, the application is hereby approved and the Assuming Bank is hereby authorized
immediately to consummate the purchase and assumption transaction and to operate the head office
and branch office of The Red Creek National Bank as
branch offices of the Assuming Bank.
An examination of The Red Creek National Bank,
which commenced on June 28, 1976, indicates that
the bank is in critical condition. Estimated losses as of
this examination total approximately $835,000 leaving
a deficit capital position of approximately $181,000.
Classified assets total 437 percent of gross capital
funds. Past-due loans are 19.5 percent of total loans.
Loans lacking current and satisfactory credit information represent 23.1 percent of the loan portfolio. Pres* Asset figures are as of call dates immediately before and after
transaction.




$ 12,073,000

2

480,748,000
512,527,000

29

31

ent management is not considered capable of handling the affairs of the bank. During the course of the
examination, the president resigned. Supervision by
the board of directors has been lacking, and the directors have failed to institute sufficient measures to
correct the deteriorating condition of the bank.
In view of the record in this matter, it is the conclusion of this Office that an emergency situation exists
which requires an expeditious solution by the Comptroller's Office. Consistent with applicable provisions
of 12 USC 181, the Comptroller of the Currency hereby
specifically waives the requirement for shareholder
approval by owners of The Red Creek National Bank's
stock.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds those anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution, and the convenience and needs of the
community to be served. When necessary, however, to
prevent the disruption attendant upon the failure of a
bank, the Comptroller can dispense with the uniform
standards applicable to usual acquisition transactions,

81

and need not consider reports on the competitive consequences of the transactions ordinarily solicited
from the Department of Justice and the other banking
agencies. He is authorized in such circumstances to
act immediately, in his sole discretion, to approve an
acquisition and to authorize the immediate consummation of the transaction. The proposed acquisition will
be in accord with all pertinent provisions of law and will
prevent disruption of banking services to the Red
Creek and the North Rose communities and avert a
loss of public confidence in the banking system. The
Assuming Bank has sufficient financial and managerial
resources to absorb The Red Creek National Bank.
The Comptroller finds that any possible anticompetitive effects of the proposed transaction, are clearly
outweighed in the public interest by the probable effect of the proposed transaction in meeting the con-

venience and needs of the communities to be served.
For those reasons, the Assuming Bank's application to
assume the liabilities and purchase the assets of The
Red Creek National Bank as set forth in the purchase
agreement and subsequent letter, dated July 14, 1976,
is hereby approved. The Comptroller further finds that
the probable failure of The Red Creek National Bank
requires him to act immediately, as contemplated by
the Bank Merger Act, to prevent disruption of banking
services and the Comptroller thus waives publication
of notice, dispenses with the solicitation of competitive
reports from other agencies and authorizes the transaction to be consummated immediately.
July 20, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

SEATTLE - FIRST NATIONAL BANK,
Seattle, Wash., and First National Bank in Port Angeles, Port Angeles, Wash., and The First American National Bank of
Port Townsend, Port Towsend, Wash., and Bank of Sequim, Sequim, Wash., and Forks State Bank, Forks, Wash.
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

First National Bank In Port Angeles, Port Angeles, Wash. (6074), with
The First American National Bank of Port Townsend, Port Townsend, Wash. (13351), with
Bank of Sequim, Sequim, Wash., with
and Forks State Bank, Forks, Wash., with
were purchased Aug. 24, 1976, by Seattle - First National Bank, Seattle, Wash. (11280),
which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
Seattle - First National Bank, Seattle, ("Seattle - First"),
has applied to the Comptroller of the Currency for
permission to purchase the assets and assume the
liabilities of First National Bank in Port Angeles, Port
Angeles ("Port Angeles Bank"), The First American National Bank of Port Townsend, Port Townsend ("First
American"), Bank of Sequim, Sequim ("Sequim
Bank"), Forks State Bank, Forks ("Forks Bank"), collectively, "Union Bond Banks" or "Merging Banks". The
decision of the Office of the Comptroller of the Currency is rendered pursuant to an agreement executed
between the proponent banks upon which the instant
application rests, and is incorporated herein by reference, the same as if fully set forth.
Seattle - First, the charter bank, is the largest commercial bank domiciled in the state of Washington, and
is the wholly-owned subsidiary of SeaFirst Corporation,
Seattle, a registered one-bank holding company organized in 1974. Seattle - First has total deposits of
$3.3 billion,1 representing approximately 35 percent of
the total commercial bank deposits in the state of
* Asset figures are as of call dates immediately before and after transaction.
1

All deposit data are as of December 31, 1975, unless otherwise
noted.


82


$

56,687,000
26,675,000
23,870,000
14 211 000

6
3
3
1

4,576,802,000
4,899,325,000

146
159

Washington. Seattle - First operates 150 branch offices
and is represented in 30 of the 39 counties in the state;
with 11 of those offices located in and around the city
of Seattle in King County.
The merging banks are controlled, and have been
operated as a group banking system since their establishment, by Union Bond and Mortgage Company, a
family-controlled multi-bank holding company, and the
Phillips family. Port Angeles Bank was organized as a
unit bank in 1901 and merged in 1919 with The Port
Angeles Trust and Savings Bank, the latter having
been established in 1914 by the late Ben Phillips,
father of James E. Phillips, president and chairman of
the Board of Port Angeles Bank. Port Angeles Bank
currently has total deposits of approximately $46 million and operates its main office and four branches in
Port Angeles and one branch in Clallam Bay, an unincorporated community approximately 50 miles to the
west of Port Angeles near the northwestern tip of the
Olympic Peninsula.
First American was organized in 1929 by Ben Phillips, currently has total deposits of $22.6 million and
operates its head office and one of its two branches in
Port Townsend, the county seat and only incorporated
city in Jefferson County. First American's second
branch is located in Hadlock, 9 miles south of Port
Townsend.

Sequim Bank was established in 1936 and operates
its main office and a drive-in branch in Sequim.
Sequim Bank has an application recently approved by
the state of Washington for the establishment of a new
branch. As of year-end 1975, Sequim Bank had total
deposits of $20.2 million.
Forks Bank was opened for business in 1944, and
operates no branches. The bank has total deposits of
$12.4 million. In the aggregate, Union Bond Banks
control total deposits of $101.2 million, representing
approximately 1 percent of total commercial bank deposits in the state of Washington.
The relevant banking markets are approximated by
the various municipalities, and their respective immediate environs, wherein the Union Bond Banks'
principal offices are domiciled. All of those local markets are located within Clallam and Jefferson counties
which form the northwestern tip of the Olympic Peninsula. The relevant area is remote and is surrounded on
three sides by bodies of water: the Pacific Ocean to
the west, the Strait of Juan de Fuca to the north, and
Puget Sound and the Hood Canal to the east. The rugged Olympic Mountain chain provides a natural barrier
along the southern border of the two-county area. The
Olympic National Park and Olympic National Forest
occupy more than half of the land mass of the two
counties and most of the population is located along
the northern coastal region of the peninsula.
There is virtually no existing competition among the
Union Bond Banks, a fact which is attributable to their
common ownership and control. In Port Angeles, population 17,286, the major city and banking market on the
northern Olympic Peninsula, Port Angeles Bank experiences competition from two branch offices of Peoples
National Bank of Washington, Seattle, the fourth largest
commercial bank in the State, and from a relatively
new unit bank, Northwestern National Bank, Port
Angeles, chartered in 1972, which operates a single
banking office. First American Bank's primary local
competitor in Port Townsend, population 5,075, is a
newly opened bank (chartered in 1975), Jefferson National Bank, with a single banking office. Jefferson National Bank has recently received approval for the establishment of a branch office in Quilcene.
The community of Sequim, population 2,035, receives local banking services from the two offices of
Sequim Bank and the Sequim branch of Peoples National Bank of Washington. Forks, Wash., population
1,956, is served by only the single office of Forks Bank.
The closest office of Seattle - First to any office of the
merging banks is the Bremerton Office of Seattle First, more than 50 miles from the Hadlock branch of
First American. Seattle - First does not operate any offices in either Clallam or Jefferson County and, due to
the presence of intervening banks and the geographic
distance between the closest office of Seattle - First
and any office of the merging banks, consummation of
the instant transaction would not have the effect of
2

The question of whether a national bank may establish a branch pursuant to the authorization provided by the case of Washington Mutual
Savings Bank v. FDIC (482 F. 2d 459 (9th Cir. 1973)), is now pending
before the U.S. Appeals for the Ninth Circuit.



eliminating any meaningful degree of direct competition between Seattle - First and the merging banks.
Inasmuch as Union Bond and Mortgage Company is
one of only two multi-bank holding companies with
headquarters in Washington state (The second multibank holding company is Washington Bancshares,
Inc., Spokane), and the only multi-bank holding company represented on the northern Olympic Peninsula,
the Union Bond Banks have, through the passage of
time and use of the applicable provisions of state
branch banking law, evolved into a position of dominance in their respective market areas. Under state
statutes as presently constituted, no other banking organization in Washington can realistically hope to
achieve a parity of competitive status with the Union
Bond Banks within either Clallam or Jefferson County.
The Bank Merger Act mandates that the convenience and needs of the communities to be served must
be considered in every proposed acquisition of a
commercial bank by another commercial bank. By
permitting acquisition of all offices of the Union Bond
Banks by the state's largest financial institution, this
agency would be foreclosing a significant and meaningful avenue for entry into the most attractive markets
on Puget Sound by other Washington commercial
banks. The opportunity, through this application, to
open the Port Angeles - Sequim markets to additional
entry and competition is of such consequence in considering the convenience and needs of the public in
these markets as to preclude Seattle - First from acquiring all of the offices in these markets. Such an unbalanced banking structure where one institution controls, in the aggregate, approximately 80 percent of the
total commercial bank deposits within Clallam and Jefferson counties, is of major concern in reaching a determination in this matter; and this control situation is
not considered by this Office to be conducive to effective competition, regardless of who controls such a
large share of commercial bank deposits. Unconditional approval of this application would thus perpetuate the concentration existent within both Clallam
and Jefferson counties by adding the sanction of the
Office of the Comptroller of the Currency. Therefore,
such a course of action is totally unacceptable to this
Office when an alternative is available that would
increase the number of alternative suppliers of banking
services.
Pursuant to the provisions of Washington state statutes concerning the establishment of de novo
branches by commercial banks, such branches are
essentially limited to the county in which the head office is located and unbanked cities and towns
throughout the state. Section 30.40.020 of the
Washington Revised Code (Supp. 1973) provides in
relevant part2:
No bank or trust company shall establish or operate any branch, . . . in any city or town outside the
city or town in which its principal place of business
is located in which any bank, trust company or national banking association regularly transacts a
banking or trust business, except by taking over or
acquiring an existing bank, trust company or national banking association, or the branch of any
83

bank, trust company or national banking association operating in such city or town.3
Furthermore, as additional evidence of Washington
state's stringent restrictions placed upon branch banking, applicable state statute forbids any bank holding
company from owning or controlling 25 percent or
more of the outstanding voting shares of more than
one bank, a restriction which effectively prevents and
precludes the development of any multi-bank holding
company within the state4.
Since there are no viable, unbanked communities in
either Clallam or Jefferson County, Seattle - First is effectively precluded from the establishment of any new
branch operations in these areas. The Union Bond
Banks could, however, within the provisions of applicable state statutes, expand by de novo branching
outside their traditional operating territory, but have
shown no interest or desire in so doing. It is therefore
concluded that there is little probability that Seattle First and the merging banks would become direct
competitors through de novo branching and consummation of this proposal would not, from an antitrust
reference, have an adverse effect upon potential competition within the relevant markets.
All of the Union Bond Banks are considered as viable competitors within their respective markets, and all
represent attractive potential acquisitions for banking
organizations not represented in the extreme northern
Puget Sound area. It seems highly unlikely, however,
that Seattle - First could be perceived as a potential
entrant into those banking markets through any means
except via the acquisition of an existing bank. (See
United States v. Marine Bancorporation, Inc., 418 U.S.
602 (1974).) As previously noted, applicable
Washington state law does make provision for bank
merger acquisitions; but the same state statute effectively restricts the branching activities of a bank
whenever acquired by an out-of-county bank.
Inasmuch as Seattle - First's home county is King
County, consummation of this merger would, under
current applicable state statute, eliminate the possibility of Seattle - First establishing any new branch office
at any location within either Clallam or Jefferson
County.
The conclusion that a transaction does not violate
judicially accepted antitrust standards, does not relieve the Comptroller of the Currency from considering
3

As this Office indicated a decade and a half earlier upon the merger
application to merge National Bank of Westchester, Westchester, N.Y.,
and The First National City Bank of New York, N.Y. (1961):
As our society changes so must every business desiring to maintain its position and achieve its growth potential change also. One
of the serious problems in banking today arises from legal restrictions, many of which were designed for an earlier age, which have
hampered the proper accommodation by banks to the changing
nature of our society, and have inhibited not only their growth, but
their ability to serve efficiently our growing economy.
4

The Union Bond and Mortgage Company, a registered multi-bank
holding company, is "grandfathered" under Washington state's law
prohibiting multi-bank holding companies.

5

H.R. Rep. No. 1221, 89th Cong., 2d Sess., 4(1966).

84



other factors not associated with Section 7 of the
Clayton Act, which may have implications relating to
banking structure and competition. The Comptroller
clearly has always had discretion through his general
supervisory responsibility to help create a viable banking system through decisions upon individual applications, such as this one, based upon the consideration of
all factors which are deemed relevant.5 It is the Comptroller's view that although antitrust law may provide the
basic framework for safeguarding competition, the expertise of the banking agencies, including this Office,
permits a more intensive evaluation of particular mergers.
By statute, 12 USC 1828 (c)(5)(B), the Office of the
Comptroller cannot approve:
any . . . proposed merger transaction whose effect
in any section of the country may be substantially
to lessen competition, or to tend to create a
monopoly, or which in any other manner would be
in restraint of trade, unless it finds that the an• ticompetitive effects of the proposed transaction
are clearly outweighed in the public interest by the
probable effect of the transaction in meeting the
convenience and needs of the community to be
served.
The Bank Merger Act of 1966, makes it clear that bank
mergers violative of the Clayton Act cannot be approved unless the anticompetitive effect of the proposed transaction is clearly outweighed by the probable convenience and needs benefits which would result
from the merger. In addition, the Comptroller believes
that Congress intended for the National Banking System
to be structured by the statutes pertaining specifically to
national banks and the Comptroller's responsibility for,
and authority over, all national banks. Indeed, the Office
of the Comptroller of the Currency has not only a right,
but a resibility and an obligation, to promote and insure a
sound National Banking System which best serves the
needs of the banking public.
With respect to the instant transaction, SeaFirst Corporation and its subsidiary Seattle - First, propose to
augment existing services provided by Union Bond
Banks and further to introduce new banking services in
the relevant market areas. Seattle - First has a legal
lending limit in excess of $22 million, while the combined legal lending limit of the four Union Bond Banks
is approximately $800,000. With its substantially larger
size and more diversified economic base, Seattle First will be able to respond more adequately to the
increasing credit needs of the market area.
Through both Seattle - First and FirstBank Mortgage
Corporation, a wholly-owned subsidiary of the bank,
Seattle - First will be able to serve the local residential
and real estate mortgage markets and also service the
commercial real estate mortgage markets of the relevant areas.
At the present time, Port Angeles Bank is the only
one of the Union Bond Banks with trust powers, and
the bank has only one trust officer who serves the customers of all four affiliated banks. Subsequent to the
merger, Seattle - First will offer a more comprehensive
package of trust services to the residents and business organizations in the areas.

Customers of Union Bond Banks will enjoy the benefit of being able to transact business throughout the
state through the use of Seattle - First's extensive
branch network.
None of the merging banks presently offers
international banking services to its customers. Seattle
- First will introduce these services which should benefit, among others, the larger lumber products firms in
the area which have established an extensive trade
with such foreign nations as Japan and Canada.
Present customers of Union Bond Banks will also
benefit from the additional proposed services of customer investment service and counseling; business
advisory services; automated banking services; electronic data processing services such as remittance
banking, account reconciliation and payroll processing; and specialized checking services, including no
service fee checking with the maintenance of a
minimum balance.
In addition to the competitive and antitrust factors
and the convenience and needs of the community to
be served, the Office of the Comptroller is charged
with the responsibility of considering the financial and
managerial resources and future prospects of the
banks involved in the proposed merger. A review of
the financial factors of the banks reveals that all are in
generally satisfactory overall condition with sound
management.
We believe the facts and circumstances of the
instant application are distinguishable from those
involved in Washington Mutual Savings Bank v. FDIC,
482 F. 2d 459 (9th Cir. 1973). Furthermore, nothing in
the language of the Bank Merger Act of 19666 compels, nor even suggests, that mergers which do not violate any of the antitrust standards of the Act, must be
approved; nor does the law limit agency inquiry exclusively to the competitive impact of a proposed bank
merger.
Unquestionably some of what is stated herein under
the convenience and needs factor could also be applicable to the competitive factor. However, the primary consideration is with the balance of the banking
system on Puget Sound and, in particular, the Port
Angeles - Sequim markets, the future structure of those
markets, how the banking needs of the communities
will best be served, what sizes and types of banks
there should be in these markets and the number of
banks present in the markets. In the Comptroller's view
those matters are clearly relevant to the banking factors and for determination by the Comptroller in the
exercise of his supervisory authority over the National
Banking System, rather than exclusively to the competitive factors under the Bank Merger Act where the
primary concern is directed toward lessening of competition and monopoly. It is the Comptroller's responsibility, acting within the statutory policies prescribed
by Congress, to preserve and foster the National Banking System to insure that it has the capacity to, and
does, perform efficiently and in the public interest and,
specifically, whether proposed acquisitions are in the
public interest.
6

12 USC 1828(c).




Having considered all relevant statutory criteria, it is
concluded that should the Union Bond Banks be acquired individually, or in combination by more than one
banking organization, the effect would be the deconcentration of already highly concentrated markets and
the relevant markets would be provided with additional
banking alternatives and competition, thereby better
serving the banking community and fostering a more
responsive banking atmosphere. It is further the opinion of this Office that the relevant banking factors
herein require that Seattle - First not be allowed the acquisition of all of the offices of the Union Bond Banks;
such an across-the-board approval does not appear
either desirable or warranted.
Therefore, the Comptroller of the Currency hereby
grants approval of the application for Seattle - First to
purchase the assets and assume the liabilities of the
Union Bond Banks subject to the following stipulations
and conditions:
1. Within 12 months from the date of consummation of
the instant transaction, Seattle - First will divest itself
of any and all interests in the following branch offices of Port Angeles Bank and Sequim Bank:
Port Angeles Bank
(a) "Eighth Street Branch"
134 West Eighth Street
Port Angeles, Wash.
(b) "Penn Street Branch"
1633 East First Street
Port Angeles, Wash.
(c) "Clailam Bay Branch"
Corner of Bogachiel and Pioneer Streets
Clailam Bay, Wash.
Sequim Bank
(a) "Valley Branch"
Highway 101 and Loft Mountain Road
Carlsborg, Wash.
2. Such divestiture of the branch offices herein stated
is further conditioned that Seattle - First must not
sell the subject branch offices, in whole or in part,
to any banking organization(s) now represented in
either Clailam or Jefferson counties, nor may these
branch offices be sold to any individual(s), group(s)
or organization(s), whose offices and/or directors
are affiliated with any banking organization(s) now
represented in either Clailam or Jefferson counties.
3. The branch offices must not be sold to any
individual(s), group(s}-or organization(s), who are
officers and/or directors, of Seafirst or Seattle First, or any of their respective subsidiaries or affiliates.
4. The Comptroller must give his express prior approval of the proposed branch purchaser(s) to
Seattle - First, for the purpose of assuring compliance with this decision, prior to consummation of
the sale of the branch offices.
85

Subject to the foregoing conditions this transaction is
approved.
July 23, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The service area of the four Union Bond banks is the
whole of Clallam and Jefferson counties which embraces roughly the northern half of the Olympic Peninsula, a remote area which has a population of 48,100.
Applicant has no offices in Clallam and Jefferson counties. The closest offices of the Applicant and the Union
Bond banks are approximately 56 miles apart, including a toll bridge which costs $3 for a round trip. Applicant has total deposits from the Union Bond service
area of $706,536, which amounts to 0.74 percent of
the total deposits held by the Union Bond banks and
0.53 percent of all deposits held in the two counties.
Thus, it is apparent that the proposed acquisition will
have only a negligible effect upon existing competition
between the merger parties.
As of December 31, 1974, Applicant ranked first
among the commercial banks in Washington with 34
percent of total statewide deposits. The second largest
bank had a 19.2 percent share of the market. The
third, fourth and fifth largest had market shares of 8.8,
6.6 and 5.5 percent, respectively. It can thus be fairly
said that commercial banking in Washington, with the
two largest banks controlling more than 53 percent of
total deposits, already suffers from an unhealthy degree of concentration. The Union Bond banks collectively rank 10th among commercial banks in
Washington with 1 percent of total deposits. The proposed acquisition would increase Applicant's market
share to 35 percent and thus contribute importantly to
the trend toward increased concentration in banking in
Washington.
As of December 31, 1974, there were seven commercial banks (counting the Union Bond banks as
four) and one mutual savings bank in Clallam and Jef-

ferson counties. In terms of total deposits, the Union
Bond banks are the largest banks operating in the
area with a 74.4 percent market share. Of the remaining three commercial banks, only People's National
Bank of Washington, which ranks fourth statewide with
6.6 percent of total deposits, holds substantial deposits in the amount of $26,711,000 (20 percent of the
market). The Union Bond banks and People's National
Bank of Washington control 94.4 percent of the total
deposits in Clallam and Jefferson counties. Thus, the
proposed acquisition raises the spectre of the largest
banking system in the state moving into a new market
by purchasing a banking system which has a 74.4
percent share of the local market.
Washington banking law prevents Applicant from entering the Jefferson - Clallam market de novo through
establishment of a branch. The state law permits de
novo branching by a commercial bank outside of its
home county only in incorporated but unbanked communities, i.e., an out-of-county bank cannot open a
branch in an unincorporated area or in an incorporated
community which already has a bank. Since Applicant's home county is King County and since the area
it is desirous of servicing is outside of its home county,
is incorporated, but is already banked, Applicant appears to be precluded from opening branches in the
Jefferson - Clallam County communities on a de novo
basis. Furthermore, it appears that Applicant cannot
enter the market through the normal bank holding
company device due to statutory prohibition of multibank holding companies.
Consummation of the proposed acquisition will
instantaneously render Applicant the dominant commercial bank in the two-county area. In sum, the proposed acquisition will contribute importantly to the
seemingly inexorable movement toward a decidedly
unhealthy degree of concentration in commercial banking in Washington, and for that reason must be viewed
unsympathetically as having an adverse effect upon
competition.

THE FIRST NEW HAVEN NATIONAL BANK,
New Haven, Conn., and The North Haven National Bank, North Haven, Conn.
Banking offices
Name of bank and type of transaction

Total assets
To be
In
operation operated

The North Haven National Bank, North Haven, Conn. (15439), with
and The First New Haven National Bank, New Haven, Conn. (2), which had
merged Aug. 31, 1976, under charter and title of the latter bank (2). The merged bank at
date of merger had

COMPTROLLER'S DECISION
The North Haven National Bank, North Haven, Conn.
("North Haven Bank"), and The First New Haven National Bank, New Haven, Conn. ("New Haven National"), have applied to the Comptroller of the Currency for prior permission to merge under the charter
and with the title of The First New Haven National
Bank. The decision of the Comptroller is rendered pur86



$ 14,434,000
344,161,000
356,693,000

3
24
27

suant to an agreement executed between the proponent banks upon which the instant application rests,
and is incorporated herein by reference the same as if
fully set forth.
New Haven National, the charter bank, was chartered pursuant to applicable laws of the state of Connecticut in 1792, and became a national banking association in 1863. New Haven National's charter,

number 2, is the oldest national bank charter in continuous use in the United States. As of December 31,
1975, New Haven National held commercial bank deposits aggregating $285.4 million, and is the eighth
largest banking organization domiciled within the state
of Connecticut. The subject bank operates a total of 23
branch offices in the greater New Haven area and 1
branch in the Cayman Islands.
North Haven Bank, the merging bank, was chartered
in 1964, and is the only commercial bank headquartered within the community of North Haven. North
Haven Bank operates 2 branches in addition to its
main office, all of which are located in North Haven. At
year-end 1975, the bank controlled total deposits of
$13.3 million.
The head offices of the proponent banks are approximately 9 miles apart, and the two closest branches of
New Haven National and North Haven Bank are about
3 miles distant from each other.
New Haven National is the largest of 17 banking organizations operating in the New Haven banking market (an area encompassing portions of New Haven
and Middlesex counties) and North Haven Bank is the
eighth largest commercial bank in the area, and confines its services primarily to its home office town of
North Haven, and the contiguous towns of New Haven,
East Haven, Hamden, North Branford and Wallingford.
North Haven Bank's service area is completely encompassed by that of New Haven National. Inasmuch
as the subject banks are direct competitors, approval
of the instant proposal would have the effect of
eliminating existing competition between the two banking institutions.
Pursuant to the provisions of the Bank Merger Act of
1966, 12 USC 1828(c), the Comptroller of the Currency
cannot approve a merger transaction which would
have certain proscribed anticompetitive effects unless
the Office concludes that those anticompetitive effects
are clearly outweighed in the public interest by the
probable effect of the proposed transaction in
adequately meeting the convenience and needs of the
community to be served. Furthermore, the Comptroller
is also directed to fully consider the financial and managerial resources and future prospects of the existing
and proposed institution.
Connecticut law does make provision for de novo
branch banking, subject to home office protection.
Approval of this proposal would remove home office
protection from North Haven and open the community
to other banking organizations that have been precluded from entering the town since 1964. Further,
since December 31, 1975, mutual savings banks and
state-chartered savings and loan associations in Connecticut have been authorized to accept demand deposits and to offer personal checking accounts to their
customers. The effects of the proposed merger should
be positive within the relevant area inasmuch as the
resulting bank would have an increased lending limit,
and be able to provide a more sophisticated array of
credit services, including international banking and
trust services. Also, New Haven National possesses
the capital resources needed to make improvements in
North Haven Bank's physical facilities, an undertaking



which North Haven Bank has not been able to make
due to poor earnings and difficulties experienced in
making capital augmentations.
North Haven Bank has, since 1972, conducted a
search for a new president for the bank. To date, that
search has not proven successful and,,at the present
time, North Haven Bank's chairman and president are
inactive directors and the bank is without a cashier
and installment loan manager. Since its organization,
North Haven Bank has had five cashiers, and the bank
does not presently have in its employ any person who
is fully qualified to discharge the duties of this position
in the management staff. To further complicate the
situation, North Haven Bank does not have a formalized training program. New Haven National is currently providing, on an interim basis, an operating officer who is acting as a full-time chief operating officer
for North Haven Bank. New Haven National does have
a well developed management training program and
New Haven National is considered to presently possess the managerial talent and expertise necessary to
rectify the problems currently confronting North Haven
Bank. Accordingly, it is the conclusion of this Office
that the future prospects of the combined institution
are greatly enhanced via means of consummation of
this application, and the banking public will be better
served by the replacement of a restricted competitor
with a vibrant competitor that is a more meaningful
banking alternative.
It is therefore, the opinion of this Office that any anticompetitive effects of this proposal are clearly outweighed by the probable effects of the transaction in
adequately meeting the convenience and needs of the
community to be served, and by enhancing the future
prospects of the resulting institution through the provision of needed financial and managerial resources.
The application is thus deemed to be in the public
interest, and should be, and hereby is, approved.
July 27, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
It appears that the primary market served by Applicant
is an area encompassing portions of New Haven and
Middlesex counties and in which there are 22 towns.
Applicant has offices in 11 of the towns. Bank operates
all three of its offices in North Haven, one of the 22
towns in the Applicant's primary market, and Bank
confines itself primarily to serving the local North
Haven market. The nearest offices of Applicant and
Bank are about 3 miles apart, and the next nearest pair
of offices are 4 miles apart although there are offices of
other banks in the intervening area. As might be expected, Applicant draws a significant amount.of business from the primary market of Bank and is directly
competitive with Bank. For example, 1,349 demand
deposit accounts in Applicant, totalling $87 million,
originate in the area served by Bank. Bank obtained
669 demand deposit accounts, worth $297,400, from
persons located in New Haven. In addition, Applicant
appears to get many of the large loans in the area
served by Bank. Applicant had made 625 installment
loans to persons living in the area served by Bank (as
87

of September 30, 1975). It thus seems clear that the
proposed acquisition will eliminate existing competition
to a significant extent.
Applicant currently ranks as the eighth largest commercial bank in the state with 4.3 percent of total IPC
deposits. The proposed acquisition will enhance Applicant's statewide position very slightly — an increase
of 0.2 percent of total IPC deposits and no change in
ranking. However, Applicant is the largest banking
institution in its primary market area with a 26.5 percent share of total deposits, and the proposed acquisition would increase Applicant's share of the market to
27.7 percent and would also give Applicant a dominant position in the submarket served by Bank. Hence,

the proposed acquisition will increase concentration in
the relevant banking markets.
Connecticut law, which permits de novo branching
subject to home office protection, precludes Applicant
from branching into North Haven, but Applicant does
operate 12 branch offices in the adjacent towns which
fall within Bank's primary market. Bank has not
branched outside North Haven and appears unlikely to
do so owing to lack of resources.
In sum, the proposed acquisition will eliminate a
substantial volume of direct competition and will materially increase concentration in the relevant markets,
with the consequence that it would have an adverse effect upon competition.

UNITED STATES NATIONAL BANK IN JOHNSTOWN,
Johnstown, Pa., and The First National Bank of Coalport, Coalport, Pa.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

The First National Bank of Coalport, Coalport, Pa. (6887), with
and United States National Bank in Johnstown, Johnstown, Pa. (13781), which had
merged Sept. 15, 1976, under charter and title of the latter bank (13781). The merged bank
at date of merger had

COMPTROLLER'S DECISION
The First National Bank of Coalport, Coalport, Pa.
("Coalport Bank"), and United States National Bank in
Johnstown, Johnstown, Pa. ("USNB"), have applied to
the Comptroller of the Currency for prior permission to
merge under the charter and with the title of The
United States National Bank in Johnstown. The decision of the Office of the Comptroller is issued pursuant to an agreement executed between the proponent
banks upon which the instant application rests, and is
incorporated herein by reference the same as if fully set
forth.
USNB, the charter bank, was chartered as a national
banking association on September 22, 1933 and, as of
March 31, 1976, held commercial bank deposits aggregating $240 million. USNB operates its head office
in Johnstown and an additional 13 branch offices in
Cambria County. In addition, USNB also operates 3 offices in neighboring Somerset County, and has approval for the establishment of offices in University
Heights and Seward.
Coalport Bank, organized in 1903, operates its sole
office in the community of Coalport, and has total
commercial bank deposits of approximately $5.9 million. Due in large measure to the mountainous topography of the area, the mobility of the populace is limited, and Coalport Bank derives most of its business from the area within a 15-mile radius of Coalport.
The Carrolltown office of USNB is the closest office
of the charter bank to Coalport Bank's location, approximately 16 miles distant, and there is an office of
another bank located in the intervening area. Neither of
the proponent banks derives a significant amount of its
deposits or loan accounts from the primary service
88



$

7,476,000
274,767,000
282,244,000

1
15

16

area of the other and no appreciable degree of existing competition between two banking institutions
would be eliminated via means of the proposed transaction. Applicable Pennsylvania state branching statutes do make provision for the establishment of
branch offices within the home office county of a
commercial banking institution and in counties contiguous thereto. Therefore, USNB could legally establish a de novo office in Coalport Bank's home office
county of Clearfield. However, given the small population of Coalport (approximately 800 persons) and the
general decrease in population within the county, it
does not appear that USNB would consider such a
venture to be economically feasible; especially since a
state bank has recently received permission to establish a branch in Coalport.
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that consummation of the
instant proposal will provide the Coalport area with a
more meaningful banking alternative that is a more
vigorous competitor with a sound financial base and
capable management. Therefore, this application is
deemed to be in the public interest and should be, and
hereby is, approved.
July 28, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant operates principally in Cambria County, Pa.,
and also operates to a lesser extent in Somerset
County and Westmoreland County. Bank operates only
in Clearfield County, which abuts Cambria County. The
banking office of Applicant closest to Bank is about 16
miles distant and the remainder of the offices are considerably further apart. Thus, it appears that the pro-

posed acquisition would eliminate only a small amount of
existing competition.
Since neither bank operates in markets served by
the other, the proposed acquisition will not produce
any increase in concentration in either market.
Pennsylvania permits the establishment of branch offices only in the same county in which a bank maintains its principal office and in contiguous counties.
Thus, since Cambria County is contiguous to Clearfield
County, Applicant is free to branch into Clearfield

County in lieu of entering the market through acquisition. Indeed, entry via branching seems preferable to
entry via acquisition as a general proposition. However, given the population of Coalport (800) and the
recent decrease in population of Clearfield County, it
perhaps would not be economically feasible for Applicant to establish a branch in the county.
In sum, the proposed acquisition would cause some
anticompetitive effects, particularly in regard to the
elimination of potential competition.

FIRST NATIONAL BANK, CARBONDALE, PENNSYLVANIA,
Carbondale, Pa., and The First National Bank of Dickson City, Dickson City, Pa.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

The First National Bank of Dickson City, Dickson City, Pa. (13937), with
and First National Bank, Carbondale, Pennsylvania, Carbondale, Pa. (664), which had
merged Sept. 20> 1976, under charter and title of the latter bank (664). The merged bank
at date of merger had

COMPTROLLER'S DECISION
The First National Bank of Dickson City, Dickson City,
Pa. ("Merging Bank"), and First National Bank, Carbondale, Pennsylvania, Carbondale, Pa. ("Charter
Bank"), have applied to the Comptroller of the Currency for permission to merge under the charter and
with the title of the latter.
Merging Bank, a unit national banking organization,
was chartered in 1934, and currently has total commercial deposits of $18.6 million.
Charter Bank became a national banking organization in 1864. Located approximately 15 miles northeast
of Scranton, Pa., Charter Bank operates its main office
and six of its seven branches in Lackawanna County
(the seventh branch office is domiciled in Wayne
County). Charter Bank currently has total deposits of
$47.5 million.
Both Merging Bank and Charter Bank conduct
commercial banking operations within the Scranton,
Pa. banking market. The Scranton, Pa. banking market
is approximated by the whole of Lackawanna County,
the northeastern half of Wyoming County, the southern
half of Susquehanna County, and small contiguous
portions of Luzerne, Pike and Wayne counties. The
closest office of Charter Bank, the Archbald branch, is
located approximately 5 miles from Merging Bank, and
all offices of Charter Bank are located within a 13 miles
radius of Dickson City. Within the relevant banking
market, 24 banks operate 55 offices. Charter Bank is
currently the seventh largest commercial bank operating within the market, controlling 4.1 percent of market
deposits. Merging Bank is the second smallest bank
within the market, and controls approximately 1.5 percent of market deposits. Consummation of the proposed transaction would result in the surviving institution becoming the fourth largest commercial bank within
the market. The instant proposal would have the effect of
eliminating a small degree of direct competition between



$21,614,000
59,518,000
81,244,000

1
7
8

the two merging institutions; however, there are several
conveniently located banking alternatives, three of
which are located between the closest offices of Charter
Bank and Merging Bank, as to mitigate any adverse effect upon competition.
The statute, 12 USC 1828(c)(5)(b), the Comptroller
of the Currency must also consider the public interest
by being mindful of the probable effect of the transaction in meeting the convenience and needs of the
community to be served. Consummation of the subject
proposal would eliminate the current problem of management succession at Merging Bank. The lending
capacity of the resulting institution would be increased
and the resulting bank should be better able to serve
the needs of the banking community and result in a
more meaningful banking alternative which is better
able to compete with the larger financial institutions in
the market. Additionally, the resulting bank will provide
such new services as BankAmericard and additional
operating hours. On balance, it is the conclusion of this
Office that any slightly adverse competitive effects
inherent within this transaction are clearly outweighed
by the aspects of convenience and needs of the banking community to be served.
Accordingly, it is the opinion of this Office that the
proposed transaction is in the public interest and
should be, and hereby is, approved.
August 12, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The closest office of Applicant to that of Bank is located at Archbald which is 4.7 miles distant from
Dickson City. There are 3 intervening banks between
these offices. Applicant has another office at Mayfield
which is 8.6 miles distant from Bank and another at
Elmhurst which is 10.5 miles distant therefrom. All of
Applicant's banks are within a 12.5 mile radius of
Dickson City. A survey of accounts discloses that Ap89

plicant's banks have 67 customers in the Dickson City
banking market which represents a total of $41,000 in
deposits and $235,000 in loans. Bank has no accounts
in the Carbondale banking market. Thus, the proposed
merger would eliminate some existing competition between the participants.
In Lackawanna County, 16 county-based banks operated 39 banking offices on June 30, 1975. Bank is
the next to smallest bank based in this county, with 1.5
percent of total county deposits. Applicant is the
seventh ranked bank with 4.1 percent of county deposits. If the proposal is approved, Applicant will have
5.5 percent of such deposits and will rank fifth among

county-headquartered banks. The largest county bank
has 41.2 percent of these deposits, the second ranked
bank has 11.2 percent and the third ranked 8.1 percent. Therefore, the proposed merger would increase
concentration among commercial banking resources
in Lackawanna County to a small extent.
We conclude that the instant proposal would eliminate some direct competition between the merging
banks and would somewhat increase concentration
among the commercial banks based in Lackawanna
County. Its overall effect, however, would only be
slightly adverse.

Fl NATIONAL BANK,
Ironton, Ohio, and The First National Bank of Ironton, Ironton, Ohio
Banking offices

Name of bank and type of transaction

Total assets *

The First National Bank of Ironton, Ironton, Ohio (98), with
was purchased Sept. 30, 1976, by Fl National Bank, Ironton, Ohio (16607), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
Fl National Bank (organizing), Ironton, Ohio, has
applied to the Comptroller of the Currency for prior
permission to acquire all of the assets and assume all
of the liabilities of The First National Bank of Ironton,
Ironton, Ohio.
The First National Bank of Ironton, Ironton, Ohio, the
merging bank, was chartered as a national banking
association on June 6, 1890. As of March 31, 1976, the
merging bank held total deposits of $59.2 million.
The proposed purchase and assumption transaction
is the facility whereby the acquisition of The First National Bank of Ironton by First National Cincinnati Corporation, Cincinnati, Ohio, a registered multi-bank
holding company, will be accomplished. The instant
transaction would merely combine an existing commercial bank with a non-operating institution; and as

* Asset figures are as of call dates immediately before and after
transaction.

90



$64,442,000
1,200,000
66,670,000

In
To be
operation operated
1
0

1

such, without regard to the proposed acquisition of the
surviving bank by First National Cincinnati Corporation,
would have no effect upon competition within the
relevant banking market (approximated by the whole of
Lawrence County, Ohio).
Consequently, applying the statutory criteria, it is the
conclusion of this Office that the subject proposal is
not adverse to the public interest. Accordingly, this
application should be, and hereby is, approved.
August 30, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed transactions are parts of plans through
which First National Bank of Ironton and First National
Bank & Trust Company would become subsidiaries of
First National Cincinnati Corporation, a bank holding
company. The instant transactions, however, would
merely combine existing banks with non-operating
institutions; as such, and without regard to the acquisition of the surviving banks by First National Cincinnati
Corporation, it would have no effect on competition.

FT NATIONAL BANK,
Troy, Ohio, and The First National Bank & Trust Company, Troy, Ohio
Banking offices
Total assets *

Name of bank and type of transaction

In
-operation

The First National Bank & Trust Company, Troy, Ohio (3825), with
was purchased Sept. 30, 1976, by FT National Bank, Troy, Ohio (16608), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION

$76,998,000
2,400,000
81,467,000

with a non-operating institution; and as such, without regard to the proposed acquisition of the surviving bank by
First National Cincinnati Corporation, would have no effect upon competition within the relevant banking market
(approximated by the Dayton, Ohio banking market).
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that the subject proposal is
not adverse to the public interest and should be, and
hereby is, approved.
August 30, 1976.

FT National Bank (organizing), Troy, Ohio, has applied
to the Comptroller of the Currency for prior permission
to acquire all of the assets and assume all of the
liabilities of The First National Bank & Trust Company,
Troy, Ohio.
The First National Bank & Trust Company, Troy,
Ohio, the merging bank, was chartered as a national
banking association on December 16, 1887 and, as of
March 31, 1976, held commercial bank deposits aggregating $65.5 million.
The proposed transaction is the facility whereby First
National Cincinnati Corporation, Cincinnati, Ohio, a
registered multi-bank holding company, will acquire the
successor by purchase and assumption to The First National Bank & Trust Company. This transaction would
have the effect of merely combining an existing entity

SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed transactions are part of plans through
which First National Bank of Ironton and First National
Bank & Trust Company would become subsidiaries of
First National Cincinnati Corporation, a bank holding
company. The instant transactions, however, would
merely combine existing banks with non-operating
institutions; as such, and without regard to the acquisition of the surviving banks by First National Cincinnati
Corporation, it would have no effect on competition.

* Asset figures are as of call date immediately before and after
transaction.

*

To be
operated

*

*

CANAL NATIONAL BANK,
Portland, Me., and Central National Bank, Waterville, Me.
Banking offices
Name of bank and type of transaction

Total assets
In
operation

Central National Bank, Waterville, Me. (15954), with
and Canal National Bank, Portland, Me. (941), which had
merged Oct. 1, 1976, under charter and title of the latter bank (941). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Central National Bank, Waterville, Me. ("Central N/B"),
the merging bank, and Canal National Bank, Portland,
Me. ("CNB"), the charter bank, have applied to the
Comptroller of the Currency for prior permission to effectuate a merger under the charter and with the title of
Canal National Bank. The instant application rests
upon an agreement executed between the proponent
banks, and is incorporated herein the same as if fully
set forth.
Central N/B was chartered as a national banking association on March 30, 1972 and, as of May 28, 1976,
held total commercial bank deposits of $9.5 million.
Central N/B maintains its head office in the town of
Waterville and operates one branch office in Augusta,
the state capital.
CNB became a national banking association on May



$ 10,100,000
180,348,000
193,263,000

To be
operated

2
28
30

29, 1969, is the fifth largest bank in the state, and controls deposits aggregating approximately $147.5 million. CNB operates a system of 28 branches, concentrated in southern and south-central Maine.
Both Central N/B and CNB are wholly-owned banking subsidiaries of the sixth largest commercial banking organization domiciled within the state of Maine,
Canal Corporation, Portland, Me. Canal Corporation
controls 4 banks with total deposits of $183.4 million,
9.3 percent of total commercial bank deposits in
Maine.
The closest offices of the charter bank and merging
bank are approximately 25 miles distant, and given the
geographic distance that separates those two banks in
conjunction with their common ownership and control,
there is no meaningful degree of competition between
the two institutions.

91

Essentially the subject application represents a corporate reorganization whereby Canal Corporation is
consolidating its banking interests. Accordingly, the
application is not adverse to the public interest, and
should be, and hereby is, approved.
August 30, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging
sidiaries of the
their proposed
ganization and

banks are both wholly-owned subsame bank holding company. As such,
merger is essentially a corporate reorwould have no effect on competition.

THE CITIZENS NATIONAL BANK OF EVANSVILLE,
Evansville, Ind., and The Lamasco Bank, Evansville, Ind.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

The Lamasco Bank, Evansville, Ind., with
and The Citizens National Bank of Evansville, Evansville, Ind. (2188), which had
merged Oct. 1, 1976, under charter and title of the latter bank (2188). The merged bank
at date of merger had

COMPTROLLER'S DECISION
The Citizens National Bank of Evansville, Evansville,
Ind., the charter bank ("Citizens N/B"), and the
Lamasco Bank, Evansville, Ind., the merging bank
("Lamasco Bank"), have applied to the Comptroller of
the Currency for prior permission to merge into The
Citizens National Bank of Evansville. The subject application rests upon an agreement executed between
the proponent banks and is incorporated herein by
reference, the same as if fully set forth.
Citizens N/B was chartered in 1875 and, as of December 31, 1975, held total deposits of $191.6 million.
It currently operates six branch offices in Vanderburgh
County and has approval for the establishment of three
additional offices. Currently the second largest commercial bank in the county, Citizens N/B controls approximately 30 percent of the county deposits.
Lamasco Bank, organized in 1914, is the smallest of
five commercial banks domiciled in Vanderburgh
County, and has commercial bank deposits aggregating $17.6 million, which represent 3 percent of deposits within the county.
Lamasco Bank's sole office is located approximately
1 mile from the main office of Citizens N/B. There are,
however, six banking offices, including the main office
of each of the remaining three commercial banks
domiciled in Evansville, within two blocks of the head
office of the charter bank. Citizens N/B also operates a
branch office about 1 mile west of Lamasco Bank's
site, but there is an intervening office of another bank
between those two offices of the proponent banks.
Lamasco Bank's entire service area is enveloped by
that of Citizens N/B, and approval of the subject transaction would have the effect of eliminating some degree of existing competition between the charter and
merging banks and foreclose the possibility of any future competition developing between these two banks.
Although applicable Indiana state statutes do make
provision for county-wide de novo branching, Lamasco
Bank, in its half century of existence, has not established any branches and, given its small size and other



$ 21,295,000
231,241,000
252,081,000

pertinent factors outlined within this decision, the likelihood of Lamasco Bank utilizing this mode of expansion, appears remote.
Pursuant to the provisions of the Bank Merger Act of
1966, 12 USC 1828(c), the Comptroller of the Currency
cannot approve a merger transaction which would
have certain proscribed anticompetitive effects unless
the Office concludes that those anticompetitive effects
are clearly outweighed in the public interest by the
probable effects of the proposed transaction in
adequately meeting the convenience and needs of the
community to be served. Furthermore, the Office of the
Comptroller is also directed to fully consider the financial and managerial resources and future prospects of
the existing and proposed institutions.
Lamasco Bank is located On the west side of the city
of Evansville, approximately 1 mile from the city's
downtown business district, in an area formerly referred to as Lamasco City. Formerly a residential
neighborhood composed of citizens of German extraction, the area has experienced a period of major transition, and is presently developed into an industrial and
commercial complex with the few remaining residential
dwellings in a general state of decline. The majority of
Lamasco Bank's customers are former neighborhood
residents who have moved away from the immediate
area, (only approximately 30 percent of the bank's customers live within a 1-mile radius of Lamasco Bank's
site) but have maintained their accounts with Lamasco
Bank due to ethnic bonds and personal loyalty to
senior management of the bank. With the major transition within Lamasco Bank's primary service area, the
merging bank's conservative operational policies and
resultant lack of growth, have placed the bank in a position which in effect precludes it from successfully
competing for the banking business of the commercial
and industrial concerns that have recently entered the
area around Lamasco Bank. Consequently, those
businesses have sought the services of the larger, more
aggressive, commercial banks located in Evansville.
In passing upon this application, it is noted that in

addition to the significantly larger commercial banks
located within Vanderburgh County, Lamasco Bank
must also compete with seven savings and loan associations, six of which have larger share accounts (deposits) than does Lamasco Bank; two industrial banks;
and 10 credit unions. A review of Lamasco Bank's loan
portfolio reveals that approximately 50 percent of the
loan portfolio is in real estate loans, 18 percent is in direct auto financing extensions and only 25 percent is
in the area of commercial and industrial loans. It is evident from that review that Lamasco Bank has operated
in a fashion more like a mortgage banking institution or
savings and loan institution, than a commercial bank.
As aforenoted, many of Lamasco Bank's customers
have maintained a business affiliation with the bank
because of personal loyalties to the merging bank's
senior management. The majority of the children of the
long-time customers do not, however, share that feeling of personal loyalties and ethnic identity with the
bank. Consequently, they conduct their banking business elsewhere. The former president of the Lamasco
Bank, Mr. E. J. Schroeder, passed away in July 1975,
and the current bank president, Mr. Lawrence Goebel,
who is 67 years of age, has said he is most anxious to
retire; there is no member of the bank's present management who appears to be fully capable of assuming
the duties of that position. Additionally, members of the
board of directors of Lamasco Bank have made it
known that they wish to become less involved in the affairs of the bank and, further, that they have no desire
to, or intention of, serving on the board of the resulting
bank.
Inasmuch as the majority of Lamasco Bank's stock is
held by the bank's directors, all of whom have expressed a desire to get out of the banking business,
and given the extremely conservative manner in which
this bank has historically operated, this Office must
consider the questions: How effectively is Lamasco
Bank competing with other institutions in the area?
How well is this bank serving the banking needs of the
public? Would denial of this application serve to preserve an independent banking alternative in the
Evansville area? The Office concludes that Lamasco
Bank is far from being considered an aggressive competitor and, although a superficial analysis of the facts
of record shows that the merging bank controls approximately 3 percent of commercial bank deposits in
Vanderburgh County, and that approval of this application would result in the charter bank holding approximately one-third of the total deposits within the county,
further analysis indicates that Lamasco Bank's deposits size is only half that of the fourth largest commercial bank in the county, and the ranking of Citizens
N/B as the second largest bank in the county would be
unchanged on a pro forma basis. Due to its small size,
and its extremely conservative trend of operations
(approximately 22 percent of Lamasco Bank's investment portfolio is in U. S. Treasury securities and over
40 percent of its total deposits are invested in U. S.
government obligations), the merging bank is simply
unable, and essentially lacks the desire, to provide a
full range of banking services to all segments of the




Evansville banking public. Lamasco Bank has only a
nominal 2 percent of total commercial and industrial
loans originating from within Vanderburgh County.
The record reflects that the charter bank is not the
only bank in the Evansville area that has expressed the
desire to become a merger partner with Lamasco
Bank. Given the sum of these factors, this Office must
conclude that it is simply a matter of time until
Lamasco Bank ceases to be an independent entity
and that the public is not well served by this present
situation. Approval of this application would have the
effect of replacing a lethargic institution with a competitor which provides more banking alternatives, and
one which is better able to serve the full banking
needs of the public.
A review of both banks indicates that both are in
satisfactory financial condition and, with the exception
noted concerning Lamasco Bank's lack of management depth, both banks are capably managed
institutions.
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that any anticompetitive effects attendant to the proposed merger are clearly
outweighed by considerations relating to the convenience and needs of the area to be served, and that the
public will be served by a more aggressive and meaningful banking alternative. Also, Citizens N/B is considered to possess both the financial and managerial
resources necessary to enhance the future prospects
of the surviving institution. Therefore, this application is
deemed to be in the public interest, and should be,
and hereby is, approved.
August 12, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The only office of Bank is located about 1 mile from the
headquarters office of Applicant. However, there are
six banking offices, including the main offices of the
remaining three commercial banks in Evansville, within
two blocks of Applicant's headquarters. Applicant also
operates a branch office about a mile west of Bank,
but another bank operates a branch in the intervening
area. Thus, it appears that there is direct competition
between Applicant and Bank.
Indiana is a limited branching state, where commercial banks can only branch in the county in which a
bank is headquartered. Thus, Applicant and Bank are
limited in their branching to Vanderburgh County. In
that county, there are five commercial banks with 29
offices, all but two of which are located in Evansville.
As of June 30, 1975, Applicant held the second largest
share, approximately 30 percent, of total deposits in
the county. Bank held the fifth largest share, about 3
percent. As a consequence of the proposed acquisition, Applicant's share of the market would increase to
33 percent and the top three banks would control over
90 percent of total deposits.
In sum, the proposed acquisition would both eliminate some direct competition and produce an increase
in concentration. Accordingly, it would have an adverse competitive effect.

93

THE NATIONAL BANK OF GEORGIA,
Atlanta, Ga., and The Hamilton Bank and Trust Company, Atlanta, Ga.
Name of bank and type of transaction

Total assets *

Banking offices
In
To be
operation operated

The Hamilton Bank and Trust Company, Atlanta, Ga., with
was purchased Oct. 8, 1976, by The National Bank of Georgia, Atlanta, Ga. (15541), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On October 8, 1976, application was made to the
Comptroller of the Currency for prior written approval
for The National Bank of Georgia, Atlanta, Ga., ("Assuming Bank") to purchase certain of the assets and
assume certain of the liabilities of the Hamilton Bank
and Trust Company, Atlanta, Ga., ("Hamilton").
On October 8, 1976, Hamilton was a state-chartered
bank operating through its main office and one branch
office with deposits of approximately $30 million. In the
afternoon of October 8, 1976, Hamilton was declared
insolvent and the Federal Deposit Insurance Corporation ("FDIC") was appointed as receiver. The present
application is based upon an agreement, which is
incorporated herein by reference, by which the FDIC
as receiver has agreed to sell certain Hamilton assets
and liabilities to the Assuming Bank. For the reasons
stated hereafter, the Assuming Bank's application is
approved and the purchase and assumption transaction may be consummated immediately.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds those anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution and the convenience and needs of the
community to be served. When necessary, however, to
prevent the evils attendant upon the failure of a bank,
the Comptroller can dispense with the uniform standards applicable to usual acquisition transactions and
need not consider reports on the competitive consequences of the transaction ordinarily solicited from the
* Asset figures are as of call dates immediately before and after
transaction.


94


$39,622,000

2

380,969,000
404,122,000

27
29

Department of Justice and other banking agencies. He
is authorized in such circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the immediate consummation of
the transaction.
The proposed acquisition will prevent disruption of
banking services to the community and potential losses to a number of uninsured depositors. The Assuming Bank has sufficient financial and managerial resources to absorb Hamilton and enhance the banking
services it offers in the Atlanta market.
The Comptroller thus finds that the proposed transaction will not result in a monopoly, be in furtherance of
any combination or conspiracy to monopolize or attempt to monopolize the business of banking in any
part of the United States, and that the anticompetitive
effects of the proposed transaction, if any, are clearly
outweighed in the public interest by the probable effect of the proposed transaction in meeting the convenience and needs of the community to be served.
For those reasons, the Assuming Bank's application to
acquire certain liabilities and purchase certain assets
of Hamilton as set forth in the agreement executed with
the IC as receiver, is approved. This approval also
includes specifically approval to operate all offices of
Hamilton as branches of the Assuming Bank and approval of the transfer to the Assuming Bank of Hamilton's trust business as provided in the agreement. The
Comptroller further finds that the failure of Hamilton requires him to act immediately, as contemplated by the
Bank Merger Act, to prevent disruption of banking services to the community. The Comptroller thus waives
publication of notice, dispenses with the solicitation of
competitive reports from other agencies and authorizes the transaction to be consummated immediately.
October 8, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

NEW JERSEY BANK (NATIONAL ASSOCIATION),
Clifton, N.J., and Plaza National Bank, Secaucus, NJ.
Banking offices
Total assets

Name of bank and type of transaction

In
operation

Plaza National Bank, Secaucus, N J . (15228), with
and New Jersey Bank (National Association), Clifton, N J . (15709), which had
merged Oct. 18, 1976, under charter and title of the latter bank (15709). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Plaza National Bank, Secaucus, N.J. ("Plaza N/B"), the
merging bank, and New Jersey Bank (National Association), Clifton, N.J. ("NJB"), the charter bank, have
applied to the Comptroller of the Currency for prior
permission to merge under the charter and with the
title of New Jersey Bank (National Association).
Plaza N/B was chartered as a national banking association on December 23, 1963, and as of March 31,
1976, held total commercial bank deposits of $25.2
million. Plaza N/B maintains its head office and one
branch in Secaucus and one branch in West New
York, all in Hudson County, N.J.
NJB, with deposits of approximately $675 million,
operates a total of 40 banking offices in seven counties
of northern and northeastern New Jersey.
Both Plaza N/B and NJB are wholly-owned banking
subsidiaries of Greater Jersey Bancorp., West Paterson, N.J., the sixth largest commercial banking organization domiciled within the state of New Jersey.
Greater Jersey Bancorp, has one other banking subsidiary, Provident Bank of New Jersey, Willingboro.

$ 28,432,000
825,071,000

To be
operated

3
39
42

853,503,000

Given the common ownership and control of both
the merging bank and the charter bank, there is no
significant degree of competition existing between
these two institutions, nor is there a potential for such
competition to develop in the future. The subject transaction essentially effects a corporate reorganization
and, of itself, will have no adverse impact upon competition.
Additionally, the merger of these two banks will result in certain economies of operation, streamline the
bank holding company operation, increase efficiency
and simplify the management structure.
In conclusion, it is the opinion of this Office that the
subject proposal is not adverse to the public interest
and should be, and hereby is, approved.
September 7, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging banks are both wholly-owned subsidiaries of the same bank holding company. As such,
their proposed merger is essentially a corporate reorganization and would have no effect on competition.

THE CUMBERLAND NATIONAL BANK OF BRIDGETON,
Bridgeton, NJ., and United Jersey Bank/City National, Vineland, N.J.
Banking offices
Name of bank and type of transaction

Total assets
In
operation

United Jersey Bank/City National, Vineland, N.J. (14673), with
and The Cumberland National Bank of Bridgeton, Bridgeton, N.J. (1346), which had..
merged Nov. 1, 1976, under charter of the latter bank (1346) and title "United Jersey
Bank/Cumberland National." The merged bank at date of merger had

COMPTROLLER'S DECISION
United Jersey Bank/City National, Vineland, N.J. ("City
National"), the merging bank, and Cumberland National Bank of Bridgeton, Bridgeton, N.J. ("CNB"), the
charter bank, have applied to the Comptroller of the
Currency for prior permission to effectuate a merger
under the charter of Cumberland National Bank of
Bridgeton, and with the title of United Jersey Bank/
Cumberland National. The instant application rests
upon an agreement executed between the proponent
banks, and is herein incorporated by reference the
same as if fully set forth.
City National became a national banking association
on April 26, 1972. As of March 31, 1976, City National



$29,098,000
54,820,000

To be
operated

4
4

83,918,000

held total commercial bank deposits of approximately
$27 million at its main office and three branches, all
domiciled in Millville. The merging bank also has an
approved, but unopened, branch office in the city of
Vineland.
CNB was chartered as a national banking association on September 28, 1970, and has deposits aggregating $43.9 million. CNB operates its main office
and two branches in the community of Bridgeton and
one branch in Hopewell Township.
The proponent banks are both wholly-owned subsidiaries of United Jersey Banks, Princeton, N.J., a
registered bank holding company. United Jersey Banks
is the second largest banking organization in the state of

95

New Jersey, with 14 subsidiary banks controlling 7.1
percent of all commercial bank deposits in the state.
All offices of the charter bank and the merging bank
are located within Cumberland County, and the closest
offices of the two banks are approximately 11 miles
apart. However, given the common ownership and
control of City National and CNB by United Jersey
Banks, approval of this application would not have the
effect of eliminating any meaningful degree of existing
competition between the two banks, nor would the
proposed merger affect the potential for increased
competition, nor alter the share of deposits held in any
relevant area by the parent bank holding company.
Inasmuch as the instant application essentially represents a corporate reorganization whereby United
Jersey Banks is realigning and consolidating its banking interests, there is no basic change in the competi-

tive environment within which the proponent banks
must operate and the convenience and needs of the
banking community will be unaltered. The greatest degree of change will relate to the financial and managerial resources and future prospects of the combined
institution.
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that the instant application is
not adverse to the public interest, and is hereby approved.
October 1, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL

The merging banks are both wholly-owned subsidiaries of the same bank holding company. As such,
their proposed merger is essentially a corporate reorganization and would have no effect on competition.

VIRGINIA NATIONAL BANK,
Norfolk, Va., and Fairfax County National Bank, Seven Corners, Va.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Fairfax County National Bank, Seven Corners, Va. (14824), with
and Virginia National Bank, Norfolk, Va. (9885), which had
merged Nov. 12, 1976, under charter and title of the latter bank (9885). The merged bank
at date of merger had

COMPTROLLER'S DECISION

Virginia National Bank, Norfolk, Va. ("VNB"), the charter bank, and Fairfax County National Bank, Seven v.
Corners, Va. ("FCNB"), the merging bank, have
applied to the Comptroller of the Currency for prior
permission to effectuate a merger under the charter
and with the title of Virginia National Bank. The instant
application rests upon an agreement executed between the proponent banks, and is incorporated herein
by reference the same as if fully set forth.
VNB was chartered as a national banking association on November 5, 1910, and as of June 20, 1976,
had commercial bank deposits aggregating approximately $1.5 billion. A wholly-owned banking subsidiary
of Virginia National Bankshares, Inc., Norfolk, Va., a
registered bank holding company with five subsidiary
banks, VNB serves as the lead bank of Virginia National Bankshares, Inc., and operates 123 offices in 24
counties and 18 independent cities throughout the
Commonwealth of Virginia.
FCNB became a national banking association on
December 30, 1957, and has total deposits of $55.9
million at its main office and 10 branches in Fairfax
County and one branch in tbe independent city of Falls
Church.
FCNB has, since 1963, been a subsidiary of American Security Corporation, Washington, D. C, which
controls 96.5 percent of the outstanding voting shares
of FCNB. The Board of Governors of the Federal Reserve System has determined that the relationship
existent between American Security Corporation and
Digitized for 96
FRASER


$

62,491,000
1,804,327,000
1,862,225,000

11
119
130

FCNB is in violation of the Bank Holding Company Act
of 1956, as amended and, on November 12, 1974, the
Board ordered American Security Corporation to reduce its ownership of FCNB to less than 25 percent by
November 12, 1976. The instant application is evidence of American Security Corporation's attempt to
comply with the Board's order.
As aforenoted, all of the offices of FCNB are
domiciled within the Washington, D. C. Metropolitan
Area. The relevant banking market to be considered in
this application is approximated by the Washington, D.
C. SMSA which includes the District of Columbia; the
Maryland counties of Charles, Montgomery and Prince
Georges; and the Virginia counties of Arlington, Fairfax, Loudoun and Prince William; in addition to the
independent cities of Alexandria, Fairfax and Falls
Church, Va. VNB has two offices in Falls Church where
FCNB has one office. Another subsidiary of Virginia
National Bankshares, Inc., Virginia National Bank/
Fairfax, has two offices in Fairfax County where the
remaining 11 FCNB offices are located. The closest offices of VNB and FCNB appear to be in the city of Falls
Church, approximately 0.75 mile east of and 0.5 mile
south of FCNB's Falls Church branch. Additionally,
Virginia National Bank/Fairfax recently opened a
branch in Springfield, 0.5 mile north of FCNB. Therefore, approval of this proposal would have the effect of
eliminating a degree of existing competition between
charter bank and merging bank. However, given the
large number of banking alternatives available within
the relevant market and the relatively small share of

market deposits to be controlled (the combined bank
would rank as sixth largest of 17 commercial banks in
Fairfax County, with 2.4 percent of the total deposits in
the market), this proposal would have only a de
minimus effect upon competition.
Pursuant to applicable Virginia state branching statutes, a commercial bank may branch within the city or
county limits of its principal office and in contiguous
cities and towns. Thus, the proposed acquisition would
foreclose the potential for future competition between
VNB and FCNB. That is mitigated, however, by the fact
that Virginia National Bankshares, Inc., is the second
smallest of the seven bank holding companies operating in the Northern Virginia area and, further, by the
fact that there does not appear to be any independent
bank in the relevant area that is able to absorb an
institution the size of FCNB.
The Comptroller of the Currency, pursuant to the
provisions of the Bank Merger Act of 1966, 12 USC
1828(c), cannot approve any transaction which would
have certain proscribed anticompetitive effects unless
the Office concludes that those anticompetitive effects
are clearly outweighed in the public interest by the
probable effects of the proposed transaction in
adequately meeting the convenience and needs of the
community to be served. Furthermore, the Office of the
Comptroller is also directed to fully consider the financial and managerial resources and future prospects of
the existing and proposed institution.
The Federal Reserve Board, in ordering the severing
of the affiliation between American Security Corporation and FCNB, was of the opinion that the public
would be better served if that affiliation were broken.
Approval of this proposal would better serve the public
because the resulting bank would have an increased
lending limit, provide sophisticated trust services, offer
international services, have greater access to capital
markets and operational efficiencies and provide for
management depth and management succession, to
better serve the public and insure the successful future
prospects of the combined institution through the establishment of a financially sound, well-managed bank.
Accordingly, applying the statutory criteria, it is the
opinion of this Office that the elimination of any slight
degree of competition between the proponent banks is
clearly outweighed by considerations relating to convenience and needs and future prospects of the combined bank. Therefore, it is the conclusion of the Office
of the Comptroller of the Currency that this transaction
is in the public interest and should be, and hereby is,
approved. This approval is conditioned upon the ratification of at least two-thirds of the outstanding voting
shares of both VNB and FCNB, as required by 12 USC
215(a).
October 12, 1976.




SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant operates one office in Fairfax County from
which it derived $5.4 of its total deposits, and it ranks
17th out of 20 commercial banks in the county. Bank,
with 11 county offices from which it derived $41.9 million in total deposits, ranks sixth in the country. The
closest offices of Applicant and Bank are 1 mile apart.
Thus, Applicant's deposits emanating from the county
constitute 11.0 percent of Bank's total deposits, a
small but not significant amount of competition. The
proposed acquisition will, therefore, eliminate some
existing .competition.
Fairfax County has 20 banks with 102 offices. As of
June 30, 1975, the four largest banks in the market
held 60.4 percent of total deposits, and 57.2 percent
demand IPC deposits. Applicant's share of the market
of total deposits is 0.7 percent (0.8 percent demand
IPC), whereas Bank's share of the market of total deposits is 5.6 percent (6.2 percent demand IPC). Combining both shares results in 6.2 percent share of total
deposits (7.1 percent demand IPC). The proposed acquisition represents the joinder of the sixth and the
17th largest commercial banks in the county (in terms
of total deposits), and the resulting bank will continue
to rank sixth. Within the Washington, D. C. SMSA, Applicant has a market share of total deposits of 1.8 percent. Bank's share of that market is 0.6 percent, or a
combined share of 2.4 percent. Regardless of whether
one views the proposed acquisition in the context of
Fairfax County or the Washington, D.C. SMSA, it appears that consummation of the transaction will not
contribute importantly to an increase in concentration.
Under Virginia law a bank may branch within the
town, city, or county limits of its principal office and in
contiguous cities and counties, unless offices are acquired by merger. Since Applicant has one branch already in the market, de novo branching would be a
practical means of expansion within Fairfax County.
Hence, the proposed acquisition would eliminate potential competition. This fact is mitigated somewhat
because of the divestiture order. The Bank must be
sold, and Applicant ranks sixth out of seven among the
bank holding companies in the Northern Virginia area
that possess the requisite financial wherewithal to
make an acquisition of this size. It does not appear
that any independent bank in the area is able to absorb an institution the size of Bank. Thus, given the
necessity to sell Bank, a sale to Applicant is much less
undesirable than would be a sale to other potential
purchasers.
In sum, the proposed acquisition will eliminate some
direct competition, will slightly increase concentration
and will eliminate potential competition, the cumulative
effect of which is that it will have some adverse effect
upon competition.

97

THE ONEIDA NATIONAL BANK AND TRUST COMPANY OF CENTRAL NEW YORK,
Utica, N.Y., and Ogdensburg Trust Company, Ogdensburg, N.Y.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Ogdensburg Trust Company, Ogdensburg, N.Y., with
and The Oneida National Bank and Trust Company of Central New York, Utica, N.Y. (1392),
which had
merged Nov. 19,1976, under charter and title of the latter bank (1392). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Ogdensburg Trust Company, Ogdensburg, N.Y.
("Merging Bank"), and The Oneida National Bank and
Trust Company of Central New York ("Charter Bank"),
Utica, N.Y., have applied to the Comptroller of the Currency for prior permission to effectuate a merger under
the charter and with the title of The Oneida National
Bank and Trust Company of Central New York. The
instant application rests upon an agreement executed
between the proponent banks, and is incorporated
herein by reference the same as if fully set forth.
Merging Bank was chartered as a state banking organization in 1829 and, as of December 31, 1975, controlled commercial bank deposits aggregating $27.6
million. In addition to its main office and one branch
domiciled within the community of Ogdensburg, Merging Bank operates one branch office in St. Regis Falls.
Charter Bank was organized in 1836, and became a
national banking association on July 5, 1865. With its
present network of 29 branch offices which cover
segments of nine counties within the northcentral section of the state, Charter Bank, as of year-end 1975,
held total deposits of approximately $412 million.
The main offices of Merging Bank and Charter Bank
are approximately 130 miles apart, and the closest offices of the two proponent banks are separated by
nearly 100 road miles. Due to the geographic distance
involved, the presence of intervening banks and other
banking alternatives available to the banking public,
approval of this application would not have the effect
of eliminating any meaningful degree of existing competition between Merging Bank and Charter Bank. Although applicable state banking statutes would legally
permit Merging Bank and Charter Bank to expand de
novo into each other's primary service area, Merging

98



$ 35,471,000

3

524,974,000

30

552,015,000

33

Bank does not appear to possess either the willingness or resources necessary to do so. Likewise, due to
the declining population and economic status of the
Ogdensburg area, it appears highly unlikely that Charter Bank would choose this means to enter the service
area of Merging Bank. It is/therefore, the conclusion of
this Office that the foreclosure of any potential competition between these two banks is not significant.
Approval of this application would provide for management succession at Merging Bank and the future
prospects of the combined institution appear favorable. Also, the banking public in the Ogdensburg area
would be provided with a financially sound institution
that is a more meaningful banking alternative that will
serve as a source of full-service banking for the community.
The Office of the Comptroller of the Currency, therefore, concludes that consummation of this proposal is
in the public interest and should be, and hereby is,
approved.
October 14, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant, the largest independent bank in Upstate
New York, proposes to acquire a three office bank, the
closest office of which is 100 miles away. No direct
competition is involved.
Several major competitors operate in Applicant's
area but they, too, are considerable distances from
Bank. It thus appears that, if the area in which Bank
operates should be suitable for de novo entry, Applicant would be among the smaller potential entrants.
Accordingly, we conclude that the probable effect of
the proposed merger on competition is not adverse.

FIRST NATIONAL BANK OF RIO GRANDE CITY,
Rio Grande City, Tex., and First State Bank & Trust Company, Rio Grande City, Tex.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operationi operated
First State Bank & Trust Company, Rio Grande City, Tex., with
was purchased Nov. 29, 1976, by First National Bank of Rio Grande City, Rio Grande City,
Tex. (16618), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
On November 26, 1976, application was made to the
Comptroller of the Currency by the First National Bank
of Rio Grande City, Rio Grande City, Tex. ("Assuming
Bank"), for permission to purchase certain of the assets and assume the liabilities of the First State Bank &
Trust Company, Rio Grande City, Tex. First State Bank
& Trust Company was placed in receivership and
taken over by the Federal Deposit Insurance Corporation on November 24, 1976.
Assuming Bank's application rests upon an agreement incorporated herein by reference, the same as if
fully set forth, between the Assuming Bank and the
Federal Deposit Insurance Corporation, as receiver.
For the reasons set forth below, this application is
hereby approved and the Assuming Bank is hereby
authorized immediately to consummate the purchase
and assumption transaction.
Under the Bank Merger Act, 12 USC 1828(c), the
Comptroller cannot approve a purchase and assumption transaction which would have certain proscribed
anticompetitive effects unless he finds those anticompetitive effects to be clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community
to be served. Additionally, the Comptroller is directed
to consider the financial and managerial resources
and future prospects of the existing and proposed
institution and the convenience and needs of the
community to be served. When necessary, however, to
prevent the evils attendant upon the failure of a bank,
the Comptroller can dispense with the uniform standards applicable to usual acquisition transactions and
need not consider reports on the competitive consequences of the transaction ordinarily solicited from the
Department of Justice and other banking agencies. He




$15,480,000

1

1,500,000
14,874,000

0
1

is authorized in such circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the immediate consummation of
the transaction.
The proposed acquisition will be in accord with all
pertinent provisions of the National Bank Act and will
prevent disruption to the community. The Assuming
Bank will have sufficient financial and managerial resources to enable it to continue banking services in
Rio Grande City and environs. Thus, the approval of
this transaction will help to avert a loss of public confidence in the banking system, and a loss of banking
services to the community. The Comptroller finds that
there are no anticompetitive effects of the proposed
transaction. First State Bank & Trust Company was the
only operating bank within Starr County, Tex., and the
only bank within approximately 40 miles of Rio Grande
City. For the reasons indicated, the Assuming Bank's
application to purchase certain of the assets and assume the liabilities of First State Bank & Trust Company, as set forth in the agreement between the Federal Deposit Insurance Corporation, as receiver, and
the organizers of First National Bank of Rio Grande
City, is approved.
The Comptroller further finds that the failure of First
State Bank & Trust Company requires immediate action as contemplated by the Bank Merger Act, to prevent continued disruption of banking services to the
community. The Comptroller thus waives publication of
notice, dispenses with the solicitation of competitive
reports from other agencies and authorizes the transaction to be consummated immediately.
November 29, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

99

AMERICAN NATIONAL BANK,
Hamden, Conn., and Laurel Bank and Trust Company, Meriden, Conn.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
Laurel Bank and Trust Company, Meriden, Conn., with
and American National Bank, Hamden, Conn. (15496), which had
merged Dec. 1, 1976, under charter and title of the latter bank (15496). The merged bank
at date of merger had

COMPTROLLER'S DECISION

Laurel Bank and Trust Company, Meriden, Conn.
("Merging Bank"), and American National Bank, Hamden, Conn. ("Charter Bank"), have applied to the
Comptroller of the Currency for prior permission to effectuate a merger under the charter and with the title of
American National Bank. The instant application rests
upon an agreement executed between the proponent
banks, and is incorporated herein by reference the
same as if fully set forth.
Merging Bank was organized in 1968, and operates
its main office in Meriden, New Haven County, and two
branch offices in adjoining Middlesex County, approximately 7 and 10 miles, respectively, from the head office. As of March 31, 1976, Merging Bank had total
deposits of $22.7 million, was the fourth largest of six
commercial banks serving Meriden and ranked fifth
among 12 commercial banks serving Middlesex
County.
Charter Bank became a national banking association on March 30, 1965, now has deposits of $38.8 million and operates four offices, three in Hamden and
one in West Haven.
The closest offices of the proponent banks are Merging Bank's head office in Meriden and Charter Bank's
offices in Hamden, approximately 14 miles apart.
There are however, several offices of other banks
within the intervening area; existing competition between Charter Bank and Merging Bank is minimal and
there does not appear to be the possibility of a substantial increase in competition between these two
banks in the foreseeable future. Merging Bank has experienced little growth over the past 3 operating years,
and the bank's generated earnings have shown a significant decline during the same period. Additionally,
Merging Bank has sustained substantial loan losses
which have begun to erode the subject bank's capital
accounts. Consequently, the internal operating difficulties experienced recently by Merging Bank have affected the bank's ability to act as viable competitor.
The combination of the financial and managerial resources of Merging Bank and Charter Bank should


100


$24,869,000
54,779,000

3
4

79,907,000

better enhance the favorable future prospects of the
surviving bank, and the banking public will be better
served by a stronger, more meaningful banking alternative.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that this proposal is in the public interest and
should be, and hereby is, approved.
November 1, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL

Bank concentrates its business activity in upper New
Haven County and the adjoining area of Middlesex
County. Its two branches in Middlesex County are 7
and 10 miles, respectively, from its head office in
Meriden. Applicant's offices in Hamden are about 14
miles from Bank's closest office and its West Haven office is 29 miles from Bank's nearest office. Thus, the
two banks are oriented toward different geographic
areas and it appears that the proposed acquisition
would not eliminate existing competition to any appreciable extent. Moreover, because of Connecticut banking laws, neither bank can branch into the two where the
other's head office is located.
Both banks are rather small. In Hamden, although
Applicant ranks first in local deposits among the six
commercial banks serving the town, the other banks
are five of the nine largest commercial banks in the
state. Bank ranks fourth among the six commercial
banks serving Meriden, among which are four of the
largest commercial banks in the state. In Middlesex
County, Bank ranks fifth among the 12 commercial
banks serving the county, which includes five of the
state's largest. It thus appears that the proposed acquisition may produce a commercial bank which is
better able to compete against the large banks currently serving the affected towns. Furthermore, given
the highly concentrated structure of Connecticut banking, where the top 10 among the state's 70 banks hold
82 percent of deposits, the proposed merger of two of
the smaller banks in the state may prove to be procompetitive.

THE FIRST NATIONAL BANK AND TRUST COMPANY OF WESTERN MARYLAND,
Cumberland, Md., and The First National Bank of Mount Savage, Mount Savage, Md.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

The First National Bank of Mount Savage, Mount Savage, Md. (6144), with
and The First National Bank and Trust Company of Western Maryland, Cumberland, Md. (381),
which had
merged Dec. 1, 1976, under charter and title of the latter bank (381). The merged bank
at date of merger had

COMPTROLLER'S DECISION
The First National Bank of Mount Savage, Mount Savage ("Mount Savage Bank"), and The First National
Bank and Trust Company of Western Maryland, Cumberland ("FNBTC"), have applied to the Comptroller of
the Currency for prior consent to merge under the
charter and with the title of the latter.
Mount Savage Bank, the merging bank, was organized as a national banking association in 1902 and,
with total commercial bank deposits of $2 million, now
is the smallest of eight commercial banks operating in
Allegany County.
FNBTC, the charter bank, opened for business in
1812, and converted to a national bank charter in
1864. Currently the largest bank domiciled in Allegany
County, FNBTC, as of March 31, 1976, held total deposits of $68.3 million. FNBTC operates its head office
and three branches in Cumberland and one branch
each in Creseptown and La Vale.
The head offices of the merging banks are approximately 10 miles apart, and the closest office of FNBTC
to Mount Savage Bank is the La Vale office, approximately 7 miles away. The proposed merger would
therefore have the effect of eliminating a de minimis
degree of present competition existent between the
two subject banks and eliminate one independent
banking alternative.
By statute, 12 USC 1828 (c), the Comptroller of the
Currency,must also consider the public interest by
being mindful of the probable effect of the transaction
in adequately meeting the convenience and needs of
the community to be served. As is indicated by its age
and small deposit size, Mount Savage Bank has not
been a viable competitor in its market. To the contrary,
it is considered to be the least aggressive and least
competitive bank in the area. Its small size forces loan
and savings customers requiring more sophisticated
services to look beyond the Mount Savage area in
order to meet their needs.
Additionally, the future prospects of the combined
institution appear far more favorable. The increased
lending limit and higher interest rate on savings would
allow customers in the Mount Savage area to enjoy the
benefit of a full-service bank. The proposed merger
would also provide the assurance of management




$ 2,528,000

1

90,032,000

6

92,539,000

depth and provide for management succession at the
Mount Savage Bank. That takes on additional significance because Mount Savage Bank's present senior
management is well beyond the normal retirement age
and has expressed a desire to become less involved
in the daily operations of the bank.
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that any slightly anticompetitive effects of this proposal are clearly outweighed by
factors relating to convenience and needs, managerial
and financial resources and future prospects of the resulting bank. This application is thus deemed to be in
the public interest, and should be, and hereby is, approved.
September 30, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The head offices of the merging banks are 9 miles
apart and their closest offices (Applicant's branch at
La Vale) are 7 miles apart. Thus, the proposed merger
would eliminate some existing competition between
the participants.
There are 24 commercial banks in the area served
by Applicant and Bank. The primary service area for
Applicant and Bank is principally located in Allegany
County, Md., with Cumberland the county seat, while
parts of West Virginia and Pennsylvania can properly
be included within the surrounding area from which
both banks draw many of their customers. In this illdefined area, which clearly overstates the market, Applicant, the largest bank of the 24 commercial banks
serving the area, has 12.59 percent of the total deposits and Bank has 0.36 percent. The second-ranked
bank has 11.34 percent of such deposits and the
third-ranked has 10.93 percent. Consummation of the
proposed transaction would increase Applicant's lead
share of the total deposits in this market to 12.95 percent.
The instant proposal would eliminate some existing
competition between Applicant and Bank and would
increase Applicant's share of the deposits in the tristate service area in which both operate by less than
0.5 percent of such deposits. Thus, the proposed acquisition would have some anticompetitive effect.

101

NEW JERSEY NATIONAL BANK,
Trenton, N.J., and First State Bank, Toms River, N.J.
Banking offices
Total assets *

Name of bank and type of transaction

In
To be
operation operated
First State Bank, Toms River, N.J., with
was purchased Dec. 17, 1976, by New Jersey National Bank, Trenton, N.J. (1327), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
New Jersey National Bank, Trenton, N.J. ("Purchasing
Bank"), has made application to the Comptroller of the
Currency for prior permission to purchase substantially
all of the assets and assume all of the liabilities of First
State Bank, Toms River, N.J. ("Selling Bank"). The subject application rests upon an agreement executed between the proponent banks, and is incorporated herein
by reference the same as if fully set forth.
Purchasing Bank, the second oldest banking institution within the state of New Jersey, was organized as a
state-chartered bank in 1804, and was chartered as a
national banking association on June 22, 1865. As of
June 30, 1976, Purchasing Bank had total commercial
bank deposits of $730.4 million, and operated 31 banking offices that primarily serve central New Jersey. The
wholly-owned banking subsidiary of New Jersey National Corporation, Trenton, N.J., a registered onebank holding company, Purchasing Bank ranks as the
seventh largest banking organization in the state.
Selling Bank, with total deposits of $142 million, was
organized in 1964 as a state-chartered institution and,
in 1972, became the wholly-owned subsidiary of
American Bancorp, Toms River, N.J., also a registered
one-bank holding company. Selling Bank presently
operates 12 banking offices, all of which are domiciled
within Ocean County.
The proponent banks' closest offices, Selling Bank's
Jackson branch, in Ocean County, and Purchasing
Bank's Howell Township branch, in adjacent Monmouth County, are approximately 4 miles apart; but all
other offices are at least 15 miles apart, and there are
numerous intervening offices of competing banks. Approval of this application would therefore have the effect of eliminating only a minimal degree of existing
competition between Purchasing Bank and Selling
Bank.
Applicable New Jersey state branching statutes
provide for de novo branching by commercial banks in
any municipality within the state except where another
banking institution maintains its principal office, and in
municipalities whose population is less than 20,000. As
of January 1, 1977, the population requirement becomes 10,000. Thus, Purchasing Bank could be perceived as a possible entrant into Ocean County via de
novo expansion. Militating against Purchasing Bank's
de novo entry is the concentration of banks presently
located within Ocean County, the declining growth rate
* Asset figures are as of call dates immediately before and after
transaction

102



$161,224,000

12

823,889,000
1,038,241,000

35

47

of central New Jersey and the low banking office to
population ratio of Ocean County. Therefore, absent
the proposed acquisition, it appears highly unlikely
that Purchasing Bank would choose to enter Ocean
County to any significant degree in the near future, and
the proposed acquisition will have no significantly adverse effect upon potential competition.
During the recent past, Selling Bank has experienced certain operational difficulties that have adversely affected the bank. The preponderence of Selling Bank's loan portfolio is real estate-related, much of
which has been subject to criticism by bank regulatory
authority, which has had a severe impact upon this
bank's earnings performance. Also, neither Selling
Bank nor its bank holding company parent appear to
have the necessary financial and managerial resources to solve the myriad problems currently confronting Selling Bank. Purchasing Bank appears to
possess the financial resources and qualified management with sufficient experience and expertise to
greatly aid Selling Bank in coping with its problems.
Furthermore, Purchasing Bank has committed to augment its total capital accounts by $20 million. With the
additional capital, the favorable future prospects of the
combined institution are greatly enhanced.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that any slightly adverse competitive aspects of
this proposal are clearly outweighed by factors relating
to the convenience and needs of the banking public
and further by the favorable future prospects of the
combined bank which are primarily dependent upon
the financial and managerial resources of Purchasing
Bank. This application is therefore deemed to be in the
public interest and should be, and hereby is, approved. Approval of this proposal by the Comptroller of
the Currency is conditioned upon Purchasing Bank's
commitment to augment the capital accounts of New
Jersey National Bank by $20 million, and this augmentation must be accomplished within 1 year from the
date of this statement.
November 15, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant operates no banking offices in Ocean
County and only 0.9 percent of Applicant's deposits
and 4.6 percent of its loans are derived from Ocean
County residents. Although the parties have two
branches that are only 4 miles apart on opposite sides
of the Ocean County - Monmouth County boundary,

the next closest offices are 16 road miles apart, with
some 22 offices of competing banks intervening. In
addition, approximately 0.6 percent of Bank's deposits
and 8 percent of its loans are derived from customers
with addresses in service areas of Applicant. Therefore, it appears that the proposed acquisition will not
eliminate any significant amount of existing competition between the parties.
New Jersey law permits de novo branching by
commercial banks in any municipality in the state except for municipalities in which another banking institution maintains its principal office and whose population
is less than 20,000. As of January 1, 1977 the population requirement becomes 10,000. Applicant, the fifth
largest bank by total deposits in New Jersey, is the
fourth largest bank in Monmouth County, which adjoins
Ocean County, and the largest bank in the Mercer
County market. Thus, with the liberalization in New Jersey branching laws, Applicant should be deemed a
possible entrant into Ocean County market. However,
militating against Applicant's de novo entry is the concentration of banks in Ocean County and the declining
growth trend in the central New Jersey area. The banking office to population ratio in Ocean County is 1 to

2,313 (112 offices per 259,120 persons), compared to
a statewide average of 3,179 persons per office. Thus,
absent the proposed acquisition, it appears unlikely
that Applicant would enter the market to any significant
extent in the near future and, therefore, the proposed
acquisition will have only a slightly adverse effect on
potential competition.
Sixteen commercial banks with 75 offices presently
serve Ocean County. Bank, which holds approximately
17 percent of the total deposits of commercial banking
offices within the county, ranks second among all
institutions competing in Ocean County. Thus, the
proposed acquisition involves the fifth largest commercial bank in the state entering Ocean County
through the acquisition of the second largest commercial bank in the county. It obviously would have been
preferable had Applicant chosen a smaller bank as its
vehicle for entry into the Ocean County market, assuming, without knowing, that a smaller institution was
available for acquisition.
In sum, the proposed acquisition would not eliminate
either actual or potential competition to any significant
degree. Overall, the proposed acquisition will have a
slightly adverse competitive effect.

CITIZENS FIRST NATIONAL BANK OF NEW JERSEY,
Ridgewood, N.J., and The State Bank of North Jersey, Pine Brook, N.J.
Banking offices
Name of bank and type of transaction

Total assets *
In
To be
operation operated

The State Bank of North Jersey, Pine Brook, N.J., with
was purchased Dec. 28, 1976, by Citizens First National Bank of New Jersey, Ridgewood,
NJ. (11759), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
Citizens First National Bank of New Jersey,
Ridgewood, N.J. ("Purchasing Bank"), has applied to
the Comptroller of the Currency for prior permission to
purchase all of the assets and assume all of the
liabilities of The State Bank of North Jersey, Pine
Brook, N.J. ("Selling Bank"). The instant application
rests upon an agreement executed between the proponent banks, and is incorporated herein by reference,
the same as if fully set forth.
Purchasing Bank, with total commercial bank deposits of $246.9 million as of December 31, 1975, operates 18 branches in addition to its main office, and
has received approval for the establishment of three
new offices. Chartered as a national banking association on June 18, 1920, Purchasing Bank's branch network serves the northern, western and central portions
of Bergen County, and has one branch domiciled
within an adjacent area of Passaic County.
Selling Bank, with year-end 1975 total deposits of
approximately $44 million, operates its head office and
* Asset figures are as of call dates immediately before and after
transaction.



$52,454,000

7

342,790,000
402,114,000

21
28

six branches in eastern Morris County. Morris County
is located southwest of Bergen and Passaic counties
in north-central New Jersey and is a rapidly growing
area with a diversified economy.
The head offices of the proponent banks are 18 miles
apart, and the closest offices of these two banks are
Purchasing Bank's office in Hawthorne and Selling
Bank's Pine Brook office, approximately 15 miles apart.
There are intervening offices of other commercial
banks situated between the closest offices of Purchasing Bank and Selling Bank, and it does not appear that
the proposed acquisition would eliminate any meaningful degree of existing competition.
Pursuant to applicable state banking statutes, Purchasing Bank could legally establish a de novo branch
in the area served by Selling Bank; however, there are
other banking organizations of comparable size to
Purchasing Bank that could also enter the area via de
novo expansion. Furthermore, because Selling Bank
controls a relatively small percentage of total commercial bank deposits within Morris County (4.8 percent), it
is highly unlikely that consummation of the proposal
would have a significantly adverse effect upon potential competition.

103

Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that approval of the subject proposal will provide
new and expanded banking services in the Selling
Bank's service area, thereby better serving the needs
of the banking public through a financially sound,
well-managed institution. The application is hereby,
approved.
November 11, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Morris County is located southwest of Bergen and
Passaic counties in north-central New Jersey. It is a
rapidly growing county with a diversified economy. Between 1960 and 1970 its population increased from
262,000 to 383,000, and it is predicted that its population will increase to 452,000 by 1985; increases which
exceed the average population increases for the state
as a whole. Business and industry have also expanded
substantially in Morris County; county employment
climbed from 70,000 to 120,000 between 1960 and
1970 and it is predicted that by 1985 it will climb to
190,000.

As of December 31, 1975, 20 banking organizations
operated in Morris County, and held a total of $895.4
million in county deposits. Banking is concentrated in
Morris County, with the top four banks controlling 65.5
percent of total county deposits. Bank holds 4.8 percent of total county deposits and is the seventh largest
banking organization in Morris County in terms of total
county deposits.
The head offices of Applicant and Bank are 18 miles
apart. Their closest offices (Applicant's Hawthorne office and Bank's Pine Brook office) are approximately
14 miles apart and there are approximately six banks
in the intervening area. It appears that the proposed
acquisition would not eliminate any substantial existing
competition.
Under New Jersey law, Applicant could be permitted to branch de novo into the area served by Bank.
There are, however, other banking organizations as
large as Applicant which also could be permitted to
enter that area de novo. Moreover, Bank controls a rel-.
atively small percentage of Morris County deposits.
Therefore, it is unlikely that the proposed acquisition
would have a significantly adverse effect on potential
competition.

FIRST NATIONAL BANK OF JACKSON,
Jackson, Miss., and Columbia Bank, Columbia, Miss.
Banking offices
Total assets

Name of bank and type of transaction

In
To be
operation operated
Columbia Bank, Columbia, Miss., with
and First National Bank of Jackson, Jackson, Miss. (10523), which had
merged Dec. 31, 1976, under charter and title of the latter bank (10523). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Columbia Bank, Columbia, Miss. ("Columbia Bank"),
the merging bank, and First National Bank of Jackson,
Jackson, Miss. ("FNB"), the charter bank, have
applied to the Comptroller of the Currency for prior
permission to effectuate a merger under the charter
and with the title of First National Bank of Jackson. The
subject merger rests upon an agreement executed between the proponent banks and is incorporated herein
by reference, the same as if fully set forth.
Columbia Bank was established in 1899 and, with deposits of approximately $21 million as of March 31,
1976, is the second largest of three commercial banks
domiciled within Marion County, Miss., the approximate relevant banking market. Columbia Bank operates both its main office and one branch in the city of
Columbia.
FNB was chartered as a national banking association on April 27, 1914, and holds commercial bank deposits of $597.7 million. FNB operates a total of 30
banking offices in seven counties of the state; the
closest to Columbia Bank" is FNB's Tylertown Bank
Branch in adjacent Walthall County, approximately 22

104



$ 27,839,000
810,858,000
838,697,000

2
31
33

miles distant. Inasmuch as the main offices of two
proponent banks are approximately 80 air miles apart
and the competition now existing between the two
banks is minimal, approval of this application would
not have the effect of eliminating a meaningful degree
of present competition.
Applicable Mississippi state statutes would permit
the establishment of a de novo branch in Marion
County by FNB. However, given the fact that three
commercial banks now serve the area, which has a
population of slightly less than 8,000, it does not appear likely that FNB would consider that means of expansion into the area.
Approval of the instant proposal would provide Columbia Bank with a means for management succession. That factor has additional significance because
Columbia Bank's president is at normal retirement age
and has expressed the desire to become less involved
in the daily affairs of the bank. Also, the introduction of
FNB into the Columbia area would provide the banking
public with expanded and additional banking services.
In conclusion, it is the opinion of this Office that approval of this application would provide the banking

public with convenient full-service banking in the Columbia area by a financially strong and well-managed
institution. Accordingly, this application should be, and
hereby is, approved.
November 19, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Three banks with five offices currently operate within
Marion County, which is the appropriate geographic
market in which to evaluate the competitive effects of
the proposed merger. Of these, Citizens Bank, with
one office in Columbia, is the largest. It had total deposits of $24,488,000 as of March 31, 1976, or a 45.78
percent share of the commercial banking market in
Marion County. Bank is second largest with
$21,100,000 in total deposits on the same date, or
39.45 percent of the market. The Foxworth Bank, with
its main office in a settlement about 3 miles east of Columbia and one branch in Columbia, is third largest
with total deposits of $7,903,000, or 14.77 percent of
the market. Although Bank's total deposits have
gradually increased during the past 5 years, its share
of the Marion County market has declined. In 1971,
Bank was the largest bank in the county, with a 47
percent market share. Since that time, Citizens Bank's
share has increased from 40 percent to 46 percent;
Foxworth Bank's share has increased from 8 percent
to 15 percent; and Bank's share has declined to 39
percent.
Applicant is not a significant competitor in the Marion County banking market. Its main office in Jackson
is 79 air miles from Columbia, and its closest branch
bank, in Tylertown, Walthall County, is 22 miles therefrom. Only 0.4 percent of Bank's demand deposits
originate in the service area of Applicant's Tylertown
branch. Only 3.6 percent of the Tylertown branch

bank's deposits originate in Marion County, although
this figure is somewhat overstated in that many Walthall County residents have a Marion County rural delivery mailing address. Thus, the proposed merger
should eliminate a minimal amount of existing competition beween Bank and Applicant's closest subsidiary.
While Mississippi law permits Applicant to open a cfe
novo branch in Marion County, such a development is
unlikely to occur. The banking needs of Marion County
residents appear to be adequately served by the existing banks. The city of Columbia would be the most logical location for a new bank, yet three banks with four
offices now serve its population of 8,000. Furthermore,
given the county's generally declining population, the
prospects for an expanding banking market in the future are not bright. Therefore, it is unlikely that the
proposed merger would eliminate any potential competition between Applicant and Bank.
The proposed merger would not have any significant
effect on concentration in commercial banking in Marion County, although it may strengthen Bank's competitive position to the detriment of Foxworth Bank, the
county's smallest bank. Viewed on a statewide basis,
the proposed acquisition would increase Applicant's
share of total deposits from 11.0 percent to 11.4 percent, but Applicant would remain the second largest
bank behind the Deposit Guaranty National Bank,
which currently has a 12.9 percent share of all Mississippi bank deposits. The third and fourth largest banks
in the state have market shares, respectively, of 4.1
percent and 3.6 percent, so the proposed merger
would increase the four-firm concentration index for
the state as a whole from 31.6 percent to 32.0 percent.
For the reasons stated above, we conclude that the
proposed merger would have a slightly adverse effect
on competition in Marion County and Mississippi as a
whole.

FIRST PEOPLES NATIONAL BANK OF NEW JERSEY,
Haddon Township (P. O. Westmont), N.J., and The Provident Bank of New Jersey, Willingboro, N.J.
Banking offices
Name of bank and type of transaction

Total assets'
In
To be
operation operated

The Provident Bank of New Jersey, Willingboro, N.J., with
was purchased Dec. 31, 1976, by First Peoples National Bank of New Jersey, Haddon Township, (P.O. Westmont), N.J. (399), which had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
First Peoples National Bank of New Jersey, Haddon
Township, N.J. ("Purchasing Bank"), has made application to the Comptroller of the Currency for prior permission to purchase the assets and assume the
liabilities of The Provident Bank of New Jersey, Willingboro, N.J. ("Selling Bank"). The subject application
rests upon an agreement executed between the pro* Asset figures are as of call dates immediately before and after
transaction.



$35,642,000

4

555,861,000
606,575,000

36
40

ponent banks and is incorporated herein by reference
the same as if fully set forth.
Purchasing Bank, the 15th largest commercial banking organization with headquarters domiciled within
the state of New Jersey, was chartered as a national
banking association on April 25, 1864. As of June 30,
1976, Purchasing Bank held total deposits of $477.4
million and operated 34 banking offices throughout
seven southern New Jersey counties.
Selling Bank, which had total deposits of $32.3 million as of mid-year 1976, was established in 1959 as
105

an independent state-chartered, non-member commercial banking institution. In 1973, Selling Bank became a wholly-owned subsidiary of a registered
multi-bank holding company, Greater Jersey Bancorp,
West Paterson, N.J., the sixth largest commercial banking organization in the state. Selling Bank currently operates four banking offices in Willingboro and has an
application pending for the establishment of a branch
office in Berlin, N.J.
The main office of Purchasing Bank is located approximately 15 miles southwest of the head office of
Selling Bank. The closest offices of the proponent
banks are Purchasing Bank's three offices in Cherry
Hill, and Selling Bank's main office in Willingboro, approximately 14 road miles apart. There are however,
offices of other banks in the intervening area; and the
area is largely undeveloped, with road traffic limited by
certain geographic barriers. It, therefore, appears that
only a negligible degree of existing competition exists
between the proponent banks, and approval of this
proposal would not have the effect of eliminating any
meaningful competition between the two banks.
Applicable state branching statutes permit de novo
branching by commercial banks into all municipalities
except those in which another banking institution maintains its head office and those municipalities with
populations less than 20,000 persons. As of January 1,
1977, the population requirement becomes 10,000
inhabitants. Inasmuch as this Office denied an application in early 1975 sponsored by Purchasing Bank to establish a de novo branch in Willingboro, it appears
highly unlikely that Purchasing Bank could be perceived as a potential entrant into the Willingboro area
via de novo expansion in the near future.
As aforenoted herein, Selling Bank has been affiliated with Greater Jersey Bancorp since 1973.
Greater Jersey Bancorp's primary banking operations
have been concentrated, with the exception of Selling
Bank, in northern New Jersey. Selling Bank was acquired apparently to afford the holding company a
foothold representation in southern New Jersey from
which to expand throughout the southern portion of the
state. To date, that expansion has not materialized,
and it appears that Selling Bank has been largely neglected by its parent bank holding company. In an effort to improve its earnings and loss of customers deposits, Selling Bank has curtailed certain banking services to its customers, thereby resulting in an
increasingly severe competitive disadvantage and
further in a disservice to the banking public.
First Peoples National Bank of New Jersey has managers who are considered by this Office to be competent and capable bankers; the bank also has the financial capacity to aid Selling Bank's representation to be
that of a more aggressive and effectual competitor in
the Willingboro area. Purchasing Bank is regarded as
a retail-oriented institution and the banking public will
be well served by the introduction of new and expanded banking services.
Therefore, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that any slightly adverse competitive consequences of this proposal are clearly outweighed by the
106



convenience and needs of the banking public and the
more favorable future prospects of the combined
institution because of the financial and managerial resources of Purchasing Bank. This application is thus
deemed to be in the public interest and should be, and
hereby is, approved.
December 1, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant's sole Burlington County office is located
approximately 55 miles from the Willingboro trade
area. However, Applicant's main office in Haddon
Township is approximately 15 miles southwest of Willingboro, and it operates three offices in Cherry Hill,
N.J., the nearest of which is 8.9 air miles (13.6 road
miles) from Willingboro. Although the area between the
service areas of Bank and Applicant is largely undeveloped and road traffic is limited by certain geographic obstructions, it appears likely that some competition presently exists between the parties. In particular, it should be noted that, according to a New Jersey
Department of Labor Survey in 1973, approximately 56
percent of Willingboro's workers commuted to places
outside of Burlington County for their employment — of
these, approximately 49 percent traveled to Philadelphia
County and 18 percent to Camden County for their employment. Given these commutation patterns and the
proximity of the trade areas, it appears likely that a moderate degree of competition currently exists between
Applicant and Bank. As a result, the proposed acquisition will eliminate existing direct competition to some extent.
Applicant, the 12th largest commercial banking
institution in New Jersey, ranks third in total deposits
among banks competing in Camden County. Given
Applicant's size, its considerable growth in recent
years and the similarity between the Camden County
and Willingboro markets, Applicant would appear to
be a likely potential entrant into the growing western
Burlington County market. New Jersey law permits de
novo branching by commercial banks in any municipality in the state except for municipalities in which
another banking institution maintains its principal office
and whose population is less than 20,000. As of January 1, 1977, the population requirement becomes
10,000. Applicant, in fact, recently filed an application
to establish a de novo branch in Willingboro. However,
this application was denied in early 1975 on the
grounds, inter alia, that Applicant lacked sufficient
existing customers in the trade area to justify granting
a branch application in Willingboro. Applicant acknowledges that should this acquisition be denied it
would "no doubt refile at some remote future point" to
establish a branch in the Willingboro area. It thus appears that the Applicant is a likely entrant into the market at some future time. However, given Applicant's
recent unsuccessful attempt to establish a de novo
branch in Willingboro, it appears that entry by Applicant is unlikely in the near term.
Bank, although it has less than 5 percent of the total
deposits among commercial banks in Burlington
County, is nevertheless the largest competitor in the
Willingboro market. Thus, the proposed merger would

combine a potential entrant into the Willingboro market
with the dominant competitor there. Moreover, even if
de novo entry by Applicant were not possible, the
proposed acquisition would foreclose the possibility of
entry by Applicant by means of a merger with one of

the small banks in the area. Accordingly, the proposed
acquisition would have an adverse effect on potential
competition.
In sum, the proposed acquisition, overall, would
have an adverse competitive effect.

MIDLANTIC NATIONAL BANK,
Newark, N.J., and Midlantic National Bank/West, Morristown, N.J.
Banking offices
Name of bank and type of transaction

Total assets
In
To be
operation operated

Midlantic National Bank/West, Morristown, N.J. (15360), with
and Midlantic National Bank, Newark, N.J. (1316), which had
merged Dec. 31, 1976, under charter and title of the latter bank (1316). The merged bank
at date of merger had

COMPTROLLER'S DECISION
Midlantic National Bank/West, Morristown, N.J. ("Merging Bank"), and Midlantic National Bank, Newark, N.J.
("Charter Bank"), have applied to the Comptroller of
the Currency for prior permission to effectuate a
merger under the charter, and with the title of, Midlantic National Bank. The subject application rests upon
an agreement executed between the proponent banks
and is incorporated herein by reference, the same as if
fully set forth.
Both Merging Bank and Charter Bank are whollyowned, except for directors' qualifying shares, by the
third largest multi-bank holding company headquartered in New Jersey, Midlantic Banks, Inc., Newark,
N.J. Merging Bank was chartered as a national banking association on July 24, 1964, and, as of June 30,
1976, had commercial bank deposits aggregating approximately $34 million. Charter Bank is headquartered
in Newark, 34 of its 38 banking offices are located in
Essex County, and serves as a head bank for its parent bank holding company. As of mid-year 1976, Charter Bank had total deposits of $829.5 million. Because
of the common ownership and control existing between Merging Bank and Charter Bank, there is no




$

40,219,000
1,000,472,000
1,040,691,000

8
39
47

present competition between these two banks nor is
there any potential for increased competition in the future.
This application is considered essentially as a corporate reorganization of Midlantic Banks, Inc. The surviving institution should realize certain operating efficiencies and increased profitability. Furthermore, the
banking public will continue to be served by a source
of full-service commercial banking.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that this proposal is not adverse to the public
interest and should be, and hereby is, approved. This
proposal may not be consummated prior to the statutory waiting period, nor prior to receipt by this Office of
evidence of publication requirements pursuant to Sections 215(a) and 1828(c) of the United States Code.
November 29, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The merging
sidiaries of the
their proposed
ganization and

banks are both wholly-owned subsame bank holding company. As such,
merger is essentially a corporate reorwould have no effect on competition.

107

UNION CHELSEA NATIONAL BANK,
New York, N.Y., and Chelsea National Bank, New York, N.Y.
Banking offices
Name of bank and type of transaction

Total assets *

Chelsea National Bank, New York, N.Y. (15428), with
was purchased Dec. 31, 1976, by Union Chelsea National Bank, New York, N.Y. (16629), which
had
After the purchase was effected, the receiving bank had

COMPTROLLER'S DECISION
Union Chelsea National Bank, New York, N.Y.
("UCNB"), has made application to the Comptroller of
the Currency for prior permission to purchase the assets and assume the liabilities of Chelsea National
Bank, New York, N.Y. ("Chelsea"). This application has
been processed pursuant to the emergency provisions
of the National Bank Act, as set forth in 12 USC 181
and the Bank Merger Act of 1966, as set forth in 12
USC 1828(c). Also, the decision of the Comptroller is
rendered pursuant to an agreement executed between
the proponent banks upon which the instant application rests and is incorporated herein by reference, the
same as if fully set forth.
UCNB, the assuming bank, was, on December 20,
1976, granted preliminary approval to organize by the
Office of the Comptroller of the Currency and, to date,
has no operating history.
Chelsea was chartered as a national banking association on November 13, 1964 and, as of September
30, 1976, held total commercial bank deposits aggregating $28.7 million. In addition to its main office
located in the Chelsea district of Manhattan, Chelsea
operates one branch office in the financial district (111
John Street), and one branch in the theatrical district
(7th Avenue and 53rd Street).
Chelsea was visited by representatives of the Office
of the Comptroller of the Currency on October 26,
1976, for the purpose of examining the bank's operations and determining its overall condition. Examiners
indicated that there had been further deterioration in
Chelsea's loan portfolio since the previous examination; loan losses classified by examiners at the October 1976 examination aggregated approximately
$763,000. Subsequent to those loan charge-offs,
Chelsea's gross capital funds were $528,000, an
amount woefully inadequate to support the bank's
scope of operation. Additionally, operating losses for
Chelsea had continued to mount and, as of examination date, were averaging $60,000 per month.
On December 8, 1976, examiners for the Comptroller again visited Chelsea; at that time, it was determined that additional loan losses amounting to
$429,000 existed. The bank's equity capital was only
$400,000 at the time. Efforts by the bank's directors
* Asset figures are as of call dates immediately before and after
transaction.

108



In
To be
operation operated

$31,724,000
1,006,005
31,174,000

and shareholders to raise new capital funds have been
without success.
In view of the record in this matter, it is the conclusion of this Office that an emergency situation exists
which requires expeditious action by the Comptroller's
Office. Consistent with the applicable provisions of 12
USC 181, the Comptroller of the Currency hereby specifically waives the requirement for shareholder approval by owners of Chelsea's stock.
Pursuant to the Bank Merger Act of 1966, 12 USC
1828(c), the Comptroller of the Currency cannot approve a purchase and assumption transaction which
would have certain proscribed anticompetitive effects
unless he finds those anticompetitive effects to be
clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served. Additionally, the Comptroller is directed to consider the financial and managerial resources and future prospects of the existing and proposed institution and the
convenience and needs of the community to be
served. When necessary, however, to prevent the evils
attendant upon the failure of a bank, the Comptroller
can dispense with the uniform standards applicable to
usual acquisition transactions and need not consider
reports on the competitive consequences of the transaction ordinarily solicited from the Department of Justice and other banking agencies. He is authorized in
such circumstances to act immediately, in his sole discretion, to approve an acquisition and to authorize the
immediate consummation of the transaction.
The proposed acquisition will be in accord with all
pertinent provisions of the National Banking Act and
will prevent a disruption of banking services to the
community and potential losses to a number of uninsured depositors. The assuming bank will have
strong financial and managerial resources and the acquisition will enable it to enhance the banking services
offered in the New York City area. Thus, the approval
of this transaction will help to avert a loss of public
confidence in the banking system and should improve
the services offered to the banking public.
The Comptroller finds that there are no anticompetitive effects of the proposed transaction. For those
reasons, the assuming bank's application to purchase
the assets and to assume the liabilities of Chelsea as
set forth in their agreement is approved. The Comptroller further finds that the possible failure of Chelsea requires him to act immediately, as contemplated by the

Bank Merger Act, to prevent disruption of banking services to the community; the Comptroller thus waives
publication of notice, dispenses with the solicitation of
competitive reports from other agencies, authorizes
UCNB to operate all former offices of Chelsea as

branches of UCNB and, further, authorizes the transaction to be consummated immediately.
December 31, 1976.
Due to the emergency nature of the situation, no Attorney General's report was requested.

//. Mergers consummated, involving a single operating bank.
GATEWAY NATIONAL BANK OF FORT WORTH,
Fort Worth, Tex., and Circle National Bank of Fort Worth, Fort Worth, Tex.
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

Gateway National Bank of Fort Worth, Fort Worth, Tex. (14962), with
and Circle National Bank of Fort Worth, Fort Worth, Tex. (14962), which had
merged Jan. 5, 1976, under the charter of the latter bank (14962) and title "Gateway
National Bank of Fort Worth." The merged bank at date of merger had

COMPTROLLER'S DECISION
On March 8, 1974, Gateway National Bank of Fort
Worth, Fort Worth, Tex., and Circle National Bank of
Fort Worth (organizing), Fort Worth, Tex., applied to the
Comptroller of the Currency for permission to merge
under the charter of the latter and the title of the
former.
Gateway National Bank of Fort Worth, the merging
bank, was chartered in 1962 and has assets of $18.9
million and IPC deposits of $15.7 million. The merging
bank is the 25th largest of the 46 banks in the Fort
Worth area.
Circle National Bank of Fort Worth (organizing), the
charter bank, is being organized to provide a vehicle
by which to transfer ownership of the merging bank to
First United Bancorporation, Inc., Fort Worth, a multibank holding company with aggregate deposits of
$760.3 million. The charter bank will not be operating
as a commercial bank prior to the merger.
Consummation of the proposed transaction will result in no adverse competitive effects. The merging
bank has had a long-standing relationship with the
holding company, including legal affiliation with the
* Asset figures are as of call dates immediately before and after
transaction.




$24,695,000
120,000
25,456,000

1
0
1

holding company's largest subsidiary, The First National Bank of Fort Worth, since 1972. The closest subsidiary of the holding company, Security State Bank, is
located 5 miles from the merging bank, with several alternative banking facilities situated in the intervening
area.
Applying the statutory criteria, it is concluded that
the proposed transaction is in the public interest and
this application is, therefore, approved.
December 5, 1975.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of March 13, 1974, requesting a report pursuant to Section 18(c) of the Federal Deposit Insurance Act on the competitive factors
involved in the proposed merger of Gateway National
Bank of Fort Worth, Fort Worth, Tex., and Circle National Bank of Fort Worth (org.), Fort Worth, Tex.
The proposed merger is part of a plan through which
Gateway National Bank of Fort Worth would become a
subsidiary of First United Bancorporation, Inc., a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by First United Bancorporation, Inc., it would have no effect on competition.

109

COMMERCIAL NATIONAL BANK,
Cassopolis, Mich., and C National Bank, Cassopolis, Mich.
Total assets*

Name of bank and type of transaction

Banking offices

Commercial National Bank, Cassopolis, Mich. (16371), with
and C National Bank, Cassopolis, Mich. (16371), which had
merged Mar. 11, 1976, under charter of the latter bank (16371) and title "Commercial
National Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
On November 19, 1974, C National Bank, (organizing),
Cassopolis, Mich., and Commercial National Bank,
Cassopolis, Mich., applied to the Comptroller of the
Currency for permission to merge under the charter of
the former and with the title of the latter.
Commercial National Bank, the existing bank, was
organized in 1864 and presently operates six
branches. It has total assets of $54.5 million and IPC
deposits of $38.9 million. The primary service area of
this bank encompasses central and southern Cass
County, southwestern St. Joseph County and the city
of Niles, all of which are located in Michigan; and
northern Elkart County, Ind.
Direct competition for Commercial National Bank is
provided by First National Bank of Southwestern
Michigan, Niles, with deposits of $109 million; First National Bank and Trust Company, Sturgis, with deposits
of $29.1 million; Community State Bank of Dowagiac,
with deposits of $13.5 million; and First National Bank
of Cassopolis, with deposits of $13.2 million.
C National Bank is being organized to provide a vehicle by which to transfer ownership of Commercial National Bank to Michigan National Corporation. Bloomfield
Hills, Mich. The new bank will not be operating as a
commercial bank prior to this merger.
Michigan National Corporation, the bank holding
company which will acquire the resulting bank was organized in 1972 and presently is the third largest bank
holding company in Michigan. It controls nine banks
with aggregate deposits of $2.5 billion. The two largest
subsidiaries are Michigan National Bank, Lansing, with
deposits of $1.3 billion, and Michigan National Bank of
Detroit, with deposits of $881 million. Michigan Na* Asset figures are as of call dates immediately before and after transaction.

Digitized for 110
FRASER


$60,585,000
120,000
67,622,000

OCX)

In
To be
operation operated

8

tional Corporation also controls two bank-related subsidiaries which specialize in leasing and auditing.
There is no competition between Michigan National
Corporation or its subsidiaries and Commercial National Bank because their nearest offices are separated by a distance of 35 miles and an adequate
number of alternative banking facilities operate
in the intervening area.
Consummation of the proposed merger will stimulate
competition in the service area of the resulting subsidiary because it will be able to offer new and improved services, such as commercial and mortgage
lending, investment banking, trust services and
international banking. The acquisition of the existing
bank by Michigan National Corporation will result in an
economy of operation which will be reflected in
increased profits for that bank.
Applying the statutory criteria, it is concluded that
the proposed merger is in the public interest and this
application is, therefore, approved.
February 9, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of November 20, 1974, requesting a report pursuant to'Section 18(c) of the Federal Deposit Insurance Act on the competitive factors
involved in the proposed merger of Commercial National Bank, Cassopolis, Mich., and C National Bank
(org.), Cassopolis, Mich.
The proposed merger is part of a plan through which
Commercial National Bank would become a subsidiary
of Michigan National Corporation, a bank holding
company. The instant merger, however, would merely
combine an existing bank with a non-operating institution; as such, and without regard to the acquisition of
the surviving bank by Michigan National Corporation, it
would have no effect on competition.

AMERICAN SECURITY AND TRUST COMPANY, NATIONAL ASSOCIATION,
Washington, D.C., and American Security and Trust Company, Washington, D.C.
Banking offices
Name of bank and type of transaction

Total assets*

American Security and Trust Company, Washington, D.C, with
and American Security and Trust Company, National Association, Washington, D.C. (16565),
which had
merged Mar. 31, 1976, under charter and title of the latter bank (16565). The merged bank
at date of merger had

COMPTROLLER'S DECISION
On July 31, 1975, the American Security and Trust
Company, Washington, D.C., and the American Security and Trust Company, National Association (organizing), Washington, D.C., applied to the Comptroller of
the Currency for permission to merge under the charter and with the title of American Security and Trust
Company, National Association.
American Security and Trust Company, the merging
bank, is headquartered in Washington, D.C., and has
30 banking offices in the District of Columbia and one
foreign branch in Nassau, Bahamas. The bank, with
total assets of 1.2 billion and IPC deposits of $725.7
million was originally chartered in 1889.
American Security and Trust Company, National Association, the charter bank, is being organized to provide a vehicle by which to transfer ownership of the
merging bank to the American Security Corporation
which will become a one-bank holding company upon
its acquisition of the resulting bank. The charter bank
will not be operating as a commercial bank prior to the
merger.
Because the merging bank is the only operating
bank involved in the proposed transaction, there can
* Asset figures are as of call dates immediately before and after transaction.

In
To be
operation operated

$1,122,122,000

31

240,000

0

1,052,219,000

31

be no adverse effect on competition resulting from
consummation of the proposed merger. The resulting
bank will conduct the same banking business at the
same locations and with almost the same name as presently used by the merging bank.
Applying the statutory criteria, it is concluded that
the proposed merger is in the public interest and this
application is, therefore, approved.
February 25, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of July 31, 1975, requesting a report pursuant to Section 18(c) of the Federal
Deposit Insurance Act on the competitive factors
involved in the proposed merger of American Security
and Trust Company, Washington, D.C. and American
Security and Trust Company, N.A. (org.), Washington,
D.C.
The proposed merger is part of a plan through which
American Security and Trust Company would become
a subsidiary of American Security Corporation, a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by American Security Corporation, it would have no effect on competition.

THE FIRST NATIONAL BANK OF NEW BRAUNFELS,
New Braunfels, Tex., and New Braunfels Commerce Bank National Association, New Braunfels, Tex.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
The First National Bank of New Braunfels, New Braunfels, Tex. (4295), with
and New Braunfels Commerce Bank National Association, New Braunfels, Tex. (4295), which
had
merged Apr. 16, 1976, under charter of the latter bank (4295) and title "First National
Bank of New Braunfels." The merged bank at date of merger had

COMPTROLLER'S DECISION
On August 6, 1975, New Braunfels Commerce Bank,
National Association (organizing), New Braunfels, Tex.,
and First National Bank of New Braunfels, New Braunfels, Tex., applied to the Comptroller of the Currency
for permission to merge under the charter of New
* Asset figures are as of call dates immediately before and after transaction.



$31,452,000

1

120,000

0

33,272,000

Braunfels Commerce Bank, National Association, and
with the title "First National Bank of New Braunfels."
The proposed merger is part of a plan through which
First National Bank of New Braunfels will become a
wholly-owned subsidiary of Texas Commerce
Bancshares, Inc., Houston, Tex., a registered bank
holding company.
Applying the statutory criteria, it is concluded that
the merger will merely combine an existing bank with a
non-operating institution; as such, and without regard
111

to the acquisition of the surviving bank by Texas
Commerce Bancshares, Inc., there will be no effect on
competition.
This application, therefore, should be, and hereby is,
approved.
March 17, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of August 6, 1975, requesting a report pursuant to Section 18(c) of the Federal
Deposit Insurance Act on the competitive factors
involved in the proposed merger of The First National

Bank of New Braunfels, New Braunfels, Tex., and New
Braunfels Commerce Bank National Association (org.),
New Braunfels, Tex.
The proposed merger is part of a plan through which
The First National Bank of New Braunfels would become a wholly-owned subsidiary of Texas Commerce
Bancshares, Inc., a bank holding company. The
instant merger, however, would merely combine an
existing bank with a non-operating institution; as such,
and without regard to the acquisition of the surviving
bank by Texas Commerce Bancshares, Inc., it would
have no effect on competition.

THE GEAUGA COUNTY NATIONAL BANK OF CHARDON,
Chardon, Ohio, and The G. C. National Bank, Chardon, Ohio
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

COMPTROLLER'S DECISION
On January 14, 1976, The Geauga County National
Bank of Chardon, Chardon, Ohio, and The G. C. National Bank (organizing), Chardon, Ohio, applied to the
Comptroller of the Currency for permission to merge
under the charter of G. C. National Bank and with the
title, The Geauga County National Bank of Chardon.
The proposed merger is part of a plan through which
The Geauga County National Bank of Chardon will become a wholly-owned subsidiary of BancOhio Corporation, Columbus, Ohio, a bank holding company.
Applying the statutory criteria, it is concluded that
the instant merger will merely combine an existing
bank with a non-operating institution; as such, and
without regard to the acquisition of the surviving bank

* Asset figures are as of call dates immediately before and after transaction.


112


$16,918,000
125,000
21,200,000

COO

The Geauga County National Bank of Chardon, Chardon, Ohio (14879), with
and The G. C. National Bank, Chardon, Ohio (14879), which had
merged Apr. 29, 1976, under charter of the latter bank (14879) and title "The Geauga County
National Bank of Chardon." The merged bank at date of merger had

3

by BancOhio Corporation, it will have no effect on
competition. This application is, therefore, approved.
March 11, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of January 14, 1976, requesting a report pursuant to Section 18(c) of the Federal Deposit Insurance Act on the competitive factors
involved in the proposed merger of Geauga County
National Bank of Chardon, Chardon, Ohio, and G. C.
National Bank (org.), Chardon, Ohio.
The proposed merger is part of a plan through which
Geauga County National Bank of Chardon would become a subsidiary of BancOhio Corporation, a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by BancOhio Corporation it
would have no effect on competition.

THE FIRST NATIONAL BANK OF SAN JOSE,
San Jose, Calif., and F. N. National Bank, San Jose, Calif.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
The First National Bank of San Jose, San Jose, Calif. (2158), with
and F. N. National Bank, San Jose, Calif. (2158), which had
merged June 16, 1976, under charter of the latter bank (2158) and title "The First National
Bank of San Jose." The merged bank at date of merger had

COMPTROLLER'S DECISION
The First National Bank of San Jose, San Jose, Calif.,
and F. N. National Bank (organizing), San Jose, Calif.,
have applied to the Comptroller of the Currency for
permission to merge under the charter of the latter and
with the title of the former.
The First National Bank of San Jose, the merging
bank, is the 17th largest commercial bank in the state
of California, and is the fifth largest banking organization in the market area (approximated by Santa Clara,
Alameda and San Mateo counties). The bank has total
deposits of approximately $299 million.
The proposed merger is the facility whereby the acquisition of The First National Bank of San Jose by First
National Bancshares Inc., San Jose, a proposed bank
holding company, will be accomplished. The instant
merger would have the effect of merely combining an
existing commercial bank with a non-operating institution, and as such, without regard to the proposed acquisition of the surviving bank by First National
* Asset figures are as of call dates immediately before and after
transaction.

$360,007,000
256,250

34
0
34

381,161,000

Bancshares Inc., would have no adverse effect upon
competition in the relevant banking market.
Consequently, applying the statutory criteria, it is
concluded that the proposed merger is not adverse to
the public interest. Accordingly, this application should
be, and hereby is, approved.
April 30, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of January 8, 1976, requesting a report pursuant to Section 18(c) of the Federal Deposit Insurance Act on the competitive factors
involved in the proposed merger of First National Bank
of San Jose, San Jose, Calif, and F. N. National Bank
(org.), San Jose, Calif.
The proposed merger is part of a plan through which
First National Bank of San Jose would become a subsidiary of First National Bancshares Inc., a bank holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by First National Bancshares
Inc., it would have no effect on competition.

THE FIRST NATIONAL BANK OF TROUTVILLE,
Troutvllle, Va., and Troutville Bank, N. A., Troutville, Va.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
The First National Bank of Troutville, Troutville, Va. (9764), with
and Troutville Bank, N. A., Troutville, Va. (9764), which had
merged July 1, 1976, under charter of the latter bank (9764) and title "The First National
Bank of Troutville." The merged bank at date of merger had

COMPTROLLER'S DECISION
The First National Bank of Troutville, Troutville, Va., and
Troutville Bank, N. A. (organizing), Troutville, Va., have
applied to the Comptroller of the Currency for permission to merge under the charter of the latter and with
the title of the former.
The First National Bank of Troutville, the merging
bank, was chartered in 1910, and currently has deposits of approximately $11 million. In addition to its
main office in Troutville, The First National Bank of
* Asset figures are as of call dates immediately before and after
transaction.



$12,486,000
60,000

2
0

13,249,000

Troutville operates one branch office in Daleville, Va.,
approximately 5 miles east of Troutville.
The proposed merger is the facility whereby the acquisition of The First National Bank of Troutville by Valley of Virginia Bankshares, Inc., Harrisonburg, a
multi-bank holding company, will be accomplished.
The instant merger would have the effect of merely
combining an existing commercial bank with a nonoperating institution, and as such, without regard to the
proposed acquisition of the surviving bank by Valley of
Virginia Bankshares, Inc., would have no adverse effect upon competition in the relevant banking market.
Consequently, applying the statutory criteria, it is
concluded that the proposed merger is not adverse to

113

the public interest. Accordingly, this application should
be, and hereby is, approved.
May 19, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of February 27, 1976, requesting a report pursuant to Section 18(c) of the Federal Deposit Insurance Act on the competitive factors
involved in the proposed merger of Troutville Bank,

N.A. (org.), Troutville, Va., and First National Bank of
Troutville, Troutville, Va.
The proposed merger is part of a plan through which
First National Bank of Troutville would become a subsidiary of Valley of Virginia Bankshares, Inc., a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by Valley of Virginia
Bankshares, Inc., it would have no effect on competition.

THE FIRST NATIONAL BANK OF ELYRIA,
Elyria, Ohio, and FNB National Bank, Elyria, Ohio
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
First National Bank of Elyria, Elyria, Ohio (14968), with
and FNB National Bank, Elyria, Ohio (14968), which had
consolidated Aug. 16, 1976, under charter and title of "The First National Bank of Elyria"
(14968). The consolidated bank at date of consolidation had

COMPTROLLER'S DECISION
The First National Bank of Elyria, Elyria, Ohio, the Charter Bank ("Elyria Bank"), and FNB National Bank (organizing), Elyria, Ohio ("FNB"), have applied to the
Comptroller of the Currency for prior permission to effectuate a consolidation of the proponent banks under
the charter and with the title of The First National Bank
of Elyria. The decision of the Office of the Comptroller
of the Currency is rendered pursuant to an agreement
executed between Elyria Bank and FNB, upon which
the instant application rests, and such agreement is
herein incorporated by reference, the same as if fully
set forth.
Elyria Bank was chartered as a national banking association on April 13, 1962 and, as of March 31, 1976,
controlled total commercial bank deposits of $30.8 million, representing approximately 0.1 percent of commercial bank deposits in the state of Ohio.
The proposed consolidation is the facility whereby
the acquisition of The First National Bank of Elyria by
National City Corporation, Cleveland, Ohio, will be accomplished. The instant consolidation would merely
combine an existing commercial bank with a non* Asset figures are as of call dates immediately before and after
transaction.


114


$34,988,000
240,000
36,192,000

operating institution, and as such, without regard to the
proposed acquisition of the surviving bank by National
City Corporation, would have no adverse effect upon
competition within the relevant banking market.
Consequently, applying the statutory criteria, it is the
conclusion of this Office that the instant proposed
transaction is not adverse to the public interest. Accordingly, this application should be, and hereby is,
approved.
July 16, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of June 16, 1976, requesting a report pursuant to Section 18(c) of the Federal
Deposit Insurance Act on the competitive factors
involved in the proposed consolidation of FNB National
Bank, Elyria, Ohio (org.) and First National Bank of
Elyria, Elyria, Ohio.
The proposed consolidation is part of a plan through
which First National Bank of Elyria would become a
subsidiary of National City Corporation, a bank holding
company. The instant transaction, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by National City Corporation,
it would have no effect on competition.

THE FIRST NATIONAL BANK OF HENDERSON,
Henderson, Tex., and South Main & Richardson National Bank, Henderson, Tex.
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

The First National Bank of Henderson, Henderson, Tex. (6176), with
and South Main & Richardson National Bank, Henderson, Tex. (6176), which had
merged Oct. 1, 1976, under charter of the latter bank (6176) and title "The First National
Bank of Henderson." The merged bank at date of merger had

COMPTROLLER'S DECISION
The First National Bank of Henderson, Henderson,
Tex., and South Main & Richardson National Bank (organizing), Henderson, Tex., have applied to the Comptroller of the Currency for prior permission to merge
under the charter of South Main & Richardson National
Bank, and with the title of The First National Bank of
Henderson.
The First National Bank of Henderson, Henderson,
Tex., the merging bank, was chartered as a national
banking association on March 27, 1902, and as of December 31, 1975, held total commercial bank deposits
of $26.6 million, representing approximately 5.6 percent of the Longview banking market, approximated
by the whole of Gregg, Harrison and Rusk counties.
The proposed merger is the facility whereby the acquisition of the merging bank by Republic of Texas
Corporation, Dallas, Tex., the fourth largest banking
organization domiciled in Texas, will be accomplished.
The subject merger would merely combine an existing
commercial bank with a non-operating entity, and as
* Asset figures are as of call dates immediately before and after
transaction.

$31,062,000
130,000
33,574,000

such, without regard to the proposed acquisition of the
surviving institution by Republic of Texas Corporation,
would have no adverse effect upon competition within
the relevant market.
Accordingly, applying the statutory criteria, it is the
conclusion of this Office that the proposed merger is
not adverse to the public interest, and should be, and
hereby is, approved.
August 26, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in reply to your letter of June 25, 1976, requesting a report pursuant to Section 18(c) of the Federal
Deposit Insurance Act on the competitive factors
involved in the proposed merger of First National Bank
of Henderson, Henderson, Tex., and South Main &
Richardson National Bank (org.), Henderson, Tex.
The proposed merger is part of a plan through which
First National Bank of Henderson would become a
subsidiary of Republic of Texas Corporation, a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by Republic of Texas Corporation, it would have no effect on competition.

THE NATIONAL BANK OF LUDINGTON,
Ludington, Mich., and NBL National Bank, Ludington, Mich.
Banking offices
Name of bank and type of transaction

Total assets*

The National Bank of Ludington, Ludington, Mich. (14016), with
and NBL National Bank, Ludington, Mich. (14016), which had
consolidated Dec. 3, 1976, under the charter of the former (14016) and with the title
"National Bank of Ludington." The consolidated bank, at date of consolidation had

COMPTROLLER'S DECISION
The National Bank of Ludington, Ludington, Mich., the
charter bank, and NBL National Bank (organizing),
Ludington, Mich., the merging bank, have applied to
the Comptroller of the Currency for prior permission to
effectuate a consolidation under the charter, and with
the title of The National Bank of Ludington. The instant
application rests upon an agreement executed be* Asset figures are as of call dates immediately before and after
transaction.




In
To be
operation operated

$30,919,000
120,000
31,690,000

tween the proponent banks, and is incorporated herein
by reference, the same as if fully set forth.
The charter bank became a national banking association on February 19, 1934 and, as of March 31,
1976, had total commercial bank deposits of $29.4 million.
The proposed consolidation is the facility whereby
the acquisition of The National Bank of Ludington by
First National Financial Corporation, Kalamazoo, Mich.,
a registered multi-bank holding company, will be accomplished. The instant transaction would merely
combine an existing commercial bank with a non115

operating institution, and as such, without regard to the
proposed acquisition of the surviving bank by First National Financial Corporation, would have no effect upon
competition within the Ludington banking market.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that the subject proposal is not adverse to the
public interest and should be, and hereby is, approved.
October 22, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed consolidation is part of a plan through
which National Bank of Ludington would become a
subsidiary of First National Financial Corporation, a
bank holding company. The instant transaction, however, would merely combine an existing bank with a
non-operating institution; as such, and without regard
to the acquisition of the surviving bank by First National Financial Corporation, it would have no effect on
competition.

ALAMO HEIGHTS NATIONAL BANK,
Alamo Heights, Tex., and Heights Bank, National Association, Alamo Heights, Tex.
Banking offices
Total assets*

Name of bank and type of transaction

In
operation
Alamo Heights National Bank, Alamo Heights, Tex. (15514), with
and Heights Bank, National Association, Alamo Heights, Tex. (15514), which had
merged Dec. 31, 1976, under charter of the latter bank (15514) and title "Alamo Heights
National Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
Alamo Heights National Bank, Alamo Heights, Tex.
("Merging Bank"), and Heights Banks, National Association (organizing), Alamo Heights, Tex. ("Charter
Bank"), have applied to the Comptroller of the Currency for prior permission to effectuate a merger under
the charter of Heights Bank, National Association, and
with the title of Alamo Heights National Bank. The subject application rests upon an agreement executed between the proponent banks, and is incorporated herein
by reference, the same as if fully set forth.
Merging Bank was chartered as a national banking
association on May 10, 1965, and as of June 30, 1976,
held total deposits of $30.8 million. Charter Bank is a
newly created institution, and has no operating history.
The proposed merger is the facility whereby Merging Bank will become a wholly-owned, less directors'
qualifying shares, subsidiary of the largest banking organization headquartered in the state of Texas, First
International Bancshares, Inc., Dallas, Tex. As of December 31, 1975, First International Bancshares, Inc.
* Asset figures are as of call dates immediately before and after
transaction.


116


$33,635,000
125,000
35,756,000

To be
operated

•j

0
-j

controlled 23 commercial banking subsidiaries with
aggregate deposits of approximately $3.6 billion, 7.6
percent of the state deposits. This merger would have
the effect of merely combining an existing commercial
bank with a non-operating entity, and as such, disregarding the proposed acquisition of the surviving
institution by First International Bancshares, Inc., would
have no adverse competitive effect within the San Antonio SMSA, the approximate relevant banking market.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that the proposed transaction is in the public
interest,-and should be, and hereby is, approved.
December 1, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger is part of a plan through which
Alamo Heights National Bank would become a subsidiary of First International Bancshares, Inc., a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by First International
Bancshares, Inc., it would have no effect on competition.

FIRST NATIONAL BANK OF FREEPORT,
Freeport, III., and First Freeport Bank, National Association, Freeport,
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
First National Bank of Freeport, Freeport, III. (13695), with
and First Freeport Bank, National Association, Freeport, III. (13695), which had
merged Dec. 31, 1976, under charter of the latter bank (13695) and title "First National
Bank of Freeport." The merged bank at date of merger had

COMPTROLLER'S DECISION
First National Bank of Freeport, Freeport, III. ("Merging
Bank"), and First Freeport Bank, National Association
(organizing), Freeport, III. ("Charter Bank"), have
applied to the Comptroller of the Currency for prior
permission to effectuate a merger under the charter of
First Freeport Bank, National Association, and with the
title of First National Bank of Freeport. The instant application rests upon an agreement executed between
the proponent banks, and is incorporated herein by reference, the same as if fully set forth.
Merging Bank was chartered as a national banking
association on May 29, 1933 and, as of June 30, 1976,
held total commercial bank deposits of $69.6 million.
The proposed merger is the facility whereby the acquisition of Merging Bank by First Freeport Corporation, Freeport, III., a proposed one-bank holding company, will be accomplished. The instant merger would
merely have the effect of combining an existing com* Asset figures are as of call dates immediately before and after
transaction.

$79,640,000
130,000

2
0

83,601,000

mercial bank with a non-operating institution; and as
such, without regard to the proposed acquisition of the
surviving bank by First Freeport Corporation, would
have no adverse effect upon competition within the relevant banking market, approximated by the whole of
Stephenson County.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that the proposed merger is not adverse to the
public interest and should be, and hereby is, approved.
November 5, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger is part of a plan through which
First National Bank of Freeport would become a subsidiary of First Freeport Corporation, a bank holding
company. The instant merger, however, would merely
combine an existing bank with a non-operating institution; as such, and without regard to the acquisition of
the surviving bank by First Freeport Corporation, it
would have no effect on competition.

THE CHESTER NATIONAL BANK,
Chester, N.Y., and Chester Bank, N.A., Chester, N.Y.
Banking offices

Name of bank and type of transaction

Total assets*
in
To be
operation operated

The Chester National Bank, Chester, N.Y. (1349), with
and Chester Bank, N.A., Chester, N.Y. (1349), which had
merged Dec. 31, 1976, under charter of the latter bank (1349) and title "The Chester National
Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
The Chester National Bank, Chester, N.Y. ("Merging
Bank"), and Chester Bank, N.A., (organizing), Chester,
N.Y. ("Charter Bank"), have applied to the Comptroller
of the Currency for prior permission to effectuate a
merger under the charter of Chester Bank, N.A. and
with the title of The Chester National Bank. The instant
application rests upon an agreement executed between the proponent banks, and is incorporated herein
by reference, the same as if fully set forth.
The proposed merger is the facility whereby First
Commercial Banks Inc., Albany, N.Y., a registered
* Asset figures are as of call dates immediately before and after
transaction.




$53,286,000
60,000
51,606,000

10
0
10

multi-bank holding company with five commercial
banking subsidiaries that have total deposits of $1.4
billion, will be accomplished. The instant merger would
merely combine an existing commercial bank with a
non-operating institution, and as such, without regard
to the proposed acquisition of the surviving bank by
First Commercial Banks Inc., would have no adverse
effect upon competition within the relevant banking
market, approximated by Orange and Sullivan counties.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that the proposed transaction is not adverse to
the public interest and should be, and hereby is approved.
November 26, 1976.
117

SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger is part of a plan through which
Chester National Bank would become a subsidiary of
First Commercial Banks Inc., a bank holding company.

The instant merger, however, would merely combine
an existing bank with a non-operating institution; as
such, and without regard to the acquisition of the surviving bank by First Commercial Banks Inc., it would
have no effect on competition.

THE ILLINOIS NATIONAL BANK OF SPRINGFIELD,
Springfield, III., and INB National Bank, Springfield, III.
Banking offices
Name of bank and type of transaction

Total assets*
In
To be
operation operated

The Illinois National Bank of Springfield, Springfield, III. (3548), with
and INB National Bank, Springfield, III. (3548), which had
merged Dec. 31, 1976, under charter of the latter bank (3548) and title "The Illinois
National Bank of Springfield." The merged bank at date of merger had

COMPTROLLER'S DECISION
On January 20, 1976, The Illinois National Bank of
Springfield, Springfield, III., and INB National Bank (organizing), Springfield, III., applied to the Comptroller of
the Currency for permission to merge under the charter of the latter and with the title of the former.
The proposed merger is part of a corporate reorganization through which The Illinois National Bank of
Springfield will become a wholly-owned subsidiary of
Illinois National Bancorp, Inc., Springfield, III., a bank
holding company.
Applying the statutory criteria, it is concluded that
the instant merger will merely combine an existing
* Asset figures are as of call dates immediately before and after
transaction.

$187,084,000
250,000

o

0
o

205,959,000

bank with a non-operating institution, as such, and
without regard to the acquisition of the surviving bank
by Illinois National Bancorp, Inc., it will have no effect
on competition. This application is, therefore, approved.

May 5, 1976.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger is part of a plan through which Illinois National Bank of Springfield would become a
subsidiary of Illinois National Bancorp, Inc., a bank
holding company. The instant merger, however, would
merely combine an existing bank with a non-operating
institution; as such, and without regard to the acquisition of the surviving bank by Illinois National Bancorp,
Inc., it would have no effect on competition.

WILLIAMSTOWN NATIONAL BANK,
Williamstown, Mass., and Williamstown Bank (National Association), Williamstown, Mass.
Banking offices
Total assets*

Name of bank and type of transaction

In
To be
operation operated
Williamstown National Bank, Williamstown, Mass. (3092), with
and Williamstown Bank (National Association), Williamstown, Mass. (3092), which had
merged Dec. 31, 1976, under charter of the latter bank (3092) and title "Williamstown
National Bank." The merged bank at date of merger had

COMPTROLLER'S DECISION
Williamstown National Bank, Williamstown, Mass.
("Merging Bank") and Williamstown Bank (National
Association) (organizing), Williamstown, Mass. ("Charter Bank") have made application to the Comptroller of
the Currency for prior permission to effectuate a
merger under the charter of Williamstown Bank (National Association) and with the title of Williamstown
National Bank. The instant application rests upon an
* Asset figures are as of call dates immediately before and after transaction.
Digitized for 118
FRASER


$10,877,000
120,000

2
0

11,111,000

agreement executed between the proponent banks
and is incorporated herein by reference, the same as if
fully set forth.
Merging Bank was chartered as a national banking
association on December 17, 1883 and, as of June 30,
1976, held total commercial bank deposits of $9.1 million.
The proposed merger is the facility whereby the acquisition of Merging Bank by T.N.B. Financial Corp.,
Springfield, Mass., a registered one-bank holding
company, will be accomplished. The subject merger
would merely have the effect of combining an existing

commercial bank with a non-operating institution, and
as such, without regard to the proposed acquisition of
the surviving bank by T.N.B. Financial Corp., would
have no effect upon competition.
Accordingly, applying the statutory criteria, it is the
conclusion of the Office of the Comptroller of the Currency that the proposed merger is not adverse to the
public interest and should be, and hereby is, approved.
November 29, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger is part of a plan through which
Williamstown National Bank would become a subsidiary of T.N.B. Financial Corporation, a bank holding
company. The instant merger, however, would merely
combine an existing bank with a non-operating institution; as such, and without regard to the acquisition of
the surviving bank by T.N.B. Financial Corporation, it
would have no effect on competition.

///. Mergers approved but abandoned, no litigation.
SOUTHEAST FIRST NATIONAL BANK OF SARASOTA,
Sarasota, Fla., and Palmer First National Bank and Trust Company of Sarasota, Sarasota, Fla.
Name of bank and type of transaction
Palmer First National Bank and Trust Company of Sarasota, Sarasota, Fla. (13352) and Southeast First National Bank of Sarasota, Sarasota, Fla.
(16531) applied for permission to merge Dec. 3, 1975, under charter and title of the latter bank (16531). The application was approved Dec. 23,
1975, but was abandoned by the banks Jan. 14, 1976.

COMPTROLLER'S DECISION
On December 3, 1975, Southeast First National Bank
of Sarasota (organizing), Sarasota, Fla., and Palmer
First National Bank and Trust Company of Sarasota,
Sarasota, Fla., applied to the Comptroller of the Currency for permission to merge under the charter and
with the title of Southeast First National Bank of
Sarasota.
The proposed merger is between two banks
wholly-owned, except for directors qualifying shares,
by Southeast Acquisition Corporation, a registered
bank holding company.
Applying the statutory criteria, it is concluded that
the instant merger will merely combine an existing
bank with a non-operating institution; as such, it will

have no effect on competition. This application is,
therefore, approved.
December 23, 1975.
SUMMARY OF REPORT BY ATTORNEY GENERAL
The proposed merger is part of a plan through which
Palmer First National Bank and Trust Company of
Sarasota would become a subsidiary of Southeast
Banking Corporation, a bank holding company. The
instant merger, however, would merely combine an
existing bank with a non-operating institution; as such,
and without regard to the acquisition of the surviving
bank by Southeast Banking Corporation, it would have
no effect on competition.

THE FIRST NATIONAL BANK OF MARYLAND,
Baltimore, M<±, and The Citizens National Bank of Havre de Grace, Havre de Grace, Md.
Name of bank and type of transaction
The Citizens National Bank of Havre de Grace, Havre de Grace, Md. (5445) and The First National Bank of Maryland, Baltimore, Md. (1413)
applied for permission to merge Mar. 8, 1976, under the charter and title of the latter bank (1413). The application was approved May 28, 1976,
but was abandoned by the banks July 20, 1976.

COMPTROLLER'S DECISION
The Citizens National Bank of Havre de Grace, Havre
de Grace ("Citizens") and The First National Bank of
Maryland, Baltimore ("FNB") have applied to the Comptroller of the Currency for permission to merge under
the charter and with the title of the latter.



FNB, is the wholly-owned banking subsidiary of First
Maryland Bancorp, Baltimore, Md. Currently the third
largest commercial banking organization domiciled
within the state of Maryland, FNB, as of March 31,
1976, held total domestic deposits of approximately
$933 million, representing approximately 11 percent of
total commercial bank deposits in Maryland. Operating
119

a total of 70 banking offices throughout the state,
FNB's principal market area is the city of Baltimore and
adjacent Baltimore County.
Citizens was chartered in 1900 and currently holds
deposits aggregating approximately $9 million at its
main office and one drive-in facility in Havre de Grace.
Located in the extreme northeastern section of Harford
County, Citizens primarily serves the immediate Havre
de Grace area, and the municipalities of Perryville and
Port Deposit in adjacent Cecil County.
Citizens' two banking offices experience the greatest
degree of competition from two offices of Maryland National Bank, the state's largest bank. Additionally, there
are 39 offices of 10 commercial banks operating within
Citizens' relevant market area, including five offices of
Maryland National Bank, 10 offices of The Equitable
Trust Company and eight offices of FNB; the three
largest commercial banks in Maryland. The closest office of FNB to a Citizens location is FNB's Aberdeen office, slightly less than 5 miles south of Havre de Grace.
All other offices of FNB are more than 15 miles from
Havre de Grace. Accordingly, consummation of the
proposed merger would have the effect of eliminating
a degree of existing competition between FNB's
branch office in Aberdeen and Citizens. Furthermore,
the Office of the Comptroller of the Currency, on December 29, 1975, gave approval to FNB's application
to establish a de novo banking office within the city of
Havre de Grace. To date, that new FNB office has not
opened for business, but it will be opened as an additional banking site of FNB in Havre de Grace if this application is approved. Therefore, if the subject merger
is approved, the potential for increased competition
between FNB and Citizens is eliminated.
Pursuant to the provisions of the Bank Merger Act of
1966, 12 USC 1828(c), the Comptroller of the Currency
cannot approve any transaction which would have certain proscribed anticompetitive effects unless the Office concludes that those anticompetitive effects are
clearly outweighed in the public interest by the probable effects of the proposed transaction in adequately
meeting the convenience and needs of the community
to be served. Furthermore, the Office of the Comptroller is also directed to fully consider the financial and
managerial resources and future prospects of the
existing and proposed institution.
As noted, Citizens primary competition is from two
branches of the largest bank in Maryland. In light of
Citizens' small deposit size relative to Maryland National Bank, it must be concluded that Citizens has not
been an effective competitor in its relevant market.
Also, Citizens' small size precludes it from adequately
meeting any large commercial customer loan requests.
This merger would have the effect of providing a viable, full-service banking competitor to Maryland National Bank in Havre de Grace, and a second meaningful baking alternative would be available to fully serve
the needs of the Havre de Grace banking community.


120


Furthermore, the senior management of Citizens is beyond normal retirement age. Affiliation with FNB would
ensure both management depth and provide for management succession at Citizens.
In conclusion, it is the opinion of this Office that any
anticompetitive effects of the subject merger are
clearly outweighed by the aspects of convenience and
needs of the banking community to be served and,
further, by considerations with respect to the financial
and managerial resources and future prospects of the
surviving banking institution.
It is therefore, the opinion of this Office that the
proposed merger is in the public interest and should
be, and hereby is, approved.
May 28, 1976.

SUMMARY OF REPORT BY ATTORNEY GENERAL
Applicant operates a branch office in Aberdeen which
is 4.6 miles south of Havre de Grace. It also operates
additional nearby offices at Bel Air and Edgewood. A
survey of accounts disclosed that 2.4 percent of Applicant's deposits in Harford County, wherein Havre de
Grace is located, originate in Havre de Grace and that
6.6 percent of Bank's deposits originate within the Bel
Air, Aberdeen and Edgewood areas. Thus, it would
appear that the proposed merger would eliminate
some existing competition between the participants.
A total of 10 banks, including the parties to this
transaction, operate 26 offices within the southeastern
part of Harford County which includes Bel Air, Aberdeen and Edgewood and the southwestern part of
Cecil County which includes Perryville and Port Deposit, where the major impact of this merger will be felt
and which appears to be the appropriate geographic
market within which to gauge the effects of the proposed acquisition. As of June 30, 1975, Applicant held
the largest share of total deposits in this area, approximately 35 percent, while Bank held the fifth largest
share, some 4 percent. The Equitable Trust Company
held the second largest share (about 23 percent), the
Commercial and Savings Bank of Bel Air held the third
largest share (16 percent) and Maryland National
Bank, the largest bank in the state, held the fourth
largest share (approximately 11 percent). Thus, consummation of the proposed merger would result in
Applicant holding about 39 percent of total area deposits.
We conclude that the proposed merger would eliminate some existing competition between the merging
parties and would increase concentration among
commercial banking institutions in the southeastern
part of Harford County which includes Bel Air, Aberdeen and Edgewood and the southwestern part of
Cecil County, which includes Perryville and Port Deposit. Its overall effect on competition would be adverse.




APPENDIX B

Statistical Tables

Statistical Tables
Table
No.
Title
Page
B-1
Comptrollers of the Currency, 1863tothe
present
125
B-2
Deputy Comptrollers of the Currency .. 126
B-3
Regional administrators of national banks 126
B-4
Changes in the structure of the National
Banking System, by states, 1863-1976 . 127
B-5
Charters, liquidations and changes in issued capital stock of national banks,
calendar 1976
128
B-6
Applications for national bank charters,
approved and rejected, by states, calendar 1976
129
B-7
Applications for national bank charters
pursuant to corporate reorganizations, by
states, calendar 1976
130
B-8
Newly organized national banks, by
states, calendar 1976
130
B-9
National bank charters issued and mergers consummated pursuant to corporate reorganizations, by states, calendar
1976
132
B-10 State-chartered banks converted to national banks, by states, calendar 1976 . 133
B —11 National bank charters issued pursuant
to corporate reorganizations, by states,
calendar 1976
133
B-12 National banks reported in voluntary liquidation, by states, calendar 1976
134
B-13 National banks merged or consolidated
with state banks, by states, calendar
1976
135
B-14 National banks converted into state
banks, by states, calendar 1976
136
B-15 Purchases of state banks by national
banks, by states, calendar 1976
137
B-16 Consolidations of national banks, or national and state banks, by states, calendar 1976
137
B-17 Mergers of national banks, or national
and state banks, by states, calendar
1976
138
B-18 Mergers resulting in national banks, by
assets of acquiring and acquired banks,
1960-1976
140
B-19 Total assets, liabilities and equity capital
of domestic offices and subsidiaries of
national banks, United States and other
areas, June 30, 1976
141




Table
Title
Page
No.
B-20 Total assets, liabilities and equity capital
of domestic offices and subsidiaries of
national banks, United States and other
areas, December 31,1976
149
B-21 Loans of national banks, by states, December 31, 1976
157
B-22 Outstanding balances, credit cards and
related plans of national banks, by states,
December 31, 1976
158
B-23 National banks involved in direct lease
financing, December 31, 1976
159
B-24 Principal assets, liabilities and capital
accounts of national banks, by asset size,
year-end, 1976
160
B-25 Ratios of classified assets to total loans
for national banks, deposit size category,
under $100 million
161
B-26 Ratios of classified assets to total loans
for national banks, deposit size category,
$100 million and over
161
B-27 Income and expenses of foreign and
domestic offices and subsidiaries of national banks, United States and other
areas, year ended December 31, 1976
162
B-28 Income and expenses of national banks,
by asset size, December 31, 1976
178
B-29 Average assets and equity capital, net
income and dividends of national banks

1961-1976
B-30
B-31
B-32
B-33
B-34
B-35

Loan losses and recoveries of national
banks, 1961 -1976, domestic offices only
Assets and liabilities of national banks,
date of last report of condition, 1961 1976, domestic offices only
Consolidated assets and liabilities of national banks with foreign operations, December 31, 1976
Foreign branches of national banks, by
region and country, December 31, 1976
Total foreign branch assets of national
banks, year-end 1953-1976
Foreign branches of national banks,

1960-1976
B-36
B-37

Foreign branch assets and liabilities of
national banks, December 31, 1976 . . .
Trust assets and income of national
banks, by states, calendar 1976

179
180
181
182
183
184

184
184
185

Significant Changes in the Financial Reports of National Banks
Beginning with the first call report of 1976, for March 31,
a number of significant changes, were incorporated in
the quarterly financial reports submitted by national
banks. Those changes affected the domestic report of
condition, the foreign and domestic report of condition
and the report of income and are reflected in the statistical tables presented throughout this Annual Report. Direct comparison of certain 1976 data with those of earlier
years is often impossible because of the changes. To
facilitate the use of this report, major changes affecting
individual tables have been footnoted where appropriate. The following general explanation of the reporting
changes instituted in 1976 should prove helpful in
analyzing current and prior years' data.
Reports of income for 1976 were prepared on a fully
consolidated foreign and domestic basis, instead of a
domestic-only basis. Banks which have foreign offices,
i.e., foreign branches, foreign subsidiaries or Edge Act
or Agreement subsidiaries, began reporting income and
expenses from those offices, along with that of domestic
offices, on the appropriate lines of the income and expense statement. For example, a bank with foreign offices reports the combined income earned on loans
booked in the bank's domestic and in its foreign offices
as "Interest and fees on loans." For 1975 and prior years,
banks with foreign offices reported net earnings from
foreign branches and net earnings from foreign subsidiaries as single entries under "Other operating
income." Beginning in 1976, gross income and expenses of a bank's foreign offices are consolidated with
those of the domestic offices on a line-by-line basis.
Readers should be mindful of that change when-comparing income and expense items with corresponding
asset items. For 1976, an income item such as "Interest
and fees on loans," relates to the consolidated foreign
and domestic loans of a bank with foreign operations.
Similarly, total income and expenses for all national
banks corresponds to the total assets and liabilities of
domestic offices and subsidiaries and the additional assets and liabilities held in foreign offices. For 1975 and
prior years, however, "Interest and fees on loans" relates
only to the domestic loans of a bank or of the National
Banking System. To facilitate proper analysis of the
aggregate income data presented in the report, the consolidated foreign and domestic balance sheet of national
banks with foreign assets is presented for the first time
(Table B-32). The difference between the domestic and
the consolidated foreign and domestic items for those
banks may be added to the domestic-only balance sheet
for all national banks to arrive at a fully consolidated balance sheet for the National Banking System.
The fully consolidated foreign and domestic balance
sheet differs, in two important ways, from that produced
by adding the domestic-only balance sheet to the total
foreign branch assets found in earlier Annual Reports.
First, the aggregate foreign branch data, which are the
summations of reports by individual foreign branches,
contain significant intra-bank items which should be netted out before calculating total foreign and domestic assets. Intra-bank items are normally excluded from the
consolidated foreign and domestic report of condition.



Second, the assets and liabilities of foreign subsidiaries,
including, by definition, Edge Act and Agreement subsidiaries located in the U.S., do not appear on the foreign
branch reports, but were reported only as net
investments in unconsolidated subsidiaries on the
domestic balance sheet. Those items are included on a
line-by-line basis in the fully consolidated foreign and
domestic report of condition.
Major changes in 1976 reports of condition, both
domestic and foreign and domestic, included the recasting of reserves on loans and securities and the reporting
of assets and loans net of unearned discount and valuation reserves on loans. Those changes required new definitions of both "Total assets" and "Total equity capital"
that preclude direct comparison with the same items for
1975 and earlier years.
Beginning in 1976, loans and, therefore, "Total assets"
are reported net of unearned discount. Before 1976, unearned income, which relates primarily to installment
loans, was reported under "Other liabilities" by all national banks on an accrual accounting basis. That
included all banks with more than $25 million in assets,
those that had been recently chartered and those small
banks that had chosen to use accrual accounting. At the
end of 1975, banks on the accrual basis reported approximately $6 billion in unearned income on loans. Prior
to 1976, national banks on a cash basis of accounting,
only certain smaller banks, were permitted to include
their interest collected but not earned on installment
loans in undivided profits. That amounted to only something over $100 million. Beginning in 1976, all banks had
to deduct unearned income from total loans. That resulted in a downward adjustment of "Total assets" by
more than $6 billion and a slight reduction in total equity
capital.
In addition, the valuation portion of the reserve for bad
debt losses, consisting of amounts added to the reserve
by charges to operating expense and reduced by net
charge-offs, is now deducted from total loans net of unearned discount. The valuation portion constituted the
majority of the reserve for bad debt losses on loans as
reported in the years 1969 through 1975; as of December 31, 1975, it equalled approximately $3.5 billion.
Therefore, at the beginning of 1976, "Total assets" had to
be adjusted downward an additional $3.5 billion, for a
total downward adjustment of that item of more than $9.5
billion.
The remainder of the old item "Reserves on Loans and
Securities" consisted of contingency and deferred tax
portions. The contingency portion consisted of amounts
transferred to the loss reserve from "Undivided profits"
and, thus, represents the cumulative difference between
the expense item "Provision for loan losses" reported in
the report of income, and the total provision for loan
losses allowed for income tax purposes. The deferred
tax portion of the reserve consists of the total tax effect of
amounts transferred to the reserve from undivided profits, when amounts provided for in the income statement
are less than the amounts deducted for income tax purposes. Beginning in 1976, the contingency portion is reported as part of total equity capital and is generally

123

carried in the item "Reserve for contingencies and other
capital reserves." That reporting change, breaking up the
old "Reserves on Loans and Securities," caused an upward adjustment in total equity capital in 1976 of approximately $1 billion. The deferred tax portion, which
amounted to more than $600 million at the end of 1975, is
now reported under "Other liabilities."
Other changes involved separating Federal Reserve
stock out of "Other bonds, notes and debentures" on the
report of condition. Minority interest in consolidated sub-

124



sidiaries is now reported as part of "Other liabilities"
rather than as a separate entry below total liabilities.
In addition to being fully consolidated, the report of
income now provides detail on interest earned on balances with banks, interest expense of large time certificates of deposit, interest expense of deposits in foreign
offices and income from direct lease financing.
Because of the major reporting changes outlined
above, care should be taken when calculating asset
growth rates, changes in capital and earnings ratios and
when making historical comparisons in general.

Table B - 1
Comptrollers of the Currency, 1863 to the present
No.

1
2
3
4
5
6
7
8
9

10
11
12
13
14
15
16
17
18
19

20
21
22
23
24

Name
McCulloch, Hugh
Clarke, Freeman
Hulburd, Hiland R. . . .
Knox, John Jay
Cannon, Henry W. . . .
Trenholm, William L. .
Lacey, Edward S. . . .
Hepburn, A. Barton ..
Eckels, James H
Dawes, Charles G.
Ridgely, William Barret
Murray, Lawrence O. .
Williams, John Skelton
Crissinger, D.R
Dawes, Henry M
Mclntosh, Joseph W. ,
Pole, John W
O'Connor, J. F. T
Delano, Preston
Gidney, Ray M
Saxon, James J
Camp, William B
Smith, James E
Heimann, John G




Date of
appointment
May
Mar.
Feb.
Apr.
May
Apr.
May
Aug.
Apr.
Jan.
Oct.
Apr.
Feb.
Mar.
May
Dec.
Nov.
May
Oct.
Apr.
Nov.
Nov.
July
July

9,
21,
1,
25,
12,
20,
1,
2,
26,
1,
1,
27,
2,
17,
1,
20,
21,
11,
24,
16,
16,
16,
5,
21,

1863
1865
1867
1872
1884
1886
1889
1892
1893
1898
1901
1908
1914
1921
1923
1924
1928
1933
1938
1953
1961
1966
1973
1977

Date of
resignation

Mar.
July
Apr.
Apr.
Mar.
Apr.
June
Apr.
Dec.
Sept.
Mar.
Apr.
Mar.
Apr.
Dec.
Nov.
Sept.
Apr.
Feb.
Nov.
Nov.
Mar.
July

8, 1865
24, 1866
3, 1872
30, 1884
1, 1886
30, 1889
30, 1892
25, 1893
31, 1897
30, 1901
28, 1908
27, 1913
2, 1921
30, 1923
17, 1924
20, 1928
20, 1932
16, 1938
15, 1953
15, 1961
15, 1966
23, 1973
31, 1976

State
Indiana.
New York.
Ohio.
Minnesota.
Minnesota.
South Carolina.
Michigan.
New York.
Illinois.
Illinois.
Illinois.
New York.
Virginia.
Ohio
Illinois.
Illinois.
Ohio.
California.
Massachusetts.
Ohio.
Illinois.

Texas.
South Dakota.
New York.

125

Table B-2
Deputy Comptrollers of the Currency
No.
1 Howard, Samuel T. ...
2 Hulburd, Hiland R
3 Knox, John Jay
4 Langworthy, John S. ..
5 Snyder, V. P
6 Abrahams, J. D
7 Nixon, R. M
8 Tucker, Oliver P
9 Coffin, George M
10 Murray, Lawrence O. .
11 Kane, Thomas P
12 Fowler, Willis J
13 Mclntosh, Joseph W. .
14 Collins, Charles W. . . .
15 Stearns, E. W
16 Await, F. G
17 Gough, E. H
18 Proctor, John L
19 Lyons, Gibbs
20 Prentiss, Jr., William ..
21 Diggs, Marshall R
22 Oppegard, G. J
23 Upham, C. B
24 Mulroney, A. J
25 McCandless, R. B
26 Sedlacek, L H
27 Robertson, J. L
28 Hudspeth, J.W
29 Jennings, L. A
30 Taylor, W. M
31 Garwood, G. W
32 Fleming, Chapman C. .
33 Haggard, Hollis S
34 Camp, William B
35 Redman, Clarence B. .
36 Watson, Justin T
37 Miller, Dean E
38 DeShazo, Thomas G. .
39 Egertson,
.
40 Blanchard,R. Coleman .
Richard J.
41 Park, Radcliffe
42 Faulstich, Albert J
43 Motter, David C
44
45 Gwin, John D W. A.
46 Howland, Jr.,
Mullin, Robert
47 Ream, Joseph A
48 Bloom, Robert M
49 Chotard, Richard D. ..
50 Hall, Charles
51 Jones, David B
H
52 Murphy, C. Westbrook
53 Selby, H. Joe

Name

Dates of tenure
May
9, 1963 Aug.
1, 1865 Jan.
Aug.
Mar. 12, 1867 Apr.
8, 1872 Jan.
Aug.
Jan.
5, 1886 Jan.
Jan. 27, 1887 May
Aug. 11, 1890 Mar.
7, 1893 Mar.
Apr.
Mar. 12, 1896 Aug.
Sept. 1, 1898 June
June 29, 1899 Mar.
1, 1908 Feb.
July
May 21, 1923 Dec.
1, 1923 June
July
6, 1925 Nov.
Jan.
1, 1927 Feb.
July
6, 1927 Oct.
July
Dec. 1, 1928 Jan.
Jan. 24, 1933 Jan.
Feb. 24, 1936 Jan.
Jan. 16, 1938 Sept.
Jan. 16, 1938 Sept.
1, 1938 Dec.
Oct.
1, 1939 Aug.
May
7, 1941 Mar.
July
Sept. 1, 1941 Sept.
1, 1944 Feb.
Oct.
1, 1949 Aug.
Jan.
Sept. 1, 1950 May
1, 1951 Apr.
Mar.
Feb. 18, 1952 Dec.
Sept. 15, 1959 Aug.
May 16, 1960 Aug.
2, 1962 Nov.
Apr.
4, 1962 Oct.
Aug.
Sept. 3, 1962 July
Dec. 23, 1962
1, 1963
Jan.
July 13, 1964 June
Sept. 1, 1964 Sept.
Sept. 1, 1964 June
July 19, 1965 Oct.
1, 1966
July
Feb. 21, 1967 Dec.
5, 1973
July
July
5, 1973
2, 1975
Feb.
Aua 31, 1975
,
y
Aug. 31, 1975
Aua 31, 1975
Aug. 31, 1975 Sept.
Aua 31 1975
Aug". 31, 1975

1,1865
31,1867
24, 1872
3, 1886
3, 1887
25, 1890
16, 1893
11, 1896
31, 1898
27, 1899
2, 1923
14, 1927
19, 1924
30, 1927
30, 1928
15, 1936
16, 1941
23, 1933
15, 1938
15, 1938
30, 1938
30, 1938
31, 1948
31, 1941
1, 1951
30, 1944
17, 1952
31, 1950
16, 1960
1, 1962
31, 1962
31, 1962
3, 1962
15, 1966
26, 1963
18, 1975
30,
26,
1,
26,

1966
1975
1967
1974

31, 1974

20, 1976

State
New York.
Ohio.
Minnesota.
New York.
New York.
Virginia.
Indiana.
Kentucky.
South Carolina.
New York.
District of Columbia
Indiana.
Illinois.
Illinois.
Virginia.
Maryland.
Indiana.
Washington.
Georgia.
California.
Texas.
California.
Iowa.
Iowa.
Iowa.
Nebraska.
Nebraska.
Texas.
New York.
Virginia.
Colorado.
Ohio.
Missouri.
Texas.
Connecticut.
Ohio.
Iowa.
Virginia.
Iowa.
Massachusetts.
Wisconsin.
Louisiana.
Ohio.
Mississippi.
Georgia.
Kansas.
Pennsylvania.
New York.
Missouri.
Pennsylvania.
Texas.
Maryland.
Texas.

Table B-3
Regional Administrators of National banks
Region
Name
1 Charles H. Paterson
2
3
4
5
6
7
8
9
10
11
12
13
14

Charles M. Van Horn
R. Coleman Egertson
Larry T. Gerzema
Clifton A. Poole
Donald L. Tarleton
Billy C. Wood
John W. Schaffer, Jr
Kenneth W, Leaf
John R. Burt
Michael Doman
Kent D. Glover
M. B. Adams
John G. Hensel

Digitized for126
FRASER


Headquarters
Boston, Mass
New York, N.Y
Philadelphia, Pa
Cleveland, Ohio
Richmond, Va
Atlanta, Ga
Chicago, III
Memphis, Tenn
Minneapolis, Minn
Kansas City, Mo
Dallas, Tex
Denver, Colo
Portland, Oreg
San Francisco, Calif

States
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island,
Vermont.
New Jersey, New York, Puerto Rico, Virgin Islands.
Pennsylvania, Delaware.
Indiana, Kentucky, Ohio.
District of Columbia, Maryland, North Carolina, Virginia, West Virginia.
Florida, Georgia, South Carolina.
Illinois, Michigan.
Alabama, Arkansas, Louisiana, Mississippi, Tennessee.
Minnesota, North Dakota, South Dakota, Wisconsin.
Iowa, Kansas, Missouri, Nebraska.
Oklahoma, Texas.
Arizona, Colorado, New Mexico, Utah, Wyoming.
Alaska, Idaho, Montana, Oregon, Washington.
California, Guam, Hawaii, Nevada.

Table B-4
Changes in the structure of the National Banking System, by States, 1863-1976
Organized
and opened
for business 18631976

Consolidated and merged
under 12 USC215
Insolvencies

Consolidated

Liquidated

Merged

12 USC 214
Merged or
Converted to consolidated
with state
state banks
banks

In
operation
Dec. 31,

1976

All national banks .

16,634

729

895

2,835

6,779

278

381

4,737

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia . . .
Florida

237
9
33
173
625
289
141
32
44
396

4
0
1
1
21
5
11
0

26
0
0
3
56
4
10
0
1
2

45
0
6
39
68
59
7
1
7
43

64
2
21
55
397
86
69
18
13
43

1
0
1
2
5
3
5
0
0
0

0
1
1
0
20
0
16
8
0
0

97
6
3
73
58
132
23
5
15
306

4
0
2
18
8
2
4
3
3
11

43
0
35
227
98
206
77
37
16
13

89
4

65
299
205
243
198
110
53
79

9
1
2
21
7
12
11
8
0
1

0
0
3
2
4
2
0
2
0
2

64
2
6
425
120
100
169
82
54
17

69
208
157
193
36
149
76
199
8
23

1
1
3
6
4
5
0
9
0
3

11
16
5
0
1
1
0
0
1
0

41
75
122
203
38
115
56
120
4
43

1
0
14
0
0
2
36
0
17
0

29
0
89
9
0
6
0
7
109
0

104
38
129
28
43
219
195
7
237
5

4
0
2
5
2
9
13
1
0
0
0

19
32
74
596
13
14
108
21
103
130
46

0
0

1
1

Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

217
8
113
1,012
456
569
465
253
130
131

1
0
20
14
4
6
11
4

161
401
408
526
107
354
213
416
18
91

3
45
11
8
6
13
4
2
1
4

19
28
33
0
6
12
1
3
0
13

17
28
77
116
16
59
76
83
4
5

New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

503
102
1,064
170
264
756
793
154
1,304
70

57
1
127
8
3
33
12
2
112
3

95
1
130
23
0
44
11
4
122
2

61
25
132
44
100
113
85
31
211
2

156
37
443
58
118

South Carolina
South Dakota
Tennessee

140
225
239
1,496
53
85
313
251
222
313
85

14
9
45
4
3
23
19
11
9
0

14
3
14
72
2
9
63
10
2
1
1

44
93
36
142
6
18
28
52
38
54
12

49
81
95
574
23
29
74
148
68
117
26

2
2
9
62
3
3
4
0
0
2
0

2
2

0
0

0
0

0
0

1
1

0
0

Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Virgin Islands

Puerto Rico

339
454

103
496
58

Does not include one non-national bank in the District of Columbia supervised by the Comptroller of the Currency.




127

Table B-5
Charters, liquidations and changes in issued capital stock of national banks, calendar 1976
Capital stock

Number of
banks
Increases:
Banks newly chartered:
Primary organization
Conversion of state banks
Capital stock:
Preferred: 3 cases by new issue
Common:
439 cases by statutory sale
503 cases by statutory stock dividends
1 case by statutory consolidation
21 cases by statutory merger
19 cases by conversion of preferred stock
50 cases by conversion of capital notes
Subordinated notes and debentures: 160 cases by new issue
Total increases
Decreases:
Banks ceasing operations:
Voluntary liquidations:
Succeeded by national banks
Succeeded by state banks
Statutory mergers
Converted into state banks
Merged or consolidated into state banks
Insolvent
Capital stock:
Preferred" 19 Retired
Common:
12 cases by statutory reduction
12 cases by statutory merger .
Subordinated notes and debentures:
80 retirements
50 converted to common stock
Total decreases
Net change
Charters in force Dec. 31, 1975, and issued capital
Charters in force Dec. 31, 1976, and issued capital
* Includes 13 reorganized banks with capital stock of $1,655,000.
t Includes 13 reorganized banks.
t Represents charters issued, not banks in operation.
NOTE: Premium on sale of common stock
Premium on sale of convertible notes
Total

128



Common

79*
9

$50,090,670
8,974,000

Preferred

$100,000

Subordinated
notes and
debentures

$2,000,000

8,659,236
125,198,150
184,473,526
800,000
8,408,000
608,777
494,588
88

10
4
43t
23
13
1

379,047,711

1,628,000

8,759,236

470,209,900
473,837,900

15,331,000
400,000

1,040,000

26,121,030
22,827,000
200,000

7,550,000
752,000
2,953,114

12,411,577
17,454,000

94
-6
4,747$
4,741$

94,744,607

2,953,114

284,303,104
8,785,389,103
9,069,692,207

5,806,122
14,333,810
20,139,932

44,378,593
1,125,760
54,846,353
418,991,547
2,584,836,844
3,003,828,391

.$169,045,095 (457 cases)
631,173 ( 50 cases)
$169,676,268 (507 cases)

Table B-6
Applications for national bank charters*, approved and rejected, by states, calendar 1976
ALABAMA

Approved

Alexander City
Dothan

Rejected

Feb. 19
Dec. 16

ARKANSAS

First N a t i o n a l B a n k o f S h e r i d a n , S h e r i d a n . . . .

__

Rejected

July 8
July 8
July 8

Greenburgh
Golden Pacific National Bank, Borough of
Manhattan
Union Chelsea National Bank, New York
Niskayuna

Jan. 6
Apr. 27
Dec. 17
Mar. 19

NORTH DAKOTA

COLORADO

Jan. 27
June 7

Citizens National Bank, Colorado Springs
Western National Bank South, Longmont

First National Bank of Crosby, Crosby

FLORIDA

ILLINOIS

Market Place National Bank, Champaign
June 7
Midland National Bank, Chicago
July 8
Chicago
July 8
Chicago
Julv 8
The Guarantee National Bank of Rockford,
Rockford
Oct. 26
St. Charles
Jan. 27
Spring Valley
Mar. 19
INDIANA

Industrial National Bank of East Chicago,
East Chicago
Feb. 19
East Chicago
South Lake National Bank, Lowell
June 7
Apr. 16
Liberty National Bank, Selma

LOUISIANA

Sept

New Orleans
MICHIGAN

of Southfield,

N.A.,

Apr ?6

June 22
June ??

OKLAHOMA

Miami National Bank, Miami
Lakeshore Bank, N.A., Oklahoma City
Tulsa

Mar. 19
Mar. 24
Auq. 9

PENNSYLVANIA

Erie

July ?R

TENNESSEE

First Tennessee National Bank, Chattanooga . . .

Feb 16

TEXAS

First City Bank - Northeast, N.A., Houston
June 7
Mar 1
South Loop National Bank, Houston
Feb. 9
Houston
July 8
Houston
South Texas National Bank of Laredo, LaSept. 30
redo
Nov ?1
Western National Bank, Odessa
First National Bank of Rio Grande City, Rio
Nov. ?7
Grande City
UTAH

First Security Bank of Orem, National Association, Orem
Richfield

Feb. 18
Mar. 19

WASHINGTON

June 30

WEST VIRGINIA

Feb. 19

Dec 14

Hopkinsville

Fl National Bank, Ironton
FT National Bank, Troy

Pioneer National Bank, Yakima

KENTUCKY

Bank

Jan 6

OHIO

Clearwater
Jan. 9
Clermont
Jan. 8
Royal Trust Bank of South Dade, N.A., unincorporated area of Dade County
Dec. 14
__
Jan. 8
Unincorporated area of Dade County
Jan. 6
Delray Beach
__ May 20
Delray Beach
__ Jan. 27
Unincorporated area of Orange County
May 6
Unincorporated area of Orange County
Florida Coast Bank of South Palm Beach
County, N.A., unincorporated area of Palm
Dec. 29
Beach County
Unincorporated area of Palm Beach County . . . .
Jan. 6
Unincorporated area of Pasco County
May ?4
Landmark Bank of Pompano Beach, N.A.,
Mar. 12
Pompano Beach
Unincorporated area of St. Lucie County
Jan. 27
Tallahassee
Aug. 20
Temple Terrace
•
Oct.

Manufacturers
Southfield

Approved

NEW YORK

July 2

CALIFORNIA

Fallbrook
Los Angeles
Los Angeles

NEW JERSEY

City Trust Services, National Association,
June 14
Elizabeth

Unincorporated area of Glen Daniel
Central National Bank, Morgantown
Mountaineer National Bank, Morgantown
Salem
Wheeling

Apr. 16
Aug. 20
Aug. 20
Jan. 6
Dec. 9

WISCONSIN

The First National Bank of Boscobel, Boscobel . Feb. 18
First National Bank of Minocqua and Woodruff,
Dec. 16
Minocqua
Jan. 6
Minocqua
-

MINNESOTA

WYOMING

Granite City National Bank of St. Cloud,
St. Cloud
June 7

Miles

Jan. 6

• Does not include applications for conversion or pursuant to corporate reorganizations.




129

Table B-7
Applications for national bank charters pursuant to corporate reorganizations,
by states, calendar 1976
GEORGIA

Approved

First National Interim Bank of Albany, Albany
Georgia National Bank, Atlanta
First National Interim Bank of Brunswick,
Georgia, Brunswick

Rejected

Dec. 29
Dec. 9

The First Iron River National Bank, Iron River . . . .
Kentwood Bank, N.A., Kentwood
Lapeer Bank, N.A., Lapeer
Cassopolis National Bank, Niles
P. Bank National Association, Trenton

Dec. 29

ILLINOIS

O'Hare National Bank, Chicago
First Freeport Bank, National Association,
Freeport
Maywood National Bank, village of Maywood . . .

Jan. 19

NEW YORK

Mar. 31
Oct. 22

June 5

OHIO

FNB National Bank, Elyria

Withdrawn Feb. 19

MARYLAND

New University National Bank, Rockville

Rejected

Oct. 12
Oct. 19
Nov. 5
Feb. 10
Feb. 2

Chester Bank, N.A., Chester

INDIANA

East Chicago

Approved
MICHIGAN

June 7

MASSACHUSETTS

First Bank of Athol (National Association),
Athol
Sept. 13
Williamstown Bank (National Association)^
Williamstown
Sept. 13
The Yarmouth Bank, National Association,
Yarmouth
Nov. 18

May 21

TEXAS

Heights Bank, National Association, Alamo Heights
New Citizens National Bank of Baytown,
Texas, Baytown
3300 Commerce National Bank, Dallas
Bexar County Commerce Bank National Association, San Antonio

July 15
Dec. 2
Nov. 16
May 21

VIRGINIA

Troutville Bank, N.A., Troutville

June 25

Table B-8
Newly organized national banks, by states, calendar 1976
Charter
No.

Title and location of bank
Total, United States: 65 banks

Total capital
accounts
$101,066,005

ALABAMA

16579 First National Bank of Hamilton, Hamilton
16553 Commonwealth National Bank, Mobile . . .
16547 First Shelby National Bank, Pelham
Total: 3 banks

1,000,000
750,000
1,500,000
3,250,000

CALIFORNIA

16595 Anaheim National Bank, Anaheim
16605 Vista National Bank, Vista
Total: 2 banks

2,000,000
1,250,000
3,250,000

FLORIDA

16589
16616
16583
16561
16590
16574
16549
16531

Barnett Bank of Gainesville, National Association, Gainesville .. .
Century National Bank, Jacksonville
First Commercial National Bank, Lakeland
Second National Bank of Lakeland, Lakeland
Barnett Bank of Orange Park, National Association, Orange Park
Landmark Bank of Pompano Beach, N.A., Pompano Beach
Singer Island National Bank, Riviera Beach
Southeast First National Bank of Sarasota, Sarasota
Total: 8 banks
.
"

16569
16593
16594
16601
16588
16584

Airport National Bank, Bethalto
Columbia National Bank, Columbia
First National Bank of Lake Zurich, Lake Zurich .
First National Bank of Marengo, Marengo
Madison National Bank of Niles, Niles
Butterfield National Bank, Wheaton
Total: 6 banks

1,000,000
845,000
1,200,000
1,000,000
1,250,000

945,000
1,200,000
5,000,000
12,440,000

ILLINOIS

1,000,000
1,000,000
1,500,000
750,000
1,000,000
1,500,000
6,750,000

INDIANA

16582 First National Bank of Paoli, Paoli

1,000,000

KENTUCKY

16581
16611

Continental National Bank of Kentucky, Louisville
First National Bank of Lewis County, Vanceburg .
Total: 2 banks

1,000,000
1,000,000
2,000,000

LOUISIANA

16551

First National Bank of Eunice, Eunice


130


1,000,000

Table B-8—Continued
Newly organized national banks, by states, calendar 1976
Charter
No.

Title and location of bank

Total capital
accounts

MICHIGAN

16612
16554

National Bank of Port Huron, Port Huron
National Bank of Troy, Troy
Total: 2 banks

$2,000,000
3,000,000
5,000,000

MINNESOTA

16599 American National Bank of Brainerd, Brainerd
16559 Suburban National Bank, Eden Prairie
16548
National City Bank of Ridgedale, Village of Minnetonka .
Total: 3 banks

1,000,000
2,000,000
2,000,000
5,000,000

MISSOURI

16592
16570
16546
16603

Commerce Bank of Grandview, National Association, Grandview .
Mark Twain National Bank, Ladue
Christian County National Bank, Ozark
Mehlville National Bank, unincorporated Area of St. Louis County
Total: 4 banks

1,000,000
1,000,000
1,000,000
1,200,000
4,200,000

MONTANA

16580 G l a c i e r N a t i o n a l B a n k , C o l u m b i a F a l l s . . . .

700,000

NEW MEXICO

16566 San Juan National Bank, Farmington
16596 Bank of Las Cruces, National Association, Las Cruces
Total: 2 banks

1,000,000
1,000,000
2,000,000

NEW YORK

16629 U n i o n C h e l s e a N a t i o n a l B a n k , N e w Y o r k . . . .

$1,006,005

NORTH CAROLINA

16560 U n i t e d N a t i o n a l B a n k , F a y e t t e v i l l e . . . .

750,000

OHIO

16607 Fl National Bank, Ironton
16563
16608 National City Bank of Lake County, Mentor
FT National Bank, Troy
Total: 3 banks
16606

OKLAHOMA

1,200,000
2,500,000
2,400,000
6,100,000
1,200,000

Miami National Bank, Miami
16552

TENNESSEE

16,000,000

First Tennessee National Bank, Chattanooga
16557
16625
16544
16575
16598
16572
16624
16602
16585
16564
16558
16600
16555
16618
16578
16614
16626
16550
16617

TEXAS

Prestonwood National Bank, Addison
Anahuac National Bank, Anahuac
National Bank of Commerce, Austin
Western National Bank, Austin
Chemical National Bank, Clute
National Bank of Commerce, Edinburg
Chamizal National Bank, El Paso
Braes Bayou National Bank, Houston
First City Bank - Northeast, N.A., Houston
Parkway National Bank, Houston
South Loop National Bank, Houston
First National Bank of Pearland, Pearland
Canyon Creek National Bank, Richardson
First National Bank of Rio Grande City, Rio Grande City
Plaza National Bank, San Antonio
Hays County National Bank, San Marcos
Central National Bank of Woodway-Hewitt, Waco
First National Bank of West University Place, West University Place
American National Bank, Wichita Falls
Total: 19 banks

2,000,000
1,000,000
2,000,000
1,000,000
600,000
1,000,000
1,000,000
1,000,000
1,250,000
2,500,000
1,120,000
1,000,000
1,000,000
1,500,000
1,250,000
1,000,000
1,200,000
1,000,000
1,000,000
23,420,000

UTAH

16615

First Security Bank of Orem, National Association, Orem

1,000,000

VIRGINIA

16613

Patrick Henry National Bank, Bassett

2,000,000

WISCONSIN

16620 Regency National Exchange Bank, Brookfield
16604 Community National Bank, Oregon
Total: 2 banks



2,000,000
1,000,000
3,000,000

131

Table B-9
National bank charters issued* and mergers consummated pursuant to corporate reorganizations,
by states, calendar 1976
Operating bank
New bank
Resulting bank

Effective
date of
merger

Total
capital
accounts^

Total
assets

$22,445

$391,867

95,918

1,069,068

5,905

83,601

941

11,111

3,866

61,587

2,036

32,612

3,174

51,607

1,307

17,898

3,442

39,200

2,294

35,756

2,426

31,371

3,527

34,591

1,073

12,486

CALIFORNIA

The First National Bank of San Jose, San Jose
F.N. National Bank, San Jose
Charter issued June 14, 1976
June 16 The First National Bank of San Jose, San Jose
DISTRICT OF COLUMBIA

Mar. 31

American
American
Charter
American

Security and Trust Company, Washington
Security and Trust Company, National Association, Washington
issued March 26, 1976
Security and Trust Company, National Association, Washington

ILLINOIS

Dec. 31

First National Bank of Freeport, Freeport
First Freeport Bank, National Association, Freeport
Charter issued December 27, 1976
First National Bank of Freeport, Freeport
MASSACHUSETTS

Williamstown National Bank,
Williamstown Bank (National
Charter issued December
Dec. 31 Williamstown National Bank,

Williamstown
Association), Williamstown
28, 1976
Williamstown

MICHIGAN

Commercial National Bank, Cassopolis
C. National Bank, Cassopolis
Charter issued March 9, 1976
Mar. 11 Commercial National Bank, Cassopolis
The National Bank of Ludington, Ludington
NBL National Bank, Ludington
Charter issued December 1, 1976
Dec. 3 The National Bank of Ludington, Ludington
NEW YORK

Dec 31

The Chester National Bank, Chester
Chester Bank, N.A., Chester
Charter issued December 22, 1976
Chester National Bank Chester
OHIO

The Geauga County National Bank of Chardon, Chardon
G. C. National Bank, Chardon
Charter issued April 28, 1976
Apr. 29 The Geauga County National Bank of Chardon, Chardon
First National Bank of Elyria, Elyria
FNB National Bank, Elyria
Charter issued August 9, 1976
Aug. 16 First National Bank of Elyria, Elyria
TEXAS

Alamo Heights National Bank, Alamo Heights
Heights Bank, National Association, Alamo Heights
Charter issued December 15, 1976
Dec. 31 Alamo Heights National Bank, Alamo Heights
The First National Bank of Henderson, Henderson
South Main & Richardson National Bank, Henderson
Charter issued September 30, 1976
Oct. 1 Thp Fir^t National Bank of Hpndprson Henderson
The First National Bank of New Braunfels, New Braunfels
New Braunfels Commerce Bank National Association, New Braunfels
Charter issued April 15, 1976
Apr. 16 Fir<=;t National Bank of NPW Braunfpls New Braunfels
VIRGINIA

The First National Bank of Troutville, Troutville
Troutville Bank, N.A., Troutville
Charter issued June 25, 1976
July 1 The First National Bank of Troutville Troutville

* Includes only charter issuances related to mergers consummated during 1975. For a full listing of charters issued pursuant to corporate
reorganizations during the year see Table B - 1 1 .
t Includes subordinated notes and debentures, if any.

132



Table B-10
State-chartered banks converted to national banks*, by states, calendar 1976
Charter
no.

Effective
date of
charter

Outstanding
capital stock

Total: 9 banks

Surplus, undivided profits
and reserves

Total assets

$11,574,000

Title and location of bank

$15,682,922

$285,586,959

FLORIDA

16556

City National Bank of Lauderhill, Lauderhill
Conversion of City Bank of Lauderhill . . .
16576 The National Bank of Collier County, Marco Island
Conversion of First Bank of Marco Island
16586 Century National Bank of Palm Beach County, West Palm
Beach
Conversion of Northwood Bank of West Palm Beach . . .
16630 The Exchange National Bank of Lake County, Clermont
Conversion of The Exchange Bank of Clermont

Feb.

23

990,000

1,451,471

34,844,352

Apr.

28

490,000

737,524

17,073,681

June

14

1,260,000

398,000

9,854,779

Dec.

30

400,000

1,288,495

23,644,560

Mar.

26

100,000

517,937

7,449,615

Apr.

1

2,422,000

3,115,426

147,580,834

Mar.

29

2,611,000

1,239,673

11,455,000

Jan.

21

2,101,000

1,452,477

13,163,138

Oct.

20

1,200,000

5,481,919

20,521,000

GEORGIA

16567 The First National Bank of Haralson County, Buchanan
Conversion Haralson County Bank
MICHIGAN

16571

Peoples Bank and Trust, N.A., Trenton
Conversion of Peoples Bank

....

NORTH CAROLINA

16568

Burlington National Bank, Burlington
Conversion of Burlington Bank and Trust Company .. .
OHIO

16545

First Bank National Association, Cleveland
Conversion of First Bank and Trust of Cleveland
VIRGINIA

16610 Virginia National Bank/Richmond, Richmond
Conversion of Virginia Trust Company

* Does not include one bank that converted to national status through a merger pursuant to corporate reorganization. That bank was American
Security and Trust Company, Washington, D.C., which merged with American Security and Trust Company, National Association, Washington,
D.C., charter number 16565, formed for the purpose of effecting a corporate reorganization. For complete information see Table B-9.

Table B-11
National bank charters issued pursuant to corporate reorganizations, by states, calendar 1976
Charter
no.

Title and location of bank

Date of
issuance

Total: 14 banks
CALIFORNIA

2158 F. N. National Bank, San Jose

June

14

Mar.

26

Dec.
Dec.

27
27

Dec.

28

DISTRICT OF COLUMBIA

16565 American Security and Trust Company, National Association, Washington
ILLINOIS

13695 First Freeport Bank, National Association, Freeport
3548 I N B National Bank, Springfield
Total: 2 banks
MASSACHUSETTS

3092 Williamstown Bank (National Association), Williamstown
MICHIGAN

16371 C. National Bank, Cassopolis
14016 N B L National Bank, Ludington

Mar.
Dec.

Total: 2 banks
1349

NEW YORK

Chester Bank, N.A., Chester
OHIO

14879 The G. C. National Bank, Chardon
14968 F N B National Bank, Elyria
Total: 2 banks



Dec.

22

Apr.
Aug.

28
9

133

Table B—11— Continued
National bank charters issued pursuant to corporate reorganizations, by states, calendar 1976
Charter
no.

Date of
issuance

Title and location of bank
TEXAS

Dec.
Sept.
Apr.

15
30
15

June

15514 Heights Bank, National Association, Alamo Heights
6176 South Main & Richardson National Bank, Henderson
4295 New Braunfels Commerce Bank National Association, New Braunfels

25

Total: 3 banks
VIRGINIA

9764 Troutville Bank, N.A., Troutville

Table B-12
National banks reported in voluntary liquidation, by states, calendar 1976
(Dollar amount in thousands)

Title and location of bank

Dates of
liquidations

Total: 14 National banks

Total capital
accounts of
liquidated
banks*

$53,068

FLORIDA

Palmer First National Bank and Trust Company of Sarasota (13352), Sarasota, absorbed by Southeast First National
Bank of Sarasota (16531), Sarasota
Jan.

15

1,000

GEORGIA

Mercantile National Bank (15789), Atlanta, absorbed by The National Bank of Georgia (15541), Atlanta

851

July

MISSOURI

Deposit Insurance National Bank of Kansas City (99001), Kansas City, absorbed by Laurel Bank of Kansas City,
Kansas City
Dec.

18

0

Dec.
July

31

272

20

938

June
Sept.
Sept.

30
30
30

400
4,389
7,386

June

18

3,084

Feb.

16

26,273

Jan.

30

551

Sept.
Aug.

17
24

1,448
4,341

Aug.

24

2,135

NEW YORK

Chelsea National Bank (15428), New York, absorbed by Union Chelsea National Bank (16629), New York
The Red Creek National Bank (10781), Red Creek, absorbed by The Oneida National Bank and Trust Company of
Central New York (1392), Utica
OHIO

The First National Bank of Amesville (7235), Amesville, absorbed by The Glouster Community Bank, Glouster..
The First National Bank of Ironton (98), Ironton, absorbed by F I National Bank (16607), Ironton
The First National Bank & Trust Company (3825), Troy, absorbed by F T National Bank (16608), Troy
Community National Bank of Warrensville Heights (15561), Warrensville Heights, absorbed by First Bank National
Association (16545), Cleveland
TENNESSEE

The Hamilton National Bank of Chattanooga, (7848), Chattanooga, absorbed by First" Tennessee National Bank
(16522), Chattanooga
VERMONT

The Enosburg Falls National Bank (13986), Enosburg Falls, absorbed by Sterling Trust Company, Johnson
WASHINGTON

The First National Bank of Redmond (12121), Redmond, absorbed by Seattle Trust and Savings Bank, Seattle .
First National Bank in Port Angeles (6074), Port Angeles, absorbed by Seattle - First National Bank (11280), Seattle
The First American National Bank of Port Townsend (13351), Port Townsend, absorbed by Seattle - First National
Bank, (11280), Seattle
' Includes subordinated notes and debentures, if any.

134



Table B-13
National banks merged or consolidated with state banks, by states, calendar 1976
(Dollar amount in thousands)

Title and location of bank

Total capital
accounts of
national
banks*

Effective
date

Total: 13 banks

$101,453

MAINE

Casco Northern National Bank (16382), Augusta, merged into Casco Bank & Trust Company, Portland, under title
"Casco Bank & Trust Company"
June

25

1,088

16

1,794

6

4,990

29

978

July

30

10,081

Jan.

1

12,952

Jan.

1

14,106

Oct.

29

9,928

Jan.

1

21,139

Jan.

1

16,278

30

3,503

23

1,161

MASSACHUSETTS

The Park National Bank of Holyoke (4703), Holyoke, merged into Western Bank and Trust Company, West
July
Springfield, under title "Park West Bank and Trust Company"
The Union Market National Bank of Watertown (2108), Watertown, merged into BayBank Newton-Waltham Trust
Company, Waltham, under title "BayBank Newton-Waltham Trust Company"
July
NEW JERSEY

Suburban National/A United Jersey Bank (16129), South Plainfield, merged into United Jersey Bank/Central,
Oct.
Elizabeth, under the title "United Jersey Bank/Central"
NEW YORK

Manufacturers Hanover Trust Company/Suffolk, National Association (10029), Bay Shore, merged into Manufacturers Hanover Trust Company, New York, under title "Manufacturers Hanover Trust Company"
Marine Midland Bank-Chautauqua, National Association (8453), Jamestown, merged into Marine Midland Bank,
Buffalo, under title "Marine Midland Bank"
Marine Midland Tinker National Bank (11511), Melville, merged into Marine Midland Bank, Buffalo, under title
"Marine Midland Bank"
Bankers Trust of Suffolk, National Association (12788), Patchogue, merged into Bankers Trust Company, New York,
under title "Bankers Trust Company"
Marine Midland Bank of Southeastern New York, N.A. (465), Poughkeepsie, merged into Marine Midland Bank, Buffalo, under title "Marine Midland Bank"
Marine Midland Bank-Eastern, National Association (721), Troy, merged into Marine Midland Bank, Buffalo, under
title "Marine Midland Bank"
PENNSYLVANIA

The First National Bank of Lewistown (1579), Lewistown, merged into Central Counties Bank, State College, under
title "Central Counties Bank"
Sept.
The First National Bankof Shoemakersville (11841), Shoemakersville, merged into American Bank and Trust Co. of
Pa., Reading, under title "American Bank and Trust Co. of Pa."
Apr.
VIRGINIA

Richmond National Bank (15027), Richmond, merged into First Virginia Bank of Colonial Heights, Colonial Heights,
under title "First Virginia - Colonial"
Nov.

3,455

* Includes subordinated notes and debentures, if any.




135

Table B-14
National banks converted into state banks, by states, calendar 1976
(Dollar amounts In thousands)
Charter
no.

Title and location of bank
Total: 24 banks

Total capital
accounts of
national
banks*

Effective
date

".

$109,018

ALABAMA

11635 Opelika National Bank, Opelika, converted into The Bank of East Alabama

Sept.

2,765

ARKANSAS

14973 First National Bank of Dermott, Dermott, converted into First State Bank of Dermott
14606 First National Bank of Jonesboro, Jonesboro, converted into First Bank & Trust of Jonesboro

Oct.
Dec.

15
22

805
1,883

CALIFORNIA

15958 Gavilian National Bank, Gilroy, converted into Gavilan Bank

Apr.

3,327

ILLINOIS

10582 The First National Bank of Marine, Marine, converted into First Bank of Marine
14595 Wheaton National Bank, Wheaton, converted into Bank of Wheaton

Nov.
June

30
30

396
4,496

Apr.

14

2,093

July
Sept.

31
2

1,101
2,033

16

8,967

30

2,527

29

5,402

Oct.

29

874

Sept.

16

3,673

Aug.

30

863

Sept.

7

13,086

Dec.
Mar.

22
5

14,982
2,273

Oct.

29

30,359

June
Nov.
Feb.
Sept.
Jan.

9
12
2
29
20

1,302
929
3,147
1,323
412

INDIANA

111 The First National Bank of Madison, Madison, converted into First Bank of Madison
KANSAS

3066 The First National Bank of Concordia, Concordia, converted into First Bank and Trust
14978 East Side Bank and Trust, National Association, Wichita, converted into East Side Bank and Trust
MAINE

2260 Northeast Bank, N. A. of Lewiston and Auburn, Lewiston, converted Northeast Bank of Lewiston and Auburn Mar.
MICHIGAN

8496 Northern Michigan Bank, N.A., Escanaba, converted into Northern Michigan Bank
July
14582 First National Bank & Trust Company of Midland, Midland, converted into First Midland Bank & Trust Company
Apr.
MINNESOTA

10740 First National Bank of Lakeville, Lakeville, converted into First Lakeville State Bank
MISSOURI

8011 Plaza First National Bank of West Port, St. Louis County, converted into Plaza Bank of West Port
NEW HAMPSHIRE

1242 Monadnock National Bank, Jaffrey, converted into Monadnock Bank
NEW YORK

10087 Long Island National Bank, Hicksville, converted into Long Island Bank
PENNSYLVANIA

870 Marine National Bank, Meadville, converted into Marine Bank
4984
The First National Bank of Troy, Troy, converted into First Bank of Troy
TENNESSEE

13539 United American Bank, N.A., Knoxville, converted into United American Bank in Knoxville
TEXAS

15082
16213
14811
15827
12691

Western National Bank of Denton, Denton, converted into Western State Bank
Heritage National Bank, Houston, converted into Heritage Bank
Sabine National Bank of Port Arthur, Port Arthur, converted into Sabine Bank
First National Bank of Tomball, Tomball, converted into First Bank & Trust
Fannin National Bank in Windom, Windom, converted into The Fannin Bank

* Includes subordinated notes and debentures, if any.

136



Table B-15
Purchases of state banks by national banks, by states, calendar 1976
(Dollar amounts in thousands)
Total capital
accounts of
state banks*
$44,422

Effective
date

Title and location of bank
Total: 17 banks
ARKANSAS

Mar.

9

143

Landmark Bank of Pompano Beach, N.A. (16574), Pompano Beach, purchased The Security State Bank of Pompano Beach, Pompano Beach
Apr.

19

388

8

4,471

The First National Bank of Huntsville (8952), Huntsville, purchased The Valley Bank, Hindsville
FLORIDA

GEORGIA

T h e N a t i o n a l B a n k o f G e o r g i a ( 1 5 5 4 1 ) , A t l a n t a , p u r c h a s e d T h e H a m i l t o n B a n k a n d T r u s t C o m p a n y , A t l a n t a . . . . Oct.
NEW JERSEY

New Jersey Bank, National Association (15709), Clifton, purchased First State Bank of Hudson County, Jersey City
First Peoples National Bank of New Jersey (399), Haddon Township, purchased The Provident Bank of New Jersey,
Willingboro
First National State Bank of New Jersey (1452), Newark, purchased The Bank of Bloomfield, Bloomfield
Citizens First National Bank of New Jersey (11759), Ridgewood, purchased The State Bank of North Jersey, Pine
Brook (Montville Township)
New Jersey National Bank (1327), Trenton, purchased First State Bank, Toms River (Dover Township)

June

15

Dec.
Jan.

31
10

1,849
2,490

Dec.
Dec.

28
17

4,142
9,799

Mar.
Apr.

31
10

5,126
651

First City Bank - Northeast, N.A. (16585), Houston, purchased Northeast Bank of Houston, Houston
June
South Loop National Bank (16558), Houston, purchased South Texas Bank, Houston
Mar.
First National Bank of Rio Grande City (16618), Rio Grande City, purchased First State Bank & Trust Company, Rio
Grande City
Nov.

1

558
666

29

1,103

20
24
24
4

1,455
1,314
1,749
8,518

OHIO

Euclid National Bank (15573), Euclid, purchased The Continental Bank, Cleveland
Greenville National Bank (13944), Greenville, purchased The Citizens Bank Company, Ansonia
TEXAS

WASHINGTON

Puget Sound National Bank (12292), Tacoma, purchased Continental Bank, Burien
Seattle - First National Bank (11280), Seattle, purchased Bank of Sequim, Sequim
and Forks State Bank, Forks
Old National Bank of Washington (4668), Spokane, purchased Bank of the West, Bellevue ..

Mar.
Aug.
Aug.
Mar.

Table B-16
Consolidations* of national banks, or national and state banks, by states, calendar 1976
(Dollar amounts in thousands)
Effective
date

Consolidating banks
Resulting bank
Totaf: 1 consolidation

Outstanding
capital
stock

Surplus

Undivided
profits and
reserves

Total assets

SOUTH DAKOTA

Feb.

17

United National Bank (15639), Rapid City
United Bank & Trust, Sioux Falls
United National Bank (15639), Rapid City




$1,500
500
2,300

$1,500
1,000
2,500

$2,490
628
2,819

$95,559
32,888
128,446

137

Table B-17
Mergers* of national banks, or national and state banks, by states, calendar 1976
(Dollar amounts in thousands)
Effective
date

Merging banks
Resulting banks
Total: 36 merger actions

Outstanding
capital
stock

Surplus

Undivided
profits and
reserves

Total assets

ALABAMA

Apr.

30

The Citizens Bank of Georgiana, Georgiana
The First National Bank of Greenville, Greenville (5572) . . . .
The First National Bank of Greenville, Greenville (5572)

$75
250
300

$150
500
675

$349
1,723
2,072

$7,858
35,702
43,218

256
5,083
5,083
1,209
1,644
2,076

256
15,000
15,000
983
1,801
3,561

295
9,129
9,129
0
566
0

14,434
344,161
356,693
24,869
54,779
79,907

400
4,800
5,900

600
7,200
7,800

1,433
6,286
7,019

21,295
231,241
252,081

60
600
720

250
1,400
1,650

119
881
951

4,939
40,689
47,104

400
5,400
5,750

300
4,500
4,850

18
1,619
1,549

10,100
180,348
193,263

50
1,500
1,560

0
2,500
2,500

74
1,781
1,845

5,399
76,252
81,651

25

325

140

2,528

1,477

3,023

2,714

90,032

1,530

3,320

2,854

92,539

330
700
700

330
2,740
2,740

262
465
465

11,810
36,273
47,162

400

625

0

5,546

1,012

2,800

580

68,220

1,213
375
8,594
8,594

3,625
1,725
43,511
45,806

562
664
1,384
1,384

73,766
27,839
810,858
838,697

1,718

2,300

1,950

83,022

3,650

3,650

1,479

124,172

5,368

5,950

3,429

207,195

2,500

2,050

1,201

93,182

2,165
5,000
800
622
1,022
600
4,250
4,625

2,500
5,000
800
2,063
3,263
600
4,250
4,625

3,947
4,362
483
1,014
1,497
391
13,878
14,720

93,500
186,682
15,753
37,263
53,016
10,079
242,671
252,535

CONNECTICUT

Aug.
Dec.

The North Haven National Bank, North Haven (15439)
The First New Haven National Bank, New Haven (2)
31 The First New Haven National Bank, New Haven (2)
Laurel Bank and Trust Company, Meriden
American National Bank, Hamden (15496)
1 American National Bank, Hamden (15496)
INDIANA

Oct.

The Lamasco Bank, Evansville
The Citizens National Bank of Evensville, Evansville (2188) .
1 The Citizens National Bank of Evansville, Evansville (2188) .

Apr.

Hiseville Deposit Bank, Hiseville
The New Farmers National Bank of Glasgow, Glasgow (13651)
1 The New Farmers National Bank of Glasgow, Glasgow (13651)

Oct.

Central National Bank, Waterville (15954)
Canal National Bank, Portland (941)
1 Canal National Bank, Portland (941)

KENTUCKY

MAINE

MARYLAND

Mar.

Dec.

The Millington Bank of Maryland, Millington
The Farmers National Bank of Annapolis, Annapolis (1244).
5 Farmers National Bank of Maryland, Annapolis (1244)
The First National Bank of Mount Savage, Mount Savage
(6144)
The First National Bank and Trust Company of Western Maryland, Cumberland (381)
The First National Bank and Trust Company of Western Mary1
land, Cumberland (381)
MASSACHUSETTS

Feb.

3

Heritage Bank and Trust Company, Westfield
Old Colony Bank of Hampden County, N.A., Holyoke (1939)
Old Colony Bank of Hampden County, N.A., Holyoke (1939)
MISSISSIPPI

Clinton National Bank, Clinton (16257)
Peoples Bank of Mississippi, National Association, Union

(16194)
Mar.
Dec.

17

Peoples Bank of Mississippi, National Association, Union

31

Columbia Bank, Columbia
First National Bank of Jackson, Jackson (10523)
First National Bank of Jackson, Jackson (10523)

(16194)

NEW JERSEY

Somerset Hills & County National Bank, Basking Ridge (6960)
First National State Bank/Mechanics, Burlington Township

(1222)
Feb.

6

First National State Bank of West Jersey, Burlington Township

(1222)
First National State Bank of the Jersey Coast, Spring Lake

(13898)
The Edison Bank, National Association, South Plainfield

(15845)
Mar.
May
June

26

Edison/First National State Bank, South Plainfield (15845) ..
Independent National Bank, Willingboro (16092)
The First National Bank of Stone Harbor, Stone Harbor (12978)
3 Independent National Bank, Stone Harbor (12978)
Bank of Wayne, National Association, Wayne (15934)
Valley National Bankt, Passaic (15790)
11 Valley National Bank, Passaic (15790)

See footnotes at end of table.

138



Table B-17—Continued
Mergers* of national banks, or national and state banks, by states, calendar 1976
(Dollar amounts in thousands)
Effective
date

Merging banks
Resulting bank's

Outstanding
capital
stock

Surplus

Undivided
profits and
reserves

Total assets

JEW JERSEY—Continued

June
Oct.

Nov.
Dec.

Beach Haven National Bank and Trust Company, Beach
Haven (11658)
'
The Bank of New Jersey, N.A., Moorestown (16397)
30 The Bank of New Jersey, N.A., Moorestown (16397)
Plaza National Bank, Secaucus (15228)
New Jersey Bank (National Association), Clifton (15709) . . .
18 New Jersey Bank (National Association), Clifton (15709) . . .
United Jersey Bank/City National, Vineland (14673)
The Cumberland National Bank of Bridgeton, Bridgeton
(1346)
United Jersey/Cumberland National, Bridgeton (1346)
Midlantic National Bank/West, Morristown (15360)
Midlantic National Bank, Newark (1316)
31 Midlantic National Bank, Newark (1316)

$1,594
400
1,994
532
9,693
9,693
700

$1,606
400
2,006
1,278
19,444
21,254
820

$1,881
154
2,035
233
11,960
12,193
0

$ 68,562
6,728
75,290
28,432
825,071
853,503
29,098

500
1,200
1,200
16,726
16,726

2,500
3,320
1,065
39,277
41,542

1,421
1,319
0
32,501
32,333

54,820
83,918
40,219
1,000,472
1,040,691

1,400

1,100

283

36,362

1,400

3,600

1,160

34,903

1,400
1,400

3,600
1,100

658
85

•41,321
46,650

1,400
1,400

1,100
1,100

85
854

159,236
47,012

1,400
750,691
750,691
800

1,100
880,754
880,754
800

296
1,085,643
1,085,139
0

33,101
26,732,196
26,812,309
27,867

857

526

0

28,546

800
800

800
800

0
0

17,993
12,647

800

800

161

7,317

950

210

2

25,641

1,400

611

0

29,458

250

1,010

873

17,974

536,270
536,976
6,000

708,995
709,626
1,500

582,701
582,701
1,828

25,409,954
25,489,462
35,471

6,342

10,500

19,387

524,974

6,342

10,500

19,490

552,015

896
1,305
2,089
1,100

2,354
3,299
5,765
1,107

3,247
5,942
9,198
109

69,482
125,452
195,456
11,512

4,227

5,053

5,225

240,995

4,887

6,600

5,334

252,507

575
29,245
29,245
250
12,837
12,837

1,325
95,235
95,235
250
23,163
23,163

1,012
63,647
63,126
288
23,137
23,137

30,546
2,569,103
2,592,844
8,999
872,964
881,175

NEW YORK

Citibank (Eastern), National Association, Castleton-onHudson (5816)
Citibank (Central), National Association, Oriskany Falls

(16089)
Citibank (Mid-Western), National Association, Honeoye Falls

(15976)
Jan.

Citibank (Western), National Association, Buffalo (10258) ..
Citibank (New York State), National Association, Buffalo
(10258)
Citibank (Suffolk), National Association, Islip (15917)
Citibank (Mid-Hudson), National Association, Woodbury

(9990)
Jan.

First National City Bank, New York (1461)
First National City Bank, New York (1461)
Chase Manhattan Bank of Long Island, N.A., Melville (15922)
Chase Manhattan Bank of the Mid-Hudson, N.A., Saugerties
(1040)
,
Chase Manhattan Bank of Central New York, Syracuse

(16047)
Chase Manhattan Bank of Eastern New York, Albany (16203)
Chase Manhattan Bank of the Southern Tier, Binghamton
(16379)
Chase Manhattan Bank of Greater Rochester, N.A., Rochester
(16050)
Chase Manhattan Bank of Western New York, N.A., Buffalo

(13952)

May

Nov.

Chase Manhattan Bank of Northern New York, N.A., Canton
(3696)
Chase Manhattan Bank, National Association, New York
(2370)
21 Chase Manhattan Bank, N.A., New York (2370)
Ogdensburg Trust Company, Ogdensburg
Oneida National Bank and Trust Company of Central New
York, Utica (1392)
19 Oneida National Bank and Trust Company of Central New
York, Utica (1392)
NORTH CAROLINA

June

July

Union Trust Company of Shelby, Shelby
The Citizens National Bank in Gastonia, Gastonia (13779)..
1 Independence National Bank, Gastonia (13779)
Hanover Bank, Wilmington
The Planters National Bank and Trust Company, Rocky Mount
(10608)
12 The Planters National Bank and Trust Company, Rocky Mount

(10608)
OHIO

Jan.
May

The Bank of Cleveland, Cleveland
National City Bank, Cleveland (786)
National City Bank, Clevelrnd (786)
The Pickerington Bank, Pickerington
The Huntington National Bank of Columbus, Columbus (7745)
The Huntington National Bank of Columbus, Columbus (7745)

See footnotes at end of table.




139

Table B-17—Continued
Mergers* of national banks, or national and state banks, by states, calendar 1976
(Dollar amounts in thousands)
Outstanding
capital
stock

Merging banks
Resulting banks

Effective
date

Surplus

Undivided
profits and
reserves

Total assets

PENNSYLVANIA

Mar.
Sept.
Sept.

$420
3,871
4,396
75
2,188
2,282
100
1,380
1,840

$830
20,000
20,830
325
16,000
16,500
1,000
1,700
3,770

$895
11,345
12,135
420
5,394
5,621
683
2,862
1,321

$28,317
512,774
541,091
7,476
274,767
282,244
21,614
59,518
81,244

100
150
400

125
200
125

76
118
144

4,665
5,190
9,855

150
800
800

The Kutztown National Bank, Kutztown (5102)
The First National Bank of Allentown, Allentown (373)
31 The First National Bank of Allentown. Allentown (373)
The First National Bank of Coalport, Coalport (6887)
United States National Bank in Johnstown, Johnstown M 3781)
15 United States National Bank in Johnstown, Johnstown (13781)
The First National Bank of Dickson City, Dickson City (13937)
First National Bank, Carbondale (664)
20 First National Bank, Carbondale (664)

150
800
800

350
1,340
1,340

9,374
40,856
48,691

SOUTH DAKOTA

Mar.

First State Bank, Lake Norden
United National Bank, Castlewood (16470)
United National Bank, Castlewood (16470)

15

VERMONT

The Merchants National Bank of St. Johnsbury, St. Johnsbury

(2295)
June

First National Bank of Springfield, Springfield (122)
30 First National Bank of Springfield, Springfield (122)
VIRGINIA

Jan.

31

Jan.

31

Mar.

15

Nov.

12

294
2,700
6,000*
1,600
2,700
6,000*
779
20,552
20,552
1,485
20,552
20,552

Bank of Virginia - Lynchburg, Lynchburg
Bank of Virginia, N.A., Vinton (16485)
Bank of Virginia, N.A., Vinton (16485)
Bank of Virginia - Danville, Danville
Bank of Virginia, N.A., Vinton (16485)
Bank of Virginia, N.A., Vinton (16485)
North American Bank and Trust, Leesburg
Virginia National Bank, Norfolk (9885)
Virginia National Bank, Norfolk (9885)
Fairfax County National Bank, Seven Corners (14824)
Virginia National Bank, Norfolk (9885)
Virginia National Bank, Norfolk (9885)

457
1,770
2,000*
500
1,770
2,000*
451
31,803
31,803
1,400
31,803
31,803

11,782
90,436
145,631*
43,413
90,436
145,631*
8,783
1,745,416
1,753,137
62,491
1,804,327
1,862,225

19
1,750
2,170*
1,081
1,750
2,170*
0
46,616
46,616
1,258
49,251
53,346

* Excludes mergers involving only one operating bank, effected pursuant to corporate reorganizations,
t Formerly Bank of Passaic and Clifton, National Association.
* Information for the resulting bank is after the two actions involving Bank of Virginia, N.A., that day.

Table B-18
Mergers resulting in National banks, by assets of acquiring and acquired banks, 1960-1976"
Assets of acquired bank
Assets of acquiring banks1~
Under $10 million
$10 to 24.9 million . . .
$25 to 49.9 million . ..
$50 to 99.9 million . . .
$100 million and over
Total

Acquired
banks
1960-1976

Under $10
million

$10 to 24.9
million

99
153
176
199
633

99
135
114
117
242

0
18
47
49
221

1,260*

707

335

$25 to 49.9
million

$50 to 99.9
million

$100 million
and over

29
93

0
0
0
4
34

0
0
0
0
43

137

38

43

0
0
15

* Includes all forms of acquisitions involving two or more banks from May 13, 1960 through December 31, 1975.
t In each transaction, the bank with the larger total assets was considered to be the acquiring bank.
*Comprises 1,202 transactions, 27 involving three banks, nine involving four banks, two involving five banks and one involving nine DanKs.

140



Table B-19
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
Total,
Total, U.S. and
other areas United States
Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell.
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital




Alabama

Arkansas

Arizona

Alaska

4,749

4,747

98

$75,491,155
47,410,419

$75,488,250
47,409,324
16,504,630
56,888,987
2,779,940
923,512
3,824,936
21,700,362
287,136,830

$787,485
510,480
361,120
1,052,790
22,531
9,323
27,146
213,330
3,657,623

$166,615
47,627
51,083
197,241
961
2,755
0
63,250
578,557

75

44,847
3,612,776
23,294

6,477
572,080

3,480,114

3,561,395
283,575,435
3,480,114

9,577,520
1,354,891
1,609,514
6,215,868
17,367,303

9,577,338
1,353,993
1,609,514
6,215,868
17,366,738

141,572
4,480
221
20,421
87,234

4,124
39,391
2,078
0
100
15,908

548,725,843

548,698,941

6,874,203

1,163,213

136,751,059
231,704,992
3,308,326
36,011,521
5,610,618
25,176,432
5,714,568

136,747,862
231,688,090
3,308,305
36,007,454
5,610,618
25,175,688
5,712,987

1,889,723
3,113,678
28,531
622,693
0
203,170
40,525

444,277,516

444,251,004

175,576,220
268,701,296
42,719,423
2,464,780
446,214
6,257,308
10,446,027

$574,690
502,096
137,984
462,516
9,410
6,590
6,820

California
56

$543,701
280,940
169,333
510,934
15,015
4,577
21,456
225,972
2,005,487

$11,161,032

23,973
3,112,611
3,031

18,913
1,986,574

471,584
41,851,853

4,382

1,403,185

146,325
5,838
0
8,497
68,908

1,392,527

5,255,326

87,648
4,474
20
1,536
55,422
3,911,984

78,327,858

491,382
331,242
20,926
152,139
0
3,503
22,688

1,463,800
2,850,197
23,472
166,577
79
31,052
64,714

1,133,287
1,662,893
14,426
311,359
0
202,021
20,298

18,271,281
36,760,213
441,042
4,289,934
1,499,059
2,128,012
837,332

5,898,320

1,021,880

4,599,891

3,344,284

64,226,873

175,570,607
268,680,397
42,719,423
2,464,780
446,214
6,257,308
10,445,509

2,337,128
3,561,192
299,178
7,484
2,375
20,421
95,705

594,842
427,038
50,002
1,145
213
100
9,814

1,647,089
2,952,802
258,468
599

506,611,268

506,584,238

6,323,483

1,083,154

8,497
41,619
4,909,795

1,464,063
1,880,221
210,194
3,544
87
1,535
47,310
3,606,954

21,426,566
42,800,307
5,970,291
297,904
88,703
1,276,735
1,713,535
73,574,041

2,610,607

2,610,607

23,996

740

77,668

24,105

405,178

19,437
8,960,644
15,222,322
14,231,837
1,069,728
39,503,968

19,437
8,959,764
15,221,522
14,233,645
1,069,728
39,504,096

0
114,069
211,732
192,509
8,414

0
23,259
34,373
19,520

0
40,910
99,776
119,517
7,660

0
66,430
84,885
116,133
13,477

0
844,955
1,840,585
1,613,043
50,056

526,724

79,319

267,863

280,925

4,348,639

548,725,843

548,698,941

6,874,203

1,163,213

5,255,326

3,911,984

78,327,858

16,506,342

56,893,632
2,779,940
923,562
3,824,936
21,701,787
287,151,419
3,562,559
283,588,860

2,167

210,010

3,136,584

721

6,392,580
2,343,890
4,209,926
274,486
94,980
344,115
3,530,808
42,323,437

71,180

484,281
1,275,593
3,497,422

Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
Colorado
Number of banks
Assets
Cash and due from banks
U S Treasurv seruritip^
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds notes and debentures
Federal Reserve stock and coroorate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises ..
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock.
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital . . . .




Connecticut

District of
Columbia

Delaware

Florida

Hawaii

Georgia
65

2

132

24

5

15

$1,015,970
444,465
151,753
670,998
7,382
9,318
17,306
244,736
3,509,173

$721,183
209,221
99,942
385,032
92,284
8,666
13,781
46,230
2,045,190

$6,433
8,340
2,966
3,193
384
92
0
2,200
38,580

$603,118
541,281
95,652
474,203
18,724
8,722
0
211,590
2,184,061

$2,351,537
2,276,844
834,033
2,105,756
92,797
29,713
40,064
561,070
7,352,172

$1,331,744
399,626
131,947
616,786
16,851
52,393
12,560
242,228
4,146,204

$19,862
20,654
8,781
2,757
0
214
0
2,700
94,767

34,586
3,474,587

20,054
2,025,136

175
38,405

28,887
2,155,174

93,415
7,258,757

56,495
4,089,709

480
94,287

27 149

26 771

0

25,432

33,165

36,574

0

132,126
22 285
2,904
15 025
90,965
6,326,969

95,281
3,319
9
9,917
171,233
3,908,005

1,083
69
0
0
432
63,597

57,528
1,239
0
5,255
76,274

370,759
95,781
3,642
12,222
271,542

238,098
118,195
77,522
55,700
142,340

2,094
5
0
162
1,647

4,274,192

16 337 682

7 562 273

153,163

1,866,471
2,437,052
41,986
529,206
0
373,905
60,085

1,238,053
1,563,983
31,635
254,996
228
272,582
31,992

17,111
38,078
939
1,395
0
0
342

1,679,792
1,528,144
80,345
2,382
169,553
66,789
72,080

4,697,842
7,303,278
56,486
1,293,716
4,534
574,085
174,344

2,275,851
2,290,397
45,545
569,568
15,026
556,505
41,693

42,420
64,098
548
28,138
0
2,555
2,298

5,308,705

3,393,469 ^_

57,865

3,599,085

14,104,285

5,794,585

140,057

2,411,027
2,897,678

1,636,505
1,756,964

18,544
39,321

2,036,271
1,562,814

5,780,430
8,323,855

3,002,684
2,791,901

48,316
91,741

403,210
52,029
15,054
15,025
67,087

194,079
4,575
546
9,917
32,337

0
200
0
0
351

210,390
29,965
335
5,255
40,318

663,811
12,559
6,281
12,227
149,660

655,546
197,484
23,602
56,074
198,320

0
1,200
0
162
2,257

5,861,110

3,634,923

58,416

3,885,348

14,948,823

6,925,611

143,676

30,479

11,388

200

13,532

37,347

58,838

1,500

0
95,984
155,008
174 850
9,538
435,380

0
62,681
130,689
64,448
3,876
261,694

0
1,550
1,486
1 917
28
4,981

430
62,851
134,690
171,773
5,568
375,312

1,001
355,324
539,485
423,670
32,032
1,351,512

0
143,058
209,408
157,600
67,758
577,824

0
3,797
2,806
1,184
200
7,987

6,326,969

3,908,005

63,597

4,274,192

16,337,682

7,562,273

153,163

303

Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
Idaho
Number of banks
Assets
Cash and due from banks
U S Treasury securities
•
•
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds notes and debentures
Federal Reserve stock and corporate stock
.
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)

Indiana

Iowa

Kansas

Kentucky

Louisiana

6

.

Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time ancf savings deposits of individuals, partnerships and corporations
Deposits of U S government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
. .
.
.
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock .
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital . . . .



Illinois
424

120

100

$256,310
178,093
61,806
283,997
2,305
3,795
0
50,747
1,473,058

$5,394,575
4,608,368
1,811,815
5,114,004
452,664
79,120
391,708
1,352,456
26,959,698

$1,272,062
1,512,700
586,006
1,472,559
110,069
16,255
57,316
742,879
6,020,963

$625,678
366,525
210,481
561,678
21,625
4,513
6,042
144,284
2,314,767

$632,318
482,494
254,708
647,842
10,278
7,764
30,930
352,210
2,356,541

$486,282
476,673
137,157
580,471
6,285
6,132
6,148
287,035
2,422,006

$915,620
1,107,855
205,369
917,031
10,777
12,877
3,111
501,850
3,354,334

12,831
1,460,227

390,898
26,568,800

74,936
5,946,027

20,955
2,293,812

12,146

69,913

136,688

1,405

25,192
2,331,349
3,650

24,740
2,397,266
54,979

41,412
3,312,922
26,939

40,112
1,777
109
0
32,254

591,388
141,665
156,163
453,529
1,446,863

206,604
27,100
7,547
43,384
421,732

65,768
4,101
1,543
293
68,551

116,301
2,943
1,353
0
48,720

87,405
7,626
69
4,097
102,642

148,397
11,138
1,943
4,476
122,091

2 383,678

48,633,031

12,558,928

4,376,299

4 922 860

4 640 267

7 302 396

639,905
1,219,892
15,140
215,214
0
4,308
19,576

10,187,711
20,294,029
227,509
2,201,629
1,278,890
2,574,326
396,045

2,715,183
5,610,498
58,009
1,371,539
1,446
313,729
96,098

1,026,906
2,163,852
19,543
242,135
0
306,050
27.608

1,266,239
2,002,492
20,024
664,960
0
216,798
26,650

1,336,071
2,126,395
39,658
297,175
0
199,746
28,528

2,068,351
2,677,761
27,182
897,989
7,816
332,004
59,442

2,114,035

37,160,139

10,166,502

3,786,094

4,197,163

4,027,573

6,070,545

732,035
1,382,000

12,793,044
24,367,095

76,356
4,295
190
0
27,824

6,610,035
55,476
18,158
461,235
898,551

3,712,232
6,454,270
1,145,304
94,162
9,703
43,384
209,235

1,404,382
2,381,712
221,925
4,404
742
293
51,348

1,724,791
2,472,372
249,281
14,509
356
0
38,181

1,680,315
2,347,258
183,496
17,450
2,294
4,097
51,228

2,624,700
3,445,845
530,010
13,240
22,382
4,476
77,110

2,222,700

45,203,594

11,668,290

4,064,806

4,499,490

4,286,138

6,717,763

9,340

84,037

5,679

20,949

19,640

5,965

18,139

0
35,943
88,869
22,735
4,091

1,665
754,731
1,472,397
1,039,185
77,422

0
186,442
348,137
334,040
16,340

0
59,904
81,845
133,429
15,366

0
92,599
150,757
152,906
7,468

0
72,284
120,683
142,255
12,942

1,800
101,598
220,851
219,739
22,506

151,638

3,345,400

884,959

290,544

403,730

348,164

566,494

2,383,678

48,633,031

12,558,928

4,376,299

4,922,860

4,640,267

7,302,396

171

81

54

Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
Maryland

Maine
Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital . . . .



Massachusetts

Michigan

Minnesota

Mississippi

Missouri

18

42

77

122

203

38

115

$129,542
69,726
28,857
129,439
1,281
1,260
0
30,506
578,292

$585,586
299,503
103,516
595,451
7,121
7,720
53,232
261,372
2,916,663

$1,744,618
1,087,142
188,668
897,143
42,692
30,547
110,236
314,595
5,987,149

$3,046,898
1,727,253
483,325
2,275,757
127,229
32,561
11,126
831,268
10,465,001

$1,399,960
943,221
397,191
1,295,910
17,197
17,589
301,740
361,011
6,205,650

$473,747
267,003
78,303
425,172
8,853
6,257
25,163
168,523
1,603,722

$1,454,236
694,095
319,608
1,131,791
18,122
14,825
48,498
912,647
4,562,634

5,555
572,737

32,917
2,883,746

69,478
5,917,671

112,397
10,352,604

65,584
6,140,066

18,280
1,585,442

53,563
4,509,071

0

33,089

60,988

43,865

60,093

190

47,420

22,010
2,397
3
0
10,950

85,343
16,031
536
11,089
279,428

241,701
21,304
66,327
138,240
928,747

312,428
29,389
48,585
86,957
382,397

144,257
57,638
3,596
58,742
192,890

69,303
4,991
79
905
41,332

107,449
18,435
10,095
35,933
153,810

998,708

5,222,763

11,790,619

19,791,642

11,391,101

3,155,263

9,476,035

287,586
510,384
6,473
66,940
0
3,589
7,578

1,445,019
2,540,433
47,235
202,288
364
91,394
44,715

3,356,399
4,094,201
123,802
829,205
182,867
487,339
105,464

4,344,224
9,784,314
156,139
1,659,258
4,547
379,244
478,519

845,467
1,195,572
10,377
513,570
6,309
160,373
9,441

882,550

4,371,448

9,179,277

16,806,245

2,441,644
4,902,176
53,989
734,105
548
574,693
76,126
8,783,281

2,741,109

2,521,874
3,176,331
74,671
509,014
26
803,722
56,915
7,142,553

329,599
552,951
32,845
886
331
0
8,181

1,684,509
2,686,939
401,621
14,925
315
11,089
65,916

4,476,987
4,702,290

5,636,104
11,170,141

3,263,416
5,519,865

1,183,533
1,557,576

3,445,394
3,697,159

1,206,878
74,288
2,444
141,276
201,703

1,100,056
13,978
7,293
86,957
259,666

1,219,979
143,747
17,175
59,466
238,797

148,768
655
845
905
28,003

1,404,227
24,358
5,767
35,940
117,200

924,793

4,865,314

10,805,866

18,274,195

10,462,445

2,920,285

8,730,045

1,550

6,157

45,198

83,543

118,576

9,540

29,122

0
20,066
21,797
29,544
958

. 0
64,652
119,485
152,779
14,376

0
172,383
414,212
322,694
30,266

100
294,204
603,057
503,396
33,147

0
256,715
262,110
263,184
28,071

0
44,436
165,063
13,504
2,435

4,809
152,879
230,432
313,451
15,297

72,365

351,292

939,555

1,433,904

810,080

225,438

716,868

998,708

5,222,763

11,790,619

19,791,642

11,391,101

3,155,263

9,476,035

Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
Montana
Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
..........
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
:
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital . . .
en



Nebraska

New

Hampshire

Nevada

New Jersey

New Mexico

New York

56

120

4

44

108

37

133

$199,060
147,400
57,908
281,875
2,821
3,381
0
45,611
1,115,707

$623,371
300,465
184,925
521,768
10,859
5,199
28,236
144,341
2,416,671

$148,394
148,339
85,259
159,862
21,228
1,657
0
72,200
722,128

$149,645
131,016
18,979
146,875
1,471
1,953
0
14,245
673,249

$1,896,963
1,585,087
756,391
2,432,328
385,959
22,979
8,493
344,977
8,608,002

$264,024
158,700
123,037
295,641
1,658
3,563
0
124,895
1,124,172

$11,613,350
3,641,777
744,050
4,340,431
312,480
144,540
1,343,460
1,069,112
34,288,900

11,070
1,104,637
2,686

26,356
2,390,315
39,627

7,466
714,662
11,114

7,003
666,246
28

110,818
8,497,184
71,889

14,094
1,110,078
1,373

602,105
33,686,795
470,922

31,905
2,141
0
1,943
26,195
1,907,563

72,007
6,327
29
1,822
57,768
4,387,059

34,949
4,782
0
0
12,930
1,415,376

27,738
625
0
489
9,076
1,168,386

329,749
27,949
261
22,474
301,519
16,684,202

53,124
7,708
455
122
28,094
2,172,472

704,371
162,774
586,776
2,675,957
4,405,747
65,902,542

439,849
1,049,389
6,358
151,001
0
33,587
15,098

1,161,814
1,986,152
18,537
257,356
0
296,148
23,300

444,608
627,699
7,951
165,469
0
2,402
24,593

328,525
538,308
10,861
105,335
0
2,350
10,371

4,266,701
8,826,511
121,917
1,199,696
0
158,719
167,687

603,962
863,291
29,359
366,362
0
40,624
20,437

1,695,282
538,628
1,156,654
41,452
32
402
1,943
26,130
1,765,241

3,743,307
1,569,979
2,173,328
255,258
1,549
793
1,822
42,396
4,045,125

1,272,722
525,900
746,822
6,895
14,182
765
0
10,859
1,305,423

995,750
408,093
587,657
51,802
1,485
1,500
489
13,508
1,064,534

14,741,231

1,924,035

15,238,153
20,966,791
359,936
1,597,437
2,123,037
7,518,140
1,382,548
49,186,042

5,256,163
9,485,068
443,502
46,417
9,711
22,970
170,705
15,434,536

730,724
1,193,311
62,338
3,543
420
122
22,946
2,013,404

24,105,968
25,080,074
4,196,806
700,006
19,484
2,703,574
2,749,557
59,555,469

12,725

21,920

0

1,125

61,620

12,960

372,138

0
51,635
51,730
23,048
3,184
129,597

101
70,018
88,842
150,563
10,490
320,014

0
27,518
27,717
52,203
2,515
109,953

0
15,554
46,697
38,448
2,028
102,727

25
296,335
458,364
406,114
27,208
1,188,046

0
44,387
55,429
43,154
3,138
146,108

1,506
1,544,583
2,036,796
2,268,985
123,065

1,907,563

4,387,059

1,415,376

1,168,386

16,684,202

2,172,472

65,902,542

5,974,935

Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
North Carolina North Dakota
Number of banks

Ohio

Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
.
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets

Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . ..
Liabilities for borrowed money
Mortaaae indebtedness
..
Acceptances executed by or for account of this bank and outstanding
"
Other liabilities
Total liabilities
Subordinated notes and debentures

Pennsylvania Rhode Island

43

220

194

7

241

5

$1,246,849
513,264
355,141
1,177,124
8,079
12,734
96,871
258,347
4,975,839

$145,049
128,196
57,761
208,810
2,636
1,863
200
13,395
883,852

$2,470,685
2,794,244
433,171
3,432,131
115,063
39,420
119,491
952,290
10,397,454

$1,121,249
921,867
96,538
1,330,068
23,775
12,695
48,494
544,686
3,924,477

$1,309,951
365,138
188,210
732,592
5,967
9,204
4,204
236,010
3,191,078

$4,002,022
3,426,717
1,191,187
3,521,130
253,505
62,480
402,239
1,475,121
20,310,958

$260,200
176,397
58,563
246,184
23,522
4,703
56,943
67,000
1,650,162

63,099
4,912,740

9,257
874,595

38,837
3,885,640
27,865

28,291
3,162,787
22,521

236,486
20,074,472
208,704

15,866
1,634,296
41,7077,598
820
53,740
58,453

48,023

0

133,833
10,263,621
90,447

170,134
30 288
7,217
113,529
324,541

28,672
122
155
814
18,818

378,287
12,226
12,011
59,108
754,769

154,242
11,724
800
901
97,403

150,622
12,457
7,012
88,231
69,123

497,494
83,916
77,460
581,493
982,021

9,274,881

1,481,086

21,926,964

8,277,947

6,364,929

36,839,961

2,715,623

2,723,687
3,645,719
60 803
633,826
15,204
302 140
50,870

378,871
833,527
4,876
78,603
0
13,850
11,667

5,352,364
10,601,126
127,065
1,406,567
1,007
326,906
173,784

2,290,446
3,337,176
63,750
961,678
0
427,469
61,293

1,610,142
2,554,210
26,252
378,897
0
94,856
57,011

8,071,597
16,809,165
191,864
1,786,005
202,346
1,250,756
226,025

502,229
1,481,794
12,368
186,788
0
12,299
20,436

7,432,249

1,321,394

17,988,819

7,141,812

4,721,368

28,537,758

2,215,914

3,290,637
4,141,612

434,834
886,560

777,340
17 275
4 060
113,529
149,309

25,782
1,376
477
814
17,058

6,421,890
11,566,929
1,576,907
14,937
1,854
59,108
447,497

2,915,499
4,226,313
376,383
2,749
1,943
901
73,920

1,930,261
2,791.107
999,712
9,831
370
88,231
85,409

9,749,424
18,788,334
3,639,522
356,425
15,703
581,607
842,719

630,092
1,585,822
150,094
1,769
0
53,740
96,299

8,493,762

1,366,901

20,089,122

7,597,708

5,904,921

33,973,734

2,517,816

135,695

9,954

42,135

57,158

100,750

234,290

5,000

0
164,655
246,233
226,168
8,368

0
29,163
33,450
36,372
5,246

0
371,710
809,359
577,874
36,764

500
134,511
176,561
300,327
11,182

0
92,530
124,633
141,032
163

1,335
495,684
1,156,632
886,509
91,777

0
30,390
83,348
73,326
5,743

645,424

104,231

1,795,707

623,081

358,358

2,631,937

192,807

21,926,964

8,277,947

6,364,029

Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U S government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks

Oregon

28

Assets

Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)

Oklahoma

25,49^

Equity Capital

Preferred stock
Common stork
Surolus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital . ..



9,274,881

1,481,086

n

36,839,96?!

2,715,623

Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
South Carolina South Dakota
Number of banks

19

32

Tennessee
75

Texas
591

Vermont

Utah
12

14

Virginia
108

Assets

Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell.
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets

$357,693
180,261
94,752
353,177
118
3,496
26,339
132,975
1,351,817

$190,556
146,311
67,011
292,457
7,737
2,537
24
31,033
1,184,075

$1,263,702
812,581
341,125
814,680
32,101
15,347
13,820
479,450
4,346,248

$6,158,868
3,420,484
1,274,692
5,536,591
103,109
53,496
70,430
2,165,497
18,503,308

$252,591
156,046
50,955
164,332
253
2,612
8,558
80,698
1,091,252

$31,385
35,132
8,962
45,310
4,913
484
0
8,480
268,584

$1,105,246
739,471
302,363
1,223,300
10,716
17,145
6,514
285,927
5,313,256

14,599
1,337,218

13,714
1,170,361

53,746
4,292,502

215,994
18,287,314

9,526
1,081,726

2,558
266,026

55,938
5,257,318

4,216

1,402

26,493

91,263

15,885

225

12,078

71,894
7,065
0
1,215
30,845

191,745
75,594
34
6,219
265,508

799,205
89,389
27,952
142,193
728,553

34,725
2,354
0
82
29,794

7,954
685
0
0
3,489

260,415
35,527
16
2,182
112,142

2,601,264

36,765
720
0
798
27,632
1,975,344

8,630,901

38,949,036

1,880,611

413,045

9,370,360

1,133,877
841,844
20,935
156,777
0
31,638
20,994

442,547
1,118,617
8,543
179,002
0
25,412
10,258

2,129,799
3,731,406
57,683
801,583
1,040
569,053
50,676

11,296,874
13,085,470
265,814
4,375,130
22,278
2,505,002
294,721

493,468
817,855
14,192
225,501
0
27,565
33,734

88,059
266,448
1,433
12,510
0
1,118
3,824

2,520,395
4,783,649
74,729
612,218
112
112,479
59,755

2,206,065

1,784,379

7,341,240

31,845,289

1,612,315

373,392

8,163,337

604,969
1,007,346

100,125
273,267

2,926,243
5,237,094

1,472
4,615
0
0
2,371

287,745
23,604
45,781
2,182
117,316

381,850

8,639,965

Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . ..
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures

1,301,079
904,986

519,149
1,265,230

2,851,909
4,489,331

14,762,923
17,082,366

144,059
7,304
71
1,215
25,212

15,760
29
2,041
798
23,267

558,004
9,968
5,844
6,219
98,358

3,333,312
85,174
97,560
142,412
483,186

2,383,926

1,826,274

8,019,633

35,986,933

109,185
2,814
119
82
19,538
1,744,053

7,600

16,821

36,660

137,235

19,456

1,757

37,437

0
39,205
74,741
91,390
4,402

0
37,998
42,190
48,455
3,606

0
145,613
211,788
202,787
14,420

140
698,187
855,143
1,107,155
164,243

0
30,734
49,558
35,519
1,291

0
6,768
9,010
12,436
1,224

0
165,376
263,355
249,324
14,903

209,738

132,249

574,608

2,824,868

117,102

29,438

692,958

2,601,264

1,975,344

8,630,901

38,949,036

1,880,611

413,045

9,370,360

Equity Capital

Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital



Table B-19—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, June 30, 1976
(Dollar amounts in thousands)
Washington
Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital

24

West Virginia Wisconsin
103

Wyoming

Other areas
Puerto Rico Virgin Islands

128

46

District of
Columbia
non-national*

1

1

$1,518,978
486,683
133,896
970,974
5,656
11,191
36,920
718,002
5,848,264

$440,397
469,813
306,964
661,918
14,968
5,727
4,880
233,010
1,781,445

$879,187
950,463
255,493
772,998
42,120
14,748
20,322
307,748
4,143,067

$138,033
118,667
62,003
206,054
1,903
1,800
0
29,805
730,552

$2,488
0
0
4,645
0
50
0
700
14,581

65,854
5,782,410

21,778
1,759,667

46,716
4,096,351

7,767
722,785

1,164
13,417

318
11,855

134,702

6,728

25,155

2,799

0

0

245,872
13,033
21,636
197,996
164,797

95,702
1,967
0
189
34,315

193,341
80,560
275
22,298
92,664

21,821
984
58
0
18,808

182
898
0
0
513

0
0
0
0
52

424
47
0
0
408

10,442,746

4,036,245

7,753,723

1,325,520

22,893

4,009

40,953

2,743,424
4,265,082
53,540
772,996
30,381
249,582
93,153

933,619
2,091,668
18,564
209,120
99
60,210
30,788

1,669,960
3,720,995
48,211
601,325
43,822
228,557
57,130

333,300
602,615
37,132
159,148
0
23,332
11,738

2,281
14,277
12
4,067
0
729
1,354

916
2,625
9
0
0
15
227

14,462
22,517
413
2
0
0
535

8,208,158

3,344,068

6,370,000

1,167,265

22,720

3,792

37,929

3,279,370
4,928,788

1,128,854
2,215,214

2,075,997
4,294,003

417,391
749,874

4,446
18,274

1,167
2,625

15,412
22,517

1,189,194
34,953
2,459
197,997
128,544

308,857
7,200
7,452
189
28,932

690,337
19,618
1,442
22,298
88,637

31,755
12,864
51
0
10,580

0
0
0
0
194

0
0
0
0
324

9,761,305

3,696,698

7,192,332

1,222,515

22,914

4,116

77,625

7,186

52,669

6,285

0

6,025
143,923
204,023
224,819
25,026

0
60,773
127,218
133,212
11,158

0
129,909
210,304
154,807
13,702

0
8,901
33,783
50,613
3,423

0
880
800
1,701
0

0
0
0
107
0

0
278
1,000
923
625

603,816

332,361

508,722

96,720

21

107

2,826

10,442,746

4,036,245

7,753,723

1,325,520

22,893

4,009

40,953

* Non-national banks in the District of Columbia are supervised by the Comptroller of the Currency.



$417
1,095
1,712
0
0
0
0
725
8

$3,059
7,356
4,088
8,573
3,342
1
0
1,800
12,173

37,937
190

Table B-20
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
Total, U.S.
and
other areas
4,737

Total,
United States
4,735

97

6

3

73

58

$76,078,031
52,612,836
17,005,880
57,384,363
2,987,415
967,304
4,973,779
30,140,010
303.436.774

$76,074,001
52,610,736
17,004,197
57,379,718
2,987,415
967,159
4,973,779
30,135,213
303.422.203

$852,828
523,198
284,199
1,149,817
29,843
9,828
35,106
381,465
4.007.413

$166,937
82,680
-50,314
175,303
3,158
2,416
0
35,000
625.034

$562,349
586,599
118,927
419,178
8,659
6,996
8,178
214,600
3,236,168

$587,185
271,330
159,559
531,077
10,445
4,737
22,257
347,379
2,140,981

$10,587,196
7,736,680
2,078,611
5,120,513
198,749
109,887
313,924
4,197,897
44,163.743

3,589,367
299,847,407

3,588,723
299,833,480

46,889
3,960,524

6,443
618,591

23,914
3,212,254

19,343
2,121,638

493,900
43,669,843

3,808,381

- 3,808,381

23,271

6,761

3,445

5,167

1,483,465

9,879,953
1,722,984
1,777,388
5,086,708
19,076,586

9,879,738
1,721,536
1,777,388
5,086,708
19,076,206

144,322
5,219
180
16,288
91,169

42,086
1,280
585
0
18,194

147,594
8,296
0
7,335
91,029

89,469
3,921
117
901
57,123

1,463,898
74,746
480,343
1,763,843
3.973,410

583,349,025

583,315,655

7,507.257

1,203,305

5,395,439

4,212,305

83,253,005

147,018,169
242,873,535
2,126,653
38,088,306
5,917,740
27,332,987
6,051,345

147,014,675
242,853,964
2,126,647
38,085,623
5,917,740
27,328,648
6,050,839

2,059,997
3,326,242
40,147
647,704
0
263,822
38,174

468,691
389,666
12,774
135,738
0
2,196
20,448

1,548,398
3,018,899
17,236
156,338
5,240
29,381
67,448

1,188,968
1,765,090
13,842
315,865
0
255,495
24,957

19,470,724
37,635,748
214,726
5,305,814
1,705,432
2,022,614
1,079,533

469,408,735

469,378,136

6,376,086

1,029,513

4,842,940

3,564,217

67,434,591

188,175,050
281,233,685

188,170,057
281,208,079

2,561,502
3,814,584

546,677
482,836

1,714,832
3,128,108

1,556,889
2,007,328

23,065,670
44,368,921

51,678,941
2,741,434
406,112
5,140,675
9,921,683

51,678,941
2,741,434
406,112
5,140,675
9,920,706

386,897
39,634
2,311
16,288
116,350

56,270
12,684
61
0
12,749

145,083
280
485
7,335
44,636

280,579
2,280
92
901
45,697

6,736,818
561,465
61,023
1,769,745
1,506,292

539,297,580

539,266,004

6,937,566

1,111,277

5,040,759

3,893,766

78,069,934

2,726,628

2,726,628

23,996

990

77,666

25,863

404,747

18,754
9,106,275
15,853,738
15,271,833
1,074,217

18,754
9,103,635
15,851,530
15,274,887
1,074,217

0
113,855
211,967
212,607
7,266

0
23,624
38,718
26,651
2,045

41,324,817

41,323,023

545,695

91,038

0
40,910
99,847
128,843
7,414
277,014

0
67,268
87,429
124,220
13,759
292,676

0
915,465
2,070,988
1,748,723
43,148
4.778,324

Total liabilities, subordinated notes and debentures and equity capital . . .. 583,349,025

583,315,655

7,507,257

1,203,305

5,395,439

4,212,305

83,253,005

Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves >
Total equity capital
CO




Alabama

Alaska

Arizona

Arkansas

California

Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
Colorado
Number of banks
Assets
Cash and due trom banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital . . . .



Connecticut

District of
Columbia

Delaware

Florida

Georgia

Hawaii

132

23

5

15

$1,035,822
468,939
153,504
675,014
6,115
9,336
4,999
413,385
3,773,086
36,389
3,736,697
28,949

$676,022
296,611
129,804
372,088
94,926
8,720
27,719
127,505
2,091,424
23,431
2,067,993
25,544

$4,905
8,688
2,696
3,325

$572,783
480,449
109,583
578,637
16,784
8,810
13,769
345,420
2,281,027
29,330
2,251,697
27,677

$2,540,605
2,472,746
1,002,499
1,979,596
122,626
28,528
25,938
1,270,482
7,655,460
88,003
7,567,457
38,440

$1,214,147
449,883
148,357
561,899
13,146
53,063
26,708
439,377
4,225,161
55,694
4,169,467
33,733

$21,360
24,151
9,059
1,327

137,226
27,552
2,421
17,857
95,184
6,813,000

94,676
6,473

49,637
1,633
52,906
4,510,366

238,937
145,446
80,382
74,513
124,462
7,773,520

2,370

6,376
161,626
4,096,091

373,032
108,043
3,198
14,620
291,831
17,839,641

2,019,564
2,734,692
35,981
522,842

1,333,227
1,611,012
23,360
313,757

405,063
59,005
5,777,147

248,665
28,149
3,558,170

1,760,743
1,746,749
28,332
7,200
184,668
57,219
62,519
3,847,430

5,169,360
7,715,255
69,951
1,472,267
2,994
733,926
167,473
15,331,226

2,365,343
2,397,711
35,363
532,910
21,725
551,329
66,437
5,970,818

2,587,507
3,189,640
391,995
46,152
11,489
17,857
79,464

1,707,937
1,850,233
212,081
6,661
6,376
36,796

0
98
0
0
354

2,043,407
1,804,023
196,689
9,275

6,324,104

3,820,611

60,409

4,107,931

6,497,402
8.833.824
908,652
6,315
7,579
14,621
160,048
16,428,441

3,117,761
2.853.057
839,697
49,808
25,609
77,039
150,944
7,113,915

1,306
146,779

29,952

12,473

200

13,128

36,486

66,340

1,500

0

8

0

527

383
97
0

4,100
40,436
153

40,283
0

1,031
70
0
0
406

65,984
17,449
39,900
686

1,325

0
0
597

59,957
18,857
41,100

0
581

0
580

53,957

306

64

2

0
200
0

5,270
91,610
981

90,629
0
5
0
115

1,459
155,945
47,736
66,773
607

23,094
0

2,909
1,933
143,052
53,616
89,436
0

2,306
0
115

0

0

0

400

0

62,866
136,564
59,594
3,983
263,007

1,580
1,676
2,050

144,960
216,573
164,035
67,697
593,265

3,797
2,506
1,363

5,375

63,185
134,756
186,801
4,165
389,307

1,001
357,979
546,952
441,974
26,808
1,374,714

0

98,686
160,213
193,527
6,518
458,944
6,813,000

4,096,091

65,984

4,510,366

17,839,641

7,773,520

155,945

69

0

7,666

Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
Idaho
Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell.
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks

Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus

Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Ol

Total liabilities, subordinated notes and debentures and equity capital




Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

425

120

100

169

82

54

$298,784
192,854
56,646
330,732
1,283
3,819
1,997
47,467
1,553,686

$4,760,876
4,910,987
1,939,864
5,194,676
433,630
84,561
543,068
1,616,440
28,331,740

$1,392,670
1,535,,529
675,793
1,485,802
177,091
16,384
45,924
782,445
6,328,163

$671,828
380,866
197,627
562,395
14,808
4,553
12,773
225,781
2,494,894

$720,794
489,521
233,865
634,931
9,943
7,662
14,342
433,630
2,521,162

$562,411
500,445
127,776
584,857
2,797
6,306
8,969
406,400
2,632,696

$1,099,206
1,102,507
164,198
908,516
9,637
12,305
399
837,227
3,552,320

13,610
1,540,076
9,559

364,854
27,966,886
71,152

80,319
6,247,844

25,130
2,496,032

25,669
2,607,027

41,128
3,511,192

131,876

20,661
2,474,233
1,921

4,076

64,024

25,989

42,063
1,058
0
6
34,139
2,560,483

606,458
199,707
202,897
137,430
1,447,365
50,115,997

217,589
36,072
7,712
46,800
546,624
13,346,155

66,907
4,290
1,212
730
79,606
4,699,530

119,065
2,894
1,484
105
53,115
5,221,459

91,675
6,596
74
545
76,293
5,046,195

149,709
16,890
1,877
10,711
128,478
7,978,841

693,078
1,328,076
11,910
219,718
0
8,234
18,685

10,599,134
20,054,426
161,588
2,031,059
1,380,222
2,693,400
399,507

3,019,656
5,968,533
45,542
1,324,445
1,470
340,831
100,629

1,145,880
2,322,194
20,397
260,862
0
335,438
27,026

1,365,928
2,184,611
17,924
566,423
0
294,111
30,908

1,493,200
2,245,443
16,043
313,252
0
217,241
30,551

2,309,500
2,881,421
24,699
890,668
7,429
420,534
62,095

2,279,701

37,319,336

10,801,106

4,111,797

4,459,905

4,315,730

6,596,346

804,337
1,475,364
79,728
2,533
228
6
30,217

13,287,637
24,031,699
8,135,127
36,829
17,479
138,170
829,339

3,977,236
6,823,870
1,336,477
32,676
9,829
46,814
187,651

1,548,703
2,563,094
185,617
3,436
617
730
64,227

1,903,079
2,556,826
266,282
13,746
282
105
42,972

1,817,817
2,497,913
286,763
4,919
2,197
545
55,087

2,952,983
3,643,363
635,441
13,578
18,762
10,712
92,524

2,392,413

46,476,280

12,414,553

4,366,424

4,783,292

4,665,241

7,367,363

7,964

87,431

12,538

26,884

21,065

11,596

18,121

0
35,943
96,969
22,927
4,267
160,106

2,365
760,952
1,548,983
1,142,087
97,899
3,552,286

0
189,103
354,744
359,660
15,557
919,064

0
60,750
83,510
148,226
13,736
306,222

0
92,459
151,554
165,542
7,547
417,102

0
72,978
123,789
162,316
10,275
369,358

1,800
101,647
223,007
241,603
25,300

2,560,483

50,115,997

13,346,155

4,699,530

5,221,459

5,046,195

7,978,841

593,357

Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
Maine
Number of banks

Maryland

Massachusetts

Michigan

17

41

75

122

$101,960
66,575

$1,707,901
1,525,350
166,445
829,490
58,093
37,120
184,464
298,732
5,949,125

$2,494,345
2,007,525
396,754

68,655
603,395

$627,268
267,477
110,296
556,213
8,522
7,852
6,295
370,228
3,197,141

5,763
597,632

27,802
3,169,339

0

Minnesota
203

Mississippi
38

Missouri
115

Assets

944,967
11,203,366

$1,605,744
1,083,208
395,904
1,314,147
66,073
18,996
486,408
653,137
6,558,395

174,015
1,728,317

364,479
1,163,727
24,126
15,312
119,904
1,534,763
4,823,901

76,996
5,872,129

112,678
11,090,688

61,708
6,496,687

17,930
1,710,387

57,531
4,766,370

34,552

54,538

45,536

68,500

207

49,919

21,755
2,116
3
0
10,957
1,040,681

86,680
10,411
838
5,994
302,147
5,564,112

238,738
24,234
70,045
97,344

1,021,460

318,988
38,285
48,347
50,240
449,025

148,705
54,854
4,522
64,111
205,850

71,163
4,595
79
556
45,740

118,583
19,229
11,180
25,361
168,844

12,186,083

20,449,742

12,666,846

3,412,163

11,002,145

289,804

9,841
6,844

Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)

1,495,397
2,581,430
23,814
263,239
293
86,397
31,976

3,582,622
3,960,011
42,077
758,417
135,195
643,377
126,636

4,353,082
10,132,242
74,703
1,778,592
4,861
359,790
434,664

2,821,327
5,383,103
40,003
791,887
331
716,240
93,066

891,750
1,394,094
13,414
441,303
6,413
180,116
16,456

2,918,185
3,546,707
34,603
547,577
0
1,069,489
60,629

29,233
139,721
787
1,287
0

Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets

2,367,093

137,024
32,879
28,046

$501,106
300,888
77,806
442,990
7,412
6,483
68,736

$1,951,675
668,673

Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks

543,127
5,639
65,874
0

921,129

Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
7"ofa/ liabilities

Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves




subordinated

9,845,957

2,943,546

8,177,190

1,718,405
2,764,141

4,764,139
4,484,196

5,534,746
11,603,188

3,801,663
6,044,294

1,224,977
1,718,569

4,201,447
3,975,743

33,465
375
328
0
8,304

622,175

11,442
361
5,994
70,650

1,554,529
63,155
2,787
100,013
218,824

1,391,179
6,321
6,562
50,240
300,285

1,336,051
208,953
8,343
64,281
232,260

191,288
356
29,949

1,888,635
18,540
5,510
25,361
121,755

5,193,168

11,187,643

18,892,521

11,695,845

3,167,178

10,236,991

6,157

45,344

84,358

131,686

9,460

29,119

0
66,068
121,021
163,055
14,643

0
170,962
411,992
343,527
26,615

100
297,691
605,024
536,330
33,718

0
257,879
268,634

0
45,162
183,358
3,406
3,599

892

Total equity capital
Total liabilities,

17,137,934

0
20,140
22,642
31,856

Total demand deposits
Total time and savings deposits

9,248,335

1,550

,

4,482,546

341,182
579,947

963,601

Total deposits

282,170
30,632

1,483
556

2,129
154,758
243,422

322,979
12,747

75,530
notes and debentures

and equity capital

....

364,787

953,096

1,472,863

839,315

235,525

736,035

1,040,681

5,564,112

12,186,083

20,449,742

12.666,846

3,412,163

11,002,145

Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
Montana
Number of banks

Nebraska

New
Hampshire

Nevada

56

120

$215,972
146,130
62,696
273,600
3,276
3,278
0
87,178
1,185,065

$689,163
283,169
170,621
534,955
10,857
5,272
35,154
215,209
2,576,997

$162,060
253,177
101,412
150,250
1,807
0
21,800
755,154

1,935
0
45,205
726,724

11,016
1,174,049

26,374
2,550,623

8,291
746,863

2,624

41,296

34,992
2,332
0
264
25,814

New Jersey

New Mexico

New York

43

104

38

129

$149,632
130,665
14,745
134,886

$1,896,943
1,738,311
982,925
2,504,592

$11,025,945
3,974,445

636,187
8,989,324

$274,519
181,011
122,219
301,489
1,809
3,669
0
134,400
1,198,543

6,961
719,763

107,913
8,881,411

13,401
1,185,142

589,443
37,389,403

17,740

74

74,587

1,518

475,319

74,007
5,623
576
551
61,209

34,789
288
0
0
16,237

29,789
946
0
1,053
9,347

348,819
64,530
988
28,771
341,666

53,996
5,588

759,263
334,886
698,550

2,032,205

4,678,285

1,530,570

1,239,623

17,963,751

492,728
1,099,922
8,152
157,339
0
36,579
14,922

1,237,708
2,093,275
12,156

493,703
649,181
5,341
210,256
0

356,312
597,654

4,544,002
9,348,950
90,053

1,809,642
591,888
1,217,754

Assets

Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets

24,147

1,583

433,983
23,376
6,662

496

394
30,634
2,296,884

661,085
3,715,840

297,925
149,539
1,324,250
912,809
37,978,846

1,362,938
4,559,342
67,641,539

Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
•

259,334
0

9,356

199,539
192,259

25,969
399,326
0
50,371
21,931

15,437,980
22,207,206
172,593
1,565,885
2,014,658
7,510,193
1,195,514

633,823
920,458

2,895
22,822

114,736
0
1,461
11,810

3,997,910

1,384,198

1,091,329

15,786,812

2,051,878

50,104,029

570,149
814,049
11,885
1,522
1,123
0
14,001

445,290
646,039

5,552,445
10,234,367

762,188
1,289,690

24,221,904
25,882,125

46,033
19
412
264
25,996

1,703,067
2,294,843
267,038
4,520
1,192
551
50,647

26,821
45

1,417
1,053
12,918

625,695
47,400
9,326
28,893
186,689

55,209
0

6,486,825
734,303
18,626

1,882,366

4,321,858

1,412,729

1,133,583

16,684,815

2,130,926

61,040,518

Subordinated notes and debentures

15,303

23,910

0

1,125

62,781

12,925

370,014

Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves

0
56,169
56,275
18,633
3,459

101
155,041
10,641

0
27,518
28,718

0
15,328
46,553

25
296,557
464,338

40,659
2,375

427,094
28,141

1,500
45,938
57,239
45,339

1,421
1,542,867
2,136,836
2,448,803

3,017

101,080

134,536

332,517

117,841

104,915

1,216,155

153,033

6,231,007

2,032,205

4,678,285

1,530,570

1,239,623

17,963,751

2,296,884

67,641,539

Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities

Total equity capital
Total liabilities,




subordinated

notes and debentures

and equity capital

....

370,324
25,113

72,894
93,840

59,295
2,310

1,409,905
2,104

402
394
23,043

1,404,611
2,292,124

Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
North Carolina North Dakota
Number of banks

Oklahoma

Ohio

Oregon

28

43

219

195

$1,338,632
611,222
433,614
1,107,691
51,470
12,855
212,238
557,269
5,230,004

$169,343
120,802
58,784
219,946
1,979
1,969
0
38,091
940,039

$2,915,287
2,800,474
588,244
3,519,569
118,579
41,743
152,322
1,361,465
11,028,029

$1,420,867
1,003,100
113,918
1,303,258
26,563

$865,933
387,729

13,105

9,376

61,392
5,168,612

8,988
931,051

50,593
170,287
28,243

Pennsylvania Rhode Island
237

Assets

Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
\
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets

156,671
747,773
5,528

$3,973,896
4,184,832
1,412,977
3,709,905
276,586
64,014

$281,677
330,270
43,554
202,445
25,219
5,005
51,280
118,090
1,673,063
15,099
1,657,964

90,628
703,600

262,051

4,293,221

3,331,323

1,879,990
20,585,750

137,551
10,890,478

41,807
4,251,414

28,562
3,302,761

246,981
20,338,769

364

102,176

29,578

24,627

300.523

114,267
450,381

29,801
1,555
5
268
18,871

10,312,339

1,592,829

392,601
15,710
14,786
53,754
890,024
23,857,212

168,829
8,654
826
1,173
104,487
9,240,000

149,893
11,559
8,121
107,859
429,572

72,928
45,873

6,476,248

502,704
89,547
75,507
559,600
983,071
38,921,604

15,653
843
57,816
72,469
2,981,086

3,035,322
3,937,029
39,579

423,270
883,646
6,435
85,779
0
20,389
14,014

6,133,438
11,110,048
83,692
1,458,445
1,007
558,441
192,876

2,495,683
3,653,904
47,729
963,075
0
634,236
80,849

1,750,771
2,734,779
14,551
452,076
0
94,855
91,405

8,555,415
17,356,767
86,642
2,120,214
351,062
1,183,543
268,081

536,857
1,533,669
7,210
242,474
0
12,857
20,843

8,159,520

1,433,533

19,537,947

7,875,476

5,138,437

29,921,724

2,353,910

3,633,480
4,526,040

492,928
940,605

7,490,782
12,047,165

3,317,982
4,557,494

2,062,674
3,075,763

10,207,591
19,714,133

661,333
1,692,577

1,019,986
22,762
4,217
114,267
177,037

13,821
1,346
440
268
20,297

1,923,789
14,297
3,669
53,754
404,659

519,532
45,365
2,087
1,173
85.629

659,778
10,599
347
107,859
85,555

4,282,452
435,529
16,188
559,681
763,964

225,695
48,807
0
57,816
87,662

9,497,789

1,469,705

21,938,115

8,529,262

6,002,575

35,979,538

2,773,890

136,920

13,041

47,078

58,797

100,750

232,281

5,000

0
166,399
249,235
251,922
10,074

0
30,263
35,973
38,310
5,537

0
375,237
842,735
622,188
31,859

500
135,999
179,440
325,109
10,893

677,630

110,083

1,872,019

651,941

0
92,531
124,632
145,041
10,719
372,923

1,254
492,816
1,174,943
949,925
90,847
2,709,785

0
30,390
88,663
76,065
7,078
202,196

10,312,339

1,592,829

23,857,212

9,240,000

6,476,248

38,921,604

2,981,086

4,965

6,795

569,683

Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures

733,610
10,212
344,099
59,669

Equity Capital

Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital



Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
South Carolina South Dakota
Number of banks
Assets
Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)

Vermont

Virginia

Subordinated notes and debentures
Equity Capital
Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
capital.....

108

$219,596
148,109
80,409
284,145
11,994
2,586
31
53,915
1,251,569

$1,220,824
789,696
285,434
746,626
26,500
14,978
15,860
635,682
4,320,781

$6,958,824
3,961,884
1,273,052
5,327,750
119,984
56,225
323,242
3,994,614
19,794,806

$301,005
156,751
49,000
149,120
1,194
2,724
23,327
74,297
1,240,397

12,948
1,238,621

52,072
4,268,709

4,705
73,063
7,238
0
3,309
31,167
2,715,845

1,922
39,443
1,059
0
204
29,044

37,385
182,058
74,465
36
9,347
276,492

229,214
19,565,592
100,556

10,075
1,230,322
16,880

$34,927
35,580
8,029
53,030
3,115
496
0
16,050
285,620
2,529
283,091
170

2,111,078

8,584,092

43,534,570

36,888
1,505
0
90
24,674
2,067,777

8,318
481
33
0
3,517
446,837

$1,160,748
844,260
299,439
1,304,017
11,887
17,506
13,835
395,626
5,546,200
57,518
5,488,682
11,380
264,667
30,905
42
9,662
130,591
9,983,163

493,038
1,197,683
9,928
159,709
0
30,987
14,088 I

2,207,966
3,705,126
31,730
665,263
1,087
584,980
53,964

12,845,600
14,303,187
225,818
4,475,752
19,775
2,889,645
404,508

556,325
938,724
2,204
261,981
0
44,245
19,612

88,772
282,545
1,572
28,580
0
1,563
4,646

2,731,039
5,017,371
68,253
673,874
128
128,635
73,213

1,905,433

7,250,116

35,164,285

1,823,091

407,678

8,692,513

1,371,466
948,670
131,525
5,117
268
3,309
29,380

567,414
1,338,019
14,763
500
2,033
204
28,284

2,916,986
4,333,130
591,481
1,324
5,715
9,347
128,791

16,689,985
18,474,300
4,237,744
112,835
98,329
199,577
570,802

667,783
1,155,308
79,218
1,762
113
90
22,690

106,211
301,467
1,200
1,657
0
0
2,748

1,951,217

7,986,774

40,383,572

1,926,964

413,283

3,155,403
5,537,110
327,225
20,735
45,528
9,662
124,670
9,220,333

21,321

33,020

181,940

16,526

3,249

46,196

0
39,326
74,973
100,446
3,765
218,510

Total liabilities

14

7,600

Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities

13

2,489,735

Total demand deposits
Total time and savings deposits

596

2,320,136

Total deposits

74

1,176,270
884,873
15,837
188,505
0
34,595
20,056

Total assets

32

16,005
1,409,761

Liabilities
Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks




Utah

$391,853
187,470
98,404
366,123
818
3,515
11,129
127,290
1,425,766

Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets

Total liabilities, subordinated notes and debentures and equity

Texas

19

Reserve for possible loan losses
Loans, net of reserve

Ol

Tennessee

0
38,499
42,863
53,041
4,137

0
142,017
211,027
193,364
17,890

133
727,607
886,613
1,173,637
181,068

0
35,103
51,517
35,950
1,717

0
7,269
9,213
12,696
1,127

138,540

564,298

2,969,058

124,287

30,305

0
166,144
265,984
271,140
13,366
716,634

2,715,845

2,111,078

8,584,092

43,534,570

2,067,777

446,837

9,983,163

821,273
91,658
31,313
199,566
709,037

F

Table B-20—Continued
Total assets, liabilities and equity capital of domestic offices and subsidiaries of national
banks, United States and other areas, December 31, 1976
(Dollar amounts in thousands)
Wisconsin

Wyoming

Other areas
Puerto Rico Virgin Islands

District of
Columbia
non-national*

Washington
Number of banks

West Virginia

21

103

130

46

1

1

1

$1,544,863
567,675
163,446
984.340
5,674
11,921
102,067
758,756
6,167,453

$397,058
469,907
303,618
689,709
14,041
5,872
1,397
392,385
1,886,890

$963,108
748,245
268,487
759,571
54,137
14,455
33,956
510,002
4,387,494

$182,619
121,463
67,616
206,024
2,507
1,801
0
27,485
813,301

$3,691
997
0
4,645
0
145
0
4,600
14,567

$339
1,103
1,683
0
0
0
0
197
4

$2,230
5,795
6,468
7,096
2,665
1
1,900
14,105
166

68,511
6,098,942

21,146
1,865,744

50,580
4,336,914

8,097
805,204

644
13,923

13,939
0

165,198

9,717

25,202

3,018

0

437

257,737
11,825
22,535
217,481
188,435

99,513
1,838
0
189
38,134

23,200
801
50
0
19,977

207
1,448
0
0
318

8
0
0
0
62

0
0
0
579
41,110

11,100,895

4,289,122

195,579
110,732
296
15,790
103,572
8,140,046

1,461,765

29,974

3,396

14,130

3,086,562
4,659,941
32,875
771,643
19,995
261,177
96,955

982,225
2,215,818
18,908
235,257
0
75,354
25,520

1,922,659
3,898,369
35,869
574,752
41,439
275,017
60,924

368,464
650,684
48,834
189,683
0
35,010
8,900

2,501
17,397
0
2,683
0
4,339
325

993
2,174
6
0
0
0
181

23,277
119
3
0
0
0
327

8,929,148

3,553,082

6,809,029

1,301,575

27,245

3,354

37,856

3,599,398
5,329,750

1,170,872
2,382,210

2,398,090
4,410,939

462,340
839,235

3,813
23,432

1,180
2,174

14,559
23,297

1,044,850
41,638
2,650
217,482
151,120

329,703
9,280
7,149
189
36,144

631,920
16,152
653
15,847
90,331

27,235
10,103
284
0
12,888

0
0
0
0
662

0
0
0
0
315

10,386,888

3,935,547

7,563,932

1,352,085

27,907

3,669

37,857

84,332

7,156

52,524

6.225

0

0

170

6,025
142,626
202,616
254,676
23,732

0
61,933
130,233
143,027
11,226

0
132,428
215,960
161,354
13,848

0
9,110
34,273
56,060
4,012

0
2,640
2,208
2,781
0

0
0
0
273
0

0
278
1,000
1,180
625

629,675

346,419

523,590

103,455

2,067

273

3,083

11,100,895

4,289,122

8,140,046

1,461,765

29,974

3,396

41,110

Assets

Cash and due from banks
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell.
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises; furniture and fixtures and other assets representing bank
premises
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets
Liabilities

Demand deposits of individuals, partnerships and corporations
Time and savings deposits of individuals, partnerships and corporations
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits ..
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Equity Capital

Preferred stock
Common stock
Surplus

Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities, subordinated notes and debentures and equity capital



Table B-21
Loans of national banks, by states, December 31, 1976
(Dollar amounts in millions)
Total
loans

Loans
secured
by real
estate

Loans to
financial
institutions

Loans to
purchase
or carry
securities

Loans to
farmers

Commercial Personal
and indusloans to
trial loans
individuals

Other
loans

Total loans
less unearned
income^

All national banks

$310,559

$82,922

$22,694

$8,637

$11,324

$109,489

$66,747

3,747

$303,437

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia ..
Florida

4,163
646
3,382
2,203
45,248
3,854
2,137
42
2,309
7,884

972
247
1,003
648
14,101
881
726
23
784
2,665

174
2
169
31
3,934
149
59
0
348
300

53

97

20
63
843
62
11
0
17
81

249
114
1,688
440
7
1
1
65

1,320
220
971
646
14,572
1,195
689
6
519
2,166

1,420
171
929
653
8,628
1,039
588
12
487
2,456

127
6
40
48
1,481
88
55
154
152

4,007
625
3,236
2,141
44,164
3,773
2,091
40
2,281
7,655

Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine

4,406
93
1,606
28,670
6,554
2,524
2,574
2,721
3,654
616

1,149
59
484
5,012
2,609
706
424
889
932
233

207
1
19
4,007
171
38
52
83
177
1

44
0
2
1,467
57
59
96
25
55

39
1
266
792
180
536
620
125
54
10

1,431
22
388
12,506
1,581
600
690
672
1,436
182

1,402
10
435
3,975
1,818
541
659
878
915
176

133
1
12
911
137
43
33
48
84
14

4,225
92
1,554
28,332
6,328
2,495
2,521
2,633
3,552
603

Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

3,301
6,040
11,479
6,702
1,788
4,883
1,237
2,628
782
754

1,199
1,124
4,500
1,944
478
1,051
333
347
364
253

162
606
695
380
69
340
3
34
5
2

49
76
151
269
23
206
2
97
1
1

25
5
112
409
61
267
224
921
14
2

817
2,976
3,013
2,282
517
1,839
305
580
174
239

943
1,159
2,447
1,227
580
1,071
354
609
212
250

104
94
561
190
61
110
15
40
12
7

3,197
5,949
11,203
6,558
1,728
4,824
1,185
2,577
755
727

New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

9,247
1,246
38,468
5,456
967
11,446
4,378
3,394
21,081
1,705

4,034
279
6,376
971
261
3,744
912
930
6,236
685

372
23
4,567
341
1
359
182
404
2,097
95

43
7
2,948
58
3
87
248
39
377
3

111
205
94
203
176
506
175
169

2,354
411
19,334
2,082
281
3,085
1,471
1,121
7,136
569

2,242
398
3,921
1,784
211
3,773
968
670
4,393
304

194
17
1,117
126
8
222
91
55
674
48

8,989
1,199
37,979
5,230
940
11,028
4,293
3,331
20,586
1,673

South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

1,480
1,287
4,485
20,168
1,266
293
5,758
6,229
2,005
4,463
841

287
327
1,166
3,342
477
155
2,286
1,559
802
1,732
218

21
4
226
1,056
22

8
4
51
737
13

130
340
12
224
2

29
64
5
77
3

24
374
76
1,105
43
6
89
361
11
117
146

484
300
1,468
8,733
423
62
1,325
2,349
368
1,310
256

610
268
1,413
4,365
270
65
1,764
1,424
777
882
199

46
11
86
829
18
5
134
132
31
122
18

1,426
1,252
4,321
19,795
1,240
286
5,546
6,167
1,887
4,387
813

4
15

0
2

0

0
0

0
0

0
12

0
1

2,324

793

349

17

521

489

Virgin Islands
Puerto Rico
District of Columbia-all*

0
15
154

* Includes national and non-national banks in the District of Columbia, all of which are supervised by the Comptroller of the Currency.
t Equals total loans from the balance sheet before the removal of the reserve for possible loan losses.
NOTE: Data may not add to totals because of rounding. Dashes indicate amounts of less than $500,000.




2,295

Table B-22
Outstanding balances, credit cards and related plans of national banks, December 31, 1976
Other related credit plans

Credit cards
Number of
banks
All national banks

Outstanding
volume
(dollars in
thousands)

Outstanding
volume
(dollars in
thousands)

Number of
banks

958

3,215,846

1,216

$1,645,947

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida

16
2
2
5
26
61
5
0
1
83

99,832
20,512
123,921
26,142
1,716,337
185,073
104,265
0
78,441
266,506

9
1
3
5
36
70
11
0
10
58

2,775
164
26,189
821
292,787
23,469
26,248
0
40,651
31,567

Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine

24
1
3
41
59
8
5
33
6
12

219,384
363
32,552
609,934
142,080
48,715
59,919
76,509
63,053
15,474

10
1
2
117
21
22
15
9
5
9

25,778
617
10,426
55,946
16,159
2,532
2,500
4,525
13,418
6,041

4
37
34
32
3
16
9
5
3
19

157,266
148,865
366,128
24,527
36,563
228,323
3,867
141,228
23,279
17,239

17
49
44
115
1
35
19
25
1
15

30,240
104,757
52,516
64,970
801
18,735
2,582
4,052
4,969
3,975

New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

15
4
25
9
6
111
7
3
17
4

105,569
24,844
648,682
151,773
1,084
420,178
106,110
119,878
341,618
36,640

56
4
43
24
13
63
24
0
45
2

93,266
1,114
277,558
63,905
2,708
45,358
4,097
0
174,537
14,941

South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

4
0
12
56
5
4
32
6
11
64

51,666
0
144,076
370,745
44,285
3,426
225,766
223,088
19,734
137,408
2,979

5
10
67
0
2
22
4
11
63
15

5,909
1,098
10,974
31,153
0
8
10,243
15,589
6,485
14,531
2,263

0
0

0
0

0
0

:

Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

Virgin Islands

Puerto Rico


158


Table B-23
National banks engaged in direct lease financing, December 31, 1976
Total number
of banks

Number of banks
engaged in direct
lease financing

4,737

769

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine

97
6
3
73
58
132
23
5
15
306

2
1
10
21
30
4
0
4
48

Maryland
Massachusetts . .
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire ,

41
75
122
203
38
115
56
120
4
43

New Jersey
New Mexico
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . . .

104
38
129
28
43
219

South Carolina ..
South Dakota . ..
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia .. .
Wisconsin
Wyoming

All national banks

Virgin Islands . . .
Puerto Rico
District of Columbia — all*

64
2
6
425
120
100
169
82
54
17

8
0
2
64
30
16
24
15
9
0
4
9
22
16
6
27
13
21
2
3

Amount of direct
lease financing
(dollars in thousands)
$3,808,381
23,271
6,761
3,445
5,167
1,483,465
28,949
25,544
0

27,677
38,440
33,733
0
9,559

71,152
131,876
1,921
4,076
64,024

25,989
0
34,552
54,538
45,536
68,500
207
49,919
2,624

41,296
17,740
74
74,587
1,518
475,319

195
7
237
5

9
9
14
8
1
54
82
2
15
2

19
32
74
596
13
14
108
21
103
130
46

2
3
11
58
4
2
6
11
17
23
16

4,705
1,922
37,385

1
1

0
0

16

50,593
364
102,176
29,578
24,627
300,523

72,928

100,556
16,880
170
11,380

165,198
9,717
25,202
3,018
0
0
27,677

* Includes national banks and non-national banks in the District of Columbia, all of which are supervised by the Comptroller of the Currency.




159

Table B-24
Principal assets, liabilities and capital accounts of national banks, by asset size, year-end 1976
(Dollars in thousands)
Banks with assets of—

Number of banks
Assets

Cash and due from banks
U S Treasury securities
Obligations of other U.S. government agencies and corporations . . .
Obligations of states and political subdivisions
Other bonds notes and debentures . .
.
Federal Reserve stock and corporate stock
Trading account securities
Federal funds sold and securities purchased under agreements to resell
Loans, total (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures and other assets representing bank premises
.
. . .
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
.
Customers' liabilities to this bank on acceptances outstanding
Other assets
Total assets

Equity Capital

Preferred stock
Common stock
Surplus
Undivided profits
Reserve for contingencies and other capital reserves
Total equity capital
Total liabilities and equity capital
Standby Letters of Credit (outstanding as of report date
A. Time certificates of deposit in denominations
of $100,000 or more
B. Other
 time deposits in amounts of


$100 to $300 $300to$1,00C
million
million

$1,000 million
and more

$5 to $10
million

$10 to $25
million

4,737

223

563

1,558

1,750

396

162

85

$76,078,031
52,612,836
17,005,880
57,384,363
2,987,415
967,304
4,973,779
30,140,010

$103,075
134,700
56,617
36,937
5,067
2,736
0
73,819

$491,638
624,717
316,301
345,226
17,745
7,462
0
276,625

$2,831,754
3,230,577
1,651,834
3,201,894
154,377
36,609
41
1,332,846

$8,804,087
8,986,849
4,338,578
11,619,868
556,750
114,979
7,504
3,442,304

$7,701,621
6,678,604
3,118,921
8,651,075
527,758
88,921
49,264
3,014,426

$11,919,059
7,575,081
2,475,102
9,779,727
600,424
120,096
387,519
5,945,879

$44,226,797
25,382,308
5,048,527
23,749,636
1,125,294
596,501
4,529,451
16,054,111

303,436,774
3,589,367
299 847 407
3,808,381

355,018
2,618
352 400
232

2,104,929
16,855
2.088.074
1,722

13,237,595
120,895
13.116.700
19,914

42,822,954
424,067
42.398.887
94,673

31,992,539
358,668
31.633.871
144,610

43,404,249
502,003
42.902.246
482,244

169,519,490
2,164,261
167.355,229
3,064,986

9,879,953
1,722,984

25,890
477

88,042
2,801

465,026
22,146

1,598,651
112,209

1,216,330
121,074

1,657,713
233,289

4,828,301
1,230,988

1,777,388
5,086,708
19,076,586
583.349,025

0
43
6.119
798,112

7
407
29,032
4,289,799

1 096
1,227
205,119
26,271,160

7,959
16,124
979.248
83,078,670

9,452
17,590
806,094
63,779,611

19,543
110,854
1,247,512
85,456,288

1,739,331
4,940,463
15,803,462
319,675,385

147,018,169

252,912

1,290,839

7,319,960

22,084,943

16,569,441

23,769,286

75,730,788

242,873,535
2,126,653
38,088,306
5,917,740
27,332,987
6,051.345
469,408,735
188,175,050
281,233,685

317,757
4,047
76,214
0
7,826
9.400
668,156
295,636
372,520

2,105,613
26,406
353,634
543
11,662
36.597
3,825,294
1,493,105
2,332,189

13,772,201
145,618
2,188,424
811
82,196
237.966
23,747,176
8,551,793
15,195,383

43,904,360
446,040
6,865,447
82
571,752
711.763
74,584,387
25,694,665
48,889,722

31,130,407
300,960
5,509,045
6,666
1,912,689
531.313
55,960,521
20,584,209
35,376,312

35,149,960
362,262
7,110,794
34,308
4,520,686
756.619
71,703,915
30,651,765
41,052,150

116,493,237
841,320
15,984,748
5,875,330
20,226,176
3.767.687
238,919,286
100,903,877
138,015,409

51,678,941
2,741,434
406,112

1,605
640
286

19,594
3,265
812

167,961
18,529
3,857

1,064,042
73,772
39,563

2,217,867
55,896
26,631

6,316,953
197,893
84,686

41,890,919
2,391,439
250,277

5,140,675
9.921.683
539 297 580
2,726,628

43
4.075
674 805
235

407
20,352
3.869J24
2,875

1,227
171,512
24.110.262
42,426

16,147
802,453
76.580.364
247,448

17,601
660,562
58.939.078
264,211

110,890
990,830
79.405,167
429,074

4,994,360
7,271,899
295,718.180
1,740,359

18,754
9 106,275
15,853,738
15,271,833
1,074,217
41,324,817

0
45 894
43,105
32,298
1,775
123,072

0
117 823
124,823
160,832
13,722
417,200

1,101
451,098
652,932
918,036
95,305
2,118,472

6,450
1,376,487
2,172,495
2,447,187
248,239
6,250,858

1,979
1,063,638
1,722,220
1,659,594
128,891
4,576,322

8,824
1,332,372
2,214,243
1,951,726
114,882
5,622,047

400
4,718,963
8,923,920
8,102,160
471,403
22,216,846

583,349,025
7,416,516

798,112
356

4,289,799
1,965

26,271.160
22,117

83,078,670
136,542

63.779,611
194,577

85,456,288
495,292

319,675,385
6,565,667

68,226,974

38,941

173,345

1,315,516

5,707,670

5,842,115

9,851,985

45,297,402

Liabilities

Demand deposits of individuals, partnerships and corporations . . . .
Time and savings deposits of individuals, partnerships and corportions
Deposits of U.S. government
Deposits of states and political subdivisions
Deposits of foreign governments and official institutions
Deposits of commercial banks
Certified and officers' checks
Total deposits
Total demand deposits
Total time and savings deposits
Federal funds purchased and securities sold under agreements to
repurchase
Liabilities for borrowed money
Mortgage indebtedness
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures

$25 to $100
million

Less than
$5 million

All national
banks

Table B-25
Ratios of classified assets to total loans for National banks, deposit size category, under $100 million
Latest examination in—

0-.9
1-1.9. ..
2-2.9....
3-3.9
4-4.9
5-5.9
6-6.9
7-7.9
8 and over
Total

Number of Perbanks cent

Number of
banks

Percent

Number of
banks

47.9 1,779
21.8
971
11.1
561
7.3
354
4.1
219
2.5
135
1.5
89
1.1
62
2.7
142
100.0 4,312

100.0 4,241

1972

Percent

Number of
banks

7974

7973

Percent

Number of
banks

Percent

Number of
banks

43.5 2,004
958
23.8
579
14.4
7.4
288
4.3
161
2.3
80
1.4
48
1.1
28
1.9
73

100.0 4,230 100.0 4,219

100.0 4,245

40.5 1,840
22.3 1,005
608
14.1
313
8.6
183
5.5
97
2.8
59
1.8
45
1.2
80
3.2

7976

7975

Percent

Number of
banks

Percent

Number of
banks

Percent

32.0 1,214
878
21.4
666
15.3
415
9.0
7.2
318
4.6
203
2.8
139
1.9
64
5.6
242

29.3
21.2
16.1
10.0
7.7
4.9
3.4
1.6
5.9

100.0 4,235 100.0 4,139

100.0

41.0 1,357
907
22.6
649
14.3
382
8.8
306
4.6
196
3.0
120
1.7
80
1.1
238
2.9

47.5 1,741
960
22.7
606
13.7
6.8
372
3.8
196
1.9
127
1.1
70
0.7
48
1.7
125

41.3 1,717
945
22.5
599
13.0
363
8.2
235
5.1
118
3.1
77
2.1
50
1.4
137
3.3

2,099
953
488
321
180
108
65
48
118
4,380

7977

7970

7969
Classified
assets as a
percent of
total loans

NOTE: Previous years have been revised.

Table B-26
Ratios of classified assets to total loans for National banks, deposit size category, $100 million and over
Latest examination in—
7970

7969
Classified
assets as a
percent of
total loans

Number of
banks

Percent

0-.9
1-19
. .
2-2 9 .. .
3-39 .
4-4.9
5-5.9
6-6 9
7-79 .
8 and over

159
76
49
9
7
5
2
1
3

51.1
24.4
15.8
2.9
2.3
1.6
0.6
0.3
1.0

Total

311

100.0

Number of
banks
99
84
64
26
16
14
8
1
8

1972

1971

Percent
30.9
26.3
20.0
8.1
5.0
4.4
2.5
0.3
2.5

320 100.0

Number of
banks
119
92
67
37
21
10
6
4
10

Percent
32.5
25.1
18.3
10.1
5.7
2.7
1.6
1.1
2.7

366 100.0

Number of
banks
152
89
80
29
12
13
5
3
6

7974

1973

Percent
39.1
22.9
20.6
7.5
3.1
3.3
1.3
0.8
1.5

389 100.0

Number of
banks
164
129
77
30
16
8
4
2
6

Percent

Number of
banks

7975

Percent

37.6
29.6
17.7
6.9
3.7
1.8
0.9
0.5
1.4

116
108
88
53
33
26
8
8
24

25.0
23.3
19.0
11.4
7.1
5.6
1.7
1.7
5.2

436 100.0

464

100.0

Number of
banks
67
88
88
56
37
35
22
21
83

7976

Percent
13.5
17.7
17.7
11.3
7.4
7.0
4.4
4.2
16.7

497 100.0

Number of
banks
66
98
85
54
53
32
20
13
99

Percent
12.7
18.9
16.4
10.4
10.2
6.2
3.6
2.5
19.0

520 100.0.

NOTE: Previous years have been revised.




161

Table B-27
Total income and expenses of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976
(Dollar amounts in thousands)

Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
.
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U S Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges commissions and fees
....
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
. .
.
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses) gross
Applicable income taxes (domestic and foreign)
Securities gains (losses) net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income




Total,
Total,
U.S. and
United States
other areas
4,737
4,735

Alabama

Alaska

Arkansas

Arizona

California

97

6

3

73

58

$31,031,046
2,946,656

$31,030,070
2,946,577

$345,862
4,428

$64,635
1,189

$276,529
1,895

$179,267
1,611

$5,255,006
921,743

1,229,182
3,193,274
1,210,149
2,801,076
492,072
62,149
408,438
1,029,203
911,467
1,441,484
1,265,214

1,228,953
3,192,927
1,210,032
2,800,801
492,072
62,147
408,438
1,029,203
911,403
1(441t406
1,265,211

11,914
34,546
23,564
53,931
1,674
582
1,117
11,776
17,815
18,689
8,662

2,030
3,505
3,916
9,552
242
156
484
1,037
5,016
4,960
1,386

11,672
33,979
10,257
21,593
657
297
286
9,716
17,337
5,817
7,850

11,925
19,494
11,860
26,823
961
290
731
3,209
9,240
7,032
8,850

161,019
399,103
164,915
188,879
82,285
12,529
151,911
114,575
163,538
284,257
162,171

48,021,410

48,019,240

534,560

98,108

397,885

281,293

8,061,931

8,575,522

8,574,895

110,035

30,889

102,728

57,365

1,412,190

4,327,891
5,962,140
10,595,809

4,326,857
5,962,140
10,595,325

50,830
20
148,429

7,618
0
15,282

27 511
994
136,427

25,017
0
83,568

623,900
1,734.528
1,713,474

2,268,120
454,745
179,190
1,548,312
1,015,489
2,250,427
4,925,748

2,268,120
454,745
179,190
1,548,139
1,015,444
2,249,457
4,925,197

16,286
4,337
2,022
16,265
15,044
19,996
72,048

2,040
30
48
4,849
4,108
1,102
11,912

8,808
7
4,982
20,494
10,461
9,396
43,320

9,664
251
1,723
12,069
10,375
5,811
36,470

249,429
38,927
27,586
246,215
128,266
314,248
613,420

42,103,393

42,099,509

455,312

77,878

365,128

242,313

7,102,183

5,918,017
1,436,755
4,481,262

5,919,731
1,436,755
4,482,976

79,248
11,548
67,700

20,230
5,175
15,055

32,757
3,422
29,335

38,980
4,866
34,114

959,748
399,004
560,744

168,493
72,596

168,470
72,596

1,256
455

258
112

144
74

1,664
596

5,338
2,492

95,897
4,577,159
13,891

95,874
4,578,850
13,891

801
68,501
650

146
15,201
0

70
29,405
0

1,068
35,182
6

2,846
563,590
1,270

4,591,050

4,592,741

69,151

15,201

29,405

35,188

564,860

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)

36,493,171
4,591,050
352,001
206,930
-1,820,000
-1,088
-73
1,502,734

36,491,765
4,592,741
348,833
206,930
-1,820,000
-1,088
-73
1,503,824

487,535
69,151
4,804
648
-23,786
0
1
7,341

70,799
15,201
4,607
0
-1,306
0
0
1,737

249,769
29,405
78
0
-12,359
0
0
10,121

256,824
35,188
1,038
0
-7,647
0
0
7,271

3,798,945
564,860
65,410
305
-230,143
0
0
578,944

Equity capital, end of period

41,324,725

41,322,932

545,694

91,038

277,014

292,674

4,778,321

3,541,243
439,352
20,557
2,250,427
-2.544,934

3,540,243
439,262
20,557
2,249,457
-2,543,518

42,201
6,070
97
19,996
-21,484

6,222
1,012
0
1,102
-1,893

23,333
2,570
0
9,396
-11.385

18,265
2,852
0
5.811
-7,584

482,011
51,471
1,215
314,248
-315,237

3,706,645

3,706,001

46,880

6,443

23,914

19,344

533,708

11.50

11.64

13.24

18.87

11.05

12.59

13.16

87.68

87.67

85.18

79.38

91.77

86.14

88.10

Reserve for possible loan losses, beginning of period
Recoveries credited to reserve
Changes incident to mergers and absorptions
Provision for possible loan losses
Losses charged to reserve
Reserve for possible loan losses, end of period
Ratios:
Net income before dividends to average equity capitalf (percent)
Total operating expense to total operating income (percent)
See footnotes at end of table.




Table B-27—Continued
Total income and expenses of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976
(Dollar amounts in thousands)
Colorado

Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
.'

Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income




District of
Columbia

Delaware

Florida

Georgia

Hawaii

132

Number of banks

Total operating income

Connecticut
23

5

15

306

64

2

$340,233
860

$198,525
10,890

$3,515
0

$189,938
20,396

$673,119
16,023

$425,326
14,716

$8,586
9

14,263
29,914
10,855
35,078
584
507
3,171
18,751
17,415
17,633
11,968

4,341
14,653
7,602
18,675
6,105
448
2,657
17,151
5,558
8,944
8,917

196
545
191
159
28
4
0
0
105
77
52

14,173
34,339
6,691
21,421
1,275
354
2,092
14,048
9,217
5,827
4,199

48,835
152,942
60,707
105,974
7,630
1,668
5,005
38,831
35,485
32,930
24,486

16,645
27,070
8,746
30,658
2,330
2,165
3,605
19,310
26,958
18,611
35,058

179
1,213
703
144
0
13
0
0
1
1,286
22

501,232

304,466

4,872

323,970

1,203,635

631,198

12,156

110,796

79,395

1,003

75,404

232,292

149,639

3,354

44,810
288
118,379

22,065
3,813
70,886

85
0
1,983

19,786
23,372
62,647

99,448
1,003
362,381

56,903
11,920
100,604

2,097
0
2,952

17,332
1,886
2,312
19,880
14,700
19,272
84,494

16,149
891
638
16,748
11,612
26,033
40,777

0
9
14
185
128
59
731

11,393
667
724
13,542
8,988
12,339
38,408

40,157
989
2,438
40,531
32,816
71,642
239,413

47,223
13,058
4,495
24,016
20,088
54,302
95,939

60
0
75
824
345
948
2,151

434,149

289,007

4,197

267,270

1,123,110

578,187

12,806

67,083
14,019
53,064

15,459
-549
16,008

675
213
462

56,700
17,466
39,234

80,525
-2,467
82,992

53,011
5,776
47,235

-650
14
-664

1,727
808

1,199
580

13
3

2,660
1,322

12,706
5,008

2,049
630

261
0

919
53,983
122

619
16,627
31

10
472
0

1,338
40,572
171

7,698
90,690
105

1,419
48,654
-47

261
-403
0

54,105

16,658

472

40,743

90,795

48,607

-403

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)

410,985
54,105
3,887
0
-20,245
0
0
10,213

253,816
16,658
636
114
-12,070
0
0
3,852

4,773
472
195
0
-153
0
0
88

359,760
40,743
1,456
0
-17,054
-169
0
4,569

1,294,404
90,795
1,482
16,250
-50,121
-60
0
21,957

561,096
48,607
7,366
0
-28,978
0
0
5,172

7,869
-403
0
0
0
0
0
200

Equity capital, end of period

458,945

263,006

5,375

389,305

1,374,707

593,263

7,666

Reserve for possible loan losses, beginning of period
Recoveries credited to reserve
Changes incident to mergers and absorptions
Provision for possible loan losses
Losses charged to reserve

33,479
4,469
222
19,272
-21,054

22,951
3,339
736
26,033
-29,628

140
3
0
59
-48

29,040
2,158
0
12,339
-14,208

90,582
15,937
6,878
71,642
-97,033

59,717
9,587
0
54,302
-67,550

652
73
0
948
-692

36,388

23,431

154

29,329

88,006

56,056

981

12.43

6.41

9.33

11.39

6.75

8.46

-5.08

86.62

94.92

86.15

82.50

93.31

91.60

105.35

Reserve for possible loan losses, end of period
Ratios:
Net income before dividends to average equity capitalt (percent)
Total operating expense to total operating income (percent)
See footnotes at end of table.

en




Table B-27—Continued
Total income and expences of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976
(Dollar amounts in thousands)
Idaho
Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
,
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income




Illinois
425

Indiana
120

Iowa

Kansas
100

169

Kentucky

Louisiana

82

54

$143,887
618

$2,697,593
342,558

$552,363
17,839

$203,613
1,541

$212,295
298

$228,173
4,077

$307,316
7,039

2,030
13,319
4,531
13,355
184
238
964
1,414
6,547
4,150
1,448

79,211
330,106
138,143
254,829
48,670
7,086
11,177
99,628
42,762
95,216
132,295

33,718
100,717
41,578
74,656
9,354
949
10,557
20,653
20,715
23,610
12,143

13,094
24,756
15,312
26,879
1,577
263
211
6,763
5,575
10,298
3,408

15,731
33,611
18,442
31,747
745
412
1,165
5,878
7,854
10,613
4,446

15,413
33,753
10,167
31,263
228
350
4,920
3,843
6,285
11,242
4,212

22,992
72,743
14,186
44,509
785
746
2,954
5,771
14,933
17,684
4,827

192,685

4,279,274

918,852

313,290

343,237

353,926

516,485

39,390

576,183

164,766

54,696

64,347

67,179

93,924

15,602
0
64,664

526,972
657,724
817,424

84,723
8,711
284,127

14,459
0
122,826

30,052
0
109,253

28,097
2,871
106,558

82,313
2,452
110,973

3,001
7
628
5,345
4,940
3,984
22,432

375,724
29,210
6,050
102,654
74,359
252,476
328,959

61,217
1,914
595
31,835
25,581
39,835
101,700

11,789
207
1,616
9,479
7,148
3,510
39,170

10,494
1,242
1,519
10,486
10,384
8,211
39,712

12,175
526
479
11,912
10,746
9,497
43,227

25,460
646
1,395
18,328
19,627
19,620
63,560

159,993

3,747,735

805,004

264,900

285,700

293,267

438,298

32,692
9,?330
23,362

531,539
133,163
398,376

113,848
16,329
97,519

48,390
9,793
38,597

57,537
12,514
45,023

60,659
11,935
48,724

78,187
16,236
61,951

-185
-94

34,170
15,255

7,536
3,442

1,218
553

1,916
633.

684
83

5,993
1,150

-91
23,271
3

18,915
417,291
2,878

4,094
101,613
-26

665
39,262
275

1,283
46,306
163'

601
49,325
53

4,843
66,794
2,139

23,274

420,169

101,587

39,537

46,469i

49,378

68,933

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)

140,080
23,274
0
0
-7,401
0
0
4,153

3,074,759
420,169
19,061
1,083
-141,663
-95
0
178,960

838,249
101,587
3,636
2,672
-38,982
0
0
11,903

266,175
39,537
1,662
0
-11,315
0
0
10,162

376,816
46,469
1,245
24
-13,483
0
0
6,028

314,912
49,378
2,330
445
-11,162
0
0
13,453

520,914
68,933
3,863
0
-17,384
-89
0
17,117

Equity capital, end of period

160,106

3,552,274

919,065

306,221

417,099

369,356

593,354

Reserve for possible loan losses, beginning of period ..
Recoveries credited to reserve
Changes incident to mergers and absorptions
Provision for possible loan losses
Losses charged to reserve

11,572
2,191
0
3,984
-4,137

393,384
28,071
1,335
252,476
-289,773

69,285
9,770
1,051
39,835
-39,621

20,974
1,874
11
3,510
-5,709

23,254
4,113
70
8,211
-10,511

24,336
3,045
40
9,497
-11,248

42,899
6,680
0
19,620
-28,072

13,610

385,493

80,320

20,660

25,137

25,670

41,127

15.36

12.60

11.50

13.71

11.57

14.27

12.25

83.03

87.58

87.61

84.55

83.24

82.86

84.86

Reserve for possible loan losses, end of period ..
Ratios:
Net income before dividends to average equity capitalt (percent)
Total operating expense to total operating income (percent)
See footnotes at end of table.

i




CO

Table B-27—Continued
Total income and expences of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976
(Dollar amounts in thousands)
Maine
Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
Total operating income

Maryland

Massachusetts

Michigan

17

41

75

122

$55,431
120

$275,900
1,709

$681,748
138,470

$985,639
61,599

3,668
4,886
2,037
5,970
84
75
0
2,320
2,014
2,321
1,000

13,938
21,064
7,816
26,219
561
329
3,782
5,429
11,688
7,831
14,061

19,223
80,210
13,415
44,388
35,064
1,407
22,888
52,299
16,150
55,447
28,986

79,926

390,327

19,102

Minnesota

203

Mississippi

Missouri

38

115

$522,835
13,340

$151,876
2,544

$394,637
15,854

43,717
119,641
33,228
113,091
11,095
1,729
3,230
35,703
30,398
25,373
19,145

21,483
56,414
29,802
63,639
2,059
918
5,859
23,973
13,219
28,900
47,629

7,034
18,441
5,967
20,822
516
353
81
2,404
8,787
8,559
7,746

52,671
45,641
23,411
54,894
1,112
783
5,575
23,913
8,203
23,654
23,664

1,189,695

1,483,588

830,070

235,130

674,012

87,023

244,767

283,791

138,815

45,711

123,137

4,066
0
25,629

32,946
6,754
109,697

115,687
204,688
139,890

101,492
77,600
512,811

69,648
11,192
245,180

30,722
0
58,141

68,761
6,622
140,814

Operating expenses:
Salaries and employee benefits
Interest on time certificates .of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses

1,444
3
134
3,694
2,533
2,635
10,604

19,011
579
472
16,528
11,287
15,644
46,777

70,982
32,683
3,292
50,093
26,485
77,601
126,113

47,646
608
8,635
51,049
34,987
41,763
140,067

60,429
10,501
8,302
20,195
15,018
26,275
99,968

9,247
39
545
8,470
8,081
10,195
29,841

80,315
1,419
1,436
18,864
18,347
23,929
84,017

69,844

346,718

1,092,281

1,300,449

705,523

200,992

567,661

Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses

10,082
1,858
8,224

43,609
6,200
37,409

97,414
30,002
67,412

183,139
28,633
154,506

124,547
31,502
93,045

34,138
5,603
28,535

106,351
23,861
82,490

477
238

845
209

8,074
4,129

-714
-503

1,132
323

748
124

2,495
1,092

239
8,463
-53

636
38,045
-15

3,945
71,357
-40

-211
154,295
237

624
29,159
609

1,403
83,893
33

8,410

38,030

71,317

154,532

809
93,854
161
94,015

29,768

83,926

Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect

Net income




68,834
8,410
832
718
-4,561
0
0
1,297

330,039
38,030
578
566
-11,588
0
0
7,158

887,809
71,317
245
0
-37,712
0
0
31,435

1,325,990
154,532
9,605
420
-67,137
-6
0
49,459

744,917
94,015
16,113
0
-34,682
0
0
18,953

207,593
29,768
158
3,125
-9,670
0
0
4,551

676,709
83,926
5,026
0
-44,180
-248
0
14,792

Equity capital, end of period

75,530

364,783

953,094

1,472,863

839,316

235,525

736,025

Reserve for possible loan losses, beginning of period
Recoveries credited to reserve
Changes incident to mergers and absorptions . . . .
Provision for possible loan losses
Losses charged to reserve

6,640
1,205
105
2,635
-4,822

27,108
3,610
55
15,644
-18,617

76,004
16,272
-272
77,601
-89,949

110,627
11,045
112
41,763
-49,526

58,627
3,559
85
26,275
-26,832

17,450
3,596
206
10,195
-13,521

51,640
6,540
506
23,929
-25,084

Reserve for possible loan losses, end of period

5,763

27,800

79,656

114,021

61,714

17,926

57,531

Ratios:
Net income before dividends to average equity capitalf (percent) ..

11.24

10.85

7.65

10.92

9.53

13.28

11.77

87.39

88.83

91.81

87.66

85.00

85.48

84.22

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)

Total operating expense to total operating income (percent)
See footnotes at end of table.

CO




Table B-27—Continued
Total income and expenses of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1975
(Dollar amounts in thousands)
Montana
Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income




Nebraska

Nevada

New
Hampshire

New Jersey

43

104

38

129

$728,902
20,981

$108,456
1,861

$5,974,143
815,701

6,190
10,835
8,453
14,141

2,313
5,537
6,151
1,403

45,552
237,642
58,245
228,326
187,367
7,687
75,280
136,858
60,419
327,782
338,719

New Mexico

New York

56

120

4

$105,562

$220,157

$68,895

$65,607

420

649

233

953

3,218
10,087
4,271
13,563

9,381
21,906
13,568
27,607

2,539
11,732
6,265
7,639
1,354

1,556
8,485
1,317
7,093

3,438
4,895
1,133

4,095
8,679
5,872
15,120
5,714

1,437
1,949
5,811
1,774
1,536

2,247
2,745
1,886
843

25,029
110,690
58,568
122,056
30,666
1,466
6,568
19,900
28,143
24,741
16,429

148,147

333,800

111,263

92,959

1,194,139

165,868

8,493,721

24,695

63,175

25,984

21,865

260,464

33,708

1,328,444

8,492

18,921

13,252

8,246

0

0

0

59,085

107,783

24,804

24,372

65,035
7,139
432,908

25,131

0

689,649
2,610,087
692,199

2,022

283
70
0

1,666

3,627
3,162
5,042
19,219

10,349
3,312
1,617
12,085
10,789
11,551
40,862

5,064
2,204
2,106
14,055

126,398

280,444

21,749
3,642
18,107
257
8

235
181
380
764

103
951

744
308

99

102
110
15

0

44,964

4,863
2,740
3,811
16,220

23,885
3,068
3,951
57,224
35,307
38,490
144,504

1,114
6,741
5,547
8,516
20,781

270,746
255,431
19,150
264,051
103,540
590,930
690,809

87,822

83,888

1,071,975

149,449

7,515,036

53,356
9,387
43,969

23,441
7,363
16,078

9,071

122,164
-467
122,631

16,419
2,078
14,341

978,685
333,405
645,280

619
211

-70
-33

4,130
1,498

1,180

25,886
16,017

23
82

742

8,329
1,208
465

249

408

-37

18,356

44,377

16,041

9,072
219 *

18,373

44,553

16,041

9,291

17

164
197
167

176

0

743

2,632
125,263

2,885
62

415
765

346

15,106
-393

125,609

14,713

9,869
655,149
527

655,676

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)

117,423
18,373
913
0
-6,199
0
0
4,031

295,673
44,553
564
0
-16,169
-6
-75
7,976

103,125
16,041
0
0
-4,567
0
0
3,242

98,122
9,291
19
0
-3,913
0
0
1,395

1,107,050
125,609
369
23,342
-63,316
-2
0
23,103

136,820
14,713
5,698
0
-6,216
-23
0
2,040

5,552,322
655,676
44,343
124,913
-270,137
-5
0
123,896

Equity capital, end of period

134,541

332,516

117,841

104,914

1,216,155

153,032

6,231,008

Reserve for possible loan losses, beginning of period
Recoveries credited to reserve
Changes incident to mergers and absorptions
Provision for possible loan losses
Losses charged to reserve

10,524
1,796
0
5,042
-6,344

29,716
3,111
0
11,551
-17,998

7,350
1,021
0
2,106
-2,186

6,785
692
8
3,811
-4,337

105,075
11,126
2,160
38,490
-48,944

12,927
2,435
0
8,516
-10,477

594,833
87,543
1,967
590,930
-643,131

11,018

26,380

8,291

6,959

107,907

13,401

632,142

14.33

14.02

14.54

9.08

10-61

10.08

11.01

85.32

84.02

78.93

90.24

89.77

90.10

88.48

Reserve for possible loan losses, end of period
Ratios:
Net income before dividends to average equity capitalt (percent)
Total operating expense to total operating income (percent)
See footnotes at end of table.




Table B-27—Continued
Total income and expenses of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976
(Dollar amounts in thousands)
North Carolina North Dakota
Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income



Oklahoma

Ohio

Oregon

Pennsylvania

Rhode Island

237

28

43

219

$475,696
37,920

$79,624
137

$976,826
44,096

$362,875
2,651

$295,020
19,116

$1,833,243
139,894

$148,771
1,949

25,862
36,603
27,480
57,234
2,045
724
6,929
23,233
21,809
20,143
30,997

1,767
8,874
4,346
10,610
97
107
0
1,893
2,226
3,418
1,220

52,345
193,747
34,232
167,644
8,541
2,363
10,157
43,182
44,794
41,988
30,604

27,236
61,508
7,392
65,198
1,942
810
2,170
10,181
14,508
12,513
16,111

12,779
23,828
13,515
36,675
474
393
2,828
10,853
19,683
19,960
6,051

96,535
229,719
93,453
175,976
21,343
5,597
17,148
80,099
25,234
49,908
100,589

3,148
14,278
3,485
10,333
1,555
287
2,793
10,094
3,402
4,248
10,149

766,675

114,319

1,650,519

585,095

461,175

2,868,738

214,492

165,315

19,055

314,208

103,531

103,808

495,614

40,279

60,087
41,038
175,408

3,375
0
50,051

101,652
11,859
520,351

94,636
359
145,109

28,809
10,579
123,022

293,557
206,993
738,905

22,375
8,558
61,579

47,869
725
10,186
32,608
19,297
24,584
90,298

590
213
698
2,831
2,178
1,014
12,153

85,969
964
2,451
54,706
41,803
54,297
196,248

21,985
1,041
4,083
13,594
15,356
35,813
73,822

30,118
489
7,482
16,297
11,085
7,895
50,807

213,586
28,993
16,719
94,382
61,220
134,244
262,079

7,249
329
314
7,439
3,334
10,062
26,022

667,415

92,158

1,384,508

509,329

390,391

2,546,292

187,540

99,260
18,771
80,489

22,161
5,517
16,644

266,011
43,206
222,805

75,766
1,938
73,828

70,784
18,195
52,589

322,446
33,814
288,632

26,952
7,947
19,005

138
-33

70
28

3,012
1,148

4,313
1,317

-1,289
-658

10,335
4,477

432
164

171
80,660
601

42
16,686
46

1,864
224,669
186

2,996
76,824
939

-631
51,958
0

5,858
294,490
221

268
19,273
0

81,261

16,732

224,855

77,763

51,958

294,711

19,273

195

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)

598,423
81,261
709
8,362
-26,609
0
0
15,484

94,800
16,732
200
0
-5,357
0
0
3,704

1,676,246
224,855
17,682
16,812
-98,906
0
0
35,322

588,123
77,763
3,253
0
-24,951
-45
0
7,802

332,192
51,958
10
0
-21,823
0
0
10,587

2,483,277
294,711
12,157
4,019
-136,048
-69
0
51,734

182,000
19,273
0
0
-10,947
0
0
11,867

Equity capital, end of period

677,630

110,079

1,872,011

651,945

372,924

2,709,781

202,193

58,124
6,209
963
24,584
-27,122

9,194
338
0
1,014
-1.559

123,834
18,725
1,021
54,297
-60,237

37,464
9,830
15
35,813
-41,312

27,070
2,318
0
7,895
-8,721

255,379
16,044
444
134,244
-156.122

15,648
1,690
0
10,062
-12,301

62,758

8,987

137,640

41,810

28,562

249,989

15,099

12.68

16.18

12.56

12.47

14.58

11.22

10.01

87.05

80.61

83.88

87.05

84.65

3.76

87.43

Reserve for possible loan losses, beginning of period ..
Recoveries credited to reserve
Changes incident to mergers and absorptions
Provision for possible loan losses
Losses charged to reserve
Reserve for possible loan losses, end of period
Ratios:
Net income before dividends to average equity capitalt (percent)
Total operating expense to total operating income (percent)
See footnotes at end of table.




Table B-27—Continued
Total income and expenses of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976

(Dollar amounts in thousands)
South Carolina South Dakota
Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to t
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income




Tennessee

Texas

Utah

Vermont

Virginia

19

32

74

596

13

14

108

$129,004
698

$110,047
669

$386,943
11,924

$1,764,099
186,115

$109,404
1,042

$24,282
62

$511,969
8,640

5,742
12,653
7,139
16,786
66
201
170
4,948
11,780
6,660
4,580

2,210
10,080
5,542
14,863
520
168
453
1,709
3,438
4,703
1,242

24,062
50,940
22,609
39,424
2,288
761
2,190
12,522
18,208
26,643
14,025

144,654
238,584
91,977
264,033
10,055
3,022
7,436
65,376
63,510
58,566
43,427

3,726
11,110
3,688
8,850
37
173
1,702
2,705
5,106
5,223
2,717

756
2,370
752
2,349
311
28
19
260
950
338
545

18,004
50,586
21,780
62,942
913
934
648
16,773
14,110
19,845
12,980

200,427

155,644

612,539

2,940,854

155,483

33,022

740,124

60,395

24,832

121,937

452,922

27,805

7,167

144,610

3,472
0
45,882

8,386
0
67,813

71,980
5,037
167,489

418,265
239,246
604,661

22,076
0
38,501

528
0
14,304

49,613
1,490
244,297

6,509
231
607
8,362
8,724
8,689
29,589

737
61
1,266
4,138
2,959
1,476
15,597

27,210
750
1,764
22,861
20,164
56,646
78,994

185,977
10,720
9,900
70,327
62,706
98,253
329,002

4,900
688
1,411
4,588
5,916
3,834
18,799

111
6
145
1,297
929
752
3,825

17,178
336
3,379
26,710
20,465
25,582
129,884

172,460

127,265

574,832

2,481,979

128,518

29,064

663,544

27,967
4,110
23,857

28,379
6,602
21,777

37,707
-103
37,810

458,875
90,605
368,270

26,965
8,594
18,371

3,958
581
3,377

76,580
3,054
73,526

186
9

287
144

8,972
4,419

5,608
346

-262
-135

-36

1,975
682

177
24,034
0

143
21,920
103

4,553
42,363
-75

5,262
373,532
1,572

-127
18,244
35

44
3,421
99

1,293
74,819
121

24,034

22,023

42,288

375,104

18,279

3,520

74,940

Equity capital, beginning of period
Net income (loss)
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock
Cash dividends declared on preferred stock
Stock dividends issued
Other increases (decreases)
Equity capital, end of period
Reserve for possible loan losses, beginning of period
Recoveries credited to reserve
Changes incident to mergers and absorptions . . . .
Provision for possible loan losses
Losses charged to reserve
Reserve for possible loan losses, end of period
Ratios:
Net income before dividends to average equity capitalf (percent)
Total operating expense to total operating income (percent)
See footnotes at end of table.




198,834
24,034
5
0
-8,678
0
0
4,314

118,432
22,023
300
2,553
-7,041
0
0
2,271

516,587
42,288
17,591
0
-16,933
0
0
4,767

2,557,076
375,104
78,630
475
-139,596
0
0
97,348

108,463
18,279
1,000
0
-6,717
0
0
3,260

27,405
3,520
15
0
-1,441
0
0
804

652,620
74,940
2,293
3,905
-32,396
0
0
15,273

218,509

138,538

564,300

2,969,037

124,285

30,303

716,635

13,941
2,005
0
8,689
-8,629

13,485
1,507
330
-3,850

54,814
15,248
0
56,646
-74,634

218,066
33,044
331
98,253
-118,604

9,022
945
0
3,834
-3,726

2,460
187
0
752
-870

53,698
8,726
855
25,582
-31,341

16,006

12,948

52,074

231,090

10,075

2,529

57,520

11.47

16.85

7.39

13.37

15.56

11.89

10.85

86.05

81.77

93.84

84.40

82.66

88.01

89.65

1,47(5

l

Table B-27—Continued
Total income and expenses of foreign and domestic offices and subsidiaries of national
banks*, United States and other areas, year ended December 31, 1976
(Dollar amounts in thousands)
Washington
Number of banks
Operating income:
Interest and fees on loans
Interest on balances with banks
Income on Federal funds sold and securities purchased under agreements to
resell in domestic offices
U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes and debentures
Dividends on stock
Income from direct lease financing
Income from fiduciary activities
Service charges on deposit accounts in domestic offices
Other service charges, commissions and fees
Other income
Total operating income
Operating expenses:
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more, issued by domestic
offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of Federal funds purchased and securities sold under agreements to
repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses
Income before income taxes and securities gains or losses
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes (domestic and foreign)
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect
Net income




West Virginia

Wisconsin

Wyoming

103

130

46

$578,976
18,825

$158,059
2,210

$366,085
28,196

$73,578
269

38,821
34,360
9,287
46,891
921
687
16,315
18,107
33,483
27,629
21,084

16,249
30,933
22,514
32,210
1,109
331
1,255
3,980
2,997
4,982
2,853

18,623
56,378
17,580
39,259
3,193
760
3,554
11,307
8,346
19,455
20,331

845,386

279,682

201,276
§3,712
38,240
205,496

Other areas
Puerto Rico Virgin Islands

District of
Columbia
n on-national +

1

1

$976
79

0
0

$1,060
0

1,854
8,394
4,532
9,951
225
102
307
876
3,039
1,874
1,298

152
301
0
275
0
2
0
0
64
55
3

$77
46
117
0
0
0
0
0
0
23
0

111
325
448
527
250
0
0
0
173
40

593,067

106,299

1,907

263

2,942

44,839

102,438

18,608

409

218

856

15,278
0
108,851

46,592
26,963
195,666

8,128
0
36,826

1,034
0
363

0
0
121

239
0
777

46,597
4,143
4,813
31,185
23,337
22,749
96,729

14,496
525
581
6,688
7,460
4,779
31,678

36,168
1,046
3,863
19,167
16,257
25,642
65,975

1,560
780
508
2,754
2,511
2,377
12,016

0
0
0
82
15
970
502

0
0
0
91
30
0
49

1
0
13
97
36
0
453

738,277

235,175

539,777

86,068

3,375

509

2,472

107,109
24,870
82,239

44,507
4,492
40,015

53,290
8,425
44,865

20,231
4,541
15,690

-1,468
0
-1,468

-246
0
-246

470
30
440

242
42

1,366
502

5,687
2,696

516
189

23
0

200
82,439
21

864
40,879
220

2,991
47,856
279

327
16,017
-94

23
-1,445
0

0
-246
0

0
426
0

82,460

41,099

48,135

15,923

-1,445

-246

426

21

-14
0

Equity capital beginning of period
Net income (loss)
. .
Sale, conversion, acquisition or retirement of capital
Changes incident to mergers and absorptions
Cash dividends declared on common stock.
Cash dividends declared on preferred stock . . .
Stock dividends issued
Other increases (decreases)

540,893
82,460
456
-3,821
-21,014
271
0
30,972

307,747
41,099
1,344
0
-10,131
0
1
6,356

479,780
48,135
4,819
0
-22,078
0
0
12,932

87,961
15,923
1,150
0
-4,035
0
0
2,458

1,518
-1,445
3,168
0
0
0
0
-1,175

-112
-246
0
0
0
0
0
85

2,623
426
0
0
-70
0
0
104

Equity capital, end of period

629,675

346,416

523,588

103,457

2,066

-273

3,083

Reserve for possible loan losses, beginning of period
Recoveries credited to reserve
Changes incident to mergers and absorptions
Provision for possible loan losses
Losses charged to reserve

63,837
8,614
-10
22,749
-23,259

21,697
1,588
0
4,779
-6,919

45,597
2,577
20
25,642
-23,255

7,310
831
1
2,377
-2,422

1,000
90
0
970
-1,416

0
0
0
0

13,403
686
0
3,812
-4,832

71,931

21,145

50,581

8,097

644

0

13,069

13.82

12.42

9.51

16.54

-110.31

-13.62

15.10

87.33

84.09

91.01

80.97

176.98

193.54

84.02

Reserve for possible loan losses, end of period . .
Ratios:
Net income before dividends to average equity capitalt (percent) . . .
Total operating expense to total operating income (percent)

* Includes all banks operating as national banks at year-end, with full-year data for state chartered banks that converted to national banks during the year.
tThis is an average of five periods beginning with December 31,1975. The 1975 figure is not identical in definition with the four figures from 1976 because of
major reporting changes instituted in 1976.
tNon-national banks in the District of Columbia are supervised by the Comptroller of the Currency.




Table B-28
Income and expenses of national banks, by asset size, December 31, 1976
(Dollars in thousands)
Banks with assets of—

Report of income accounts
Number of banks

All
national
banks

Less than
$5 million

$5 to $10
million

$10 to $25
million

$25 to $100
million

$100 to $300
million

$300 to $1,000 $1,000 million
and more
million

4,737

223

563

1,558

1,750

396

162

85

Interest and fees on loans
$31,031,046
Interest on balances with banks
2,946,656
Income on federal funds sold and securities purchased under
agreements to resell in domestic offices
1,229,182
Interest on U.S. Treasury securities
3,193,274
Interest on obligations of other U.S. government agencies and corporations
1,210,149
Interest on obligations of states and political subdivisions of the U.S.
2,801,076
Interest on other bonds notes, and debentures
492,072
Dividends on stock
62,149
Income from direct lease financing
408,438
Income from fiduciary activities
1,029,203
Service charges on deposit accounts in domestic offices
911,467
Other service charges, commissions and fees
1,441,484
Other income
1,265,214

$27,303
617

$174,905
1,754

$1,140,798
13,123

$3,725,346
48,379

$2,752,510
43,988

$3,744,946
54,098

$19,465,238
2,784,697

3,423
8,368

13,502
42,291

65,403
212,906

164,241
598,033

127,694
421,438

211,002
483,718

643,917
1,426,520

3,798
1,942

23,442
17,827
1,243
341
164
5,904

305,426
572,568
41,585
6,606

2,943

120,954
162,385
11,242
1,989
2,624
8,363
61,257
35,249
18,319

56,373

214,333
419,165
37,091
5,240
16,491
98,047
105,602
103,290
69,786

175,314
476,928
42,854
6,835
48,125
183,887
149,739
189,209
111,863

5,854,521

4,414,675

5,878,518

366,882
1,150,261
357,763
41,051
328,616
683,535
413,631
995,510
1,005,368
29,662,989

Total operating income
Salaries and employee benefits
Interest on time certificates of deposit of $100,000 or more issued by
domestic offices
Interest on deposits in foreign offices
Interest on other deposits
Expense of federal funds purchased and securities sold under agreements to repurchase in domestic offices
Interest on borrowed money
Interest on subordinated notes and debentures
Occupancy expense of bank premises, gross
Less: rental income
Occupancy expense of bank premises, net
Furniture and equipment expense
Provision for possible loan losses (or actual net loan losses)
Other expenses
Total operating expenses

294
87
13

2,349
1,921

4,261
562

48,021,410

54,938

301,157

1,854,612

8,575,522

18,486

71,290

371,576

1,099,862

869,238

1,256,160

4,888,910

4,327,891
5,962,140
10,595,809

1,449
0
15,478
139
147
20
3,439
95_
3,344
2,446
1,714
11,164
54,387

8,917
0
109,270
653
265
206
12,384
466
11,918
8,868
9,626
45,196
266,209

75,477
0
724,040
7,206
1,291
3,088
63,127
3,322
59,805
46,843
53,904
242,065
1,585,295

348,052
0
2,256,882
50,881
5,847
16,949
219,631
21,308

365,608
1,302
1,497,633
107,922
4,651
17,602
199,176
35,509

158,323

163166?

145,821
174,754
727,387
5,024,758

118,853
146,784
570,117
3,863,377

600,998
19,650
1,527,885
292,815
17,300
29.462
308,171
66.657
241,514
187,917
262,857
792,248
5,228,806

2,927,390
5,941,188
4,464,621
1,808,504
425,244
111,863
1,07J,725
203.984
869,741
504,741
1,600,788
2,537,571
26,080,561

34,948
6,174
28,774
3,031
674
2,357
31,131
-58

269,317
45,092
224,225
15,607
3,940
11,667
235,892
2,597

829,763
126,818
702,945
35,154
11,104
24,050
726,995
4,661

551,298
62,729
488,569
30,185
13,111
17,074
505,643
2,643

649,712
76,576
573,136
21,602
10,086
11,516
584,652
3,131

3,582,428
1,118,839
2,463,589
62,335
33,586
28,749
2,492,338
1,003

31,073

238,489

731,656

508,286

587,783

2,493,341

2,268,120
454,745
179,190
1,879,653
331.341
1,548,312
1,015,489
2,250,427
4,925,748
42,103,393

5,918,017
1,436,755

Income before income taxes and securities gains or losses .
Applicable income taxes (domestic and foreign)
Income before securities gains or losses
Securities gains (losses), gross
Applicable income taxes
Securities gains (losses), net
Income before extraordinary items
Extraordinary items, net of tax effect

4,481,262
168,493
72,596
95,897
4,577,159
13,891

551
527
24
579
95
484
508
-86

Net income

4,591,050

422




10,817
6,024

12,405
47,118
168,500
107,941

Table B-29
Average assets and equity capital, net income, and dividends of National banks, 1961-1976
(Dollar amounts in millions)
Ratios (percent)

Average capital stock (par value)*

Year

1961
1962
1963
1964
1965
1966
1967 . .
1968 ..
1969
1970
1971
1972
1973
1974
1975
1976

.

Number
of
banks
4,513
4,503
4,615
4,773
4,815
4,799
4,758
4,716
4,669
4,621
4,600
4,614
4,661
4,708
4,744
4,737

Average
total
assets *
$142,456
153,675
164,546
178,483
200,938
226,847
247,136
275,155
303,127
318,718
352,924
397,169
453,761
508,688
536,370
554,666

Preferred

Common

$2
10
24
27
29
29
38
58
60
63
57
43
39
27
13
18

$3,464
3,663
3,862
4,136
4,600
5,036
5,224
5,504
5,983
6,327
6,641
7,132
7,676
8,178
8,550
9,060

Total

$3,466
3,673
3,886
4,163
4,629
5,065
5,262
5,562
6,043
6,390
6,698
7,175
7,715
8,205
8,563
9,078

Average
total
equity
capital*
$11,471
12,289
13,087
14,023
15,304
16,817
17,887
19,291
21,298
22,942
24,679
26,888
29,647
32,391
35,163
39,915

Net income
before
dividends
$1,042
1,069
1,206
1,213
1,387
1,583
1,757
1,932
2,534
2,829
3,041
3,308
3,768
4,044
4,259
4,591

Cash
dividends
on
capital
stock
$486
518
548
593
683
738
796
897
1,068
1,278
1,390
1,310
1,449
1,671
1,821
1,821

Net income
Net income
before
before
dividends to dividends to
average total average total
assets
equity capital
0.73
.70
.73
.68
.69
.70
.71
.70
.84
.89
.86
.83
.83
.79
.79
.83

9.08
8.70
9.22
8.65
9.06
9.41
9.82
10.02
11.90
12.33
12.32
12.30
12.71
12.48
12.11
11.50

Cash
dividends to
net income
before
dividends
46.64
48.46
45.44
48.89
49.24
46.62
45.30
46.43
42.15
45.17
45.71
39.60
38.46
41.32
42.76
39.66

Cash
dividends
to total
equity
capital
4.24
4.22
4.19
4.23
4.46
4.39
4.45
4.65
5.01
5.57
5.63
4.87
4.89
5.16
5.18
4.56

* Prior to 1976 these are averages of data from the reports of condition for the previous December and June and December of the respective years. Beginning with 1976, these are averages of data
from the reports of condition for the previous December and the four calls in the year. Data are not exactly comparable because assets through 1975 are net of reserves on loans and securities and
since then are net of valuation reserves and unearned discount on loans. Also, equity capital for 1976 was reported including certain components of the reserve on loans and securities which were
not reported separately for the years 1969-1975.
NOTE: For earlier data, see Annual Reports of the Comptroller of the Currency, 1938, p. 115, 1963, p. 306 and 1975, p. 160. In the table above, "Average total equity capital" does not include subordinated capital notes or debentures.

CD




Table B-30
Loan losses and recoveries of national banks, domestic offices only, 1961-1976

Year

1961
1962
1963
1964
1965 . . .
1966
1967
1968
1969
1970
1971
1972
1973 . . . .
1974
1975
1976

Total loans,
end of year, net*

Net losses or
recoveries^

$ 67 308,734
75,548,316
83,388,446
95,577,392
116,833,479
126,881,261
136,752,887
154,862,018
168,004,686
173,456,091
190,308,412
226,354,896
266,937,532
292,732,965
287,362,220
299,833,480

$ 112,412
97,617
121,724
125,684
189,826
240,880
279,257
257,280
303,357
601,734
666,190
545,473
731,633
1,193,730
2,047,643r
1,819,748

Ratio of net losses
or net recoveries^
to loans
Percent
0.17
0.13
0.15
0.13
0.16
0.19
0.20
0.17
0.18
0.35
0.35
0.24
0.27
0.41
0.71 r
0.61

* Loans used in all years are net of reserves; and 1976 loans are also net of unearned discount.
f Ratios are based on end-of-year-loans.
r
Restated.
NOTE: For earlier data, see Annual Reports of the Comptroller of the Currency, 1947, p. 100; 1968, p. 233 and 1975, p. 161.


180


Table B-31
Assets and liabilities of domestic operations of national banks, date of last report of
condition, 1961-1976
(Dollar amounts in millions)
Liabilities

Assets
Year
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976

Number
of
banks

Total
assets *

Cash
and due
from banks

Total
securities

Loans,
net*

Other
assets

Total
deposits

4,513
4,503
4,615
4,773
4,815
4,799
4,758
4,716
4,669
4,621
4,600
4,614
4,661
4,708
4,744
4,737

$150,809
160,657
170,233
190,113
219,103
235,996
263,375
296,594
310,263
337,070
372,538
430,768
484,887
529,232
548,170
583,349

$31,078
29,684
28,635
34,066
36,880
41,690
46,634
50,953
54,728
56,040
59,201
67,401
70,724
76,557
78,050
76,078

$49,094
51,706
52,602
54,367
57,310
57,667
69,656
76,872
70,030
84,157
95,949
103,659
104,607
106,931
125,332
135,932

$67,309
75,548
83,388
95,577
116,833
127,454
136,753
154,862
168,005
173,456
190,308
226,355
266,938
292,733
287,362
299,847

$3,328
3,270
5,608
6,103
8,079
9,185
10,332
13,907
17,500
23,416
27,080
33,354
42,619
53,012
57,426
71,492

$135,511
142,825
150,823
169,617
193,860
206,456
231,374
257,884
256,427
283,784
314,212
359,427
395,881
431,225
447,712
469,409

* For years 1961-1975, data are net of securities and loan reserves. 1976 data are net of valuation reserves and unearned discount on loans.
t Includes subordinated capital notes and debentures.

00




Other
liabilities^
$3,424
5,083
5,907
5,922
8,943
12,243
13,506
18,442
31,703
29,571
32,702
43,117
58,072
64,435
63,769
72,615

Total
equity
capital
$11,875
12,750
13,503
14,573
16,300
17,298
18,495
20,268
22,134
23,714
25,623
28,223
30,935
33,572
36,688
41,325

Table B-32
Consolidated assets and liabilities of national banks with foreign operations, December 31, 1976
(Dollar amounts in thousands)
Foreign and
domestic assets
and liabilities

Domestic
assets and
liabilities

Foreign assets
and liabilities
(Column 1
minus column 2)

Assets

Cash and due from banks
Investment securities

$95,419,459
58,482,635

$45,060,605
55,393,861

$50,358,854
3,088,774

25,206,811
5,149,924
23,984,794
4,141,106

25,197,762
5,149,742
23,866,357
1,180,000

9,049
182
118,437
2,961,106

706,452
4,958,619

598,458
4,614,635

107,994
343,984

64,147,706

60,606,954

3,540,752

16,558,193
244,299,335

16,556,595
171,571,382

1,598
72,727,953

2,314,971
241,984,364

2,197,688
169,373,693

117,283
72,610,671

3,703,415

3,109,212

594,203

5,370,781
1,325,549
805,796
6,615,834
8,614,285

4,879,762
1,273,265
1,735,035
4,980,317
15,989,759

491,019
52,284
-929,239
1,635,517
-7,375,474

444,545,381

323,565,198

120,980,183

Liabilities
Deposits:
Total demand deposits, domestic
Total time and savings deposits, domestic
Total deposits in foreign offices

103,280,791
138,885,643
112,836,769

103,280,791
138,885,643
N.A.

N.A.
N.A.
112,836,769

Total deposits in domestic and foreign offices

355,003,203

242,166,434

112,836,769

42,210,653
5,568,103
280,095
6,739,123
10,512,485

42,106,374
2,440,982
272,143
5,034,215
7,316,312

104,279
3,127,121
7,952
1,704,908
3,196,173

420,313,660

299,336,460

120,977,200

1,797,342

1,794,362

2,980

22,434,377

22,434,377

0

444,545,381

323,565,198

120,980,183

U.S. Treasury securities
Obligations of other U.S. government agencies and corporations
Obligations of states and political subdivisions
Other bonds, notes, and debentures
Federal Reserve stock and corporate stock
Trading account securities
Total securities
Federal funds sold and securities purchased under agreements to resell . . . .
Total loans (excluding unearned income)
Reserve for possible loan losses
Loans, net of reserve
Direct lease financing
Bank premises, furniture and fixtures, and other assets representing bank
premises
•.
Real estate owned other than bank premises
Investments in unconsolidated subsidiaries and associated companies
Customers' liability to this bank on acceptances outstanding
Other assets
Total assets

Federal funds purchased and securities sold under agreements to repurchase . . . .
Liabilities for borrowed money
Mortgage indebtedness
'
Acceptances executed by or for account of this bank and outstanding
Other liabilities
Total liabilities
Subordinated notes and debentures
Total equity capital
Total liabilities subordinated notes and debentures and equity capital
N.A. — Not applicable.
NOTE: Data may not add to totals because of rounding.

Digitized for 182
FRASER


Table B-33
Foreign branches of national banks, by region and country, December 31, 1976
Region and country
Central America
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama

Number

49
2
3
3
5
5
31

South America

93

Argentina
Bolivia
Brazil
Chile
Columbia
Ecuador
Guyana
Paraguay
Peru
Uruguay
Venezuela

32
4
18
1
7
13
1
5
3
5
4

West Indies — Caribbean
Antigua
Bahamas
Barbados
British Virgin Islands
Cayman Islands
Dominican Republic
French West Indies
Haiti
Jamaica
Montserrat
Netherlands Antilles
St. Lucia
Trinidad and Tobago
West Indies Federation of States
Europe
Austria
Belgium
Denmark
England
France
Germany
Greece
Ireland
Italy
Luxembourg
Monaco
Netherlands




160
1
62
6
2
41
19
2
4
8
1
4
1

130
1
6
3
34
14
20
18
4
9
5
1
6

Region and country

Number

Europe—Continued
Northern Ireland
Scotland
Switzerland
Africa

10

Egypt
Gabon
Ivory Coast
Kenya
Liberia
Mauritius
Senegal
Middle East
Bahrain
Jordan
Lebanon
Oman
Qatar
Saudi Arabia
United Arab Emirates
Yeman Arab Republic
Asia and Pacific
Brunei
Fiji Islands
Hong Kong
India
Indonesia
Japan
Korea
Malaysia
Pakistan
Philippines
Republic of China
Singapore
Thailand
U.S. overseas areas and trust territories
American Samoa
Canal Zone (Panama)
Caroline Islands
Guam
Marianas Islands
Marshall Islands
Puerto Rico
Virgin Islands

Total

2
1
1
2
2
1
1
25
3
3
3
2
1
2
10
1
112
2
4
27
11
6
24
4
5
4
4
4
15
2
56
1
2
1
4
1
1
23
23
635

183

Table B-34
Total foreign branch* assets of national banks, year-end

1953-1976

(Dollar amounts in thousands)
$1,682,919
1,556,326
1,116,003
1,301,883
1,342,616
1,405,020
1,543,985
1,628,510
1,780,926
2,008,478
2,678,717
3,319,879

1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964

$7,241,068
9,364,278
11,856,316
16,021,617
28,217,139
38,877,627
50,550,727
54,720,405
83,304,441
99,810,999
111,514,147
134,790,497

1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975r
1976

* Includes military facilities operated abroad by National banks from 1966 through 1971
r
Revised.

Table B-35
Foreign branches of national banks,

End of year

1960
1961
1962
1963
1964
1965
1966
1967
r

National bank
branches as a
Number of branches
operated by
percentage of total
national banks
foreign branches
of U.S. banks
93
102
111
124
138
196
230
278

75.0
75.6
76.6
77 5
76 7
93.5
94.3
95.5

1960-1976
National bank
branches as a
Number of branches
operated by
percentage of total
national banks
foreign branches

End of year

1968
1969
1970
1971
1972
1973
1974
1975r
1976

. .
. .
. .

355
428
497
528
566
621
649
675
635

95.0
93.0
92.7
91.5
90.2
89.5
89.4
88.6
87.2

Revised.

Table B-36
Foreign branch assets and liabilities of national banks, December 31, 1976

(Dollar amounts in thousands)
ASSETS
Cash and cash items in process of collection
Demand balances with other banks
Time blances with other banks
Securities
Loans, discounts and overdrafts, etc
Customers' liability on acceptances outstanding . . . .
Customers' liability on deferred payment letters of
credit
Premises, furniture and fixtures
Accruals — interest earned, foreign exchange profits,
etc
Due from other foreign branches of this bank
Due from head office and its domestic branches . . . .
Other assets

Total assets


184


$

480,698
4,216,388
44,561,722
2,054,193
61,150,749
2,503,491
84,597
262,763
1,807,025
14,443,383
2,506,916
718,572

$134,790,497

LIABILITIES
Demand deposits
Time deposits
Liabilities for borrowed money
Acceptances executed
Deferred payment letters of credit outstanding
Reserve for interest, taxes and other accrued expenses
Other liabilities
Due to other foreign branches of this bank
Due to head office and its domestic branches

$ 7,736,672
92,984,563
2,349,811
2,464,017
84,622
1,857,729
682,670
14,646,134
11,984,279

$134,790,497
Total liabilities
:
MEMORANDA
$ 2,546,549
Letters of credit outstanding
Future contracts to buy foreign exchange and bul$52,658,624
lion
Future contracts to sell foreign exchange and bul$50,782,092
lion

Table B-37
Trust assets* and income of national banks, by states, calendar 1976
(Dollar amounts in millions)

Number
of banks

Employee
benefit
accounts't

Other
trust
accountst

Total
trust
accounts

agency
accounts^

Total
trust and
agency
accounts

Trust
department
income
(Dollar
amounts in
thousands)

All national banks ..

1,982

$96,658

$111,687

$208,345

$64,498

$272,843

$1,025,942

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbian.

42
4
2
43
12
42
11
2
5

806
37
437
117
13,760
1,112
840
0
778

1,503
59
1,157

2,309
97
1,594
412
24,516
2,723

2,665
340
1,783
468
27,508
3,085
4,477
0
4,230

11,776

295

357
243
189
56
2,991
363
1,280
0
1,811

102
32
0
4

506
1,183
0
148
10,531
1,128
235
239
131
447
64

911
3,123
0
32
5,997
1,905
592
445
178
233
155

6,570
5,810
0
364
24,428
6,043
1,690
1,496
825
1,147
492

1,095

218

9,077

2,059
2,780
869
28
2,284

1,313
11,137
17,585
5,336
472
7,506
115
1,962
527
523

Florida.. .
Georgia .
Hawaii...
Idaho....
Illinois . . .
Indiana ..
Iowa
Kansas ..
Kentucky
Louisiana
Maine . . .

202
99
65
60
57
24
15

1,098
1,051
646
914
337

60
20
68
16
15
68
47
2
113
4

600
58
18,854

2,253
338
10,782
2,315
203

9

251
57

11

39
179
3
7
55
11
44
48
20
0
0

2,717
95
3,540
885
493
8,284
465

579
4,905
183
2
536
663
96
503
14
0
0

5,659
2,687
0
332
18,431

331
3,559
86
894
426
313

New Jersey
New Mexico
New York
North Carolina ..
North Dakota . . .
Ohio
Oklahoma
Oregon
Pennsylvania . . .
Rhode Island . ..

2,418

7,901

113
1,663
14
476
44
30

258
4,574
11,115

3,197
0

3,010
863
812
515
467
273

2,092

15
63
48
29
23
54
16
36
4
32

Puerto Rico ..
Virgin Islands

5,153
1,504
0
184

837
4,504
3,689
2,375

Maryland
Massachusetts .
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire

South Carolina
South Dakota..
Tennessee
Texas
Utah
Vermont
Virginia
Washington . ..
West Virginia ..
Wisconsin
Wyoming

10,756
1,610
2,357
0
1,641

6,316
1,354

894
11,368
1,403

4,138

14,805
4,467
444
5,222
100
1,371
471
344

2,853
396
29,636
5,032
298
9,855
2,240
1,388
19,651
1,868

15
592
57
179
1,245
61
12,779
1,051

77
2,511

993
239
9,007
437

4,098
457
42,415
6,083
375
12,366
3,232
1,627
28,658
2,305

1,037
9,716
3,208
114,575
18,751
17,151
0
14,048
38,827
19,310
0
1,414

99,576
20,653
6,763
5,878
3,843
5,768
2,320
5,429
52,299
35,703

23,973
2,404
23,913
764
8,679

1,949
2,247
19,833
2,313
134,511
23,233
1,887
43,151
10,181
10,853

80,099
10,094

4,914

982
337
3,040
15,097

140

865
2,894
154

170
91
586
3,075
64
6
949
630
182
373
32

3,307
3,432
1,047
3,267
186

1,709
12,522
65,373
2,704
260
16,061
18,107
3,980
11,307
876

0
0

0
0

0
0

0
0

0
0

561
189
1,875
7,117
344
38
1,822
2,139

769
2,391

812
246
2,455

12,022
527
40
2,358
2,802

591
46

* As of December 31, 1976.
f Employee benefit accounts include all accounts for which the bank acts as trustee, regardless of whether investments are partially, or wholly,
directed by others. Insured plans or portions of plans funded by insurance are omitted, as are employee benefit accounts held as agent.
$ Includes all accounts, except employee benefit accounts and corporate accounts, for which the bank acts in the following, or similar capacities
trustee (regardless of whether investments are directed by others), executor, administrator, guardian; omits all agency accounts and accounts for
which the bank acts as registrar of stock and bonds, assignee, receiver, safekeeping agent, custodian, escrow agent or similar capacities.
§ Includes both managing agency and advisory agency accounts.
II Includes national and non-national banks in the District of Columbia, all of which are supervised by the Comptroller of the Currency.
NOTE: Data may not add to totals because of rounding.




185







APPENDIX C

Addresses and Selected
Congressional Testimony

Addresses and Selected Congressional Testimony
Date and Topic
Jan. 20, 1976, Statement of Robert Bloom, First Deputy Comptroller of the Currency for Policy, before the
Subcommittee on Commerce, Consumer and Monetary Affairs of the House Government Operations
Committee, Washington, D.C

Page

Jan. 29, 1976, Statement of James E. Smith, Comptroller of the Currency, before the Subcommittee on Financial Institutions, Supervision, Regulation and Insurance of the House Banking, Currency and
Housing Committee, Washington, D.C
Feb. 5, 1976, Statement of James E. Smith, Comptroller of the Currency, before the Senate Committee on
Banking, Housing and Urban Affairs, Washington, D.C
Mar. 1, 1976, Statement of James E. Smith, Comptroller of the Currency, before the Senate Committee on
Banking, Housing and Urban Affairs, Washington, D.C

215

Mar. 11, 1976, Statement of John E. Shockey, Deputy Chief Counsel to the Comptroller of the Currency,
before the Senate Committee on Banking, Housing and Urban Affairs, Washington, D.C

217

Mar. 16, 1976, Remarks of H. Joe Selby, First Deputy Comptroller of the Currency for Operations, before
the Texas Six Flags Chapter of the Bank Administration Institute, Victoria, Tex

218

Mar. 26, 1976, Statement of C. Westbrook Murphy, Deputy Comptroller for Law and Chief Counsel to the
Comptroller of the Currency, before the Senate Committee on Banking, Housing and Urban Affairs,
Washington, D.C
May 5, 1976, Statement of James E. Smith, Comptroller of the Currency, before the Committee to Investigate a Balanced Federal Budget of the Democratic Research Organization, Washington, D.C
June 1, 1976, Statement of James E. Smith, Comptroller of the Currency, before the Subcommittee on
Commerce, Consumer and Monetary Affairs of the House Government Operations Committee,
Washington, D.C
July 29, 1976, Statement of Thomas W. Taylor, Associate Deputy Comptroller of the Currency for Consumer Affairs, before the Senate Committee on Banking, Housing and Urban Affairs, Washington, D.C.
Sept. 16, 1976, Statement of Thomas W. Taylor, Associate Deputy Comptroller of the Currency for Consumer Affairs, before the Subcommittee on Commerce, Consumer and Monetary Affairs of the House
Government Operations Committee, Washington, D.C
Dec. 14, 1976, Remarks of H. Joe Selby, First Deputy Comptroller of the Currency for Operations, before
the American Institute of Certified Public Accountants, Washington, D.C

188




222

225

226

241

2

55

259

Statement of Robert Bloom, First Deputy Comptroller of the Currency for Policy,
before the Subcommittee on Commerce, Consumer and Monetary Affairs of the
House Government Operations Committee, Washington, D.C., January 20, 1976
I have been asked by the Subcommittee to discuss
the examination practices and procedures of the Office of the Comptroller of the Currency. In view of recent newspaper articles on the subject of so-called
"problem banks," it is important to shed light on this
topic as the publicity has tended to confuse rather
than enlighten the public.
The term "problem bank" is a vague term which has
become banking agency jargon without precise definition. If what is meant is a bank, the liquidity and solvency of which is in serious question, let me hasten to
assure you that very few national banks, and none of
the money center national banks, are considered by
our Office to be "problem banks."
On the other hand, many national banks receive
extra analysis and attention for a variety of reasons.
The degree of supervision is determined through objective and subjective judgments made by field
examiners, regional administrators and Washington
staff. The Comptroller's Office maintains no list of such
banks that could be characterized as a "problem bank
list." Each bank is handled on a case-by-case basis.
There is no magic formula or ratio which is capable
of identifying banks for special supervision with any
degree of accuracy. As a practical matter, however,
we have used in the past a quantitative formula based
on examination report data which identify those banks
to be given further analysis at all staff levels. All banks
with criticized assets (100 percent of substandard, 50
percent of "other loans especially mentioned," 50 percent of doubtful) aggregating 65 percent or more of
adjusted capital funds (equity accounts, reserves for
loan losses and capital notes, less losses and 50 percent of doubtful) are given special analysis and attention by this Office.
It was apparently a list of banks with classified assets equal to more than 65 percent of capital which
was referred to in the Washington Post story as the
Comptroller's "problem bank" list. As the Comptroller
stated in his press release following the Post story, the
labeling of every bank with a ratio of criticized assets
to capital of 65 percent or more as a "problem bank" is
a misstatement and over-simplication. The volume of
criticized loans in a particular bank, taken alone, without further information as to the strength of management, earnings, liquidity, ability to raise additional capital, access to the money markets and other factors, is
not significant. In addition, a great deal depends on
the state of the economy during the period in question.
The significance of classified asset ratios as a supervisory tool is greater during prosperous times than it is
during periods of recession, such as 1974 and 1975. A




ratio of 65 percent or more of classified assets in a
prosperous economy could be reflective of poor management. A ratio of 65 percent or more during 1975
and at present does not necessarily reflect adversely
on management. It is common knowledge in financial
circles that many banks, both large and small, well
managed and poorly managed, today have ratios in
excess of 65 percent. Indeed, any bank whose volume
of criticized loans did not increase during 1975 probably was not performing the normal risk-taking functions
through which a commercial bank serves its community.
There are two principal aspects in singling out banks
for special supervisory attention. First, there are the
procedures and criteria to be used in identifying such
banks, and second, there are the procedures and
methods for correcting whatever deficiencies exist in
such banks. This Office is now engaged in a major revision and improvement of its operations in both of
these areas, based largely on the recommendations of
Haskins & Sells, an outside consulting firm retained by
the Office in May 1974. The Haskins & Sells recommendations have been made public, and copies of the
report have been sent to each member of Congress.

Existing Grading Systems
Under the traditional system for pinpointing banks for
special attention, a great deal of emphasis was placed
on the ratio of classified assets to gross capital. Classified assets are those assets which are singled out by
the examiner as having credit weaknesses of varying
degrees of intensity. The classifications, in ascending
order of severity, are "other loans especially mentioned" (OLEM), substandard, doubtful and loss.
Banks are graded in four groupings according to the
ratio of assets classified as loss, doubtful or substandard to gross capital funds. The four groupings are:
A — less than 20 percent
B — 20 to 40 percent
C — 40 to 80 percent
D — 80 percent or more.
In addition, examiners rate capital adequacy on a one
through four scale, taking into account the quality of
management, the liquidity of assets, the history of earnings, the quality and character of ownership, the burden
of meeting occupancy expenses, the potential volatility
of the deposit structure, the efficiency of operations and
certain competitive factors. Bank management is rated
in three categories, strong, fair or poor. After the capital
position, the quality of assets and management are
scored, the examiners assign a composite or group rat-

189

ing to the bank. Group 1 banks are those considered to
have good capital, competent management, good operations, good liquidity and classified assets to gross
capital of less than 20 percent. At the other end of the
spectrum, Group 4 banks are those which could be approaching insolvency, thus requiring an immediate injection of capital, new management or both.
in the past, this Office has maintained lists of banks
falling within composite groups 3 and 4 as described
above. A schedule included with this statement reflects the number of banks on these lists from July 5,
1972 to July 1, 1974. Such lists, because of the primary
emphasis placed on the volume of classified loans,
under present economic conditions, are not considered
particularly meaningful. This Office still reviews each
examination report on a case-by-case basis and, after
discussions with our regional administrators and the national bank examiners, determines whether or not additional supervision is necessary. In those cases where it is
decided that such supervision is required, personnel
from Washington work closely, in some cases on a daily
basis, with personnel in the region and with personnel
from the bank.

The New System
As I have noted, our Office is presently actively engaged
in modernizing its system for identifying and dealing with
banks requiring special attention. A computerized "early
warning system" called the National Bank Surveillance
System (NBSS) will consist of four basic elements:
1. A data collection system.
2. A computer-based monitoring system that would
detect unusual or significantly changed circumstances within a bank and within the National
Banking System.
3. An evaluation by experienced personnel of the
impact of such changes on bank soundness.
4. A review procedure that would provide administrative controls over all proposed Office of the
Comptroller of the Currency remedial actions, including those of Washington personnel.
A Deputy Comptroller of the Currency and a project
manager from Haskins & Sells initiated the NBSS in September 1975. Their efforts have been directed toward
steps 1 and 2, a data collection system and a
computer-based monitoring system. They also have
begun work on step 3 by selecting experienced
examiners who will analyze the importance of the computerized data.
The data which have been reported to the three federal regulatory agencies by their respective banks have
traditionally been used for historical statistical purposes.
Major portions of those data have, by joint agreement of
the three agencies, been stored in the FDIC's computer.
When this Office decided to use those data for supervisory purposes, one of the first steps in creating the NBSS
required the transfer of portions of the data in the FDIC's
computer to a data base in a separate computer which
could be used by our Office for supervisory purposes.
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The data base has been transferred and essentially covers the condition and income reports of national banks
during the past 5 years.
Three additional steps are being taken to improve and
expand the data base. First, we are conducting frequent,
almost daily, discussions with representatives of the
Federal Reserve and the FDIC to amend the condition
and income reports so that the facts in these reports will
be more meaningful for supervisory purposes. When information desired by this Office is not deemed necessary by the other two regulators, we will acquire that data
through special reports submitted by the bank separately from the customary call and earnings reports.
Second, certain portions of the non-public reports of
examination will be included in our data base. Third, if all
of the data is to be analyzed on a timely basis, it must be
processed rapidly. To accomplish this objective, the
Management Services Division of the Comptroller's Office has made two trial runs on the direct processing of
NBSS data from reports of condition and has concluded
that those data can be processed within 45 days of the
date of the call, in lieu ot the 5-month period normally required for the combined production by the three federal
bank regulators.
The NBSS will work with banks that are segregated
into peer groups in our data base. The statistical trends
of each peer group and of each bank within the peer
group will alert this Office to exceptional banks or groups
of banks on no less than a quarterly basis. In view of today's rapidly changing economy, that system will be
more timely than the traditional system cf supervision
through the receipt of reports of examination which are
required only three times in each 2-year cycle.
The fourth element of the system is an administrative
review procedure, or monitoring system, which would
stem from the quarterly analysis of data. The review and
monitoring system will enable a staff of experienced
examiners to make recommendations, on a bank-bybank basis, to each of 14 regional administrators, about
the type and scope of examination which may be required promptly for individual banks. The monitoring system will also be computer-assisted to the extent that the
recommendations and the reactions, both positive and
negative, by both examiners and bankers will prompt
successive steps of recommended corrective action as
needed.
What we are developing is an NBSS which will serve
the regulator and the banker in maintaining a sound financial system, to serve the public needs. The NBSS will
help in the detection and the correction of impending
problems before the