The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ANNUAL REPORT OF THE FEDERAL DEPOSIT INSURANCE CORPORATION FOR THE YEAR ENDED DECEMBER 31,1943 L E T T E R O F T R A N S M IT T A L F e d e r a l D e p o s it In s u r a n c e C o r p o r a tio n , Washington, D . C., September 27, 1944. SIR: Pursuant to the provisions of subsection (r) of section 12B of the Federal Reserve Act, as amended, the Federal Deposit Insurance Corporation has the honor to submit its annual report. Respectfully, L e o T . C r o w le y , Chairman. T h e P r e sid e n t o f th e S e n a t e T h e S p e a k e r of th e H ouse of R e p r e se n ta t iv e s FEDERAL DEPOSIT INSURANCE CORPORATION BOARD OF DIRECTORS LEO T. CROWLEY, Chairman PHILLIPS LEE GOLDSBOROUGH PRESTON DELANO, Comptroller oi the Currency The Board of Directors is responsible for the performance of all duties and the exercise of all powers vested by law in the Corporation. BOARD OF REVIEW Considers recommendations submitted by the Division of Examination relative to applications from banks for insurance, retirement of capital, establishment of branches, and other similar purposes. DIVISION OF EXAMINATION LEGAL DIVISION Handles applications from banks for member* ship, capital retirement, branches, mergers, etc.; examines insured banks and determines necessary supervisory actions. Handles legal matters in connection with the activities and operations of the Corporation. COMMITTEE ON LIQUIDATIONS, LOANS, AND PURCHASE OF ASSETS Considers recommendations from the Division of Examination relative to loans to or purchase of assets from banks and recommendations from the Division of Liquidation relative to liquidation activities. DIVISION OF LIQUIDATION Pays depositors in closed insured banks, liquidates national banks and closed State banks for which the Corporation is appointed receiver, exercises general supervision over the liquidation of closed insured banks for which the Corporation is not receiver, and liquidates loans to or purchases of assets from insured banks to facilitate mergers. DIVISION OF RESEARCH AND STATISTICS Provides ec6nomic counsel, conducts special studies pertaining to deposit insurance and banking, and compiles statistical data relating to condition and operation of banks. EXECUTIVE DIVISION DIVISION OF ADMINISTRATION FISCAL AND ACCOUNTING DIVISION AUDIT DIVISION Supervises business management functions of the Corporation,'handles public relations, main tains minutes and other official records of the Board, and furnishes notice of matters acted on by the Board. Establishes procedures for personnel matters including recruitment, appointment, place ment, classification and training; purchases materials, supplies, equipment for Washington and Field Offices; provides duplicating services and general maintenance services for the Corporation. Collects assessments from banks and other' receipts, makes disbursements, and maintains the general accounting records oi the Cor poration. Makes final administrative audit of the books and accounts of the Corporation and prepares detailed and summary audit reports for Board of Directors. FEDERAL DEPOSIT INSURANCE CORPORATION B oard of D ir e c t o r s Chairman................................................................................ L eo T . C r o w ley ^Phillips L ee G oldsborough Directors...............................................................................< ^ ^ (P reston D elano Comptroller of the Currency O f f ic ia l s — S e p t e m b e r 27, 1944 W a sh in g ton 25, D . C. Secretary................................................................................. E. F. Downey Executive Officer.................................................................... Henry W . Riley Confidential Assistant to Chairman.................................. Beryl Roberts Special Assistant to Director...............................................Albert G. Towers Secretary to Director............................................................. Madeline G. Von Eberhard Special Assistant to Chairman...........................................J. Forbes Campbell General Counsel.....................................................................Francis C. Brown Acting Chief, Division of Examination............................Neil G. Greensides Chief, Division of Research & Statistics.......................... Donald S. Thompson Director of Personnel............................................................C. W . Satterlee Chief, Service Division.........................................................Frank C. Blowe C hicago 3, I llinois Chief, Division of Liquidation........................................... Wheeler M cD ougal Supervising Liquidator, Division of Liquidation........... Ralph E. Zimmerman Chief, Claims Section, Division of Liquidation.............. James M . Gaffney Supervising Accountant, Division of Liquidation.......... H. R. Burling Counsel................................................................................... James M . Kane Fiscal Agent...........................................................................W. G. Loeffler Chief, Audit Division...........................................................Mark A. Heck V DISTRICT OFFICES D ist . N o. Supervising E xam in er 1. Leo J. Carr, Acting A ddress R oom 765, N o. 10 Post Office Square, Boston 9, Mass. 2. Howard S. Lahman, Room 1900, 14 Wall Street, Acting New York 5, N. Y . States in district Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut New York, New Jersey, Delaware, Puerto Rico, Virgin Islands 3. L. F. Stroefer Ohio, Pennsylvania City National Bank Building, 20 East Broad Street, Columbus 15, Ohio 4. L. W . Barlow 909 State Planters Bank & Maryland, Virginia, Trust Company Building, West Virginia, North Carolina, South Carolina Richmond 19, Va. 5. W . Clyde Roberts 625 First National Bank Building, Atlanta 3, Ga. Georgia, Florida, Alabama, Mississippi, Louisiana 6. Neil G. Greensides 1059 Arcade Building, St. Louis 1, M o. Kentucky, Tennessee, Missouri, Arkansas 7. R . L. Hopkins 715 Tenney Building, M adison 3, Wis. Indiana, Michigan, Wisconsin 8. C. L. Pitman 741 Federal Reserve Bank Building, Chicago 4, 111. Illinois, Iowa 9. R . 0 . Bishop 1200 Minnesota Building, St. Paul 1, Minn. Minnesota, North Dakota, South Dakota, M ontana 10. G. F. Roetzel 901 Federal Reserve Bank Building, Kansas City 6, Missouri Nebraska, Kansas, Oklahoma, Colorado, W yom ing 11. L. J. Davis Federal Reserve Bank Building, Dallas 13, Tex. Texas, New M exico, Arizona 12. W . P. Funsten Suite 1120, 315 M ontgom ery Idaho, Utah, Nevada, Street, San Francisco 4, Washington, Oregon, Calif. California, Alaska, Hawaii CONTENTS Page Introduction and Summary...................................... 3 P A R T ONE O P E R A T IO N S AN D P O LIC IE S O F TH E C O R P O R A T IO N Deposit insurance, bank supervision, and private enterprise............................. Operations of the corporation in 1943...................................................................... Legal developments....................................................................................................... Organization and financial statements of the Corporation.................................. 7 13 18 21 PAR T TW O D E PO SIT IN SU RAN CE AN D B A N K IN G DEVELOPM EN TS Assets, liabilities, and capital of insured commercial banks............................... Earnings of insured commercial banks..................................................................... Insured mutual savings banks.................................................................................... 31 35 38 P A R T TH RE E SPECIA L R E P O R T S N o te ................................................................................................................................... 41 P A R T FO U R L E G IS L A T IO N AN D R E G U LA TIO N S Legislation relating to insured banks or the Corporation.................................... Regulation of the Corporation.................................................................................... State legislation relating to bank supervision and bank operations................. 45 48 49 P A R T FIVE S T A T IS T IC S O F B A N K S AND D E P O SIT IN SU RA N CE Explanatory notes.......................................................................................................... Number, offices, and deposits of operating banks................................................. Assets and liabilities of operating banks.................................................................. Analysis of examinations of insured commercial banks........................................ Earnings of insured banks............................................................................................ Suspensions, receiverships, and m ergers................................................................... 59 68 78 82 96 102 CHARTS Organization chart of the Federal Deposit Insurance Com pany....................... M ap: Federal Deposit Insurance Corporation districts.......................... ............ ix iv vii LIST OF TABLES Page P A R T ONE O P E R A T IO N S AN D P O LIC IE S OF TH E C O R P O R A T IO N O perations of the C orporation in 1943: 1. Depositors’ recoveries and losses in insured banks in financial difficulties, 1934-1943................................................................................. 14 2. Payment of deposits of insured banks placed in receivership, 1934-1943...................................................................................................... 14 3. Disbursements of the Corporation in connection with banks in financial difficulties, 1934-1943................................................................ 15 4. Action to terminate insured status of banks charged with engaging in unsafe or unsound practices or violations of law or regulations, 1936-1943...................................................................................................... 16 5. Unsafe or unsound banking practices and violations of law or regulations charged against 6 banks by the Corporation during 1943................................................................................................................ 17 Organization and financial statements of the C orporation : 6. Officers and employees of the Federal Deposit Insurance Cor poration, December 31, 1943.................................................................... 22 7. Income and expenses of the Federal Deposit Insurance Corporation since beginning operations........................................................................ 23 8. Income and expenses of the Federal Deposit Insurance Corporation, calendar year 1943...................................................................................... 24 9. Assets and liabilities of the Federal Deposit Insurance Corporation, December 31, 1943, and December 31, 1942....................................... 25 10. Federal Deposit Insurance Corporation balance sheet, June 30, 1943— from auditors’ report..................................................................... 26 PART TW O D E PO SIT INSU RAN CE AN D B A N K IN G D EVELOPM EN TS A ssets , liabilities , and capital of insured commercial b a n k s : 11. Percentage changes during 1943 in total deposits and holdings of United States Government obligations of insured commercial banks 31 12. Amount and percentage change during 1943 in loans of insured commercial banks........................................................................................ 32 13. Assets of insured commercial banks at the beginning and close of 1943................................................................................................................. 33 14. Classification of assets of insured commercial banks, examinations in 1942 and 1943......................................................................................... 33 15. Distribution of insured commercial banks according to substandard assets ratio, examinations in 1942 and 1943......................................... 34 16. Distribution of number and deposits of insured commercial banks according to ratio of fixed and substandard assets to net sound capital, examinations in 1943................................................................... 35 X LIST OF TABLES xi Page E a r n in g s of in s u r e d c o m m e r c ia l banks: 17. Earnings, expenses, and taxes of insured commercial banks, 1934-1943...................................................................................................... 35 18. Net earnings, charge-offs, profits, and dividends of insured com mercial banks, 1934-1943.......................................................................... 36 19. Net earnings and net profits per $100 of total capital accounts of insured commercial banks, 1941, 1942, and 1943................................ 37 20. Amounts and rates of income received, and rate of interest paid, by insured commercial banks, 1934-1943.............................................. 37 P A R T FIVE S T A T IS T IC S OF BA N K S AN D D E PO SIT IN SU RAN CE N umber , offices , and deposits of operating b a n k s : 101. Analysis of changes in number and classification of operating banking offices in the United States and possessions during 1 9 4 3 .. 68 102. Number of operating banking offices, December 31, 1943 Grouped according to insurance status and class of bank and by type of office in each State and possession........................................... 70 103. Number and deposits of operating commercial and mutual savings banks, December 31, 1943 Banks grouped according to insurance status in each State and possession................................................................................................... 76 A ssets and liabilities of operating b a n k s : 104. Summary of assets and liabilities of operating banks in the United States and possessions, June 30, 1943 Banks grouped according to insurance status and type of bank.. . . 78 105. Summary of assets and liabilities of operating banks in the United States and possessions, December 31, 1943 Banks grouped according to insurance status and type of bank. . . . 79 106. Assets and liabilities of operating insured commercial banks, call dates, December 31, 1943, to December 31, 1 9 4 2 .................................. 80 A nalysis of exam in atio ns of insured commercial b a n k s : 107. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1943 Banks grouped according to amount of deposits................................. 82 108. Asset and net sound capital ratios of insured commercial banks examined in 1943 Banks grouped according to amount of deposits................................. 83 109. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1943 Banks grouped according to net sound capital ratio.......................... 84 110. Assets and net sound capital ratios of insured commercial banks examined in 1943 Banks grouped according to net sound capital ratio.......................... 85 111. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1943 Banks grouped according to fixed and substandard assets ratio. . . . 86 112. Asset and net sound capital ratios of insured commercial banks examined in 1943 Banks grouped according to fixed and substandard assets ratio___ 87 xii LIST OF TABLES Page A nalysis 113. of exam in atio ns of insured commercial banks — Continued Analysis of assets, capital, and liabilities of insured commercial banks examined in 1943 Banks grouped according to Federal Deposit Insurance Corporation District....................................................................................................... 114. 88 Asset and net sound capital ratios of insured commercial banks examined in 1943 Banks grouped according to Federal Deposit Insurance Corporation District............................................................................................................... 89 115. Analysis of securities held by insured commercial banks examined in 1942 and 1943 Banks grouped according to amount of deposits................................... 90 116. Analysis of securities held by insured commercial banks examined in 1942 and 1943 Banks grouped according to net sound capital ratio............................ 91 117. Analysis of securities held by insured commercial banks examined in 1942 and 1943 Banks grouped according to fixed and substandard assets ratio. . . . 92 118. Analysis of securities held by insured commercial banks examined in 1942 and 1943 Banks grouped according to Federal Deposit Insurance Corporation district........................................................................................................ 119. Banks grouped by fixed and substandard assets ratio, rate of net earnings, and amount of deposits.......................................................... 120. 94 Distribution of deposits of insured commercial banks examined in 1943 Banks grouped according to net sound capital ratio and by fixed and substandard assets ratio, rate of net earnings, and amount of deposits....................................................................................................... E arnings 93 Distribution of insured commercial banks examined in 1943 according to net sound capital ratio 95 of insured b a n k s : 121. Earnings, expenses, and dividends of insured banks, 1943 By class of bank.............................................................................................. 96 122. Ratios of earnings, expenses, and dividends of insured commercial banks, 1943........................................................................................................... By class of bank.............................................................................................. 98 123. Ratios of earnings, expenses, and dividends of insured commercial banks, 1943 Banks grouped according to amount of deposits................................... 100 Suspensions , receiverships , and m ergers : 124. Number and deposits of banks suspending operations, placed in receivership, and merged with the financial aid of the Federal Deposit Insurance Corporation, 1934-1943 Banks grouped by class, year, amount of deposits, and State. . . . 102 125. Assets and liabilities of insured banks placed in receivership, 1934-1943 As shown by books of bank at date of suspension................................ 104 126. Depositors and deposits of insured banks placed in receivership, 1934-1943 As shown by books of FDIC , December 31, 19^3 ................................ 105 127. Assets and liabilities of insured banks merged with the financial aid of the Federal Deposit Insurance Corporation, 1935-1943 As shown by books of bank at date of merger......................................... 106 INTRODUCTION AND SUMMARY I ntro d uctio n a n d S u m m a r y December 31,1943, marks the close of the first decade of operation of Federal insurance of bank deposits. During this time deposit insurance has been successful even beyond the anticipation of its staunchest advocates. Its immediate and widespread acceptance has meant the extension of insurance protection to more than 75 million accounts in more than 90 percent of the nation’s banks, and, although deposits now total over $100 billion, depositors in insured banks have lost less than $3 million from bank failures during the past ten years. The insurer of bank deposits, the Federal Deposit Insurance Corporation, has been as successful in building its own financial structure as it has been in preventing losses to bank depositors. Starting with a capital of $289 million, it has accumulated a surplus of $414 million, and brought its combined capital and surplus to $703 million. The amount of surplus accumulated has exceeded the amount of assessments paid by banks, income from investments having been more than adequate to cover all expenses and losses. Not only has deposit insurance enjoyed ten years of sound develop ment, but the banking system of the nation has become more stable and is today immeasurably stronger than it was at the beginning of 1934. The soundness of the banks’ assets and the effectiveness of the deposit insurance system are elements of strength in the economic life of today. The public has demonstrated its confidence in the banks and in deposit insurance. So long as depositors and the public generally know that banking and supervisory policies will be courageous and farsighted they will continue to support and to have confidence in our present system. The operation and growth of banks during the past ten years of unusually favorable economic conditions may not, however, afford a reliable guide to their operation during future periods of economic strain. The banking system faces problems in the post-war period which will require the utmost foresight, courage, and skill on the part of bankers and public officials if the privately owned banking system and, indeed, our system of private business enterprise are to survive. Some of these problems are discussed in Part One of this report. 3 PART ONE OPERATIONS AND POLICIES OF THE CORPORATION D epo sit I n s u r a n c e , B a n k S u p e r v is io n , a n d P r iv a t e E n te r p r ise Deposit insurance and economic developments. The successful operation of deposit insurance and the great improvement in banking conditions over the past ten years reflect the combined effect of such circumstances and policies as: rehabilitation of the capital of the banks following the Bank Holiday; improvement in the supervision provided by State and Federal banking agencies; improvement of bank manage ment; modifications in the banking structure and in the character of risks undertaken by banks; growth in national income with a transition from a low to an extremely high level of economic activity; and faithful adherence to the principles of the deposit insurance law. The rate of expansion in the national income and in the volume of production during the past decade has been extraordinarily high. Between 1934 and 1943, industrial output more than trebled, income payments nearly trebled, farm incomes more than trebled, factory payrolls more than quadrupled, and total deposits of insured banks trebled. Industrial profits and bank earnings have generally improved. The Corporation acted as a stabilizing factor during this period. Its activities and the fact of the existence of Federal insurance of deposits helped to check developments which might have had an adverse effect upon the banking system. Not only have bank failures been relatively few in number but the total volume of resources involved has been small. Earlier periods of recovery and expansion, however, have likewise been characterized by a small number of bank suspensions. Insurance operations of the Corporation. The past ten years, even though they have been years of high income and generally favorable banking conditions, have not been entirely free from banking difficulties, and the Corporation not only has bent its efforts to the improvement of the condition of operating banks but also has protected depositors from losses in those insured banks which were in financial difficulties. For the most part these were banks which were not successfully rehabilitated following the banking crisis of the early 1930’s. The Corporation has disbursed $258 million to protect depositors from loss in 395 insured banks which were closed or merged during the past ten years. Nearly 1,300,000 individual accounts in these banks have been fully protected from loss and less than 1,700 of the depositors had accounts eligible for insurance which were not fully protected. Total losses to these depositors will be about $3 million out of a total of $497 million of deposits in the 395 banks. The Cor poration’s losses are estimated at about $45 million. 7 8 FEDERAL DEPOSIT INSURANCE CORPORATION In addition to the protection of these depositors from loss, the promptness with which depositors’ funds are made available, as well as the orderly liquidation of assets, are factors tending to maintain financial and economic stability in the community. Ninety-eight percent of the deposit balances in the banks in difficulty have been made available promptly to depositors, frequently without even one day’s interruption of service. On the other hand, the liquidation of assets, to the extent that such liquidation has been under the control of the Corporation, has been undertaken with a view not only to protecting the interests of the Corporation and other creditors but also to protecting the economic fabric of the communities involved. These policies have provided the utmost possible protection to de positors and their business interests and have also resulted in higher recoveries on assets and lower losses to the Corporation than past experience would have indicated. Losses and surplus of the Corporation. Because of the com paratively small number of bank failures and the relatively large recovery on the assets of closed banks, the losses of the Corporation and its administrative expenses have been less than the interest on its invested capital and surplus. The surplus of the Corporation, therefore, has been increased by more than the full amount of the insurance premiums collected from the banks. During the ten years, the total income of the Corporation has amounted to $493 million, and its expenses and insurance losses to $79 million, leaving $414 million as additions to its surplus. Of the Corporation’s ten-year income, $389 million was from insurance assessments and $103 million was from investment of its funds, principally in Government bonds. Administrative expenses of the Corporation have amounted to $34 million, and deposit insurance losses and expenses to an estimated $45 million. On December 31, 1943, the capital and surplus of the Corporation stood at $703 million, or nearly two and one-half times the amount of its capital when deposit insurance went into effect on January 1, 1934. However, the amount of deposits now protected by the Cor poration is about three times the amount of deposits protected when insurance first went into effect. Although this increase in the resources of the Corporation has been accompanied by a marked improvement in the quality of the assets of the banks, the margin of protection provided by the owners of the banks—in the form of capital—has been reduced. Condition of insured banks after ten years of deposit in surance. As a consequence of favorable trends which set in following the banking crisis of 1933 and the inauguration of deposit insurance, the banks generally entered the war in sound condition. Bankers were INSURANCE, SUPERVISION, AND ENTERPRISE 9 ready to meet any demands which might be made upon them in the prosecution of the war and have ably discharged these responsibilities. At the close of 1943, deposits of commercial banks approximated $106 billion and total assets amounted to about $114 billion. Threefourths of the assets consisted of the following: United States Govern ment obligations, cash or cash items, and balances with other banks, including Federal Reserve banks. Less than one percent of the banks’ assets were fixed assets. Of the remaining assets—loans and securities other than United States Government obligations—only 5 percent were found by Federal bank examiners to be of substandard grade in 1943. This was less than 2 percent of the total assets of the banks. The growth in volume of assets and the changes in their composition affected the banks’ earnings. Net earnings of all insured banks com bined were higher in 1943 than in any other year of deposit insurance. The large city banks, particularly, reported substantial increases in earnings over the past two years, while many of the small country banks suffered some decline in earnings and profits from the levels prevailing immediately before the war. The increase in profits of the larger banks came chiefly from a growth in income from United States Government obligations. The decline in profits of the small country banks resulted from a reduction in income from loans which was not fully offset by increased income from expanded holdings of United States Government obligations and from other sources. The reduced income from loans accompanied a decline in volume of loans, reflecting in part repayment of debts by customers out of high wartime incomes, in part competition of other lending agencies, and in part restrictions on consumer loans imposed by Federal regulation. The income prospects of a large number of the small country banks have also been affected adversely by a recent ruling of the Board of Governors of the Federal Reserve System holding absorption of exchange charges by member banks of that system to be a payment of interest upon demand deposits. If sustained and enforced, this ruling will undoubtedly bring about the elimination of income from remittance exchange. For decades these exchange charges have constituted one of the important sources of income for many small banks. With the shrinkage in income from loans, income from remit tance exchange charges has been of increasing importance to these banks, notwithstanding increased income from greatly expanded holdings of United States Government obligations and from service charges on deposit accounts, which most of these banks impose. Appraisal of assets. Before the Federal Deposit Insurance Cor poration was created the soundness of bank assets was frequently evaluated on the basis of liquidity, and many banks otherwise sound were judged to be insolvent because it would have been impossible 10 FEDERAL DEPOSIT INSURANCE CORPORATION to liquidate all of their loans and securities at the time of appraisal without excessive loss even though no doubt existed as to the ability of obligors to meet the terms of their contracts. For many years now it has been the policy of the Corporation and of most bank supervisory agencies to appraise assets on the basis of the ability of the obligor to meet the terms of his obligations. This policy has lessened super visory pressure for liquidation of bank assets, and if maintained will continue to do so during periods of crisis. The procedure has not been prescribed by law, and in general supervisory and examination policies are not so prescribed, but are left to the determination of the different agencies. On major policies and especially on those whose inconsistency may damage the standing of an individual bank, it is desirable that con tinuity and consistency be established and their maintenance assured. One such supervisory policy is the evaluation of bank assets, par ticularly obligations of the United States Government. These securities now constitute more than 50 percent of the assets of the banks. Before the war is over the percentage will undoubtedly be much higher. It may therefore be desirable for Congress by affirmative legislation to require Federal bank supervisory agencies when they examine banks to evaluate interest-bearing obligations of the United States Government at the lower of book or amortized cost. The Federal Government should adjust its appraisal policies so as to avoid penalizing its own creditors because of fluctuations in market prices of its own obligations. Inasmuch as the Federal Government is the currency-issuing authority in the land, it is difficult to justify the valuation in exa minations of one group of obligations of the Federal Government at less than par or amortized cost, merely because the obligations are interest-bearing, when another group of obligations, which are noninterest-bearing—that is, the currency of the land—is always valued at par because the law so requires. The interest-bearing obli gations vary in price chiefly because of fluctuations in the market rate of interest relative to the fixed yield on the obligations. Fluctua tions in the rate of interest do not affect directly the ultimate soundness of the obligations of the United States Government but they do, of course, affect market prices. No question could arise with regard to the soundness of obligations of the United States Government which would not exist also with respect to our currency. It is specifically to assist banks during the period of post-war adjust ment that the Corporation recommends this legislative affirmation of existing bank supervisory policy regarding the evaluation of United States Government obligations. Such legislation, coupled with the availability to banks of the facilities of the Federal Reserve System INSURANCE, SUPERVISION, AND ENTERPRISE 11 and other Federal emergency lending agencies and of the resources of the Federal Deposit Insurance Corporation will assure the utmost possible maintenance of the integrity of our banks. The Board of Governors of the Federal Reserve System has already (on December 8, 1941) affirmed that the “ Federal Reserve Banks stand ready to advance funds on United States Government securities at par to all banks.” Supervisory activities of the Corporation. Up to the close of 1943, the Corporation had conducted a total of 83,666 examinations of banks. Of these examinations, 83,605 were of insured State banks regularly subject to examination by the Corporation and examined by no other Federal agency, or of banks applying for admission to deposit insurance as State banks not members of the Federal Reserve System. The 61 other examinations were of banks regularly subject to examination by the Comptroller of the Currency (national banks) or by the Federal Reserve banks (State member banks of that system). These banks either were in need of financial assistance to avoid suspension or were believed by the Corporation to be engaging in unsafe and unsound practices. These examinations were made with the consent of the Comptroller of the Currency in the case of national banks and of the Board of Governors of the Federal Reserve System in the case of State banks members of that system. They resulted in initiation of proceedings against a number of national banks and State banks members of the Federal Reserve System for engaging in unsafe and unsound practices, and in the merging with the assistance of the Corporation of other member banks in order to avoid suspension. The ultimate sanction which may be used by the Corporation to check the development of unsafe and unsound practices is the termi nation of the insured status of banks which continue to engage in such practices. Up to the close of 1943, the Corporation had brought formal action to terminate the insured status of 129 banks charged with continuing to engage in unsafe and unsound practices. Of these banks, 20 corrected or eliminated the practices, and proceedings were discontinued, 99 suspended operations or were merged with other banks, and 4 were dismissed from insurance (2 subsequently sus pended). Proceedings against 6 were still pending at the close of the year. The Corporation has set forth in detail the nature of charges of unsafe and unsound practices preferred against every bank cited by the Corporation. In this manner a case record has been built up which serves as a basis to appraise the exercise of the Corporation’s power to dismiss banks from insurance. This record, which is published in the Annual Reports of the Corporation, is available to bankers as a detailed statement of Corporation policy and procedure regarding 12 FEDERAL DEPOSIT INSURANCE CORPORATION unsafe and unsound banking practices. The nature of the charges brought against banks during 1943 is discussed on page 17 of this report. Supervision of banks was initiated to provide the public with reasonable assurance that bank obligations would be met. As the nature of bank obligations changed and deposits assumed greater importance, bank supervision became concerned more and more with the protection of depositors. Failure of supervision alone to provide the necessary protection led to the inauguration of Federal insurance of deposits. Deposit insurance as now constituted, however, cannot provide the expected protection for depositors unless it is accompanied by effective supervision. The primary concern of bank supervision must continue to be the protection of bank creditors. The Corporation, by assuming the risk of loss of most of the depositors, bears much of the ultimate financial cost resulting from lax supervision, poor management, and adverse banking developments. Many existing Federal statutory definitions relating to bank supervision are vague. The procedures, standards, and objectives of bank supervision frequently are not set forth clearly either to the public or to the bankers. The operations and practices of banks of deposit are so fundamental to the public welfare that the public should have full knowledge not only of banking practices but also of bank supervisory practices. While action in individual cases must be kept confidential, Congress, bankers, and the public should be kept fully advised regarding general policies, objectives, standards, and procedures of bank supervision if public policy is to be faithfully adhered to and abuse of authority avoided. Risk bearing and the financing of private enterprise. As more consideration is given to problems of post-war reconversion, doubts concerning the ability of banks and other private financial institutions to finance business enterprise find expression in an increasing number of proposals for direct Government financing or for guarantees by the Government or by governmental agencies of financing by private institutions. In its Annual Report for 1942, the Corporation pointed out that one of the distinguishing characteristics of private enterprise was the assumption of risks by individuals or groups of individuals in the hope of obtaining profits. The Corporation also warned that if bankers wished to preserve their system of privately owned banks they would have to have enough capital to enable them to finance, with reasonable safety, business enterprise so as to make unnecessary either the creation of governmental financing agencies or the imposition of an undue burden of risk upon the Government. INSURANCE, SUPERVISION, AND ENTERPRISE! 13 Assumption by the Government of the risks inherent in credit extension by privately owned financial institutions to private business enterprise would reduce the chances of continuation of banking and business under private ownership and control. In order to avoid excessive loss the guarantor, an agency of the Federal Government, would have to set standards and review each individual loan transac tion. In effect, the guarantor would determine who could and who could not have credit, as well as the channels through which such credit would be obtained. More and more, it would assume the functions of management. The standards and forces of the market place would play a less and less important role, paving the way for progressive substitution of governmental action as the final determinant in the granting of credit—the life blood of business. Ample justification can be found for the use of Government guar anties in connection with war loans—the so-called V and VT loans. These loans finance war contracts and contract terminations and involve risks and costs that are peculiar to war which is strictly a governmental function. Justification does not exist for similar govern mental intervention in the financing of private peacetime business. Adequate private resources now exist for the financing of business enterprise. Never before have the savings and cash resources of our people and our businesses been so large. Every opportunity should be given private enterprise to operate within the framework of a private financial system before the Federal Government, either directly or through its many agencies, steps in to render financial aid to and provide financial direction and control over business enterprise. If the private enterprise system is to survive, the financing of industry for peacetime pursuits should not be undertaken as a governmental function except in periods of emergency. O p e r a tio n s op t h e C o r p o r a tio n in 1943 Protection of bank depositors. The number of banks in which the Corporation made disbursements to protect depositors was smaller in 1943 than in any previous year of deposit insurance. Four banks suspended operations and one was merged with the financial aid of the Corporation. The deposits of the five banks totalled $12 million and the disbursements of the Corporation amounted to more than $7 million. The four banks which suspended had 15,352 depositors of which all but 161 were fully protected. The bank which merged had 10,455 accounts. None of the owners of these accounts suffered any loss. Further details are given in Table 1, together with figures for depositors’ recoveries and losses in insured banks in financial diffi culties throughout the entire 10 years of deposit insurance. 14 FEDERAL DEPOSIT INSURANCE CORPORATION T a b le 1 . DEPOSITORS' RECOVERIES AND LOSSES IN INSURED BANKS in F in a n c ia l D if f ic u l t ie s , 1934-1943 Total 1934-1943 Banks closed or merged in 1943 Number of banks................................................................................................ 395 5 Num ber of depositors.................................................................................... 1,290,137 25,807 Depositors suffering no loss.......................................................................... Depositors suffering loss: Claims filed, but recoveries from liquidation inadequate1.............. Claims not filed within period prescribed by law............................... 1,247,332 25,646 4,770 38,035 161 A m ount of deposits........................................................................................ $497,262,000 $12,481,000 Estimated recoveries by depositors............................................................ Estimated losses by depositors filing claims1........................................... Estimated losses because of failure to file claims.................................... 494,029,000 2,807,000 426,000 12,403,000 78,000 1 1,617 depositors will lose an estimated $2,711,000 of their deposits in accounts which exceeded the limit of $5,000 insurance and which were not otherwise protected; and 3,153 depositors will lose about $96,000 in accounts which had been restricted or deferred prior to 1934 or were otherwise ineligible for insurance protection. The corporation has made bank deposits available as rapidly as possible after the suspension of insured banks. At the end of 1943 only 1 percent of the insured deposits in all of the banks which closed during the past 10 years remained unpaid, and most of these were in one bank which had closed late in 1943. A large part of the $5.8 million unpaid at the end of the year, that part which was in uninsured deposits, may eventually prove to be a loss to depositors, although only $0.4 million had been lost by depositors in the 136 banks whose receiverships had been terminated by December 31,1943. Data on the payment of deposits are given in Table 2 and in Table 126, page 105. T a b le 2. PAYMENT OF DEPOSITS OF INSURED BANKS PLACED IN R e c e iv e r s h ip , 1934-1943 Total Paid by Dec. 31, 19431 Deposits— to ta l.................................................................. $109,079,000 $103,310,000 $5,769,000 Insured............................................................................... Secured, preferred, and subject to offset................... Deposits in excess of $5,000 not otherwise protected Restricted or otherwise uninsured.............................. Unclaimed3........................................................................ 86.850.000 11.067.000 9,803,000 933.000 426.000 86,008,000 10,966,000 5,613,000 706,000 17,000 842.000 101.000 4,190,000 227.000 409.000 Unpaid on Dec. 31, 1943s 1 Payment made by the Federal Deposit Insurance Corporation and by receivers. 2 Includes loss of $396,000 in banks whose receiverships have been terminated. 3 Unclaimed deposits paid are held in trust to pay deposits unclaimed at termination of receivership. During 1943 the Corporation was successful in liquidating many of the assets which it had acquired in earlier years from banks which were in an unsound condition. The assets were taken over by the Corporation as the unsound banks were merged with solvent in OPERATION OF THE CORPORATION IN 15 1943 stitutions or were claims against receivers of closed banks. The assets and liabilities of the banks placed in receivership or merged are given in Tables 125 and 127, pages 104 and 106. The proceeds from the sale of assets acquired in connection with mergers amounted to about $28 million in 1943. This brought col lections for the ten years during which the Corporation has operated to $143 million, including about $29 million for repayment of expenses. It is expected that final losses on these assets will not exceed $25 million from a principal disbursement of $172 million. Repayments to the Corporation during the year from banks in receivership amounted to nearly $4 million. This brought collections from this source to a total of $55 million. It is expected that final losses in these banks will not exceed $20 million from a disbursement of $86 million in the payment of insured deposits during the decade of the Corporation's operations. The disbursements of the Corporation during the past ten years are shown in Table 3. T a b le 3. DISBURSEMENTS OF THE CORPORATION IN CONNECTION WITH BANKS in F in a n c ia l D if f ic u l t ie s , Amount of disbursement (in millions) Number of banks Placed in receiver ship Total 1934-1943 Merged Total1 Insured deposits paid Loans and assets purchased T o ta l..................... 395 244 151 $258 $86 $172 1943................... 1942................... 1941................... 1940................... 1939................... 5 20 15 43 60 4 6 8 19 32 1 14 7 24 28 7 11 24 74 68 5 2 12 5 26 2 9 12 69 42 1938................... 1937................... 1936................... 1935................... 1934................... 74 75 69 25 9 50 50 42 24 9 24 25 27 1 30 19 15 9 1 9 12 8 6 1 21 7 7 3 1 In addition, the Corporation disbursed $1,160,000 to purchase assets from the liquidators of 53 insured banks in receivership. Receivership activities of the Corporation. At the close of 1943 the Corporation was acting as receiver for 40 of the 108 insured banks still in receivership. It was receiver for 11 national banks with deposits at time of suspension aggregating $16 million and for 29 State banks with deposits aggregating $7 million. The Corporation maintains close contact with the receivers of the remaining 68 State banks, which at time of suspension had deposits of $55 million. Bank examinations. To the extent permitted by a shortage of employees the Corporation in 1943 continued its policy of examining 16 FEDERAL DEPOSIT INSURANCE CORPORATION annually each insured State bank not a member of the Federal Reserve System. The changing nature of bank assets has enabled the Cor poration to simplify some of its examination procedures, and to eliminate much tedious detail without reducing the effectiveness of the examination process or impairing its usefulness to the Corporation. The resultant saving in time enabled the Corporation substantially to maintain its schedule of examinations. The number of examinations and investigations of banks believed to require special attention was smaller in 1943 than in former years. As in former years the Corporation reviewed reports of examination of insured banks members of the Federal Reserve System made by examiners of that system or by the Office of the Comptroller of the Currency. Unsafe and unsound banking practices and violations of law or regulations. During 1943 proceedings were initiated against six banks and were continued against seven other banks. The status of these cases at the end of the year, and also a summary of all cases for the entire period since the effective date of the Banking Act of 1935, are given in Table 4. A list of the practices engaged in by banks against which proceedings were initiated in 1943 is given in Table 5. T a b le 4 . w it h E ACTION TO TERMINATE INSURED STATUS OF BANKS CHARGED n g a g in g in of U nsafe Law or or U nso u n d R e g u l a t io n s , P r a c t ic e s or V io l a t io n s 1936-1943 Cases in 1943 Total cases 1936-19431 Pending beginning of year Started during year T otal banks against which action was taken................... 129 7 6 Cases closed during period................................................... Corrections made..................................................................... Insured status terminated, or date for such termination set by Corporation, for failure to make corrections: Banks suspended prior to or on date of termination of insured status2.................................................................. Bank continued in operation3........................................... Bank suspended prior to setting of date of termination of insured status by Corporation................................ Banks absorbed or succeeded by other banks4............. 123 20 5 4 2 32 61 1 Cases pending December 31, 1943...................................... Deferred pending consummation of plans for reorganiza tion or recapitalization....................................................... Deferred pending reexamination.......................................... Correction period not expired............................................... 6 2 4 2 2 2 1 1 1 1 2 7 3 2 1 No action to terminate status of any insured bank was taken before 1936. In 4 cases where initial action was replaced by action based upon additional charges, only the later action is included. 2 Includes one national bank which, in accordance with the provisions of the law, suspended im mediately following the action of the Corporation in terminating its insured status. * One of these suspended 4 months after its insured status was terminated. 4 In all except 3 of the 61 cases the Corporation made loans to facilitate the mergers or reorganizations. Back data— See the following Annual Reports of the Corporation: 1941, p. 188; 1942, p. 13. OPERATION OF THE CORPORATION IN Table 5 . 17 1943 UNSAFE OR UNSOUND BANKING PRACTICES AND VIOLATIONS OF L a w o r R e g u l a t i o n s C h a r g e d A g a in s t S ix B a n k s b y t h e C o r p o r a t io n D u r in g 1943 Type of practice or violation Capital: Operation of bank with seriously impaired capital.................................... Continued operation of the bank with a net capital inadequate to give reasonable protection to depositors, particularly in view of the large amount of substandard assets......................................................................... Inadequacy of available funds and insufficiency of earnings to provide for current and developing losses............................................................... Number of banks charged Case identi fication letters b, e, f a, b, d, e a, b, d, e, f M anagement and general practices: Lax credit and collection policies.................................................................... Continued carrying of losses in bank’s assets failing to disclose true state ment of condition................................................................................................ Operation of bank by weak, hazardous, untrustworthy, or incapable management..................................................................................................... Unwarranted and illegal dividends to stockholders.................................... Excessive amount of contingent liabilities in the trust department and of probable and possible losses resulting therefrom........................................ Transfer of deposits to a noninsured bank without permission of this Corporation...................................................................................................... a, b, e Loan and investment practices: Failure of the bank’s management to dispose of assets of substandard quality including other real estate, some of which had been carried beyond the period fixed by law................................................................... Large and excessive amount of assets subject to adverse classification, or assets of substandard quality and of doubtful value and upon which substantial losses are probable.................................................................... e, £ a, b a, b a, b, d, e, f Other actions of the Corporation. During 1943 the Corporation approved applications of 194 banks for admission to insurance. Of these banks, 35 were new banks (including five which replaced closed banks or closed branches of insured banks), 147 were banks in operation at the beginning of the year, and 12 were insured banks reorganizing or withdrawing from the Federal Reserve System. The applications for admission to insurance of two banks were disapproved, approvals in three cases were rescinded, and in 14 of the banks approved for admission, insurance had not become effective by the end of the year. In addition, 8 banks whose applications were approved during the preceding year became insured during 1948. Three other banks became insured through admission to membership in the Federal Reserve System.' Further details regarding admission to insurance, and also figures regarding the number of insured banks which ceased operations or otherwise terminated their insured status, are given in Table 101, page 68. During 1943 the Corporation approved the applications of 35 banks to establish 43 branches.2 In addition, about 180 branches were opened 1 These do not include two new banks in process of organization which were approved for admission to insurance by the Corporation but became operating insured banks as members of the Federal Reserve System. 2 This figure includes applications to continue in operation branches of banks which were being absored or succeeded. In addition, continuance of operation of 60 branches by 36 banks admitted to insurance was approved by the Corporation. 18 FEDERAL DEPOSIT INSURANCE CORPORATION for business by national and State banks members of the Federal Reserve System.1About four-fifths of the branches opened for business by insured banks during the year were for the purpose of providing banking services at military establishments. Further details regarding changes in the branches operated by insured banks are given in Table 101, page 68. Insured banks supervised by the Federal Deposit Insurance Cor poration are required by law to secure the Corporation’s approval to retire any part of their capital obligations. Applications for the retirement of capital stock were filed by 486 such banks in 1943. The retirement of obligations held by the Reconstruction Finance Corporation in amounts aggregating $7,181,000 and of those held by others in amounts aggregating $1,670,000, was approved. The Cor poration disapproved the retirement of obligations amounting to $1,766,000. During the year the Corporation approved the assumption by insured banks of deposit liabilities of six noninsured institutions. In four insured banks the Corporation approved the payment of waived deposits or certificates of beneficial interest representing deposits which had been waived at the time of the Banking Holiday of 1933. Semi-annual statements of deposits were submitted by each insured bank as required by law for the purpose of determining the amount of the deposit insurance assessment. The Corporation called for reports of assets, liabilities, and capital accounts as of June 30 and December 31, 1943, and for reports of earnings, expenses, and dis position of profits for the calendar year 1943, from each insured bank required by law to submit such reports to the Corporation.2 Summaries of the tabulations from the reports of assets, liabilities, and capital accounts are given in the pamphlets “ Assets and Liabilities of Operating Insured Banks” , Report No. 19 and Report No. 20, and in Table 106 of this report, page 80. Summaries of the reports of earnings, expenses, and disposition of profits are given in Tables 121-123, pages 96-101 of this report. L e g a l D ev e l o p m e n ts A b so r p tio n o f exchange. On December 6, 1943, the Board of Directors of the Federal Deposit Insurance Corporation ruled that absorption by an insured bank not a member of the Federal Reserve System of exchange charges in connection with routine collection of checks cannot be considered a payment of interest in the absence 1 These banks are not required to obtain Corporation approval for establishment of branches. 2 With the exception of banks in the District of Columbia and national banks in the possessions, all insured banks not members of the Federal Reserve System are required to submit such reports to the Corporation. LEGAL DEVELOPMENTS 19 of facts or circumstances establishing that the practice is resorted to as a device for the payment of interest.1 This ruling was issued in response to a number of requests received subsequent to an inter pretation published in September 1943 by the Board of Governors of the Federal Reserve System, and applied generally to all member banks, that absorption of exchange by a member bank of the Federal Reserve System constituted a payment of interest on demand deposits. During December, the Committee on Banking and Currency of the House of Representatives called upon officials of the Board of Governors of the Federal Reserve System and this Corporation to explain the rulings and the differences in interpretation of the two agencies. The Corporation’s representatives contended that the ruling holding absorption of exchange to be a payment of interest on demand deposits went beyond the intent of the law and was another attempt to force par clearance upon nonmember banks. In January 1944 identical bills, H. R. 3956 and S. 1642, were introduced into the Congress declaring that absorption of exchange shall not be deemed to be a payment of interest upon demand deposits, thus setting aside the ruling of the Board of Governors of the Federal Reserve System. After extensive hearings, the House of Representa tives on March 2, 1944, passed H. R. 3956 by an overwhelming voice vote. In the course of the hearings and the debate on the bill, it became clear that the paramount issue was whether an administrative ruling prohibiting absorption of exchange charges should be upheld on the ground of its contribution to par clearance and its restriction of competition among banks for deposits, when the ruling was predicated upon a statute which did not forbid absorption of exchange and which authorized regulation not of competition but only of payment of interest. The House of Representatives took the position that such a ruling should not be upheld, thus supporting the position of the Corporation that absorption of exchange is not interest. Other legal developments affecting the Corporation or in sured banks. War loan deposits, which are accounts to the credit of the United States Government arising from subscriptions by or made through banks for U. S. Government securities issued under the Second Liberty Loan Act, were exempted from deposit insurance assessments by Public Law 37,78th Congress, approved April 13,1943. The exemption will continue until six months after the cessation of hostilities. Under Public Law 49, 78th Congress, known as the War Overtime Pay Act of 1943, approved May 7, 1943, employees of the Federal 1 The ruling of the Federal Deposit Insurance Corporation was revised in March 1944 to apply to exchange charges absorbed in the regular course of business rather than to “routine” collection of checks only. The revision was one of form and not of substance. The revised ruling is given on page 48 of this report. 20 federal d e p o s it in s u r a n c e c o r p o r a t io n Deposit Insurance Corporation are paid for overtime during the war emergency on the same basis as other employees of the Federal Government. On February 25, 1944, Congress enacted the Revenue Act of 1943, section 113 of which specifically authorizes the use of reserves for bad debts (at the discretion of the Commissioner of Internal Revenue) as a deduction from income in determining tax liabilities. This will permit banks to make adequate provision for future losses during periods of prosperity so as to safeguard their capital from impairment during periods of crises. The Coiporation has repeatedly urged that banks set aside reserves for losses annually in the form of valuation allow ances or unallocated charge-off or in some other manner against those groups of assets in which losses ordinarily arise. Authority to deduct such annual reserves from profits in computing income tax liabilities must be obtained from the Commissioner of Internal Revenue. Public Law 159, approved October 15,1943, amended the National Housing Act by extending until July 1, 1945, the date after which eligible war housing mortgages may not be insured by the Federal Housing Commissioner out of the War Housing Insurance Fund; and until July 1,1946, the date after which eligible mortgages may not be insured by the Commissioner out of the Mutual Mortgage In surance Fund; and until July 1, 1947, the authority of the Federal Housing Commissioner to insure qualified banks, trust companies, and other financial institutions against losses as a result of loans or ad vances made to finance housing construction, repair, alterations, etc. Public Law 159 also increased the maximum premium which may be charged for the latter insurance from three-fourths of one percent to one percent per annum on the net proceeds of such loans or advances. Public Law 158, approved October 14, 1943, amended the National Housing Act to provide that, in respect to mortgages covered by certain provisions of the Soldiers’ and Sailors’ Civil Relief Act and insured by the Commissioner out of the Mutual Mortgage Insurance Fund or the War Housing Insurance Fund, any debentures issued in payment of such insurance may include amounts sufficient to com pensate the mortgagee for losses on account of interest or insurance premiums by reason of having postponed foreclosure proceedings during the period of military service and three months thereafter.1 The text of pertinent provisions of these acts, except Public Laws 158 and 159, is given on pages 45-48 of this report. State Legislation. Regular sessions of State legislatures were held during 1943 in 44 States. In five of these States legislation was enacted 1 The Federal Housing Administration and its functions, powers and duties including those of the Administrator thereof were consolidated into the National Housing Agency by Executive Order of the President No. 9070 promulgated on February 24, 1942 (7 F. R. 1529). LEGAL DEVELOPMENTS 21 which affects insured banks or the operations of the Federal Deposit Insurance Corporation. In California the Civil Code was amended to provide that the deposit of trust funds at interest in a savings bank or savings de partment of the trustee bank shall be deemed a qualified investment to the extent such deposit is insured by the Corporation or to such greater extent as a court of competent jurisdiction may authorize. (Ch. 811). The California Bank Act was also amended to authorize ex parte court orders for deposit of moneys by executors or other fiduciaries where the amount sought to be deposited is fully insured by the Corporation. (Ch. 194). The legislature of Idaho enacted a law providing for the establish ment of bank agencies, as distinguished from a branch bank, by a bank or branch organized and existing under the State law and insured by the Corporation. These agencies have only such powers as are expressly granted them in the act providing for their establishment. The bank or branch may qualify the agency to receive deposits of public funds to the same extent as if it were a branch. The approval of the Corporation and the Commissioner of Finance of the State is required prior to the establishment of any such agency. (Ch. 106). In South Dakota the Code of 1939 relating to the depositaries of municipal funds was amended to provide that no bond or other security shall be required for such part of public funds as is insured by the Corporation. (Ch. 166). In Texas the former law authorizing the Corporation, as receiver or liquidator of a closed insured bank, to enforce the double liability of stockholders in such bank was repealed inasmuch as such liability of stockholders has also been repealed. (Banking Code 1943, Art. 11). In Vermont the public law prescribing statutory liability of stock holders of trust companies was amended so as to exclude from such liability the stockholders of trust companies insured by the Cor poration. (Pu. Act 133). Most of the State legislatures which met during 1943 adopted legislation amending their banking laws. A summary of such legislation appears on pages 49-56. O r g a n iza t io n a n d F in a n c ia l S t a te m e n t s op t h e C orpo ratio n Organization and staff of the Corporation. No changes in the directorship of the Corporation occurred during 1943. Mr. Leo T. Crowley continued as Chairman; Mr. Phillips Lee Goldsborough and Mr. Preston Delano, Comptroller of the Currency, continued as Directors throughout the year. FEDERAL DEPOSIT INSURANCE CORPORATION 22 On December 31, 1943, the total personnel of the Corporation consisted of 1,899 officers and employees, compared with 2,411 at the beginning of the year and 2,538 at the close of December 1941. At the close of 1943, 259 employees were on military furlough for service in the armed forces. Known deaths among this group numbered two. The number of officers and employees in each division of the Corpora tion as of December 31, 1943, is given in Table 6. T a b le 6 . OFFICERS AND EMPLOYEES OF THE FEDERAL DEPOSIT I n s u r a n c e C o r p o r a t io n , D 31, 1943 ecem ber Officers and Clerical, adminis stenographic, trative, supervisory, and custodial and technical employees employees Total T o ta l................................................................................................... 1,899 748 1,151 Washington office....................................................................... Chicago office.............................................................................. Field............................................................................................ 262 276 1,361 77 111 560 185 165 801 Directors........................................................................................ 3 3 Executive Division....................................................................... Washington office....................................................................... Chicago office.............................................................................. 29 26 3 13 12 1 16 U 2 Legal Division............................................................................... Washington office...................................................................... Chicago office.............................................................................. 34 18 16 17 9 8 17 9 8 Division of Examination............................................................ Washington office....................................................................... Field............................................................................................ 552 U2 510 394 20 37U 158 22 136 Division of Research and Statistics......................................... Washington office....................................................................... 44 U 19 19 25 25 Division of Liquidation............................................................... Chicago office.............................................................................. Field............................................................................................ 950 99 851 234 U8 186 716 51 665 Division of Administration........................................................ Washington office....................................................................... Chicago office.............................................................................. 175 129 U6 19 lk 5 156 115 U1 Audit Division.............................................................................. Chicago office.............................................................................. 27 27 20 20 7 7 Fiscal and Accounting Division................................................ Chicago office.............................................................................. 85 85 29 29 56 56 Early in the year 1943 effect was given to an action of the Board of Directors to divide the Division of Finance and Administration into three divisions—Division of Administration, Fiscal and Accounting Division, and Audit Division. Later in the year, the special assistants and aides to the Board of Directors, the personnel of the office of the Secretary, and other personnel not previously attached to divisions were incorporated into an Executive Division. An organization chart of the Corporation is shown on page iv. 23 ORGANIZATION AND FINANCIAL STATEMENTS Income and expenses. The total income of the Corporation for the calendar year 1943 was $86.7 million, of which $70 million was from assessments upon banks, $16.7 million from investments and assessments upon credit unions. Deposit insurance losses and expenses amounted to $2.2 million and administrative expenses were $4.2 million, leaving a net addition to surplus for the year of $80.3 million. The re-appraisal of the assets of closed banks held by the Cor poration which was made during the year indicated that the losses on these assets would be less than had been previously estimated. An adjustment of $6 million was therefore made in the surplus of the Corporation applicable to previous years. A summary statement of the income and expenses of the Cor poration for each year since its organization is given in Table 7. The figures for deposit insurance losses and expenses, and for net income added to surplus, shown in this table for each year differ from those shown in the Annual Report of the Corporation for 1942 because of the revision in the estimate of losses which will be sustained by the Corporation. A detailed statement for the year 1943 is given in Table 8. T a b le 7 . INCOME AND EXPENSES OF THE FEDERAL DEPOSIT INSURANCE C o r p o r a t io n S in c e B e g in n in g O p e r a t io n s 1 (In millions of dollars) Income Total Expenses Deposit Investment insurance income and assess profits3 ments2 Total Deposit insurance losses and expenses Adminis trative expenses4 Net income added to surplus 1933-1943................ 492.6 389.0 103.6 78.8 44.9 33.9 413.8 1943...................... 1942...................... 1941...................... 1940...................... 1939...................... 1938......... i .......... 1937...................... 1936...................... 1935...................... 1933-345................. 86.7 69.4 62.0 55.9 51.2 47.8 48.1 43.8 20.7 7.0 70.0 56.5 51.4 46.2 40.7 38.3 38.8 35.6 11.5 16.7 12.9 10.6 9.7 10.5 9.5 9.3 8.2 9.2 7.0 6.4 5.3 5.2 15.9 17.4 6.5 6.8 5.3 5.6 4.4 2.2 1.3 1.5 12.3 14.0 3.5 4.1 2.8 2.9 .3 4.2 4.0 3.7 3.6 3.4 3.0 2.7 2.5 2.7 64.1 80.3 64.1 56.8 40.0 33.8 41.3 41.3 38.5 15.1 2.6 figures of total expenses, deposit insurance losses and expenses and net income added to surplus for years prior to 1943 differ from those shown in previous Annual Reports because of revisions in estimates of losses allocated to the different years. 2 Assessments collected from insured banks, members of the temporary insurance funds, were credited to their accounts in total at the termination of the temporary funds, being applied toward subsequent assessments under the permanent insurance fund, and resulting in no income to the Corporation from assessments for the terms of the temporary insurance funds. 3 Includes assessments and fees collected from Federal credit unions. 4 Includes furniture, fixtures, and equipment purchased and charged off. 6 Includes expenses from date of organization, September 11, 1933, to December 31, 1934. 6 After deducting portion of expenses and losses charged to banks withdrawing from the temporary funds on June 30, 1934. 24 FEDERAL DEPOSIT INSURANCE CORPORATION Table 8. Income and Expenses op t h e F e d e r a l D eposit In su ran ce C orporation , C a len d a r Y e a r 1943 Incom e: Deposit insurance assessments............................................................... $ 70,018,414.75 Interest earned (less provision for amortization of premiums) and profit on government obligations sold.............................................. 16,336,704.63 Other income.............................................................................................. 318,875.39 Total in com e...................................................................... $ 86,673,994.77 Expenses: Deposit insurance losses and expenses................................................. $ 2,187,622.71 Administrative expenses (see below).................................................... 4,162,184.95 Furniture, fixtures, and equipment purchased and charged off . . . 25,733.30 Total expenses.................................................................... $ Net income added to surplus...................................... $ 80,298,453.81 6,375,540.96 Surplus December 31, 1942: As previously reported............................................................................. $327,643,640.08 Plus— net adjustments applicable to periods prior to Jan. 1, 1943 5,812,928.67 Surplus as adjusted December 31, 1942.................. $333,456,568.75 Surplus December 31, 1943........................................... $413,755,022.56 DISTRIBUTION OF a d m in is t r a t iv e expenses Salaries.................................................................................................................................... Professional services............................................................................................................. Services of other governmental agencies......................................................................... Transportation...................................................................................................................... Subsistence............................................................................................................................. Office rental............................................................................................................................ Printing, stationery, and supplies.................................................................................... Postage, telephone, and telegraph.................................................................................. Insurance and fidelity bond premiums............................................................................ Subscriptions.......................................................................................................................... Equipment rental.................................................................................................................. Repairs and alterations....................................................................................................... Transportation of things..................................................................................................... Miscellaneous......................................................................................................................... Miscellaneous income and other credits applicable to reduction of administrative expenses....................................................................... Inter-departmental expense transfers................................................... Administrative expenses for the year ended December 31,1943 $ $ $ 3,146,181.96 24,571,50 4,667.45 118,701.41 474,411.80 272,219.26 85,375.34 49,963.36 1,122.75 11,223.10 6,930.60 13,799.93 10,118.22 3,359.06 4,222,645.74 $ 4,162,184.95 20,722.27 39,738.52 60,460.79 Assets and liabilities. On December 31, 1943, the Corporation held assets acquired through bank suspensions and mergers amounting at face value to a total of $85 million which were carried on the books of the Corporation at a net or appraised value of $46 million, United States Government securities valued at $639 million, and cash amounting to $20 million. Total capital of the Corporation consisted of $289 million capital stock issued at its organization and $414 million accumulated surplus. Balance sheets of the Corporation as of December 31,1942 and 1943, are given in Table 9, 25 ORGANIZATION AND FINANCIAL STATEMENTS T a b le 9. ASSETS AND LIABILITIES OP THE FEDERAL DEPOSIT INSURANCE C o r p o r a t io n , D ecem ber 31, 1943, and D ecem ber 31, 1942 1942 1943 ASSETS Assets acquired through bank suspensions and mergers: Subrogated claims of depositors against closed insured banks. . . Net balances of depositors in closed insured banks pending settle ment or not claimed, to be subrogated when paid— contra. . Loans to merging insured banks to avert deposit insurance losses and recoverable liquidation expenses........................................... Assets purchased from merging insured banks, to avert deposit insurance losses, under agreements to return any excess re covery to selling banks...................................................................... Assets purchased from merging insured banks and receivers of closed insured banks to avert deposit insurance ’ $ 25,805,676.76 $ 27,112,952.50 841,927.72 351,254.13 29,412,363.96 39,872,584.89 28,041,173.53 38,314,820.58 696,387.25 $ 84,797,529.22 988,606.36 $106,640,218.46 Less: Reserve for losses................................................................... 38,547,754.80 $ 46,249,774.42 44,584,295.97 $ 62,055,922.49 Cash on hand and on deposit...................................................... 19,961,081.20 19,359,639.29 United States Government securities (cost less reserve for amortization of premiums) and accrued interest receivable 638,776,370.88 536,827,041.84 Due from Governmental agencies................................................ 292,931.08 308,037.43 Miscellaneous receivables................................................................. 109,775.64 110,397.75 Furniture, fixtures, and e q u ip m e n t............................................ 1.00 1.00 Deferred charges.................................................................................. . 73,911.69 82,805.27 T otal assets..................................................................... $705,463,845.91 $618,743,845.07 $ $ LIABILITIES Current liabilities: Accounts and assessment rebates payable................................... Earnest money deposits and collections in suspense...................... Net balances of depositors in closed insured banks pending settlement or not claimed— contra............................................. 421,550.06 904,320.42 841,927.72 477,399.09 840,452.79 351,254.13 Deferred credits.................................................................................... 107,619.54 4,379.48 Reserve for deposit insurance expenses..................................... 133,848.62 127,162.51 Total liabilities........................................................... $ 2,409,266.36 $ 1,800,648.00 CAPITAL Capital stock: United States....................................................................................... Federal Reserve banks...................................................................... Surplus— (see Table 8 ) ..................................... $150,000,000.00 139,299,556.99 $150,000,000.00 139,299,556.99 $289,299,556.99 $289,299,556.99 413,755,022.56 327,643,640.08 Total capital............................. . $703,054,579.55 $616,943,197.07 Total liabilities and capital. $705,463,845.91 $618,743,845.07 Audit. In accordance with the Corporation's policy of having an annual independent audit, the accounts as of June 30, 1943, were audited by Arthur Andersen & Co. The balance sheet of the Corpora tion as of that date, as shown in the auditors’ report, is given in Table 10. The auditors’ certificate is given on page 28. 26 FEDERAL DEPOSIT INSURANCE CORPORATION T ab le 10. FEDERAL D Ju n e e p o s it INSURANCE CORPORATION BALANCE SHEET 30, 1943— from a u d it o r s ' report ASSETS Cash on deposit, in transit and on hand................................. United States Government Securities and accrued interest receivable thereon: Principal amount $570,043,400, stated at cost ($573,394,017.19), less reserve for amortization of premiums ($1,845,336.86) . . . Accrued interest receivable................................................................. Assets acquired through bank suspensions and mergers, less collections: Subrogated claims of depositors against closed insured banks. . Net balances of depositors in closed insured banks pending settlement or not claimed, to be subrogated when paid— per contra........................................................................................... Loans made to, and assets purchased from, merging insured banks to reduce or avert deposit insurance losses— Loans, and recoverable liquidation expenses (Note 1 )........ Assets purchased under agreement to return any excess recoveries to the selling banks, and recoverable liquida tion expenses (Note 1 )............................................................ Assets purchased, other............................................................... Assets purchased from receivers of closed insured banks............ Less— Reserves for losses.................................................................... Miscellaneous receivables and deferred charges: Receivable from other governmental agencies............................... Federal Credit Union examination and supervision fees............. Other........................................................................................................ Furniture, fixtures and equipm ent, at nominal value........... $ 32,112,817.18 $571,548,680.33 1,785,212.44 573,333,892.77 $ 25,742,036.04 446,126.57 34,459,768.53 32,076,233.98 557,907.52 219,007.89 $ 93,501,080.53 38,792,706.64 $ 93,466.62 54,708,373.89 485,569.92 112,445.82 691,482.36 1.00 $660,846,567.20 NOTES: (1) Loans to merging insured banks are evidenced by demand notes bearing interest at the rate of 4 % per annum, and the Corporation is entitled to a return of 4% per annum with respect to its invest ments in assets purchased from merging insured banks under agreements to return any excess recoveries to the selling banks. The Corporation follows the practice of taking into income only such amounts of interest and allowable return as are realized after recovery in full of its investments (including recover able liquidation expenses) in the respective loans and purchased assets. The amount of such interest realized during the year ended June 30, 1943 was $90,343.30. (2) From time to time as appraisals or reappraisals are made, the Corporation revises its estimates of probable losses on assets acquired and carries directly to surplus the resulting adjustments of the reserve for losses insofar as such adjustments relate to assets acquired through bank suspensions and mergers which occurred in prior periods. However, in the summary of surplus shown in the foregoing balance sheet, such adjustments (net credit of $4,771,231.79) recorded during the year ended June 30, 1943 have been applied in reduction of deposit insurance losses and expenses for the year. (3) Under the provisions of Section 12B of the Federal Reserve Act, as amended by Title I of the Banking Act of 1935 (subsection “ o” ), the Corporation is authorized and empowered to issue and to have outstanding its notes, debentures, bonds or other such obligations in a par amount determined in accord ance with said provisions, which amount at June 30, 1943, was $974,601,498.36. The Secretary of the Treasury, in his discretion, is authorized to purchase such obligations of the Corporation; and he is authorized and directed to purchase obligations of the Corporation in an amount not to exceed $250,000,000 par value whenever in the judgment of the Board of Directors of the Corpora tion additional funds are required for insurance purposes. 27 ORGANIZATION AND FINANCIAL STATEMENTS T a b le 10. F e d e r a l DEPOSIT INSURANCE CORPORATION BALANCE SHEET Ju n e 30, 1943— from a u d it o r s ' r e p o r t — Continued LIABILITIES Liabilities: Accounts payable.................................................................................. Earnest money deposits and collections in suspense, arising from assets acquired through bank suspensions and mergers. .. . Net balances of depositors in closed insured banks pending settlement or not claimed— per contra........................................ Reserve for expenses of paying insured deposits........................... Deferred credits..................................................................................... T otal liabilities..................................................... Capital stock and surplus (the entire capital stock and surplus is considered by the Corporation to constitute a reserve for future deposit insurance losses and related expenses with respect to insured banks. The Corporation estimates that the insured deposits in operating insured banks amounted to approximately $36. billion at June 30, 1943): Capital stock, without nominal or par value (nonvoting and not entitled to the payment of dividends)— Held by United States Government.................................... Held by Federal Reserve banks............................................ Surplus— Income and expenses for the year ended June 30, 1943— Income— Deposit insurance assessments. Interest earned and net profits from sales of United States Govern ment securities, less provision for amortization of premiums........ Other interest received (Note 1). Fees from Credit Unions (Note 4) Expenses— Deposit insurance losses and ex penses applicable to— Current-year cases and trans actions.................................. Prior-year cases (credit) (Note 2) T o ta l.................................... Administrative expenses (Note 4) Furniture, fixtures and equipment purchased................................. Excess of income over expenses.. Transfer from Farm Credit Adminis tration, Department of Agriculture (Note 4 )............................................ Surplus balance June 30, 1942............. Surplus balance June 30, 1943............. Total capital stock and surplus. $ 359,839.61 985,898.61 $ 446,126.57 137,465.92 98,402.92 2,027,733.63 $150,000,000.00 139,299,556.99 $289,299,556.99 $ 61,110,632.07 14,319,669.93 90,758.67 222,884.66 $ 75,743,945.33 $ ( ($ 1,612,099.56 4,771,231.79) 3,159,132.23) 4,212,329.79 33,213.12 $ 1,086,410.68 $ 74,657,534.65 273,846.75 294,587,895.18 $369,519,276.58 $369,519,276.58 658,818,833.57 $660,846,567.20 NOTES: (3) continued: The Reconstruction Finance Corporation, as provided in subsection (b) of section 5e of the Recon struction Finance Corporation Act, as amended, shall purchase at par value, such obligations of the Corporation as are authorized to be issued, upon request of the Board of Directors of the Corporation, whenever in the judgment of said Board additional funds are required for insurance purposes; provided, that the Reconstruction Finance Corporation shall not purchase or hold at any time said obligations in excess of $250,000,000 par value. If the Reconstruction Finance Corporation fails for any reason to purchase any of the obligations of the Corporation, the Secretary of the Treasury is authorized and directed to purchase such obligations in an amount equal to the amount of such obligations the Recon struction Finance Corporation so fails to purchase. (4) By Executive Order, the President of the United States transferred ail functions of the Farm Credit Administration under the Federal Credit Union Act to the Federal Deposit Insurance Corporation as of May 16,1942. These functions include the approval of applications and the issuance of organization certificates to Federal Credit Unions, the supervision thereof, and the field examinations of the financial reports of such unions. The order also provided for the transfer of the unexpended balances of appro priations or other funds available for such functions. During the period from May 16 to October 31, 1942 the income applicable to Credit Union activities was added to the funds so transferred and the expenses of these activities were paid from such funds. As of October 31, 1942, the Corporation discontinued the use of these funds for Credit Union activities, and thereafter took up the income received in, and paid the expenses from, the general funds of the Corporation. 28 FEDERAL DEPOSIT INSURANCE CORPORATION ARTHUR ANDERSEN & CO. 120 SOUTH LA SALLE STREET CHICAGO To th e B o a rd o f D ir e c to r s , Federal D e p o s it I n s u r a n c e C o r p o r a t io n : W e have examined the balance sheet of the F e d e r a l D e p o s it I n s u r a n c e (a corporation created under Section 12B of the Federal Reserve Act, as amended by Title I of the Banking A ct of 1935) as of June 30, 1943, and the related statement of income and expenses for the year then ended, which statement of income and expenses is summarized under the surplus account in the balance sheet. In connection therewith, we have reviewed the system of internal control and the accounting procedures of the Corporation and, without making a detailed audit of the transactions, have examined or tested accounting records and other supporting evidence maintained in the general office of the Corporation (except the records as to the closed insured banks for which the Corporation is receiver), by methods and to the extent we deemed appropriate. W e did not examine the collateral under loans to merging insured banks nor the documents evidencing ownership of assets purchased from insured banks, which collateral and assets for the most part are held by Liquidating Agents of the Corporation, but we reviewed reports as of various dates throughout the year prepared by the Corporation's internal audit department or inventories of assets purchased during the year prepared by the Corporation's examiners, covering their verification of such items. C o r p o r a t io n In our opinion, the accompanying balance sheet presents fairly the position of the Federal Deposit Insurance Corporation at June 30, 1943, and the results of its operations for the year ended that date. (Signed) Chicago, Illinois, November 15, 1943. A rthur A ndersen & Co. PART TWO DEPOSIT INSURANCE AND BANKING DEVELOPMENTS A s s e t s , L ia b i l i t i e s , and C a p it a l of I n s u r e d C o m m e r c ia l B a n k s During 1943 deposits of insured commercial banks continued to rise above the previous record levels of 1942. On December 31, 1943, total deposits of all insured commercial banks amounted to $104 billion, an increase of $16 billion, or 19 percent, for the year. The growth was chiefly in deposits of individuals, partnerships, and cor porations which increased by $14 billion. Deposits of the United States Government increased by nearly $2 billion. Deposits of State and local governments increased by $400 million while interbank deposits decreased by approximately the same amount. All other deposit items, consisting chiefly of cashier’s checks, also showed an aggregate increase of $400 million. The expansion in deposits was most marked in the smaller banks of the country. As in other recent years, the growth in deposits reflected chiefly the processes of war financing. A considerable part of the Govern ment’s needs was met by borrowing from the banks. This borrowing created new deposits, originally to the credit of the Government. These deposits were disbursed in payment of war goods and services and found their way into the balances of businesses and individuals, thus accounting for the large increase in deposits of individuals, partner ships, and corporations reported by the banks. Bank purchases of United States Government obligations resulted in a net growth in their holdings of these securities of $18 billion, or 44 percent, during 1943. As in the case of deposits, the growth in holdings of United States Government obligations was greatest among the smaller banks, particularly among the banks which charge exchange on remittances— the banks not on the par list. These latter banks increased their holdings of United States Government obligations by 116 percent during the year. Member banks of the Federal Reserve System in creased their holdings by 41 percent. The figures are shown in Table 11. Table 11. PERCENTAGE CHANGES DURING 1943 IN TOTAL DEPOSITS AND H o ld in g s o f U n it e d S t a t e s G o v e r n m e n t O b lig a t io n s op I n s u r e d C o m m e r c ia l B a n k s Total deposits United States Government obligations +19% +44% Members F R System.................................................................................. National........................................................................................................ State..................................................................... .......................................... + 18 + 19 + 16 +41 +43 +37 Not members F. R. System.......................................................................... On par list1 ................................................................................................... Other.............................................................................................................. +24 +22 +32 +82 + 75 + 116 All banks ............................................................................................................ 1 For character of par list and its relation to the practice of charging exchange on bank remittances, see page 66. 31 32 FEDERAL DEPOSIT INSURANCE CORPORATION The banks’ loans and discounts were reduced less than one-half of 1 percent. However, this stability in the aggregate volume of loans resulted from an increase in loans of banks in large cities and a de crease in loans of banks in other places. The 407 reserve city member banks of the Federal Reserve System increased their loans and dis counts by nearly $600 million, while the other insured banks, which include country banks members of the Federal Reserve System and insured commercial banks not members of the Federal Reserve System, reported declines of more than $600 million. In the reserve city banks loans for the purpose of purchasing or carrying securities increased by more than $700 million as a result of the activity of brokers and banks in connection with Government financing of the war, and commercial and industrial loans increased by $175 million, while consumer loans to individuals were reduced by $218 million. In the case of the other insured banks, substantial declines occurred not only in consumer loans to individuals but also in commercial and indus trial loans, agricultural loans, real estate loans, and all other loans. The figures for the changes in major types of loans for the two groups of banks are given in Table 12. Table 12. A m o u n t AND PERCENTAGE CHANGE DURING o f I n s u r e d C o m m e r c ia l B a n k s 1943 IN LOANS Amount of change (millions of dollars) Reserve city banks1 Other insured commercial banks2 Percentage change Reserve city banks1 Other insured commercial banks2 T otal loans and discounts................................................. +5 8 3 -648 + 5.3 -8 .2 Commercial and industrial loans...................................... + 175 -8 -218 + 721 -7 7 -10 -155 -129 -184 +68 -133 -115 + 2 .8 -2 .5 -18.6 + 55.7 -4 .7 -1 .9 -9 .7 -9 .7 -16.7 + 2 6 .9 -4 .4 -20.3 407 12,870 Consumer loans to individuals.......................................... Loans for purchasing or carrying securities4................. Real estate loans.................................................................. All other loans................................................... .. 1 Includes banks members of the Federal Reserve System classified as central reserve city banks and reserve city banks. 2 Includes banks members of|the Federal Reserve System classified as country banks and insured commercial banks not members of the Federal Reserve System. Country member banks include three mu tual savings banks and for this reason the sum of the figures in this column and the preceding column differ slightly from figures derived from those for all insured commercial banks given in Table 13 and in Table 106, page 80. 8 Includes loans secured by agricultural commodities, covered by purchase agreements of the Com modity Credit Corporation, and excludes loans on farm land. * Includes loans to brokers and dealers in securities and other loans for the purpose of purchasing or carrying securities. The banks’ holdings of securities other than obligations of the United States Government were reduced during the year by 10 percent, or $648 million. 83 ASSETS, LIABILITIES, AND CAPITAL OF INSURED COMMERCIAL BANKS The total amount of cash and balances with other banks, in cluding reserve balances and cash items in process of collection, held by insured commercial banks declined during 1943 by less than 2 percent. The figures for these items and for the other principal assets of all insured commercial banks at the beginning and close of 1943 are shown in Table 13. Table 13. At ASSETS OF INSURED COMMERCIAL BANKS B eginning and C lose of 1943 the Percentage distribution Amount (millions of dollars) Dec. 31, 1943 T otal assets....................................................... T otal cash assets and U. S. Govern m ent securities.................................. Currency and coin................................... Balances with banks including re serve balances........................................ Cash items in process of collection. . . . U. S. Government securities.................. T otal invested assets other than U. S. Government securities........ Other securities......................................... Loans and discounts................................ Fixed and miscellaneous assets............. Change during year Dec. 31, 1942 Dec. 31, 1943 Dec. 31, 1942 112,246 95,459 + 16,787 100.0% 100.0% 85,885 1,447 68,305 1,307 + 17,580 + 140 76.5 1.3 71.6 1.4 21,306 4,438 58,694 22,170 4,117 40,711 -864 + 321 + 17,983 19.0 3.9 52.3 23.2 4.3 42.7 26,361 5,985 18,843 1,533 27,154 6,632 18,907 1,615 -793 -647 -64 -82 23.5 5.3 16.8 1.4 28.4 6.9 19.8 1.7 Detailed figures— See Table 106, page 80. Quality o f assets. The quality of the banks' assets was considered by the examiners to be better in 1943 than in 1942, previously the best year of record. Classification of the assets of these banks during the two years is shown in Table 14. Table 14. CLASSIFICATION OF ASSETS OF INSURED COMMERCIAL BANKS, E xam in atio ns in 1942 and 1943 (Amounts per $100 of book value) Total assets Assets other than Securities cash and other than U. S. U. S. Government Government securities Loans Fixed and miscellaneous assets Assets criticized 1943......................................... 1942......................................... $1.30 2.29 $5.03 6.33 $7.87 9.58 $3.18 4.13 12.36 16.61 Examiners’ deductions (net) 1943......................................... 1942........................................ 0.07 .16 0.29 .43 0.24 .34 0.22 .32 1.02 1.74 Substandard 1943........................................ 1942......................................... 1.23 2.13 4.74 5.90 7.63 9.24 2.96 3.81 11.34 14.87 Detailed figures for 19J+3— See Tables 107 and 108, pages 82 and 83. 34 FEDERAL DEPOSIT INSURANCE CORPORATION The chief increase during 1943 in the banks’ assets was in holdings of obligations of the United States Government. At the close of the year these securities, together with cash and items due from other banks, were three-fourths of the insured commercial banks’ total assets. Review of the examiners’ reports regarding the remaining assets of the insured banks showed that not only was the proportion criticized lower than in any other year, but the amount criticized was also the smallest of record. The improvement in the condition of the banks is also shown by the increase in the number of banks with no substandard assets or with relatively small amounts of such assets. The improvement was general throughout the banking system and there was a reduction in the num ber of banks with a high proportion of substandard assets. In 1943 nine-tenths of the banks had either no substandard assets at all or held them in amounts equal to less than 5 percent of total assets; in 1942 three-fourths of the banks were so situated. The figures are shown in Table 15. Table 15. D istribution of I nsured C ommercial B a n k s A ccording Substandard A ssets R atio , E xam in atio n s in 1942 and 1943 Number of banks 1943 to Percentage distribution 1942 1943 1942 13,089 13,125 100.0% 100.0% 1,329 714 10.1 5.4 Less than $5.00.................................................. $5.00 to $9.99..................................................... $10.00 to $14.99................................................. 10,367 1,082 213 9,317 2,200 604 79.2 8.3 1.6 71.0 16.8 4.6 $15.00 to $19.99................................................. $20.00 to $24.99................................................. $25.00 or more................................................... 61 21 16 179 67 44 0.5 .2 .1 All banks1.............................................................. Banks with no substandard assets. . . Banks with substandard assets per $100 of appraised value of assets o f -2 1-4 3 .51 .3 , 1 Excludes banks operating less than the full year preceding either examination or whose operations were materially affected by mergers. 2 The appraised value of assets for each individual bank is an estimated average value of assets over a 12-month period. See pages 63-64. Capital. Total capital of the insured commercial banks increased by $397 million during 1943, reflecting the highest profits recorded since organization of the Federal Deposit Insurance Corporation. Notwithstanding this increase and the continued improvement in quality of assets generally, nearly 400 banks had fixed and substandard assets in excess of net sound capital at the time of examination in 1943. Of these banks, 43 held fixed and substandard assets in amounts that were more than double their net sound capital. The figures are shown in Table 16. ASSETS, LIABILITIES, AND CAPITAL OF INSURED COMMERCIAL BANKS 35 Table 16. D istribution of N umber and D eposits of I nsured C ommercial B a n k s A ccording to R atio of F ix e d and Substandard A ssets to N et Sound C apital , E xam inations in 1943 Number of banks Number Percentage distribution Amount (in millions of dollars) Percentage distribution 100.0% 94,087 100.0% 13,207 All b anks................................................................ Deposits Banks with fixed and substandard assets as percentage of net sound capital of— Less than 2 0 % ................................................... 20% to 3 9 % ....................................................... 40% to 5 9 % ....................................................... 5,288 4,289 2,034 40.0 32.5 15.4 36,069 33,686 13,569 38.4 35.8 14.4 60% to 7 9 % ....................................................... 80% to 9 9 % ....................................................... 100% to 1 9 9 % .................................................. 827 375 351 43 6.3 2.8 2.7 .3 7,291 1,545 1,731 196 7.8 1.6 1.8 .2 At the close of 1943 total capital accounts amounted to 28 percent of the combined total of loans, securities other than U. S. Govern ment, and fixed and miscellaneous assets, compared with 26 percent at the opening of the year. On December 31, 1943, total capital accounts amounted to 6.6 percent of total assets, compared with 7.4 percent one year earlier and 8.8 percent two years ago. E a r n in g s of I n su r e d C om m ercial B a n k s Total current operating earnings, total expenses, and taxes of the insured banks were the highest of any year of deposit insurance but the margin of net earnings was also highest. The figures are shown in Table 17. Table 17. E arnings , E xpenses , and T a x e s C ommercial B a n k s , 1934-1943 of I nsured (In millions of dollars) Year Total current operating earnings Expenses other than taxes Net current operating earnings before taxes Net current operating earnings after taxes All taxes 1943............................ 1942............................ 1941............................ 1940............................ 1939............................ 1,960 1,791 1,730 1,631 1,605 1,156 1,125 1,113 1,070 1,053 804 666 617 561 552 228 177 153 123 107 576 489 464 438 445 1938............................ 1937............................ 1936............................ 1935............................ 1934............................ 1,584 1,634 1,567 1,486 1,518 1,055 1,059 1,028 1,004 1,040 529 575 539 482 478 103 108 98 79 77 426 467 441 403 401 Detailed figures for 1 H 8 — See Table 121, page 96. 36 FEDERAL DEPOSIT INSURANCE CORPORATION Net profits after taxes of insured commercial banks in 1943 amounted to $638 million, the highest figure ever reported to the Corporation. The growth in profits reflected higher current operating earnings and recoveries on assets offset only in part by increased expenses and taxes. Net profits, dividends, and addition of profits to capital are shown in Table 18. T a b le 18. N et E arnings , C harge - offs , Profits , and D ividends I nsured C ommercial B a n k s , 1934-1943 of (In millions of dollars) Year Net current operating earnings after taxes Net profits after charge-offs and taxes Net chargeoffs1 Dividends2 Profits added to capital 1943............................ 1942............................ 1941............................ 1940............................ 1939............................ 576 489 464 438 445 *62 48 9 37 57 638 441 455 401 388 233 228 238 237 232 404 213 217 164 156 1938............................ 1937............................ 1936............................ 1935............................ 1934............................ 426 467 441 403 401 126 86 383 196 741 300 381 524 207 -340 222 226 223 207 188 78 155 301 -528 1 Book value of assets charged off, minus recoveries on assets previously charged off, and profits on securities sold. 2 Preferred and common cash dividends and interest paid on capital. 3 Non-operating profit. Detailed figures for 19US— See Table 121, page 96. For the first time since 1936, and for the second time since in auguration of Federal insurance of deposits, recoveries on assets and profits from sale of assets exceeded charge-offs. Net profits after charge-offs and taxes were nearly 50 percent higher in 1943 than in 1942. Dividends were about the same in the two years, and the amount of profits added to capital in 1943 was about double that added in 1942. The growth in net earnings and net profits from 1942 to 1943 was particularly marked in the large banks, while the small banks generally showed relatively smaller increases or reductions. These differences reflected chiefly the changing nature of bank income. Loans are a more important source of income to small banks than to large banks and the reduction in volume of loans outstanding has affected the earnings of the small banks adversely, even though they increased their holdings of United States Government securities more, proportionately, than did the large banks. The rates on total capital accounts of net current operating earnings before taxes and of net profits after taxes of insured commercial banks grouped by size of bank are shown for 1941, 1942, and 1943 in Table 19. 37 EARNINGS OF INSURED COMMERCIAL BANKS T a ble 19. N et E arnings and N et P rofits Per $100 of T otal C apital A ccounts of I nsured C ommercial B a n k s , 1941, 1942, and 1943 BANKS GROUPED BY AMOUNT OF DEPOSITS Net current operating earnings before taxes 1941 1942 1943 Net profits after charge-offs and taxes 1943 1942 1941 All b anks.................................... $10.80 $9.45 $9.04 $8.58 $6.26 $6.66 Banks with deposits of— $250,000 or less...................... $250,000 to $500,000............ $500,000 to $1,000,000 $1,000,000 to $2,000,000. . . 6.30 8.50 9.53 10.00 7.96 9.12 9.57 9.48 9.76 11.00 10.89 10.19 5.41 7.60 8.40 8.42 5.78 6.80 6.41 5.69 6.96 8.32 7.97 7.04 $2,000,000 to $5,000,000 . . . $5,000,000 to $10,000,000 . . $10,000,000 to $50,000,000.. More than $50,000,000........ 10.00 9.74 10.43 11.34 9.36 9.04 \ 9.54/ 9.50 9.58 9.59 8.35 7.97 7.52 7.76 9.07 5.37 4.78 \ 5.72/ 6.77 6.16 6.37 6.62 Detailed figures for 19US— See Table 123, page 100. Sources and rates of income. The chief increase in the income of insured commercial banks was from larger holdings of United States Government securities. Income from total securities in 1943 increased over 1942 by $250 million, or 40 percent. Other increases were chiefly from service charges on deposit accounts, and from other service, exchange, and collection charges. Income from loans was reduced, reflecting reduction in both amounts outstanding and rates of in terest received. Figures for the chief types of earnings each year since deposit insurance became effective are shown in Table 20. T a b le 20. A m o u n t s AND RATES OF INCOME RECEIVED, AND R A TE OP I n t e r e s t P a id , by I n s u r e d C o m m e r c i a l B a n k s , 1934-1943 Total current operating earnings (millions of dollars) from— Year Loans Securities Other sources Income on loans per $100 of loans1 Income on securities per $100 of securities1 Interest paid per $100 of time and savings deposits1 1943...................... 1942...................... 1941...................... 1940...................... 1939...................... 706 817 848 769 727 861 610 509 500 522 393 364 373 363 357 $3.85 4.08 4.27 4.41 4.46 $1.52 n.78 1.95 2.16 2.38 $0.93 1.10 1.20 1.30 1.43 1938...................... 1937...................... 1936...................... 1935...................... 1934............. 705 710 663 643 691 532 572 574 548 550 347 352 330 295 278 4.36 4.28 4.34 4.40 4.63 2.56 2.68 2.66 2.87 3.17 1.55 1.62 1.72 2.01 2.40 1 Loans, securities, and deposits are averages of figures reported at beginning, middle, and end of year by banks submitting statements of assets and liabilities. 2 For 1942, average securities are based on amounts reported at end of month in the Treasury survey of ownership of Government securities as well as upon amounts reported at call dates. Detailed figures for 19£ 3 — See Tables 121-123, pages 96-101. 38 FEDERAL DEPOSIT INSURANCE CORPORATION I n su r e d M u t u a l S a v in g s B a n k s On December 31,1943, the Federal Deposit Insurance Corporation was insuring deposits in 184 of the 545 mutual savings banks in the country. The insured banks operated 95 of the 136 branches of mutual savings banks. During 1943, 128 banks with their 60 branches, having deposits totaling about $4.5 billion, were admitted to in surance. One hundred twenty-five of these banks, with 173 offices, were located in New York State. The insured mutual savings banks held deposits of $7.5 billion on December 31, 1943, or 64 percent of the $11.8 billion of deposits in all mutual savings banks. Total assets of the 184 mutual savings banks insured as of December 31, 1943, increased from $7,570 million on December 31, 1942, to $8,364 million on December 31,1943, reflecting an increase in deposi tors’ accounts of about $758 million, and a net increase of $36 million in capital accounts, of which $27 million was from profits and $9 million, net, from other sources. Holdings of obligations of the United States Government increased by $1,011 million, or 36 percent, during the year and amounted to $3,844 million in the 184 banks on December 31, 1943. The average rate of dividends or interest paid depositors in in sured mutual savings banks was 1.57 percent in 1943, compared with 1.62 percent in 1942. The following figures show the dividends and interest reported for the year as a percentage of total deposits held at the end of the year, for each year from 1935 to 1943: 1943 1942 1941 1940 1939 1 .5 7 % 1 .6 2 % 1 .6 6 % 1 .7 3 % 1 .8 8 % 1938 1937 1936 1935 1 .9 1 % 1 .9 2 % 1 .9 6 % 2 .2 6 % Figures showing earnings, expenses, and dividends of insured mutual savings banks for 1943 are presented in Table 121, page 96. Condensed statements of assets and liabilities of both insured and noninsured mutual savings banks for December 31, 1943, will be found in Table 105, page 79. On July 1, 1943, when 121 New York savings banks were admitted to insurance, the Federal Deposit Insurance Corporation established an advisory council on savings banks. This council, composed of eight members most of whom are mutual savings bank presidents, will advise with directors and officers of the Federal Deposit Insurance Corporation in respect to matters of common interest. PART THREE SPECIAL REPORTS Sp e c ia l R e p o r t s It is the policy of the Corporation to present in this section special studies prepared for the administrative use of the Corporation but which also possess general interest. No such studies are available for publication at this time. 41 PART FOUR LEGISLATION AND REGULATIONS F e d e r a l L e g is l a t io n R e l a t in g or the to In s u r e d B a n k s C o r p o r a t io n W A R LO AN D E PO SITS [Public L a w 37— 78 th C ongress ] [Chapter 62— 1st Session ] [S. 700] AN ACT Suspending certain provisions of sections 12B and 19 of the Federal Reserve A ct until six months after the cessation of hostilities in the present war as deter mined by proclamation of the President or concurrent resolution of the Congress. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembledf That the second sentence of paragraph (1) of sub section (h) of section 12B of the Federal Reserve A ct (U. S. C., title 12, sec. 264 (h) (1) ), as amended, is hereby further amended by substituting a colon for the period at the end thereof and adding the following: “And provided further, That until six months after the cessation of hostilities in the present war as determined b y proclamation of the President or concurrent resolution of the Congress any balance payable to the United States b y any insured bank, whether represented by a deposit account or otherwise, arising solely as a result of subscriptions made by or through such insured bank for United States Government securities issued under authority of the Second Liberty Bond Act, as amended, shall be excluded from the definition of ‘deposit* for the purpose of determining the assessment base.” Sec. 2. The last sentence of section 19 of the Federal Reserve A ct (U. S. C., title 12, sec. 462a-l) be amended b y substituting a colon for the period at the end thereof and b y adding the following: “ Provided, That until six months after the cessation of hostilities in the present war as determined by proclamation of the President or concurrent resolution of the Congress no deposit payable to the United States b y any member bank arising solely as the result of subscriptions made by or through such member bank for United States Government securities issued under authority of the Second Liberty Bond Act, as amended, shall be subject to the reserve require ments of this section.” Approved April 13, 1943. 45 46 FEDERAL DEPOSIT INSURANCE CORPORATION OVERTIME COMPENSATION TO GOVERNMENT EMPLOYEES [Public L a w 49— 78 th C ongress ] [C hapter 93— 1st Session ] [H. R . 1860] AN A C T T o provide for the payment of overtime compensation to Government employees, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this A ct shall apply to all civilian officers and employees (including officers and employees whose wages are fixed on a monthly or yearly basis and adjusted from time to time in accordance with prevailing rates by wage boards or similar administrative authority serving the same purpose, except those in or under the Government Printing Office or the Tennessee Valley Authority) in or under the United States Government, including Governmentowned or controlled corporations . . . Sec. 2. Officers and employees to whom this A ct applies and who are not entitled to additional compensation under section 3 shall be paid overtime compensation computed on the same basis as the overtime compensation which was authorized to be paid under Public Law Numbered 821, Seventy-seventh Congress: Provided, That such overtime compensation shall be paid only on the portion of an officer’s or employee’s basic rate of compensation not in excess of $2,900 per annum: Pro vided further, That such overtime compensation shall be paid on such portion of an officer’s or employee’s basic rate of compensation notwithstanding the fact that such payment will cause his aggregate compensation to exceed a rate of $5,000 per annum: And provided further, That in lieu of overtime compensation for work in excess of forty-eight hours in any administrative workweek, the heads of depart ments, establishments, and agencies m ay in their discretion grant per annum employees compensatory time off from duty. Sec . 3. (a) Except as provided in subsection (c), officers and employees to whom this A ct applies and whose hours of duty are intermittent or irregular, shall be paid, in lieu of the overtime compensation authorized under section 2 of this Act, additional compensation at the rate of (1) $300 per annum if their earned basic compensation is at a rate of less than $2,000 per annum, or (2) 15 per centum of so much of their earned basic compensation as is not in excess of a rate of $2,900 per annum if their earned basic compensation is at a rate of $2,000 per annum or more. (b) Any officer or employee to whom this A ct applies and who is entitled to no additional compensation under subsection (a) or subsection (c) for a pay period, shall be paid for such pay period, in lieu of overtime compensation under section 2, additional compensation at the rate of $300 per annum, unless his overtime com pensation under section 2 for such pay period is at least equal to such additional compensation. (c) Any officer or employee to whom this A ct applies and whose hours of duty are less than full time, or whose compensation is based upon other than a time period basis shall be paid, in lieu of overtime compensation or additional compensa tion under the foregoing provisions of this Act, additional compensation at a rate of 15 per centum of so much of their earned basic compensation as is not in excess of a rate of $2,900 per annum. FEDERAL LEGISLATION 47 (d) In no case shall any officer or employee be paid additional compensation under this section for any pay period amounting to more than 25 per centum of his earned basic compensation for such pay period. 4c 4c 4c * 4c Sec . 6 The provisions of the Saturday half-holiday law of M arch 3, 1931 (46 Stat. 1482; U. S. C., title 5, sec. 26 (a) ), are hereby suspended for the period during which this A ct is in effect. 4c 4c * * * Sec . 9. The Civil Service Commission is authorized and directed to promulgate such rules and regulations as may be necessary and proper for the purpose of co ordinating and supervising the administration of the provisions of the foregoing sections of this A ct insofar as such provisions affect employees in or under the executive branch of the Government. 4e 4c * * * Sec . 11. The heads of departments and agencies in the executive branch, whose employees are affected b y the provisions of this Act, shall present to the Director of the Bureau of the Budget and to the Congress such information as the Director shall from time to time, but not less frequently than the first day of each quarter, require for the purpose of determining the number of employees required for the proper and efficient exercise of the functions of their respective departments and agencies. The Director shall, from time to time, but not less frequently than the thirtieth day after the beginning of each quarter, determine the number of em ployees so required, and any personnel of any such department or agency in excess thereof shall be released at such times as the Director shall order. Such determina tion shall be reported to the Congress each quarter. Sections 2 and 3 of this A ct shall cease to be applicable to the employees of such department or agency unless the head thereof shall certify within thirty days from the effective date so pres cribed b y the Director that the number of employees of his agency does not exceed the number determined b y the Director to be required for the proper and efficient exercise of its functions. A ny determinations and directions made b y the Director under the authority of Public Law 821, Seventy-seventh Congress, are hereby continued in effect until modified by him. The Civil Service Commission is author ized to transfer to other departments and agencies any employees released pursuant to this section whose services are needed in and can be effectively utilized b y such other departments or agencies, and the services of these employees are to be utilized b y the departments and agencies before additional employees are recruited. Sec . 12. Amounts received as overtime compensation or additional compensation under this A ct shall not be considered in determining the amount of a person’s annual income or annual rate of compensation for the purposes of paragraph II (a) of part III of Veterans Regulation Numbered 1 (a), as amended, or section 212 of title II of the A ct entitled “ An A ct making appropriations for the Legislative Branch of the Government for the fiscal year ending June 30,1933, and for other purposes” , approved June 30, 1932, as amended. * * * * * Sec . 14. This A ct shall take effect on M ay 1, 1943, and shall terminate on June 30,1945, or such earlier date as the Congress by concurrent resolution may prescribe. Sec . 15. This A ct may be cited as the “ War Overtime Pay A ct of 1943” . Approved M a y 7, 1943. 48 FEDERAL DEPOSIT INSURANCE CORPORATION DEDUCTION OF RESERVE FOR BAD DEBTS IN DETERMINING T A X LIABILITY [Public L a w 235— 78th C ongress ] [Chapter 63— 2 d Session ] [H. R. 3687] AN ACT T o provide revenue, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) S h o r t T i t l e .— This Act, divided into titles and sections according to the following Table of Contents, may be cited as the “ Revenue A ct of 1943” : * * * * * SEC. 113. PARTIALLY WORTHLESS BAD DEBTS (a) I n G e n e r a l .— The first sentence of section 23 (k) (1) (relating to deductions for bad debts) is amended to read as follows: “ Debts which become worthless within the taxable year; or (in the discretion of the Commissioner) a reasonable addition to a reserve for bad debts; and when satisfied that a debt is recoverable only in p a rt, the Commissioner may allow such debt, in an amount not in excess of the part charged off within the taxable year, as a deduction.” (b) Y e a r s t o W h ic h A p p l i c a b l e .— The amendment made by this section shall be effective with respect to taxable years beginning after December 31, 1938. * * * * * Approved February 25, 1944. R e g u l a t io n of the Co r p o r a t io n RULING ON ABSORPTION OF EXCHANGE CHARGES On February 29, 1944, the board of directors of the Corporation adopted the resolution: Resolved, That the Board’s Rule, relating to the absorption of exchange charges, adopted December 6, 1943, be and the same is hereby amended to read as follows: The absorption of normal or customary exchange charges b y an insured non member bank, in connection with the routine collection for its depositors of checks drawn on other banks, does not constitute the payment of interest within the provisions of Section 304.2 (a) of Part 304 of the Corporation's Rules and Regulations. St a t e Le g is l a t io n R e l a t in g and to B a n k Su p e r v is io n Ba n k O p e r a t io n s Thirty-seven States enacted statutes which adjusted their laws to Executive Order N o. 9112 of M arch 26,1942, and Federal Reserve Regulation V so as to permit loans without limitation when they are guaranteed by commitments to purchase same given by Federal Reserve banks, the United States or agencies thereof (includ ing wholly owned corporations). These laws are qualified in some instances to require that such commitments be paid in cash within 60 days after demand and that no conditions beyond the bank’s control be involved therein. Some of the most im portant subjects dealt with b y State legislation during 1943 are listed below. AFFECTING BANKING SUPERVISORY AUTHORITY Examination, fees, and publication of reports: Requiring that for duration of the war banks and trust companies which are examined by a federal agency be examined by commissioner at least once each eighteen months instead of at least once a year as heretofore..Delaware (Ch. 129) Requiring examiners to interview bank’s board of directors during one semi annual examination, and to furnish report of interview to superintendent and report of examinations to board of directors...........................Georgia (S. B. 202) Providing that charges for expense of examination shall be available for use of banking department............................................................................Maine (Ch. 43) Authorizing commissioner to prescribe information to be included in reports of condition of savings bank and trust companies................Massachusetts (Ch. 21) Amending fee charged for expense of examination.................... Vermont (P. A ct 133) Reducing requisite number of annual examinations............Minnesota (Ch. 12); North Dakota (Ch. 91); Pennsylvania (No. 15); West Virginia (Ch. 6) Reducing number of annual published statements........South Carolina (No. 114) Deposits, reserves, and charges: Requiring state examiners to verify certain individual deposits directly with depositors...................................................................................... Georgia (S. B. 200) Authorizing supervising authority to alter amount of reserves against deposits__ Massachusetts (Ch. 193); Ohio (Sec. 710-6a); Oregon (Ch. 244); Utah (Ch. .............................................................................................10); Vermont (P. A ct 133) Authorizing commissioners, with approval of Banking Review Board to fix maximum service charge of certain loans.............................Wisconsin (Ch. 462) Other: Prohibiting for two-year period the employment by a bank formed from a re organized, merged or rehabilitated bank of the superintendent or agents who acted as conservators, liquidators, etc. of such bank . . . . California (Ch. 905) Permitting divulgence of confidential information by commissioner to advisory board...................................................................................................Maine (Ch. 196) Creating Finance Commission to advise Banking Department and providing for the election of Bank Commissioner by such commission............................. ...................................................................................... Texas (Banking Code 1943) 49 50 FEDERAL DEPOSIT INSURANCE CORPORATION Other:— Continued Authorizing superintendent to extend time for bank to commence business where certificate was issued not more than six months prior to declaration of war .....................................................................................................New Y ork (Ch. 633) Giving superintendent power to authorize banks and trust companies to establish and maintain offices at military stations for transaction of limited banking functions.......................................................... New York (Banking Board Res. 349) M aking state examiner (formerly governor) chairman of State Banking Board and making Attorney General its counsel................ North Dakota (Ch. 91) Transferring supervision of credit unions to Superintendent of Banks............ ........................................................ .................................................. Alabama (No. 95) OPERATIONS OF BANKS OF DEPOSIT Capital accounts: Suspending in certain cases until one year after war provisions relating to ratio of capital and surplus to deposits............................................California (Ch. 775) Amending law restricting amount of deposits to capital and permitting deduction of certain United States obligations in computing deposits............................. ...............................................................................................South Dakota (Ch. 15) Permitting the deduction of United States securities, cash, and due from reserve banks, in computing ratio of capital to deposits.................... Wisconsin (Ch. 27) Eliminating requirement that capital stock be increased when capital and surplus amount to less than 10% of deposits and eliminating provision that with examiner's consent bank may keep of legal reserve in certain Federal and State securities.......................................................................North Dakota (Ch. 88) Allowing banks to borrow in excess of paid in capital when secured b y U. S. obligation....................................................................................Florida (Ch. 22037) Authorizing the retirement of capital debentures when due without regard to ratio of capital to deposits if bank has cash or unpledged United States obliga tions equal to 50% of deposits.................................................... Indiana (Ch. 19) Amending capital and surplus requirements to provide same shall be fixed in proportion to deposits and permitting the inclusion as capital and surplus 6 % of par value of U. S. bonds and 6 % cash reserve in excess of the 15% required reserve.................................................................................................. Nevada (Ch. 71) Amending law to increase amount of required surplus before dividends m ay be paid...................................................................................................Nebraska (No. 33) Providing that no dividends shall be declared or paid on capital stock of a bank unless surplus and undivided profits equals capital notes and debentures and until approved by superintendent in writing................ South Dakota (Ch. 16) Amending law to reduce amount of earnings which must be transferred to surplus before dividends......................................................................... .......... ..Utah (Ch. 9) Permitting certain unincorporated banks to transfer assets and liabilities to new banking corporation with prescribed capital less than minimum usually required............................................................................................ Ohio (Sec. 710-37) Increasing minimum capital requirements of trust companies............................. ..................................................................................................... Vermont (P. A ct 133) STATE LEGISLATION 51 Capital accounts:— Continued Continuing during 1943 and 1944 the suspension of provision relating to surplus and dividends applicable to savings banks and trust companies except pro visions relating to payment of dividends by trust companies on common stock .....................................................................................................Vermont (P. A ct 134) Amending law relating to increases in capital stock of certain trust companies ......................................................................................................... Delaware (Ch. 136) Reserves: Reducing amounts of reserves required against demand and time deposits........ .............................................................Delaware (Ch. 130); New Y ork (Ch. 169) Repealing law requiring commercial banks to maintain reserve against deposits ....................................................................................................... Ohio (Sec. 107-138) Providing for the elimination of reserve requirements against war loan deposit accounts........Connecticut (Ch. 257); Nebraska (No. 434); New Y ork (Ch. 226); ..........................................................................North Dakota (Ruling Banking Board) Rem oving restriction that banks, trust companies and industrial banks m ay not pay any dividends while there is any deficiency in reserves against deposits ...................................................................................... New York (Ch. 404 and 666) Deposits and depositors: Providing for the payment to any owner of joint deposits and discharging bank for such payment..............................................Alabama (No. 125); Idaho (Ch. 30) Extending provisions relating to payment of joint deposits to national banks ..................................................................................................... Washington (Ch. 167) Exempting partnership accounts from joint deposit accounts which may not be released to survivor without approval of department of taxation..................... ....................................................................................................... Wisconsin (Ch. 440) Amending law relating to payment of small bank deposits of deceased depositors .................... Connecticut (Ch. 197); Georgia (S. B. 52); Washington (Ch. 143) Making statement of deposit account conclusively correct after expiration of prescribed time if not previously objected to .........................Alabama (No. 128); ........................................................................... Florida (Ch. 22035); Idaho (Ch. 28) Relating to adverse claims for deposits........Alabama (N o. 123); Indiana (Ch. 7) Providing for escheat of abandoned funds to State................ M innesota (Ch. 620) M aking national banks eligible to receive deposits of executors or other fiduciaries ....................................................................................................... California (Ch. 194) Suspending for duration of war and six months requirement that banks verify deposit and pass books of depositors or shareholders........Massachusetts (Ch. 30) Providing for the disposal of contents of safe deposit boxes and special remedies to enforce liabilities of renters and safekeeping depositors....California (Ch. 846) Extending procedure applicable to payment of accounts covered b y lost pass books to investment certificates of Morris Plan Banks, and to certificates issued by a bank subsequently merged with another bank................................. .................................................................................................... Massachusetts (Ch. 22) Increasing amount of State funds which may be deposited with any depository ................................................................................................... Washington (Ch. 134) 52 FEDERAL DEPOSIT INSURANCE CORPORATION Deposits and depositors:— Continued Fixing premium on deposits and investments of Board of Deposits.. ......................................................................................................... Wisconsin (Ch. 91) Permitting deposits in excess of limitation where offset by excess cash reserve or unpledged United States obligations................................. Minnesota (Ch. 342) Checks, drafts, etc.: Giving banks additional time for handling collection items before requiring presentment, return or protest thereon..................................... Alabama (No. 129); California (Ch. 930); Idaho (Ch. 94); Illinois (H. B. 744); Michigan (Ch. 90); .................... New M exico (Ch. 89); Wisconsin (Ch. 117); W yom ing (Ch. 80) Requiring that checks drawn on banks and trust companies organized under state laws be cleared at par by banks on which drawn............Iowa (Ch. 243) Requiring written stop orders, revocations, or countermands relating to payment of checks or drafts......................................................................... Nebraska (No. 239) Making person issuing check or draft against insufficient funds liable for costs and expenses of collection........................................................ Wisconsin (Ch. 243) Legalizing payment, etc. of checks by banks and trust companies after banking hours or on legal holidays........................................................ Florida (Ch. 21771) Limitation on loans and investments: Excluding loans secured by pledge of United States obligations from loan limitation ................................................................... Connecticut (Ch. 254); Kansas (Ch. 83) Amending loan limitation for trust companies as applied to loans secured by pledge of obligations of the United States.........................Connecticut (Ch. 254) Limiting loans from savings or commercial departments of trust companies but excluding loans unconditionally guaranteed by the United States.................... ................. ........................... _.....................................................Massachusetts (Ch. 261) Excluding from 50% mortgage loan limitation for commercial banks, loans to finance construction of residential or farm buildings and having maturities not exceeding six months.................................................... Connecticut (Ch. 298) Exempting loans made to Commodity Credit Corp. by banks or trust companies and fully guaranteed by the United States from loan limitation.................... ....................................................................... New York (Banking Board Res. 354) Exempting investments in Federal Land Banks, Federal National Mortgage Association bonds, and Federal Intermediate Credit Bank debentures from loan limitation................................................................................Arkansas (No. 140) Amending law relating to legal investments of banks in respect to real estate mortgages.................................................................................... Vermont (P. A ct 131) Enlarging legal investments of banks..................................... Florida (Ch. 21889) Authorizing banks or trust companies to participate in loans (formerly industrial loans) sponsored by the United States, or departments, boards, etc. of the United States.....................................................................................Maryland (Ch. 98) Extends until July 1,1945, authority of banks, trust companies, and credit unions to make Federal Housing Administration loans, to acquire loans secured by real estate insured by that administration and to service such insured mortgage loans.........................................................................................Massachusetts (Ch. 126) STATE LEGISLATION 53 Limitation on loans and investments:— Continued Providing that member banks and trust companies may purchase without re course notes, bills of exchange, etc. at prices agreed upon................................. ...........................................................................................Missouri (S. 163 and 164) Authorizing State banks and trust companies to take chattel mortgages on live stock, crops, farm machinery, etc...................................... Connecticut (Ch. 318) Reduces amount of permissible loan b y banks without adequate security or property statement..................................................................... Nebraska (No. 34) Amending provisions of law prescribing requirements of real estate loans which may be made by banks.........................................................Ohio (Sec. 710-112) Providing that bank or trust company m ay lend money on security of capital stock of other banks and trust companies and omitting permission to purchase own stock to prevent loss on debt previously contracted....Washington (Ch. 187) Pledge of assets: Providing that State or Federal Public Housing Authority bonds or obligations shall be legal investment and authorized security for public deposits for all banks and trust companies.........................................................M ontana (Ch. 218) Permitting banks to pledge assets to guarantee deposits of bankrupt’s estate made pursuant to court order and prescribing rate of interest on instalment loans...........................................................................................W est Virginia (Ch. 6) Permitting the pledge of assets to secure war loan deposit accounts................ ............................. Michigan (No. 82); New Y ork (Banking Board Res. 356); .........................................................Vermont (P. A ct 133); Wisconsin (Ch. 461) Authorizing trust companies to pledge assets of commercial department to secure war loan deposit accounts................................................ New Hampshire (Ch. 115) Permitting depositories of local government funds to deposit, in lieu of bond, such securities as a bank may legally pledge to secure such funds..................... .................................................................................................South Dakota (Ch. 166) Other: Providing for assignment of accounts receivable without notice............ California (Ch. 766); Connecticut (Ch. 248); Illinois (S. 536); Maryland (Ch. 728) Relating to the ownership of United States obligations registered in name of co-owner or owner and beneficiary upon death of one co-owner or owner........ .....................California (Ch. 51); Illinois (H. B. 634); New Y ork (Ch. 632); ......................................................................................................... Washington (Ch. 14) Requiring board of directors to meet at least once every 60 days and at call of president or two members...........................................................Alabama (N o. 121) Providing for reimbursement of directors, trustees, officers, or employees for expenses incurred in official capacity.................................Connecticut (Ch. 293) Staying foreclosure, forced sale, etc. of seasonal resort properties subject to mortgage, which have lost earning power as a result of war conditions and restrictions...........................................................................................Maine (Ch. 342) Permitting investment of sinking fund moneys in unlimited obligations of the United States..........................................................................New Jersey (Ch. 48) Adopting uniform stock transfer act..................................... New M exico (Ch. 67) 54 FEDERAL DEPOSIT INSURANCE CORPORATION O ther:— Continued Entire banking code recodified. Providing new procedure for purchase of assets by another bank. Providing for merger of banks. Changing procedure for liquidation of closed banks. Enlarging duties of bank directors. Eliminating requirements that banks with savings departments segregate assets. Repealing provisions relating to required ratio of capital to deposits. Bank charters are made perpetual................................................................ .Texas (1943 Banking Code) Regulating and licensing business of receiving money as agent for deposit in a bank............................................................................................ North Dakota (Ch. 89) Amending law relating to bonding of bank officers and employees......................... ....................................................................................................... Wisconsin (Ch. 157) SAVINGS BANKS, TRUST FUNDS, AND FIDUCIARY INSTITUTIONS Deposits and depositors: Allowing payment of trust deposits to beneficiary upon death of trustee............ ........................................................................................................... Alabama (No. 127) Amending law relating to state guaranty fund for deposits of Mutual Savings Banks.................................................................. ............... ...... Connecticut (Ch. 275) Amending law relating to disposition and escheat of unclaimed funds held by fiduciaries.................................................................................... Florida (Ch. 22075) Repealing limitation on amount of savings banks deposits............ Iowa (Ch. 238) Requiring annual publication by trust companies of inactive savings deposit accounts.............................................................................................Maine (Ch. 217) Amending law relating to reporting of dormant accounts by savings banks to exclude Christmas savings funds............................................M aryland (Ch. 510) Allowing minimum interest or discount charge on loans to depositors b y savings banks and trust companies with savings departments..... Massachusetts (Ch. 27) Permitting savings banks to accept deposits of public funds and to secure such deposits by pledge of assets....................................... .....................Indiana (Ch. 6) Legal investments, common trust funds, and pledge of assets: Repealing requirements that trust funds be invested in investments legal for savings banks and substituting prudent man rule.............. California (Ch. 811) Amending law relating to legal investments by fiduciaries of trust funds............ .................... Delaware (Ch. 171); Florida (Ch. 21889); Indiana (Ch. 71); Iowa (Ch. 239); Minnesota (Ch. 635); Montana (S. 218); Oregon (Ch. 31); .........................Utah (Ch. 12); Vermont (P. A ct 131); Washington (Ch. 114) Amending law relating to legal investments for savings banks....Arizona (Ch. 40); Connecticut (Ch. 217 and 219); Florida (Ch. 21889); Maine (Ch. 74); Massachusetts (Ch. 94); Minnesota (Ch. 197 and 635); New Hampshire (Ch. 163); New York (Ch. 531); Vermont (P. A ct 131); Wisconsin (Ch. 28) Providing for the disposition of investments of savings banks removed from legal list........................................................................................ Connecticut (Ch. 218) Relating to the establishment or handling of common trust funds......................... .............................................................Alabama (No. 565); Connecticut (Ch. 361); Illinois (H. B. 413); New York (Ch. 602); Ohio (Sec. 715 et seq); Penn sylvania (No. 28 and 213); Washington (Ch. 55); Wisconsin (Ch. 274) STATE LEGISLATION 55 Fiduciary duties and other powers: Authorizing trust companies to register securities held as fiduciary in name of a nominee................................. California (Ch. 811); Minnesota (Ch. 338 and 339) Amending requirements relating to keeping of trust accounts............................. .................................. . Connecticut (Ch. 100); Minnesota (Ch. 338 and 339); .............................................................Vermont (P. Act 133); Wisconsin (Ch. 359) Excusing corporate fiduciaries from bond in sales of real estate under probate court and providing for private sale of real estate by fiduciaries under court orders.......................................................................................... Connecticut (Ch. 56) Providing method of substituting successors of fiduciaries engaged in war service ..........................................California (Ch. 33); Connecticut (Ch. 358 and 306); ............. .......Illinois (H. B. 690); Michigan (No. 195); Wisconsin (Ch. 283) Extending time during which trust companies may waive or m odify terms of bonds or mortgages held as fiduciary..................................... New Y ork (Ch. 573) Permitting trust company to hold own stock received in fiduciary capacity as part of an estate or trust....................................................................... Missouri (H. 46) Authorizing savings banks to sell negotiable checks........Rhode Island (Ch. 1343) Permitting savings banks to do a safe deposit business..._Vermont (P. A ct 133) Permitting Mutual Savings Banks to apply for extension of time of existence ................................... .................................................................Washington (Ch. 148) Uniform laws and other: Adopting Uniform Fiduciaries Law or Uniform Trust A ct........Alabama (No. 557); ................................................................... Texas (S. 251); S. Dakota (Ch. 308) Adopting Uniform Trust Receipts Act..Minnesota (Ch. 433); Washington (Ch. 71) Suspending as applied to savings banks requirements of amortization of certain mortgage loans......................................................................... Connecticut (Ch. 141) Suspending for duration of war and two years thereafter provisions governing the establishment of branch offices by trust companies and the maintenance, as a branch, of the office of a merged trust company or national bank taken over............................................................................................ Massachusetts (Ch. 192) Providing that any amount paid by the General Insurance Fund to a savings bank selling life insurance for settlement of losses shall be repaid as the fund directs........................................................................................ Massachusetts (Ch. 210) BANKS IN FINANCIAL DIFFICULTIES OR RECEIVERSHIP Providing alternative method for voluntary liquidation of banks by vote of two-thirds of stockholders...............................................................Indiana (Ch. 39) Amending law relating to payment of dividends on preferred stock of trust com panies in liquidation or conservatorship...........................Massachusetts (Ch. 110) Prescribing procedure for publication prior to final distribution of dividends of dissolved bank................................................................................Nevada (Ch. 90) Validating deeds made by banks or trust companies which have been dissolved or charters surrendered or forfeited........................ New Jersey (Ch. 167 and 168) Prescribing procedure for liquidation and distribution of title insurance reserve funds of banking institutions taken over b y Secretary prior to date of A ct ...................................................................................................Pennsylvania (No. 262) 56 FEDERAL DEPOSIT INSURANCE CORPORATION CREDIT UNIONS AND SMALL LOAN INSTITUTIONS Examination and fees: Requiring credit unions to pay expense of examination based on total assets ........................................................................................................... Alabama (No. 94) Providing for the licensing, bonding, examination, etc. of community currency exchanges and prohibiting them from accepting deposits....Illinois (H. B. 475) Loans and investments: Limiting investment of Morris Plan Bank certificate funds in municipal securi ties and public utility issues................................................ Massachusetts (Ch. 208) Regulating personal loan business of banks, savings banks, and trust companies ...................................... .................................................................. Nebraska (No. 43) Regulating loans by industrial loan and investment companies............................. ..........................................................................._........................... Nebraska (No. 296) Authorizing commercial banks to make personal or industrial loans in the same manner as industrial banks and removing limitation on such loans................ .................................................................... ..............................N . Carolina (Ch. 234) Other: Permitting industrial banks to do a safe deposit business and receive valuables for safekeeping and amending limitation on deposits of such banks................ ....................................................................................................... New Y ork (Ch. 530) Permitting industrial banks to accept deposits subject to check upon approval of Commissioner..........._.......................... ........................... N. Carolina (H. B. 284) Amending credit union statutes......Illinois (S. B. 524); Massachusetts (Ch. 118); Minnesota (Ch. 20 and 647); New York (Ch. 288 and 630); Washington .................. ................................................ (Ch. 131); Wisconsin (Ch. 120 and 156) TAXATION Repealing local taxation of capital stock of banks and trust companies and making tangible assets subject to local assessment and taxation....Michigan (No. 231) Imposing income tax on State banks beginning in 1944 and on national banks in conformity with Federal authorization (R. S. 5219, 42 Stat. 1499, 12 U.S.C. 548; M ethod No. 4 )........................................................ .............. Arizona (Ch. 11) Exempting trust fund certificates from taxation..... ...............Indiana (S. B. 100) Granting State banks same immunity from State and local taxation as national banks enjoy under Federal statutes...................... .............. Florida (Ch. 21842) PART FIVE STATISTICS OF BANKS AND DEPOSIT INSURANCE EXPLAN ATORY NOTES Sources of Data D ata relating to national banks and State banks in the District ofKColumbia were obtained from the Comptroller of the Currency or the Board of Governors of the Federal Reserve System, and data relating to State banks members of the Federal Reserve System from the Board of Governors of the Federal Reserve System, with the following exceptions: (1) analysis of examinations, the data of which were compiled by this Corporation from reports submitted by the Comptroller of the Currency and the Board of Governors of the Federal Reserve System and reviewed by the Corporation; and (2) data relating to suspensions, receiverships, and mergers with the financial aid of the Federal Deposit Insurance Corporation, which were obtained from the records of the Corporation. Data relating to insured State banks not members of the Federal Reserve System were obtained from the banks themselves or from the records of the Federal Deposit Insurance Corporation. Data relating to noninsured banks were obtained from the Board of Governors of the Federal Reserve System, State banking authorities, Rand M cN ally Bankers Directory, and Polk’s Bankers Encyclopedia. Classification of Banks and Banking Offices Insured banks include all operating banks insured by the Federal Deposit Insurance Corporation; noninsured banks include all banks not so insured. Commercial banks and trust companies include the following categories of banking institutions: Operating national banks; Incorporated State banks, trust companies, and bank and trust companies, regularly engaged in the business of receiving deposits, whether demand or time, except mutual savings banks and, in New Hampshire, noninsured guar anty savings banks; Stock savings banks, excluding noninsured guaranty savings banks in New Hampshire; Banks in conservatorship or operating under restrictions, provided they are authorized to and in fact do accept new deposits, regardless of the char acter of the restrictions imposed on the operations of the bank; Such industrial and Morris Plan banks as operate under general banking codes or are specifically authorized b y law to accept deposits or operate under the same codes of law as insured industrial banks; Branches of foreign banks which engage in a general deposit business; Cash depositories; Private banks under State supervision, and such other private banks as are reported by reliable unofficial sources to be engaged in deposit banking; Trust companies, even though not engaged in regular deposit banking, except those operating as title companies without other fiduciary business; Branches of American and foreign banks maintained in the possessions to do a general deposit business. (Where more than one branch is maintained by a given bank in any one possession the chief or central office is classified as a bank and the other offices as branches). 59 FEDERAL DEPOSIT INSURANCE CORPORATION 60 M utual savings banks include all banks operating under special State banking codes applying to mutual savings banks, including noninsured guaranty savings banks in New Hampshire and savings associations in New Jersey. Unit banks include all banks operating only one office at which deposits are received or checks cashed. Branches include all offices, other than head offices, of banks operating more than one office at which deposits are received or checks cashed, and all offices, other than head offices, of trust companies not engaged in deposit banking. The term “ branch” is used in accordance with the definition in paragraph (15), subsection (c) of section 12B of the Federal Reserve Act, as amended, which is as follows: “ The term ‘branch’ includes any branch bank, branch office, agency, additional office, or any branch place of business located State of the United States or in Hawaii, Alaska, Puerto Rico, Virgin Islands at which deposits are received or checks paid or lent.” branch in any or the money Institutions excluded. Figures for operating banks do not include institutions in the following categories, though such institutions may perform many of the same functions as banks: Banks which have suspended operations or have ceased to accept new deposits and are proceeding to liquidate their assets and pay off existing de posits, regardless of the amount of deposit liability still remaining and regardless of whether they are listed among operating banks or included in abstracts of condition of banks published by State banking authorities; Building and loan associations, savings and loan associations, credit unions, personal loan companies, and similar institutions, chartered under special laws applying to such institutions or under general incorporation laws, regardless of whether such institutions are authorized to accept deposits from the public or from their members and regardless of whether such institutions are called “ banks;” Noninsured M orris Plan companies, industrial banks, loan and investment companies, and similar institutions, not operating under general State banking codes, nor under the same codes of law as similar institutions which have been admitted to insurance, and not specifically authorized to accept deposits; Branches of foreign banks, and of private banks, which confine their business to foreign exchange dealings and do not receive “ deposits” as that term is commonly understood; A few special institutions chartered under general banking laws, but oper ating as mortgage or investment companies and not engaged in deposit banking; Federal Reserve banks and other banks, such as the Savings and Loan Bank of the State of New York, which operate as rediscount banks and do not accept deposits from the general public. Bank and Branch Changes Changes during 1943 in the number of operating banks and branches, as defined above, are shown in Table 101. Similar figures for prior years are shown in previous Annual Reports of the Corporation. The number of banks which suspended operations because of financial difficulties, and the number merged with the financial aid of the Corporation, in each of the years 1934-1943, are shown in Table 124. For differences between these figures and EXPLANATORY NOTES 61 those shown in tables in previous Annual Reports corresponding to Table 101 in this report, see the Annual Report of the Corporation for 1942, page 61. Deposits of Banks and Banking Offices Operating insured banks. Deposit data for operating insured banks are ob tained from two separate sources: (1) deposit figures shown, or used for classifying insured banks by size groups, in Tables 103, 104, 105, and 124 are from reports of condition submitted by the banks for the dates indicated; (2) deposit figures shown, or used for classifying insured banks by size groups, in Tables 107, 108, 115, 119, and 120, summarizing the reports of examinations of banks, are for the respective dates on which each bank was examined. Deposits shown in reports of examination are defined in the same way as those shown on reports of condition. In adjusting figures for examiners' appraisals, deposit liabilities not shown on the bank's books are added to deposits shown on the books. For description of deposit liabilities reported by insured banks on certified state ments submitted for the purpose of computing the deposit insurance assessment, used in some tables in the Annual Reports of the Corporation prior to 1939, see the Annual Report of the Corporation for 1941, page 92. Noninsured banks. Deposits of noninsured banks are from published figures or from reports received from State banking authorities, and are based on reports of condition submitted by the banks to State authorities or to bankers' directories. Figures refer to June 30 and December 31 or nearest available dates. Suspended and merged banks and banks in receivership. Deposit figures for insured banks in Tables 124 and 127, relating to suspensions, receiverships, and mergers with the financial aid of the Corporation, are from the records of the Cor poration with respect to such banks, and refer to the date of suspension or merger. Deposit figures for banks in receivership as shown by the books of the Corporation, December 31, 1943, given in Table 126, differ from those shown b y the books of the banks at date of suspension, given in Table 125, because of reclassification of liabilities and discovery of additional liabilities during liquidation. Banks Subm itting Reports to the Corporation The Federal Deposit Insurance Corporation regularly examines, and calls for reports of assets and liabilities, and of earnings and dividends, from all insured banks which are not members of the Federal Reserve System, except State banks in the District of Columbia and national banks in the possessions. The latter groups of banks are examined by and report to the Comptroller of the Currency. For captions used in tables in previous Annual Reports of the Corporation, relating to banks examined by or submitting reports to the Corporation, see the Annual Report of the Corporation for 1941, page 93. Assets and Liabilities of Operating Banks Assets and liabilities of insured banks, in Tables 104-106, are tabulated from reports of condition submitted to Federal supervisory authorities: to the Comptroller of the Currency by all national banks, and by State banks located in the District of Columbia; to the Board of Governors of the Federal Reserve System by State banks members of that system; and to the Federal Deposit Insurance Corporation b y all other insured State banks. Instructions provided to insured banks b y the Federal supervisory authorities for the preparation of reports of condition are essentially uniform. Copies of the instructions issued to banks submitting reports to the Federal Deposit Insurance Corporation are available upon request. 62 FEDERAL DEPOSIT INSURANCE CORPORATION Assets and liabilities of noninsured banks are from published figures or from reports received from State banking authorities, and are based on reports of con dition submitted by the banks to State authorities or to bankers’ directories. Statements of assets and liabilities are submitted by insured commercial banks upon either a cash or an accrual basis, depending upon the bank’s method of book keeping. Assets and liabilities held in or administered by a savings, bond, insurance, real estate, foreign, or any other department of a bank, except a trust department, are consolidated with the respective assets and liabilities of the commercial de partment. Trust funds deposited by a trust department in a commercial or savings department are reported as “ Deposits of individuals, partnerships, and corpora tions.” Other assets held in trust are not included in statements of assets and liabilities. In the case of banks with one or more domestic branches, the assets and liabilities reported are consolidations of figures for the head office and all domestic branches. In the case of a bank with foreign branches, net amounts due from its own foreign branches are included in “ Other assets,” and net amounts due to its own foreign branches are included in “ Other liabilities.” Assets reported represent aggregate book value, on the date of call, less valuation allowances, and, in the case of securities, less reserves for bond premiums. Re ciprocal bank balances were reported gross prior to June 30, 1942. Instalment loans are ordinarily reported net if the instalment payments are applied directly to the reduction of the loan. Such loans are reported gross if, under contract, the payments do not immediately reduce the unpaid balances of the loan but are assigned or pledged to assure repayment at maturity. Total deposits. All funds received b y a bank in the course of its commercial or fiduciary business (except funds in payment of obligations to the bank) give rise to demand or time deposit liabilities and are classified under total deposits, unless the funds are received as trust funds which the bank keeps segregated and apart from its general assets. Analysis of Examinations of Insured Commercial Banks D ata for Tables 107-120, relating to the analysis of examinations of all insured commercial banks in 1943, are derived from the reports of examinations made by the Comptroller of the Currency in the case of national banks and of State banks in the District of Columbia, by the Federal Reserve banks in the case of State banks members of the Federal Reserve System, and b y the Federal Deposit In surance Corporation in the case of other insured State banks. Similar tables relating to the analysis of examinations of all insured commercial banks in 1939, 1940, 1941, and 1942 were published in the Annual Reports of the Corporation for those years. Corresponding tabulations for earlier years have not been made, except for banks examined by the Corporation. Figures relating to commercial banks examined by the Federal Deposit Insurance Corporation covering the period 1933 to 1940 are presented in Tables 135-138 in the Annual Report of the Corporation for 1940. Examination procedures of the Federal bank supervisory authorities and of numerous State banking authorities were revised in 1938 so that the data for 1939 and 1940 are not strictly comparable with data for 1937 and earlier years. Data for banks examined b y the Federal Deposit Insurance Corporation are shown for 1938 on both the original and the uniform or revised basis. For a discussion of the differences between the uniform procedure and the procedure previously followed by the Corporation in analyzing and valuing assets in examination reports, see the Annual Report of the Corporation for 1938, pages 61-78. 63 EXPLANATORY NOTES B anks in c lu d e d . The tabulations have been prepared from reports of examina tions available during the year and do not cover precisely the banks examined during the year. The figures for 1943 include 13,171 insured commercial banks operating at the close of the year and 36 banks which ceased operations or were taken over by other banks during the year. Figures for 103 insured banks operating at the close of the year were not included in the tabulations: 11 because they were not engaged in deposit banking and 92 because reports of examination were, for various reasons, not available for tabulation. Figures for 50 banks cover reports of examinations made in the last three months of 1942. The number and deposits of insured com mercial banks included in the 1943 tabulations, distributed according to month of examination, are shown below. Month of examination Number of banks Total deposits (in millions of dollars) AH b an k s.............................................................................. 13,207 94,087 Banks examined in : 1942................................................................................. 50 1,649 1943 January.......................................................................... February........................................................................ March.. . : ...................................................................... April................................................................................ M ay................................................................................. June................................................................................. July................................................................................. August............................................................................ September...................................................................... October........................................................................... November...................................................................... December....................................................................... 1,265 1,079 1,359 1,243 1,218 1,125 951 1,098 1,181 1,144 990 504 6,338 10,422 6,588 5,096 5,483 15,965 5,422 5,690 7,396 7,230 8,317 8,531 Ratios for individual banks. The base used in the computation of ratios to the appraised value of assets, and to total assets, for each individual bank is an estimated average value of assets over a 12-month period derived from reports of condition and the report of examination. The method of estimating this average is not uniform for all banks. An average is used in order to eliminate the influence of seasonal fluctuations in total assets upon the ratios of individual banks. However, in view of the rapid increase in total assets during the period covered by this aver aging process, the ratios for 1943 tend to represent the condition of the banks— considered as a whole— at a time close to the beginning of the year. Explanation of terms. The principal terms and methods used, under the uniform procedure, in the tables relating to analysis of examinations of bank assets and capital accounts are described below. Book value, applied to total assets, loans, securities, and fixed and miscellaneous assets, refers to the values (net, after deduction of valuation allowances and, in the case of securities, of premium allowances) carried by each bank on its books at the time of examination. A pp raised value of total assets, loans, securities, and fixed and miscellaneous assets, represents the value of assets as determined by the examiners. For explanation of method of valuing securities see the Annual Report of the Corporation for 1938, pages 64-68. The term “ appraised value” corresponds in meaning to the term “ ad justed value” used in the Annual Report of the Corporation for 1938, and to the term “ net sound value” used in the Annual Reports of the Corporation for 1935 and 1934. Examiners’ deductions from assets represent for each group of assets the amount by which the examiners’ evaluation of each bank’s assets is less than the value carried by the bank on its books. Minus (-) represents the excess of appraised value of assets over book value. 64 FEDERAL DEPOSIT INSURANCE CORPORATION The deductions are derived from the examiners' evaluation of the assets classified on the basis of eventual collectibility. In the case of assets other than securities, the examiner, for reasons which he sets forth, deducts: (1) the amount of, or the portion of, loans and other assets regarded as worthless or uncollectible (Classi fication IV ); and (2) one-half of the amount of, or the portion of, loans and other assets regarded as of doubtful worth or collectibility (Classification III). In the case of securities, the examiner deducts: (1) the amount by which the book value (less valuation allowances) exceeds the market value of stocks and defaulted se curities; (2) one-half of the amount by which the book value (less valuation and premium allowances) of speculative securities exceeds the average of market prices over the 18 months preceding the month of examination; and (3) the amount by which book value (less valuation and premium allowances) exceeds cost less amorti zation of other (i.e., uncriticized) securities. Examiners’ deductions (net) from total assets, United States Government obligations, and fixed and miscellaneous assets, is the difference between examiners’ deductions and the determinable sound values of assets not shown on the books. Determinable sound values of loans and securities other than United States Govern ment obligations not shown on the books are tabulated with fixed and miscellaneous assets; and for this reason the figure for examiners’ deductions (net) from fixed and miscellaneous assets understates the net deductions from assets classified as fixed and miscellaneous. Examiners’ deductions (net) from total capital accounts represent the amount by which the examiners’ evaluation of each bank’s total capital accounts (net worth) is less than the value carried by the bank on its books. It exceeds examiners’ deductions (net) from assets by the amount of determinable liabilities not shown on the books. Minus (-) represents examiners’ net additions to capital, or an excess of appraised value of assets over book value and over liabilities not shown on the books. Substandard, applied to total assets, loans, securities, and fixed and miscel laneous assets, represents the appraised value of all assets believed by the examiner to involve a substantial or unreasonable degree of risk, and hence to be undesirable or hazardous for bank investment. It includes the value of assets in Classification II and 50 percent of the value of assets in Classification III. The appraised value of substandard assets also represents the book value of all criticized assets less ex aminers’ deductions on such assets. The term “ substandard” corresponds in meaning to the term “ slow” used in the Annual Reports of the Corporation for 1936, 1935, and 1934, except in the case of securities and total assets. Fixed and substandard assets include fixed assets not criticized, as well as all substandard assets. Fixed assets consist of banking house and furniture and fixtures. Uncriticized, applied to total assets, cash, loans, securities, and fixed and miscel laneous assets, represents the appraised value of all assets regarded as suitable for bank investment. The appraised value of these assets (Classification I) repre sents acquisition values less charge-offs, valuation allowances, and, in the case of securities, amortization of bond premiums. Total capital accounts, or book value of capital accounts, refers to the “ net worth” or equity of stockholders (including holders of capital notes and deben tures) in each bank as carried by the bank on its books at the time of examination. Net sound capital represents the appraised value of assets less all determinable liabilities. It is also derived by subtracting examiners’ deductions (net) from total EXPLANATORY NOTES 65 capital accounts, and is the examiners' evaluation of the net worth or equity of stockholders (including holders of capital notes and debentures) in each bank. The retirable value of R. F. C. capital is used to determine the amount of net sound private capital, so that the latter differs from book value of private capital accounts by the excess of retirable value of R. F. C. capital over book value as well as by the examiners' deductions (net) from total capital accounts. The term “ net sound capital" corresponds in meaning to the term “ adjusted capital account” used in the Annual Report of the Corporation for 1938, to the term “ net capital account” used in the Annual Report of the Corporation for 1937, and to the term “ sound capital” used in the Annual Report of the Corporation for 1936. The amount of R. F. C. capital in banks may correspond to any one of three values: the par or face value; the book value, which is normally the same as par value but may be less; and the retirable value. The latter is the same as the in vestment of the Reconstruction Finance Corporation shown in reports of that Corporation. Deposits, in all cases, represent deposits at the date of the examination. A d ju s te d deposits and adjusted liabilities include, in addition to liabilities shown on the books of the bank, those not shown, but determined by the examiner to exist. Net current operating earnings are for the calendar year 1942; and the figure for total assets to which net current operating earnings are related is the average for a 12-month period derived from reports of condition and the report of examina tion. The 29 banks for which no net earnings figures were available were, in general, new institutions or institutions which had been merged. Irregularity in individual item s. The average ratios of net sound capital to the appraised value of assets of $19.91, $24.30, and $21.14, referred to in footnote 1 of Table 110, are less than the lower limits of the intervals in which these ratios fall due to the difference between the ratios based on assets at the date of examina tion and on the average of assets over the year immediately preceding the date of examination, discussed under “ Ratios for individual banks” above. The States included in each Federal Deposit Insurance Corporation District, and the cities in which the district offices are located, are given on page vi. Earnings, Expenses, and Dividends of Insured Commercial Banks Banks included. Reports of earnings and dividends covering the calendar year 1943 were submitted to Federal bank supervisory agencies by all insured commercial banks. Reports for each six months' period were also submitted by banks not reporting to the Corporation. The figure for number of banks in 1943 in Tables 121123 is the total number operating at the end of the year. The earnings data relate to the same banks, except that data are also included, for the first six months of the year, for national banks not operating at the end of the year. For banks included in tabulations of earnings and dividends prior to 1942, see the Annual Report of the Corporation for 1941, page 97. The figures in Table 123, and in the column in Table 121 entitled “ Operating throughout the year,” exclude data for the following banks: banks submitting reports covering less than the full year's operations, trust companies not engaged in deposit banking, and banks submitting reports to the Corporation whose opera tions were materially affected b y mergers, consolidations, or other corporate changes. 66 FEDERAL DEPOSIT INSURANCE CORPORATION Asset and liability averages. The ratios presented in Table 122 are based upon average asset and liability items from reports of condition as of December 31, 1942, June 30, 1943, and December 31, 1943. These averages include figures for banks which reported on one call date but not on another because they became insured during the year or were in operation only part of the year. No duplication in the figures exists because of changes in class of insured banks during the period. The ratios presented in Table 123 are based upon assets as of December 31 for the identical banks to which the earnings data pertain. Method of reporting. Reports of earnings and dividends of insured commer cial banks are submitted on the same basis, either cash or accrual, depending upon the bank's method of bookkeeping, as the reports of assets and liabilities. The form of the report and instructions issued by the three Federal bank supervisory agencies were for the most part uniform in 1943. Copies of the instructions issued to banks reporting to the Federal Deposit Insurance Corporation are available upon request. For differences in the form and instructions for years prior to 1942 see the Annual Report of the Corporation for 1941, pages 97-99. Banks on par list. Some drawee banks make a service charge (called “ exchange") for remitting funds to points foreign to the locality of the drawee bank. The Federal Reserve Act, as interpreted, forbids any such charge from being made against a Federal Reserve bank. All banks, both national and State, that are members of the Federal Reserve System are required to pay checks drawn upon them and presented by Federal Reserve banks without deduction of exchange charges. The Federal Reserve System maintains a list of banks known as the “ par list.” Banks on the “ par list” include all banks, both national and State, that are members of the Federal Reserve System and those non-member banks which have agreed to pay checks drawn upon them and presented by Federal Reserve banks without deducting exchange charges. Banks not on the par list include all other banks which banks clear their checks through channels entirely outside the Federal Reserve banks. All banks on the par list may charge “ exchange” on checks presented from out of town either directly or through correspondents where Federal Reserve banks are not involved in the chain of collection. It is customary for many of these banks to make such a charge on checks presented directly (not through correspondents) from out of town points. NU M BER, OFFICES, AND DEPOSITS OF OPERATING BANKS Table 101. ANALYSIS OF CHANGES IN NUMBER AND CLASSIFICATION OF OPERATING BANKING OFFICES in the U nited S tates and P ossessions D uring 1943 Noninsured Insured Total Insured Mutual savings banking offices Commercial bank and trust company offices All banking offices Total Total National State Banks of de posit Trust com panies1 Total In Non sured2 insured FEDERAL Non insured Not mem bers F. R. system Members F. R. system ALL B A N K IN G OFFICES 18,751 18,666 +85 17,297 16,993 1,454 1,673 18,070 17,982 17,018 16,902 6,782 6,675 2,744 2,619 7,492 7,608 966 989 86 91 + 304 -219 +88 + 116 + 107 + 125 -116 -23 -5 681 684 -3 279 91 402 593 + 188 -191 Changes resulting from — Br&nchcs Offices closed ........................................................................... Branches ... ..... ............................ 267 36 231 16 12 4 281 48 233 267 36 231 162 3 159 41 4 37 64 29 35 14 12 2 198 150 48 168 124 44 30 26 4 194 150 44 168 124 44 59 47 12 23 9 14 86 68 18 21 21 + 205 + 144 -1 +62 -205 -144 + 1 -62 + 1 + 1 + 17 + 16 -1 +2 +4 + 107 + 1 -1 -9 4 + 15 +3 + 1 + 105 +2 +2 -108 -3 -16 -1 5 + 1 -2 Changes in classification— net to ta l................................... Noninsured banks to insured banks . . ..... Insured bank to noninsured . ........ Nooiiisurcd branches to insured branches ................. Among branches of insured banks • . . . . . 2 2 5 5 2 2 4 4 4 4 -1 -1 + 188 + 128 -189 -129 +60 -60 BANK S N um ber of banks, December 31, 1943......................................... N um ber of banks, December 31, 1942......................................... 14,751 14,853 13,458 13,403 1,293 1,450 14,206 14,307 13,274 13,347 5,040 5,081 1,695 1,595 6,539 6,671 847 870 85 90 545 546 184 56 361 490 N et change during year................................................................ -102 +55 -157 -101 -7 3 -41 + 100 -132 -2 3 -5 -1 + 128 -129 Changes resulting from — Banks beginning deposit operations— new banks.......... 48 36 12 48 36 3 4 29 12 Dam Ito flnn& On V t r x - n l r c f ronnoTioH r*T siirpppnpn XTL0rg6Q /] **71 4- * nilallUal 1 qyi/iiQ1 O 1 U A'f1 1 X I /iv T -.W pf" ucucaoct |&P . . . . . JV Wlcn olU net A i L t v k n n / 1 oKonrnfinna*—n t HpPfP^QP 150 4 1 82 63 124 4 1 76 43 26 150 4 1 82 63 124 4 1 76 43 47 2 1 34 10 9 68 2 21 5 6 3 36 30 5 16 1 4 6 20 CORPORATION 283 48 235 INSURANCE • • ........................ ................ Offices opened DEPOSIT Num ber of offices, December 31, 1943........................................ Num ber of offices, December 31, 1942........................................ Noninsured banks becom ing insured......................... Successions to noninsured banks..................................... Admissions to F. R. System............................................. Admissions to insurance, operating banks3 .................. A- 144 -144 + 140 -140 -1 +1 +3 +1 Insured bank becom ing noninsured— withdrawal from F. R. System.......................................................... +1 -1 +1 +1 ‘ +1 + 16 + 3 ++121 -1 + 128 -129 -1 + 128 -129 136 138 95 35 41 103 -2 +60 -62 +1 9 5 15 4 2 119 119 +2 2 BRANCHES 1 1 4,000 3,813 3,839 3,590 161 223 3,864 3,675 3,744 3,555 1,742 1,594 1,049 1,024 953 937 + 187 +249 -6 2 + 189 + 189 + 148 + 25 + 16 Branches opened for b usin ess................................ Facilities provided as agents of the government. Absorbed banks converted into branches............. Branches replacing offices closed or relocated Other branches opened.............................................. 235 188 23 4 233 188 23 4 18 231 188 23 4 16 159 148 8 37 26 8 20 231 188 23 4 16 35 14 7 4 Branches discontinued.............................................. Branch of suspended bank........................................ Other branches discontinued.................................... 48 44 44 44 18 4 4 46 42 4 42 42 16 4 4 +62 -6 2 N um ber of branches, December 31, 1943. N um ber of branches, December 31, 1942. Net changes during y ea r. . . . Changes resulting fr o m - 2 +2 +1 -1 +2 +2 +1 -2 +4 -1 -3 -1 +1 -4 +1 2 -2 +60 -60 16 *Not engaged in deposit banking. * Includes, at the beginning and at the end of the year, three mutual savings banks members of the Federal Reserve System. * Operating at beginning of year. Back figures— See the Annual Report for 1942, pages 68-69. 2 BANKS Changes not involving num ber in any class: Branches transferred as result of absorptions... Changes in title, location, or name of location.. 2 2 2 +2 Other changes in classification am ong branches. Branches transferred as result of absorption.............. From national banks to State banka............................ From State banks to national banks............................ Admissions to F. R. System........................................... Withdrawals from F. R. System.................................... 2 OPERATING 2 2 OF Branches of banks adm itted to insurance.............. 2 10 2 DEPOSITS + 112 AND -7 -108 -5 + 7 -112 NUMBER + 105 -5 -2 31 -15 -3 -1 -11 +3 +10 Changes not involving num ber in any class: Successions.......................................................... Changes in title, location, or name of location.. + 12 -1 -1 Other changes in classification am ong banks. National banks succeeding State banks................ State banks succeeding national banks................. Admissions to F. R. System..................................... Withdrawals from F. R. System............................. + 15 +3 Oi to T a b le 102. N umber OF OPERATING BANKING OFFICES, DECEMBER 31, 1943 GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK AND BY TYPE OF OFFICE IN EACH STATE AND POSSESSION Mutual savings banking offices Commercial bank and trust company offices All banking offices Noninsured Insured Non insured Total Insured banking offices as percentages of— Trust com panies1 Total Insured Com All Non banking mercial insured offices banking offices Mutual savings banking offices 18,751 13,561 1,190 4,000 17,297 12,343 1,115 3,839 1,454 1,218 75 161 18,070 13,096 1,110 3,864 17,018 12,208 1,066 3,744 6,782 4,738 302 1,742 2,744 1,504 191 1,049 7,492 5,966 573 953 966 804 43 119 86 84 1 1 681 465 80 136 279 135 49 95 402 330 31 41 92.2 91.0 93.7 96.0 94.2 93.2 96.0 96.9 41.0 29.0 61.3 69.9 United States........................................ Unit banks........................................... Head offices......................................... Branches............................................... 18,646 13,531 1,180 3,935 17,292 12,340 1,114 3,838 1,354 1,191 66 97 17,965 13,066 1,100 3,799 17,013 12,205 1,065 3,743 6,782 4,738 302 1,742 2,744 1,504 191 1,049 7,487 5,963 572 952 871 782 34 55 81 79 1 1 681 465 80 136 279 135 49 95 402 330 31 41 92.7 91.2 94.4 97.5 94.7 93.4 96.8 98.5 41.0 29.0 61.2 69.9 105 30 10 65 5 3 1 1 100 27 9 64 105 30 10 65 5 3 1 1 5 3 1 1 95 22 9 64 5 5 4.8 10.0 10.0 1.5 4.8 10.0 10.0 1.5 243 207 9 27 238 202 9 27 5 5 243 207 9 27 238 202 9 27 91 59 7 25 19 17 1 1 128 126 1 1 5 5 97.9 97.6 100.0 100.0 97.9 97.6 100.0 100.0 ... . . • 44 9 5 30 42 7 5 30 2 2 44 9 5 30 42 7 5 30 29 3 2 24 2 2 11 2 3 6 2 2 95.5 77.8 100.0 100.0 95.5 77.8 100.0 100.0 ........................ 225 185 19 21 20 20 245 205 19 21 225 185 19 21 55 47 4 4 12 12 158 126 15 17 17 17 3 3 .......................... 245 205 19 21 91.8 90.2 100.0 100.0 91.8 90.2 100.0 100.0 ............................ ..................... .. • . • •• 1,066 170 32 864 1,051 157 31 863 15 13 1 1 1,066 170 32 864 1,051 157 31 863 796 84 9 703 139 12 7 120 116 61 15 40 6 4 1 1 9 9 98.6 92.4 96.9 99.9 98.6 92.4 96.9 99.9 139 129 5 ' 5 14 14 153 143 5 5 139 129 5 5 82 72 5 5 15 15 42 42 14 14 90.8 90.2 100.0 100.0 90.8 90.2 100.0 100.0 Possessions Unit banks Head offices Branches State Alabama Unit banks Head offices Branches Arizona Unit banks Head offices Branches . . Arkansas Unit banks Head offices Branches California Unit banks Head offices Branches Colorado Unit banks Head offices . ... . • ........... .. .• 153 143 5 5 1 CORPORATION United States and possessions. . . . Unit banks........................................... Head offices......................................... Branches............................................... Total INSURANCE Insured DEPOSIT Total FEDERAL Not Members F. R. mem Banks System of de bers F. R. posit National State System 97 88 1 8 135 111 7 17 108 93 6 9 57 47 4 6 39 36 1 2 25 16 1 8 Delaware........................ Unit banks................. Head offices................ Branches...................... 56 36 7 13 52 34 6 12 4 2 1 1 53 35 6 12 52 34 6 12 13 13 33 19 4 10 1 1 District of Colum bia Unit banks................. Head offices................ Branches..................... 55 55 10 12 33 55 10 12 33 55 10 12 33 26 4 5 17 5 3 1 1 Florida............................ Unit banks................. Head offices................ Branches..................... 186 160 G eorgia.......................... Unit banks................. Head offices................ Branches..................... 10 12 33 3 1 1 1 70 70 53.1 51.9 85.7 52.9 80.0 83.8 85.7 52.9 3 1 1 1 92.9 94.4 85.7 92.3 98.1 97.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 75 71 2 2 80.6 78.5 88.2 94.7 80.6 78.5 88.2 54.7 22 19 1 2 1 1 98.9 97.5 100.0 100.0 119 119 353 353 11 11 5 5 137 117 8 12 109 94 297 218 34 45 21 19 1 1 4 4 739 477 111 151 101 101 61 61 577 315 111 151 70 61 4 5 629 625 2 2 453 449 2 2 179 175 2 2 238 238 174 174 2 2 30 28 1 1 430 376 18 36 400 348 17 35 115 90 4 21 263 243 10 10 24 24 6 4 1 1 1 1 211 115 32 64 210 114 32 64 60 23 7 30 137 85 23 29 1 1 4 2 1 1 386 331 17 38 311 260 15 36 75 71 2 2 386 331 17 38 311 260 15 36 72 39 8 25 214 208 3 3 Id a h o .............................. Unit banks................. Head offices................ Branches..................... 89 40 7 42 88 39 7 42 1 1 89 40 7 42 88 39 7 42 56 10 6 40 Illin o is............................ Unit banks................. Head offices................ Branches..................... 836 830 3 3 820 814 3 3 16 16 836 830 3 3 820 814 3 __ 3_ 348 342 3 3 In d ian a.......................... Unit banks................. Head offices................ Branches..................... 572 456 45 71 546 432 44 70 26 24 1 1 568 452 45 71 543 429 44 70 Io w a ................................ Unit banks................. Head offices................ Branches..................... 809 538 115 156 739 477 111 151 70 61 4 5 809 538 115 156 K ansas............................ Unit banks................. Head offices................ Branches..................... 629 625 2 2 453 449 2 2 176 176 K en tu cky...................... Unit banks................. Head offices................ Branches..................... 430 376 18 36 400 348 17 35 Louisiana...................... Unit banks................. Head offices................ Branches..................... 211 210 114 32 64 2 13 3 3 4 4 3 3 1 1 98.9 97.5 100.0 100.0 98.1 98.1 100.0 100.0 98.1 98.1 100.0 100.0 95.5 94.7 97.8 98.6 95.6 94.9 97.8 98.6 91.3 88.7 96.5 91.3 88.7 96.5 72.0 71.8 100.0 72.0 71.8 100.0 100.0 100.0 93.0 92.6 94.4 97.2 93.0 92.6 94.4 97.2 99.5 99.1 100.0 100.0 99.5 99.1 100.0 100.0 75.0 75.0 BANKS 109 103 3 3 OPERATING 65 47 8 10 OF 14 179 155 11 13 2.8 2.8 100.0 96.2 96.9 91.7 92.9 186 160 12 14 2 2 96.2 96.9 91.7 92.9 7 5 1 1 115 32 64 I 72 72 100.0 179 155 11 13 12 2 2 DEPOSITS 110 95 6 9 AND 207 8 183 7 17 NUMBER Connecticut................. Unit banks.................. Head offices................ Branches...................... T a b le 102. N umber op O p e r a t in g B a n k in g O f f ic e s , D ecem ber 31, 1943— Continued -3 to GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK AND BY TYPE OF OFFICE IN EACH STATE AND POSSESSION Total Total Members F. R. System National 118 45 18 55 44 29 7 8 128 44 23 61 112 39 18 55 40 31 4 5 33 1 4 28 39 7 10 22 16 5 5 6 283 157 29 97 270 147 28 95 13 10 1 2 258 148 27 83 255 145 27 83 75 59 4 12 57 10 6 41 123 76 17 30 2 2 545 323 66 156 312 148 41 123 233 175 25 33 323 156 42 125 312 148 41 123 192 105 19 68 76 14 16 46 44 29 6 9 11 8 1 2 623 401 47 175 581 370 44 167 42 31 3 8 623 401 47 175 581 370 44 167 140 64 11 65 232 140 12 80 209 166 21 22 34 23 3 8 8 8 679 671 2 6 644 636 2 6 35 35 678 670 2 6 643 635 2 6 191 183 2 6 24 24 428 428 34 34 1 1 251 173 28 50 246 168 28 50 5 5 251 173 28 50 246 168 28 50 24 20 2 2 3 3 219 145 26 48 5 5 600 593 3 4 568 561 3 4 32 32 600 593 3 4 568 561 3 4 86 79 3 4 85 85 397 397 30 30 110 110 110 110 110 110 110 110 41 41 28 28 41 41 1 1 Insured Mutual savings banking offices 34 30 2 2 6 6 28 24 2 2 72.8 60.8 72.0 87.3 87.5 88.6 78.3 90.2 17.6 20.0 25 9 2 14 15 2 1 12 10 7 1 2 95.4 93.6 96.6 97.9 98.8 98.0 100.0 100.0 60.0 22.2 50.0 85.7 222 167 24 31 57.2 45.8 62.1 78.8 96.6 94.9 97.6 98.4 93.3 92.3 93.6 95.4 93.3 92.3 93.6 95.4 94.8 94.8 100.0 100.0 94.8 94.8 100.0 100.0 98.0 97.1 100.0 100.0 98.0 97.1 100.0 100.0 94.7 94.6 100.0 100.0 94.7 94.6 100.0 100.0 100.0 100.0 100.0 100.0 222 167 24 31 2 2 Com All Non- banking mercial insured offices banking offices 1 1 1 1 100.0 100.0 CORPORATION * 162 74 25 63 Total INSURANCE M innesota Unit brinks Trust com panies1 DEPOSIT Maryland .............................................. Unit banks........................................... Hc3(l offices • State Not mem Banks of de bers F. R. posit System FEDERAL Insured Noninsured Insured banking offices as percentages of— Noninsured Insured Total Mutual savings banking offices Commercial bank and trust company offices All banking offices 353 347 3 3 415 409 3 3 100.0 100.0 100.0 100.0 43 41 1 1 52.7 53.8 33.3 33.3 86.6 88.9 50.0 50.0 13 10 1 2 96.2 95.0 98.2 98.4 98.7 98.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.2 98.6 98.6 99.9 99.0 98.3 98.1 99.8 1 1 97.6 96.6 97.9 98.6 97.6 96.6 97.9 98.6 1 1 93.3 94.3 87.5 91.3 93.3 94.3 87.5 91.3 97.9 97.2 100.0 100.0 97.9 97.2 100.0 100.0 96.9 96.9 100.0 100.0 96.9 96.9 100.0 100.0 1 1 97.2 93.9 100.0 100.0 97.2 93.8 100.0 100.0 100.0 100.0 21 3 4 14 97.9 98.2 94.6 96.7 97.8 98.2 94.2 96.3 100.0 100.0 100.0 100.0 110 104 3 3 58 56 1 1 52 48 2 2 67 63 2 2 New Jersey......... Unit banks. . . . Head offices. . . Branches........... 506 320 57 129 487 304 56 127 19 16 1 2 478 299 54 125 472 293 54 125 260 201 21 38 132 46 24 62 New M exico. . . . Unit banks. . . . Head offices. . . Branches........... 47 35 6 6 47 35 6 6 47 35 6 6 47 35 6 6 22 22 5 5 New Y o rk ............ Unit banks Head offices. . . Branches........... 1,542 692 146 704 1,529 682 144 703 13 10 2 1 1,353 600 106 647 1,340 590 104 646 589 371 38 180 589 128 49 412 162 91 17 54 13 10 2 1 North Carolina. Unit banks. . . . Head offices. . . Branches........... 373 179 47 147 364 173 46 145 9 6 1 2 373 179 47 147 364 173 46 145 52 40 4 8 20 292 125 40 127 8 5 1 2 North D akota. . Unit banks. . . . Head offices. . . Branches........... 180 141 16 23 168 133 14 21 12 8 2 2 180 141 16 23 168 133 14 21 42 42 126 91 14 11 7 2 2 O h io ...................... Unit banks. . . . Head offices. . . Branches........... 854 645 39 170 836 627 39 170 18 18 851 642 39 170 833 624 39 170 279 233 8 38 284 155 18 111 21 O klahom a........... Unit banks. . . . Head offices. . . Branches........... 391 381 5 5 379 369 5 5 12 12 391 381 5 5 379 369 5 5 205 195 5 5 13 13 161 161 10 10 2 2 Oregon................. Unit banks. . . . Head offices. . . Branches........... 145 141 62 6 73 4 4 144 65 6 73 140 61 6 73 94 23 2 69 39 31 4 4 2 2 2 2 1 1 Pennsylvania. . . Unit banks. . . . Head offices. . . Branches........... 1166 989 56 1,141 971 53 117 25 18 3 4 1,145 1,120 986 968 49 52 107 I 103 718 642 25 51 268 242 23 16 3 4 2 2 21 3 4 14 66 6 73 121 25 1 5 5 15 58 56 1 1 16 16 206 204 1 1 18 3 3 12 3 53 51 1 1 4 4 54 54 8 8 1 1 1 8 2 10 3 3 21 134 84 14 270 236 13 10 16 43 41 1 1 9 7 1 1 3 3 28 21 3 4 189 92 40 57 15 11 2 2 189 92 40 57 ............. ............. 3 3 18 18 3 3 53.6 52.4 66.7 50.0 100.0 100.0 100.0 100.0 100.0 100.0 BANKS New Hampshire Unit banks. . . . Head offices. . . Branches........... 25 5 5 15 131 127 2 2 OPERATING 25 5 5 15 353 347 3 3 OF 25 5 5 15 62 62 DEPOSITS 100.0 100.0 100.0 100.0 Nevada................. Unit banks. . . . Head offices. . . Branches........... 3 3I AND 85.1 84.8 100.0 100.0 41511 409 | NUMBER 85.1 84.8 100.0 100.0 Nebraska............. Unit banks. . . . Head offices. . . Branches........... —3 CO T a b le 102. N um ber OF O perating B ank in g O ffices , D ecember 31, 1943— Continued GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK AND BY TYPE OF OFFICE IN EACH STATE AND POSSESSION Non insured Total Total Members F. R. System National State Not mem Banks bers of de F. R. posit System 99.5 99.3 100.0 24 100.0 99.5 99.3 100.0 100.0 231 195 14 96.3 95.3 100.0 100.0 96.3 95.3 100.0 100.0 92.2 91.8 100.0 92.2 91.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 South Carolina..................................... Unit banks........................................... Head offices ....................................... Branches............................................. 176 138 8 30 147 109 8 30 29 29 176 138 8 30 147 109 8 30 48 18 4 26 South D ak ota....................................... Unit banks........................................... Head offices......................................... Branches............................................... 208 138 24 46 207 137 24 46 1 1 208 138 24 46 207 137 24 46 58 32 4 22 Tennessee............................................... Unit banks........................................... Head offices......................................... Branches............................................... 352 276 22 54 339 263 22 54 13 13 352 276 22 54 339 263 22 54 91 62 7 22 Texas......................................................... Unit banks........................................... Head offices ....................................... Branches . .................................... 876 831 22 23 808 763 22 23 68 68 876 831 22 23 808 763 22 23 462 417 22 23 252 252 Utah .......................... Unit banks .......................... Head offices .......................... Branches............................................. 78 50 7 21 78 50 7 21 78 50 7 21 78 50 7 21 28 9 3 16 27 Verm ont ........................................... Unit banks ...................................... Head offices ................................ Branches ................................ 97 73 7 17 96 72 7 17 80 66 6 8 79 65 6 8 41 37 2 2 400 267 46 87 400 267 46 87 400 267 46 87 400 267 46 87 154 120 10 24 20 10 29 29 20 22 20 67 67 11 100.0 99.0 98.6 100.0 100.0 169 91 29 49 98.8 98.5 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 CORPORATION 126 82 19 8 3 8 INSURANCE 83.5 79.0 100.0 100.0 42 9 6 27 Mutual savings banking offices DEPOSIT 83.5 79.0 100.0 100.0 Head offices.......................................... Branches............................................... 62 14 11 37 ................................ .............................. . ................................ Com All Non banking mercial insured offices banking offices 67.7 64.3 54.5 73.0 31 13 6 12 Virginia Unit banks Head offices Insured 57.5 40.9 50.0 69.2 42 9 6 27 1 1 Total 11 73 22 12 39 Rhode Islan d......................................... Trust com panies1 FEDERAL Insured Insured banking offices as percentages of— Noninsured Insured Total Mutual savings banking offices Commercial bank and trust company offices All banking offices 100.0 100.0 100.0 100.0 ........................ 222 116 11 95 4 4 223 119 10 94 219 115 10 94 132 34 7 91 16 14 1 1 71 67 2 2 3 3 1 1 180 180 175 175 5 5 180 180 175 175 77 77 28 28 70 70 4 4 1 1 W isconsin............................................... 699 477 85 137 687 467 84 136 12 10 1 1 695 473 85 137 684 464 84 136 112 93 4 15 57 46 4 7 515 325 76 114 9 7 1 1 2 2 W yom in g................................................. 57 57 56 56 1 1 57 57 56 56 26 26 10 10 20 20 Alaska2...................................................... Unit banks........................................... Head offices.......................................... Branches............................................... 18 16 1 1 2 2 16 14 1 1 18 16 1 1 2 2 2 2 16 14 1 1 Hawaii3..................................................... Unit banks........................................... Head offices......................................... Branches............................................... 51 7 2 42 1 1 50 6 2 42 51 7 2 42 1 1 1 1 45 1 2 42 Puerto R ico................................... ; . . . Unit banks........................................... Head offices.......................................... Branches.............................. ................. 33 6 6 21 33 6 6 21 33 6 6 21 Virgin Islands4...................................... Unit banks........................................... Head offices.......................................... Branches............................................... 3 1 1 1 1 1 3 1 1 1 1 1 3 1 1 1 4 4 3 1 1 1 3 3 1 1 98.2 96.6 100.0 100.0 97.2 97.2 97.2 97.2 98.3 97.9 98.8 99.3 98.4 98.1 98.8 99.3 98.2 98.2 98.2 98.2 11.1 12.5 11.1 12.5 2.0 14.3 2.0 14.3 Branches............................................... Possessions 75.0 75.0 OF 33 6 6 21 2 2 1 1 1 1 1 1 66.7 66.7 100.0 100.0 100.0 100.0 OPERATING 1 1 DEPOSITS 2 5 5 BANKS 1 Not engaged in deposit banking. 2 Includes 4 national banks (all unit banks), 2 among insured banks not members of the Federal Reserve System, and 2 among noninsured banks. 8 Includes, among noninsured banks, 1 national bank operating 20 branches. 4 Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch. Back figures— See the following Annual Reports: 1942, p. 70; 1941, p. 102; 1940, p. 96; 1939, p. 90; 1938, p. 126; 1937, p. 73; 1936, p. 105; 1935, pp. 122-131. 100.0 100.0 100.0 100.0 AND 98.2 96.7 100.0 100.0 NUMBER 226 120 11 95 WfMfhingtfHl or T a b le 103. NU M BER AND DEPOSITS OP OPERATING COMMERCIAL AND M U TU A L SAVINGS BA N K S, DECEMBER 31, 1943 BANKS GROUPED ACCORDING TO INSURANCE STATUS IN EACH STATE AND POSSESSION Deposits (in thousands of dollars) Number of banks Commercial banks Noninsured Total United States___ 14,711 sured1 Banks Trust com of de posit panies2 J 14,206 | 13,274 14,166 13,270 4.216.207 878,030 54,483 16,620 861,410 54,483 26,979 19,158 7,821 153,310 262,918 2,339,657 16,939 44,773 136,371 218,145 2,339,657 86,154 86,154 31 166 275 73 Idaho.. . . Illinois. . . Indiana. . Iowa........ Kansas... 47 833 501 653 627 47 497 20 627 46 817 473 588 451 Kentucky Louisiana. Maine. . . Maryland Massachui 394 147 99 186 365 146 57 172 189 24 147 67 175 198 Michigan.. Minnesota. Mississippi Missouri. . Montana. . 448 673 201 414 637 196 564 110 26 34 5 30 22 110 833 653 448 672 201 596 110 1 11 65 174 1 10 2 9 32 1 11 I 191 26 8 191 462,847 462,847 21,750 441,097 841,584 229,203 485,243 8,847,727 722,378 841,584 229,203 485,243 8,847,727 722,378 836,167 229,203 482,214 8.810.140 718,329 3,029 37,587 4,049 2,169,676 427,123 707,688 1,061,562 1,194,541 1,291,646 372,640 707,688 1,061,562 1,194,541 1,135,691 371,937 707,688 1,057,090 1,177,230 155,955 703 257,891 8,522,680 1,996,603 1,42S,914 1,029,707 257,891 8,522,680 1,969,624 1,429,914 1,029,707 252,079 8,499,804 1,947,567 1,366,544 926,667 5,812 22,876 22,057 63,370 103,040 1,021,800 1,061,774 499,773 1,538,936 5,923,935 1,021,800 1,061,774 346,463 1,276,018 3,584,278 1,006,979 1.061.141 319,343 1,227,556 3,494,794 14,821 633 27,120 48,462 89,484 3,760,706 1,961,495 485,962 2,902,186 319,041 3,760,706 1,875,341 485,962 2,902,186 319,041 3,687,383 1,851,406 480,350 2,890,789 319,041 73,323 23,935 5,612 11,397 5,417 4,472 17,311 CORPORATION 816 184 INSURANCE 4.216.207 172 348 99 40 22 Nonin sured 7.534.060 172 348 118 41 22 Insured 7.534.060 Connecticut. . . . Delaware............ Dist. of Columbia Florida. . . Georgia. . 148 Total 1,792,578 11.750.267 211 12 190 43 Nonin sured 2,233,675 11.750.267 216 14 224 202 Insured 361 117,636,872 105,886,605 104,094,027 216 14 224 148 Total 361 118,099,719 106,349,452 104,115,777 Alabama............. Arizona............... Arkansas............. California........... Colorado............. 202 banks 545 fl 4 204 188 134 Nonin sured 545 A ^184 40 State In sured 847 40 Possessions.......... All Total DEPOSIT United States and possessions. . . . 14,751 In FEDERAL All banks Mutual savings banks Commercial banks Mutual savings banks New York........... North Carolina.. North D akota... Ohio..................... Oklahoma........... 838 226 157 684 386 706 226 157 681 386 694 219 147 663 374 9 18 Oregon................. Pennsylvania. . . Rhode Island. . . South Carolina.. South D akota... 72 1,045 34 146 162 71 1,038 25 146 162 67 1,017 15 117 161 19 7 29 Tennessee........... Texas................... Utah..................... Vermont............. Virginia............... 298 853 57 80 313 298 853 57 72 313 285 785 57 71 313 9 67 Washington........ West Virginia.. . Wisconsin........... Wyoming............ 131 180 562 57 129 180 558 57 125 175 548 56 3 4 Possessions Alaska................. Hawaii................. Puerto Rico. . . . Virgin Islands.. . 17 9 17 9 2 1 12 2 12 2 10 350 54 8 10 8 3 12 6 3 42 24 13 132 132 3 3 1 1 7 9 7 42 1 1 10 2 2 2 2 3 8 15 3 4 1 1 8 8 1 1 2 1 2 2 4 3 5 12 1 1 833,935 99,098 163,021 3,096,317 162,239 809,271 99,098 152,591 3,091,680 162,239 24,664 10,430 4,637 208,849 331,805 138,282 34,299,759 1,136,201 301,927 5,220,163 915,105 28,124,733 1,136,201 301,927 5,073,437 915,105 27,421,375 1,125,094 243,897 5,063,642 911,503 703,358 11,107 58,030 9,795 3,602 6,175,026 6,175,026 146,726 146,726 908,855 8,199,905 745,855 394,110 240,626 903,800 7,488,590 550,308 394,110 240,626 898,588 7,460,813 468,121 383,153 239,336 5,212 27,777 82,187 10,957 1,290 5,055 711,315 195,547 5,055 711,315 1,297,960 3,667,210 384,032 219,773 1,254,564 1,297,960 3,667,210 384,032 159,298 1,254,564 1,290,845 3,599,436 384,032 159,298 1,254,564 7,115 67,774 60,475 60,475 1,579,433 544,528 1,896,465 136,009 1,472,548 544,528 1,889,412 136,009 1,460,753 537,694 1,883,863 136,009 11,795 6,834 5,549 106,885 106,885 7,053 6,652 52,146 336,720 70,191 3,790 52,146 336,720 70,191 3,790 8,637 9,403 43,509 327,317 70,191 80 3,710 208,849 193,523 195,547 401 BANKS 9 1 Includes 11 trust companies not engaged in deposit banking. Not engaged in deposit banking. Back figures— See the following Annual Reports: 1942, p. 76; 1941, p. 108. 1 2 11 833,935 99,098 371,870 3,428,122 162,239 OPERATING 57 347 41 412 OF 65 353 41 10 DEPOSITS 107 377 41 AND 412 1I NUMBER Nebraska............ Nevada............... New Hampshire. New Jersey......... New M exico.. . . -3 A SSE TS AND LIA B IL IT IE S OF O P E R A T IN G B A N K S T a b le 104. SUMMARY OF ASSETS AND LIABILITIES OF OPERATING BANKS IN THE UNITED STATES AND POSSESSIONS, JUNE 30, 1943 BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK (Amounts in thousands of dollars) 00 Commercial banks Ail banks Total Insured Mutual savings banks Noninsured Insured Total Noninsured 511,903 721,852 169,811 552,041 57,890,123 51,541,848 3,441,027 2,520,385 386,863 1,270,531 1,085,818 67,891 40,751 76,071 6,666,887 5,285,225 239,281 978,635 163,746 1,690,650 1,263,760 82,769 338,645 5,476 4,976,237 4,021,465 156,512 639,990 158,270 Loans, discounts, and overdrafts (including rediscounts)...................... 22,294,293 17,704,857 ^17,392,157 312,700 4,589,436 A , 013,369 3,576,067 Bank premises owned, furniture and fixtures..................................................... Other real estate— direct and indirect................................................................. All other miscellaneous assets................................................................................ T otal assets........................................................................................................... 2,090,378 1,153,466 533,355 403,557 116,983,581 1,585,570 1,640,118 1,022,511 1,041,499 267,120 256,794 331,499 , 306,265 104,555,146 ^102,405,464 54,548 18,988 10,326 25,234 2,149,682 450,260 111,967 266,235 72,058 12,428,435 135,120 32,989 81,807 / 20,324 J 3,008,950 315,140 78,978 184,428 51,734 9,419,485 107,621,968 96,475,864 794,582,458 53,423,385 54,179,572 16,897,124 17,226,852 4,674,476 4,783,323 7,764,936 8,070,395 10,680,944 10,887,482 1,132,339 1,141,498 9,254 186,742 1,893,406 756,187 329,728 108,847 305,459 206,538 9,159 177,488 11,146,104 J 2,738,908 8,407,196 11,146,104 2,738,908 8,407,196 LIABILITIES Deposits— to ta l............................................................................................................ Demand deposits of individuals, partnerships, and corporations................. Time deposits of individuals, partnerships, and corporations....................... States and political subdivisions............................................................................ [l07,621,968 Other banks................................................................................................................. Certified and officers’ checks, cash letters of credit, etc................................. Not classified, including postal savings............................................................... 657,726 28,047 629,679 108,279,694 617,011 28,047 588,964 97,092,875 593,666 24,470 569,196 95,176,124 Undivided profits, including all other capital accounts................................... Total liabilities and capital accounts....................................................... 8,703,887 2,953,843 3,858,912 1,891,132 116,983,581 7,462,271 2,948,200 2,969,066 1,54.5,005 104,555,146 7,229,340 2,841,304 2,886,829 1,501,207 102,405,464 Total number of operating banks.............................................................................. Number of banks included1.............................................................................. Number of banks not included2 ............................................................................. 14,790 14,666 124 14,245 14,121 124 Miscellaneous liabilities— to ta l............................................................................ Rediscounts and other borrowed money............................................................. All other miscellaneous liabilities.......................................................................... Total liabilities (excluding capital accounts)........................................ CAPITAL ACCOUNTS Capital accounts— tota l.................................................................... ...................... Capital stock, notes, and debentures................................................................... 1 Includes 10 insured trust companies not engaged in deposit banking. http://fraser.stlouisfed.org/ 2 Includes 8 8 noninsured trust companies not engaged in deposit banking. Federal Reserve Bank of St. Louis 13,302 / 13,302* r 28,296 40,715 12,419 23,345 3,577 19,768 ...........40,715 ...........12,419 ...........28,296 8,435,492 2,751,327 11,186,819 1,916,751 232,931 106,896 82,237 43,798 2,149,682 1,241,616 5,643 889,846 346,127 12,428,435 943 819 124 545 545 983,993 257,623 5,643 207,944 ........ 681,902 302,091 44,036 9,419,485 3,008,950 61 J6 1 Back figures-—See the following Annual Reports: 1942, pp. 78 and 79; 1941, pp. 122-125. 484 484 CORPORATION 25,537,614 59,160,654 52,627,666 3,508,918 2,561,136 462,934 INSURANCE 26,049,517 65,827,541 57,912,891 3,748,199 3,539,771 626,680 DEPOSIT 26,771,369 Securities— to ta l.......................................................................................................... United States Government obligations, direct and guaranteed..................... Obligations of States and political subdivisions................................................ Other bonds, notes, and debentures..................................................................... Not classified, including corporate stocks........................................................... FEDERAL ASSETS Cash, balances with other banks, and cash item s in process of col- T a b le 105. SUMMARY OF ASSETS AND LIABILITIES OF OPERATING BANKS IN THE UNITED STATES AND POSSESSIONS, DECEMBER 31, 1943 BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK (Amounts in thousands of dollars) Mutual savings banks Commercial banks All banks Total Insured Noninsured Total Insured Noninsured ASSETS ASSETS Cash, balances with other banks, and cash items in process of col lection ....................................................................................................... 559,031 245,094 United States Government obligations, direct and guaranteed.................... Obligations of States and political subdivisions................................................ Other bonds, notes, and debentures.................................................................... Not classified, including corporate stocks.......................................................... 4,452,016 3,843,995 141,241 452,028 14,752 2,944,134 2,252,945 68,016 506,010 117,163 Loans, discounts, and overdrafts (including rediscounts).................... 23,652,670 19,170,886 J 18,843,488 327,398 4,481,784 J 3,073,350 1,408,434 Miscellaneous assets— total........................................................................... 1,970,908 1,112,663 420,288 437,957 127,794,459 1,592,666 1,533,112 1,010,472 984,269 215,092 207,013 331,880 367,102 I 114,734,158 Jll2,245,991 — ■— 59,554 16,203 8,079 35,272 2,488,167 378,242 102,191 205,196 70,855 13,060,301 279,468 76,762 154,209 48,497 j 8,363,865 98,774 25,429 50,987 22,358 4,696,436 106,349,452 A 0 4 ,115,777 59,202,930 58,346,160 18,923,072 18,572,406 4,847,517 4,748,556 10,426,394 10,067,917 11,000,064 10,704,765 1,668,876 1,678,753 270,722 7,097 2,233,675 856,770' 350,666 98,961 358,477 295,299 9,877 263,625 11,750,267 J l , 534,060 4,216,207 11,750,267 7,534,060 4,216,207 733,447 49,268 684,179 118,833,166 697,676 49,219 648,457 107,047,128 676,488 45,679 630,809 104,792,265 21,188 3,540 17,648 2,254,863 35,771 49 35,722 11,786,038 21,893 21,891 7,555,953 13,878 47 13,831 4,230,085 Total liabilities and capital accounts................................................. 8,961,293 2,985,343 4,131,370 1,844,580 127,794,459 7,687,030 2,980,160 3,172,427 1,534,443 114,734,158 - 7,453,726 2,874,548 3,089,817 1,489,361 112,245,991 233,304 105,612 82,610 45,082 2,488,167 1,274,263 P «./ 807,912 4,874 5,183 632,409 958,943 170,629 310,137 8,363,865 13,060,301 466,351 309 326,534 139,508 4,696,436 Total number of operating banks............................................................................. Number of banks included1 .................................................................................... Number of banks not included2 ........................................................................... 14,751 14,637 114 14,206 14,092 114 Bank premises owned, furniture and fixtures.................................................... Other real estate— direct and indirect................................................................. All other miscellaneous assets................................................................................ Total assets................................................................................................. LIABILITIES 118,099,719 Demand deposits of individuals, partnerships, and corporations................. Time deposits of individuals, partnerships, and corporations....................... States and political subdivisions........................................................................... United States Government..................................................................................... [118,099,719 Certified and officers’ checks, cash letters of credit, etc................................. Not classified, including postal savings.............................................................. Miscellaneous liabilities—total..................................................................... Rediscounts and other borrowed money............................................................ All other miscellaneous liabilities......................................................................... Total liabilities (excluding capital accounts).................................... CAPITAL ACCOUNTS Capital accounts—total................................................................................... Capital stock, notes, and debentures.................................................................. Undivided profits, including all other capital accounts.................................. 1 2 Includes 11 insured trust companies not engaged in deposit banking. Includes 85 noninsured trust companies not engaged in deposit banking. 13,274 , 13,274- r 932 818 114 545 545 2 184 f 184* Back figures— See table 104 and the following Annual Reports: 1942, pp. 78 and 79; 1941, pp. 122-125. 361 361 BANKS 804,125 7,396,150 6,096,940 209,257 958,038 131,915 OPERATING 574,808 1,526,407 1,365,537 55,941 38,176 66,753 OF 27,191,292 64,678,099 58,693,549 3,287,646 2,342,211 354,693 LIABILITIES 27,766,100 66,204,506 60,059,086 3,343,587 2,380,387 421,446 AND 28,570,225 73,600,656 66,156,026 3,552,844 3,338,425 553,361 Securities—total................................................................................................ Table 106. ASSETS AND LIABILITIES OF OPERATING INSURED COMMERCIAL BANKS, CALL DATES, DECEMBER 31, 1943, TO DECEMBER 31, 1942 00 o (Amounts in thousands of dollars) 27,191,292 25,537,614 27,593,375 8,382,577 68,615 20,398 4,438,232 8,360,056 76,252 19,381 3,539,563 58,693,549 51,541,848 40,711,697 4,636,858 13,220,074 7,673,192 316,032 5,790,533 16,775,686 6,159,925 1,619,819 2,501,430 6,557,043 10,315,660 5,716,747 295,585 5,497,169 11,214,936 7,782,107 1,501,296 2,661,305 4,462,419 6,728,512 5,800,208 284,259 2,864,750 10,046,540 6,469,547 Interbank deposits—total........................... Banks in the United States— demand......... 1,337,064 Banks in the United States— time............... 2,718,398 Banks in foreign countries— demand........... Banks in foreign countries— time................. 1,447,018 12,834,452 Other securities— to ta l......................... .. Obligations of States and political subdivisions Other bonds, notes, and debentures1 ............... Corporate stocks: Federal Reserve banks..................................... Other corporate stocks..................................... 5,984,550 T otal securities........................................... Loans, discounts, and overdrafts (including rediscounts)— to ta l.................... Commercial and industrial loans (including open market paper)............................ Loans secured by agricultural commodities, covered by purchase agreements of the Commodity Credit Corporation............... Other agricultural loans (excluding loans on farm land)............................................ 1,449,901 12,092,461 6,348,275 1,306,806 13,071,533 Dec. 31, 1943 Deposits of individuals, partnerships, and corporations—total............................... 76,918,566 Demand................................................................... Time......................................................................... 58,346,160 18,572,406 June 30, 1943 Dec. 31, 1942 70,320,509 53,423,385 16,897,124 62,834,608 47,128,273 15,706,335 8,984,740 Certified and officers’ checks, cash letters of credit and travelers’ checks out 100,282 standing, and amounts due to Fed13,255 eral Reserve banks................................. 4,116,759 1,668,876 1,132,339 1,219,141 Government deposits—total........................... 14,823,570 12,448,666 12,622,191 9,665,368 285,343 117,206 7,097 4,353,497 395,059 7,441,288 258,383 65,265 9,254 4,262,454 412,022 } 8,167,459 47,875 13,364 3,996,701 396,792 10,704,765 10,680,944 11,144,487 United States Government— demand: War loan and Series E bond accounts......... Other accounts................................................... United States Government— time.................... Postal savings......................................................... States and political subdivisions— demand. . . States and political subdivisions— time........... 6,632,557 3,287,646 2,342,211 3,441,027 2,520,385 3,533,486 2,680,163 153,983 200,710 148,530 238,333 145,791 273,117 64,678,099 57,890,123 47,344,254 18,843,488 17,392,157 18,906,869 7,777,748 6 ,8 8 8 , 1 2 2 7,757,567 598,466 364,155 746,261 952,238 895,514 906,787 LIABILITIES AN D CAPITAL Total deposits. Demand.......... Tim e................ 9,743,462 63,861 893,382 4,060 104,115,777 9,768,487 73,600 834,043 4,814 94,582,458 10,234,297 91,892 813,479 4,819 87,820,427 8^,956,088 19,159,689 77,120,379 17,^62,079 71,559,350 16,261,077 676,488 593,666 582,450 45,679 55,006 41,695 45,449 197,759 290,900 24,470 61,260 41,732 49,198 166,515 250,491 9,748 46,478 39,915 58,030 127,390 300,889 Total liabilities (excluding capital accounts).................................................. 104,792,265 95,176,124 88,402,877 Miscellaneous liabilities—total..................... Bills payable, rediscounts, and other liabilities for borrowed money..................................... Acceptances outstanding..................................... Dividends declared but not yet payable......... Income collected but not earned....................... Expenses accrued and unpaid............................ Other liabilities...................................................... CORPORATION Dec. 31, 1942 INSURANCE Obligations of the United States Govern m en t— to ta l................................................. Direct: Treasury bills..................................................... Treasury certificates of indebtedness........... Treasury notes................................................... United States savings bonds.......................... Other bonds maturing in 5 years or less. . . Other bonds maturing in 5 to 10 years. . . . Bonds maturing in 10 to 20 years................ Bonds maturing after 20 years...................... Guaranteed obligations........................................ June 30, 1943 DEPOSIT Cash, balances with other banks, and cash item s in process of collection— total. Currency and coin................................................. Reserve with Federal Reserve banks............... Demand balances with banks in the United States (except private banks and Amer ican branches of foreign banks)................ Other balances with banks in the United States Balances with banks in foreign countries. . . . Cash items in process of collection................... Dec. 31, 1943 FEDERAL ASSETS Consumer loans to individuals: Retail automobile instalment paper............. Other retail, repair and modernization inPersonal instalment cash loans..................... Single-payment loans to individuals............ Loans to brokers and dealers in securities___ Other loans for the purpose of purchasing or 191,913 310,389 1,205,670 1,414,365 230.548 334.549 1,192,109 1,134,191 329,306 404,138 1,256,594 950,213 921,583 671,023 597,225 448,577 3,203,587 785,826 57,939 860,182 470,505 3,230,433 847,922 31,295 864,883 476,738 3,263,112 907,343 27,000 1,015,424 83,521,587 1,201,282 914,292 79,977 122,728 75,282,280 1,279,305 936,628 85,883 164,306 44,625 179,435 11,920 95,850 54,207 153,958 12,160 85,940 Total a ssets.................................................. 112,245,991 102,405,464 Number of banks....................................................... 13,274 13,302 7,056,234 2,848,630 2,801,594 2972,256 2433,754 Total liabilities and capital accounts. 112,245,991 102,405,464 95,459,111 M EM ORANDA Pledged assets and securities loaned— total 18,541,870 United States Government obligations, di rect and guaranteed, pledged to secure liabilities 17,570,199 Other assets pledged to secure liabilities......... 655,191 Assets pledged to qualify for exercise of fidu ciary or corporate powers, and for pur poses other than to secure liabilities. .. 275,981 Securities loaned................................................... 40,499 15,177,519 13,296,816 14,162,607 707,803 12,258,515 782,197 245,878 61,231 228,575 27,529 101,911 Secured and preferred liabilities— t o t a l.. . . 14,852,101 Deposits secured by pledged assets pursuant to requirements of law................................ 13,936,664 Deposits preferred under provisions of law 40,808 but not secured by pledge of assets......... 897,046 133,493 Borrowings secured by pledged assets............. 16,901 12,498 Other liabilities secured by pledged assets.... 1,490 79,568 212,344,974 12,647,668 211,473,263 11,653,217 856,542 12,767 2,402 982,060 9,704 2,687 13,302 13,347 66,251,123 1,348,246 959,147 88,388 198,800 266,367 95,459,111 13,347 Number of banks BANKS Includes obligations of United States government corporations and agencies not guaranteed by the United States government. Revised. Back figures— See the following Annual Reports: 1942, p. 80; 1941, p. 126; 1940, p. 144; 1938, p. 164. 1 2 13,274 OPERATING 92,488 306,265 7,229,340 2,841,304 2,886,829 1,039,182 462,025 Undivided profits.................................................. 7,453,726 2,874,548 3,089,817 1,006,406 482,955 OF 84,285 331,830 M iscellaneous assets— to ta l.............................. Customers’ liability on acceptances out standing ........................................................... Income accrued but not collected..................... Prepaid expenses................................................... Other assets .. . ............... Capital accounts— to ta l...................................... Capital stock, notes, and debentures.............. LIABILITIES Bank premises, furniture and fixtures, and other real estate— to ta l.......................... Bank premises........................................................ Furniture and fixtures.......................................... Real estate owned other than bank premises. Investments and other assets indirectly repre senting bank premises or other real estate 280,434 AND Loans and securities— to ta l.................. 180,184 ASSETS Real estate loans: On farm land...................................................... On residential properties................................. On other properties.......................................... Loans to banks...................................................... All other loans (including overdrafts)............. 160,456 00 A N A LY SIS OF EXAM IN A T IO N S OF INSURED CO M M E R C IA L BANKS T a b le 107. ANALYSIS OF ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS (Amounts in thousands of dollars) 00 Banks with deposits of— All banks $250,000 or less $250,000 to $500,000 $500,000 to $1 , 0 0 0 , 0 0 0 $1 ,0 0 0 , 0 0 0 to $2 , 0 0 0 , 0 0 0 $2 , 0 0 0 , 0 0 0 to $5,000,000 $5,000,000 $1 0 , 0 0 0 , 0 0 0 More than to to $50,000,00C $ 1 0 , 0 0 0 , 0 0 0 $50,000,000 2,649,125 4,978,609 8,434,825 6,366,953 14,613,858 64,049,187 308 807,081 15,736 791,31+5 1,047 2,648,078 1*6,833 2,601,21*5 4,477 4,974,132 93,205 }*,880,927 10,029 8,424,796 162,126 8,262,670 7,919 6,359,034 118,1*1*6 6,21*0,588 20,188 14,593,670 218,111 11*,375,559 26,621 64,022,566 602,505 63,1*20,061 Gash and due from banks............................................... 25,342,868 53,036 311,385 929,382 1,606,297 2,500,812 1,759,108 3,962,864 14,219,984 Total securities—book value.......................................... 56,122,560 32,471 284,145 1,069,234 2,213,444 4,142,253 3,335,076 7,910,391 37,135,546 8,024 56,114,536 1*62,151* 55,652,882 -35 32,506 731 31,775 -445 284,590 1*,385 280,205 -1,177 1,070,411 lb ,336 1,056,075 -782 2,214,226 27,066 2,187,160 327 4,141,926 1*9,896 1*,092,030 1,127 3,333,949 37,230 3,296,719 1,740 7,908,651 61,515 7,81*7,136 18,290,697 33,970 200,228 611,769 1,073,398 1,630,321 1,136,757 2,403,460 39,579 18,251,118 5 hi,117 17,710,001 139 33,831 1,901* 31,927 615 199,613 9,750 189,863 1,791 609,978 27,1*18 582,560 3,740 1,069,658 51,632 1,018,026 5,791 1,624,530 83,1*63 1,51*1,067 4,409 1,132,348 56,755 1,075,593 9,591 2,393,869 98,188 2,295,681 2,315 11,631 38,740 85,470 161,439 136,012 337,143 105 500 1,710 138 11,493 1,601 9,892 433 38,307 5,079 33,228 1,519 83,951 lb ,507 69,1*1*1* 3,911 157,528 28,767 128,761 2,383 133,629 21*,1*61 109,168 8,857 328,286 58,1*08 269,878 5,849 1,487,014 123,503 1,363,511 Examiners’ deductions— net................................................ Appraised value....................................................................... Substandard.......................................................................... Not criticized......................................................................... Loans—book value............................................................. Examiners’ deductions.......................................................... Appraised value....................................................................... Substandard.......................................................................... Not criticized........................................................................ Fixed and miscellaneous assets— book value............ 2,265,613 7,269 37,128,277 266,995 36,861,282 11,200,794 13,503 11,187,291 212,007 10,975,281* 1,492,863 23,195 2,242,418 256,826 1,985,592 Capital accounts— book value........................................ 7,139,222 17,896 86,145 242,159 429,181 695,733 517,816 1,027,043 4,123,249 R .F.C.— book value............................................................. Private— book value............................................................. Examiners’ deductions— net................................................ Net sound capital— total...................................................... R .F.C.— retirable value...................................................... Private— net sound capital................................................. 21*8,565 6,890,657 75,289 7.063,933 y 298,113 6,765,820 1,186 16,710 234 17,662 1,186 16,1*76 1*,395 81,750 397 85,748 1*,1*82 81,266 10,110 232,01*9 1,247 240,912 10,1*81 230,1*31 19,018 1*10,163 4,771 424,410 19,91*0 1*01*,1*70 31,878 663,855 10,404 685,329 31*,7H 650,618 27,815 1*90,001 8,198 509,618 29,196 1*80,1*22 60,11*7 966,896 22,305 1,004,738 81,668 923,070 91*,016 1*,029,233 27,733 4,095,516 116,1*1*9 3,979,067 Adjusted liabilities (exclusive of capital accounts)— total............................................................................... 94,887,007 103,921 721,333 2,407,166 4,549,722 13,588,932 59,927,050 94,087,113 799,894 103,272 649 719,911 1,422 2,401,771 5,395 4,538,191 11,531 7,739,467 7,715,652 23,815 5,849,416 Deposits.................................................................................... Other liabilities........................................................................ 5,827,507 21,909 13,517,540 71,392 59,263,269 663,781 Number of banks........................................................................ 13,207 543 1,899 3,300 3,208 2,501 851 682 223 N o t e : For banks included and explanation of terms, see pages 63-65. http://fraser.stlouisfed.org/ Back figures— See the following Annual Reports: 1942, p. 82; 1941, pp. Federal Reserve Bank of St. Louis 133, 141, and 143; 1940, pp. 160, 169, and 171; 1939, pp. 151, 159, and 161. CORPORATION Examiners’ deductions— net................................................ Appraised value....................................................................... Substandard.......................................................................... Not criticized......................................................................... 2 ,2 1 0 INSURANCE 807,389 209 121,583 8,185 118, 1*1*8 DEPOSIT 121,792 70,798 101,950,940 1,260,097 100,690,81*3 FEDERAL 102,021,738 Examiners’ deductions— net................................................ Appraised value....................................................................... Substandard.......................................................................... Not criticized......................................................................... Total assets— book value................................................. T a b le 108. A s s e t AND N E T S o u n d CAPITAL RATIOS OP INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS (Amounts per $100 of book value) Banks with deposits of— $250,000 or less Total assets— book value................................................. 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .0 2 1 0 0 .0 0 -.1 1 1 0 0 .1 1 Examiners’ deductions— n e t.................................................... Appraised value............................................................................. Substandard.......................................................................... Not criticized........................................................................ Loans—book value............................................................ Examiners’ deductions............................................................... Appraised value............................................................................. Substandard.......................................................................... Not criticized........................................................................ Examiners’ deductions— n e t .................................................... Appraised value............................................................................. Substandard.......................................................................... Not criticized........................................................................ Capital accounts—book value....................................... 99.78 2.96 96.82 1 0 0 .0 0 1 .0 2 98.98 11.3U 87.6U 1 0 0 .0 0 1 0 0 .0 0 .41 99.59 5.60 93.99 to $1 0 , 0 0 0 , 0 0 0 $1 0 0 . 0 0 .04 99.96 1.95 98.01 $1 0 0 . 0 0 .04 99.96 1.77 98.19 $1 0 0 . 0 0 .09 99.91 1.87 98.0U 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 -.1 1 1 0 0 .1 1 -.16 100.16 1.5U 98.62 1 0 0 .0 0 .31 99.69 U.87 9U.82 loo.eo 4.54 95.46 21.60 73.86 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1.19 98.81 13.76 85.05 1.SU 98.77 1 0 0 .0 0 .29 99.71 U.U8 95.23 1 0 0 .0 0 1 .1 2 $1 0 0 . 0 0 More than $1 0 0 . 0 0 .1 2 .1 2 99.88 1.86 98.02 $1 0 0 . 0 0 .14 99.86 1.U9 98.37 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .0 1 1 0 0 .0 0 1 0 0 .0 0 .0 2 1 0 0 .0 © .0 2 -.04 100.04 1.22 98.82 1 0 0 .0 0 .35 99.65 U.81 9U.8U 99.99 1.20 98.79 .03 99.97 1.12 98.85 1 0 0 .0 0 1 0 0 .0 0 .36 99.64 5.12 9U.52 .39 99.61 U.99 9U.62 99.98 .78 99.20 . 1 0 0 .0 0 .40 99.60 U.09 95.51 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 98.88 13.11 85.77 1.78 98.22 16.97 81.25 2.42 97.58 17.82 79.76 1.75 98.25 17.98 80.27 2.63 97.37 17.32 80.05 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 6.63 93.37 1.31 98.69 6.63 92.06 5.10 9U.90 .46 99.54 5.20 9U.3U U.17 95.83 .51 99.49 U.33 95.16 98.89 U.65 9U.2U U.58 95.U2 1.50 98.50 U.99 93.51 Appraised value of assets.......................................................... D eposits................................................ ........................................... 6.93 7.51 14.53 17.10 10.62 11.91 9.10 10.03 8.53 9.35 Number of banks............................................................................... 13,207 543 1,899 3,300 3,208 2,501 R.F.C.— retirable value..................................................... Private— net sound capital................................................ to 99.88 1.92 97.96 8.U8 96.52 1.05 98.95 U.18 9U.77 Examiners’ deductions— n e t.................................................... N et sound capital— to ta l........................................................... $1 0 ,0 0 0 , 0 0 0 $50,000,000 $50,000,000 U.U3 95.57 1 .1 1 $1 0 0 . 0 0 .04 99.96 .9U 99.02 1 0 0 .0 0 .1 2 99.88 1.89 97.99 99.98 .72 99.26 1 0 0 .0 0 .39 99.61 8.27 91.3 U 1 0 0 .0 0 5.37 9U.63 1.58 98.42 5.6U 92.78 5.86 9U.1U 2.17 97.83 7.95 89.88 8.13 8 .0 1 6 .8 8 8 .8 8 8.75 7.43 6.40 6.91 851 682 223 2.28 97.72 .67 99.33 2.82 96.51 Net sound capital per $100 of— N ote : For banks included and explanation of terms, see pages 63-65. Back figures— See the following Annual Reports: 1942, p. 83; 1941, pp. 135, 145, and 147; 1940, pp. 163, 173, and 175; 1939, pp. 153, 163, and 165. BANKS R .F.C.— book value............................................................ Private— book value............................................................ 1 0 0 .0 0 .2 2 2.25 97.86 $5,000,000 to $5,000,000 INSURED Fixed and miscellaneous assets—book value............ 99.98 .82 99.16 $2 ,0 0 0 , 0 0 0 to $2 ,0 0 0 , 0 0 0 OF Cash and due from banks.............................................. Securities—book value..................................................... Substandard.......................................................................... Not criticized........................................................................ $1 ,0 0 0 , 0 0 0 to $1 , 0 0 0 , 0 0 0 EXAMINATIONS $1 0 0 . 0 0 .17 99.83 2.57 97.26 $500,000 to OF $1 0 0 . 0 0 .07 99.93 1.23 98.70 Examiners’ deductions— n e t .................................................... Appraised value............................................................................. $250,000 $500,000 ANALYSIS All banks Table 109. ANALYSIS OF ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO (Amounts in thousands of dollars) Banks with net sound capital per $100 of appraised value of assets of— All banks $0 . 0 1 to $4.99 $5.00 to $9.99 $1 0 . 0 0 to $14.99 $15.00 to $19.99 $2 0 . 0 0 to $24.99 $30.00 to $34.99 $25.00 to $29.99 $35.00 or more 47,377 21 13,448,793 2,084,904 597,562 544,249 42,912 75,296,816 787,002 71*,509,81 1* 18,997 13,429,796 290,612 13,139,18k 7,689 2,077,215 97,759 1,979,1*56 1,896 595,666 23,11*3 572,523 -6,671 550,920 18,666 532,251* Gash and due from banks............................................... 25,342,868 2,834,549 18,238,464 3,481,569 510,998 134,339 124,705 6,752 11,492 Total securities— book value.......................................... 56,122,560 5,660,423 41,594,609 7,106,673 1,083,496 322,451 295,690 33,123 26,095 8,024 56,114,536 1*62,151* 55,652,382 858 5,659,565 10,870 5,61*8,695 1,839 41,592,770 282,251 1*1,310,519 4,439 7,102,234 111, 1*11* 6,990,820 410 1,083,086 30,607 1,052,1*79 257 322,194 7,916 311*,278 127 295,563 11*,971 280,592 97 33,026 1,702 31,321* -3 26,098 2,1*23 23,675 Appraised value....................................................................... Substandard.......................................................................... 18,290,697 Examiners’ deductions.......................................................... Capital accounts— book value........................................ R .F.C.— book value............................................................. Private— book value............................................................. R .F.C.— retirable value...................................................... Private— net sound capital................................................. Adjusted liabilities (exclusive of capital accounts)— total............................................................................... 47,356 3,081* 1*1*,272 1,308,958 13,787,167 2,546,589 397,564 120,022 113,868 8,011 8,518 2,581 1,306,377 16,665 1,289,712 24,077 13,763,090 31*8,1*52 13,1*11*,638 9,322 2,537,267 126,002 2 M l , 265 2,304 395,260 31*,91*5 360,315 1,097 118,925 11,051 107,871* 151 113,717 2,850 110,867 28 7,983 752 7,231 19 8,499 1*00 8,099 2,265,613 23,195 2,242,418 256,826 1,985,592 104,009 1,719,488 313,962 92,846 20,750 9,986 3,300 1,272 2,374 101,635 7,521 91*,111* 16,996 1,702,492 156,299 1,51*6,193 5,236 308,726 53,196 255,530 4,975 87,871 32,207 55,661* 542 20,208 1*,176 16,032 -6,949 16,935 81*5 16,090 16 3,284 2,321 963 5 1,267 261 1,006 383,532 4,767,971 1,392,195 320,373 120,560 127,217 17,339 10,035 21*8,565 6,890,657 75,289 7,063,933 298,113 6,765,820 22,1*33 361,099 6,028 377,504 25,723 351,781 165,960 1*,602,Oil 45,486 4,722,485 193,1*02 1*,529,083 1*1*,722 1,31*7,1*73 19,443 1,372,752 62,279 1,310,1*73 11,1*91* 308,879 8,862 311,511 12,1*53 299,058 2,568 117,992 1,978 118,582 2,868 115,711* 696 126,521 -6,671 133,888 696 133,192 271* 17,065 141 17,198 271* 16,921* 1*18 9,617 10,013 1*18 9,595 94,887,007 7,139,222 22 9,524,622 70,574,331 12,057,044 1,765,704 477,084 417,032 33,847 37,343 94,087,113 799,894 9,495,167 29,455 69,880,266 694,065 12,004,996 52,048 1,748,555 17,149 474,185 2,899 413,925 3,107 33,263 584 36,756 587 13,207 367 7,226 4,206 1,037 266 63 15 27 N o t e : For banks included and explanation of terms, see pages 63-65. http://fraser.stlouisfed.org/ Back figures— See the following Annual Reports: 1942, p. 84; 1941, pp. Federal Reserve Bank of St. Louis 132, 140, and 142; 1940, pp. 160, 168, and 170; 1939, pp. 150, 158, and 160. CORPORATION Fixed and miscellaneous assets—book value............ 39,579 18,251,118 5hi ,117 17,710,001 141 51,045 1*,775 1*6,270 INSURANCE 75,339,728 DEPOSIT 9,907,939 5,813 9,902,126 35,056 9,867,070 FEDERAL 51,186 102,021,738 70,798 101,950,940 1,260,097 100,690,81*3 T a b le 110. ASSET AND N E T SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO (Amounts per $100 of book value) Banks with net sound capital per $100 of appraised value of assets of— All banks $5.00 to $9.99 $10.00 to $14.99 $15.00 to $19.99 $100.00 .07 99.93 $100.00 .06 99.94 $100.00 .06 99.94 $100.00 .14 99.86 1.28 98.70 .85 99.59 $100.00 .37 99.63 1.0U 98.90 2.16 97.70 A.69 94.94 $100.00 .32 99.68 8.87 95.81 $25.00 to $29.99 $100.00 -1.23 101.23 8 .US 97.80 $30.00 to $34.99 $35.00 or more $100.00 .28 99.72 $100.00 .04 99.96 9.88 90.89 6.51 98.45 100.00 100.00 100.00 100.00 100.00 100.00 .82 99.16 .19 99.79 100.00 .00 100.00 100.00 .06 99.94 100.00 .04 99.96 .68 99.82 1.57 98.87 2.82 97 .U 100.00 .08 99.92 100.00 .04 99.96 100.00 .29 99.71 5.06 94.90 100.00 -.01 100.01 5.14 9U.57 9.28 90.78 Loans— book value..................................................... Examiners* deductions............................................ Appraised value......................................................... Substandard............................................................ Not criticized .......................................................... 100.00 .22 99.78 100.00 .20 99.80 2.96 96.82 1.27 98.58 100.00 .17 99.83 100.00 .37 99.63 100.00 .58 99.42 4. 95 91*.68 8.79 90.68 100.00 .13 99.87 100.00 .35 99.65 100.00 .22 99.78 Fixed and miscellaneous assets—book value Examiners’ deductions—net.................................... Appraised value......................................................... Substandard ............................................................ Not criticized.. ....................................................... 100.00 1.02 98.98 100.00 2.28 97.72 100.00 .99 99.01 100.00 1.67 98.33 9:09 89.92 100.00 5.36 94.64 100.00 2.61 97.39 16.94 81.89 84.69 59.95 20.18 77.26 Capital accounts— book value............................... R .F .C . — book value ................................................ Private— book value ................................................ Examiners’ deductions—net.................................... Net sound capital—total.......................................... R .F .C . — retirable value ......................................... Private— net sound capital ..................................... 100.00 100.00 8.48 96.52 5.85 9U.15 100.00 100.00 100.00 8.U8 96.52 8.21 96.79 8.59 96.41 100.00 U .84\ 87.64 7.28 90.U9 2.58 97.80 2.45 97.^7 100.00 .91 99.09 9.21 89.88 2.18 97.87 1.05 98.95 1.57 98.43 .95 99.05 U.18 9U.77 6.71 91.72 1.40 98.60 2.77 97.23 U.06 9U.99 1.64 98.36 4.47 94.18 8.89 98.8^ Net sound capital per $100 of— Appraised value of assets......................................... Deposits.................................................................... 6.93 7.51 3.81 3.98 6.27 6.76 10.22 11.43 Number of banks.......................................................... 13,207 367 7,226 4,206 2.50 97.87 4.70 95.08 100.00 -69.59 169.59 100.00 .48 99.52 8.U6 161.18 100.00 .39 99.61 70.8U 29.18 20.52 79.09 100.00 100.00 .55 99.U5 1.58 98.U2 100.00 4.17 95.88 2.88 95.98 -5.24 105.24 .81 99.19 .55 10U.69 1.58 97.61 15.00 17.82 119.91 25.00 124.30 32.35 33.69 51.70 121.14 27.24 1,037 266 63 15 27 xFor explanation of the apparent irregularity in this item, see page 65. For banks included and explanation of terms, see pages 63-65. Back figures— See the following Annual Reports: 1942, p. 85; 1941, pp. 134, 144* and 146; 1940, pp. 162, 172, and 174; 1939, pp. 152, 162, and 164. N o te: 9.89 90.26 .22 99.78 4.17 95.61 BANKS 100.00 100.00 .02 99.98 INSURED 100.00 100.00 .02 99.98 OP 100.00 EXAMINATIONS Cash and due from banks..................................... Securities—book value........................................... Examiners’ deductions— net.................................. Appraised value......................................... ............... Substandard.......................................................... Not criticized .......................................................... OP Total assets— book value....................................... Examiners’ deductions—net.................................. Appraised value....................................................... Substandard. ........................................................ Not criticized ......................................................... $20.00 to $24.99 ANALYSIS $0.01 to $4.99 T a b le 111. ANALYSIS OF ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO FIXED AND SUBSTANDARD ASSETS RATIO 00 <Ji (Amounts in thousands of dollars) Banks with fixed and substandard assets per $100 of appraised value of assets of— All banks T otal securities— book value.............................................. Not criticized......................................................................... Substandard.......................................................................... Adjusted liabilities (exclusive of capital accounts)— 8,539,341 25,167 8,514,174 327,972 8,186,202 1,414,845 9,027 1,405,818 120,148 1,285,670 $25.00 to $29.99 $2 0 . 0 0 to $24.99 $15.00 to $19.99 303,608 3,770 299,838 38,247 261,591 113,069 1,850 111,219 18,274 92,945 $30.00 or more 33,415 1,296 32,119 6,857 25,262 71,694 2,510 69,184 19,862 49,322 25,342,868 643,260 22,248,906 2,058,938 283,462 65,121 21,559 7,823 13,799 56,122,560 8,024 56,114,536 462,154 55,652,382 1,171,765 -176 1,171,941 2,528 1,169,US 49,546,273 3,280 49,542,993 298,102 49,244,891 4,434,246 3,373 4,430,873 103,012 4,327,861 750,463 789 749,674 S6,954 712,720 134,639 433 134,206 11,146 123,060 50,289 46 50,243 4,254 45,989 13,091 260 12,831 1,130 11,701 21,794 19 21,775 5,028 16,747 18,290,697 39,579 18,251,118 541,117 17,710,001 483,218 49 483,169 2,518 480,651 15,638,941 21,613 15,617,328 309,311 15,308,017 1,727,673 1,716,662 144,411 1,572,251 306,370 4,103 302,267 51,688 250,579 81,798 1,689 80,109 17,458 62,651 27,329 541 26,788 6,157 20,631 7,921 191 7,730 3,201 4,529 17,447 382 17,065 6,373 10,692 2,265,613 23,195 2,242,418 256,826 1,985,592 27,352 1,798 25,554 3,555 21,999 1,786,051 614 1,785,437 112,723 1,672,714 318,484 10,783 307,701 80,549 227,152 74,550 4,135 70,415 31,506 38,909 22,050 1,648 20,402 9,643 10,759 13,892 1,263 12,629 7,863 4,766 4,580 845 8,735 2,526 1,209 18,654 2,109 16,545 8,461 8,084 7,139,222 248,565 6,890,657 75,289 7,063,933 298,113 6,765,820 120,553 276 120,277 1,685 118,868 276 118,592 5,957,879 164,848 5,793,031 27,668 5,930,211 184,088 5,746,123 802,819 57,095 745,724 25,868 776,951 81,724 695,227 180,406 16,715 163,691 9,509 170,897 21,129 149,768 42,679 5,354 37,325 3,793 38,886 5,694 33,192 15,690 2,507 13,183 1,857 13,833 3,017 10,816 4,739 1,278 3,461 1,296 3,443 1,578 1,865 14,457 492 13,965 3,613 10,844 607 10,237 94,887,007 94,087,113 799,894 2,205,056 2,195,554 9,502 83,264,453 82,521,505 742,948 7,737,223 7,706,635 30,588 1,234,921 1,229,557 5,364 260,952 258,604 2,348 97,386 96,968 418 28,676 28,560 116 58,340 49,730 8,610 10,511 1,939 388 95 37 12 14 13,207 N o t e : For banks included and explanation of terms, see pages 63-65. Back figures—See the following Annual Reports: 1942, p. 86; 1941, pp. 211 1 1 ,0 1 1 132, 140, and 142; 1940, pp. 160, 168, and 170; 1939, pp. 150, 158, and 160. CORPORATION Fixed and miscellaneous assets— book value.............. Examiners’ deductions— net................................................ 89,220,171 25,507 89,194,664 720,136 88,474,528 $1 0 . 0 0 to $14.99 INSURANCE Examiners’ deductions......................................................... Appraised value....................................................................... $5.00 to $9.99 DEPOSIT Gash and due from banks................................................... 2,325,595 1,671 2,323,924 8,601 2,315,323 $0 , 0 1 to $4.99 FEDERAL 102,021,738 70,798 101,950,940 1,260,097 100,690,843 $0 . 0 0 T a b le 112. A s s e t AND N et SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO FIXED AND SUBSTANDARD ASSETS RATIO (Amounts per $100 of book value) Banks with fixed and substandard assets per $100 of appraised value of assets of— $0 . 0 0 $0 . 0 1 to $4.99 $5.00 to $9.99 $1 0 . 0 0 to $14.99 $15.00 to $19.99 $25.00 to $29.99 $2 0 . 0 0 to $24.99 $30.00 or more $1 0 0 . 0 0 .64 99.36 8.U9 90.87 $1 0 0 . 0 0 1.24 98.76 12.60 86.16 $1 0 0 . 0 0 1.64 98.36 16.16 82.20 $1 0 0 . 0 0 3.88 96.12 20.52 75.60 $1 0 0 . 0 0 3.50 96.50 27.70 68.80 Gash and due from banks................................................... 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 Securities— book value.......................................................... Examiners’ deductions— net................................................ Appraised value...................................................................... Substandard.................................................................... Not criticized .................................................................. 1 0 0 .0 0 .0 2 1 0 0 .0 0 -.0 2 1 0 0 .0 2 1 0 0 .0 0 .0 1 1 0 0 .0 0 1 0 0 .0 0 .1 1 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 Loans— book value.................................................................. Examiners’ deductions......................................................... Appraised value...................................................................... Substandard.................................................................... Not criticized .................................................................. 1 0 0 .0 0 .2 2 Fixed and m iscellaneous assets— book value............. Examiners’ deductions— net................................................ Appraised value...................................................................... Substandard .................................................................... Not criticized .................................................................. 1 0 0 .0 0 1 .0 2 Capital accounts— book value........................................... R .F .C . — book value ....................................................... Private— book value....................................................... Examiners’ deductions— net................................................ Net sound capital— total...................................................... R .F .C . — retirable value ................................................. Private— net sound capital............................................ 1 0 0 .0 0 99.98 .82 99.16 99.78 2.96 96.82 98.98 11.SU 87.6k .22 99.80 1 0 0 .0 0 .0 1 99.99 .52 99.1*7 1 0 0 .0 0 6.57 93.43 18.00 80. AS 99.99 .60 99.89 .08 99.92 2.82 97.60 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .14 99.86 1.98 97.88 .64 99.36 8.86 91.00 1.34 98.66 16.87 81.79 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .03 99.97 6.SI 93.66 3.39 96.61 25.29 71.32 5.55 94.45 A2.26 52.19 1 0 0 .0 0 99.89 U.92 9J>.97 .32 99.68 8.28 91.AO 1 0 0 .0 0 .09 99.91 8.A6 91 .A5 1.99 98.01 8.63 89.38 .09 99.91 28.07 76.8 A 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1.98 98.02 22.53 75.A9 2.41 97.59 A0.U1 57.18 2.19 97.81 36.53 61.28 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 7.47 92.53 AS.73 A8.80 9.09 90.91 56.60 3 A.31 1 0 0 .0 0 1 0 0 .0 0 2.06 97.94 21.3 A 76.60 18.45 81.55 55.15 26. AO 1 0 0 .0 0 11.31 88.69 A5.S5 AS.3 A 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 S.A8 96.52 1.05 98.95 U.18 9U.77 .23 99.77 1.40 98.60 .28 98.S7 2.77 97.23 .46 99.54 S.09 96.1>5 7.11 92.89 3.22 96.78 10.18 86.60 9.27 90.73 5.27 94.73 11.71 83.02 12.5 A 87.A6 8.89 91.11 18.SA 77.77 15.98 8A.02 11.84 88.16 19.23 68.93 26.97 73.03 27.35 72.65 S3.SO 39.35 3. AO 96.60 24.99 75.01 A-20 70.81 N et sound capital per $100 of— Appraised value of assets..................................................... Deposits.................................................................................... 6.93 7.51 5.11 5.41 6.65 7.19 9.13 10.08 12.16 13.90 12.97 15.04 12.44 14.27 10.72 12.06 15.67 21.81 Number of banks........................................................................ 13,207 211 10,511 1,939 388 95 37 12 14 1 0 0 .0 0 N o t e : For banks included and explanation of terms, see pages 63-65. Back figures— See the following Annual Reports: 1942, p. 87; 1941, pp. 134, 144, and 146; 1940, pp. 162, 172, and 174; 1939, pp. 152, 162, and 164. BANKS $1 0 0 . 0 0 .29 99.71 3.8 A 95.87 INSURED $1 0 0 . 0 0 .03 99.97 .81 99.16 OF $1 0 0 . 0 0 .07 99.93 .87 99.56 EXAMINATIONS $1 0 0 . 0 0 .07 99.93 1.23 98.70 OF Total assets— book value..................................................... Examiners’ deductions— net................................................ Appraised value................................................................ .. Substandard....... ............................................................ Not criticized .................................................................. ANALYSIS All banks T a b le 113. ANALYSIS OF ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT (Amounts in thousands of dollars) Federal Deposit Insurance Corporation District— 1 2 3 4 5 6 7 8 9 10 11 12 2,460 1,619 566 44 -298 -584 845 4,032 16,264 1,924 8,773 35,153 Appraised value....................................... 5,801,271 32,225,896 12,274,770 5,159,012 4,385,901 5,535,890 6,983,619 9,795,935 2,535,966 3,354,503 3,785,936 10,112,241 109,268 805,479 51,683 69,706 15,281 16,806 50,186 102,819 420,251 47,080 18,147 Substandard ..................................... 58,441 Not criticized ......................................... 5,698,452 81,805,645 11,969,291 5,108,826 4,884,218 5,466,184 6,936,589 9,737,494 2,522,819 3,339,272 3,769,130 10,002,973 Cash and due from b a n k s....................... 1,280,052 6,077,853 1,165 5,673 Examiners* deductions—net................... Appraised value........................................ 3,206,630 19,477,496 188,912 S I,788 Substandard........................................... Not criticized ......................................... 8,174,842 19,298,584 5,267,538 877 5,266,661 19,798 21,872 88,935 14,683 28,647 3,885 107,142 5,214 2,664 6,577,501 2,623,560 2,086,700 2,682,952 3,979,724 5,644,612 1,282,593 1,439,086 1,614,731 14,164 5,252,497 683,225 1,029,398 1,029,909 1,510,718 961 1,481 1,631 887 681,744 1,027,767 1,029,022 1,509,757 489,094 503 488,591 590,961 887 590,074 676,039 860 675,179 2,254,052 1,942 2,252,110 147,179 5,608,697 114,528 2,048,828 21,527 884,028 27,488 19,818 26,177 23,948 661,926 1,001,590 1,005,074 1,482,269 8,894 479,697 11,887 578,187 8,333 666,846 80,999 2,171,111 134,587 2,095 132,492 935,139 15,468 919,671 322,398 3,598 318,800 102,549 332 102,217 87,556 387 87,169 73,840 307 73,533 91,143 369 90,774 102,304 -171 102,475 33,508 42 33,466 38,950 -722 39,672 62,241 277 61,964 281,398 1,213 280,185 20,687 111,805 89,160 830,511 83,814 234,986 8,861 93,856 9,993 77,176 9,594 63,939 8,449 82,325 7,306 95,169 918 32,548 680 38,992 3,259 58,705 14,105 266,080 2,399,200 1,162,677 355,685 268,959 340,817 404,081 562,296 162,445 216,226 220,526 576,608 68,351 2,830,849 14,400 841,285 14,921 254,038 15,288 325,579 83,504 370,577 6,276 556,020 4 ,U 4 158,331 4,475 211,751 8,779 460,923 16,363 1,146,314 2,572 353,113 2,148 266,811 1,724 339,093 783 403,298 199 562,097 -262 162,707 -378 216,604 8,312 212,214 880 219,646 14,762 561,846 38,426 2,360,774 48,522 1,114,155 17,748 443,180 114,940 2,245,884 48,668 1,097,646 14,459 338,654 14,921 251,890 15,752 823,841 83,594 S69,704 6,276 555,821 4,129 158,578 4,558 212,046 8,312 211,384 14,761 557,792 tal accounts)— total......................... 5,340,348 29,865,122 11,128,456 4,805,899 4,119,090 5,196,797 6,580,321 9,233,838 2,373,259 3,137,899 3,566,290 Deposits.................................................... 5,309,452 29,343,569 11,077,408 4,782,837 4,094,956 5,178,902 6,564,646 9,200,545 2,365,421 3,131,222 3,556,501 9,789 51,048 23,062 24,134 17,895 15,675 33,293 7,838 6,677 521,553 30,896 9,539,688 9,481,654 58,034 469,702 Private— book value .............................. Examiners’ deductions—net................... Net sound capital—total........................ R .F .C . — retirable value ........................ Private— net sound capital ................... 15,690 454,012 Adjusted liabilities (exclusive of capi 484 1,677 1,012 977 1,417 1,420 1,392 1,057 1,369 For banks included a n d explanation of terms, see pages 63-65. For States included in FDIC districts, see page vi. Reports: 1942, p. 88; 1941, pp. 136, 148, and 150; 1940, pp. 164, 176, and 178; 1939, pp. 154, 166, and 168. Back figures— See the following Annual N o te: 1,073 855 4,055 572,553 474 CORPORATION 907,507 1,957 905,550 INSURANCE 2,167,296 8,945 2,158,351 5,513 Examiners' deductions........................... Appraised value....................................... 1,182,097 Substandard........................................... 50,844 Not criticized ......................................... 1,181,758 Examiners* deductions—net................... Appraised value....................................... Substandard ........................................... Not criticized ......................................... 2,313,285 3,112,976 1,507,887 1,508,416 1,717,703 1,869,416 2,515,444 5,764,888 14,012 5,750,876 Loans— book value....................................... 1,187,610 Fixed and m iscellaneous assets— book value.......................................................... 727,981 1,283,007 1,428,848 6,688,364 2,643,529 2,108,628 2,716,568 3,993,717 5,667,513 1,285,085 1,441,001 1,619,653 -319 -690 -746 -749 -292 56 -843 3,721 171 6,684,643 2,643,358 2,108,572 2,716,887 3,994,407 5,668,259 1,285,928 1,441,750 1,619,945 DEPOSIT T otal securities— book value.................. 3,207,795 19,483,169 FEDERAL T otal assets— book value.......................... 5,810,044 32,261,049 12,291,034 5,161,472 4,387,825 5,537,509 6,984,185 9,795,979 2,535,668 3,353,919 3,786,781 10,116,273 T a b le 114. ASSET AND NET SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT (Amounts per $100 of book value) Federal Deposit Insurance Corporation District— Total assets— book value.................... Examiners' deductions—net............... Appraised value................................... Substandard ....................................... N ot criticized .................................... $100.00 .15 99.85 $100.00 .11 99.89 $100.00 $100.00 $ 100.00 $ 100.00 $ 100.00 .13 99.87 .04 99.96 .03 99.97 .01 99.99 .97 98.98 1.18 98.78 1.26 98.71 .67 99.82 $ 100.00 .00 100.00 1.80 98.59 Cash and due from banks................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Securities—book value........................ Examiners’ deductions—net.............. Appraised value................................... Substandard ...................................... Not criticized ..................................... 100.00 100.00 .03 99.97 100.00 100.00 -.02 ,9U 99.03 1.60 98.8b .75 99.2 b 100.00 .00 100.00 100.00 .99 98.97 .06 99.94 100.00 .01 99.99 100.00 -.01 100.01 .87 99.65 Loans—book value............................... Examiners’ deductions....................... Appraised value................................... Substandard ..................................... . Not criticized ......................... ........... 100.00 100.00 100.00 .24 99.76 .41 99.59 100.02 .52 99.b9 99.5 b 1.08 98.88 100.00 100.00 100.00 100.00 100.00 -.07 100.07 100.00 -.02 .b2 99.59 100.00 -.05 100.05 .26 99.81 .18 99.87 100.00 .02 99.98 .82 99.70 .27 99.71 100.02 1.25 98.76 100.00 .22 99.78 100.00 100.00 .16 99.84 100.00 .08 99.92 100.00 .06 99.94 100.00 .10 99.90 2.87 97.1*1 2.90 96.88 1.82 98.12 1.82 98.08 100.00 .13 99.87 2.5 b 97.80 2.88 97.59 100.00 .15 99.85 100.00 99.78 2.01 97.8b 1.23 98.6b 8.59 96.82 100.00 .32 99.68 100.00 .44 99.56 100.00 .42 99.58 100.00 .40 99.60 100.00 -.17 100.17 100.00 .13 99.87 100.00 100.00 100.00 5.01 9b.56 .2 2 2.55 97.21 100.00 1.56 98.44 100.00 1.65 98.35 100.00 15.87 88.07 9.5b 88.81 26.00 72.88 8.6b 91 .Ob 11.bl 88.15 12.99 86.59 9.27 90.83 7.1b 98.08 2.7b 97.18 1.7b 100.11 5.28 9b.82 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2.85 97.15 1.87 98.13 1.60 98.40 8.78 9b.85 U.79 98.61 7.95 h.17 95.83 1.41 98.59 U.19 9b.b 0 b-05 95.95 5.55 9b.b5 b.b7 95.58 .09 99.91 8.29 91.71 1.12 98.88 2.58 97.b7 -1.85 101.85 2.07 97.98 .45 99.55 8.77 96.28 .43 99.57 100.00 2.56 97.bb .72 99.28 .80 99.20 .51 99.49 b-07 95.21 .19 99.81 .03 99.97 -.16 100.16 5.55 98.65 b.62 9b.87 8.82 91.b9 -.18 100.18 1.12 98.85 .40 99.60 .70 99.30 2.5 b 97.62 2.11 98.07 8.77 95.88 2.56 96.7b 5.74 6 .1 1 6.42 6.88 6.46 6.92 5.80 6.18 5.66 6.04 1,057 1,369 855 474 8 .6 8 7.33 8.05 9.34 10.35 6.84 7.38 6.08 6.52 6.13 6.55 5.77 6.14 Number of banks................................... . 484 1,073 1,677 1,012 977 1,417 1,420 1,392 N ote: For banks included and explanation of terms, see pages 63-65. For States included in FDIC districts, see page vi. Back figures— See the following Annual Reports: 1942, p. 89; 1941, pp. 138, 152, and 154; 1940, pp. 166, 180, and 182; 1939,fpp. 156, 170, and 172. BANKS 8.8 b 96.66 1.12 98.88 .04 99.96 .b5 99.56 b.2b 95.80 5.29 9b.SO $100.00 1.0 b 98.96 Net sound capital per $100 of— Appraised value of assets................... Deposits................................................ $100.00 .02 99.98 INSURED Capital accounts—book value.......... R .F .C .— book value .......................... Private— book value .......................... Examiners' deductions—net.............. Net sound capital— total.................... R .F .C .— retirable value .................... Private— net sound capital ............... .46 99.54 -.01 100.01 .60 9 94 0 -.01 100.01 OF Fixed and miscellaneous assets—book value................................................. Examiners’ deductions—net............... Appraised value................................... Substandard ...................................... Not criticized .................................... .04 99.96 2.U9 97.88 -.01 100.01 EXAMINATIONS 1.77 98.08 $ 100.00 $ 100.00 12 OF .05 99.95 11 ANALYSIS 10 00 CD T a b le 115. A n a l y s i s OP SECURITIES HELD BY INSURED COMMERCIAL BAN KS EXAMINED IN 1942 AND 1943 BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS CD O Banks with deposits of— All banks $250,000 or less $250,000 to $500,000 $500,000 to $1,000,000 $1,000,000 to $2,000,000 $2,000,000 to $5,000,000 $5,000,000 $10,000,000 More than to to $10,000,000 $50,000,000 $50,000,000 A m ounts 1943 (thousands of dollars) 1,797,490 3,355,997 2,779,310 6,922,206 34,074,624 196,139 408 195,731 415,954 1,062 414,892 786,256 1,868 784,388 555,766 1,558 554,208 988,185 2,049 986,136 3,060,922 7,363 3,053,559 462,154 5,578,748 731 4,632 4,385 42,235 14,336 181,395 27,066 387,826 49,896 734,492 37,230 516,978 61,515 924,621 266,995 2,786,564 26,799,729 39,547 184,008 487,902 842,422 1,550,405 1,371,164 3,227,882 19,096,399 6,682,798 30,847 6,651,951 19,046 99 18,947 97,052 449 96,603 283,095 1,378 281,717 499,172 3,547 495,625 795,629 5,108 790,521 576,034 4,495 571,539 912,934 5,425 907,509 3,499,836 10,346 3,489,490 617,898 6,034,558 2,695 16,252 10,038 86,565 25,464 256,253 44,698 450,927 72,217 718,304 51,772 519,767 77,740 829,769 332,769 3,156,721 U .S. G overnm ent o b ligation s. $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 Other securities— book v a lu e .. $100.00 100.00 .46 99.54 $100.00 100.00 .24 99.76 100.00 .26 99.74 100.00 .21 99.79 100.00 .25 99.75 100.00 .24 99.76 100.00 .28 99.72 100.00 .21 99.79 100.00 .24 99.76 13.57 85.97 9.38 90.36 7.31 92.48 6.51 93.24 6.35 93.41 6.70 93.02 6.22 93.57 8.72 91.04 100.00 100.00 .59 99.41 100.00 .29 99.71 Other securities— book va lu e. Examiners’ deductions*............ Appraised value........................ Substandard........................... Not criticized ......................... A m ounts 1942 (thousands of dollars) U .S . Governm ent obligations— book value1 ........... Other securities— book value. Examiners' deductions4............ Appraised value........................ Substandard ........................... Not criticized ......................... Per $100 of book value 1943 Examiners’ deductions.............. Appraised value.......................... Substandard ............................. Not criticized ............................ 7.6S 92.13 Per $100 of book value 1942 100.00 U .S. Governm ent ob ligation s. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Other securities— book valu e. . 100.00 .46 99.54 100.00 .52 99.48 100.00 .46 99.54 100.00 .49 99.51 100.00 .71 99.29 100.00 .64 99.36 100.00 .78 99.22 9.24 90.30 14.15 85.33 10.34 89.20 8.99 90.52 8.96 90.33 9.08 90.28 8.99 90.23 8.52 90.89 9.51 90.20 13,207 13,303 543 1,425 1,899 2,697 3,300 3,408 3,208 2,600 2,501 1,857 851 645 682 492 223 179 Examiners’ deductions®.............. Appraised value6........................ Substandard ............................. Not criticized ............................ Number of banks 1943. Number of banks 1942. i Appraised value for all banks was $6,429,000 in excess of book value due to the excess of redemption value of U. S. Savings bonds not shown on the books over examiners’ deducUoiis^unam^rtizedoP^emjuma^on^U. U. S. Government obligations refeired to in footnote 1. 8 For all ’ ’ J ^ ' ‘ TT ° ° obligations ln TaMe9 107. 1M due to the difference between book and appraised value of * Includes examiners aeuucuous ui uuauiunwcu uicmiuiuo ^ ■ *-'• —------ —------- - - r -- - -— ,------» t *7 ■ • _ ,,__,___ , ander total securities for all banks in Tables 107-114 of the Annual Report for 1942 due to redemption value of U. S. Savings bonds not shown on the books. http://fraser.stlouisfed.org/ * Ratios are not significantly affected by inclusion of examiners* deductions of unamortized premiums on U . S. Government obligations. Federal Reserve Bank of St. Louis CORPORATION 873,095 46,740 120 46,620 INSURANCE 237,405 5,388 25 5,363 DEPOSIT 27,083 6,055,350 14,453 6,040,897 FEDERAL 50,067,210 U . S. Governm ent obligations— book value1 ............ T a b le 116. ANALYSIS OP SECURITIES HELD BY INSURED COMMERCIAL BA N K S EXAMINED IN 1942 AND 1943 BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO Banks with net sound capital per All banks $0 . 0 1 to $4.99 $5.00 to $9.99 $1 0 . 0 0 to $14.99 $100 $15.00 to $19.99 of appraised value of assets of— $2 0 . 0 0 to $24.99 $25.00 to $29.99 $30.00 to $34.99 $35.00 or more 50,067,210 5,205,414 37,496,978 5,977,168 855,163 249,502 241,789 20,772 20,424 Other securities— book value........................................... 6,055,350 14,453 6,040,897 U62,15U 5,578,7US 455,009 1,059 453,950 10,870 UU3,080 4,097,631 5,710 4,091,921 282,251 3,809,670 1,129,505 6,391 1,123,114 111 M U 1,011,700 228,333 758 227,575 30,607 196,968 72,949 303 72,646 7,916 6U.780 53,901 132 53,769 1U,971 38,798 12,351 97 12,254 1,702 10,552 5,671 5,668 t,U23 St2U5 U .S. G overnm ent obligations— book value*............. 26,799,729 732,157 18,386,969 6,518,339 620,031 266,290 240,759 32,109 3,075 O ther securities— book value........................................... Examiners’ deductions4 ....................................................... Appraised value.................................................................... 6,682,798 30,847 6,651,951 617,393 6,08 U,558 91,644 777 90,867 U,632 86,235 4,284,060 10,635 4,273,425 329,117 S,9UU,308 1,754,041 14,104 1,739,937 191,577 1,5U8,360 355,508 3,739 351,769 55,999 295,770 110,959 824 110,135 13,292 96,8 US 62,396 415 61,981 16,995 UU,986 18,284 346 17,938 2,95U 1U,98U 5,906 7 5,899 2,827 3,072 U .S. Governm ent obligations........................................ $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 .0 0 $1 0 0 . 0 0 O ther securities— book value........................................... Examiners' deductions........................................................ Appraised value.................................................................... Substandard .................................................................. Not criticized ................................................................ 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .23 99.77 2.39 97.38 1 0 0 .0 0 1 0 0 .0 0 .24 99.76 7.63 92.13 .14 99.86 6.89 92.97 .57 99.43 9.86 89.57 1 0 0 .0 0 .33 99.67 Appraised value.................................................................... Substandard.................................................................. Not criticized ................................................................ 8 OP U .S . Governm ent obligations— book value1 ............. ANALYSIS A m ounts 1943 (thousands of dollars) A m ounts 1942 (thousands of dollars) .79 99.21 13.79 85.U2 .05 99.95 U2.7U 57.21 Per $100 of book value 1942 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .46 99.54 9.2U 90.30 .85 99.15 5.05 9U.10 .25 99.75 7.68 92.07 .80 99.20 10.92 88.28 1.05 98.95 15.75 83.20 .74 99.26 11.98 87.28 .67 99.33 27.2U 72.09 1.89 98.11 16.16 81.95 1 0 0 .0 0 .1 2 13,207 13,303 367 64 7,226 4,315 4,206 1,037 2,058 266 577 63 191 15 60 Not criticized ................................................................ Number of banks 1943................................................................ 6 ,0 0 2 99.88 U7.87 52.01 BANKS U .S . Governm ent obligations........................................ Other securities— book value........................................... Examiners’ deductions5 ....................................................... INSURED 86.27 .24 99.76 27.77 71.99 OF is.uo .42 99.58 10.85 88.7S EXAMINATIONS Not criticized ................................................................ Per $100 of book value 1943 27 36 1 Appraised value for all banks was $6,429,000 in excess of book value due to the excess of redemption value of U . S. Savings bonds not shown on the books over examiners' deductions of unamortized premiums on U. S. Government obligations purchased above par. * Exceeds, by $6,429,000, “ examiners’ deductions— net” under total securities for all banks in Tables 107-114 due to the difference between book and appraised value of U . S. Government obligations referred to in footnote 1. 8 For all banks redemption value of U. S. Savings bonds not shown on the books was $8,126,000. Examiners’ deductions of unamortized premiums on U . S. Government obligations purchased above par were not reported separately and are included in “ examiners’ deductions” from book value of other securities. 4 Includes examiners’ deductions of unamortized premiums on U. S. Government obligations purchased above par. Exceeds, by $8,126,000, “ examiners’ deductions— net” under total securities for all banks in Tables 107-114 of the Annual Report for 1942 due to redemption value of U. S. Savings bonds not shown on the books. 8 Ratios are not significantly affected by inclusion of examiners’ deductions of unamortized premiums on U. S. Government obligations. T a b le 117. ANALYSIS OP SECURITIES HELD BY INSURED COMMERCIAL BAN KS EXAMINED IN 1942 AND 1943 BANKS GROUPED ACCORDING TO FIXED AND SUBSTANDARD ASSETS RATIO CD to Banks with fixed and substandard assets per $100 of appraised value of assets of— All banks $0.00 $0.01 to $4.99 $5.00 to $9.99 $10.00 to $14.99 $15.00 to $19.99 $20.00 to $24.99 $25.00 to $29.99 $30.00 or more Amounts 1943 (thousands of dollars) 3,627,129 807,117 3,973 803,144 576,772 173,691 886 172,805 96,983 37,656 433 37,223 34,947 15,342 41 15,301 4-62,151* 5,578,71*3 2,528 65,762 298,102 k, 63k,811 9,673 3,418 252 3,166 13,716 4,941,757 8,844 4,932,913 103,012 700,132 36,95k 135,851 ll,lk 6 26,077 k,25k ll,0 k 7 1,130 2,036 5,028 3,027 U.S. Government obligations— book value1............ 26,799,729 50,840 22,296,507 3,283,143 830,354 266,316 38,066 Other securities—book value........................................ Examiners' deductions4................................................... Appraised value............................................................... Substandard .................................................................. Not criticized ................................................................. 6,682,798 30,847 6,651,951 7,159 1 7,158 4,662,545 11,128 4,651,417 1,379,899 9,523 1,370,376 423,823 5,689 418,134 39,378 1,140 38,238 16,524 13,664 447 13,217 17,979 13,591 545 13,046 617,393 6,03k,558 7,158 291,677 k,359,7k0 142,739 2,374 140,365 lk9,375 1 ,221,001 93,136 32 k, 998 58,581 81,78k 12,032 26,206 5,k78 7,739 7,11k 5,932 U.S. Government obligations...................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 100.00 .24 99.76 100.00 .00 100.00 100.00 .18 99.82 100.00 .49 99.51 100.00 .51 99.49 100.00 1.15 98.85 100.00 .27 99.73 $100.00 100.00 7.37 92.63 $100.00 Other securities—book value........................................ Examiners’ deductions.................................................... Appraised value............................................................... Substandard.................................................................. Not criticized ................................................................. 7.63 92.13 3.70 96.30 6.03 93.79 12.76 86.75 21.28 78.21 29.60 69.25 27.72 72.01 33.09 59.5k 62.26 S7.k6 8,078 23 8,055 Amounts 1942 (thousands of dollars) Per $100 of book value 1943 100.00 .28 99.72 Per $100 of book value 1942 U.S. Government obligations...................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Other securities—book value........................................ Examiners’ deductions5................................................... Appraised value8.............................................................. Substandard............................................................ . ................................................................. 100.00 .46 99.54 100.00 .01 99.99 100.00 .24 99.76 100.00 .69 99.31 100.00 1.34 98.66 100.00 1.66 98.34 100.00 2.90 97.10 100.00 3.27 96.73 100.00 4.01 95.99 9.2 k 90.30 99.99 6.25 93.51 10.83 88.k8 k l.0 k 57.30 30.55 66.55 k0.09 56.6k 52.3k k3.65 Number of banks 1943........................................................... Number of banks 1942........................................................... 13,207 13,303 211 59 10,511 8,226 1,939 3,516 95 293 37 118 12 32 14 34 21.98 76.68 Not criticized 388 1,025 CORPORATION 44,604,516 68,291 1 68,290 INSURANCE 1,103,474 6,055,350 14,453 6,040,897 DEPOSIT 50,067,210 FEDERAL U.S. Government obligations— book value1............ Other securities—book value........................................ Examiners’ deductions2................................................... Appraised value............................................................... Substandard .................................................................. Not criticized ................................................................. 1 Appraised value for all banks was $6,429,000 in excess of book value due to the excess of redemption value of U. S. Savings bonds not shown on the books over examiners' deductions of unamortized premiums on U. S. Government obligations purchased above par. s Exceeds, by $6,429,000, “examiners' deductions—net" under total securities for all banks in Tables 107-114 due to the difference between book and appraised value of TJ. S. Government obligations referred to in footnote 1. * For all banks redemption value of U. S. Savings bonds not shown on the books was $8,126,000. Examiners' deductions of unamortized premiums on U. S. Government obligations purchased above par were not reported separately and are included in “examiners’ deductions” from book value of other securities. * Includes examiners’ deductions of unamortized premiums on U. S. Government obligations purchased above par. Exceeds, by $8,126,000, “examiners* deductions—net" under total securities for all banks in Tables 107-114 of the Annual Report for 1942 due to redemption value of U. S. Savings bonds not shown on the books. http://fraser.stlouisfed.org/ * Ratios are not significantly affected by inclusion of examiners’ deductions of unamortized premiums on U. S. Government obligations. Federal Reserve Bank of St. Louis T a b le 118. ANALYSIS OF SECURITIES HELD BY INSURED COMMERCIAL BANKS EXAMINED IN 1942 AND 1943 BANKS GROUPED ACCORDING TO FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT Federal Deposit Insurance Corporation District— 1 2 3 4 5 6 7 8 9 10 11 12 OF U .S. Gov’ t, obligations— book value1 .. 2,950,835 17,909,392 5,622,222 2,397,030 1,802,314 2,382,124 3,498,937 4,991,161 1,170,728 1,256,403 1,462,565 4,623,499 256,960 1,573,777 1,066,142 246,499 306,314 334,444 494,780 676,352 157,088 644,039 114,357 184,598 1,295 5,826 4,082 498 429 398 291 86 1,026 440 43 39 255,665 1,567,951 1,062,060 246,001 305,885 334,046 494,489 643,013 184,559 157,002 675,912 114,314 31,788 183,912 19,798 21,872 107,1 k2 33,935 Ik ,683 23,6k7 3,335 2,66k 5,21k lk,16k 223,877 1,38k,039 226,203 28k,013 95k,918 300,111 k79,806 652,265 181,895 151,788 628,8k9 110,979 Other securities— book value................. Examiners’ deductions2 .............................. Appraised value........................................... Substandard.............................................. Not criticized............................................. ANALYSIS Am ounts 1943 (thousands of dollars) A m ounts 1942 (thousands of dollars) 659,410 1,033,462 1,716,768 2,570,285 477,792 465,358 561,736 2,349,327 237,017 1,084 235,933 25,k88 210,kk5 292,889 721 292,168 19,910 272,258 334,471 459 334,012 60,9k5 273,067 486,051 792 485,259 22,219 k63,0k0 652,994 515 652,479 26,623 625,856 118,348 123 118,225 k,872 113,353 179,639 89 179,550 3,76k 175,786 166,337 170 166,167 7,621 158,5k6 566,445 1,156 565,289 25,065 5k0,22k 293,715 3,613 290,102 US,337 2U6,765 2,081,309 1,273,583 12,574 9,551 2,068,735 1,264,032 21k,158 163,391 1,85 k,577 1,100,6kl Per $100 of book value 1943 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 $1 0 0 . 0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 .37 99.63 11.69 87.9k .38 99.62 10.05 89.57 1 0 0 .0 0 .1 2 1 0 0 .0 0 .50 99.50 12.37 87.13 1 0 0 .0 0 .2 0 1 0 0 .0 0 1 0 0 .0 0 .0 2 1 0 0 .0 0 1 0 0 .0 0 .05 99.95 3.32 96.63 .16 99.84 2.20 97.6k 99.80 8.03 91.77 .14 99.86 7.1k 92.72 99.88 10.15 89.73 .06 99.94 2.97 96.97 .07 99.93 3.50 96.k3 .04 99.96 2.92 97.0k 99.98 l.kk 98.5 k Per $100 of book value 1942 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 1.23 98.77 1U.75 8U.02 .60 99.40 10.29 89.11 .75 99.25 12.83 86.k2 1 0 0 .0 0 .46 99.54 10.75 88.79 .25 99.75 6.80 92.95 1 0 0 .0 0 .14 99.86 18.22 81.6 k .16 99.84 k.57 95.27 .08 99.92 k-08 95.8 k 1 0 0 .0 0 .1 0 1 0 0 .0 0 .1 0 1 0 0 .0 0 .2 0 Number of banks 1943....................................... Number of banks 1942....................................... 484 481 1,073 1,093 1,677 1,705 1 ,0 1 2 1 ,0 1 2 977 970 1,417 1,437 1,420 1,421 1,392 1,401 99.90 k.12 95.78 .05 99.95 2.10 97.85 1,057 1,056 1,369 1,383 99.90 k.58 95.32 855 836 99.80 k-k2 95.38 474 508 1 Appraised value for all banks was $6,429,000 in excess of book value due to the excess of redemption value of U. S. Savings bonds not shown on the books over examiners’ deductions of unamortized premiums on U . S. Government obligations purchased above par. 2 Exceeds, by $6,429,000, “ examiners’ deductions— net” under total securities for all banks in Tables 107-114 due to the difference between book and appraised value of U. S. Government obligations referred to in footnote 1. 3 For all banks redemption value of U. S. Savings bonds not shown on the books was $8,126,000. Examiners' deductions of unamortized premiums on U. S. Government obligations purchased above par were not reported separately and are included in “ examiners’ deductions” from book value of other securities. 4 Includes examiners’ deductions of unamortized premiums on U. S. Government obligations purchased above par. Exceeds, by $8,126,000, “ examiners' deductions— net” under total securities for all banks in Tables 107-114 of the Annual Report for 1942 due to redemption value of U . S. Savings bonds not shown on the books. 6 Ratios are not significantly affected by inclusion of examiners’ deductions of unamortized premiums on U . S. Government obligations. BANKS U .S. Governm ent ob ligation s............... Other securities— book value................. Examiners’ deductions5 .............................. Appraised value5 .......................................... Substandard.............................................. Not criticized............................................. INSURED $1 0 0 . 0 0 OF U .S. Governm ent ob ligation s............... Other securities— book value................. Examiners’ deductions.............................. Appraised value........................................... Substandard.............................................. Not criticized............................................. EXAMINATIONS U .S. Gov’t, obligations— book value3 . . 1,395,798 11,317,807 3,091,626 1,160,360 Other securities— book value................. Examiners’ deductions4 .............................. Appraised value........................................... Substandard.............................................. Not criticized............................................. T a b le 119. DISTRIBUTION OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 ACCORDING TO N E T SOUND CAPITAL RATIO BANKS GROUPED BY FIXED AND SUBSTANDARD ASSETS RATIO, RATE OF NET EARNINGS, AND AMOUNT OF DEPOSITS Banks wi!Lh net sound capital per All banks of appraised value of assets of— $35,00 or more $30,00 to $34.99 $25.00 to $29.99 $2 0 * 0 0 to $24.99 $15.00 to $19.99 $1 0 = 0 0 to $14.99 $5,00 to $9.99 $0 . 0 1 to $4.99 $100 CD 4,206 1,037 266 63 15 27 211 21 330 58 3,076 858 162 615 274 98 4 139 85 33 18 6 4 1 10 8 3 115 6,302 681 91 12 10,511 1,939 388 4 36 13 14 1 1 19 9 4 5 16 123 1 8 7 69 6 1 1 37 4 4 $0.49............................................................................ $0.99............................................................................ $1.49............................................................................ $1.99............................................................................ 2,780 6,400 2,806 742 185 152 17 1,745 3,728 1,300 277 674 1,981 1,072 297 131 433 307 109 35 82 81 40 $2.00 to $2 49 ....................................................................... $2.50 to $2.99............................................................................ $3 00 or more .............................................................. XTnf qvqiIqIiIp 203 65 43 29 95 25 14 5 28 8 5 11 8 9 2 2 1 62 15 9 14 5 4 543 1,899 3,300 3,208 4 7 23 73 66 214 946 1,140 976 159 255 245 192 56 72 51 46 24 600 1,820 1,915 2,501 851 682 223 99 46 73 42 1,623 563 482 157 619 186 106 19 124 45 14 3 26 9 5 9 2 1 1 Banks with fixed and substandard assets per $100 of appraised value of assets of— ............. $0.01 to $4.99............................................................................ $5.00 to $9.99............................................................................ $10.00 to $14.99........................................................................ «0 00 00 00 00 00 to to to or $19 99 $24.99 $29 99 more ............. .............................. 12 ............. Banks with net current operating earnings per $ 1 0 0 of total assets of— $—0 50 or less $-0 01 to $-0 49 ... to to to to Banks with deposits of— $250,000 to $500,000............................................................... $500,000 to $1,000,000............................................................ $1 ,0 0 0 , 0 0 0 to $2 ,0 0 0 , 0 0 0 ........................................................ $2 000 000 to $5 000 000 non non <iiin ooo ooo $10 000 000 to $50 000,000 Mnro <6 ^ 0 OOO 0 0 0 ............. .................................. 2 1 2 1 N o t e : For banks included and explanation of terms, see pages 63-65. Back figures— See the following Annual Reports: 1942, p. 90; 1941, p. 156; 1940, p. 184; 1939, p . 174. 22 6 2 24 10 4 2 10 2 2 3 1 1 2 1 1 1 3 1 6 19 19 12 11 13 3 1 2 3 3 4 4 6 1 1 1 1 4 4 4 4 16 4 4 2 1 1 9 1 1 1 CORPORATION $0.00 $0.50 $1.00 $1.50 95 37 INSURANCE $15 $20 $25 $30 11 DEPOSIT 7,226 FEDERAL 367 13,207 T a b le 120. DISTRIBUTION OF DEPOSITS OF INSURED COMMERCIAL BANKS EXAMINED IN 1943 BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO AND BY FIXED AND SUBSTANDARD ASSETS RATIO, RATE OF NET EARNINGS, AND AMOUNT OF DEPOSITS (Amounts in thousands of dollars) Banks with net sound capital per $100 of appraised value of assets of- A ll b anks................................................................................... $0 . 0 1 to $4.99 $5.00 to $9.99 $1 0 . 0 0 to $14.99 $15.00 to $19.99 $20.00 to $24.99 $25.00 to $29.99 $30.00 to $34.99 $35.00 or more 9,495,167 69,880,266 12,004,996 1,748,555 474,185 413,925 33,263 36,756 2,195,554 82,521,505 7,706,635 1,229,557 555,168 1,760,026 157,531 12,664 1,556,549 63,650,037 4,140,344 421,880 72,151 8,763,161 2,665,654 353,731 9,237 719,350 586,812 321,637 2,436 249,815 108,016 81,499 373,027 18,864 9,974 1,950 2,865 25,928 13 4,139 26,549 2,244 258,604 96,968 28,560 49,730 49,363 35,257 12,593 14,243 124,934 19,597 4,464 1,304 45,057 40,320 1,517 24,625 27,671 1,175 3,311 262 9,706 507 1,847 1,873 4,828 4,950 13,376 289,190 48,617 6,424 193,151 5,093 20,050 1,040 25,805 133 1,166 $0.49........................................................................ $0.99........................................................................ $1.49........................................................................ $1.99........................................................................ 35,458,109 49,931,536 6,798,056 1,202,909 7,276,487 2,121,633 39,406 4,734 25,972,462 39,964,314 3,036,076 521,306 1,887,084 6,922,568 2,711,196 338,467 258,504 811,764 482,598 132,252 34,572 92,219 150,306 187,188 2,531 17,297 374,771 13,436 647 843 2,087 2,474 25,822 898 1,616 3,052 $2.00 to $2.49....................................................................... $2.50 to $2.99........................................................................ $3.00 or more........................................................................ Not available......................................................................... 209,688 72,652 56,789 54,808 2,538 85,846 16,186 15,018 3,488 17,836 9,232 8,311 1,213 2,592 4,639 468 902 4,844 1,046 1,066 96,782 11,552 30,060 48,139 573 25,838 400 1,215 1,621 2,532 Banks with deposits of— $250,000 or less.................................................................... $250,000 to $500,000........................................................... $500,000 to $1,000,000....................................................... $ 1 , 0 0 0 , 0 0 0 to $2 , 0 0 0 , 0 0 0 ................................................... 103,272 719,911 2,401,771 4,538,191 714 2,556 17,679 104,894 13,796 241,150 1,346,821 2,704,095 43,255 352,463 810,575 1,388,872 29,906 90,778 175,668 267,653 9,595 25,947 36,297 63,504 3,664 4,064 9,264 4,526 387 1,400 2,612 3,026 1,955 1,553 2,855 1,621 $2,000,000 to $5,000,000................................................... $5,000,000 to $10,000,000................................................. $10,000,000 to $50,000,000............................................... More than $50,000,000....................................................... 7,715,652 5,827,507 13,517,540 59,263,269 315,239 338,479 1,592,828 7,122,778 5,033,936 3,852,414 9,717,700 46,970,354 1,893,606 1,258,555 1,814,686 4,442,984 369,061 299,425 252,317 263,747 73,165 65,027 88,451 112,199 27,593 13,607 25,838 25,720 to to to or $19.99................................................................... $24.99................................................................... $29.99................................................................... more...................................................................... to to to to For banks included and explanation of terms, see pages 63-65. Back figures— See the following Annual Reports: 1942, p. 91; 1941, p. 157; 1940, p. 185; 1939, p. 175. 351,207 BANKS N o te: 401 INSURED $0.00 $0.50 $1.00 $1.50 3,699 OF Banks with net current operating earnings per $ 1 0 0 of total assets of— $-0.50 or less......................................................................... $-0.01 to $ -0 .4 9 ................................................................... 112 647 EXAMINATIONS $15.00 $20.00 $25.00 $30.00 OF 94,087,113 Banks with fixed and substandard assets per $ 1 0 0 of appraised value of assets of— $0 . 0 0 ........................................................................................ $0.01 to $4.99........................................................................ $5.00 to $9.99........................................................................ $10,00 to $14.99................................................................... ANALYSIS All banks 3,052 Ol CO o* EARNINGS OF INSURED BANKS EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BAN K S, 1 9 4 3 FEDERAL Table 121. BY CLASS OF BANK (Amounts in thousands of dollars) State banks submitting reports to FDIC Banks not submitting reports to FDIC Members F. R. System On par list2 Other1 State 1,959,481 861,412 692,305 13,513 95,332 1,057,459 501,999 364,388 6,538 53,282 591,623 263,413 187,248 4,307 23,073 1,248 199 627 67,533 104,710 124,676 29,425 34,295 67,532 15,685 62,027 35,870 1,156,110 225,142 356,958 611,883 114,179 193,173 Operating less than full year4 273,479 101,117 139,191 1,954,131 860,370 691,544 13,504 95,134 5,350 1,042 761 9 198 321 Other 243,444 78,391 112,335 2,302 14,886 65.707 17,410 27.707 358 3,909 173 8,510 59 18,819 13,740 187 2,396 32,850 67,309 102,132 124,138 224 2,578 538 341,824 60,522 118,792 896 149 294 159,839 36,441 37,725 41,668 13,851 6,974 70,832 9,467 19,792 1,152,287 224,233 355,857 3,823 909 11,775 163,900 502 5,865 83,734 169 2,836 39,736 184 9 157 2,290 33,520 138 775 6,753 1,704 (B) 11,738 163,639 500 37 261 40,008 357,825 9,754 21 266 12,194 3,046 36,823 39,942 356,378 66 1 1 0 ,0 0 0 5,420 44,305 1 ,1 1 0 Other current operating expenses......................................... 23,703 191,060 1,447 Net current operating earnings, before taxes.............. 803,371 445,576 249,799 352 83,605 24,039 202,647 801,844 1,527 Current operating earnings— to ta l.................................... Interest and dividends on securities.................................... Interest and discount on loans.............................................. Service charges and other fees on bank’s loans................ Service charges on deposit accounts................................ Other service charges, commissions, fees, and collection Trust department •••••••••••••••••••••• Other current operating earnings......................................... Current operating expenses, excluding taxes— t o t a l .. Salaries— officers....................................................................... Salaries and wages— employees........................................ Fees paid to directors and members of executive, dis count, and other committees......................................... Interest on time deposits (including savings deposits). . Interest and discount on borrowed money........................ Recurring depreciation on banking house, furniture and 8 182 8 ,2 0 1 11 1 ,1 0 1 2 CORPORATION National Operating throughout the year INSURANCE Total Insured mutual savings banks3 DEPOSIT All insured commercial banks Insured commercial banks Taxes— to ta l....................................................................... Other than on net income........................................... On net income................................................................. 227,780 (8) (8) 131,194 68,512 (6) (8) (8) (8) 149 (•) (6) 21,658 6,267 17,360 12,592 9,066 3,041 3,226 17,015 345 227,224 (8) (8) 556 (8) (8) 575,591 314,382 181,287 203 61,947 17,772 185,287 574,620 971 Recoveries and profits— to ta l.................................... Recoveries on securities............................................... Profits on securities sold or redeemed...................... Recoveries on loans....................................................... All other........................................................................... 353,015 186,998 91,891 103,143 85,664 72,317 59,524 54,042 52,786 20,646 124,979 63 22,167 39,738 19,676 43,398 14 14 32 3 34,654 6,321 129,160 352,534 481 9,133 7,980 10,724 6,817 1,053 1,369 2,446 1,453 40,402 31,376 11,094 46,288 91,828 103,085 85,590 72,031 63 58 74 286 Losses and charge-offs— to ta l................................... On securities.................................................................... On loans........................................................................... All other...................................................................j * ’ ’ 290,645 151,875 98,846 65,786 43,031 43,058 35,591 20,284 42,971 83 34,747 33 40 5,094 168,891 289,980 12,764 10,321 11,662 2,209 1,547 1,338 665 32,818 74,327 61,746 116.044 75,116 98,820 339 107 219 -184 116,383 75,223 99,039 10 35,123 26,133 -20 -93 1,227 -39,731 62,554 349,505 207,420 183 61,854 18,999 145,556 637,174 787 Dividends and interest on capital— to ta l....................... Dividends declared on preferred stock and interest paid on capital notes and debentures...................... Cash dividends declared on common stock............ 233,490 131,107 77,219 99 19,243 5,822 118,279 232,857 633 14,324 219,166 6,141 124,966 4,673 72,546 11 88 3,076 16,167 423 5,399 294 7117,985 14,315 218,542 9 624 N et additions to capital from profits.................... 404,471 218,398 130,201 84 42,611 13,177 27,277 404,317 154 Number of active officers, December 3 1 ................. Number of other employees, December 31............. 55,309 225,647 25,788 121,092 10,600 69,244 38 188 12,669 28,190 6,214 6,933 1,209 9,581 54,986 224,563 323 1,084 Number of banks............................................................... 13,274 5,040 1,695 7 4,185 2,347 184 13,191 83 BANKS i National banks in the possessions and State banks in the District of Columbia, not members of the Federal Reserve System ’ For explanation of banks on par list, see page 6 6 . * Includes 3 mutual savings banks, members of the Federal Reserve System. n?? r.ep?rts covering less than the full year’s operations or materially affected by mergers. Also includes 11 trust companies not engaged in deposit banking. Includes, in addition, data for national banks which reported for the first half of the year only. 6 Interest and dividends paid depositors of mutual savings banks are included as a deduction from net profits. • Income taxes published separately only for banks submitting reports to FDIC. ’ Interest and dividends paid depositors. See footnote 5. N o t e : Minus (-) indicates non-operating loss. INSURED 62,370 637,961 OF Non-operating profit..................................................... N et profits after taxes................................................... EARNINGS Net current operating earnings, after ta x e s.. . . Back figures— See the following Annual Reports: 1942, p. 92; 1941, p. 162; 1940, p. 194; 1939, p. 182; 1938, p. 214; 1937, p. 141 and p. 144; 1936, p. 165; 1935, p. 198. -3 T a b le 122. RATIOS OF EARNINGS, EXFENSES, AND DIVIDENDS OF INSURED COMMERCIAL BAN K S, 1943 FEDERAL BY CLASS OF BANK Insured commercial banks State banks submitting reports to FDIC Total Members F. R. System Other1 Interest and dividends on securities........................................ Interest and discount on loans ............................................... Other current operating earnings............................................. Other $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 43.96 35.33 69 4.87 47.47 34.46 .62 5.04 44.52 31.65 .73 3.90 15.95 50.24 .64 14.58 32.20 46.14 .95 36.97 50.90 6 .1 2 26.50 42.17 .54 5.95 3.45 5.34 6.36 2.78 3.24 6.39 2.65 10.48 6.07 13.86 4.73 3.50 3.37 7.72 20.91 .28 3.65 1 2 .0 1 59.00 71.79 .1 2 57.86 57.78 65.66 63.41 25.90 11.49 18.22 10.80 18.27 10.23 20.08 11.94 23.56 14.97 15.50 21.08 10.61 3.46 7.24 .60 8.36 .03 .55 7.92 .48 6.72 .03 .72 12.58 .94 13.77 .06 1.18 10.28 .0 2 Other current operating expenses............................................. 2.04 18.26 2.24 18.06 1.65 18.59 21.31 2.23 18.19 1.69 18.55 13.47 Net current operating earnings, before taxes................. 41.00 42.14 42.22 28.21 34.34 36.59 74.10 11.94 8.90 9.54 6.35 16.27 25.44 27.05 67.75 Current operating expenses, excluding taxes— total. . . Fees paid to directors and members of executive, discount, Interest on time deposits (including savings deposits)-----Interest and discount on borrowed money............................ Recurring depreciation on banking house, furniture and 11.62 Net current operating earnings, after taxes.................... 29.38 12.41 29.73 11.58 30.64 1 .6 8 .62 (4) .0 2 1 .1 1 CORPORATION Service charges on deposit accounts.................................. .. Other service charges, commissions, fees, and collection On par list2 State INSURANCE National Amounts per $100 of current earnings Current operating earnings— total ............................. Insured mutual savings banks3 DEPOSIT Banks not submitting reports to FDIC Amounts per $100 of total assets5 Current operating earnings— total............................................... Current operating expenses, excluding taxes— total............... Net current operating earnings, before taxes........................... Net current operating earnings, after taxes.............................. Non-operating profit........................................................................ Net profits after taxes..................................................................... 1.90 1.78 1.03 .75 1.82 1.05 .77 3.54 2.54 .78 .2 2 .2 2 .2 1 .56 .06 .62 .53 .06 .59 .56 .08 .64 .42 .58 -.0 6 .52 27.10 15.99 27.60 15.97 11.63 3.42 24.21 13.99 1.12 1 .0 0 2.71 1.78 .93 .24 .69 .0 0 .69 2 .6 8 1.70 .98 .25 .73 .05 .78 3.44 .89 2.55, .2 2 ; .33. -.5 0 1.83? Amounts per $100 of total capital accounts5 Current operating earnings— total............................................... Current operating expenses, excluding taxes— total................ Net current operating earnings, before taxes........................... 3.15 7.96 8 .2 1 1 0 .2 2 2.80 7.42 1.07 8.49 3.16 5.33 50.77 36.45 14.32 6.06 8.26 -.8 1 7.45 4.03 3.42 31.42 20.63 10.79 2.80 7.99 37.01 23.47 13.54 3.53 -.0 1 7.98 2.48 5.50 .69 10.70 3.28 7.42 6 .0 0 5.51 1.78 .29 5.73 1.78 1 .1 1 1.39 1.65 100.00 1 0 .0 1 34.67 8.98 25.69 2 .2 0 . 23.49 -5.03 18.46 615.00 3.46 8.82 3.23 5.59 .91 9.12 3.42 5.70 3.85 1.52 3.78 1.53 .1 2 .1 2 3.24 1.44 .09 .93 .89 .8 6 1.47 1.04 1.05 100.00 100.00 100.00 100.00 25.91 48.70 100.00 1 0 0 .0 0 17.75 1.53 26.65 49.47 5.91 16.59 1.38 23.64 50.89 5.65 18.19 1.63 30.03 36.38 1.91 30.00 25.60 40.37 8.62 23.20 39.11 31.87 7.96 1 .6 8 2 .2 1 1.06 41.80 8.35 39.43 4.20 100.00 100.00 100.00 100.00 75.39 17.00 92.39 .60 7.01 100.00 100.00 77.02 15.84 92.86 .67 6.47 77 6 8 14.24 91.92 .55 7.53 100.00 49.59 42.55 92.14 .89 6.97 57.19 33.75 90.94 .42 8.64 72.64 19.90 92.54 7.25 89.79 89.79 .28 9.93 13,274 5,040 1,695 7 4,185 2,347 184 .8 6 Special ratios5 Income on loans per $ 1 0 0 of loans............................................... Income on securities per $ 1 0 0 of securities................................ Income on service charges per $ 1 0 0 of demand deposits........ Interest paid per $ 1 0 0 of time and savings deposits............... Liabilities and capital— total.............................................. Number of banks.............................................................................. National banks in the possessions and State banks in the District of Columbia, not members of the Federal Reserve System. For explanation of banks on par list, see page 6 6 . Includes 3 mutual savings banks; members of the Federal Reserve System. Interest and dividends paid depositors of mutual savings banks are included as a deduction from net profits. BAsset and liability items are averages of figures reported at beginning, middle, and end of year. • Interest and dividends paid depositors. See footnote 4. N ote : Minus (-) indicates non-operating loss. 1 2 3 4 2 0 .0 0 .2 1 6 .2 2 BANKS Demand deposits.......................................................................... Time deposits................................................................................. Total deposits........................................................................ Borrowings and other liabilities............................................... Total capital accounts................................................................ 6 .1 1 INSURED Cash and due from banks.......................................................... U . S. Government securities..................................................... Other securities............................................................................. Loans and discounts.................................................................... All other assets.............................................................................. OP Assets and liabilities per $100 of total assets5 Assets— total............................................................................. 4.44 2.54 .2 2 EARRINGS Net current operating earnings, after taxes.............................. Non-operating profit........................................................................ Net profits after taxes..................................................................... Cash dividends declared................................................................. Net profits after dividends............................................................. 1 1 .1 1 o o T a b le 123. RATIOS OF EARNINGS, EXPENSES, AND DIVIDENDS OP INSURED COMMERCIAL BA N K S, 1943 BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS All banks Interest and dividends on securities.................................... Current operating expenses, excluding taxes—total. . Salaries— officers....................................................................... Net current operating earnings, before taxes............ Net current operating earnings, after taxes.............. Amounts per $100 of total assets* Current operating expenses, excluding taxes— total........... Net current operating earnings, before taxes........................ 17.11 58.12 2.48 4.13 $100.00 22.83 56.12 .90 4.96 $2 ,0 0 0 , 0 0 0 to $5,000,000 $5,000,000 to $1 0 ,0 0 0 , 0 0 0 $ 1 0 ,0 0 0 , 0 0 0 More than to $50,000,000 $50,000,000 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 41.03 35.15 .59 6.95 49.76 30.45 .76 5.26 .98 5.19 3.98 2.65 6.49 3.04 5.05 8.19 2.17 7.34 6.41 $64.37 $54.01 .6 6 10.14 .06 .26 5.59 .03 27.78 51.70 .67 5.96 31.79 48.71 .63 6.36 36.71 44.69 .62 7.55 39.41 39.18 .51 7.78 3.11 3.44 5.23 6.35 12.43 1.24 4.49 11.70 .05 3.44 9.95 3.84 7.75 .37 4.39 $58.97 11.47 18.21 $71.79 $67.38 27.58 7.26 $66.56 24.28 8.34 $65.18 20.38 10.73 $65.10 $65.59 .60 8.37 .03 1.51 8.30 .14 1.45 10.69 1.51 12.69 1.42 13.21 1.24 13.02 .95 12.51 .0 1 .0 2 .0 1 .0 1 .0 2 2.04 18.25 2.48 2.28 17.44 2.30 17.13 2.59 17.34 2.71 2 0 .0 0 2.24 18.15 18.28 2.38 19.45 18.19 32.43 6.93 .1 0 16.61 14.29 13.73 17.39 11.59 20.09 8.18 20.06 1.70 $41.03 $28.21 $32.62 $33.44 $34.82 $34.90 $34.41 $35.63 $45.99 $11.63 $ 9.40 $ 9.09 $ 8.58 $ 8.72 $ 8.94 $ 8.83 $ 9.88 $13.58 $29.40 $18.81 $23.53 $24.86 $26.10 $25.96 $25.58 $25.75 $32.41 $ 1.74 1.03 .71 $ 3.06 $ 2.60 1.75 .85 .24 .61 .15 .76 $ 2.39 1.59 .80 $ 1.94 1.25 .69 .19 .50 .0 2 .0 2 .70 .6 6 $ 2.15 1.40 .75 .19 .56 .04 .60 $ 2.06 1.35 .71 .18 .53 .1 1 $ 2.24 1.46 .78 .19 .59 .07 .55 .52 $ 1.54 .83 .71 .21 .50 .07 .57 .2 0 Net current operating earnings, after taxes.......................... $100.00 $ 1 ,0 0 0 , 0 0 0 to $2 , 0 0 0 , 0 0 0 .51 .05 .56 2 .2 0 .8 6 .28 .58 .16 .74 .2 1 .59 CORPORATION Fees paid to directors and members of executive, dis count, and other committees ............................_......... Interest on time deposits (including savings deposits) . . Interest and discount on borrowed money. . . . ............... Recurring depreciation on banking house, furniture and 44.03 35.39 .69 4.87 $500,000 to $1 , 0 0 0 , 0 0 0 INSURANCE Service charges and other fees on bank’s loans................ Service charges on deposit accounts.............................. Other service charges, commissions, fees, and collection $100.00 $250,000 to $500,000 DEPOSIT Amounts per $100 of current earnings Current operating earnings—total............................. $250,000 or less 1 FEDERAL Banks with deposits of— Am ounts per $100 of total capital accounts 1 Current operating earnings— total........................................... Current operating expenses, excluding taxes— total........... Net current operating earnings, before taxes....................... $22.33 16.03 6.30 1 0 .0 0 2.50 7.50 .92 8.42 2.67 5.75 2.56 7.44 .53 7.97 2.63 5.34 Special ratios 1 Income on loans per $100 of loans........................................... Income on securities per $100 of securities........................... Income on service charges per $100 of demand deposits. . . Interest paid per $100 of time and savings deposits........... $ 3.75 1.33 $ 7.95 1.55 .18 1.63 $ 6.94 1.46 .18 1.40 $ 6.40 1.43 $ 5.93 1.43 .2 1 1.24 .2 2 1 .1 0 Assets and liabilities per $100 of total assets1 Assets— to ta l................................................................................ Cash and due from banks...................................................... U . S. Government securities................................................. Other securities......................................................................... Loans and discounts................................................................ AH other assets.......................................................................... $1 0 0 . 0 0 24.22 52.30 5.33 16.78 1.37 $1 0 0 .0 0 41.72 29.81 3.98 23.37 1 .1 2 $1 0 0 . 0 0 36.94 35.98 4.80 21.35 .93 $1 0 0 . 0 0 33.03 40.33 6.14 19.55 .95 Liabilities and capital— to ta l............................................... Demand deposits...................................................................... Time deposits............................................................................ Total deposits................................................................... Borrowings and other liabilities........................................... Total capital accounts............................................................ $1 0 0 . 0 0 75.73 17.04 92.77 .60 6.63 $1 0 0 .0 0 70.29 15.60 85.89 .39 13.72 $1 0 0 . 0 0 70.00 19.88 89.88 .15 9.97 Number of banks2 ......................................................................... 13,191 317 1,522 Net current operating earnings, after taxes.......................... Non operating profit.................................................................... Net profits after taxes................................................................. Cash dividends declared............................................................. Net profits after dividends......................................................... .1 1 .8 6 2 .1 0 4.20 1 .2 1 $28.30 18.56 9.74 2.50 7.24 .28 7.52 2.54 4.98 $29.26 18.83 10.43 2.90 7.53 .23 7.76 2.59 5.17 $24.65 13.31 11.34 3.35 7.99 1.08 9.07 3.51 5.56 $ 5.67 1.43 .26 .97 $ 5.24 1.42 .26 $ 4.53 1.38 .8 6 .82 $ 2.84 1.29 .06 .75 $1 0 0 . 0 0 30.13 42.95 7.09 18.68 1.15 $1 0 0 . 0 0 27.51 45.81 8.13 17.21 1.34 $1 0 0 .0 0 25.78 49.60 7.47 15.60 1.55 $1 0 0 . 0 0 25.08 51.57 6.23 15.33 1.79 $1 0 0 . 0 0 22.52 54.93 4.36 16.89 1.30 $1 0 0 . 0 0 67.08 24.38 91.46 .16 8.38 $1 0 0 . 0 0 65.14 26.90 92.04 .15 7.81 $1 0 0 .0 0 63.24 29.06 92.30 .18 7.52 $1 0 0 . 0 0 62.60 29.89 92.49 .23 7.28 $1 0 0 . 0 0 68.99 24.00 92.99 .36 6.65 $1 0 0 . 0 0 81.53 11.41 92.94 .82 6.24 3,107 3,414 2,831 984 774 242 .2 0 BANKS 1 Asset and liability items are as of December 31. For ratios computed from average asset and liability items, for all insured commercial banks, see the total column in Table 122. 2 For banks excluded see footnote 4 of Table 121. INSURED $28.65 18.65 1 0 .0 0 OF $28.50 18.97 9.53 2.44 7.09 1.31 8.40 2.70 5.70 $28.73 18.73 5.41 1.73 3.68 $26.06 17.56 8.50 2.37 6.13 1.47 7.60 2.47 5.13 EARNINGS $26.33 15.53 10.80 3.06 7.74 .84 8.58 3.13 5.45 SUSPENSIONS, RECEIVERSHIPS, AND MERGERS Table 124. NUMBER AND DEPOSITS OF BANKS SUSPENDING OPERATIONS, PLACED IN RECEIVERSHIP, AND MERGED WITH THE FINANCIAL AlD of t h e § F e d e r a l D e p o sit I n s u r a n c e C o r p o r a t io n , 1934-1943 BANKS GROUPED BY CLASS, YEAR, AMOUNT OF DEPOSITS, AND STATE Deposits (in thousands of dollars) 1 Number 247 90 6 219 Placed in receiver ship Merged 244 151 154,739 113,425 41,314 395 90 22,990 26,548 105,201 22,990 26,548 63,887 41,314 311 9 26 41 53 49 48 8 3 6 7 36,937 9,852 11,412 19,722 13,172 1,952 9,005 10,820 19,242 11,969 34,985 847 592 480 1,203 27 25 24 32 19 8 6 4 10 34,997 5,958 14,705 1,710 6,274 32,558 5,600 14,626 1,379 6,274 2,439 358 79 331 28 24 7 14 7,367 17,084 17,567 5,213 13,283 11,549 2,154 3,801 6,018 109 106 57 18,898 13,774 30,275 16,554 13,774 20,394 2,344 9 48 35 24 2 2 17,116 32,658 32,658 337 22 6 309 22 Total 64 20 21 6 217 Total Placed in receiver ship Merged 495,149 106,964 388,185 93,179 179,089 222,881 19,396 26,548 61,020 73,783 152,541 161,861 1,952 12,931 27,323 33,100 59,550 1,952 8,702 11,037 14,715 10,121 4,229 16,286 18,385 49,429 157,599 142,331 29,617 18,574 12,172 32,558 5,600 14,626 1,379 6,274 125,041 136,731 14,991 17,195 5,898 6,422 16,827 20,021 5,010 13,136 11,827 1,412 3,691 8,194 35,770 49,884 75,295 16,554 13,774 14,005 19,216 36,110 61,290 51,793 239,137 32,658 51,793 206,479 Calendar year 193 193 193 193 193 4 5 6 7 8 1939. 1940. 1941. 1942. 1943. 4 1 3 1 1 Banks with deposits o f$ 1 0 0 , 0 0 0 or less...................... $100,000 to $250,000............ $250,000 to $500,000............ $500,000 to $ 1 ,000,000... $ 1 ,0 0 0 , 0 0 0 to $2 ,0 0 0 ,0 0 0 . $2 ,0 0 0 , 0 0 0 to $5 ,0 0 0 ,0 0 0 . $5,000,000 to $10,000,000. . $ 1 0 ,0 0 0 , 0 0 0 to $50,000,000. More than $50,000,000........ 128 109 51 26 10 40 25 17 ’ 9,881 17,116 86 84 35 23 22 22 23 25 25 4 20 10 CORPORATION Non insured2 Total INSURANCE National banks.................. .................... State banks members F. R. System. Banks not members F. R. System. . Non insured2 DEPOSIT Class of bank Insured Deposits (in thousands of dollars) 1 Number Insured Total All banks. Banks involving FDIC disbursement FEDERAL Banks suspending operations 286 1,081 84 8 1,514 Florida.. Georgia. Illinois.. Indiana. Iowa___ 140 1,013 4,624 5,704 4,805 140 967 4,382 3,416 4,097 Kansas.............. Kentucky......... Louisiana.......... Maryland......... Massachusetts. 944 6,445 1,697 828 552 4,639 1,654 828 Michigan. . . Minnesota.. Mississippi. Missouri. . . Montana. .. 294 640 332 7,081 213 Nebraska............ New Hampshire. New Jersey......... New York........... North Carolina. . 100 186 1,081 1 1 5 ’ ' 84 1 1 2 1,514 46 242 2,288 708 6 1 1 1 8 14 3 3 3 392 1,806 43 5 18 3 4 4 7 2 3 2 81 640 332 5,033 213 213 2,048 3 5 3 34 3 1,009 532 477 4 53,031 20,335 850 30,917 13,276 850 22,114 7,059 11 4 11 1 1 3 2 26 22 4 1,509 2,242 1,550 15 722 64 18 5 2 1 14,537 14,070 467 8 16 South Carolina. South Dakota.. Tennessee......... Texas................. Vermont........... 347 2,759 1,679 3,724 3,341 136 2,759 1,389 3,071 3,341 211 1 22 8 4 Virginia........... Washington. . . West Virginia. Wisconsin. . . . 1,025 558 * 1,649 6,618 ‘ 1,649 5,899 290 653 467 11 2 16 1 2 1 1 3 3 1 3 ’ 719 20 10 428 1,078 8 8 1,514 1,514 414 996 6,359 9,192 5,522 140 967 1,587 3,415 503 274 29 4,772 5,777 5,019 1,247 8,431 1,654 4,569 3,019 552 4,434 1,654 828 695 3,997 12,388 640 332 6,917 296 145 640 332 5,032 213 532 296 184,514 138,816 1,719 *30,917 13,276 850 3,788 2,242 2,032 1,114 65,700 3,741 3,019 12,243 1,885 83 532 296 153,597 125,540 869 1,509 2,279 2,242 1,465 ........ 567 1,114 51,630 14,070 136 2,885 1,867 3,148 3,691 136 2,759 1,545 3,071 3,341 126 322 77 350 4,664 1,538 1,649 8,633 558 4,106 1,538 1,649 5,899 2,734 103 1 Deposits of insured banks are as of date of suspension or merger; deposits of noninsured banks are as of latest report prior to suspension. Figures for each bank are rounded to thousands of dollars. 2 Excludes noninsured banks operating under restrictions or moratoria which were placed in receivership or liquidation. N o t e : For reconcilement of figures relating to number of suspensions, receiverships, and mergers, see the Annual Report for 1941, p. 99. MERGERS 1,524 2,964 1,614 100 1,081 AND North Dakota. Ohio................... Oklahoma......... Oregon............... Pennsylvania. . 528 1,081 1,078 SUSPENSIONS. RECEIVERSHIPS, State Alabama Arkansas. . . . California. . . Colorado Connecticut. o Table 125. ASSETS AND LIABILITIES OF INSURED BANKS PLACED IN RECEIVERSHIP, 1934-1943 AS SHOWN BY BOOKS OF BANK AT DATE OF SUSPENSION Cash and due from banks Other securities Loans, Banking discounts, house, furniture & and fixtures overdrafts Other real estate Liabilities and capital accounts Total Other assets Total deposits Other liabilities R .F . C. capital Private capital stock Other capital accounts1 $22,424,162 $10,036,378 $15,905,472 $65,485,187 $5,373,316 $12,293,686 $8,325,073 $139,843,274 $106,969,354 $10,121,892 $5,891,646 $12,226,999 $4,633,383 Year 603,519 698,440 902,215 1,293,683 451,570 273,638 510,479 1,955,104 2,307,696 2,215,638 1,329,865 6,842,116 6,454,624 11,107,699 6,574,061 79,365 459,055 459,700 486,995 412,911 120,319 242,274 734,874 837,966 2,125,022 69,565 1,597,403 273,559 1,010,689 530,408 2,661,327 12,323,948 12,974,788 19,283,376 13,919,907 1,951,992 8,700,485 11,039,098 14,715,286 10,124,255 1939 1940 1941 1942 1943 3,329.557 1,018,215 6,462,157 500,513 2,910,826 1,052,424 452,574 3,493,431 119,650 968,872 4,855,519 1,519,677 1,810,346 52,364 405,011 21,839,422 3,314,762 5,398,218 777,953 1,846,467 1,845,901 694,900 91,311 70,685 772,493 7,221,558 435,526 106,615 55,222 414,310 3,781,385 523,899 449,458 25,030 63,677 43,925,766 7,959,553 17,811,536 1,601,417 7,381,656 205,875 412,270 99,158 2,193,523 187,300 77,309 284,132 420,131 14,863 56,107 490,806 264,361 52,838 1,038,462 9,726 3,112 2,655 757,000 6,450 6,149 4,165 35,403 72 24,037 919,185 854,711 438,855 5,168,905 104,963 93,695 1,132,758 1,213,354 90,000 223.000 788.000 755,250 1,052,900 432,100 950,000 1,069,350 2,498,815 1,059,200 82,272 338,577 -15,355 181,267 470,198 32,557,805 5,599,438 14,627,158 1,379,526 6,274,311 4,695,820 455,788 298,526 1,520 13,582 2,249,996 422,750 195,500 81,750 32,500 2,775,001 1,045,533 1,582,000 140.000 675.000 1,647,144 436,044 1,108,352 -1,379 386,263 862,458 767,197 474,085 4,170,571 1,104 1,415 447 10,616 25,000 7,500 25.000 25.000 25.000 600,000 5,623 53,599 -60,677 387,718 2 ,1 1 1 , 8 8 6 1943 Case number 241 242 , 243 244 334,041' 401,711 i Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit. N o t e : Two banks placed in receivership in 1943 were national banks and two were commercial banks not members of the Federal Reserve System. The FDIC is receiver for cases 241, 242, and 244; the Illinois State banking authority for case 243. Case 241— The Poultney National Bank, Poultney, Vermont; 242— Bank of Black Mountain, North Carolina; 243— Farmers State Bank of Cullom, Illinois; 244— First National Bank and Trust Company of Easton, Pennsylvania. Back figures— See the Annual Report for 1942, p. 98, and earlier reports. CORPORATION 185,056 1,974,181 2,194,712 2,238,648 1,610,297 INSURANCE 1934 1935 1936 1937 1938 DEPOSIT Total U. S .G o v ernment obligations j FEDERAL Assets T a b le 126. DEPOSITORS AND DEPOSITS OF INSURED BANKS PLACED IN RECEIVERSHIP, 1934-1943 AS SHOWN BY BOOKS OF FDIC, DECEMBER 31, 1943 Amount of deposits Number of depositors T otal 378,019 286,298 1939 1940 1941 1942 1943 90,191 20,671 38,591 5,715 15,352 72,210 15,680 29,883 4,203 10,139 1943 Case number 241 242 243 244 2,677 2,683 876 9,116 1,960 2,192 763 5,224 17,875 Total3 Total Paid 38,035 $109,078,626 $86,849,919 $86,007,991 937 2,985 4,677 7,761 7,389 2,761 4,614 23 85 24 585 1,254 6,207 9,493 4,521 944,764 1,966,373 6,042,799 9,088,525 11,240,970 8,055,840 14,961,270 12,049,319 10,295,741 9,087,562 941,008 6,024,617 8,055,563 12,044,528 9,032,444 6 ,2 2 1 3,951 7,809 2,045 32,739,801 5,656,748 14,729,744 1,816,309 6,583,145 26,273,452 4,895,819 12,280,788 1,614,848 5,604,728 26,183,983 4,893,487 12,275,773 1,611,574 4,895,014 . 895,764 1,011,971 502,442 4,172,968 825,061 813,317 395,314 3,571,036 2,935 11 1 ,6 6 8 560 678 919 952 4,535 295 286 50 47 422 205 63 3,845 6 ,1 2 1 814,395 801,810 377,964 2,900,845 Unpaid Secured and preferred5 $841,928 $4,801,569 3,756 18,182 277 4,791 5,118 89,469 2,332 5,015 3,274 709,714 In excess of insurance maximum Other6 $6,264,863 $9,802,687 $1,359,588 831,832 539,559 659,382 1,140,812 340,557 91,005 561,289 660,362 1,084,311 525,663 30,607 1,933,585 1,048,034 642,707 252,043 68,165 11,293 817,352 44,121 89,916 573,176 182,440 375,883 59,809 98,119 1,910,809 341,745 793,058 80,961 215,660 3,951,245 221,323 997,814 60,691 664,638 31,119 15,421 282,201 61,323 11,796 25,000 64,365 73,959 12,777 64,559 6,338 63,372 82,555 512,373 1 0 ,6 6 6 11,507 17,350 670,191 Subject to offset * Includes all depositors whose claims have been fully paid by counterclaim, by sale of security, or directly by the receiver because of preferred status. a Includes depositors holding only uninsured deposits. See footnote 6 . Includes deposits discovered or reclassified subsequent to date of suspension, and for this reason the figures differ from those in Table 125. Includes all deposits paid or to be paid by FDIC. Includes only the portions of secured deposits met or to be met by sale of security and of preferred deposits paid by the receiver. « Includes (a) deposits barred from insurance because not claimed before the expiration of the period set by law, (b) restricted and deferred deposits not eligible for insurance, and (c) deposits made after termination of insured status in 1 bank which suspended after its insured status had been terminated. N o te : See Note to Table 1 2 B. Bach figures— See the Annual Report for 1942, p. 99, and earlier reports. 3 4 6 MERGERS 11,262 23,420 30,924 56,812 31,765 35,811 Unpaid AND 15,545 32,273 41,831 74,151 43,699 Fully paid by other methods1 RECEIVERSHIPS, Year 1934 1935 1936 1937 1938 Paid by FDIC Not eligible for insurance protection2 SUSPENSIONS, Total Uninsured, unsecured, not preferred, and not subject to offset' Insured4 Eligible for insurance protection o Ci Table 127. A s s e t s AND LIABILITIES OF INSURED BANKS M ERGED WITH THE FINANCIAL A lD F e d e r a l D e p o sit In s u r a n c e C o r p o r a tio n , FEDERAL o f th e 1935-1943 AS SHOWN BY BOOKS OF BANK AT DATE OF MERGER Assets U . S. Gov ernment securities Other securities Loans, discounts, and overdrafts Banking house, furniture & fixtures Other real estate Total Other assets Total deposits Other liabilities R. F. C. capital Private capital stock Other capital accounts1 404,834 3,109,830 4,717,074 233,395 2,071,296 2,495,254 1,403,807 2,080,059 3,520,186 2,256,417 8,917,554 8,678,629 608,467 1,277,605 562,181 1,184,658 926,359 10,808 325,362 186,497 4,917,728 18,966,364 21,086,180 4,228,816 16,287,262 18,384,923 140 19,769 262,651 310,000 609,200 315,000 1,664,000 1,808,400 373,772 685,333 21,006 1938 1939 1940 8,133,887 27,451,442 30,227,874 7,018,796 27,929,162 17,183,076 10,377,037 16,266,036 17,987,527 20,896,236 44,289,765 60,687,428 2,873,257 5,142,882 4,553,388 3,913,009 15,459,743 22,840,095 2,380,489 1,049,600 458,831 55,592,711 137,588,630 153,938,219 49,428,383 125,038,946 136,731,549 168,674 679,659 157,766 3,726,463 6,103,500 7,186,655 2,697,650 6,381,000 8,666,162 -428,459 -614,475 1,196,087 1941 1942 1943 3,167,243 4,159,617 1,216,987 801,273 3,547,766 2,903,771 2,835,309 2,275,392 555,383 8,178,623 7,731,137 1,675,734 798,028 759,861 274,331 1,014,582 1,824,586 15,844 197,669 354,362 34,523 16,992,727 20,652,721 6,676,573 14,990,768 17,195,146 5,897,691 57,508 584 289,000 913,400 96,000 1,111,250 1,748,200 300,000 544,201 795,391 382,882 1 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit. N ote : On September 25, 1943, The Jefferson County National Bank of Watertown, New York, with 10,455 accounts, was absorbed by The Watertown National Bank with the aid of a disbursement by FDIC amounting to $1,672,101. For names of banks merged prior to 1943, with number of accounts and amount of disbursement by FDIC, see the Annual Report for 1942, p. 100, and earlier reports. Power to make loans or purchase assets was contained in Banking Act of 1935. CORPORATION Year 1935 1936 1937 INSURANCE Total $82,588,788 $64,183,789 $57,300,736 $163,311,523 $16,850,000 $47,178,876 $4,998,141 $436,411,853 $388,183,484 $1,346,751 $19,234,218 $24,691,662 $2,955,738 DEPOSIT Cash and due from banks Liabilities and capital accounts INDEX INDEX Page Absorption of exchange charges. See Exchange charges, absorption of. Absorptions, consolidations, and mergers: Of Insured banks, 1934-43. See Mergers of insured banks with financial aid of the Corporation; Terminations of insurance. Of operating banks, 1943....................................................................................... 68-69 Adjusted capital account. See Capital of banks. Adjusted value of assets. See Appraised value of assets. Admissions to insurance: Applications approved and disapproved............................................................ B y class of bank, 1943............................................................................................ 17 69 Applications from banks: For admission to insurance................................................................................... 17 18 For approval of assumption of deposit liabilities of other banks................ For approval of capital retirement or reduction.............................................. 18 For approval of establishment of branches....................................................... 17-18 For approval of repayment or release of restricted, subordinated, or waived deposits..................................................................................... 18 Appraised value of assets. See Assets of insured banks, analysis of examina tions of. Assessments on insured banks for deposit insurance: A m ount.......................................................................................................................23, 27 Basis o f ....................................................................................................................... 61 Assets and liabilities of closed banks. See Receivership, insured banks placed in. Assets and liabilities of operating banks (see also Assets of insured banks, analysis of examinations of; Capital of banks; Deposits; Loans of insured commercial banks; Securities): All banks, June 30 and December 31, 1943...................................................... Commercial banks, June 30 and December 31, 1943...................................... Insured commercial banks: Call dates, December 31, 1943, to December 31, 1942............................ Changes during 1943......................................................................................... Reports o f .......................................................................................................18, Mutual savings banks, June 30 and December 31, 1943............................... Noninsured banks, June 30 and December 31, 1943...................................... Sources of data......................................................................................................... Types o f ..................................................................................................................... 78, 79 78, 79 80 33 61, 66 78, 79 78, 79 61-62 33 Assets and liabilities of the Federal Deposit Insurance Corporation............... 24-27 Assets of banks purchased by the Federal Deposit Insurance Corporation: From banks in receivership to facilitate liquidation....................................... 26 From banks merged with financial aid of the Corporation. See Mergers of insured banks with financial aid of the Corporation. Liquidation o f ........................................................................................................... 14-15 Assets of insured banks, analysis of examinations of (see also Fixed and substandard assets of insured commercial banks; Loans of insured commercial banks; Securities): Definitions of terms used: Appraised value................................................................................................. Book valu e.......................................................................................................... Criticized.............................................................................................................. Examiners* net deductions.............................................................................. 109 63 63 64 64 110 FEDERAL DEPOSIT INSURANCE CORPORATION Page Assets of insured banks, analysis of examinations of (see also Fixed and substandard assets of insured commercial banks; Loans of insured commercial banks; Securities):— Continued Definitions of terms used (continued): Fixed and substandard..................................................................................... Substandard........................................................................................................ Uncriticized......................................................................................................... Insured commercial banks, 1943: Grouped by amount of deposits.................................................................... Grouped by Federal Deposit Insurance Corporation D istrict............... 88, Grouped by fixed and substandard assets ra tio........................................ 86, Grouped by net sound capital ratio.............................................................. 84, Number included, by month of examination............................................. Sources of data......................................................................................................... 82 89 87 85 63 62 Assets of insured banks, quality of (see also Assets of insured banks, analysis of examinations o f ) ............................................................................... 32 Assets pledged to secure bank obligations............................................................... 81 64 64 64 Bank management. See Management of banks, quality of. Bank supervision (see also Examinations of banks): Purposes and objectives......................................................................................... 12 State legislation regarding, during 1943 .................................................20-21, 49-56 Supervisory activities of the Federal Deposit Insurance Corporation: Actions to terminate insured status of banks engaged in unsafe or unsound practices or violations of law or regulations................. 11-12 Actions on applications from banks. See Applications from banks. Reports required from banks.......................................................................... 18 Bankers’ directories, data obtained fr o m .................................................... 59, 61, 62, 63 Banking offices, establishment o f : Banks beginning operations, 1943....................................................................... Branches, establishment approved by Corporation........................................ Branches opened, 1943........................................................................................... 68 17-18 69 Banking offices, number of. See Number of operating banking offices. Banking practices. See Bank supervision; Unsafe and unsound banking practices. Banks beginning operations. See Banking offices, establishment of. Banks ceasing operations, 1943................................................................................... 68 Banks closed because of financial difficulties (see also Mergers of insured banks with financial aid of the Corporation; Receiverships, insured banks placed in ): Depositors protected by the Federal Deposit Insurance Corporation: Fully protected, in insured banks placed in receivership, or merged with the financial aid of the Corporation....................................... 13-14 Number o f ........................................................................................................... 14 Number of, in insured banks merged with financial aid of the Corporation............................................................................................ 14,106 Number of, in insured banks placed in receivership................................ 14,105 Insured banks placed in receivership or merged with financial aid of the Corporation: Deposits protected......................................................................................13-15, 105 Disbursements by the Corporation in connection w ith ...........14-15, 105, 106 Loss to depositors.............................................................................................. 14 Loss to Federal Deposit Insurance Corporation........................................ 8, 15 Number and deposits of, 1934-43: B y amount of deposits............................................................................... 102 B y class of b a n k .......................................................................................... 102 B y State......................................................................................................... 103 B y y ear........................................................................................................... 102 INDEX 111 Page Banks closed because of financial difficulties (see also Mergers of insured banks with financial aid of the Corporation; Receivership, insured banks placed in ):— Continued Suspensions: Number and deposits, 1934-43: B y amount of deposits............................................................................... 102 B y class of b a n k .......................................................................................... 102 B y State......................................................................................................... 103 B y year.......................................................................................................... 102 Number, 1943..................................................................................................... 68,102 Of banks charged with unsafe and unsound banking practices............. 16-17 Banks operating branches. See Banking offices, establishment of; Number of offices of banks operating branches. Board of Directors of the Federal Deposit Insurance Corporation................... 21 Board of Governors of the Federal Reserve System: Data obtained from ................................................................................................. 59, 61 Review of examination reports submitted b y ................................................... 16 Ruling by. See Exchange charges, absorption of. B ook values of banks assets and liabilities. See Assets and liabilities of opera ting banks; Assets of insured banks, analysis of examinations of; Capital of banks. Branches. See Banking offices, establishment of; Classification of banks and banking offices; Number of offices of banks operating branches. Capital of banks (see also Assets and liabilities of operating banks; Capital ratios; Earnings, expenses, and dividends of insured banks): Adequacy o f ................................................................................................... 31-32, Analysis of examinations: Definition of terms used: Book v alu e.................................................................................................... Examiners' net deductions........................................................................ N et sound capital........................................................................................ Private capital.............................................................................................. R . F. C. capital........................................................................................... Total capital accounts............................................................................... Insured commercial banks, 1943: Grouped by amount of deposits.............................................................. Grouped by Federal Deposit Insurance Corporation D istrict......... Grouped by fixed and substandard assets r a t io .................................. Grouped by net sound capital ratio....................................................... Of insured banks placed in receivership............................................................. Reductions and retirements approved by the Corporation.......................... Total capital accounts: Commercial and mutual savings banks, insured and noninsured, June 30 and December 31, 1943....................................................... Insured commercial banks: Examined in 1943....................................................................................... Call dates, December 31, 1942, to December 31, 1943..................... D efinition...................................................................................................... Discussion o f ................................................................................................ Unsafe and unsound practices................................................................... 11-12, 34-35 63 64 64-65 65 65 64 82, 83 88, 89 86, 87 84, 85 104 18 78, 79 82-89 81 64 35 16-17 Capital ratios: Net sound capital to assets: Insured commercial banks, 1943. See Capital of banks, analysis of examinations. Insured commercial banks grouped by, 1943: Analysis of examinations of capital and liabilities, amounts and ratios........................................................................................................ 84, 85 Appraised values of total assets, securities, loans, and fixed and miscellaneous assets— amounts and ratios...................................... 84, 85 Deposits o f .................................................................................................... 95 Number o f ..................................................................................................... 94 112 FEDERAL DEPOSIT INSURANCE CORPORATION Page Capital ratios:— Continued Net sound capital to deposits...................................................................83, 85, 87, 89 Total capital accounts to loans, investments other than U. S. Government obligations, and miscellaneous assets............................................... 35 Cash depositories............................................................................................................ 59 Charge-offs on bank assets........................................................................................... 36, 97 Class of bank, banking data presented b y : Admissions to and terminations of insurance................................................... 68-69 Assets and liabilities................................................................................................78, 79 Banks which suspended operations..................................................................... 102 D eposits.......................................................................................................... 76-77, 78, 79 Earnings of insured banks..................................................................................... 96, 98 Insured banks placed in receivership or merged with financial aid of the Corporation............................................................................................ 102 Number of banking offices..................................................................................... 68-75 Number of banks..................................................................................................... 68-77 Classification of banks and banking offices.............................................................. 59, 60 Closed banks. See Banks ceasing operations; Banks closed because of financial difficulties; Receivership, insured banks placed in. Commercial banks. See Assets and liabilities of operating banks; Assets of insured banks, analysis of examinations of; Capital of banks; Deposits; Earnings, expenses, and dividends of insured banks; Number of operating banks. Commercial banking offices. See Number of operating banking offices. Comptroller of the Currency: Data obtained fro m ........................................................................................... 59, 62, 63 Director of Corporation......................................................................................... 21 Examination of insured banks b y ........................................................................ 11 Insured banks not members of the Federal Reserve System reporting t o . . 61 Review of reports of examinations made b y ..................................................... 16 Consolidations. See Absorptions, consolidations, and mergers. Consumer loans. See Instalment loans. Criticized assets. See Assets of insured banks, analysis of examinations of. Demand deposits. See Assets and liabilities of operating banks; Deposits, classified by type of deposit. Depositors (see also Insurance coverage): Claims against closed insured banks. See Receivership, insured banks placed in. Losses. See Banks closed because of financial difficulties; Receivership, insured banks placed in. Protected in insolvent or hazardous banks suspended or merged. See Banks closed because of financial difficulties. Deposits: A djusted..................................................................................................................... Amount of, banks grouped by : Banks which received financial aid from the Corporation...................... Banks which suspended operations............................................................... Insured commercial banks examined in 1943.................................82, 83, Insured commercial banks operating throughout 1943............................ Claims barred............................................................................................................ Classified by type of deposit: Commercial banks, June 30 and December 31, 1943............................... Insured banks placed in receivership, 1934-43........................................... Insured commercial banks, call dates, December 1943 to December 1942 65, 82 102 102 94, 95 100 14,15 78, 79 105 80 INDEX 113 Page D eposits:— Continued Definition: For assessment purposes.................................................................................. 61 For reports of assets and liabilities............................................................... 62 In reports of examinations.............................................................................. 65 Demand. See Deposits, classified by type of deposit. G row th....................................................................................................................... 31 Insured and otherwise protected: In banks merged with financial aid of the Corporation................... 14-15, 106 In banks placed in receivership.............................................................. 14-15, 105 Interbank. See Deposits, classified by type of deposit. Interest on. See Time and savings deposits. Of individuals, partnerships, and corporations. See Deposits, classified by type of deposit. Paid and unpaid in closed insured banks.......................................................... 14,105 Payments of, to insured depositors. See Receivership, insured banks placed in. Postal savings deposits. See Deposits, classified by type of deposit. Preferred. See Deposits, secured and preferred. Protected by the Corporation. See Deposits, insured and otherwise protected. Public funds. See Deposits, classified by type of deposit. Savings. See Time and savings deposits. Secured and preferred: Insured banks placed in receivership, 1934-43...........................................14,105 Insured commercial banks, call dates, December 31,1943 to December 31, 1942................................................................................................... 81 Sources of d a ta......................................................................................................... 61 Subject to offset. See Receivership, insured banks placed in. Time. See Time and savings deposits. Uninsured deposits of insured banks placed in receivership..................14-15, 105 United States Government. See Deposits, classified by type of deposit. Unsecured. See Receivership, insured banks placed in. Deposits in: All banks: June 30, 1943...................................................................................................... 78 December 31, 1943............................................................................................ 76, 79 All patvim nr/^i q 1 Vioyilrcs* Call dates, December 31, 1943 to December 31, 1942............................. 80 December 31, 1943............................................................................................ 76, 79 June 30, 1943...................................................................................................... 78 All insured banks: June 30, 1943...................................................................................................... 78 December 31, 1943............................................................................................ 76, 79 All mutual savings banks: December 31, 1943............................................................................................ 76, 79 June 30, 1943...................................................................................................... 78 Banks located in each State and possession, December 31, 1943................ 76-77 Banks for which the Corporation is receiver.................................................... 15 Banks which received financial aid from the Corporation.............13-15, 102,106 Insured banks merged with financial aid of the Corporation. . . . 14-15, 102, 106 Insured banks placed in receivership.................................................. 14-15, 102, 105 Insured commercial banks: At time of examination, 1943. See Deposits, adjusted. Call dates, December 31, 1943 to December 31, 1942............................. 80 December 31, 1943............................................................................................ 76, 79 June 30, 1943...................................................................................................... 78, 80 Insured mutual savings banks: December 31, 1943............................................................................................ 76, 79 June 30, 1943...................................................................................................... 78 Noninsured banks: December 31, 1943............................................................................................ 76, 79 June 30, 1943...................................................................................................... 78 Suspended banks...................................................................................................... 102 Depreciation. See Earnings, expenses, and dividends of insured banks. 114 FEDERAL DEPOSIT INSURANCE CORPORATION Page Dividends: T o depositors in mutual savings banks......................................................... . 38, 97 T o stockholders of operating insured banks: Amount of. See Earnings, expenses, and dividends of insured banks. Rates o f ................................................................................................................ 101 Relative to net earnings and net profits...................................................... 36 Earnings, expenses, and dividends of insured banks: Insured commercial banks, 1934-1943: Am ounts............................................................................................................... Discussion o f ....................................................................................................... Interest received and paid............................................................................... Rates of income received and interest pa id ................................................ Rates of net earnings and net profits........................................................... Insured commercial banks, 1943: Amounts, by class of bank.............................................................................. Discussion o f ....................................................................................................... Ratios to total assets, b y size of ba n k ......................................................... Ratios to total current earnings.................................................................... Insured commercial banks examined in 1943, grouped by rate of net earnings................................................................................................... Insured mutual savings banks: Amounts, 1943.................................................................................................... Discussion o f ....................................................................................................... Sources of data......................................................................................................... Employees: Federal Deposit Insurance Corporation............................................................. Insured commercial banks, December 31, 1943............................................... Insured mutual savings banks, December 31, 1943........................................ 37 35-37 37 37 36, 37 96 35-37 100 98 94, 95 96 38 65 21 97 97 Examinations of banks (see also Assets of insured banks, analysis of examina tions o f; Capital of banks): Banks cited for unsafe and unsound practices................................................. 16-17 Banks examined by the Federal Deposit Insurance C orporation.. .11, 15-16, 61 Date from reports of examination............................................................33-35, 82-95 Definition of term s.................................................................................................. 63, 65 Effect of war o n ............ ........................................................................................... 15-16 Review of examinations made by Comptroller of Currency and Federal Reserve banks........................................................................................ 16 Tabulation of reports, 1943................................................................................... 63 Uniform examination procedure.......................................................................... 62 Examiners: Analysis of bank examinations made by. See Assets of insured banks, analysis of examinations of; Capital of banks. Em ployed b y the Corporation. See Employees, Federal Deposit Insurance Corporation. Exchange charges, absorption of: Effect on small country banks.............................................................................. 9 L e g isla tio n ............................................................................................................... 19 Ruling of Board of Governors of the Federal Reserve System ...............18-19, 48 Expenses of banks. See Earnings, expenses, and dividends of insured banks. Expenses of the Federal Deposit Insurance Corporation. See Federal Deposit Insurance Corporation. Failures of banks. See Banks closed because of financial difficulties. Federal bank supervisory authorities. See Bank supervision; Board of Governors of the Federal Reserve System; Comptroller of the Currency; Federal Deposit Insurance Corporation; Federal Reserve banks. INDEX 115 Page Federal Deposit Insurance Corporation: Actions by: On applications from banks. See Applications from banks. T o terminate insured status of banks.......................................................... 16-17 Assessments on insured banks..................................................................23, 24, 26, 27 Assets and liabilities................................................................................................ 24-27 A u dit........................................................................................................................... 25-27 Balance sheet............................................................................................................ 25-27 Banks examined by, and submitting reports t o ............................................... 61 Bank supervision by. See Bank supervision. Board of D irectors................................................................................................... v, 21 Borrowing p o w e r..................................................................................................... 26-27 Capital................................................................................................................... 25, 27, 24 Claims held against suspended and merged banks..........................................25, 26 Depositors protected by. See Banks closed because of financial difficulties. Disbursements for protection of depositors........................................... 13-15, 23-24 D istricts......................................................................................................................vi, vii D ivisions..................................................................................................................... 22 Em ployees....................................... .......................................................................... 22 Examination of banks. See Examinations of banks. Expenses..................................................................................................................... 23-24 In com e........................................................................................................................ 23-24 Insured banks receiving financial aid from. See Banks closed because of financial difficulties. Insured deposits. See Deposits, insured and otherwise protected. Investm ents...............................................................................................................25, 26 Liquidation of assets of insured banks in financial difficulties..................... 14 Loans to and purchase of assets from insured banks. See Mergers of insured banks with financial aid of the Corporation. Losses incurred: During 1943........................................................................................................ 23 During 1934-43................................................................................................ 7,15, 23 Prevention of, b y supervisory activity ......................................................... 12 Reserve f o r .......................................................................................................... 25,26 Officers........................................................................................................................ v, 21 Operations.................................................................................................................3, 7, 27 Organization and staff........................................................................................ iv, 21-22 Payments to insured depositors...........................................................................14,105 Policies........................................................................................................................ 7-10 Pow ers...................................................................................................................... 3, 11-18 Protection of depositors. See Banks closed because of financial difficulties. Purchase of assets to facilitate completion of liquidation of banks in receivership............................................................................................. 14,26 Receiver for insured bank s..............................................................................14-15, 104 14 Recoveries from banks in financial difficulties................................................. Regulations................................................................................................................ 48 Repayments t o .......................................................................................................... 15 Reports from banks................................................................................................. 18,61 Reserves for losses................................................................................................... 25, 26 State legislation affecting operations, 1942............................................ 20-21, 49-56 Supervisory activities. See Bank supervision. Surplus.............................................................................................................. 8, 24-25, 27 Federal Deposit Insurance Corporation Districts: Banks classified b y .................................................................................................. 88, 89 States and possessions served............................................................................... vi, vii Federal Reserve banks: Data obtained from ................................................................................................. 62 Review of bank examinations made b y .............................................................. 16 Fixed and miscellaneous assets. See Assets and liabilities of operating banks; Assets of insured banks, analysis of examinations of; Re ceivership, insured banks placed in. Fixed and substandard assets of insured commercial banks (see also Assets of insured banks, analysis of examinations of; Capital of banks): Banks classified by ratio to assets.................................................... 86, 87, 90, 91, 92 Banks classified b y ratio to net sound capital.................................................. 35 116 FEDERAL DEPOSIT INSURANCE CORPORATION Page Fixed and substandard assets of insured commercial banks (see also Assets of insured banks, analysis of examinations of; Capital of banks): — Continued Banks with substandard assets............................................................................ 33, 34 Definition................................................................................................................... 64 Discussion o f ............................................................................................................. 34 Head offices of branch systems. See Number of offices of banks operating branches. Insolvent or hazardous banks. See Bank supervision; Banks closed because of financial difficulties. Instalment loans, how reported.................................................................................. 62 Institutions excluded from figures of operating banks......................................... 60 Insurance coverage. See Deposits, insured and otherwise protected. Insurance status, banks classified by: Assets and liabilities o f ........................................................................................... 78, 79 Deposits o f ................................................................................................................. 76-77 Number o f ................................................................................................................. 68-77 Suspensions o f .........................................................................................................102-103 Insured banks. See: Absorptions, consolidations, and mergers; Admissions to insurance; Assets and liabilities of operating banks; Assets of insured banks, analysis of examinations of; Assets of insured banks, quality of; Banking offices, establishment of; Banks ceasing operations; Banks closed because of financial difficulties; Capital of banks; Classification of banks and banking offices; Class of bank, banking data presented by; Deposits; Deposits in; Earnings, expenses, and dividends of insured banks; Employees; Examinations of banks; Loans of insured commercial banks; Mergers of insured banks with financial aid of the Corporation; Mutual savings banks; Number of offices of banks operating branches; Number of operating banking offices; Number of operating banks; Number of unit banks; Receivership, insured banks placed in; Securities; States, banking data classified by; Terminations of insurance; Unsafe and unsound banking practices. Insured commercial banks not members of the Federal Reserve System. See Class of bank, banking data presented by. Insured commercial banks submitting reports to the Federal Deposit In surance Corporation............................................................................. Insured deposits. See Deposits, insured and otherwise protected. Insured mutual savings banks. See Mutual savings banks. Insured State banks members of the Federal Reserve System. See Class of bank, banking data presented by. Interbank deposits. See Deposits, classified by type of deposit. 61 INDEX 117 Page Interest: Amounts. See Earnings, expenses, and dividends of insured banks. Rate on loans............................................................................................................ Rate on securities, 1934-43.................................................................................... Rate on time and savings deposits...................................................................... 37 37 37 Investments of banks. See Assets and liabilities of operating banks; Securities; United States Government obligations; Unsafe and unsound banking practices. Investments of the Federal Deposit Insurance Corporation.............................. 23-25 Law, violations of by insured banks......................................................................... 16-17 Legislation in 1943 related to deposit insurance and banking: Federal: Deduction of reserve for bad debts in determining tax liability...........20, 48 Overtime compensation to government em ployees....................... 19-20, 46-47 War Loans: D eposits......................................................................................................... 19, 45 War housing insurance fu n d .................................................................... 20 State: Affecting insured banks................................................................................... 21 Amendment of banking codes........................................................................ 49-56 Liquidation, banks placed in ....................................................... 14-15, 68, 102-103, 104 Loans of insured commercial banks (see also Unsafe and unsound banking practices): A m ounts.................................................................................................. 31, 78, 79, 80-81 Analysis of examinations of insured commercial banks, 1943: Appraised and book values, examiners* net deductions, substandard, and not criticized...................................................................... 82, 84, 86, 88 Ratios of appraised value to book value......................................... 83, 85, 87, 89 Changes, 1943........................................................................................................... 32 Interest on. See Earnings, expenses, and dividends of insured banks. Rate of income o n ................................................................................................... 37 T yp es.......................................................................................................................... 32 War financing........................................................................................................... 13 Loans to insolvent or hazardous insured banks by Federal Deposit Insurance Corporation. See Mergers of insured banks with financial aid of the Corporation. Losses: Of banks: Charged off. See Charge-offs on bank assets. Reserves permitted as deductions for tax liabilities................................. 20, 48 Of depositors. See Banks closed because of financial difficulties; R e ceivership, insured banks placed in. Of the Federal Deposit Insurance Corporation. See Federal Deposit Insurance Corporation. Management of banks, quality of. See Unsafe and unsound banking practices. Mergers. See Absorptions, consolidations, and mergers; Mergers of insured banks with financial aid of the Corporation. Mergers of insured banks with financial aid of the Corporation (see also Banks closed because of financial difficulties): Banks cited for unsafe and unsound practices............................................ 11, 16-17 Classification of banks m erged............................................................................. 60-61 Collections by Corporation on assets purchased or held as collateral........ 15 Deposits protected................................................................................................... 14 Disbursements by Corporation............................................................................ 15,106 Loans and assets purchased by the Corporation........................................ 15, 25-26 Losses incurred by Corporation..................................................................8, 15, 25-26 118 FEDERAL DEPOSIT INSURANCE CORPORATION Page Mergers of insured banks with financial aid of the Corporation (see also Banks closed because of financial difficulties):— Continued Names and location of banks merged, 1943..................................................... 106 Number of banks m erged.................................................................................... 102-103 Procedure................................................................................................................... 13-16 Protection afforded depositors.............................................................................. 3, 13 Repayments to Corporation.................................................................................. 15 Morris Plan banks, classification o f ............... ........................................................... 59, 60 Mutual savings banks: Advisory council on savings banks established July 1, 1943........................ 38 Insured: Assets and liabilities, June 30 and December 31, 1943............................ 78-79 Classification........................................... ........................................................... 60 Deposits: B y State, December 31, 1943.................................................................. 76-77 June 30 and December 31, 1943.............................................................. 78-79 Discussion o f ....................................................................................................... 38 Earnings, expenses, and dividends...........................................................38, 96, 98 Number: B y State, December 31, 1943.................................................................. 76-77 B y type of office, December 31, 1943.................................................... 70-75 Changes during 1943.................................................................................. 68-69 Insured and noninsured: Assets and liabilities, June 30 and December 31, 1943............................ 78, 79 Classification....................................................................................................... 60 Deposits, by State, December 31, 1943....................................................... 76-77 Number: B y State, December 31, 1943.................................................................. 76-77 B y type of office, December 31, 1943.................................................... 70-75 Changes during 1943.................................................................................. 68-69 National banks. See Class of bank, banking data presented by; Comptroller of the Currency; Losses of banks. Net earnings of insured commercial banks. See Earnings, expenses, and dividends of insured banks. Net profits of insured commercial banks. See Earnings, expenses, and divi dends of insured banks. Net sound capital of insured commercial banks. See Capital of banks; Capital ratios. New banks. See Banking offices, establishment of. Noninsured banks. See: Absorptions, consolidations, and mergers; Admissions to insurance; Assets and liabilities of operating banks; Banks closed because of financial difficulties; Capital of banks; Class of bank, banking data presented by; Classification of banks and banking offices; Deposits; Number of offices of banks operating branches; Number of operating banking offices; Number of operating banks; Number of unit banks. Number of offices of banks operating branches: rj pVi aq• Changes during 1943......................................................................................... 69 December 31, 1943, by class of bank and States and possessions........ 70-75 D efinition............................................................................................................. 59, 60 Head offices, (banks operating branches): December 31, 1943, by class of bank and States and possessions............... 70-75 INDEX 119 Page Number of operating banking offices: All offices...............................................................................................................68, 70-75 Changes during 1943............................................................................................... 68 Classification............................................................................................................. 59-60 December 31, 1943, by class of bank and States and possessions............... 70-75 Number of operating banks: All banks: Admissions to insurance................................................................................... 17,68 Approved for admission to insurance........................................................... 17-18 Changes during 1943........................................................................................ 68-69 Classification...................................................................................................... 59-60 December 31, 1943, by class of bank and States and possessions........ 76-77 June 30 and December 31, 1943.................................................................... 78-79 Terminations of insurance.......................................................................... 16, 68-69 Commercial banks: Admissions to insurance................................................................................... 68-69 Changes during 1943........................................................................................ 68-69 Classification...................................................................................................... 59-60 December 31, 1943, by class of banks and States and possessions. . . . 76-77 June 30 and December 31, 1943.................................................................... 78, 79 Insured commercial banks: Applications approved and disapproved..................................................... 17-18 Call dates, December 31, 1943, to December 31, 1942............................ 80 Changes during 1943........................................................................................ 68-69 Classification...................................................................................................... 59-60 December 31, 1943, b y States and possessions.......................................... 76-77 Operating throughout 1943: B y amount of deposits.............................................................................. 101 Reports of examinations in 1943 tabulated: B y amount of deposits.................................................................. 82, 83, 94, 95 B y Federal Deposit Insurance Corporation District..................... 88, 89, 93 B y month of examination......................................................................... 63 B y rate of net earnings.............................................................................. 94-95 B y ratio of fixed and substandard assets to net sound capital. . . . 34 B y ratio of fixed and substandard assets to total assets 86, 87, 92, 94, 95 B y ratio of net sound capital to total assets..................... 84, 85, 91, 94, 95 B y ratio of substandard assets to total assets..................................... 34 Mutual savings banks. See Mutual savings banks. Noninsured banks: Changes during 1943........................................................................................ 68-69 Classification....................................................................................................... 59-60 December 31, 1943, by class of bank and States and possessions........ 76-77 June 30 and December 31, 1943.................................................................... 78, 79 Unit banks: December 31, 1943, by class of bank and States and possessions........ 70-75 D efinition............................................................................................................. 60 Officers, active, of insured banks. See Employees. Officers and employees of the Federal Deposit Insurance Corporation........... 21-22 Operating banks. See Number of operating banks. Par list, definition o f ...................................................................................................... 66 Payments to depositors in closed insured banks. See Receivership, insured banks placed in. Polk’s Bankers Encyclopedia, data obtained from ................................................ 59 Possessions, bank and branches located in: Deposits o f ................................................................................................................ 76-77 Number o f ...................................................................................................... 70-75, 76-77 Post-war policies in banking................... ...................................................... 12-13 1 20 FEDERAL DEPOSIT INSURANCE CORPORATION Page Postal savings deposits. See Deposits, classified by type of deposit. Preferred deposits. See Deposits, secured and preferred. Profits. See Earnings, expenses, and dividends of insured banks. Protection of depositors. See Banks closed because of financial difficulties; Deposits, insured and otherwise protected. Public funds. See Deposits, classified by type of deposit. Purchase of bank assets by Corporation. See Assets of banks purchased by the Federal Deposit Insurance Corporation. Rand M cN ally Bankers Directory, data obtained from ...................................... 59 Real estate, loans on. See Assets and liabilities of operating banks. Receivership, insured banks placed in (see also Banks closed because of financial difficulties): Activities of Corporation as receiver o f ............................................................. 15,104 Assets and liabilities of, at dates of suspension, 1934-43............................... 104 Depositors: Extent of protection by insurance......................................................... 13-15, 105 Method of protection....................................................................................... 13-15 Number eligible for protection, paid and unpaid...................................... 105 Payments t o ................................................................................................. 14-15, 105 Deposits: Insured, paid and unpaid by December 31, 1943..................................... 14,105 N ot eligible for insurance protection............................................................14,105 Paid and unpaid, December 31, 1943...........................................................14,105 Secured, preferred, and subject to offset..................................................... 14,105 Unclaimed accounts..........................................................................................14,105 Uninsured............................................................................................................ 14,105 Liquidation o f ........................................................................................................... 15 List of banks, 1943...................................... ^......................................................... 104 Losses by Corporation on depositors’ claims p a id ........................................... 15 Names and location of, during 1943................................................................... 104 Number of banks..................................................................................................... 102 Payments to depositors.......................................................................................... 14,105 Purchase of assets fro m .......................................................................................... 15 Receivers.................................................................................................................... 15,104 Sources of da ta.................................................................................................... 59, 60-61 Reconstruction Finance Corporation, capital of insured banks held b y : Amount. See Capital of banks. Retirements............................................................................................................... 18 Recoveries: By banks on assets charged off. See Charge-offs on bank assets. B y Federal Deposit Insurance Corporation on disbursements in closed banks........................................................................................................ 15 Regulations. See Federal Deposit Insurance Corporation. Repayments to the Corporation................................................................................. 15 Reports from banks....................................................................................................... 18 Reserves:: Deductions in determining tax liabilities...........................................................20, 48 In bank assets and liabilities. See Assets and liabilities of operating banks. Of Federal Deposit Insurance Corporation....................................................... 25, 26 Risk bearing and the financing of private enterprise............................................ 12-13 Savings and time deposits. See Time and savings deposits. Secured and preferred deposits. See Deposits, secured and preferred; Re ceivership, insured banks placed in. INDEX 121 Page Securities (see also Assets and liabilities of operating banks; United States Government obligations): Examiners’ appraisal of, method used................................................................ 63, 64 Held by Federal Deposit Insurance Corporation...................................... 24, 25, 26 Held by insured banks placed in receivership, 1934-1943............................. 104 Held by insured commercial banks: Amounts, call dates, December 31, 1943, to December 31, 1942......... 80-81 Analysis of examinations: Appraised and book values, examiners’ net deductions, sub standard, and not criticized................................................... 82, 84, 86, 88 Ratios of appraised to book values............................................ 83, 85, 87, 89 Interest on. See Earnings, expenses, and dividends of insured banks. Rate of income o n .......................................................................... ................... 37 U. S. Government obligations and other securities, book and appraised values, examinations in 1942 and 1943...................................... 91, 92, 93 War financing............................................................................................................ 13 Size of banks, banks classified by. See Deposits, amount of, banks grouped by. State banks members of the Federal Reserve System. See Class of bank, banking data presented by. State banks not members of the Federal Reserve System. See Class of bank, banking data presented by. State bank supervisory authorities: Data obtained from ............................................................................................59, 61, 62 State legislation regarding functions o f .............................................................. 20-21 State legislation regarding deposit insurance and bank supervision............ 20-21, 49 States, banking data classified by: Deposits, December 31, 1943: Commercial banks, insured and noninsured............................................... Mutual savings banks, insured and noninsured........................................ Number of operating banks or offices, December 31, 1943: All banking offices, by class of bank and type of office........................... All banks.............................................................................................................. Commercial banks, insured and noninsured............................................... Mutual savings banks, insured and noninsured........................................ Suspensions, receiverships, and m ergers............................................................ 76-77 76-77 70-75 76-77 76-77 76-77 103 Stockholders of banks: Losses of. See Banks closed because of financial difficulties. Net profits of insured commercial banks, available for. See Earnings, expenses, and dividends of insured banks. Substandard assets. See: Assets of insured banks, analysis of examinations of; Fixed and substandard assets of insured commercial banks; Loans of insured commercial banks; Securities. Supervision. See Bank supervision. Suspensions. See Banks closed because of financial difficulties; Receivership, insured banks placed in. Subrogated claims of depositors................................................................................. 25, 26 Taxes paid by insured banks. See Earnings, expenses, and dividends of insured banks. Terminations of insurance: For unsafe and unsound banking practices and violations of law or regulations.............................................................................................. 16-17 Number, 1943...................................................................................................... 16, 68-69 122 FEDERAL DEPOSIT INSURANCE CORPORATION Page Time and savings deposits: Amount, insured commercial banks, call dates, December 31, 1943, to December 31, 1942............................................................................... Interest paid on: Amounts. See Earnings, expenses, and dividends of insured banks. Rates o f ................................................................................................................ 80 37 Trust companies: Classification o f ........................................................................................................ 59 Number not engaged in deposit banking............................................... 76-77, 78, 79 Trust departments, assets o f ....................................................................................... 62 Unit banks. See Deposits in; Number of unit banks. United States Government obligations (see also Assets and liabilities of operating banks; Securities): Held by Federal Deposit Insurance Corporation............................................ 25, 26 Held by insured commercial banks, December 31, 1943, to December 31, 1942.......................................................................................................... 80-81 Purchase of, by insured commercial banks, 1943............................................ 31-32 Unsafe and unsound banking practices: Actions of Corporation........................................................................................... ........16 Number of banks cited...................................................................................................17 Types of, for which banks were cited................................................................. ........17 Unsecured deposits. See Receivership, insured banks placed in. Violations of law or regulations.................................................................................. 16-17 W ar: Bank supervision and the w ar.............................................................................. 15-16 Effects of wartime changes on the ba n k s......................................................... 9, 31 Growth in bank assets and deposits................................................................... 9, 31 Overtime pay act of 1943 ................................................................................. 19-20, 46
@FedFRASER