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ANNUAL REPORT
OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION




FOR THE YEAR ENDED
DECEMBER 31,1945




L E T TE R OF T R A N SM IT T A L

F e d e r a l D e p o sit In su r a n c e C o r p o r a tio n

,

Washington D. C., June 18} 1946.

SIRS: 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,
M a p le T . H a r l,

T h e P r e s id e n t o f t h e S e n a te
T

he

Sp e ak er

of




the

H

ou se

of

pro tem
R

e p r e s e n t a t iv e s

Chairman




FEDERAL DEPOSIT INSURANCE CORPORATION

FEDERAL DEPOSIT INSURANCE CORPORATION
N a t io n a l P ress B u il d in g — W a sh in g to n 25, D . C.
F ield B u il d in g — C hicago 3, I llin o is

BO ARD OF D IR EC TO R S
Chairman ........................................................................................... M aple T . H a r l

( P h illip s L e e G o ld sb o r o u g h
D irectors....................................................................................<
( P reston D e l a n o

OFFICIALS— JUNE 18, 1946
W a sh in g t o n 25, D . C.

Secretary........................................................................................Miss E. F. Downey
Executive O fficer.......................................................................... Henry W . Riley
Consultant to Board o f D irectors............................................ Nathaniel Dyke, Jr.
Assistant to Chairman...............................................................Lyle L. Robertson
Special Assistant to Chairman............................................... J. Forbes Campbell
Assistant to D irector...................................................................Albert G. Towers
Solicitor..........................................................................................James M . Kane
Chief, Division o f E xam ination..............................................Vance L. Sailor
M utual Savings Bank A dviser................................................Raymond T . Cahill
Special Assistant to Board of Directors,
{Federal Credit Union S ection)......................................C. R. Orchard
Chief, D ivision o f Research and Statistics........................... Homer Jones
Director o f P ersonn el................................................................. Carl W . Satterlee
Chief, Service D ivision .............................................................. Henry T . Ivey
Librarian.......................................................................................Miss Amy Dene Early

Chicago 3, Illin o is
Chief j Division o f Liquidation ......................................................................... Wheeler McDougal
Fiscal A g en t................................................................................. W . G. Loeffler
Chief, Audit D ivision................................................................ Mark A. Heck




DISTRICT OFFICES
D is t .

N o.

S u p er v is in g
E x a m in e r

A ddress

S t a t e s in d istrict

1. Leo J. Carr
(Acting)

Room 765, No. 10 Post
Square, Boston 9, Mass.

Maine, New Hampshire,
Vermont, Massachusetts,
Rhode Island, Connecticut

2. Neil G. Greensides

Room 1900, 14 Wall Street,
New York 5, N . Y .

New York, New Jersey,
Delaware

3. Leon F. Stroefer

City National Bank
Building, 20 East Broad
Street, Columbus 15, Ohio

Ohio, Pennsylvania

4. Lundie W . Barlow

909 State Planters Bank &
Trust Company Building,
Richmond 19, Va.

District of Columbia, Mary­
land, Virginia, West Vir­
ginia, North
Carolina,
South Carolina

5. W . Clyde Roberts

625 First National Bank
Building, Atlanta 3, Ga.

Georgia, Florida, Alabama,
Mississippi

6. E. R. Gover
(Assistant)

1059 Arcade Building,
St. Louis 1, Mo.

Kentucky, Tennessee,
Missouri, Arkansas

7. Raby L. Hopkins

715 Tenney Building
Madison 3, Wis.

Indiana, Michigan,
Wisconsin

8. Carol L. Pitman

741 Federal Reserve Bank
Building, 164 W . Jackson
Blvd., Chicago 4, 111.

Illinois, Iowa

9. Rollin O. Bishop

1200 Minnesota Building,
St. Paul 1, Minn.

Minnesota, North Dakota,
South Dakota, Montana

10. Gerhard F. Roetzel

901 Federal Reserve Bank
Building, Kansas City 6,
Missouri

Nebraska, Kansas,
Oklahoma, Colorado,
Wyoming

11. Linton J. Davis

Federal Reserve Bank
Building, Station K ,
Dallas 13, Tex.

Louisiana, Texas,
New Mexico, Arizona

12. William P. Funsten

Suite 1120, 315 Montgomery
Street, San Francisco 4,
Calif.

Idaho, Utah, Nevada,
Washington, Oregon,
California










CONTENTS
Page

3

Summary.

P A R T ONE
O PERATIO N S AN D POLICIES OF TH E C O R PO R ATIO N
Deposit insurance risk............................................................................................................
Adequacy of banking services..............................................................................................
General economic policy........................................................................................................
Deposit insurance protection................................................................................................
Supervisory activities.............................................................................................................
Legal developments.................................................................................................................
Organization and financial statements of the Corporation........................................

7
10
12
14
21
26
28

PAR T T W O
B A N K IN G DEVELOPM ENTS
Banks and branches................................................................................................................
Assets, deposits, and capital accounts..............................................................................
Earnings of insured commercial banks.............................................................................

37
39
51

P AR T THREE
SU R VE Y OF DEPOSITS IN INSURED B A N K S, 1945
Survey of deposits in insured banks, 1945.......................................................................
Deposits in insured commercial banks..............................................................................
Deposits in insured mutual savings banks......................................................................

63
66
69

P AR T FOUR
LEG ISLATIO N
Federal legislation relating to insured banks or the Corporation............................
State banking legislation.......................................................................................................

83
89

PAR T FIVE
S T A TISTIC S OF B AN K S AND DEPOSIT IN SU RAN CE
Number, offices, and deposits of all operating banks..................................................
Assets and liabilities of operating banks..........................................................................
Exam ined evaluation of insured commercial banks...................................................
Earnings, expenses, and dividends of insured banks...................................................
Deposit insurance disbursements........................................................................................




ix

94
108
120
126
140

LIST OF CHARTS
Page
Organization chart of the Federal Deposit Insurance Corporation........................

iv

Map: Federal Deposit Insurance Corporation districts.............................................

vii

A.

F D IC payments of insured deposits, recoveries, and estimated losses
Cumulative from January 1, 1934, to December 31, 1945...............................

B.

FD IC advances to facilitate mergers, recoveries, and estimated losses
Cumulative from August 23, 1935, to December 31, 1945...............................

19

C.

United States Government obligations held by all banks 1914-1945............

41

D.

Ratios of total capital accounts to total assets and to total assets other than
cash and TJ. S. Government obligations
A ll commercial banks 1875-1945 .............................................................................

48

E.

Rates of net profits and of cash dividends on total capital accounts
National banks, 1870-1945......................................................................................

58

F.

Number of insured commercial banks grouped by amount of deposits, 1934,
1941, 1945..........................................................................................................................

65

G.

Percentage increase in deposits of insured commercial banks, September 24,
1941, to October 10, 1945.............................................................................................

68

18

L IS T O F T A B L E S
P AR T ONE
OPERATIONS AND POLICIES OF TH E CO RPOR ATIO N
A d eq u acy of b a n k in g s e r v ic e s :

1.

Number of banks and branches, insured commercial banks, December
31,1935-1945.........................................................................................................

11

D eposit in su r an c e p r o te c tio n :

2.

Disbursements by the Corporation to protect depositors in insured
banks placed in receivership or merged with the financial aid of the
Corporation, 1934-1945......................................................................................

15

3.

Number of depositors, amount of deposits, recoveries, and losses in
insured banks placed in receivership or merged with the financial aid
of the Corporation, 1934-1945.........................................................................

16

4.

Payment by the Corporation and receivers of deposits in insured
banks placed in receivership, 1934-1945.......................................................

17

5.

Disbursements to protect depositors, recoveries, and losses by the
Corporation from insured banks placed in receivership or merged with
its financial aid, 1934-1945................................................................................

19

S u per viso r y a c t iv it ie s :

6.

Action to terminate insured status of banks charged with engaging in
unsafe or unsound practices or violations of law or regulations, 19361945...........................................................................................................................

22

7.

Actions by the Federal Deposit Insurance Corporation on applications
from banks for admission to insurance, 1935-1945...................................

23

8.

Actions by the Federal Deposit Insurance Corporation on applications
for approval of establishment or continued operation of branches,
1935-1945................................................................................................................

24




x

LIST OF T A B L E S

xi

Page
O rganization

and financial statements of the corporation :

9.

Officers and employees of the Corporation, December 31, 1945..........

29

10.

Income and expenses of the Federal Deposit Insurance Corporation,
calendar year 1945...............................................................................................

31

11.

Income and expenses of the Federal Deposit Insurance Corporation
since beginning operations................................................................................

32

12.

Assets and liabilities of the Federal Deposit Insurance Corporation,
1934-1945................................................................................................................

32

13.

Assets and liabilities of the Federal Deposit Insurance Corporation,
December 31, 1945, June 30, 1945, and December 31, 1944.................

33

PAR T T W O
B A N K IN G D EVELOPM ENTS
B anks

and branches :

14.

Number of operating banks and branches in United States and pos­
sessions, December 31, 1941-1945...................................................................

37

15.

Number of insured and noninsured banks in the United States and
possessions, 1941-1945.........................................................................................

38

16.

Changes in the number of insured banks in the United States and
possessions, 1936-1945.........................................................................................

38

17.

Changes among branches of insured banks, 1936-1945...........................

39

A ssets,

deposits, and capital accounts :

18.

Assets and liabilities of all banks in the United States and possessions

40

19.

Comparison of bank holdings of United States Government obliga­
tions in two world war periods........................................................................

42

20.

Assets and liabilities of all commercial banks............................................

43

21.

Change in loans and discounts of insured commercial banks...............

44

22.

Maturities of United States Government obligations, direct and
guaranteed, held by insured commercial banks, 1945, 1944, and 1941.

45

23.

Increase in deposits in all commercial banks during 1945.....................

46

24.

Change in capital accounts of insured commercial banks......................

47

25.

Substandard asset ratios of insured commercial banks examined in
1939-1945................................................................................................................

49

26.

Distribution of insured commercial banks according to ratio of fixed
and substandard assets to adjusted capital accounts, examinations in
1944 and 1945........................................................................................................

50

27.

Assets and liabilities of all mutual savings banks. , ................................

51

E arnings

of insured commercial b a n k s :

28.

Earnings, expenses and profits of insured commercial banks, 1934194 5

52

29.

Amounts and rates of income received and interest paid by insured
commercial banks, 1934-1945...........................................................................

53

30.

Average number and average salary of employees of insured com­
mercial banks, 1941-1945...................................................................................

54

31.

Rates of charge-offs on assets of insured commercial banks, 1934-1945

56

32.

Rates of net profits, before and after income taxes, and of cash divi­
dends to average total capital accounts, all insured commercial banks,
1934-1945................................ ................................................................................

57

33.

Percentage distribution of insured commercial banks according to
rate of net profits on total capital accounts, 1938, 1942-1945..............

59




LIST OF TA BLE S

x ii

PA R T TH REE
SU R VE Y OF D EPO SITS IN INSURED B A N K S, 1945
S u r v e y of deposits in in su r ed b a n k s , 1945

34.

Insurance protection with a maximum coverage of $5,000 in all
insured banks, special call dates, 1934-1945...............................................

35.

Page

Number of insured commercial and mutual savings banks, October 10,

1945
Grouped

63

by population of center in which located....................................

64

36.

Number of insured commercial banks, special call dates, 1934-1945
Grouped by amount of deposits.....................................................................

66

37.

Accounts and deposits in insured commercial banks, October 10, 1945,
and September 24, 1941
Grouped by size of account..............................................................................

67

38.

Percent of total number of accounts with balances of $5,000 or less,
special call dates, 1934-1945
Insured commercial banks grouped by amount of deposits....................

69

39.

Percent of deposits insured with a maximum coverage of $5,000,
special call dates, 1934-1945
Insured commercial banks grouped by amount o f deposits....................

69

40.

Accounts and deposits in insured mutual savings banks, October 10,
1945, and September 24, 1941
Grouped by size of account.............................................................................

71

41.

Distribution of accounts according to size, October 10, 1945
Insured commercial banks grouped by class, amount of deposits, popu­
lation of center in which located, and percent of deposits insured. . . .

74

42.

Distribution of deposits according to size of account, October 10, 1945
Insured commercial banks grouped by class, amount o f deposits, popu­
lation of center in which located, and percent of deposits insured. . . .

75

43.

Distribution of accounts according to size, October 10, 1945
Insured commercial banks grouped by State..............................................

76

44.

Distribution of deposits according to size of account, October 10, 1945
Insured commercial banks grouped by State..............................................

77

45.

Distribution of accounts according to size, October 10, 1945
Insured mutual savings banks grouped by amount of deposits, popu­
lation of center in which located, and State................................................

78

46.

Distribution of deposits according to size of account, October 10, 1945
Insured mutual savings banks grouped by amount of deposits, popu­
lation o f center in which located, and State................................................

79

PAR T FIVE
STA TISTICS OF BAN KS AND DEPO SIT INSURANCE
N u m b er , o ffices , an d deposits of a l l oper atin g b a n k s :

Explanatory note...............................................................................................................

95

101.

Changes in number and classification of operating banks and branches
in the United States and possessions during 1945....................................

96

102.

Number of operating banks and branches, December 31, 1945
Grouped according to insurance status and class of bank, and by State
and type o f office................................................................................................

98

103.

Number and deposits of operating commercial and mutual savings
banks, December 31, 1945
Banks grouped according to insurance status and by district and State

106




L IST OF T A BLE S

x iii

Page
A ssets

and liabilities of operating b a n k s :

Explanatory note...............................................................................................................

109

104.

Summary of assets and liabilities of operating banks in the United
States and possessions, June 30, 1945
Banks grouped according to insurance status and type of bank...........

110

105.

Summary of assets and liabilities of operating banks in the United
States and possessions, December 31, 1945
Banks grouped according to insurance status and type o f bank...........

Ill

106.

Assets and liabilities of operating insured commercial banks, Decem­
ber 31, 1945, June 30, 1945, and December 30, 1944..............................

112

107.

Summary of assets and liabilities of operating banks in the United
States and possessions, 1943-1945
Banks grouped according to insurance status and by type of bank. . .

114

108.

Assets and liabilities of operating insured commercial banks, call
dates, 1940-1945....................................................................................................

116

109.

Percentage distribution of assets and liabilities of operating insured
commercial banks, call dates, 1940-1945......................................................

117

110.

Assets and liabilities of all operating banks in the United States and
possessions, December 31, 1945
Banks grouped by district and State............................................................

118

E xaminers ’

evaluation of insured commercial ban k s :

Explanatory note...............................................................................................................
111.
112.

121

Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1939-1945...................................................

122

Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1945
Banks grouped according to amount o f deposits.......................................

124

E arnings ,

expenses , and dividends of insured ban k s :

Explanatory note...............................................................................................................

127

113*

Earnings, expenses, and dividends of insured commercial banks, 1934,
1941-1945................................................................................................................

128

114.

Ratios of earnings, expenses, and dividends of insured commercial
banks, 1934, 1941-1945.......................................................................................

130

115.

Earnings, expenses, and dividends of insured banks, 1945
B y class o f bank................................................................................................

132

116.

Ratios of earnings, expenses, and dividends of insured banks, 1945
B y class o f bank................................................................................................

134

117.

Earnings, expenses, and dividends of insured commercial banks
operating throughout 1945
Banks grouped according to amount o f deposits.......................................

136

118.

Ratios of earnings, expenses, and dividends of insured commercial
banks operating throughout 1945
Banks grouped according to amount of deposits.......................................

138

D eposit

insurance disbursements :

Explanatory note...............................................................................................................
119.

Disbursements by the Federal Deposit Insurance Corporation to
protect depositors; number and deposits of insured banks placed in
receivership or merged with the financial aid of the Corporation,
1934-1945
Banks grouped by class o f bank, year o f disbursement, amount o f
deposits, and State............................................................................................




141

142

xiv

LIST OF T A B L E S

Page
D eposit in su r an c e d isb u r s e m e n t s — Continued

120.

Assets and liabilities of insured banks placed in receivership and of
insured banks merged with the financial aid of the Federal Deposit
Insurance Corporation, 1934-1945
As shown by books o f bank at date o f closing............................................

144

121.

Depositors and deposits of insured banks placed in receivership, 19341945
A s shown by books o f F D IC , December 81, 1945....................................

145

122.

Disbursements to protect depositors, recoveries, and losses by the
Federal Deposit Insurance Corporation from insured banks placed
in receivership or merged with the financial aid of the Corporation,
1934-1945
A s shown by books of F D IC , December 31, 19 4 5....................................

146







SUMMARY




Su m m ar y

No bank failed in the United States in 1945, the twelfth year of Federal
insurance of bank deposits. For the first time in several generations, an
entire calendar year passed in which the country experienced no bank
failures (p. 7). One disbursement of $2 million was made during the year
to protect the depositors in a weak insured bank which was absorbed
by a sound insured bank (p. 14). This favorable record has resulted
primarily from the continued high level of business activity.
Potential liabilities of the Corporation continued to increase rapidly
during the year. Deposits of insured banks rose 17 percent to $158
billion (p. 32). A survey of deposits in insured banks in the fall of 1945
showed that 46 percent of these deposits were covered by the provision
for a $5,000 maximum insurance for each depositor. Of the 92 million
accounts reported, 96.4 percent had balances of $5,000 or less (p. 63).
The capital of the Corporation together with the surplus which has
been accumulated over the past 12 years amounted to $929 million at
the close of the period or 59/100 of 1 percent of the total deposits of
insured banks. The Corporation proposes that provision be made for
repayment of the $289 million originally provided the Corporation by
Congress (p. 8).
Earnings and profits of insured commercial banks were higher than in
many years. Net profits amounted to 11 percent of the total capital ac­
counts of the banks (p. 57). Dividends remained fairly stable and were paid
at an average rate of 3.3 percent on total capital accounts. The capital
funds of commercial banks were increased 8.4 percent during the year and
amounted to 5.5 percent of the total assets of these banks at the end of 1945.




3




PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION







D e p o s it

In su ran ce

R is k

For the first time in three quarters of a century the banking system of
this country has operated for an entire calendar year without a failure.
While 245 insured banks have been placed in receivership since 1934 and
90 noninsured banks have failed, the number of bank failures has de­
clined steadily since 1937. The number of receiverships amounted to 9
in 1941, 9 in 1942, 4 in 1943, and 1 in 1944. Since the beginning of its
operations the Corporation has extended financial aid to 153 other
insured banks in order to facilitate mergers (including consolidations,
and sales with assumption of liabilities) of weak banks with sound
institutions. However, the need for such aid has also declined since 1940.
In each of the years 1943, 1944, and 1945 there was only one such ex­
tension of aid.
The decline in the number of banks experiencing financial difficulties
is to be ascribed primarily to the highly liquid state of bank assets,
increases in prices, full business activity, and the absence of any adverse
shifts of deposits. Admittedly this experience of the past few years is
both interesting and gratifying, but it does not throw any light on the
liabilities which the Corporation may incur in the future. Prices will not
always rise, employment and business activity will not always increase,
and a time may again come when this Corporation will be required to
aid a substantial number of banks.
Corporation funds and potential liabilities. The potential liabilities
of the Corporation have been increasing rapidly during this period of
declining failures. Total deposits of all insured banks amounted to $158
billion at the end of 1945 as compared with $57 billion at the end of 1939,
an increase of 173 percent. The amount of deposits covered under the
$5,000 maximum insurance of the Corporation has also shown a striking
growth. About $24 billion of deposits were covered in 1939, while it is
estimated that $66 billion of deposits came within the $5,000 insurance
limit at the end of 1945. Both the public interest and the welfare of this
Corporation are served by the extension of aid to effect mergers in a large
proportion of the cases of insured banks in difficulties. Since this method
of providing deposit insurance protection covers all deposits, the total
deposit figure may be more significant than the insured deposits as a
measure of the Corporation’s potential liabilities.
The total capital and surplus of the Corporation have not increased
proportionately as fast as have deposits of insured banks. The capital and
surplus of the Corporation on December 31, 1945, reached $929 million,
an amount equal to 59/100 of 1 percent of the deposits of all insured
banks. This ratio has declined steadily during the war and at the close
of 1945 was at the lowest point in the Corporation’s history. The peak
ratio was 83/100 of 1 percent at the end of 1938.




7

8

FE D E R A L DEPOSIT IN SU R AN C E CORPORATION

In examining these factors which bear upon the adequacy or inadequacy
of the deposit insurance fund, it is worthwhile to note that the Cor­
poration has several single risks which exceed the total funds of the
Corporation. On December 31, 1945, there were 17 banks, each with
deposits in excess of the capital and surplus of the Corporation. The de­
posits of each of 7 banks exceeded the $929 million capital and surplus of
the Corporation plus its maximum statutory borrowing power of approxi­
mately $975 million. The capital and surplus of the Corporation at the
end of 1945 were exceeded by the total deposits less government securities
and cash held by each of 3 banks. These facts indicate that the funds of
the Corporation have not risen to inordinate heights.
It is highly desirable to build up the Corporation’s resources during
periods of high bank earnings so that these funds will be available when
they are needed. As long as the banks are experiencing exceptionally
high profits they are in a position to continue their contribution to the
insurance fund, thus assuring depositors that an ample deposit insurance
fund will be available to meet demands occasioned by a recurrence of
serious banking difficulties.
Before the assessment rate on deposits is reduced, consideration should
be given to the repayment of the $289 million capital originally provided
to the Corporation by act of Congress at the beginning of deposit in­
surance. The amount so provided was necessary at that time to give an
adequate initial insurance fund. The Corporation has now accumulated
a surplus of $640 million. Repayment of the capital originally provided
by Congress would eliminate this subsidy to the banking system and
thereafter the deposit insurance fund would be a mutual fund entirely
contributed by the insured banks.
Capital of insured banks. The degree of protection afforded de­
positors by the capital of the banks is now materially less than in former
years. There has been a downward trend in the ratio of total capital
accounts to total assets of the nation’s banks for at least three quarters
of a century. The ratio for all commercial banks was about 35 percent
in 1875, 27 percent in 1895, 18 percent in 1915, 12 percent in 1925, and
11 percent in 1939. During the war the capital ratio decreased rapidly
as the growth of bank capital failed to keep pace with the rapid increase
in bank assets. On December 31, 1945, the ratio of capital to total assets
of all insured banks was 5.7 percent.
The argument is sometimes advanced that the decline in the capital
ratio has been counterbalanced by a change in the character and quality
of bank assets. One form of this argument is the current emphasis upon
the ratio of bank capital to assets other than United States Government
obligations and cash (including amounts due from other banks). Over
the past five years most of the bank asset expansion went into cash and
Government obligations. Assets other than cash and Government obliga­



D EPOSIT IN SU R AN C E R ISK

9

tions have increased in about the same proportion as bank capital.
Consequently this ratio is now at approximately its prewar level. From
a level of 25 percent at the close of 1939, this ratio rose to a peak of
28 percent in the middle of 1943 and then declined to about 25 percent
at the end of 1945.
Although the ratio of bank capital to assets other than cash and
Government obligations needs to be studied in determining general public
policy, it is not an appropriate standard for the supervision of individual
banks. Bankers may at any time convert a substantial proportion of their
holdings of cash and United States Government obligations into other
types of assets with a resultant decline in the ratio. The ratio, therefore,
is subject to unpredictable fluctuations and for this reason it does not
furnish a satisfactory standard for bank supervision. Furthermore, such
a standard places a premium upon ultra-conservative banking. It would
encourage the banks to freeze their resources in cash and Government
obligations, and thus they might be unable to satisfy the legitimate
credit needs of their communities. As a result it might become necessary
for the Government to assume the responsibility for financing private
business enterprise. This Corporation wishes to see the banks so organized
that they can meet the needs of their communities without recourse to
Government assistance.
The use of the ratio of capital to assets other than Government obliga­
tions and cash as a standard focuses attention upon only part of the qualita­
tive picture with respect to bank assets. Other types of bank assets vary
significantly in quality. Some loans are guaranteed in whole or in part
by Federal agencies so that risk of loss is almost completely eliminated.
Many non-measurable factors are also of profound significance in de­
termining risk of bank loss. Quality of bank management, economic
situation of the community, character of a bank’s clientele, all play a
major role in a given bank’s situation. However, it has not been found
practicable to devise a formula which would take into account all these
factors.
Irrespective of the quality of bank assets, capital is required to protect
depositors against unforeseeable losses. The quality of bank assets is
susceptible to rapid and substantial change. Even with the most careful
supervision there remains an irreducible minimum of uncertainty and
bank capital must be provided as a protection against this uncertainty.
Not only is bank capital required as a cushion against future asset
depreciation no matter how high the quality of assets, but the require­
ment should be determined by a uniform rule. Banks and the public are
assured of equitable treatment only when the many officials making
decisions about thousands of banks are obliged to follow known and
uniform rules of administration. Such rules may sometimes seem arbitrary
but they are necessary in a Government based upon law. The selection



10

FE D E RA L DEPOSIT IN SU R AN C E CORPORATION

of minimum ratio of capital to total assets provides a standard of capital
adequacy that is familiar and can be applied without difficulty to all
banks.
This problem of minimum bank capital standards is of great interest
to the bankers as well as to the depositors and the general public. Banks
cannot serve the credit needs of their communities unless their capital
funds are adequate. Maintenance of a really substantial private invest­
ment in the banks is necessary in order to insure the perpetuation of a
free enterprise banking system.
Enforcement of the traditional 10 percent overall capital ratio would
not be wise at this time because the increase in bank assets over the past
few years has occurred largely in the non-risk category. Furthermore,
there is little likelihood that loans in the next few years will resume their
prewar relationship to total assets. A standard substantially below the
10 percent ratio would for the time being seem to be justified. In con­
nection with the establishment of such a standard, the present average
ratio of capital to total assets of all commercial banks of between 5 and
6 percent seems relevant. Banks with capital ratios below this average
should certainly not be permitted to retire preferred stock without a
corresponding increase of common capital. Banks applying for insurance
should be required to have a capital ratio in line with anticipated future
asset volume. Operating banks with capital below this should be urged
by every reasonable means to add to their capital accounts.
New banks should not be permitted to start operations with a capital
which promises to result in a capital ratio below the general level of the
capital ratios of other banks in the same region. Currently operating
banks, the capital ratios of which are far below the average for the
country or their section, should add to their capital funds. There are of
course special cases in which relief from established standards can properly
be granted because of temporary conditions.
The Corporation is particularly interested that the banks shall retire,
and replace with common stock, the preferred stock held by the Re­
construction Finance Corporation. This stock was issued in an emergency
when banks were working their way out of a great catastrophe. That
emergency is over. Bank profits are high. Therefore it is most desirable
that private capital supplant Government advances and the banking
system be vested entirely in the hands of private investors.
A dequacy

of

B a n k in g Se r v ic e s

Growth in number of banks. The number of new banks chartered
in 1945 was greater than in other recent years. A total of 122 commercial
banks were admitted to deposit insurance, of which 101 were new banks.
For the first time since the inception of deposit insurance the number of



11

A D E Q U A C Y OF B A N K IN G SER V IC E S

commercial banks admitted exceeded the number which dropped out of
the deposit insurance system through merger, liquidation, or suspension.
The net increase in the number of insured commercial banks during the
year was only 34.
There was also a net increase of 21 in the number of branches of insured
commercial banks in 1945. It is significant that the number of branches
has increased each year since the beginning of deposit insurance. Sub­
stantial increases in 1943 and 1944 were due chiefly to the establishment
of a large number of facilities at military camps, hospitals, bases, and
defense plants to provide check cashing and deposit services to military
personnel and defense workers. These facilities were intended only as a
wartime expedient and during the latter part of 1945 a large number of
them were liquidated.
As of December 31, 1945, there were 17,198 insured commercial banking
offices, including the facilities. This total was the highest since the end
of 1936. The number of insured commercial banks and branches at the
close of each year is shown in Table 1.
T a b le 1.

N u m b er of B a n k s a n d B ra n c h e s , I n su red C o m m ercial B a n k s
D e c em b er 31, 1935-1945
Year

[ offices

Banks

Branches

1945
1944
1943
1942
1941

17,198
17,143
17,018
16,902
16,947

13,302
13,268
13,274
13,347
13,430

3,896
3,875
3,744
3,555
3,517

1940
1939
1938
1937
1936
1935

16,931
16,994
17,073
17,178
17,234
17,237

13,442
13,538
13,661
13,797
13,973
14,125

3,489
3,456
3,412
3,381
3,261
3,112

Adequately capitalized banks with good management should be
chartered whenever those banks will meet a need in the communities in
which they will be established. After a period of decline in the number of
banks such as has occurred in the last 25 years, there are some oppor­
tunities for the establishment of banks on a sound and profitable basis.
In the establishment of new banks, private enterprise should be permitted
free play within the limits now provided by State and Federal law. In
granting insurance the Corporation is required to take account of the
following factors as stated in the Federal deposit insurance law:
“ The financial history and condition of the bank, the adequacy of
its capital structure, its future earnings prospects, the general character
of its management, the convenience and needs of the community to
be served by the bank, and whether or not its corporate powers are
consistent with the purposes of this section.”



12

F E D E R A L DEPOSIT IN SU R AN C E C O RPORATION

Continuity of banking service. The power given to the Corporation
by Congress in 1935 to make loans and purchase assets in order to facilitate
mergers of weak insured banks with strong insured banks has proven to
be most desirable both from the standpoint of the Corporation and from
the standpoint of the depositors and communities involved. Under the
use of the merger procedure, customers of a weak insured bank suffer no
disruption of banking service and the shock to the economic life of the
community resulting from banking difficulties is reduced to a minimum.
The use of this optional provision of law protects all the deposits in the
weak bank thus eliminating fear and uncertainty on the part of depositors
both large and small. The Corporation also benefits because it can hold
the assets acquired in the process of facilitating a merger until such time
as they can be disposed of most advantageously. Such assets may be held
until their sale will not upset or in any way disrupt the economic stability
of the community. Consequently, the procedure of making advances to
facilitate a merger provides in many ways a more flexible and advan­
tageous method of liquidating the affairs of a weak or insolvent insured
bank than does placing it in receivership.
In order that continuity of banking services may be provided in
appropriate cases without merger, need exists for some changes in the
powers of the Corporation. At times a merger reduces bank competition
or creates a monopoly. In some cases of banks in financial difficulties there
is no other bank with which a merger can practically be effected. Some
means should be provided for maintaining continuity of banking service
where there is every indication that, even though the bank is in financial
difficulties, a need for banking facilities in the community and the op­
portunity for profitable operation continue to exist. The suggestion of
the Corporation in this regard has been previously stated as follows:
“ It is . . . suggested that subsection (e) of the Federal deposit
insurance law which provides for the organization of new national
banks be amended so that such a bank will be able to provide the
community with a complete banking service during a temporary
period not in excess of two years, and will be empowered to transfer
its business to a suitably capitalized, privately owned and managed
State or national bank sometime during the 2-year period. If no
acceptable privately capitalized bank takes over the business of the
Deposit Insurance National Bank, it would be liquidated at the end
of the 2-year period.” 1
G

eneral

E c o n o m ic P o l i c y

The Corporation was established on the basis of a philosophy that the
country can avoid both rigid Government control of business and economic
gyrations such as might result in an epidemic of bank failures. If it were
1 Annual Report for 1944, p. 10.




ECONOMIC POLICY

13

assumed that the banking system would be rigidly controlled by the
Government so that no bank failures could occur, there would be no
need for deposit insurance. On the other hand the Corporation can
operate successfully within the financial limits provided by the present
law only if the economic and financial affairs of the nation are conducted
in such a manner as to avoid serious epidemics of bank failures. It is
therefore incumbent upon the Corporation to foster measures designed
to prevent any stultification of free enterprise in the field of banking
as well as to cooperate in the prevention of any business and economic
developments which might lead to economic crises so great that the
Corporation could not fulfill its obligations.
The Corporation will continue its efforts to improve banking practices
and to encourage banks to meet the needs of our economy. Preventing
further deterioration of bank capital in relation to bank assets is only one
of the necessary steps. Monopoly in the banking business must be care­
fully guarded against. Only under competitive conditions will the banking
system satisfactorily discharge its function of allocating credit to those
who can make the most efficient use of it. Furthermore, the development
of monopolistic practices in the banking system contributes to the
demand for increased lending activity on the part of the Government, a
trend which could easily threaten the existence of our private banking
system. Under present conditions the banks are able and anxious to make,
both to business and to consumers, loans which are economically
sound. At some future time when the demand for goods and services may
become less than the supply, Government guarantee of bank credit and
Government lending activities may be needed. That condition does not
prevail at the present time.
The interest of the Corporation in the continued stability of our
economy is, of course, obvious. In the past, periods of serious banking
difficulties with large losses to depositors have coincided with severe
periods of business depression. Deposit insurance itself now contributes
and will continue to contribute to the prevention of epidemics of bank
failures. Nevertheless, the banking system must be always on guard
against economic developments which may lead to protracted business
depressions with serious repercussions upon the condition of the banks.
The Corporation is interested that everything possible may be done to
maintain a reasonably high and stable level of business activity and
employment.
Immediate economic problem. The immediate problem of concern
to the Corporation is the question of how the transfer from war to a
peacetime economy can be completed without either crashing into deep
economic depression or experiencing a disruptive inflation. As the war
drew to a close and ended, it appeared that the greatest economic danger
was one of unemployment, declining income, and business failures. In



14

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

large measure subsequent events indicated, however, that the basic trend
was one of inflation rather than deflation. The public is in possession of a
large volume of liquid assets; there is a tremendous demand for goods;
and the immediate problem is one of inadequate production or excessive
demand rather than of unemployment. This Corporation recognizes that
the most important objective for the time being is to prevent any further
increase in the liquid funds of the public as long as those funds which the
public desires to spend exceed the available supply of goods.
There can be no objection to the creation of whatever quantity of bank
credit is required to meet the needs of the public under conditions of high
employment at stable prices. However, sound public policy should not
permit creation of a volume of credit which would promote inflationary
price rises and lead to maladjustments harmful to the general public and
to the deposit insurance system. In order that price control may be
gradually eliminated, it is necessary that the potentialities of bank credit
expansion be kept under control.
D

e p o s it

I n s u r a n c e P r o t e c t io n

During 1945 no insured bank was placed in receivership and only one
bank received an advance from the Corporation to protect its depositors.
When this weak bank was merged with a newly established insured bank,
its depositors with balances aggregating nearly $6 million experienced no
loss, not even the inconvenience of a break in banking services. The
Corporation advanced about $2 million which, with the acceptable assets
taken over by the absorbing bank, fully covered the liabilities assumed.
Methods of protecting depositors. The Federal Deposit Insurance
Corporation during its 12 years of operation has used two procedures in
fulfilling its responsibility to protect bank depositors from loss. It has
paid depositors up to the $5,000 maximum in insured banks placed in
receivership and has made advances to facilitate mergers of weak insured
banks with strong institutions. Table 2 shows by years the use which
has been made of each method of protecting depositors.
Whenever the Corporation is notified by the Comptroller of the Cur­
rency or by a State bank supervisory authority that an insured bank has
been closed on account of inability to meet the demands of its depositors,
preparations are made to pay depositors up to the $5,000 maximum
provided by law. Payments are started as soon as records can be verified
to establish the amount of the claims, usually in a week or ten days after
the closing of a bank. A letter is sent to each depositor urging that claims
be filed promptly and explaining the simple procedure to be followed;
notices are also printed in the local newspapers. Unless the insured
deposit is claimed within 18 months, after appropriate notice, the right
of the depositor against the Corporation is barred.



15

D EPOSIT IN SU R AN C E P R OTECTION

Under the Banking Act of 1935 the Corporation was also given the
power to make advances to facilitate the merger or consolidation (includ­
ing sale with assumption of liabilities) of an insured bank with another
insured bank. This power may be used only when such action will reduce
the risk or avert a threatened loss to the Corporation. In affecting a con­
solidation, acceptable assets of the merging bank are transferred to the
absorbing bank and the Corporation makes available enough cash so that
the amount of the assets and the cash equals the amount of liabilities as­
sumed by the absorbing bank. When the transaction is completed, the
Corporation sends a letter to each depositor explaining what has happened.
There is no interruption in banking service to depositors or customers of
either bank.

T a b le 2.

D is bu r se m e n t s b y th e C orpo ratio n to P rotect D epositors in

I nsu re d B a n k s P laced in R e c e iv e r s h ip or M er ged w it h th e
F in a n c ia l A id of t h e C o rpo r atio n , 1934-1945
Number of banks
Year
Total

Placed in
receiver­
ship

Amount of disbursements
(in thousands of dollars)

Merged

Total

Loans made
Insured
deposits paid and assets
in receiver­
purchased
in mergers
ships

T o ta l...............................

398

245

153

$261,717

$87,024

$174,693

1945.............................
1944.............................
1943.............................
1942.............................

1
2
5
20

1
4
6

1
1
1
14

1,768
1,498
7,171
10,910

399
5,499
1,612

1,768
1,099
1,672
9,298

1941.............................
1940.............................
1939.............................
1938.............................

15
43
60
74

8
19
32
50

7
24
28
24

23,880
74,352
67,793
30,479

12,278
4,893
26,185
9,087

11,602
69,459
41,608
21,392

1937.............................
1936.............................
1935.............................
1934.............................

75
69
25
9

50
42
24
9

25
27
1

19,203
14,831
8,890
942

12,046
8,058
6,025
942

7,157
6,773
2,865

From 1935 to 1940 an advance was usually made by the Corporation
through the extension of a loan to the merging bank secured by the
unacceptable assets. More than 100 such loans were made. When a loan
was being made, outright purchase of assets was resorted to if pledging
the assets would delay their liquidation. Also, near the close of a liquida­
tion assets were purchased outright in order to facilitate the termination
of the transaction, to permit the holding for a more favorable market of
a few assets which had proved difficult to sell, and to end the payment of
interest on the balance of the loan. In more than 40 cases assets were
purchased in connection with loans. During 1939 and 1940 a new tech­
nique for making advances was developed. Assets were purchased under
an arrangement whereby additional payment was to be made to the



16

F E D E R A L D EPOSIT IN SU R AN C E CORPORATION

selling bank should the liquidation of the assets produce an excess over
the amount of the advance, expenses incident to liquidation, and a return
equivalent to 4 percent. The payment, in the form of an additional cash
purchase price, equals the amount of the excess recovery. This method
has been used exclusively in the mergers which have taken place since
1941.
During the first 12 years of its operation the Corporation protected
over 1,300,000 depositors in 398 insured banks with total deposits of
$505 million. In giving this protection the Corporation made principal
disbursements of $262 million. All of the depositors in the 153 banks
which were merged were fully protected. Only about 3,000 depositors in
the 245 banks placed in receivership will sustain any loss and their loss
will be less than $2.5 million. Data on deposits and depositors in insured
banks placed in receivership or merged with the financial aid of the
Corporation are given in Table 3.
T a b le 3 .

N u m b er of D eposito rs , A m o u n t of D eposits , R e c o v e r ie s , a n d

L osses in I n su re d B a n k s P laced in R e c e iv e r s h ip or M erged w it h
the

F in a n c ia l A id of th e C orpo r atio n , 1934-1945

Item

Banks placed
in
receivership

Total

Banks merged
with financial
aid of FDIC

Number of banks............................................................

398

245

153

Number of depositors................................................

1,309,702

380,511

929.191

1,260,730
3,006

331,539
3,006

929.191

Estimated number with no loss................................
Estimated number with some loss1...........................
Estimated number with claims barred by termina­
tion of insurance or receivership...........................

45,966

45,966

Amount of deposits....................................................

$504,931,000

$109,593,000

$395,338,000

Estimated recovery by depositors............................
Estimated loss by depositors1...................................
Insurance terminated or claims barred....................

502,149,000
2,341,000
441,000

106,811,000
2,341,000
441,000

395,338,000

Disbursement by F D IC ................................................

$261,717,000

$ 87,024,000

$174,693,000

Estimated loss to F D IC ................................................

$ 31,111,000

$ 17,004,000

$ 14,107,000

1 1,612 depositors will lose an estimated $2,299,000 in accounts which exceeded the limit of $5,000
insurance and were not otherwise protected; and 1,394 depositors will lose about $42,000 in accounts
which had been restricted or deferred prior to 1934 or were otherwise ineligible for insurance protection.

Receiverships of insured banks. About 80 percent of the deposits
in insured banks placed in receivership were paid by the Corporation.
Of the remaining 20 percent of deposits a part was fully covered by the
pledge of security or was paid from the first proceeds of the liquidation
because of its preferred status. Some depositors owed money to the bank
and their deposits were offset against these claims. Less than 10 percent
of the deposits were dependent entirely upon a proportionate share of
the proceeds of the liquidation for repayment. Table 4 shows the amount
of deposits which had been paid by the Corporation or by receivers and
the amount remaining unpaid on December 31, 1945.



17

DEPOSIT IN SU R AN C E PROTECTION
T a b le 4 .

P a y m e n t b y t h e C o rpo ratio n a n d R e c e iv e r s op D eposits in
I n su re d B a n k s P laced in R ec e iv e r s h ip , 1934-1945
(Amounts in thousands of dollars)

Status of deposits

Total

Paid by
Dec. 31,
1945

Unpaid on
Dec. 31,
1945

Deposits—t o t a l........................................................................

$109,593

$106,062

$3,531

Insured....................................................................................
Secured, preferred, and subject to offset.............................
In excess of $5,000, not otherwise protected.......................
Other uninsured......................................................................
Insurance terminated or claims barred1...............................

87,136
11,405
9,678
933
441

87,024
11,397
6,750
854
37

112
8
2,928
79
404

Deposits, term inated receiverships—to ta l...................
Insured................................................................................
Secured, preferred, and subject to offset.........................
In excess of $5,000, not otherwise protected...................
Other uninsured..................................................................
Insurance terminated or claims barred1...........................

$53,504
42,421
6,560
4,196
191
136

$52,652
42,421
6,560
3,485
149
37

$852

Deposits, active receiverships— t o t a l.............................
Insured................................................................................
Secured, preferred, and subject to offset.........................
In excess of $5,000, not otherwise protected...................
Other uninsured..................................................................
Insurance terminated or claims barred............................

$56,089
44,715
4,845
5,482
742
305

$53,410
44,603
4,837
3,265
705

$2,679
112
8
2,217
37
305

711
42
99

1 In a few cases payments have been made by receivers on deposits on which insurance had terminated
either directly to the depositors or into a trust to meet claims presented after termination of receiverships.

The Corporation not only pays insured deposits in banks placed in
receivership, but also acts as receiver for all national banks and may be
appointed receiver for closed State banks. As receiver it has handled the
liquidation of closed insured State banks in Colorado, Florida, Louisiana,
Michigan, Mississippi, North Carolina, North Dakota, Ohio, Oklahoma,
South Dakota, Vermont, and West Virginia. There is legal authority for
the appointment of the Corporation as receiver or liquidator in all but
the following States: Connecticut, Indiana, Iowa, Maryland, Missouri,
Rhode Island, and Virginia. In the past 12 years the Corporation has
served as receiver for 21 national and 56 State banks and has been kept
informed on the progress of the liquidation of the 168 State banks for
which it was not receiver.
At the close of 1945 the Corporation was receiver for 8 national banks
with deposits at closing of $10 million and for 9 State banks with deposits
of $6 million. By agreement with State bank authorities the Corporation
obtained during the year quarterly reports from the receivers or liquidators
of the 33 State banks in which deposit insurance payments had been
made, but for which the Corporation was not receiver. These 33 banks
had deposits of $40 millon.
In order to reduce the expenses of liquidation and to assist in the
termination of receiverships, the Corporation under competitive bidding
arrangements sometimes buys the last remaining assets from the receiver.
At the end of 1945, $1.2 million had been disbursed to purchase assets
from the receivers of 65 banks. Most of these assets had been sold by the
Corporation without a net loss.



18

FE D E RA L D EPOSIT IN SU RAN CE CORPORATION

By December 31, 1945, the Corporation had recovered $66 million of
the $87 million which had been paid to depositors in insured banks in
receivership. It was estimated that about $4 million additional would be
recovered and that losses would amount to $17 million. In addition,
interest amounting to a quarter of a million dollars had been paid to the
Corporation on subrogated claims. Chart A shows the total amount of
insured deposits which had been paid, the recovery on subrogated claims,
and the estimated amount of losses at the end of each year, 1934-1945.
Table 5 presents disbursements, recoveries, and losses of the Corporation
from insured banks placed in receivership and merged with its financial
aid through December 31, 1945.
Advances to facilitate mergers. Since August 23, 1935, the Cor­
poration has made advances in connection with 153 banks which have
been merged. These 153 banks at the date of their respective mergers
showed on their books assets amounting to $444 million. The successor
banks were willing to accept $220 million of these assets considered
suitable for bank investment. To protect the $395 million of deposits in
these banks the Corporation advanced $175 million. Chart B shows the
total amount of advances which had been made, total recoveries, and the
estimated amount of losses at the end of each year from 1935 to 1945.

CHART A
FDIC PAYMENTS OF INSURED DEPOSITS,
RECOVERIES, AND ESTIMATED LOSSES
CUMULATIVE FROM JAN. 1, 1934 TO DEC. 1, 1945
MILLIONS

OF DOLLARS




MILLIONS

OF

DOLLARS

19

DEPOSIT IN SU R AN C E PR O TECTION
T a b le 5.

D is b u r s e m e n t s t o P r o t e c t D e p o s it o r s , R e c o v e r i e s , a n d

L o sse s b y t h e C o r p o r a t io n f r o m I n s u r e d B a n k s P l a c e d in
R e c e i v e r s h ip o r M e r g e d w i t h it s F in a n c ia l A id , 1934-1945
(Amounts in thousands of dollars)
Total

Book entry Dec. 31, 1945

D isbursem en ts.........................................................................
Receiverships..........................................................................
Mergers...................................................................................

$261,717
87,024
174,693

Liquidation
terminated

Liquidation
active

$60,299
42,421
17,878

$201,418
44,603
156,815

$51,776
34,516
17,260

$163,533
31,672
131,861

Estimated additional disbursem ents in receiverships1.

$112

Recoveries..................................................................................
Receiverships..........................................................................
Mergers...................................................................................

$215,309
66,188
149,121

$112

Estimated additional recoveries.........................................
Receiverships..........................................................................
Mergers...................................................................................

$15,409
3,944
11,465

Losses by FDIC2.......................................................................
Receiverships..........................................................................
Mergers....................................................................................

$31,111
17,004
14,107

$8,523
7,905
618

$22,588
9,099
13,489

Num ber of b a n k s....................................................................
Receiverships..........................................................................
Mergers...................................................................................

398
245
153

264
195
69

134
50
84

$15,409
3,944
11,465

1 Estimated additional disbursements in receiverships are the insured deposits which have not been
paid. See Table 4.
2 Losses in terminated cases are the established losses; those in active cases are estimated.

CHART B
FDIC ADVANCES TO FACILITATE MERGERS,
RECOVERIES, AND ESTIMATED LOSSES
CUMULATIVE FROM AUG. 23, 1935, TO DEC. 31, 1945
MILLIONS

OF

DOLLARS




MJLLJONS

CF

DOLLARS

20

FE D E R A L DEPOSIT IN SU RAN CE CORPORATION

As security for repayment of its advances, the Corporation took the
$224 million of assets unacceptable to the successor banks. By December
31, 1945, the Corporation had recovered $149 million of the $175 million
which had been advanced to facilitate mergers. It was estimated that about
$12 million additional would be recovered and that losses would amount to
$14 million. In addition, expenses amounting to $37 million had been met
in the liquidation and interest amounting to almost $1 million had been
received.
Liquidation policies. According to the Federal deposit insurance law
the Corporation must liquidate the assets of a closed bank, with “ due
regard to the condition of credit in the locality” .1 The Corporation, while
observing this directive, seeks to dispose of the assets taken over from
all closed banks with the least possible delay. When acting as the receiver
of a closed bank, the Corporation must consider also the effect of a delay
in recovery upon uninsured creditors. Assets acquired in connection with
mergers may be held for a favorable market without hardship to others
since the Corporation is the only creditor.
The liquidation of loans and discounts depends primarily upon the
financial responsibility and earning capacity of the debtor. The Cor­
poration always tries to give due regard to the circumstances surrounding
each case in order to avoid imposing undue hardship upon any debtor.
When it is apparent that prompt payment in full cannot be made, the
Corporation seeks to work out a program of refinancing or of periodic
repayments. Compromises may be agreed upon when other methods fail.
Legal action to enforce collection of obligations is used only when
necessary.
The sale of securities is handled by a staff in the main office of the
Corporation. This assures the placing of the securities on markets in an
orderly way when a sale is considered advisable. The basic policy is not
to speculate but to be guided by general economic and market conditions
to secure the most advantageous sale possible.
The liquidation of real estate mortgages and real estate owned has
presented special difficulties. However, the market for these assets has
widened and the prices of farm and urban real estate have risen in the
past few years. These factors have aided in the favorable liquidation of
these assets..
In view of the economic conditions prevailing after the crisis of 1933,
the Corporation did not force liquidation in the early years of its operation.
This delay accomplished two objectives: (1) hardship which would have
resulted from the depressing of local markets by forced liquidation was
avoided; and (2) the Corporation, holding for a better market, secured a
1 See subsection (1) (4) of the Federal deposit insurance law, as amended, Title 12, U. S. C., 1940 ed.,
sec. 264.




D E PO SIT IN SU R A N C E P R O TE C TIO N

21

larger recovery. Because of the improved economic conditions accom­
panying the war, the Corporation has followed a program of prompt
liquidation since 1942. An effort was made to place the Corporation in
as liquid a position as possible to enable it to meet any demands which
might arise during the post-war period.
S u p e r v is o r y A c t iv it ie s

Bank examinations. The policy of the Corporation from its establish­
ment has been to examine annualty each insured State bank which is not
a member of the Federal Reserve System. National banks are examined
by representatives of the Office of the Comptroller of the Currency, and
State banks members of the Federal Reserve System by representatives
of that System. The information of the Corporation relating to these
banks is derived from a review of the reports of examination furnished
by those agencies. Only under unusual circumstances, and with the prior
consent of the Comptroller of the Currency or the Board of Governors
of the Federal Reserve System, has the Corporation examined national
banks or State banks members of the Federal Reserve System.
In 1945 the Corporation was again unable to conduct all the examina­
tions called for under its established policy. This was because of con­
tinuation of the reduction in the number of examiners experienced during
all the war years, the considerable time involved in investigating new
bank proposals, and the enlarged examination program resulting from
the admission to insurance of a large number of mutual savings banks in
1943. The number of regular examinations completed, 5,284, was less
than the 6,378 completed in 1944. While this represented examination
of 80 per cent of the number of banks, it is estimated that the program
was actually not over 65 percent completed. The banks not examined
included many of the larger institutions, for the examination of which
it was impractical to assemble the requisite number of examiners.
At the end of the year many of the examining force had not returned
to the Corporation from the armed services. Moreover, during the latter
half of the year, the Corporation received resignations of examiners and
assistants at a higher rate than at any previous time. This was due in
most part to attractive offers by banks for the services of these men. It
is planned to re-establish the examining force by the end of 1946 at a
figure which will thenceforth permit accomplishment of examination
programs according to established policies.
During 1945 the Corporation continued its research in a new technique
of examination of mutual savings banks. This technique embodies
classification and evaluation of assets from a long-term bank investment
perspective with a minimum of dependence accorded current market
values. Basically, the appraisal approach combines and utilizes the



22

FE D E R A L D EPOSIT IN SU R AN C E CORPORATION

principles underlying the uniform securities valuation program, made
effective with respect to insured commercial banks in 1938,1 and a pro­
gram for the gradual reduction in carrying value of “ other real estate
owned” which was made effective in 1941. It is contemplated that the
research in connection with the new examination technique may be
concluded in a short time and that regular examinations of mutual
savings banks on this basis may be initiated some time in 1946.
Unsafe and unsound banking practices and violations of law
or regulations. During 1945 proceedings were initiated against one
insured bank for engaging in unsafe and unsound banking practices and
were continued against five other banks. The bank against which pro­
ceedings were initiated was charged with violation of law by retiring
capital notes without the consent of this Corporation, operation with
inadequate capital, and operation with a management unwilling to
correct the unsafe and unsound condition. Of the five cases pending at
the beginning of the year, corrections were made in one bank and one
was absorbed with the financial aid of the Corporation. The other three
cases and the one initiated during 1945 were pending at the close of the
T
year.
The number of banks charged with unsafe and unsound practices since
the effective date of the Banking Act of 1935, and the disposition of
these cases, are given in Table 6.
T a b le 6 .
w it h

A ction to T e r m in a t e I n su re d S ta t u s of B a n k s C harged

E n g a g in g in U n sa f e or U n so u n d P ractices or V io latio ns
of

L a w or R e g u l a t io n s , 1936-1945

Disposition or status

T otal banks against which action was tak en .................
Cases closed :
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 status.............................................................
Banks continued in operation2..........................................
Banks suspended prior to setting of date of termina­
tion of insured status by Corporation.........................
Banks absorbed or succeeded by other banks:
With financial aid of the Corporation.............................
Without financial aid of the Corporation........................
Cases pending Decem ber 31, 1945:
Corrective program pending.................................................

Total
cases
1936-19451

Pending
beginning
of 1945

131

5

21

Started
during
1945
1

1

7
3
32
60
4.

1

4

3

1

1 No action to terminate the insured status of any 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 One of these suspended 4 months after its insured status was terminated.
Back data—See the following Annual Reports of the Corporation: 1941, p. 188; 1942, p. 13; 1943,
p. 16; 1944, p. 23.

1 For a description of the uniform securities evaluation program, see the Annual Report of the
Corporation for 1938, pages 61-78.




23

SU P E R V ISO R Y A C T IV IT IE S

Approval of banks for insurance. During 1945 the Corporation
approved the applications of 119 banks for admission to insurance. Of
these 86 were new banks, including four which replaced closed banks,
six which succeeded discontinued branches of other insured banks, and
one which succeeded a finance company. The remaining 33 banks ap­
proved for insurance were twenty-one banks or successors thereto which
were operating as noninsured banks at the beginning of the year and
twelve insured banks obtaining new or revised charters or withdrawing
from the Federal Reserve System and applying for insurance as banks not
members of that System. Five applications for admission to insurance
were disapproved because, in the opinion of the Board of Directors, they
did not meet the conditions specified in the deposit insurance law.
The number of banks approved for insurance during the year differs
from the number admitted. In some cases new banks are not opened or
for other reasons insurance does not become effective until the subsequent
year. In a few cases banks alter their plans or do not meet conditions
specified by the Corporation. Banks which are chartered as national
banks, and State banks which are admitted to the Federal Reserve
System, become insured with no action by the Corporation. For changes
in the number of insured banks, see pages 38 and 96.
From August 23, 1935, the beginning of the permanent plan of deposit
insurance, to the end of 1945, the Corporation acted on 1,171 applications
from banks for admission to insurance. Of these, 1,000 were approved,
39 were approved but such approval was later rescinded because the
applicant banks failed to meet conditions specified by the Corporation
or for other reasons did not become insured, and 132 were disapproved.
The figures by years are shown in Table 7.
T a b le 7 .

A c tions b y th e F e d e r a l D eposit I n su r a n c e C orpo r atio n on

A pplications from B a n k s for A d m ission to I n s u r a n c e , 1935-1945
Number of applications1
Year

Approved
(not
rescinded)

Acted
upon

Approved
but later
rescinded

Dis­
approved

1935-1945............................................................

1,171

1,000

39

132

1945..................................................................
1944..................................................................
1943..................................................................
1942..................................................................

124
108
198
51

118
105
190
42

1
2
4
2

5
1
4
7

1941..................................................................
1940..................................................................
1939..................................................................
1938..................................................................

81
67
85
82

78
58
72
67

2
3
« 3
3

1
6
10
12

1937..................................................................
1936..................................................................
1935..................................................................

133
165
77

111
114
45

8
10
1

14
41
31

1 Figures for years prior to 1942 may differ slightly from those given in the Annual Report of the
Corporation for 1941, p. 184, because of later rescissions of cases approved or revision of the data.




24

F E D E R A L D EPOSIT IN SU RAN CE CORPORATION

Approval of establishment of branches. During 1945 the Cor­
poration approved the establishment of 59 branches by insured banks
not members of the Federal Reserve System. Of these, 46 were for the
establishment of new banking offices, including five facilities at military
establishments. The remaining 13 cases related to seven absorbed banks
to be converted into branches, four branches to be established at former
locations of head offices after the relocation of such offices, one branch
to replace a closed bank, and one to replace a branch discontinued by
another bank. The Corporation disapproved two applications for per­
mission to establish branches.
The number of branches established by insured banks differs from the
number approved by the Corporation. In some cases branches are opened
in a subsequent year, and in a few cases the banks change their plans or
fail to meet conditions specified by the Corporation. Approval by the
Corporation is not required for the establishment of branches by national
banks or State banks members of the Federal Reserve System. For
changes in the number of branches of insured banks, see pages 39 and 97.
From August 23, 1935, to the end of 1945, the Corporation acted on
684 applications from banks not members of the Federal Reserve System
for approval of the establishment of branches or for the continued opera­
tion of branches of banks which had been absorbed or operated prior to
admission to insurance or relocation. Of these, 619 were approved, 28
were approved but such approval was later rescinded because the ap­
plicant banks failed to meet conditions specified by the Corporation or
for other reasons did not establish the branch, and 37 were disapproved.
The figures by years are shown in Table 8.
T a b le 8 .

A ctions b y t h e F ed er a l D eposit I n su r a n c e C orporation on

A p plications for A pproval of E s ta b lish m e n t or C o n t in u e d O p e r at io n
of

B r a n c h e s , 1935-1945
Number of applications1

Year

Approved
(not
rescinded)

Acted
upon

Approved
but later
rescinded

Dis­
approved

1935-1945............................................................

684

619

28

37

1945..................................................................
1944..................................................................
1943..................................................................
1942..................................................................

61
49
105
36

59
46
101
32

2
2

2
3
2
2

1941..................................................................
1940..................................................................
1939..................................................................
1938..................................................................

49
44
61
82

46
40
53
71

3
2
3
6

2
5
5

1937..................................................................
1936..................................................................
1935..................................................................

89
93
15

82
80
9

5
5

2
8
6

1 Figures for years prior to 1942 may differ slightly from those given in the Annual Report of the
Corporation for 1941, p. 185, because of later rescissions of cases approved or revision of the data.




SU P E R V ISO R Y A C TIV IT IE S

25

Capital and other financial adjustments. Insured banks examined
by the Federal Deposit Insurance Corporation are required by law to
secure the Corporation’s approval to retire any part of their capital
obligations. Applications for approval of the retirement of capital were
filed by 601 such banks in 1945. Retirement of capital obligations held
by the Reconstruction Finance Corporation aggregating $15,404,000, and
those held by others aggregating $1,940,000, was approved. The Cor­
poration disapproved retirement of capital obligations amounting to
$852,000.
Reports from banks. Semi-annual statements of deposits were
submitted by each insured bank as required by law for the purpose of
determining the amount of the insurance assessment. The Corporation
called for reports of assets, liabilities, and capital accounts as of June 30
and December 30, 1945, and for reports of earnings, expenses, and
disposition of profits for the calendar year 1945, from each insured bank
required by law to submit such reports to the Corporation. The reports
are required from all insured banks not members of the Federal Reserve
System with the exception of banks in the District of Columbia and
Territorial national banks.
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, June 30, 1945, Report No. 23” and “ Assets
and Liabilities, December 31, 1945, Operating Insured Commercial and
Mutual Savings Banks, Report No. 24,” and in Table 106 of this report,
page 112. Summaries of the reports of earnings, expenses, and disposition
of profits are given in Tables 113-118, pages 128-139 of this report.
Federal credit unions. Supervision of Federal credit unions by the
Federal Deposit Insurance Corporation continued throughout 1945. By
Executive Order of the President, No. 9148, of April 27, 1942, all func­
tions, powers, and duties of the Farm Credit Administration under the
Federal Credit Union Act, as amended, were transferred to this Cor­
poration for the duration of the war.1 These cooperative associations,
organized to encourage thrift among their members and to provide a
limited source of credit for productive purposes, are chartered and
examined by the Corporation. Their shares, however, are not insured.
On December 31, 1945, 3,759 Federal credit unions were in operation
and 200 were inactive or in liquidation. During the year 96 charters were
granted to new groups and 185 charters were canceled or revoked at the
completion of the liquidation of credit unions which had ceased operation.
About 2,300 operating credit unions were examined during the year;
shortage of personnel again prevented the examination of all credit
unions within the twelve months.
1
Part VI of Reorganization Plan No. 1 of 1946 which was transmitted by the President to the
Congress on May 16, 1946, provides for the permanent transfer of the administration of the Federal
Credit Union Act to the Federal Deposit Insurance Corporation.




26

FE D E R A L DE PO SIT IN SU R AN C E CORPORATION

Federal credit unions submit statements of operations to the Cor­
poration on June 30 and December 31 of each year, and a summary of
their operations is published annually by the Corporation. The “ 1944
Annual Report of Operations, Federal Credit Unions” was published in
1945.
L egal D

evelopm ents

Except for legislation concerned primarily with monetary control and
Government financing, the 1945 session of Congress did not deal specifi­
cally with the Federal banking laws. Save for the Government Cor­
poration Control Act and the Reorganization Act of 1945, the operations
of the Corporation were not directly affected by legislation enacted
during the first session of the 79th Congress.
G.I. loans. The Servicemen’s Readjustment Act of 1944 was broadly
amended by Public Law 268, approved December 28, 1945. Not only
were the purposes for which guaranteed loans may be made, broadened
and extended, and the aggregate guaranty of real estate loans increased
from $2,000 to $4,000, but the Act provided for an automatic guaranty,
and national banks were authorized to make such real estate loans on
an equality with other financial institutions notwithstanding the restric­
tions and limitations contained in section 24 of the Federal Reserve Act,
as amended.
Reorganization. On December 20, 1945, the President approved the
Reorganization Act of 1945 (Public Law 263) which, in the interests of
greater efficiency and economy, authorizes the President to effect sub­
stantial reorganization in the executive agencies of the Government. The
authority so vested in the President would enable him to abolish agencies
or functions, to consolidate and to coordinate them, and, in general,
affords a broad basis for such reorganization. A reorganization plan
proposed by the President becomes effective, under the law, unless within
sixty days after transmittal thereof to the Congress, both Houses of
Congress adopt a concurrent resolution disapproving of the plan. The
Corporation is specifically made subject to the provisions of the Act, but
no plan may provide for a reorganization of the Corporation if it also
provides for a reorganization which does not affect it. Under this ex­
emption any plan of reorganization affecting the Corporation must be
submitted separately, and not as part of, or included in, a plan containing
reorganizations of other agencies, except that transfers to the Corporation
of any functions of another agency need not be separately proposed.
Audit. Public Law 4, approved February 24, 1945, required the
financial transactions of “ all Government corporations” to be audited
by the General Accounting Office. Heretofore the Corporation’s financial
transactions have been audited annually by a private firm of auditors



LEGAL DEVELO PM EN TS

27

engaged for that purpose by the Board of Directors of the Corporation.1
Since the new law applied to “ all Government corporations,” and in the
absence of any definition of that term it was not entirely clear whether
it was intended to include “ mixed-ownership” Government corporations,
the Comptroller General of the United States was requested by the
Corporation to advise it whether he considered the Act to be applicable
to the Corporation. The question was of particular importance because
the First Deficiency Appropriation Act, 1945 (Public Law 40, approved
April 25, 1945), prohibited Government corporations from paying for
private audits except such as had been contracted for and undertaken
prior to the date of the Act’s approval.
The conclusion which the Comptroller General reached was that
“ the law requires an audit to be made by the General Accounting Office
of all true Government corporations, including the mixed-ownership
group of which the Federal Deposit Insurance Corporation is one . .
The text of section 5 of the Act, containing the audit provisions, appears
on page 83 of this report.
Except as to the year 1945, the question whether the audit provisions
of Public Law 4 were applicable to the Corporation became academic
upon the enactment of the Government Corporation Control Act, Public
Law 248, approved December 6, 1945. Under the latter Act the Cor­
poration is classified as a “ mixed-ownership” Government corporation
and its financial transactions are required to be audited annually by the
General Accounting Office. The audit so prescribed is to be a commercialtype audit as distinguished from the regular government-type of audit
which is applicable to Government departments and executive establish­
ments. Since the Act provides that the audit so required shall be in lieu
of any audit required to be made by the General Accounting Office
under existing law, it supersedes the provisions of Public Law 4, and
hereafter, beginning with the fiscal year commencing July 1, 1946, the
Corporation will be audited by the General Accounting Office and not,
as in the past, by private auditors.
In addition to the audit provisions, Public Law 248 requires the
Corporation to maintain all its banking and checking accounts with the
Treasurer of the United States, or, with the approval of the Secretary
of the Treasury, with a Federal reserve bank, or with a bank designated
as a depositary or fiscal agent of the United States. An exception is made
for banking and checking accounts which do not exceed $50,000 in any
one bank and which are established and maintained for a temporary
period. The Act further requires that obligations of the Corporation
(notes, bonds, debentures, and other similar obligations), hereafter
issued by the Corporation and offered for sale to the public, must be
in such forms and denominations, have such maturities and bear such
]See the Annual Report for 1944, pp. 29-32,




28

F E D E R A L DEPO SIT IN SU R AN C E CORPORATION

rates of interest, be subject to such terms and conditions, be issued in
such manner and at such times, and be sold at such prices, as shall have
been approved by the Secretary of the Treasury. Finally, the Act forbids
the Corporation to purchase or sell for the Corporation’s own account
and in its own right and interest, any direct obligations of the United
States, or obligations guaranteed as to principal or interest, or both,
aggregating at any one time in excess of $100,000, without the approval
of the Secretary of the Treasury.
Insofar as they affect the Corporation, the provisions of the Govern­
ment Corporation Control Act remain applicable so long as Government
capital continues to be invested therein. The full text of Titles II and III
of this Act, which alone are applicable to the Corporation, appears on
pages 84-86 of this report.
Lost Government checks. Public Law 243, approved December 3,
1945, serves to simplify the procedure for the replacement of lost, stolen,
destroyed, or mutilated Government checks and expedites the issuance
of a substitute therefor. Since the definition of the term “ original check,”
as used in the Act, includes instruments issued by any corporation owned
or controlled by the United States, the funds of which are deposited with
the Treasurer of the United States, checks issued by the Corporation
and drawn upon its account with the Treasurer of the United States, are
covered by the Act and the provisions for the issuance of substitute
checks appear to be applicable to the Corporation. The full text of this
Act appears on pages 87-89 of this report.
State legislation. A summary of State legislation in 1945 relating
to banking is given on pages 89-92 of this report.
O r g a n iz a t io n

and

F in a n c ia l St a t e m e n t s

of

the

C o r p o r a t io n

Organization and staff of the Corporation. Mr. Leo T. Crowley,
Chairman of the Corporation, and Mr. Phillips Lee Goldsborough,
Director, whose appointments expired on September 6, 1945, were
reappointed for 6-year terms. Effective October 15, 1945, Mr. Crowley
resigned as a member of the Board of Directors and Chairman. Mr. Maple
T. Harl was nominated by the President for the unexpired term of the
Chairman. His appointment was confirmed by the Senate on December
7, 1945, and he became Chairman of the Board of Directors of the Cor­
poration on January 5, 1946. Mr. Preston Delano, Comptroller of the
Currency, continued as ex officio member of the Board of Directors
throughout the year.
On December 31, 1945, the personnel of the Corporation consisted
of 1,184 officers and employees, compared with 1,546 at the beginning of
the year and 2,538 at the close of 1941. The reduction in personnel has
been due in part to the difficulties of retaining an adequate force under



29

OR G A N IZA TIO N AND FIN AN C IA L STATEM ENTS

wartime conditions, and in part to a reduced volume of work in connection
with the liquidation of assets acquired from closed banks. The number
of officers and employees in each Division of the Corporation as of
December 31, 1945, is given in Table 9.
T a b le 9 .

O fficers a n d E m plo yees of th e C o rpo ratio n , D ec e m b e r 31, 1945

Division and office

Officers and
Clerical,
administra­
tive, super­ stenographic,
visory, and and custodial
technical
employees
employees

Total

T o ta l...........................................................................................

1,184

633

551

Washington office.................................................................
Chicago office.......................................................................
Field offices..........................................................................

227
2U2
715

89
102
U2

138
lhO
273

Directors.................................................................................

3

3

Executive Division................................................................
Washington office................................................................

26
26

16

Legal Division........................................................................
Washington office................................................................
Chicago office.......................................................................

35
16
19

19
9
10

16
7
9

Division of Examination.......................................................
Washington office................................................................
District and field.................................................................

497
k2
U55

348
21
327

149
21
128

Division of Liquidation.........................................................
Chicago office.......................................................................
District and field.................................................................

342
81,
258

153
ho
113

189
U
145

Division of Research and Statistics.....................................
Washington office................................................................
Field offices..........................................................................

46
U
2

24
22
22
22
2 -- ----------

Personnel Division.................................................................
Washington office................................................................
Chicago office.......................................................................

27
22
5

12
10
2

15
12
3

Service Division.....................................................................
Washington office................................................................
Chicago office.......................................................................

112
n
38

11
8
3

101
66
35

Audit Division........................................................................
Chicago office.......................................................................

25
25

19
19

6
6

Fiscal and Accounting Division...........................................
Chicago office.......................................................................

71
71

28
28

43
43

16

10
10

No changes were made in the divisional organization of the Corporation
during 1945. Effective January 1, 1946, the State of Louisiana, previously
in the fifth supervisory district of the Corporation, was transferred to
the eleventh district. The organization chart of the Corporation as of
the close of the year is shown on page iv. A map showing the supervisory
districts is on page vii.
Incom e and expenses. The income of the Corporation in 1945 was
$121.2 million, of which $93.7 million was from assessments upon insured
banks and $27.5 million from investments and other sources.
Total expenses of the Corporation in 1945 amounted to $4.0 million,
of which $0.1 million were insurance losses and $3.9 million were ad­
ministrative expenses and other charges.



30

FE D E RA L DEPOSIT IN SU R AN C E CORPORATION

The surplus of the Corporation was increased by $124.8 million during
the year. Of this increase, $117.2 million was income in excess of expenses
and $7.6 million was an adjustment in surplus applicable to prior periods.
The surplus adjustment resulted from reduction in the Corporation’s
reserve for loss on assets acquired from banks placed in receivership or
merged with the aid of the Corporation.
A detailed statement of the income and expenses of the Corporation
for the year 1945 is given in Table 10. A summary statement for each
year since its organization is given in Table 11.
Assets and liabilities. On December 31, 1945, the total assets of
the Corporation were $931.1 million. These assets included the following
items:
Assets acquired through bank receiverships and mergers amounting
to a face value to $37.7 million which were carried on the books of the
Corporation at an appraised value of $15.1 million;
United States Government obligations valued at $899.9 million;
Cash amounting to $15.7 million; and
Other assets amounting to $0.3 million.
Liabilities of the Corporation at the end of 1945 were $1.9 million.
Total capital of the Corporation consisted of $289.3 million capital stock
issued at its organization and $639.9 million accumulated surplus. A
summary of the assets and liabilities of the Corporation at the close of
each year since its organization is given in Table 12. A more detailed
statement of assets and liabilities at the beginning, middle, and end of
the year is given in Table 13.
Audit. In the past the Corporation has followed the policy of having
an annual independent audit of the accounts of the Corporation as of
June 30 each year. All Government corporations are now required to be
audited by the General Accounting Office. Reports of such audits are
submitted to Congress.
The audit of the Corporation as of June 30, 1945, was made by George
Rossiter and Company under the general direction of the Comptroller
General. The report of this audit was not received by the Corporation
in time for publication in this Annual Report.




31

O R G A N IZA TIO N AN D FIN AN C IA L STATEM EN TS

T a b le 10.

I ncom e a n d E x p e n s e s of th e F e d e r a l D eposit I n su r a n c e
C orpo r atio n , C a l e n d a r Y e a r 1945
Income or expense item

In com e:
Deposit insurance assessments...................................................................................
Interest earned (less provision for amortization of premiums) and profit on
Government obligations sold..................................................................................
Other income................................................................................................................
T otal in c o m e ..........................................................................................
Expenses:
Deposit insurance losses and expenses......................................................................
Administrative expenses (see below).........................................................................
Furniture, fixtures and equipment purchased and charged off...............................
Other operating expenses...........................................................................................

Amount

$ 93,662,042.37
27,163,628.82
375,741.61
$121,201,412.80
$

105,933.57
3,812,510.86
54,439.01
958.72

T otal expenses.......................................................................................

3,973,842.16

Net incom e added to su rp lu s............................................................

$117,227,570.64

Surplus December 31, 1944:
As previously reported................................................................................................
Plus—net adjustments applicable to periods prior to January 1, 1945.................

$515,041,697.84
7,582,390.59

Surplus D ecem ber 31, 1944, as a d ju ste d .........................................

$522,624,088.43

Surplus D ecem ber 31, 1945.................................................................

$639,851,659.07

DISTRIBUTION OF ADMINISTRATIVE 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..................................................................................................................

$

2,864,780.93
34.376.68
15.00
99,088.36
369,500.30
308,178.42
65,762.13
70,870.80
1,698.17
11.197.50
8,653.36
19,124.55
7,463.11
7,365.74

$

3,868,075.05

Less:
Inter-departmental expense transfers........................................................................
Fees for services rendered...........................................................................................

38.119.68
17.444.51
$

Administrative expenses for the year ended December 31, 1945.....................




55,564.19

$

3,812,510.86

32

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

T able 11.

I n com e a n d E x p e n s e s of t h e F e d er a l D eposit I n su r a n c e
C orpo ratio n S in c e B e g in n in g O p e r at ion s 1
(In millions of dollars)
Income

Year

Expenses

Deposit Investment
insurance and other
assess­
income
ments2

Total

Total

Deposit
insurance
losses and
expenses

Adminis­
trative
expenses3

Net
income
added to
surplus

1933-1945..............

713.3

563.6

149.7

73.4

31.8

41.6

639.9

1945...................
1944...................
1943...................
1942...................

121.2
99.5
8G.7
69.4

93.7
80.9
70.0
56.5

27.5
18.6
16.7
12.9

4.0
3.9
4.7
4.6

.1
.1
.4
.7

3.9
3.8
4.3
3.9

117.2
95.6
82.0
64.8

1941...................
1 9 4 0 .:...............
1939...................
1938...................

62.0
55.9
51.2
47.8

51.4
46.2
40.7
38.3

10.6
9.7
10.5
9.5

4.5
10.7
13.8
5.6

.8
7.1
10.4
2.6

3.7
3.6
3.4
3.0

57.5
45.2
37.4
42.2

1937...................
1936...................
1935...................
1933-344.................

48.1
43.8
20.7
7.0

38.8
35.6
11.5

9.3
8.2
9.2
7.0

6.5
5.2
5.5
4.4

3.8
2.7
2.8
.3

2.7
2.5
2.7
4.15

41.6
38.6
15.2
2.6

1 Figures of total expenses, deposit insurance losses and expenses, and net income added to surplus
for years prior to 1945 differ from those shown in previous Annual Reports because of revisions in esti­
mates of losses allocated to the different years.
2 Assessments collected from banks insured in the temporary insurance funds were credited in full
to their accounts at the termination of the temporary funds, and were applied toward subsequent assess­
ments under the permanent insurance fund. This procedure resulted in no income to the Corporation
from assessments for the term of the temporary insurance funds.
3 Includes furniture, fixtures and equipment purchased and charged off.
4 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.

Table 12.

A ssets a n d L ia b il it ie s of th e F e d er a l D eposit
I n su r a n c e C o rpo ratio n , 1934-1945
(In millions of dollars)

Dec. 31

Cash

U. S.
Govern­ Insurance
ment ob­ assets
ligations

Other
assets

Total
assets
and lia­
bilities

Lia­
bilities

Capital
and
surplus

Ratio—
FDIC
Total de­
capital and
posits in
surplus to
insured
deposits in
banks
insured
banks

1 9 4 5 ....
1 9 4 4 ....
1 9 4 3 ....
1 9 4 2 ....

15.7
17.8
20.0
19.4

900.0
762.0
638.8
536.8

15.1
26.1
46.2
62.0

.3
.3
.5
.5

931.1
806.2
705.5
618.7

1.9
1.9
2.4
1.8

929.2
804.3
703.1
616.9

158,174.1
134,662.1
111,649.8
89,868.7

1 9 4 1 ....
1 9 4 0 ....
1 9 3 9 ....
1938.. ..

20.0
20.4
28.3
22.2

453.9
384.5
363.5
372.8

81.7
92.2
64.2
26.5

.1
.1
.1
.1

555.7
497.2
456.1
421.6

2.2
1.2
3.4
1.1

553.5
496.0
452.7
420.5

71.209.3
65,287.4
57,485.8
50,790.2

.78
.76
.79
.83

1 9 3 7 ....
1936.. ..
1935.. ..
1934.. ..

20.6
9.1
33.5
16.0

348.5
332.6
298.2
316.7

16.1
11.4
5.4
.5

.1
.1
.1
.1

385.3
353.2
337.2
333.3

2.2
9.8
31.2
41.6

383.1
343.4
306.0
291.7

48,227.8
50,280.9
45,125.1
40,059.9

.79
.68
.68
.73




.59%
.60
.63
.69

33

OR G A N IZA TIO N AN D F IN A N C IA L STATEM EN TS

T able 13.

A s se t s a n d L i a b il i t ie s o f t h e F e d e r a l 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 , D e c e m b e r 31, 1945, J u n e 30, 1945, a n d D e c e m b e r 31, 1944
Asset, liability, or capital item

Dec. 31, 1945

June 30, 1945

Dec. 31, 1944

ASSETS
Assets acquired through bank suspensions
and m ergers:
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— 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 agree­
ments to return any excess recovery to selling
banks..................................................................
Assets purchased from merging insured banks
and receivers of closed insured banks to avert
deposit insurance losses................................

12,929,038.:

14,271,794.00

$ 17,448,278.33

111,997.59

131,619.45

158,676.40

11,851,807.69

15,775,744.65

19,744,575.59

12,250,284.39

16,133,866.42

18,849,778.67

539,278.45

564,435.37

581,623.15

Total at face value.....................
Less: Reserve for losses...................................

$ 37,682,407.00 $ 46,877,459.89 $ 56,782,932.14
22,560,230.48
25,998,452.92
30,714,169.10

T otal at book v alu e...................

$ 15,122,176.52 $ 20,879,006.97 $ 26,068,763.04
15,722,797.1

Cash on hand and on d e p o sit........................
United States Governm ent obligations (cost
less reserve for amortization of premiums) and
accrued interest receivable.........................

10,774,475.57

17,804,318.72

899,944,277.33

838,070,544.62

762,064,352.35

Due from Governm ental ag en cies................

200,512.01

286,139.60

192,217.91

M iscellaneous receivables...............................

24,739.28

31,935.04

32,338.78

Furniture, fixtures and e q u ip m e n t..............

1.00

1.00

1.00

Deferred charges................................................

75,808.69

69,292.53

84,161.45

T otal assets..................................

$931,090,312.52 $870,111,395.33 $806,246,153.25

LIABILITIES
Current liabilities:
Accounts and assessment rebates payable... .
Earnest money deposits and collections in sus­
pense ..................................................................
Net balances of depositors in closed insured banks
pending settlement or not claimed—contra. .

$

329,611.43

317,706.90

330,061.38

983,505.64

792,376.43

1,220,847.00

111,997.59

131,619.45

158,676.40

Deferred cred its.....................................................

481,939.54

337,813.29

143,772.35

Reserve for deposit insurance expenses..........

43,946.79

50,535.18

1,939,096.46 $

1,642,405.73 $

T otal liabilities...............................

$

51,991.24
1,904,898.42

CAPITAL
Capital stock :
United States........................................................
Federal Reserve banks........................................
T otal capital sto ck .........................
Surplus (see Table 10 )...........................................

$150,000,000.00
139,299,556.99

$150,000,000.00
139,299,556.99

$150,000,000.00
139,299,556.99

$289,299,556.99 $289,299,556.99 $289,299,556.99
639,851,659.07

579,169,432.61

515,041,697.84

T otal ca p ita l....................................

$929,151,216.06 $868,468,989.60 $804,341,254.83

T otal liabilities and ca p ita l........

$931,090,312.52 $870,111,395.33 $806,246,153.25










PART TWO
BANKING DEVELOPMENTS




B anks and

B ranches

Banks and banking offices. At the close of 1945, 14,725 banks were
operating in the United States and possessions. With branches, these
banks were doing business in 18,893 offices.1 The number of operating
banks increased by 15 during the year. This was the first year since the
banking holiday of 1933 in which the number of operating banks in­
creased, with the exception of 1934 when several hundred banks which
had been closed were reopened or reorganized.
Branches of operating banks increased in number during 1945. How­
ever, this increase was smaller than in any previous year since the banking
holiday. During the war years several hundred banking offices, termed
“ facilities,” were opened at military establishments. A substantial
number of these were closed in the latter part of 1945.
Changes in the number of operating banks and branches during each
year since December 31, 1941, and the number at the close of each year,
are given in Table 14.
Table 14.

N umber

O perating B anks and B ranches in U nited States
P ossessions , D ecember 31, 1941-45

of

and

Number of banking offices at end of year

Net change during the year

Year
Total
1945.............
1944.............
1943.............
1942..............
1941..............

18,893
18,851
18,751
18,666
18,769

Banks

Branches

14,725
14,710
14,751
14,853
15,000

4,168
4,141
4,000
3,813
3,769

Total
+ 42
+ 100
+ 85
-103

Banks
+ 15
- 41
-102
-147

Branches
+
+
+
+

27
141
187
44

Insured and noninsured banks. The number of insured banks at
the close of 1945 was 13,494. This number represents a larger proportion
of all operating banks than at any previous time. A substantial number
of the banks which were not insured at the time the permanent insurance
plan went into effect in August 1935 have since been admitted to insur­
ance, and most of the banks beginning business since that time have
become insured.
The number of operating banks, both insured and noninsured, has
also been affected by absorptions, mergers, and voluntary liquidations.
Bank failures have been comparatively few in recent years. The number
of insured and noninsured banks at the close of each of the years since
1940 is given in Table 15.
1 The Corporation’s statistics of banks and banking offices include those possessions where banks
are eligible for admission to insurance. The statistics cover commercial and mutual savings banks and
trust companies in continental United States, Alaska, Hawaii, Puerto Rico, and the Virgin Islands.




37

38

F E D E RA L DEPOSIT IN SU RAN CE CORPORATION

Table 15.

N u m b e r o f I n s u r e d a n d N o n i n s u r e d B a n k s in t h e U n i t e d S t a t e s
a n d P o s s e s s io n s ,
Total number
of banks

Dec. 31

Insured

14,725
14,710
14,751
14,853
15,000

1945.......................
1944.......................
1943.......................
1942.......................
1941.......................

1941-1945
Percentage
insured

N oninsured

13,494
13,460
13,458
13,403
13,482

1,231
1,250
1,293
1,450
1,518

91.6
91.5
91.2
90.2
89.9

Admissions to and terminations o f insurance. During 1945,
122 banks were admitted to insurance. Of these, 103 were banks beginning
deposit operations during the year, including two former loan companies
which became banks of deposit, and 19 were previously operating banks
or successors to such banks which were admitted to insurance. Of the
122 banks admitted, 96 were banks which had been approved for in­
surance by the directors of the Corporation; the other 26 were banks
which were granted charters by the Comptroller of the Currency or were
admitted to the Federal Reserve System and therefore became insured
without any action by the Directors of the Corporation.
Table 16.

C h a n g e s in t h e N u m b e r o f I n s u r e d B a n k s in t h e
U n it e d S t a t e s a n d P o s s e s s io n s ,

e x c l u d in g

banks

1936-1945

s u c c e e d in g o t h e r in s u r e d

Type of change

1936-45

1945

1944
+

1943

Net change in num ber of insured banks.

-688

+ 34

A dm ission o f banks— t o ta l.........................

823

122

335

78

380

18

13

By action of the Corporation: 1
Banks beginning deposit operations........
Banks previously in operation or suc­
cessors thereto .......................................

1936-41

2

+ 55

- 79

-700

180

40

381

48

29

13

167

39

143

18

162

7

2

32

1

7

20

98

125

119

1081

207

1

4

6

196

126

1

1

13

111

67
27

76
43

63
36

574
187

79

25

29

1

Term inations of insurance—t o ta l............

1511

88

Other terminations of insurance:
Insured status terminated by FDIC . . . .
Withdrawals from insurance....................
Successions or absorptions by noninsured
banks......................................................

1942

100

Without action of the Corporation: 2
Banks beginning deposit operations........
Banks previously in operation or suc­
cessors thereto .......................................

Banks ceasing operations:
Suspended banks not reopened or suc­
ceeded ....................................................
Mergers with aid of the Corporation—net
decrease..................................................
Other mergers, consolidations and ab­
sorptions—net decrease........................
Other liquidations.....................................

banks

852
308

72
15

3
5
10

3
4

1
1

2

1

6

1 The number of banks admitted to insurance in each year by action of the Corporation differs from
the number approved for insurance (see page 23 of this report) because of differences between the dates

of approval and the dates of opening of new banks or the effective date of deposit insurance.

2 National banks and State banks admitted to the Federal Reserve System become insured without
action by the Corporation.




39

B A N K S AN D BRAN CH ES

These admissions to insurance were partially offset by 88 banks which
ceased operation without being replaced by other insured banks. The
character of changes in the number of insured banks during 1945, during
each of the preceding three years, and during the 6-year period from the
beginning of 1936 to the end of 1941, is given in Table 16.
Changes among branches of insured banks. In 1945 insured banks
opened 169 branches, excluding cases of transfer or sale of a branch by
one bank to another. Of these, 38 were branches which were approved by
the Corporation and 131 were established by national banks and State
banks members of the Federal Reserve System. Similar figures for each
of the preceding three years and for the 6-year period, 1936-1941, are
shown in Table 17. This table also shows how many of the branches which
were opened were “ facilities” at military establishments, and the number
of “ facilities” and of other branches which were discontinued.
Table 17.

C hanges

among

B ranches

of

I nsured B anks , 1936-1945

Type of change

1936-45

1945

1944

1943

1942

Net ch a n g e ......................................................

+851

+ 23

+ 135

+249

+ 41

+403

Branches opened for business—to ta l.......

1335

169

166

231

88

681

33

8

9

14

2

226
234

10
20

15
25

11
10

18
16

Approved by the Corporation:1
Facilities approved as agents of the
Government..........................................
Absorbed banks converted into branches
or replacing other offices closed or re­
located ....................................................
Other branches opened.............................

1936-41

172
163

Without action by the Corporation:2
Facilities approved as agents of the
Government..........................................
Absorbed banks converted into branches
or replacing other offices closed or re­
located....................................................
Other branches opened.............................

339

56

86

174

23

280
223

34
41

19
12

16
6

11
18

Branches of banks adm itted to insurance
—to ta l...........................................................

95

2

62

2

29

Approved by the Corporation1....................
Without action of the Corporation2............

94
1

2

62

2

28
1

Branches o f bank withdrawing from Fed­
eral Reserve System and insu ran ce. . . .
Branches discontinued—to ta l...................
Facilities approved as agents of the
Government..........................................
Other branches discontinued...................

2

200
146

2

577

146

33

44

49

305

147
430

131
15

16
17

44

49

305

1 The number of branches established with the approval of the Corporation in any given year differs
from the number approved by the Corporation during the same year because of differences between
dates of approval and dates of establishment of branches.
2 Approval by the Corporation is not required for establishment of branches by national banks or
State banks members of the Federal Reserve System.

A ssets, D

e p o s it s , a n d

C a p it a l A

ccounts

Assets of all banks. The end of hostilities in August 1945 did not
halt the upward trend in bank assets. During the year, assets of all



40

F E D E RA L DEPOSIT IN SU RAN CE CORPORATION

commercial and mutual savings banks increased almost $26 billion to a
total of $178 billion. This was the largest dollar increase reported for any
calendar year. While the 17 percent increase in bank assets in 1945 was
below the 19 percent rise in 1944, it was the same as in 1943.
Total bank assets on December 31, 1945, were nearly double the $91
billion total at the end of 1941 and nearly three times the total of $60
billion at the end of 1934. From 1934 to 1941 the growth in bank assets
accompanied the economic recovery from the depression of the early
1930,s. The war in Europe and our own defense activities contributed to
the growth in bank assets in the period 1939-1941.
After our entrance into the war, large scale w financing of the Federal
^ar
Government was the major factor contributing to the rise in bank assets.
From the end of 1941 to the end of 1945, increased holdings of United
States Government obligations accounted for 88 percent of the rise in
total bank assets. Most of the remainder of the increase in bank assets
during the war period is accounted for by the increase in cash and amounts
due from other banks. As shown in Table 18, the volume of loans out­
standing was slightly lower at the end of 1944 than three years earlier.
However, in 1945 there was a $4 billion increase in loans and discounts.
T a b le 1 8.

A ssets a n d L ia b il it ie s of a l l B a n k s in t h e
U n it e d S ta t e s an d P ossessions
(Amounts in millions of dollars)

Asset, liability, or capital item

T otal assets.................................................

Dec. 31,
1945

Dec. 30,
1944

Dec. 31,
1941

Percentage change to
Dec. 31, 1945, from—
Dec. 30,
1944

Dec. 31,
1941

$178,203

$152,618

$91,037

+ 16.8%

+ 95.7%

Cash and amounts due from other banks.
United States Government obligations..
Other securities.........................................
Loans, discounts, and overdrafts............
Miscellaneous assets.................................

35,585
101,822
8,595
30,473
1,728

30,910
86,281
7,563
26,080
1,784

27,397
25,539
9,027
26,640
2,434

+ 15.1
+ 18.0
+ 13.6
+ 16.8
- 3.1

+ 29.9
+298.7
- 4.8
+ 14.4
- 29.0

T otal liabilities and capital a cco u n ts..

178,203

152,618

91,037

+ 16.8

+ 95.7

Total deposits............................................
Miscellaneous liabilities............................
Total capital accounts..............................

166,474
1,203
10,526

142,077
926
9,615

82,045
624
8,368

+ 17.2
+29.9
+ 9.5

+ 102.9
+ 92.8
+ 25.8

Number of banks included...........................

14,621

14,597

14,845

+ 0.2

-

1.5

Bank holdings o f United States Government obligations.
During the four war years from the close of 1941 to the end of 1945, the
amount of United States Government obligations held by all commercial
and mutual savings banks rose from $26 billion to $102 billion. This
compares with an increase from a little less than $1 billion to nearly
$6 billion during the three years of the First World War, from the middle
of 1916 to the middle of 1919, as shown in Chart C.



41

A SSETS, DEPOSITS, AN D C A PITA L ACCOUNTS

CHART C
UNITED STATES GOVERNMENT OBLIGATIONS
HELD BY ALL BANKS. 1914-1945
(RATIO
BILLIONS

OF DOLLARS

SCALE)
BILLIONS

OF

DOLLARS

Commercial and mutual savings banks carried a smaller share of the
Federal Government financing in the First than in the Second World
War. Banks acquired over one-third of the growth in the interest-bearing
debt from the end of 1941 to the end of 1945, as compared with about
one-fifth from the middle of 1916 to the middle of 1919. When the holdings
of the Federal Reserve banks are included, the net acquisition of United
States Government obligations by the banking system amounted to 46
percent of the increase in the Federal interest-bearing debt during World
War II as compared with 22 percent during World War I.
Government obligations have become the most important type of
bank assets. At the end of 1945 holdings of those obligations accounted
for 57 percent of total bank assets as compared with only 12 percent on
June 30, 1919. The amount and proportion of the interest-bearing debt
held by commercial and mutual savings banks and the Federal Reserve
banks at the beginning and end of the two wars are shown in Table 19.
The proportion of the debt held by commercial and mutual savings
banks remained nearly constant over the war period. These banks held
about 37 percent of the interest-bearing debt at the end of 1945 as com­
pared with 40 percent at the end of 1941. In the middle of 1919, the pro­
portion of the debt held by the banks was 23 percent. This was a sharp
decline from the 79 percent held in the middle of 1916, when banks held
United States Government obligations chiefly for the purpose of issuing
national bank notes.



42

FE D E RA L D EPOSIT IN SU R AN C E CORPORATION

Direct bank financing of the wartime expenditures of the Federal
Government through purchase of and loans on Government obligations
was of much less significance in the expansion of bank assets during the
First than during the Second World War. Increased bank holdings of
United States Government obligations and loans on them amounted to
about 90 percent of the increase in the total assets of commercial and
mutual savings banks from the end of 1941 to the end of 1945. In con­
trast, during World War I the increase in business financing contributed
more to the expansion of bank assets than did the increase in holdings of
United States Government obligations and loans on them. These dif­
ferences are in part a reflection of the fact that in this war nearly all of
the funds for plant expansion and some of the increases in working capital
were furnished directly by the Government and only indirectly by the
banks. The increased productive facilities during the First World War
were largely financed privately. The banks participated to a great extent
in this financing.
T a b le 19.

C o m p a r is o n o f B a n k H o l d 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 l ig a t io n s i n T w o W o r l d W a r P e r io d s
(Amounts in millions of dollars)
World War I

Type of holder

June 30, 1916

World War II

June 30, 1919

Dec. 31, 1941

Amount Percent Amount Percent Amount Percent
Total interest-bearing debt
ou tstan d in g .......................

$972

100.0%

Banking system—t o ta l..........

820

84.4

Commercial banks................. |
Mutual savings banks...........
Federal Reserve banks...........
Non-bank holdings..................

$25,234
6,105

Dec. 31, 1945
Amount

Percent

100.0%

$63,768

100.0%

$276,247

100.0%

24.2

27,793

43.6

126,084

45.7

34.2
5.8
3.6

91,150
10,672
2U.262

33.0
3.9
8.8

56.4

150,163

54.3

768

78.5

5,813

23.0

57

5.9

292

1.2

/ 21,889
\ 3,700
2,251t

152

15.6

19,129

75.8

35,975

Change in total assets of commercial banks. On December 31,
1945, assets of all commercial banks reached a total of $161 billion. This
was more than twice the total at the end of 1941, as shown in Table 20.
The $23 billion increase in 1945 was the same as in 1944 and higher than
the increases of $17 billion in 1943 and $18 billion in 1942.
One of the most interesting developments during 1945 was the $4
billion rise in the volume of loans and discounts outstanding. After rising
during the two years prior to our entry into the war to $22 billion at the
end of 1941, commercial bank loans declined to $18 billion by the middle
of 1943. The volume outstanding then rose and again reached a total of
nearly $22 billion at the end of 1944. The total of $26 billion on December
31, 1945, was the highest since 1931.



43

ASSETS, DEPOSITS, AND C A PITA L ACCOUNTS

Table 20.

A s s e t s a n d L i a b i l i t i e s o f a l l C o m m e r c ia l B a n k s
(Amounts in millions of dollars)

Asset, liability, or capital item

Dec. 31,
1945

Dec. 30,
1944

Dec. 31,
1941

Percentage change to
Dec. 31, 1945, from—
Dec. 30,
1944

Dec. 31,
1941

$161,182

$137,830

$79,215

+ 16.9%

+ 103.5%

Cash and amounts due from other banks.
United States Government obligations..
Other securities.........................................
Loans, discounts, and overdrafts............
Miscellaneous assets.................................

34,975
91,149
7,340
26,193
1,525

30,327
77,953
6,331
21,708
1,511

26,603
21,839
7,230
21,738
1,805

+ 15.3
+ 16.9
+ 16.0
+20.7
+ .9

+ 31.5
+317.4
+ 1.5
+ 20.5
- 15.5

T otal liabilities and capital a cco u n ts..

161,182

137,830

79,215

+16.9

+ 103.5

Total deposits............................................
Miscellaneous liabilities............................
Total capital accounts..............................

151,089
1,160
8,933

128,702
891
8,237

71,512
592
7,111

+ 17.4
+30.2
+ 8.4

+ 111.3
+ 95.9
+ 25.6

Number of banks included...........................

14,079

14,054

14,297

+ 0.2

T otal assets.................................................

-

1.5

Increased holdings of United States Government obligations
accounted for most of the growth of total assets in 1945 as in each of the
three previous years. Net acquisitions of United States Government
obligations by commercial banks amounted to $13 billion during the
year, as compared with $18 billion in 1944, $19 billion in 1943, and
nearly $20 billion in 1942.
An increase of almost $5 billion in cash and amounts due from other
banks also contributed substantially to the growth in total assets during
1945. Commercial bank holdings of securities other than obligations of
the Federal Government increased $1 billion. This substantial increase
together with the small increase during 1944 counter-balanced the
declines in 1942 and 1943. Holdings of over $7 billion at the end of 1945
were slightly higher than at the end of 1941.
Changes in types of commercial bank loans. Total loans and .
discounts of insured commercial banks were the same at the end of 1944
as at the end of 1941, as shown in Table 211 However, there were sig­
.
nificant changes in the volume of the major types of loans between these
two dates. Loans on securities rose substantially while the volume of
commercial and industrial loans and consumer loans declined.
Loans on securities rose from a little more than $1 billion at the end
of 1941 to nearly $5 billion at the end of 1944 and to $7 billion on Decem­
ber 31, 1945. These loans began to expand in the last half of 1942, re­
flecting bank borrowing by businesses and individuals for the purpose of
purchasing United States Government obligations offered in the war
loan drives.
1 More detailed data by type of loan are available for insured commercial banks than for the non­
insured group. Since, however, the insured commercial banks account for approximately 98 percent of
the commercial bank volume, the data for this group are representative of the total.




44

F E D E RA L DEPOSIT IN SU RAN CE CORPORATION

T a b le 2 1.

C h a n g e in L o ans a n d D isco u n ts of I n su r e d C om m ercial B a n k s
(Amounts in millions of dollars)
Change to Dec. 31, 1945, from—

Type of loan

Dec. 31, Dec. 30, Dec. 31,
1944
1945
1941

Dec. 30, 1944

Dec. 31, 1941

Amount

Amount

Percent

+ 20.7%

$+4,507

+ 21.2%

$21,355

$21,262

$+4,414

9,462i

7,921

9,215

+ 1,541

+ 19.4

+247

2.7

l,314i
2,361

1,723
1,888

1,450
3,2252

-409
+473

-23.7
+25.0

-136
-864

-9.4
-26.8

3,164

2,269

614

+895

+39.4

+2,550

+415.3

3,607

2,265

662

+ 1,342

+ 59.2

+2,945

+444.9

507
8,332
841

450
3,157
738

535
3,209
1,031

+ 57
+ 175
+ 103

+ 12.7
+ 5.5
+ 14.0

-28
+ 123
-190

-5.2
+3.8
-18.4

1,181

944

1,321

+237

+25.1

-140

-10.6

Loans and discounts—total. . . $25,769
Commercial and industrial loans
Agricultural loans (excluding
loans on farm land)...........
Consumer loans to individuals..
Loans to brokers and dealers in
securities.............................
Other loans for the purpose of
purchasing or carrying se­
curities................................
Real estate loans:
On farm land.........................
On residential properties. . . .
On other properties...............
All other loans (including over­
drafts) .................................

Percent

1 Loans to dealers, processors and farmers’ cooperatives, directly or indirectly guaranteed by the Commodity
Credit Corporation and formerly included in agricultural loans are now classified as commercial and industrial
loans.
2 Partially estimated.

The volume of commercial and industrial loans declined from $9
billion at the end of 1941 to under $8 billion in 1942 and remained close
to that level during the next three years. In the last half of 1945 com­
mercial and industrial loans rose 26 percent and reached a total of $9.5
billion at the end of the year.1 The available evidence indicates that
substantial loan volume resulted from an increase in term loans many of
which have been made for the purpose of refinancing corporate bonded
indebtedness. The increase in commercial and industrial loans during
the last six months of 1945 was fairly general both on a regional basis
and among large and small banks. Apparently bank loans have been
used for the reconversion and expansion of small as well as large business
establishments.
Another significant development in the bank loan field during 1945
was the 25 percent increase in consumer loans of insured commercial
banks. These loans declined sharply from 1941 to the middle of 1943 and
remained at a relatively low level until the latter part of 1945 as a result
of the unavailability of consumer durable goods and the restrictions
imposed upon consumer credit. With the end of hostilities and the return
to the market of some consumer durable goods the demand for this type
of credit has increased.
Maturities of commercial bank holdings of Government ob­
ligations. The increase in commercial bank holdings of United States
1 A minor revision in the loan classification was made December 31, 1945, with the result that the
change in commercial and industrial loans in the last half of 1945 is overstated. It is not possible to de­
termine the extent of this overstatement but it is believed to be slight.




45

ASSETS, DEPOSITS, AN D C A PITA L ACCOUNTS

Government obligations in the last four years has brought a marked
change in the maturity distribution of these holdings. Most of the $69
billion increase during this period has been in the short and intermediate
term issues, while the amount of the long term issues held by banks has
remained almost constant.
Treasury bills, certificates of indebtedness, and treasury notes made
up more than 40 percent of insured commercial bank holdings of United
States Government obligations at the end of 1945 as compared with less
than 20 percent at the end of 1941, as shown in Table 22.1 Conversely,
bonds maturing in more than 10 years amounted to only 10 percent of
total holdings at the end of 1945, as compared with one-third four years
earlier. Intermediate term issues, maturing in 5 to 10 years, have also
increased substantially. They amounted to $32 billion or more than
one-third of the total at the end of 1945 and only $4 billion, or 19 percent
of the total, at the end of 1941.
Table 22.
D irect

M aturities of U nited States G overnment O bligations ,
G uaranteed , H eld by I nsured C ommercial B anks ,

and

1945, 1944,

and

1941

(Amounts in millions of dollars)
December 31, 1945
Type and maturity
Amount

Total U. S. Government ob­
ligations................................
Marketable issues:
Direct:
Treasury bills1................
Certificates of indebted­
ness1.............................
Treasury notes1..............
Bonds maturing in :2
5 years or less.............
5 to 10 years...............
10 to 20 years.............
Over 20 years..............
Guaranteed issues..............
Non-marketable issues..........

$88,933

Percent of
total

100.0%

December 30, 1944
Amount

$75,896

Percent of
total

100.0%

December 31, 1941
Amount

$21,047

Percent of
total

100.0%

2,456

2.8

3,972

5.2

988

4.7

19,075
16,047

21.5
18.0

15,303
15,781

20.2
20.8

3,159

15.0

9,030
32,230
6,092
2,787

10.2

36.2
6.9
3.1

5,918
25,467
5,796
1,917
978

7.8
33.6
7.6
2.5
1.3

1,551
3,970
5,930
1,347
4,102

7.4
18.8
28.2
6.4
19.5

1.3

764

1.0

22

1,194

1 Treasury bills are generally issued with maturities of 91 days; certificates of indebtedness have
maturities of approximately one year; and Treasury notes are issued with maturities of from one to
five years.
2 Based upon number of years to final maturity.

This development is largely the result of the policy of concentrating
Government security flotations during the war in the short-term issues
in order to hold down the interest charges. Of the $157 billion net increase
in marketable Government securities between the end of 1941 and the end
of 1945, short-term bills, notes, and certificates accounted for $70 billion.
1 Insured commercial bank data are here used because it is only for these banks that detailed data
on the maturity of Government obligations are available.




46

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

This is in sharp contrast with the method of financing the increase in
the Government debt during the First World War. The bulk of the debt
expansion from 1916 to 1919 was financed through issues maturing in
10 years or more. Certificates of indebtedness and treasury notes were
used to meet temporary current needs in anticipation of the receipt of
income and profits taxes and receipts from the loan drives. The intention
was to have the banks take these short-term issues only as a temporary
expedient, and an effort was made to get the banks to distribute them
to non-bank investors. A relatively high rate of interest was paid in order
to secure their distribution among non-bank investors.1
Deposits in commercial banks. Total deposits in commercial banks
increased $22 billion, or 17 percent, during the year and amounted to
$151 billion on December 31, 1945. Deposits of individuals and business
enterprises constituted $104 billion.
The increase in deposits of individuals and business enterprises ac­
counted for two-thirds of the 1945 increase in commercial bank deposits,
as shown in Table 23. Early in the war, demand deposits of individuals
and businesses in commercial banks grew at a more rapid rate than did
time deposits. In 1944 and 1945, however, time deposits increased more
rapidly.
Table 23.

I n c r e a s e i n D e p o s it s in a l l C o m m e r c ia l B a n k s D u r in g

1945

(Amounts in millions of dollars)
Amount of deposits
Type of deposit

T otal d eposits..................................................................
Demand deposits of individuals, partnerships, and
corporations................................................................
Time deposits of individuals, partnerships, and corpo­
rations ..........................................................................
States and political subdivisions...................................
United States Government...........................................
Interbank........................................................................
Other deposits................................................................

Dec. 31,
1945

Dec. 30,
1944

$151,089

Increase

$128,702

$22,387

Percentage
increase

17.4%

73,867

65,132

8,735

13.4

29,917
5,784
24,767
14,072
2,682

23,815
5,061
20,828
12,229
1,637

6,102

25.6
14.3
18.9
15.1
63.8

723
3,939
1,843
1,045

Deposits of the United States Government totaled $25 billion at the
end of 1945. This was onfy slightly above the mid-year total but almost
$4 billion, or 19 percent, above the total at the beginning of the year.
The bulk of these deposits were in war loan deposit accounts which are
reduced as the Government makes use of the funds accumulated during
the war loan drives. Interbank deposits and deposits of State and local
governments increased moderately during the year.
The results of a special survey of deposits in all insured banks, grouped
by size of account, are to be found in Part Three of this report.
1 Annual Report of the Secretary of the Treasury, 1919, pp. 54-60; 1920, p. 7.




47

ASSETS, DEPOSITS, AN D C A PITA L ACCOUNTS

Capital accounts o f com m ercial banks. Total capital accounts of
all commercial banks have increased steadily in amount since 1933. At
the end of 1945, total capital accounts amounted to $8.9 billion, slightly
below the peak of $9.2 billion reached in the middle of 1930 and 45 percent
above the total in 1933.
Most of the increase in commercial bank capital accounts since the
banking crisis of 1933 occurred during the war years. Total capital
accounts of all commercial banks have increased $2 billion since 1941.
Nearly all of this increase has been due to retained profits. Bank profits
have increased substantially while dividends have been held almost
constant, with the result that substantial additions have been made to
capital from profits in each of the recent years.
In contrast to the large amount of retained profits, there has been
only a moderate increase in the outstanding capital stock of commercial
banks since the end of 1941. Additions to common stock of insured
commercial banks in the four years, from the end of 1941 to the end of
1945, amounted to $368 million while preferred stock and capital notes
and debentures were reduced $185 million, as shown in Table 24. Most
of the preferred stock and capital notes and debentures represented the
investment of the Reconstruction Finance Corporation made to assist
the banks during the severe banking crisis of the early 1930’s. Investment
of the Reconstruction Finance Corporation in insured commercial banks
reached a peak of about $1 billion in 1935. Approximately three-fourths
of this investment has been repaid by the banks and the retirable value
of the remainder at the end of 1945 was $253 million.
Table 24.

C h a n g e in C a p i t a l A c c o u n t s o f I n s u r e d C o m m e r c ia l B a n k s
(Amounts in millions of dollars)
Percentage distribution

Type of capital account

Dec. 31,
1945

Dec. 30,
1944

Dec. 31,
1941

Dec. 31,
1945

Dec. 30,
1944

Dec. 31,
1941

$8,672

$7,990

$6,845

100.0%

100.0%

100.0%

Capital stock, notes, and de­
bentures—total..................

3,033

2,913

2,850

35.0

36.4

41.6

Common stock .....................
Preferred stock.....................
Capital notes and debentures

2,838
152
h3

2,660
202
50

2,470
306
74

32.7
1.8
0.5

33.3
2.5
0.6

36.0
4.5
1.1

Surplus....................................
Undivided profits...................
Reserves.................................

3,784
1,293
562

3,402
1,169
506

2,687
896
412

43.6
14.9
6.5

42.6
14.7
6.3

39.3
13.1

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

6.0

Ratio o f capital to assets. The average ratio of total capital accounts
to total assets of all commercial banks at the end of 1945 had declined
to 5.5 percent, the lowest point in at least three-quarters of a century.



48

FE D E RA L D EPOSIT IN SU RAN CE CORPORATION

Chart D shows the trend since 1875 in the ratios of total capital accounts
to total assets and of total capital accounts to assets other than United
States Government obligations and cash.
A general downward trend in the ratio of capital to total assets has
prevailed since 1875. However, most of the decline in the capital ratio
during this period occurred in the years 1878-1881, 1898-1899, 1915-1919,
and 1939-1944. In each of these periods there were sharp increases in
the volume of bank assets with less rapid increases in bank capital. From
the middle of 1878 to the middle of 1881, assets of all commercial banks
rose about 36 percent while bank capital increased only 2 percent. During
the brief period of the Spanish-American War and the longer periods
of the First and Second World Wars bank assets increased much more
rapidly than did bank capital.
The movement of the ratio of bank capital to assets other than United
States Government obligations and cash closely paralleled the movement
of the ratio of capital to total assets until the early 1930’s. The sub­
stantial liquidation of bank loans which occurred from 1929 to 1934
resulted in an increase in this ratio from 18 percent in the middle of 1929
to 26 percent in the middle of 1934. Since that time, most of the increase
in bank assets has been in United States Government obligations and
cash and amounts due from other banks so that the ratio of capital to
other assets has remained nearly constant. It rose slightly during the
war but at the end of 1945 the ratio of 25.5 percent was about the same
as the average for the period from 1935 to 1939.
CHART D
RATIOS

OF TOTAL CAPITAL ACCOUNTS

AND TO TOTAL ASSETS

OTHER

TO TOTAL ASSETS

THAN

CASH

U. S. GOVERNMENT OBLIGATIONS
ALL
PERCENT




COMMERCIAL
PERCENT

BANKS,

1875-1945

AND

49

A SSETS, DEPOSITS, AN D C A PITA L ACCOUNTS

Examiners’ appraisal of assets of insured commercial banks.
The general high level of business activity during the war has been
accompanied by a decline both in the amount and proportion of assets
of insured commercial banks classified as substandard by the examiners.
In 1945, the 12,473 banks examined showed substandard assets of $619
million as compared with $825 million in 1944 and $2,031 million in 1941.
This decline in the volume of assets classified as substandard is the
result of several factors. The rising prices of securities and real estate
have given the banks an opportunity to dispose of their less desirable
holdings on favorable terms. As prices have risen, the collateral supporting
loans has increased in value and, thus, loans which were formerly classified
as substandard because of insufficient collateral have now become ac­
ceptable bank investments. The statistical position of bank loans and
investments tends to improve as long as prices continue to advance.
The volume of substandard assets was 0.45 percent of the appraised
value of the total assets of insured commercial banks examined in 1945.
This compares with a ratio of 0.69 percent in 1944 and 2.84 percent in
1941, as shown in Table 25. The decline in the ratio of substandard
assets to the volume of appraised assets has, of course, accompanied
the decline in the volume of substandard assets. However, another
factor has also been of importance. Criticized assets have formed a
smaller proportion of total assets simply because the increase in bank
assets during the war period has been confined almost entirely to United
States Government obligations and cash.
Table 25.

Substandard A sset R atios of I nsured C ommercial B anks
E xamined in 1939-1945
Ratio of substandard assets to—
Year

Appraised
value of
total assets

1945......................................................................
1944......................................................................
1943......................................................................
1942......................................................................

0.45%
.69
1.24
2.13

1941......................................................................
1940......................................................................
1939......................................................................

2.84
3.93
5.12

Appraised value
of assets other
than cash and
U. S. Government
obligations
2.06%
2.98
4.75
5.93
(*)
C)
1
C)
1

Adjusted
capital
accounts

7.58%
10.92
17.84
25.26
31.12
40.35
48.21

1 United States Government obligations are not available separately prior to 1942.

Fixed and substandard assets are lower in relation to adjusted capital
accounts than at any time since the beginning of deposit insurance.1
In 1945, fixed and substandard assets amounted to less than 10 percent
1 Adjusted capital accounts represent the difference between total bank assets and total bank
liabilities as appraised by the examiners, (see page 121).




50

F E D E RA L DEPOSIT IN SU R AN C E CORPORATION

of adjusted capital accounts in 34 percent of the insured banks examined
as compared with 26 percent of the banks examined in 1944, as shown in
Table 26. However, there are still a number of banks in which fixed and
substandard assets constitute a substantial proportion of adjusted capital
accounts. In 1945, fixed and substandard assets amounted to 50 percent
or more of adjusted capital accounts in 5 percent of the banks as compared
with 9 percent in 1944.
Table 26.

D is t r ib u t io n o f I n s u r e d C o m m e r c ia l B a n k s A c c o r d in g t o

R a t io o f F i x e d a n d S u b s t a n d a r d A s se t s t o A d ju s t e d C a p i t a l A cc o u n t s
e x a m in a t i o n s

in

1944

and

1945

Number of banks

Percentage distribution

Bank group
1945
All banks............................................................

1944

1945

1944

12,473

12,983

100.0 %

100. 0 %

0.0% to 9.9% ..................................................
10.0% to 19.9%...............................................
20.0% to 29.9%...............................................
30.0% to 39.9%...............................................
40.0% to 49.9%..............................................

4,277
3,837
2,130
1,064
508

3,309
3,699
2,429
1,522
849

34.3
30.7
17.1
8.5
4.1

25.5
28.5
18.7
11.7
6.5

50.0% to 99.9%..............................................

584
73

1,046
129

4.7

8.1
1.0

Banks with a ratio o f fixed and substand­
ard assets to adjusted capital accounts
o f—

100.0 % or more..............................................

.6

Mutual savings banks. Total assets of all mutual savings banks in
the United States amounted to $17 billion on December 31, 1945. The
15 percent increase during 1945 was almost as large as that for commercial
banks. However, over the 4-year period since December 31, 1941, assets
of mutual savings banks rose only 44 percent, substantially below the
104 percent increase in commercial bank assets during the same period.
All of the growth of mutual savings bank assets from the end of 1941
to the end of 1945 was accounted for by increased holdings of United
r
States Government obligations. Each of the other major categories of
assets declined over the 4-year period (see Table 27). Most substantial
was the 30 percent decrease in holdings of securities other than United
States Government obligations. Loans, most of which are on real estate,
showed a moderate decrease. Real estate loans of commercial banks
also declined from the end of 1941 to the end of 1944. However, during
1945 real estate loans of commercial banks increased 8 percent while
mutual savings bank loans declined 2 percent.
Deposits in mutual savings banks rose 15 percent in 1945 and totaled
$15 billion at the end of the year. Most of these deposits are time deposits
of individuals. Their movement followed the pattern of time deposits
in commercial banks—a relatively small increase in the earlier war years



51

ASSE TS, [DEPOSITS, AN D C A PITA L ACCOUNTS

and a more rapid growth in the latter part of the war period. However,
in each of the last two years, deposits in mutual savings banks have
grown less rapidly than time deposits in commercial banks. In 1945, the
deposits in mutual savings banks increased 15 percent while commercial
bank time deposits increased about 25 percent.
Table 27.

A s s e t s a n d L ia b i l i t i e s o f a l l M u t u a l S a v i n g s B a n k s

(Amounts in millions of dollars)
Percentage change to
Dec. 31, 1945, from—

Dec. 31,
1945

Dec. 30,
1944

Dec. 31,
1941

$17,021

$14,788

$11,822

610

583

794

+ 4.6

-23.2

10,673
1,255
4,280
203

8,328
1,232
4,372
273

3,700
1,797
4,902
629

+28.2
+ 1.9
- 2.1
-25.6

+ 188.5
-30.2
-12.7
-67.7

Total liabilities and capital ac­
counts ...........................................
Total deposits....................................
Miscellaneous liabilities....................
Surplus and capital accounts...........

17,021
15,385
43
1,593

14,788
13,375
35
1,378

11,822
10,533
32
1,257

Number of banks included...................

542

543

548

Asset, liability, or capital item

Total assets.........................................
Cash and amounts due from other
banks..............................................
United States Government obli­
gations............................................
Other securities.................................
Loans, discounts, and overdrafts. . .
Miscellaneous assets.........................

Dec. 30,
1944
+ 15.1%

+
+
+
+

15.1
15.0

Dec. 31,
1941
+ 44.0%

15.6

+44.0
+46.1
+34.4
+26.7

- 0.2

- 1.1

22.8

Total surplus and capital funds of mutual savings banks have grown
as rapidly during the war as the total capital accounts of commercial
banks. Since the growth in assets has been at a lower rate, the ratio of
surplus and capital funds to total assets of mutual savings banks has
declined much less than has the capital ratio of the commercial banks.
On December 31, 1945, surplus and capital funds of mutual savings
banks were 9.4 percent of total assets as compared with 10.6 percent at
the end of 1941.
E a r n in g s

of

I n s u r e d C o m m e r c ia l B a n k s

Net current earnings and net profits of insured commercial banks
were both considerably higher in 1945 than in any other year of Federal
insurance of deposits. The increase in net current earnings reflected
chiefly a growth in total current earnings for the fifth successive year.
The larger net profits in 1945 reflected also a drop in net charge-offs to
the lowest figure on record and an increase in profits on securities sold
to the highest figure since 1936. Dividends paid to stockholders, while
slightly higher in amount than in any previous year of deposit insurance,
absorbed a smaller proportion of net profits after taxes. It is probable
that the resultant net additions to total capital accounts from profits
represented a greater amount and were higher proportionately than in
any year since the formation of the dual banking system in 1863.



52

F E D E R A L DEP0I3IT IN SU R AN C E CORPORATION

Total current operating earnings of insured banks, at $2,482 million,
were 12 percent larger in 1945 than in 1944, and 67 percent larger than
the low figure reported in 1935. Operating expenses, at $1,523 million,
also increased by 12 percent over 1944, and were 41 percent larger than
the low of a decade earlier. Net earnings, at $960 million, were 12 percent
larger than in 1944, and exceeded the 1935 figure by 135 percent. Net
profits after taxes, at $906 million, were 21 percent larger than in 1944,
and double the 1941 figure. The 1945 net profits represented a rate of
10.9 percent of total capital accounts. Major items of earnings and
expenses are shown in Table 28.
Table 28.

E arnings , E xpenses , and P rofits
I nsured C ommercial B anks , 1934-1945

of

(In millions of dollars)

Net
chargeoffs2
on assets

Year

Total
current
operating
earnings

Total
current
operating
expenses1

Net
current
operating
earnings1

Profits
on
securities
sold

1945..
1944..
1943..
1942..

2,482
2,215
1,959
1,790

1,523
1,357
1,256

267
130
103

1,222

960
858
703
569

66

34
41
114

1941..
1940. .
1939..
1938..

1,730
1,631
1,605
1,584

1,216
1,170
1,148
1,148

514
461
457
436

145
178
215
173

1937..
1938..
1935..
1934..

1,634
1,567
1,486
1,518

1,156
1,114
1,078
1,114

478
453
408
404

117
268
2316
1485

Income
taxes®

Cash
Net profits dividends
declared
available
for
and in­
terest paid
stock­
holders4 on capital

299
203
128
79

906
751
638
441

274
253
233
228

154
215
272
299

50
23

455
401
388
300

253
237
232

203
185
4265
8905

11
12

381
524
207
-340®

226
223
208
188

22

12
10

5
3

222

1 Figures for 1934-1941 are estimates and differ from reported figures by the amount of estimated
income taxes excluded from total current operating expenses. See footnote 3.
s Book value of assets charged off minus recoveries on assets previously charged off.
3 Includes surtax and excess profits tax. Figures for 1934-1941 are estimates, based upon Bureau of
Internal Revenue figures of income taxes paid by national banks for 1934-1937, and paid by “ all banks
and trust companies” for 1938-1941. Income taxes paid by insured banks not members of the Federal
Reserve System have been reported separately since 1936.
* Available for dividends or additions to the stockholders’ investment in the banks.
6 Estimated; profits on securities sold were not reported separately from recoveries on securities by
banks not submitting reports to the FDIC.
•Net loss.
Detailed figures for 19U1-19U5—See Table 113, pages 128-129.

Sources of current earnings. The substantial increase in the volume
of earning assets in recent years, almost all of which has consisted of
United States Government obligations, has been accompanied by a
reversal in the importance of the various types of assets as sources of
income. From 1934 through 1941, income on loans accounted for about
45 percent of total current earnings. Beginning in 1942, both the amount
of, and the proportion represented by, income on loans declined until
1944; in 1945 the amount increased slightly but the proportion declined
further, and amounted to only 29 percent of total earnings. The amount
of income on loans and on securities, 1934-1945, is presented in Table 29.



53

EA R N IN G S OF IN SU R ED COM MERCIAL B A N K S

Table 29.

A mounts and R ates op I ncome R eceived and I nterest P aid
B y I nsured C ommercial B anks , 1934-1945

Year

Income
on loans
(in millions
of dollars)

Income on
securities
(in millions
of dollars)

Income on
loans
per $100 of
loans1

Income on
securities
per $100 of
securities1

Interest paid
per $100 of
time & savings
deposits1

1945.........................
1944.........................
1943.........................
1942.........................

$726
698
706
817

$1,300
1,090
861
610

$3.09
3.44
3.85
4.08

$1.46
1.49
1.52
1.69

$0.87
.87
.93

1941.........................
1940.........................
1939.........................
1938.........................

848
769
727
705

509
500
522
532

4.27
4.41
4.46
4.36

1.95
2.16
2.38
2.56

1.20

1937.........................
1936.........................
1935.........................
1934.........................

710
663
643
691

572
574
548
550

4.28
4.34
4.40
4.63

2.68
2.66

1.62
1.72

2.87
3.17

2.01

1.10

1.30
1.43
1.55

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.
Detailed figures for 191>5— See Tables 113 and 114, pages 128-131.

Income on securities, which provided one-third or less of total earnings
before World War II, has steadily increased in significance. In 1945 it
accounted for more than one-half of total operating earnings for the first
time. The amount of interest income on securities has increased in each
year since 1940; the $1,300 million received in 1945 was more than 23 2
^
times the amount received in the earlier year. Interest on United States
Government obligations, which was reported separately for the first
time in 1945, accounted for $1,133 million against an estimated $923
million in 1944.
The decrease in the average rate of return on loans (as well as the
increase in security holdings) has been a factor in the decreased im­
portance of income on loans as a source of current earnings. From 4.5
percent in 1939, the rate of return on loans has decreased in each year
to 4.1 percent in 1942 and 3.1 percent in 1945, as shown in Table 29. The
very rapid drop over the last three years has reflected both a reduction
in rates charged and a change in composition of the loan portfolio. During
the war there was a relative decline in the proportion of high-incomeproducing loans, such as consumer instalment loans, and a growth in
low-income-producing loans, such as those made for the purpose of
purchasing and carrying United States Government obligations.
From 3.2 percent in 1934, the rate of interest income on securities has
decreased in every year, except one, to 1.5 in 1945. In the last two years
the decline has been small in contrast to the more pronounced declines
from 1934 to 1936 and from 1937 to 1943. Three separate factors have
contributed to the reduction in the average interest yield on securities
since 1934:
(1) A general decline in interest rates;
(2) Concentration of the increase in security holdings in obligations



54

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

of the United States Government; and
(3) Concentration of the expansion in security holdings in short and
medium term issues.
The remaining part of current operating earnings—somewhat less than
one-fifth—is derived from various sources. The dollar amount of com­
missions, fees, and collection, exchange, and service charges has increased
in every year of deposit insurance, reflecting chiefly increased amounts
derived from service charges on deposit accounts. Income from the
latter has more than quadrupled since 1934, and in 1945 accounted for
about 5 percent of total current earnings. Other current earnings, in­
cluding safe deposit vault and real estate rentals, and income from trust,
foreign, and title departments, have increased about 25 percent in amount
since 1934, but decreased from about 13 to 10 percent of total current
earnings.
Current operating expenses. Two-thirds of the increase in current
expenses of banks since 1934 has occurred in the last two years, and may
be attributed to higher wartime costs of operations, a larger volume of
operations requiring more employees, and a substantial increase in the
volume of time deposits.
Salaries and wages, the most important item of bank expense in recent
years, increased by 10 percent in 1945 to $691 million and continued to
absorb almost 30 percent of total current earnings. The average number
of employees other than officers of insured commercial banks increased
by 33,000 or about 16 percent from 1941 to 1945. Over the same period
the average annual salary of employees increased about 21 percent. The
number of officers increased by 1,400 or about 2.5 percent; the average
annual salary by 23 percent over the same period. The figures are shown
in Table 30.
Table 30.

A verage N umber and A verage Salary of E mployees
I nsured C ommercial B anks , 1941-1945

Salary item

1941

1942

1943

1944

of

1945

N um ber o f banks, D ecem ­
ber 31 ........ ........................

13,427

13,347

13,274

13,268

13,302

Average num ber o f em ­
ployees (full and parttim e) :
Officers........... ........................
Others.....................................

56,392
204,319

55,996
213,974

55,117
221,060

55,902
227,512

57,806
237,326

Salaries and wages (in th ou ­
sands o f d ollars):
Officers........... .........................
Others.....................................

$211,311
302,627

$219,388
333,171

$225,142
356,958

$240,354
386,346

$266,018
424,881

Average salary per — 1
Officer.....................................
Other.......................................

$ 3,747
1,481

$

$

$

$

3,918
1,557

4,085
1,615

4,300
1,698

4,602
1,790

1These are crude averages derived by dividing the total salary payment by the average of the number
of full- and part-time employees at the beginning and end of the year.



E A R N IN G S OF IN SU R ED COM M ERCIAL B A N K S

55

After declining in every year from 1934 through 1943, interest on time
and savings deposits increased from $164 million in 1943 to $233 million
in 1945, or by 42 percent. This increase accounts for one-fourth of the
increase in total operating expenses over that period. It is attributable
entirely to the sharp growth in such deposits in each of the years 1943,
1944, and 1945. The decline in the rate of interest paid on time and
savings deposits, which was responsible for the reduction in the amount
of interest expense mentioned above, occurred from 1934 through 1944.
There are indications that the 1944-45 rate may represent the low point,
and that some reversal of the trend may be expected. Annual rates of
interest paid on time and savings deposits, 1934-1945, are presented in
Table 29.
Taxes (other than those based upon or measured by net income) and
recurring depreciation have fluctuated slightly from year to year but
have shown no increase during the war period. Other expenses at $459
million in 1945 absorbed 18 percent of total earnings and have increased
in recent years at about the same rate as total operating expenses.
Charge-offs, recoveries, and profits on assets sold. In 1945 reported
profits on securities (chiefly United States Government obligations) sold
by insured commercial banks amounted to $267 million, more than double
the 1944 figure. This was the highest amount reported in any year since
1936, and compared with an annual average for the 1936-1945 period of
$166 million. The high amount of profits on securities sold, together with
the low amount of net charge-offs on assets, contributed materially to
the high rate of net profits before income taxes in 1945.
In 1945, insured commercial banks made provision for losses by
charge-offs or by additions to valuation allowances at the rate of about
one-fifth of 1 percent of total assets or $264 million. This may be com­
pared with an annual average of about one-half of 1 percent for the
preceding eight years, and an average of 1.5 percent per year during the
first three years of deposit insurance. The very low rate of charge-offs in
1945 reflected the high rate and profitable character of business activity
during that year. The high rate of charge-offs during the first three years
of deposit insurance was due to the elimination of assets upon which
losses had accumulated prior to and during the depression.
Recoveries in 1945 on losses previously charged off were almost as
large as charge-offs. As a result the rate of net charge-offs in 1945 was
only one one-hundredth of 1 percent compared with an average of about
one-fifth of one percent for the preceding eight years and about 1 percent
during the first three years of deposit insurance.
The rates of charge-offs on total assets, and on significant groups of
assets, are shown in Table 31. (These may be compared with the gross
rates of income on loans and on securities shown in Table 29.) In 1945,



56

FE D E R A L D EPOSIT IN SU RAN CE CORPORATION

as in the two preceding years, recoveries on loans previously charged off
and reductions in valuation allowances exceeded the charge-offs, thus
resulting in net recoveries in each of these years. During the period,
1937-1944, average charge-offs on loans amounted to three-fifths of
1 percent, and net charge-offs to one-fifth of 1 percent.
Table 31.

R ates of C harge - offs on A ssets
I nsured C ommercial B anks , 1934-19451

Period

On total
assets

On total
loans

On total
securities

1945
Charge-offs.............................
Recoveries...............................
Net charge-offs.......................

$0.18
.17

$0.24
.29
.05*

$0.15
.14

.01

1937-1944
Charge-offs.............................
Recoveries...............................
Net charge-offs.......................

0.46
.24

0.60
.40

0.47

.22

.20

1934-1936
Charge-offs...... .......................
Recoveries4..............................
Net charge-offs.....................

1.47
.45

2.51
.55
1.96

1.02

of

On securities
other than
U. S.
Government

On fixed
assets*

$2.01
1.85
.16

$7.28
5.12
2.16

.27

2.43
1.06
1.37

5.40
2.85
2.55

1.36
.55
.81

3.90
1.58
2.32

4.99
1.93
3.06

.01

.20

1
Amounts of gross losses, recoveries, and net losses per $100 of the corresponding asset averages
for beginning, middle and end of each year.
2 Banking house, furniture and fixtures, and other real estate.
* Net recoveries, i.e., excess of recoveries over charge-offs.
* Recoveries on securities of banks not submitting reports to FDIC were not reported separately
from profits on securities sold in 1934 and 1935. Recoveries on securities were estimated to be about
38 percent of total recoveries and profits on securities.

Charge-offs on securities, though somewhat higher than in the preceding
war years, were almost completely offset by recoveries. Figures as re­
ported by the banks do not segregate losses and charge-offs, or recoveries,
on United States Government obligations from those on other securities.
It is probable that the high rate of losses and charge-offs in the early
years of deposit insurance were sustained largely on securities other than
United States Government obligations. In 1945, however, it is probable
that a significant proportion of the charge-offs on securities represented
lump-sum charge-offs or additions to valuation allowances to cover
premiums on Government obligations purchased at prices above par.
Other charge-offs and losses amounted to 7 percent of fixed assets
and were at a higher rate than in any other year since 1934 except in
1943 and 1944. The high rates in the last three years were in part due to
lump-sum charge-offs on banking house and furniture and fixtures made
possible by the high rate of bank profits during this period. The high
rate of other recoveries was affected by sales at current favorable prices
of “ other” real estate which had been previously partially charged-off.
Net profits before income taxes. Net profits before income taxes
of insured commercial banks, at $1,205 million, were 26 percent larger
than in 1944, and amounted to 14.5 percent of total capital accounts.



57

E A R N IN G S OF IN SU R ED COM M ERCIAL B A N K S

Both the amount and the rate for 1945 were more than double the esti­
mated amount and rate for each of the pre-war years since the inception
of deposit insurance, except 1936.
Income taxes. Total Federal and State taxes calculated on net in­
come, at $299 million, were 47 percent larger than in 1944, more than
33^ times the amount paid in 1942, and 12 times the estimated amount
paid in 1940. In 1945 income taxes absorbed 25 percent of net profits
before such taxes, as compared with 21 percent in 1944, and an estimated
5 percent in 1940.
Taxes were higher in 1945 than in 1944 as a result both of higher
taxable gains on securities sold and higher net operating earnings less
net charge-offs. Taxes paid by banks have also been larger in recent
years than before the war as a result of the higher Federal income tax
rates since 1940, and the imposition of excess profits taxes in 1940 and
of surtaxes in 1941. Significant also has been the fact that United States
Government obligations acquired by banks during the war have not had
all the tax-exemption features of such securities held during the pre-war
period. The amount of income taxes for the years 1934-1945 are presented
in Table 28, page 52.
Net profits after taxes. Net profits of insured commercial banks were
higher in amount, and represented a higher rate on total capital accounts,
than in any year since the inception of deposit insurance. The amount
of net profits, 1934-1945, is presented in Table 28. The rate of net profits
is shown in Table 32.
T a b le 3 2.

R a t e s of N e t P r ofits , B efo re a n d A f ter I ncom e T a x e s , a n d of C a sh
D iv id e n d s to A v e r a g e T o ta l C a p it a l A ccounts ,
A ll I n su re d C o m m ercial B a n k s , 1934-1945
Amounts per $100 of total capital accounts1

Year

Net profit
before
income
taxes*

Net
profit
after
taxes

Cash dividends
declared and
interest paid
on capital

Net profits
after cash
dividends

1945......................................................
1944......................................................
1943......................................................
1942......................................................

$14.46
12.36
10.57
7.48

$10.87
9.73
8.82
6.34

$3.29
3.28
3.23
3.28

$7.58
6.45
5.59
3.06

1941......................................................
1940......................................................
1939......................................................
1938......................................................

7.47
6.42
6.16
4.84

6.72
6.08
5.99
4.68

3.75
3.59
3.58
3.46

2.97
2.49
2.41

1937......................................................
1936......................................................
1935......................................................
1934......................................................

6.15
8.54
3.42
-5.44

5.97
8.35
3.35
-5.49

3.54
3.56
3.35
3.03

2.43
4.79
*
-8.52

1.22

1 Total capital accounts are averages of figures for beginning, mid-year, and year-end call dates.
8 But after taxes, other than income taxes, the amount of which is estimated for the years prior to
1942.
* Less than $0,005.




58

F E D E R A L D EPOSIT IN SU R AN C E CORPORATION

Available evidence indicates further that the rate of net profits of
commercial banks was higher in 1945 than in any other year for threequarters of a century. Over the period 1870-1945, national banks—which
are the only banks for which satisfactory figures extending over this
period of time are available and which may be considered representative
of all commercial banks—reported an average rate of net profits of 7.0
percent of net worth. Chart E shows that throughout most of the period
net profits have fluctuated between 6 and 9 percent of net worth. The
rate of profits was lower throughout the late 1870s and most of the 1890s.
In the early 1930s the rate of net profits reported by operating national
banks was negative for four years, reaching a low of minus 10 percent in
1933. The drastic drop in the net profit rate at that time was the result
of the huge increase in the rate of gross and net charge-offs on loans,
securities, and other assets.1
CHART E
RATES O N T PROFITS A D O C SH D ID N S
F E
N
F A
IV E D
O TOTAL CAPITAL ACCOU TS
N
N
N TIO A B N S, 1870 - 1945 v
A NL A K
PRETO TTL
ECN F O
A
CP A ACUT
At L CON
T
S

PRET
ECN
CPA ACUT
AI L CONS
T

O T'TL
f Of
c

1 For 1870-1915, net profits and dividends are for fiscal years and total capital accounts are as of
June 30 or nearest available date; for 1916, net profits are for 18 months’ period ended December 31,
1916, adjusted to an annual basis, and total capital accounts are averages of figures for June 30, 1915,
June 30, 1916, and December 31, 1916; for 1917-1945, net profits and dividends are for calendar years,
and total capital accounts are averages of figures for call dates during the year.

Net profits exceeded 9 percent of total capital accounts in only 11
years prior to the current war period. Four of these were the years 18701873, the earliest for which profit figures of national banks are available.
The only other period of sustained profits covered the four year period,
1917-1920, during and after World War I.
The profitability of banking operations, characteristic of the current
period, has been general throughout the banking system. In 1945, over
55 percent of all insured banks reported net profits after taxes of more
1
The operating losses sustained by national banks which were placed in receivership and liquidated
are not reflected in these figures, since reports of earnings are submitted by operating banks only.




59

E A R N IN G S OF IN SU R ED COM MERCIAL B A N K S

than 10 percent of total capital accounts, as compared with 51 percent
in 1944, 37 percent in 1943, and 23 percent in 1938. In 1938, the earliest
year for which comparable figures are available, 16 percent of the banks
sustained a net loss, whereas in the last two 3
^ears less than 1 percent of
the banks have reported a net loss. The improvement in rates of net
profits over the last three years, and as compared with 1938, is shown
in Table 33.
Table 33.
to

P e r c e n t a g e D is t r i b u t io n o f I n s u r e d C o m m e r c ia l B a n k s A c c o r d in g

R a t e o f N e t P r o f it s o n T o t a l C a p i t a l A c c o u n t s ,
Rate of profit

1945

1944

1943

1938, 1942-1945
1942

1938

Number of banks1.....................

13,149

13,141

13,145

13,226

13,487

All banks 1.................................

100. 0 %

100. 0 %

100. 0 %

100.0 %

100. 0 %

Banks with net loss...............

0.6

0.9

2.0

5.7

16.0

8.1

9.8
38.5
34.1
12.3
4.4

17.4
43.2
26.0
8.1

30.0
42.7
16.1
3.9

3.3

29.3
32.0
15.4
5.2

1.6

2.1

Banks
after
total
o f— 2
$0.00 to
5.00 to
10.00 to
15.00 to
20.00 or

with net profits
taxes per $100 of
capital accounts
$4.99.........................
9.99.........................
14.99.........................
19.99.........................
more.........................

36.0
34.6
14.2
6.5

1 Excludes banks submitting reports covering less than the full year’s operations or materially
affected by mergers.
2 Total capital accounts are averages of figures at beginning, mid-year, and year-end call dates;
except in 1938 when total capital accounts for banks members of Federal Reserve System are averages
of figures for four call dates.

Dividends and additions to profits. Nothwithstanding the un­
precedented growth in net profits over the last three years, the rate of
cash dividends declared and interest paid on capital by insured com­
mercial banks has remained practically unchanged over that period. The
$274 million paid in 1945 was 3.3 percent of total capital accounts. The
proportion of net profits retained for addition to net worth has been
higher during this war period than during any previous period, and the
1945 amount of $631 million represented the exceptionally high propor­
tion of 70 percent of net profits. The amount of cash dividends is shown
in Table 28, page 52. The rate of dividends, and the rate of net profit
after dividends, 1934-1945, are shown in Table 32.
Available records indicate that the cash dividends declared in 1945
represented a lower proportion of net profit than in any previous year in
the last seventy-five. Dividends paid by national banks, which may be
considered representative, amounted to 75 percent of total net profits
over the period 1870-1945. Dividends were much more stable in relation
to net worth than profits, as shown in Chart E; as a result the proportion
of net profit paid out in dividends fluctuated greatly from year to year.
Prior to 1930, dividends exceeded net profits in five of the sixty years,
stood between 80 and 100 percent of net profits in 15 years, and between



60

FE D E RA L DEPOSIT IN SU R AN C E C O RPORATION

60 and 80 percent in 36 years, and were less than 60 percent in only 4
years. Large net charge-offs resulted in sharply reduced net profits in
1930 and in net losses in 1931-1934, but the payment of dividends was
reduced much less drastically.
Dividends have amounted to less than 4 percent of total capital
account in each of the eleven years since 1934. This represents a lower
level than in any of the preceding 65 years except 1933. Dividends paid
have amounted to less than 60 percent of net profits in nine of the eleven
years. It appears clear that dividend payments have been on a more
conservative basis since the banking crisis of 1933 than theretofore.




PART THREE
SURVEY OF DEPOSITS IN INSURED BANKS, 1945







Survey

of

D e p o s it s

in

In sured

B an ks,

1945

From time to time the Federal Deposit Insurance Corporation has
called for special reports from all insured banks to aid in estimating its
contingent liability in insuring bank deposits. These reports have shown
the distribution of accounts and deposits by size of account. The first of
these surveys was made on October 1, 1934, and was used in reporting
deposits for purposes of assessment; under the temporary deposit in­
surance plan, assessments were based on insured deposits only. Under
the permanent plan assessments are based on total deposits. However,
in order to determine the protection given in operating banks by the
provision for a maximum coverage of $5,000 to each depositor, surveys
were made as of May 13, 1936, September 21, 1938, September 24, 1941,
and October 10, 1945.1 The lapse of four years between the last two calls
resulted from the desire of the Corporation to avoid imposing extra
work on the banks during the war.
On October 10, 1945, 13,481 insured commercial and mutual savings
banks reported total deposits amounting to $141 billion. Of these deposits,
$66 billion or 46 percent were covered by the provision for a $5,000
maximum insurance for each depositor. The banks reported 92 million
accounts, of which 89 million or 96.4 percent had balances of $5,000 or
less. Table 34 shows deposits and accounts as reported in the five surveys
which have been made.2
Table 34. I n s u r a n c e P r o t e c t io n w i t h a M a x i m u m C o v e r a g e o f
$5,000 in a l l I n s u r e d B a n k s , S p e c ia l C a l l D a t e s , 1934-1945
Oct. 10,
1945

Sept. 24,
1941

Sept. 21,
1938

May 13,
1936

N um ber o f b a n k s............... .......................

13,481

13,487

13,754

14,141

14,128

A ccounts (in thousands)
Total number.............................................
Number of $5,000 or less.........................
Percent of $5,000 or less...........................

92,333
88,988
96.4%

69,495
68,165
98.1%

62,731
61,690
98.3%

58,785
57,817
98.4%

51,246
50,423
98.4%

Deposits (in millions)
Total amount............................................
Amount insured........................................
Percent insured.........................................

$140,603
$65,859
46%

$69,566
$27,639
39%

$49,224
$22,610
45%

$46,168
$20,456
44%

$37,026
$16,455
44%

Account or deposit item

Oct. 1,
1934

Only slight changes occurred in the percent of deposits covered by the
$5,000 provision as shown in the special calls, although the amount of
1 On the average, the number of depositors in each bank, as defined for insurance purposes, is about
10 percent less than the number of accounts. However, the percent of depositors fully protected is about
the same as the percent of accounts with balances not in excess of $5,000. The percent of deposits stated
to be insured in all insured banks according to these surveys is estimated to be higher by about 1 percent
of total deposits than the percent actually covered by the $5,000 provision. A detailed discussion of these
differences and of the limitations of the data is contained in the Appendix, page 78.
2 For information concerning the earlier calls, see the following annual reports: 1934, pp. 59-67,
pp. 140-147, pp. 184-193, and p. 244; 1936, pp. 65-77, and pp. 93-94; 1938, pp. 79-99, and pp. 109-111;
1941, pp. 63-78.




63

64

FE D E RA L D EPOSIT IN SU R AN C E CORPORATION

deposits more than trebled. From October 1, 1934, to October 10, 1945,
total deposits in insured commercial and mutual savings banks increased
from $37 billion to $141 billion. Deposits increased in every year except
1937, but the growth was especially rapid from 1941 to 1945. The proportion
of accounts fully covered by the $5,000 provision showed little change,
although the number of accounts almost doubled between October 1934
and October 1945, increasing from 51 million to 92 million.
Number o f insured banks. Of the 13,481 banks insured on October
10, 1945, 13,289 were commercial banks and 192 were mutual savings
banks. Table 35 shows the number of each type of bank distributed
according to the population of the center in which the head office of the
bank was located. The various centers enjoyed more banking services
than is indicated by the table, since more than 4,000 branches are oper­
ated by insured banks but are not included in the count of banks.

T a b le 3 5.

N u m b er of I n s u r e d C o m m ercial and M u t u a l S av in gs B a n k s
O ctober 10, 1945
grouped by population of center in which located

Size of center

All
insured
banks

Commercial
banks

Mutual
savings
banks

13,481

13,289

192

Banks in centers with popu lation o f—
Less than 250..............................................................
250 to 500....................................................................
500 to 1,000
................................................................

554
1,387
2,266

554
1,387
2,263

3

1,000 to 2,500..............................................................
2,500 to 5,000..............................................................
5,000 to 10,000............................................................

2,944
1,758
1,438

2,935
1,749
1,427

11

10,000 to 15,000..........................................................
15,000 to 25,000..........................................................
25,000 to 50,000..........................................................

650
570
558

640
551
531

19
27

50,000 to 100,000........................................................
100,000 to 500,000......................................................
500,000 or more..........................................................

375
571
410

365
543
344

9
9
10

10

28
66

A large number of the commercial banks were located in the smaller
centers. Almost one-third of the banks were in centers with population
of less than 1,000, more than one-half in centers with population of from
1,000 to 25,000, and less than one-sixth were located in cities with popu­
lation of 25,000 or more. The 344 insured commercial banks located in
cities with population of 500,000 or more held nearly one-half of the total
deposits, one-fourth of the insured deposits, and one-fourth of the total
number of accounts in all insured commercial banks. Figures showing
deposits and accounts in insured commercial banks grouped according
to the population of the centers in which they are located are given in
Tables 41 and 42, pages 74 and 75.



S U R V E Y OF DEPOSITS IN IN SU R ED B A N K S

65

Mutual savings banks for the most part are operated in the larger
centers. Sixty-six of the 192 were located in cities with a population of
500,000 or more. No mutual savings banks were located in centers with
a population of less than 500. About one-third were in centers with
population of from 500 to 25,000 and another one-third in those with
population of from 25,000 to 500,000. Data on accounts and deposits
of mutual savings banks grouped by population of center are given in
Tables 45 and 46, pages 78 and 79.

CHART F
NUMBER OF INSURED COMMERCIAL BANKS
GROUPED BY AMOUNT OF DEPOSITS
1934, 1941, 1945
NM RO BNS
UB F AK
E

NM R O BNS
UB F AK
E

The rapid growth in deposits in insured commercial banks, combined
with reorganizations, consolidations, and other similar changes, has
resulted in a substantial shift in the distribution of banks when grouped
by the amount of their deposits. The shifts which have occurred are
shown in Table 36 and Chart F. Between October 1, 1934, and October
10, 1945, the number of insured commercial banks each with deposits
of $250,000 or less decreased from 5,106 to 89. Only a few of these banks
ceased operations. Most of them increased in size and at the later date
appeared as banks with greater amounts of deposits. In 1934 only 96
banks had deposits amounting to more than $50,000,000 each, while in
1945 there were 299 banks in this group. The number of insured mutual
savings banks has changed so radically during the past four years and
the number prior to 1941 was so small, that figures showing changes
in their size distribution are of no significance.



66

FE D E RA L D EPOSIT IN SU R AN C E CORPORATION

Table 36.

N u m b e r o f I n s u r e d C o m m e r c ia l B a n k s
S p e c ia l C a l l D a t e s ,

1934-1945

GRO UPED B Y AM O UN T OF D EPOSITS

Oct. 10,
1945

Sept. 24,
1941

Sept. 21,
1938

May 13,
1936

13,289

13,434

13,705

14,085

14,060

89
663

/ 188
\ 1,649
2,986

570
2,592
3,203

917
3,028
3,300

1,513
3,593
3,115

$500,000 to $1,000,000.............................
$1,000,000 to $2 ,000,000 ..........................
$2,000,000 to $5,000,000..........................

2,235
3,510
3,829

3,226
2,413
1,747

2,913
2,052
1,411

2,751
1,926
1,282

2,421
1,631
1,060

$5,000,000 to $10,000,000.........................
$10,000,000 to $50,000,000.......................
More than $50,000,000.............................

1,553

589
478
158

484
360

Size of bank

All banks.. ...................................................
Banks with deposits of—
$100,000 or less.........................................
$100,000 to $250,000................................ J
$250,000 to $500,000................................

D

e p o s it s

in

1,111

299

120

441
331 1
109

Oct. 1,
1934

631
96

I n s u r e d C o m m e r c ia l B a n k s

On October 10, 1945, the 13,289 insured commercial banks reported
total deposits amounting to $130 billion, of which $57 billion or 43 percent
were covered by the provision of a $5,000 maximum insurance for each
depositor. The banks reported 82 million accounts, 79 million or 96.5
percent of which did not exceed $5,000. On September 24, 1941, the 13,434
insured commercial banks had total deposits amounting to $68 billion,
of which $26 billion or 38 percent were covered by the $5,000 maximum.
The banks reported 67 million accounts, of which 66 million or 98.1
percent did not exceed $5,000.
Between 1941 and 1945, the amount of deposits in insured commercial
banks increased by $62 billion or 93 percent and the number of accounts
by 15 million or 22 percent, notwithstanding a decrease of 145 in the
number of these banks. The average size of accounts increased from
$1,013 in 1941 to $1,598 in 1945. The amount of deposits in accounts of
$5,000 or less increased by 113 percent while the number of such accounts
increased by only 20 percent. As a result the average size of these ac­
counts increased from $301 to $535, an increase of 78 percent. The
number of accounts in excess of $5,000 increased at a more rapid rate
than the deposits in these accounts, bringing about a decline during the
4-year period in the average size of these accounts. This decline was only
slight in the average balances in accounts of between $5,000 and $10,000
and of between $10,000 and $25,000, but accounts of over $25,000 showed
average balances of $153,452 in 1945 as compared with $161,665 in 1941,
or a decline of 5 percent.
During the war period many new accounts were opened and many
accounts increased in size. Individuals who in 1941 had not kept an
account with a bank opened savings or checking accounts when their



67

DEPOSITS IN IN SU R ED COM M ERCIAL B A N K S

liquid funds accumulated. About 13 million of the 15 million increase
in the number of accounts was in those with balances not in excess of
$5,000. However, relatively fewer accounts were fully covered by the
$5,000 provision than at any time since the beginning of deposit insurance
in 1934. Increases in income combined with wartime restrictions on
expenditures resulted in the accumulation of larger balances by many
depositors. Some accounts which before the war were less than $5,000
grew to exceed that amount. In 1945, 2.1 percent of the accounts had
balances of between $5,000 and $10,000 as compared with 1.0 percent
in 1941. There were relative increases also in the number of accounts in
excess of $10,000 and of $25,000.
Deposits in the smaller accounts made up a larger proportion of the
total in 1945 than before the war. Deposits in accounts of $5,000 or less
were 32 percent of the total as compared with 29 percent in 1941. On the
other hand, deposits in accounts of over $25,000 made up only 51 percent
as compared with 57 percent in 1941. Figures are shown in Table 37.

T a b le 3 7.

A c c o u n t s a n d D e p o s it s i n I n s u r e d C o m m e r c ia l B a n k s
O c t o b e r 10, 1945, a n d S e p t e m b e r 24, 1941
GROUPED BY SIZE OF ACCOUNT
Accounts of—

Account or deposit item

A ccounts
Num ber (in thousands). . . .
1945...................................
1941...................................
Percent o f total
1945...................................
1941...................................
Deposits
A m ou nt (in thousands)
1945...................................
1941...................................
P ercent of total
1945...................................
1941...................................
Average size o f accounts
1945...................................
1941...................................
Percentage changes,
1941-1945
Number of accounts........
Amount of deposits..........
Average size of accounts..

Total

81,655
66,918

$5,000 or
less

78,773
65,668

$5,000 to
$10,000

$10,000 to
$25,000

1,729
698

More than
$25,000

722
314

431
238

0.9%
0.5

0.5%
0.4

100.0 %
100.0

96.5%
98.1

2 .1 %
1.0

$130,476,724
67,777,691

$42,104,903
19,793,513

$11,485,916
4,657,552

$10,781,722
4,778,657

$66,104,183
38,547,969

100.0 %
100.0

32.3%
29.2

8 .8 %
6.9

8 .2 %

50.7%
56.9

$1,598
1,013

22 %

93
58

$535
301

20 %

113
78

$6,643
6,676

7.0

$14,930
15,235

148%
147
-1

130%
126
-2

$153,452
161,665

81%
71
-5

N ote : Percentages were calculated from the original figures before rounding.

The percentage of accounts with balances of $5,000 or less declined
only slightly during the early years of deposit insurance from 98.5 percent
in 1934 to 98.1 percent in 1941. No great differences appeared among
various size groups of banks. However, since 1941 the percentage has



PERCENTAGE
IN S U R E D

G

IN C R E A S E

IN

C O M M E R C IA L

D E P O S IT S

OF

BAN KS

S e p t e m b e r 2 4 , 194 -1 t o O c t o b e r 1 0 ,1 9 4 5
,
FEDERAL
DEPOSIT
INSURANCE
CORPORATION




CHART

69

DEPOSITS IN IN SU R ED COM M ERCIAL B A N K S

declined somewhat in all size groups of banks and in 1945, 96.5 percent
of accounts in all banks had balances of $5,000 or less. Figures for insured
commercial banks grouped by amount of deposits are shown in Table 38
for each of the special call dates.
T a b le 3 8.

P ercent

of

T otal N umber

of

A ccounts

w ith

B alances

of

$5,000 or L ess , Special C all D ates , 1934-1945
insured commercial banks grouped by amount of deposits

Oct. 10,
1945

Size of bank

All ba n k s......................................................

Sept. 24,
1941

Sept. 21,
1938

May 13,
1936

96.5%

98.1%

98.4%

98.4%

98.5%

Oct. 1,
1934

Banks w ith deposits o f—
$100,000 or less......................................... J
$100,000 to $250,000.................................
$250,000 to $500,000.................................

98.7
98.5

/ 99.8
\99.6
99.3

99.8
99.6
99.4

99.8
99.6
99.4

99.7
99.6
99.4

$500,000 to $1,000,000.............................
$1,000,000 to $2 ,000,000 ...........................
$2,000,000 to $5,000,000...........................

98.0
97.5
97.2

99.1
98.9
98.7

99.2
99.0
98.8

99.2
99.0
98.8

99.3
99.1
98.8

$5,000,000 to $50,000,000.........................
More than $50,000,000.............................

96.8
95.3

98.1
96.9

98.3
97.1

98.2
97.0

98.3
97.2

The percent of deposits covered by the $5,000 maximum showed more
variation than the percent of accounts fully protected. The variation
was especially great when banks were grouped by amount of deposits,
ranging in 1945 from 89 percent in the smallest banks to 27 percent in
the group of banks with deposits of more than $50,000,000 each. The
coverage was less in 1941 than at any other call. Increases in coverage
between 1941 and 1945 were greatest in the various groups of banks
with deposits in excess of $1,000,000 each. Table 39 shows the coverage
of deposits given by the $5,000 provision on the various call dates with
banks grouped by amount of deposits.
T a b le 3 9.

Percent

of

D eposits I nsured

with a

M aximum C overage

of

$5,000, Special C all D ates , 1934-1945
insured commercial banks grouped by amount of deposits

Size of bank

All banks......................................................

Oct. 10,
1945

Sept. 24,
1941

Sept. 21,
1938

May 13,
1936

43%

38%

45%

43%

43%

Oct. 1,
1934

Banks with deposits of—
$100,000 or less......................................... }
$100,000 to $250,000.................................
$250,000 to $500,000.................................

89

/ 96
\92

91

88

95
91
87

95
90

88

86

83

$500,000 to $1,000,000.............................
$1,000,000 to $2 ,000,000 ...........................
$2,000,000 to $5,000,000...........................

85
81
75

84
79
72

84
79
74

82
78
72

78
74
69

$5,000,000 to $50,000,000.........................
More than $50,000,000.............................

60
27

53
21

55
26

52
25

49
25




86

70

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

In every State the percentage of accounts in commercial banks which
exceeded $5,000 was greater in 1945 than in any previous call. The
percent of deposits protected with the $5,000 maximum increased in
27 States and decreased in 21 States, in the District of Columbia, and in
the possessions. The increases occurred particularly in the States where
the coverage was low and the decreases in the States where the coverage
was high. Variation among States in the proportion of deposits covered
was wide, ranging from 79 percent in Vermont to 20 percent in New
York. In 1941, the coverage ranged from 84 percent in North Dakota to
17 percent in New York. Figures relating to accounts and deposits in
insured commercial banks in 1945 in each State are presented in Tables
43 and 44, pages 76 and 77.
During the 4-year period, 1941-1945, deposits in insured commercial
banks of the United States increased by 93 percent. The growth was not
uniform throughout the country, however, ranging from 53 percent in
New York to 264 percent in North Dakota. The rate of increase was
less than the national average in all of the 11 New England and Middle
Atlantic States and in Illinois. Banks in these States held more than
one-half of the deposits of the country. The percentage increases in
deposits in each State are shown in Chart G.
A $5,000 maximum coverage gave full protection to all of the deposits
in only 11 banks. Insurance protection with banks grouped by percent
of deposits insured is shown in Tables 40 and 41. If a limit of $10,000 or
$25,000 had been in effect on October 10, 1945, full protection would
have been given to the deposits in 163 banks by the former provision
and in 1,889 banks by the latter. Under a $10,000 or $25,000 limit deposit
coverage would have been increased from the present 43 percent to 49
percent and 57 percent respectively. The percentage of accounts fully
covered would have been increased from 96.5 percent to 98.6 percent and
99.5 percent respectively.
D

e p o s it s

in

I nsured M

utual

Sa v i n g s B a n k s

On October 10, 1945, the 192 insured mutual savings banks held total
deposits amounting to $10.1 billion, of which $9.3 billion or 92 percent
were covered by the provision of a $5,000 maximum insurance for each
depositor. The banks reported 10.7 million accounts, 10.2 million or
95.7 percent of which did not exceed $5,000. On September 24, 1941, the
53 mutual savings banks which were then insured held total deposits
amounting to $1.8 billion, of which 89 percent were covered by the
$5,000 maximum. The banks reported 2.6 million accounts, 96.9 percent
of which did not exceed $5,000.
During the four years between September 24, 1941, and October 10,
1945, the number of mutual savings banks which were insured increased



71

DEPOSITS IN IN SU R ED M U TU AL SAYINGS B A N K S

by 139 as a result of the admission to insurance of 141 banks and the
absorption of 2 banks. The 141 banks admitted were located as follows:
128 in New York; 9 in New Jersey; 2 in Connecticut; 1 in Maryland;
and 1 in Pennsylvania. The 2 banks which were absorbed were located
in the States of New York and Washington. It is estimated that the
admission to insurance of these 141 banks accounted for an increase of
8 million in the number of accounts, of $8 billion in the amount of total
deposits, and of $7.5 billion in the amount of insured deposits. Figures for
mutual savings banks on the two dates appear in Table 40.
Table 40.

A c c o u n t s a n d D e p o s it s in I n s u r e d M u t u a l S a v in g s B a n k s
O ctober

10, 1945,

and

Septem ber

24, 1941

GRO UPED B Y SIZE OF ACCOU NT

Accounts of—
Account or deposit item

A ccounts
Num ber (in thousands)
1945...................................
1941...................................
Percent of total
1945...................................
1941...................................
Deposits
A m ou nt (in thousands)
1945...................................
1941...................................
Percent o f total
1945...................................
1941...................................
Average size o f accounts
1945...................................
1 9 4 1 .................................
Percentage changes,
1941-1945
Number of accounts........
Amount of deposits..........
Average size of accounts.

Total

10,678
2,577

$5,000 or
less

10,215
2,497

$5,000 to
$10,000

$10,000 to
$25,000

More than
$25,000

441
71

21

9

i

4.1%

0 .2 %

2
2

1

100.0 %
100.0

95.7%
96.9

$10,125,977
1,788,236

$7,031,470
1,197,303

$2,797,045
457,145

$268,101
116,511

$29,361
17,277

100.0 %
100.0

69.4%
66.9

27.6%
25.6

2.7%
6.5

0.3%

$948
694

314%
466
37

$688

480

309%
487
43

0.3

2.8

$6,347
6,473

$12,603
13,431

524%
512
-2

145%
130
-6

1.0

$40,666
36,996

55%
70
10

1 Less than 500.
2 Less than 0.05%.

N ote: Percentages were calculated from the original figures before rounding.

During the four years the coverage under the $5,000 provision increased
from 89 percent to 92 percent and the percent of accounts which did not
exceed $5,000 decreased from 96.9 to 95.7 percent. These changes resulted
from the extraordinary deposit growth which occurred in all mutual
savings banks, especially during 1944 and 1945, rather than from the
admission of the 141 banks. The distribution of accounts and deposits
was much the same in the newly insured banks as in the banks insured
in 1941.
Deposits in mutual savings banks were 92 percent covered by the
$5,000 provision as compared with 43 percent coverage in commercial



72

FE D E RA L D EPOSIT IN SU R AN C E CORPORATION

banks. However, time and savings deposits of individuals, partnerships,
and corporations in commercial banks were about 90 percent covered.
Only 95.7 percent of the accounts in mutual savings banks were fully
protected in 1945 as compared with 96.5 percent of the accounts in
commercial banks.
While the chief factor in the large increase in the number of accounts
and the amount of deposits in insured mutual savings banks was the
admission of the 141 banks, there was also an unusually high rate of
T
growth in the individual banks. The most rapid growth was in accounts
of between $5,000 and $10,000 where the increase was more than 500
percent. The average size of all accounts increased from $694 to $948.
The average size of accounts of $5,000 or less and of more than $25,000
increased, while the average size of accounts in the two intermediate
size groups declined.
A grouping of mutual savings banks by amount of deposits showed
a higher percentage of accounts fully protected by the $5,000 provision
in small banks than in large banks. In the one bank with deposits of
$500,000 or less, 98.6 percent of the accounts were fully covered and in
the group of 30 banks each with deposits of over $100,000,000, 95.1
percent. A similar tendency was found in commercial banks.
The percentage of deposits covered did not vary according to the size
of mutual savings banks. Deposits were 92 percent covered by the $5,000
provision in both the smallest bank and in the group of banks each with
deposits in excess of $100,000,000, while in the seven intermediate size
groups coverage ranged from 89 to 96 percent. In commercial banks
coverage ranged from 89 percent in the smallest banks to 26 percent in
the largest banks.
Greater variations were found when banks were grouped by State than
when grouped by size. Some State laws place limitations upon the amounts
which may be deposited in mutual savings banks. The limitations vary
from $4,000 to $25,000, although in some States accumulated dividends
may be added. No limitations are contained in the laws of Maine, Mary­
land, Ohio, Pennsylvania, and Vermont. Individual banks may place
restrictions upon the amounts they will accept as deposits irrespective
of any legal limitations imposed by the States.
In all but one of the 13 States in which the insured mutual savings
banks were located the banks reported less than 5 percent of their ac­
counts in excess of $5,000; in Maryland less than 1 percent were reported
as exceeding that amount. Oregon was the one State in which more than
5 percent of the accounts were in excess of $5,000; 10 percent of the
accounts were between $5,000 and $10,000, but none exceeded $10,000.
Only 722 accounts in all insured mutual savings banks exceeded $25,000.
Of these, 392 were in banks in Pennsylvania and 165 in Ohio. There



DEPOSITS IN IN SU R ED M U TU AL SA Y IN G S B A N K S

73

were 21,273 accounts between $10,000 and $25,000 and 440,720 between
$5,000 and $10,000. The provision for a $5,000 maximum insurance
covered about 85 percent of the deposits in insured mutuals of Con­
necticut, Ohio, and Pennsylvania and 90 percent or more in banks of
the other 10 States. Figures for mutual savings banks grouped by amount
of deposits, by population of the center in which the banks were located,
and by State are shown in Tables 45 and 46.
The reports made by the banks indicated that the $5,000 insurance
limit did not fully protect the deposits in any insured mutual savings bank.
It afforded 90 percent or more coverage to the deposits in 148 banks, 80
to 89 percent to the deposits in 43 banks, and less than 80 percent (79
percent) to the deposits in only 1 bank. A change in the insurance maxi­
mum to $10,000 or $25,000 for each depositor would give full protection
to all deposits in 8 and 136 banks, respectively, and would give 90 percent
or more protection in all the remaining banks. Under either limit, deposit
coverage would be increased from the present 92 percent to 99 percent.
The percent of accounts fully protected would be increased from the
present 95.7 percent to 99.8 percent by a $10,000 limit, while a $25,000
limit would fully protect all but 722 of the 10,678,296 accounts in these
banks.




74

F EDERAL DEPOSIT IN SU RAN CE CORPORATION

Table 41.

D is t r ib u t io n o f A c c o u n t s A c c o r d in g t o S iz e
O c t o b e r 10, 1945

in s u r e d c o m m e r c ia l b a n k s g r o u p e d b y c l a s s , a m o u n t o f d e p o s it s , p o p u l a t io n o f

CENTER IN WHICH LOCATED, AND PERCENT OF DEPOSITS INSURED
Number of accounts (in thousands)
Classification

Number
of
banks

Percent
of
accounts
of $5,000
or less

Total

$5,000
or less

$5,000
to
$10,000

$10,000
to
$25,000

More
than
$25,000

1,729

722

431

96.5%

T o ta l................................................

13,289

81*655

78,773

Class o f bank
National banks members F. R.
System......... .....................
State banks members F. R.
System..................................
Banks not members F. R. System

5,014

44,161

42,553

944

407

257

96.4

1,846
6,429

18,973
18,521

18,206
18,014

438
347

196
119

133
41

96.0
97.3

Banks with deposits o f—
$250,000 or less...........................
$250,000 to $500,000...................
$500,000 to $1,000,000...............

89
663
2,235

31
438
2,390

31
431
2,342

5
35

2
11

2

98.7
98.5
98.0

$ 1,000,000 to $2 ,000,000 ............
$2,000,000 to $5,000,000............
$5,000,000 to $10,000,000..........

3,510
3,829
1,553

6,431
13,920
11,487

6,272
13,539
11,154

113
261
219

36
91
82

29
32

10

97.5
97.2
97.1

$10,000,000 to $25,000,000
$25,000,000 to $50,000,000........
$50,000,000 to $100,000,000___
More than $100,000,000 .............

847
264
134
165

11,739
6,684
5,410
23,125

11,361
6,442
5,196
22,005

236
143

96
63
55
286

46
36
39
237

96.8
96.4
96.1
95.2

Banks in center with popuulation o f—
Less than 250...............................
250 to 500. ...................................
500 to 1,000.................................

554
1,387
2,263

527
1,582
3,357

513
1,544
3,269

28
63

3
8
20

1
2

97.3
97.6
97.4

1,000 to 2,500..............................
2,500 to 5,000..............................
5,000 to 10,000............................

2,935
1,749
1,427

6,676
6,108
6,976

6,498
5,937
6,775

125
116
133

42
41
50

14
18

10,000 to 15,000..........................
15,000 to 25,000..........................
25,000 to 50,000..........................

640
551
531

4,252
4,858
6,363

4,128
4,709
6,164

81
96
125

31
37
50

16
24

50,000 to 100,000........................
100,000 to 500,000......................
500,000 or more...........................

365
543
344

6,176
14,025
20,755

5,978
13,506
19,752

117
294
541

51
129
260

202

11

Banks with percent of de­
posits insured o f—

120

597

10

5
11

97.3
97.2
97.1

12

97.1
96.9
96.9

30
96

96.8
96.3
95.2

90 to 99 percent...........................
80 to 89 percent...........................

1,697
4,729

4
2,769
12,853

4
2,729
12,568

33

6

1

211

60

14

98.6
97.8

70 to 79 percent...........................
60 to 69 percent...........................
50 to 59 percent...........................

3,640
1,796
768

16,512
17,715
11,944

16,051
17,151
11,478

317
366
289

109
142
118

35
56
59

97.2
96.8
96.1

40 to 49 percent...........................
30 to 39 percent...........................
20 to 29 percent...........................
Less than 20 percent...................

300
165

6,005
4,484
5,831
3,538

5,752
4,288
5,536
3,216

143

69
53
79

41
41
73

86

111

95.8
95.6
94.9
90.9

100 percent...................................

N ote:

110

73

102

143
125

100.0

Percentages were calculated from the original figures before rounding.




75

DEPOSITS IN IN SU RED COM MERCIAL B A N K S

Table 42.

D is t r i b u t io n o f D e p o s it s A c c o r d in g t o S iz e o f A c c o u n t
O ctober

10, 1945

in s u r e d c o m m e r c ia l b a n k s g r o u p e d b y c l a s s , a m o u n t o f d e p o s it s , p o p u l a t io n o f

CENTER IN WHICH LOCATED, AND PERCENT OF DEPOSITS INSURED
Deposits (in millions)
Classification

Deposits insured
with $5,000
maximum coverage

In accounts of—
$5,000
or less

$5,000
to
$10,000

$10,000
to
$25,000

More Amount
than
(in
Percent
$25,000 millions)

T o ta l................................................ $130,477 $42,105

$11,486

$10,782

$66,104

$56,514

Total

43%

Class of bank
National banks members F. R.
System..................................
State banks members F. R.
System..................................
Banks not members F. R. System

74,124

22,542

6,289

6,115

39,178

30,583

41

39,659
16,694

10,014
9,549

2,904
2,293

2,935
1,732

23,806
3,120

13,852
12,079

34
72

Banks with deposits o f—
$250,000 or less............................
$250,000 to $500,000...................
$500,000 to $1,000,000................

17
266
1,684

13
204
1,209

32
231

1
22

1
8

150

94

15
236
1,446

85

$1,000,000 to $2 ,000,000 .............
$2,000,000 to $5,000,000.............
$5,000,000 to $10,000,000...........

5,113
11,956
10,738

3,373
7,089
5,707

754
1,725
1,446

526
1,335
1,206

460
1,807
2,379

4,169
8,993
7,370

81
75

$10,000,000 to $25,000,000.........
$25,000,000 to $50,000,000.........
$50,000,000 to $100,000,000
More than $100,000,000..............

12,924
9,044
9,398
69,337

5,842
3,391
2,755
12,522

1,562
953
801
3,980

1,432
944
839
4,327

4,088
3,756
5,003
48,508

7,733
4,602
3,827
18,123

59
50
40
26

Banks in centers with p op u ­
lation o f—
Less than 250...............................
250 to 500.....................................
500 to 1,000.................................

526
1,244
2,781

295
858
1,850

66

43
119
284

122

186
420

81
227

365
1,047
2,287

69
84
82

1,000 to 2,500...............................
2,500 to 5,000...............................
5,000 to 10,000.............................

5,607
5,416
6,412

3,553
3,144
3,515

834
770
885

601
612
733

619
890
1,279

4,444
4,001
4,522

79
73
70

10,000 to 15,000...........................
15,000 to 25,000...........................
25,000 to 50,000...........................

4,050
5,034
6,808

2,094
2,406
3,088

534
632
822

461
553
743

961
1,443
2,155

2,717
3,155
4,082

67
62
60

50,000 to 100,000.........................
100,000 to 500,000.......................
500,000 or more...........................

7,679
24,355
60,565

2,950
7,047
11,305

775
1,948
3,614

761
1,955
3,917

3,193
13,405
41,729

3,937
9,642
16,315

51
39
26

3
1,711
9,518

3
1,384
6,594

212

1,379

89
872

26
673

3
1,585

100

90 to 99 percent...........................
80 to 89 percent...........................

8,021

92
84

70 to 79 percent...........................
60 to 69 percent...........................
50 to 59 percent...........................

14,301
17,939
16,129

8,417
8,745
6,608

2,092
2,431
1,914

1,596
2,071
1,750

2,196
4,692
5,857

10,723
11,563
8,938

75
64
55

40 to 49 percent...........................
30 to 39 percent...........................
20 to 29 percent...........................
Less than 20 percent...................

9,880
9,244
17,390
34,362

3,176
2,257
2,961
1,960

950

1,033
805
1,223
1,343

4,721
5,494
12,236
30,209

4,440
3,237
4,439
3,565

44
35
25
10

2

89
88

68

Banks with percent of de­
posits insured o f—
100 percent...................................

N ote:

688

970
850

Percentages were calculated from the original figures before rounding.




76

F E D E R A L DEPOSIT IN SU RAN CE CORPORATION

T a b le 4 3 .

D is t r ib u t io n o f A c c o u n t s A c c o r d in g t o S iz e
O c t o b e r 10, 1945

in s u r e d

c o m m e r c ia l b a n k s g r o u p e d

by

state

Number of accounts (in thousands)
State

United States and pos­
sessions— to ta l.............

Number
of
banks

Total

$5,000
or less

$5,000
to
$10,000

$10,000
to
$25,000

More
than
$25,000

Percent of
accounts
of $5,000
or less

13,289

81,655

78,773

1,729

722

431

96.5%

United States—t o ta l..
State
Alabama.....................
Arizona........................
Arkansas.....................
California....................
Colorado......................

13,284

81,621

78,741

1,728

721

431

96.5%

212
11

1,159
241
629
8,191
604

1,131
230
610
7,835
576

17
7

7
3
5

4

Connecticut...............
Delaware.....................
District of Columbia..
Florida........................
Georgia........................

99
39
166
290

959
192
693
995
1,310

931
184
672
950
1,273

21

Idaho...........................
Illinois.........................
Indiana........................
Iowa............................
Kansas........................

45
832
471
591
446

260
5,221
2,117
1,560
1,013

248
5,008
2,052
1,509
975

126
42
34
23

Kentucky....................
Louisiana.....................
Maine..........................
Maryland....................
Massachusetts............

362
150
56
169
183

1,200

20

2,142

1,168
1,079
487
1,166
2,061

42

22

Michigan.....................
Minnesota...................
Mississippi..................
Missouri......................
Montana.....................

413
646
197
561

3,361
1,752
685
2,430
296

3,259
1,702
667
2,356
280

67
31

23

Nebraska.....................
Nevada........................
New Hampshire.........
New Jersey.................
New M exico...............

351

742
87
215
4,183
187

712
82

18
3
3
75
5

New Y ork...................
North Carolina...........
North Dakota............
Ohio.............................
Oklahoma...................

679
223
146
663
371

8,001

Oregon.........................
Pennsylvania..............
Rhode'Island..............
South Carolina...........
South Dakota.............

69

208
189
132

21

111
8

57
344
41

1,010

16
121

165

1,113
498
1,201

210

4,073
179

233
17
17
5
12

27
8

19
7

21

11

42
10

88

7
7
2
6
12
10

3
52
15

4
1

3
6
6
1

35
8

12
10

5
5

8

4

9
3
9

11

5
18
4
8
1
1

6
1

5
17
12
8
2

14
2

4

2

1
1
11
1

112

98

9
3
36
9

6
1
21

8

4
30

24

208

1,241
323
4,611
1,118
822
7,010
477
525
345

787
6,802
463
508
333

23
126
9

1,393
3,344
370
302
1,825

23
73
5
26

1
10

5

32
43
4

13
5
14

3
7

2

1

1

286
799
57
71
313

1,432
3,474
383
308

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

119
173
546
56

1,200

974
2,118
157

1,149
954
2,054
150

Possessions—t o ta l. . . .

5

34

32

1,866

20

9
96
19

10
8

8

12

52
3
5
3
10

36
3

1

Percentages were calculated from the original figures before rounding.




1

3
35
4

7,583
1,206
310
4,458
1,085

Tennessee....................
Texas. .........................
Utah............................
Vermont......................
Virginia.......................

N ote:

11

5

2
2
1
6
21
2

6

97.5
95.6
97.0
95.7
95.4
97.0
95.6
96.8
95.5
97.2
95.2
95.9
96.9
96.7
96.3
97.3
97.0
97.7
97.0
96.2
96.9
97.2
97.3
96.9
94.8
95.9
94.2
97.3
97.3
95.8
94.8
97.2
96.0
96.7
97.1
95.8
97.0
97.0
96.8
96.7
97.3
96.3
96.9
97.9
97.8
95.7
97.9
97.0
95.9
95.9%

77

DEPOSITS IN IN SU R ED COM M ERCIAL B A N K S

T a b le 4 4 .

D is t r i b u t io n o f D e p o s it s A c c o r d in g t o S iz e o f A c c o u n t
O c t o b e r 10, 1945
IN SU R ED CO M M ERCIAL B A N K S G RO U PED B Y STATE

Deposits (in millions)

Deposits insured
with $5,000
maximum coverage

In accounts of—
State

Total

United States and pos­
sessions—total............. $130,477
United States— total.. $130,438
State
1,147
Alabama......................
335
Arizona.......................
688
Arkansas.....................
11,393
California....................
1,002
Colorado.....................

$5,000
or less

$5,000
to
$10,000

$10,000
to
$25,000

More
than
$25,000

Amount
(in
millions)

Percent

$42,105

$11,486

$10,782

$66,104

$56,514

43%

$42,083

$11,479

$10,778

$66,098

$56,485

43%

490
143
328
4,685
370

112

111

44
74
1,548

43
72
1,257
106

434
105
214
3,903
414

633
196
421
6,464
506

55
58
61
56
50

112

Connecticut................
Delaware.....................
District of Columbia..
Florida.........................
Georgia.......................

1,171
390
953
1,523
1,576

466
96
318
533
572

31
84
179
140

108
35
90
182
145

485
228
461
629
719

608
138
427
756
756

51
35
44
49
48

Idaho...........................
Illinois.........................
Indiana........................
Iowa............................
Kansas.........................

365
10,395
2,534
1,792
1,321

171
2,765
1,127
855
571

54
837
276
231
157

47
789
231
178
146

93
6,004
900
528
447

233
3,831
1,454
1,116
759

63
36
57
62
57

Kentucky....................
Louisiana.....................
Maine..........................
Maryland....................
Massachusetts............

1,352
1,421
404
1,412
4,196

619
487
203
515
1,018

135
125
49
142
284

120

136
42
137
335

478
673
618
2,559

782
655
261
693
1,421

57
46
64
49
33

Michigan.....................
Minnesota...................
Mississippi..................
Missouri......................
Montana.....................

4,460
2,437
685
3,830
465

1,864
954
340
1,207
203

441
203
74
285

346
166
75
280
59

1,809
1,114
196
2,058
137

2,378
1,203
432
1,580
280

53
49
63
41
60

Nebraska.....................
Nevada.......................
New Hampshire.........
New Jersey.................
New Mexico................

1,132
139
196
3,965
243

436
57
87
1,962
107

124
23
482
32

114
19
358
34

458
43
64
1,163
70

586
82
116
2,515
147

51
59
59
63
60

New Y ork...................
North Carolina...........
North Dakota............
Ohio.............................
Oklahoma...................

31,313
382
6,240
1,382

4,361
578
228
2,447
527

1,390
131
63
627
130

1,713
139
41
530
129

23,849
820
50
2,636
596

6,452
753
293
3,207
691

45
76
51
50

Oregon.........................
Pennsylvania..............
Rhode Island..............
South Carolina...........
South Dakota.............

1,225
9,255
574
585
377

560
3,226
196
250
213

151
831
57
67
52

119
771
50
70
39

395
4,427
271
198
73

733
4,265
267
333
270

59
46
46
57
71

Tennessee....................
Texas...........................
Utah.............................
Vermont......................
Virginia.......................

1,708
4,986
499

665
1,766
190
135
749

153
498
48
30
169

147
541
40
19
153

743
2,181

860
2,410
249
168
955

50
48
49
79
57

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

1,893
803
2,561
191

765
400
1,190

191
73
204
26

724
247
884
50

1,022

88

213
83
283
27

120

54
62
58
62

Possessions—total. . . .

$39

$22

$7

$4

$6

$29

73%

N ote:

1,668

212

1,662

112

66
20

22

110

221

28
591

Percentages were calculated from the original figures before rounding.




499
1,509

20

78

F E D E RA L D EPOSIT IN SU RAN CE CORPORATION

Table 45.

D istribution of A ccounts A ccording
O ctober 10, 1945

to

Size

IN SU R ED M U T U A L SA YIN G S B A N K S GRO UPED B Y A M O U N T OF D EPO SITS,
PO PU LA TIO N OF CE N TE R IN W H IC H LO CA TE D , AN D STATE

Number of accounts
Number
of
banks

Classification

United States—t o t a l.........

192

Total

$5,000
or less

10,678,296 10,215,581

$5,000
to
$10,000

$10,000
to
$25,000

More
than
$25,000

440,720

21,273

722

Percent of
accounts
of $5,000
or less

95.7%

Banks with deposits
o f—
$250,000 to $500,000.........
$500,000 to $1,000,000___
$1,000,000 to $2 ,000,000 ...

1
2
6

1,359
2,270
19,219

1,340
2,231
18,812

15
36
343

4
3
62

2

$2,000,000 to $5,000,000...
$5,000,000 to $10,000,000..
$10,000,000 to $25,000,000.

25
31
45

119,006
295,308
845,475

115,397
285,241
812,057

3,440
9,639
31,459

159
417
1,875

84

$25,000,000 to $50,000,000.
$50,000,000 to $100,000,000
More than $100,000,000. . .

26
26
30

1,155,001
2,186,746
6,053,912

1,111,620
2,114,354
5,754,529

41,631

1,718
3,305
13,730

221

285,291

Banks in centers with
popu lation of—
500 to 1,000........................

3

17,333

16,180

1,112

40

1

93.4

9
9

44,104
33,469
109,532

41,643
31,763
105,101

2,372
1,655
4,231

88

1

51
195

94.4
94.9
95.9

78,158
257,410
476,719

75,252
247,745
460,211

2,738
8,912
15,438

164
731
1,023

22

47

96.3
96.2
96.6

289,491
1,625,063
7,747,017

279,660
1,572,876
7,385,150

9,347
50,044
344,871

452
2,106
16,423

32
37
573

96.6
96.8
95.3

23,781
23,117
36,591
198,042

22,854
22,266
35,865
196,445

745
734
633
1,392

177
96
90
187

5
21

3
18

96.1
96.3
98.0
99.2

239,531
634,366
7,811,796
198,531

235,434
619,856
7,431,285
189,569

4,084
12,536
371,758
7,294

13
1,897
8,727
1,503

77
26
165

98.3
97.7
95.1
95.5

4,353
1,130,433
101,415
251,803
24,537

3,884
1,090,551
99,140
244,190
24,242

469
31,178
2,080
7,560
257

8,312
184
52
35

1,000 to 2,500.....................
2,500 to 5,000.....................
5,000 to 10,000...................

11

10,000 to 15,000.................
15,000 to 25,000.................
25,000 to 50,000.................

19
27

50,000 to 100,000...............
100,000 to 500,000.............
500,000 or more.................

28

10

10
66

State
Connecticut........................
Indiana................................
Maine.................................
Maryland...........................

3

Minnesota...........................
New Jersey.........................
New Y o rk ..........................
Ohio.....................................

131
3

Oregon.................................
Pennsylvania......................
Vermont..............................
Washington........................
Wisconsin............................
N o te:

2

3
6
1
22

1

7
8
2

3

68,866

10
11

32
362

5
4

392
11
1

3

98.6
98.3
97.9
97.0
96.6
96.1
96.3
96.7
95.1

89.2
96.5
97.8
97.0
98.8

Percentages were calculated from the original figures before rounding.

Appendix
L imitations

of

D ata

on

I nsured D eposits

Special Surveys , 1936-1945
The deposit insurance law provides that in any insured bank closed on account of
inability to meet the demands of its depositors, each depositor shall have insurance
protection to a maximum of $5,000 upon his deposits therein maintained in the same
right and capacity.1 If a depositor has more than one account, for example, a personal
1 For these provisions, see subsections (c) (13) and (1) (6) of the Federal deposit insurance law,
as amended, Title 12, U.S.C., 1940 ed., sec. 264.




79

DEPOSITS IN IN SU R ED M U TU AL SAYIN GS B A N K S

Table 46.

D is t r i b u t io n o f D e p o s it s A c c o r d in g t o S iz e o f A c c o u n t
O c t o b e r 10, 1945

in s u r e d m u t u a l s a y in g s b a n k s
p o p u l a t io n

g r o u p e d b y a m o u n t o f d e p o s it s ,

o f c e n t e r in w h ic h l o c a t e d , a n d

state

Deposits (in thousands)
Classification

Deposits insured
(fKA A
A
W i t /ll tpO,UUU
maximum coverage

In accounts of—
Total

$5,000
or less

$5,000
to
$10,000

United States— total......... $10,125,977 $7,031,470 $2,797,045

$10,000
to
$25,000
$268,101

More
than
$25,000

Amount
(in
thousands)

Per­
cent

$29,361 $9,345,045

92%

Banks with deposits
of—
$250,000 to $500,000.........
$500,000 to $1,000,000___
$1,000,000 to $2,000,000...

443
1,340
9,847

315
1,096
6,758

87
203
2,210

41
41
826

53

410
1,291
8,793

92
96
89

$2,000,000 to $5,000,000...
$5,000,000 to $10,000,000. .
$10,000,000 to $25,000,000.

87,394
230,705
716,187

63,069
164,418
486,231

22,015
60,605
202,757

2,011
5,177
23,939

299
505
3,260

81,114
214,753
653,320

92
93
91

$25,000,000 to $50,000,000.
$50,000,000 to $100,000,000
More than $100,000,000. . .

938,726
1,757,666
6,383,669

649,843
1,265,325
4,394,415

266,791
438,689
1,803,708

21,102
43,307
171,657

990
10,365
13,889

866,748
1,627,286
5,891,330

92
92
92

Banks in centers with
population of—
500 to 1,000........................

21,346

13,476

7,355

487

28

19,241

90

1,000 to 2,500.....................
2,500 to 5,000.....................
5,000 to 10,000...................

43,384
33,706
95,640

26,764
22,201
65,529

15,582
10,863
27,545

1,009
642
2,396

29
170

39,068
30,731
87,684

90
91
91

10.000 to 15,000.................
15.000 to 25,000.................
25,000 to 50,000.................

58,444
205,429
353,247

38,584
137,152
238,919

17,712
57,967
99,565

2,039
9,360
13,047

109
950
1,716

53,114
185,477
321,459

90
90
91

50,000 to 100,000...............
100,000 to 500,000.............
500,000 or more.................

232,750
1,173,104
7,908,927

166,386
830,877
5,491,582

59,395
315,574
2,185,487

5,611
25,367
208,143

1,358
1,286
23,715

215,542
1,091,812
7,300,917

92
93
92

State
Connecticut........................
Indiana...............................
Maine.................................
Maryland...........................

21,249
25,971
22,318
72,747

13,747
19,257
16,984
60,942

4,933
4,458
3,947
8,613

2,383
1,318
1,168
2,545

186
938
219
647

18,382
23,512
20,614
68,927

86
90
92
94

Minnesota...........................
New Jersey.........................
New York...........................
Ohio.....................................

124,883
405,406
8,098,861
200,632

103,286
300,573
5,636,629
125,625

21,384
77,819
2,363,024
46,768

213
24,820
97,742
20,722

2,194
1,466
7,517

123,771
373,123
7,539,184
170,435

99
92
93
84

Oregon.................................
Pennsylvania......................
Vermont.............................
Washington........................
Wisconsin...........................

8,384
907,872
73,813
153,563
10,278

5,945
575,748
58,504
106,083
8,147

2,439
202,990
12,191
46,894
1,585

113,733
2,442
559
456

15,401
676
27
90

8,290
775,158
69,879
144,148
9,622

98
85
94
93
93

N o te:

Percentages were calculated from the original figures before rounding.

checking account and a savings account, the accounts are combined in determining
what amount shall be paid to him by the Corporation. The total net amount, after
deducting the amount he owes the bank, is paid up to a maximum of $5,000. If a
deposit is protected in part by pledge of security, by priority, or by offsetting claims,
only such part, up to a maximum of $5,000, as is not thus protected is paid by the
Corporation.
The term “ insured deposits” , when used in connection with such closed banks,
includes only those claims which the Federal Deposit Insurance Corporation has
paid or expects to pay and does not include claims settled or expected to be settled
by offset, by sale of security, or by the receiver as preferred claims, even though
those claims were covered by the provision for a $5,000 maximum. Table 4, page 17,




80

FE D E RA L DEPOSIT IN SU R AN C E C ORPORATION

shows that in the 245 insured banks placed in receivership, 80 percent of the deposits
were protected by insurance and 10 percent by pledge of security, priority of claims,
or by offsetting; claims. In banks merged with the financial aid of the Federal Deposit
Insurance Corporation, full protection is given all depositors.
The term “ insured deposits” , as used in connection with the special surveys, in­
cludes balances in accounts of $5,000 or less and the first $5,000 in accounts with
balances in excess of that amount. In submitting the reports of their deposits on
October 10, 1945, the operating banks were instructed to report on the basis of ac­
counts as they stood on their books without combining the accounts standing to the
credit of a depositor in the same right and capacity and without deducting offsetting
indebtedness.1 This method was used in order to lessen the work required in the
preparation of the report by the banks. The same method was used in the surveys of
September 24, 1941, September 21, 1938, and May 13, 1936.
Studies made by the Corporation indicate that, although there are substantial
differences among banks, on the average the number of depositors in a given bank is
about 10 percent less than the number of accounts. It is also estimated that in these
special surveys the aggregates of deposits in accounts of not more than $5,000 each
and in the first $5,000 of accounts with balances in excess of that amount were about
2 percent higher than the corresponding figures for deposits standing to the credit of
depositors after combining accounts. As a consequence, the percent of deposits “ in­
sured” in all insured banks, as computed from the reports submitted, was higher
than the proportion actually protected by the $5,000 provision by about 1 percent of
total deposits.
In the special surveys, banks were instructed also to report deposits to agree with
the amounts shown on their certified statements which include uninvested trust funds
and outstanding drafts as well as the items usually reported as deposits in statements
of assets and liabilities. War loan deposits need not be reported on certified statements
and it is estimated that the amount not reported on October 10, 1945, was about
$7 billion. The inclusion of this amount probably would have reduced the percentage
of deposits covered by the $5,000 provision from 46 percent to 44 percent in all insured
banks and from 43 percent to 41 percent in insured commercial banks.
The tabulation of deposits by type was not completed in time to be included in
this report.
i
The form used for the reports on October 10, 1945, was similar to that used on September 21, 1938.
See the Annual Report of the Corporation for 1938, pp. 109-111, for the instructions and form used in
that year.







PART FOUR
LEGISLATION




F e d e r a l L e g is l a t io n R e l a t in g t o I n s u r e d B a n k s
or th e

Co r p o r a t io n

AUDIT OF CORPORATION
[Public L a w 4— 79th C ongress]
[Chapter 4— 1st Session ]
[S. 375]
AN ACT
To provide for the effective administration of certain lending agencies of the Federal
Government.
Be it enacted by the Senate and House o f Representatives o f the United States o f Am erica
in Congress assembled, . . . .
Sec . 5. (a) The financial transactions of all Government corporations shall be audited
by the General Accounting Office in accordance with the principles and procedures
applicable to commercial corporate transactions and under such rules and regulations
as may be prescribed by the Comptroller General of the United States. The audit
shall be conducted at the place or places where the accounts of the respective cor­
porations are normally kept. The representatives of the General Accounting Office
shall have access to all books, accounts, financial records, reports, files, and all other
papers, things, or property belonging to or in use by the respective corporations and
necessary to facilitate the audit, and they shall be afforded full facilities for verifying
transactions with the balances or securities held by depositaries, fiscal agents, and
custodians. The audit shall begin with the current fiscal year.
(b) A report of each such audit for each fiscal year ending on June 30 shall be made
by the Comptroller General to the Congress not later than January 15 following the
close of the fiscal year for which such audit is made. The report shall set forth the
scope of the audit of each corporation and shall include a statement (showing inter­
corporate relations) of assets and liabilities, capital and surplus, or deficit; a statement
of surplus or deficit analysis; a statement of income and expense; and such comments
and information as may be deemed necessary to keep Congress informed of the opera­
tions and financial condition of the several corporations, together with such recom­
mendations with respect thereto as the Comptroller General may deem advisable,
including a report of any impairment of capital noted in the audit and recommendations
for the return of such Government capital or the payment of such dividends as, in
his judgment, should be accomplished. The report shall also show specifically every
program, expenditure, or other financial transaction or undertaking, which, in the
opinion of the Comptroller General, has been carried on or made without authority
of law. A copy of each report shall be furnished to the President and to the corporation
concerned at the time submitted to the Congress.
(c) The expenses of auditing the financial transactions of all Government corpora­
tions as provided in section 5 (a) of this Act may be paid out of appropriations to the
General Accounting Office and appropriations in such sums as may be necessary are
hereby authorized for the purpose: Provided, That by agreement between the General
Accounting Office and said corporation the expenses of said audit may be paid from
funds of such corporation.
Approved, February 24, 1945.




83

84

FE D E R A L D EPOSIT IN SU R AN C E CORPORATION

GOVERNMENT CORPORATION CONTROL ACT
[P u blic L a w 248— 79th Congress]

[Chapter 557— 1st Session ]
[H. R. 3660]
AN ACT
To provide for financial control of Government corporations.
B e it enacted by the Senate and B ouse o f Representatives o f the United States o f Am erica
in Congress assembled, That this Act may be cited as the “ Government Corporation
Control Act” .
DECLARATION OF POLICY
S e c . 2. It is hereby declared to be the policy of the Congress to bring Government

corporations and their transactions and operations under annual scrutiny by the
Congress and provide current financial control thereof.

* * * * *
T IT L E II— M IX E D -O W N E R S H IP G O V E R N M E N T CORPORATIONS
S e c . 201. As used in this Act the term “ mixed-ownership Government corporations”
means (1) the Central Bank for Cooperatives and the Regional Banks for Cooperatives,
(2) Federal Land Banks, (3) Federal Home Loan Banks, and (4) Federal Deposit
Insurance Corporation.
S e c . 202. The financial transactions of mixed-ownership Government corporations
for any period during which Government capital has been invested therein shall be
audited by the General Accounting Office in accordance with the principles and
procedures applicable to commercial corporate transactions and under such rules and
regulations as may be prescribed, by the Comptroller General of the United States.
The audit shall be conducted at the place or places where the accounts of the respective
corporations are normally kept. The representatives of the General Accounting Office
shall have access to all books, accounts, financial records, reports, files, and all other
papers, things, or property belonging to or in use by the respective corporations and
necessary to facilitate the audit, and they shall be afforded full facilities for verifying
transactions with the balances or securities held by depositaries, fiscal agents, and
custodians. The audit shall begin with the first fiscal year commencing after the
enactment of this Act.
S e c . 203. A report of each such audit for each fiscal year ending on June 30 shall
be made by the Comptroller General to the Congress not later than January 15,
following the close of the fiscal year for which such audit is made. The report shall
set forth the scope of the audit and shall include a statement (showing intercorporate
relations) of assets and liabilities, capital and surplus or deficit; a statement of surplus
or deficit analysis; a statement of income and expense; a statement of sources and
application of funds; and such comments and information as may be deemed necessary
to keep Congress informed of the operations and financial condition of, and the use of
Government capital by, each such corporation, together with such recommendations
with respect thereto as the Comptroller General may deem advisable, including a
report of any impairment of capital or lack of sufficient capital noted in the audit and
recommendations for the return of such Government capital or the payment of such
dividends as, in his judgment, should be accomplished. The report shall also show
specifically any program, expenditure, or other financial transaction or undertaking
observed in the course of the audit, which, in the opinion of the Comptroller General,
has been carried on or made without authority of law. A copy of each report shall be




F E D E R A L L E G ISLA TIO N

85

furnished to the President, to the Secretary of the Treasury, and to the corporation
concerned at the time submitted to the Congress.
Sec. 204. The President shall include in the annual Budget any recommendations
he may wish to make as to the return of Government capital to the Treasury by any
mixed-ownership corporation.
T IT L E III— G E N E R A L PROVISIONS
Sec. 301. (a) The expenses of auditing the financial transactions of wholly owned
and mixed-ownership Government corporations as provided in sections 105 and 202
of this Act shall be borne out of appropriations to the General Accounting Office, and
appropriations in such sums as may be necessary are hereby authorized: Provided,
That each such corporation shall reimburse the General Accounting Office for the full
cost of any such audit as billed therefor by the Comptroller General, and the General
Accounting Office shall deposit the sums so reimbursed into the Treasury as miscel­
laneous receipts: Provided further, That in making the audits provided in said sections
the Comptroller General shall, to the fullest extent deemed by him to be practicable,
utilize reports of examinations of Government corporations made by a supervising
administrative agency pursuant to law.
(b) For the purpose of conducting such audit the Comptroller General is authorized
in his discretion to employ not more than ten persons without regard to the Classifica­
tion Act of 1923, as amended, only one of whom may be compensated at a rate of as
much as but not more than $10,000 per annum, and to employ by contract, without
regard to section 3709 of the Revised Statutes, professional services of firms and
organizations for temporary periods or for special purposes.
(c) The audit provided in sections 105 and 202 of this Act shall be in lieu of any
audit of the financial transactions of any Government corporation required to be
made by the General Accounting Office for the purpose of a report to the Congress
or to the President under any existing law.
(d) Unless otherwise expressly provided by law, no funds of any Government
corporation shall be used to pay the cost of any private audit of the financial records
of the offices of such corporation, except the cost of such audits contracted for and
undertaken prior to April 25, 1945.
Sec. 302. The banking or checking accounts of all wholly owned and mixed-owner­
ship Government corporations shall be kept with the Treasurer of the United States,
or, with the approval of the Secretary of the Treasury, with a Federal Reserve bank,
or with a bank designated as a depositary or fiscal agent of the United States: Pro­
vided, That the Secretary of the Treasury may waive the requirements of this section
under such conditions as he may determine: A n d provided further, That this section
will not apply to the establishment and maintenance in any bank for a temporary
period of banking and checking accounts not in excess of $50,000 in any one bank.
The provisions of this section shall not be applicable to Federal Intermediate Credit
Banks, Production Credit Corporations, the Central Bank for Cooperatives, the
Regional Banks for Cooperatives, or the Federal Land Banks, except that each such
corporation shall be required to report annually to the Secretary of the Treasury
the names of the depositaries in which such corporation keeps a banking or checking
account, and the Secretary of the Treasury may make a report in writing to the
corporation, to the President, and to the Congress which he deems advisable upon
receipt of any such annual report.
Sec. 303. (a) All bonds, notes, debentures, and other similar obligations which are
hereafter issued by any wholly owned or mixed-ownership Government corporation
and offered to the public shall be in such forms and denominations, shall have such




86

FE D E R A L D EPOSIT IN SU R AN C E CORPORATION

maturities, shall bear such rates of interest, shall be subject to such terms and condi­
tions, shall be issued in such manner and at such times and sold at such prices as have
been or as may be approved by the Secretary of the Treasury.
(b) Hereafter, no wholly owned or mixed-ownership Government corporation shall
sell or purchase any direct obligation of the United States or obligation guaranteed
as to principal or interest, or both, for its own account and in its own right and interest,
at any one time aggregating in excess of $100,000, without the approval of the Secretary
of the Treasury: Provided, That the Secretary of the Treasury may waive the require­
ment of his approval with respect to any transaction or classes of transactions subject
to the provisions of this subsection for such period of time and under such conditions
as he may determine.
(c) The Secretary of the Treasury is hereby authorized to exercise any of the
functions vested in him by this section through any officer, or employee of any Federal
agency whom he may designate, with the concurrence of the head of the agency
concerned, for such purpose.
(d) Any mixed-ownership Government corporation from which Government capital
has been entirely withdrawn shall not be subject to the provisions of section 302 or
of this section during the period such corporation remains without Government capital.
The provisions of subsections (a) and (b) of this section shall not be applicable to
Federal Intermediate Credit Banks, Production Credit Corporations, the Central
Bank for Cooperatives, the Regional Banks for Cooperatives, or the Federal Land
Banks, except that each such corporation shall be required to consult with the Secretary
of the Treasury prior to taking any action of the kind covered by the provisions of
subsections (a) and (b) of this section, and in the event an agreement is not reached,
the Secretary of the Treasury may make a report in writing to the corporation, to the
President, and to the Congress stating the grounds for his disagreement.
Sec. 304. (a) No corporation shall be created, organized, or acquired hereafter
by any officer or agency of the Federal Government or by any Government corpora­
tion for the purpose of acting as an agency or instrumentality of the United States,
except by Act of Congress or pursuant to an Act of Congress specifically authorizing
such action.
(b) No wholly owned Government corporation created by or under the laws of any
State, Territor}', or possession of the United States or any political subdivision thereof,
or under the laws of the District of Columbia, shall continue after June 30, 1948, as
an agency or instrumentality of the United States, and no funds of, or obtained from,
the United States or any agency thereof, including corporations, shall be invested
in or employed by any such corporation after that date, except for purposes of liquida­
tion. The proper corporate authority of every such corporation shall take the necessary
steps to institute dissolution or liquidation proceedings on or before that date: Pro­
vided, That prior thereto any such corporation may be reincorporated by Act of
Congress for such purposes and term of existence and with such powers, privileges,
and duties as authorized bjr such Act, including the power to take over the assets
and assume the liabilities of its respective predecessor corporation.
Approved December 6, 1945.




FE D E R A L L E G ISLA TIO N

87

LO ST G O V E R N M E N T C H ECKS
[P u b l ic L a w 243— 79th Congress]

[Chapter 515— 1st Session ]
[H. R. 4350]
A N ACT
To amend section 3646 of the Revised Statutes, as amended, relating to the issuance
of checks in replacement of lost, stolen, destroyed, mutilated, or defaced checks
of the United States, and for other purposes.
B e it enacted by the Senate and House o f Representatives o f the United States of America
in Congress assembled, That section 3646 of the Revised Statutes of the United States,
as amended (U. S. C., title 31, sec. 528), is further amended to read as follows:
“ (a) Except as hereinafter provided, whenever it is clearly proved to the satisfaction
of the Secretary of the Treasury that any original check of the United States is lost,
stolen, or wholly or partly destroyed, or is so mutilated or defaced as to impair its
value to its owner or holder, the Secretary of the Treasury is authorized, before the
close of the fiscal year following the fiscal year in which the original check was issued
to transfer the amount of the original check from the account of the drawer to a
special deposit account carried in the name of the Secretary of the Treasury on the
books of the Treasurer of the United States, and to issue against such special deposit
account to the owner or holder thereof a substitute under current date showing such
information as may be necessary to identify the original check, upon the receipt and
approval by the Secretary of the Treasury of an undertaking to indemnify the United
States, in such form and amount and with such surety, sureties, or security, if any,
as the Secretary of the Treasury may require; but no such substitute shall be payable
if the original check shall first have been paid: Provided, That nothing herein contained
shall be deemed to relieve any certifying officer or his sureties or any disbursing officer
or his sureties of any liability to the United States on account of any payment resulting
from the erroneous issuance of the original check: A nd provided further, That the
authority herein conferred to issue substitute checks may, in the case of checks issued
on account of public-debt obligations and transactions regarding the administration
of banking and currency laws, be exercised without limitation of time.
“ (b) An undertaking of indemnity shall not be required under subsection (a) of
this section in any of the following classes of cases except as provided in this sub­
section: (1) If the Secretary of the Treasury is satisfied that the loss, theft, destruction,
mutilation, or defacement, as the case may be, occurred without fault of the owner
or holder and while the check was in the custody or control of the United States
(including the postal service when carrying mail for any officer, employee, agent, or
agency of the United States when performing services in connection with an official
function of the United States, but not including the postal service when otherwise
acting solely in its capacity as a public carrier of the mail), or of a person thereunto
duly authorized as lawful agent of the United States, or while it was in the course of
shipment effected pursuant to and in accordance with the regulations issued under
the provisions of the Government Losses in Shipment Act; (2) if substantially the
entire check is presented and surrendered by the owner or holder and the Secretary
of the Treasury is satisfied as to the identity of the check presented and that any
missing portions are not sufficient to form the basis of a valid claim against the United
States; (3) if the Secretary of the Treasury is satisfied that the original check is not
negotiable and cannot be made the basis of a valid claim against the United States;
(4) if the amount of the check is not more than $200; (5) if the owner or holder is the
United States or an officer or employee thereof in his official capacity, a State, the
District of Columbia, a Territory or possession of the United States, including the




88

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

Commonwealth of the Philippine Islands, a municipal corporation or political sub­
division of any of the foregoing, a corporation, the whole of whose capital is owned
by the United States, a foreign government, or a Federal Reserve bank: Provided,
however, That in any of the foregoing classes of cases the Secretary of the Treasury
may require an undertaking of indemnity if he deems it essential to the public interest.
“ (c) Notwithstanding the provisions of subsections (a) and (b) of this section
whenever it is clearly proved to the satisfaction of the Secretary of the Treasury that
any original check of the United States drawn on a depositary in a foreign country
or a Territory or possession of the United States, including the Panama Canal Zone
and the Philippine Islands, is lost, stolen, or wholly or partly destroyed, or is so mu­
tilated or defaced as to impair its value to its owner or holder, the drawer of the original
check or such other officer or employee of the United States as may be authorized
by the Secretary of the Treasury with the concurrence of the head of the department
or agency upon whose behalf the original check was issued is authorized, before the
close of the fiscal 3
^ear following the fiscal year in which the original check was issued,
to issue to the owner or holder thereof a substitute under current date showing such
information as may be neccssary to identify the original check, drawn against the
account of the drawer of the original check or such other account as may be available
for the payment of such substitute, upon the receipt and approval by the Secretary
of the Treasury of an undertaking, to indemnify the United States, in such form and
amount and with such surety, sureties, or security, if any, as the Secretary of the
Treasury may require; but no such substitute shall be payable if the original check
shall first have been paid. Nothing herein contained shall be deemed to relieve any
certifying officer or his sureties or any disbursing officer or his sureties of any liability
to the United States on account of any payment resulting from the erroneous issuance
of the original check.
“ (d) The Secretary of the Treasury shall have the power to make such rules and
regulations as he may deem necessary for the administration of the provisions of this
section.
“ (e) Notwithstanding the provisions of subsections (a), (b), (c), and (d) of this
section, whenever any original check of the Post Office Department has been lost,
stolen, or destroyed, the Postmaster General may authorize the issuance of a substitute,
marked ‘duplicate’ and showing the number, date, and payee of the original check,
before the close of the fiscal year following the fiscal year in which the original check
was issued, upon the execution by the owner thereof of such bond of indemnity as
the Postmaster General may prescribe: Provided, That when such original check does
not exceed in amount the sum of $100 and the pa}^ee or owner is, at the date of the
application, an officer or employee in the service of the Post Office Department,
whether by contract, designation, or appointment, the Postmaster General may, in
lieu of an indemnity bond, authorize the issuance of a substitute check or warrant
upon such an affidavit as he may prescribe, to be made before any postmaster by the
payee or owner of an original check.
“ (f) Substitutes issued under this section, drawn on the Treasurer of the United
States, except those for checks issued on account of public-debt obligations and
transactions regarding the administration of banking and currency laws, shall be
deemed to be original checks and shall be payable under the conditions set forth in
section 21 of the Permanent Appropriation Repeal Act, 1934 (U. S. C., title 31, sec.
725t). Substitutes for checks issued on account of public-debt obligations and trans­
actions regarding the administration of banking and currency laws shall be payable
without limitation of time.
“ (g) The term ‘original check’ wherever used in this section means any check,
warrant, or other order for the payment of money, payable upon demand and not




F E D E R A L L E G ISLA TIO N

89

bearing interest, drawn by a duly authorized officer or agent of the United States, the
District of Columbia, or the District Unemployment Compensation Board, on their
behalf against an account or funds of the United States, the District of Columbia,
or the District Unemployment Compensation Board, including instruments issued
by any corporation or other entity owned or controlled by the United States, the
funds of which are deposited and covered into the Treasury of the United States or
deposited with the Treasurer of the United States, but does not include money, coins,
or currency of the United States; as used in subsection (e) of this section it means such
an instrument drawn by a duly authorized officer or employee of the Post Office
Department.
“ (h) Any power, authority, or discretion conferred upon the Secretary of the
Treasury by this section may be delegated by him, in whole or in part, subject to such
terms and conditions as he may prescribe, to such individuals as he may designate
within the Treasury Department or to the head of any other department or agency
of the Government or of any Federal Reserve bank, and the head of such department
or agency or Federal Reserve bank may, when such action is not inconsistent with the
terms and conditions of the delegation by the Secretary of the Treasury, redelegate
any power, authority, or discretion conferred upon him pursuant to this subsection
to any officer or employee within such department, agency, or Federal Reserve bank.”
Sec. 2. Sections 300 and 3647 of the Revised Statutes, as amended (U. S. C., title 31,
sec. 119), are hereby repealed.
Sec. 3. This Act shall become effective on December 1, 1945.
Approved December 3, 1945.

STATE BANKING LEGISLATION
All States except Mississippi held regular, extra, or special legislative sessions
during 1945. Forty-four legislatures held regular sessions. Eleven legislatures held
extra or special sessions.
Some of the more important subjects dealt with in State banking legislation during
1945 are listed below:
s u p e r v is o r y a u t h o r it y

Powers and duties of banking boards.............................................North Dakota (Ch. 143)
Appointment................................................................................................Washington (Ch. 123)
Compensation.........................................................................................................................................
. .Colorado (Ch. 81), Georgia (Act 378), Maine (Ch. 364), South Dakota (Ch. 26)
Periodic reports by banks..................................... Kansas (Ch. 91), Washington (Ch. 204)
Examination of banks............................................................................Georgia (Acts 273, 317)
Fees for examinations..........................................................................................................................
..............................Delaware (Ch. 162), North Carolina (Ch. 467), Vermont (Ch. 154)
Confidential nature of examination reports......................................... New York (Ch. 225)
o r g a n iz a t io n

of ban k s

Organization of banks........................................................................North Carolina (Ch. 743)
Change of powers to permit general banking................................. South Carolina (Act 61)
Par value of capital stock...................................................................................................................
...................................... Connecticut (P. A. 108), Florida (Ch. 22608), Oregon (Ch. 43)




90

F E D E RA L DEPOSIT IN S U R A N C E CORPORATION

Issuance of capital stock............................... Pennsylvania (Act 96), Vermont (Ch. 154)
Promotion commission on original capital prohibited and 2]4.% brokerage fee per­
mitted on increase of capital................................................................... Wisconsin (Ch. 65)
Branch banks......................................................Michigan (Act 73), New York (Ch. 11,298)
Transfer of bank franchise...................................................................Connecticut (P. A. 113)
Authorization for national banks to become State banks..................Colorado (Ch. 86)
Definition of word “ bank” .................................................................................................................
........................... Colorado (Ch. 82), North Carolina (Ch. 743), Ohio (House Bill 236)
Currency exchanges.............................................................................. Illinois (Senate Bill 106)
Check cashers................................................................................................. New York (Ch. 151)
Reorganization..................................................................................................... Indiana (Ch. 240)
O PERATIO N S

Capital and surplus requirements.................... California (Ch. 503, 504), Maryland
(Ch. 216), Massachusetts (Ch. 97), Minnesota (Ch. 73), Missouri (Senate Bill 293),
Nebraska (Ch. 7), Oregon |Ch. 44), Vermont (Ch. 154)
Reserve requirements.................... Alabama (Act 121), Delaware (Ch. 163), Maine
(Ch. 81), Pennsylvania (Act 126), Vermont (Ch. 154)
Deposits:
Deposits paj^able to survivors.................... Alabama (Act 232), Florida (Ch. 22849),
New York (Ch. 533), Oklahoma (Ch. 6A)
Deposit withdrawals by minors............. Florida (Ch. 22591), Oklahoma (Ch. 6A)
Voluntary trust deposits.........................................................................New York (Ch. 533)
Payment of deposits without administration of depositors’ estate.............................
................................................................................................................New Mexico (Ch. 114)
Deposits of and security for public funds................................................................................
......................California (Ch. 120, 486), Maryland (Ch. 386), Washington (Ch. 70)
Directors posted regulations on payment of deposits and interest binding on de­
positors .................................................................................................... Washington (Ch. 69)
Limitation on bank deposits in other banks......................................New York (Ch. 20)
Loans:
Loans pursuant to Servicemen’s Readjustment Act:
Authorization....................Arkansas (Act 36), Connecticut (P. A. 14), Kansas
(Ch. 260), Maine (Ch. 72,360), Massachusetts (Ch. 46), Minnesota (Ch. 62),
New Jersey (Ch. 81), New York (Ch. 18), New Mexico (Ch. 122), North
Dakota (Ch. 144), Ohio (House Bill 7), Rhode Island (Ch. 1656), South Caro­
lina (Act 4), Utah (Ch. 12), Vermont (Ch. 152), Wisconsin (Ch. 455)
Modification of loan limitations.................... Arkansas (Act 36), California (Ch. 26),
Colorado (Ch. 84, 85), Connecticut (P. A. 14), Florida (Ch. 23092), Georgia
(Act 255 ), Idaho (Ch. 41), Indiana (Ch. 45,104), Maine (Ch. 82), Massachusetts
(Ch. 46), Michigan (Act 118), Minnesota (Ch. 62), Missouri (Senate Bills
189,245),, Montana (Ch. 90), New Hampshire (Ch. 84), New Jersey (Ch.
81,257), New York (Ch. 18), New Mexico (Ch. 122), North Dakota (Ch. 144),
Ohio (House Bills 71,236), Oklahoma (Ch. 5,15), Oregon (Ch. 45), Pennsylvania
(Act 5), Rhode Island (Ch. 1656), Tennessee (Ch. 147), Texas (Ch. 99), Vermont
(Ch. 152, 153), Virginia (Ch. 6), West Virginia (Ch. 27), Wyoming (Ch. 98)




STATE L E G ISLA TIO N

91

Authorization of loans to minor veterans.................... Alabama (Act 116), Arizona
(Ch. 48), Colorado (Senate Bill 2 X (1st Spec. Sess.) ), Connecticut (P. A. 14),
Kentucky (House Bill 6 X X X (3rd Spec. Sess.) ), Maine (Ch. 207), New
Mexico (Ch. 122), New York (Ch. 18), Ohio (House Bill 461), Pennsylvania
(Act 73), South Dakota (Ch. 185), Utah (Ch. 12), Vermont (Ch. 153)
Loan limitations enlarged or made inapplicable to loans secured by obligations or
guarantee of United States or its agencies.................... California (Ch. 256), Maine
(Ch. 82), Minnesota (Ch. 62), New York (Ch. 21), Oklahoma (Ch. 15), Tennessee
(Ch. 147), West Virginia (Ch. 27)
Real estate loans.................... Colorado (Ch. 84), Connecticut (P. A ., 54, 206),
Massachusetts (Ch. 162), New Jersey (Ch. 179), Ohio (House Bill 236), Oklahoma
(Ch. 5), Oregon (Ch. 45), Pennsylvania (Act 96), Rhode Island (Ch. 1656),
Wyoming (Ch. 98)
Commodity and livestock loans.................... Colorado (Ch. 83), Florida (Ch. 22789),
New Hampshire (Ch. 175), Tennessee (Ch. 147)
Instalment personal lo a n s................................. Iowa (Ch. 213), Maine (Ch. 95),
Massachusetts (Ch. 197, 407), Minnesota (Ch. 544), New Jersey (Ch. 208),
New York (Ch. 20), Pennsylvania (Act 70)
Investments:
Savings bank investments.................... Connecticut (P. A. 308, 328), Indiana (Ch. 27),
Massachusetts (Ch. 114, 184, 377), New York (Ch. 319), Oregon (Ch. 376),
Pennsylvania (Act 126), Wisconsin (Ch. 434)
Industrial banks or banking companies.....................................................................................
..Connecticut (P. A. 372), Massachusetts (Ch. 192), North Carolina (Ch. 127)
In savings and loan association shares.................................................... Kansas (Ch. 239)
Loans insured by F. H. A .................................................................Massachusetts (Ch. 66)
Extension and modification of mortgage investments................. New York (Ch. 230)
Holding of real estate................................................................................ Minnesota (Ch. 63)
Trust activities:
Common trust funds.................... Connecticut (P. A. 309), Maryland (Ch. 252),
Massachusetts (Ch. 67), New Jersey (Ch. 190), Pennsylvania (Act 96), West
Virginia (Ch. 4)
Holding trust assets in name of nominee.................... Delaware (Ch. 160), North
Carolina (Ch. 292), Ohio (Senate Bill 180), Pennsylvania (Act 96,221), Vermont
(Ch. 154), West Virginia (Ch. 28)
No bond required to be filed in court by trust company unless ordered by court
......................................................................................................................... Indiana (Ch. 248)
Sale of assets between trusts of same trustee if authorized by trust instrument of
selling trust or directors of trustee......................................North Carolina (Ch. 127)
Prudent man investment rule authorized.................................................................................
.........................Illinois (House Bill 280), Maine (Ch. 80), Texas (Sec. 13, Ch. 77)
Deposit of securities by trust company with State officials or with other safekeeping
institutions......................................................................................................................................
.................... Florida (Ch. 23131), Massachusetts (Ch. 164), Oklahoma (Ch. 15)
Directors, officers, and employees:
Qualifications of directors.........................California (Ch. 291), Ohio (House Bill 236)




92

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION

Restrictions on business activities of officers.........................................................................
........................................................ Pennsylvania (Act 54,96), South Dakota (Ch. 130)
Indemnification of directors, officers, and employees............................... ...........................
..................................................................... Michigan (Act 101), Pennsylvania (Act 114)
Directors and officers required to report banking law violations to Commissioner
of Finance.......................................................................................................... Idaho (Ch. 71)
Directors’ examination of bank............................................................. Minnesota (Ch. 94)
Checks and collections:
Limitation on stop payment orders on checks and drafts...............................................
............................................................................ Arkansas (Act 182), Maryland (Ch. 798)
Authorization for the payment or acceptance of checks or drafts received for pay­
ment or collection, or the revocation of provisional credit given therefor, on day
following receipt of item .................... Florida (Ch. 22609), Oklahoma (Ch. 6b),
Pennsylvania (Act 196), Utah (Ch. 13), Wisconsin (Ch. 281)
Clearance of checks at par by bank on which drawn...................... Nebraska (Ch. 11)
Exchange or other fees for collecting State warrant prohibited.................................
.......................................................................................................... North Carolina (Ch. 644)
Liability for payment of checks on forged or unauthorized indorsements...........
......................................................................................................................... Georgia (Act 285)
Miscellaneous:
Uniform Trust Receipt A c t.................... Idaho (Ch. 73), Montana (Ch. 147), North
Dakota (Ch. 320), South Dakota (Ch. 169), Utah (Ch. 131)
Assignment of accounts receivable.................... Arkansas (Act 118), California
(Ch. 295), Connecticut (P. A. 442), Idaho (Ch. 176), Indiana (Ch. 107), Maine
(Ch. 100), Massachusetts (Ch. 141), Michigan (Act 309), Minnesota (Ch. 503),
North Carolina (Ch. 196), New Hampshire (Ch. 19), Oregon (Ch. 405), South
Dakota (Ch. 213), Texas (Ch. 293), Utah (Ch. 11), Wisconsin (Ch. 204,528)
Expenditure for membership in associations and contributions to charities...........
......... ....................................................Massachusetts (Ch. 61), Pennsylvania (Act 249)
Borrowings of bank secured by United States obligations................Nebraska (Ch. 8)
Disposition of unclaimed contents of safe deposit boxes and unclaimed items left
for safekeeping.............................................California (Ch. 989), New York (Ch. 825)
Dormant accounts........... ..
.California (Ch. 1080), Colorado (Ch. 87), Connecticut
(P. A. 429), Massachusetts (Ch. 365), Wisconsin (Ch. 70)
Destruction of obsolete records................................................... ........ Wisconsin (Ch. 315)
LIQ U ID A T IO N

Forfeiture of right to continue banking business.........................Connecticut (P. A. 109)
Receivership.................... California (Ch. 447), Connecticut (P. A. 180), Minnesota
(Ch. 128), Ohio (House Bill 236), Wisconsin (Ch. 65,330, 445,528)
Stockholders additional liability............................................................................ ..........................
.............................................Oregon (Sec. 3, Art X I , Constitution), Wisconsin (Ch. 65)
Preference in distribution of deposits................................................................ ............................
.................... California (Ch. 293), Delaware (Ch. 161, 164), Pennsylvania (Act 197)
Disposition of funds of unknowns upon liquidation of bank. . . . California (Ch. 589)




PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE




CD

umber,

O f f ic e s ,

and

D

e p o s it s

of

A ll O p e r a t in g B a n k s

,

Grouped according to insurance status and class of bank and by State and type
of office




Banks grouped according to insurance status and by District and State

CORPORATION

Table 103. Number and deposits of operating commercial and mutual savings banks, Dec­
ember 31, 1945

INSURANCE

Table 102, Number of operating banks and branches, December 31, 1945

DEPOSIT

Table 101. Changes in number and classification of operating banks and branches in the United
States and possessions during 1945

FEDERAL

N

OPERATING
BANKS




Noninsured banks: Board of Governors of the Federal Reserve
System; State banking authorities; Rand M cN ally Bankers Directory;
and P olk’ s Bankers Encyclopedia.

O
F

The traditional distinction between commercial banks and mutual
savings banks has been followed. Mutual savings banks, with a few

Insured banks: records of the Federal Deposit Insurance Corporation;
Office of the Comptroller of the Currency; and Board of Governors of
the Federal Reserve System.

DEPOSITS

A bank is classified as an insured bank when its deposits are insured
by the Federal Deposit Insurance Corporation. All banks members of
the Federal Reserve System are required by law to be insured banks.
Other banks may be admitted to deposit insurance upon meeting
conditions prescribed by law.

Sources o f d a ta :

AN
D

Banks are classified on the following bases:
Insurance status
Commercial and mutual savings
Membership in the Federal Reserve System

Banks members of the Federal Reserve System are separated into
two groups: national and State. All national banks in the continental
United States are required to be members of the Federal Reserve
System; State chartered banks may become members of the Federal
Reserve System upon meeting certain conditions. None of the six
national banks in the possessions is a member of the Federal Reserve
System; four have been admitted to deposit insurance.

OFFICES,

The data in the tables which follow relate to banks operating in the
continental United States and in Alaska, Hawaii, Puerto Rico, and the
Virgin Islands, including branches of foreign banks which engage in a
general deposit business in this area.

exceptions, accept only savings deposits, while most banks classified
as commercial banks also accept checking accounts and other deposits
subject to withdrawal on demand. However, a few banks included in
the commercial group hold only savings and time deposits. Trust
companies are included with commercial banks since most institutions
known as trust companies accept checking accounts.

NUMBER,

The line of demarcation between banks and other types of financial
institutions is not always clear. In these tables provision of deposit
facilities for the general public is the chief criterion. However, trust
companies not engaged in deposit banking are included because unin­
vested trust funds may be insured by the Federal Deposit Insurance
Corporation, and credit unions which accept deposits are excluded. A
more detailed statement of institutions included and excluded is given
in the Annual Report of the Corporation for 1943, pages 59-60.

C
O

O
i

T able 101.

C
O
05

C h a n g e s in N u m b e r a n d C l a s s if ic a t io n o f O p e r a t in g B a n k s a n d B r a n c h e s
in

the

U n it e d S t a t e s a n d P o s s e s s io n s D u r in g 1945

N oninsured

Insured1

13,494
13,460

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

+ 15

+ 34

Rfltilffi
Hpf>ns]t on^r&tlnns
New banks
...........................................
Financial institutions bGComin^ banks of deposit

119
115
4

103

Banks ccssin^ deposit operations
.....................
Mergers and absorptions (without FDIC aid)— net decrease
Other liquidations
.........................................

104
77
27

87
72
15

12

+ 19
+7
+ 11
+1

-11
-1

Trust
Not
Total
mem­ Bank3 com­
panies
of de­
bers
Total
F. R.
posit not ac­
cepting
National State System
deposits

In­
Non­
sured2 insured

BANKS
N um ber o f banks, D ecem ber 31, 1944.......................................
change during year

83
83

1,231 14,183
1,250 14,167

13,302
13,268

5,017
5,025

1,864
1,786

6,421
6,457

798
816

-19

+ 16

+ 34

-8

+ 78

-36

-IS

16
14

119
115
4

103
101
2

17
17

8
8

78
76

15
13

2

103
76
27

87
72
15

43
30
13

15
4

1

11

192
192

1

350
351

2

17
5

542
543
-1

-1

Changes resulting fro m —

...................
Noninsured batiks becom ing insured
Successions to noninsured banks
................
4 dnrssion tn
nppr^t,ing hfiiiks^
..............
Admission to F R System
.............................................
Insured banks becom ing noninsured
QnppDGGinn f a inoiirpn

nk

101
2

-1

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

-1

.........

2

-7




+ 1
+ 1

-1

+ 1
+1

+

8

7
68
2

2

1

4

71

7
67

2

2

8

2
20

+ 77
-7

5
40

1
1

-19
-7

-11
-1

+ 1
+ 1

-86
+2

7

1
1

-8 8

86
-2

+ 11
+ 16
-5

72

+ 18
+7
+ 11
-1
-1

-1

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

Changes n ot involving nu m ber in any class:
Successions
•.......................................
Changes in title location or name of location
....
nVianoroQ in
fp nnwprs
....

8
8

2

+ 19
+7
+ 11
+ 1

-19

Other changes in classification am on^ b a n k s . . . . . .
Matinnal Hqii Vq cnpf^PpHlTKT St;atP hank s
Q fofo Vkjinl^Q cnpr»ppHincr nntinnfll hank s
AHmiacinne fn F R SvQtpm
WitliHrAwplQ ffnTTi F R S vstpm

36
34

1
1

-9
5

+

2

1

4

1

1

CORPORATION

14,725
14,710

Members I*'. K.
System

INSURANCE

Non­
In­
sured insured Total

DEPOSIT

Total

FEDERAL

Type of change

Mutual savings banks

Commercial banks and trust companies

All banks

BRANCHES
101
99

42
41

+3

+3

+2

+ 1

3
1

3

2

2

2

2

685
683

293
291

+2

+2

3,997
3,974

171
167

4,025
4,001

3,896
3,875

1,814
1,815

1,099
1,080

983
980

128
125

+27

+23

+4

+24

+21

-1

+19

+3

Branches opened for business.............................
Facilities provided as agents of the government.
Absorbed banks converted into branches............
Branches replacing offices closed or relocated... .
Other branches opened...........................................

173
65
40
5
63

169
64
39
5
61

170
65
39
5
61

167
64
39
5
59

100
46
23

31

36

10
10
1
10

8
6

Branches discontinued..........................................
Facilities provided as agents of the government.
Other branches discontinued.................................

146
131
15

146
131
15

146
131
15

146
131
15

100

Net change during year.............................................

1
1

Changes resulting from—

31

-1
-1

+9
+3
+ 1

-8

10
-2

-1

3
23

21

1

6,831
6,840

2,963
2,866

7,404
7,437

926
941

1

ALL BANKING OFFICES
18,893
18,851

17,491
17,434

Net change during year......................

17,198
17,143

+40

+ 55

-9

+97

-33

-15

270
103
167

117
17

39

114
78
36

18
15
3

1
1

233
87
146

136
36

8
21

68
43
25

15
15

1
1

+ 18
+ 19

+ 10

+87
+ 1

-79
+ 18

-18
-19
+ 1

+42

+57

Offices opened.
Banks.............
Branches........

292
119
173

272
103
169

2
0
16
4

289
119
170

Offices closed.
Banks...........
Branches. . . .

250
104
146

233
87
146

17
17

249
103
146

+ 18
+ 19

-18
-19

Changes in classification..................
Noninsured banks to insured banks.
Insured banks to noninsured banks.
Among insured banks........................
Among branches of insured banks. .

-1

-15

+1

100

100

-1
+ 11
-1

8

31
29

+ 77
+9

-1
-8 8
-8

1 Includes 9 trust companies not engaged in deposit banking on December 31, 1945, and 10 on December 31, 1944.
2 Includes three mutual savings banks, members of the Federal Reserve System, for December 31, 1945, and December 31, 1944.
8 Operating at beginning of year.
C
O

Back figures— See the Annual Report for 1944, pp. 110-111, and earlier reports.




84
84

392
392

3

2

1

3

2

1

1
1

1
1

BANKS

1,402 18,208
1,417 18,168

OPERATING

Number of offices, December 31, 1945.
Number of offices, December 31, 1944.

O
F

14

DEPOSITS

Changes not involving number in any class:
Branches transferred as result of absorptions.. .
Changes in title, location, or name of location..
Sale of branch to another bank...........................

25
15

AN
D

Other changes in classification among branches.
Branches transferred as result of absorption.............
Admissions to F. R. System.......................................
Sale of branch to another bank...................................

21
16
5

1
1

OFFICES,

100

4
18

1

NUMBER,

143
140

4,168
4,141

Number of branches, December 31, 1945.
Number of branches, December 31, 1944.

Table 102.
grouped

a c c o r d in g

N u m b e r o f O p e r a tin g B a n k s a n d B r a n c h e s , D e c e m b e r 31, 1945
to

in s u r a n c e

statu s

and

c lass

of b a n k , and

state

Members F. R.
j
System

2,963
1,864
1,663
201
1,099

7,404
6,421
5,81*1
580
983

926
798
753
U
5
128

84
83
82
1

United States....................................... 18,781
All banks ......................................... 14,684
Unit banks....................................... 13,1*72
1,212
Banks operating branches..............
4,097
Branches.............................................

17,484
13,489
12,31*7
1,142
3,995

1,297 18,096
1,195 14,142
1,125 13,015
70 1,127
3,954
102

17,191
13,297
12,207
1,090
3,894

6,831
5,017
It,706
Sll
1,814

2,963
1,864
1,663
201
1,099

7,397
6,416
5,838
578
981

826
767
731
36
59

79
78
77
1

112

7
5
3
2

105
36
27
9
69

112

7
5
s
2

7
5
3
2

100

5
5
5

2

2

237

4
4
U

241
216
208
8
25

1

1

Com­ Mutual
AH
Non­
In­
sured2 insured banks mercial savings
banks banks

685
542
1*57
85
143

293
192
11*0
52

685
542
1*57
85
143

293
192

101

11*0

52

101

392
350
317
33
42

92.6
91.6
91.5
93.5
95.9

94.5
93.8
93.6
96.0
96.8

42.8
35.4
30.6
61.2
70.6

392
350
317
33
42

93.1
91.9
91.6
91*.2
97.5

95.0
94.0
93.8
96.7
98.5

42.8
35.4
30.6
61.2
70.6

6.3

6.3

12.2

12.2

10.0
18.2

10.0
18.2

2.8

2.8

98.3
98.1
98.1
100.0

98.3
98.1
98.1
100.0

100.0

100.0

95.7
84.6
75.0
100.0

95.7
84.6
75.0
100.0

100.0

31
22
9
69

100.0

92.4
91.6
90.9
100.0

92.4
91.6
90.9
100.0

100.0

100.0

State
All bsnks
TJftit foatllc**
Batiks o'pBTdtiiiQ bvattchBS
T T n ioq
^ Q r*V
Ar?7Atid
All KqhItq
TJfiit batiks
TlnnIfq n riP n tY n 1'irnY * Pi
n Yi i
/)/h *
"RvQ I/V!P
T I Q
*
AfImns5i.Q
All b&nks
T 'nii h/ittlrQ
T
Battles o/)C a tiQ bvatichcs
% T t%
"Rrflnpli pq




241
216
208
8
25
47
13
8
5
34

212

201*
8
25
45

2
2

6
5
34

2

11

249
227
208
19

230
208
189
19

22

22

19
19
19

47
13
8
5
34

237
212

20k
8
25
45
11

6
5
34

249
227
208
19

230
208
189
19

22

22

88

65
59
6
23
31
4
2
2
27
53
50
U
7
3
3

19
18
17
1
1
2
2

2

16
16
16

130
129
128
1
1

4
4
1
*

12

2
2

5
2
3
7

161
142
126
16
19

2

16
16
16

3
3
3

CORPORATION

6,831
5,017
1*,706
311
1,814

2

Insured banks
as percentages of—

INSURANCE

1,402 18,208 17,198
1,231 14,183 13,302
1,152 13,01*5 12,210
1,092
79 1,138
171 4,025
3,896

41
SO
11
71

o f f ic e

DEPOSIT

17,491
13,494
12,350
ia u
3,997

41
30
11
71

of

FEDERAL

Total

Trust
com­
Not
mem­ Banks panies Total
of de­ not ac­
bers
posit cepting
F. R.
National State
System
deposits

United States and possessions........ 18,893
14,725
13,502
1,223
4,168

Possessions
All banks
XJnit battles
Banks operating branches
Branches

type

Noninsured

Insured1
Non­
Total Insured insured Total

and

Mutual savings banks

Commercial banks and trust companies

All banks

State and type of bank or office

by

Colorado................................
All banks.............................
Unit banks.......................
Banks operating branches.
Branches..............................

153
149
1U5

Connecticut..........................
All banks.............................
Unit banks.......................
Banks operating branches.
Branches..............................

205
189
183

20
2
169
33

88
8
u

4

6

16
56
42

District of Columbia..........
All banks.............................
Unit banks.......................
Banks operating branches,
Branches..............................

2
1
9
1
2

14

55

34

Georgia..................................
All banks.............................
Unit banks.......................
Banks operating branches,
Branches..............................

393
360
3U6

1
2
13

U
33

148

137
133
129
k
4

16
16
16

153
149
11>
5
h
4

137
133
129
U
4

81
77
73
h
4

15
15
15

41
41

U

109
101
96
5
8

96
88
87
1
8

133
117
111
6
16

107
99
9U
5
8

56
51
U
S
3
5

16
13

35
35
35

25
17
16

52
39
32
7
13

4
3
2
1
1

53
40
33
7
13

52
39
32
7
13

13
13
13

55
21
9
12
34

55
21
9
12
34

27
9
U
5
18

55
21
9
12
34
7
6
5
1
1

186
173
161
12
13

179
167
156
11
12

71
69
67
2
2

393
360
3U6
n
33

322
291
279
12
31

71
48
ho
8
23

1

86

1
1

46
39
7
40

85
45
38
7
40

54
16
10
6
38

16
16
16

861
856
851
5
5

845
840
835
5
5

367
362
357
5
5

Idaho......................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

8
6
46
39
7
40

85
45
38
7
40

Illinois....................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

861
856
851
5
5

845
840
835
5
5




36

1
1
2

1

32

2
2
U
1
0

18

89.5
89.3
89.0

53.2
53.4
52.5
83.3
50.0

80.5
84.6
81+.7
83.3
50.0
98.1
97.5
97.0

100.0 100.0
100.0 1 0.0
0

•

72
72
72

70
70
70

6

15

4
3

10
0.0
100.0
100.0
100.0
100.0

100.0
10
0.0
1 0.0
0
1 0.0
0
100.0
100.0
1 0.0
0

105

24
9

66

322
291
279
12
31

1
U

96.2
96.5
96.9
91.7
92.3

96.2
96.5
96.9
91.7
92.3

81.9
80.8
80.6
85.7
93.9

81.9
80.8
80.6
85.7
93.9

98.8
97.8
97 4

98.8
97.8
97.U

98.1
98.1
98.1

98.1
98.1
98.1

2
1
1
11
0

58
50
8
8 .

98
3
4

17

1
1
9
2
6
1
0
1
0
10
129
129
129

234
232

1
1
71
69
67

2
1

19
18

1
2

349
349
3U9

100.0 100.0
1 0.0 10 .0
0
0
1
1
1
1
1
1

100.0 100.0
100.0 10 .0
0

2.8
2.8
2.8

BANKS

179
167
156
11
12

126

75
61

98.6
93.1
92.3
97.0
99.9

89.5
89.3
89.0

16
16
16

2
2
1
U
8

OPERATING

186
173
161

816
91
81
10
725

O
F

Florida...................................
All banks.............................
Unit banks.......................
Banks operating branches,
Branches..............................

1,075
188
156
32
887

98.6
93.1
92.3
97.0
99.9

92.9
92.9
9U.1
87.5
92.9

1,090
202
169
33
888

DEPOSITS

3
U
8

6
5
A
1
1

15
14
13
1
1

AN
D

Delaware................................
All banks.............................
Unit banks.......................
Banks operating branches.
Branches..............................

11
1

1,075
188
156
32
887

OFFICES,

1,090

NUMBER,

California..............................
All banks.............................
Unit banks.......................
Banks operating branches,
Branches..............................

CO
CO

N u m b e r o f O p e r a tin g B a n k s an d B r a n c h e s , D e c e m b e r

31, 1945— Continued

10
0

Table 102,

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Mutual savings banks

Commercial banks and trust companies

All banks

Stats and type of bank or office

Non­
Total Insured insured

Total

Noninsured
Trust
Not
com­
mem­ Banks panies Total
bers
of de­ not ac­
F. R.
posit cepting
System
deposits

Total
National State

108
105
3
14

All banks
Unit banks
Rsivtlf'nprn'i'}yin
Branches

812
656
539
117
156

743
593
U
81
112
150

69
63
58
5

812
656
539
117
156

743
593
U
81
112
150

97
97
97

618
615
612
3
3

449
446
us
3
3

169
169
169

618
615
612
3
3

449
446
US
3
3

177
174
171
3

Kansas
All banks
Unit banks

ITpfiturlcT
All banks
Unit banks
B ranches
Lou isiana
All banks
Unit banks
Branches
M ain e............
All banks.........
....
Unit banks. .
...
Banks ojpctatinQ bvanchcs
Branches




427
391
373
18
36
212

151
120
31
61
164
96
71
25
68

20
1
1

6

398
363
3U6
17
35

29
28
27
1
1

211

1
1

150
119
31
61
120

61
U
3
18
59

1

44
35
28
7
9

427
391
373
18
36
212

151
120
31
61
130
64
U
23
66

398
363
3U6
17
35
211

150
119
31
61
114
55
37
18
59

3
3
3

65
65
65

581
431
319
112
150
233
233
233

167
167
167

260
250
21*0
10

1

6

3

111

27

93
90
3
18

20

16
J
,.
7

66

13

33
26
7
33

10

7
3
3

39
33
29
u

34
5
1
u
29

41
17
7
10
24

6

1

10

132
107
86
21
25

5
u
1

1
1

1

16
9
U
5
7

34
32
30
2
2

6
6

6

28
26
2U
2
2

100.0

93.2
92.8
92.8

99.5
99.3
99.2
100.0

6

1
1

1

72.7
72.5
72.1+
100.0

93.2
92.8
92.8
9.44
97.2

2
2
2

23
23
23

72.7
72.5
72.1,,
100.0

3
3
3

69
63
58
5

39
39
39

4
4
U

91.5
90.4
89.2
95.7
96.2

99.5
99.3
99.2
100.0

100.0

18
17
16
1

96.3
95.9
95.7
98.0
98.7

91.5
90.4
89.2
95.7
96.2

288
238
201
37
50

122

100.0

73.2
63.5
60.6
72.0

87.7
85.9
90.2
78.3
89.4

86.8

75.0
75.0
75.0

CORPORATION

139
125
117
8
14

INSURANCE

549
471
A23
U
8
78

DEPOSIT

570
491
U2
U
9
79

96.2
95.8
95.5
98.0
98.7

100.0

552
474
U26
U
8
78

22
21

Branches

574
495
U6
U
9
79

In d ia n a ..................................................
All banks.............................................
Unit banks......................................

Com­ Mutual
InNonAll
sured2 insured banks mercial savings
banks banks

FEDERAL

Insured1
Members F. R.
System

Insured banks
as percentages of—

m

17.6
18.8
20.0

M aryland ..................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

271
170

152
28

14
10

260
170

256
167

76
64

64
16

145
25

116
87

101

145
25

4

90

143
24

61
3

10

105

7
3

6

72
15

12

48

29

554
382

320
183

234
199

331
192

320
183

194
121

83
29

69

141
42

172
27

43
33

172

137

35

149
43

141
42

101
20

16

S
IS

139

89

137

73

1
3
54

27
6

10

627
448

585
415

42
33

627
448

585
415

S98
50

SO
8

398
50

141
77

237
154

368
47

207
184

368
47

65
12

141

6

6

M ississippi............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

253

M issouri.................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

10
7
3

60.0
30.0

98.6
96.0

28.6
33.3

96.2

98.9

80.0

96.7
95.3

1

12

223
190

223
190

57.8
47.9

8

164
26

164
26

33

33

45.0
60.9

94.6
97.7

2

79.7

98.6

93.3
92.6

93.3
92.6

9

1
34
25

92.5
94.0

95.0

95.5
95.4

95.5
95.4

95.4
100.0

95.4
100.0

9

685
679

654
648

31
31

684
678

653
647

677

191
185

25
25

31

437
437

646
2

676
2

645
2

25

437

6

6

183
2

202
17 U
28

248
197

5
5

169
28

5

253
202

248
197

24
23

219
169

51

51

51

51

22
1
1

142
27

98.0
97.5

174
28

169
28

98.0
97.5
97.1
100.0

97.1
100.0

100.0

100.0

597
592

567
562

30
30

597
592

567
562

85
80

588
4

558
4

30

588
4

558
4

76
4

95.0
94.9

95.0
94.9

94.9
100.0

94.9
100.0

100.0

100.0

OPERATING

92.5
94.0

95.0

22

170

2

5

5

170

5

64

50
102
102

102

111

111

111

111

40

N ebraska...............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

420
418

358
356

62
62

420
418

358
356

130
128

62

18
18

2

354
2

2

416
2
2

2

126
2
2

18

2

354
2

N evada...................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

25

25
8

25

8

25
8

18
5

3
5
17

3
5

3
5

2
3

17

17

13

5

28
28

380

28

38
38

S
8

33
33

100.0
100.0

100.0
100.0

100.0

100.0

54
54

85.2
85.2

85.2
85.2

54

85.1
100.0

85.1
100.0

100.0

100.0

3
3
210
210
210

100.0

100.0
100.0

100.0
100.0

100.0
100.0

100.0
100.0

100.0

100.0

100.0

100.0

100.0

BANKS

40
40

17

380
380

5

111
111

3

29

100.0

111
111

8

29
29

6

111
111

46
1

23

DEPOSITS

5

179

111
111




98.5
98.2

95.4
89.3

O
F

IS

95.1
94.4

2

AN
D

M o n ta n a ...............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

179

15

15
3

11

162

M innesota.............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

25

1
1
1

OFFICES,

M ich igan...............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

3
2

NUMBER,

M assachusetts.....................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

285
180

N u m b e r o f O p e r a tin g B a n k s an d B r a n c h e s , D e c e m b e r

a c c o r d in g

to

in su r a n c e

status

All banks

and

class

ban k , and

of

111

107
103
u

Total

Total

54
52
50
2

2

8
8

475
343
285
58
132

2

509
373
312
61
136

sou

61
136

481
349
291
58
182

New M ex ico..........................................
All banks............................................
Unit banks......................................
Banks operating branches...............
Branches.............................................

48
41
35
6
7

48
41
35
6
7

48
41
35
6
7

48
41
35
6
7

22
22

New Y o rk ............................................
All banks..........................................
Unit banks......................................
Banks operating branches..............
Branches.............................................

1,549
820
670
150
729

1,536
808
660
US
728

10
2

1,358
689
581
108
669

1,345
677
571
106

587
399
359

668

7
5
U
1

8

13
12
1

North C arolina..................................
All banks...........................................
Unit banks......................................
Banks operating branches..............
Branches.............................................

379
229
180
U
9
150

372
224
176
148

2

N orth D akota.....................................
All banks............................................
Unit banks......................................
Banks operating branches..............
Branches.............................................

176
151
135
16
25

168
145
131
1U
23

8
6
u




us

2
2

261
218
19U
2.4
43

22

142
76
50
26
66

5
5
5

4
4
u

72
49
U
1
8
23

7
1

43
42
U
1
1

43
42
U
1
1

1

1

1

1

28
24
21
3
4

26
22

19
3
4

21

14
8
6
7

188

141
87
71
16
54

13

379
229
180
U
9
150

372
224
176
U
8
148

55
45
39
6

19
9
7
2

298
170
130
uo

4
3
1

10

10

128

2

176
151
135
16
25

168
145
131
1U
23

42
42
U
2

126
103
89
1U
23

7

191
131
89
U
2
60

12

10
2

1

6

5
3
2
2

1
1

1

1
1

1

191
131
89
j
+2
60

2
2
2

98.4
97.9
97. U
100.0

98.8
98.3
97.9
100.0

92.9
91.7
90.5
100.0

100.0

100.0

100.0

100.0
100.0

100.0
100.0

100.0

3
3
3

86.8

100.0
100.0

3
3
3

53.2
53.3
53.U
50.0
50.0

100.0
100.0

9
8

617
191
1U
1
50
426

uo

XT_
Com­ Mutual
In­
INU
IIAH
sured2 insured banks mercial savings
banks banks

100.0

99.2
98.5
98.5
98.7
99.9

99.0
93.3
98.3
98.1
99.9

98.2
97.8
97.8
98,0
98.7

98.2
97.8
97.8
98,0
98.7

95.5
96.0
97.0
87.5
92.0

95.5
96.0
97.0
87.5
92.0

87.7
88.7
66.7
66.7

100.0
100.0

100.0
100.0
100.0

CORPORATION

4

New Jersey ...........................................
All banks.............................................
Unit banks......................................
Banks operating branches...............
Branches.............................................

Insured banks
as percentages of—

INSURANCE

501
365

2

1
1

2

68

o f f ic e

Noninsured

Trust
Not
com­
mem­ Banks panies Total
bers
of de­ not ac­
F. R.
posit cepting
National State
System
deposits

59
57
55
2

52
50
U
8
2

of

Mutual savings banks

Members F. R.
System

59
57
55
2

62
3
3

type

DEPOSIT

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

Non­
Total Insured insured

and

FEDERAL

New H am p shire..................................
All banks.............................................
Unit banks......................................

31, 1945—Continued

state

Commercial banks and trust companies
Insured1

State and type of bank or office

by

12
0

Table 102.
grouped

375
371
867
k
4

11
11
11

O reg on ...................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

146
73
67
6
73

142
69
63
6
73

4
4
k

P ennsylvania........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

1,168
1,033
970
68
135

1,146
1,015
955
60
131

R hode Islan d ........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

81
34
21
13
47

S outh C arolin a....................
All banks.. . . ......................
Unit banks.......................
Banks operating branches
Branches.............................

296
184
166
18
112

260
238
22k
lk
22

15
15
15

386
382
878
k
4

375
371
367
k
4

203
199
195
k
4

18
18
18

154
154
15k

9
9
9

145
72
66
6
73

141
68
62
6
73

92
23

10
10
10

22
18
15
8
4

1,146
1,026
967
59
120

1,124
1,008
952
56
116

722
662
683
29
60

50
15
8
7
35

31
19
13
6
12

70
25
18
12
45

50
15
8
7
35

175
145
137
8
30

150
120
112
8
30

25
25
25

175
145
137
8
30

150
120
112
8
30

47
23

S outh D a k o ta ......................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

210
166
lhl
25
44

209
165
1U0
25
44

1
1
1

210
166
U1
25
44

209
165
1U0
25
44

T en n essee..............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

358
297
27U
28
61

348
287
26k
28
61

10
10
10

358
297
27U
23
61

Texas.......................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

885
865
8U7
18
20

820
800
782
18
20

65
65
65

885
865
8U7
18
20




3
3
8

3
3
3

257
238
225
13
19

20
16
13
3
4

2
2
2

20

20
2
2
18

17
7
2
5
10

3
3
3

8

10
3
1
2
7

7
5
3
2
2

96
92
89
3
4

25
25
25

55
35
31
k

25
25
25

129
105
8k
21
24

1
1
1

348
287
26k
23
61

98
70
63
7
28

21
12
11
1
9

229
205
190
15
24

6
6
6

820
800
782
18

454
434

109
109
109

257
257
257

64
64
6k

H

10
7

10

20

3

24

20

U6
18
20

97.3
94.5
9U.0

22
7
8
k
15

22
7
8
k
15

11
9
8
1
2

11
9
8
1
2

100.0

98.1
98.3
98.5
95.2
97.0

1
1
1

97.2
94.4
93.9

98.1
98.2
98.U
9U.9
96.7

61.7
44.1
38.1
53.8
74.5

71.4
60.0
61.5
58.3
77.8

85.7
82.8
81.8
100.0
100.0

145
108
9k
lk
37

69

1
1
1

100.0

100.0
100.0

2
2
2

97.2
97.1
97.1

100.0
100.0

2
2
2

100.0

97.2
97.1
97.1

2
2
2

98.2
97.8
97.6

100.0
100.0

39
35
31
k
4

21
2

98.2
97.8
97.7

85.7
82.8
81.8

99.5
99.4
99.3
100.0
100.0

4
4
k

97.2
96.6
96.U
100.0

100.0
1
1
1 ..........................
|

I

92.7 1
92.5
92.3
100.0

100.0

100.0
100.0
100.0

100.0

100.0
100.0

100.0
100.0

100.0

100.0

100.0
99.5
99.4
99.8
100.0
100.0

97.2
96.6
96.U
100.0
100.0

100.0
100.0
100.0

100.0
100.0

BANKS

281
240
231
9
41

OPERATING

386
382
878
k
4

837
662
621
hi
175

O
F

O klah om a.............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

852
677
636
U
1
175

DEPOSITS

15
15
15

AN
D

840
665
62k
hi
175

OFFICES,

855
680
639
U
1
175

NUMBER,

O h io ........................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

92.7
92.5
92.3
100.0
100.0

G
O

Table 102.

N u m b e r OF O p e r a t i n g B a n k s AND B r a n c h e s , D e c e m b e r

31, 1945—Continued

O

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
All banks

Commercial banks and trust companies
Insured1

Total

Non­
Insured insured Total

Noninsured

Members F. ±t.
System

Trust
Not
com­
mem­ Banks panies Total
Total
bers
of de­ not ac­
F. R.
posit cepting
National State
System
deposits
26
12
9

Vermont................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

97
79
71

41
39
37

Virginia.................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

18

18

403
314
270

402
313
269

403
314
270

89

89

89

U

U

U
h

38
31
26
5
7

2

2

402
313
269

u

233
119
108

159
130
119

66
66
66

97.2
97.2
97.2

97.2
97.2
97.2

100.0
100.0

100.0

98.4
98.2
98.1

98.6
98.4
98.3
98.9
99.3

West Virginia.......................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................

180
179
178

175
174
173

180
179
178

175
174
173

77
76
75

Wisconsin..............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

706
559
U70
89
147




88

146

702
555
U66

89
147

692
546
U58
88

146

100.0
100.0

100.0

114

695
549
U61

100.0

100.0
100.0

114

1
1

100.0

100.0
100.0

12

1
1

100.0

99.8
99.7
99.6

100.0
100.0
100.0

115

1
1

100.0

99.8
99.7
99.6

98.7
97.5
97.3

12
115

1
1

100.0

100.0

100.0
100.0

98.7
97.6
97.3

145
40
S3
7
105

11

100.0

100.0
100.0

71
64
61
3
7

111
11

236
122

98.8
98.6
98.5

29

11

236
121
109

239
124

100.0

99.0
98.8
98.6

163
116
90
26
47

112

Washington..........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

100.0
100.0
100.0
100.0

100.0

3

14

81
72
65
7
9

8

100.0
100.0
100.0
100.0

CORPORATION

76
57
50
7
19

INSURANCE

76
57
50
7
19

Com­ Mutual
In­
Non­
All
sured2 insured banks mercial savings
banks banks

DEPOSIT

U tah.......................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches.............................

Insured banks
as percentages of—

1
1

112

97
93

U

15

FEDERAL

State and type of bank or office

Mutual savings banks

77

503
380
301
79
123

100.0

100.0

75.0
75.0
75.0

Wyoming.................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................

57
57
57

56
56
56

Alaska3.....................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................

19
17
15
2
2

4
3
2
1
1

15
14
13
1
1

19
17
15
2
2

4
3
2
1
1

4
3
2
1
1

15
14
13
1
1

Hawaii*...................................
Jk All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................

54
9
7
2
45

1
1
1

53
8
6
2
45

54
9
7
2
45

1
1
1

1
1
1

48
3
1
2
45

Puerto Rico............................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................

36
13
7
6
23

36
13
7
6
23

36
13
7
6
23

Virgin Islands5.......................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................

3
2
1
1
1

1
1
1

3
2
1
1
1

27
27
27

11
11
11

1
1
1

18
18
18

98.2
98.2
98.2

98.2
98.2
98.2

21.1
17.6
13.3
50.0
50.0

21.1
17.6
13.3
50.0
50.0

1.9
11.1
11*.3

1.9
11.1
1J>.3

66.7
50.0

66.7
50.0

100.0
100.0

100.0
100.0

Possessions

1
1

36
13
7
6
23
2
1

2
1

1
1

1
1

1
1
1

AN
D

2
1

5
5
5

OPERATING
BANKS




O
F

1 Includes 9 trust companies not regularly engaged in deposit banking: 1 national bank in Kansas; 3 State banks members of the Federal Reserve System, 1 each in Cali­
fornia, Illinois, and Massachusetts; and 5 State banks not members of the Federal Reserve System, 1 each in Florida, Missouri and Wisconsin, and 2 in Pennsylvania.
2 Includes 3 mutual savings banks, members of the Federal Reserve System.
* Includes 4 national banks, 3 among insured banks not members of the Federal Reserve System, and 1 among noninsured banks.
4 Includes, among noninsured banks, 1 national bank operating 22 branches.
6 Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch.
Back figures—See the Annual Report for 1944, pp. 112-119, and earlier reports

DEPOSITS

1
1
1

OFFICES,

56
56
56

NUMBER,

57
57
57

0
01

Table 103.

N u m b e r a n d D e p o s i t s o f O p e r a t i n g C o m m e r c ia l a n d M u t u a l S a v in g s B a n k s , D e c e m b e r 3 1 , 1 9 4 5
B A N K S G R O U P E D ACCO RD ING TO IN SU R AN CE STATU S A N D B Y D IS TR IC T AN D STATE

Number of banks
Commercial banks and
trust companies

Deposits (in thousands of dollars)
Commercial banks and
trust companies

Mutual savings banks

Mutual savings banks

Noninsured
All
banks

In­
sured

Nonin­
sured

All
banks

14,183

13,302

798

83

542

192

350 166,474,227 151,089,347 147,810,982

3,278,365 15,384,880 10,363,223

5,021,657

United States.. . . 14,684

14,142

13,297

767

78

542

192

350 165,620,528 150,235,648 147,774,784

2,460,864 15,384 880 10,363,223

5,021,657

41

41

5

31

5

1.............
2 .............
3 .............
4 .............
5 .............
6 .............
7 .............
8 .............
9 .............
10...........
11...........
12...........

888
1,250
1,713
1,068
951
1,507
1,502
1,512
1.107
i;621
1,070
536

535
1,093
1,703
1,058
951
1,507
1,494
1,512
1.106
i;621
1,070
533

480
1,060
1,670
1,019
867
1,420
1.432
1.433
1.068
1,362
1,002
489

50
30
31
36
81
73
49
74
35
246
65
28

5
3
2
3
3
14
13
5
3
13
3
16

State
Alabama..............
Arizona..............
Arkansas............
..........
Colorado............

216
13
227
202
149

216
13
227
202
149

212
11
208
188
133

16
5
16

Connecticut.........
Delaware............
Dist. of Columbia
Florida...............
Georgia..............

189
42
21
173
360

117
40
21
173
360

99
39
21
167
291

Possessions..........

Insured

Nonin­
sured

853,699

853,699

36,198

7,950,255
42,285,894
17,363,959
7,964,026
5,766,041
8,541,778
10,592,890
14,049,892
4.167,541
5,636,645
8,196,499
18,573,927

7,460,721
41,108,530
17,309,865
7,851,041
5,712,978
8,483,448
10,451,822
13,930,572
4.072.327
5^419,914
8,089,839
17,919,925

489,534
1,177,364
54,094
112,985
53,063
58,330
141,068
119,320
95.214
216,731
106,660
654,002

1,313,730
368,984
769,886
13,263,693
1,099,644

1,313,730
368,984
769,886
13,263,693
1,099,644

1,305,987
368,984
765,405
13,195,915
1,092,875

1,552,136
476,829
1,059,910
1,805,273
1,858,329

1,362,404
475,194
1,059,910
1,798,113
1,829,475

Nonin­
sured

4,481
67,778
6,769

2,667,631
550,718
1,059,910
1,805,273
1,858,329

Insured

817,501

12,708,275
51,084,368
18,500,393
8,313,049
5,766,041
8,541,778
10,641,470
14,049,892
4.295,387
5,636,645
8,196,499
18,740,430

Total

FDIC District
District
District
District
District
District
District
District
District
District
District
District
District




353
157
10
10

16
153
10
3

337
4

8

6

2

1

1

3

3

7

4
2
3
9

17
1

1

3
69

3

California
72
2

2

70
2

4,758,020
8,798,474
1,136,434
349,023

120,010
8.702.434
1.136.434
72,892

4,638,010
96,040

11,476

48,580

37,104

127,846

127.846

166,503

166,503

1,115,495
73,889

21,725

276,131'

7,743

189,732
1,635
7,160
28,854

1,093,770
73,889

CORPORATION

United States and
possessions........ 14,725

Total

INSURANCE

In­
Banks
sured1 of de­
posit

DEPOSIT

Trust
com­
Total
panies
not ac­
cepting
deposits

Total

FEDERAL

FDIC District
and State

46
856
495
656
615

46
856
491
656
615

45
840
471
593
446

1
11
17
63
167

391
151
96
180
382

391
151
64
170
192

363
150
55
167
183

23
1
9
2
9

448
679
202
592
111

448
678
202
592
111

415
647
197
562
111

25
29
5
28

2

418
8
65
349
41

356
8
57
343
41

54

8

New M exico........

418
8
107
373
41

8
3

3

New Y ork............
North Carolina...
North Dakota. . .
Ohio.....................
Oklahoma............

820
229
151
680
382

689
229
151
677
382

677
224
145
662
371

12
4
5
15
9

1
1

Oregon.................
Pennsylvania. . . .
Rhode Island. . . .
South Carolina.. .
South D akota... .

73
1,033
34
145
166

72
1,026
25
145
166

68
1,008
15
120
165

2
16
7
25
1

2
2
3

Tennessee............
Texas....................
Utah.....................
Vermont..............
Virginia................

297
865
57
80
314

297
865
57
72
314

287
800
57
71
313

6
64

4
1

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

124
179
559
57

122
179
555
57

119
174
546
56

Possessions
Alaska..................
Hawaii.................
Puerto R ico .........
Virgin Islands. . . .

17
9
13
2

17
9
13
2

3
1

Idaho....................
Illinois..................
Iowa.....................
Kansas.................
Kentucky............

Michigan.............
Minnesota............

Nebraska.............
Nevada................
New Hampshire..

1

1

5
3

1

1

32
10
190

6
3

26
7
190

8
2

1

1

5

2

1

4
7

1
2
1

14
3
13
1

5

22

131

131

3

3

1
7
9

1
7

8

42
2

9

8

2

2

4

3

404,223
11,894,344
2,839,629
2,036,228
1,400,839

8,051
30,024
33,781
89,296
165,988

1,588,791
1,627,328
694,507
2,055,159
7,514,039

1,588,791
1,627,328
491,241
1,706,136
4,658,369

1,562,554
1,626,540
452,831
1,642,825
4,543,456

26,237
788
38,410
63,311
114,913

4,881,819
2,782,309
788,709
4,225,791
499,190

4,783,106
2,766,283
779,403
4,206,975
499,190

98,713
16,026
9,306
18,816

1,290,066
156,369
501,103
4,996,970
270,582

1,290,066
156,369
233,926
4,566,869
270,582

1,251,792
156,369
218,626
4,558,332
270,582

38,274

36,976,587
1,817,847
488,570
7,185,484
1,469,226

1,423,110
11,110,428
1,018,351
638,106
397,472

1

37,845

26,835

11,010

203,266
349,023
2,855,670

22,699
72,892

180,567
276,131
2,855,670

127,846

127,846

15,300
8,537

267,177
430,101

407,950

36,071,127
1,797,917
411,150
7,172,436
1,463,526

905,460
19,930
77,420
13,048
5,700

8,294,484

8,294,484

204,481

204,481

1,414,377
10,178,475
777,525
638,106
397,472

1,407,511
10,137,429
646,346
619,877
395,704

6,866
41,046
131,179
18,229
1,768

8,733
931,953
240,826

8,733
931,953

1,957,310
5,929,605
558,330
312,644
1,852,415

2

42
24

412,274
11,924,368
2,873,410
2,125,524
1,566,827

45,271,071
1,817,847
488,570
7,389,965
1,469,226

3

412,274
11,924,368
2,911,255
2,125,524
1,566,827

4,881,819
2,910,155
788,709
4,225,791
499,190

4

1,957,310
5,929,605
558,330
237,058
1,852,415

1,948,514
5,823,733
558,330
237,058
1,851,457

8,796
105,872
75,586

75,586

2,338,564
889,612
2,848,396
210,882

2,180,794
889,612
2,837,661
210,882

2,165,256
879,055
2,829,087
210,882

15,538
10,557
8,574

157,770

157,770

10,735

10,269

54,613
533,477
261,596
4,013

54,613
533,477
261,596
4,013

17,092
15,229

37,521
518,248
261,596
136

3,877

958

267,177
22,151

240,826

466

1 Includes 9 trust companies not engaged in deposit banking: 2 in Pennsylvania and 1 each in California, Florida, Illinois, Kansas, Massachusetts, Missouri and Wisconsin.
Back figures— See the following Annual Reports: 1944, pp. 120-121; 1943, pp. 76-77; 1942, pp. 76-77; 1941, pp. 108-109.




A

ssets a n d

L ia b il it ie s

of

O p e r a t in g B a n k s

Table 104. Summary of assets and liabilities of operating banks in the United States and
possessions, June 30, 1945
Banks grouped according to insurance status and type of bank

Table 105. Summary of assets and liabilities of operating banks in the United States and
possessions. December 31, 1945
Banks grouped according to insurance status and type of bank

Table 106. Assets and liabilities of operating insured commercial banks, December 31, 1945,
June 30, 1945, and December 30, 1944
Table 107. Summary of assets and liabilities of operating banks in the United States and
possessions, 1943-1945
Banks grouped according to insurance status and by type of bank

Table 108. Assets and liabilities of operating insured commercial banks, call dates, 1940-1945
Table 109. Percentage distribution of assets and liabilities of operating insured commercial
banks, call dates, 1940-1945
Table 110. Assets and liabilities of all operating banks in the United States and possessions,
December 31, 1945




Banks grouped by district and State

Statements of assets and liabilities are submitted by insured com­
mercial banks upon either a cash or an accrual basis, depending upon
the bank’s method of bookkeeping. Assets reported represent aggregate
book value, on the date of call, less valuation allowances and premiums.

State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.

Noninsured banks: State banking authorities; Rand M cN ally Bankers
D irectory; and P o W s Bankers Encyclopedia,

BANKS

Other insured banks: Federal Deposit Insurance Corporation.

OPERATING




National banks and State banks in the District of Columbia not
members of the Federal Reserve System: Office of the Comptroller of
the Currency.

O
F

Instalment loans are ordinarily reported net if the instalment pay­
ments are applied directly to the reduction of the loan. Such loans are
reported gross if, under contract, the payments do not immediately

Sources of Datas

LIABILITIES

Since June 30, 1942, demand balances with and demand deposits
due to banks in the United States exclude reciprocal interbank deposits.
Reciprocal interbank deposits arise when two banks maintain deposit
accounts with each other.

Data for noninsured trust companies not accepting deposits are
excluded. Data for some noninsured commercial banks are omitted
because of unavailability of reports. On December 31, 1945, 83 non­
insured trust companies and 21 noninsured commercial banks were
excluded. Because of these exclusions, the number of noninsured banks
in the following tables does not agree with the number shown in the
previous section.

AN
D

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” .

Total deposits shown in these tables are not the same as the deposits
upon which assessments paid to the Federal Deposit Insurance Cor­
poration are based. The assessment base is slightly lower due to certain
deductions which may be claimed.

ASSETS

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 department. “ Deposits of individuals,
partnerships, and corporations” include trust funds deposited by a trust
department in a commercial or savings department. Other assets held
in trust are not included in statements of assets and liabilities.

reduce the unpaid balances of the loan but are assigned or pledged to
assure repayment at maturity.

©

CD

Table 104.

S u m m a ry o f A s s e t s a n d L i a b i l i t i e s o f O p e r a t in g B a n k s in t h e U n i t e d S t a t e s a n d P o s s e s s i o n s , J u n e
banks

grouped

a c c o r d in g

to

in s u r a n c e

status

and

type

30, 1945

of bank

(Amounts in thousands of dollars)
Mutual savings banks

Commercial banks
Assetyliability, or capital account item

All
banks

Total

Insured1

Noninsured

Insured

Total

Noninsured

603,412

583,526

421,730

161,796

89,001,216
82.422.104
3,686,190
2,566,830
326,092

2,353,558
2.158.430
89,604
68,017
25,759
11,748

10,827,247
9.587.699
'101,685
1,002,166
135,697

6,974,375
6.367.775
74,698
518,284
13,618

3,852,872
3.219.924
26,987
483,882
122,079

Loans, discounts, and overdrafts (including rediscounts).....................

28,085,987

23,777,084

23,378,880

398,204

4,308,903

3,088,896

1,220,007

Miscellaneous assets—total....................
Bank premises owned, furniture and fixtures...............................................
Other real estate— direct and indirect...........................................................
All other miscellaneous assets..................
Total assets..........................................

1,732,298
1,037,346
183,768
511,184
162,846,501

1,500,488
937,282
121,975
441,231
146,895,015

1,417,398
918,606
115,468
383,324
143,456,751

83,090
18,676
6,507
57,907
3,438,264

231,810
100,064
61,793
69,953
15,951,486

173,164
74,901
46,886
51,377
10,658,165

58,646
25,163
14,907
18,576
5,293,321

151.860.005

134,282,386
65,507,969
26,363,106
5,181,907
23,583,287
12,400,925
1,239,938
5,254

3,152,221
1,119,616
558,647
218,320
958,669
195,875
23,648
77,446

14.425.398

9.671.362

4.754.036

151.860.005

137,434,607
66,627,585
26,921,753
5,400,227
24,541,956
12,596,800
1,263,586
82,700

14.425.398

9.671.362

4.754.036

Miscellaneous liabilities—total......................................
Rediscounts and other borrowed m oney.........................................................
All other miscellaneous liabilities.....................................................................
Total liabilities (excluding capital accounts).....................................

913,658
70,030
843,628
152,773,663

865,171
68,993
796,178
138,299,778

833,017
65,308
767,709
135,115,403

32,154
3,685
28,469
3,184,375

48,487
1,037
47,450
14,473,885

30,352
37
30,315
9,701,714

18.135
1,000
17.135
4,772,171

CAPITAL ACCOUNTS
Capital accounts— total...............................................................
Capital stock, notes, and debentures..............................................................
Surplus..........................................
Undivided profits, including all other capital accounts................................
Total liabilities and capital accounts..................................................

10,072,838
3,078,325
4,643,140
2,351,373
162,846,501

8,595,237
3,073,614
3,614,998
1,906,625
146,895,015

8,341,348
2,977,941
3,528,861
1,834,546
143,456,751

253,889
95,673
86,137
72,079
3,438,264

1,477,601
4,711
1,028,142
444,748
15,951,486

956,451
4,711
733,379
218,361
10,658,165

294,763
226,387
5,293,321

14,601

14,059

13,282

777

542

192

350

^
LIABILITIES
Deposits—total........................
Demand deposits of individuals, partnerships, and corporations................
Time deposits of individuals, partnerships, and corporations.....................
States and political subdivisions.........................................
United States Government........................................................
Interbank.............................................
Certified and officers’ checks, cash letters of credit, etc...............................
Not classified, including postal savings........................................................

Number of banks included..................................................................................
1 Includes 9 trust companies not engaged in deposit banking.

Back figures— See the following Annual Reports: 1944, pp. 124-125; 1943, pp. 78-79; 1942, pp. 78-79; 1941, pp. 122-125.



521,150

CORPORATION

29,659,257

91,354,774
84.580.534
3,775,794
2,634,847
351,851
11,748

INSURANCE

30,262,669

102,182,021
94.168.233
3,877,479
3,637,013
487,548
11,748

DEPOSIT

30,846,195

Securities—total.........................
United States Government obligations, direct and guaranteed...................
Obligations of States and political subdivisions............................................
Other bonds, notes, and debentures.........................................
Corporate stocks........................
Not classified..........................

FEDERAL

ASSETS
Cash, balances with other banks, and cash items in process of col­
lection ..............................

Table 105.

Summary

of

Assets

and

Liabilities

of

Operating Banks

in the

United States

and

Possessions, December 31, 1945

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK

(Amounts in thousands of dollars)
Commercial banks
Asset, liability, or capital account item

All
banks

Total

Insured1

Mutual savings banks

Noninsured

Total

Insured

Noninsured

ASSETS
Gash, balances with other banks, and cash items in process of col­
lection .......................................................................................................

35,584,213

34,974,879

34,302,704

672,175

609,334

428,978

180,356

Securities—total.................................................................................................
United States Government obligations, direct and guaranteed...................
Obligations of States and political subdivisions............................................
Other bonds, notes, and debentures...............................................................
Corporate stocks...............................................................................................
Not classified.....................................................................................................

110,417,739
101,822,197
4,063,992
4,028,603
493,274
9,673

98,490,412
91,149,647
3,974,652
3,003,873
352,567
9,673

96,066,695
88,933,380
3,874,729
2,938,313
320,273

2,423,717
2,216,267
99,923
65,560
32,294
9,673

11,927,327
10,672,550
89,340
1,024,730
140,707

7,765,146
7,159,538
69,247
523,797
12,584

4,162,181
3,513,012
20,093
500,933
128,143

Loans, discounts, and overdrafts (including rediscounts).....................

30,473,074

26,192,472

25,768,677

423,795

4,280,602

3,081,253

1,199,349

Miscellaneous assets— total............................................................................
Bank premises owned, furniture and fixtures................................................
Other real estate— direct and indirect............................................................
All other miscellaneous assets.........................................................................
Total assets..................................................................................................

1,728,021
1,016,046
143,945
568,030
178,203,047

1,524,930
921,260
106,750
496,920
161,182,693

1,444,324
902,925
100,411
440,988
157,582,400

80,606
18,335
6,339
55,932
3,600,293

203,091
94,786
37,195
71,110
17,020,354

148,393
71,104
25,917
51,372
11,423,770

54,698
23,682
11,278
19,738
5,596,584

LIABILITIES
Deposits—total...................................................................................................
Demand deposits of individuals, partnerships, and corporations................
Time deposits of individuals, partnerships, and corporations.....................
States and political subdivisions.....................................................................
United States Government..............................................................................
Interbank...........................................................................................................
Certified and officers’ checks, cash letters of credit, etc...............................
Not classified, including postal savings.........................................................

166,474,227
73,876,141
45,285,470
5,786,063
24,770,397
14,071,870
2,614,569
69,717

151,089,347
73,867,330
29,917,444
5,784,112
24,766,651
14,071,426
2,612,667
69,717

147,810,982
72,605,736
29,295,108
5,595,417
23,841,369
13,883,529
2,584,897
4,926

3,278,365
1,261,594
622,336
188,695
925,282
187,897
27,770
64,791

15,384,880
8,811
15,368,026
1,951
3,746
444
1,902

10,363,223
7,927
10,348,697
1,704
2,665
411
1,819

5,021,657
884
5,019,329
247
1,081
33
83

Miscellaneous liabilities—total.....................................................................
Rediscounts and other borrowed money........................................................
All other miscellaneous liabilities....................................................................
Total liabilities (excluding capital accounts)....................................

1,203,697
225,694
978,003
167,677,924

1,160,378
219,138
941,240
152,249,725

1,099,022
215,300
883,722
148,910,004

61,356
3,838
57,518
3,339,721

43,319
6,556
36,763
15,428,199

26,188
556
25,632
10,389,411

17.131
6,000
11.131
5,038,788

Undivided profits, including all other capital accounts................................
Total liabilities and capital accounts..................................................

10,525,123
3,134,851
4,973,783
2,416,489
178,203,047

8,932,968
3,129,929
3,873,430
1,929,609
161,182,693

8,672,396
3,032,331
3,784,722
1,855,343
157,582,400

260,572
97,598
88,708
74,266
3,600,293

1,592,155
4,922
1,100,353
486,880
17,020,354

1,034,359
4,922
791,353
238,084
11,423,770

309,000’
248.796
5,596,584

Number of banks included...................................................................................

14,621

14,079

13,802

777

542

192

350

CAPITAL ACCOUNTS
Capital accounts—total...................................................................................
Capital stock, notes, and debentures.............................................................

1 Includes 9 trust companies not engaged in deposit banking.
Back figures— See the following Annual Reports: 1944, pp. 124-125; 1943, pp. 78-79; 1942, pp. 78-79; 1941, pp. 122-125.




>
U
l
G
O
tel
g
%
©
£
W
a
n
3
H
oa
O

2

H
£J

H
S
§
W
>
3
W
&

557.796

^
til

T a b le 1 06 .

A ssets a n d L ia b il it ie s of O perating I n su r e d C om m ercial B a n k s , D e c e m b e r 31, 1945,

ASSETS

Dec. 31,
1945

29,659,257
1,477,475
14,805,926

29,746,309
1,625,675
14,259,603

9,902,652
64,630
24,389
3,384,185

2,584,897

1,239,938

1,354,421

G overnm ent deposits—t o ta l........................... 29,441,712
United States Government— demand:
War loan and Series E bond accounts........ 23,476,945
266,147
Other accounts...............................................
98,277
United States Government—time...................
4,926
Postal savings..................... ..............................
5,099,450
States and political subdivisions—demand. . .
495,967
States and political subdivisions—time..........

28,770,448

24,811,141

23,199,502
283,822
99,963
5,254
4,699,707
482,200

19,455,586
303,205
103,175
5,365
4,520,308
423,502

13,883,529
12,566,058
51,957
1,247,905
17,609

12,400,925
11,216,666
49,203
1,118,697
16,359

12,074,356
11,063,174
52,672
947,651
10,859

82,422,104
2,831,494
17,206,276
16,456,203
1,094,398
7.122.196
30,070,985
5.164.197
2,433,071
43,284

3,972,299
15,302,996
15,780,732
763,842
5,917,794
25,467,314
5,796,636 Interbank deposits— t o t a l...............................
Banks in the United States— demand.............
1,917,000
Banks in the United States—time...................
977,613
Banks in foreign countries—demand...............
Banks in foreign countries—time.....................

6,579,112
3,686,190
2,566,830

6,156,841
3,423,732
2,385,706

176,895
143,378

169,559
156,533

162,541
184,862

T otal secu rities..............................

96,066,695

89,001,216

23,378,880
7,502,254

T otal deposits.............................................. 147,810,982 134,282,386 125,751,795
Demand...................................................... 117.8 U7.138 107,266,801 101,793,818
Time..................... ...................................... 29,968,8hk 27,016,085 23,958,^82

M iscellaneous liabilities— t o ta l............ .
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..........................
21,354,758
Other liabilities..................................................
7,921,036

82,053,067

595,392

805,503

1,036,357

917,363

1,099,022

833,017

871,103

215,300
76,824
56,508
58,280
367,271
324,839

65,308
49,253
47,776
49,787
335,771
285,122

121,549
72,693
48,357
46,728
278,974
302,802

T otal liabilities (excluding capital
a ccou n ts).................................................. 148,910,004 135,115,403 126,622,898

CORPORATION

87,511,877
61,148,968
23,362,909

INSURANCE

91,871,075
65,507,969
26,363,106

Dec. 31,
1945

Deposits of individuals, partnerships, and
corporations—total................................ 101,900,844
Demand............................................ 72,605,736
Time.................................................................... 29,295,108

75,896,226

7,133,315
3,874,729
2,938,313




Dec. 30,
1944

9,732,661 Certified and officers’ checks, cash letters
of credit and travelers’ checks o u t­
64,239
standing, and am ounts due to Fed­
17,088
eral Reserve ba n k s.................................
4,047,043

Other securities— t o t a l......................................
Obligations of States and political subdivisions
Other bonds, notes, and debentures1---Corporate stocks:
Federal Reserve banks................... ..
Other corporate stocks.........................

Loans, discounts, and overdrafts (including
25,768,677
rediscounts)—total................. ......... .
Commercial and industrial loans (including
9,462,256
open market paper)2...................................
Loans to farmers directly guaranteed by the
304,685
Commodity Credit Corporation2..............
Other loans to farmers (excluding loans on
1,009,608
real estate)2.......................................

June 30,
1944

LIABILITIES AND CAPITAL

DEPOSIT

O bligations o f the United States Govern­
m en t—to ta l.............................................. 88,933,380
Direct:
2,455,731
Treasury bills.................................................
Treasury certificates of indebtedness........... 19,074,630
Treasury notes............................................... 16,047,429
1,194,764
United States savings bonds.........................
9,029,883
Other bonds maturing in 5 years or less. . . .
Other bonds maturing in 5 to 10 years....... 32,230,258
6,092,145
Bonds maturing in 10 to 20 years................
2,786,871
Bonds maturing after 20 years.....................
21,669
Guaranteed obligations.....................................

Dec. 30,
1944

FEDERAL

(jash, balances with other banks, and cash
item s in process of collection — t o t a l.. 34,302,704
1,831,755
Currency and coin.............................................
15,810,286
Reserve with Federal Reserve banks..........
Demand balances with banks in the United
States (except private banks and Amer­
ican branches of foreign banks)................ 11,006,547
75,427
Other balances with banks in the United States
24,017
Balances with banks in foreign countries
5,554,672
Cash items in process of collection.........

June 30,
1945

12
1

Ju n e 30, 1945, and D ec e m b e r 30, 1944
(Amounts in thousands of dollars)

Consumer loans to individuals:
Retail automobile instalment paper............
Other retail, repair and modernization in­
stalment loans.............................................
Personal instalment cash loans.....................
Loans to brokers and dealers in securities. . . .
Other loans for the purpose of purchasing or

184,966

174,164

266,346
398,296
1,471,836
3,164,060

209.927
350,079
1,363,314
3,113,173

191,742
317,571
1,204,933
2,269,381

3,606,474

3,600,585

2,264,758

507,342
3.331.504
840,404
48,599
1.132.505

483,552
3,192,263
738,765
57,325
950.928

69,172

1,034,074
848,935
69,671
45,082
70,386
383,324

66,459
252,033
18,641
103,855

41,376
234,874
14,085
92,989

449,614
3,156,607
MEMORANDA
737,930
59,374 Pledged assets and securities loaned—total
884,782
United States Government obligations, direct
and guaranteed, pledged to secure lia­
bilities..........................................................
Other assets pledged to secure liabilities........
103,407,825
Assets pledged to qualify for exercise of fidu­
ciary or corporate powers, and for pur­
poses other than to secure liabilities........
Securities loaned................................................
1,079,091
888,882
71,160 Secured and preferred liabilities—t o ta l. . . .
63,522
Deposits secured by pledged assets pursuant
to requirements of law..............................
75,527
Deposits preferred under provisions of law but
not secured by pledge of assets................
Borrowings secured by pledged assets.............
Other liabilities secured by pledged assets. . . .
379,940
Capital stock, notes, and debentures:
62,801
Par or face value— t o t a l................................
216,599
Common stock...............................................
11,930
Capital notes and debentures.......................
88,610
Preferred stock...............................................

T otal assets............................................... 157,582,400 143,456,751 134,613,165
13,302

13,282

Retirable value of preferred stock...................

13,268 Number of banks

32,517,937

31,483,669

27,727,300

31,657,985
512,178

30,615,809
538,823

26,831,454
561,779

304,138
43,636

271,265
57,772

300,421
33,646

29,597,967

28,541,657

24,843,282

28,353,800

27,595,272

23,846,867

1,029,209
214,605
353

884,198
61,889
298

901,915
93,743
757

3,034,144
2,838,661
42,892
152,591

2,979,999
2,753,002
46,081
180,916

2,915,933
2,663,479
50,065
202,389

260,591

302,400

328,203

13,302

13,282

13,268

1 Includes obligations of United States Government corporations and agencies not guaranteed by the United States Government.
2 Due to a minor reclassification of certain of these loans, amounts as of December 31, 1945, are not strictly comparable with amounts as of June 30, 1945, and December 30,
1944. The revision affects chiefly the item “ Loans to farmers directly guaranteed by the Commodity Credit Corporation." The corresponding former item included: (a) loans to
dealers, processors and farmers cooperatives directly or indirectly guaranteed by the CCC (now classified as commercial and industrial loans); and (b) loans to farmers indirectly
guaranteed by the CCC (now classified as other loans to farmers).
Back figures—See the following Annual Reports: 1944, pp. 126-127; 1943, pp. 80-81; 1942, pp. 80-81; 1941, pp. 126-129; 1940, pp. 144-147; 1938, pp. 164-167.




BANKS

Number of banks...................................................

T otal liabilities and capital a c c o u n ts. . 157,582,400 143,456,751 134,613,165

OPERATING

440,988

7,990,267
2,912,455
3,401,995
1,169,389
506,428

O
F

M iscellaneous assets—to ta l.............................
Customers’ liability on acceptances out­
standing .......................................................
Income accrued but not collected....................
Prepaid expenses................................................
Other assets.........................................................

1,003,336
835,787
67,138
31,239

8,341,348
2,977,941
3,528,861
1,293,751
540,795

LIABILITIES

Bank prem ises, fu rn itu re 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.

Undivided profits...............................................

8,672,396
3,032,331
3,784,722
1,293,271
562,072

AD
N

Loans and securities— t o ta l................. 121,835,372 112,380,096

Capital accounts—t o ta l...................................
Capital stock, notes, and debentures..............

ASSETS

Real estate loans:
On farm land..................................................
On residential properties...............................
On other properties........................................
Loans to banks...................................................
All other loans (including overdrafts).............

224,762

00

Table 107,

S u m m a ry o f A s s e t s a n d L i a b i l i t i e s o f O p e r a t in g B a n k s in t h e U n i t e d S t a t e s a n d P o s s e s s i o n s ,

1943-1945

B A N K S G RO U PED ACCORDING TO IN SU R AN CE STATU S AN D B Y T Y P E OF B A N K

(Amounts in millions of dollars)
Asset, liability, or capital account item
ALL BANKS

INSURED

June 30, 1944

December 31, 1943

June 30, 1943
NONINSURED

ALL BANKS

INSURED

NONINSURED

ALL BANKS

INSURED

NONINSURED

120,610
27,750
62,537
6.593
21,917
1,813

7,184
'820
3,618
852
1,735
159

139,227
28,279
76,017
7,552
25,487
1,892

131,766
27,571
71,856
6,750
23,843
1,746

7,461
708
4,161
802
1,644
146

Total liabilities and capital accounts..........
Total deposits....................................................
Miscellaneous liabilities....................................
Total capital accounts......................................

116,983
107,622
657
8,704

105,414
97,321
606
7,487

11,569
10,301
51
1,217

127,794
118,100
733
8,961

120,610
111,650
698
8,262

7,184
6,450
35
699

139,227
129,128
824
9,275

131,766
122,415
782
8,569

7,461
6,713
42
706

Number of banks included...................................

14,666

13,363

1,303

214,632

13,458

21,174

14,608

13,461

1,147

ALL
COMMERCIAL

INSURED
COMMERCIAL

NONINSURED
COMMERCIAL

ALL
COMMERCIAL

INSURED
COMMERCIAL

NONINSURED
COMMERCIAL

ALL
COMMERCIAL

INSURED
COMMERCIAL

NONINSURED
COMMERCIAL

Total assets..........................................................
Cash and amounts due from other banks. . . .
United States Government obligations1..........
Other securities.................................................
Loans, discounts, and overdrafts....................
Miscellaneous assets..........................................

104,555
26,050
52,628
6,533
17,705
1,639

102,405
25,538
51,542
6,348
17,392
1,585

2,150
512
1,086
185
313
54

114,734
27,766
60,058
6,146
19,171
1,593

112,246
27,191
58,693
5,985
18,844
1,533

2,488
575
1,365
161
327
60

125,386
27,736
68,716
6,294
21,071
1,569

122,647
27,190
67,104
6,124
20,732
1,497

2,739
546
1,612
170
339
72

Total liabilities and capital accounts..........
Total deposits....................................................
Miscpllanpour liabilities....................................
Total capital accounts......................................

104,555
96,476
617
7,462

102,405
94,582
594
7,229

2,150
1,894
23
233

114,734
108,350
697
7,687

112,246
104,116
676
7,454

2,488
2,234
21
233

125,386
116.655
778
7,953

122,647
114,180
757
7,710

2,739
2,475
21
243

Number of banks included...................................

14,121

13,302

819

214,087

13,274

2813

14,064

13,269

795

ALL
MUTUAL
SAVINGS

INSURED
MUTUAL
SAVINGS

NONINSURED
MUTUAL
SAVINGS

ALL
MUTUAL
SAVINGS

INSURED
MUTUAL
SAVINGS

NONINSURED
MUTUAL
SAVINGS

ALL
MUTUAL
SAVINGS

INSURED
MUTUAL
SAVINGS

NONINSURED
MUTUAL
SAVINGS

Total assets..........................................................
Cash and amounts due from other banks. . . .
United States Government obligations1..........
Other securities..................................................
Loans, discounts, and overdrafts....................
Miscellaneous assets.........................................

12,428
722
5,285
1,382
4,589
450

3,009
170
1,264
427
1,013
135

9,419
552
4,021
955
3,576
315

13,060
804
6,097
1,299
4,481
379

8,364
559
3,844
608
3,073
280

4,696
245
2,253
691
1,408
99

13,841
543
7,301
1,258
4,416
323

9,119
381
4,752
626
3,111
249

4,722
162
2,549
632
1,305
74

Total liabilities and capital accounts..........
Total deposits....................................................
Miscellaneous liabilities....................................
Total capital accounts......................................

12,428
11,146
40
1,242

3,009
2,739
12
258

9,419
8,407
28
984

13,060
11,750
36
1,274

8,364
7,534
22
808

4,696
4,216
14
466

13,841
12,473
46
1,322

9,119
8,235
25
859

4,722
4,238
21
463

Number of banks included...................................

545

61

484

545

184

361

544

192

352




CORPORATION

127,794
28,570
66,155
7.445
23,652
1,972

INSURANCE

11.569
1.064
5,107
1.140
3,889
369

DEPOSIT

105,414
25,708
52,806
6.775
18,405
1,720

FEDERAL

T otal a ssets...................................... ................
Cash and amounts due from other banks. . . .
United States Government obligations1..........
Other securities . . ;
...............................
Loans, discounts, and overdrafts....................
Miscellaneous assets..........................................

116,983
26.772
57,913
7.915
22,294
2,089

December 30, 1944
ALL BANKS

INSURED

June 30, 1945

NONINSURED

ALL BANKS

INSURED

December 31, 1945
NONINSURED

ALL BANKS

INSURED

NONINSURED

154.114
30,081
88,790
7,185
26,468
1,590

8.731
765
5,379
828
1,618
141

178.203
35,585
101,822
8,595
30,473
1,728

169.006
34,732
96,093
7,739
28,850
1,592

9.197
853
5,729
856
1,623
136

Total liabilities and capital accounts..........
Total deposits....................................................
Miscellaneous liabilities....................................
Total capital accounts......................................

152.618
142,077
926
9,615

144.440
134,662
896
8,882

8.178
7,415
30
733

162.845
151,859
913
10,073

154.114
143,953
863
9,298

8.731
7,906
50
775

178.203
166,474
1,203
10,526

169.006
158,174
1,125
9,707

9.197
8,300
78
819

Number of banks included...................................

14,597

13,460

1,137

14,601

13,474

1,127

14,621

13,494

1,127

ALL
COMMERCIAL

INSURED
COMMERCIAL

NONINSURED
COMMERCIAL

ALL
COMMERCIAL

INSURED
COMMERCIAL

NONINSURED
COMMERCIAL

ALL
COMMERCIAL

INSURED
COMMERCIAL

NONINSURED
COMMERCIAL

Total assets........................................................
Cash and amounts due from other banks. . . .
United States Government obligations1..........
Other securities..................................................
Loans, discounts, and overdrafts....................
Miscellaneous assets..........................................

137.830
30,327
77,953
6,331
21,708
1,511

134.613
29,746
75,896
6,157
21,355
1,459

3.217
581
2,057
174
353
52

146.894
30,262
84,581
6,774
23,777
1,500

143.456
29,659
82,422
6,579
23,379
1,417

3.438
603
2,159
195
398
83

161,182
34,975
91,149
7,340
26,193
1,525

157.582
34,303
88,933
7,133
25,769
1,444

3.600
672
2,216
207
424
81

Total liabilities and capital accounts.........
Total deposits....................................................
Miscellaneous liabilities....................................
Total capital accounts......................................

137.830
128,702
891
8,237

134.613
125,752
871
7,990

3.217
2,950
20
247

146.894
137,434
865
8,595

143.456
134,282
833
8,341

3.438
3,152
32
254

161,182
151,089
1,160
8,933

157.582
147,811
1,099
8,672

3.600
3,278
61
261

Number of banks included...................................

14,054

13,268

786

14,059

13,282

777

14,079

13,302

777

ALL
MUTUAL
SAVINGS

INSURED
MUTUAL
SAVINGS

NONINSURED
MUTUAL
SAVINGS

ALL
MUTUAL
SAVINGS

INSURED
MUTUAL
SAVINGS

NONINSURED
MUTUAL
SAVINGS

ALL
M UTUAL
SAVINGS

INSURED
MUTUAL
SAVINGS

NONINSURED
MUTUAL
SAVINGS

14.788
583
8,328
1,232
4,372
273

9.827
399
5,509
604
3,110
205

4.961
184
2,819
628
1,262
68

15.951
584
9,588
1,239
4,309
231

10.658
422
6,368
606
3,089
173

5.293
162
3.220
633
1.220
58

17.021
610
10,673
1,255
4,280
203

11.424
429
7,160
606
3,081
148

5.597
181
3,513
649
1,199
55

Total liabilities and capital accounts..........
Total deposits....................................................
Miscellaneous liabilities....................................
Total capital accounts......................................

14.788
13,375
35
1,378

9.827
8,910
25
892

4.961
4,465
10
486

15.951
14,425
48
1,478

10.658
9,671
30
957

5.293
4,754
18
521

17.021
15,385
43
1,593

11.424
10,363
26
1,035

5.597
5,022
17
558

Number of banks included...................................

543

192

351

542

192

350

542

192

350

1 Includes both direct and guaranteed obligations.
8 Revised.
Back figures—See the following Annual Reports: 1944, pp. 128-129; 1941, pp. 122-125.




BANKS

Total assets..........................................................
Cash and amounts due from other banks. . . .
United States Government obligations1.........
Other securities..................................................
Loans, discounts, and overdrafts....................
Miscellaneous assets..........................................

OPERATING

162.845
30,846
94,169
8,013
28,086
1,731

O
F

8.178
765
4,876
802
1,615
120

LIABILITIES

144.440
30,145
81,405
6,761
24,465
1,684

AD
N

152.618
30,910
86,281
7,563
26,080
1,784

ASSETS

Total assets..........................................................
Cash and amounts due from other banks. . . .
United States Government obligations1..........
Other securities..................................................
Loans, discounts, and overdrafts....................
Miscellaneous assets..........................................

Table 108.

A s s e t s a n d L i a b i l i t i e s o f O p e r a t in g I n s u r e d C o m m e r c ia l B a n k s , C a l l D a t e s ,

1940-1945

(Amounts in millions of dollars)
1943

1942

1941

1940

1945

1944

Asset or liability item
June 29 Dec. 31 June 30 Dec. 31 June 30

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

Cash, balances with other banks, and cash items
in process of collection.............................................

72,984

76,827

78,709

95,459

102,405

Dec. 31

112,246

134,613

143,456

157,582

122,647

23,864

26,291

24,998

25,793

24,382

27,593

25,538

27,191

27,190

29,746

29,659

34,303

22,821

24,163

26,279

28,032

32,726

47,344

57,890

64,678

73,228

82,053

89,001

96,066

15,901
3,482
2,946
492

17,064
3,608
3,012
479

19,371
3,551
2,890
467

21,047
3,652
2,890
443

25,936
3,494
2,865
431

40,712
3,533
2,680
419

51,542
3,441
2,520
387

58,693
3,288
2,342
355

67,104
3,394
2,388
342

75,896
3,424
2,386
347

82,422
3,686
2,567
326

88,933
3,875
2,938
320

18,398

19,913

21,262

19,923

18,907

17,392

18,844

20,732

21,355

23,379

25,769

1,890
1,081
507
302

1,868
1,071
463
334

1,794
1,067
429
298

1,740
1,060
370
310

1,678
1,060
340
278

1,615
1,048
301
266

1,585
1,022
257
306

1,533
994
207
332

1,497
972
172
353

1,459
940
139
380

1,417
919
115
383

1,444
903
100
441

Total liabilities and capital accounts......................

65,589

70,720

72,984

76,827

78,709

95,459

102,405

112,246

122,647

134,613

143,456

157,582

58,425

63,470

65,617

69,421

71,162

87,820

94,582

104,116

114,180

125,752

134,282

147,811

28,899

32,401

34,331

36,547

39,266

47,128

53,423

58,346

57,364

64,149

65,508

72,606

14,779
3,601
756
74
9,795
521

15,002
3,821
666
69
10,539
972

15,207
4,010
666
65
10,546
792

15,151
4,170
1,763
59
10,654
1,077

14,890
4,337
1,771
56
10,076
766

15,706
4,394
8,215
13
11,145
1,219

16,897
4,675
7,765
9
10,681
1,132

18,572
4,749
10,068
7
10,705
1,669

20,544
4,812
18,865
6
11,038
1,551

23,363
4,944
19,862
5
12,074
1,355

26,363
5,182
23,583
5
12,401
1,240

29,295
5,595
23,841
5
13,884
2,585

557
14
543

577
11
566

594
10
584

564
10
554

594
11
583

583
10
573

594
25
569

676
45
631

757
84
673

871
121
750

833
65
768

1,099
215
884

6,607
2.892
2,484
1,231

6,673
2,872
2,563
1,238

6,773
2,858
2,603
1,312

6,842
2,849
2,686
1,307

6,953
2,859
2,741
1,353

7,056
2,849
2,801
1,406

7,229
2,841
2,887
1,501

7,454
2,875
3,090
1,489

7,710
2,895
3,190
1,625

7,990
2,912
3,402
1,676

8,341
2,978
3,529
1,834

8,672
3,032
3,785
1,855

13,480

13,438

13,423

13,427

13,403

13,347

13,302

13,274

13,269

13,268

13,282

13,302

Deposits— total...........................................................
Demand deposits of individuals, partnerships, and
corporations.......................................................
Time deposits of individuals, partnerships, and
corporations.......................................................
States and political subdivisions..............................
United States Government......................................
Postal savings............................................................
Interbank...................................................................
Certified and officers’ checks, cash letters of credit, etc.
Miscellaneous liabilities— total..............................
Rediscounts and other borrowed m oney................
All other miscellaneous liabilities............................
Capital accounts—total...........................................
Capital stock, notes, and debentures......................
Surplus.......................................................................
Undivided profits, including all other capital accounts

Number of banks included...............................................




CORPORATION

17,014

Miscellaneous assets— total....................................
Bank premises owned, furniture and fixtures........
Other real estate—direct and indirect....................
All other miscellaneous assets..................................

INSURANCE

Loans, discounts, and overdrafts (including rediscounts).........................................................

70,720

Dec. 30 June 30

DEPOSIT

Securities— to ta l.......................................................
United States Government obligations, direct and
guaranteed ..........................................................
Obligations of States and political subdivisions. ..
Other bonds, notes, and debentures.......................
Corporate stocks.......................................................

65,589

Dec. 31 June 30

FEDERAL

Total assets

Dec. 31 June 30

Table 109.

P e r c e n t a g e D istribu tio n of A ssets a n d L ia b il it ie s of O p er at ing I n su r e d C o m m ercial B a n k s ,
C a l l D a t e s , 1940-1945
1940

1942

1941

1943

1944

1945

Asset or liability item
June 29 Dec. 31 June 30

Cash, balances with other banks, and cash items in
process of collection.............................................

100.0%

100.0%

100.0%

100.0%

100.0%

Dec. 31 June 30

Dec. 31 June 30

100.0%

100.0%

100.0%

100.0%

Dec. 30 June 30 Dec. 31

100.0%

100.0%

100.0%

31.0

28.9

24.9

24.2

22.2

22.0

20.7

21.8

36.5

41.6

49.6

56.6

57.6

59.7

61.0

62.0

61.0

24.3
5.3
4.5
.7

24.1
5.1
4.3
.7

26.5
4.9
4.0
.6

27.3
4.8
3.8
.6

33.1
4.4
3.6
.5

42.7
3.7
2.8
.4

50.3
3.4
2.5
.4

52.3
2.9
2.1
.3

54.7
2.8
1.9
.3

56.4
2.5
1.8
.3

57.4
2.6
1.8
.2

56.4
2.5
1.9
.2

Loans, discounts, and overdrafts (including redis­
counts) ......................................................................

25.9

26.0

27.2

27.6

25.3

19.8

17.0

16.8

16.9

15.9

16.3

16.3

Miscellaneous assets— total...........................................
Bank premises owned, furniture and fixtures...............
Other real estate—direct and indirect...........................
All other miscellaneous assets.........................................

2.9
1.6
.8
.5

2.6
1.4
.7
.5

2.5
1.5
.6
.4

2.3
1.4
.5
.4

2.1
1.3
.4
.4

1.7
1.1
.3
.3

1.5
1.0
.2
.3

1.4
.9
.2
.3

1.2
.8
.1
.3

1.1
.7
.1
.3

1.0
.6
.1
.3

.9
.6

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total liabilities and capital accounts.............................

89.1

89.7

89.9

90.4

90.4

92.0

92.3

92.8

93.1

93.5

93.6

93.8

44.1

45.8

47.1

47.6

49.8

49.3

52.1

52.1

46.7

47.6

45.7

46.1

22.5
5.5
1.2
.1
14.9
.8

21.2
5.4
.9
.1
14.9
1.4

20.8
5.5
.9
.1
14.4
1.1

19.7
5.4
2.3
.1
13.9
1.4

18.9
5.5
2.3
.1
12.8
1.0

16.5
4.6
8.6

16.5
4.6
7.6

16.5
4.2
9.0

16.8
3.9
15.4

17.4
3.7
14.8

18.4
3.6
16.4

18.6
3.6
15.1

11.7
1.3

10.4
1.1

9.5
1.5

9.0
1.3

9.0
1.0

8.6
.9

8.8
1.6

Miscellaneous liabilities—total.....................................
Rediscounts and other borrowed money.......................
All other miscellaneous liabilities...................................

.8

.8

.8

.7

.8

.6

.6

.6

.8

.8

.8

.7

.8

.6

.6

.6

.6
.1
.5

.6
.1
.5

.6
.1
.5

.7
.1
.6

Capita] accounts— total...................................................
Capital stock, notes, and debentures.............................
Surplus...............................................................................
Undivided profits, including all other capital accounts

10.1
4.4
3.8
1.9

9.5
4.1
3.6
1.8

9.3
3.9
3.6
1.8

8.9
3.7
3.5
1.7

8.8
3.6
3.5
1.7

7.4
3.0
2.9
1.5

7.1
2.8
2.8
1.5

6.6
2.6
2.7
1.3

6.3
2.4
2.6
1.3

5.9
2.2
2.5
1.2

5.8
2.1
2.4
1.3

5.5
1.9
2.4
1.2

13,480

13,438

13,423

13,427

13,403

13,347

13,302

13,274

13,269

13,268

13,282

13,302

Number of banks included......................................................
Back figures—See the Annual Report for 1944, p. 130.




BANKS

Deposits— total..................................................................
Demand deposits of individuals, partnerships, and
corporations...............................................................
Time deposits of individuals, partnerships, and
corporations...............................................................
States and political subdivisions.....................................
United States Government.............................................
Postal savings....................................................................
Interbank..........................................................................
Certified and officers' checks, cash letters of credit, etc.

.3

OPERATING

33.6

36.0

O
F

34.3

34.2

LIABILITIES

37.2

34.8

Securities— total................................................................
United States Government obligations, direct and
guaranteed.................................................................
Obligations of States and political subdivisions...........
Other bonds, notes, and debentures..............................
Corporate stocks...............................................................

AD
N

36.4

ASSETS

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

Dec. 31 June 30

T a b le 1 1 0 .

A ssets

and

L ia b il it ie s

of all

O p e r a t in g B a n k s

in

the

U n it e d St a t e s

and

P o s s e s s io n s , D

ecem ber

3 1, 1945

B A N K S G ROUPED BY D IS TR IC T A N D STATE

(Amounts in millions of dollars)
Assets
Number
of banks

Cash and U. S. Govern­
Loans, dis­
Other
due from
ment obli­
counts and
securities overdrafts
banks
gations

Miscel­
laneous
assets

Deposits

Total
Interbank

Govern­
ment1

Other

Miscel­
laneous
liabilities

Total
capital
accounts

101,822

8,595

30,473

1,728

178,203

14,072

30,556

121,846

1,203

10,526

35,40

101,255

8,569

30,368

1,691

177,283

14,059

30,313

121,249

1,167

10,495

Possessions........................

36

185

567

26

105

37

920

13

243

597

36

31

1...........................
2 ...........................
3 ...........................
4 ...........................
5...........................
6 ...........................
7...........................
8 ..........................
9 ...........................
10.........................
11.........................
12.........................

882
1,247
1,711
1,065
945
1,493
1,488
1,504
1,104
1,601
1,061
520

1,730
8,910
3,719
2,065
1,729
2,420
2,292
3,250
1,043
1,812
2,752
3,863

8,465
31,967
11,803
5,081
2,994
4,567
6,945
8,533
2,699
3,160
3,901
11,707

870
2,260
1,508
311
303
419
549
758
164
217
301
935

2,677
11,939
2,776
1,271
975
1,517
1,336
2,178
590
699
1,551
2,964

165
633
243
97
55
58
78
81
29
31
84
174

13,907
55,709
20,049
8,825
6,056
8,981
11,200
14,800
4,525
5,919
8,589
19,643

437
4,928
1,050
652
602
1,463
475
1,600
429
616
1,095
725

1,816
10,263
3,339
1,518
1,135
1,454
1,886
2,907
832
989
1,442
2,975

10,455
35,896
14,112
6,143
4,029
5,625
8,281
9,543
3,033
4,030
5,659
15,040

72
760
82
34
21
25
26
49
12
10
24
88

1,127
3,862
1,466
478
269
414
532
701
219
274
369
815

State
Alabama..............................
Arizona................................
Arkansas.............................
California............................
Colorado..............................

216
11
224
193
142

389
95
268
2,665
347

689
211
388
8,257
635

85
6
44
670
31

206
67
102
2,205
133

13
3
4
138
5

1,382
382
806
13,935
1,151

97
4
68
523
108

267
56
109
1,924
154

950
309
593
10,817
837

4
1
1
72
2

64
12
35
599
50

188
42
21
170
357

380
100
259
568
514

1,824
347
695
1,006
959

205
82
24
80
51

475
73
125
219
414

41
6
18
17
20

2,925
608
1,121
1,890
1,958

39
4
50
194
247

323
86
181
349
373

2,306
461
829
1,262
1,238

16
2
3
5
11

241
55
58
80
89

FDIC District
District
District
District
District
District
District
District
District
District
District
District
District

Connecticut........................
District of Columbia..........
Florida.................................
Georgia................................




CORPORATION

35,585

14,585

INSURANCE

14,621

United States...................

DEPOSIT

United States and pos­
sessions ..............................

FEDERAL

District and State

Liabilities and capital accounts

Idaho...................................
Illinois.................................
Indiana................................
Iowa.....................................
Kansas.................................

46
850
492
654
613

105
2,709
736
541
512

263
7,297
1,816
1,236
899

8
647
137
111
49

50
1,844
356
334
174

1
2 1
69
21
12
8

Kentucky............................
Louisiana.............................
M aine..................................
Maryland............................
Massachusetts....................

386
151
96
179
381

448
529
108
374
1,008

911
802
494
1,424
4,948

56
117
57
74
410

257
237
96
301
1,749

Michigan.............................
Minnesota...........................
Mississippi..........................
Missouri..............................
Montana..............................

439
677
202
590
111

949
671
258
1,153
144

3,245
1,794
340
2,298
323

264
127
87
190
10

Nebraska.............................
Nevada................................
New Hampshire..................
New Jersey..........................
New M exico........................

410
8
107
370
41

383
32
62
807
97

746
102
308
3,371
133

New York............................
North Carolina...................
North Dakota.....................
Ohio.....................................
Oklahoma............................

820
228
150
680
380

7,945
497
117
1,511
494

Oregon.................................
Pennsylvania......................
Rhode Island......................
South Carolina....................
South Dakota.....................

71
1,031
31
145
166

Tennessee............................
Texas...................................
Utah.....................................
Vermont..............................
Virginia...............................

15
594
149
107
74

179
239
9
125
365

251
292
87
372
1,174

1,159
1,096
598
1,558
5,975

4
10
3
7
42

88
69
64
135
650

635
463
136
770
41

34
21
5
27
3

5,127
3,076
826
4,438
521

175
368
64
890
32

859
583
146
755
85

3,848
1,959
579
2,581
382

15
9
1
13
1

230
157
36
199
21

54
7
79
377
8

161
21
100
710
40

7
2
5
72
1

1,351
164
554
5,337
279

190
1
7
42
14

210
28
47
975
43

890
127
447
3,979
213

3
2
1
17

58
6
52
324

28,093
1,013
345
4,554
767

1,792
90
12
401
78

11,102
295
35
1,292
204

523
18
2
67
10

49,455
1,913
511
7,825
1,553

4,873
242
16
338
184

9,096
360
102
1,500
298

31,306
1,216
370
5,552
987

706
10
1
32
3

3,474
85
22
403
81

293
2,208
131
216
111

910
7,249
724
335
237

89
1,107
94
25
15

181
1,484
151
85
51

11
176
16
5
3

1,484
12,224
1,116
666
417

41
712
16
25
13

291
1,839
151
113
62

1,091
8,560
851
500
322

4
50
9
1
1

57
1,063
89
27
19

293
858
57
79
314

551
2,031
141
41
472

970
2,755
333
167
1,066

129
170
16
25
67

388
1,207
92
106
347

18
59
3
6
22

2,056
6,222
585
345
1,974

326
838
51
1
166

339
1,051
87
34
328

1,292
4,041
420
278
1,359

7
13
1
1
8

92
279
26
31
113

124
178
557
56

500
247
607
76

1,431
548
1,884
113

128
31
148
5

364
118
345
27

13
10
23
1

2,436
954
3,007
222

99
44
149
13

448
164
479
29

1,792
681
2,220
169

7
5
6

90
60
153

Possessions....................
Alaska.................................
Hawaii.................................
Puerto R ico........................
Virgin Islands.....................

36
17
4
13
2

185
18
109
57
1

567
30
381
154
2

26
2
15
9

105
7
44
53
1

37
1
4
32

920
58
553
305
A

13
1
3
9

597
49
398
147
3

36

31
3
19
9

243
K
132
105
1

1
1

1 Includes “Deposits of the United States Government” and “Deposits of States and political subdivisions”; excludes “Postal savings deposits”.




1
35

BANKS

1,681
1,706
761
2,197
8,206

OPERATING

9
21
6
24
91

O
F

1
47
5
2
2

LIABILITIES

346
7,969
2,213
1,574
1,147

AN
D

60
2,504
548
403
298

ASSETS

6
1,452
151
148
121

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

r

428
12,566
3,066
2,234
1,642

bo
o

FEDERAL

of

I n s u r e d C o m m e r c ia l B a n k s

Table 112. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1945

CORPORATION




Banks grouped according to amount of deposits

INSURANCE

Table 111. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1939-1945

DEPOSIT

E x a m in e r s ' E v a l u a t io n

of assets which are not included in the bank’s statement of assets or
are carried at nominal values.




121

Appraised value of total assets represents the value of all assets as
determined by examiners and is segregated into two groups: (1) not

Adjusted capital accounts equal book value of total capital ac­
counts plus the value of assets not shown on the books, less examiners’
deductions from total assets, and less liabilities not shown on the books.
The term “ adjusted capital accounts” corresponds to the term “ net
sound capital” used in the Annual Reports of the Corporation for the
years 1939-1943.

banks

Examiners’ deductions from total assets represent the difference
between the appraised value and book value of assets shown on the
books.

Book value of capital accounts refers to the net worth or equity
of the stockholders (including holders of capital notes and debentures)
shown on the books at the time of examination.

commercial

Assets not on the books represent the determinable sound value

such others as have been determined by the examiners.

insured

and premium allowances, at which the assets are carried on the books
of the banks at the time of examination.

Evaluation of Liabilities and Capital
Adjusted liabilities include all liabilities shown on the books and

o
f

Book value of assets is the net value, after deduction of valuation

Appraised value of United States Government obligations exceeds
book value because the excess of redemption value of United States
Savings Bonds over book value is greater than the examiners’ deductions
of unamortized premiums on other United States Government bonds
purchased above par. Appraised value of other securities and of loans
and discounts do not include assets not shown on the books. Assets not
on the books, other than United States Government obligations, are
included in the appraised value of fixed and miscellaneous assets.

evalu atio n

Evaluation of Assets

criticized, which represents the appraised value of assets regarded as
suitable for bank investment; and (2) substandard, which represents the
appraised value of assets believed by the examiners to involve a sub­
stantial degree of risk, or to be otherwise undesirable for bank invest­
ment. For a description of the procedure followed in examiners’ evalua­
tion of assets, see the Annual Report of the Corporation for 1938, pages
61-78.

e x a m in e r s ’

The tables in this section present a summary of the evaluation of
bank assets and liabilities made by examiners of the Federal supervisory
agencies. Since bank examinations are made at various dates during
the year, these tables differ from those in the previous sections, which
are based on reports submitted by the banks for specified dates. These
tables have been prepared from reports of examination available during
the year and do not cover precisely the banks examined in that year.
The figures for 1945 include 12,428 insured commercial banks operating
at the close of the year and 45 banks which ceased operations or were
taken over by other banks during the year. Figures for 876 insured
banks operating at the close of the year were not included in the tabula­
tions: 9 because they were not engaged in deposit banking, and 867
because reports of examination were, for various reasons, not available
for tabulation. For 481 banks the figures are derived from reports of
examination made in the last three months of 1944.

12
2

Table 111.

E x a m i n e r s ’ A p p r a is a l o f A s s e t s , L ia b i l i t i e s , a n d C a p i t a l o f I n s u r e d C o m m e r c ia l B a n k s E x a m i n e d in

1939-1945

(Amounts in thousands of dollars)

Asset, liability, or capital item

1939

1940

18,643,164

23,308,292

U. S. Government obligations— book value......................
Appraised value1.......................................................................

(2
)
(2
)

1944

1945

80,449,956
20,089
145,741
80,324,304

102,021,738
26,346
97,144
101,950,940

118,843,675
20,897
54,193
118,810,379

2’ 030’,622
,

1,71k,226

*” l% 60’ 097
,

*± ,,825,39k
,

138,032,336
20,283
29,354
138,023,265
137
y 82
3
618,883

24,107,119

24,618,882

25,342,868

26,036,187

29,215,660

26,799,729
26,807,855

50,067,210
50,073,639

65,089,147
65,096,303

78,783,904
78,794,810

71,697,320
19,851
174,037
71,543,134

(2
)
(2
)

21,315,369
21,234,173
20,027,268
1,206,905

22,758,101
22,698,345
21,659,k91
1,038,85k

25,759,640
25,722,984
2k,970,kl 2
752,572

6,682,798
6,651,951
6,03k,558
617,393

6,055,350
6,040,897
5,578,7k3
k62,15k

5,805,695
5,800,937
5,k99,037
301,900

6,215,580
6,213,954
5,95k,653
259,301

Loans and discounts— book value........................................
Appraised value.........................................................................
Not criticized..........................................................................
Substandard............................................................................

16,055,860
15,898,191
lk ,669,527
1,228,66k

17,037,342
16,924,352
15,870,628
1,053,72k

19,544,145
19,467,422
18,618,309
8k9,113

20,136,352
20,071,927
19,303,969
767,958

18,290,697
18,251,118
17,710,001
5kl,H 7

19,562,561
19,539,481
19,180,1 kk
359,337

21,436,642
21,424,482
21,161,567
262,915

Fixed and miscellaneous assets—book value....................
Appraised value........................................................................
Not criticized..........................................................................

2,240,032
2,177,196
l,6k2,69k
53k,502

2,081,248
2,034,895
1,57k,979
k59,916

2,286,416
2,245,609
1,816,672
k28,937

2,212,195
2,173,689
l,8kk,81k
328,875

2,265,613
2,242,418
1,985,592
256,826

2,350,085
2,337,471
2,173,31k
16k,157

2,380,550
2,374,359
2,277,692
96,667

Total liabilities— book value..................................................
Total deposits............................................................................
Other liabilities—book value, ..................................................
Liabilities not on the books.....................................................
Adjusted total liabilities...........................................................

51,781,865
50,976,656
805,209
10,436
51,792,301

58,627,148
57,919,547
707,601
12,927
58,640,075

65,012,512
64,218,740
793,772
6,084
65,018,596

73,529,826
72,755,007
774,819
7,362
73,537,188

94,882,516
94,087,113
795,403
4,491
94,887,007

111,242,503
110,177,295
1,065,208
7^563
111,250,066

129,849,891
128,263,849
1.586.042
3,731
129,853,622

Total capital accounts—book value.....................................
Assets not on the books...........................................................
Examiners’ deductions from total assets...............................
Liabilities not on the books.....................................................
Adjusted capital accounts........................................................

6,472,560
38,996
340,697
10,436
6,160,423

6,557,835
36,777
255,876
12,927
6,325,809

6,684,808
19,851
174,037
6,084
6,524,538

6,920,130
20,089
145,741
7,362
6,787,116

7,139,222
26,346
97,144
4,491
7,063,933

7,601,172
20,897
54,193
7,563
7,560,313

8,182,445
20,283
29,354
3,731
8,169,643




CORPORATION

Other securities—book value.................................................
Appraised value.........................................................................
Not criticized..........................................................................
Substandard............................................................................

INSURANCE

(2
)
(2
)

1943

DEPOSIT

2,552,k9k

Cash and due from banks.......................................................

Examiners’ deductions.............................................................

1942

FEDERAL

65,184,983
36,777
255,876
64,965,884

Not criticized..........................................................................
Substandard............................................................................

58,254,425
38,996
340,697
57,952,724
O *,V *,,U O
J O iJ
2,970,071

Total assets— book value.........................................................

1941

$10.63
95.18

$9.74
96.46

$9.12
97.60

$8.45
98.08

$6.93
98.95

$6.36
99.46

$5.92
99.84

Substandard assets per $100 of—
Appraised value of total assets...............................................
Adjusted capital accounts.......................................................

5.12
48.21

3.93
40.35

2.84
31.12

2.13
25.26

1.24
17.84

.69
10.92

.45
7.58

Substandard loans and discounts per $100 of—
Appraised value of loans and discounts.................................

7.73

6.23

4.36

3.83

2.96

1.84

1.23

Number of banks..........................................................................

13,505

13,437

13,308

13,303

13,207

12,983

12,473

O
F
INSURED
COMMERCIAL
BANKS




EVALUATION

\ Appraised value is 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.
* Prior to 1942 U. S. Government obligations not available separately, included under other securities.

EXAMINERS

Adjusted capital accounts per $100 of—
Appraised value of total assets...............................................
Book capital..............................................................................

Table 112.

E x a m in e r s ' A p p r aisa l o f A ssets , L ia b il it ie s , a n d C a p it a l of I n su r e d C o m m ercial B a n k s E x a m in e d in

1945

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of—
All
banks

362,768
254
195
362,827
359,128
3,699

$500,000
to
$1,000,000

1,805,705
1,307
854
1,806,158
1,792,86k
13,29k

$1,000,000
to
$2,000,000

$2,000,000
to
$5,000,000

$5,000,000
to
$10,000,000

$10,000,000 $50,000,000 More than
to
to
$100,000,000
$50,000,000 $100,000,000

(Aimounts in thoiisands of dollairs)
11,385,705
10,005,402
21,665,178
5,161,381
2,672
3,155
1,846
3,296
4,556
3,235
6,045
1,760
11,384,304
10,004,013
21,662,429
5,162,293
5,130,703
11,317,330
9,9k2,987
21,5k7,263
61,026
115,166
31,590
66,97k

9,431,275
696
1,971
9,430,000
9,389,875
k0,125

78,214,922
7,057
10,738
78,211,241
77,92k,232
287,009

131,941

555,439

1,460,362

2,898,915

2,269,833

4,703,003

2,108,784

15,087,383

78,783,904
78,794,810

146,085
146,293

872,479
873,556

2,642,377
2,644,516

6,151,628
6,153,888

5,762,536
5,763,438

12,795,905
12,796,529

5,605,132
5,605,163

44,807,762
44,811,427

Other securities— book value.........................
Appraised value.................................................
Not criticized...................................................
Substandard....................................................

6,215,580
6,213,954
5,95k,653
259,301

11,943
11,929
10,992
937

70,465
70,426
67,620
2,806

250,836
250,725
2k2,65k
8,071

664,631
664,381
6k3,762
20,619

614,053
613,852
593,379
20,k73

1,160,008
1,159,679
1,120,92k
38,755

372,500
372,174
360,593
11,581

3,071,144
3,070,788
2,91k,729
156,059

Loans and discounts— book value.................
Appraised value.................................................
Not criticized...................................................
Substandard....................................................

21,436,642
21,424,482
21,161,567
262,915

69,542
69,424
66,938
2,1+86

292,578
292,001
282.301
9,700

762,949
761,749
7k0.5U
21,205

1,556,382
1,553,957
1.515.105
38,552

1,241,996
1,240,263
1.209.kk3
30,820

2,704,973
2,701,864
2.6k9,117
52,7k7

1,206,036
1,205,043
1.187.020
18,023

13,602,186
13,600,181
13.510,799
89,382

Fixed and miscellaneous assets—book value
Appraised value.................................................
Not criticized...................................................
Substandard....................................................

2,380,550
2,374,359
2,277,692
96,667

3,257
3,240
2,96k
276

14,744
14,736
13,9k8
788

44,857
44,941
k2,627
2,31k

114,149
113,163
105,360
7,803

116,984
116,627
106,89k
9,733

301,289
301,354
277,690
23,66k

138,823
138,836
128,315
10,521

1,646,447
1,641,462
1,599,89k
kl ,568

Total liabilities—book value........................... 129,849,891
Total deposits.................................................... 128,263,849
1,586,042
Other liabilities—book value............................
3,731
Liabilities not on the books..............................
Adjusted total liabilities................................... 129,853,622

328,111
327,154
957
46
328,157

1,672,027
1,669,170
2,857
151
1,672,178

4,821,734
4,813,335
8,399
196
4,821,930

10,667,625
10,644,576
23,049
245
10,667,870

9,395,728
9,365,693
30,035
398
9,396,126

20,404,573
20,280,789
123,784
269
20,404,842

8,942,163
8,878,031
64,132
1,273
8,943,436

73,617,930
72,285,101
1,332,829
1,153
73,619,083




CORPORATION

29,215,660

U. S. Government obligations— book value.
Appraised value1................................................

INSURANCE

Cash and due from banks...............................

DEPOSIT

Total assets— book value................................. 138,032,336
Assets not on the books...................................
20,283
Examiners’ deductions.....................................
29,354
Appraised value................................................. 138,023,265
Not criticized................................................... 137 ,k0k,382
Substandard....................................................
618,883

$500,000
or less

FEDERAL

Asset, liability, or capital item

Total capital accounts— book value.............

133,678
1,307
854
151
133,980

339,647
2,672
1,760
196
340,363

718,080
3,155
4,556
245
716,434

609,674
1,846
3,235
398
607,887

1,260,605
3,296
6,045
269
1,257,587

489,112
696
1,971
1,273
486,564

4,596,992
7,057
10,738
1,153
4,592,158

$5.92
99.84

$9.56
100.04

$7.42
100.23

$6.59
100.21

$6.29
99.77

$6.08
99.71

$5.81
99.76

$5.16
99.48

$5.87
99.89

.45
7.58

1.02
10.67

.74
9.92

.61
9.28

.59
9.35

.61
10.04

.53
9.16

.43
8.25

.37
6.25

Appraised value of loans and discounts.........

1.23

3.58

3.32

2.78

2.48

2.48

1.95

1.50

.66

Number of banks................................................

12,473

874

2,219

3,311

3,400

1,353

1,024

126

166

Adjusted capital accounts per $100 of—

Appraised value of total assets......................
Book capital....................................................

Substandard assets per $100 of—

Appraised value of total assets......................
Adjusted capital accounts..............................

Substandard loans
$100 of—

and

discounts

per

INSURED
COMMERCIAL
BANKS




O
F

ra*se<^ va^ is 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 un.
ue
amortized premiums on U. S. Government obligations purchased above par.
J5acfc figures See the following Annual Reports: 1944, pp. 136-137; 1943, p. 82; 1942, p. 82; 1941, pp. 133, 141, and 143; 1940, pp. 160, 169, and 171; 1939, pp. 151, 159,
and it>x«

EVALUATION

34,657
254
195
46
34,670

EXAMINERS

8,182,445
20,283
29,354
3,731
8,169,643

Assets not on the books..................................
Examiners’ deductions from total assets........
Liabilities not on the books............................
Adjusted capital accounts..............................

E arn in g s , E xpenses ,

and

D ividends

of

I nsured B anks

Table 113. Earnings, expenses, and dividends of insured commercial banks, 1934, 1941-1945
Table 114. Ratios of earnings, expenses, and dividends of insured commercial banks, 1934,
1941-1945
Table 115. Earnings, expenses, and dividends of insured banks, 1945
By class of bank

Table 116. Ratios of earnings, expenses, and dividends of insured banks, 1945
By class of bank

Table 117. Earnings, expenses, and dividends of insured commercial banks operating
throughout 1945
Banks grouped according to amount of deposits

Table 118. Ratios of earnings, expenses, and dividends of insured commercial banks operating
throughout 1945




Banks grouped according to amount of deposits

of December 31, 1945, and for other banks, are averages of beginning,
middle, and end of the year.
Table 113 contains figures for income taxes for the years" 1942-1943,
not previously available for publication; and estimates of such taxes
for the years 1934 and 1941. Table 113 also includes an estimate for the
year 1934, which separates recoveries on securities from profits on
securities sold.

Averages of assets and liabilities shown in Tables 113, 114, 115, and
116 are based upon figures at the beginning, middle, and end of each
year, as reported by banks operating on those dates. Consequently, the
asset and liability averages are not strictly comparable with the earnings
data, but the differences are not large enough to affect the totals sig­
nificantly. Some further incomparability is also introduced into the
data by class of bank by shifts between those classes during the year.

State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.

O
F
INSURED
BANKS




National banks, and State banks not members of the Federal Reserve
System in the District of Columbia: Office of the Comptroller of the
Currency,

DIVIDENDS

Assets and liabilities shown in Table 117, and utilized for computation
of ratios shown in Table 118, are for the identical banks to which the
earnings data pertain. For national banks, assets and liabilities are as

Sources of data:

EXPENSES, A D
N

Earnings data are included for all insured banks operating at the
end of the respective years, unless indicated otherwise. Earnings for
national banks reporting for the first half of the respective year, only,
are also included.

EARNINGS,

Reports of earnings, expenses, and dividends are submitted to the
Federal supervisory agencies on either a cash or an accrual basis.

fc
O

00

Table 113.

E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s ,

1934, 1941-1945

(Amounts in thousands of dollars)

1 SIR ddQ

1 79 0 Qfll

1 QSQ 481

Current operating expenses—to ta l..................................................................
Salaries—officers................................................................... ..............................
Salaries and wages—employees..........................................................................
Fees paid to directors and members of executive, discount, and other
committees....................................................................................................
Interest on time and savings deposits...............................................................
Interest and discount on borrowed m oney.......................................................
Taxes other than on net income........................................................................
Recurring depreciation on banking house, furniture and fixtures.................
Other current operating expenses......................................................................

(2)1,114,167

1945

2,482,278

550,092

509,175

610,298

861,412

1,090,253

690,601

847,832

41,139
78,190
123,818

0)
233,196

804,717
12,084
84,309
55,148
100,652
123,484

692,305
13,513
95,382
67,533
104,710
124,676

680,708
17,320
107,375
78,485
112,486
128,278

1,132,977
167,198
707,738
18,860
109,789
90,617
120,317
134,782

(2)1,215,766
211,311
302,627

1,222,157
219,388
333,171

1,256,025
225,142
356,958

1,356,680
240,354
386,346

1,522,778
266,018
424,881

13,151
190 256
""3 7 4
(2)103,371
064,414
330,262

11,541
174,674
336
97,085
39,917
346,045

11,775
163,900
502
99,915
40,008
357,825

12,907

302,603
7,324
(2)74,043
(3)47,747
280,412

97,307
41,845
390,036

14,610
233,321
2,448
98,683
40,329
442,488

(2)404,282

(2)514,135

568,535

703,456

858,225

959,500

Recoveries and profits—t o t a l............................................................................
Recoveries on securities......................................................................................
Profits on securities sold or redeemed...............................................................
Recoveries on loans..............................................................................................
All other................................................................................................................

292,027
(4)57,994
0)148,345
52,874
32,814

324,453
73,589
145,189
70,947
34,728

222,775
55,947
66,457
68,546
31,825

353,015
91,891
103,143
85,664
72,317

361,726
92,778
129,834
84,224
54,890

509,329
122,364
266,764
67,014
53,187

Losses and charge-offs—to ta l............................................................................
On securities.........................................................................................................
On loans................................................................................................................
All other................................................................................................................

1,033,278
391,547
552,857
88,874

333,966
161,073
103,868
69,025

271,118
120,614
80,647
69,857

290,645
116,383
75,223
99,039

265,881
110,439
70,090
85,352

264,122
132,870
55,901
75,351

Net current operating earnings....... . s s s s




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

0)34,609

402,038

139,698

i U jHIQ
<U
A?£ IH
1,112

CORPORATION

Current
—to tu i...........................................
.. . .
Interest and dividends on:
United States Government obligations.........................................................
Other 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 and exchange charges
Trust department................................................................................................
Other current operating earnings......................................................................

1944

INSURANCE

1943

DEPOSIT

1941

FEDERAL

1934

Earnings or expense item

1,204,707

202,821
187,032
15,789

298,795
277,538
21,257

Net profits after taxes.........................................................................................

-339,969

454,622

440,651

637,961

751,249

905,912

Dividends and interest on capital—total.....................................................
Dividends declared on preferred stock and interest paid on capital notes
and debentures............................................................................................
Cash dividends declared on common stock.....................................................

187,769

253,396

227,608

233,490

253,193

274,438

17,796
169,973

17,563
235,833

14,523
213,085

14,324
219,166

13,645
239,548

11,769
262,669

Net additions to capital from profits............................................................

-527,738

201,226

213,043

404,471

498,056

631,474

Average assets and liabilities6
Assets— total.........................................................................................................
Cash and due from banks..................................................................................
U .S . Government obligations.................................................... -.....................
Other securities...................................................................................................
Loans and discounts...........................................................................................
All other assets....................................................................................................

44,941,293
10,272,448
11,075,592
6,259,203
14,901,832
2,432,218

73,510,130
25,693,758
19,160,565
6,997,406
19,857,387
1,801,014

83,666,451
25,922,701
29,231,826
6,802,771
20,030,625
1,678,528

103,370,189
26,774,094
50,315,698
6,321,794
18,380,838
1,577,765

123,168,863
28,042,727
67,231,161
6,088,482
20,310,112
1,496,381

145,217,438
31,236,090
82,417,236
6,623,089
23,500,772
1,440,251

Liabilities and capital— total...........................................................................
Total deposits......................................................................................................
Demand deposits...............................................................................................
Time and savings deposits...............................................................................
Borrowings and other liabilities........................................................................
Total capital accounts........................................................................................

44,941,293
37,424,125
24,823,179
12,600,946
1,319,221
6,197,947

73,510,130
66,168,797
50,827,462
15,841,335
578,370
6,762,963

83,666,451
76,134,514
60,245,967
15,888,547
580,544
6,951,393

103,370,189
95,506,221
77,878,606
17,627,615
617,535
7,246,433

123,168,863
114,682,390
93,267,114
21,415,276
768,280
7,718,193

145,217,438
135,948,387
108,968,917
26,979,470
934,381
8,334,670

57,067
211,115

54,925
216,473

55,309
225,647

56,494
229,377

59,119
245,275

13,427

13,347

13,274

13,268

13,302

Number of active officers, December 3 1 .............................................................
Number of other employees, December 31..........................................................
Number of banks, December 317..........................................................................

0)
0)
14,137




BANKS

1 Not available separately.
* Differs from reported figures as a result of the estimate made of taxes on net income. See footnote 5.
* In 1934; and for banks not submitting reports to FDIC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
In 1941 for banks submitting reports to FDIC, consists of regular depreciation allowances on banking house, furniture and fixtures plus other expenses of occupancy and main­
tenance of banking quarters.
« Estimated; profits on securities sold were not reported separately from recoveries on securities by banks not submitting reports to the FDIC.
6 Estimated; based upon Bureau of Internal Revenue figures of income taxes paid by national banks for 1934, and paid by ail banks and trust companies for 1941. Banks
submitting reports to the FDIC have reported income taxes separately since 1936.
6 Averages of figures reported at beginning, middle, and end of year.
7 In 1934 excludes 1 and in 1941 3 trust companies not engaged in deposit banking, which submit reports to FDIC.
N o t e : Minus (-) indicates net loss.
Back figures— See the Annual Report for 1941, pages 158-159.

INSURED

954,070

127,865
114,316
13,549

O
F

765,826

79,541
0)
0)

DIVIDENDS

520,192

(5)50,000
0)
0)

AN
D

(2)504,622

(5
)3,000
0)
(*)

EXPENSES.

(2
)-336,969

Taxes on net income— total.............................................................................
Federal.................................................................................................................
State.....................................................................................................................

EARNINGS,

Net profits before income taxes.......................................................................

T a b le 1 1 4 .

R a t io s

op

E a r n in g s , E x p e n s e s ,

and

Earnings or expense item

1934

of

I n s u r e d C o m m e r c ia l B a n k s , 1 9 3 4 , 1 9 4 1 -1 9 4 5

1941

$100.00
36.23
45.48
2.28
2.71 }
13.30

$100.00

1942

1943

$100.00

1944

$100.00

1945

$100.00

29.43
49.01

34.08
45.61
4.71
3.C8
12.52

43.96
36.02
4.87
3.45
11.70

/
49.22 \
31.52
4.85
3.54
10.87

/
8.08 \
13.48

$100.00
45.64
6.74
29.27
4.42
3.65
10.28

DEPOSIT

Interest and dividends on:
United States Government obligations......................................................
Other securities........................................................................................... }
Income on loans..............................................................................................
Service charges on deposit accounts..............................................................
Other service charges, commissions, fees, and collection and exchange charges
Other current operating earnings...................................................................

iv id e n d s

FEDERAL

Amounts per $100 of current operating earnings:
Current operating earnings— total.................................................................

D

(i)73.38
26.48
19.93
0)4.88
(2)3.14
18.95

0)70.28
30.47
11.00
(i)5.98
(2)3.72
19.11

68.25
31.50
9.76
5.42
2.23
19.34

64.10
30.31
8.36
5.10
2.04
18.29

61.25
28.88
8.43
4.39
1.89
17.66

61.35
28.42
9.40
3.98
1.62
17.93

Net current operating earnings.......................................................................

(i)26.62

(i)29.72

31.75

35.90

38.75

38.65

3.38
(i'i2.48
0).90
.65
2.30
-.76

2.35
m i .65
0) .70
.44
.45
0) .69
.62

2.14
1.46
.68
.26
.32
.62
.53

1.90
1.22
.68
.34
.28
.74
.62

1.80
1.10
.70
.29
.22
.77
.61

1.71
1.05
.66
.35
.18
.83
.62

0)6.52
4.71
16.67
(i)-5.44
(4
).05
-5.49
3.03
-8.52

0)7.60
4.80
4.93
0)7.47
(4
).75
6.72
3.75
2.97

8.18
3.20
3.90
7.48
1.14
6.34
3.28
3.06

9.71
4.87
4.01
10.57
1.75
8.82
3.23
5.59

11.12
4.69
3.45
12.36
2.63
9.73
3.28
6.45

11.51
6.11
3.16
14.46
3.59
10.87
3.29
7.58

Amounts per $100 of total assets*

Current operating earnings—total....................................................................
Current operating expenses—total....................................................................
Net current operating earnings..........................................................................
Recoveries and profits—total............................................................................
Losses and charge-offs—total............................................................................
Net profits before income taxes.........................................................................
Net profits after income taxes...........................................................................

C )-75

Amounts per $100 of total capital accounts1

Net current operating earnings..........................................................................
Recoveries and profits—total............................................................................
Losses and charge-offs—total............................................................................
Net profits before income taxes.........................................................................
Taxes on net income..........................................................................................
Net profits after income taxes...........................................................................

Cash dividends declared..........................................................................................

Net additions to capital from profits................................................................




CORPORATION

Salaries, wages and fees.................................................................................
Interest on time and savings deposits...........................................................
Taxes other than on net income....................................................................
Recurring depreciation on banking house, furniture and fixtures................
Other current operating expenses..................................................................

INSURANCE

Current operating expenses—total.................................................................

4.63
3.17
.14
2.40

4.27
1.95
(5
)
1.20

4.08
1.69
.14
1.10

3.85
1.52
.12
.93

3.44
1.49
.12
.87

3.09
1.46
.10
.87

Assets and liabilities per $100 of total assets3
Assets— total...................... ................................................
Cash and due from banks................................................
U. S. Government obligations........................................
Other securities.................................................................
Loans and discounts.........................................................
All other assets..................................................................

100.00
22.86
24.64
13.93
33.16
5.41

100.00
34.95
26.07
9.52
27.01
2.45

100.00
30.98
34.94
8.13
23.94
2.01

100.00
25.91
48.70
6.11
17.75
1.53

100.00
22.77
54.59
4.94
16.49
1.21

100.00
21.51
56.76
4.56
16.18
.99

Liabilities and capital— total.........................................
Total deposits....................................................................
Demand deposits............................................................
Time and savings deposits.............................................
Borrowings and other liabilities......................................
Total capital accounts.....................................................

100.00
83.27
55.23
28.01*
2.94
13.79

100.00
90.01
6846
21.55
.79
9.20

100.00
91.00
72.01
18.99
.69
8.31

100.00
92.39
75.39
17.00
.60
7.01

100.00
93.11
75.72
17.89
.62
6.27

100.00
93.62
75.0k
18.58
.64
5.74

EXPENSES,

Number of banks, December 316.......................................

14,137

13,427

13,347

13,274

13,268

13,302

AD
N

3 Asset and liability items are averages of figures reported at beginning, middle, and end of year.

N

o te:

Minus (-) indicates net loss.

nies tor 1941'

INSURED
BANKS




ba” ks and trast ™

O
F

s u b m itti™ r t^ r th r F D Ic T a a e
vU
19*36. ^
1934’ “ d Paid by
5 Not available.
®In 1934 excludes 1 and in 1941, 3 trust companies not engaged in deposit banking, which submit reports to FDIC.

DIVIDENDS

i Differs from reported figures as a result of the estimate made of taxes on net income. See footnote 4.
1941for hanks
” 1941 consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures. In
o f banldng^uarterT
reP°rts to FDIC, consists of regular depreciation allowances on banking house, furniture and fixtures plus other expenses of occupancy and maintenance

EARNINGS,

Special ratios3
Income on loans per $100 of loans.....................................
Income on securities per $100 of securities.......................
Service charges per $100 of demand deposits...................
Interest paid per $100 of time and savings deposits........

Table 115.

E a r n i n g s , E x p e n s e s , a n d D iv i d e n d s o f I n s u r e d B a n k s ,

1945

BY CLASS OF BANK
(Amounts in thousands of dollars)
Insured commercial banks

Insured commercial banks

Total

National

State

Not
members
F. R.
System

Operating
throughout
the year

Operating
less than
full year2

380,435

322,795

2,476,062

6,216

347,892
46,550
198,421
6,879
26,570

136,345
27,872
136,069
2,475
22,290

135,627
24,652
142,628
(3
)

1,131,644
167,088
706,840
18,843
109,635

1,333
110
898
17
154

90,617
120,317
134,782

42,175
40,757
76,111

21,651
71,376
38,262

26,791
8,184
20,409

1,033
18,855

90,435
117,424
134,153

182
2,893
629

Current operating expenses— to ta l.....................................
Salaries—officers.....................................................................
Salaries and wages— employees.............................................
Fees paid to directors and members of executive, discount,
and other committees.....................................................
Interest on time and savings deposits..................................
Interest and discount on borrowed money
Taxes other than on net income...........................................
Recurring depreciation on banking house, furniture and

1,522,778
266,018
424,881

813,048
134,862
228,445

454,315
73,338
142,902

255,415
57,818
53,534

221,055
10,567
22,179

1,517,841
264,839
423,595

4,937
1,179
1,286

14,610
233,321
2,448
98,683
____
4u,azy
442,488

7,189
123,239
1,325
54,785

3,566
59,482
961
28,682

3,855
50,600
162
15,216

855
<143,350
8,410

14,562
233,085
2,442
98,497

23,37 4
239,829

10,625
134,758

6,329
67,901

&,G43
33,045

440,575

48
236
6
186
oo
1,913

Net current operating earnings...........................................

959,500

531,194

303,286

125,020

101,740

958,221

1,279

Recoveries and profits— t o ta l...............................................
Recoveries on securities.........................................................
Profits on securities sold or redeemed..................................
Recoveries on loans.................................................................
All other...................................................................................

509,329
122,364
266,764
67,014
53,187

260,030
54,135
141,767
37,359
26,769

193,698
59,080
97,050
18,557
19,011

55,601
9,149
27,947
11,098
7,407 }

181,982
47,560
79,389

508,516
122,341
266,137
66,936
53,102

813
23
627
78
85

Losses and charge-offs—to ta l..............................................
On securities............................................................................
On loans...................................................................................
All other...................................................................................

264,122
132,870
55,901
75,351

131,627
74,533
29,629
27,465

98,225
43,251
16,912
38,062

34,270
15,086
9,360
9,824 }

135,783
36,635

263,617
132,624
55,878
75,115

505
246
23
236

Trust department
.........................................
Other current operating earnings..........................................




___

/
6
55,033 \

/
699,148 \

CORPORATION

757,601

648,740
92,776
373,248
9,506
60,929

INSURANCE

1,344,242

1,132,977
167,198
707,738
18,860
109,789

DEPOSIT

2,482,278

C urrent operating earnings— to ta l.....................................
Interest and dividends on:
United States Government obligations........................
Other 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

FEDERAL

Members F . R. System

Earnings or expense item

Insured
mutual
savings
banks1

398,759

146,351

147,939

1,203,120

1,587

170,255
159,063
11,192

99,807
91,218
8,589

28,733
27,257
1,476

2,034
2,034

298,243
277,047
21,196

552
491
61

Net profits after taxes............................................................

905,912

489,342

298,952

117,618

145,905

904,877

1,035

Dividends and interest on capital—total.........................
Dividends declared on preferred stock and interest paid
on capital notes and debentures...................................
Cash dividends declared on common stock.........................

274,438

155,292

90,642

28,504

271

273,775

663

11,769
262,669

4,127
151,165

4,135
86,507

3,507
24,997

271

11,768
262,007

1
662

Net additions to capital from profits................................

631,474

334,050

208,310

89,114

145,634

631,102

372

145,217,438
31,236,090
82,417,236
6,623,089
23,500,772
1,440,251

82,792,890
18,409,160
47,197,572
3,810,152
12,591,299
784,707

45,007,835
8,746,115
25,881,394
1,813,953
8,086,138
480,235

17,416,713
4,080,815
9,338,270
998,984
2,823,335
175,309

10,636,400
416,762
6,345,344
605,362
3,093,428
175,504

145,217,438
135,948,387
108,968,917
26,979,1,70
934,381
8,334,670

82,792,890
77,776,908
63,167,619
1U,609,289
559,291
4,456,691

45,007,835
41,864,731
34,687,181
7,177,550
323,469
2,819,635

17,416,713
16,306,748
11,114,117
5,192,631
51,621
1,058,344

10,636,400
9,648,308

59,119
245,275

27,744
131,297

12,149
76,147

19,226
37,831

1,337
10,852

58,729
244,231

390
1,044

13,302

5,017

1,864

6,421

192

13,171

131

Average assets and liabilities7

Number of active officers, December 31 .................................
Number of other employees, December 31.............................

9,648,308
27,085
961,007

INSURED
BANKS




O
F

1 Includes three mutual savings banks, members of the Federal Reserve System.
Includes banks operating less than full year and trust companies not engaged in deposit banking.
* Included with interest and discount on loans.
* Interest and dividends paid depositors. As a result of the mutual character of these banks, interest and dividends paid depositors is, in some respects, comparable to a
distribution of profits.
6 Includes reductions m valuation allowances on securities.
* Includes additions to valuation allowances on securities.
7 Averages of figures reported at beginning, middle, and end of year.
Back figures—See Table 113, page 128. See also the Annual Report for 1944, pp. 140-141, and earlier reports.
2

DIVIDENDS

Borrowings and other liabilities............................................

AD
N

Liabilities and capital—total...............................................

(<
)

EXPENSES,

659,597

298,795
277,538
21,257

EARNINGS,

1,204,707

T a b le 1 1 6 .

R a t i o s o f E a r n i n g s , E x p e n s e s , a n d D i v i d e n d s o f I n s u r e d B a n k s , 19 4 5

00

BY CLASS OF BANK
Insured commercial banks
Earnings or expense item

Members F. R. System
National

$100.00

$100.00

$100.00

48.26
6.90
28.48
4.53
3.14
8.69

45.92
6.14
27.10
3.51
2.86
14.47

35.84
7.33
36.42
5.86
7.04
7.51

42.02
7.64
44.18

61.35
28.42
9.40
3.98
1.62
17.93

60.48
27.56
9.17
4.07
1.74
17.94

59.97
29.01
7.85
3.79
1.40
17.92

67.14
30.28
13.30
4.00
1.67
17.89

68.48
10.41
244.41
2.60
.82
10.24

Net current operating earnings..................................................................................................

38.65

39.52

40.03

32.86

31.52

Amounts per $100 of total assets’
Current operating earnings— total...................................................................................................
Current operating expenses— total...................................................................................................
Net current operating earnings.........................................................................................................
Recoveries and profits— totai...........................................................................................................
Losses and charge-offs— total............................................................................................................
Net profits before income taxes........................................................................................................
Net profits after income taxes..........................................................................................................

1.71
1.05
.66
°5
:i8
.83
.62

1.62
.98
.64
Q1
!l6
.79
.59

1.68
1.01
.67
A3
.22
.88
.66

2.18
1.46
.72
.20
.84
.68

3.03
4
2.08
.95
1.71
1.27
4
1.39
4
1.37

Amounts per $100 of total capital accounts*
Net current operating earnings.........................................................................................................
Recoveries and profits—total............................................................................................................
Losses and charge-offs—total...........................................................................................................
Net profits before income taxes........................................................................................................
Taxes on net income..........................................................................................................................
Net profits after income taxes...........................................................................................................
Cash dividends declared....................................................................................................................
Net additions to capital from profits...............................................................................................

11.51
6.11
3.17
14.45
3.58
10.87
3.29
7.58

11.92
5.83
2.95
14.80
3.82
10.98
3.48
7.50

10.75
6.87
3.48
14.14
3.54
10.60
3.21
7.39

11.81
5.26
3.24
13.83
2.72
11.11
2.69
8.42

<10.58
18.94
14.13
415.39
.21
*15.18
4.03
15.15

Current operating expenses—total............................................................................................
Salaries, wages, and fees.................................................................................................................
Interest on time and savings deposits.........................................................................................
Taxes other than on net income...................................................................................................
Recurring depreciation on banking house, furniture and fixtures............................................
Other current operating expenses.................................................................................................




.

.32
5.84

CORPORAIION

$100.00

45.64
6.74
29.27
4.42
3.65
10.28

INSURANCE

$100.00

DEPOSIT

Amounts per $100 of current operating earnings
Current operating earnings— total............................................................................................
Interest and dividends on:
United States Government obligations....................................................................................
Other securities...........................................................................................................................
Income on loans..............................................................................................................................
Service charges on deposit accounts.............................................................................................
Other service charges, commissions, fees and collection and exchange charges......................
Other current operating earnings.................................................................................................

State

Insured
mutual
savings
banks1

FEDERAL

Total

Not
members
F. R.
System

Special ratios*
Income on loans per $100 of loans.....................................
Income on securities per $100 of securities.......................
Service charges per $100 of demand deposits...................
Interest paid per $100 of time and savings deposits........

3.09
1.46
.10
.87

3.04
1.45
.10
.84

2.54
1.42
.08
.83

4.91
1.59
.20
.97

*1.49

100.00

100.00

21.51
56.76
4.56
16.18
.99

100.00

22.23
57.01
4.60
15.21
.95

19.43
57.50
4.03
17.97
1.07

100.00

100.00

Liabilities and capital— total.........................................
Total deposits....................................................................
Demand deposits............................................................
Time and savings deposits.............................................
Borrowings and other liabilities......................................
Total capital accounts.....................................................

100.00

100.00

100.00

93.94
76.29
17.65
.68
5.38

93.02
77.07
15.95
.72
6.26

Number of banks, December 31

13,302

5,017

1,864

100.00

93.62
63.81
29.81
.30
6.08

100.00

90.71
90.71
.25
9.04
192

O
F
INSURED
BANKS




DIVIDENDS

1 Includes 3 mutual savings banks, members of the Federal Reserve System.
2 Interest anddi vidends paid depositors. As a result of the mutual character of these banks, interest and dividends paid depositors is, in some respects, comparable to a
distribution of profits.
8 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
4 Interest and dividends paid depositors of mutual savings banks are shown as a current operating expense. See footnote 2.
Back figures—See Table 114, page 130. See also Annual Report for 1944, pages 142-143 and earlier reports.

AD
N

6,421

3.92
59.66
5.69
29.08
1.65

EXPENSES,

93.62
75 M
18.58
.64
5.74

23.43
53.62
5.73
16.21
1.01

EARNINGS,

Assets and liabilities per $100 of total assets*
Assets—total.......................................................................
Cash and due from banks................................................
U. S. Government obligations.........................................
Other securities.................................................................
Loans and discounts.........................................................
All other assets.................................................................

4.61
2.31

CO

O
i

T a b le 1 1 7 .

E a r n i n g s , E x p e n s e s , a n d D i v i d e n d s o f I n s u r e d C o m m e r c ia l B a n k s O p e r a t i n g T h r o u g h o u t 1 9 4 5

00
05

B A N K S G ROUPED ACCORDING TO A M O U N T OF D EPO SITS

Banks with deposits of—2

2,476,062

$1,000,000
to
$2,000,000

$2,000,000
to
$5,000,000

6,027

33,370

100,240

237,578

216,866

450,646

173,421

1,257,914

1,131,644
167,088
706,840
18,843
109,635

1,473
237
2,910
114
315

10,816
1,731
14,221
253
2,022

35,872
6,489
39,078
436
6,445

93,877
18,948
83,380
1,060
15,604

92,431
17,591
69,237
839
14,774

202,090
33,223
125,267
1,739
28,711

79,244
9,427
45,708
917
8,493

615,841
79,442
327,039
13,485
33,271

90,435
117,424
134,153

708
47
223

3,449
20
858

8,734
104
3,082

15,136
1,226
8,347

9,955
2,770
9,269

16,785
16,521
26,310

4,953
9,053
15,626

30,715
87,683
70,438

Current operating expenses—total.............................
Salaries— officers.............................................................
Salaries and wages—employees.....................................
Fees paid to directors and members of executive,
discount, and other committees............................
Interest on time and savings deposits..........................
Interest and discount on borrowed money..................
Taxes other than on net income...................................
Recurring depreciation on banking house, furniture
and fixtures..............................................................
Other current operating expenses.................................

1,517,841
264,839
423,595

4,255
1,692
475

22,290
8,133
2,643

65,593
20,814
9,337

157,037
39,908
28,001

146,132
29,815
31,761

304,303
50,565
79,834

113,485
17,580
33,941

704,746
96,332
237,603

14,562
233,085
2,442
98,497

82
454
7
299

484
3,306
10
1,354

1,442
11,670
21
4,085

3,208
31,204
43
10,541

2,354
29,967
80
9,590

3,338
56,772
279
19,730

820
15,829
244
7,365

2,834
83,883
1,758
45,533

40,246
440,575

114
1,132

582
5,778

1,761
16,463

4,697
39,435

4,571
37,994

9,114
84,671

3,470
34,236

15,937
220,866

Net current operating earnings...................................

958,221

1,772

11,080

34,647

80,541

70,734

146,343

59,936

553,168

Recoveries and profits— total.......................................
Recoveries on securities..................................................
Profits on securities sold or redeemed..........., , , , , , , ,
Recoveries on loans.........................................................
All other...........................................................................

508,516
122,341
266,137
66,936
53,102

565
91
178
193
103

3,115
555
1,005
1,079
476

10,141
1,916
3,828
2,950
1,447

31,654
5,770
15,508
6,470
3,906

37,876
6,799
20,228
6,241
4,608

97,622
14,701
57,913
13,596
11,412

39,164
4,905
26,577
4,242
3,440

288,379
87,604
140,900
32,165
27,710

Losses and charge-offs—total.......................................
un securities.....................................................................
On loans...........................................................................
All other...........................................................................

263,617
132,624
55,878
75,115

326
102
151
73

1,906
774
704
428

6,277
2,938
1,922
1,417

17,451
8,702
4,483
4,266

20,372
10,049
4,607
5,716

44,844
22,934
8,307
13,603

21,257
11,751
3,129
6,377

151,184
75,374
32,575
43,235

$5,000,000 $10,000,000 $50,000,000
More than
to
to
to
$10,000,000 $50,000,000 $100,000,000 $100,000,000

(Amounlis in thousancIs of dollars)




CORPORATION

$500,000
to
$1,000,000

INSURANCE

Current operating earnings— total.............................
Interest and dividends on:
United States Government obligations....................
Other 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 col­
lection and exchange charges.................................
Trust department...........................................................
Other current operating earnings..................................

$500,000
or
less

DEPOSIT

All
banks1

FEDERAL

Earnings or expense item

1,203,120

2,011

12,289

38,511

94,744

88,238

199,121

77,843

690,363

298,243
277,047
21,196

364
341
23

2,094
1,979
115

6,459
6,082
377

15,905
15,149
756

17,204
16,482
722

45,275
43,455
1,820

21,420
20,358
1,062

189,522
173,201
16,321

Net profits after taxes.....................................................

904,877

1,647

10,195

32,052

78,839

71,034

153,846

56,423

500,841

Dividends and interest on capital— total.................
Dividends declared on preferred stock and interest
paid on capital notes and debentures...................
Cash dividends declared on common stock.................

273,775

493

2,880

8,687

20,532

18,166

36,764

14,644

171,609

11,768
262,007

28
465

167
2,713

397
8,290

1,119
19,413

1,648
16,518

2,753
34,011

1,574
13,070

4,082
167,527

Net additions to capital from profits........................

58,307

52,868

117,082

41,779

329,232

230,145
85,840
92,053
7,207
43,243
1,802

1,493,682
471,408
721,209
56,493
235,654
8,918

4,832,868
1,404,330
2,484,111
219,373
695,746
29,308

12,360,084
3,216,048
6,699,456
698,074
1,656,211
90,295

11,628,196
2,699,437
6,642,988
694,046
1,495,283
96,442

25,383,307
5,657,506
14,850,828
1,356,028
3,245,191
273,754

10,481,537
2,332,543
6,043,856
433,662
1,545,901
125,575

85,885,655
16,981,324
48,757,148
3,469,737
15,856,479
820,967

Liabilities and capital—total....................................... 152,295,474
Total deposits.................................................................. 142,798,124
Demand deposits.......................................................... 11!+>251+,91+0
Time and savings deposits........................................... 28,51+3,181+
Borrowings and other liabilities....................................
1,012,280
Total capital accounts...................................................
8,485,070

230,145
206.093
167,027
39,066
1,082
22,970

1,493,682
1,382,647
1,071,333
311,31 1
+
1,817
109,218

4,832,868
4,525,470
3,338,191+
1,187,276
5,644
301,754

12,360,084
11,614,347
8,162,391
3,1+51,956
17,319
728,418

11,628,196
10,954,194
7,1+21,059
3,533,135
23,371
650,631

25,383,307
23,924,936
16,855,839
7,069,097
78,869
1,379,502

10,481,537
9,916,984
7,889,518
2,027,1+66
47,826
516,727

85,885,655
80,273,453
69,31+9,579
10,923,871+
836,352
4,775,850

Number of active officers, December 3 1 .........................
Number of other employees, December 31.....................

58,729
244,231

1,050
602

4,306
2,950

8,860
8,860

13,198
21,841

7,646
21,512

9,360
48,769

2,566
20,029

11,743
119,668

Number of banks, December 31.......................................

13,171

602

2,026

3,374

3,948

1,657

1,238

142

184

O
F

23,365

DIVIDENDS

7,315

AD
N

1,154

EXPENSES,

631,102

Average assets and liabilities3
Assets— total..................................................................... 152,295,474
Cash and due from banks.............................................. 32,848,436
U. S. Government obligations....................................... 86,291,649
Other securities...............................................................
6,934,620
Loans and discounts....................................................... 24,773,708
All other assets................................................................
1,447,061

EARNINGS,

Net profits before income taxes...................................
Taxes on net income— total.........................................
Federal.............................................................................
State. . . ...........................................................................

BANKS




INSURED

1 This group of banks is the same as the group shown in Table 115 under the heading “ Operating throughout the year".
* Deposits are as of December 31, 1945.
* Asset and liability items are averages of figures reported at beginning, middle, and end of year for State banks, and are as of December 31, 1945, for national banks
Back figures—See Annual Report for 1944, pages 144-145 and earlier reports.

CO

T a b le 11 8 .

R a t i o s o f E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s O p e r a t i n g T h r o u g h o u t 19 4 5
CO

B A N K S GROUPED ACCORDING TO AM O U N T O F D EPO SITS

00

Banks with deposits of—*
Earnings or expense item

$100.00

$500,000
or
less

$100.00

$5,000,000 $10,000,000 $50,000,000
More than
to
to
to
$10,000,000 $50,000,000 $100,000,000 $100,000,000

$1,000,000
to
$2,000,000

$2,000,000
to
$5,000,000

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

42.62
8.11
32.32
6.81

44.85
7.37
28.18
6.37

45.69
5.43
26.89
4.90

48.96
6.32
27.07
2.64

32.41
5.19
43.37
6.06

35.79
6.47
39.42
6.43

3.65
10.16

11.75
4.48

10.34
2.63

8.71
3.18

6.37
4.03

4.59
5.55

3.73
9.50

2.86
14.23

2.44
12.57

61.30
28.39
9.41
3.98

70.60
37.32
7.53
4.96

66.80
33.74
9.91
4.06

65.44
31.52
11.64
4.08

66.10
29.94
13.14
4.44

67.38
29.48
13.82
4.42

67.53
29.68
12.60
4.38

65.44
30.18
9.13
4.25

56.02
26.77
6.67
3.62

and fixtures.............................
Other current operating expenses.

1.63
17.89

1.89
18.90

1.74
17.35

1.76
16.44

1.98
16.60

2.11
17.55

2.02
18.85

2.00
19.88

1.26
17.70

Net current operating earnings..

38.70

29.40

33.20

34.56

33.90

32.62

32.47

34.56

43.98

1.63
1.00
.63
.33
.17
.79
.59

2.62
1.85
.77
.24
.14
.87
.72

2.23
1.49
.74
.21
.13
.82
.68

2.08
1.36
.72
.21
.13
.80
.66

1.92
1.27
.65
.26
.14
.77
.64

1.87
1.26
.61
.33
.18
.76
.61

1.78
1.20
.58
.33
.18
.78
.61

1.65
1.08
.57
.37
.20
.74
.54

1.46
.82
.64
.34
.18
.80
.58

11.29
5.99
3.10
14.18
3.51
10.67
3.23
7.44

7.71
2.46
1.42
8.75
1.58
7.17
2.15
5.02

10.14
2.85
1.74
11.25
1.92
9.33
2.63
6.70

11.48
3.36
2.08
12.76
2.14
10.62
2.88
7.74

11.06
4.35
2.40
13.01
2.19
10.82
2.82
8.00

10.87
5.82
3.13
13.56
2.64
10.92
2.79
8.13

10.61
7,07
3.25
14.43
3.28
11.15
2.66
8.49

11.60
7.58
4.11
15.07
4.15
10.92
2.83
8.09

11.58
6.04
3.17
14.45
3.97
10.48
3.59
6.89

lection and exchange charges.
Other current operating earnings.
Current operating expenses—to ta l...
Salaries, wages, and fees........................
Interest on time and savings deposits.
Taxes other than on net income..........

Amounts per $100 of total assets*
Current operating earnings— total
Current operating expenses—total
Net current operating earnings. ..
Recoveries and profita—total. . . .
Losses and charge-offs—total. . . .
Net profits before income taxes...
Net profits after income taxes.. . .
Amounts per $100 of total capital accounts8
Net current operating earnings.........................................
Recoveries and profits—total............................................
Losses and charge-offs—total............................................
Net profits before income taxes....................................... .
Taxes on net income...........................................................
Net profits after income taxes......................................... .
Cash dividends declared.....................................................
Net additons to capital from profits...............................




CORPORATION

24.44
3.93
50.17
5.23

INSURANCE

45.70
6.75
29.31
4.43

39.51
7.98
35.54
6.57

DEPOSIT

$500,000
to
$1,000,000

FEDERAL

Amounts per $100 of current operating
earnings
Current operating earnings—total...................
Interest and dividends on:
United States Government obligations. . . . . .
Other securities..................................................
Income on loans.....................................................
Service charges on deposit accounts....................

All
banks1

Special ratios*
Income on loans per $100 of loans...................................
Income on securities per $100 of securities.....................
Service charges per $100 of demand deposits.................
Interest paid per $100 of time and savings deposits. . . .

6.14
1.61
.19
1.06

5.68
1.57
.19
.98

5.10
1.53
.19
.90

4.69
1.50
.20
.85

3.91
1.45
.17
.80

3.02
1.37
.11
.78

2.15
1.33
.05
.77

Assets and liabilities per $100 o f total assets3
Assets— t o t a l.....................................................................
Cash and due from banks..............................................
U. S. Government obligations.......................................
Other securities...............................................................
Loans and discounts.......................................................
All other assets................................................................

100.00
21.57
56.66
4.55
16.27
.95

100.00
37.30
40.00
3.13
18.79
.78

100.00
31.56
48.28
3.78
15.78
.60

100.00
29.06
51.40
4.54
14.40
.60

100.00
26.02
54.20
5.65
13.40
.73

100.00
23.21
57.13
5.97
12.86
.83

100.00
22.29
58.51
5.34
12.78
1.08

100.00
22.25
57.66
4.14
14.75
1.20

100.00
19.77
56.77
4.04
18.46
.96

L iabilities and capital— to ta l.......................................
Total deposits..................................................................
Demand deposits..........................................................
Time and savings deposits...........................................
Borrowings and other liabilities....................................
Total capital accounts....................................................

100.00
93.76
75.02
18.7k
.67
5.57

100.00
89.55
72.58
16.97
.47
9.98

100.00
92.57
71.73
20.8k
.12
7.31

100.00
93.64
69.07
2k.5 7
.12
6.24

100.00
93.97
66.0k
27.93
.14
5.89

100.00
94.20
63.82
30.38
.20
5.60

100.00
94.26
66.kl
27.85
.31
5.43

100.00
94.61
75.27
19.3k
.46
4.93

100.00
93.47
80.75
12.72
.97
5.56

Number of banks, December 31.......................................

13,171

602

2,026

3,374

3,948

1,657

1,238

142

184

DIVIDENDS
O
F
INSURED
BANKS




AD
N

1 This group of banks is the same as the group shown in Table 115 under the heading “ Operating throughout the year” . Therefore, these ratios differ slightly from the ratios
shown in Tables 114 and 116.
2 Deposits are as of December 31, 1945.
* Asset and liability items are averages of figures reported at beginning, middle, and end of year for State banks, and are as of December 31, 1945, for national banks.
Back figures— See Table 114, page 130. See also Annual Report for 1943, pages 100-101, and earlier reports.

EXPENSES,

6.99
1.72
.19
1.16

EARNINGS,

2.93
1.39
.10
.82

£

D

e p o s it

In sur ance D

is b u r s e m e n t s

Table 119. Disbursements by the Federal Deposit Insurance Corporation to protect depositors;
number and deposits of insured banks placed in receivership or merged with the
financial aid of the Corporation, 1934-1945

FEDERAL

Banks grouped by class of bank, year of disbursement, amount of deposits, and
State

DEPOSIT

As shown by books of bank at date of dosing

As shown by books of FDIC, December 81, 1945

Table 122, Disbursements to nrotect depository recoveries, and losses by the Federal Deposit
Insurance Corporation in connection with insured banks placed in receivership or
merged with the financial aid of the Corporation, 1934-1945




A s shown by books of FDIC, December 31, 1945

CORPORATION

Table 121. Depositors and deposits of insured banks placed in receivership, 1934-1945

INSURANCE

Table 120. Assets and liabilities of insured banks placed in receivership and of insured banks
merged with the financial aid of the Federal Deposit Insurance Corporation,
1934-1945

Disbursements by the Federal Deposit Insurance Corporation
to protect depositors are made whenever insured banks because of
financial difficulties are placed in receivership or are merged with the
aid of the Corporation. In receiverships the disbursement is the amount
paid by the Corporation on insured deposits. In mergers the Corpora­
tion^ disbursement is the amount loaned to merging banks, or the
price paid for assets purchased from them.




Sources of data:
Books of bank at date of closing; and books of FD IC , December
31, 1945.

DISBURSEMENTS

Depositors paid by FDIC are all those who receive any payment
from the Corporation. Depositors fully paid by other methods are
those who receive no payment from FD IC, but do receive full com­
pensation for their accounts by offset, by sale of security, or by direct

Deposits of insured banks placed in receivership as given in tables
with data taken from the books of FD IC at the end of the year, will
differ from the deposits in tables with data taken from books of bank
at date of closing. This is because the former include deposits discovered
or reclassified after the date of a bank’s closing.

INSURANCE

Depositors eligible for insurance protection are all depositors
except those holding only accounts which were restricted or deferred
prior to 1934, and those whose deposits were made after the termination
of a bank’s insured status. Depositors not eligible for insurance
protection are those whose total accounts are thus excluded from
insurance, and those whose accounts are barred from payment by FD IC
because the accounts were not claimed before the expiration of the
period set by law.

Insured deposits are the deposits for which F D IC is legally liable.
This includes the net amount due each depositor after deductions of
offset, of amounts in excess of $5,000, and of amounts not eligible for
insurance protection as described in preceding paragraphs. Secured
deposits are those covered by pledge of specific assets. Preferred
deposits are those which, under Federal or State law, are paid from
proceeds of the liquidation before common claims against the bank
are met. Deposits subject to offset are those met by claims which
the bank holds against the depositor. Deposits uninsured, unsecured,
not preferred, and not subject to offset are those not covered by
insurance or other specific arrangement. They may be paid in full,
however, by the receiver as common claims.

DEPOSIT

Depositors and deposits in insured banks placed in receivership have
been grouped in Table 116 to show the ways in which depositors’ claims
against these banks were met. Because the claim of a single depositor
may be paid in several ways, the number of depositors cannot be
correlated with the amount of deposits in the various categories as
given in the table.

payment from the receiver because of their preferred status. Unpaid
depositors are primarily those whose claims are disputed, and those
whose claims although not filed are not yet legally barred from payment
by F D IC .

Table 119. Disbursem ents by th e F e d e r a l D eposit Insurance C orporation t o P r o te c t D epositors; Number and D eposits
o f Insured Banks P laced in Receivership o r M erged w ith th e F in an cial Aid o f th e Corporation, 1934-1945
BANKS GROUPED BY CLASS OF BANK, YEAR OF DISBURSEMENT, AMOUNT OF DEPOSITS, AND STATE
Disbursement by FDIC
(in thousands of dollars)

Number of banks

Deposits (in thousands of dollars)

Total

Receiver­
ships1

Mergers1

Receiver­
ships

Total

Total

Mergers

Receiver­
ships1

Mergers2

174,693

398

245

153

504,931

109,593

395,338

78,094
99,405
84,218

14,802
20,928
51,294

63,292
78,477
32,924

65
20
313

21
6
218

44
14
95

94,717
179,081
231,133

19,475
26,538
63,580

75,242
152,543
167,553

Calendar year
1934.....................................................................
1935.....................................................................
1936.....................................................................
1937.....................................................................

942
8,890
14,831
19,203

942
6,025
8,058
12,046

2,865
6,773
7,157

9
25
69
75

9
24
42
50

1
27
25

1,967
13,323
27,527
33,345

1,967
9,094
11,240
14,960

4,229
16,287
18,385

1938.....................................................................
1939.....................................................................
1940.....................................................................
1941.....................................................................

30,479
67,793
74,352
23,880

9,087
26,185
4,893
12,278

21,392
41,608
69,459
11,602

74
60
43
15

50
32
19
8

24
28
24
7

59,722
157,781
142,390
29,721

10,294
32,742
5,658
14,730

49,428
125,039
136,732
14,991

1942.....................................................................
1943.....................................................................
1944.....................................................................
1945.....................................................................

10,910
7,171
1,498
1,768

1,612
5,499
399

9,298
1,672
1,099
1,768

20
5
2
1

6
4
1

14
1
1
1

19,010
12,535
1,915
5,695

1,815
6,637
456

17,195
5,898
1,459
5,695

Banks w ith deposits o f—
$100,000 or less.................................................
$100,000 to $250,000.........................................
$250,000 to $500,000.........................................

4,957
12,859
14,336

4,310
11,549
10,215

647
1,310
4,121

106
108
58

83
86
36

23
22
22

6,362
17,610
20,656

4,951
13,919
12,462

1,411
3,691
8,194

$500,000 to $1,000,000.....................................
$1,000,000 to $2,000,000..................................
$2,000,000 to $5,000,000..................................

24,145
26,630
42,329

13,898
8,960
12,421

10,247
17,670
29,908

49
35
25

24
9
5

25
26
20

36,807
49,319
77,567

17,591
11,747
16,278

19,216
37,572
61,289

21,903
114,558 ........ 25,671

21,903
88,887

9
8

2

9
6

57,486
239,124

32,645

57,486
206,479

$5,000,000 to $10,000,000................................
$10,000,000 to $50,000,000..............................
More than $50,000,000 .................................




CORPORATION

87,024

INSURANCE

261,717

Class o f bank
National banks..................................................
State banks members F. R. System...............
Banks not members F. R. System..................

DEPOSIT

All banks...............................................................

FEDERAL

Classification

State
Alabama.............................................................

300
862
3,294
4,335
1,462

203
845
1,241
3,092
385

Kansas................................................................
Kentucky...........................................................

973
4,616
669
3,108
1,571

481
3,331
669
734

Mississippi..........................................................
Missouri..............................................................
Montana.............................................................

5,340
639
257
4,922
214

139
639
257
4,337
187

Nebraska............................................................
New Hampshire.................................................
New Jersey.........................................................
New York...........................................................
North Carolina..................................................

469
118
79,240
67,556
1,449

25,097
10,836
1,157

North Dakota....................................................
Oklahoma...........................................................
Oregon.................................................................
Pennsylvania......................................................

2,654
1,610
1,219
962
47,484

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

Maryland...........................................................

2
5
1
1
2

1
2

97
17
2,053
1,243
1,077

2
8
14
18
6

1
7
6
15
3

492
1,285

9
22
3
5
2

5
18
3
2

585
27

7
5
3
45
4

3
5
3
34
3

118
54,143
56,720
292

4
1
37
25
6

ii
3
2

2,374
1,571
5,201

469

1,392
1,610
1,134

1,262

1
5

4

29
2
7
1
25

18
2
5

10,133

85
962
37,351

136
2,409
1,278
2,512
3,445

136
2,386
1,164
2,468
3,259

23
114
44
186

4,656
935
1,458
6,384

512
1,458
5,096

4,144
935
1,288

1

529
1,167
1,078
8
1,526

101
1,167

1
1
8
3
3

491
1,027
6,410
9,710
5,517

217
998
1,638
3,932
499

4
4

1,234
7,950
1,651
4,569
3,019

540
694
3,953
3,997
1,651
828 ..........3,741
3,019

1

3
2
4

8
1,526

11
1

12,404
818
333
7,001
298

160
818
333
5 ,116
215

1
26
22
4

538
296
184,511
138,826
2,291

30,916
13,286
1,421

11

428
1,078

274
29
4,772
5,778
5,018

12,244
1,885
83

538
296
153,595
125,540
870

8

2
1
17

3,831
2,345
2,226
1,114
67,430

14,340

567
1 114
53^090

1
23
12
17
3

1
22
8
16
2

1
4
1
1

136
2,989
1,944
3,318
3,725

136
2,863
1,622
3,241
3,375

126
322
77
350

7
1
3
30

3

10,430
1,538
2,006
8,697

2,006
5,963

3
20

4
1
10

1,553
2,345
1,659

629

2,278

DISBURSEMENTS

Florida................................................................
Georgia...............................................................
Illinois.................................................................
Indiana...............................................................

143
861

INSURANCE

8
1,235

94
840

DEPOSIT

237
840
861
8
1,235

9,801
1,538
2,734

1 Data from books of FDIC, December 31, 1945.
2 Data from books of bank at date of closing.




CO

Table 120.

A ssets a n d L ia b il it ie s op I n su red B a n k s P laced in R e c e iv e r s h ip a n d of I n su r e d B a n k s M e r ged w it h
th e

F in a n c ia l A id of th e F ed er al D eposit I n s u r a n c e C orpo ratio n ,

1934-1945

AS SHOWN BY BOOKS OF BANK AT DATE OF CLOSING
Liabilities and capital accounts

Assets
Year

T = Ss Gov­
T
ernment
obligations

Other
securities

Loans,
discounts,
and
overdrafts

Banking
house,
furniture &
fixtures

Other
real
estate

Other
assets

Total

Total
deposits

Other
liabilities

K. F. C.
capital

Private
capital
stock

Other
capital
accounts1

$108,018,589 $76,295,043 $73,533,084 $231,683,314 $22,225,616 $59,544,599 $13,444,359 $584,744,604 $502,712,341 $11,468,774 $25,130,464 $37,477,461 $7,955,564
$65,569,217

$5,375,616 $12,293,686

$8,330,507 $140,290,048 $107,374,564 $10,122,023

$5,896,246 $12,254,299 $4,642,916

603,519
698,440
902,215
1,293,683

273,638
510,479
1,955,104
2,307,696

1,329,865
6,842,116
6,454,624
11,107,699

79,365
459,055
459,700
486,995

120,319
242,274
734,874
837,966

69,565
1,597,403
273,559
1,010,689

2,661,327
12,323,948
12,974,788
19,283,376

1,951,992
8,700,485
11,039,098
14,715,286

104,963
2,111,886
93,695
1,132,758

90,000
223.000
788.000
755,250

432,100
950,000
1,069,350
2,498,815

82,272
338,577
-15,355
181,267

1938
1939
1940
1941

1,610,297
3,329,557
1,018,215
6,462,157

451,570
1,052,424
452,574
3,493,431

2,215,638
4,855,519
1,519,677
1,810,346

6,574,061
21,839,422
3,314,762
5,398,218

412,911
1,845,901
694,900
91,311

2,125,022
7,221,558
435,526
106,615

530,408
3,781,385
523,899
449,458

13,919,907
43,925,766
7,959,553
17,811,536

10,124,255
32,557,805
5,599,438
14,627,158

1,213,354
4,695,820
455,788
298,526

1,052,900
2,249,996
422,750
195,500

1,059,200
2,775,001
1,045,533
1,582,000

470,198
1,647,144
436,044
1,108,352

1942
1943
1944
1945

500,513
2,910,826
196,220

119,650
968,872
117,700

52,364
405,011
41,090

777,953
1,846,467
84,030

70,685
772,493
2,300

55,222
414,310

25,030
63,677
5,434

1,601,417
7,381,656
446,774

1,379,526
6,274,311
405,210

1,520
13,582
131

81,750
32,500
4,600

140.000
675.000
27,300

-1,379
386,263
9,533

MERGI CRS
Total
$85,398,207 $66,140,965 $57,586,522 $166,114,097 $16,850,000 $47,250,913

$5,113,852 5444,454,556 $395,337,777

$1,346,751 $19,234,218 $25,223,162 $3,312,648

1935
1936
1937

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
18,384,928

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
1941

8,133,887
27,451,442
30,227,874
3,167,243

7,018,796
27,929,162
17,183,076
801,273

10,377,037
16,266,036
17,987,527
2,835,309

20,896,236
44,289,765
60,687,428
8,178,623

2,873,257
5,142,882
4,553,388
798,028

3,913,009
15,459,743
22,840,095
1,014,582

2,380,489
1,049,600
458,831
197,669

55,592,711
137,588,630
153,938,219
16,992,727

49,428,383
125,038,946
136,731,549
14,990,768

168,674
679,659
157,766
57,508

3,726,463
6,103,500
7,186,655
289,000

2,697,650
6,381,000
8,666,162
1,111,250

-428,459
-614,475
1,196,087
544,201

1942
1943
1944
1945

4,159,617
1,216,987
368,633
2,440,786

3,547,766
2,903,771
585,251
1,371,925

2,275,392
555,383
230,282
55,504

7,731,137
1,675,734
367,086
2,435,488

759,861
274,331

1,824,586
15,844
67,428
4,609

354,362
34,523
32,108
83,603

20,652,721
6,676,573
1,650,788
6,391,915

17,195,146
5,897,691
1,459,091
5,695,202

584

913,400
96,000

1,748,200
300,000
200,000
331,500

795,391
382,882
-8,303
365,213

1 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 : One insured bank was merged with the financial aid of FDIC during 1945. The Farmers and Merchants State Bank of Fredericksburg, Virginia, Inc., Fredericksburg,
Virginia, (Case No. 153) with 12,484 accounts was merged with the Farmers and Merchants State Bank, Fredericksburg, Va., on January 15, 1945. A disbursement of $1,768,237 was
Digitized for by the Corporation in connection with this merger.
made FRASER



CORPORATION

185,056
1,974,181
2,194,712
2,238,648

INSURANCE

1934
1935
1936
1937

DEPOSIT

RECEF PERSHIPS
Total
$22,620,382 $10,154,078 $15,946,562

FEDERAL

Total

Cash and
due from
banks

£

Table 121.

D e p o s i t o r s a n d D e p o s i t s o f I n s u r e d B a n k s P l a c e d in R e c e i v e r s h i p ,

1934-1945

AS SHOWN BY BOOKS OF FDIC, DECEMBER 31, 1945
Number of depositors

Amount of deposits

Year
Fully paid
by other
methods

Not eligible
for
insurance
protection

Unpaid

Total
Total

Paid

Unpaid

Secured
and
preferred

Subject
to
offset

In excess
of
insurance
maximum

Other

380,511

289,506

36,238

8,801

$111,998

$5,096,867

$6,309,246

$9,678,325

$1,374,021

1934
1935
1936
1937

15,545
32,275
41,831
74,151

11,262
23,422
30,924
56,800

939
2,986
4,677
7,761

443
1,509
22
28

2,901
4,358
6,208
9,562

1,966,353
9,090,632
11,240,970
14,961,275

942,011
6,028,994
8,055,590
12,047,066

941,007
6,024,650
8,055,563
12,044,562

1,004
4,344
27
2,504

831,832
538,951
659,381
1,140,812

90,996
561,288
660,363
1,084,311

30,607
1,935,853
1,048,034
642,707

70,907
25,546
817,602
46,379

1938
1939
1940
1941

43,700
90,212
20,671
38,594

31,766
72,214
15,681
29,887

7,390
6,246
2,935
1,710

17
3,911

4,527
7,841
2,055
6,995

10,296,261
32,739,801
5,656,748
14,730,243

9,087,490
26,259,881
4,894,723
12,278,003

9,087,444
26,184,421
4,894,723
12,278,001

46
75,460

340,558
587,413
182,441
391,880

524.301
1,910,785
341,818
793.302

253,924
3,949,351
221,323
997,814

89,988
32,371
16,443
269,244

1942
1943
1944
1945

5,717
16,914
901

4,210
12,566
774

562
936
96

945
574

1,816,179
6,637,025
455,925

1,612,049
5,521,322
405,824

1,612,049
5,499,467
399,068

59,824
363,775

80,896
245,870
15,316

60,561
503,366
34,785

2,849
2,692

2
2,838
31

45,966 $109,591,412 $87,132,953 $87,020,955

Back figures— See the Annual Report for 1944, p. 151, and earlier reports.




2
21,855
6,756

DISBURSEMENTS

Total

Paid by
FDIC

Uninsured, unsecured,
not preferred, and not
subject to offset

INSURANCE

Total

Insured

DEPOSIT

Eligible for insurance protection

05

T a b le 1 2 2 .

D i s b u r s e m e n t s to P ro tect D e p o s i t o r s . R e c o v e r ie s . a n d L osses b y t h e F e d e r a l D eposit I n su r a n c e C orpo r atio n in

AS SHOWN BY BOOKS OF FDIC, DECEMBER 31, 1945
(Amounts in thousands of dollars)

Total
1934

1935

1938

1936

1941

1939

1942

1943

1944

1945

$942
942

$8,890
6,025
2,865

$14,831
8,058
6,773

$19,203
12,046
7,157

$30,479
9,087
21,392

$67,793
26,185
41,608

$74,352
4,893
69,459

$23,880
12,278
11,602

$10,910
1,612
9,298

$7,171
5,499
1.672

$1,498
399
1.099

' 1,768

Recoveries by F D IC .......................................
Receiverships...............................................
Mergers.........................................................

215,309
66,188
149,121

735
735

6,023
4,193
1,830

12,268
6,587
5,681

15,334
9,291
6,043

26,695
7,709
18,986

50,672
15,410
35,262

62,443
4,212
58,231

22,386
12,039
10,347

9.759
1,297
8,462

6,028
4,356
1.672

1,458
359
1.099

' 1,508

Estimate of losses by F D IC ..........................
Receiverships1..............................................
Mergers.........................................................

31,111
17,004
14,107

207
207

2,782
1,767
1,015

2,511
1,461
1,050

3,637
2,567
1,070

2,585
1,187
1,398

10,091
8,363
1,728

7,217
583
6,634

866

216
650

751
289
462

334
334

30
30

Terminated liquidations
Disbursement by F D IC .................................
Receiverships...............................................
Mergers.........................................................

60,299
42,421
17,878

839
839

5.149
5.149

8,340
7,760
580

10,295
8,952
1,343

8,828
6,086
2,742

14,121
7,999

5,065
3,081
2.004

4,041
1,547
2.494

3,215
622
2.593

406
406

6,122

Recoveries by F D IC .......................................
Receiverships...............................................
Mergers.........................................................

51,776
34,516
17,260

632
632

6,803
6,299
504

7,991
6,890

7,945
5,433
2,512

12,702
6,650
6,052

4,743
2,739
2.004

3,843
1,349
2.494

3,115
522
2.593

361
361

1,101

Losses by F D IC ..............................................
Receiverships...............................................
Mergers.........................................................

8,523
7,905
618

207
207

1,537
1,461
76

2,304
2,062
242

883
653
230

1,419
1,349
70

322
322

198
198

100
100




3.641
3.641
1.508
1.508

$1,768

1,508

100

‘ ’ ‘ ioo

CORPORATION

$261,717
87,024
174,693

INSURANCE

All banks placed in receivership or merged
Disbursement by F D IC .................................
Receiverships...............................................
Mergers.........................................................

DEPOSIT

Banks placed in receivership or merged in Type and status of case

FEDERAL

C o n n e c t io n w it h I n s u r e d B a n k s P lac ed in R ece iv e rsh ip or M er ged w it h th e F in a n c ia l A id of t h e C o rp o r a tio n , 1934-1945

Active liquidations
Disbursement by FDIC
Receiverships....................
Mergers.............................

201,418
44,603
156,815

103
103

3,741
876
2,865

6,491
298
6,193

8,908
3,094
5,814

21,651
3,001
18,650

53,672
18,186
35,486

69,287
1,832
67,455

19,839
10,731
9,108

7,695
990
6,705

6,765
5,093
1,672

1,498
399
1,099

1,768

Recoveries by F D IC ............
Receiverships....................
Mergers.............................

163,533
31,672
131,861

103
103

2,382
552
1,830

5,465
288
5,177

7,343
2,401
4,942

18,750
2,276
16,474

37,970
8,760
29,210

57,700
1,473
56,227

18,543
10,690
7,853

6,644
775
5,869

5,667
3,995
1,672

1,458
359
1,099

1,508

Estimate of losses by FDIC
Receiverships1...................
Mergers.............................

22,588
9,099
13,489

1,274
259
1,015

974

1,702
534
1,1-68

8,672
7,014
1,658

6,895
261
6,634

668
18
650

651
189
462

289
289

30
30

100

974

1,333
505
828

Number of banks..................

398

9

25

69

75

74

60

43

15

20

5

2

1

Receiverships........................
Mergers.................................

245
153

9

24
1

42
27

50
25

50
24

32
28

19
24

8
7

6
14

4
1

1
1

1

Liquidation terminated.......
Receiverships....................
Mergers..............................

264
195
69

8
8

18
18

56
40
16

58
43
15

56
43
13

37
23
14

19
13
6

4
3
1

7
3
4

1
1

Liquidation active................
Receiverships....................
Mergers..............................

134
50
84

1
1

7
6
1

13
2
11

17
7
10

18
7
11

23
9
14

24
6
18

11
5
6

13
3
10

4
3
1

2
1
1

1

1,768

1,508

100

DISBURSEMENTS




INSURANCE

1 Estimates of losses for banks placed in receivership are based on total insured deposits, unpaid as well as paid. The disbursements in the receiverships as given in the table
are the amounts paid on insured deposits by December 31, 1945. For amounts unpaid on insured deposits see^Table 121, page 145.

DEPOSIT

1







INDEX




INDEX

Page

Absorptions, consolidations, and mergers:
Of insured banks, 1934-45. See Mergers of insured banks with financial aid
of the Corporation, Terminations of insurance.
Of operating banks, 1945................................................................................................ 96-97
Adjusted capital account. See Capital of banks.
Adjusted liabilities. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Admissions to insurance:
Applications approved and disapproved.......................................... 10-11, 23-24, 38-39
By class of bank, 1945..................................................................................................... 96-97
Applications from banks:
For admission to insurance............................................................................................ 23-24
For approval of capital retirement or reduction.....................................................
25
For approval of establishment of branches..............................................................
24
Appraised value of assets. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Assessments on insured banks for deposit insurance:
Amount.................................................................................................................................
Basis o f.................................................................................................................................

31
8

Assets and liabilities of closed banks, See Receivership, insured banks placed in.
Assets and liabilities of insured commercial banks, examiners’ appraisal:
Banks examined in 1939-1945..............................................................................49, 122-123
Banks examined in 1945, grouped by amount of deposits................................124-125
Definitions of terms used:
Adj usted liabilities......................................................................................................
121
Appraised value...........................................................................................................
121
Book value....................................................................................................................
121
Examined deductions..............................................................................................
121
Not criticized...............................................................................................................
121
Substandard..................................................................................................................
121
Rates of charge-offs and recoveries.............................................................................
56
Ratio of substandard assets to :
Adjusted capital accounts........................................................................................
49
Assets other than cash and government obligations.......................................
49
Total assets...................................................................................................................
49
Sources of data...................................................................................................................
121
Assets and liabilities of operating banks (see also Assets and liabilities of insured
commercial banks, examiners’ appraisal; Capital of banks; Deposits):
All banks by district and State, December 31, 1945..........................................118-119
All banks, December 31, 1941; December 30, 1944; December 31, 1 9 4 5 ....
40
All banks, June 30 and December 31, 1945...........................................................110, 111
All commercial banks, December 31, 1945; December 30, 1944; December
31, 1941...................................................................................................................
43
Commercial banks, June 30 and December 31, 1945......................................... 110, 111
TncjnrAn pnTntYiAT’/'M
Cil mqtiitq *

Call dates, December 3i, 1945; June 30, 1945, and December 3 0 ,1 9 4 4 .. 112-113
Call dates 1940-1945..................................................................................................
116
Percentage distribution, call dates, 1940-1945..................................................
117
Reports o f......................................................................................................................
25
Mutual savings banks, June 30 and December 31, 1945.................................. 110, 111
Noninsured banks, June 30 and December 31, 1945..........................................110, 111
Sources of data...................................................................................................................
109
Types of assets................................................................................................................... 40, 43




151

152

FE D E RA L DEPOSIT IN SU RAN CE CORPORATION
Page

Assets and liabilities of the Federal Deposit Insurance Corporation..................... 30-33
Assets purchased by the Federal Deposit Insurance Corporation:
From banks in receivership to facilitate liquidation.............................................
33
From banks merged with financial aid of the Corporation. See Mergers of
insured banks with financial aid of the Corporation.
Liquidation o f..................................................................................................................... 15-16
Assets of insured banks, quality of. See Assets and liabilities of insured com­
mercial banks, examiners’ appraisal.
Assets pledged to secure bank obligations.......................... ............................................

113

Bank supervision (see also Examinations of banks):
Activities of the Federal Deposit Insurance Corporation in 1945. .12, 21-22, 23
State legislation, 1945...................................................................................................... 89-92
Banking monopoly...................................................................................................................

12-13

Banking offices, establishment o f:
Banks beginning operations, 1945............................................................................... 10, 96
Branches, establishment approved by Corporation...............................................
24
Branches opened, 1945................................................................................................11, 24, 97
Banking offices, number of. See Number of operating banks and branches.
Banking practices. See Unsafe and unsound banking practices.
Banks and branches ceasing operations:
All banks and branches 1945.........................................................................................
Branches of insured banks, 1936-1945........................................................................
Insured banks, 1936-1945...............................................................................................

96-97
39
38

Banks beginning operations. See Banking offices, establishment of.
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 Corporation:
Fully protected, in insured banks placed in receivership, or merged with
the financial aid of the Corporation..................................................... ..
14-16
Number o f.....................................................................................................................
16
Number of, in insured banks merged with financial aid of the Corporation 15-16
Number of, in insured banks placed in receivership............................... 15-16, 145
Insured banks:
Deposits o f...........................................................................................................16, 142-143
Deposits protected...............................................................................................14-17, 145
Disbursements by the Corporation in connection with..........................14r~2l, 145
Loss to depositors....................................................................................................... 16, 17
Loss to Federal Deposit Insurance Corporation.............................16, 18-21, 146
Number, 1934-1945......................................................................................7, 16, 142-143
Banks in financial difficulties (see also Banks closed because of financial
difficulties):
Methods of handling under existing law.............................................................. 12, 14—
21
Recommendations of the Corporation.......................................................................
12
Banks, number of. See Number of operating banks and branches.
Banks operating branches. See Banking offices, establishment of; Number of
operating banks and branches.
Board of Directors of the Federal Deposit Insurance Corporation........................

iv, v

Board of Governors of the Federal Reserve System:
Data obtained from......................................................................................... 21, 95, 109, 127
Review of examination reports submitted b y ..........................................................
21
Book value of bank assets and liabilities. See Assets and liabilities of insured
commercial banks, examiners’ appraisal; Assets and liabilities of
operating banks; Capital of banks.




IN D E X

153
Page

Branches. See Banking offices, establishment of; Classification of banks and
banking offices; Number of operating banks and branches.
Capital of banks (see also Assets and liabilities of operating banks; Earnings,
expenses, and dividends of insured banks):
Adequacy o f...................................................................................................................... 8-10, 47
Definition of terms used in examiners’ appraisal of:
Adjusted capital accounts........................................................................................
121
Book value of capital accounts..............................................................................
121
Net sound capital.......................................................................................................
121
Examiners7 appraisal, insured commercial banks:
In 1939-1945, by years........................................................................................... 122-123
In 1945, banks grouped by amount of deposits.............................................124-125
Of insured banks placed in receivership....................................................................
144
Ratios to assets:
All commercial banks, historical trend............................................................... 8-9, 48
Insured banks, 1945................................................................................................ 135, 139
Insured commercial banks, by years....................................................................
123
Retirements approved by the Corporation...............................................................
25
Total capital accounts:
Commercial and mutual savings banks, insured and noninsured,
June 30 and December 31, 1945...................................................................110, 111
Insured commercial banks............................................................................. 47, 113, 125
Unsafe and unsound practices.......................................................................................
22
Charge-offs by banks. See Earnings, expenses, and dividends of insured banks.
Class of bank, banking data presented by:
Admissions to and terminations of insurance.......................................................... 96-97
Assets and liabilities.......................................................................................................110-111
Banks which suspended operations, 1934-1945......................................................
142
Deposits........................................................................................................... 106-107, 110, 111
Earnings of insured banks............................................................................................132-133
Insured banks placed in receivership or merged with financial aid of the
Corporation............................................................................................................
142
Number of banking offices.........................................................................37, 96-97, 98-105
Number of banks...............................................................................96-97, 98-105, 106-107
Classification of banks and banking offices..................................................................... 94, 95
Closed banks. See Banks ceasing operations; Banks closed because of financial
difficulties; Receivership, insured banks placed in.
Commercial banks. See Assets and liabilities of insured commercial banks,
examiners’ appraisal; Assets and liabilities of operating banks;
Capital of banks; Deposits; Earnings, expenses, and dividends of
insured banks; Number of operating banks and branches.
Comptroller of the Currency:
Data obtained from......................................................................................... 21, 95, 109, 127
Director of Corporation..................................................................................................
iv, v
Examination of insured banks b y ................................................................................
21
Review of reports of examinations made b y ............................................................
21
Consolidations. See Absorptions, consolidations, and mergers.
Consumer loans. See Instalment loans.
Criticized assets. See Assets and liabilities of insured commercial banks, ex­
aminers' appraisal.
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.




164

F E D E R A L D EPOSIT IN SU RAN CE CORPORATION
Page

Deposits:
Amount of, banks grouped by:
142
Banks which received financial aid from the Corporation...........................
Insured commercial banks examined in 1945................................... 46, 75, 124-125
Insured commercial banks operating throughout 1945.......................... 46, 75, 136
Classified by type of deposit:
Commercial banks, 1945................................................................................ 46, 110, 111
Insured banks placed in receivership, 1934-1945.............................................
145
Insured commercial banks, call dates, December 31, 1945, June 30,
1945, and December 30, 1944........................................................................112-113
Insured commercial banks, call dates, 1940-1945............................................
116
Demand. See Deposits, classified by type of deposit.
Growth.............................................................................................................................46, 63, 65
Governmental. See Deposits, classified by type of deposit.
Insured and otherwise protected:
In banks merged with financial aid of the Corporation................................ 14-15
In banks placed in receivership...................................................................... 14-15, 145
Interbank. See Deposits, classified by type of deposit.
Of individuals, partnerships, and corporations. See Deposits, classified
by type of deposit.
Paid and unpaid in closed insured banks. See Banks closed because of
financial difficulties.
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 and time. See Deposits, classified by type of deposit.
Secured and preferred:
Insured banks placed in receivership, 1934-1945.............................................17, 145
Insured commercial banks, call dates, December 31, 1945, June 30,
1945, and December 30, 1944..........................................................................
113
Sources of data...................................................................................................................
141
Subject to offset. See Receivership, insured banks placed in.
Uninsured deposits of insured banks placed in receivership.............................. 17, 145
Deposits in :
All commercial and mutual savings banks:
December 31, 1945.................................................................................................. 106, 111
June 30, 1945...............................................................................................................
110
June 30 and December 31, 1943-1945............................................................... 114-115
Percentage change, 1934-1945................................................................................ 63-64
All

ty»orpiCI nQTi Itq •
k

Call dates, December 31, 1945, to December 30, 1944...............................112-113
December 31, 1945........................................................................................... 46, 106, 111
Increase, 1945..............................................................................................................
46
June 30, 1945...............................................................................................................
110
All insured banks:
December 31, 1945............................................................................................. 7, 106, 111
June 30, 1945...............................................................................................................
110
June 30 and December 31, 1943-1945............................................................... 114-115
All mutual savings banks:
December 31, 1945.................................................................................................. 106, 111
June 30, 1945...............................................................................................................
110
Banks for which the Corporation is receiver...........................................................
16
Banks located in each State and possession, December 31, 1945...................106-107
Banks which received financial aid from the Corporation..................14-15, 142, 144
Insured banks merged with financial aid of the Corporation............14-15, 142, 144
Insured banks placed in receivership......................................................... 14-15, 142, 145
Insured commercial banks:
At time of examination. See Assets and liabilities of insured commercial
banks, examiners’ analysis.
By States, October 10, 1945.................................................................................... 76-77
Call dates, December 31, 1945, June 30, 1945 and December 30, 1944..
112
Call dates, 1940-1945................................................................................................
116
December 31, 1945.................................................................................................. 106, 111
Distributed according to size of accounts, October 10, 1945................67, 75, 77
June 30, 1945...............................................................................................................
110




IN D E X

155
Paga

Deposits in:— Continued
Insured mutual savings banks:
By amount of deposit................................................................................................
78
December 31, 1945.................................................................................................. 106, 111
Distributed according to size of account, October 10, 1945....................71, 79-80
June 30, 1945...............................................................................................................
110
Noninsured banks:
December 31, 1945.................................................................................................. 106, 111
June 30, 1945...............................................................................................................
110
June 30 and December 31, 1943-1945............................................................... 114-115
Depreciation. See Earnings, expenses, and dividends of insured banks.
Depressions and deposit insurance.....................................................................................
Dividends:
To depositors in mutual savings banks.....................................................................
To stockholders of, operating insured banks. See Earnings, expenses, and
dividends of insured banks.

13
133

Earnings, expenses, and dividends of insured banks:
Insured commercial banks:
Amounts, 1934-1935................................................................................................... 52 ,53
Amounts, 1934, 1941-1945.....................................................................................128-129
Amounts by class of bank, 1945..........................................................................132-133
Amounts by size of bank, 1945............................................................................136-137
Discussion o f................................................................................................................. 52-54
Rates of charge-offs and recoveries.......................................................................
56
Rates of income received, 1934-1945...................................................................
53
Rates of net earnings and net profits........................................ 56-59, 130, 134, 138
Ratios to average total capital accounts......................................... 57, 130, 134, 138
Ratios to total assets.......................................................... 130-131, 134-135, 138-139
Ratios to total current earnings................................................................ 130, 134, 138
Insured mutual savings banks, 1945...........................................................................
132
National banks, rates of net profits and of cash dividends, 1870-1945........... 58, 60
Sources of data...................................................................................................................
127
Sources of earnings............................................................................................................ 52-54
Employees:
Federal Deposit Insurance Corporation....................................................................
29
Insured commercial banks:
Number and salary, December 31, 1945.......................................................... 133, 136
Number and salary, 1941-1945..................................................................... 54, 128-129
Insured mutual savings banks, December 31, 1945...............................................
133
Examinations of banks (see also Assets and liabilities of insured commercial
banks, examiners' appraisal; Capital of banks):
Banks cited for unsafe and unsound practices........................................................
22
Banks examined by the Federal Deposit Insurance Corporation.....................21, 95
Data from reports of examination............................................................................ 121-125
Definition of terms............................................................................................................
121
Effect of war on.................................................................................................................
21
Mutual savings banks...................................................................................................... 21-22
Review of examinations made by Comptroller of Currency and Federal
Reserve banks.......................................................................................................
21
Expenses of banks. See Earnings, expenses, and dividends of insured banks.
Expenses of the Corporation. See Federal Deposit Insurance Corporation.
Facilities provided as agents of the Government.......................................................... 11, 97
Federal bank supervisory authorities. See Bank supervision; Board of Governors
of the Federal Reserve System; Comptroller of the Currency; Federal
Deposit Insurance Corporation.
Federal credit unions..............................................................................................................

25-26

Federal Deposit Insurance Corporation:
Actions on applications from banks. See Applications from banks.
Assessments on insured banks.......................................................................................

8, 63




156

F E D E RA L DEPOSIT IN SU RAN CE CORPORATION
Page

Federal Deposit Insurance Corporation:— Continued
Assets and liabilities........................................................................................ 7, 30-31, 32-33
Audit................................................................................................................................ 26, 30, 83
Banks examined by, and submitting reports t o .....................................................
25
Bank supervision by. See Bank supervision.
Board of Directors....................... ..................................................................................iv, v, 28
Capital..................................................................................................................................
7-8
Depositors protected by. See Banks closed because of financial difficulties.
Disbursements for protection of depositors..................................................... 16, 146-147
Districts................................................................................................................................ vi, vii
Divisions............................................................................................................................... iv, 29
Employees............................................................................................................................
28
Examination of banks. See Examinations of banks.
Expenses............................................................................................................................... 29-32
Income.................................................................................................................................. 29-32
Insured banks receiving financial aid from. See Banks closed because of
financial difficulties.
Insured deposits. See Deposits, insured and otherwise protected.
Liquidation of assets of insured banks in financial difficulties........................... 17-18
Loans to and purchase of assets from insured banks. See Mergers of insured
banks with financial aid of the Corporation.
Losses incurred:
During 1945............................................................................................................ 18, 31, 32
During 1934-1945..............................................................................................32, 146-147
Reserve for........................................................................................................16, 18-19, 33
Officers........... ........................................................................................................... v, vi, 28-29
Organization and staff................................................................................................. iv, 28-29
Payments to insured depositors....................................................................................
145
Policies.................................................................................................................................. 12-14
Potential liabilities............ ...............................................................................................
7 -8
Powers.................................................................................................................................. 12,15
Protection of depositors. See Banks closed because of financial difficulties.
Purchase of assets to facilitate completion of liquidation of banks in
receivership.............................................................................................................
15
Receiver for insured banks............................................................................................ 17, 144
Recoveries from banks in financial difficulties........................................ 18-20, 146-147
Reports from banks..........................................................................................................
25
Reserves for losses.............................................................................................................
7-8
Supervisory activities. See Bank supervision.
Surplus.......................................................................................................................... 7, 8, 30-31
Federal Deposit Insurance Corporation Districts:
Banks classified b y ............................................................................................................
106
States and possessions served........................................................................................vi, vii
Federal Reserve System. See Board of Governors of the Federal Reserve System.
Fixed and miscellaneous assets. See Assets and liabilities of insured commercial
banks, examiners’ appraisal; Assets and liabilities of operating banks;
Receivership, insured banks placed in.
Insolvent or hazardous banks. See Bank supervision; Banks closed because of
financial difficulties; Banks in financial difficulties.
Instalment loans, how reported........................................................................

,

109

Insurance coverage:
Accounts fully insured, special call dates.................................................................. 7, 63
Changes, October 1934 to October 1945...................................................................
64
Insured commercial banks:
By amount of deposits, special call dates..................................................... 65, 66, 69
By class of bank, October 10, 1945......................................................................
74
By percent of deposits insured, 1934-1945......................................................... 69-70
By population of center in which located, October 10, 1945..................64, 74-75
By States, October 10, 1945.................................................................................. 76-77
Distribution of accounts according to size....................................................67, 74, 76
Distribution of deposits according to size of account, Oct. 10, 1945. .65, 75, 77
Percentage increase, Sept. 24, 1941 to Oct. 10, 1945......................................
68




IN D E X

157
Page

Insurance coverage:— Continued
Insured mutual savings banks:
By amount of deposits..............................................................................................73, 78
By population of center in which located, October 10, 1945..................64, 78-79
Distribution of accounts according to size......................................................... 71, 74
Distribution of deposits according to size of account, Oct. 10, 1945. .71, 79-80
Limitation on data on insured deposits, special surveys, 1936-1945........... 78-80
With varying amounts of maximum coverage.........................................................
63
Insured status, banks classified by:
Assets and liabilities o f................................................................................110-111, 114-115
Deposits o f ........................................................................................................................ 106-107
Number o f............................................................................................................................96-107
Insured banks. See:
Absorptions, consolidations, and mergers;
Admissions to insurance;
Assets and liabilities of operating banks;
Assets and liabilities of insured commercial banks, examiners’ appraisal;
Banking offices, establishment of;
Banks and branches ceasing operations;
Banks closed because of financial difficulties;
Capital of banks;
Class of bank, banking data presented by;
Deposits;
Deposits in;
Earnings, expenses and dividends of insured banks;
Employees;
Examinations of banks;
Mergers of insured banks with financial aid of the Corporation;
Mutual savings banks;
Number of operating banks and branches;
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 Corporation.........................

25

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.
Interest. See Earnings, expenses, and dividends of insured banks.
Investments of banks. See Assets and liabilities of insured commercial banks;
examiners’ appraisal; Assets and liabilities of operating banks;
United States Government obligations.
Law, violations of by insured banks..................................................................................
Legislation related to banking and deposit insurance:
Federal, enacted in 1945:
Audit, Government corporations...........................................................................
Government Corporation Control A ct........................................................... 27,
G. I. Loans....................................................................................................................
Lost Government checks................................................................................... 28,
Reorganization Act of 1945.....................................................................................
State, enacted in 1945......................................................................................................

22

26, 83
84-86
26
87-89
26
89-92

Liquidation, banks placed in ................................................................. 14-21, 38, 96, 140-147




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F E D E RA L D EPOSIT IN SU RAN CE CORPORATION
Page

Loans by banks:
Amounts and types. See Assets and liabilities of operating banks.
Changes in type, commercial banks............................................................................ 43-44
Examiners’ evaluation. See Assets and liabilities of insured commercial
banks, examiners’ appraisal.
Interest on. See Earnings, expenses, and dividends of insured banks.
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 Earnings, expenses, and dividends of insured banks.
Of depositors. See Banks closed because of financial difficulties; Receivership,
insured banks placed in.
Of the Federal Deposit Insurance Corporation. See Federal Deposit In­
surance Corporation.
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 in financial difficulties):
Banks cited for unsafe and unsound practices........................................................
22
142
Classification of banks merged.....................................................................................
Collections by Corporation on assets purchased or held as collateral. . . . 146-147
Deposits protected............................................................................................................ 14-15
Disbursements by Corporation......................................................... 18, 142-143, 146-147
Losses incurred by Corporation................................ .............................................146-147
Name and location of bank merged, 1945............. ...................................................
144
Number of banks merged............................................................................15, 142, 143, 147
Procedure............................................................................................................................ 12, 141
Repayments to Corporation........................................................................................146-147
Monopoly in banking.............................................................................................................

12-13

Mutual savings banks:
Insured:
Assets and liabilities, June 30 and December 31, 1945.............................110, 111
Deposits...................................................................................... 78-79, 106-107, 110, 111
Earnings, expenses, and dividends................................................... 132-133, 134-135
Number..........................................................................................................................96-107
Insured and noninsured:
Assets and liabilities, December 31, 1945, December 30, 1944, Decem­
ber 31, 1941............................................................................................................
51
Assets and liabilities, June 30 and December 31, 1945...............................110, 111
Accounts........................................................................................................................
78
Classification................................................................................................................
95
Deposits, by State, December 31, 1945............. .............................................. 106-107
N um ber...................................................................... ...................................................96-107
National banks. See Class of bank, banking data presented by; Comptroller
of the Currency.
Net earnings of insured commercial banks. See Earnings, expenses, and divi­
dends of insured banks.
Net profits of insured commercial banks. See Earnings, expenses, and dividends
of insured banks.
Net sound capital of insured commercial banks. See Capital of banks.
New banks. See Banking offices, establishment of.
Noninsured banks. See:
Absorptions, consolidations, and mergers;
Admissions to insurance;
Assets and liabilities of operating banks;




IN D E X

159
Page

Noninsured banks. See:— Continued
Capital of banks;
Class of bank, banking data presented by;
Deposits;
Number of operating banks and branches.
Number of operating banks and branches:
All banks:
Admissions to insurance................. ....................................................... 10-11, 37-38, 96
Approved for admission to insurance...................................................................
23
Changes during 1945......................................................................................10-11, 96-97
December 31, 1945, by class of bank, FD IC district, and States and
possessions............................................................................................................106-107
June 30 and December 31, 1945..........................................................................110-111
All banks and branches:
Changes during 1945.............................................................................. 10-11, 37, 96-97
Changes during 1941-1945.......................................................................................
37
December 31, 1945, by class of bank and States and possessions. .. .98-105
Banks operating branches.............................................................................................. 98-105
T<fO n n h p o •

Changes during 1945................................................................................................. 96-97
Changes during 1936-1945......................................................... ............................
39
December 31, 1945, by class of bank and States and possessions............. 98-105
Commercial banks:
Admissions to insurance........................................................................................... 96-97
Changes during 1945................................................................................................. 96-97
December 31, 1945, by class of bank, FD IC District, and States and
106-107
possessions..................................................................................................... ..
June and December 31, 1945................................................................................110-111
Insured commercial banks:
Applications approved and disapproved............................................................. 23-24
Call dates, December 31, 1945, June 30, 1945, December 30, 1944. . . .112-113
Changes during 1945................................................................................................. 96-97
December 31, 1935-1945...........................................................................................
11
December 31, 1945, by FD IC district, and States and possessions........ 106-107
Examined in 1945, by amount of deposits..........................................................
125
Operating throughout 1945, by amount of deposits.......................................
137
Mutual savings banks. See Mutual savings banks.
Noninsured banks:
Changes during 1945.................................................................................................. 96-97
December 31, 1945, by class of bank, FD IC district, and States and
possessions............................................................................................................ 106-107
June 30 and December 31, 1945..........................................................................110-111
Unit banks, December 31, 1945, by class of bank and States and possessions. 98-105
Officers, active, of insured banks. See Employees.
Officers and employees of the Federal Deposit Insurance Corporation................

v, 28

Operating banks. See Number of operating banks and branches.
Par clearance of checks. State legislation regarding, 1945.........................................

92

Payments to depositors in closed insured banks. See Receivership, insured banks
placed in.
Polk’s Bankers Encyclopedia, data obtained from ...................................................... 95, 109
Possessions, banks and branches located in:
Deposits o f........................................................................................................................ 106-107
Number o f........................................................................................................ 98, 105, 106, 107
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.




160

F E D E RA L DEPOSIT IN SU R AN C E CORPORATION
Page

Public funds. See Deposits, classified by type of deposit.
Purchase of bank assets by Corporation. See Assets purchased by the Federal
Deposit Insurance Corporation.
Rand McNally Bankers Directory, data obtained from............................................ 95, 109
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..................................................... ........ 16-18, 144
Assets and liabilities of, at dates of suspension, 1934-1945.................................
144
Depositors:
Extent of protection by insurance........................................................ ........ 14-16, 145
Methods of protection............................................................................................... 14-16
Number eligible for protection, paid and unpaid............................................
145
Payments to ......................................................................................................
15-16, 145
Deposits:
Insured, paid and unpaid by December 31, 1945........................................... 17, 145
Not eligible for insurance protection...................................................................17, 145
Paid and unpaid, December 31, 1945................................................................. 17, 145
Secured, preferred, and subject to offset............................................................17, 145
Unclaimed accounts....................................................................................................
15
Uninsured...................................................................................................... ............... 17, 145
Liquidation o f....................................................................................16, 20, 96, 142-143, 144
Losses by Corporation on depositors’ claims paid................................................. 18-19
Name and location of, during 1945.............................................................................
144
Number of banks.............................................................................................................142-143
Payments to depositors...................................................................................................15, 145
Receivers.............................................................................................................. .. .140-141, 144
Sources of data.................................................................................................................140-141
Reconstruction Finance Corporation, capital of insured banks held by:
Amount, total and portion repaid................................................................................
47
Retirements approved by Federal Deposit Insurance Corporation................. 10, 25
Recoveries:
By banks on assets charged off. See Earnings, expenses, and dividends of
insured banks.
By the Corporation on disbursements in closed banks............................. 18, 146-147
Reports from banks.................................................................................................................25, 63
Reserves:
In bank assets and liabilities. See Assets and liabilities of operating banks.
Of Federal Deposit Insurance Corporation..............................................................
Salaries and wages:
Federal Deposit Insurance Corporation.....................................................................
Insured banks. See Earnings, expenses, and dividends of insured banks.

33
31

Savings and time deposits. See Deposits, classified by type of deposit.
Secured and preferred deposits. See Deposits, secured and preferred; Receiver­
ship, insured banks placed in.
Securities (See also United States Government obligations):
Examiners’ appraisal of, method used.......................................................................
Held by Federal Deposit Insurance Corporation...................................................
Held by insured banks placed in receivership, 1934-1945...................................
Held by insured commercial banks. See Assets and liabilities of insured
commercial banks, examiners’ appraisal.
Held by operating banks. See Assets and liabilities of operating banks.
Interest on securities held by banks. See Earnings, expenses, and dividends
of insured banks.
Profits on securities sold by insured banks. See Earnings, expenses, and
dividends of insured banks.
Rate of income on .............................................................................................................




121
32
144

53

IN D E X

161
Page

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..........................................................................................................95, 109
State legislation regarding..............................................................................................
89
States, banking data classified by:
Deposits, December 31, 1945:
Commercial banks, insured and noninsured....................................................106-107
Mutual savings banks, insured and noninsured............................................ 106, 107
Number of operating banks or offices, December 31, 1945:
All banking offices, by class of bank and type of office.................................98-105
All banks..................................................................................................................... 106-107
Commercial banks, insured and noninsured....................................................106-107
Mutual savings banks, insured and noninsured.............................................106-107
Stockholders of banks:
Losses of. See Banks closed because of financial difficulties.
Net profits of insured commercial banks, available for. See Earnings, ex­
penses, and dividends of insured banks.
Substandard assets. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Supervision. See Bank supervision.
Suspensions. See Banks closed because of financial difficulties; Receivership,
insured banks placed in.
Taxes paid by insured banks. See Earnings, expenses, and dividends of insured
banks.
Terminations of insurance for unsafe and unsound practices. See Unsafe and
unsound banking practices.
Time and savings deposits. See Deposits, classified by type of deposit.
Trust companies:
Classification o f..................................................................................................................
95
Number not engaged in deposit banking............................................. 106-107, 110, 111
Unit banks. See Number of operating banks and branches.
United States Government obligations (See also Assets and liabilities of insured
commercial banks, examiners’ appraisal; Assets and liabilities of
operating banks):
Acquired by commercial and mutual savings banks.............................................
41
Comparison of holdings in two world war periods.................................................
42
Held by .all banks, 1914-1945........................................................................................
41
Held by Federal Deposit Insurance Corporation...................................................
32
Held by the banking system, 1941 and 1945........................................................... 40-41
Types and maturities held by insured commercial banks, 1945, 1944, 1941. 44-45
Unsafe and unsound banking practices:
Actions of the Corporation.............................................................................................
Number of banks cited....................................................................................................
Types of, for which banks were cited.........................................................................

22
22
22

Unsecured deposits. See Receivership, insured banks placed in.
Violations of law or regulations...........................................................................................

22

War financing and change in bank assets and deposits..............................................

40-46