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ANNUAL REPORT
OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION
FOR THE YEAR ENDED
DECEMBER 31,1946
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 s it In s u r a n c e C o r p o r a tio n
Washington, D. C., June 27,
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 e P r e s id e n t o f t h e S e n a te
T
he
Sp e a k e r
of
the
H
o u se
of
T.
pro tern
R e p r e s e n t a t iv e s
H a r l,
Chairman
FEDERAL DEPOSIT INSURANCE CORPORATION
FEDERAL DEPOSIT INSURANCE CORPORATION
N ational P ress B uilding — W ashington 25, D . C.
F ield B uilding — C hicago 3, I llinois
BOARD
O F D IR E C T O R S
Chairman.............................................................. ...................... M aple T . H arl
JH. E. C ook
Directors................................................................
(P reston D elano
O F F I C I A L S — J U N E 2 7 , 19 47
W ashington 25, D . C.
Secretary............................................................... ...................... Miss E. F. Downey
Executive Officer......................................................................... Walter F. Oakes (Acting)
Consultant to Board of Directors...................... .................... Nathaniel Dyke, Jr.
Assistant to Chairman........................................
Special Assistant to Chairman............................................... J. Forbes Campbell
Assistant to Director............................................ ......................Albert G. Towers
Associate General Counsel.................................
Chief, Division of Examination.......................
Mutual Savings Bank Adviser.........................
Special Assistant to Board of Directors,
{Federal Credit Union Section)...............
Chief} Division of Research and Statistics , , .................... Florence Helm (Acting)
Director of Personnel...........................................
Chief, Service Division........................................
Librarian................................................................
C hicago 3, I llin o is
Chief, Division of Liquidation.......................... .................... Edward C. Tefft
Fiscal Agent...........................................................
Chiefy Audit Division..........................................
Solicitor................................................................... .................... James M . Kane
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. Lundie W . Barlow
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. A. F. Shafer
(Assistant)
City National Bank
Building, 20 East Broad
Street, Columbus 15, Ohio
Ohio, Pennsylvania
4. Robert N . McLeod
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
FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICTS
District X includes Puerto Rico£ VirginIslands
District 4- includes District of Columbia
District 12. includes Hawaii & Alaska
CONTENTS
Page
Summary.....................................................................................................................................
3
PA R T ONE
OPERATION S AN D POLICIES OF TH E CO RPO R ATIO N
Insurance of bank deposits...................................................................................................
Deposit insurance protection...............................................................................................
Supervisory activities.............................................................................................................
Legal developments.................................................................................................................
Organization and financial statements of the Corporation........................................
7
12
19
24
26
P AR T T W O
B A N K IN G DEVELOPM ENTS
Banks and branches................................................................................................................
Assets and deposits..................................................................................................................
Capital.........................................................................................................................................
Earnings of insured commercial banks.............................................................................
Earnings of insured mutual savings banks......................................................................
43
46
54
57
65
P AR T THREE
SPECIAL REPORTS
Examination of mutual savings banks..............................................................................
Types of deposits in insured commercial banks, 1936-1945......................................
71
79
P A R T FOUR
LEG ISL ATIO N
Federal legislation......... ..........................................................................................................
State banking legislation.......................................................................................................
Regulations of the Corporation...........................................................................................
95
99
102
P A R T FIVE
S TA TISTICS OF BAN KS AN D DEPOSIT INSURANCE
Number, offices, and deposits of operating banks........................................................
Assets and liabilities of operating banks..........................................................................
Examiners’ evaluation of insured commercial banks...................................................
Earnings, expenses, and dividends of insured banks...................................................
Deposit insurance disbursements............................................. ..........................................
ix
106
120
132
138
166
L IST OF CHARTS
Page
Organization chart of the Federal Deposit Insurance Corporation....................
.
iv
Map: Federal Deposit Insurance Corporation districts..............................................
vii
A.
Ratios of total capital accounts of insured banks and the Federal Deposit
Insurance Corporation to total deposits of insured banks, December 31,
1934-1946...........................................................................................................................
11
B.
Number of bank suspensions in three thirteen-year periods, 1908-1946. . . .
13
C.
Percentage recovery and loss on FD IC disbursements in receiverships and
mergers, 1934-1946.........................................................................................................
18
D.
United States Government obligations held by insured commercial banks,
June 30 and December 31, 1941-1946......................................................................
50
E.
Percentage increase during 1946 in total real estate loans of insured com
mercial banks.................................................................................................................
53
L IS T
OF
TABLES
P A R T ONE
OPERATION S AN D POLICIES OF TH E CO RPO R ATIO N
D eposit in su r an c e p r o te c tio n :
1.
Disbursements by the Corporation to protect depositors in insured
banks placed in receivership or merged with the financial aid of the
Corporation, 1934-1946......................................................................................
14
2.
Number of depositors, amount of deposits, recoveries, and losses in
insured banks placed in receivership or merged with the financial aid
of the Corporation, 1934-1946.........................................................................
15
3.
Payment by the Corporation and receivers of deposits in insured
banks placed in receivership, 1934-1946.......................................................
16
4.
Disbursements to protect depositors, recoveries, and losses by the
Corporation from insured banks placed in receivership or merged with
its financial aid, 1934-1946................................................................................
18
S u per viso r y a c t iv it ie s :
5.
Action to terminate insured status of banks charged with engaging
in unsafe or unsound practices or violations of law or regulations,
1936-1946................................................................................................................
20
6.
Actions by the Federal Deposit Insurance Corporation on applications
from banks for admission to insurance, 1935-1946...................................
21
7.
Actions by the Federal Deposit Insurance Corporation on applications
for approval of establishment or continued operation of branches,
1935-1946................................................................................................................
22
O r g an izatio n an d f in a n c ia l statem en ts of th e co rpo ration :
8.
Officers and employees of the Corporation, December 31, 1946..........
27
9.
Income and expenses of the Federal Deposit Insurance Corporation,
calendar year 1946...............................................................................................
28
10.
Income and expenses of the Federal Deposit Insurance Corporation
since beginning operations................................................................................
29
Assets and liabilities of the Federal Deposit Insurance Corporation,
1934-1946................................................................................................................
30
11.
X
LIST OF TABLES
xi
Page
O r g a n iz a tio n and f in a n c ia l s ta te m e n ts o f t h e c o r p o r a tio n — Continued
12.
Assets and liabilities of the Federal Deposit Insurance Corporation,
December 31, 1946, and December 31, 1945..............................................
31
13.
Federal Deposit Insurance Corporation income and surplus state
ment, exclusive of loss and deficit from Federal Credit Union ac
tivities, for the fiscal years ended June 30, 1945 and 1944, and
comparison.............................................................................................................
32
14.
Federal Deposit Insurance Corporation net loss and deficit statement
from Federal Credit Union activities for the fiscal years ended June
30, 1945 and 1944, and comparison...............................................................
33
15.
Federal Deposit Insurance Corporation balance sheet, June 30, 1945
and 1944, and comparison.................................................................................
34
16.
Federal Deposit Insurance Corporation comparative income state
ments for the fiscal years ended June 30, 1946 and 1945— from
Auditors’ Report..................................................................................................
37
17.
Federal Deposit Insurance Corporation comparative balance sheets
June 30, 1946 and 1945— from Auditors’ Report.................................
38
PA R T T W O
B A N K IN G DEVELOPM ENTS
B an ks and br an ch es:
18.
Number of operating banks and branches in United States and pos
sessions, December 31, 1941-1946...................................................................
43
19.
Number of insured and noninsured banks in the United States and
possessions, 1941-1946........................................................................................
44
20.
Changes in the number of insured banks in the United States and
possessions, 1936-1946........................................................................................
44
21.
Changes among branches of insured banks, in the United States and
possessions, 1936-1946........................................................................................
45
A ssets , a n d d e po sits :
22.
Assets and liabilities of all banks in the United States and possessions,
December 31, 1946 and 1945............................................................................
46
23.
Assets and liabilities of all commercial banks and all mutual savings
banks in the United States and possessions, December 31, 1946 and
194 5
47
24.
Maturities of United States Government obligations, direct and
guaranteed, held by insured commercial banks, 1946, 1945, and 1941.
49
25.
Distribution of banks submitting reports to the Federal Deposit
Insurance Corporation according to ratio of obligations of States
and political subdivisions to total capital accounts, December 31, 1946
51
26.
Change in loans and discounts of insured commercial banks during
194 6
52
27.
Change in capital accounts and capital ratios of all commercial banks
and all mutual savings banks during 1946..................................................
54
28.
Distribution of insured commercial banks according to ratio of ad
justed capital accounts to appraised value of total assets, examina
tions in 1946 and 1938........................................................................................
55
29.
Substandard asset ratios of insured commercial banks examined in
1939-1946................................................................................................................
56
30.
Distribution of insured commercial banks according to ratio of sub
standard assets to adjusted capital accounts, examinations in 1946
and 1945..................................................................................................................
56
C a p it a l :
FEDERAL DEPOSIT INSURANCE CORPORATION
xii
Page
E a r n in g s of in su r ed com m ercial b a n k s :
31.
Earnings, expenses, and profits of insured commercial banks, 19341 9 4 6 .................................................................................................................................
57
32.
Percentage distribution of insured commercial banks according to
rate of net profit on total capital accounts, 1938, 194 2 -1 94 6 ................
58
33.
Distribution of insured commercial banks according to ratio of net
profits to total capital accounts and by amount of deposits, 1 9 4 6 . . . .
59
34.
Amounts and rates of income received and interest paid by insured
commercial banks, 1934-1946...............................................................................
60
35.
Average number and average salary of employees of insured com
mercial banks, 1 94 3 -1 94 6 .......................................................................................
61
36.
Rates of charge-offs on assets of insured commercial banks, 1934-1946
63
37.
Rates of net profit, before and after income taxes, and of cash divi
dends to average total capital accounts, all insured commercial banks,
1 93 4 -1 94 6 ......................................................................................................................
64
E a r n in g s of in su r ed m u t u a l savin g s b a n k s :
38.
Amounts and rates of income received and dividends paid by insured
mutual savings banks, 1 9 4 3 -1 94 6 .......................................................................
66
P A R T TH REE
SPECIAL REPORTS
T yp e s of deposits in in su r ed co m m ercial b a n k s , 1936-1945
39.
Accounts fully protected and deposits insured with coverage of
$5,000, $10,000 and $ 2 5 ,0 0 0 ..................................................................................
80
40.
T otal and insured deposits in insured commercial banks, 1936-1945
Grouped by type of deposit..................................................................................
82
41.
Num ber of accounts in insured commercial banks, 1936-1945
Grouped by type of deposit..................................................................................
83
42.
Percentage distribution of deposits of insured commercial banks
according to type of deposit, October 10, 1945
Banks grouped by amount of deposits.............................................................
84
43.
Distribution of demand and savings and time deposits of individuals,
partnerships, and corporations according to size of account, October
10,
1945
Insured commercial banks grouped by amount of deposits.....................
85
44.
Distribution of demand and savings and time accounts of individuals,
partnerships, and corporations according to size, October 10, 1945
45.
Distribution of demand accounts of individuals, partnerships, and
corporations according to size of account, October 10, 1945
Insured commercial banks grouped by State.................................................
88
46.
Distribution of demand deposits of individuals, partnerships, and
corporations according to size of account, October 10, 1945
Insured commercial banks grouped by State.................................................
89
47.
Distribution of savings and time accounts of individuals, partner
ships, and corporations according to size of account, October 10, 1945
Insured commercial banks grouped by State.................................................
90
48.
Distribution of savings and time deposits of individuals, partnerships,
and corporations according to size of account, October 10, 1945
Insured commercial banks grouped by State.................................................
91
Insured commercial banks grouped by amount of deposits....................
86
LIST OF TABLES
xiii
P A R T F IV E
S T A T I S T I C S O F B A N K S A N D D E P O S IT IN S U R A N C E
Page
N u m b e r , o ffices , an d d eposits of o per atin g b a n k s :
Explanatory n ote.....................................................................................................................
101.
Changes in number and classification of operating banks and branches
in the United States and possessions during 1 9 4 6 ......................................
102.
Number of operating banks and branches, December 31, 1946
Grouped according to insurance status and class of bank, and by
State and type of office..........................................................................................
103.
107
108
110
Number and deposits of operating commercial and mutual savings
banks, December 31, 1946
Banks grouped according to insurance status and by district and State
118
A ssets an d l ia b il it ie s of operatin g b a n k s :
Explanatory n ote.....................................................................................................................
121
104.
Summary of assets and liabilities of operating banks in the United
States and possessions, June 29, 1946
Banks grouped according to insurance status and type of bank............
122
105.
Summary of assets and liabilities of operating banks in the United
States and possessions, December 31, 1946
Banks grouped according to insurance status and type of bank............
123
106.
Assets and liabilities of operating insured commercial banks, Decem
ber 31, 1946, June 29, 1946, and December 30, 1 9 4 5 ................................
124
107.
Summary of assets and liabilities of operating banks in the United
States and possessions, 1944-1946
Banks grouped according to insurance status and type of bank............
126
108.
Assets and liabilities of operating insured commercial banks, call
dates, 1941-1946.........................................................................................................
128
109.
Percentage distribution of assets and liabilities of operating insured
commercial banks, call dates, 1941-1946.........................................................
129
110.
Assets and liabilities of all operating banks in the United States and
possessions, December 31, 1946
Banks grouped by district and State................................................................
130
E x a m in e r s ’ e v a l u a t io n of in su r ed commercial " b a n k s :
55 Explanatory n ote.....................................................................................................................
133
fill.
Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1939-1946......................................................
134
112.
Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1946
Banks grouped according to amount of deposits.........................................
135
|gf 113.
Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1946
Banks grouped by Federal Deposit Insurance Corporation district and
State.............................................................................................................................
136
E a r n in g s , e x p e n s e s , a n d d ivid en d s of in su r ed b a n k s :
Explanatory n o te .....................................................................................................................
139
114.
Earnings, expenses, and dividends of insured commercial banks, 1934,
1 94 1 -1 94 6 ......................................................................................................................
140
115.
Ratios of earnings, expenses, and dividends of insured commercial
banks, 1934, 1941-1946...........................................................................................
142
x iv
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
E a r n in g s ,
D
expenses, and
d iv i d e n d s
o f in s u r e d
b a n k s — Continued
116.
Earnings, expenses, and dividends of insured banks, 1946
B y class of bank................................................................................................
144
117.
Ratios of earnings, expenses, and dividends of insured banks, 1946
B y class of bank................................................................................................
146
118.
Earnings, expenses, and dividends of insured commercial banks
operating throughout 1946
Banks grouped according to amount of deposits.......................................
148
119.
Ratios of earnings, expenses, and dividends of insured commercial
banks operating throughout 1946
Banks grouped according to amount of deposits.......................................
150
120.
Amounts and ratios of earnings, expenses, and dividends of insured
commercial banks, by State, 1946..................................................................
152
121.
Earnings, expenses, dividends, and assets and liabilities of insured
mutual savings banks, 1934, 1941-1946........................................................
162
122.
Ratios of earnings, expenses, and dividends of insured mutual savings
banks, 1934, 1941-1946.................................................................................. ! .
e p o s it
in s u r a n c e
164
d is b u r s e m e n t s :
Explanatory note...............................................................................................................
167
123.
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,
1934-1946
Banks grouped by class of bank, year of disbursement, amount of
deposits, and State............................................................................................
168
124.
Assets and liabilities of insured banks placed in receivership and of
insured banks merged with the financial aid of the Federal Deposit
Insurance Corporation, 1934-1946
A s shown by books of bank at date of closing ............................................
170
125.
Depositors and deposits of insured banks placed in receivership, 19341945
A s shown by books of F D IC , December 31, 1946....................................
171
126.
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,
1934-1946
A s shown by books of F D IC , December 81, 1946....................................
172
SUMMARY
Sum m ary
Federal insurance of bank deposits, inaugurated January 1, 1934,
developed under favorable circumstances in the succeeding 13 years
(p. 7). The Corporation made disbursements of $262 million to protect
1,300,000 depositors with total deposits of $505 million, in the 399 banks
which required aid from the Corporation. The Corporation’s ultimate
loss on these disbursements is expected to be less than $29 million.
At its establishment the Corporation was provided by Congress with
an original capital of $289 million. During its 13 years of operation, its
net worth has grown through the accumulation of surplus to a total of
$1,058 million, or 71/100 of 1 percent of total deposits of insured banks
(p. 30). The Corporation proposes that provision be made for the orderly
repayment to the Treasury of the original capital investment (p. 11).
Insured banks with few exceptions have disposed of or charged off
practically all of the substandard assets which they held in 1934 (p. 7).
The high level of business activity of recent years which contributed to
these favorable results, also resulted in a much more rapid growth of
assets and deposits than of the capital in banks (p. 8). As a result, their
capital cushion has declined to an alarming extent.
During 1946 total bank assets and deposits declined as a result of the
Federal debt retirement program (p. 46). Loans and deposits of business
and individuals rose substantially, however. As a result of the larger
volume of loans and higher average rate of income on loans, earnings of
insured commercial banks rose 15 percent to the highest levels on record
(p. 57). Net profits after taxes amounted to 10 percent of the total capital
accounts. The improvement in rates of net profits in 1946 over preceding
years was widespread (p. 58). In 1946, as in each year for a number of
years, more banks had satisfactory and high rates of net profit, and fewer
banks had losses or unsatisfactory rates of net profit.
Dividends were conservative in 1946 as in each year since the banking
crisis of 1933; as a result the retained earnings provided substantial net
additions to total capital account (p. 65). If banks are to continue to
assume the greater risks inherent in meeting increased loan needs of
business and individuals, additional capital stock should be sold to the
public (p. 10).
During the year, the Corporation instituted a new method of de
termining the condition of mutual savings banks. The new technique of
examination provides a more satisfactory classification of assets and more
adequate provision for losses, and places less emphasis than formerly
upon current market value of assets (p. 71).
3
PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION
In surance
of
Bank
D e p o s it s
In 1946, for the second consecutive calendar year, no bank depositorexperienced a loss as a result of banking difficulties. No insured bank
has been placed in receivership since M ay 1944. One bank which en
countered financial difficulty in 1946 was merged with another insured
bank as a result of assistance given by the Federal Deposit Insurance
Corporation. In this bank, as in the case of the one merger in 1945, and
the one in 1944, banking services were continued in the community
without interruption and without loss to any depositor.
During the thirteen years of the Corporation’s existence, 1934-1946,
399 insured banks experienced financial difficulties which required
disbursements by the Federal Deposit Insurance Corporation to protect
their depositors. More than one-half of the 399 banks were closed during
the first five years of the Corporation’s operation, and many of these
had been in a weak condition when admitted to insurance. Following
the indicated intent of Congress, the Corporation, upon its establishment,
admitted to insurance all applicant banks with assets equal to their
liabilities. Some of these banks were unable to continue operating in a
satisfactory manner.
The 399 banks requiring aid from the Corporation had total deposits
of $505 million; the Corporation disbursed $262 million to protect
1,300,000 depositors. It is estimated that the Corporation’s ultimate loss
will be less than $29 million.
Banking developm en ts, 1934-1946. The program of Federal in
surance of bank deposits inaugurated January 1, 1934, has developed
since that time under favorable circumstances. With the exception of
1937, banks continuously expanded both their deposits and their assets
until the close of 1945. From 1942 to 1945 the rate of expansion was
exceptionally rapid as a result of war conditions. In 1946 a decline oc
curred in total bank deposits and assets but was confined almost entirely
to banks in the financial centers of New York and Chicago., The decline
in these banks resulted from Government withdrawals from its war loan
accounts and redemption of United States Government obligations in
carrying out the program of debt reduction. Deposits of individuals,
partnerships, and corporations, and the loans of insured banks, both
increased during 1946.
By the end of 1946 insured banks, with few exceptions, had sold or
charged off most of the substandard assets which they held in 1934.
Unfortunately, not all banks have been able to remove all substandard
assets from their portfolios, and a few banks have tended to increase
their holdings of substandard assets, both loans and investments. Until
7
8
FEDERAL DEPOSIT INSURANCE CORPORATION
the end of 1945 types of assets carrying comparatively little risk were
increased in proportion to total assets. At the close of 1945, 78 percent
of the assets of all insured banks consisted of cash and United States
Government obligations; during 1946, this ratio declined to 72 percent
because of the increase in loans and decrease in holdings of United States
Government obligations. The remaining assets of insured banks, for the
most part, were considered acceptable for bank investment.
As a result of the criterion used in admitting banks to insurance, when
the Corporation began operations, many banks which had little or no
capital after adjustment for losses became insured. However, more than
5,600 of the 14,000 insured banks were strengthened by the addition of
about $1 billion to their capital accounts through the Reconstruction
Finance Corporation. Since that time insured banks have retired more
than four-fifths of this investment, and at the same time have increased
their total capital accounts from $6.3 billion to $10.5 billion.
The increase in bank capital was largely the result of the retention of
profits made possible by a favorable earnings situation. An appreciable
part resulted from the sale of stock to individuals by forward-looking
banks. During the first two years of deposit insurance the earnings and
profits of insured banks were markedly affected by the necessity of writing
off large amounts of substandard assets which had been previously
acquired. Since 1935, however, the earnings and profits position of the
banks has greatly improved. In 1946, as in 1944 and 1945, the net profits
of insured banks averaged about 10 percent of their total capital accounts.
The conditions just described, which in general were favorable, do not
give the full picture. Some unfavorable conditions in the banking structure
have developed or have continued to exist. One condition which is still
unsatisfactory though more favorable than in former years, is the holding
of substandard assets by certain banks. Some insured banks still have
relatively large amounts of such assets. Another condition which has not
improved sufficiently is the protection provided by the banks against
losses from defalcation. With the exception of the banks which were in
a very weak condition at the time they became insured in 1934, defalca
tions have been responsible for the difficulties of a large proportion of
the banks requiring the financial assistance of the Corporation. Bank
assets have doubled in amount during the past five years, and every
bank should examine the adequacy of its fidelity insurance. Each bank
should survey its present risk of loss, install proper internal controls, and
purchase insurance sufficient in amount to cover any probable loss.
By far the most unfavorable situation which has developed among
banks is a decline in the ratio of capital to assets. The capital accounts
have not grown nearly as rapidly as assets and deposits. The ratio of total
capital accounts to total assets declined for all insured banks from 13.2
percent at the close of 1934 to 6.5 percent at the close of 1946. For a
INSURANCE OF BANK DEPOSITS
9
time the seriousness of this decline was somewhat obscured by the fact
that the proportion of bank assets bearing relatively little risk— cash
and United States Government obligations— was increasing. Much
emphasis has been placed upon this change in the character of bank
assets, and the improvement which occurred in the early 1940’s in the
ratio between bank capital and assets other than cash and United States
Government obligations. However, the ratio of total capital accounts of
insured banks to their assets other than cash and United States Govern
ment obligations turned downward in 1944 and declined further both in
1945 and in 1946. At the end of 1946 this ratio was less than 24 percent,
the lowest reported since the beginning of deposit insurance except in 1941.
The decline in the ratio of bank capital to so-called “ risk assets” is
the result primarily of the fact that the banks have been meeting the
demands made upon them for credit. During 1946, the first full year
after the cessation of active combat of World War II, no delay because
of inadequate banking service hindered reconversion from production
for war to production for peace-time consumption. Bank loans on real
estate increased 34 percent, commercial and industrial loans 48 percent,
and consumer loans 71 percent. The aggregate amount of these types
of loans held by all insured banks increased from less than $20 billion
at the beginning to more than $28 billion at the close of 1946.
The demand for an increasing volume of business and individual loans
probably will continue. Further commercial and industrial loans will be
needed as business enterprises expand their plants and add to their
materials in process and their inventories of finished goods. Many busi
nessmen will soon exhaust the liquid assets they accumulated during the
war. Individuals will seek additional credit when more durable goods, such
as automobiles, farm implements, electric refrigerators, and washing
machines, are available. The demand for real estate loans will increase
for the construction of both homes and commercial buildings— offices,
hotels, and theaters— when materials and workers can be secured more
readily. Banks are in a position to meet reasonable demands on them
for credit.
Obligations issued by States and minor subdivisions of government
are also likely to increase, and insured banks should be in a position to
assist with this financing. Large capital outlays will be needed to re
habilitate municipal facilities and services which deteriorated materially
during the war, and to make up deficiencies resulting from population
growth. Especially in metropolitan communities the solution of urgent
problems, such as transportation and housing, will require large ex
penditures for new community facilities. A substantial volume of mu
nicipal financing for airport construction is in prospect. Furthermore,
major improvements to the highway system and additional facilities for
the school system cannot be delayed much longer. Payments to veterans
10
FEDERAL DEPOSIT INSURANCE CORPORATION
in the form of special compensation for military service will entail bond
issues.
One of the chief reasons for the existence of banks is to supply the
credit needed in the economy. To do this, banks must have capital
accounts sufficiently large to warrant assumption of the risks involved.
Banks have been adding to their capital from retained earnings, but the
growth has been much too slow in the light of the credit needs of the
present time and the forseeable needs of the future. New capital stock
should be sold to the public to hasten the accumulation of capital com
mensurate with the added risks which banks are assuming in meeting
the loan needs of business and individuals. In addition, the remaining
capital supplied by the Reconstruction Finance Corporation should be
promptly replaced by capital furnished by individuals. The excellent
earnings of the past three years should prove sufficient inducement for
the investing public to purchase bank stock.
Position of the Corporation. The thirteen years which were favorable
for banking operations were also advantageous for the firm establishment
of the Federal Deposit Insurance Corporation. In the banking history of
the United States, periods of small banking losses have on several oc
casions followed periods of large banking losses. Since the banking
holiday of 1933 banking losses have been small, and the Corporation has
accumulated a surplus of $769 million. Its total income has amounted
to $844 million, $671 million from assessments paid by insured banks
and $173 million chiefly from income on investments. Its operating costs
and losses for the period amounted to $75 million.
No real test has occurred to show the demands wiiich may be made
upon the resources of the Corporation in a severe or lengthy period of
declining bank deposits, production, and employment. The business
depression which occurred in 1937 and 1938 was followed by increased
demands on the Corporation in 1939 and 1940. It is imperative that the
financial position of the Corporation be strong enough so that all bank
depositors will be convinced that the Corporation can discharge any
obligations which may result from a period of adversity. Depositors
should not only be assured of protection from loss as provided by law,
but should also be assured that they will not be deprived of the use of
their deposits for more than a few days.
The Federal Deposit Insurance Corporation has been given the respon
sibility by Congress of protecting bank depositors. The first line of
protection for deposits in any one bank is the capital of that bank. In
individual cases this line of protection may become insufficient. The
resources of the Federal Deposit Insurance Corporation are mobile and
are available to supplement the protection given depositors by bank
capital whenever any bank is unable to meet the claims of its depositors.
The capital funds of the Corporation therefore add to the protection
INSURANCE OF BANK DEPOSITS
11
afforded by bank capital. Maintenance of complete confidence of de
positors in the banking system is necessary to prevent panic withdrawals
of deposits. Such withdrawals in the past have affected adversely strong
as well as weak banks.
Chart A indicates the change since 1934 in the capital bulwark—
including both the capital of the individual banks and that of the Federal
Deposit Insurance Corporation— which protects depositors. The chart
shows for December 31 of each year the ratio of the total capital accounts
of insured banks and that of the Corporation to the total deposits of the
banks.
CHART
A
RATIOS OF TOTAL CAPITAL ACCOUNTS OF INSURED BANKS AND THE
FEDERAL DEPOSIT INSURANCE CORPORATION TO TOTAL DEPOSITS
OF INSURED BANKS, DECEM BER 31,1934-1946
The bankers who obtain the profits from the business of supplying
the nation with the larger part of the circulating medium and with a
large portion of the credit which is needed in the conduct of business
should supply all the capital which is required by the banking business.
To do this, they must not only strengthen the capital structure of their
banks but also replace the capital invested by the Federal Government
and the Federal Reserve banks in the Federal Deposit Insurance Cor
poration. This Corporation has recommended legislation authorizing
repayment to the Treasury and to the Federal Reserve banks of the capital
initially subscribed by them in 1933, provided that the surplus of the
Corporation accumulated from the assessments paid by the banks is
maintained at an amount adequate to meet deposit insurance
requirements.
Not until the capital stock of the Corporation has been repaid and an
adequate insurance fund accumulated should consideration be given to
12
FEDERAL DEPOSIT INSURANCE CORPORATION
the possibility of reducing the assessment from its present annual rate of
1/12 of 1 percent of total deposit liabilities. As long as bank earnings
remain high the banks should continuously add to the capital accounts
which protect their depositors—both to the capital of individual banks
and to the more mobile funds of the Federal Deposit Insurance Cor
poration. Such provision is necessary in order for the banking system to
be in a position to meet potential losses.
Provision for handling banks in financial difficulty. The ex
perience of the Corporation during the thirteen years of its existence
indicates that its losses^-can be reduced, and those of depositors fully
averted, by extending its aid to a bank without placing the bank in
receivership. The use which has been made of this procedure is described
on pages 14-15 and 17-18. Under the present law this kind of procedure
can be followed only when the merger of a bank in difficulty with another
bank can be facilitated. The Corporation recommends that it be au
thorized to purchase assets from an insured bank in financial difficulty,
without the requirement of a merger, whenever such action will reduce
the risk or avert a threatened loss to the Corporation.
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 1946 no insured bank was placed in receivership and only one
bank received assistance from the Corporation to protect its depositors.
When this bank was merged with an established insured bank, its de
positors with balances aggregating $316,000 experienced no loss, not
even the inconvenience of a break in banking services. The Corporation
advanced $265,000 which, with the acceptable assets taken over by the
absorbing bank, fully covered the liabilities assumed.
Since the Federal Deposit Insurance Corporation began operations on
January 1, 1934, 402 banks have closed because of financial difficulties.
Three of these banks subsequently reopened or were taken over by
other insured banks without financial aid from this Corporation. Dur
ing the past four years, business failures in general have been few and
only ten banks were closed because of financial difficulties. The vast
amount of money spent during the war period has enabled business
concerns to remain solvent regardless of efficiency or business acumen.
But with the return of peacetime conditions, business operations are
subject to more normal risks, and business failures are beginning to
increase. Bank assets are also becoming subject to greater risk and
therefore bank failures may also increase.
Chart B shows the number of bank suspensions during the period
since establishment of the Corporation compared with two preceding
periods of equal length: 1908-1920, covering the period from the financial
panic of 1907 to the close of World War I and its postwar boom; and
DEPOSIT INSURANCE PROTECTION
13
1921-1933, covering two severe business depressions and an intervening
plateau of prosperity. The figure for bank suspensions since establishment
of the Corporation does not include 154 banks merged with other in
stitutions through the financial aid of the Corporation. Without this aid
most of these undoubtedly would have had to suspend operations. Bank
suspensions during the entire period of operation of the Corporation
were fewer than in any one of the years in the period, 1921-1933, preceding
the establishment of the Corporation. In many respects, however, the
past thirteen years are more comparable with the period of 1908-1920,
than with the period just prior to establishment of the Corporation. The
early parts of both the 1908-1920 and 1934-1946 periods were times of
recovery from financial panic; the later parts of both periods were times
of war and immediate post-war expansion.
C H AR T 8
NUMBER OF BANK SUSPENSIONS IN THREE THIRTEEN-YEAR PERIODS
1908-1946
NUMBER OF BANKS
NUMBER OF BANKS
14
FEDERAL DEPOSIT INSURANCE CORPORATION
Methods of protecting depositors. The Federal Deposit Insurance
Corporation 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 ad
vances to facilitate mergers of insolvent insured banks with other in
stitutions. The latter procedure has proved more advantageous than the
former. A receivership may disrupt the economic life of the community;
the merger procedure avoids this and enables business to continue with
little or no deviation from normal routine.
Table 1 shows by years the use which has been made of each method
of protecting depositors. During the first six years of the Corporation’s
operations, more banks were placed in receivership than were merged
with the aid of the Corporation; during the past seven years more have
been merged. No insured bank has been placed in receivership since
May 1944.
T a b le 1 .
D i s b u r s e m e n t s b y t h e C o r p o r a t i o n t o P r o t e c t D e p o s i t o r s in
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 o r M e r g e d w i t h t h e
C o r p o r a t i o n , 1934-1946
F i n a n c i a l A id o f t h e
Amount of disbursements1
(in thousands of dollars)
Number of banks
Year
Placed in
receiver
ship
Total
Merged
Total
Insured
Loans made
deposits paid and assets
in receiver
purchased
in mergers
ships
T o ta l.................................
399
245
154
$262,133
$87,034
$175,099
1946................................
1945................................
1944................................
1943................................
1
1
2
5
1
4
1
1
1
1
265
1,768
1,515
7,217
399
5,500
265
1,768
1,116
1,717
1942................................
1941................................
1940................................
1939................................
20
15
43
60
6
8
19
32
14
7
24
28
10,958
23,880
74,380
67,804
1,612
12,278
4,895
26,196
9,346
11,602
69,485
41,608
1938................................
1937................................
1936................................
1 9 3 5 . . . . .......................
1934................................
74
75
69
25
9
50
50
42
24
9
24
25
27
1
30,480
19,202
14,833
8,890
941
9,087
12,045
8,056
6,025
941
21,393
7,157
6,777
2,865
1 Does not include expenses of $38,993,000 incident to the disbursements.
During the first 13 years of its operation the Corporation protected
over 1,300,000 depositors in 399 closed insured banks with total deposits
of $505 million. In giving this protection the Corporation made principal
disbursements of $262 million. Only about 3*,000 depositors who filed
claims against the 245 banks placed in receivership will sustain any loss
and their loss will be less than $2.5 million, or about 2 percent of the
deposits in these receivership cases. All of the depositors in the 154 banks
which were merged were fully protected.
15
DEPOSIT INSURANCE PROTECTION
Data on deposits and depositors in insured banks placed in receiver
ship or merged with the financial aid of the Corporation are given in
Table 2.
T a b le 2 .
L osses
N
in
umber
of
D
e p o s it o r s ,
A mount
Insured B a n k s P laced
the
F i n a n c i a l A id
in
of th e
Item
of
D
e p o s it s ,
R e c e iv e r s h ip
or
R e c o v e r ie s ,
M
erged
and
w it h
C o r p o r a t i o n . 1934-1946
Banks placed
in
receivership
Total
Banks merged
with financial
aid of F D IC
Number of banks............
399
245
154
N u m b e r o f d ep o sito rs .
1,313,351
382,756
930.595
1,261,121
2,978
330,526
2,978
930.595
Estimated number with no loss...................................
Estimated number with some loss1.............................
Estimated number with claims barred by termina
tion of insurance or receivership.............................
A m o u n t o f d ep osits.
Estimated recovery by depositors..........
Estimated loss b y depositors1.................
Insurance terminated or claims barred .
49,252
49,252
$505,246,000
$109,592,000
$395,654,000
502,494,000
2,310,000
442,000
106,840,000
2,310,000
442,000
395,654,000
Disbursement b y F D IC .
$262,133,000
$ 87,034,000
$175,099,000
Estimated loss to F D IC .
$ 28,896,000
$ 16,579,000
$ 12,317,000
1 1,584 depositors will lose an estimated $2,268,000 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. Whenever the Corporation is
notified by the Comptroller of the Currency or by a State banking
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 ex
plaining 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.
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 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 for repayment
entirely upon a proportionate share of the proceeds of liquidation. Table 3
shows the amount of deposits which had been paid by the Corporation
or by receivers and the amount remaining unpaid on December 31, 1946.
16
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 3.
Paym ent
by
Insured B
the
anks
C o r p o r a t io n
P laced
in
R
and
R
e c e iv e r s
e c e iv e r s h ip ,
of
D
e p o s it s
in
1934-1946
(Amounts in thousands of dollars)
Status of deposits
Total
Paid by
Dec. 31,
1946
Unpaid on
D ec. 31,
1946
Deposits— to ta l.........................................................
$109,592
$106,715
$2,877
Insured ......................................................................
Secured, preferred, and subject to offset..........
In excess of $5,000, not otherwise protected. .
Other uninsured.......................................................
Insurance terminated or claims barred1............
87,119
11,403
9,692
936
442
87,034
11,402
7,340
894
45
2,352
42
397
Deposits, terminated receiverships— total
Insured ..................................................................
Secured, preferred, and subject to offset___
In excess of $5,000, not otherwise protected
Other uninsured. . ...............................................
Insurance terminated or claims barred1........
$56,750
45,084
6,975
4,345
194,
15Z
$55,818
45,084
6,975
3,562
152
45
$932
Deposits, active receiverships— to ta l...........
Insured..................................................................
Secured, preferred, and subject to o ffse t.. . .
In excess of $5,000, not otherwise protected
Other uninsured.................................................
Insurance terminated or claims barred.........
$52,842
42,035
4,428
5,347
742
290
$50,897
41,950
4,427
3,778
742
$1,945
85
85
1
783
42
107
1
1,569
290
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 in most
States may be appointed receiver or liquidator for closed State banks.,
In the past 13 years the Corporation has served as receiver for 21 national
and 56 State banks. Most of these receiverships have been terminated.
At the close of 1946 the Corporation was receiver for 6 national banks
with deposits at closing of $9 million and for 8 State banks with deposits
of $6 million.
The Corporation also has been kept informed on the progress of
liquidation of the 168 State banks for which it was not receiver. By
agreement with State banking authorities the Corporation obtained
during the year quarterly reports from the receivers or liquidators of
the remaining 26 State banks in which deposit insurance payments had
been made, but for which the Corporation was not receiver. These 26
banks had deposits of $38 million at the time of failure.
The Corporation at competitive public sale sometimes buys the
residue of the assets from the receiver. This reduces the expenses 5f
liquidation and expedites the termination of receiverships. At the end of
1946, $1.2 million had been disbursed to purchase assets from the re
ceivers of 65 banks. Most of these assets had been liquidated by the
Corporation without a net loss.
By December 31, 1946, the Corporation had recovered $70 million
of the $87 million which had been paid to depositors in insured banks in
receivership. It was estimated that almost $1 million additional would
DEPOSIT INSURANCE PROTECTION
17
be recovered and that losses would amount to $16.6 million. In addition,
interest amounting to over a quarter of a million dollars had been col
lected by the Corporation on subrogated claims.
Advances to facilitate mergers. Under the Banking Act of 1935 the
Corporation was given the power to make advances to facilitate the
merger or consolidation (including 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 effecting a consolidation, acceptable assets of the
merged 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 assumed by the absorbing bank.
When the transaction is completed, the Corporation sends a letter to
each depositor explaining what has occurred.
Assets unacceptable to the absorbing banks are taken by the Cor
poration to secure its advances. Due to increases in market prices of
most bank assets, the Corporation has been able to dispose of those
which it acquired almost without loss. Assets acquired in the next few
years may decline in price as the Corporation seeks to liquidate them.
From 1935 to 1940 an advance was usually made by the Corporation
through the extension of a loan to the insolvent bank secured by the
unacceptable assets. More than 100 such loans were made. In connection
with these loans some assets were purchased at the time the loan was
made and other assets were purchased to facilitate its termination. During
1939 and 1940 a new technique for making' advances was developed.
Assets were purchased under an arrangement whereby additional payment
was to be made to the 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 technique has been used exclusively in the mergers
which have taken place since 1941. In each of the last four years one
merger has been consummated.
Recoveries and losses in receiverships and mergers. Table 4 shows
the disbursements, recoveries, and losses of the Corporation to December
31, 1946, from insured banks placed in receivership, and from those
merged with its financial aid. The recoveries in receiverships from the
beginning of the Corporation’s operations through 1946 have amounted
to $69.7 million, or 80 percent of disbursements, with estimated additional
recoveries of $0.9 million, or 1 percent of disbursements. In mergers,
recoveries have amounted to $158.5 million, or 91 percent of disburse
ments, with estimated additional recoveries of $4.2 million, or 2 percent.
Estimated losses in receiverships are 19 percent and in mergers 7 percent
of disbursements; in the two groups together, 11 percent of disbursements.
18
FEDERAL DEPOSIT INSURANCE CORPORATION
T able 4.
L o sses
D
is b u r s e m e n t s
by
th e
R e c e iv e r s h ip
to
P rotect D
C o r p o r a t io n
or
M
erged
fr om
w it h
e p o s it o r s ,
R e c o v e r ie s ,
In su red B a n k s P laced
it s
F in a n c ia l A id ,
and
in
1934-1946
(Amounts in thousands of dollars)
B ook entry D ec. 31, 1946
Total
D isbursem ents.
R eceiverships..
Mergers.............
$262,133
87,034
175,099
Liquidation
terminated
Liquidation
active
$66,824
45,084
21,740
$195,309
41,950
153,359
$57,927
36,861
21,066
$170,294
32,811
137,483
Estimated additional disbursements in receiverships1.
$85
Recoveries......................................................................................
Receiverships..............................................................................
Mergers.........................................................................................
$228,221
69,672
158,549
Estimated additional recoveries.
Receiverships....................................
M ergers..............................................
$
Losses by FDIC2.
Receiverships. . .
M ergers...............
$ 28,896
16,579
12,317
$ 8,897
8,223
674
$ 19,999
8,356
11,643
399
245
154
281
205
76
118
40
78
Number of banks.
Receiverships. . . .
Mergers.................
$85
$
5,101
868
4,233
5,101
868
4,233
1 Estimated additional disbursements in receiverships are the insured deposits which have not been
paid. See Table 3.
2 Losses in terminated cases are the established losses* those in active cases are estimated.
In Chart C are presented the Corporation’s recovery, estimated
additional recovery, and estimated loss under the two methods used to
protect bank depositors from loss.
chart
c
PERCENTAGE RECOVERY AND LOSS ON FDIC DISBURSEMENTS
IN RECEIVERSH IPS AND MERGERS, 1934-1946
............. 1
--- ------- f'"
"
T
1
1
R E C E IV E R S H IP S
1
,i ^
RECOVERY TO DEC.31 1 9 4 6
40
1
|
60
PE R C E N T OF D I S B U R S E M E N T S
r
T
ESTIMATED
ADDITIONAL
RECOVERY^
1
ESTIMATED
LOSS x
\
100
DEPOSIT INSURANCE PROTECTION
19
There is no loss whatsoever to depositors in those banks which have
been merged with other financial institutions. In receiverships, there was
sometimes a loss of money for those depositors with accounts in excess of
$5,000, those restricted or deferred, and those whose insurance has been
terminated or barred because of failure to file claims within the legal
time limit. In individual cases these losses have been small.
Su 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 make regular annual examinations of each insured
State bank which is not a member of the Federal Reserve System; to
make such additional and special examinations of these banks as the
Corporation’s interests appear to require; and with the prior consent of
the Comptroller of the Currency or the Board of Governors of the Federal
Reserve System, to make such examinations of national banks or State
banks members of the Federal Reserve System as special deposit insurance
considerations appear to require.
In 1946 the Corporation was again unable to conduct all the examina
tions called for under its established policy. This was because of a con
tinued shortage of examining personnel. The number of regular
examinations completed, 5,353, compares with 5,284 made in 1945 and
represents 83.5 percent of the number required to meet a full year’s
program. As in 1945, the amount of examiners’ time spent in investigating
new bank proposals was heavy.
At the beginning of the year, the Corporation had a serious deficiency
in the number of examiners and assistants considered necessary to the
carrying out of a full examination program. During the year 86 assistant
examiners were recruited and 75 examiners and assistants either returned
from military furlough or were transferred from' other divisions of the
Corporation. This increase was offset in part by the loss of 70 men through
resignations and separations for various other reasons, so that the number
of examiners and assistants at the close of the year was still considerably
under the number required. Recruiting efforts were retarded throughout
the year by the fact that only temporary appointments were possible
under Civil Service regulations. Many qualified prospective applicants
were unwilling to abandon their employment to accept appointment
with the Corporation on this basis. Correction of this situation is expected
in 1947 with reestablishment of the procedure for permanent appointment
of assistant examiners which was discontinued at the beginning of the
war. The Corporation’s 1947 examination record will depend to a con
siderable degree upon the time when this procedure is again put into
operation.
20
FEDERAL DEPOSIT INSURANCE CORPORATION
In July 1946 the Corporation instituted an improved method of
examination of mutual savings banks. A description of this method of
examination is given in Part Three of this report.
Unsafe and u n sou n d ban kin g practices and violations o f law or
regulations. During 1946 proceedings were initiated against one insured
bank for engaging in unsafe and unsound banking practices and were
continued against four other banks. The bank against which proceedings
were initiated was charged with continued violation of law to which it
was subject, with the maintenance of lax lending and collection policies,
and with continued operation in an extended condition and by a selfserving and hazardous management. Of the five cases, corrections were
made in two banks; the other three were pending at the close of the 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 5.
Table 5.
w it h
A
c t io n
E n g a g in g
to
in
of
T e r m in a t e I n s u r e d St a t u s
U n safe
Law
or
or
of
U n s o u n d P r a c t ic e s
B a n k s C h arged
or
V
io l a t io n s
R e g u l a t i o n s , 1936-1946
Disposition or status
T o ta l b a n k s a g a in st w h ic h a c t io n was t a k e n ...................
Cases c lo s e d :
Corrections m ade.........................................................................
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 termination of
insured status by Corporation..........................................
Banks absorbed or succeeded by other banks:
W ith financial aid of the Corporation................................
W ithout financial aid of the Corporation..........................
C ases p e n d in g D e c e m b e r 31, 1946:
Corrective program pending.....................................................
Recapitalization program pending...........................................
Action deferred pending examination.....................................
Total
cases
1936-19461
Pending
beginning
of 1946
Started
during
1946
132
4
23
2
1
7
3
32
60
4
1
1
1
1
1
1
1 N o 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 for 1945, p. 22.
A pproval o f banks for insurance. During 1946 the Corporation
approved the applications of 157 banks for admission to insurance. Of
these, 109 were new banks, including one which reopened after having
been inactive and six which succeeded branches of other banks. The
remaining 48 banks approved for insurance consisted of thirty banks or
successors thereto which were operating as noninsured banks at the
beginning of the year and eighteen insured banks which obtained new
charters or withdrew from the Federal Reserve System and applied for
21
SUPERVISORY ACTIVITIES
insurance as banks not members of that System. In addition, the Cor
poration approved applications of six insured banks previously engaged
only in certain banking functions, which wished to change their business
to that of regular banks of deposit and discount or to .engage in a special
type of banking or fiduciary business. Eleven applications for admission
to insurance were disapproved because, in the opinion of the Board of
Directors, the conditions specified in the deposit insurance law were
not met. One application was approved and later rescinded because the
bank changed its plans.
The number of banks approved for insurance in a year differs from the
number admitted. Some new banks approved for insurance are not opened,
or the effective date of insurance is delayed for other reasons, 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 without action by the Corporation. For
changes during 1946 in the number of insured banks, see page 44.
The total number of applications for admission to insurance acted
upon by the Corporation during each year since the beginning of the
permanent plan of deposit insurance on August 23, 1935, together with
the final action of the Corporation on these cases, is given in Table 6.
T a b le 6 .
A
c t io n s
A p p l ic a t io n s
by
fr om
the
Federal D
B anks
for
e p o s it
A d m i s s io n
I n s u r a n c e C o r p o r a t io n
to
on
I n s u r a n c e , 1935-1946
Number of applications1
Year
Acted
upon
A pproved2
Approved
but later
rescinded
Dis
approved
1935-1946..................................................................
1,346
1,162
41
143
1946........................................................................
1945........................................................................
1944........................................................................
1943........................................................................
175
124
108
198
163
117
105
190
1
2
2
4
11
5
1
4
1942........................................................................
1941........................................................................
1940........................................................................
1939........................................................................
51
81
67
85
42
78
58
72
2
2
3
3
7
1
6
10
1938........................................................................
1937........................................................................
1936........................................................................
1935........................................................................
82
133
165
77
67
111
114
45
3
8
10
1
12
14
41
31
1 Figures for years prior to 1942 may differ slightly from those given in the Annual R eport of the
Corporation for 1941, p. 184, because of later recissions of cases approved or revision of the data.
2 Includes approvals of change in type of business conducted. Excludes cases where approval was
later rescinded.
Approval of establishment of branches. During 1946 the Cor
poration approved the establishment of 80 branches by insured banks
not members of the Federal Reserve System. Of these, 73 were for the
establishment of new banking offices. The remaining 7 cases related to
22
FEDERAL DEPOSIT INSURANCE CORPORATION
five absorbed banks to be converted into branches, and two branches
to be established at former locations of head offices after the relocation
of such offices. In four other cases the Corporation approved the establish
ment of a regular branch in place of tellers’ windows or facilities provided
as agents of the Government; and in three cases the Corporation approved
continuation of operation of branches previously operated by an absorbed
bank or other bank from which the branch had been purchased. The
Corporation disapproved four applications for permission to establish
branches.
The number of branches established by insured banks in a year differs
from the number approved by the Corporation. Some branches approved
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. Early
in 1946 the Corporation established a policy under which approval of
a branch is automatically abrogated if the branch is not in operation
within six months after date of approval, unless the bank receives an
extension of time. 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 page 45.
The number of applications received each year from banks not members
of the Federal Reserve System for approval of the establishment of
branches or ^continued operation of branches which had been absorbed
or operated prior to admission to insurance or relocation, together with
their final disposition, is given in Table 7.
Table 7.
A c t io n s
A p p l ic a t io n s
for
by
th e
F ederal D
A pproval
of
of
e p o s it
I n s u r a n c e C o r p o r a t io n
E s t a b l is h m e n t
or
on
C o n t in u e d O p e r a t io n
B r a n c h e s , 1935-1946
Number of applications1
Year
Acted
upon
Approved2
Approved
but later
rescinded
Dis
approved
1935-1946.................................................................
775
705
29
41
1946
.................................................................
1945........................................................................
1944 ............................................................. ..
1943........................................................................
91
61
49
105
87
58
46
101
1
2
4
2
3
2
1942........................................................................
1941 ......................................................................
1940........................................................................
1939........................................................................
36
49
44
61
32
46
40
53
2
3
2
3
2
1938........................................................................
1937........................................................................
1936........................................................................
1935........................................................................
82
89
93
15
71
82
80
9
6
5
5
5
2
8
6
2
5
1 Figures for years prior to 1942 m ay 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.
2 Excludes cases where approval was later rescinded.
SUPERVISORY ACTIVITIES
23
Capital and other financial adjustments. Insured State banks
not members of the Federal Reserve System, except those in the District
of Columbia, are required by law to secure the Corporation’s approval
to retire any part of their capital issues. Applications for approval of
the retirement of capital were filed by 462 such banks in 1946. Retirement
of capital issues held by the Reconstruction Finance Corporation ag
gregating $7,941,000, and those held by others aggregating $1,501,000
was approved. The Corporation disapproved retirement of capital issues
amounting to $1,046,000 because, in the opinion of the Board of Direc
tors, retirement would leave the applicant banks with inadequate capital.
Reports from banks. Semi-annual statements of average deposit
liabilities 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 29 and December 31, 1946, and for reports of earnings, ex
penses, and disposition of profits for the calendar year 1946, from each
insured bank required by law to submit such reports to the Corporation.
The reports are required from all insured State banks not members of
the Federal Reserve System except those in the District of Columbia.
Summaries of the tabulations from the reports of assets, liabilities,
and capital accounts for June 29 and December 31, 1946, are given in
the pamphlets, “ Assets and Liabilities, Operating Insured Commercial
and Mutual Savings Banks,” Reports No. 25 and 26, and in Table 106
of this report, page 124. Summaries of the reports of earnings, expenses,
and disposition of profits are given in Tables 116-122, pages 144-165 of
this report.
Federal Credit Unions. By Executive Order of the President, No.
9148, of April 27, 1942, all functions, powers, and duties of the Farm
Credit Administration and of the Governor thereof under the Federal
Credit Union Act, as amended, were transferred to this Corporation
until six months after the termination of the war.1Under this temporary
transfer of authority, supervision of Federal credit unions was continued
by the Corporation throughout the year 1946. These cooperative associa
tions, organized to encourage thrift and to provide for their members
sources of limited credit at reasonable rates, are chartered and examined
by the Corporation, but their shares are not insured.
On December 31, 1946, there were 3,776 Federal credit unions in
actual operation, and 187 either inactive or in liquidation. During the
year 157 new charters were granted and 151 charters were cancelled or
revoked following completion of liquidation of credit unions which had
ceased operation. Because of the continued shortage of examining per
sonnel only 2,814 of the operating credit unions were examined in 1946.
1
Reorganization Plan No. 1 of 1946 which was submitted b y the President to the Congress on
M ay 16, 1946, and which would have made this transfer permanent, was disapproved b y Congress.
24
FEDERAL DEPOSIT INSURANCE CORPORATION
Federal credit unions submit statements of operation to the Corporation
on June 30 and December 31 of each year. A summary of the December
31 statement is included in the Corporation’s “ Report of Operations of
Federal Credit Unions,” which is published annually.
L egal D
evelopm ents
The 1946 session of the 79th Congress produced little legislation of
particular applicability to the Corporation and its operations; and the
Federal banking laws underwent no substantial change. Three subjects
of considerable interest and importance to the banking system, although
widely discussed, were left unresolved; branch banking, bank holding
companies, and the retirement of the capital stock of the Corporation.
It is anticipated that the 80th Congress will see a renewal of the proposals
affecting these questions. Although the first two present questions of a
controversial nature, the third has the approval not only of the Ad
ministration but of the banking fraternity generally.
Statute of limitations on Government checks. Public Law 308,
approved March 6, 1946, fixes a six-year statute of limitations for suits
by the Government to enforce the liability of an endorser, transferor,
depositary, or financial agent, arising out of a forged or altered Govern
ment check. The full text of this Act appears at page 95 of this report.
Administrative Procedure Act. Public Law 404, approved June 11,
1946, is designed to assure administration of Government, through
administrative officers and agencies, in accordance with established and
published procedures which adequately protect the private interests
involved, the making of only reasonable and authorized regulations, the
settlement of disputes in accordance with law and the evidence, the
impartial conferring of authorized benefits or privileges, and the ef
fectuation of the declared policies of Congress. It is designed to provide
publicity of information, fairness in administrative operation, and
adequacy of judicial review. In substance, the Act requires all agencies
to issue as rules certain specified information as to their organization
and procedure, and to make available other materials of administrative
law; states the essentials of the several forms of administrative proceedings
and the general limitations on administrative powers; provides in detail
the requirements for administrative hearings and decisions in cases in
which statutes require such hearings; and sets forth a simplified statement
of judicial review designed to afford a remedy for every legal wrong.
In accordance with the requirements of this Act, the Corporation
published in the Federal Register of September 11, 1946, a revised edition
of its rules and regulations, and in the near future will furnish a reprint
thereof, in pamphlet form, to all insured banks.
LEGAL DEVELOPMENTS
25
Federal Credit Unions. Public Law 574, approved July 31, 1946,
amended the Federal Credit Union Act in a number of particulars,
among others (1) fixing a penalty for charging excessive interest by
providing for the forfeiture of the entire interest received; (2) permitting
shares to be held in joint tenancy with right of survivorship; (3) increasing
the amount of unsecured loans from $100 to $300, retaining, however,
the requirement that the aggregate of loans to a member may not exceed
$200 or 10% of the credit union’s paid-in and unimpaired capital and
surplus, whichever is greater; (4) providing in greater detail for the
procedure to be followed in the case of liquidation of a Federal credit
union; and (5) extending the Act to the Panama Canal Zone. The full
text of this Act appears at pages 96-98 of this report.
The President’s plan to make permanent the transfer to the Federal
Deposit Insurance Corporation of the administration and supervision
of Federal credit unions, which was included in the President’s Reor
ganization Plan No. 1 of 1946, failed to become effective because, in
accordance with the provisions of the Reorganization Act of 1945, the
Congress adopted a concurrent resolution of disapproval.
Regulations of the Corporation. During the year, and prior to the
complete revision pursuant to the Administrative Procedure Act, the
regulations of the Corporation were amended in several particulars:
Part 303, the regulation relating to the advertisement of membership,
was amended to include an additional exception for radio advertisements
which do not exceed 30 seconds in time (section 303.2(c)(3)(xvii) ). In
addition, the section dealing with the approved emblem and approved
short title was clarified (section 303.3), and section 303.4 dealing with
penalties was amended. Part 305, governing the recognition of deposit
ownership not on the bank's records, was amended by adding a new
section (305.4) to cover deposits in custodial accounts which made it
possible to repeal the old section 305.4 as well as sections 305.5 and 305.6.
Three new regulations, designated Parts 332, 333, and 334, were adopted.
Applicable to State nonmember insured banks, these regulations, re
spectively, prohibit the exercise of powers inconsistent with the purposes
of the Federal deposit insurance law, and forbid any such bank from
changing its general character or type of business or moving its principal
place of business without, in either case, the prior written consent of the
Corporation.
The texts of these regulations, as amended and adopted, are given at
pages 102-104 of this report.
State legislation. Twenty-four States held legislative sessions during
1946. Regular sessions were held in eleven States, Georgia, Kentucky,
Louisiana, Massachusetts, Mississippi, Missouri, New Jersey, New York,
Rhode Island, South Carolina and Virginia. Extra or special sessions
26
FEDERAL DEPOSIT INSURANCE CORPORATION
were held in seventeen States, Arizona, California, Connecticut, Idaho,
Illinois, Maine, Maryland, Michigan, New Jersey, Ohio, Rhode Island,
South Carolina, Vermont, Virginia, West Virginia, Wisconsin, and
Wyoming.
Banking legislation was enacted in thirteen States. A summary of this
legislation is given on pages 99-101 of this report.
The Federal Congress enacted Public Law 508, approved July 13,
1946, providing that every Saturday shall be a holiday in the District
of Columbia for banks and building and loan associations. The full text
of this Act appears at page 98 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
Directors. Mr. Maple T. Harl became Chairman of the Board of
Directors of the Corporation on January 5, 1946. Mr. Preston Delano,
Comptroller of the Currency, served throughout the year as ex officio
member of the Board of Directors. Mr. Phillips Lee Goldsborough, who
had been a director of the Corporation since April 24, 1935, died on
October 22, 1946. Mr. Henry Earl Cook was appointed by the President
as his successor.
Staff and organization. On December 31 the personnel of the Cor
poration consisted of 1,181 officers and employees compared with 1,184
at the beginning of the year and 2,538 at the close of 1941. In two Di
visions of the Corporation the number of persons employed changed
substantially; a reduction occurring in the Division of Liquidation and
an increase in the Division of Examination. The reduction in personnel
of the Division of Liquidation, from 342 at the beginning of the year to
214 at the close, resulted from the small number of banks currently re
quiring financial aid from the Corporation and from completion as
speedily as possible of the liquidation of assets previously acquired.
The increase in personnel in the Division of Examination, from 497
at the beginning of the year to 647 at the close, was due to efforts to
replace losses in personnel during the war years and to eliminate delays
in conducting examinations. An increase in personnel was also needed
because of rapidly expanding loan portfolios, an increasing volume of
trust business, an increase in the number of new bank and branch ap
plications, and a growth in bank assets of 100 percent since 1940.
Since 1939, when most employees of the Corporation were placed under
Civil Service and salaries paid by the Corporation were adjusted to those
specified by Congress for employees in the classified service, two increases
in pay have been granted employees of the Corporation. One of these
was effective on July 1, 1945, when overtime working hours in force
during the war were reduced; the other was effective on July 1, 1946.
27
ORGANIZATION AND FINANCIAL STATEMENTS
The two increases together raised rates of pay of employees of the Cor
poration from 35 percent for lower-paid employees to 25 percent for
higher-paid employees, with no increase resulting in a salary above
$10,000. The cost of living has risen approximately 55 percent since 1939,
according to the consumers’ price index for moderate income families
in large cities.
The number of officers and employees of each Division of the Cor
poration as of December 31, 1946, is given in Table 8.
T a b le 8 .
O f f ic e r s
and
E m ployees
of th e
C o r p o r a t io n , D
Division and office
ecem ber
Officers and
administra
tive, super
visory, and
technical
employees
Total
31, 1946
Clerical,
stenographic,
and custodial
employees
T o t a l ....................................................................... ...........................
1,181
722
459
Washington office......................................................................
Chicago office..............................................................................
Field offices................................................................................
233
198
750
102
90
530
131
108
220
....................................................................................
2
2
Executive D ivision......................................................................
Washington office......................................................................
26
26
16
16
10
10
Legal Division
..........................................................................
Washington office......................................................................
Chicago o ffic e ............................................................................
33
17
16
18
10
8
15
7
8
Division of Exam ination............................................................
Washington office......................................................................
District and field.......................................................................
647
55
592
485
32
U53
162
23
139
Division of Liquidation..............................................................
Chicago office..............................................................................
District and field.......................................................................
214
58
156
103
28
75
111
30
81
Division of Research and Statistics........................................
Washington office......................................................................
Field offices................................................................................
50
U8
2
27
25
2
23
23
Personnel Division.......................................................................
Washington office......................................................................
Chicago office..............................................................................
24
20
11
9
2
13
11
2
Service D ivision............................................................................
Washington office......................................................................
Chicago office..............................................................................
99
65
3U
12
8
U
87
57
30
Audit D ivision..............................................................................
Chicago office..............................................................................
30
30
24
2k
6
6
Fiscal and Accounting D ivision...............................................
Chicago office..............................................................................
56
56
24
2k
32
32
Directors
Income and expenses. The income of the Corporation in 1946 was
$131 million, consisting of $107 million from assessments upon insured
banks and $24 million from investments and other sources.
Total expenses of the Corporation in 1946 amounted to $4.5 million,
almost all of which were administrative expenses. Insurance losses were
only $11,000. Wages and salaries comprise three-fourths of the ad
ministrative expenses of the Corporation. This item amounted to $3.4
28
FEDERAL DEPOSIT INSURANCE CORPORATION
million in 1946, an increase of 19 percent over the previous year. Over
one-third of the increase was due to adoption by the Board of Directors,
effective July 1, 1946, of salary increases commensurate with those
adopted by Congress for Federal Government employees.
The surplus of the Corporation was increased by $129 million during
the year. Of this increase, $126 million was income in excess of expenses
and $3 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 1946 is given in Table 9. A summary statement for each
year since its organization is given in Table 10.
Table 9.
I ncome
and E xpenses of the F ederal D eposit I nsurance
C orporation, C alendar Y ear 1946
Incom e or expense item
In com e:
Deposit insurance assessments.........................................................................................
Interest earned (less provision for amortization of premiums) on government
obligations..........................................................................................................................
Other incom e........... .............................................................................................................
Amount
$107,032,510.84
23,584,719.93
281,443.05
T o t a l I n c o m e .................................................................................................
E xpenses:
Deposit insurance losses and expenses............................................................................
Administrative expenses (see b e lo w )...............................................................................
Furniture, fixtures, and equipment purchased and charged o ff..............................
130,898,673.82
10,952.26
4,459,757.64
65,619.53
T o t a l ex p e n se s...............................................................................................
4,536,329.43
N et in c o m e a d d ed t o s u r p lu s ......................................................” ..........
126,362,344.39
S u rp lu s D e c e m b e r 31, 1945:
As previously reported.................................................. ....................................................
Plus— N et adjustments applicable to periods prior to January 1, 1946................
639,851,659.07
2,971,435.78
S u rp lu s D e c e m b e r 31, 1945, as a d ju s t e d ............................................
642,823,094.85
S u rp lu s D e c e m b e r 31, 1946......................................................................
$769,185,439.24
D IS T R IB U T IO N OF A D M IN IS T R A T IV E E X P E N SE S
3,407,081.29
6,918.23
593.90
132,815.44
424,199.34
315,415.99
79,880.06
62,183.28
937.05
12,050.62
10,116.56
16,741.82
13.904.71
11.181.72
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............................................................................................................................
4,494,020.01
Less:
Inter-departmental expense transfers..............................................................................
Fees for services rendered..................................................................................................
21,439.87
12,822.50
34,262.37
A d m in istr a tiv e expenses fo r th e year en d ed D e c e m b e r 31, 1946......................
$
4,459,757.64
29
ORGANIZATION AND FINANCIAL STATEMENTS
T a b le 1 0.
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 pe r at io n s 1
(In millions of dollars)
Incom e
Year
Total
Expenses
Deposit
insurance Investment
and other
assess
income
ments2
Total
Deposit
insurance
losses and
expenses
Adminis
trative
expenses3
Net
income
added to
surplus
1933-1946...............
844.2
670.7
173.5
75.0
29.0
46.0
769.2
1946.....................
1945.....................
1944.....................
1943.....................
130.9
121.2
99.5
86.7
107.1
93.7
80.9
70.0
23.8
27.5
18.6
16.7
4.5
4.0
3.9
4.5
.1
.1
.1
.2
4.4
3.9
3.8
4.3
126.4
117.2
95.6
82.2
1942.....................
1941.....................
1940.....................
1939.....................
69.4
62.0
55.9
51.2
56.5
51.4
46.2
40.7
12.9
10.6
9.7
10.5
4.5
4.5
9.4
12.8
.6
.8
5.8
9.4
3.9
3.7
3.6
3.4
64.9
57.5
46.5
38.4
1938.....................
1937.....................
1936.....................
1935.....................
1933-344
...........
47.8
48.1
43.8
20.7
7.0
38.3
38.8
35.6
11.5
9.5
9.3
8.2
9.2
7.0
5.5
6.4
5.1
5.5
4.4
2.5
3.7
2.6
2.8
.3
3.0
2.7
2.5
2.7
4.1^
42.3
41.7
38.7
15.2
2.6
1 Figures of total expenses, deposit insurance losses and expenses, and net income added to surplus
for years prior to 1946 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 insured banks, members of the temporary insurance funds, were
credited to their accounts in total at the termination of the temporary funds, being applied toward
subsequent assessments under the permanent insurance fund, and resulting in no income to the Corpora
tion 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.
5 After deducting portion of expenses and losses charged to banks withdrawing from the temporary
funds on June 30, 1934.
Assets and liabilities. On December 31, 1946, the total assets of
the Corporation were $1,061 million. These assets included the following
items:
Assets acquired through bank receiverships and mergers amounting
to a face value of $25 million which were carried on the books of the
Corporation at an appraised value of $6 million;
United States Government obligations valued at $1,048 million.
Cash amounting to $7 million.
Liabilities of the Corporation at the end of 1946 were $2 million. Total
capital of the Corporation consisted of $289 million capital stock issued
at its organization and $769 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 11. A more detailed statement of
assets and liabilities at the beginning and end of the year is given in
Table 12.
30
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 11.
A s s e t s and L ia b ilitie s o f t h e F e d e r a l D e p o sit
In s u ra n c e C o r p o r a tio n , 1934-1946
(In millions of dollars)
D ec. 31
Cash
U . S.
In
Govern surance
ment ob assets
ligations
Other
assets
Total
assets
and lia
bilities
Lia
bilities
Capital
and
surplus
Total de
posits in
insured
banks
Ratio—
F D IC
capital and
surplus to
deposits in
insured
banks
1 9 4 6 ....
1 9 4 5 ....
1 9 4 4 ....
1 9 4 3 ....
7.3
15.7
17.8
20.0
1,047.7
900.0
762.0
638.8
5.6
15.1
26.1
46.2
.1
.3
.3
.5
1,060.7
931.1
806.2
705.5
2.2
1.9
1.9
2.4
1,058.5
929.2
804.3
703.1
148,457.0
158,174.1
134,662.1
111,649.8
1 9 4 2 ....
1 9 4 1 ....
1 9 4 0 ....
1 9 3 9 ... .
19.4
20.0
20.4
28.3
536.8
453.9
384.5
363.5
62.0
81.7
92.2
64.2
.5
.1
.1
.1
618.7
555.7
497.2
456.1
1.8
2.2
1.2
3.4
616.9
553.5
496.0
452.7
89,868.7
71,209.3
65,287.4
57,485.8
.69
.78
.76
.79
1938___
1937___
1936___
1935___
1 9 3 4 ....
22.2
20.6
9.1
33.5
16.0
372.8
348.5
332.6
298.2
316.7
26.5
16.1
11.4
5.4
.5
.1
.1
.1
.1
.1
421.6
385.3
353.2
337.2
333.3
1.1
2.2
9.8
31.2
41.6
420.5
383.1
343.4
306.0
291.7
50,790.2
48,227.8
50,280.9
45,125.1
40,059.9
.83
.79
.68
.68
.73
.71%
.59
.60
.63
A udit. In the past the Corporation has followed the policy of having
an annual audit of the accounts of the Corporation by independent
auditors. 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, made by George
Rossiter and Company under direction of the Comptroller General, was
published in House Document No. 639, 79th Congress, 2nd Session,
Report on Audit of Federal Deposit Insurance Corporation, 1945. The
income and surplus statement of the Corporation, exclusive of Federal
Credit Union activities, from this audit, is shown in Table 13; the income
and expense statement of Federal Credit Union activities in Table 14;
and the asset and liability statement in Table 15. The auditors’ opinion
is shown on page 36.
The audit of the Corporation as of June 30, 1946, was made under the
direction of the Comptroller General. The income statement of the
Corporation, as shown in this audit, is given in Table 16; and the asset
and liability statement in Table 17. The auditors’ opinion is shown on
page 40.
31
ORGANIZATION AND FINANCIAL STATEMENTS
T a b le 1 2 .
A ssets
and
C o r p o r a t io n , D
L ia b il it ie s
ecem ber
of th e
31, 1946,
F ederal D
and
D
Asset, liability, or capital item
e p o s it
ecem ber
I nsurance
31, 1945
Dec. 31, 1946
Dec. 31, 1945
ASSETS
Assets acquired through bank suspensions and m ergers:
Subrogated claims of depositors against closed insured banks. $
N et balances of depositors in closed insured banks pending
settlement or not claimed, to be subrogated when paid—
Loans to merging insured banks, to avert deposit insurance
losses, and recoverable liquidation expenses...........................
Assets purchased from merging insured banks, to avert deposit
insurance losses, under agreements to return any excess
recovery to selling ban ks.............................................................
Assets purchased from merging insured banks, and receivers
of closed insured banks to avert deposit insurance losses. . . .
9,144,440.20
$
12,929,038.88
84,766.59
111,997.59
6,664,819.55
11,851,807.69
8,261,221.79
12,250,284.39
387,846.12
539,278.45
T otal at face value....................................................
Less: Reserve for losses.....................................................................
24,543,094.25
18,991,520.60
37,682,407.00
22,560,230.48
Total at book value...................................................
5,551,573.65
15,122,176.52
Cash on hand and on deposit.......................................................
7,337,224.71
15,722,797.69
United States Government obligations (cost less reserve for
amortization of premiums) and accrued interest receivable
1,047,720,660.50
899,944,277.33
Due from Governmental agencies...............................................
32,728.86
200,512.01
Miscellaneous receivables...............................................................
22,818.52
24,739.28
Furniture, fixtures and equipm ent............................................
1.00
1.00
Deferred charges..................................................................................
73,996.38
75,808.69
Total assets..................................................................
$1,060,739,003.62
$ 931,090,312.52
L IA B IL IT IE S
Current liabilities:
Accounts and assessment rebates payable................................... $
Earnest money deposits and collections in suspense.................
N et balances of depositors in closed insured banks pending
settlement or not claimed— contra............................................
Deferred credits...................................................................................
Reserve for deposit insurance expenses....................................
T otal liabilities...........................................................
349,436.50
722,288.95
$
84,766.59
111,997.59
1,050,931.67
481,939.54
46,583.68
$
317,706.90
983,505.64
43,946.79
2,254,007.39 $
1,939,096.46
C A P IT A L
Capital stock :
United States.......................................................................................
Federal Reserve ban ks......................................................................
$
150,000,000.00
139,299,556.99
$ 150,000,000.00
139,299,556.99
289,299,556.99
Total capital stock....................................................
289,299,556.99
Surplus— (see Table 9 ) ........................................................................
769,185,439.24
639,851,659.07
T otal capital................................................................
1,058,484,996.23
929,151,216.06
Total liabilities and capital..................................
$1,060,739,003.62
$ 931,090,312.52
32
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 13.
F ederal 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 I n c o m e
S u r plu s St a t e m e n t , E x c l u s iv e
F e d e r a l C r e d it U n io n A c t iv it ie s ,
J u n e 30, 1945
and
L o ss
of
fo r
1944,
and
the
and
D
e f ic it
F is c a l Y
ears
E nded
C o m p a r is o n
Fiscal year ended
June 30—
1945
Operating income:
Deposit insurance assessments...........................................
Interest earned on U . S. Government securities, less
amortization of prem ium s...............................................
Other income:
Interest and allowable return realized on assets ac
quired through bank suspensions and mergers:
Loans to merged insured banks.............................
Subrogated claims of depositors............................
Assets purchased from merged insured banks un
der agreements to return any excess recoveries
Fees received from receivership supervision...............
Net income from assets purchased from merged in
sured banks and receivers of closed insured banks.
Profit on sale of assets purchased from merged insured
banks and receivers of closed insured banks, n et..
Miscellaneous.....................................................................
Total operating income.
Operating expenses:
Administrative expenses.......................................................
Furniture, fixtures, and equipment purchased...............
Other expenses and losses:
Increase or
decrease ( -)
1944
86,386,791
$ 77,159,328
18,228,298
15,782,882
2,445,416
162,045
26,704
276,754
101,907
-114,709
-75,203
52,999
15,426
149,805
16,317
-96,806
-891
27,985
-9,754
163,297
1,184
143,584
19,659
19,713
-18,475
105,054,975
93,678,221
11,376,754
3,441,331
52,625
3,600,184
16,669
-158,853
35,956
21,177
30,000
-2,860
-30,000
1,641,667
-1,641,667
150,000
50,000
10,047
5,180
Expenses of investigating and liquidating assets ac
quired from merged insured banks..............................
Provision for expenses of paying insured deposits. . .
Provision for losses on assets acquired during the cur
rent year through bank suspensions, mergers, etc.:
Subrogated claims of depositors against closed
insured banks.........................................................
Assets purchased from merged insured banks to
reduce or avert deposit insurance losses.........
Other assets purchased............................................
Miscellaneous......................................................................
and
fr o m
200,000
10,047
5,180
$
9,227,463
3,727,500
5,459,697
-1,732,197
Incom e from operations1..........................................................
Other incom e, profit on sales of U . S. Government
securities..............................................................................
101,327,475
88,218,524
13,108,951
7,707,494
1,098,381
6,609,113
N et income1.................................................................................
109,034,969
89,316,905
19,718,064
Surplus credit, restoration to surplus of excess reserves
provided in prior years:
For possible losses on assets acquired through bank
suspensions and mergers..............................................
For expenses of paying insured deposits.....................
7,327,017
1,425
4,359,660
42,610
2,967,357
-41,185
Total operating expenses.
T o ta l.
Net increase in surplus for the year1,
Surplus at beginning of the year1. . .
Surplus at end of the year1.
7,328,442
4,402,270
2,926,172
116,363,411
463,280,782
93,719,175|
369,561,6071
22,644,236
93,719,175
579,644,193
463,280,782
116,363,411
1 Before deduction of losses from Federal credit-union activities, as shown in exhibit C (Table 14).
N ote : From Report on Audit o f Federal Deposit Insurance Corporation, 194.5, House Docum ent
N o. 639, 79th Congress, 2d Session, Exhibit B , p . 22.
33
ORGANIZATION AND FINANCIAL STATEMENTS
Table 14.
D
e f ic it
F ederal D
St a t e m e n t
F is c a l Y
ears
e p o s it
fr o m
ended
I n s u r a n c e C o r p o r a t io n N
F e d e r a l C r e d it U n io n A
J u n e 30, 1945
and
1944,
et
L oss
c t iv it ie s
and
for
Operating expenses:
Administrative expenses:
Personal services, salaries.
Subsistence............................
Transportation:
Individuals.......................
O ther..................................
Telephone and telegraph. .
P ostage..................................
Office rental..........................
Repairs and alterations:
Office..................................
Equipm ent.......................
Utilities and services..........
Printing and stationery. . .
Supplies.................................
Legal and professional
Miscellaneous.....................
th e
C o m p a r is o n
Fiscal year ended
June 30—
Incom e: Fees from credit unions.
and
Increase or
decrease (-)
1945
1944
$165,394
$140,797
$24,597
256,234
47,706
286,516
57,368
-30,282
-9,662
14,070
16,442
1,578
2,991
306
20,983
-2,372
-378
-632
-9 4
-5,853
77
-2 7
685
1,169
-1,322
-2,654
1,200
2,359
212
15,130
47
18
357
124
1,446
3,058
2,654
158
Total administrative expenses.....................
Furniture, fixtures, and equipment purchased.
342,543
1,556
393,999
524
-51,456
1,032
Total operating expenses..................................
95
330
809
2,615
1,736
-111
344,099
394,523
-50,424
N et loss from operations.............
Deficit at beginning of the y e a r.
178,705
296,056
253,726
42,330
-75,021
253,726
Deficit at end of the y e a r ...
474,761
296,056
178,705
N ote : From Report on Audit o f Federal Deposit Insurance Corporation, 191+5, House Docum ent
N o . 639, 79th Congress, 2d Session, Exhibit C , p. 23.
34
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 15.
Federal D
e p o s it
J u n e 30, 1945
I n s u r a n c e C o r p o r a t io n B a l a n c e S h e e t ,
and
1944,
and
C o m p a r is o n
ASSETS
June 3 0 Increase or
decrease (-)
1945
Cash:
On deposit with the Treasurer of the United States.. .
On hand, in transit, and on deposit with ban ks...........
$
1944
9,922,558
851,918
$ 25,491,956
1,695,177
-15,569,398
-843,259
Total cash............................................................................
10,774,476
27,187,133
-16,412,657
U . S. Government securities owned— at cost less amorti
zation (principal amount, $885,086,600, and market
value, $857,903,586 at June 30, 1945).............................
835,576,027
687,761,912
147,814,115
Accrued interest receivable on U .S. Government securities
2,494,517
2,452,368
42,149
14,271,794
22,160,091
-7,888,297
131,619
254,409
-122,790
15,775,745
24,555,079
-8,779,334
16,133,867
23,724,303
-7,590,436
530,433
34,002
521,700
74,367
8,733
-40,365
T o ta l............................................................................
Less reserve for losses.......................................................
46,877,460
25,998,453
71,289,949
35,172,158
-24,412,489
-9,173,705
Remainder, net book value of assets acquired
through bank suspensions and mergers, less
collections....................................................................
20,879,007
36,117,791
-15,238,784
Miscellaneous receivables and deferred charges:
Receivables from other governmental agencies.............
Federal credit union fees receivable..................................
O ther.........................................................................................
286,140
21,490
79,737
376,136
23,411
101,896
-89,996
-1,921
-22,159
Total miscellaneous receivables and deferred charges.
387,367
501,443
-114,076
870,111,395
754,020,648
116,090,747
Assets acquired through bank suspensions and mergers,
less collections:
Subrogated claims of depositors against closed in
sured banks.....................................................................
Depositors' net balances in closed insured banks
pending settlement or not claimed, to be subro
gated when paid (per con tra )....................................
Loans to merged insured banks to reduce or avert
deposit-insurance losses, including liquidation
expenses (note 1 )...........................................................
Assets purchased from merged insured banks to
reduce or avert deposit-insurance losses, including
liquidation expenses (note 1 ).....................................
Other assets purchased:
From merged insured ban ks.......................................
From receivers of closed insured banks...................
Furniture, fixtures, and equipment, at nominal value. . .
T o t a l.....................................................................................
N ote : From Report on Audit of Federal De-posit Insurance Corporation, 19U5y House Docum ent
N o. 639, 79th Congress, 2d Session, Exhibit A , pp. 20-21.
35
ORGANIZATION AND FINANCIAL STATEMENTS
T a b le 15.
F ederal D
J u n e 30, 1945
e p o s it
and
I n s u r a n c e C o r p o r a t io n B a l a n c e S h e e t ,
1944,
and
C o m p a r is o n — Continued
L IA B IL IT IE S
June 30—
1945
Payables:
Accounts payable...................................................................
Earnest m oney, escrow deposits, and collections held
in suspense, arising from assets acquired through
bank suspensions and mergers, etc................................
Depositors’ net balances in closed insured banks
pending settlement or not claimed (per con tra). . . .
Expenses of paying insured deposits (estim ated)..........
$
494,255
1944
$
368,133
Increase or
decrease (-)
$
126,122
634,017
961,637
-327,620
131,619
50,535
254,409
65,306
-122,790
-14,771
1,310,426
1,649,485
-339,059
Deferred credits, interest earned on loans and allowable
returns on purchased assets from merged insured
banks, etc. (note 1 )...............................................................
331,980
86,880
245,100
Capital stock and surplus:1
Capital stock, without nominal or par value (nonvoting
and not entitled to dividends):
Owned by U . S. Governm ent....................................
Owned by Federal Reserve banks.............................
150,000,000
139,299,557
150,000,000
139,299,557
289,299,557
289,299,557
579,644,193
-474,761
463,280,782
-296,056
116,363,411
-178,705
Total payables...................................................................
Total capital s to c k ...................................................
Surplus (deficit (-) ):
Deposit insurance activities, per exhibit B (Table 13)
Federal credit union activities, per exhibit C (Table 14)
N et surplus.....................................................................
579,169,432
462,984,726
116,184,706
T otal capital stock and surplus.................................
868,468,989
752,284,283
116,184,706
T o t a l................................................................................
870,111,395
754,020,648
116,090,747
1 The entire capital stock and surplus is considered by the Corporation to constitute a reserve for
future deposit insurance losses and related expenses with respect to insured banks. The Corporation
estimates that the insured deposits in operating insured banks amounted to approximately
$55,000,000,000 at June 30, 1945.
The attached notes are an integral part of the above statement:
N
o tes
A
ttached
to
and
M
ade
an
I ntegral P art
op
B a l a n c e S h e e t , Ju n e
30, 1945
(1) Loans to merged insured banks are evidenced b y demand notes bearing interest at the rate of
4 percent per annum, and the Corporation is entitled to a return of 4 percent per annum with respect
to its investments in assets purchased from merged insured banks under agreements to return any excess
recoveries to the selling banks. The Corporation follows the practice of taking into income only such
amounts of interest and allowable return as are realized after recovery in full of its investments (including
recoverable liquidation expenses) in the respective loans and purchased assets.
(2) Under the provisions of section 12B of the Federal Reserve A ct, as amended by section 101
of the Banking A ct of 1935 (subsec. o), the Corporation is authorized and empowered to issue and to
have outstanding its notes, debentures, bonds, or other such obligations in a par amount of $974,600,000
at June 30, 1945.
The Secretary of the Treasury, at his discretion, is authorized to purchase any such obligations of
the Corporation. Upon the request of the Board of Directors of the Federal Deposit Insurance Cor
poration, whenever in their judgment additional funds are required for insurance purposes, the Secretary
of the Treasury is authorized and directed to purchase such obligations in an amount not to exceed
$250,000,000, par value.
Further, upon the request of the Board of Directors of the Federal Deposit Insurance Corporation,
whenever in their judgment additional funds are required for insurance purposes, the Reconstruction
Finance Corporation is authorized and directed to purchase such obligations in an amount not to exceed
$250,000,000, par value. In the event the Reconstruction Finance Corporation fails to make such pur
chases, the Secretary of the Treasury is authorized and directed to do so in its stead.
The Corporation has never used the borrowing power granted to it b y this section.
(3) N o provision has been made in the balance sheet for the liability of the Corporation in connection
with accrued annual leave of employees. This procedure is in accordance with accepted governmental
accounting practice.
36
FEDERAL DEPOSIT INSURANCE CORPORATION
AUDITORS* OPINION1
C om ptroller G e n era l
of
the
U n i t e d S t a t e s , Washington, D. C .
We have examined the balance sheet of the F ederal D eposit I nsurance C or
(a corporation created by section 12B of the Federal Reserve Act under the
provisions of section 8 of the Banking Act of 1933 and as amended by section 101 of
the Banking Act of 1935) as of June 30, 1945, and the income and surplus statements
for the year ended that date. In connection therewith, we reviewed the system of
internal control and the accounting procedures of the Corporation and, without
making a detailed audit of transactions, have examined or tested accounting records
and other supporting evidence by methods and to the extent we deemed appropriate
in view of the work performed by the Corporation’s internal auditing staff.
poration
The Corporation maintains an internal auditing staff which makes extensive and
independent examinations of various phases of the operations of the Corporation.
We had access to the working papers of such staff which we reviewed in considerable
detail both as to the work performed and the conditions disclosed by such examina
tions. The internal auditing staff is a separate and distinct organization, and the Chief
of the Staff reports directly to the Board of Directors of the Corporation.
We examined the records maintained for one receivership, where the Corporation
is the receiver, of a closed insured bank to determine that proper accounting records
and procedures are being maintained. In connection with the other active receiverships,
where the Corporation is the receiver, we relied on the work of the internal auditors
who are charged with the responsibility of examining such records. However, in our
opinion, the number of examinations made of the receiverships during the current
fiscal year was not adequate.
W e examined or otherwise satisfactorily accounted for the collateral for two loans
to merged insured banks and the documents evidencing ownership of assets purchased
in two instances from merged insured banks at the offices of the respective liquidating
agents of the Corporation. The collateral under each loan and the documents evi
dencing ownership in each instance where assets are purchased are examined by the
internal auditors. These examinations are made on a rotating basis approximately
every 18 months. Our review of the reports of the internal auditors on the examinations
made by them during the current fiscal year indicated that satisfactory verifications
were made.
The accompanying balance sheet as of June 30, 1944, and the income and surplus
statements for the year ended that date were taken from the report prepared by
another firm of certified public accountants and were not examined by us.
In our opinion, the accompanying balance sheet as of June 30, 1945, and the income
and surplus statements for the year ended that date, together with the notes thereto,
fairly present, in conformity with generally accepted accounting principles applied
on a basis consistent with that of the preceding year, the financial position of the
Federal Deposit Insurance Corporation at June 30, 1945, and the results of its opera
tions for the year ended that date.
G eorge R
o ssetter
& Co.,
Certified Public Accountants.
Chicago, 111., March 19, 1946.
i From Report on Audit of Federal Deposit Insurance Corporation, 19U5, House Document N o. 689,
79th Congress, 2d Session, p. 19.
ORGANIZATION AND FINANCIAL STATEMENTS
T a b le 1 6 .
F ederal D
e p o s it
St a t e m e n t s
J u n e 30, 1946
37
I n s u r a n c e C o r p o r a t io n C o m p a r a t iv e I n c o m e
for
and
the
F is c a l Y
1945—
from
A
ears
E nded
u d it o r s ’
R
eport
Year ended June 30,
Increase
(-decrease)
1946
1945
D E P O S IT
IN SU R A N C E
AND
IN V E S T M E N T
A C T IV IT IE S :
$101,207,998
D e p os it in s u ra n c e a ss e ss m e n ts ...............................
I n c o m e fr o m in v e s t m e n ts :
Interest earned on U . S. Government securities, less
21,978,207
amortization of premiums and discounts................
20,516
Profit on sale of U . S. Government securities...........
T o t a l ...................................................................
I n c o m e fr o m b a n k su sp en sion s a n d m e rg e r s:
Interest and allowable return on assets acquired. . . .
Receivership fees...............................................................
Profit on sale of assets purchased.................................
N et income from assets purchased from merged in
sured banks and receivers of closed insured banks. .
86,386,791
14,821,207
18,228,298
7,707,494
3,749,909
-7,686,978
21,998,723
25,935,792
-3,937,069
165,476
10,707
78,724
242,932
15,426
163,297
-77,456
-4,719
-84,573
T o ta l....................................................................................
Deduct:
Expenses of maintenance and preservation of
assets purchased....................................................
Expenses of investigating and liquidating assets
acquired from merged insured banks...................
Provision for losses on assets acquired through
bank suspensions and mergers...............................
18,231
-12,902
439,886
-179,650
3,877
5,180
-1,303
16,345
18,317
-1,972
100
210,047
-209,947
T o ta l................................................................................
20,322
233,544
-213,222
I n c o m e fr o m b a n k su sp en sion s a n d m e r g e r s ...
239,914
206,342
33,572
T o ta l in c o m e ........................................................................
123,446,635
112,528,925
10,917,710
O p e ra tin g e x p e n se s...........................................................
3,597,066
3,493,956
103,110
N et o p e ra tin g in c o m e fr o m d ep o sit in su ra n ce
an d in v e stm e n t a c t iv itie s ..........................................
119,849,569
109,034,969
10,814,600
4,636,381
7,327,017
-2,690,636
A d d n e t r e d u c tio n o f reserves p rovid ed in p rior
years in excess o f cu rre n tly e stim a te d r e
q u ire m e n ts :
Reduction in reserve for possible losses on assets
acquired from merged and suspended banks..........
Less increase (-decrease) in reserve for possible ad
ditional expenses required for paying insured
deposits............................................................................
14,263
-1,425
15,688
N et r e d u c tio n o f reserv es............................................
4,622,118
7,328,442
-2,706,324
N et in crea se in s u rp lu s fr o m d e p o sit in su ra n ce
a n d in v e s tm e n t a ctiv ities fo r t h e y e a r .................
124,471,687
116,363,411
8,108,276
C R E D IT U N IO N A C T IV IT IE S :
Incom e from fees...................................................................
Less administrative expenses..............................................
161,664
358,232
165,394
344,099
-3,730
14,133
Net loss from Federal credit union activities for the year
N et in crease in s u r p lu s .......................................................
N ote:
196,568
178,705
17,863
124,275,119
116,184,706
8,090,413
Furnished by the Comptroller General of the United States.
38
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 17.
Federal D
e p o s it
I n s u r a n c e C o r p o r a t io n C o m p a r a t iv e
B a l a n c e S h e e t s , J u n e 30, 1946
and
1945—
from
A
u d it o r s 1
R
June 30,
1946
1945
ASSETS
C a sh :
On deposit with the Treasurer of the United States
On hand, in transit, and on deposit with ban ks. . .
T o t a l ca sh
U. S. G o v e rn m e n t secu rities ow n e d , at cost less amorti
zation (face value, $975,787,100, and market value
$1,018,074,562, at June 30, 194 6 )....................................
Accrued interest receivable thereon......................................
T o t a l s ecu rities
A ssets a cq u ire d t h r o u g h b a n k su sp en sion s a n d
m ergers:
Subrogated claims of depositors against closed insured
banks, less collections (N ote 1 )..........................................
Depositors' net balances in closed insured banks pending
settlement, to be subrogated when paid (per con tra). .
Assets received and liquidation expenses incurred through
loans to merged insured banks to reduce or avert de
posit insurance losses, less collections (N ote 2 ) ..........
Assets purchased from merged insured banks, and liquida
tion expenses incurred, to reduce or avert deposit in
surance losses, less collections (N ote 2 ) ...........................
Other assets purchased (cost less collections):
From merged insured ban ks...............................................
From receivers of closed insured banks...........................
eport
Increase
(-decrease)
$ 5,910,906
874,289
9,922,558
851,918
-4,011,652
22,371
6,785,195
10,774,476
-3,989,281
976,167,460
2,380,790
835,576,027
2,494,517
140,591,433
-113,727
978,548,250
838,070,544
140,477,706
10,357,716
14,271,794
-3,914,078
110,796
131,619
-20,823
8,804,657
15,775,745
-6,971,088
10,053,597
16,133,867
-6,080,270
467,853
28,191
530,433
34,002
-62,580
-5,811
T o t a l......................................................
29,822,810
46,877,460
-17,054,650
Less reserve for losses and expenses
20,647,394
26,048,988
-5,401,594
R e m a in d e r, n e t b o o k va lu e o f assets a cq u ired
th r o u g h b a n k su sp en sion s a n d m e r g e r s ..................
9,175,416
20,828,472
-11,653,056
M iscella n eou s receiv a bles a n d d eferred ch a rg e s :
Receivables from other Government agencies...........
O ther......................................................... ...........................
137,601
103,348
286,140
101,227
-148,539
2,121
T o ta l m isce lla n e o u s receiva bles a n d d eferred
c h a r g e s ...................................................................................
F u r n itu re , fixtures, a n d e q u ip m e n t, at nominal value. .
240,949
1
387,367
1
-146,418
994,749,811
870,060,860
124,688,951
N OTES:
1. The Corporation properly does not reflect in its balance sheet the assets of closed insured banks,
wherein it acts as receiver; these assets had a total bank book value of $3,391,737 at June 30, 1946. The
recovery value was estimated to be $1,493,375, which, when collected, will be applied against the unpaid
creditors’ claims of $2,422,620, including depositors’ claims subrogated to the Corporation in the amount
of $2,194,533.
2. Loans to merged insured banks are evidenced by demand notes bearing interest at the rate of
4 percent per annum. The Corporation is entitled to a return of 4 percent per annum with respect to its
investments in assets purchased from merged insured banks. Under both arrangements it has agreed to
return any excess recoveries to the selling banks. The Corporation follows the practice of taking into
income only such amounts of interest and allowable return as are realized after recovery in full of its
investments (including recoverable liquidation expenses) in the respective loans and purchased assets
which have been completely liquidated. In those cases where loans and assets purchased have not been
completely liquidated and the Corporation has recovered in full its investment, the interest and allowable
return appear in deferred credits in the amount of $685,313 and $327,033, respectively, as of June 30,
1946 and 1945.
3. The liability of the Corporation in connection with accrued annual leave of employees as of
June 30, 1946 and 1945, estimated by the Corporation to be approximately $730,000 and $500,000,
respectively, has not been reflected in the balance sheets in accordance with general Government cor
poration accounting practice.
4. It has been proposed to the Congress to repay the United States Treasury and the Federal Reserve
banks the amount of capital invested by them in the Corporation. In this connection, it should be noted
that by action of Congress no dividends have been paid or are payable on this capital. However, the
capital has been invested in United States Government obligations, and the income therefrom has been
accumulated in the overall surplus from insurance operations; this has the effect of a grant of funds to
N ote : Furnished by the Comptroller General of the United States.
39
ORGANIZATION AND FINANCIAL STATEMENTS
Table 17.
F ederal D
e p o s it
B a l a n c e S h e e t s , J u n e 30, 1946
I n s u r a n c e C o r p o r a t io n C o m p a r a t iv e
and
1945—
from
A u d it o r s ’ R
eport—
June 30,
1946
1945
Continued
Increase
(-decrease)
L IA B IL IT IE S
C u rren t lia b ilitie s:
Accounts payable.......................................................................
Earnest m oney, escrow funds, and collections held for
others........................................................................................
Depositors’ net balances in closed insured banks pending
settlement (per con tra)........................................................
453,994
494,255
744,596
634,017
110,579
110,796
131,619
-20,823
1,309,386
1,259,891
49,495
D eferred cred its, in te re st earned o n loa n s, a n d a l
lo w a b le re tu rn s o n p u rch a sed assets (N ote 2 ). . . .
696,317
331,980
364,337
In v e stm e n t o f U. S. G o v e rn m e n t a n d G o v e rn m e n t
a gen cies, represented by non voting capital stock without
par value (Notes 4 and 5):
U . S. Treasury.......................................................................
Federal Reserve ban ks.........................................................
150,000,000
139,299,557
150,000,000
139,299,557
289,299,557
289,299,557
—
703,444,551
579,169,432
124,275,119
994,749,811
870,060,860
124,688,951
T o ta l cu r r e n t lia b ilitie s (N ote 3 ) .....................................
T o ta l in v e s t m e n t ...............................................................
S urplus, considered as a reserve for future deposit insur
ance losses and related expenses (Notes 4 and 6 and
Exhibit 2 [Table 1 6 ])...............................................................
-40,261
the Corporation by the United States Government. On a compound interest basis, considering the
average rate earned year by year on United States Government obligations, the total amount of the
grant thus accumulated has been calculated to be $113,808,238 at June 30, 1946, including $9,481,208
for the fiscal year 1946. However, the Corporation has carried on the extraneous function of supervising
Federal credit unions for the United States Government without reimbursement from the United States
Treasury for the excess of costs of the activities over fees charged the credit unions (no appropriations
were requested); the net costs charged to surplus to June 30, 1946, were $671,329, including $196,568
for the fiscal year 1946.
5. Under the provisions of section 12b of the Federal Reserve Act, as amended by section 101 of
the Banking A ct of 1935 (subsection “ o” ), the Corporation is authorized and empowered to issue and
to have outstanding notes, debentures, bonds, or other such obligations, in a par amount of $974,600,000
at June 30, 1946.
The Secretary of the Treasury, at his discretion, is authorized to purchase any such obligations of
the Corporation, upon the request of the Board of Directors of the Federal Deposit Insurance Cor
poration, whenever in their judgment additional funds are required for insurance purposes. The Secretary
of the Treasury is authorized and directed to purchase such obligations in an amount not to exceed
$250,000,000, par value.
Further, upon the request of the Board of Directors of the Federal Deposit Insurance Corporation,
whenever in their judgment additional funds are required for insurance purposes, the Reconstruction
Finance Corporation is authorized and directed, in accordance with subsection “ b ” of section 5e of the
Reconstruction Finance Corporation A ct, as amended, to purchase such obligations in an amount not
to exceed $250,000,000, par value. In the event the Reconstruction Finance Corporation fails to make
such purchases, the Secretary of the Treasury is authorized and directed to do so in its stead.
The Corporation has never used the borrowing power granted to it by this section.
6. The Corporation estimates that the insured deposits in operating insured banks amounted to
approximately $69,000,000,000 at June 30, 1946, as compared with $55,000,000,000 at June 30, 1945.
40
FEDERAL DEPOSIT INSURANCE CORPORATION
G eneral A
c c o u n t in g
O f f ic e
WASHINGTON 25
CORPORATION AUDITS DIVISION
AUDITORS’ OPINION
We have examined the balance sheet of the F e d e r a l D e p o s i t I n s u r a n c e C o r
as of June 30, 1946, and the income statement for the year ended that date.
I n connection therewith, we reviewed the system of internal control and the accounting
procedures of the Corporation and, without making a detailed audit of transactions,
have examined or tested accounting records and other supporting evidence by methods
and to the extent deemed appropriate in view of the work performed by the Cor
poration’s internal auditing staff. This examination was made pursuant to the re
quirements of section 5 of the Act of Congress of February 24, 1945 (59 Stat. 6), a
full report of which is being submitted to the Comptroller General of the United
States. A similar examination of the balance sheet of the Corporation as of June 30,
1945, and the income statement for the year ended that date was made by George
Rossetter & Co., independent public accountants, under our direction.
p o r a t io n
We did not inspect the collateral under loans to merged insured banks or the docu
ments evidencing ownership of assets purchased from merged or closed insured banks,
which collateral and assets for the most part are held by liquidating agents of the
Corporation at various locations throughout the country, but we reviewed the reports
of the Corporation’s internal auditors on their examination of such collateral and
purchased assets.
In our opinion, the accompanying balance sheets as of June 30, 1945 and 1946, and
the income statements for the two years ended on those dates fairly present, in con
formity with generally accepted accounting principles applied on a consistent basis,
the financial position of the Federal Deposit Insurance Corporation at June 30, 1945
and 1946, and the results of its operations for the two years ended on those dates.
T. C o l e m a n A n d r e w s
Director
Washington, D . C.
January 30, 1947
PART TWO
BANKING DEVELOPMENTS
B an ks and
B ranches
Banks and banking offices. At the close of 1946, 14,759 banks were
operating in the United States and possessions. With branches, these
banks were doing business in 18,979 offices.1 There was a net increase of
34 operating banks during the year, compared with 15 in the preceding
year. The increase in the number of banks during the past two years is
a reversal of the trend toward a smaller number of banks which existed
during the previous eleven years.
Branches of operating banks, including offices or “ facilities” at military
establishments, increased by 52 during 1946, compared with 27 in the
preceding year. The increase in 1946 was substantially smaller than
during the war years, 1943 and 1944, when large numbers of “ facilities”
were opened. Many of these were closed in the latter part of 1945 or in
1946. The increase during 1946 in the number of branches other than
“ facilities” was 193, a larger number than in any other year since the
beginning of deposit insurance.
Changes in the number of operating banks and branches during each
year since December 31, 1940, and the number at the close of each year,
are given in Table 18.
Table 18.
N
um ber
of
and
O p e r a t in g B a n k s
P o s s e s s io n s , D
and
ecem ber
Number of banking offices at end of year
B
ranches
in
the
U n it e d S t a t e s
31, 1941-1946
N et change during the year
Year
Total
1946.................
1945.................
1944.................
1943.................
1942.................
1941.................
18,979
18,893
18,851
18,751
18,666
18,769
Banks
Branches
4,220
4,168
4,141
4,000
3,813
3,769
14,759
14,725
14,710
14,751
14,853
15,000
Total
+ 86
+ 42
+ 100
+ 85
-103
- 34
Banks
+ 34
+ 15
- 41
-102
-147
- 73
Branches
+ 52
4- 27
+ 141
+ 187
+ 44
+ 39
Insured and noninsured banks. Of the banks in operation at the
close of 1946, 13,550 were insured and 1,209 noninsured. The number
insured represents a larger proportion of all operating banks than at any
previous time. When the permanent insurance plan went into effect in
August 1935, 89 percent of all operating banks were insured; at the end
of 1946, 92 percent. A substantial number of the banks which were not
insured at the time the permanent insurance plan went into effect have
since been admitted to insurance, and most of the banks beginning
business since that time have become insured.
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.
43
44
FEDERAL DEPOSIT INSURANCE CORPORATION
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 by years since 1940 is given in Table 19.
Table 19.
N
um ber
of
Insured
and
P
and
Total number
of banks
D ec. 31
N
anks
in
U n it e d St a t e s
the
1941-1946
Insured
14,759
14,725
14,710
14,751
14,853
15,000
1946.........................
1945.........................
1944.........................
1943 .........................
1942.........................
1941.........................
B
o n in s u r e d
o s s e s s io n s ,
Percentage
insured
N oninsured
13,550
13,494
13,460
13,458
13,403
13,482
91.8
91.6
91.5
91.2
90.2
89.9
1,209
1,231
1,250
1,293
1,450
1,518
Admissions to and terminations of insurance. The character of
changes in the number of insured banks during 1946, during each of the
preceding four years, and during the 6-year period from the beginning of
1936 (the first full year under the permanent deposit insurance plan) to
the end of 1941, is given in Table 20.
Table 20.
C hanges
in
the
U n it e d St a t e s
e x c l u d in g
banks
T ype of change
N
um ber
Insured B an ks
of
s u c c e e d in g
1936-46
other
1946
in s u r e d
1945
1944
381
48
29
13
167
39
143
18
162
7
2
32
1
7
20
98
125
119
1,081
1
4
6
196
1
1
13
111
67
27
76
43
63
36
574
187
435
100
78
406
26
18
111
32
25
13
32
3
1
1,616
105
88
T e rm in a tio n s o f in s u ra n c e — t o t a l . ..
Banks ceasing operations:
Suspended banks not reopened or
succeeded...........................................
Mergers with aid of the Corporationnet decrease.......................................
Other mergers, consolidations and
absorptions— net decrease.............
Other liquidations................................
Other terminations of insurance:
Insured status terminated b y F D IC .
Withdrawals from insurance.............
Successions or absorptions b y noninsured banks........................................
34
207
127
1
941
320
89
12
3
6
1
12
2
72
15
+
1936-41
-700
122
+
1942
40
161
56
1943
- 79
984
+
banks
55
-632
A d m is sio n o f b a n k s— t o t a l ...................
W ithout action of F D IC :2
Banks beginning deposit operations.
Banks previously in operation or
successors thereto............................
the
180
N et c h a n g e ...................................................
B y action of F D IC :1
Banks beginning deposit operations.
Banks previously in operation or
successors thereto............................
in
P o s s e s s i o n s , 1936-1946
and
2
100
+
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 pages 20-21 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 becom e insured without
action b y the Corporation.
45
BANKS AND BRANCHES
During 1946, 161 banks were admitted to insurance. Of these, 132 were
banks beginning deposit operations during the year, and 29 were pre
viously operating banks or successors to such banks which were admitted
to insurance. Of the 161 banks admitted, 126 were banks which had been
approved for insurance by the Board of Directors of the Corporation;
the other 35 were banks which were granted charters by the Comptroller
of the Currency or were admitted to the Federal Reserve System and
thereby became automatically insured by operation of law.
These admissions to insurance were partially offset by 102 banks which
ceased operation by absorption or voluntary liquidation and 3 which
were succeeded by noninsured banks or withdrew from insurance.
Changes among branches o f insured banks. In 1946 insured
banks opened 214 branches, excluding cases of transfer or sale of a branch
by one bank to another. Of these, 71 were branches which were approved
by the Corporation and 143 were established by national banks and
State banks members of the Federal Reserve System. Similar figures for
each of the preceding four years and for the 6-year period, 1936-1941, are
shown in Table 21.
T a b le 2 1 . C h an g es
am ong
U n it e d St a t e s
T ype of change
B ranches
In sured B a n k s
of
in
the
P o s s e s s io n s , 1936-1946
and
1936-46
1946
1945
1944
1943
1942
1936-41
N et c h a n g e ...................................................
+897
23
+ 135
+249
41
+403
B ra n ch es o p e n e d fo r b u sin ess— t o ta l
1,549
214
169
166
231
88
681
35
2
8
9
14
2
236
293
10
59
10
20
15
25
11
10
18
16
347
8
56
86
174
23
326
312
46
89
34
41
19
12
16
6
11
18
200
146
B ra n ch es o f b a n k s a d m itte d t o i n
s u ra n ce — t o t a l ........................................
96
1
2
62
2
29
Approved b y the Corporation1.............
W ithout action of the Corporation2. . .
94
2
2
62
2
1
28
1
Approved b y F D IC :1
Facilities approved as agents of the
G overnm ent......................................
Absorbed banks converted into
branches or replacing other offices
closed or relocated...........................
Other branches opened.......................
W ithout action b y F D IC :2
Facilities approved as agents of the
G overnm ent......................................
Absorbed banks converted into
branches or replacing other offices
closed or relocated...........................
Other branches opened.......................
+
46
+
+
172
163
B ra n ch es o f b a n k w ith d ra w in g fr o m
F ed era l R eserve S y stem a n d i n
s u ra n ce
...............................................
2
B ra n ch es d is c o n tin u e d — t o t a l .............
746
169
146
33
44
49
305
Facilities approved as agents of the
Government ........................................
Other branches discontinued.................
296
450
149
20
131
15
16
17
44
49
305
2
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 b y the Corporation is not required for establishment of branches by national banks or
State banks members of the Federal Reserve System.
46
FEDERAL DEPOSIT INSURANCE CORPORATION
A large proportion of the branches opened and discontinued during
the past four years were “ facilities” at military establishments.
A ssets
and
D
e p o s it s
The contraction in bank assets and deposits in 1946 was a result of
the Federal debt retirement program. Just as the increase in Federal
debt was the major factor in the expansion of bank assets during the
war, the repayments made on the debt brought a decline in bank assets.
This decline was not accompanied by any contraction in loans to and
deposits of business and individuals. On the contrary, these loans and
deposits rose substantially during the first full postwar year.
Assets and deposits of all banks. Total assets of all commercial
and mutual savings banks decreased 5 percent during the year from $178
billion on December 31, 1945, to $169 billion on December 31, 1946.
Holdings of United States Government obligations by all banks were
reduced $15 billion to $87 billion at the end of 1946, while holdings of
other securities increased by $1 billion. Loans, discounts, and overdrafts
increased $5 billion in 1946 to $36 billion. Changes in assets and liabilities
of all banks in 1946 are shown in Table 22.
Table 22.
A
U n it e d S t a t e s
ssets
and
and
L ia b il it ie s
P o s s e s s io n s , D
of
A ll B a n k s
ecem ber
31, 1946
in
th e
an d
1945
(Amounts in millions of dollars)
Change during 1946
Asset, liability, or capital account item
Dec. 31,
1946
D ec. 31,
1945
Amount
Percent
T o t a l a s s e t s .............................................................................
$169,256
$178,203
$ -8,947
Cash and amounts due from other ban ks.....................
United States Government obligations..........................
Other securities....................................................................
Loans, discounts, and overdrafts....................................
Miscellaneous assets...........................................................
35,185
87,032
9,517
35,810
1,712
35,585
101,822
8,595
30,473
1,728
-400
-14,790
922
5,337
-16
-1 .1
-1 4.5
10.7
17.5
-0 .9
-5 .0 %
T o ta l lia b ilities and ca p ita l a c c o u n t s .........................
169,256
178,203
-8,947
-5 .0
T o t a l d e p o s it s ....................................................................
Business and personal....................................................
156,753
133,956
166,474
121,776
9,721
12,180
-5 .8
10.0
81,276
50,281+
2,396
73,876
1+5,285
2,615
7,1+00
l+,999
-2 1 9
10.0
United States G overnm ent...........................................
States and political subdivisions..................................
Interbank (including postal savings).........................
Miscellaneous liabilities.....................................................
Total capital accounts........................................................
3,164
6,895
12,738
1,158
11,345
24,770
5,786
14,142
1,203
10,526
-21,606
1,109
-1,404
-45
819
-87.2
19.2
-9 .9
-3 .7
7.8
Number of banks............ .........................................................
14,655
14,621
34
.2
......................................
.........................................
.............................
Demand
Tim e
Certified checks, etc
11.0
-8.1+
Business and individual deposits in all commercial and mutual savings
banks continued to rise during the first postwar year, but at a slower rate
than during the war. On December 31, 1946, these deposits amounted
47
ASSETS AND DEPOSITS
to $134 billion, 10 percent larger than at the preceding year-end. For the
year 1946 as a whole, the 10 percent growth in demand deposits was
about the same as the 11 percent rise in time deposits. In 1944 and 1945
time deposits had accumulated at a more rapid rate than demand de
posits; in the last six months of 1946, however, this relation was reversed
and demand deposits increased 6 percent while time deposits rose only
4 percent.
The expansion in deposits for private account was more than counter
balanced by the reduction of $22 billion in United States Government
deposits which amounted to only $3 billion at the end of 1946. Accord
ingly, total deposits of all commercial and mutual savings banks fell.
Total deposits of $157 billion on December 31, 1946, were 6 percent less
than the $166 billion held at the end of 1945.
Comparative changes during 1946 in principal assets and liabilities of
all commercial banks and all mutual savings banks are shown in Table 23.
Table 23.
M
utual
A
ssets
and
S a y in g s B
L ia b il it ie s
anks
D
in
ecem ber
the
of
U
C
all
n it e d
31, 1946
B anks
o m m e r c ia l
Sta te s
and
and
all
P o s s e s s io n s ,
and
1945
(Amounts in millions of dollars)
All commercial banks
Asset, liability, or
capital account item
T o t a l a s s e t s ................................
Dec. 31,
1946
Dec. 31,
1945
$150,552
$161,182
34,366
All mutual savings banks
Percentage
change
during
1946
-6 .6 %
D ec. 31,
1946
$18,704
Percentage
change
during
1946
Dec. 31,
1945
$17,021
9 .9%
Cash and amounts due from
other banks...........................
United States Government
obligations.............................
Other securities........................
Loans, discounts, and over
drafts ......................................
Miscellaneous assets...............
34,975
-1 .7
819
610
34.3
75,253
8,118
91,149
7,340
-17.4
10.6
11,779
1,399
10,673
1,255
10.4
11.5
31,283
1,532
26,193
1,525
19.4
0.5
4,527
180
4,280
203
5.8
-11.3
T o t a l lia b ilitie s a n d ca p ita l
a c c o u n t s ..............................
150,552
161,182
-6 .6
18,704
17,021
9.9
139,883
151,089
-7 .4
16,870
15,385
9.7
117,092
106,397
10.1
16,865
15,379
9.7
81,265
33,1+32
2,395
73,867
29,917
2,613
10.0
11.7
-8 .3
11
16,852
2
9
15,368
2
22.2
9.7
0.0
3,161
T o t a l d e p o s it s .......................
Business and personal—
tota l....................................
...............
..................
.....
Dem and
T im e
Certified checks, etc
United States Government
States and political sub
divisions ............................
Interbank (including postal
savings).............................
Miscellaneous liabilities.........
Total capital a ccou nts...........
24,767
-87.2
2
4
-5 0.0
6,893
5,784
19.2
2
2
0.0
12,737
1,108
9,561
14,141
1,160
8,933
-9 .9
-4 .5
7.0
1
50
1,784
i
43
1,593
16.3
12.0
Number of banks.........................
14,114
14,079
0.2
541
542
-0 .2
1 Less than $500,000.
Total assets of commercial banks on December 31, 1946, amounted to
$151 billion, a contraction of almost $11 billion during the year. The
48
FEDERAL DEPOSIT INSURANCE CORPORATION
dominant factor in this decline was the $16 billion decrease in holdings
of United States Government obligations which was partially offset by
a $5 billion expansion in total loans.
Assets of mutual savings banks continued to rise during 1946 to $19
billion, an increase of 10 percent. Most of this increase in assets of mutual
savings banks was accounted for by the $1 billion addition to United
States Government obligation portfolios which amounted to almost $12
billion at the end of the year. Unlike commercial banks, mutual savings
banks held only a small amount of the short-term issues which wTere
redeemed under the Federal debt retirement program. Loans were
expanded about 6 percent during the year to $4.5 billion after declining
moderately during the war period.
The contrast between the commercial and mutual savings banks was
also apparent on the liability side of the balance sheet. Commercial
banks held almost all of the United States Government war loan ac
counts and felt the full impact of the Federal debt retirement program
during 1946. United States Government deposits in these banks were
drawn down $22 billion during the year. This reduction was double the
increase in non-government deposits; in consequence, total deposits in
all commercial banks decreased 7 percent from $151 billion on December
31, 1945, to $140 billion at the end of 1946. Business and personal deposits
continued to expand to $117 billion on December 31, 1946, an increase
of $11 billion or 10 percent during the year.
While total deposits of commercial banks were declining, total deposits
of mutual savings banks rose to $17 billion at the end of 1946. However,
the 10 percent growth during 1946 in mutual savings bank deposits, most
of which are time deposits of individuals, was at a less rapid rate than the
12 percent growth in time deposits of commercial banks.
Insured commercial banks. More detailed information is available
for loans and investments of insured commercial banks than for all
commercial banks. For this reason the following paragraphs on loans and
investments refer to insured commercial banks. In view of the fact that
95 percent of total commercial bank assets are held by insured com
mercial banks, data for this group may be accepted as representative
of all commercial banks.
United States Government obligations. The reduction in insured
commercial bank holdings of United States Government obligations during
1946 was limited to short-term issues. Holdings of Treasury bills, cer
tificates of indebtedness, and Treasury notes declined by $17 billion
while holdings of bonds rose $2 billion during the year. As a result, the
average maturity was lengthened substantially in 1946, in contrast to
the wartime trend of increasing the proportion of short-term Government
obligations in bank portfolios.
49
ASSETS AND DEPOSITS
Table 24 shows the maturity distribution of United States Government
obligations held by insured commercial banks at the end of 1946, 1945,
and 1941. Holdings of bills, certificates, and notes declined from 42
percent of the total Government obligations at the end of 1945 to 28
percent at the end of 1946. The proportion of short-term issues, including
bonds maturing in less than five years, held on December 31, 1946, was
less than that on December 31, 1945, and moved toward the proportion
held at the end of 1941.
Table 24.
D
ir e c t
M
a t u r it ie s
and
of
U n it e d St a t e s G
G uaranteed, H
D
ecem ber
eld
by
overnm ent
O b l ig a t io n s ,
I n s u r e d C o m m e r c ia l B a n k s ,
31, 1946, 1945,
an d
1941
(Amounts in millions of dollars)
Amount
Percentage distribution
Type and maturity
1946
1945
1941
1946
1945
1941
T o t a l U. S. G o v e rn m e n t o b
lig a tio n s ...................................
$73,575
$88,933
$21,047
100.0%
100.0%
100.0%
Marketable issues:
Direct:
Treasury bills1.................
Certificates of indebted
ness1................................
Treasury notes1...............
1,272
2,456
988
1.7
2.8
4.7
12,293
6,781
19,075
16,047
3,159
16.7
9.2
21.5
18.0
15.0
52,033
50,139
12,798
70.8
56.4
60.8
12,728
29,700
6,597
3,008
9,030
32,230
6,092
2,787
1,551
3,970
5,930
1,3U7
17.3
10.2
36.2
6.9
3.1
7.U
18.8
28.2
6.J,
4,102
(3)
(3)
19.5
1.6
1.3
Bonds— to ta l........................
Bonds maturing in:2
........
.........
........
........
5 years or less
5 to 10 years
10 to 20 years
Over 20 years
Guaranteed issues...............
15
22
Non-marketable issues4..........
1,181
1,194
uo.u
9.0
U.l
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.
3 Less than 0.05 percent.
4 United States savings bonds.
Since the larger banks located in the larger centers had higher pro
portions of short-term obligations, their total portfolios decreased more
in 1946 than those of the smaller banks. Holdings of Treasury notes,
bills, and certificates of banks members of the Federal Reserve System
located in the financial districts of New York and Chicago declined about
60 percent in 1946 while elsewhere the decline for member banks was
46 percent. For insured banks not members of the Federal Reserve
System, which are for the most part smaller banks located in smaller
centers, the decrease in short-term holdings was only 13 percent. In
vestments in Federal Government bonds increased in all three groups of
banks although the rise in the Federal Reserve member banks in New
York and Chicago was small. Comparison of holdings of bonds with
those of Treasury notes, bills and certificates by these three groups of
banks during the period 1941 to 1946 is shown in Chart D.
50
FEDERAL DEPOSIT INSURANCE CORPORATION
CHART D
UNITED STATES GOVERNMENT OBLIGATIONS HELD BY INSURED
COMMERCIAL BANKS, JUNE 30 AND DECEMBER 31,1941-1946
BILLIONS OF DOLLARS
BILLIONS OF DOLLARS
51
ASSETS AND DEPOSITS
State and local obligations. Obligations of States and political
subdivisions held by insured commercial banks at the end of 1946
amounted to $4.3 billion. These holdings have increased moderately
since 1941. As a result of this increase and because the net amount of
such obligations outstanding has declined from $15 billion in 1941 to
$13 billion in 1946, insured commercial banks now hold about 30 percent
of the total as compared with 24 percent in 1941.
Insured commercial bank holdings of obligations of States and political
subdivisions were equal to 46 percent of their total capital accounts at
the end of 1946. State-wide averages of bank investments in such se
curities ranged from 242 percent of total capital accounts in Mississippi
to 3 percent in the District of Columbia. There was an even wider range
of variation in this ratio among the individual banks. A distribution is
available for the 6,454 insured commercial banks submitting reports to
the Federal Deposit Insurance Corporation and is shown in Table 25.
These banks had about three-quarters of a billion dollars invested in
State and local government obligations, or an amount equal to about
63 percent of their capital accounts on December 31, 1946. Some banks
do not invest in this type of obligation. No such securities were reported
by 1,380 banks or 21 percent of the total. Another 61 percent of the
banks reported holdings amounting to less than their capital accounts.
The remaining 18 percent held amounts equal to more than their total
capital accounts and 5 of these reported holdings of more than 10 times
their capital accounts.
Table 25.
F ederal D
D
is t r ib u t io n
O b l ig a t io n s
T
otal
of
B a n k s S u b m it t in g R
I n s u r a n c e C o r p o r a t io n A
e p o s it
of
States
C a p it a l A
and
P
o l it ic a l
ccounts,
D
All b anks...........................................................................................
to
S u b d iv is io n s
ecem ber
Bank group
eports
c c o r d in g
to
R
the
a t io
of
to
31, 1946
Percentage
distribution
100.0%
Banks with a ratio of State, county and m unicipal otv
ligations to total capital accounts of—
N o n e ................................................................................................
0.1% to 4 9 % ..................................................................................
50% to 9 9 % .................................................................................. .
100%
200%
300%
400%
500%
to
to
to
to
or
1 9 9 % .............................................................................. .
2 9 9 % .............................................................................. .
3 9 9 % ..............................................................................
4 9 9 % ..............................................................................
m ore.................................................................................
21.4
48.5
12.6
9.8
3.9
1.9
0.9
1.0
Changes in types of bank loans. A decline in the volume of loans
for purchasing or carrying securities during 1946 was more than offset
by substantial increases in other types of loans outstanding at insured
52
FEDERAL DEPOSIT INSURANCE CORPORATION
commercial banks. Total loans increased $5 billion and amounted to
$31 billion at the end of the year. Commercial and industrial loans rose
48 percent to $14 billion, consumer loans to individuals rose 71 percent
to $4 billion, and real estate loans rose 52 percent to $7 billion. Loans for
purchasing or carrying securities decreased by almost $4 billion to $3
billion outstanding on December 31, 1946. Most of the increase in this
type of loan during the war was to provide credit for the purpose of
purchasing or carrying Government obligations. The amount of the
different types of loans outstanding at the end of 1945 and 1946, together
with the change during 1946, is shown in Table 26.
Table 26.
C hange
in
L oans
C o m m e r c ia l B
and
anks
D
D
is c o u n t s
u r in g
of
In sured
1946
(Amounts in millions of dollars)
Change diiring 1946
Type of loan
D ec. 31,
1946
Dec. 31,
1945
Amount
L oa n s a n d d is c o u n ts — t o t a l .............................................
$30,740
$25,769
$4,971
Commercial and industrial................................................
Agricultural (excluding loans on farm la n d ).................
Consum er..................... .........................................................
For purchasing or carrying securities.............................
Real estate— to ta l...... .........................................................
On farm land.....................................................................
On residential properties.................................................
On other properties...........................................................
All other loans (including overdrafts)............................
14,019
1,358
4,031
3,127
7,107
68.4
5,058
1,365
1,098
9,462
1,314
2,361
6,771
4,680
507
3,332
8U1
1,181
4,557
44
1,670
-3,644
2,427
177
1,726
52U
-8 3
Percent
19.3%
48.2
3.3
70.7
-5 3.8
51.9
su.y
51.8
62.3
-7 .0
The largest degree of expansion of total loans took place in the smaller
banks. These banks not only expanded their commercial, consumer, and
real estate loans to a greater extent than did the large banks, but they
were relatively little affected by the decline in security loans. This wTas
in marked contrast to the contraction in total loans of the large banks
in New York, where the curtailment of security loans was greater than
the expansion in other types of loans.
Real estate loans. The 52 percent expansion of real estate loans was
greater in 1946 than in any other year for which these data are available.
This type of loan accounted for 5 percent of total assets and 23 percent
of total loans at the end of 1946 compared with 3 percent of total assets
and 18 percent of total loans on December 31, 1945.
Every State reported substantial percentage gains in real estate loans
during the year. These percentage increases by State are displayed in
Chart E. Insured commercial banks in five States— Oregon, Montana,
Washington, New Mexico, and Alabama— more than doubled their
real estate loans in 1946. States in the South and West showed generally
larger increases in these loans than States in the northeastern section
of the country.
CHART E
PERCENTAGE INCREASE DURING 1946 IN TOTAL REAL ESTATE LOANS
OF INSURED COMMERCIAL BANKS
54
FEDERAL DEPOSIT INSURANCE CORPORATION
The smallest percentage increase in real estate loans was reported for
Vermont, where the proportion of total assets invested in real estate
loans was 21 percent, the largest for any State. California, with the second
highest ratio of real estate loans to total assets, had a relatively smaller
proportionate increase in these loans than other States on the Pacific
Coast.
Loans on farm lands increased 35 percent to $0.7 billion, while loans
on urban residential properties increased 52 percent to $5.1 billion during
1946. Loans on all other properties, which include loans on commercial
and industrial real estate, showed the largest relative gain, 62 percent,
and totaled $1.4 billion at the close of 1946.
C
a p it a l
Total capital accounts of all commercial and mutual savings banks
continued to grow in 1946, and amounted to $11.4 billion at the end of
the year. For all commercial banks, capital accounts amounted to $9.6
billion on December 31, 1946, while total surplus and capital accounts
of mutual savings banks were $1.8 billion. Changes during 1946 for the
different types of capital accounts are presented in Table 27.
Table 27.
C h a n g e in
C o m m e r c ia l B a n k s
C a p ita l A c c o u n ts a n d C a p ita l R a tio s o f A l l
and^
A l l M u tu a l^ S a v in g s B a n k s D u r in g
1946
(Amounts in millions of dollars)
All commercial banks
Type of capital account or
capital ratio
C a p ita l a c c o u n t s — t o t a l ........
Capital stock, notes, and
debentures................ ............
Surplus........................ ..............
Undivided profits, including
all other capital a ccou n ts..
R a t io o f t o ta l ca p ita l a c
cou n ts to :
Total assets.................. ............
Assets other than cash and
United States Government
obligations.............................
D ec. 31,
1946
D ec. 31,
1945
$9,561
$8,933
3,243
4,155
3,130
3,873
2,163
1,930
6.4 %
5.5%
23.4
25.5
All mutual savings banks
Percentage
increase
during
1946
7 .0 %
D ec. 31,
1946
D ec. 31,
1945
Percentage
increase
during
1946
$1,784
$1,593
3.6
7.3
5
1,218
5
1,101
10.6
12.1
561
487
15.2
9.5 %
9.4 %
29.2
12.0%
27.8
The 7 percent growth in capital accounts of all commercial banks
during 1946 was at about the same rate as during the war years. Total
assets, however, declined during the year; accordingly the ratio of total
capital accounts to total assets increased from 5.5 percent to 6.4 percent.
Although there has been a steady growth in total capital accounts since
the business recession of 1938, the increase in total assets had been
55
CAPITAL
relatively much greater in each year through 1945, so that the capital
ratio declined from 11.8 percent at the end of 1937 to a low of 5.5 percent
at the end of 1945. During 1946, however, the continued growth in capital
accounts was coupled with a decline in total assets and the persistent
downward movement in this ratio was reversed for the first time since
1937.
In contrast to the increase in the ratio of total capital accounts to
total assets in 1946 was the drop in the ratio of capital accounts to assets
other than cash and United States Government obligations. Early in the
war this capital ratio rose chiefly because of the decline in loans; during
the rest of the war it remained high because almost all of the increase
in bank assets represented investment in Federal securities. With the
sharp postwar expansion in loans, however, this ratio has declined from
25.5 percent at the end of 1945 to 23.4 percent at the close of 1946.
Examiners’ adjustment of capital and appraisal of assets. The
decline in the average ratio of capital to total assets since 1938 is empha
sized by the change in the distribution of the ratios for individual banks.
Such distributions for insured commercial banks examined in 1946 and
1938 based on the value of assets and capital accounts as adjusted by the
examiners, are shown in Table 28.1
T a b le 2 8 .
D is t r ib u t io n of I n su r e d C o m m ercial B a n k s A ccording to
R a tio of A djusted C a p it a l A ccou n ts to A ppraised V a l u e of T o ta l A ssets
e x a m in a t io n s in
1946 a n d 1938
Number of banks
Percentage Distribution
Bank group
1946
A ll b an k s e x a m in e d ............................................
1938
1946
12,493
13,350
100.0%
4,578
7,087
704
124
248
3,021
5,524
4,557
36.7
56.7
5.6
1.0
1938
100.0%
B an k s w ith a ra tio o f a d ju s te d c a p ita l a c
c o u n t s t o a p p ra ised va lu e o f t o ta l
assets o f :
0.0 % to 4 .9 % ......................................................
5.0% to 9 .9 % ......................................................
10.0% to 1 4 .9 % ..................................................
15.0% or m ore.....................................................
1.9
22.6
41.4
34.1
In 1938, three-fourths of the banks examined had adjusted capital
ratios of 10 percent or more as compared with less than a tenth of the
banks in 19462. Conversely, more than a third of the banks had capital
amounting to less than 5 percent of their total assets in 1946, while only
2 percent of the banks had a capital ratio that low in 1938.
1 The number of banks included in tabulations of examination data is less than that included in
tabulations of reports of assets and liabilities since current examination reports are not available for all
o f the insured commercial banks operating at the end of each year. See page 133.
2 Adjusted capital accounts equal book value of total capital accounts plus the value of assets not
shown on the books, less examiners’ deductions from total assets, and less liabilities not shown on the
books.
56
FEDERAL DEPOSIT INSURANCE CORPORATION
Assets of the insured commercial banks examined in 1946 were ap
praised at virtually 100 percent of book value. Assets classified as sub
standard amounted to only $526 million or 0.36 percent of the appraised
value of total assets, as compared with 0.45 percent in 1945 and 5.12
percent in 1939. The trend since 1939 of the ratios of substandard assets
to the appraised value of total assets and to adjusted capital accounts
is shown in Table 29.
Table 29.
Substan dard A
sset
R
a t io s
E x a m in e d
Insured C
of
o m m e r c ia l
B anks
1939-1946
in
R atio of substandard assets to—
Year
Appraised
value of
total assets
Adjusted
capital
accounts
1946........................................................................................................
1945........................................................................................................
1944.......................................................................................................
1943.......................................................................................................
0.36%
0.45
0.69
1.24
6.02%
7.58
10.92
17.84
1942.......................................................................................................
1941.......................................................................................................
1940........................................................................................................
1939........................................................................................................
2.13
2.84
3.93
5.12
25.26
31.12
40.35
48.21
The distribution of insured commercial banks according to the ratio
of substandard assets to adjusted capital accounts in 1946 and 1945 is
shown in Table 30.
Table 30.
D
R
of
a t io
is t r ib u t io n
of
I n s u r e d C o m m e r c ia l B
Substan dard A
ssets
e x a m in a t io n s
to
in
A
d ju sted
1946
and
anks
A
C a p it a l A
c c o r d in g
to
ccounts
1945
Number of banks
Percentage distribution
Bank group
1946
1945
1946
1945
12,493
12,473
100.0%
100,0%
N o n e ......................................................................
9 .9 % or less.........................................................
10.0% to 1 9 .9 % ..................................................
20.0 % to 2 9 .9 % ..................................................
3 0.0% to 3 9 .9 % ..................................................
4 0.0% to 4 9 .9 % ..................................................
3,741
5,753
1,558
640
345
183
3,106
5,902
1,836
769
332
202
29.9
46.0
12.5
5.1
2.8
1.5
24.9
47.3
14.7
6.2
2.7
1.6
50.0% to 9 9 .9 % ..................................................
100.0% or m ore...................................................
228
45
280
46
1.8
.4
2.2
.4
A ll b a n k s .................................................................
B an ks w ith a r a t io o f s u b sta n d a rd assets
t o a d ju s te d ca p ita l a c c o u n t s o f —
The percentage of substandard assets to adjusted capital accounts
continued to decline to 6.02 percent for banks examined in 1946 from
7.6 percent in 1945. These relatively low ratios stand out in contrast to
57
CAPITAL
the ratio of 48.2 percent of adjusted capital accounts in 1939. In 1946,
3,741 of the insured banks examined had no assets classified as sub
standard, while 273 insured banks had substandard assets which amounted
to 50 percent or more of adjusted capital accounts.
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
Both total and net current operating earnings of insured commercial
banks have increased in each year since 1938, and in 1946 attained the
highest levels on record. The 1946 increases, in each case 15 percent,
reflected chiefly the higher average rate of return secured on loans and
the larger volume of loans. Net profits after taxes were slightly below the
level attained in 1945 because charge-offs and income taxes were higher,
and recoveries and profits on assets sold were lower. The 1946 net profits
represented a rate of 10 percent of total capital accounts. The amounts
of major items of earnings and expenses, 1934-1946, and percentage
changes to 1946 from selected earlier years are presented in Table 31.
Table 31.
E a r n in g s , E x p e n s e s ,
and
P r o f it s
of
Insured
C o m m e r c ia l B
anks
1934-1946
(Amounts in millions of dollars)
N et
profits
after
taxes
Cash
dividends
declared
and in
terest paid
on capital
Total
current
operating
earnings
Total
current
operating
expenses1
Net
current
operating
earnings1
Profits
on
securities
sold
Net
chargeoffs2
on assets
1946. .
1945..
1944..
1943. .
2,863
2,482
2,215
1,959
1,763
1,523
1,357
1,256
1,100
960
858
703
209
267
130
103
83
22
34
41
323
299
203
128
902
906
751
638
299
274
253
233
1942..
1941. .
1940. .
1939..
1,790
1,730
1,631
1,605
1,222
1,216
1,170
1,148
569
514
461
457
66
145
178
215
114
154
215
272
79
50
23
12
441
455
401
388
228
253
237
232
1938..
1937..
1936..
1935..
1934..
1,584
1,634
1,567
1,486
1,518
1,148
1,156
1,114
1,078
1,114
436
478
453
408
404
173
117
268
2314
1484
299
203
185
4264
8904
10
11
12
5
3
300
381
524
207
-3 4 0 5
222
226
223
208
188
Year
Incom e
taxes3
P e rce n ta g e c h a n g e :
1945to
1946
1941 to
1946
1935 to
1946
15.4%
15.8%
65.5
45.0
114.0
14.6%
-2 1 .7 %
44.1
-4 6.1
277.3%
546.0
98.2
18.2
92.7
63.5
169.6
-9 .5
-80.5
6360.0
335.7
43.8
8.0%
-0 .4 %
9 .1 %
1 Figures for 1934-1941 are estimates and differ from reported figures b y the amount of estimated
income taxes excluded from total current operating expenses. See footnote 3.
2 B ook value of assets charged off minus recoveries on assets previously charged off.
8 Includes surtax and excess profits tax. Figures for 1934-1941 are estimates, based upon Bureau
of Internal Revenue figures of income taxes paid b y national banks for 1934-1937, and paid b y “ all
banks and trust companies” for 1938-1941. Incom e taxes have been reported separately since 1936
for insured banks not members of the Federal Reserve System and since 1942, for banks members of the
Federal Reserve System.
4 Estimated; profits on securities sold were not reported separately from recoveries on securities by
banks not submitting reports to the F D IC .
6 N et loss.
Detailed figures for 191+1-19^6— See Table 114, pages 140-41.
58
FEDERAL DEPOSIT INSURANCE CORPORATION
Dividends paid to stockholders, though higher than in any previous
year of deposit insurance, absorbed about one-third of net profits after
taxes. Continuance of the conservative dividend policy followed by the
banks during the war years resulted in substantial net additions to total
capital accounts. These additions, coupled with a decline in total assets,
brought about a rise in the ratio of total capital accounts to total assets—
the first rise since 1937.
Widespread character of profitable operations. The improvement
in the profitability of banking operations, which has been characteristic
of recent years, has been general throughout the banking system. In
each of the last three years, practically no banks have sustained net
losses after taxes.
The improvement in rates of net profit in 1946 over the preceding
year was also widespread; it occurred among banks throughout the
country, except the larger banks in the large centers. It was the latter
which had shown the most favorable rates of net profit in 1945, due in
considerable extent to large profits on securities sold, chiefly United
States Government obligations, and to a large expansion in security
holdings,. It was these banks which were most affected by the Treasury
retirement program and by the less favorable market for United States
Government obligations.
In 1946, as in each year for a number of years, there have been more
banks with satisfactory and high rates of net profit, and fewer banks
with losses or unsatisfactory rates of net profit. The increase in the
percentage of banks with high rates of net profit over the three preceding
years and 1938 is shown in Table 32.
Table 32.
A
c c o r d in g t o
P ercen tage D
R
ate of
N
Rate of profit
et
is t r ib u t io n
P r o f it
1946
on
T
I nsured C
of
otal
C a p it a l A
1945
o m m e r c ia l
ccou n ts,
1944
B anks
1938, 1943-1946
1943
1938
Number of banks.........................
13,174
13,149
13,141
13,145
13,487
A ll b a n k s1....................................
100.0%
100.0%
100.0%
100.0%
100.0%
0.6
0.6
0.9
2.0
16.0
5.7
28.4
35.3
19.0
11.0
8.1
36.0
34.6
14.2
6.5
9.8
38.5
34.1
12.3
4.4
17.4
43.2
26.0
8.1
3.3
29.3
32.0
15.4
5.2
2.1
Banks with net loss.................
B an ks w ith
n e t p rofit
a fte r taxes p er $100 o f
t o ta l ca p ita l a c c o u n ts
o f—
2
$ 0.00
5.00
10.00
15.00
20.00
to $ 4 .9 9 .......................
to
9 .9 9 .......................
to 14.99.......................
to 19.99.......................
or m ore.........................
1 Excludes banks submitting reports covering less
affected by mergers.
2 Total capital accounts are averages of figures at
except in 1938 and 1946 when total capital accounts for
are averages of figures for four call dates and three call
than the full year’s operations or materially
beginning, m id-year, and year-end call dates;
banks members of the Federal Reserve System
dates, respectively.
59
EARNINGS OF INSURED COMMERCIAL BANKS
In 1946, over 65 percent of all insured banks reported a rate of net
profit after taxes of more than 10 percent of total capital accounts, as
compared with 55 percent in 1945, 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 each of the last
three years less than 1 percent of the banks reported a net loss.
There was little relationship between size of bank and the ratio of
net profits to total capital accounts in 1946. This is shown by the dis
tribution of banks according to amount of deposits, given in Table 33.
The smallest and the largest banks showed somewhat less favorable
results than the intermediate groups. About 30 percent of all insured
commercial banks had net profits in excess of 15 percent of total capital
accounts. This proportion was exceeded by banks with deposits of from
$1 million to $10 million each; the next smaller and next larger size groups
showed a somewhat smaller proportion. However, only 14 percent of the
smaller banks, with deposits of less than $1 million each, and only 13
percent of the largest banks, with deposits of $50 million or more each,
attained such favorable results. Furthermore, almost 25 percent of the
smallest banks, with deposits of less than $500,000, but only 6 percent
of all insured commercial banks, reported net losses or net profits of
less than 5 percent of total capital accounts.
T a b le 3 3.
R
a t io
D
is t r ib u t io n
op
N
et
of
P r o f it s
I n s u r e d C o m m e r c ia l B a n k s A
to
A m ount
T
of
otal
D
C a p it a l A
e p o s it s ,
ccou nts
c c o r d in g t o
and
by
1946
Banks with net profits after taxes per $100 of
total capital accounts of— 2
All
banks1
Banks
with net
loss
13,174
83
753
$500,000 or less..............................
$500,000 to $1,000,000.................
$1,000,000 to $2,000,000.............
$2,000,000 to $5,000,000.............
541
1,961
3,364
4,080
11
21
17
19
$5,000,000 to $10,000,000...........
$10,000,000 to $50,000,000.........
$50,000,000 to $100,000,000___
M ore than $100,000,000..............
1,703
1,218
135
172
7
7
1
Size of bank
A ll b a n k s 1...........................................
$5.00
to
$9.99
$10.00
to
$14.99
$15.00
to
$19.99
$20.00
or
more
3,744
4,648
2,496
1,450
113
167
163
151
209
641
915
1,008
130
689
1,190
1,454
51
296
676
907
27
147
403
541
77
63
11
8
441
402
49
79
623
443
53
66
345
192
15
14
210
111
6
5
$0.00
to
$4.99
B a n k s w ith d e p o sits o f —
1 Excludes banks submitting reports covering less than the full year’s operations or materially
affected b y mergers.
8 Total capital accounts are averages of figures for three call dates.
Sources of current earnings. In 1946, increases over 1945 were
reported in all major categories of current earnings. Income from loans
showed the largest gain, increasing 31 percent to $951 million, the highest
amount in any year since the establishment of Federal insurance of
60
FEDERAL DEPOSIT INSURANCE CORPORATION
deposits. Income from loans accounted for 33 percent of total current
operating earnings in 1946, as compared with 29 percent in 1945. This
increase in the proportion of income derived from loans represented a
reversal of the downward trend since 1942. Income from loans had
accounted for from 42 to 49 percent of total current earnings in each year
from 1934 through 1941. The amount of income on loans and on securities,
1934-1946, is presented in Table 34.
T a b le 3 4.
A m ounts
by
Year
and
R
ates
Insured C
Incom e
on loans
(in millions
of dollars)
of
Incom e R
o m m e r c ia l
Incom e on
securities
(in millions
of dollars)
e c e iv e d
and
I n t e r e s t P a id
B a n k s , 1934-1946
Incom e on
loans
per $100 of
loans1
Incom e on
securities
per $100 of
securities1
Interest paid
per $100 of
time & savings
deposits1
1946...........................
1945............................
1944............................
1943............................
$951
726
698
706
$1,395
1,300
1,090
861
$3.43
3.09
3.44
3.85
$1.56
1.46
1.49
1.52
$0.84
0.87
0.87
0.93
1942............................
1941............................
1940............................
1939...........................
817
848
769
727
610
509
500
522
4.08
4.27
4.41
4.46
1.69
1.95
2.16
2.38
1.10
1.20
1.30
1.43
1938............................
1937............................
1936............................
1935............................
1934............................
705
710
663
643
691
532
572
574
548
550
4.36
4.28
4.34
4.40
4.63
2.56
2.68
2.66
2.87
3.17
1.55
1.62
1.72
2.01
2.40
1 Loans, securities, and deposits are averages of figures reported at beginning, middle, and end of
year by banks submitting statements of assets and liabilities.
Detailed figures for 19U6— See Tables 114 and 115, pages 140-43.
The gain in income from loans resulted both from a growth in the
volume of loans and an increase in the rate of income from loans. Average
loan holdings were about one-fifth higher in 1946 than in 1945, and the
rate of income on loans was about one-tenth higher. For the first time
since 1939, there was an increase in 1946 in the rate of income from loans.
This reflected some firming of interest rates, but primarily a change in
the composition of the loan portfolio. Banks held a higher proportion of
high-income-producing loans, such as consumer instalment loans, and a
lower proportion of low-income-producing loans, such as those made for
the purpose of purchasing and carrying United States Government
obligations.
The amount of income on securities increased in 1946, as it has in
every year since 1940. From 1940 through 1945, the relative importance
of securities as a source of income had increased steadily. However, in
1946 income from securities provided 49 percent of total current operating
earnings, as compared with 52 percent in the prior year. Interest on
United States Government obligations increased from $1,133 million to
$1,219 million in 1946. Interest and dividend income from other securities
also increased, from $167 million to $177 million.
61
EARNINGS OF INSURED COMMERCIAL BANKS
The average rate of income on securities rose to 1.56 percent in 1946
from 1.46 percent in 1945; the rate had declined in every previous year
since 1937 when the rate was 2.68 percent. The average rate of return
on United States Government obligations was higher, 1.49 percent as
compared with 1.37 percent in 1945, reflecting smaller holdings of bills,
certificates and notes, and larger bond holdings. The average rate of
income on securities of other obligors declined further in 1946 to 2.34
percent, from 2.52 percent in 1945.
The remaining portion of current operating earnings— somewhat less
than one-fifth— was derived from various sources. Income from trust
department and service charges on deposit accounts each accounted for
slightly under 5 percent of total current earnings. These, as well as
commissions, fees, safe deposit and real estate rentals, and other income
grew at a rate commensurate with the growth in total current earnings.
C urrent operating expenses. Four-fifths of the increase in current
operating expenses of banks since 1934 occurred in the last three years.
All major categories of expense shared in the increase.
Salaries and wages, the most important item of bank expense in recent
years, accounted for one-half of the increase in all current operating
expenses over the three-year period. The largest increase occurred during
1946. The 1946 figure of $831 million represented a 20 percent rise from
1945 and a 43 percent rise since 1943. The increase in the number of
employees was a less important influence than higher salaries in causing
the larger payrolls. Figures for number of employees and average salaries
are shown in Table 35.
T a b le 3 5.
A verage N
um ber
and
A ver ag e Sa la r y
of
E m ployees
of
I n s u r e d C o m m e r c i a l B a n k s , 1943-1946
1946
Salary item
Average salary per— 1
Officer............................
Others............................
thousands
1943
13,302
13,268
13,274
60,908
258,335
57,806
237,326
55,902
227,512
55,117
221,060
$309,220
521,709
$266,018
424,881
$240,354
386,346
$225,142
356,958
$
$
$
$
Average num ber of employees (full and
p art-tim e ):
Officers...............................................................
Others................................................................
(in
1944
13,359
Num ber of banks, December 3 1 ...............
Salaries and wages
dollars):
Officers..........
Others...........
1945
of
5,077
2,020
4,602
1,790
4,300
1,698
4,085
1,615
1 These averages are derived b y dividing the total salary payment b y the average of the number o f
full- and part-time employees at the beginning and end of the year.
From 1945 to 1946, the average number of officers and employees
increased 5 and 9 percent, respectively. The average salary of officers
increased 10 percent; that of employees, 13 percent. From 1943 to 1946,
62
FEDERAL DEPOSIT INSURANCE CORPORATION
the average number of officers and employees increased 11 and 17 percent,
respectively. During the same period the average salary of officers
increased 24 percent; that of employees 25 percent.
Interest on time and savings deposits, $269 million in 1946, rose 16
percent from 1945 and 64 percent from 1943. The increase since 1943
accounted for one-fifth of the increase in all current operating expenses
in the last three years. The passage of the Banking Act of 1933 provided
for elimination of interest on demand deposits. Prior to that date interest
on demand and on time deposits combined had been the largest single
item of current operating expense in most banks, and consistently
amounted to about one-third of total current operating earnings. Since
1933, interest on time and savings deposits has been the second largest
single item of expense, after salaries and wages. From 1934 through 1943
the amount of interest paid on time and savings deposits declined as a
result of the progressive lowering of the rate paid on such deposits, as
shown in Table 34. The significant increase since 1943 in the amount
paid, in the face of continued decline in the rate, is attributable to the
81 percent increase in the amount of such deposits outstanding.
Taxes, other than those based upon or measured by net income, and
recurring depreciation have fluctuated slightly from year to year, without
significant change in level. Other expenses at $526 million in 1946 ab
sorbed 18 percent of total earnings and have increased in recent years
at about the same rate as total operating expenses.
C harge-offs, recoveries, and profits on assets sold. In 1946 insured
commercial banks reported profits on securities sold, chiefly United
States Government obligations, of $209 million. Although this was 22
percent less than the 1945 figure, it was significantly higher than the
amount reported for the other war years (see Table 31). Profits in 1946
were exceeded in only three other years of the thirteen since establishment
of Federal insurance of deposits. These profits on security sales contri
buted materially in 1946, as in 1945, to the high level of net profits.
Recoveries on securities, at $60 million, were less than one-half the
1945 figure. Recoveries on loans, and recoveries and profits on other
assets did not differ greatly from the amounts reported in recent years.
In 1946, insured commercial banks made provision for losses on assets
by charge-offs or by additions to valuation allowances at the rate of
about one-fifth of 1 percent of total assets or $283 million. Recoveries
in 1946 on losses previously charged off, and reductions in valuation
allowances, amounted to almost three-quarters of charge-offs. As a
result, the rate of net charge-offs in 1946 was only one-twentieth of 1
percent of total assets. In the preceding ten years, net charge-offs averaged
about one-fourth of 1 percent, and during the first two years of deposit
insurance were much higher.
63
EARNINGS OF INSURED COMMERCIAL BANKS
Charge-offs on loans amounted to one-fourth of 1 percent in 1946.
As in the three preceding years, recoveries exceeded charge-offs, thus
resulting in net recoveries on loans in each of these years. Charge-offs
on securities were no higher than in the preceding year, but recoveries
were much lower, so that net charge-offs were significantly higher than
in the preceding war years.
Rates of net charge-offs on assets of insured commercial banks, for
each of the years 1934-1946, are presented in Table 36. Figures for
charge-offs on securities as reported by the banks do not segregate losses
and charge-offs, or recoveries, on United States Government obligations
from those on other securities. It is not possible, therefore, to determine
rates of charge-offs separately for classes of securities. It is probable that
the high rate of losses and charge-offs on securities shown in the early
years of deposit insurance were sustained largely on securities other than
United States Government obligations. In 1945 and 1946, 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 United States Government obligations purchased
at prices above par.
T a b le 3 6 .
R
ates
of
N
et
C h a r g e - o ffs1
on
A
ssets
of
I n s u r e d C o m m e r c i a l B a n k s , 1934-1946
Year
All net
charge-offs
per $100 of
total assets
N et
charge-offs
on loans
per $100 of
loans
N et
charge-offs
on securities
per $100 of
securities
$0.05
$i0.013
0.053
0.01
1945...........................................................
0.073
0.11
1944...........................................................
0.04
0.06s
1943...........................................................
1946...........................................................
N et
charge-offs
on securities
per $100 of
“ other’ '
securities2
$0.08
0.01
0.02
0.04
$0.96
0.16
0.29
0.39
1942...........................................................
1941...........................................................
1940...........................................................
1939...........................................................
0.14
0.21
0.32
0.45
0.06
0.16
0.27
0.43
0.18
0.33
0.52
0.68
0.95
1.25
1.72
2.15
1938...........................................................
1937...........................................................
1936...........................................................
1935...........................................................
1934...........................................................
0.54
0.37
0.34
0.88
1.98
0.58
0.31
0.92
1.62
3.36
0.77
0.56
0.093
0.804
1.934
2.35
1.65
0.28*
2.334
5.33<
1 N et charge-offs equals losses, charge-offs and additions to valuation allowances, less the sum of
recoveries and reductions in valuation allowances. Asset items are averages of figures reported at be
ginning, middle, and end of year.
2 “ Other” securities consist of securities other than U . S. Government obligations, direct and
guaranteed.
* N et recoveries, i.e., excess of recoveries over charge-offs.
* Recoveries on securities of banks not submitting reports to the Federal Deposit Insurance Cor
poration 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.
The net charge-off record since the establishment of deposit insurance,
as shown in Table 36, may be broken into three periods. The high rate
of net charge-offs during the early years of deposit insurance was due
to the elimination of assets upon which losses had accumulated prior to
64
FEDERAL DEPOSIT INSURANCE CORPORATION
and during the depression. During the last four years, net charge-offs
have been at an abnormally low level, reflecting the high rate and pro
fitable character of business activity during the war, and immediately
after cessation of hostilities. During the intervening period, the level
of net charge-offs was materially above that of recent years, and ma
terially below that of the early years. That intervening period, considered
as a whole, was one of moderately rising prices and of increasing but less
feverish business activity than in recent years. The net charge-offs
reported then were for the most part sustained by banks on the assets
acquired during those years. It seems probable that net charge-offs in
the years ahead will be significantly higher than those sustained in recent
years.
Net profits b efore in co m e taxes. Net profits before income taxes
of insured commercial banks, at $1,226 million, were 2 percent larger
than in 1945, and amounted to 13.6 percent of total capital accounts.
Both the amount and the rate for 1946 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. Rates of net profit, before and after
taxes, are shown in Table 37.
Table 37.
and
of
R
ates
of
C ash D
A
ll
N
P r o f it , B e f o r e
et
iv id e n d s
to
A
verage
T
and
otal
A
fter
Incom e T
C a p it a l A
axes,
ccou nts,
I n s u r e d C o m m e r c i a l B a n k s , 1934-1946
Amounts per $100 of total capital accounts1
Year
N et profit
before
income
taxes
N et
profit
after
taxes
Cash dividends
I declared and
I interest paid
on capital
N et profit
after cash
dividends
$13.60
14.46
12.36
10.57
$10.01
10.87
9.73
8.82
$3.32
3.29
3.28
3.23
$6.69
7.58
6.45
5.59
1939...........................................................
7.48
7.47
6.42
6.16
6.34
6.72
6.08
5.99
3.28
3.75
3.59
3.58
3.06
2.97
2.49
2.41
1938...........................................................
1937...........................................................
1936...........................................................
1935...........................................................
1934...........................................................
4.84
6.15
8.54
3.42
-5 .4 4
4.68
5.97
8.35
3.35
-5 .4 9
3.46
3.54
3.56
3.35
3.03
1.22
2.43
4.79
2
-8.52
1943...........................................................
1941...........................................................
1 Total capital accounts are averages of figures for beginning, mid-year, and year-end call dates.
2 Less than $0,005.
In com e taxes. Federal income taxes, at $301 million, were 9 percent
larger than in 1945, and were more than four times the amount paid in
1942. State income taxes at $22 million were virtually unchanged from
the preceding year. Federal and State income taxes absorbed 26 percent
EARNINGS OF INSURED COMMERCIAL BANKS
65
of net profits before taxes in 1946, compared with 25 percent in 1945 and
15 percent in 1942. The amount of income taxes for the years 1934-1946
is presented in Table 31, page 57.
Net profits after taxes. Net profits after taxes, at $902 million, were
fractionally below the unprecedented amount reported in 1945. The
rate of net profit, 10 percent of total capital accounts, was higher than in
any year, except 1945, since the beginning of deposit insurance. The
amount of net profits, 1934-1946, is presented in Table 31.
Dividends and additions to capital. Notwithstanding the unpre
cedented growth in net profits over the last four years, the rate of cash
dividends declared by insured commercial banks has remained practically
unchanged. The $299 million of dividends paid, including interest on
capital notes and debentures, in 1946 was 3.3 percent of total capital
accounts. This conservative dividend policy is a continuance of the
practice which has been characteristic of insured commercial banks since
the banking crisis of 1933. In 1933 and each of the succeeding 13 years,
dividends have amounted to less than 4 percent of total capital accounts.
This represents a lower level than in any of the preceding 65 years for
which adequate bank records are available. As a result of this conservative
dividend policy the proportion of net profits retained for addition to net
worth has been higher during recent years than during any previous
period. In 1946, such additions to net worth amounted to 67 percent of
net profits, or $603 million. In recent years retained profits have con
stituted the major source of growth in total capital accounts.
E a r n in g s
of
Insured M
utual
Sa v in g s B a n k s
Both total and net current operating earnings of insured mutual
savings banks have increased yearly since the beginning of World War II.
At $351 million, total current operating earnings were 9 percent larger
in 1946 than in 1945. Net current operating earnings, at $265 million,
were 8 percent larger than in the preceding year.
In the past, one-half or more of total current operating earnings of
mutual savings banks has consisted of income on real estate mortgage
loans; the bulk of other current operating earnings consisted of income
from securities of the types designated as legal for savings bank invest
ment. In 1946 income from United States Government obligations
provided 49 percent of total current operating earnings, reflecting the
increased investment in such securities in recent years. At $171 million,
such income was 26 percent larger than in 1945 and 124 percent larger
than in 1943. This increased investment has been accompanied by an
increase in the rate of return, due to a lengthening of average maturities.
Income from other, securities has decreased throughout this period,
reflecting chiefly a decline in the rate of interest return on such securities.
66
FEDERAL DEPOSIT INSURANCE CORPORATION
The amount and the rate of income on loans and on securities, 1943-1946,
is shown in Table 38.
T a b le 3 8 .
A
m ounts
by
Year
1946............................
1945............................
1944............................
1943............................
and
R
ates
Insured M
Incom e
on loans
(in millions
of dollars)
$144
143
141
139
of
utual
Income R
S a v in g s B
Incom e on
securities
(in millions
of dollars)
$194
160
128
101
e c e iv e d
an ks,
Incom e on
loans
per $100 of
loans1
$4.58
4.61
4.53
4.44
and
D
iv id e n d s
P a id
1943-1946
Incom e on
securities
per $100 of
securities1
$2.35
2.30
2.38
2.54
Dividends paid
depositors
per $100 of
time & savings
deposits1
$1.47
1.49
1.60
1.65
1 Loans, securities, and deposits are averages of figures reported at beginning, middle, and end o f
year.
Detailed figures for 1 9 8 4 ,19U1-19U6— See Tables 121 and 122.
Income on loans has remained almost constant in amount, and has
represented a declining proportion of total current operating earnings in
recent years. In 1946, at $144 million, this amounted to 41 percent of
such earnings. The rate of income on loans has remained practically
constant at 4.6 percent, in sharp contrast to the decline experienced by
commercial banks.
All other income, about 4 percent of total current operating earnings
in 1946, was down sharply from recent years. This decline reflected the
rapid disposal over the period of other assets, chiefly real estate acquired
in settlement for mortgage loans in default.
Total current operating expenses at $86 million were lower in 1946
than in 1943 or 1944, but were 10 percent larger than in 1945. Expenses
declined as a ratio of total current operating earnings, from 32 percent
in 1943 to 24 percent in 1945 and 1946. About one-half of that percentage
decline occurred in taxes as a result of the disposal of real estate assets.
Salaries and wages of officers and employees have risen in each of the
recent years. This increase has been at a rate commensurate with the
growth in total current operating earnings, the amount remaining at
about 11 percent of the latter. All other expenses have remained ap
proximately constant in amount in recent years. The decrease in main
tenance and other real estate expenses, resulting from the disposal of
real estate, has offset the increase in general operating costs of a more
purely banking character.
In mutual savings banks, the return paid depositors constitutes a
dividend, the amount of which is subject to determination by the Board
of Directors or Trustees of the individual institution after the results of
operations of a specific period have been ascertained. For this reason
such dividends are not considered a current expense of the bank, although
they are similar to interest paid on time deposits in commercial banks.
EARNINGS OF INSURED MUTUAL SAVINGS BANKS
67
The amount of dividends paid has increased sharply in recent years,
by 12 percent in the last year, and by 36 percent since 1943. The increase
in amount is attributable entirely to the increase in the amount of time
and savings deposits held, since the rate of dividends has declined steadily.
As in the case of commercial banks, insured mutual savings banks
have secured substantial recoveries and profits on securities sold in recent
years. Recoveries and profits on securities totaled $127 million in 1945
and $124 million in 1946. Charge-offs on securities have also been high,
at $37 and $72 million, respectively. Net recoveries and profits on all
assets amounted to $46 million in 1945 and $44 million in 1946. This
situation stands out in contrast to the normal one in which charge-offs
exceed recoveries, so that net charge-offs result.
Net profits after taxes at $146 million in 1945 and $144 million in
1946 amounted to 1.4 percent and 1.2 percent of average total assets of
these mutual institutions. Profits retained as net additions to surplus
and capital accounts during these years were 15 and 13 percent of such
accounts. At the end of 1946, surplus and capital accounts represented
9.3 percent of total assets.
PART THREE
SPECIAL REPORTS
E X A M IN A T IO N OF M U T U A L SA VIN G S B AN K S
TYPE S OF DEPOSITS IN INSURED C O M M E R C IA L B A N K S , 1936-1945
E x a m in a t io n
of
M utual
Sa y in g s B a n k s
Examinations of insured banks by the Federal Deposit Insurance
Corporation have two aims: first, to determine as accurately as possible
the condition of each bank and thereby the risk which the Corporation
has assumed in insuring its deposits; second, to be helpful to bank officials
in handling the affairs of their banks with the maximum service and
minimum loss to depositors, investors, and customers of the bank. These
objectives of bank examination require for their accomplishment: (a)
classification of bank assets in terms of quality; (b) elimination from the
bank’s books of known or determinable losses; and (c) provision for
losses which are expected to occur though not immediately ascertainable
with respect to specific assets.
On July 1, 1946, the Federal Deposit Insurance Corporation instituted
a new method of determining the condition of mutual savings banks
which will achieve a more satisfactory classification of assets and a more
adequate provision for losses. This new technique of examination gives
more emphasis to the close relationship existing between managerial
methods of asset administration and the examining process of asset
classification and valuation.
Classification o f assets. Classification of bank assets, by segregating
into appropriate groups assets of similar or like qualities, provides both
management and supervisory authorities with the basis for appraising
the results of a bank’s selection of loans and investments. The classifica
tion of assets of mutual savings banks under the new system is designed
to give primary attention to the probable ultimate loss on each group
of assets, and to avoid the emphasis formerly placed on current market
value. The assets are placed in groups according to the degree of risk to
the bank, judged by stated objective standards. Four basic groups are
used: Standard, Borderline, Substandard, and Specific Losses.
The Standard Group comprises those assets in which there is no credit
risk, as distinguished from market risk, and, also, those assets in which
there is no more than the normal risk inherent in lending operations.
The Borderline Group is made up of assets which are weak because
of narrow margins of equity protection or other characteristics making
them very vulnerable to changing conditions. During periods of high
business activity such assets may appear to be adequately supported
by appraisals or ratings and are current with respect to debt service
requirements. However, they deteriorate rapidly with adverse circum
stances in the local or national economy. If held in large volume, such
assets produce losses in times of stress which quickly impair the capital
accounts of the holding institution.
71
72
FEDERAL DEPOSIT INSURANCE CORPORATION
The Substandard Group contains assets lacking those qualities which
are essential to assets suitable for bank investment. These assets do not
have sufficient compensating factors to offset or counterbalance weakness
of equity; and have characteristics which, in their present form, would
preclude their acquisition by the bank. Each of these assets involves a
high probability of loss, though the amount of loss on any one item can
not be specifically determined at the time of the examination. Assets in
this Group and in the Borderline Group require an unusual degree of
managerial attention and judgment, and current provision for loss even
though the final amount of loss is not predictable.
The Specific Losses Group includes those assets in which losses are
definitely established, or which are otherwise^devoid of bankable value.
Assets in two of the basic groups— Standard and Substandard— are
subclassified, making six categories in all. The definitions of these cate
gories, given below, are phrased in general terms, so as to permit the
flexibility necessary to cover all possible degrees of variation in the
quality of bank assets.
Standard
A -l. Assets in which the credit risk is non-existent.
A.
Acceptable assets in which the margin of protection is adequate
to meet ordinary contingencies and in which only nominal
losses are likely to develop.
Borderline
B.
Assets in which the limited margin of protection suggests the
likelihood of future losses.
Substandard
C.
Assets in which the margin of protection is negligible or non
existent, and in which losses are already in evidence or are likely
to develop even under favorable circumstances.
D.
Assets lacking qualities essential for investments suitable for
banks of deposit.
Specific Losses
X.
Assets which are definitely established losses or otherwise
devoid of bankable value.
The report of examination contains a summary of the book values of
the assets placed in each category, with lists of the assets classified lower
than A. Specific assets affected by unusual circumstances are made the
subject of special narrative comment.
Elimination of known losses. The method of providing for losses
before the amount of such losses are determinable in amount, which is
EXAM INATION OF MUTUAL SAVINGS BANKS
73
described below, will result in the creation and maintenance of a valuation
allowance account to which subsequently established losses will in most
cases be charged. However, currently known losses which are subject
to immediate elimination by a direct charge against the bank’s current
earnings or net worth (rather than against the valuation allowance as
prescribed) are placed in classification X . It will be applicable ordinarily
to assets devoid of bankable value which therefore are not subject to
classifications B, C, or D. It is expected that the use of this classification
will be infrequent after the new procedure is fully established.
Valuation allowances for losses not specifically determined.
Maintenance of a sound bank requires, as an adjunct to constant man
agerial attention, capital accounts and cushions adequate to absorb all
future losses. The process of maintaining soundness starts with the
correction of weakness in those assets which have lost some or all of the
characteristics which make them suitable savings bank investments.
Accordingly, the program of providing for losses, the amount of which
cannot be determined for each specific asset, is based upon those assets
bearing classifications B, C, and D. Provision for the losses in these
categories of assets is to be accomplished by the establishment and
maintenance of a valuation charge-off account. Additions to this account
are to be made periodically, preferably from current earnings or nonre
curring profits, but if necessary by a transfer from surplus accounts.
The program provides that each year there will be added to the valua
tion charge-off account a sum equal to 2-1/2 percent of the B classifica
tion, 5 percent of the C classification, and 7-1/2 percent of the D classi
fication until such time as the aggregate provision reaches a minimum of
20 percent of B, 33-1/3 percent of C, and 50 percent of D. Further, if
an asset is placed in the D classification each year for a period of 10
years, an addition to the valuation charge-off account, by a charge
against profit and loss, will be made in an amount sufficient to reduce
the book value of that specific asset to a nominal value. It is also con
templated that this account will be used as a flexible and mobile account
to which all established losses may be charged.
The required amount to be accumulated in the valuation charge-off
account set forth above constitutes a desirable minimum only, and is
not to be considered a deterrent to the provision of a larger sum if a
bank’s management desires to do so. It is axiomatic that valuation
allowances do not of themselves cure asset weaknesses and the accumu
lation of such funds is not the primary objective. The objective is ac
quisition and retention by banks of acceptable assets only; the methods
of loss elimination are intended to be efficient tools in the hands of
management to that end.
Banks which have already accumulated substantial valuation al
lowances are in a more advantageous position than are institutions with
74
FEDERAL DEPOSIT INSURANCE CORPORATION
a similar volume of Substandard and Borderline assets which have made
little or no provision for losses on those assets. Valuation allowances,
both allocated and unallocated, on a bank’s books at the time of the
first examination under the new method are given consideration and have
the effect of reducing the amount to be periodically added to the valuation
charge-off account. Existing valuation allowances against loans, securi
ties, or other types of assets are allocated to the B, C, and D groups of
assets according to the percentage which the existing valuation allowance
bears to the contemplated ultimate minimum provision for each of these
types of assets.
The new system, by using gradations of quality in classifying assets
and by shifting emphasis from current market values to the probable
amount of loss to the bank, provides a more accurate evaluation of the
condition of savings banks. It provides the Federal Deposit Insurance
Corporation with an appraisal of the condition of savings banks on a
“ going concern” basis rather than on a “ liquidation” basis as heretofore.
In addition, it promotes corrective action on the part of management by
focusing attention upon those assets which are no longer sound. The use
of the system will be of valuable assistance to bank managements in the
control and administration of the assets and in preparing for the un
certainties of the future.
Development of the new plan of examination. The new system
of examining mutual savings banks has evolved out of the examining
and liquidation experience of the Federal Deposit Insurance Corporation.
The evolution has occurred both with respect to the concepts and to the
methods of implementation.
When the Corporation was established, banks had just passed through
a period of violent economic distortion resulting in depositor unrest and
bank insolvency. Accordingly, bank supervisory authorities were then
most concerned with such immediate factors as liquidity of assets and
the losses which were depleting capital.
At that time bank supervisory authorities generally followed the
practice in examination reports of classifying criticized assets as “ esti
mated loss,” “ doubtful,” or “ slow.” In the case of loans, the first of these
three categories represented those loans or parts of loans which, in the
opinion of the examiner, could not be collected; and the second those in
which there existed, in the examiner’s opinion, a substantial probably
loss not yet definitely ascertainable in amount, as a consequence of whicii
the ultimate collection or value was doubtful.
There was considerable confusion, however, as to the meaning of the
“ slow” classification. In the latter part of 1934 an effort was made to
clarify this classification and to avoid an imputation of inferior credit
quality to assets on which no loss was regarded as probable, solely because
EXAM INATION OF MUTUAL SAVINGS BANKS
75
they were not immediately salable or collectible at full value. During
the following years attempts were made to divorce the term “ slow” used
in loan classification from its temporal connotation and to restrict this
term to the concept of inferior credit quality. The executive committee
of the National Association of Supervisors of State Banks studied the
problem and on April 5, 1938, this committee recommended that the
term “ slow” no longer be used in examinations of State banks and that
the term “ substandard” be substituted.
In June 1938, in an agreement by the Secretary of the Treasury, the
Board of Governors of the Federal Reserve System, the Comptroller of
the Currency, and the Board of Directors of the Federal Deposit In
surance Corporation, all three of the captions, “ Slow,” “ Doubtful,” and
“ Loss,” were abandoned. Substituted for them were the numerals II,
III, and IV, respectively. Loans not criticized were to be placed in
Classification I.1
These efforts to clarify the concepts and terms used in loan classification
were manifestations of a fundamental change in attitude not only of
bank supervisors but also of other individuals and groups concerned
with loans and lending. The collapse of prices during the depression of
the early 1930’s had made it clear that market price could not be relied
upon as a dependable criterion of asset quality in periods of stress.
The inadequacy of market price as a criterion of quality was perhaps
most clearly demonstrated in the case of real estate other than bank
buildings. Unlike most assets of a bank, which are obtained by direct
investment, “ other real estate” is always acquired in consequence of a
previously contracted loan which has become uncollectable. In most
instances the market for such assets is narrow, and in the 1930’s op
portunities to sell such assets at satisfactory prices were especially
limited. Use of market price was clearly not an acceptable method of
evaluation, and an alternative was needed. The most logical alternative
was to abandon market price and to substitute an immediate appraised
value not in excess of book value, combined with a realistic program
for periodic downward adjustments pending removal of the asset.
The Federal Deposit Insurance Corporation initiated such a program
soon after it began operations. Arrangements were made with the ma
jority of the State supervisory authorities whereby unsold real estate
was appraised at book value after initial adjustment, provided that
thereafter write-downs were made or valuation allowances created at
fixed annual rates. These rates, in most instances, contemplated complete
write-off of each unsold parcel of other real estate within a period of
ten years.
1
These classifications are defined in the 1938 Annual Report of the Federal Deposit Insurance
Corporation, pp. 63-64.
76
FEDERAL DEPOSIT INSURANCE CORPORATION
The results of this program for “ other real estate” were highly satis
factory. Reliance upon current markets as a measure of examination
value was eliminated; deterrents to the actual realization of losses were
removed by requiring prior provision for such losses, thus encouraging
and facilitating disposition of all “ other real estate” regardless of quality;
and the periodic write-down reduced the impact of the losses upon the
capital structure of banks.
A similar problem existed in the case of securities owned by banks,
but a new method of appraising the value of securities was not as quickly
developed. For four years the Corporation, in its examination of banks,
followed the customary procedure and valued securities on the basis of
market prices. The net amount by which the market or estimated value
of a bank’s securities was below book value was reflected in the analysis
of capital as an “ estimated loss” and, conversely, the excess of market
over book value was treated as an addition under the term of “ unrealized
appreciation.” One consequence of this was that any fluctuation in bond
prices was directly reflected in the adjusted capital accounts of banks.
The extent of this effect on capital was proportional to the holdings of
securities relative to capital. For example, in the case of a bank holding
securities totaling approximately three times its capital, a common
relationship at that time, a 5 percent increase in security prices increased
the adjusted capital account by 15 percent. Conversely, a decline of
5 percent in security prices reduced the adjusted capital account by
15 percent. The proportion of securities to capital has now risen to
approximately ten to one, which means that a 1-1/2 percent change in
security prices would produce, if market prices were used in evaluating a
bank’s assets, a 15 percent change in the adjusted capital account.
To remedy this situation a uniform procedure was adopted in 1938
by the Federal and by most of the State bank supervisory agencies which
in effect accomplished for securities what had been done for “ other real
estate.” 2 Under the uniform procedure securities classified in Group I
were appraised at book value or amortized cost, irrespective of market
value; lower grade and substandard securities were appraised b& methods
designed to emphasize constantly their weakness and unsuitability as
bank assets. This procedure encouraged the write-down or disposal of
assets of inferior grade.
These methods of evaluating loans, “ other real estate,” and securities,
developed for use in examining commercial banks, were also applied to
the comparatively few insured mutual savings banks. In 1943 a large
number of mutual savings banks was admitted to Federal deposit in
surance and at that time the Corporation deemed it opportune to develop
an examination procedure which would recognize the special char
acteristics of this group of banks.
2 This procedure is described in the Annual Report of the Corporation for 1938, pp. 64-68.
EXAM INATION OF MUTUAL SAYINGS BANKS
In its examining procedure the Corporation has developed and em
braced the principle that the determination of net worth on a liquidation
basis through the use of market value is undependable and unsatisfactory.
It is further aware of the fact that, particularly in the case of mortgage
loans, there had been overemphasis on the “ estimated loss’ 7 classification
in reports of examination, and inadequate consideration of the much
larger group of assets— the marginal, borderline, and substandard— from
which subsequent losses flow. In other words, the emphasis upon the
immediacy of some losses diverted needed consideration from the larger
loss potentialities contained in unsound assets. It w^as the evaluation of
these unsound assets that was distorted most by fluctuations in current
market prices. The over-emphasis given market value had the effect of
forcing recourse to improvisations and expedients not in keeping with
the maintenance of a sound asset structure.
The programs in connection with “ other real estate” and with securities
have proved to be effective means of approaching and solving these
problems in advance of the development of serious losses. Accordingly,
the principles which underlay those programs were further developed and
adapted to meet the problems peculiar to mutual savings banks. By the
middle of 1946 sufficient progress had been made to permit utilization of
the new system of examination for these banks. It is believed this pro
cedure will better serve the purposes of the Corporation as well as the
interests of the banks in that it will tend (a) to portray more quickly
and accurately the development of unsound situations in individual
mutual savings banks, and (b) to effect the necessary corrections, as
promptly as possible.
T y p e s o f D e p o s it s in
Insured
C o m m e r c ia l B a n k s ,
1936-1945
The surveys of deposits by size of account made by the Corporation
in 1936, 1938, 1941, and 1945, included information on types of deposits.1
Comparative data regarding the major classes of deposits in insured
commercial banks on these dates are given here, together with more
detailed tabulations for the 1945 date.
The insurance protection in a bank placed in receivership, under
present law, is limited to $5,000 for each depositor in a single right and
capacity. Table 39 shows by class of deposit, for available dates, the
percentage of deposits, protected under this maximum and the percentage
of the number of deposit accounts fully protected; and also the corres
ponding percentages if the maximum insurance coverage had been
$10,000 and $25,000, respectively.2
Percentage of total deposits protected by insurance. In 1945
insured deposits amounted to 43 percent of total deposits. However,
there was great variation in the insurance coverage of the various types
of deposits. In 1945, 89 percent of the savings and time deposits of
individuals, partnerships and corporations was covered by insurance,
and 39 percent of their demand deposits was protected. The types of
deposits with the least insurance protection were those of the United
States Government (including postal savings) and those of other banks,
with 1 and 3 percent, respectively.
In 1936 insured deposits were also 43 percent of total deposits. How
ever, during the nine years from 1936 to 1945 some changes occurred in
the proportions of the various types of deposits protected by insurance.
Coverage of savings and time deposits increased by several percentage
points; that of uninvested trust funds and of demand deposits of in
dividuals, partnerships, and corporations were almost the same in the
two years; while that of the other categories of deposits declined.
An increase to $10,000 in the maximum insurance for each depositor
would have raised the insured deposits in 1945 to 49 percent of all de
posits, and an increase to $25,000 would have raised the amount to 57
percent of all deposits. With a $10,000 coverage, savings and time deposits
of individuals, partnerships and corporations would have been protected
by insurance to the extent of 95 percent and their demand deposits to
48 percent; the protection with coverage of $25,000 per depositor would
have been 98 percent and 58 percent, respectively.
1 The surveys were made on the following dates: M ay 13, 1936; September 21, 1938; September 24,
1941; and October 10, 1945. Reports of the surveys were published in previous annual reports of the
Corporation, as follows: 1936, pp. 65-77; 1938, pp. 79-99; 1941, pp. 63-78; and 1945, pp. 63-80.
2 Technically, the figures shown in the table refer to accounts with balances not in excess of $5,000,
$10,000, and $25,000, respectively, and to the balances in those accounts, plus $5,000, $10,000, or $25,000,
respectively, in each of the larger accounts. Since two or more accounts belonging to the same person
in the same capacity will be combined when depositors in a failed insured bank are paid off b y the Cor
poration, the actual insurance protection is slightly less than that indicated b y the percentages in the
table.
79
80
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 39.
A ccou nts F
P rotected
ully
C overage
of
D
and
$5,000, $10,000,
e p o s it s
and
Percent of deposits insured
I nsured
w it h
$25,000
Percent of accounts fully protected
Type of deposit
W ith m a x im u m cov era ge o f
$5,000— t o t a l ..................
Deposits of individuals, part
nerships, and corporations:
Demand..........................
Savings and time...........
Interbank deposits.................
Deposits of States and political
subdivisions......................
U. S. Government and postal
savings deposits...............
Uninvested trust funds.. . . .
Drafts.................................
Other items.........................
W ith m a x im u m cov era g e o f
$10,000— t o t a l .......................
Deposits of individuals, part
nerships, and corporations:
Demand............................
Savings and time..............
Interbank deposits...................
Deposits of States and political
subdivisions....................
U. S. Government and postal
savings deposits.............
Uninvested trust funds.. . .
Drafts.................................
Other items.........................
W ith m a x im u m cov era ge o f
$25,000— t o t a l .......................
Deposits of individuals, part
nerships, and corporations:
Demand............................
Savings and time..............
Interbank deposits...................
Deposits of States and political
subdivisions....................
U. S. Government and postal
savings deposits..............
Uninvested trust funds... .
Drafts..................................
Other items.........................
N o te:
1945
1941
1938
43%
38%
45%
39
89
3
33
86
4
84
5
11
3
29
42
49%
44%
51%
48
95
6
39
92
7
46
90
10
1
41
51
5
37
52
44
6
44
60
49
57%
51%
59%
58
98
14
49
95
15
24
3
55
66
46
1
31
41
33
1936
1945
1941
1938
1936
43%
96.5%
98.1%
98.4%
98.4%
38
82
6
95.1
97.9
16.3
97.5
98.9
25.2
98.1
98.9
29.5
98.1
99.0
29.0
13
12
73.6
79.2
80.3
80.0
4
35
49
42
3
30
52
44
72.4
93.4
96.7
99.1
78.3
94.7
97.5
99.2
74.0
95.7
98.3
99.4
61.2
94.9
97.9
98.7
98.6%
99.2%
99.3%
97.7
99.6
24.0
98.7
99.8
35.0
99.0
99.8
41.9
82.1
86.2
87.1
78.4
96.4
98.3
99.6
84.9
97.1
98.7
99.6
80.0
97.8
99.1
99.7
99.5%
99.6%
99.7%
55
94
20
99.2
99.9
39.1
99.5
99.9
51.4
99.6
99.9
61.0
25
31
90.2
92.8
93.4
9
48
67
52
11
84.3
98.6
99.3
99.8
90.3
98.8
99.5
99.8
87.1
99.2
99.7
99.9
55
74
59
N ot
available
N ot
available
N ot
available
N ot
available
Percentages were calculated from the original figures before rounding.
P ercentage o f accou n ts fu lly protected. The proportion of accounts
fully protected by deposit insurance is much larger than the proportion
of deposits which are insured. However, due to the growth in the amount
of deposits and the corresponding growth in the size of most accounts
the percentage of accounts fully protected* declined to 96.5 percent in
1945 from 98.4 percent in 1936. The decline in percentage of accounts
fully protected occurred in each type of deposit with the exception of
United States Government accounts and “ other items.”
The percentage of accounts fully protected by deposit insurance in
1945 ranged from 16 percent in the case of interbank accounts to 97.9
percent in the case of savings and time accounts of individuals, partner
ships, and corporations and 99.1 percent in “ other items.” Ninety-five
TYPES OF DEPOSITS IN INSURED COMMERCIAL BANKS
81
percent of demand accounts of individuals, partnerships, and corporations
were fully protected.
A maximum insurance coverage of $10,000 for each depositor would
have raised the proportion of all accounts fully protected to 98.6 percent
and a coverage of $25,000 to 99.5 percent. The coverage of $10,000 would
have fully protected 99.6 percent of the savings and time accounts of
individuals, partnerships and corporations and 97.7 percent of their
demand accounts. A coverage of $25,000 would have raised these percent
ages to 99.9 percent and 99.2 percent, respectively.
Further details regarding the percentage of accounts fully protected,
and also the percentage of deposits insured at each of the four special
call dates are given in the table on the preceding page.
Amount of insured deposits. Table 40 shows the amount of total
deposits and of insured deposits by type of deposit on the four special
call dates; and for the call dates in 1938, 1941, and 1945, the additional
amount of deposits which would have been insured with insurance
coverage of $10,000 and $25,000, respectively.
Total deposits in insured banks rose to $130 billion in 1945 from $45
billion in 1936. At the same time insured deposits increased to $57 billion
from $20 billion. About three-fourths of the increase in deposits occurred
during the war period. Of the insured deposits in 1945, $29 billion were
in demand accounts of individuals, partnerships and corporations and
$25 billion in their savings and time accounts. The other types of insured
deposits together aggregated less than $3 billion.
The amount of savings and time deposits protected by insurance in
1945 was about two and one-half times the amount thus protected in
1936; while in the case of demand deposits of individuals, partnerships,
and corporations insured deposits in 1945 were nearly four times the
amount in 1936. This difference reflects the more rapid growth in demand
than in savings and time deposits. The amount of other types of insured
deposits in 1945 was about one and one-half times that in 1936.
With an insurance coverage of $10,000 per depositor nearly $9 billion
of additional deposits or a total of $65 billion, would have been insured
in 1945. Of the increase, about $6 billion would have been in the form
of demand deposits of individuals, partnerships, and corporations, less
than $2 billion in savings and time accounts, and about $1 billion in
other types of accounts.
A maximum coverage of $25,000 per depositor would have added
another $10 billion to insured deposits. Of this $7 billion would have been
in the form of demand deposits of individuals, partnerships, and corpora
tions, less than $1 billion in savings and time deposits, about $1 billion
in interbank deposits, and $1 billion in other types of accounts.
82
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 40.
T
otal
Insured D
and
e p o s it s
in
I n s u r e d C o m m e r c ia l B a n k s ,
1936-1945
g r o u p e d b y ty p e o f d e p o sit
A m ount (in millions)
T yp e of deposit
1945
All deposits— to ta l.
1941
1938
$130,477
$ 67,778
$ 48,220
$ 45,188
71,879
28,173
12,999
5,177
^ 984
1,645
908
1,712
34,197
14,773
11,055
4,112
886
1,464
515
776
21,972
13,612
6,798
3,116
839
997
336
550
19,737
12,559
6,315
3,360
1,165
1,150
318
584
$ 56,514
$ 26,043
$ 21,705
$ 19,578
28,705
25,252
461
529
93
526
375
573
11,389
12,774
445
462
35
425
216
297
8,535
11,557
306
4Z5
34
356
167
235
7,620
10,351
379
422
37
343
167
259
3,098
Not
available
Deposits of individuals, partnerships and corporations:
D em and.............................................................................
Savings and tim e.............................................................
Interbank deposits...............................................................
Deposits of States and political subdivisions...............
U .S . Government and postal savings deposits...........
Uninvested trust funds.......................................................
D ra fts.....................................................................................
Other item s............................................................................
Insured deposits with coverage of $5,000— to ta l___
Deposits of individuals, partnerships and corporations:
D em and.............................................................................
Savings and tim e.............................................................
Interbank deposits...............................................................
Deposits of States and political subdivisions...............
U .S . Government and postal savings deposits...........
Uninvested trust funds.......................................................
D rafts.....................................................................................
Other item s...........................................................................
Additional insured
deposits
with
coverage
$10,000...............................................
of
Deposits of individuals, partnerships and corporations:
D em and...................................................................
Savings and tim e...................................................
Interbank deposits....................................................
Deposits of States and political subdivisions. . .
U . S. Government and postal savings deposits.
Uninvested trust funds............................................
D rafts..........................................................................
Other item s.................................................................
of $25,000.
Deposits of individuals, partnerships and corporations:
Dem and.............................................................................
Savings and tim e.............................................................
Interbank deposits...............................................................
Deposits of States and political subdivisions...............
U . S. Government and postal savings deposits...........
Uninvested trust funds.......................................................
D rafts.....................................................................................
Other item s...........................................................................
Uninsured deposits with coverage of $25,000.
Deposits of individuals, partnerships and corporations:
D em and...................................................................
Savings and tim e...................................................
Interbank deposits....................................................
Deposits of States and political subdivisions. . .
U . S. Government and postal savings deposits.
Uninvested trust funds............................................
D rafts...........................................................................
Other item s.................................................................
$
8,606
$
5,886
1,633
413
268
53
161
97
95
$ 10,022
3,930
$
1,594
811
312
199
20
86
38
38
2,283
826
365
216
17
119
56
48
$
5,219
1936
$
3,937
7,142
742
1,053
489
120
218
133
125
3,138
476
881
381
32
169
77
65
2,155
489
692
345
41
114
46
55
$ 55,335
$ 32,586
$ 19,480
30,146
546
11,072
3,891
7,718
740
303
919
17,387
697
9,364
3,053
802
751
166
366
9,688
755
5,398
2,147
744
441
85
222
Uninsured deposits under the $5,000 limitation amounted to $74
billion in 1945, or 57 percent of all deposits in insured commercial banks.
With maximum coverages of $10,000 and $25,000 per depositor the
amounts of uninsured deposits would have been reduced to $65 billion
and $55 billion, respectively.
83
TYPES OF DEPOSITS IN INSURED COMMERCIAL BANKS
Number of deposit accounts. Table 41 shows the number of ac
counts in insured commercial banks, by type of deposit, on each of the
four special call dates.
T a b le 41.
N u m b er o f A c c o u n ts in In su re d C om m ercia l B a n k s,
1936-1945
GROUPED BY TYPE OF DEPOSIT
Number (in thousands)
Type of deposit
1945
1941
1938
1936
All accounts— total.........................................................
81,655
66,918
61,392
57,398
Deposits of individuals, partnerships and corporations:
Demand.......................................................................
Saving and time..........................................................
Interbank deposits..........................................................
Deposits of States and political subdivisions..............
U. S. Government and postal savings deposits..........
Uninvested trust funds..................................................
Drafts..............................................................................
Other items.....................................................................
35,610
40,955
103
247
44
680
810
3,206
26,291
37,318
104
255
18
620
611
1,701
23,770
34,323
97
249
17
579
596
1,761
22,106
32,563
93
244
14
516
469
1,393
78,773
65,668
60,399
56,476
33,851
40,095
17
182
32
635
783
3,178
25,641
36,915
26
202
14
587
596
1,687
23,312
33,954
29
200
13
554
586
1,751
21,690
32,231
27
195
9
490
459
1,375
1,729
698
565
Not
available
939
711
21
2
21
12
15
317
323
10
18
1
15
7
7
226
287
12
17
1
12
5
5
Accounts of $10,000 to $25,000—total........................
722
314
254
Deposits of individuals, partnerships and corporations:
Demand.......................................................................
Saving and time..........................................................
Interbank deposits..........................................................
Deposits of States and political subdivisions..............
U. S. Government and postal savings deposits..........
Uninvested trust funds..................................................
Drafts..............................................................................
Other items.....................................................................
521
131
15
20
3
15
9
8
193
67
17
17
1
10
5
4
137
68
18
16
1
8
3
3
Accounts of more than $25,000...................................
431
238
174
Deposits of individuals, partnerships and corporations:
Demand.......................................................................
Saving and time..........................................................
Interbank deposits..........................................................
Deposits of States and political subdivisions
........
U .S . Government and postal savings deposits..........
Uninvested trust funds..................................................
Drafts..............................................................................
Other items......................................................................
299
18
63
24
7
9
6
5
140
13
51
18
2
8
3
3
95
14
38
16
2
5
2
2
Accounts of $5,000 or less—total................................
Deposits of individuals, partnerships and corporations:
Demand.......................................................................
Saving and time..........................................................
Interbank deposits..........................................................
Deposits of States and political subdivisions..............
U. S. Government and postal savings deposits..........
Uninvested trust funds..................................................
Drafts..............................................................................
Other items.....................................................................
Accounts of $5,000 to $10,000—total..........................
Deposits of individuals, partnerships and corporations:
Demand.......................................................................
Saving and time..........................................................
Interbank deposits.........................................................
Deposits of States and political subdivisions
U. S. Government and postal savings deposits .
Uninvested trust funds..................................................
Drafts..............................................................................
Other items.....................................................................
8
From 1936 to 1945 the total number of accounts increased from 57
million to 82 million, or by 42 percent. The relative change in the number
84
FEDERAL DEPOSIT INSURANCE CORPORATION
of accounts with balances over $5,000 was much greater than in those
with $5,000 or less. The latter increased by 39 percent, the former by
213 percent.
Savings and time deposits of individuals, partnerships, and corporations
accounted for one-half of the total number of accounts in 1945, 41 million
out of 82 million. Demand deposits of individuals, partnerships and
corporations accounted for 36 million accounts, and all other types of
deposits for about 5 million accounts. The proportions were similar in
the case of accounts with balances of $5,000 or less.
Types of deposits in banks grouped by size. The percentage dis
tribution of amount of deposits by type in banks in various size groups
in 1945 is given in Table 42. There is a substantial difference in the
distribution of deposits by type among the banks in the various size
groups. Demand deposits of individuals, partnerships, and corporations
ranged from a little over one-half of total deposits in banks with total
deposits of more than $10 million each to over 70 percent in banks having
total deposits of less than one-half million dollars. In contrast, savings
and time deposits of individuals, partnerships, and corporations are a
larger percentage of total deposits in banks in the middle-sized groups
than in the smallest or the largest banks— the range being from 35 percent
of total deposits in banks with deposits of $5 million to $10 million each,
to about 14 percent in banks with less than $250,000 deposits and also
in those with more than $100 million of deposits.
Table 42. Percentage D istribution of D eposits of
I nsured C ommercial B anks A ccording to T ype of D eposit, O ctober 10, 1945
BANKS GROUPED BY AMOUNT OF DEPOSITS
Total
Deposits of
individuals,
partnerships,
and
corporations
De
mand
All banks................................. 100.0%
Public U .S .
Inter
funds Govern Trust
of
bank
ment
funds
deposits States, deposits
etc.
Savings
and
time
55.1%
21.6%
Banks with deposits
of—
$250,000 or less.................... 100..0
$250,000 to $500,000........... 100..0
$500,000 to $1,000,000. .. 100.0
78.2
72.7
68.6
13.6
18.4
22.7
$1,000,000 to $2,000,000. . . 100.0
$2,000,000 to $5,000,000. . . 100.0
$5,000,000 to $10,000,000. . 100.0
63.9
58.1
52.9
$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....
51.3
51.0
51.3
55.6
100.0
100.0
100.0
100.0
10.0%
4.0%
6-1%
1.2%
0.7%
.3
.3
.1
3.9
5.4
5.4
.5
1.0
1.3
1.6
.2
.1
1.7
1.6
1.5
.2
.4
.3
26.8
31.1
34.6
.3
.6
1.5
5.6
5.5
5.0
1.5
2.5
3.7
.1
.2
.4
1.4
1.4
1.2
.4
.6
.7
32.8
27.8
22.2
14.6
3.5
6.7
12.4
15.2
4.9
5.0
5.2
2.9
4.5
5.6
5.8
8.0
.9
2.0
1.6
1.6
1.2
1.0
.6
.3
.9
.9
.9
1.8
N ote : Percentages were calculated from the original figures before rounding.
Other
Drafts items
1.3%
85
TYPES OF DEPOSITS IN INSURED COMMERCIAL BANKS
Interbank deposits are concentrated chiefly in banks in the larger
size groups, such deposits amounting to 15 percent of total deposits in
the banks having more than $100 million deposits to a fraction of one
percent in the smaller banks. United States Government deposits likewise
tended to be concentrated in the larger banks, though the divergence is
not as great as in the case of interbank deposits. Public funds of States
and local governments are more evenly distributed, ranging from 4 to
6 percent of deposits in banks in all size groups except the largest where
they constitute 3 percent.
Table 43 shows the distribution in 1945 of the demand deposits and
of the savings and time deposits of individuals, partnerships, and cor
porations, both by size of account and by size of bank, together with the
percentage of deposits insured in the banks in each size group.
Table 43. D istribution
I ndividuals , Partnerships ,
of
D emand and Savings and T ime D eposits of
C orporations A ccording to Size of A ccount,
O ctober 10, 1945
and
INSURED COMMERCIAL BANKS GROUPED BY AMOUNT OF DEPOSITS
Deposits (in millions)
Deposits insured
with $5,000
maximum coverage
In accounts of—
Total
Demand accounts—total.. . $71,879
$5,000
or
less
$5,000
to
$10,000
$10,000
to
$25,000
More
than
$25,000
Amount
(in
millions)
Per
cent
$19,908
$6,479
$7,879
$37,613
$28,705
39%
102
4
43
12
175
1,010
91
90
87
In banks with deposits
of—
$250,000 or less....................
$250,000 to $500,000...........
$500,000 to $1,000,000........
13
194
1,154
10
153
848
2
23
161
$1,000,000 to $2,000,000. . .
$2,000,000 to $5,000,000. . .
$5,000,000 to $10,000,000. .
3,264
6,946
5,683
2,173
4,025
2,717
506
1,079
832
374
967
890
211
875
1,244
2,701
5,233
3,731
82
75
65
$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....
6,635
4,610
4,816
38,564
2,471
1,394
1,105
5,012
860
531
439
2,046
1,068
712
633
3,118
2,236
1,973
2,639
28,388
3,611
2,140
1,761
8,331
54
46
36
21
Savings and time accounts
— total.......................... $28,173
$20,954
$4,439
$1,786
$ 994
$25,252
In banks with deposits
of—
$250,000 or less....................
$250,000 to $500,000...........
$500,000 to $1,000,000. , . .
382
317
5
49
$1,000,000 to $ 2 ,0 0 0 ,0 0 0 ...
$2,000,000 to $5,000,000. ..
$5,000,000 to $10,000,000. .
1,372
3,719
3,717
1,099
2,891
2,864
196
561
559
$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....
4,233
3,228
2,520
2,087
10,092
1,897
1,562
7,051
639
377
320
1,733
2
49
2
43
<0
1
14
<*>
3
2
47
361
95
96
94
63
205
212
14
62
82
1,281
3,426
3,401
93
92
91
249
144
122
777
117
102
83
531
3,847
2,262
1,871
8,754
90
89
89
86
(,)
i
13
0)
1 Less than $500,000.
N ote : Percentages were calculated from the original figures before rounding.
89%
86
FEDERAL DEPOSIT INSURANCE CORPORATION
A larger proportion of deposits in the smaller banks is insured than in
the larger banks. This difference is especially striking for demand deposits
of individuals, partnerships, and corporations, where the range is from
21 percent in banks in the largest size group to 91 percent in the smallest
size group.
Table 44 shows the number of demand and of time and savings accounts
of individuals, partnerships, and corporations grouped by size in banks
grouped by the amount of their deposits. The small banks have com
paratively few accounts with large balances, most of those accounts
being in the larger banks. In the case of demand accounts, the percentage
of accounts fully covered varies from 91 percent in the largest banks to
99 percent in the smallest banks; for savings and time accounts the
variation is from 97 percent to 99 percent.
Table 44.
D is t r ibu t io n op D em a n d a n d S a v in g s a n d T im e A ccounts op
I n d iv id u a l s , P a r t n e r sh ip s , a n d C o rporations A ccording to S iz e ,
O ctober 10, 1945
INSURED COMMERCIAL BANKS GROUPED BY AMOUNT OF DEPOSITS
Number of accounts (in thousands)
Total
$5,000
or
less
$5,000
to
$10,000
More
than
$25,000
$10,000
to
$25,000
35,610
33,851
$250,000 or less......................
$250,000 to $500,000.............
$500,000 to $1,000,000..........
25
340
1,730
25
335
1,698
$1,000,000 to $2,000,000___
$2,000,000 to $5,000,000___
$5,000,000 to $10,000,000. . .
4,246
7,688
5,081
4,140
7,447
4,878
75
158
121
$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.......
4,411
2,491
1,923
7,675
4,183
2,342
1,792
7,011
Savings and tim e accounts—
to ta l..................................
40,955
40,095
$250,000 or less......................
$250,000 to $500,000.............
$500,000 to $1,000,000..........
4
79
569
4
78
560
$1,000,000 to $2,000,000......
$2,000,000 to $5,000,000....
$5,000,000 to $10,000,000. .
1,961
5,749
5,978
1,924
5,643
5,871
32
90
90
5
15
15
$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.......
6,827
3,859
3,139
12,7S0
6,703
3,785
3,078
12,449
103
61
51
275
18
11
9
57
Demand accounts— to ta l___
939
Percent
of
accounts
of $5,000
or less
521
299
95.1%
In banks with deposits
of —
1
98.8
98.7
98.1
26
66
60
5
17
22
97.5
96.9
96.0
125
76
63
293
70
47
41
203
33
26
27
168
94.8
94.0
93.2
91.3
711
131
18
0)
4
24
(l)
1
7
C1)
(x)
In banks with deposits
of —
(,)
i
8
0)
C1)
1
1 Less than 500 accounts.
N ote : Percentages were calculated from the original figures before rounding.
99.0
98.9
98.4
0)
0)
(0
97.9%
1
2
3
2
1
9
98.1
98.1
98.2
98.2
98.1
98.0
97.3
TYPES OF DEPOSITS IN INSURED COMMERCIAL BANKS
87
D istribu tion o f a ccou n ts and deposits by size o f a cco u n t and
by State. Table 45 shows for each State the distribution by size of
account of the number of demand accounts of individuals, partnerships,
and corporations; and Table 46 shows the amount of insured deposits
in these accounts. The percentage of accounts fully protected by in
surance under the $5,000 limitation and the amount of insured deposits
are also given in the tables.
The proportion of demand deposits insured was lowest in New York
and in Massachusetts, 18 and 29 percent, respectively; and highest in
North and South Dakota, 78 percent each. The range among the States
in fully protected accounts was not so great; in New York and
Massachusetts fully protected demand accounts of individuals, partner
ships, and corporations were 90.7 percent and 91.6 percent, respectively,
while in Alabama and West Virginia the percentages were each 97.7.
Similar distributions of savings and time deposits of individuals,
partnerships, and corporations are given in Tables 47 and 48. The per
centage of these accounts fully protected by insurance ranged from
95.2 percent in Nevada to 98.9 percent in Connecticut and Nebraska.
The proportion of savings and time deposits insured ranged from 83
percent in California to 94 percent in Connecticut, Massachusetts,
Minnesota, Nebraska, South Dakota, and Vermont.
88
FEDERAL DEPOSIT INSURANCE CORPORATION
T able 45. D istribution of D emand A ccounts op
I ndividuals , Partnerships , and C orporations A ccording to S ize
O ctober 10, 1945
of
A ccount ,
INSURED COMMERCIAL BANKS GROUPED B T STATE
Number of demand accounts of—
State
Total
United States and pos
sessions— total............. 35,610,317
$5,000
or less
$5,000
to
$10,000
$10,000
to
$25,000
Percent of
accounts
of $5,000
or less
More
than
$25,000
33,850,922
939,069
521,673
298,653
95.1%
United States—to ta l.. 35,597,596
State
786,836
Alabama......................
135,417
Arizona........................
Arkansas......................
501,262
2,466,537
California....................
307,503
Colorado.....................
33,838,746
938,731
521,515
298,604
95.1%
768,389
128,342
487,393
2,310,650
287,609
10,349
4,027
8,365
82,602
11,656
5,486
2,184
3,794
47,703
5,750
2,612
864
1,710
25,582
2,488
97.7
94.8
97.2
93.7
93.5
Connecticut................
Delaware.....................
District of Columbia..
Florida.........................
Georgia........................
281,559
101,193
337,668
628,803
762,227
263,234
95,385
322,379
597,011
737,958
9,389
2,929
7,800
18,107
13,139
5,734
1,750
4,664
9,631
7,259
3,202
1,129
2,825
4,054
3,871
93.5
94.3
95.5
94.9
96.8
Idaho...........................
Illinois.........................
Indiana........................
Iowa.............................
Kansas.........................
163,779
1,780,203
1,010,271
832,661
731,363
154,870
1,653,724
970,511
798,090
700,956
5,518
65,592
23,379
22,730
19,644
2,550
36,940
11,141
9,040
8,304
841
23,947
5,240
2,801
2,459
94.6
92.9
96.1
95.8
95.8
Kentucky....................
Louisiana.....................
Maine..........................
Maryland....................
Massachusetts............
869,997
585,729
108,335
474,201
645,116
846,296
561,972
102,020
453,215
590,878
14,927
12,928
3,396
10,676
24,396
6,251
7,165
1,956
6,499
17,459
2,523
3,664
963
3,811
12,383
97.3
95.9
94.2
95.6
91.6
Michigan.....................
Minnesota...................
Mississippi..................
Missouri......................
Montana.....................
811,790
668,603
515,781
1,,324,377
179,266
765,660
642,222
503,459
1,274,661
167,236
23,640
14,811
7,486
28,029
7,606
14,089
7,398
3,594
13,935
3,435
8,401
4,172
1,242
7,752
989
94.3
96.1
97.6
96.2
93.3
Nebraska.....................
Nevada.......................
New Hampshire.........
New Jersey.................
New Mexico................
474,578
42,172
77,579
1,096,904
135,155
450,680
39,329
74,002
1,041,389
129,125
15,407
1,552
1,910
30,583
3,635
6,330
918
1,102
16,881
1,840
2,161
373
565
8,051
555
95.0
93.3
95.4
94.9
95.5
New York...................
North Carolina...........
North Dakota............
Ohio.............................
Oklahoma....................
3,090,607
796,593
211,675
1,437,579
890,295
2,803,672
771,878
201,467
1,359,065
864,063
124,946
13,467
7,351
40,356
16,135
88,386
7,299
2,328
23,449
7,209
73,603
3,949
529
14,709
2,888
90.7
96.9
95.2
94.5
97.1
Oregon.........................
Pennsylvania..............
Rhode Island..............
South Carolina............
South Dakota.............
390,001
2,435,448
210,482
376,621
235,094
367,477
2,314,927
202,976
363,678
226,513
13,252
63,370
3,308
7,572
6,047
6,466
36,167
2,354
3,806
2,027
2,806
20,984
1,844
1,565
507
94.2
95.1
96.4
96.6
96.3
Tennessee....................
Texas...........................
Utah.............................
Vermont......................
Virginia........................
870,927
2„777,490
144,017
81,162
1,,000,630
847,568
2,674,054
137,721
78,616
976,154
13,158
59,285
3,381
1,424
13,656
6,745
30,269
1,883
804
7,255
3,456
13,882
1,032
318
3,565
97.3
96.3
95.6
96.9
97.6
Washington.................
West Virginia..............
Wisconsin....................
Wyoming.....................
564,955
547,840
600,256
99,059
532,150
535,381
568,285
94,456
18,162
7,030
17,852
2,771
10,025
3,668
9,205
1,388
4,618
1,761
4,914
444
94.2
97.7
94.7
95.4
Possessions—total. . . .
12,721
12,176
338
158
49
95.7
OF DEPOSITS IN INSURED COMMERCIAL BANKS
Lble 46.
D is t r ib u t io n op D e m a n d D eposits of
TNERSHIPS, AND CORPORATIONS ACCORDING TO SlZE OF ACCOTOS A»
O cto ber 10, 1945
ENSURED COMMERCIAL BANKS GROUPED BY STATE
Deposits (in thousands)
Deposits ini ure
with $5,C 00
maximum eo rera
In accounts o f Total
$5,000
or less
$5,000
to
$10,000
$10,000
to
$25,000
M ore
than
$25,000
A mount
(in
thousands)
Pe
cei
$71,878,895 $19,908,149
$6,479,432
$7,878,846 $37,612,468 $28,705,124
39*
$71,863,524 $19,899,852
$6,477,141
$7,876,484 $37,610,047 $28,694,102
39<
711,128
209,897
461,123
5,633,072
601,053
318,480
87,531
256,715
1,755,347
214,491
70,670
27,609
56,942
575,850
80,255
82,297
32,901
56,443
712,543
86,189
239,681
61,856
91,023
2,589,332
220,118
410,715
122,906
326,060
2,534,782
313,961
57
58
70
45
52
634,377
241,756
580,431
906,569
910,066
164,206
55,063
162,117
343,388
350,347
64,539
20,406
54,231
125,043
91,617
86,870
26,301
70,796
146,382
108,749
318,762
139,986
293,287
291,756
359,353
255,831
84,103
238,562
502,348
471,692
40
34
41
55
51
238,794
5,572,756
1,361,787
971,426
880,336
112,165
1,154,757
565,196
497,577
446,358
37,705
451,888
159,901
155,556
134,487
37,606
563,678
167,532
131,990
120,528
51,318
3,402,433
469,158
186,303
178,963
156,710
1,787,152
763,996
670,432
598,393
65
32
56
69
856,695
781,896
177,948
746,117
2,250,375
458,074
290,378
62,890
221,970
391,723
101,636
89,099
23,655
76,642
170,895
93,152
108,478
29,454
100,080
270,195
203,833
293,941
61,949
347,425
1,417,562
576,579
409,163
94,465
326,900
662,913
67
52
53
43
29
1,938,215
1,069,724
413,873
2,013,504
292,914
464.124
377,396
245,289
721.125
133,921
163,590
101,652
51,538
192,000
52,074
212,258
111,549
53,703
213,233
49,184
1,098,243
479,127
63,343
887,146
57,735
694,774
509,301
306,899
969,705
194,071
35
47
74
48
708,785
76,334
101,177
1,689,772
159.315
320,314
29,756
37,246
573,802
80,818
105,037
9,934
13,244
210,965
24,820
91,940
13,773
16,644
252,007
27,490
191,494
22,871
34,043
652,998
26,187
439,804
43,971
55,131
851,377
110,968
62
57
54
50
69
18,811,127
870,847
268,661
3,074,769
910,082
1,964,224
350,098
159,003
812,528
432,038
863,601
92,363
49,485
280,271
109,946
1,354,860
110,259
33,404
356,039
106,614
14,628,442
318,127
26,769
1,625,931
261,484
3,398,899
473,673
210,043
1,205,098
563,198
18
54
78
39
61
704,135
4,892,515
301.315
393,819
247,699
281,069
1,283,553
52,440
188,660
150,302
90,815
437,908
23,249
51,899
40,926
97,625
543,740
36,127
59,024
29,623
234,626
2,627,314
189,499
94,236
28,848
393,689
1,886,158
89,970
253,375
193,207
55
38
29
64
78
874,042
3,390,842
247,312
74,003
871,509
402,873
1,450,864
69,561
33,540
377,968
89,824
410,629
23,269
9,809
93,512
102,169
457,369
28,818
12,124
109,228
279,176
1,071,980
125,664
18,530
290,781
519,668
1,968,044
101,041
46,270
500,368
59
58
40
62
57
1,042,569
448,776
1,129,171
119,116
360,961
219,507
360,898
57,181
124,751
48,604
123,646
19,154
151,403
55,262
138,527
20,324
405,454
125,403
506,100
22,457
524,986
281,802
520,753
80,196
50
62
46
67
15,371
8,297
2,291
2,362
2,421
11,022
71
68
66
90
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 47.
D is t r ib u t io n of S a v in g s a n d T im e A ccounts of
I n d iv id u a l s , P a r t n e r sh ip s , a n d C orpo ratio ns A ccording to S ize of A c c o u n t ,
O cto ber 10, 1945
in su r ed co m m ercial b a n k s grouped b y state
Number of accounts
State
Total
$5,000
or less
$5,000
to
$10,000
$10,000
to
$25,000
Percent of
accounts
of $5,000
or less
More
than
$25,000
U n ited S ta tes a n d p o s
session s— t o t a l .............. 40,954,813
40,095,113
710,488
131,281
17,931
97.9%
U n ited S ta tes— t o t a l . .
S ta te
A labam a........................
A rizona..........................
Arkansas.......................
California......................
C olorad o.......................
40,937,013
40,078,052
709,843
131,195
17,923
97.9%
343,640
90,961
101,368
4,354,003
267,500
336,427
87,992
98,890
4,167,073
262,102
5,787
2,362
1,997
145,425
4,457
1,234
536
419
36,100
833
192
71
62
5,405
108
97.9
96.7
97.6
95.7
98.0
C onnecticut..................
Delaware.......................
District of C olu m b ia ..
F lorida...........................
Georgia..........................
634,291
83,243
323,690
319,214
508,393
627,107
81,428
318,367
310,313
500,566
6,338
1,417
4,136
7,220
6,427
783
357
987
1,458
1,218
63
41
200
223
182
98.9
97.8
98.4
97.2
98.5
Id a h o..............................
Illinois............................
Indiana..........................
Iow a ...............................
Kansas*.........................
84,834
2,966,451
1,028,456
615,232
235,593
81,973
2,900,428
1,008,854
603,595
232,834
2,402
54,416
16,945
9,845
2,263
398
10,455
2,343
1,651
449
61
1,152
314
141
47
96.6
97.8
98.1
98.1
98.8
K en tu ck y......................
Louisiana.......................
M ain e............................
M arylan d......................
Massachusetts.............
294,547
479,737
371,845
684,960
1,337,091
289,517
473,985
367,548
673,017
1,320,298
4,182
4,718
3,623
9,741
14,623
751
878
594
1,929
1,994
97
156
80
273
176
98.3
98.8
98.8
98.3
98.7
M ichigan.......................
Minnesota.....................
M ississippi....................
M issouri........................
M o n ta n a .......................
2,359,598
976,875
139,794
1,012,691
102,334
2,309,533
960,870
136,437
999,026
99,927
41,490
14,163
2,637
11,840
1,955
7,540
1,698
632
1,655
414
1,035
144
88
170
38
97.9
98.4
97.6
98.7
97.6
Nebraska.......................
N eva d a ..........................
New Hampshire..........
New Jersey...................
New M ex ico.................
219,353
40,054
128,964
2,969,806
42,724
216,926
38,149
127,375
2,921,441
41,563
2,043
1,541
1,329
42,262
878
351
318
226
5,556
241
33
46
34
547
42
98.9
95.2
98.8
98.4
97.3
New Y o r k .....................
N orth Carolina............
N orth D a k ota ..............
O hio................................
Oklahom a.....................
4,281,877
406,867
90,299
2,986,447
166,417
4,199,187
400,844
88,245
2,925,660
164,087
69,749
4,947
1,758
51,033
1,914
11,317
926
279
8,562
351
1,624
150
17
1,192
65
98.1
98.5
97.7
98.0
98.6
Oregon...........................
Pennsylvania...............
Rhode Isla n d...............
South Carolina.............
South D a k ota..............
400,280
4,222,821
251,170
130,163
85,039
389,821
4,155,904
245,088
127,968
83,580
9,328
55,388
5,188
1,757
1,268
1,023
9,919
791
378
176
108
1,610
103
60
15
97.4
98.4
97.6
98.3
98.3
Tennessee......................
T exas..............................
U tah ...............................
V erm on t........................
V irginia..........................
523,996
562,958
222,515
213,964
815,996
513,109
550,661
217,965
210,585
802,671
8,774
9,846
3,886
3,027
10,873
1,849
2,054
595
314
2,167
264
397
69
38
285
97.9
97.8
98.0
98.4
98.4
W ashington..................
W est Virginia...............
W isconsin......................
W yom ing.......................
579,293
407,167
1,423,031
49,471
563,474
401,224
1,396,177
48,241
13,493
4,994
23,201
957
2,054
837
3,369
236
272
112
284
37
97.3
98.5
98.1
97.5
P ossession s— t o t a l . . . .
17,800
17,061
645
86
8
95.8
91
TYPES OF DEPOSITS IN INSURED COMMERCIAL BANKS
T able 48.
D is t r ib u t io n of S a y in g s a n d T im e D eposits of
I n d iv id u a l s , P a r t n e r sh ip s , a n d C orpo ratio ns A ccording to S ize of A ccou n t ,
O ctober 10, 1945
in su r ed co m m ercial b a n k s gro uped b y state
Deposits (in thousands)
Deposits insured
with $5,000 •
maximum coverage
In accounts of—
State
Total
$5,000
or less
U n ite d S ta tes a n d p o s
session s— t o t a l .......... $28,172,547 $20,953,733
U n ited S ta tes— t o ta l $28,154,476 $20,941,096
S ta te
221,033
160,626
A labam a...................
76,737
51,192
A rizon a.....................
82,036
61,107
Arkansas...................
4,501,240
2,801,797
C alifornia.................
188,512
143,926
C olorad o...................
$5,000
to
$10,000
$10,000
to
$25,000
$4,439,258
$4,435,186
35,609
14,766
12,428
937,476
27,548
16,956
7,485
5,749
485,898
11,339
7,842
3,294
2,752
276,069
5,699
196,691
66,037
73,497
3,736,447
170,916
M ore
than
$25,000
Amount
(in
thousands)
Per
cent
$1,785,364
$994,192 $25,252,233
89%
$1,784,252
$993,942 $25,235,901
89%
8886
89
83
90
C onnecticut..............
Delaware...................
District of Columbia
Florida.......................
G eorgia......................
336,025
53,954
201,532
249,815
270,016
281,651
37,601
148,599
171,870
205,699
39,355
8,966
26,163
44,324
39,544
10,104
4,965
13,534
19,732
16,820
4,915
2,422
13,236
13,889
7,953
317,571
46,676
175,214
216,375
244,834
Id ah o.........................
Illinois.......................
Indiana......................
Io w a ...........................
Kansas.......................
77,065
2,042,939
691,586
422,156
130,201
54,760
1,510,231
539,157
332,024
107,712
14,587
339,978
103,140
62,210
14,394
5,377
142,722
31,879
22,644
6,124
2,341
50,008
17,410
5,278
1,971
69,065
1,840,346
637,167
390,209
121,507
89
90
92
92
93
K en tu ck y..................
Louisiana..................
M aine........................
M arylan d..................
Massachusetts.........
186,577
230,072
169,504
384,561
707,494
147,217
181,750
135,422
283,792
581,868
25,287
28,722
22,995
60,563
90,968
10,285
12,192
8,077
26,916
24,455
3,788
7,408
3,010
13,290
10,203
172,367
210,510
156,907
343,507
665,833
92
91
92
89
94
M ichigan...................
M innesota.................
M ississippi................
M ontana...................
1,779,380
657,344
110,362
562,410
83,769
1,354,143
541,148
81,082
454,493
64,520
260,465
87,399
16,454
74,155
12,163
104,110
22,985
8,975
23,372
5,644
60,662
5,812
3,851
10,390
1,442
1,604,468
621,173
97,867
522,818
76,555
90
94
88
93
91
N ebraska........ ..
N e v a d a ......................
N ew H am pshire.. . .
N ew Jersey...............
N ew M ex ico .............
120,656
41,431
59,662
1,709,327
33,963
101,837
25,438
46,657
1,353,548
23,277
12,902
9,773
8,463
254,371
5,458
4,833
4,245
3,045
73,795
3,305
1,084
1,975
1,497
27,613
1,923
113,972
34,963
54,602
1,595,373
29,082
94
84
91
93
85
N ew Y o rk .................
N orth Carolina........
N orth D a k ota .........
O h io...........................
Oklahom a.................
2,937,520
263,527
73,123
2,077,040
98,421
2,212,900
212,378
57,739
1,577,786
78,259
434,204
30,290
11,001
315,844
11,932
154,118
12,859
3,798
117,787
4,950
136,298
8,000
585
65,623
3,280
2,626,350
242,493
68,009
1,881,721
89,909
89
92
93
90
91
Oregon.......................
Pennsylvania...........
Rhode Island ...........
South Carolina........
South D akota..........
339,962
2,434,465
185,841
73,817
61,751
266,444
1,839,747
138,992
55,004
50,938
55,144
344,091
32,327
11,053
7,795
13,655
137,085
10,723
5,364
2,388
4,719
113,542
3,799
2,396
630
318,739
2,174,332
169,402
65,979
58,233
93
89
91
89
94
Tennessee..................
Texas.........................
U tah...........................
V erm ont....................
V irginia.....................
341,432
379,172
150,894
121,712
466,851
248,366
265,914
115,673
97,725
355,764
54,600
62,107
23,442
18,106
67,892
25,253
28,648
8,092
4,205
29,615
13,213
22,503
3,687
1,676
13,580
302,801
327,399
138,423
114,620
422,389
88
86
91
94
90
W ashington..............
W est Virginia...........
W isconsin.................
W yom ing..................
507,387
221,701
1,001,005
37,496
384,749
174,172
797,487
26,915
82,330
30,922
145,442
6,038
27,970
11,574
45,319
3,287
12,338
5,033
12,757
1,256
463,844
203,887
931,757
33,065
91
92
93
88
P ossession s— t o t a l . . . .
18,071
12,637
4,072
1,112
250
16,332
90
94
86 1 '
86
86 H
90]
PART FOUR
LEGISLATION AND REGULATIONS
F e d e r a l Le g is l a t io n
G O V E R N M E N T CH ECKS AN D W A R R A N T S — C L A IM S
[Pu b lic L a w 308— 79 t h C ongress ]
[C h apter 48— 2 d S ess io n ]
[H. R. 129]
AN ACT
To provide for the barring of certain claims by the United States in connection with
Government checks and warrants.
Be it enacted by the Senate iand House of Representatives of the United States of America
in Congress assembled, That no proceeding in any court shall be brought by the United
States or by any agency or official of the United States to enforce the liability of any
endorser, transferor, or depositary, or financial agent, arising out of a forged or un
authorized signature or endorsement upon or alteration of any check, checks, warrant,
or warrants issued by the Secretary of the Treasury, the Postmaster General, the
Treasurer and Assistant Treasurers of the United States, or by disbursing officers
and agents of the United States, unless such proceeding is commenced within six
years after the presentation to the Treasurer of the United States or other drawee
of such issued checks or warrants for payment of such check, checks, warrant, or
warrants, or unless within that period written notice shall have been given by the
United States or an agency thereof to such endorser, transferor, or depositary, or
financial agent of a claim on account of such liability. Unless a court proceeding shall
have been brought or such notice given within the period prescribed herein, any claim
against such endorser, transferor, or depositary, or financial agent on account of such
liability shall be forever barred: Provided, That in connection with any claim presented
to the General Accounting Office within the time limitation prescribed by section 2
of the Act of June 22, 1926 (44 Stat. 76; U. S. C., title 31, sec. 122), the period within
which such a proceeding may be brought or such notice given shall be extended by an
additional one hundred and eighty days, and unless such notice shall be given or a
court proceeding brought within such extended period any claim against such en
dorser, transferor, depositary, or financial agent on account of such liability shall be
forever barred.
S e c . 2. The Comptroller General of the United States is authorized and directed
to allow credit in the accounts of the Treasurer of the United States for the amount
of any check, checks, warrant, or warrants with respect to which court proceedings
shall have been barred pursuant to the provisions of this Act upon a showing that the
barring of such proceedings did not result from any negligence on the part of the
Treasurer of the United States in failing to give the notice required by the provision
of section 1 of the Act.
S e c . 3. If any endorser, transferor, or depositary, or financial agent who is liable
to any of the actions mentioned in this Act shall fraudulently conceal the cause of
such action from the knowledge of the United States or any agency or official of the
United States entitled to bring such action, the action may be commenced at any
time within two years after the United States or any agency or official of the United
States who is entitled to bring the same shall discover that the United States or any
agency or official of the United States had such cause of action, although such action
would be otherwise barred by the provisions of this Act.
Approved March 6, 1946.
95
96
FEDERAL DEPOSIT INSURANCE CORPORATION
FEDERAL CRED IT U NIO N A C T — A M E N D M E N T
[Public L a w 574— 7 9 th C o n gress]
[C h apter 711— 2 d S ess io n ]
[H. It. 6372]
AN A C T
To amend the Federal Credit Union Act.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembledf That the Federal Credit Union Act, as amended, is hereby
further amended as follows: Paragraph (5) of section 7 is amended by adding at the
end thereof the following: “ The taking, receiving, reserving, or charging a rate of
interest greater than is allowed by this subsection, when knowingly done, shall be
deemed a forfeiture of the entire interest which the note, bill, or other evidence of
debt carries with it, or which has been agreed to be paid thereon. In case the greater
rate of interest has been paid the person by whom it has been paid, or his legal repre
sentatives, may recover back, in an action in the nature of an action of debt, the entire
amount of interest thus paid from the credit union taking or receiving the same:
Provided, That such action is commenced within two years from the time the usurious
transaction occurred.”
S e c . 2. Section 9 of such Act is amended by adding at the end thereof the following:
“ Shares may be issued in joint tenancy with right of survivorship with any person
designated by the credit union member, but no joint tenant shall be permitted to
vote, obtain loans, or hold office, unless he is within the field of membership and is
a qualified member.”
S e c . 3. Subsection (c) of section 11 of such Act is amended by striking out the
clause “ fix the amount and character of the surety bond required of any officer having
custody of funds” and inserting in lieu thereof the following: “ require any officer or
employee having custody of or handling funds to give bond with good and sufficient
surety in an amount and character to be determined, from time to time, by the board
and authorize the payment of the premium or premiums therefor from the funds of
the Federal credit union” .
S e c . 4. Subsection (d) of section 11 of such Act is amended by striking out in the
first sentence thereof the following: “ (by the treasurer)” .
S e c . 5. The fourth sentence of subsection (d) of section 11 of such Act is amended
to read as follows: “ No loan shall be made to any member which shall cause such
member to become indebted to the Federal credit union in the aggregate, upon loans
made to such member, in excess of $200 or 10 per centum of the Federal credit union’s
paid-in and unimpaired capital and surplus, whichever is greater, or in excess of $300
unless such excess over $300 is adequately secured.”
S e c . 6. Subsection (e) of section 11 of such Act is amended by adding at the end
thereof the following:
“ As used in this subsection the term ‘passbook’ shall include any book, statement
of account, or other record approved by the Governor for use by Federal credit unions.”
S e c . 7. At the end of such Act a new section is added as follows:
“ S e c . 22. The provisions of this Act shall be extended to and include the Panama
Canal Zone.”
S e c . 8. Subsection (b) of section 16 of such Act is amended to read as follows:
“ (b )"(l) The Governor may suspend or revoke the charter of any Federal credit
union, or place the same in involuntary liquidation and appoint a liquidating agent
FEDERAL LEGISLATION
97
therefor, upon his finding that the organization is bankrupt or insolvent or has violated
any provisions of its charter, its bjdaws, or of this chapter, or of any regulations issued
thereunder.
“ (2) The Governor, through such persons as he shall designate, may examine any
Federal credit union in voluntary liquidation and, upon his finding that such voluntary
liquidation is not being conducted in an orderly or efficient manner or in the best
interests of its members, may terminate such voluntary liquidation and place such
organization in involuntary liquidation and appoint a liquidating agent therefor.
“ (3) Such liquidating agent shall have power and authority, subject to the control
and supervision of the Governor and under such rules and regulations as the Governor
may prescribe, (i) to receive and take possession of the books, records, assets, and
property of every description of the Federal credit union in liquidation, to sell, enforce
collection of, and liquidate all such assets and property, to compound all bad or
doubtful debts, and to sue in his own name or in the name of the Federal credit union „
in liquidation, and defend such actions as may be brought against him as liquidating
agent or against the Federal credit union; (ii) to receive, examine, and pass upon all
claims against the Federal credit union in liquidation, including claims of members
on shares; (iii) to make distribution and payment to creditors and members as their
interests may appear; and (iv) to execute such documents and papers and to do such
other acts and things which he may deem necessary or desirable to discharge his
duties hereunder.
“ (4) Subject to the control and supervision of the Governor and under such rules
and regulations as the Governor may prescribe, the liquidating agent of a Federal
credit union in involuntary liquidation shall (i) cause notice to be given to creditors
and members to present their claims and make legal proof thereof, which notice shall
be published once a week in each of three successive weeks in a newspaper of general
circulation in each county in which the Federal credit union in liquidation maintained
an office or branch for the transaction of business on the date it ceased unrestricted
operations: Provided, That whenever the aggregate book value of the assets and
property of a Federal credit union in involuntary liquidation is less than $1,000, unless
the Governor shall find that its books and records do not contain a true and accurate
record of its liabilities, he shall declare such Federal credit union in liquidation to be
a ‘no publication liquidation, and publication of notice to creditors and members
shall not be required in such case; (ii) from time to time, make a ratable dividend on
all such claims as may have been proved to his satisfaction or adjudicated in a court
of competent jurisdiction and, after the assets of such organization have been liqui
dated, shall make further dividends on all claims previously proved or adjudicated;
and the liquidating agent may accept in lieu of a formal proof of claim on behalf of
any creditor or member the statement of any amount due to such creditor or member
as shown on the books and records of the credit union: Provided, That all claims not
filed before payment of the final dividend shall be barred and claims rejected or dis
allowed by the liquidating agent shall be likewise barred unless suit be instituted
thereon within three months after notice of rejection or disallowance; (iii) in a ‘no
publication’ liquidation, determine from all sources available to him, and within the
limits of available funds of the Federal credit union, the amounts due to creditors and
members, and after sixty days shall have elapsed from the date of his appointment,
shall distribute the funds of the Federal credit union to creditors and members ratably
and as their interests may appear.
“ (5) Upon certification by the liquidating agent in the case of an involuntary
liquidation, and upon such proof as shall be satisfactory to the Governor in the case
of a voluntary liquidation, that distribution has been made and that liquidation has
been completed, as provided herein, the Governor shall cancel the charter of such
Federal credit union: Provided, That the corporate existence of the Federal credit union
98
FEDERAL DEPOSIT INSURANCE CORPORATION
shall continue for a period of three years from the date of such cancellation of its
charter, during which period the liquidating agent, or his duly appointed successor,
or such persons as the Governor shall designate, may act on behalf of the Federal
credit union for the purpose of paying, satisfying, and discharging any existing lia
bilities or obligations, collecting and distributing its assets, and doing all other acts
required to adjust and wind up its business and affairs, and it may sue and be sued in
its corporate name.
“ (b) After the expiration of five years from the date of cancellation of the charter of
a Federal credit union the Governor may, in his discretion, destroy any or all books
and records of such Federal credit union in his possession or under his control.”
Approved July 31, 1946.
DISTRICT OF COLUMBIA BANKS— SATURDAY HOLIDAY
[P u b lic L aw 508— 7 9 th C o n gress]
[C h a p te r 576— 2 d S ess io n ]
[S. 2307]
AN ACT
To provide that every Saturday shall be a holiday for banks and building and loan
associations in the District of Columbia.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled, That the fourth sentence of section 1389 of the Act entitled
“ An Act to establish a code of law for the District of Columbia” , approved March 3,
1901, as amended (D. C. Code, 1940 edition, sec. 28-616), is amended by inserting
before the period at the end thereof a colon and the following: uProvidedy That every
Saturday shall be a holiday in the District and not a business day for (1) every bank
or banking institution having an office or banking house located within the District,
(2) every Federal savings and loan association whose main office is in the District,
and (3) every building association, building and loan association, or savings and loan
association, incorporated or unincorporated, organized and operating under the laws
of and having an office located within the District; and any act which would otherwise
be required, authorized, or permitted to be performed on Saturday in the District
at the office or banking house of, or by, any such bank or banking institution, Federal
savings and loan association, building association, building and loan association, or
savings and loan association, if Saturday were not a holiday, shall or may be so per
formed on the next succeeding business day, and no liability or loss of rights of any
kind shall result from such delay.”
Approved July 13, 1946.
St a t e B a n k in g Le g is l a t io n
Some of the more important subjects dealt with in State banking legislation during
1946 are listed below:
SUPERVISORY a u t h o r it y
Creation of Department of Banking........................................................Kentucky (Ch. 191)
Appointment and qualification.................................................................. Kentucky (Ch. 191)
Authority to prescribe maximum rates of interest on deposits. .New Jersey (Ch. 264)
Examination of banks.................................................................................Mississippi (Ch. 396)
Examination of trust companies and affiliates.............................. Massachusetts (Ch. 66)
Fees for examination............................................................................................. Virginia (Ch. 8)
o r g a n iza t io n a n d c a p ita l c h an g es op b a n k s
Organization.....................................................................................................Kentucky (Ch. 141)
Increase of capital stock.............................................................................. Kentucky (Ch. 141)
Branches. .Massachusetts (Ch. 87), New Jersey (Ch. 315, 317), New York (Ch. 788)
Merger or consolidation............................. Massachusetts (Ch. 87), New York (Ch. 788)
o per atio n s
Surplus requirements from earnings.............................................Missouri (Senate Bill 293)
Reserve requirements.....................................................................................New York (Ch. 64)
Transmission of money by savings bank...............................................New York (Ch. 184)
Deposits:
Deposits of, or security for, public funds................................................................................
. . . .Louisiana (Act 308), Mississippi (Ch. 303, 422), New York (Ch. 394, 778)
Escheat of unclaimed deposits___ New Jersey (Ch. 78), New York (Ch. 906, 907)
Maximum rates of interest on deposits prescribed by Commissioner.........................
..................................................................................................................New Jersey (Ch. 264)
Deposits in banking companies subject to withdrawal by check..................................
............................................................................................................ Massachusetts (Ch. 115)
Loans:
Loans pursuant to Servicemen’s Readjustment Act:
Modification of loan limitations.................. California (Ch. 53), Massachusetts (Ch.
63, 126), Mississippi (Ch. 360), New York (Ch. 275), Rhode Island (Ch. 1656)
Validation of contracts of minor veterans. .Idaho (House Bill No. 28 X ), Louisiana
(Act 185), Michigan (Act 15), New Jersey (Ch. 134), New York (Ch. 275)
Validation of contracts of minor veterans and minor veterans’ spouses...........
........................................................ Mississippi (Ch. 321), South Carolina (Act 461)
Loan limitation enlarged or made inapplicable to loans secured by obligations or
guarantee of United States or its agencies..........................................................................
.........................Kentucky (Ch. 177), Rhode Island (Ch. 1656), Virginia (Ch. 7, 14)
99
FEDERAL DEPOSIT INSURANCE CORPORATION
100
Loans:— Continued
Loan limitation enlarged or made inapplicable to loans secured by obligations or
guarantee of enacting State or its subdivisions...........................Kentucky (Ch. 177)
Real estate loans.................... Massachusetts (Ch. 154, 255, 256), Michigan (Act 7)>
Rhode Island (Ch. 1656), Virginia (Ch. 7)
Instalment personal lo an s................... Kentucky (Ch. 60), New York (Ch. 88, 634)
Limitation on total liability of one borrower..........................................................................
Massachusetts (Ch. 255), Missouri (Senate Bills 189, 245), Virginia (Ch. 14)
Loan secured by stock of lending bank prohibited.................... Virginia (Ch. 12)
Investments:
Savings bank investments:
Personal loans................................................................. Massachusetts (Senate Bill 280)
Real estate mortgages.................................................................................................................
___ Massachusetts (Ch. 256), New York (Ch. 560), Rhode Island (Ch. 1656)
Urban development projects.................................................... Massachusetts (Ch. 129)
Rehabilitation loans on residential property............................. New York (Ch. 185)
Banking premises and alterations...........................................Massachusetts (Ch. 122)
Railway bonds.......................................................................................New Jersey (Ch. 58)
Public utility securities.................................................................... New Jersey (Ch. 311)
Obligations issued or guaranteed by International Bank for Reconstruction and
Development..................................................................................... New York (Ch. 507)
Industrial obligations....................................................................... New Jersey (Ch. 311)
Port of New York authority............................................................ New Jersey (Ch. 95)
Banking premises and alterations......................................Massachusetts (Ch. 122, 123)
Securities................................. Missouri (Senate Bills 189, 245), New Jersey (Ch. 95)
Trust Activities:
Common trust fund.................................................................................. Kentucky (Ch. 176)
Charitable trusts........................................................................................ Louisiana (Act 224)
Unclaimed money held as agent or trustee for payment of security holders exempted
from abandoned property law..........................................................New York (Ch. 908)
Escheat of unclaimed dividend or other payment received by banking organization
or its nominee as record holder of any stock or security for an unknown person
....................................................................................................................New York (Ch. 920)
Directors, officers, and employees:
Qualifications of directors or trustees.........................................................................................
................Kentucky (Ch. 141, 175), Massachusetts (Ch. 64), New York (Ch. 165)
Service of savings bank officers on board of investment------Massachusetts (Ch. 34)
Report of savings bank investment board to board of trustees.....................................
.............................................................................................................. Massachusetts (Ch. 32)
Insurance on officers’ lives by savings banks..................................New York (Ch. 424)
Indemnification of directors, officers, and employees...................New York (Ch. 686)
Notice of by-laws regulating directors’ election............................. New York (Ch. 428)
STATE LEGISLATION
101
Holidays:
Locally designated days of public rest............................................... Louisiana (Act 306)
Saturday closing from June to September, inclusive...........................................................
.................................................................Massachusetts (Ch. 284), New York (Ch. I l l )
Saturday closing from May to September, inclusive....................New Jersey (Ch. 55)
Emergency holidays designated by Governor for banks and cash depositories. . . .
...........................................................................................................South Carolina (Act 698)
Taxation:
Stock.................................................................................................................. Virginia (Ch. 107)
Shares of stock and real estate.........................Louisiana (Act 7), New Jersey (Ch. 146)
Net income of banks...................................................................Missouri (House Bill 888)
Banks shares exempted from financial business tax.................... New Jersey (Ch. 174)
Exemption of interest on share savings accounts..................Massachusetts (Ch. 539)
Savings deposits................................................................................ Rhode Island (Ch. 1801)
LIQUIDATION
Voluntary liquidation.................................................................................... New York (Ch. 73)
Enforcement of stockholders liability..................................................... Kentucky (Ch. 141)
Disposal of unclaimed amounts due from closed banks.....................New York (Ch. 68)
Vesting of title and prosecution of claims against property of foreign banking cor
poration in involuntary liquidation..................................................... New York (Ch. 65)
Notice of unpaid or unclaimed dividends of bank or trust company in liquidation
.............................................................................................................................Virginia (Ch. 313)
MISCELLANEOUS
Annuities or pensions to members of savings bank employees associations................
...................... ......................................................................................... Massachusetts (Ch. 280)
Uniform Stock Transfer A c t.....................................................................Mississippi (Ch. 222)
Interest rate of investment companies...................................................New York (Ch. 198)
Abandoned property law inapplicable to Federal Reserve Banks. .New York (Ch. 373)
Safekeeping deposits and safe deposit boxes............................. Rhode Island (Ch. 1655)
Assignment of accounts receivable.................................................South Carolina (Act 461)
Liability for payment of forged or raised notes and acceptances and liability on forged
endorsements................................................................................................Virginia (Ch. 9, 11)
102
FEDERAL DEPOSIT INSURANCE CORPORATION
R e g u l a t io n s
of the
C o r p o r a t io n
PART 303— ADVERTISEMENT OF MEMBERSHIP
A s Amended February 20 and August SO, 1946
Section 303.0* * *.
303.1* * *.
303.2 Mandatory requirements with regard to the official advertising
statement and manner of use— * * *.
(c) * * *.
(3) * * *.
(xvii) Advertisements by radio which do not exceed thirty (30) seconds in time.
***
303.3 Approved emblem and approved short title which insured banks may
use at their option— (a) Emblem. The only emblem approved for use by insured
banks, when reference therein is made to deposit insurance or membership in the
Corporation, is the one reproduced below:
(b) Short title. The following short title is approved for use by insured banks only
on signs or plates attached to the outside of the bank building: “ M E M B E R OF
F D IC ” .
(c) Use of emblem or short title. No insured bank is required to use the emblem
or short title to any extent whatsoever. If any insured bank desires to use the emblem,
it may do so in any of its advertisements and on any of its bank supplies. Since the
approved emblem contains the official advertising statement in the outside circle, its
use in the type of advertisements listed in § 303.2 (c) will satisfy the mandatory
requirements of that section.
Any insured bank may, in addition to the requirements of this part, use any proper
advertising of insurance of its deposits. For example, as an addition to the official
advertising statement, any insured bank may, at its option, use the following in any
of its advertisements:
“ Deposits in this bank are insured with maximum insurance of $5,000 for each
depositor.”
Further, in the case of display signs in the banking offices which, under the pro
visions of this part, are not required to include the official advertising statement, any
insured bank may use, for example, any of the following:
(1)
“ The Federal Deposit Insurance Corporation insures deposits in this bank with
$5,000 maximum insurance for each depositor.”
REGULATIONS OF THE CORPORATION
103
(2) “ Deposits in this bank are insured by the Federal Deposit Insurance Corporation
with $5,000 maximum insurance for each depositor.”
(3) Electric sign or other display reproductions of the official sign.
303.4
Penalties. No bank will violate any provision of paragraph (2) of subsection
(v) of section 12B of the Federal Reserve Act, as amended (12 U.S.C. 264 (v) (2) ), or
any provisions of this part if it complies with the provisions of §§ 303.1 and 303.2.
PA R T 305— R E C O G N ITIO N OF D EPO SIT O W N ER SH IP N O T
ON B A N K RECORDS
A s Amended February'W, 1946
Section 305.1* * *.
305.2 * * *.
305.3 * * *.
305.4 Deposits in custodial accounts. The owner of any portion of a deposit
appearing on the records of a closed bank under a name other than that of the claimant,
whose name or interest as such owner is not disclosed on the records of the closed
bank as part owner of said deposit, will be recognized for all purposes of claim for
insured deposits to the same extent as if his name and interest were disclosed on the
records of the bank: Provided, That the deposit is maintained in a specifically desig
nated deposit account or accounts in such a manner as to disclose the custodial nature
thereof and, Provided fu rth er, That the name and interest of such owner in the
deposit is disclosed on the records of the person in whose name the deposit is main
tained and such records have been maintained in good faith and in the regular course
of business.
305.5 Revoked.
305.6 Revoked.
PA R T 332— PO W ERS IN C O N SISTEN T W IT H PURPOSES OF
FEDERAL DEPO SIT INSURANCE L A W
Adopted August SO, 1946
Section 332.1 Inconsistent powers. A State nonmember insured bank (except
a District bank) which does not have any of the powers hereinafter enumerated, or
which, although it has any such power, does not exercise the same, shall not hereafter
exercise, take, or assume the power: (a) to do a surety business; (b) to insure the
fidelity of others; (c) to engage in insuring, guaranteeing or certifying titles to real
estate, or (d) to guarantee or become surety upon the obligations of others.1
332.2
Exercise prohibited. After the effective date of this part, any State non
member bank (except a District bank) becoming an insured bank shall not thereafter
exercise any of the powers enumerated in the preceding section.
1 The limitations prescribed in clause (d) do not include acceptances or endorsements made in the
usual course of the banking business.
104
FEDERAL DEPOSIT INSURANCE CORPORATION
PART 333— EXTENSION OF CORPORATE POWERS
Adopted August SO, 1946
Section 333.1 Classification o f general character of business. State nonmember
insured banks are divided into six categories for the purpose of classifying their general
character or type of business,1 viz: commercial banks, banks and trust companies,
trust companies (without banking powers), savings banks (including mutual and
stock), industrial banks, and cash depositories.
333.2
Change in general character of business. No State nonmember insured
bank (except a District bank) or branch thereof shall hereafter cause or permit
any change to be made in the general character or type of business exercised by it after
the effective date of this part without the prior written consent of the Corporation.
1 A bank’s business may include two or more of the general classifications.
PART 334— REMOVAL OF PRINCIPAL PLACE OF BUSINESS
Adopted August 30, 1946
Section 334.1 Removal of principal place of business. No State nonmember
insured bank (except a District bank) shall move its principal place of business without
the prior written consent of the Corporation.
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
o
05
u m b e r
, O
f f ic e s
,
an d
D
e p o s it s
o f
O
p e r a t in g
B
a n k s
C O R P O R A T IO N
Table 103. Number and deposits of operating commercial and mutual savings banks, Dec
ember 31, 1946
Banks grouped according to insurance status and by District and State
INSURANCE
Table 102. Number of operating banks and branches, December 31, 1946
Grouped according to insurance status and class of bank, and by State and type
of office
DEPOSIT
Table 101. Changes in number and classification of operating banks and branches in the United
States and possessions during 1946
FEDERAL
N
OPERATING
BANKS
Noninsured banks: Board of Governors of the Federal Reserve
System; State banking authorities; Rand McNally Bankers Directory;
and P oW s Bankers Encyclopedia.
OF
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 :
AND
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.
O FF IC E S,
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.
NUM BER,
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.
o
T able 101.
C
hanges
in
in
the
N
um ber
and
C l a s s if ic a t io n
U n it e d S t a t e s
of
O p e r a t in g B
P o s s e s s io n s D
and
u r in g
anks
and
In
sured
Mutual savings banks
Noninsured
Insured1
Total
ranches
Commercial banks and trust companies
All banks
T yp e of change
B
1946
Non
insured
Members F . R .
System
Total
Total
State
Banks
of de
posit
Trust
com
panies
not ac
cepting
deposits
Total
In
N on
sured2 insured
FEDERAL
National
N ot
mem
bers
F. R.
S ystem
BANKS
14,218
14,183
13,359
13,302
5,007
5,017
1.890
1^864
6,462
6,421
776
798
+ 34
+ 56
-2 2
+ 35
+ 57
-1 0
+ 26
+41
-2 2
148
145
2
1
132
130
2
16
15
148
145
2
1
132
130
2
21
21
11
11
100
98
2
16
15
114
1
1
102
12
1
113
1
1
101
42
16
43
11
1
93
19
89
12
4
7
92
19
88
12
Noninsured banks becoming insured
Successions to noninsured banks
A/^miQairtrtc f a inaiirnupp nnprfltififf
Admissions to F R System
+29
+6
+20
+3
-2 9
-6
-20
-3
+ 29
+ 6
+ 20
+3
+3
In^nrprl
hprnmin^ tintilnsurpd
.Qiip^dccinnd f a incmrpH Hsnlrsi
WithHrawfll from F R Svstpm
_3
_2
-1
+ 3
+2
+ 1
-3
_2
-1
83
83
541
542
191
192
-1
-1
1
1
1
1
1
1
Changes resulting from —
banks
ninaoH KanIres rpnnpnl nor
Banks ccs&sin^ deposit operations
Mergers and absorptions
decrease
Other liquidations
(without
. . .
. . .
F D IC aid)— net
..
.
1
1
1
1
39
3
WithHrnwnlQ frnm F R Sv^tpm
Changes not involving num ber in any class:
Qii s*/'ȣ>qqi nn q
Changes in title location or name of location
P Vjqtinrpa in ^Arfl nrptp HAWPrQ
8
95
6
5
91
6
3
4
8
94
6
5
90
6
34
8
4
6
+ 26
+ 6
+20
-2 9
-6
-2 0
-3
-2
1
-1
-1
+ 2
+2
+30
-1 1
+ 1
+ 50
-1 0
-41
-3
+2
-5 0
+ 10
7
4
59
6
15
1
+ 3
+ 11
+ 14
-3
O ther changes in classification am ong banks
N ational banks succeeding State banks
State banks succeeding national banks
1
1
1
24
1
+ 1
+1
3
4
350
350
C O R P O R A T IO N
1,209
1,231
INSURANCE
13,550
13,494
DEPOSIT
14,759
14,725
BRANCHES
4,220
4,168
4,043
3,997
177
171
4,063
4,025
3,928
3,896
1,787
1,814
1,132
1,099
1,009
983
134
128
157
143
101
+52
+46
+6
+38
+32
-2 7
+33
+26
+6
+ 14
+ 14
Branches opened for b usin ess................................
Facilities provided as agents of the governm ent.
Absorbed banks converted into branches.............
Branches replacing offices closed or relocated----Other branches opened...............................................
226
214
12
211
200
11
15
14
55
3
158
53
3
148
55
3
143
53
3
134
51
38
15
14
Branches discontinued..............................................
Facilities provided as agents of the governm ent.
Other branches discontinued....................................
174
151
23
169
149
173
151
169
149
20
118
115
3
27
+1
+1
+10
N um ber of branches, December 31, 1946.
N um ber of branches, December 31, 1945.
N et change during year.
115
42
42
Changes resulting from —
10
Other changes in classification am ong branches.
Branches transferred as result of absorption..............
Admissions to F . R . S ystem ..........................................
Withdrawals from F . R . S ystem ..................................
10
20
+1
+1
10
22
10
Changes not involving num ber in any cla ss:
Branches transferred as result of absorptions...
Changes in title, location, or name of loca tion ..
+10
22
5
-2
-10
+ 10
-2
24
12
12
-7
+1
-10
1
4
2
2
-1
-1
+2
20
A L L B A N K IN G OFFICES
Num ber of offices, December 31, 1946.
N um ber of offices, December 31, 1945.
N et change during year.
18,979
18,893
17,593
17,491
+86 + 102
Offices opened.
B anks..............
Branches.........
374
148
226
346
132
214
Offices closed.
B anks............
B ranches. . . .
288
114
174
271
Changes in classification...................
Noninsured banks to insured banks.
Insured banks to noninsured b an k s.
Among insured banks..........................
Among branches of insured b an k s. .
102
1,386
1,402
18,281
18,208
17,287
17,198
6,794
6,831
3,022
2,963
7,471
7,404
910
926
-16
+73
+ 89
-37
+59
+ 67
28
16
359
148
332
132
102
73
157
21
81
62
160
42
118
+21
12
211
200
17
286
113
173
270
12
169
5
+ 27
+29
-3
-2 7
-29
+3
+1
101
169
+ 27
+29
-3
+1
+11
+ 10
698
685
306
293
-1 6
+ 13
+ 13
27
16
15
14
57
11
‘ ’ * 15
43
16
27
67
43
24
15
11
2
+29
+ 3
-23
+26
-2 8
-2 9
11
-2
+30
-2
100
-1
-41
-7
1 Includes 8 trust companies not engaged in deposit banking on December 31, 1946, and 9 on December 31, 1945.
a Includes three mutual savings banks members of the Federal Reserve System, for December 31, 1946, and December 31, 1945.
* Operating at beginning of year.
84
84
1
1
4
+2
+1
•+i
392
392
Table 102.
N
um ber
of
O p e r a t in g B a n k s
and
B ran ch es, D
ecem ber
31, 1946
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Commercial banks and trust companies
All banks
N on
Insured insured
Total
Total
National State
N ot
mem
bers
F. R .
S ystem
Trust
com
Banks panies
of de not ac
posit cep ting
deposits
T otal
In
N on
sured2 insured
Com Mutual
All
banks m ercial savings
banks banks
1,386
1,209
1,129
80
177
18,281 17,287
14,218 13,359
13,11,4 12,301
1,058
1,10 A
4,063
3,928
6,794
5,007
k,7k0
267
1,787
3,022
1,890
1,69 a
196
1,132
7,471
6,462
5,867
595
1,009
910
776
731
k5
134
84
83
82
1
1
698
541
k51
90
157
306
191
135
56
115
392
350
316
3k
42
92.7
91.8
91.7
93.3
95.8
94.6
94.0
93.8
95.8
96.7
43.8
35.3
29.9
62.2
73.2
U n ite d S ta te s ..........................................
All banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
18,863
14,715
13,532
1,183
4,148
17,586
13,545
12,U33
1,112
4,041
1,277
1,170
1,099
71
107
18,165
14,174
13,081
1,093
3,991
17,280
13,354
12,298
1,056
3,926
6,794
5,007
k,7k0
267
1,787
3,022
1,890
1,69k
196
1,132
7,464
742
6,457
5,86k
593
1,007
806
79
78
77
1
1
698
541
k51
90
157
306
191
135
56
115
392
350
316
3k
42
93.2
92.0
91.9
9k.O
97.4
95.1
94.2
9k.O
96.6
98.4
43.8
35.3
29.9
62.2
73.2
P o s se s sio n s .................
All banks.................................................
Unit banks................
Banks operating branches................
Branches...............................................
116
44
33
11
72
7
5
3
2
2
109
39
30
9
70
116
44
33
11
72
7
5
3
2
2
7
5
3
2
2
104
34
25
9
70
6.0
11.4
9.1
18.2
2.8
6.0
11.4
9.1
18.2
2.8
A la b a m a ..................................................
All banks....................................
Unit banks.............................
Banks operating branches
Branches.................
242
219
21U
5
23
239
216
211
5
23
3
3
3
242
219
21U
5
23
239
216
211
5
23
88
66
62
u
22
20
19
18
1
1
131
131
131
3
3
3
98.8
98.6
98.6
100.0
100.0
98.8
98.6
98.6
100.0
100.0
A r iz o n a ....................................................
All banks.................................................
Unit banks. .
Banks operating branches
Branches..........................
47
12
7
5
35
45
10
5
5
35
2
2
2
47
12
7
5
35
45
10
5
5
35
31
3
1
2
28
2
2
2
12
5
2
3
7
2
2
2
95.7
83.3
71.k
100.0
100.0
95.7
83.3
71. k
100.0
100.0
A r k a n s a s .................................................
All banks...........................
Unit banks............
Banks operating branches
Branches.................................................
249
229
211
18
20
233
213
195
18
20
16
16
16
249
229
211
18
20
233
213
195
18
20
51
50
1*9
1
1
16
16
16
166
147
130
17
19
3
3
3
93.6
93.0
92.k
100.0
100.0
93.6
93.0
92.k
100.0
100.0
706
36
64
5
5
5
S ta te
13
13
13
C O R P O R A T IO N
17,593
13,550
12,U36
1,11k
4,043
INSURANCE
18,979
14,759
18,565
1 ,1 U
4,220
DEPOSIT
U n ite d S ta tes a n d p o s s e s s io n s ........
AH banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
FEDERAL
Total
Members F . R .
System
Insured banks
as percentages of—
1
Noninsured
Insured1
State and type of bank or office
Mutual savings banks
C alifornia..................................................
All banks.................................................
Unit banka..........................................
Banks operating branches................
B ranches.................................................
1,079 i| 1,064
201
187
168
155
33
82
878
877
137
136
185
1
1
78
77
76
1
1
135
115
107
8
20
107
97
90
7
10
52
38
31
7
56
50
46
4
6
11
2
13
13
13
8
4
1
3
C onnecticut.............................................
All banks.................................................
207
187
179
8
20
109
99
92
7
10
98
88
87
1
10
56
41
88
8
15
52
38
31
7
14
4
3
2
1
1
District of C olum bia............................
All banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
55
20
8
12
35
55
20
8
12
35
Florida........................................................
All banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
185
182
179
3
3
178
176
174
2
G eorgia......................................................
All banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
406
375
862
13
Banks operating branches................
Delaware....................................................
All banks.................................................
Unit banks..........................................
31
89
47
41
ft
42
Illin o is........................................................
All banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
879
876
873
3
3
127
5
4
1
1
15
15
15
44
44
44
15
15
15
«
9
9
9
|
B
1
|
98.6
93.0
92.8
97.0
99.9
98.6
93.0
92.3
97.0
99.9
|
|
90.1
90.1
90.0
90.1
90.1
90.0
B
100.0 100.0
100.0 100.0
|
16
13
3
35
34
38
27
17
16
1
10
31
1
1
1
1
1
21
17
4
55
20
8
12
35
14
55
20
8
12
35
28
9
3
6
19
21
7
2
5
14
10
6
4
8
1
2
7
6
5
1
1
185
182
179
8
3
178
176
174
2
2
62
60
58
2
2
10
10
10
106
106
106
73
71
69
2
2
406
375
362
13
31
333
304
293
11
29
70
49
43
6
21
16
87
45
89
fS
42
2
2
2
89
47
41
6
42
87
45
89
6
42
859
856
853
3
3
20
20
20
879
876
873
3
3
859
856
853
3
3
2
333
304
293
U
29
6
74
60
14
38
4
1
1
1
721
72 I
72 J
2
2
2
70
70
70
52.7
52.9
51.4
87.5
50.0
3
2
1
1
1
92.9
92.7
98.9
87.5
93.3
fl
3
2
1
1
1
I
I
I
I
79.3
84.3
84.1
87.5
50.0
98.1
97.4
96.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1
1
96.2
96.7
97.2
66.7
66.7
96.2
96.7
97.2
66.7
66.7
4
3
*
3
3
8
247
244
9
24*
73
71
69
2
2
82.0
81.1
80.9
84.6
93.5
82.0
81.1
80.9
84.6
93.5
55
15
10
5
40
10
10
10
22
20
19
1
2
2
2
2
97.8
95.7
95.1
97.8
95.7
95.1
376
373
370
8
3'
127
127
127
356
356
356
14
14
14
97.7
97.7
97.7
97.7
97.7
97.7
11
100.0 100.0
100.0 100.0
6
6
6
1
100.0 100.0
100.0 100.0
2.8
2.8
2.8
BANKS
Id a h o ..........................................................
All banks.................................................
Unit banks..........................................
Banks operating branches................
Branches.................................................
53
39
82
7\
14
112
OPERATING
15
15
15
21
18
8
OF
137
136
185
1
1
148
DEPOSITS
152
151
150
1
1
804
92
82
10
712
AND
152
151
150
1
1
C olorado....................................................
All banks.................................................
Unit banks..........................................
Banks operating branches................
1,064 III
187
155
82
877
O F F IC E S,
1,079
201
168
33
878
NUM BER,
15
14
18
1
1
T able 102.
N umber
of
O perating B anks
and
B ranches , D ecember 31, 1946— Continued
grouped according to insurance status and class of ban k , and b y state and type of office
N on
Insured insured
Members F . R .
System
Total
Total
National
I
Hratifidfi
K o tifiirlfv
All Vianlra
Banks operating branches................
T «~iii Ifiici €%
Banks operating branches................
M a in e
.......................................
All banks
..........................
Unit banks
............................
Banks operating branches
Branches
559
477
U27
50
82
17
16
15
1
1
572
489
U38
51
83
556
474
m
50
82
140
126
117
9
14
126
112
110
2
14
290
236
197
39
54
13
12
11
1
1
820
659
5 AO
119
161
750
596
U82
1U
154
70
63
58
5
7
820
659
5U0
119
161
750
596
h82
1U
154
97
97
97
67
67
67
586
432
318
1U
154
70
63
58
5
7
615
614
613
1
1
453
452
k51
1
1
162
162
162
615
614
613
1
1
453
452
U51
1
1
175
174
173
1
1
40
40
1*0
238
238
238
160
160
160
425
390
373
17
35
396
362
3U6
16
34
29
28
27
1
1
425
390
373
17
35
396
362
3U6
16
34
no
93
91
2
17
28
21
17
U
7
258
248
238
10
10
24
24
2U
217
155
121
3U
62
216
154
120
3U
62
1
1
I
217
155
121
3h
62
216
154
120
3U
62
64
33
25
8
31
13
10
7
3
3
139
111
88
23
28
1
1
1
166
96
71
25
70
121
61
U3
18
60
45
35
28
7
10
132
64
hi
23
68
115
55
37
18
60
39
33
29
!>
6
34
5
1
u
29
42
17
7
10
25
17
9
U
5
8
N on
In
sured2 insured
Com Mutual
All
banks m ercial savings
banks banks
97.0
96.8
96.6
98.0
98.8
97.2
96.9
96.8
98.0
98.8
91.5
90.4
89.3
95.8
95.7
91.5
90.4
89.3
95.8
95.7
2
2
2
73.7
73.6
73.6
100.0
100.0
73.7
73.6
73.6
100.0
100.0
5
4
3
1
1
93.2
92.8
92.8
9U.1
97.1
93.2
92.8
92.8
9U.1
97.1
99.5
99.4
99.2
100.0
100.0
99.5
99.4
99.2
100.0
100.0
72.9
63.5
60.6
72.0
85.7
87.1
85.9
90.2
78.3
88.2
3
3
3
4
4
4
34
32
30
2
2
3
3
3
6
6
6
1
1
1
28
26
u
2
2
75.0
75.0
75.0
C O R P O R A T IO N
TT'n'ii T\n*YiIfQ
576
493
W
51
83
Total
INSURANCE
.•I i
bers
F. R .
S ystem
Trust
com
Banks panies
of de not ac
posit cep tin g
deposits
DEPOSIT
Unit banks..........................................
State
N ot
FEDERAL
Total
Insured banks
as percentages of—
N oninsured
Insured1
State and typ e of bank or office
Mutual savings banks
Commercial banks and trust companies
All banks
17.6
18.8
20.0
10
8
7
1
2
143
646
448
890
58
198
604
417
363
42
31
27
66
12
236
150
187
18
86
221
189
160
29
32
34
23
19
Ji
ll
8
8
8
11
604
417
868
5J,
187
147
78
187
646
448
890
58
198
M inn esota..................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
684
678
676
653
647
31
31
81
683
677
675
652
646
187
181
179
27
27
27
438
438
U38
29
29
29
2
2
2
M ississippi.................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
255
203
175
28
52
250
198
170
28
52
255
203
175
28
52
250
198
170
28
52
25
24
23
6
6
6
219
168
1U1
27
51
5
5
5
M issouri......................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
5%
596
596
565
565
565
596
596
596
565
565
565
81
81
81
100
100
100
384
384
38U
29
29
29
110
M ichigan....................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
M o n ta n a....................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
N ebraska....................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
Nevada.........................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
2
6
U
5U
61+5
2
6
h
U2
2
6
hi
6U
197
121
102
19
76
1
1
110
110
110
110
110
110
110
110
110
110
110
39
39
89
38
38
38
33
33
83
419
417
U15
358
356
85U
419
417
U15
358
356
35k
129
127
125
18
18
18
211
211
211
5
1
3
2
1
1
1
2
2
26
8
5
5
18
1
4
1
1
1
23
9
6
3
14
14
2
1
1
12
224
190
168
27
34
1
1
1
224
190
163
27
34
1
1
1
............................
53
53
58
2
2
2
8
8
8
9
7
5
2
2
95.5
94.4
95.3
90.0
97.2
98.5
98.2
98.6
96.3
98.9
58.2
48.0
U5.5
5 9.U
79.9
97.0
95.8
95.8
97.6
98.6
93.5
93.1
93.1
93.1
94.4
93.5
93.1
93.1
93.1
94.4
95.5
95.4
95.k
100.0
100.0
95.5
95.4
95. k
100.0
100.0
98.0
97.5
97.1
100.0
100.0
98.0
97.5
97.1
100.0
100.0
94.8
94.8
9k .8
94.8
94.8
9k .8
100.0
100.0
100.0
100.0
100.0
100.0
85.4
85.4
85.3
100.0
100.0
85.4
85.4
85.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
00
60.9
22.2
16.7
83.3
85.7
100.0
100.0
100.0
AND
145
11*2
h
13
3
O F F IC E S,
143
326
183
76
63
59
BANKS
43
33
27
6
10
326
183
1U2
560
381
312
69
179
1U8
OPERATING
86
29
13
16
57
336
191
1U9
M assachusetts.........................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
264
170
OF
1
1
1
234
198
170
28
36
274
169
1U2
27
105
DEPOSITS
119
88
72
16
31
27
94
287
179
1U9
SO
108
NUM BER,
65
16
10
6
49
260
167
U1
26
93
M aryland....................................
All banks..................................
Unit banks...........................
Banks operating branches.
Branches..................................
T able 102.
N
um ber
op
O p e r a t in g B a n k s
and
B
ranch es,
D
ecem ber
31, 1946— Continued
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OP BANK, AND BY STATE AND TYPE OP OFFICE
All banks
N on
Insured insured
Total
Total
National
State
N ot
mem
bers
F. R .
S ystem
Trust
com
Banks panies
of de not ac
posit cepting
deposits
66
64
62
2
2
57
56
55
1
1
52
51
50
1
1
1
1
1
4
4
u
9
8
7
1
1
509
370
309
61
139
502
363
302
61
139
7
7
7
480
346
288
58
134
475
341
283
58
134
258
216
19 U
22
42
154
78
50
28
76
63
47
39
8
16
2
2
2
50
44
38
6
50
44
38
6
6
23
23
23
8
8
8
6
1,554
790
6U1
1U9
764
50
44
38
6
6
19
13
7
6
6
New Y o rk ..................................................
All banks.................................................
Unit banks..........................................
Banks operating branches
Branches.................................................
50
44
38
6
6
1,567
802
651
151
765
13
12
10
2
1
1,364
671
566
105
693
1,351
659
556
103
692
582
392
S55
37
190
634
186
136
50
448
135
81
65
16
54
13
12
10
2
1
North Carolina
....
.
All b a n k s ...............................................
Unit banks. .
..............................
Banks operating branches
Branches .
.......................... ..
388
227
176
51
161
381
222
172
50
159
7
5
£
1
2
388
227
176
51
161
381
222
172
50
159
58
45
39
6
13
18
8
5
3
10
305
169
128
hi
136
6
4
3
1
2
North Dakota
..............................
All banks
...............
...
Unit banks..........................................
Banks operating branches
Branches . . .
..............................
176
151
13U
17
25
168
145
ISO
15
23
8
6
4
2
2
176
151
13U
17
25
168
145
ISO
15
23
41
41
U1
127
104
89
15
23
7
5
3
2
2
Banks operating branches
Branches
•
..
New Jersey...............................................
All banks.................................................
Unit banks..........................................
Banks operating branches
Branches.................................................
New Mexico
..
All banks
Unit banks
Banks operating branches
Branches
43
42
u
1
1
43
42
U1
1
1
86.4
87.5
88.7
50.0
50.0
98.6
98.1
97.7
100.0
100.0
99.0
98.6
98.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.2
98.5
98.5
98.7
99.9
99.0
98.2
98.2
98.1
99.9
1
1
1
98.2
97.8
97.7
98.0
98.8
98.2
97.8
97.7
98.0
98.8
1
1
1
95.5
96.0
97.0
88.2
92.0
95.5
96.0
97.0
88.2
92.0
3
3
3
29
24
21
3
5
203
131
85
U6
72
27
22
19
3
5
203
131
85
U6
72
2
2
2
52.3
52.8
53.U
33.3
33.3
93.1
91.7
90.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
C O R P O R A T IO N
52
50
U8
2
2
Com Mutual
All
banks m ercial savings
banks banks
INSURANCE
57
56
55
1
1
In
N on
sured2 insured
DEPOSIT
109
106
103
3
3
Total
FEDERAL
Members F . R .
System
State and type of bank or office
Insured banks
as percentages of—
Noninsured
Insured1
Total
Mutual savings banks
Commercial banks and trust companies
O h i o .............................................................
All banks.................................................
300
187
255
233
15
15
98.2
97.8
98.2
97.8
100.0
100.0
230
9
171
16
15
97.6
97.6
100.0
100.0
B ranches.................................................
176
176
176
176
41
113
219
14
100.0
100.0
100.0
O k la h o m a .................................................
All banks.................................................
386
385
375
374
11
11
386
385
375
374
201
200
20
154
20
97.2
97.1
373
1
11
384
1
373
1
199
1
154
154
97.2
97.1
384
1
97.1
1
1
1
1
1
97.1
100.0
Branches.................................................
O r e g o n .......................................................
A ll banks.................................................
147
71
144
68
3
3
146
70
143
67
94
23
10
10
39
34
98.0
95.8
97.9
95.7
64
7
61
7
3
63
7
60
7
21
2
10
29
5
95.3
100.0
95.2
Branches.................................................
76
76
76
76
71
5
100.0
100.0
100.0
P e n n s y lv a n ia ...........................................
All banks.................................................
1,164
1,022
1,143
1,005
21
17
1,141
1,015
1,120
998
729
657
23
7
98.2
98.3
98.2
98.3
959
63
945
60
14
3
956
59
942
56
626
31
98.5
95.2
98.5
94.9
B ranches.................................................
142
138
4
126
122
72
29
3
4
100.0
100.0
100.0
100.0
100.0
R h o d e I s la n d ...........................................
All banks.................................................
78
32
49
14
29
18
67
23
49
14
17
9
22
2
20
12
7
7
13
5
12
11
7
7
6
3
Branches.................................................
46
35
11
44
35
8
S o u t h C a r o lin a .......................................
All banks.................................................
179
149
156
126
23
23
179
149
156
126
47
23
142
7
119
7
23
142
7
119
7
21
2
30
30
30
30
24
......................
........
Unit banks
Banks operating branches
......................
........
Unit banks
Banks operating branches
......................
........
Unit banks
Banks operating branches
......................
........
Unit banks
Banks operating branches
......................
........
Unit banks
Banks operating branches
Branches.................................................
20
22
100.0
100.0
141
112
100
12
20
8
6
250
229
216
13
21
10
3
1
101
97
213
169
213
169
213
169
55
35
28
28
145
24
145
24
145
24
28
Branches.................................................
44
44
44
44
31
4
T e n n e s s e e .................................................
All banks.................................................
366
298
357
289
9
9
366
298
357
289
102
70
273
25
264
25
9
273
25
264
25
63
7
Branches.................................................
68
68
68
68
32
T e x a s ...........................................................
All banks.................................................
877
873
815
811
62
62
877
873
815
811
438
434
116
116
261
261
868
5
806
5
62
868
5
806
5
429
5
116
261
4
4
4
4
4
......................
........
......................
........
Unit banks
Banks operating branches
Branches.................................................
23
23
11
9
8
1
2
11
9
97.2
96.8
62.8
43.8
73.1
60.9
35.0
58.3
58.3
63.6
76.1
79.5
87.2
84.6
87.2
84.6
83.8
83.8
100.0
100.0
100.0
130
106
100.0
100.0
100.0
100.0
100.0
233
208
97.5
97.0
97.5
97.0
192
16
96.7
100.0
25
100.0
100.0
100.0
61
61
92.9
92.9
92.9
92.9
61
92.9
92.9
100.0
24
20
22
11
9
2
11
100.0
100.0
100.0
100.0
100.0
86
20
100.0
100.0
96.7
100.0
100.0
100.0
100.0
BANKS
213
169
Unit banks
Banks operating branches
16
4
15
100.0
145
24
Unit banks
Banks operating branches
23
7
3
4
......................
........
S o u t h D a k o t a ..........................................
All banks.................................................
19
15
12
100.0
OPERATING
280
239
620
39
OF
835
659
635
39
DEPOSITS
850
674
15
AND
15
15
623
39
O FF IC E S,
838
662
638
39
NUM BER,
853
677
......................
........
Unit banks
Banks operating branches
Table 102.
N
um ber
of
O p e r a t in g B a n k s
an d
B
ran ch es,
D
ecem ber
31, 1946— Continued
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
All banks
N on
Insured insured
Total
Total
National
22
12
10
2
10
22
22
22
27
25
23
2
2
81
72
65
7
9
80
71
6U
7
9
41
39
37
2
2
1
1
1
38
31
26
5
7
401
315
272
us
86
401
315
272
us
86
160
131
119
12
29
84
72
66
6
12
157
112
87
25
45
3
3
3
240
122
111
11
118
237
119
108
11
118
147
38
31
7
109
18
16
15
1
2
72
65
62
3
7
3
3
3
175
175
175
5
5
5
ISO
180
180
175
175
175
76
76
76
32
32
32
67
67
67
4
4
u
1
1
1
693
548
1+61
87
145
11
10
9
1
1
70C
554
U66
88
146
690
545
U58
87
145
109
95
92
3
14
74
68
6U
U
6
507
382
802
80
125
8
7
6
1
1
2
2
2
71
59
55
L
12
V e r m o n t ....................................................
All banks.................................................
Unit banks..........................................
Banks operating branches
Branches.................................................
98
80
72
8
18
97
79
71
8
18
V ir g in ia ...................................................
All banks.................................................
Unit banks
.............
Banks operating branches
B ranches.................................................
401
315
272
us
86
401
315
272
US
86
W a s h in g t o n .........................................
All banks..............................................
Unit banks........................................
Banks operating branches..............
B ranches.................................................
243
124
112
12
119
240
121
109
12
119
W est V i r g i n i a ..............................
All banks.................................................
Unit banks
..
...
Banks operating branches................
Branches.................................................
ISO
180
180
W is c o n s in .................................................
All banks.................................................
Unit banks..........................................
Banks operating branches
B r a n c h e s .........................................
704
558
U70
88
146
1
1
1
1
1
1
17
8
7
1
9
3
2
1
1
1
4
4
U
In
N on
sured2 insured
17
8
7
1
9
3
2
1
1
1
3
3
3
1
1
1
All
banks
Com Mutual
m ercial savings
banks banks
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0
98.8
98.6
100.0
100.0
98.8
98.6
98.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.8
97.6
97.3
100.0
100.0
98.8
97.5
97.3
100.0
100.0
97.2
97.2
97.2
97.2
97.2
97.2
98.4
98.2
98.1
98.9
99.3
98.6
98.4
98.3
98.9
99.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
75.0
75.0
C O R P O R A T IO N
71
59
55
u
12
71
59
55
U
12
Total
INSURANCE
71
59
55
A
12
Unit banks
Banks operating branches
Branches.................................................
Trust
com
Banks panies
of de not ac
posit cepting
deposits
DEPOSIT
U t a h ............................................................
State
N ot
mem
bers
F. R .
S ystem
FEDERAL
Members F. R .
System
State and type of bank or office
Insured banks
as percentages of—
Noninsured
Insured1
Total
Mutual savings banks
Commercial banks and trust companies
W y o m in g ...................................................
All banks.................................................
......................
........
Unit banks
Banks operating branches
56
56
55
55
1
1
56
56
55
55
26
26
11
11
56
55
1
18
18
56
55
26
11
18
20
18
4
3
16
15
20
18
4
3
16
2
2
1
16
2
2
4
3
16
15
20.0
16.7
20.0
16.7
1-4
1
2
1
2
1
U
1
1
1
1
12.5
50.0
12.5
50.0
50.0
50.0
1
1
1
1
1
1
46
3
1
1.9
11.1
iu .s
1U.3
66.7
50.0
66.7
50.0
100.0
100.0
100.0
100.0
1
1
1
98.2
98.2
98.2
98.2
98.2
98.2
Branches.................................................
......................
........
Unit banks
Banks operating branches
2
1
1
52
9
7
1
1
51
8
1
6
52
9
7
......................
........
Unit banks
Banks operating branches
2
43
2
43
43
P u e r to R i c o ..............................................
All banks.................................................
41
15
41
15
41
15
9
6
41
15
9
6
26
9
6
26
1
1
3
2
1
1
1
1
1
1
......................
........
Unit banks
Banks operating branches
B ranches.................................................
26
V ir g in Isla n d s 5........................................
All banks.................................................
3
2
......................
........
Unit banks
Banks operating branches
B ranches.................................................
2
1
1
1
1
1
1
1.9
11.1
9
6
26
2
1
2
1
1
1
1
1
1
DEPOSITS
43
5
AND
2
B ranches.................................................
5
5
O F F IC E S,
Branches.................................................
H aw aii4.......................................................
All banks.................................................
NUM BER,
P ossession s
A laska3........................................................
All banks.................................................
OF
BANKS
OPERATING
1 Includes 8 trust companies not regularly engaged in deposit banking: 1 national in Kansas; 2 State banks members of the Federal Reserve System, 1 each in California and
Massachusetts; and 5 State banks not members of the Federal Reserve System, 1 each in Florida, Missouri and W isconsin, and 2 in Pennsylvania.
2 Includes 3 mutual savings banks, members of the Federal Reserve System.
3 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 20 branches.
5 Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch.
Back figures— See Annual Report for 1945, pp. 98-104, and earlier reports.
Table 103.
N
um ber
and
banks
D
e p o s it s
grouped
of
O p e r a t in g C o m m e r c ia l
a c c o r d in g
to
in s u r a n c e
and
statu s
M
utual
and
by
N um ber of banks
Commercial banks and
trust companies
31, 1946
(-*■
Deposits (in thousands of dollars)
Commercial banks and
trust companies
Mutual savings banks
Mutual savings banks
Noninsured
All
banks
In
sured
14,218
13,359
776
U n ite d S t a t e s .. . . 14,715
14,174
13,354
742
83
541
191
350 156,751,343 139,882,004 137,029,289
2,852,715 16,869,339 11,427,706
5,441,633
78
541
191
350 155,923,085 139,053,746 136,990,254
2,063,492 16,869,339 11,427,706
5,441,633
44
44
5
34
5
1 ..............
2 ..............
3 ..............
4 ..............
5 ..............
6 ..............
7 ..............
8 ..............
9 ..............
10 ............
11............
12............
882
1,230
1,699
1,070
979
1,513
1,499
1,535
1,108
1,623
1,084
537
529
1,073
1,689
1,061
979
1,513
1,491
1,535
1,107
1,623
1,084
534
476
1,039
1,657
1,025
894
1,429
1,436
1,452
1,070
1,373
1,019
489
48
31
30
33
82
71
42
77
34
237
62
29
5
3
2
3
3
13
13
6
3
13
3
16
S ta te
A labam a...............
A rizon a .................
Arkansas...............
C alifornia.............
C o lorad o...............
219
12
229
201
151
219
12
229
201
151
216
10
213
187
136
13
5
15
C onnecticu t.........
Delaware...............
Dist. of Columbia
F lorida...................
G eorgia.................
187
41
20
182
375
115
39
20
182
375
97
38
20
176
304
Noninsured
Total
Insured
N onin
sured
828,258
828,258
39,035
789,223
12,289,921
45,759,215
17,462,798
8,108,990
5,433,655
8,164,141
10,377,059
13,170,833
4,337,417
5,522,017
7,835,279
18,290,018
7,134,831
36,034,888
16,232,400
7,726,115
5,433,655
8,164,141
10,324,561
13,170,833
4,197,330
5,522,017
7,835,279
18,105,954
6,674,500
35,233,176
16,175,901
7,613,982
5,386,537
8,106,454
10,188,875
13,035,880
4,099,837
5,299,075
7,719,386
17,495,686
460,331
801,712
56,499
112,133
47,118
57,687
135,686
134,953
97,493
222,942
115,893
610,268
1,225,539
393,043
787,898
13,085,851
1,091,245
1,225,539
393,043
787,898
13,085,851
1,091,245
1,223,488
393,043
783,122
13,016,908
1,083,466
4,776
68,943
7.779
2,626,060
547,999
1,021,899
1,739,990
1,714,953
1,411,133
468,372
1,021,899
1,739,990
1,714,953
1,218,598
466,593
1,021,899
1,732,850
1,686,776
Total
Insured
N onin
sured
F D IC D is tr ic t
D istrict
District
District
District
District
District
D istrict
District
District
D istrict
District
District
353
157
10
9
16
153
10
2
337
4
8
6
2
1
1
3
3
7
3
2
3
9
17
1
1
3
71
3
72
2
2
70
2
5,155,090
9,724,327
1,230,398
382,875
133,650
9,620,249
1,230,398
78,796
5,021,440
104,078
12,036
52,498
40,462
’140,087
*140,087
184,064
184,064
1,214,927
79,627
24,450
304,079
2,051
192,535
1.779
7,140
28,177
1,190,477
79,627
C O R P O R A T IO N
U n ite d S ta tes a n d
p o s s e s s io n s ......... 14,759
All
banks
Total
INSURANCE
In
sured1
DEPOSIT
Trust
com
Banks
of de panies
not
ac
posit
cep tin g
deposits
T otal
P o s se s sio n s ...........
ecem ber
AND STATE
FEDERAL
F D IC District
and State
S a v in g s B a n k s , D
d is t r ic t
390
155
64
170
191
362
154
55
167
183
M ichigan............
M innesota..........
M ississippi.........
M issouri.............
M on tana.............
448
678
203
596
110
448
677
203
596
110
417
646
198
565
110
N ebraska............
N e v a d a ...............
N ew Hampshire
N ew Jersey........
N ew M e x ic o .. . .
417
417
356
106
370
44
64
346
44
56
341
44
N ew Y o r k ...........
N orth Carolina.
N orth D a k o ta ,.
O h io.....................
O klahom a...........
802
227
151
677
385
671
227
151
674
385
659
222
145
659
374
O regon.................
Pennsylvania. . .
Rhode Island . ..
South C arolin a..
South D a k o ta ..,
71
1,022
32
149
169
70
1,015
23
149
169
67
998
14
126
169
Tennessee...........
T exa s...................
U ta h ....................
V e rm on t.............
V irginia...............
298
873
59
80
315
298
873
59
72
315
W ashington____
W est V irgin ia ..,
W iscon sin...........
W yom in g.......... .
124
180
558
56
122
180
554
56
P ossession s
A la sk a............... .
H aw aii................
Puerto Rico
Virgin Islands..
8
24
9,468
33,975
24,595
100,978
165,628
40,862
11,577
1,506,385
1,546,450
693,141
1,919,187
7,112,684
1,506,385
1,546,450
469,573
1,536,312
4,032,254
1,480,001
1,545,513
431,564
1,482,312
3,934,621
26,384
937
38,009
54,000
97,633
2,825,069
753,173
3,986,105
531,024
4,658,78s1
4,658,788
2,684,982
753,173
3,986,105
531,024
4,557,871
2,665,153
743,423
3,965,123
531,024
100,917
19,829
9,750
20,982
1,264,445
163,747
523,299
4,815,895
271,493
1,264,445
163,747
226,941
4,342,916
271,493
1,220,620
163,747
210,136
4,336,192
271,493
43,825
16,805
6,724
296,358
472,979
448,528
40,106,540
1,852,680
526,690
6,954,093
1,407,990
30,934,819
1,852,680
526,690
6,731,334
1,407,990
30,426,493*
1,827,005
449,026
6,716,427
1,402,280
508,326
25,675
77,664
14,907
5,710
9,171,721
9,171,721
222,759
222,759
1,354,818
10,508,705
1.010.740
675,631
454,634
1,343,366
9,501,066
754,504
675,631
454,634
1,335,841
9,459,474
639,155
655,528
454,634
7,525
41,592
115,349
20,103
11,452
1,007,639
256,236
11,452
1,007,639
289811
59
71
315
1,883,763
5,624,293
553,337
323,997
1,785,346
1,883,753
5,624,293
553,337
240,426
1,785,346
1,878,208
5,509,337
553,337
240,426
1,785,346
5,545
114,956
83,571
83,571
119
175
545
55
2,156,421
854,247
2,836,882
228,452
1,983,809
854,247
2,825,246
228,452
1,963,817
841,892
2,815,072
228,452
19,992
12,355
10,174
61,953
477,524
284,739
4,042
61,953
477,524
284,739
4,042
20,178
14,959
41,775
462,565
284,739
144
8
1
32
9
190
26
7
190
53
22
12
4
5
15
9
1
6
15
23
15
131
131
’ 3,898
223,568
382,875
3,080,430
25,629
78,796
197,939
304,079
3,080,430
140,087
O F F IC E S,
8
63
160
436,367 0
426,899
10,945,094 10,911,119
2,840,527
2,815,932
2,225,739
2,124,761
1,529,885
1,364,257
172,612
172,612
’ ‘f i f636
’ 11,177
296,358
24,451
256,236
1 Includes 8 trust companies not engaged in deposit banking: 2 in Pennsylvania and 1 each in California, Florida, Kansas, Massachusetts, Missouri and Wisconsin.
Back figures— See the following Annual Reports: 1945, pp. 106-107; 1944, p p. 120-121; 1943, p p . 76-77; 1942, p p. 76-77; 1941, p p. 108-109.
459
BANKS
390
155
96
179
381
436,367
10,945,094
2,881,389
2.225.739
1,529,885
OPERATING
K en tu ck y...........
Louisiana............
M a in e ..................
M a rylan d ...........
M assachusetts. .
2
12
14
OF
45
856
474
596
452
DEPOSITS
47
876
489
659
614
AND
47
876
493
659
614
NUM BER,
Id a h o ...................
Illin ois.................
In d ia n a ...............
I o w a .....................
Kansas.................
A ssets a n d
L ia b il it ie s o f 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 29, 1946
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, 1946
Banks grouped according to insurance status and type of bank
Table 106. Assets and liabilities of operating insured commercial banks, December 31, 1946,
June 29, 1946, and December 31, 1945
Table 107. Summary of assets and liabilities of operating banks in the United States and
possessions, 1944-1946
Banks grouped according to insurance status and type of bank
Table 108. Assets and liabilities of operating insured commercial banks, call dates, 1941-1946
Table 109. Percentage distribution of assets and liabilities of operating insured commercial
banks, call dates, 1941-1946
Table 110. Assets and liabilities of all operating banks in the United States and possessions,
December 31, 1946
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.
National banks and State banks in the District of Columbia not
members of the Federal Reserve System: Office of the Comptroller of
the Currency.
OPERATING
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.
Noninsured banks: State banking authorities; Rand McNally Bankers
Directory; and Polk’s Bankers Encyclopedia.
BANKS
OF
Instalment loans are ordinarily reported net if the instalment pay
ments are applied directly to the reduction of the loan. Such loans are
Sources of Data:
L IA B IL IT IE S
Since June 30, 1942, demand balances with and demand deposits
due to banks in the United States, except private banks and American
branches of foreign banks, exclude reciprocal interbank deposits.
Reciprocal interbank deposits arise when 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, 1946, 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.
AND
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 helcl
in trust are not included in statements of assets and liabilities.
reported gross if, under contract, the payments do not immediately
reduce the unpaid balances of the loan but are assigned or pledged to
assure repayment at maturity.
Table 104.
S u m m a r y op A ssets a n d L ia b il it ie s of O perating B a n k s in t h e U n it e d S ta t e s a n d P o ssessio ns , J u n e 29, 1946
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in thousands of dollars)
Commercial banks
Mutual savings banks
All
banks
Asset, liability, or capital account item
T otal
Insured1
Noninsured
Insured
T otal
Noninsured
609,452
746,851
550,288
196,563
90,641,839
82,997,854
3,975,354
3,354,207
314,424
12,767,596
11,438,144
91,016
1,092,473
145,963
8,321,549
7,661,641
73,670
573,060
13,178
4,446,047
3,776,503
17,346
519,413
132,785
_ ............... ........................
2,191,552
1,966,830
108,201
72,738
32,180
11.603
L o a n s , d is c o u n t s , a n d ov erd ra fts (in c lu d in g r e d is c o u n t s ) ......................
31,629,090
27,271,624
26,796,235
475,389
4,357,466
3,131,940
1,225,526
M is ce lla n e o u s assets— t o t a l ...................................................................................
Bank premises owned, furniture and fixtures.....................................................
Other real estate— direct and indirect..................................................................
1,727,787
1,010,897
116,644
600,246
172,167,476
1,545,587
917,746
98,311
529,530
154,113,363
1,451,983
899,703
92,253
460,027
150,743,366
93.604
18,043
6,058
69,503
3,369,997
182,200
93,151
18,333
70,716
18,054,113
134,035
69,961
13,995
50,079
12,137,812
48,165
23,190
4,338
20,637
5,916,301
Interbank.....................................................................................................................
Certified and officers' checks, cash letters of credit, e tc..................................
>Jn|ncoifioH ln^lnHincr nntjfp 1 qqvincrs
....
, ...............
159,989,490
76,693,129
48,422,753
6,619,048
13,514,394
12,320,361
2,352,413
67,392
143,708,691
76,682,372
32,161,049
6,617,077
13,511,980
12,319,908
2,348,913
67,392
140,648,764
75,404,533
31,504,915
6,361,024
13,045,857
12,007,591
2,320,252
4,592
3,059,927
1,277,839
656,134
256,053
466,123
312,317
28,661
62,800
16,280,799
10,757
16,261,704
1,971
2,414
453
3,500
10,979,154
8,988
10,963,134
1,723
1,632
420
3,257
5,301,645
1,769
5,298,570
248
782
33
243
M is c e lla n e o u s lia b ilitie s — t o t a l ............................................................................
Rediscounts and other borrowed m oney 5, s s s s
_ ........ ............
Ail other miscellaneous liabilities...........................................................................
T o t a l lia b ilitie s (e x c lu d in g c a p ita l a c c o u n t s ) .......................................
1,125,071
87.700
1,037*371
161,114,561
1,067,130
86.603
980^527
144,775,821
1,024,999
83.229
941,770
141,673,763
42,131
3.374
38,757
3,102,058
57,941
1.097
56^44
16,338,740
36,208
117
36,091
11,015,362
21,733
980
20,753
5,323,378
11,052,915
3,175,457
5,184,522
2,692,936
172,167,476
9,337,542
3,170,555
4,024,776
2,142,211
154,113,363
9,069,603
3,070,706
3,932,822
2,066,075
150,743,366
267,939
99,849
91,954
76,136
3,369,997
1,715,373
4,902
1,159,746
550,725
18,054,113
1,122,450
592,923
4,902
836,581 .........323,165
280,967
269,758
5,916,301
12,137,812
14,633
14,092
13,335
757
541
Obligations of States and political subdivisions.................................................
XlAf /»1OQQlfloH
L IA B IL IT IE S
Demand deposits of individuals, partnerships, and corporations.................
Tim e deposits of individuals, partnerships, and corporations.......................
States and political subdivisions............................................................................
C A P IT A L A CC O U N TS
C a p ita l a c c o u n t s — t o t a l ...........................................................................................
Capital stock, notes, and debentures.......................................... .........................
Undivided profits, including all other capital accounts...................................
T o t a l lia b ilitie s a n d c a p ita l a c c o u n t s .......................................................
1 Includes 8 trust companies not engaged in deposit banking.
Back figures— See the following Annual Reports: 1945, pp. 110-111;
1944, pp. 124-125; 1943, pp. 78-79; 1942, pp. 78-79; 1941, pp. 122-125.
191
350
C O R P O R A T IO N
31,853,309
92,833,391
84,964,684
4,083,555
3,426,945
346,604
11,603
INStJRANCE
32,462,761
DEPOSIT
33,209,612
105,600,987
96,402,828
4,174,571
4,519,418
492,567
11,603
FEDERAL
ASSETS
C a sh , b a la n c e s w ith o t h e r b a n k s, a n d c a s h ite m s in p rocess o f c o l-
Table 105.
Sum m ary
of
A
ssets and
L ia b il it ie s
of
O p e r a t in g B a n k s
in
the
U n it e d S t a t e s
and
P
o s s e s s io n s ,
D
ecem ber
31, 1946
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in thousands of dollars)
Commercial banks
Asset, liability, or capital account item
M utual savings banks
All
banks
T otal
Insured1
Noninsured
T otal
Insured
Noninsured
662,221
818,214
611*547
206,667
81,468,377
1,901,432
13,178,140
8,640,886
87,031,186
4,471,244
4,559,381
477,055
9,083
75,252,740
4,410,674
3,368,638
328,674
9,083
73,574,908
4,300,705
3,295,002
297,762
1,677,832
109,969
73,636
30,912
9,083
4,537,254
11,778,446
60,570
1,190,743
148,381
7,945,635
45,625
636,283
13,343
3,832,811
14,945
554,460
135,038
L o a n s , d is c o u n ts , a n d o ve rd ra fts (in c lu d in g re d is c o u n ts )......................
35,810,090
31,283,348
30,739,973
543,375
4,526,742
3,250,208
1,276,534
M is c e lla n e o u s a ssets— t o t a l ...................................................................................
Bank premises owned, furniture and fixtures....................................................
Other real estate— direct and indirect.................................................................
All other miscellaneous assets................................................................................
T o t a l a s s e t s ..........................................................................................................
1,712,228
1,531,774
1,451,879
79,895
180,454
134,061
46,393
1,012,869
104,951
594,408
920,657
90,755
520,362
902,457
84,768
464,654
18,200
5,987
55,708
92,212
14,196
74,046
69,652
11,009
53,400
3,186,923
18,703,550
22,560
3,187
20,646
150,551,466
147,364,543, "
156,751,343
139,882,004
137,029,289
2,852,715
16,869,339
11,427,706
5,441,633
81,275,673
50,283,768
6,895,161
3,163,242
12,666,810
2,396,215
70,474
81,265,119
33,432,102
6,892,965
3,160,885
12,666,134
2,394,325
70,474
79,902,589
32,761,111
6,632,984
3,046,649
12,320,105
2,360,828
5,023
1,362,530
670,991
259,981
114,236
346,029
33,497
65,451
10,554
16,851,666
2,196
2,357
676
1,890
8,549
11,412,938
1,913
1,903
642
1,761
2,005
5,438,728
283
454
34
129
12,636,702- "
6,066,848
1,158,942
1,108,597
1,047,214
61,383
50,345
36,407
13,938
45,161
1,113,781
45,063
1,063,534
6,175
55,208
98
50,247
84
36,323
157,910,285
140,990,601
38,888
1,008,326
138,076,503
2,914,098
16,919,684
11,464,113
14
13,924
5,455,571
11,344,731
9,560,865
*$,288,040
272,825
1,783,866
y i , 172,589
3,242,862
4,154,513
2,163,490
611,277
Undivided profits, including all other capital accounts..................................
T o t a l lia b ilities a n d ca p ita l a c c o u n t s ......................................................
3,247,762
5,372,915
2,724,054
3,141,878
4,060,047
2,086,115
100,984
94,466
77,375
4,900
1,218,402
560,564
169,255,016
150,551,466
147,364,543
3,186,923
18,703,550
12,636,702
6,066,848
N um ber of banks included..........................................................................................
14,655
14,114
13,359
755
541
191
350
C A P IT A L ACC O U N TS
C a p ita l a c c o u n t s — t o t a l ................................................. ........................................
Capital stock, notes, and debentures....................... ,..........................................
* Includes 8 trust companies not engaged in deposit banking.
Back figures— See the following Annual Reports: 1945, pp. 110-111; 1944, pp. 124-125; 1943, p p . 78-79; 1942, p p . 78-79; 1941, p p. 122-125.
4,900
879,400 .........339,002
288,289
272,275
BANKS
M is ce lla n e o u s lia b ilitie s — t o t a l ...........................................................................
Rediscounts and other borrowed m on ey.............................................................
All other miscellaneous liabilities..........................................................................
T o t a l lia b ilitie s (e x c lu d in g c a p ita l a c c o u n t s ).......................................
169,255,016
OPERATING
L IA B IL IT IE S
D e p o s its — t o t a l ............................................................................................................
Dem and deposits of individuals, partnerships, and corporations.................
T im e deposits of individuals, partnerships, and corporations.......................
States and political subdivisions............................................................................
United States G overnm ent.....................................................................................
Interbank....................................................................................................................
Certified and officers’ checks, cash letters of credit, etc.................................
N o t classified, including postal savings...............................................................
OF
33,704,314
83,369,809
L IA B IL IT IE S
34,366,535
96,547,949
AND
35,184,749
S e cu ritie s — t o t a l .........................................................................................................
United States Government obligations, direct and guaranteed....................
Obligations of States and political subdivisions................................................
Other bonds, notes, and debentures.....................................................................
Corporate stock s........................................................................................................
N ot classified..............................................................................................................
ASSETS
ASSETS
C a sh , b a la n c e s w it h o t h e r b a n k s, a n d ca sh ite m s in p rocess o f c o l
le c t io n .................................................................................................................
Table 106.
A ssets
and
L ia b il it ie s
Ju n e
ASSETS
D ec. 31,
1946
31,853,309
34,302,704
1,473,274
15,999,368
1,831,755
15,810,286
9,036,691
72,555
34,086
5,237,335
L IA B IL IT IE S A N D C A P IT A L
June 29,
1946
D ec. 31,
1945
2,360,828
2,320,252
G o v e r n m e n t d ep osits— t o t a l ..............................
United States Government— demand:
W ar loan and Series E bond accou nts.........
Other accou nts...................................................
United States Government— tim e.....................
Postal savings.........................................................
States and political subdivisions— d em an d ... .
States and political subdivisions— tim e...........
9,684,656
19,411,473
29,441,712
2,709,074
223,248
114,327
5,023
5,968,462
664,522
12,718,443
225,491
101,923
4,592
5,808,920
552,104
23,476,945
266,147
98,277
4,926
5,099,450
495,967
88,933,380
1,220,038
17,641,607
12,006,539
1,194,592
9,933,205
32,278,820
5,725,858
2,973,453
23,742
2,455,731
19,074,630
16,047,429
1,194,764
9,029,883
32,230,258
6,092,145 In t e r b a n k
Banks in
2,786,871
Banks in
21,669
Banks in
Banks in
7,893,469
7,643,985
7,133,315
3,975,354
3,354,207
3,874,729
2,938,313
186,796
110,966
182,798
131,626
176,895
143,378
81,468,377
90,641,839
10,336,173
D ec. 31,
1946
Deposits of individuals, partnerships, and
112,663,700 106,909,448 101,900,844
corporations— to ta l.........................
79,902,589 75,404,533 72,605,736
D em and .........................................................
32,761,111 31,504,915 29,295,108
T im e...........................................................
82,997,854
26,796,235
fcO
11,006,547 C ertified a n d o ffice rs ’ c h e ck s, ca sh letters
o f c r e d it a n d tra velers’ ch e ck s o u t
75,427
sta n d in g , a n d a m o u n ts d u e to F ed
24,017
eral R eserve b a n k s .....................................
5,554,672
4,300,705
3,295,002
Loans, discounts, and overdrafts (including
30,739,973
rediscounts)— to ta l.................
Commercial and industrial loans (including
14,018,991
open market p a p er)..................................
Loans to farmers directly guaranteed b y the
102,139
C om m odity Credit Corporation.................
Other loans to farmers (excluding loans on real
for FRASER
1,255,805
estate).....................................................
Digitized
D ec. 31,
1945
31, 1946,
d e p o sits — t o t a l ..................................
the United States— dem and..............
the United States— tim e.....................
foreign countries— dem and................
foreign countries— tim e.......................
97,000
304,685
1,268,775
1,009,608
12,320,105
12,007,591
13,883,529
10,888,080
49,199
1,364,022
18,804
10,584,438
51,259
1,346,281
25,613
12,566,058
51,957
1,247,905
17,609
T o t a l d e p o s it s ................................................... 137,029,289 140,648,764 147,810,982
Demand............................................................ 103,U 6,803 108,^08,358 117,81+7,138
T im e.................................................................. 33,612,986 32,2U0,U06 29,963,8U
M is ce lla n e o u s lia b ilitie s— t o t a l ........................
Bills payable, rediscounts, and other liabilities
for borrowed m oney......................................
Acceptances outstanding......................................
Dividends declared but not yet payable..........
Incom e collected but not earned........................
Expenses accrued and unpaid.............................
25,768,677
Other liabilities.......................................................
9,462,256
96,066,695
2,584,897
1,047,214
1,024,999
1,099,022
38,888
133,458
57,497
101,261
381,709
334,401
83,229
109,799
48,428
78,908
394,189
310,446
215,300
76,824
56,508
58,280
367,271
324,839
T o t a l lia b ilitie s
(e x c lu d in g
ca p ita l
138,076,503 141,673,763 148,910,004
a c c o u n t s ) .............................................
C O R P O R A T IO N
Total securities...........................................
June 29,
1946
ecem ber
1945
INSURANCE
Other securities— to ta l.........................................
Obligations of States and political subdivisions
Other bonds, notes, and debentures1................
Corporate stocks:
Federal Reserve banks......................................
Other corporate stocks ......................................
D e c e m b e r 31,
(Amounts in thousands of dollars)
and
DEPOSIT
Obligations of the United States Govern
m en t— to ta l................................................... 73,574,908
Direct:
1,271,662
Treasury b ills......................................................
Treasury certificates of indebtedness............ 12,293,195
6,781,379
Treasury n otes....................................................
1,180,326
United States savings b on d s...........................
Other bonds maturing in 5 years or less. . . . 12,727,955
Other bonds maturing in 5 to 10 years........ 29,700,350
6,597,224
Bonds maturing in 10 to 20 yea rs.................
3,007,790
Bonds maturing after 20 years.......................
15,027
Guaranteed obligations.........................................
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 , D
FEDERAL
Gash, balances with other banks, and cash
item s in process of collection— to ta l.. 33,704,314
2,014,710
Currency and co in ..................................................
Reserve with Federal Reserve b an k s................ 16,013,442
Dem and balances with banks in the United
States (except private banks and Ameri
9,428,590
can branches of foreign b an ks)..................
60,399
Other balances with banks in the United States
56,777
Balances with banks in foreign countries........
6,130,396
Cash items in process of collection ....................
of
29, 1946,
Loans to brokers and dealers in securities. . . .
Other loans for the purpose of purchasing or
carrying securities..........................................
Real estate loans:
On farm land.......................................................
On residential properties..................................
3,164,060
2,656,333
3,606,474
683,569
5,057,538
1,365,361
617,848
4,041,033
1,081,480
507,342
3.331.504
840,404
514,029
348,829
328,229
311,309 | 398,645
674,938
524,498
2,202,897
1,797,620
81,068
57,274
1,017,447
1,154,212
224,762
Capital accounts— to ta l.......................................
Capital stock, notes, and debentures...............
Undivided profits...................................................
3,034,144
2,838,661
42,892
152,591
191,752
204,986
260,591
92,056
240,990
20,720
106,261
22.9%
21.1%
21.8%
49.9
5.3
20.9
1.0
6.3
55.0
5.1
17.8
1.0
6.0
56.4
4.5
16.4
.9
5.5
13,359
13,335
13,302
440,988
66,459
252,033
18,641
103,855
Total capital accounts..........................................
13,302 Number of ban ks.................
B AN KS
13,335
Percentages of total assets:
Cash and balances with other banks.................
U . S. Government obligations, direct and
guaranteed.......................................................
Other securities...................
Loans sind discounts
OPERATING
13,359
3,072,408
2,909,612
40,034
122,762
PERCENTAGES
460,027
Total assets................................................... 147,364,543 150,743,366 157,582,400
Number of ban ks........................................................
3,143,231
2,995,594
35,368
112,269
OF
118,339
230,023
19,501
96,791
8,672,396
3,032,331
3,784,722
1,293,271
562,072
LIABILITIES
464,654
9,069,603
3,070,706
3,932,822
1,485,019
581,056
Total liabilities and capital accou n ts.. . 147,364,543 150,743,366 157,582,400
266,346
398,296
1,471,836
M EM ORANDA
48,599
1.132.505 Pledged assets and securities loan ed............. 13,664,608 23,895,648 32,517,937
Loans and securities— to ta l................... 112,208,350 117,438,074 121,835,372 Capital stock, notes, and debentures:
Par or face value— total
Common stock ...............................................
Bank premises, furniture and fixtures, and
Capital notes and debentures.........................
other real estate— to ta l...........................
987,225
1,003,336
991,956
Preferred s to c k ...................................................
Bank premises...............................................
824,029
835,787
828,309
Furniture and fixtures...........................................
78,428
71,394
67,138
Real estate owned other than bank prem ises..
20,326
31,239
24,903
Retireable value of preferred stock ...................
Investments and other assets indirectly repre
senting bank premises or other real estate
64,442
69,172
67,350
Miscellaneous assets— to ta l................................
Customers’ liability on acceptances out
standing ............................................................
Incom e accrued but not collected ......................
Prepaid expenses.....................................................
Other assets..............................................................
9,288,040
3,141,878
4,060,047
1,495,456
590,659
AND
Repair and modernization instalment loans.
Instalment cash loa n s.......................................
Single-payment loans........................................
Loans to ban ks........................................................
A ll other loans (including overdrafts)...............
2,416,515
1,609,335
ASSETS
Other loans to individuals:
Retail automobile instalment p a p er.............
1,517,318
1 Includes obligations of United States Government corporations and agencies not guaranteed by the United States Government.
Back figures— See the following Annual Reports: 1945, pp. 112-113; 1944, pp. 126-127; 1943, pp. 80-81; 1942, pp. 80-81; 1941, pp. 126-129; 1940, p p. 144-147; 1938, pp.
164-167.
a*
Table 107.
S u m m ary
of
A ss e ts a n d L ia b ilitie s
o f O p e r a t in g 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 ,
1944-1946
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in millions of dollars)
June 30, 1944
Asset, liability, or capital account item
ALL BANKS
INSURED
t—1
December 30, 1944
NONINSURED
ALL BANKS
INSURED
June 30, 1945
NONINSURED
ALL BANKS
INSURED
NONINSURED
152,618
30,910
86,281
7,563
26,080
1,784
144,440
30,145
81,405
6,761
24,465
1,664
8,178
765
4,876
802
1,615
120
162,845
30,846
94,169
8,013
28,086
1,731
154,114
30,081
88,790
7,185
26,468
1,590
8,731
765
5,379
828
1,618
141
Total liabilities and capital accounts...........
T otal deposits.........................................................
Miscellaneous liabilities.......................................
Total capital accounts.........................................
139,227
129,128
824
9,275
131,766
122,415
782
8,569
7,461
6,713
42
706
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
N umber of banks included......................................
14,608
13,461
1,147
14,597
13,460
1,137
14,601
13,474
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 b an k s. . . .
United States Government obligations1...........
Other securities......................................................
Loans, discounts, and overdrafts......................
Miscellaneous assets.............................................
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
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
Total liabilities and capital accounts...........
Total deposits.........................................................
Miscellaneous liabilities.......................................
Total capital accou nts.........................................
125,386
116,655
778
7,953
122,647
114,180
757
7,710
2,739
2,475
21
243
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
N um ber of banks included......................................
14,064
13,269
795
14,054
13,268
786
14,059
13,282
777
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 b an k s. . . .
United States Government obligations1...........
Other securities......................................................
Loans, discounts, and overdrafts......................
Miscellaneous assets.............................................
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
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
T otal liabilities and capital accounts...........
13,841
12,473
46
1,322
9,119
8,235
25
859
4,722
4,238
21
463
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
544
192
352
543
192
351
542
192
350
Miscellaneous liabilities.......................................
Total capital accounts.........................................
N um ber of banks included......................................
CORPORATION
7,461
708
4,161
802
1,644
146
INSURANCE
131,766
27,571
71,856
6,750
23,843
1,746
DEPOSIT
139,227
28,279
76,017
7,552
25,487
1,892
FEDERAL
T otal assets...............................................................
Cash and amounts due from other b a n k s. . . .
United States Government obligations1..........
Other securities......................................................
Loans, discounts, and overdrafts......................
Miscellaneous assets.............................................
June 29, 1946
December 31, 1945
ALL BANKS
INSURED
NONINSURED
ALL BANKS
INSURED
December 31, 1946
NONINSURED
ALL BANKS
INSURED
NONINSURED
162,881
32,403
90,660
8,304
29,928
1,586
9,286
806
5,743
895
1,700
142
169,256
35,185
87,032
9,517
35,810
1,712
160,002
34,316
81,521
8,589
33,990
1,586
9,254
869
5,511
928
1,820
126
T otal liabilities and capital accou n ts...........
T otal d ep osits.........................................................
Miscellaneous liabilities.......................................
T otal capital a ccou n ts.........................................
178,203
166,474
1*203
10,526
169,006
158,174
1,125
9,707
9,197
8,300
78
819
172,167
159,990
1,125
11,052
162,881
151,628
1,062
10,191
9,286
8,362
63
861
169,256
156,753
1,158
11,345
160,002
148,458
1,083
10,461
9,254
8,295
75
884
N um ber of banks included ......................................
14,621
13,494
1,127
14,633
13,526
1,107
14,655
13,550
1,105
ALL
COMMERCIAL
INSURED
COMMERCIAL
NONINSURED
COMMERCIAL
ALL
COMMERCIAL
INSURED
COMMERCIAL
NONINSURED
COMMERCIAL
ALL
COMMERCIAL
INSURED
COMMERCIAL
NONINSURED
COMMERCIAL
T otal assets....................................... .......................
Cash and amounts due from other b an k s. . . .
United States Government obligations1..........
Other securities......................................................
Loans, discounts, and overdrafts......................
Miscellaneous assets.............................................
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
154,113
32,462
84,965
7,869
27,271
1,546
150,743
31,853
82,998
7,644
26,796
1,452
3,370
609
1,967
225
475
94
150,552
34,366
75,253
8,118
31,283
1,532
147,365
33,704
73,575
7,894
30,740
1,452
3,187
662
1,678
224
543
80
T otal liabilities and capital accounts...........
T otal deposits.........................................................
Miscellaneous liabilities.......................................
T otal capital a ccou nts..........................................
161,182
151,089
1,160
8,933
157,582
147,811
1,099
8,672
3,600
3,278
61
261
154,113
143,709
1,067
9,337
150,743
140,649
1,025
9,069
3,370
3,060
42
268
150,552
139,883
1,108
9,561
147,365
137,030
1,047
9,288
3,187
2,853
61
273
N um ber of banks included......................................
14,079
13,302
777
14,092
13,335
757
14,114
13,359
755
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
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
18,054
747
11,438
1,330
4,357
182
12,138
550
7,662
660
3,132
134
5,916
197
3,776
670
1,225
48
18,704
819
11,779
1,399
4,527
180
12,637
612
7,946
695
3,250
134
6,067
207
3,833
704
1,277
46
T otal liabilities and capital accounts...........
T otal deposits.........................................................
Miscellaneous liabilities.......................................
Total capital accounts.........................................
17,021
15,385
43
1,593
11,424
10,363
26
1,035
5,597
5,022
17
558
18,054
16,281
58
1,715
12,138
10,979
37
1,122
5,916
5,302
21
593
18,704
16,870
50
1,784
12,637
11,428
36
1,173
6,067
5,442
F*14
611
N um ber of banks included......................................
542
192
350
541
191
350
541
191
350
1 Includes both direct and guaranteed obligations.
Back figures— See the following Annual Reports: 1945, pp. 114-115; 1944, pp . 128-129; 1941, pp . 122-125.
BANKS
T otal assets...............................................................
Cash and amounts due from other banks . . . .
United States Government obligations1...........
Other securities......................................................
Loans, discounts, and overdrafts......................
Miscellaneous assets.............................................
OPERATING
172,167
33,209
96,403
9,199
31,628
1,728
OF
9,197
853
5,729
856
1,623
136
LIABILITIES
169,006
34,732
96,093
7,739
28,850
1,592
AND
178,203
35,585
101,822
8,595
30,473
1,728
ASSETS
T otal a ssets...............................................................
Cash and amounts due from other b an k s. . . .
United States Governm ent obligations1..........
Other securities......................................................
Loans, discounts, and overdrafts......................
Miscellaneous assets.............................................
Table 108.
A
ssets
and
L ia b il it ie s
of
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
ates,
1941-1946
(Amounts in millions of dollars)
1942
1941
1945
1944
1943
1946
Asset, liability, or capital account item
T o t a l a s s e t s ............................................................................
L o a n s , d is c o u n t s , a n d o v e r d ra fts (in c lu d in g re d is c o u n t s )..............................................................
June 30
D ec. 31
June 30
D ec. 31
June 30
D ec. 30
June 30
Dec. 31
June 29
Dec. 31
72,984
76,827
78,709
95,459
102,405
112,246
122,647
134,613
143,456
157,582
150,743
147,365
24,998
25,793
24,382
27,593
25,538
27,191
27,190
29,746
29,659
34,303
31,853
33,704
26,279
28,032
32,726
47,344
57,890
64,678
73,228
82,053
89,001
96,066
90,642
81,469
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
82,998
3,975
3,354
315
73,575
4,301
3,295
298
21,047
3,652
2,890
443
25,936
3,494
2,865
431
19,913
21,262
19,923
18,907
17,392
18,844
20,732
21,355
23,379
25,769
26,796
30,740
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
1,452
900
92
460
1,452
902
85
465
1,794
1,067
429
298
1,740
1,060
370
310
T o t a l lia b ilitie s a n d c a p ita l a c c o u n t s ........................
72,984
76,827
78,709
95,459
102,405
112,246
122,647
134,613
143,456
157,582
150,743
147,365
65,617
69,421
71,162
87,820
94,582
104,116
114,180
125,752
134,282
147,811
140,649
137,030
34,331
36,547
39,266
47,128
53,423
58,346
57,364
64,149
65,508
72,606
75,405
79,903
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
31,505
6,361
13,046
5
12,007
2,320
32,761
6,633
3,047
5
12,320
2,361
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
1,025
83
942
1,047
39
1,008
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
9,069
3,070
3,933
2,066
9,288
3,142
4,060
2,086
13,423
13,427
13,403
13,347
13,302
13,274
13,269
13,268
13,282
13,302
13,335
13,359
D e p o s its — t o t a l ................................................................
Demand deposits of individuals, partnerships, and
corporations............................................................
Tim e deposits of individuals, partnerships, and
corporations............................................................
States and political subdivisions................................
United States G overnm ent.........................................
Postal savings.................................................................
Interbank.........................................................................
Certified and officers’ checks, cash letters of credit, etc.
M is c e lla n e o u s lia b ilitie s — t o t a l ................................
Rediscounts and other borrowed m o n e y .................
All other miscellaneous liabilities..............................
C a p ita l a c c o u n t s — t o t a l ...............................................
Capital stock, notes, and debentures...........................
Surplus..............................................................................
U ndivided profits, including all other capital a ccou n ts.
Num ber of banks included...................................................
B ack figures — See the Annual
Report for 1945, p. 116.
CORPORATION
M is c e lla n e o u s assets— t o t a l .......................................
Bank premises owned, furniture and fixtures........
Other real estate— direct and in d irect.....................
All other miscellaneous assets....................................
INSURANCE
19,371
3,551
2,890
467
40,712
3,533
2,680
419
DEPOSIT
S e cu ritie s — t o t a l ..............................................................
United States Governm ent obligations, direct and
guaranteed...............................................................
Obligations of States and political subdivisions.. .
Other bonds, notes, and debentures.........................
Corporate stock s............................................................
Dec. 31
FEDERAL
G a sh , b a la n c e s w it h o t h e r b a n k s, a n d ca s h ite m s
in p ro ce s s o f c o l l e c t i o n .................................................
June 30
Table 109.
P ercentage D
i s t r i b u t io n
A ssets
op
L ia b il it ie s
and
C all D
ates,
1941
of
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 ,
1 9 4 1 -1 9 4 6
1942
1944
1943
1945
1946
Asset, liability, or capital account item
T o t a l a s s e t s ....................................................................................
Dec. 31
June 30
D ec. 31
June 30
D ec. 31
June 30
D ec. 30
June 30
D ec. 31
June 29
Dec. 31
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
24.2
22.2
22.0
20.7
21.8
21.1
22.9
56.6
57.6
59.7
61.0
62.0
61.0
60.1
55.2
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
55.1
2.6
2.2
.2
49.9
2.9
2.2
.2
L o a n s , d is c o u n ts , a n d o v e r d ra fts (in c lu d in g r e
d isc o u n ts) ......................................................................
27.2
27.6
25.3
19.8
17.0
16.8
16.9
15.9
16.3
16.3
17.8
20.9
M is ce lla n e o u s assets— t o t a l ...............................................
Bank premises owned, furniture and fixtures.................
Other real estate— direct and indirect.............................
All other miscellaneous assets.............................................
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
1.0
.6
.1
.3
1.0
.6
.1
.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%
89.9
90.4
90.4
92.0
92.3
92.8
93.1
93.5
93.6
93.8
93.3
93.0
47.1
47.6
49.8
49.3
52.1
52.1
46.7
47.6
45.7
46.1
50.0
54.2
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
20.9
4.2
8.7
22.2
4.5
2.1
11.7
1.3
10.4
1.1
9.0
1.3
9.0
1.0
8.6
.9
8.8
1.6
8.0
1.5
8.4
1.6
M is ce lla n e o u s lia b ilitie s — t o t a l ........................................
Rediscounts and other borrowed m o n e y .........................
All other miscellaneous liabilities......................................
.8
.7
.8
.6
.6
.6
.7
.8
.6
.6
.6
.6
.1
.5
.6
.1
.5
.6
.1
.5
.7
.1
.6
.7
.1
.6
.7
.8
C a p ita l a c c o u n t s — t o t a l .......................................................
Capital stock, notes, and debentures...............................
Surplus......................................................................................
U ndivided profits, including all other capital accounts.
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
6.0
2.0
2.6
1.4
6.3
2.1
2.8
1.4
13,423
13,427
13,403
13,347
13,302
13,274
13,269
13,268
13,282
13,302
13,335
13,359
T o t a l lia b ilitie s a n d c a p ita l a c c o u n t s ................................
D e p o s its — t o t a l ........................................................................
Demand deposits of individuals, partnerships, and
corporations....................................................................
Tim e deposits of individuals, partnerships, and
corporations....................................................................
States and political subdivisions........................................
United States G overnm ent.................................................
Postal savings..........................................................................
Interbank.................................................................................
Certified and officers’ checks, cash letters of credit, etc.
Num ber of banks included...........................................................
Back figures— See the following Annual Reports: 1945, p. 117; 1944, p . 130.
9.5
1.5*
.3
.7
BANKS
24.9
49.6
OPERATING
28.9
41.6
OF
31.0
36.5
LIABILITIES
33.6
36.0
AND
34.3
S e cu ritie s — t o t a l ......................................................................
United States Governm ent obligations, direct and
guaranteed.......................................................................
Obligations of States and political subdivisions.............
Other bonds, notes, and debentures.................................
Corporate stock s....................................................................
ASSETS
G ash, b a la n c e s w ith o t h e r b a n k s, a n d ca s h ite m s
in p ro ce s s o f c o l l e c t i o n ............................................
June 30
Table 110.
A ssets
and
L ia b il it ie s
of
A l l 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 , 1946
^
o
BANKS GROUPED BY DISTRICT AND STATE
(Amounts in millions of dollars)
Assets
Deposits
Cash and U. S. Govern
Loans, dis
Other
due from
ment obli
counts, and
securities ov e rd ra fts
banks
gations
Miscel
laneous
assets
T otal
Business
and
personal1
Govern
ment2
Inter
bank3
Miscel
laneous
liabilities
Total
capital
accounts
87,032
9,517
35,810
1,712
169,256
134,023
10,058
12,672
1,158
11,345
35,029
86,536
9,477
35,647
1,678
168,367
133,403
9,863
12,659
1,134
11,308
Possessions........................
39
156
496
40
163
34
889
620
195
13
24
37
877
1,227
1,697
1,067
972
1,500
1,485
1,526
1,105
1,603
1,075
521
1,768
8,914
3,760
2,026
1,559
2,371
2,264
3,310
1,044
1,680
2,584
3,905
7,616
26,874
9,845
4,476
2,600
3,844
6,138
7,173
2,565
2,893
3,338
9,670
955
2,348
1,667
408
359
445
599
785
3,083
11,731
3,612
1,675
1,186
1,932
1,913
2,637
754
939
1,878
4,470
156
615
231
95
53
61
78
82
29
32
89
191
13,578
50,482
19,115
8,680
5,757
8,653
10,992
13,987
4,592
5,836
8,290
19,294
11,389
39,071
15,504
6,883
4,369
6,266
9,230
10,788
3,564
4,435
6,159
16,365
492
2,009
1,050
637
598
618
725
956
379
552
731
1,311
410
4,682
909
587
466
1,280
422
1,427
395
535
946
613
86
583
107
48
25
30
31
57
16
15
34
126
4,137
1,545
525
299
459
584
759
238
299
420
879
A labam a................................
A rizon a ...................................
Arkansas................................
C alifornia...............................
C o lora d o................................
219
347
90
265
2,719
334
582
195
379
6,854
577
99
261
109
126
3,333
190
12
4
4
149
6
1,301
410
830
13,828
1,149
1,010
343
663
11,800
947
139
46
65
856
49
76
4
60
430
95
6
2
56
773
42
C on n ecticu t..........................
D elaw are................................
District of C olum bia...........
F lorida....................................
G eorgia...................................
186
41
393
99
276
479
519
1,672
316
580
950
744
228
89
42
96
62
564
99
175
293
483
39
6
18
18
17
2,896
609
1,091
1,836
1,825
2,505
487
940
1,393
1,357
80
57
32
41
4
49
137
FDIC District
District
D istrict
D istrict
District
District
D istrict
D istrict
District
District
District
D istrict
District
1 ..............................
2 ...........................
3 .............................
4 .............................
5 .............................
6 .............................
7 .............................
8 ...........................
9 .............................
10...........................
11...........................
12.........................
200
292
401
1,058
1,201
State
10
226
192
144
20
179
371
12
210
156
202
i
106
3
12
3
6
5
12
70
15
41
636
55
258
58
64
91
98
C O R P O R A T IO N
35,18$
14,616
INSURANCE
14,655
United States...................
DEPOSIT
United States and pos
sessions ..............................
N um ber
of banks
FEDERAL
District and State
Liabilities and capital accounts
100
47
869
490
657
612
2,764
701
546
445
K e n tu ck y ...........
Louisiana............
M a in e ..................
M arylan d ...........
M assachusetts. .
386
155
96
178
381
407
480
97
368
1,032
M ichigan.............
M innesota...........
M ississippi.........
M issouri..............
M ontana.............
439
676
203
594
N ebraska............
N e v a d a ...............
N ew Hampshire.
N ew Jersey.........
N ew M e x ic o .. . .
409
106
367
44
N ew Y o r k ...........
N orth C arolin a..
N orth D a k o ta . . ,
O h io.....................
O klahom a...........
802
226
150
677
383
271
5,940
1,694
1,233
454
11,642
3,050
2,345
1,612
387
8,935
2,480
1,853
1,219
43
727
271
229
208
7
1,283
130
144
103
1
55
7
2
2
16
642
162
117
80
788
704
454
1,250
4,357
62
138
59
97
472
342
291
150
335
1,915
9
19
5
23
86
1,608
1,632
765
2,073
7,862
1,251
1,173
658
1,708
6,485
112
171
26
100
290
143
203
9
111
338
6
10
5
7
54
96
75
67
147
695
963
666
214
1,156
148
2,710
1,596
324
1,850
327
286
143
939
583
149
994
61
36
21
6
29
4,934
3,009
795
4,220
554
4,193
2,287
609
2,906
448
303
203
93
293
52
163
335
51
787
31
18
13
2
15
1
257
171
40
219
22
370
31
805
85
695
95
303
2,965
117
65
66
1,333
172
581
5,188
282
1,019
143
498
4,427
227
77
19
18
343
33
168
1
8
46
11
6
2
1
21
63
7
56
351
11
7,953
518
114
1,564
456
23,454
916
373
3,785
669
1,793
29
149
169
313
2,196
140
208
116
746
6,060
676
348
269
T ennessee...........
T exa s...................
U ta h .....................
V e rm on t..............
V irginia...............
294
866
59
79
315
543
1,929
141
40
448
W ashington........
W est V irgin ia .. .
W iscon sin...........
W yom in g............
124
179
556
55
502
208
600
75
O regon .................
Pennsylvania. . .
R hode Island
South C arolin a..
South D a k ota . . .
P ossession s
A la sk a .................
H aw aii...................
Puerto Rico
Virgin Islands . .
110
8
1,020
102
191
15
196
36
137
905
68
3
7
2
4
68
1
10,648
399
42
1,565
265
512
19
2
65
10
44,360
1,964
552
7,423
1,501
34,000
1,412
434
6,106
1,055
1,487
212
77
550
197
4,622
228
16
298
156
536
16
1
35
4
3,715
96
24
434
89
81
1,223
97
37
269
2,047
185
15
166
17
4
3
1,424
11,692
1,115
708
477
1,209
9,398
931
578
395
109
500
68
74
47
37
611
12
24
13
5
72
12
2
1
64
1,111
92
30
21
827
2,322
284
154
884
136
240
17
28
80
470
1,410
139
132
482
19
65
3
5
22
1,995
5,966
584
359
1,916
1,446
4,416
456
312
1,501
148
481
50
10
141
290
728
47
2
143
8
22
2
2
9
103
319
29
33
122
1,063
498
1,734
119
151
40
168
9
537
173
484
37
15
9
22
1
2,268
928
3,008
241
1,907
744
2,557
195
161
78
151
21
88
32
129
13
9
8
6
103
66
165
12
29
328
137
1
18
21
1
4
29
66
498
321
4
57
406
154
3
4
69
121
1
1
2
10
1
23
4
20
13
2
8
71
445
11
112
21
444
101
21
111
i
Demand and time deposits of individuals, partnerships, and corporations, certified and officers’ checks, cash letters of credit, etc., and unclassified deposits of $65,451,000
In noninsured commercial banks.
* Deposits of the United States Government; and deposits of States and political subdivisions.
* Interbank deposits; and postal savings deposits.
Back figures— See the Annual Report for 1945, pp. 118-119.
>
CO
CD
fei
CD
>
e
BANKS
2
70
20
12
8
OPERATING
72
2,209
490
428
251
OF
659
145
126
75
LIABILITIES
I d a h o ...................
Illin ois.................
Ind ia n a...............
I o w a .....................
Kansas.................
00
E x a m in e r s ’ E v a l u a t io n
of
In sured
C o m m e r c ia l B a n k s
Table 111. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1939-1946
Table 112. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1946
Banks grouped according to amount of deposits
Table 113. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1946
Banks grouped by district and State
Evaluation of Liabilities and Capital
Evaluation of Assets
Adjusted liabilities include all liabilities shown on the books and
such others as have been determined by the examiners.
Book value of assets is the net value, after deduction of valuation
and premium allowances, at which the assets are carried on the books
of the banks at the time of examination.
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.
INSURED
Assets not on the books represent the determinable sound value
of assets which are not included in the bank’s statement of assets or
are carried at nominal values.
BANKS
Examiners’ deductions from total assets represent the difference
between the appraised value and book value of assets shown on the
books.
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.
COMMERCIAL
Appraised value of total assets represents the value of all assets as
determined by examiners and is segregated into two groups: (1) not
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.
OF
Examiners’ deductions (net) from total assets in Table 113 is
the difference between examiners’ deductions and the determinable
sound values of assets not shown on the books.
E X A M I N E R S 7 EVALUATION
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 1946, include 12,461 insured commercial banks operating
at the close of the year and 32 banks which ceased operations or were
taken over by other banks during the year. Figures for 901 insured
banks operating at the close of the year were not included in the tabula
tions: 8 because they were not engaged in deposit banking, and 893
because reports of examination were, for various reasons, not available
for tabulation. For 408 banks the figures are derived from reports of
examination made in the last three months of 1945.
Table 111.
Exam
in e r s ’
A
p p r a is a l
of
A
ssets,
L ia b il it ie s ,
and
C a p it a l
of
I n s u r e d C o m m e r c ia l B a n k s E x a m in e d
in
1939-1946
(Amounts in thousands of dollars)
Asset, liability, or capital account item
1940
1941
1942
1943
1944
1945
1946
65,184,983
71,697,320
80,449,956
102,021,738
118,843,675
138,032,336
147,828,793
38,996
340,697
57,952,724
51+,982,653
2,970,071
36,777
255,876
64,965,884
62,1+13,390
2,552,1+91+
19,851
174,037
71,543,134
69,512,512
2,030,622
20,089
145,741
80,324,304
78,610,078
1,711+,226
26,346
97,144
101,950,940
100,690,81+3
1,260,097
20,897
54,193
118,810,379
117,981+,985
825,391+
20,283
29,354
138,023,265
137,m , 382
618,883
16,017
25,095
147,819,715
11+7,293,671
526,01+1+
51,781,865
73,529,826
94,882,516
111,242,503
129,849,891
139,081,529
64,218,740
793,772
6.084
65,018,596
72,755,007
774,819
7.362
73,537,188
94,087,113
795,403
4.491
94,887,007
110,177,295
1,065,208
7.563
111,250,066
128,263,849
1,586,042
3.731
129,853,622
137,221,546
1,859,983
4.719
139,086,248
6,472,560
6,557,835
6,684,808
6,920,130
7,139,222
7,601,172
8,182,445
8,747,264
38,996
340,697
10.436
6,160,423
36,777
255,876
12.927
6,325,809
19,851
174,037
6.084
6,524,538
20,089
145,741
7.362
6,787,116
26,346
97,144
4.491
7,063,933
20,897
54,193
7.563
7,560,313
20,283
29,354
3.731
8,169,643
16,017
25,095
4.719
8,733,467
A d ju s t e d c a p ita l a c c o u n t s p e r $100 ofAppraised value of total assets...............
B ook capital.................................................
$10.63
95.18
9.74
6.46
$9.12
97.60
$8.45
98.08
$6.93
98.95
$6.36
99.46
$5.92
99.84
.84
II .91
S u b sta n d a rd assets p er $100 o f —
Appraised value of total assets...............
Adjusted capital a ccou nts........................
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
6.02
N um ber of ban ks.............................................
13,505
13,437
13,308
13,303
13,207
12,983
12,473
12,493
T o t a l c a p ita l a c c o u n t s — b o o k v a lu e
Assets not on the b o o k s ........................
Examiners’ deductions from total
Liabilities not on the b ook s......................
A djusted capital a ccou n ts........................
.36
CORPORATION
65,012,512
57,919,547
707,601
12.927
58,640,075
INSURANCE
58,627,148
50,976,656
805,209
10.436
51,792,301
T o t a l lia b ilitie s — b o o k v a lu e ..............
T otal deposits..........................................
Other liabilities— book value...............
Liabilities not on the b ook s.................
A djusted total liabilities.......................
DEPOSIT
58,254,425
FEDERAL
T o t a l a ssets— b o o k v a lu e ......................
Assets not on the b o o k s ........................
Examiners’ d eductions..........................
Appraised value.......................................
Not criticized.........................................
Substandard..........................................
1939
Table 112.
E x a m in e r s ’ A
p p r a is a l
A sse ts, L ia b il it ie s ,
of
and
C a p it a l
of
I n s u r e d C o m m e r c ia l B a n k s E x a m i n e d
in
1946
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Asset, liability, or capital account item
All
banks
U $500,000
or less
$500,000
to
$1,000,000
$ 1,000,000
to
$2 ,000,000
$2 ,000,000
to
$5,000,000
$5,000,000
to
$ 10 ,000,000
$ 10,000,000
to
$50,000,000
$50,000,000
More than
to
$100,000,000
$ 100 , 000,000
(Amounts in thousands of dollars)
4,957,277
2,675
1,472
4,958,480
1+,931,01+0
27,U 0
12,791,187
3,909
3,449
12,791,647
12,738,655
57,992
12,216,384
2,289
2,812
12,215,861
12,161,051
51+, 810
25,660,584
4,128
5,179
25,659,533
25,552,227
107,306
10,207,272
393
1,071
10,206,594
10,160,181
1+6,1+13
80,271,959
1,496
10,443
80,263,012
80,01+2,659
220,353
T otal liabilities— book value...................
T otal deposits...............................................
Other liabilities— book value...................
Liabilities not on the b ook s.....................
A djusted total liabilities............................
139,081,529
137,221,546
1,859,983
4,719
139,086,248
205,705
204,767
938
32
205,737
1,393,251
1,390,511
2,740
142
1,393,393
4,656,546
4,646,934
9,612
919
4,656,758
12,045,080
12,017,142
27,938
431
12,045,511
11,513,121
11,475,553
37,568
305
11,513,426
24,223,226
24,093,905
129,321
466
24,223,692
9,676,922
9,599,428
77,494
1,715
9,678,637
75^367,678
73,793,306
1,574,372
1,416
75,369,094
Total capital accounts— book v a lu e ...
Assets not on the b o o k s ............................
Examiners’ deductions from total assets
Liabilities not on the b ook s......................
Adjusted capital accou n ts........................
8,747,264
16,017
25,095
4,719
8,733,467
21,592
156
128
32
21,588
103,582
971
541
142
103,870
300,731
2,675
1,472
212
301,722
746,107
3,909
3,449
431
746,136
703,263
2,289
2,812
305
702,435
1,437,358
4,128
5,179
466
1,435,841
530,350
393
1,071
1,715
527,957
4,904,281
1,496
10,443
1,416
4,893,918
Adjusted capital accounts per $100 ofAppraised value of total assets...............
B ook capital.................................................
$5.91
99.84
$9.50
99.98
$6.94
100.28
$6.08
100.33
$5.83
100.00
$5.75
99.88
$5.60
99.89
$5.17
99.55
$6.10
99.79
Substandard assets per $100 of—
Appraised value of total assets...............
Adjusted capital
.36
6.02
.93
9.74
.64
9.27
.55
9.09
.45
7.77
.45
7.80
.42
7.47
.45
8.79
.27
4.50
12,493
538
1,826
3,159
3,812
1,641
1,204
135
178
Num ber of b a n k s..
Back figures— See the following Annual Reports: 1945, pp. 124-125, and earlier reports.
BANKS
1,496,833
971
541
1,497,263
1,1+87,636
9,627
COMMERCIAL
227,297
156
128
227,325
225,222
2,108
INSURED
147,828,793
16,017
25,095
147,819,715
11+7,293,671
526,01+1+
OF
T otal assets— book value..........................
Assets not on the b o o k s ............................
Examiners’ deductions..............................
Appraised value...........................................
Not criticized.............................................
Substandard...............................................
E X A M IN E R S ’ EVALUATION
Banks with deposits of—
00
CJt
Table 113*
E x a m in e r s ’ A p p r a is a l
of
A
ssets,
L ia b il it ie s ,
and
C a p it a l
of
I n s u r e d C o m m e r c ia l B a n k s E x a m i n e d
in
1946
BANKS GROUPED BY FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT AND STATE
(Amounts in thousands of dollars)
Total liabilities
Total assets
Num ber
of
banks
Appraised value
B ook
value
Exam iners’
ded u ction s
(net)1
Total
N ot
criticized
Sub
standard
Book
value
Adjusted
value
B ook
value
Adjusted
value
Substandard assets
per $100 of—
Adjusted
capital
accounts
per $100 of Appraised
Adjusted
appraised
value of
capital
value of
total
accounts
total
assets
assets
12,493 147,828,793
9,078 147,819,715 147,293,671
526,044 139,081,529 139,086,248
8,747,264
8,733,467
$5.91
$.36
$6.02
United S tates___
12,488 147,788,745
9,054 147,779,691 147,253,788
525,903 139,043,296 139,048,015
8,745,449
8,731,676
5.91
.36
6.02
24
40,024
39,883
141
38,233
38,233
1,815
1,791
4.47
.35
7.87
1 ..............
22.............
3 ..............
4 ..............
5 ..............
6 ..............
7 ..............
8 ..............
9 ..............
10 ............
1 1 ............
123...........
461
1,010
1,627
901
649
1,418
1,364
1,358
949
1,365
943
448
7,547,754
40,287,844
17,564,927
7,779,845
5,286,191
8,748,568
10,638,204
13,899,631
4,060,016
5,641,062
8,071,951
18,302,800
901
8,138
2,914
12
398
388
898
889
69U
1,198
215
567
7,546,853
40,279,706
17,562,013
7,779,833
5,285,793
8,748,956
10,639,102
13,900,520
4,060,710
5,642,260
8,071,736
18,302,233
7,517,669
40,060,096
17,489,804
7,757,588
5,251,328
8,710,332
10,618,966
13,875,694
4,050,943
5,627,083
8,056,137
18,278,031
29,184
219,610
72,209
22,245
34,465
38,624
20,136
24,826
9,767
15,177
15,599
24,202
7,006,701
37,356,619
16,311,955
7,350,316
5,034,395
8,316,131
10,104,236
13,191,203
3,858,906
5,366,899
7,687,186
17,496,982
7,006,715
37,359,188
16,312,171
7,350,404
5,034,446
8,316,289
10,104,299
13,191,236
3,858,961
5,367,404
7,687,231
17,497,904
541,053
2,931,225
1,252,972
429,529
251,796
432,437
533,968
708,428
201,110
274,163
384,765
805,818
540,138
2,920,518
1,249,842
429,429
251,347
432,667
534,803
709,284
201,749
274,856
384,505
804,329
7.16
7.25
7.12
5.52
4.76
4.95
5.03
5.10
4.97
4.87
4,76
4.39
.39
.55
.41
.29
.65
.44
.19
.18
.24
.27
.19
.13
5.40
7.52
5.78
5.18
13.71
8.93
3.77
3.50
4.84
5.52
4.06
3.01
State
A labam a...............
A rizon a .................
A rk a n sas,.............
C alifornia.............
C o lo ra d o...............
167
10
213
175
134
1,223,481
394,465
804,674
13,629,340
1,135,974
107
58
62
179
1,1 ko
1,223,374
394,407
804,736
13,629,161
1,137,114
1,219,152
393,206
803,342
13,610,813
1,134,483
4,222
1,201
1,394
18,348
2,631
1,160,502
381,318
765,995
13,015,918
1,083,919
1,160,514
381,319
766,011
13,016,828
1,083,960
62,979
13,147
38,679
613,422
52,055
62,860
13,088
38,725
612,333
53,154
5.14
3.32
4.81
4.49
4.67
.35
.30
.17
.13
.23
6.72
9 .18
3.60
3.00
4.95
C on n ecticu t.........
D elaw are...............
D ist. of Columbia
Florida...................
G eorgia..................
86
27
21
125
196
1,301,048
390,519
1,128,183
1,731,246
1,658,792
187
77
224
401
71
1,300,861
390,442
1,127,959
1,730,845
1,658,863
1,295,698
385,481
1,123,840
1,715,734
1,650,916
5,163
4,961
4,119
15,111
7,947
1,211,990
352,728
1,065,400
1,653,672
1,580,502
1,211,992
352,738
1,065,400
1,653,674
1,580,529
89,058
37,791
62,783
77,574
78,290
88,869
37,704
62,559
77,171
78,334
6.83
9.66
5.55
4.46
4.72
.40
1.27
.37
.87
.48
5.81
13.16
6.58
19.58
10.15
FDIC District
District
D istrict
D istrict
D istrict
D istrict
D istrict
District
District
District
D istrict
District
District
CORPORATION
40,048
INSURANCE
5
Possessions...........
DEPOSIT
United States and
possessions.........
FEDERAL
F D IC District
and State
Total capital
accounts
399,539
11,859,188
2,969,072
2,040,443
1,422,606
32
173
190
716
30
399,571
11,859,361
2,969,262
2,041,159
1,422,576
399,480
11,843,664
2,960,728
2,032,030
1,419,055
91
15,697
8,534
9,129
3,521
384,785
11,250,249
2,818,893
1,940,954
1,356,541
384,785
11,250,264
2,818,919
1,940,972
1,356,654
14,754
608,939
150,179
99,489
66,065
14,786
609,097
150,343
100,187
65,922
3.70
5.14
5.06
4.91
4.63
.02
.13
.29
.45
.25
.62
2.58
5.68
9.11
5.34
K e n tu ck y .............
Louisiana..............
M a in e....................
M a ry lan d .............
Massachusetts. . .
363
132
55
163
180
1,550,966
1,609,066
493,813
1,643,120
4,548,742
130
233
81
U5
381
1,551,096
1,609,299
493,732
1,643,165
4,548,361
1,546,440
1,605,911
490,934
1,639,984
4,537,505
4,656
3,388
2,798
3,181
10,856
1,459,747
1,536,889
458,915
1,550,229
4,223,789
1,459,776
1,536,898
458,917
1,550,234
4,223,797
91,219
72,177
34,898
92,891
324,953
91,320
72,401
34,815
92,931
324,564
5.89
4.50
7.05
5.66
7.14
.30
.21
.57
.19
.24
5.10
4.68
8.04
3.42
3.34
M ichigan...............
M innesota.............
M ississippi............
M issouri................
M on tana...............
386
552
161
554
110
4,798,431
2,682,985
672,672
4,355,246
526,358
330
521
39
159
6
4,798,761
2,683,506
672,711
4,355,405
526,364
4,793,270
2,677,345
665,526
4,333,857
524,617
5,491
6,161
7,185
21,548
1,747
4,567,950
2,538,700
639,719
4,147,731
505,101
4,567,968
2,538,723
639,729
4,147,766
505,128
230,481
144,285
32,953
207,515
21,257
230,793
144,783
32,982
207,639
21,236
4.81
5.40
4.90
4.77
4.03
.11
.23
1.07
.49
.33
2.38
4.26
21.78
10.38
8.23
N ebraska...............
N ew H am pshire..
N ew Jersey...........
N ew M e x ico .........
355
7
56
331
39
1,289,009
165,844
240,976
4,469,338
270,470
329
9
32
792
133
1,289,338
165,835
240,944
4,468,546
270,337
1,286,427
165,267
239,810
4,421,115
268,882
2,911
568
1,134
47,431
1,455
1,230,404
159,426
220,750
4,199,806
261,158
1,230,532
159,426
220,750
4,200,063
261,160
58,605
6,418
20,226
269,532
9,312
58,806
6,409
20,194
268,483
9,177
4.56
3.86
8.38
6.01
3.39
.23
.34
.47
1.06
.54
4.95
8.86
5.62
17.67
15.85
N ew Y o r k .............
N orth C arolin a...
N orth D a k ota ----O h io........................
O klahom a.............
651
171
136
659
372
35,423,604
1,605,052
426,896
7,358,519
1,574,526
7,269
63
56
209
185
35,416,335
1,605,115
426,952
7,358,728
1,574,341
35,249,209
1,599,864
426,126
7,350,691
1,569,297
167,126
5,251
826
8,037
5,044
32,800,021
1,528,147
410,248
6,953,781
1,488,662
32,802,323
1,528,202
410,251
6,953,826
1,488,775
2,623,583
76,905
16,648
404,738
85,864
2,614,012
76,913
16,701
404,902
85,566
7.38
4.79
3.91
5.50
5.44
.47
.33
.19
.11
.32
6.39
6.83
4.95
1.98
5.89
O regon...................
Pennsylvania. . . .
R hode Isla n d . . . .
South C a rolin a.. .
South D a k ota -----
62
968
13
91
151
1,397,337
10,206,408
695,436
601,850
423,777
30
3,123
27
108
111
1,397,307
10,203,285
695,409
601,958
423,888
1,396,055
10,139,113
691,689
600,893
422,855
1,252
64,172
3,720
1,065
1,033
1,339,456
9,358,174
648,453
576,832
404,857
1,339,459
9,358,345
648,454
576,844
404,859
57,881
848,234
46,983
25,018
18,920
57,848
844,940
46,955
25,114
19,029
4.14
8.28
6.75
4.17
4.49
.09
.63
.53
.18
.24
2.16
7.59
7.92
4.24
5.43
Tennessee.............
T exas......................
U ta h .......................
V e rm o n t................
V irginia.................
288
762
53
71
294
2,037,682
5,797,950
538,565
267,739
1,878,370
37
257
22
193
27
2,037,719
5,797,693
538,543
267,546
1,878,397
2,026,693
5,788,138
538,173
262,033
1,872,123
11,026
9,555
370
5,513
6,274
1,942,658
5,507,821
514,198
242,804
1,765,633
1,942,736
5,507,854
514,200
242,805
1,765,642
95,024
290,129
24,367
24,935
112,737
94,983
289,839
24,343
24,741
112,755
4.66
5.00
4.52
9.25
6.00
.54
.16
.07
2.06
.33
11.61
3.30
1.52
22.28
5.56
COMMERCIAL
W ashington..........
W est V irginia----W iscon sin.............
W yom in g..............
104
161
512
55
2,136,510
923,270
2,870,701
218,947
335
31
378
56
2,136,175
923,239
2,871,079
218,891
2,132,651
920,884
2,864,968
217,821
3,524
2,355
6,111
1,070
2,049,030
864,075
2,717,393
207,373
2,049,037
864,082
2,717,412
207,483
87,480
59,195
153,308
11,574
87,138
59,157
153,667
11,408
4.08
6.41
5.35
5.21
.16
.26
.21
.49
4.04
3.98
3.98
9.38
BANKS
OF
INSURED
137
EVALUATION
1 Examiners’ deductions (net) is net of assets not on the books. Figures in italics represent excess of appraised value of assets over book value.
2 Includes 1 national bank in the Virgin Islands, not a member of the Federal Reserve System.
3 Includes 3 national banks in Alaska and 1 State bank in Hawaii, not members o f the Federal Reserve System .
EXAMINERS*
K ansas...................
43
836
466
522
449
Ind ia n a .................
E a r n in g s , E x p e n s e s ,
and
D
iv id e n d s
of
Insured B an k s
Table 114.
Earnings, expenses, and dividends of insured commercial banks, 1934, 1941-1946
Table 115.
Ratios of earnings, expenses, and dividends of insured commercial banks, 1934,
1941-1946
Table 116.
Earnings, expenses, and dividends of insured commercial banks, 1946
B y class of bank
Table 117.
Ratios of earnings, expenses, and dividends of insured commercial banks, 1946
By class of bank
Table 118.
Earnings, expenses, and dividends of insured
throughout 1946
Banks grouped according to amount of deposits
Table 119.
Ratios of earnings, expenses, and dividends of insured commercial banks operating
throughout 1946
Banks grouped according to amount of deposits
Table 120.
Amounts and ratios of earnings, expenses, and dividends of insured commercial
banks, 1946
By State
Table 121.
Earnings, expenses, dividends, and assets and liabilities, of insured mutual savings
banks, 1934, 1941-1946
Table 122.
Ratios of earnings, expenses, and dividends of insured mutual savings banks, 1934,
1941-1946
commercial banks
operating
Reports of earnings, expenses, and dividends are submitted to the
Federal supervisory agencies on either a cash or an accrual basis.
at the end of 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.
DIVIDENDS
OF
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.
AND
Assets and liabilities shown in Table 118, and utilized for computation
of ratios shown in Table 119, are for the identical banks to which the
Sources of data:
EXPENSES,
Averages of assets and liabilities shown in Tables 114-117 and 120122 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.
Table 120 presents for the first time the amount of earnings, expenses,
and dividends, and selected ratios of insured commercial banks, by
State.
EARNINGS,
Earnings data are included for all insured banks operating at the
end of the respective years, unless indicated otherwise. In addition,
appropriate adjustments have been made for banks members of the
Federal Reserve System in operation during part of the year but not
earnings data pertain. For national banks and State banks members
of the Federal Reserve System, assets and liabilities are as of December
31, 1946, and for other banks, are averages of beginning, middle, and
end of the year.
co
CO
o
T able 114.
E
a r n in g s ,
E
xpen ses, and
D
iv id e n d s
of
Insured C
o m m e r c ia l
B
an ks,
1934, 1941-1946
(Amounts in thousands of dollars)
1934
1,790,692
1943
1,959,481
1944
2,482,278
2,862,875
1,132,977
167,198
707,738
18,860
109,789
1,218,517
176,620
936,554
14,564
124,696
550,092
509,175
610,298
861,412
690,601
0)
34,609
847,832
804,717
12,084
84,309
692,305
13,513
95,332
W
1946
2,214,905
1,090,253 f
1
680,708
17,320
107,375
I
1945
INSURANCE
J
1,729,901
1942
DEPOSIT
1,518,449
Current 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, an<
charges............................................................
Trust department..................................................
Other current operating earnings........................
1941
139,698
0)
233,196
55,148
100,652
123,484
67,533
104,710
124,676
78,485
112,486
128,278
90,617
120,317
134,782
97,995
140,340
153,589
21,114,167
21,215,766
1,222,157
1,256,025
1,356,680
1,522,778
1,762,634
402,038
211,311
302,627
219,388
333,171
225,142
356,958
240,354
386,346
266,018
424,881
309,220
521,709
302,603
7,324
274,043
347,747
280,412
13,151
190,256
374
2103,371
364,414
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
186,773
1,112
97,307
41,845
390,036
14,610
233,321
2,448
98,683
40,329
442,488
16,936
268,624
2,364
96,314
40,850
506,617
Net current operating
2404,282
2514,135
568,535
703,456
858,225
959,500
1,100,241
Recoveries and profits— to ta l...............
Recoveries on securities........................
Profits on securities sold or redeemed.
Recoveries on loans...............................
All other..................................................
292,027
457,994
4148,345
52,874
32,814
324,453
222,775
353,015
361,726
73,589
145,189
70,947
34,728
55,947
66,457
68,546
31,825
91,891
103,143
85,664
72,317
92,778
129,834
84,224
54,890
509,329
122,364
266,764
67,014
53,187
408,608
59,515
208,700
74,499
65,894
Losses and charge-offs— to ta l..............
1,033,278
333,966
271,118
120,614
80,647
69,857
265,881
110,439
70,090
85,352
283,175
161,073
103,868
69,025
290,645
116,383
75,223
99,039
264,122
391,547
552,857
88,874
132,870
55,901
75,351
132,254
71,253
79,668
Salaries— officers...................................................
Salaries and wages—employees.
Fees paid to directors and
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 €
On securities...........................................
On loans..................................................
All other..................................................
CORPORATION
41,139
78,190
123,818
Current operating expenses— to ta l.....................
FEDERAL
Earnings or expense item
2-336,969
2504,622
520,192
765,826
954,070
1,204,707
1,225,674
T a xes o n n e t in c o m e — t o t a l ...................................................................................
53,000
0)
C1)
550,000
(l)
0)
79,541
0)
C1)
127,865
114,316
13,549
202,821
187,032
15,789
298,795
277,538
21,257
323,328
301,048
22,280
N e t p r o fits a fte r ta x e s ...............................................................................................
905,912
902,346
253,193
274,438
298,983
17,796
169,973
17,563
235,833
14,523
213,085
14,324
219,166
13,645
239,548
11,769
262,669
8,345
290,638
N e t a d d it io n s t o c a p ita l fr o m p r o f i t s ................................................................
-527,738
201,226
213,043
404,471
498,056
631,474
603,363
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
151,896,770
33,286,775
81,835,381
7,556,923
27,768,296
1,449,395
44,941,293
37,424,125
21*,828,179
12,600,91*6
1,319,221
6,197,947
73,510,130
66,168,797
50,327,1*62
15,81*1,835
578,370
6,762,963
83,666,451
76,134,514
60,21*5,967
15,888,51*7
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
93,267,111*
21,1*15,276
768,280
7,718,193
145,217,438
135,948,387
108,968,917
26,979,1*70
934,381
8,334,670
151,896,770
141,829,678
109,890,600
31,939,078
1,057,079
9,010,013
57,067
211,115
54,925
216,473
55,309
225,647
56,494
229,377
59,119
245,275
62,697
271,395
13,427
13,347
13,274
13,268
13,302
13,359
A vera g e a ssets a n d lia b ilitie s 6
A ssets— t o t a l .................................................................................................................
Cash and due from b an k s........................................................................................
U . S. Governm ent obligations................................................................................
Loans and d iscounts.................................................................................................
A ll other assets............................................................................................................
L ia b ilitie s a n d c a p ita l— t o t a l ................................................................................
T otal deposits..............................................................................................................
Time and savings deposits.....................................................................................
Borrowings and other liabilities.............................................................................
N um ber of active officers, Decem ber 3 1 .................................... .............................
N um ber of other em ployees, Decem ber 3 1 .............................................................
0)
C1)
14,137
BANKS
1 N o t available separately.
2 Differs from reported figures as a result of the estimate made of taxes on net incom e. See footnote 5.
3 In 1934; and for banks not submitting reports to F D IC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
In 1941 for banks submitting reports to F D IC , consists of regular depreciation allowances on banking house, furniture and fixtures plus other expenses of occupancy and main
tenance of banking quarters.
.
. .
. .
* 4 Estimated; profits on securities sold were not reported separately from recoveries on securities b y banks not submitting reports to the F D IC .
6 Estim ated; based upon Bureau of Internal Revenue figures of income taxes paid b y national banks for 1934, and paid by all banks and trust companies for 1941. Banks
submitting reports to the F D IC have reported income taxes separately since 1936.
• Asset and liability items are averages of figures reported at beginning, m iddle, and end of year.
7 In 1934 excludes 1 and in 1941, 3 trust companies not engaged in deposit banking, which submit reports to F D IC .
N o t e : Minus ( -) indicates net loss.
Back figures— See the Annual Report for 1941, pp. 158-159.
INSURED
751,249
233,490
OF
637,961
227,608
DIVIDENDS
440,651
253,396
AND
454,622
187,769
EXPENSES,
-339,969
D iv id e n d s a n d in te r e s t o n ca p ita l— t o t a l ..................... ...............................
Dividends declared on preferred stock and interest paid on capital notes
and debentures...................................................................................................
Cash dividends declared on com m on s to ck ........................................................
EARNINGS,
N e t p ro fits b e fo r e in c o m e t a x e s ............................................................................
142
Table 115.
R a t io s
of
E a r n in g s , E x p e n s e s ,
and
Earnings or expense item
iv i d e n d s
1941
1934
$100.00
J
I n s u r e d C o m m e r c ia l B a n k s ,
of
1942
$100.00
$100.00
1943
$100.00
1934, 1941-1946
1944
$100.00
1945
1946
$100.00
45.64
6.74
29.27
4.42
42.56
6.17
33.22
4.36
36.23
29.43
34.08
43.96
45.48
2.28
49.01
45.61
4.71
36.02
4.87
3.08
12.52
3.45
11.70
3.54
10.87
3.65
10.28
3.42
10.27
r
I
2.71
13.30
J
8.08
13.48
1
!70.28
30.47
11.00
15.98
23.72
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
61.57
29.62
9.38
3.36
1.43
17.78
N e t c u r r e n t o p e r a tin g e a r n in g s ..................................................................
126.62
129.72
31.75
35.90
38.75
38.65
38.43
A m o u n ts p er $100 o f t o ta l a ssets3
Current operating earnings— to ta l...................................................................
Current operating expenses— to ta l..................................................................
N et current operating earnings.........................................................................
Recoveries and profits— tota l............................................................................
Losses and charge-offs— to ta l............................................................................
N et profits before income taxes........................................................................
N et profits after income taxes...........................................................................
3.38
12.48
i.90
.65
2.30
1-.75
-.7 6
2.35
11.65
i.70
.44
.45
1.69
.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
1.88
1.16
.72
.27
.18
.81
.59
A m o u n ts per $100 o f t o ta l ca p ita l a c c o u n t s 3
N et current operating earnings.........................................................................
Recoveries and profits— to ta l............................................................................
Losses and charge-offs— to ta l............................................................................
N et profits before income taxes........................................................................
Taxes on net incom e............................................................................................
N et profits after income taxes...........................................................................
Cash dividends declared......................................................................................
N et additions to capital from profits..............................................................
16.52
4.71
16.67
1-5.44
* .05
-5.49
3.03
-8.52
17.60
4.80
4.93
17.47
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
12.21
4.53
3.14
13.60
3.59
10.01
3.32
6.69
CORPORATION
173.38
26.48
19.93
14.88
23.14
18.95
INSURANCE
C u rre n t o p e r a t in g exp en ses— t o t a l ...........................................................
Salaries, wages, and fe e s ................................................................................
Interest on time and savings deposits........................................................
Taxes other than on net incom e...................................................................
Recurring depreciation on banking house, furniture and fixtures.. . .
Other current operating expenses................................................................
DEPOSIT
$100.00
49.22 /
\
31.52
4.85
FEDERAL
A m o u n t s p er $100 o f c u r r e n t o p e r a tin g e a rn in g s:
C u rre n t o p e r a tin g ea rn in g s — t o t a l ...........................................................
Interest and dividends on:
United States Governm ent obligations..................................................
Other securities............................................................................................
Incom e on loans................................................................................................
Service charges on deposit accounts............................................................
Other service charges, commissions, fees, and collection and exchange
charges........................................................................................................
Other current operating earnings.................................................................
D
Assets and liabilities per $100 of total assets3
Assets— to ta l...........................................................................................................
Cash and due from ban k s........................................................................................
U . S. Government obligations................................................................................
Other securities.....................................................................................................
Loans and discounts..................................................................................................
All other assets............................................................................................................
4.27
1.95
3.85
1.52
.12
.93
3.44
1.49
.12
.87
3.09
1.46
.10
.87
3.43
1.56
.11
.84
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
100.00
21.91
53.88
4.98
18.28
.95
Liabilities and capital— to ta l.................................................................................
T otal deposits............................................................................................................
Demand deposits......................................................................................................
Time and savings deposits...................................................................................
Borrowings and other liabilities.............................................................................
T otal capital a ccou n ts..............................................................................................
100.00
83.27
55.23
28.0k
2.94
13.79
100.00
90.01
68.U6
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
17.39
.62
6.27
100.00
93.62
75.Ok
18.58
.64
5.74
100.00
93.37
72.3k
21.03
.70
5.93
Num ber of banks, Decem ber 31®............................................................................
14,137
13,427
13,347
13,274
13,268
13,302
13,359
OF
INSURED
BANKS
DIVIDENDS
1 Differs from reported figures as a result of the estimate made of taxes on net income. See footnote 4.
2 In 1934; and for banks not submitting reports to F D IC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
In 1941 for banks submitting reports to F D IC , consists of regular depreciation allowances on banking house, furniture and fixtures plus other expenses of occupancy and main
tenance of banking quarters.
3 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
4 Estimated; based upon Bureau of Internal Revenue figures of income taxes paid by national banks for 1934, and paid b y all banks and trust companies for 1941. Banks
submitting reports to the F D IC have reported income taxes separately since 1936.
6 N ot available.
6 In 1934 excludes 1 and in 1941, 3 trust companies not engaged in deposit banking, which submit reports to F D IC .
N o t e : Minus (-) indicates net loss.
AND
1.20
4.08
1.69
.14
1.10
(5)
EXPENSES,
4.63
3.17
.14
2.40
EARNINGS,
Special ratios3
Incom e on loans per $100 of lo a n s .............................................................................
Incom e on securities per $100 of securities...........................................................
Service charges per $100 of demand deposits.........................................................
Interest paid per $100 of time and savings deposits............................................
Table 116.
E a r n in g s , E x p e n s e s ,
and
D
iv i d e n d s
of
I n s u r e d C o m m e r c ia l B a n k s ,
1946
BY CLASS OF BANK
Members F . R . System
Earnings or expense item
Total
State
Operating
throughout
the year
Operating
less than
full year1
1,568,151
833,994
460,730
2,836,645
26,230
1,218,517
176,620
936,554
14,564
124,696
698,662
102,412
506,020
7,702
69,103
354,636
45,137
254,548
4,014
30,531
165,219
29,071
175,986
2,848
25,062
1,209,304
173,742
930,914
14,493
124,057
9,213
2,878
5,640
71
639
97,995
140,340
153,589
44,475
50,397
89,380
23,347
80,797
40,984
30,173
9,146
23,225
97,384
134,635
152,116
611
5,705
1,473
Current operating expenses— to ta l........................................................................
Salaries— officers...........................................................................................................
Salaries and wages— em ployees.................................................................................
Fees paid to directors and members of executive, discount, and other
com m ittees.............................................................................................................
Interest on time and savings deposits.....................................................................
Interest and discount on borrowed m o n e y ............................................................
Taxes other than on net incom e...............................................................................
Recurring depreciation on banking house, furniture and fixtures...................
Other current operating expenses.............................................................................
1,762,634
309,220
521,709
947,813
158,207
283,748
520,443
84,177
173,240
294,378
66,836
64,721
1,747,994
306,514
517,461
14,640
2,706
4,248
16,936
268,624
2,364
96,314
40,850
506,617
8,187
143,224
1,101
54,233
23,176
275,937
4,212
68,215
1,074
27,576
10,853
151,096
4,537
57,185
189
14,505
6,821
79,584
16,829
267,126
2,353
95,493
40,642
501,576
107
1,498
11
821
208
5,041
N et current operating earnings..............................................................................
1,100,241
620,338
313,551
166,352
1,088,651
11,590
Recoveries and profits— to ta l....................................................................................
R ecoveries on securities...............................................................................................
Profits on securities sold or redeem ed.....................................................................
R ecoveries on loans.......................................................................................................
All o th e r..........................................................................................................................
408,608
59,515
208,700
74,499
65,894
214,345
33,804
110,266
41,280
28,995
141,444
19,782
72,730
22,461
26,471
52,819
5,929
25,704
10,758
10,428
400,534
58,852
207,430
74,017
60,235
8,074
663
1,270
482
5,659
CORPORATION
2,862,875
INSURANCE
Current operating earnings— to ta l........................................................................
Interest and dividends on:
United States Governm ent obligations...............................................................
Other securities.........................................................................................................
Interest and discount on loa n s..................................................................................
Service charges and other fees on bank’ s lo a n s ....................................................
Service charges on deposit a ccou nts........................................................................
Other service charges, commissions, fees, and collection and exchange
charges.....................................................................................................................
Trust departm ent.........................................................................................................
Other current operating earnings.............................................................................
DEPOSIT
National
N ot
members
F. R.
System
FEDERAL
(Amounts in thousands of dollars)
91,569
40,844
17,007
33,718
36,220
16,805
9,761
9,654
281,935
131,869
70,954
79,112
1,240
385
299
556
N et profits before incom e taxes..............................................................................
1,225,674
679,297
363,426
182,951
1,207,250
18,424
323,328
301,048
22,280
185,451
173,913
11,538
99,575
90,599
8,976
38,302
36,536
1,766
320,366
298,188
22,178
2,962
2,860
102
N et profits after taxes.................................................................................................
902,346
493,846
263,851
144,649
886,884
15,462
Dividends and interest on capital— to ta l...........................................................
Dividends declared on preferred stock and interest paid on capital notes
and debentures...............................................................................................
Cash dividends declared on com m on s to ck ........................................................
298,983
169,741
96,906
32,336
295,451
3,532
8,345
290,638
2,423
167,318
3,450
93,456
2,472
29,864
8,319
287,132
26
3,506
N et additions to capital from profits..................................................................
603,363
324,105
166,945
112,313
591,433
11,930
Average assets and liabilities2
Assets— to ta l...................................................................................................................
Cash and due from b a n k s..........................................................................................
U . S. Governm ent obligations..................................................................................
Other securities.............................................................................................................
Loans and discounts....................................................................................................
All other assets..............................................................................................................
151,896,770
33,286,775
81,835,381
7,556,923
27,768,296
1,449,395
86,826,715
19,577,701
46,726,359
4,489,004
15,222,047
811,604
45,471,960
9,590,687
24,480,355
1,893,718
9,033,493
473,707
19,598,095
4,118,387
10,628,667
1,174,201
3,512,756
164,084
Liabilities and capital— to ta l...................................................................................
T otal deposits................................................................................................................
Demand deposits........................................................................................................
Time and savings deposits.......................................................................................
Borrowings and other liabilities...............................................................................
T otal capital a ccou n ts................................................................................................
151,896,770
141,829,678
109,890,600
31,939,078
1,057,079
9,010,013
86,826,715
81,308,649
63,899,638
17,1+09,011
636,871
4,881,195
45,471,960
42,129,157
33,61+8,602
8,1+80,555
357,460
2,985,343
19,598,095
18,391,872
12,31+2,360
6,01+9,512
62,748
1,143,475
N um ber of active officers, Decem ber 3 1 ...................................................................
Number of other employees, December 3 1 ...............................................................
62,697
271,395
29,616
147,206
12,886
83,215
20,195
40,974
62,171
269,699
526
1,696
Number of banks, December 3 1 ..................................................................................
13,359
5,007
1,890
6,462
13,195
164
Taxes on net incom e—:to t a l...................................................................................
S ta te. . . .
.....................................................................................................................
OF
INSURED
BANKS
DIVIDENDS
1 Includes banks operating less than full year and trust companies not engaged in deposit banking.
2 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures— See Table 114, p. 140. See also the Annual Report for 1945, pp. 132-183, and earlier reports.
AND
155,386
74,605
44,485
36,296
EXPENSES,
283,175
132,254
71,253
79,668
EARNINGS,
Losses and charge-offs— to ta l..............................................................................
On securities...................................................................................................................
On lo a n s..........................................................................................................................
A ll o th e r..........................................................................................................................
T a b le 1 1 7.
R a t io s
of
E a r n in g s , E x p e n s e s ,
and
D
iv i d e n d s
of
I n s u r e d C o m m e r c ia l B a n k s , 1946
BY CLASS OF BANK
N ot
members
F. R .
System
Members F. R . System
Total
Earnings or expense item
$100.00
$100.00
$100.00
35.86
6.31
38.82
5.44
6.55
7.02
DEPOSIT
$100.00
State
FEDERAL
A m ounts per $100 of current operating earnings
Interest and dividends on:
National
44.55
6.53
32.76
4.41
2.84
8.91
Current operating expenses— to ta l............................................ .......................................................................
Salaries, wages, and fees ......................................................................................................................................
Interest on time and savings deposits................................................................................................................
Taxes other than on net in com e...........................................................................................................................
Recurring depreciation on banking house, furniture and fixtures...............................................................
Other current operating expenses........................................................................................................................
61.57
29.62
9.38
3.36
1.43
17.78
60.44
28.71
9.13
3.46
1.48
17.66
62.40
31.37
8.18
3.31
1.30
18.24
63.89
29.54
12.41
3.15
1.48
17.31
N et current operating earnings..........................................................................................................................
38.43
39.56
37.60
36.11
A m ounts per $100 of total assets1
Current operating earnings— to ta l...........................................................................................................................
Current operating expenses— tota l.............................................................. ............................................................
N et current operating earnings.................................................................................................................................
Recoveries and profits— to ta l....................................................................................................................................
Losses and charge-offs— to ta l...................................................... .............................................................................
N et profits before income taxes................................................................................................................................
N et profits after incom e taxes....................................................... ...........................................................................
1.88
1.16
.72
.27
.18
.81
.59
1.80
1.09
.71
.25
.18
.78
.57
1.83
1.14
.69
.31
.20
.80
.58
2.35
1.50
.85
.27
.19
.93
.74
Am ounts per $100 of total capital accounts1
N et current operating earnings.................................................................................................................................
Recoveries and profits— to ta l....................................................................................................................................
Losses and charge-offs— to ta l....................................................................................................................................
N et profits before incom e taxes................................................................................................................................
Taxes on net i n c o m e ..................................................................................................................................................
N et profits after income taxes...................................................................................................................................
Cash dividends declared.............................................................................................................................................
N et additions to capital from p rofits......................................................................................................................
12.21
4.53
3.14
13.60
3.59
10.01
3.32
6.69
12.71
4.39
3.18
13.92
3.80
10.12
3.48
6.64
10.50
4.74
3.07
12.17
3.33
8.84
3.25
5.59
14.55
4.62
3.17
16.00
3.35
12.65
2.83
9.82
CORPORATION
42.56
6.17
33.22
4.36
3.42
10.27
INSURANCE
Incom e on loans........................................................................................................................................................
Service charges on deposit accounts....................................................................................................................
Other service charges, commissions, fees and collection and exchange charges......................................
Other current operating earnings............... .........................................................................................................
42.53
5.41
31.00
3.66
2.80
14.60
3.43
1.56
.11
.84
3.37
1.56
.11
.82
2.86
1.52
.09
.80
5.09
1.65
.20
.95
A ssets a n d lia b ilitie s p e r $100 o f t o ta l assets1
A ssets— t o t a l ................................................................................... ...........................................................................
Cash and due from b an k s....................................................................................................................................
U . S. Government obligations.............................................................................................................................
Other securities........... .............................................................................................................................................
Loans and discounts...............................................................................................................................................
All other assets.........................................................................................................................................................
100.00
21.91
53.88
4.98
18.28
.95
100.00
22.55
53.82
5.17
17.53
.93
100.00
21.09
53.84
4.16
19.87
1.04
100.00
21.02
54.23
5.99
17.92
.84
L ia b ilitie s a n d c a p ita l— t o t a l ..............................................................................................................................
Total deposits.... ......................................................................................................................................................
Demand d eposits...................................................................................................................................................
Tim e and savings d ep osits.................................................................................................................................
Borrowings and other liabilities...........................................................................................................................
Total capital accou n ts............................................................................................................................................
100.00
93.37
72.3k
21.03
.70
5.93
100.00
93.65
73.60
20.05
.73
5.62
100.00
92.65
7k.00
18.65
.79
6.56
100.00
93.85
62.98
30.87
.32
5.83
EXPENSES,
Num ber of banks, December 3 1 ......................................................................................................................
13,359
5,007
1,890
6,462
AND
Back figures—See Table 115, p. 142. See also the Annual Report for 1945, pp. 134-135, and earlier reports.
OF
INSUHED
BANKS
DIVIDENDS
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
EARNINGS,
S p ecia l ratios*
Incom e on loans per $100 of loa n s..........................................................................................................................
Incom e on securities per $100 of securities...........................................................................................................
Service charges per $100 of demand deposits............................................................................................ ..
Interest paid per $100 of tim e and savings deposits..........................................................................................
T a b le 1 1 8 .
E
a r n in g s ,
E xpenses,
and
D
iv i d e n d s
of
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
hroughout
1946
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of— 2
Earnings or expense item
$500,000
or
less
$500,000
to
$1,000,000
$1,000,000
to
$2,000,000
$2,000,000
to
$5,000,000
$5,000,000 $10,000,000 $50,000,000
More than
to
to
to
$10,000,000 $50,000,000 $100,000,000 $100,000,000
(Amountss in thousand:3 of dollars)
111,966
302,957
279,178
556,205
194,898
1,352,418
1,209,304
173,742
930,914
14,493
124,057
1,265
185
2,644
99
275
11,068
1,465
14,974
242
1,974
40,848
6,206
45,634
549
6,566
121,201
20,136
114,212
1,178
18,206
116,002
20,045
99,705
1,154
17,206
235,838
35,976
178,325
1,894
32,421
81,763
10,757
62,062
985
9,037
601,319
78,972
413,358
8,392
38,372
97,384
134,635
152,116
600
58
221
3,210
14
729
9,014
176
2,973
17,506
1,464
9,054
11,422
3,452
10,192
18,293
20,312
33,146
5,133
10,960
14,201
32,206
98,199
81,600
Current operating expenses— to ta l...............................
Salaries— officers...................................................................
Salaries and wages— em ployees.................................. ..
Fees paid to directors and members of executive,
discount, and other com m ittees................................
Interest on tim e and savings deposits............................
Interest and discount on borrowed m on ey ....................
Taxes other than on net in com e.......................................
Recurring depreciation on banking house, furniture
and fixtures....................................................................
Other current operating expenses.....................................
1,747,994
306,514
517,461
3,526
1,457
396
21,220
7,888
2,606
69,344
22,101
10,267
188,109
48,741
34,574
176,952
36,529
40,316
361,120
60,508
100,700
126,536
19,361
39,033
801,187
109,929
289,569
16,829
267,126
2,353
95,493
76
319
4
211
449
2,918
18
1,069
1,562
12,051
43
3,688
3,901
37,126
108
10,584
2,916
36,286
89
10,010
3,929
65,406
362
20,283
888
17,743
170
7,193
3,108
95,277
1,559
42,455
40,642
501,576
84
979
522
5,750
1,717
17,915
5,055
48,020
4,862
45,944
9,619
100,313
3,618
38,530
15,165
244,125
N et current operating earnings.....................................
1,088,651
1,821
12,456
42,622
114,848
102,226
195,085
68,362
551,231
Recoveries and profits— to ta l...........................................
Recoveries on securities......................................................
Profits on securities sold or redeem ed............................
Recoveries on loans..............................................................
All oth er...............................................................................
400,534
58,852
207,430
74,017
60,235
397
47
107
162
81
2,375
319
734
893
429
8,597
1,277
3,427
2,477
1,416
30,829
4,007
15,287
6,694
4,841
35,525
4,728
19,560
6,778
4,459
85,778
10,452
48,727
14,388
12,211
33,759
4,900
20,824
4,866
3,169
203,274
33,122
98,764
37,759
33,629
Losses and charge-offs— to ta l..........................................
281,935
131,869
70,954
79,112
300
74
163
63
1,896
702
829
365
6,876
3,256
2,325
1,295
21,609
11,202
5,857
4,550
21,486
12,326
4,673
4,487
50,451
27,324
9,548
13,579
20,284
11,767
3,859
4,658
159,033
65,218
43,700
50,115
CORPORATION
2,836,645
INSURANCE
Current operating earnings— to ta l...............................
Interest and dividends on:
United States Government obligations......................
Other securities.................................................................
Interest and discount on loa n s.........................................
Service charges and other fees on bank’s loa n s...........
Service charges on deposit accounts................................
Other service charges, commissions, fees and col
lection and exchange charges....................................
Trust departm ent.................................................................
Other current operating earnings.....................................
DEPOSIT
5,347
33,676
FEDERAL
All
banks1
N et profits before incom e taxes
......................
124,068
116,265
230,412
*1,837
595,472
Federal.............................................................................
State.................................................................................
7,835
7,421
414
23,787
22,769
1,018
27,410
26,402
1,008
62,820
60,237
2,583
23,432
22,269
1,163
172,626
156,762
15,864
N et profits after taxes.........................................................
886,884
1,591
10,806
36,508
100,281
88,855
167,592
58,405
422,846
Dividends and interest on capital— to ta l..................
295,451
459
2,826
9,112
23,750
20,779
42,730
15,711
180,084
8,319
287,132
32
427
103
2,723
255
8,857
897
22,853
1,127
19,652
1,987
40,743
1,627
14,084
2,291
177,793
591,433
1,132
7,980
27,396
76,531
68,076
124,862
42,694
242,762
Average assets and liabilities3
Assets— t o t a l.......................................................................... 146,208,737
Cash and due from banks
33,544,661
U. S . Government obligations
73,368,363
Other securities...............................................................
7,763,447
Loans and discounts
30,080,933
All other assets
1,451,333
192,968
67,767
80,876
6,024
37,003
1,298
1,426,201
411,925
710,221
56,857
240,219
6,979
5,019,611
1,309,550
2,612,510
246,680
824,614
26,257
14,179,137
3,298,419
7,564,745
861,485
2,365,259
89,229
12,941,791
2,739,205
6,936,110
902,768
2,264,755
98,953
26,514,745
5,712,755
14,079,528
1,640,995
4,800,152
281,315
9,854,536
2,351,442
4,936,965
495,051
1,951,576
119,502
76,079,748
17,653,598
36,447,408
3,553,587
17,597,355
827,800
192,968
173,896
144,409
29,487
714
18,358
1,426,201
1,324,851
1,034,292
290,559
2,339
99,011
5,019,611
4,704,364
3,444,038
1,260,326
8,407
306,840
14,179,137
13,322,290
9,189,280
4,133,010
30,271
826,576
12,941,791
12,151,463
7,845,773
4,305,690
36,358
753,970
26,514,745
24,827,729
16,597,350
8,230,379
119,854
1,567,162
9,854,536
9,240,286
6,945,602
2,294,684
56,002
558,248
76,079,748
70,238,379
57,675,534
12,562,845
786,369
5,055,000
Dividends declared on preferred stock and interest
paid on capital notes and debentures...................
Cash dividends declared on common stock.............
N et additions to capital from profits..........................
.............................
.........................
....................................
.........................................
Liabilities and capital— to ta l .........................
146,208,737
Total deposits.................................................................. 135,983,258
Demand deposits............................................................... 102,876,278
Time and savings deposits............................................... 38,106,980
Borrowings and other liabilities...................................
1,040,314
Total capital accounts...................................................
9,185,165
839
472
3,868
2,734
8,700
8,806
14,838
24,308
8,502
24,620
10,253
55,884
2,627
21,112
12,544
131,763
N um ber of banks, December 3 1 ..........................................
13,195
474
1,812
3,311
4,304
1,750
1,239
131
174
BANKS
1 This group of banks is the same as the group shown in Table 116 under the heading “ Operating throughout the year” .
2 Deposits are as of Decem ber 31, 1946.
3 Asset and liability items are averages of figures reported at beginning, m iddle, and end of year for banks submitting reports to F D IC and are as of December 31 1946
for banks not submitting reports to F D IC .
’
Back figures— See the Annual R eport for 1945, pp. 136-137, and earlier reports.
INSURED
62,171
269,699
OF
Number of active officers, December 3 1 ...........................
N um ber of other employees, December 3 1 .......................
DIVIDEN DS
44,343
2,129
2,017
112
AND
12,935
327
311
16
EXPEN SES,
1,918
320,366
298,188
22,178
E A R N IN G S ,
1,207,250
Taxes on net incom e— to ta l.............................................
Table
119.
R a t io s
of
E a r n in g s , E x p e n s e s ,
and
D
i v id e n d s
of
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 in g T
hroughout
1946
150
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of—2
Earnings or expense item
$500,000
or
less
$500,000
to
$1,000,000
$1,000,000
to
$2,000,000
$2,000,000
to
$5,000,000
$5,000,000 $10,000,000 $50,000,000
More than
to
to
to
$10,000,000 $50,000,000 $100,000,000 $100,000,000
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
32.87
4.35
45.18
5.86
36.48
5.54
41.25
5.87
40.00
6.65
38.09
6.01
41.55
7.18
36.13
6.16
42.40
6.47
32.40
5.83
41.95
5.52
32.35
4.64
44.46
5.84
31.19
2.84
3.43
10.11
11.22
5.22
9.53
2.21
8.05
2.81
5.78
3.47
4.09
4.89
3.29
9.61
2.63
12.91
2.38
13.29
C u rre n t o p e r a tin g exp en ses— t o t a l ...........................
Salaries, wages, and fees................................................
Interest on time and savings deposits........................
Taxes other than on net incom e..............................
Recurring depreciation on banking house, furniture
and fixtures.........................................................
Other current operating expenses..........................
61.62
29.64
9.42
3.37
65.94
36.08
5.96
3.95
63.01
32.50
8.66
3.17
61.93
30.30
10.77
3.29
62.09
28.79
12.25
3.49
63.38
28.57
13.00
3.58
64.93
29.69
11.76
3.65
64.92
30.41
9.10
3.69
59.24
29.77
7.04
3.14
1.43
17.76
1.57
18.38
1.55
17.13
1.53
16.04
1.67
15.89
1.74
16.49
1.73
18.10
1.86
19.86
1.12
18.17
N et cu r r e n t o p e r a tin g e a r n in g s ...........................
38.38
34.06
36.99
38.07
37.91
36.62
35.07
35.08
40.76
A m o u n ts p er $100 o f t o ta l assets3
Current operating earnings— to ta l............................
Current operating expenses— t o ta l............................
N et current operating earnings..................................
Recoveries and profits— t o ta l.....................................
Losses and charge-offs— to ta l.....................................
N et profits before income ta x e s.................................
N et profits after income taxes....................................
1.94
1.20
.74
.27
.19
.82
.61
2.77
1.83
.94
.21
.16
.99
.82
2.36
1.49
.87
.17
.13
.91
.76
2.23
1.38
.85
.17
.14
.88
.73
2.14
1.33
.81
.22
.15
.88
.71
2.16
1.37
.79
.27
.17
.89
.69
2.10
1.36
.74
.32
.19
.87
.63
1.98
1.29
.69
.34
.20
.83
.59
1.78
1.06
.72
.27
.21
.78
.56
11.85
4.36
3.07
13.14
3.49
9.65
3.21
6.44
9.92
2.16
1.63
10.45
1.78
8.67
2.50
6.17
12.58
2.40
1.92
13.06
2.15
10.91
2.85
8.06
13.89
2.80
2.24
14.45
2.55
11.90
2.97
8.93
13.89
3.73
2.61
15.01
2.88
12.13
2.87
9.26
13.56
4.71
2.85
15.42
3.64
11.78
2.75
9.03
12.45
5.47
3.22
14.70
4.01
.10.69
2.72
7.97
12.24
6.05
3.63
14.66
4.20
10.46
2.81
7.65
10.90
4.02
3.15
11.77
3.41
8.36
3.56
4.80
A m o u n t s per $100 o f t o ta l c a p ita l a c c o u n ts 3
N et current operating earnings..................................
Recoveries and profits— to ta l.....................................
Losses and charge-offs— t o ta l.....................................
N et profits before income taxes.................................
Taxes on net incom e.....................................................
N et profits after income taxes....................................
Cash dividends declared...............................................
N et additions to capital from profits........................
CORPORATION
$100.00
23.66
3.46
51.30
5.14
INSURANCE
$100.00
42.63
6.13
33.33
4.37
DEPOSIT
$100.00
FEDERAL
A m o u n t s p er $100 o f c u r r e n t o p e ra tin g
e a rn in g s
C u rre n t o p e r a t in g ea rn in g s — t o t a l .....................
Interest and dividends on:
United States Government obligations...........
Other securities......................................................
Incom e on loans.........................................................
Service charges on deposit accounts.....................
Other service charges, commissions, fees and col
lection and exchange charges................................
Other current operating earnings................................
All
banks1
7.41
1.67
.19
1.08
6.33
1.63
.19
1.00
5.60
1.65
.19
.96
4.88
1.68
.20
.90
4.45
1.74
.22
.84
3.75
1.73
.20
.79
3.23
1.70
.13
.77
2.40
1.70
.07
.76
A ssets a n d lia b ilitie s p er $100 o f to ta l assets3
A ssets— t o t a l ...........................................................................
Cash and due from ban k s.................................................
U . S. Government obligations..........................................
Other securities....................................................................
Loans and discounts...........................................................
All other assets.....................................................................
100.00
22.94
50.18
5.31
20.58
.99
100.00
35.12
41.91
3.12
19.18
.67
100.00
28.88
49.80
3.99
16.84
.49
100.00
26.09
52.05
4.91
16.43
.52
100.00
23.26
53.35
6.08
16.68
.63
100.00
21.17
53.59
6.98
17.50
.76
100.00
21.55
53.10
6.19
18.10
1.06
100.00
23.86
50.10
5.02
19.80
1.22
100.00
23.20
47.91
4.67
23.13
1.09
L ia b ilitie s a n d c a p ita l— t o t a l ..........................................
Total deposits........................................................................
Demand deposits...............................................................
Time and savings deposits...............................................
Borrowings and other liabilities.......................................
Total capital accou nts........................................................
100.00
93.01
70.36
22.65
.71
6.28
100.00
90.12
7U.8U
15.28
.37
9.51
100.00
92.89
72.52
20.37
.16
6.95
100.00
93.72
68.61
25.11
.17
6.11
100.00
93.96
6U.81
29.15
.21
5.83
100.00
93.89
60.62
33.27
.28
5.83
100.00
93.64
62.60
31.0U
.45
5.91
100.00
93.77
7048
23.29
.57
5.66
100.00
92.32
75.81
16.51
1.03
6.65
Number of banks, December 3 1 ..........................................
13,195
474
1,812
3,311
4,304
1,750
1,239
131
174
AND
OF
INSURED
BANKS
DIVIDENDS
1 This group of banks is the same as the group shown in Table 116 under the heading “ Operating throughout the year” . These ratios differ slightly from the ratios for all
insured commercial banks shown in Tables 115 and 117.
2 Deposits are as of December 31, 1946.
*
Asset and liability items are averages of figures reported at beginning, middle, and end of year for banks submitting reports to F D IC and are as of December 31, 1946,
for banks not submitting reports to F D IC .
Back figures— See Table 115, p. 142. See also Annual Report for 1945, pp. 138-139, and earlier reports.
E A R N IN G S ,
3.14
1.70
.12
.81
EXPEN SES,
S p e cia l r a tio s 3
Incom e on loans per $100 of loans......................................
Incom e on securities per $100 of securities.......................
Service charges per $100 of demand deposits...................
Interest paid per $100 of tim e and savings deposits. . . .
T a b l e 120.
A m o u n t s a ^ d R a t i o s o f E a r n in 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 , b y S t a t e , 1946
(Amounts, except in ratios, in thousands of dollars)
Earnings or expense item
U. S.and
possessions
Possessions United States
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
26,318
8,616
16,153
284,778
20,089
30,415
9,229
1,218,189
176,575
936,261
14,559
124,669
8,910
1,948
10,479
98
1,369
2,898
180
4,073
100
391
5,402
1,219
5,443
71
1,143
106,304
16,653
113,716
2,429
13,424
8,089
892
7,082
69
1,738
12,403
1,198
9,79G
47
1,711
3,700
781
2,756
20
169
97,995
140,340
153,589
206
‘ ' 31
97,789
140,340
153,558
1,882
538
1,094
313
164
497
2,031
125
719
7,766
10,719
13,767
651
753
815
581
2,768
1,911
141
1,419
243
Current operating expenses— total.............
Salaries— officers..............................................
Salaries and wages— employees.....................
Fees paid to directors and members of
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..................
1,762,634
309,220
521,709
622
114
177
1,762,012
309,106
521,532
15,344
3,220
4,030
6,220
9,104
2,487
2,112
182,283
25,101
62,387
11,700
2,410
3,431
19,903
3,945
5,587
5,238
1,293
1,382
16,936
268,624
2,364
96,314
9
171
16,927
268,453
2,364
96,302
169
2,208
9
511
11
710
576
43,044
216
182
720
2
475
6,264
159
1,473
2
371
240
3,275
33
955
590
6
176
40,850
506,617
127
40,838
506,490
354
4,843
102
1,997
212
2,914
3,636
41,263
220
3,634
682
5,186
136
1,543
Net current operating earnings...................
1,100,241
313
1,099,928
10,974
2,396
7,049
102,495
8,389
10,512
3,991
Recoveries and profits— total........................
Recoveries on securities..................................
Profits on securities sold or redeemed..........
Recoveries on loans.........................................
All other...........................................................
408,608
59,515
208,700
74,499
65,894
408,533
59,506
208,642
74,495
65,890
2,795
108
1,504
748
435
720
183
427
67
43
1,737
187
855
298
397
28,440
3,392
8,368
10,508
6,172
2,049
457
625
666
301
4,754
300
3,076
1,038
340
979
49
728
141
61
Losses and charge-offs—total.......................
On securities.....................................................
On loans...........................................................
All other...........................................................
283,175
132,254
71,253
79,668
283,151
132,245
71,245
79,661
2,104
616
545
943
585
175
155
OKK
1,038
540
268
230
33,774
9,046
19,684
5,044
1,758
862
513
383
2,461
792
343
1,326
280
117
85
78
12
12
974
2,210
12
112
Net profits before income taxes...................
1,225,674
364
1,225,310
11,665
2,531
7,748
97,161
8,680
12,805
4,690
Taxes on net income— total..........................
Federal.............................................................
State.................................................................
323,328
301,048
22,280
126
126
323,202
300,922
22,280
3,063
2,539
524
673
567
106
1.454
1.454
25,200
22,090
3,110
2,487
2,172
315
3,912
3,584
328
1.362
1.362
Net profits after taxes.....................................
902,346
238
902,108
8,602
1,858
6,294
71,961
6,193
8,893
3,328
Dividends and interest on capital—to ta l..
Dividends on preferred stock and interest on
capital notes and debentures..................
dividends declared on common stock..
forCash
FRASER
298,983
298,930
2,161
627
1,337
30,621
1,387
2,594
1,715
8,345
290,638
8,342
290,588
45
2,116
21
606
44
1,293
651
29,970
13
1,374
38|
2,556
4
1,711
603,178
6,441
1,231
41,340
4,806
6,299
1,613
Digitized
http://fraser.stlouisfed.org/
Net additions to capital from profits.........
Federal Reserve Bank of St. Louis
603,363
185
CORPORATION
2,861,940
328
45
293
5
27
INSURANCE
935
1,218,517
176,620
936,554
14,564
124,696
DEPOSIT
2,862,875
FEDERAL
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
collection and exchange charges............
Trust department............................................
Other current operating earnings..................
at
to
AVERAGE ASSETS AND LIABILITIES
1
39,294
10,594
20,695
2,606
5,182
217
151,857,476
33,276,182
81,814,686
7,554,317
27,763,113
1,449,178
1,326,367
349,527
644,622
93,279
226,097
12,842
395,921
91,843
207,270
7,968
85,626
3,214
806,114
252,735
389,669
50,530
109,404
3,776
13,726,935
2,596,382
7,595,516
725,039
2,666,892
143,106
1,129,019
324,749
605,928
37,699
155,569
5,074
1,395,147
281,112
817,284
58,234
219,965
18,552
504,848
94,376
299,128
32,979
73,826
4,539
Liabilities and capital— to ta l..........................
T otal deposits.......................................................
Demand deposits...............................................
Time and savings deposits..............................
Borrowings and other liabilities......................
T otal capital a ccou n ts .......................................
151,896,770
141,829,679
109,890,600
31,939,079
1,057,078
9,010,013
39,294
37,428
18,825
18,603
48
1,818
151,857,476
141,792,251
109,871,775
31,920,^76
1,057,030
9,008,195
1,326,367
1,254,564
i,o n ,m
21+0,160
4,565
67,238
395,921
380,443
29k,995
85,U 8
1,541
13,937
806,114
766,784
675,388
91,396
911
38,419
13,726,935
13,026,255
7,939,877
5,086,378
86,178
614,502
1,129,019
1,074,894
862,982
211,912
2,546
51,579
1,395,147
1,291,812
939,973
351,839
7,440
95,895
504,848
457,099
390,927
66,172
2,617
45,132
Num ber o f active officers, December 3 1 ...........
Number o f other em ployees, December 3 1 . . . .
62,697
271,395
19
84
62,678
271,311
787
2,443
188
1,206
717
1,430
4,278
27,520
563
2,064
616
2,892
228
830
Num ber o f banks, Decem ber 3 1 ..........................
13,359
5
13,354
216
10
213
187
136
97
38
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
42.56
6.17
33.22
18.05
35.08
4.81
31.87
28.24
42.57
6.17
33.22
18.04
33.86
7.40
40.19
18.55
33.64
2.09
48.43
15.84
33.44
7.55
34.14
24.87
37.33
5.85
40.78
16.04
40.26
4.44
35.60
19.70
40.78
3.94
32.36
22.92
40.09
8.46
30.08
21.37
Current operating expenses— to ta l..............
Salaries, wages, and fe e s ...................................
Interest on tim e and savings d ep osits...........
Taxes other than on net in com e......................
All other current operating expenses.............
$61.57
29.62
9.38
3.36
19.21
$66.52
32.09
18.29
1.28
14.86
$61.57
29.62
9.38
3.36
19.21
$58.30
28.19
8.39
1.94
19.78
$72.19
37.08
8.24
2.51
24.36
$56.36
29.60
4.46
2.94
19.36
$64.01
30.92
15.12
2.20
15.77
$58.24
29.87
7.33
1.85
19.19
$65.44
32.13
10.77
3.14
19.40
$56.76
30.20
6.39
1.91
18.26
A m ounts per $100 of total assets1
Current operating earnings— t o ta l......................
Currrent operating expenses— to ta l....................
Net current operating earnings............................
$1.88
1.16
.72
$2.38
1.58
.80
$1.88
1.16
.72
$1.98
1.16
.82
$2.18
1.57
.61
$2.00
1.13
.87
$2.07
1.33
.74
$1.78
1.04
.74
$2.18
1.43
.75
$1.83
1.04
.79
A m ounts per $100 of total capital
accounts1
N et profits after incom e taxes..............................
Cash dividends declared.........................................
$10.01
3.32
$13.09
2.92
$10.01
3.32
$12.79
3.21
$13.33
4.50
$16.38
3.48
$11.71
4.98
$12.01
2.69
$9.27
2.71
$7.37
3.80
$3.43
1.56
$5.75
1.60
$3.42
1.56
$4.68
1.47
$4.87
1.43
$5.04
1.50
$4.36
1.48
$4.60
1.40
$4.47
1.55
$3.76
1.35
.84
.92
.84
.92
.83
.79
.85
.70
.93
.89
INSURED
BANKS
OF
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
Special ratios1
Incom e on loans per $100 of loa n s......................
Incom e on securities per $100 of securities.. . .
Interest paid per $100 of time and savings
deposits..........................................................
AND
RATIOS
A m ounts per $100 of current operating
earnings
Current operating earnings— to ta l..............
Interest and dividends on:
United States Governm ent obligations. . .
Other securities................................................
Incom e on loans...................................................
All other current operating earnings..............
EXPENSES,
151,896,770
33,286,776
81,835,381
7,556,923
27,768,295
1,449,395
EARNINGS,
Assets— to ta l...........................................................
Cash and due from b an k s.................................
U . S. Government obligations.........................
Other securities....................................................
Loans and discounts.................................... ..
All other assets.....................................................
T a b le 12 0 .
A m ounts
and
R
a t io s
of
E a r n in g s , E x p e n s e s ,
and
D
iv i d e n d s
of
I n s u r e d C o m m e r c ia l B a n k s ,
by
S t a t e , 1 9 4 6 — C ontin ued
(Amounts, except in ratios, in thousands of dollars)
Earnings or expense item
District of
Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
8,093
204,273
56,760
42,598
24,971
30,018
30,111
12,348
1,603
16,451
415
1,833
3,970
177
2,614
12
624
98,630
14,308
53,906
1,605
8,875
26,883
3,189
17,081
219
2,969
18,270
1,983
15,432
69
3,224
11,015
950
8,885
66
1,760
12,596
1,649
11,404
143
1,179
11,327
2,812
9,772
32
1,694
600
1,328
1,144
2,240
712
2,777
4,007
1,221
1,746
283
72
341
4,078
13,130
9,741
2,262
1,229
2,928
1,804
478
1,338
875
194
1,226
622
1,157
1,268
2,162
336
1,976
Current operating expenses— to ta l..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of
com m ittees....................................................
Interest on time and savings deposits...........
Interest and discount on borrowed m oney . .
Taxes other than on net in com e .....................
Recurring depreciation on banking house,
furniture and fixtures.................................
Other current operating expenses...................
13,532
2,198
4,639
21,407
3,877
5,864
24,633
4,878
5,798
4,771
1,066
1,309
124,032
21,017
36,029
37,010
7,039
8,588
25,490
6,896
5,372
14,924
4,472
3,311
17,221
4,091
4,239
19,432
3,496
4,913
166
1,508
2
1,113
198
2,459
52
882
299
2,832
45
1,979
32
791
120
888
19,925
79
7,573
445
6,755
10
3,610
285
4,319
9
889
216
1,129
5
754
251
1,649
43
1,519
240
2,394
6
1,990
392
3,514
760
7,315
613
8,189
105
1,348
2,069
36,452
816
9,747
528
7,192
397
4,640
401
5,028
578
5,815
Net current operating earnings.....................
6,592
13,807
14,991
3,322
80,241
19,750
17,108
10,047
12,797
10,679
Recoveries and profits— to ta l..........................
Recoveries on securities.....................................
Profits on securities sold or redeem ed...........
Recoveries on loans.............................................
All o t h e r ................................................................
1,855
126
977
483
269
4,029
384
2,508
324
813
2,356
90
1,064
522
680
424
8
343
50
23
33,973
7,795
12,791
4,913
8,474
6,503
1,172
2,939
925
1,467
3,745
346
2,321
679
399
1,717
166
522
591
438
3,205
497
1,546
799
363
2,477
222
1,386
511
358
Losses and charge-offs— to ta l.........................
On securities..........................................................
On loans.................................................................
All o th e r.................................................................
686
205
184
297
1,736
1,181
266
339
1,759
535
740
484
346
237
77
32
28,498
16,723
4,522
7,253
4,695
2,345
917
1,433
3,042
1,834
512
696
1,827
1,045
444
338
2,619
1,422
590
607
4,045
2,393
663
989
Net profits before incom e taxes.....................
7,761
16,100
15,588
3,400
85,716
21,558
17,811
9,937
13,383
9,111
Taxes on net incom e— to ta l............................
Federal...................................................................
S tate.......................................................................
2,322
2,322
4,593
4,593
3,708
3,708
930
917
13
21,287
21,287
5,197
5,197
4,237
4,237
2,178
2,178
3,219
3,219
2,553
2,553
Net profits after taxes........................................
5,439
11,507
11,880
2,470
64,429
16,361
13,574
7,759
10,164
6,558
Dividends and interest on capital— t o t a l..
Dividends on preferred stock and interest on
capital notes and debentures.................
Cash dividends declared on com m on s to c k ..
1,902
2,125
4,018
569
19,598
3,836
3,221
2,176
2,890
2,025
1,902
10
2,115
14
4,004
2
567
51
19,547
234
3,602
63
3,158
19
2,157
2,816
55
1,970
3,537
9,382
7,862
1,901
44,831
12,525
10,353
5,583
7,274
4,533
N et additions to capital from
profits.........
CORPORATION
39,624
15,341
2,339
9,080
86
2,639
INSURANCE
35,214
9,304
608
5,695
22
1,423
DEPOSIT
20,124
FEDERAL
Current operating earnings— to ta l..............
Interest and dividends on:
United States Governm ent obligations. . .
Other securities................................................
Interest and discount on loa n s........................
Service charges and other fees on bank's loans
Service charges on deposit a ccou nts...............
Other service charges, commissions, fees, and
collection and exchange charges.............
Trust departm ent................................................
Other current operating earnings....................
AVERAGE ASSETS AND LIABILITIES
1
1,875,994
508,680
1,010,737
90,899
248,142
17,536
1,832,935
484,547
848,094
57,333
425,428
17,533
424,101
96,149
260,223
8,059
57,622
2,048
11,908,991
2,617,879
6,587,234
648,544
1,986,541
68,793
2,968,226
677,967
1,723,334
141,249
405,510
20,166
2,167,488
489,080
1,189,758
117,861
359,317
11,472
1,439,071
404,856
781,425
57,276
188,523
6,991
1,590,353
392,456
844,985
59,556
284,394
8,962
1,655,438
481,462
769,173
126,442
258,367
19,994
Liabilities and capital— to ta l..........................
Total deposits.......................................................
Demand deposits...............................................
Time and savings deposits..............................
Borrowings and other liabilities......................
Total capital a ccou n ts.......................................
1,106,969
1,040,366
825,907
211+,1+59
5,003
61,600
1,875,994
1,785,923
1,1+76,613
309,810
5,695
84,376
1,832,935
1,731,550
1,1+31+,993
296,557
10,390
90,995
424,101
407,612
321,158
86,1+51+
838
15,651
11,908,991
11,240,766
8,825,308
2,1+15,1+58
50,896
617,329
2,968,226
2,811,688
2,053,661+
758,021+
5,707
150,831
2,167,488
2,058,592
1,593,21+7
1+65,31+5
2,183
106,713
1,439,071
1,371,317
1,231+,778
136,539
1,841
65,913
1,590,353
1,492,600
1,289,933
202,667
7,414
90,339
1,655,438
1,573,557
1,313,1+1+7
260,110
9,492
72,389
Num ber of active officers, Decem ber 3 1 ...........
Num ber of other employees, Decem ber 31. . . .
320
2,411
844
3,387
1,157
3,459
232
864
3,831
17,909
1,851
5,397
1,903
3,679
1,421
2,233
1,257
2,946
736
2,801
N um ber of banks, Decem ber 3 1 ..........................
20
176
304
45
856
474
596
452
362
154
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
46.23
3.02
28.41
22.34
43.57
6.64
26.03
23.76
31.16
4.05
42.56
22.23
49.05
2.19
32.45
16.31
48.28
7.00
27.18
17.54
47.36
5.62
30.48
16.54
42.89
4.66
36.39
16.06
44.11
3.81
35.85
16.23
41.96
5.49
38.47
14.08
37.62
9.34
32.56
20.48
Current operating expenses— to ta l..............
Salaries, wages, and fees...................................
Interest on tim e and savings d ep osits...........
Taxes other than on net in com e .....................
All other current operating expenses.............
$67.24
34.80
7.49
5.53
19.42
$60.79
28.22
6.98
2.51
23.08
$62.17
27.70
7.15
4.99
22.33
$58.95
29.74
9.77
1.48
17.96
$60.72
28.36
9.75
3.71
18.90
$65.20
28.32
11.90
6.36
18.62
$59.84
29.47
10.14
2.09
18.14
$59.77
32.04
4.52
3.02
20.19
$57.37
28.59
5.49
5.06
18.23
$64.53
28.72
7.95
6.61
21.25
Am ounts per $100 of total assets1
Current operating earnings— t o ta l......................
Current operating expenses— to ta l......................
Net current operating earnings............................
$1.82
1.22
.60
$1.88
1.14
.74
$2.16
1.34
.82
$1.91
1.13
.78
$1.71
1.04
.67
$1.91
1.25
.66
$1.97
1.18
.79
$1.74
1.04
.70
$1.89
1.08
.81
$1.82
1.17
.65
A m ounts per $100 of total capital
accounts1
N et profits after incom e taxes..............................
Cash dividends d ecla red .......... .......................................
$8.83
3.08
$13.64
2.52
$13.05
4.42
$15.78
3.64
$10.44
3.17
$10.85
2.54
$12.72
3.02
$11.77
3.30
$11.25
3.20
$9.06
2.80
$3.82
1.46
$3.69
1.60
$3.96
1.54
$4.56
1.55
$2.79
1.56
$4.27
1.61
$4.31
1.55
$4.75
1.43
$4.06
1.57
$3.79
1.58
.70
.79
.95
.91
.82
.89
.93
.83
.81
.92
EXPENSES,
1,106,969
260,486
645,497
33,301
149,467
18,218
EARNINGS,
Assets— to ta l..........................................................
Cash and due from ban k s.................................
U . S. Government obligations.........................
Other securities....................................................
Loans and discounts...........................................
All other assets.....................................................
RATIOS
INSURED
BANKS
OF
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
Special ratios1
Incom e on loans per $100 of loa n s.....................
Incom e on securities per $100 of secu rities.. . .
Interest paid per $100 of tim e and savings
deposits..........................................................
AND
A m ou n ts per $100 of current operating
earnings
Current operating earnings— to ta l..............
Interest and dividends on:
United States Governm ent obligations. . .
Other securities................................................
Incom e on loans...................................................
All other current operating earnings..............
T a b le 1 20.
A m ounts
and
R a t io s
of
E
a r n in g s ,
E xpenses,
and
D
iv i d e n d s
of
I n s u r e d C o m m e r c ia l B a n k s ,
by
S t a t e , 1 9 4 6 — C ontin ued
(Amounts, except in ratios, in thousands of dollars)
Earnings or expense item
Maine
Maryland Massachusetts Michigan M inn esota Mississippi
Missouri
Montana
Nebraska
N evada
New
Hampshire
92,543
57,474
17,810
72,522
9,646
22,289
3,647
5,754
38,413
5,632
28,907
445
4,127
44,056
4,937
30,429
632
4,535
25,340
2,494
17,095
165
2,592
5,065
2,312
6,078
34
912
29,484
3,863
28,513
255
3,026
4,661
286
2,829
41
681
10,078
935
7,207
48
1,411
1,521
135
1,442
21
129
2,316
421
2,068
7
404
244
338
344
659
844
1,108
2,175
6,652
7,099
3,377
1,326
3,251
6,106
1,578
2,104
2,795
67
547
2,070
2,375
2,936
633
45
470
1,136
239
1,235
94
100
205
133
101
304
Current operating expenses— to ta l..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of
com m ittees...................................................
Interest on time and savings deposits...........
Interest and discount on borrowed m o n e y . .
Taxes other than on net inco^ne.....................
Recurring depreciation on banking house,
furniture and fixtures................................
Other current operating expenses...................
7,366
1,189
1,637
19,207
2,963
5,229
56,701
9,486
17,823
62,676
9,107
17,714
36,962
8,201
8,702
10,990
2,686
2,392
43,802
8,828
12,707
5,913
1,376
1,327
13,605
3,608
2,990
2,240
385
590
3,768
734
809
115
1,926
3
377
317
3,789
49
1,425
539
7,025
57
2,190
505
15,499
175
3,094
481
7,395
59
1,036
146
1,041
4
1,024
405
4,670
87
2,634
44
622
8
573
638
171
1,005
30
999
149
66
821
4
186
156
1,963
357
5,078
1,476
18,105
1,316
15,266
574
10,514
203
3,494
815
13,656
132
1,774
262
4,540
43
492
110
1,038
Net current operating earnings....................
3,481
10,142
36,749
29,867
20,512
6,820
28,720
3,733
8,684
1,407
1,986
Recoveries and profits— to ta l..........................
Recoveries on securities.....................................
Profits on securities sold or redeem ed...........
Recoveries on loans.............................................
All o th e r................................................................
1,750
193
1,136
302
119
5,003
692
3,487
484
340
13,951
1,056
7,110
3,968
1,817
8,657
1,191
5,707
951
808
5,955
854
1,954
1,144
2,003
1,358
239
531
339
249
12,583
3,272
6,344
1,886
1,081
821
219
101
386
115
2,378
411
1,156
461
350
61
8
32
6
15
1,229
316
696
156
61
Losses and charge-offs— to ta l.........................
On securities.........................................................
On loa n s.................................................................
All o th e r................................................................
1,072
636
146
290
1,923
1,259
301
363
16,240
4,017
2,760
9,463
4,891
2,624
874
1,393
3,808
1,842
871
1,095
1,850
1,104
499
247
6,720
4,203
1,765
752
1,717
1,073
417
227
1,896
1,257
311
328
108
21
64
23
743
491
104
148
Net profits before income taxes.....................
4,159
13,222
34,460
33,633
22,659
6,328
34,583
2,837
9,166
1,360
2,472
Taxes on net income— t o ta l............................
Federal...................................................................
S tate. .....................................................................
1,044
1,044
3,161
3,161
11,958
9,664
2,294
6,976
6,976
5,651
4,668
983
1,151
1,151
8,143
8,080
63
805
773
32
2,219
2,219
356
356
589
589
N et p ro fits a fte r ta x e s ........................................
3,115
10,061
22,502
26,657
17,008
5,177
26,440
2,032
6,947
1,004
1,883
976
3,234
11,771
7,199
4,875
1,311
7,540
869
2,050
149
464
95
881
54
3,180
117
11,654
645
6,554
53
4,822
116
1,195
104
7,436
5
864
23
2,027
149
16
448
2,139
6,827
10,731
19,458
12,133
3,866
18,900
1,163
4,897
855
1,419
Dividends and interest on capital— t o t a l..
Dividends on preferred stock and interest on
capital notes and debentures...................
Cash dividends declared on com m on s to c k ..
Net additions to capital from
profits.........
CORPORATION
93,450
15,098
1,088
9,303
70
1,179
INSURANCE
29,349
4,891
720
3,700
10
600
DEPOSIT
10,847
FEDERAL
Current operating earnings— to ta l..............
Interest and dividends on:
United States Government obligations. . .
Other securities................................................
Interest and discount on loa n s........................
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 departm ent................................................
Other current operating earnings....................
AVERAGE ASSETS AND LIABILITIES
1
1,653,017
332,160
981,428
42,747
279,893
16,789
4,606,961
900,708
2,528,085
127,194
987,245
63,729
4,922,848
919,357
2,935,659
274,649
759,234
33,949
2,856,960
639,948
1,614,588
121,821
460,860
19,743
795,905
225,526
337,201
94,136
133,799
5,243
4,273,557
1,111,523
2,079,612
193,512
861,119
27,791
526,658
137,854
321,393
12,254
52,179
2,978
1,283,090
350,844
699,797
59,633
166,237
6,579
167,509
30,642
99,741
7,092
28,414
1,620
236,442
48,979
124,532
14,605
46,314
2,012
L ia b ilitie s a n d ca p ita l— t o t a l ..........................
T otal deposits.......................................................
Demand deposits...............................................
Time and savings deposits..............................
Borrowings and other liabilities......................
Total capital a ccou n ts.......................................
480,784
443,891
259,150
18k,7kl
2,016
34,877
1,653,017
1,555,229
1,134,939
4-20,290
5,597
92,191
4,606,961
4,229,056
3,456,756
772,300
42,132
335,773
4,922,848
4,668,201
2,731,293
1,936,908
16,847
237,800
2,856,960
2,695,025
1,947,146
747,879
10,464
151,471
795,905
756,223
632,915
123,308
1,426
38,256
4,273,557
4,047,319
3,439,920
607,399
17,638
208,600
526,658
504,603
417,163
87,440
698
21,357
1,283,090
1,221,243
1,092,^25
128,818
3,532
58,315
167,509
159,775
111,472
48,308
1,417
6,317
236,442
215,449
150,672
64,777
612
20,381
Num ber o f active officers, D ecem ber 3 1 ...........
N um ber o f other employees, Decem ber 3 1 . . . .
288
1,063
716
3,116
1,380
9,405
1,742
9,128
2,270
5,238
707
1,616
2,194
7,479
366
892
1,063
1,994
80
355
190
512
Num ber o f banks, Decem ber 3 1 ..........................
55
167
183
417
646
198
565
110
356
8
56
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
45.09
6.64
34.20
14.07
51.44
3.71
31.94
12.91
41.10
6.03
31.41
21.46
47.61
5.33
33.56
13.50
44.09
4.34
30.03
21.54
28.44
12.98
34.32
24.26
40.65
5.33
39.67
14.35
48.32
2.97
29.75
18.96
45.22
4.19
32.55
18.04
41.71
3.70
40.11
14.48
40.25
7.32
36.06
16.37
C u rre n t o p e r a tin g expen ses— t o t a l ..............
Salaries, wages, and fees...................................
Interest on tim e and savings deposits...........
Taxes other than on net in com e .....................
All other current operating expenses.............
$67.91
27.11
17.76
3.48
19.56
$65.44
28.99
12.91
4.86
18.68
$60.68
29.80
7.52
2.34
21.02
$67.73
29.53
16.75
3.34
18.11
$64.31
30.25
12.87
1.80
19.39
$61.71
29.33
5.85
5.75
20.78
$60.40
30.25
6.44
3.63
20.08
$61.30
28.48
6.45
6.61
19.76
$61.04
30.37
4.51
4.48
21.68
$61.42
26.95
15.71
4.09
14.67
$65.48
27.96
14.27
3.23
20.02
A m o u n t s p e r $100 o f t o t a l a ssets1
Current operating earniifgs— t o ta l......................
Current operating expenses— to ta l.....................
N et current operating earnings............................
$2.25
1.53
.72
$1.77
1.16
.61
$2.03
1.23
.80
$1.88
1.27
.61
$2.01
1.29
.72
$2.24
1.38
.86
$1.70
1.03
.67
$1.83
1.12
.71
$1.74
1.06
.68
$2.18
1.34
.84
$2.43
1.59
.84
A m o u n t s p e r $160 o f t o t a l c a p ita l
a ccou n ts1
N et profits after incom e taxes..............................
Cash dividends declared.........................................
$8.93
2.80
$10.91
3.51
$6.70
3.51
$11.21
3.03
$11.23
3.22
$13.53
3.43
$12.67
3.61
$9.51
4.07
$11.91
3.52
$15.89
2.36
$9.24
2.28
$4.41
1.82
$3.35
1.58
$2.97
1.66
$4.09
1.53
$3.75
1.60
$4.57
1.71
$3.34
1.47
$5.50
1.48
$4.36
1.45
$5.15
1.55
$4.48
1.97
1.04
.90
.91
.80
.99
.84
.77
.71
.78
1.19
1.27
INSURED
BANKS
OF
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
S p e cia l r a t io s 1
Incom e on loans per $100 of loa n s......................
Incom e on securities per $100 of securities. . . .
Interest paid per $100 of tim e and savings
deposits..........................................................
AND
RATIOS
A m o u n t s p e r $100 o f c u r r e n t o p e r a tin g
e a rn in g s
C u rre n t o p e r a t in g e a rn in g s — t o t a l ..............
Interest and dividends on:
United States Government obligations. . .
Other securities................................................
Incom e on loans...................................................
All other current operating earnings..............
EXPENSES,
480,784
83,645
284,555
24,553
84,060
3,971
EARNINGS,
A ssets— t o t a l ...........................................................
Cash and due from b an k s.................................
U . S. Government obligations.........................
Other securities....................................................
Loans and d iscounts...........................................
All other assets.....................................................
Table 120.
A m ounts
and
R a t io s
of
E a r n in g s , E x p e n s e s ,
and
D
iv id e n d s
of
I n s u r e d C o m m e r c ia l B a n k s ,
by
State,
1946— Continued
(Amounts, except in ratios, in thousands of dollars)
Earnings or expense item
New
Jersey
New
Mexico
New
York
North
Carolina
North
Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode
Island
South
Carolina
8,721
140,574
31,832
27,336
236,451
13,658
11,960
13,177
2,406
12,963
316
1,877
4,047
224
1,744
61
436
61,523
8,933
45,756
819
6,509
10,765
1,892
13,509
138
2,141
13,807
1,884
8,163
41
1,315
104,502
25,316
62,462
519
6,403
7,251
433
3,812
10
458
4,316
624
4,011
27
1,052
1,882
3,811
4,648
228
31
257
12,686
52,180
43,835
3,582
1,051
1,000
1,846
35
328
3,584
5,999
7,451
1,162
319
1,906
829
520
777
4,582
19,328
13,339
176
540
978
1,504
20(1
220
Current operating expenses— to ta l..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of
com m ittees...................................................
Interest on tim e and savings deposits...........
Interest and discount on borrowed m on ey .
Taxes other than on net in com e.....................
Recurring depreciation on banking house,
furniture and fixtures................................
Other current operating expenses...................
67,260
10,444
17,305
3,512
782
1,041
350,111
53,614
132,852
21,786
4,785
5,267
5,156
1,413
997
93,984
13,297
22,964
17,531
4,817
4,687
15,688
2,656
5,316
143,852
23,440
40,127
9,171
1,172
2,176
6,915
1,751
1,899
1,005
14,960
72
3,947
29
321
1
208
2,570
25,454
1,013
12,855
197
2,909
50
950
74
842
151
836
46
479
41
3,072
164
838
19,198
106
12,300
393
2,098
24,156
140
9,375
85
2,394
10
712
83
651
4
125
2,368
17,159
58
1,072
6,723
115,030
516
7,112
102
1,564
2,170
23,111
574
5,941
342
3,868
4,224
40,292
201
2,421
158
2,244
Net current operating earnings.....................
31,509
2,414
251,998
14,586
3,565
46,590
14,301
11,648
92,599
4,487
5,045
Recoveries and profits— to ta l..........................
Recoveries on securities.....................................
Profits on securities sold or redeem ed...........
Recoveries on loans.............................................
All o th e r................................................................
24,814
2,675
15,561
4,339
2,239
517
123
61
273
60
103,286
14,952
58,719
16,259
13,356
2,991
144
2,188
318
341
601
60
103
138
300
20,123
1,661
11,086
4,843
2,533
2,507
112
1,428
578
389
1,860
126
1,280
122
332
55,960
11,389
26,067
5,955
12,549
1,941
383
755
694
109
407
44
197
67
99
Losses and charge-offs— to ta l.........................
On securities.........................................................
On loans.................................................................
All o th er................................................................
13,370
8,985
1,856
2,529
558
120
317
121
57,855
20,796
15,716
21,343
2,480
1,231
551
698
818
208
79
531
9,883
5,077
1,935
2,871
1,821
616
802
403
1,445
745
176
524
32,823
20,415
3,650
8,758
1,844
284
575
985
455
247
100
108
Interest and discount on loa n s ........................
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 departm ent................................................
Other current operating earnings...................
N et profits before incom e taxes.....................
42,953
2,373
297,429
15,097
3,348
56,830
14,987
12,063
115,736
4,584
4,997
Taxes on net incom e— t o t a l...........................
F ederal...................................................................
State
.
.
............................ ..
10,208
10,208
455
455
90,655
78,430
12,225
4,373
4,285
88
883
850
33
13,371
13,371
3,785
3,198
587
3,428
2,515
913
27,848
27,848
1,538
1,342
196
1,308
1,186
122
N et profits after taxes........................................
32,745
1,918
206,774
10,724
2,465
43,459
11,202
8,635
87,888
3,046
3,689
7,680
350
86,950
2,653
628
10,952
3,135
1,642
28,367
1,807
860
2,287
5,393
8
342
1,579
85,371
33
2,620
8
620
727
10,225
3
3,132
3
1,639
325
28,042
1,807
18
842
25,065
1,568
119,824
8,071
1,837
32,507
8,067
6,993
59,521
1,239
2,829
Dividends and interest on capital— t o t a l..
Dividends on preferred stock and interest on
capital notes and debentures
Cash
dividends declared on com m on s tock ..
Net additions to capital from
profits.........
CORPORATION
36,372
269,731
31,642
171,718
3,798
16,519
INSURANCE
602,109
1,793
188
3,082
8
339
DEPOSIT
5,926
47,146
8,261
27,998
159
4,864
FEDERAL
98,769
Current operating earnings— to ta l..............
Interest and dividends on:
United States Governm ent obligations. . .
AVERAGE ASSETS AND LIABILITIES
1
279,331 36,469,765
87,385 7,482,064
126,091 19,220,609
9,714 1,485,700
54,971 >7,886,755
1,170
394,637
1,859,639
465,577
934,379
100,244
341,450
17,989
439,410
94,733
295,425
12,249
34,743
2,260
7,364,489
1,471,468
4,068,486
408,440
1,351,545
64,550
1,545,010
481,089
732,702
88,676
232,393
10,150
1,413,797
291,366
817,084
80,034
212,748
12,565
10,855,153
2,122,355
6,020,929
888,479
1,671,653
151,737
694,166
110,597
453,599
14,560
103,692
11,718
655,767
192,218
335,084
29,734
94,470
4,261
Liabilities and capital— to ta l..........................
Total deposits.......................................................
Demand deposits...............................................
Time and savings deposits..............................
Borrowings and other liabilities......................
T otal capital a ccou n ts........................................
4,771,608
4,469,384
2,596,096
1,873,288
18,009
284,215
279,331 36,469,765
269,469 33,299,302
231,1*06 29,672,958
38,063 3,626,31*1*
193
561,486
9,669 2,608,977
1,859,639
1,758,742
1 ,U 5,877
312,865
11,873
89,024
439,410
421,735
336,507
85,228
672
17,003
7,364,489
6,926,398
1*,563,51*9
2,362,81*9
32,623
405,468
1,545,010
1,456,445
1,31*9,652
106,793
3,830
84,735
1,413,797
1,350,235
979,562
370,673
4,493
59,069
10,855,153
9,805,734
7,071,003
2,731*,731
54,123
995,296
694,166
640,769
1*31*,090
206,679
5,901
47,496
655,767
627,054
51*6,817
80,237
1,450
27,263
N um ber of active officers, Decem ber 3 1 ...........
N um ber of other em ployees, Decem ber 3 1 . . . .
1,974
9,254
186
641
6,368
59,700
1,065
3,229
447
738
2,845
12,341
1,354
2,996
611
2,887
4,595
21,226
193
1,380
460
1,138
N um ber of banks, Decem ber 3 1 ..........................
341
44
659
222
145
659
374
67
998
14
126
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
47.73
8.37
28.51
15.39
30.26
3.17
52.14
14.43
44.80
5.26
29.15
20.79
36.23
6.61
36.51
20.65
46.40
2.57
20.70
30.33
43.77
6.35
33.13
16.75
33.82
5.94
42.87
17.37
50.51
6.89
30.01
12.59
44.20
10.71
26.63
18.46
53.09
3.17
27.98
15.76
36.09
5.22
33.76
24.93
Current operating expenses— to ta l..............
Salaries, wages, and fe e s ...................................
Interest on tim e and savings d ep osits...........
Taxes other than on net in com e ......................
All other current operating expenses.............
$68.10
29.11
15.15
4.00
19.84
$59.26
31.25
5.42
3.51
19.08
$58.15
31.40
4.23
2.13
20.39
$59.90
28.18
8.00
2.61
21.11
$59.12
28.48
9.66
1.88
19.10
$66.86
26.39
13.66
8.75
18.06
$55.07
30.33
2.63
1.50
20.61
$57.39
29.31
11.24
1.44
15.40
$60.84
27.77
10.22
3.96
18.89
$67.15
25.14
17.53
5.21
19.27
$57.82
31.21
5.44
1.05
20.12
A m ou n ts per $100 of tota l assets1
Current operating earnings— t o ta l......................
Current operating expenses— to ta l......................
N et current operating earnings............................
$2.07
1.41
.66
$2.12
1.26
.86
$1.65
.96
.69
$1.95
1.17
.78
$1.98
1.17
.81
$1.91
1.28
.63
$2.06
1.13
.93
$1.93
1.11
.82
$2.18
1.33
.85
$1.97
1.32
.65
$1.82
1.05
.77
A m ounts per $100 of total capital
accounts1
N et profits after incom e taxes..............................
Cash dividends declared.........................................
$11.52
2.70
$19.84
3.62
$7.93
3.33
$12.05
2.98
$14.50
3.69
$10.72
2.70
$13.22
3.70
$14.62
2.78
$8.83
2.85
$6.41
3.80
$13.53
3.15
$3.99
1.72
$5.62
1.46
$2.23
1.46
$3.89
1.51
$5.20
1.39
$3.45
1.57
$5.87
1.54
$3.86
1.75
$3.77
1.88
$3.69
1.64
$4.27
1.35
.80
.84
.70
.93
.99
.81
.78
.83
.88
1.16
.81
EXPENSES,
4,771,608
773,364
2,902,204
327,291
705,486
63,263
EARNINGS,
Assets— to ta l...........................................................
Cash and due from b an k s.................................
U . S. Governm ent obligations.........................
Other securities....................................................
Loans and discounts...........................................
A ll other assets.....................................................
RATIOS
INSURED
BANKS
OF
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
Special ratios1
Incom e on loans per $100 of loa n s......................
Incom e on securities per $100 o f securities.. . .
Interest paid per $100 of tim e and savings
deposits..........................................................
AND
A m ounts per $100 of current operating
earnings
Current operating earnings— to ta l..............
Interest and dividends on:
United States Governm ent obligations. . .
Other securities................................................
Incom e on loans...................................................
All other current operating earnings..............
Table 120.
A m ounts
and
R a t io s
of
E a r n in g s , E x p e n s e s,
and
D
iv id e n d s
of
I n s u r e d C o m m e r c ia l B a n k s ,
by
S t a t e , 1 9 4 6 — C on tin u ed
(Amounts, except in ratios, in thousands of dollars)
Earnings or expense item
Texas
Utah
Verm ont
Virginia
W ashington
W est
Virginia
Wisconsin
W yoming
9,682
40,376
111,341
12,126
7,692
41,356
43,367
20,296
54,841
4,440
3,465
389
3,157
26
755
13,771
3,446
16,939
136
1,399
36,975
4,705
51,202
423
5,894
4,306
355
5,290
81
588
2,202
643
4,026
30
287
15,674
2,044
17,553
278
1,913
17,402
3,091
16,480
110
2,449
8,797
969
7 ’ 6&
9r
838
27,665
3,652
15,655
254
2,525
1,561
166
1,840
3
347
1,478
45
367
2,325
718
1,642
3,984
1,340
6,818
686
351
469
132
126
246
1,044
1,516
1,334
1,679
878
1,278
490
493
953
1,983
790
2,317
207
55
261
5,817
1,776
1,183
23,206
4,396
5,852
65,925
15,328
17,478
7,075
1,304
1,894
5,268
785
927
25,759
5,078
6,183
27,110
4,816
8,691
11,927
2,287
2,848
36,724
7,430
8,076
2,761
712
648
105
785
3
137
197
3,520
18
1,840
707
3,442
18
5,447
122
1,430
10
180
111
1,991
1
245
368
5,120
21
1,575
118
4,965
10
658
169
2,549
40
518
560
9,388
17
872
33
323
1
173
146
1,682
720
6,663
2,003
21,502
132
2,003
97
1,111
805
6,609
700
7,152
376
3,140
897
9,484
81
790
3,865
17,170
45,416
5,051
2,424
15,597
16,257
8,369
18,117
1,679
401
29
78
201
93
5,092
378
3,359
690
665
10,694
1,184
4,902
2,686
1,922
847
57
522
155
113
1,522
172
696
455
199
3,786
320
1,804
1,112
550
4,862
490
3,314
538
520
3,170
260
1,300
598
1,012
7,234
938
4,828
996
472
414
76
160
132
46
L o sse s a n d c h a r g e -o ffs — t o t a l .........................
517
275
65
177
4,800
3,220
766
814
8,625
3,632
2,823
2,170
521
176
231
114
702
356
255
91
2,734
1,390
621
723
3,678
2,208
710
760
1,238
636
256
346
4,368
2,930
987
451
395
153
154
88
3,749
17,462
47,485
5,377
3,244
16,649
17,441
10,301
20,983
1,698
938
877
61
4,139
4,082
57
12,736
12,736
1,398
1,276
122
669
640
29
4,306
4,306
3,207
3,207
2,519
2,519
4,627
4,548
79
383
383
N et p r o fits a fte r ta x e s .........................................
2,811
13,323
34,749
3,979
2,575
12,343
14,234
7,782
16,356
1,315
D iv id e n d s a n d in te re s t o n ca p ita l— t o t a l . .
Dividends on preferred stock and interest on
capital notes and debentures...................
Cash
dividends declared on com m on s t o c k ..
773
3,425
11,469
1,078
561
4,047
2,854
1,813
4,255
391
7
766
120
3,305
80
11,389
16
1,062
190
371
83
3,964
31
2,823
39
1,774
193
4,062
26
365
2,038
9,898
23,280
2,901
2,014
8,296
11,380
5,969
12,101
924
On loans ............................................. ..
N e t p ro fits b e fo r e in c o m e t a x e s .....................
N e t a d d it io n s t o ca p ita l f r o m
p r o f i t s .........
C ORPORATION
N e t c u r r e n t o p e r a tin g e a r n in g s .....................
R e co v e r ie s a n d p rofits— t o t a l ..........................
Recoveries on s e cu ritie s...................................
Profits on securities sold or redeem ed...........
INSURANCE
Interest on time and savings deposits...........
Interest and discount on borrowed m o n e y . .
Taxes other than on net in com e......................
Recurring depreciation on banking house,
furniture and fixtures.................................
Other current operating expenses....................
DEPOSIT
C u rre n t o p e r a tin g expen ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees........................
Fees paid to directors and members of
Tennessee
FEDERAL
C u rre n t o p e r a t in g ea rn in g s — t o t a l ...............
Interest and dividends on:
United States Government obligations. . .
Other securities................................................
Interest and discount on loa n s ........................
Service charges and other fees on bank's loans
Service charges on deposit accou nts...............
Other service charges, commissions, fees, and
collection and exchange charges.............
Trust d ep a rtm en t...............................................
Other current operating earnings....................
South
Dakota
AVERAGE ASSETS AND LIABILITIES
1
440,898
108,329
253,296
17,913
58,547
2,813
2,142,079
473,791
1,125,434
129,482
400,265
13,107
933,225
217,990
525,499
36,142
144,090
9,504
3,000,003
595,682
1,820,245
156.696
404.696
22,684
225,753
69,952
113,895
7,186
33,450
1,270
L ia b ilitie s a n d capital— to ta l..........................
Total deposits.......................................................
264,057
238,605
1,938,253
1,812,000
2,142,079
2,048,815
933,225
865,316
3,000,003
2,833,222
225,753
213,774
101,01+5
137,560
1,281,726
530,271+
1,501,927
51+6,888
621,795
21+3,521
1,699,302
1,133,920
171,529
1+2,21+5
1,628
27,484
951
24,501
8,396
117,857
7,202
86,062
6,089
61,820
7,867
158,914
242
11,737
3,566
10,321
264
1,043
236
583
1,312
3,838
866
4,348
588
1,672
1,895
4,709
202
400
289
811
59
71
315
119
175
545
55
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
35.79
4.02
32.88
27.31
34.11
8.53
42.29
15.07
33.20
4.23
46.37
16.20
35.51
2.93
44.29
17.27
28.63
8.36
52.73
10.28
37.90
4.94
43.12
14.04
40.13
7.13
38.25
14.49
43.35
4.77
38.21
13.67
50.45
6.66
29.01
13.88
35.16
3.74
41.51
19.59
Current operating expenses— to ta l..............
Salaries, wages, and fees...................................
Interest on time and savings deposits...........
Taxes other than on net in com e......................
All other current operating expenses.............
$60.08
31.65
8.11
1.41
18.91
$57.47
25.87
8.72
4.55
18.33
$59.21
30.10
3.09
4.89
21.13
$58.35
27.38
11.79
1.49
17.69
$68.49
23.70
25.88
3.19
15.72
$62.29
28.12
12.38
3.81
17.98
$62.51
31.42
11.45
1.51
18.13
$58.77
26.14
12.56
2.55
17.52
$66.96
29.29
17.12
1.59
18.96
$62.18
31.37
7.27
3.90
19.64
A m ounts per $100 of total assets1
Current operating earnings— t o ta l......................
Current operating expenses— to ta l.....................
N et current operating earnings............................
$2.20
1.32
.88
$2.02
1.16
.86
$1.88
1.11
.77
$2.11
1.23
.88
$2.91
2.00
.91
$2.13
1.33
.80
$2.02
1.27
.75
$2.17
1.28
.89
$1.83
1.22
.61
$1.97
1.22
.75
A m o u n t s p er $100 o f t o t a l c a p ita l
a ccou n ts1
N et profits after income taxes..............................
Cash dividends declared........................................
$14.00
3.85
$13.74
3.53
$12.13
4.00
$14.48
3.92
$10.51
2.29
$10.47
3.43
$16.54
3.32
$12.59
2.93
$10.29
2.68
$11.20
3.33
$5.44
1.42
$4.20
1.66
$4.10
1.53
$4.63
1.44
$4.73
2.06
$4.41
1.66
$4.14
1.63
$5.38
1.74
$3.93
1.58
$5.51
1.43
1.09
.90
.74
.88
1.45
.97
.91
1.05
.83
.76
5,937,729
1,904,484
2,526,458
196,102
1,259,002
51,683
575,227
132,937
306,398
16,455
116,012
3,425
264,057
37,072
115,229
23,206
85,677
2,873
440,898
420,071
1,994,469
1,890,380
5,937,729
5,636,850
575,227
546,115
81+8,01*7
72,021+
1,500,138
390,21+2
5,173,717
1+68,133
383,587
162,528
Borrowings and other liabilities......................
Ttftal capital a ccou nts.......................................
754
20,073
7,154
96,935
14,458
286,421
N um ber of active officers, D ecem ber 3 1 ...........
Num ber of other em ployees, December 3 1 . . . .
575
864
1,151
3,734
Num ber of banks, Decem ber 3 1 ..........................
169
........................
................
Demand deposits
Time and savings deposits
INSURED
BANKS
OF
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
S p e cia l r a tio s 1
Incom e on loans per $100 of loa n s......................
Incom e on securities per $100 of securities. . . .
Interest paid per $100 of time and savings
deposits..........................................................
AND
RATIOS
A m ounts per $100 of current operating
earnings
Current operating earnings— to ta l..............
Interest and dividends on:
United States Governm ent obligations. . .
Other securities................................................
Incom e on loans...................................................
All other current operating earnings.............
EXPENSES,
1,938,253
447,562
989,207
75,156
404,639
21,689
1,994,469
530,695
905,965
132,414
406,785
18,610
EARNINGS,
A ssets— t o t a l ..........................................................
Cash and due from b a n k s .................................
U .S . Government obligations.........................
Other securities....................................................
Loans and discounts...........................................
All other assets.....................................................
05
to
Table
121.
E a r n in g s , E x p e n s e s , D iv id e n d s , a n d A s s e t s a n d L ia b i l i t i e s o f I n s u r e d
M u t u a l S a v in g s B a n k s ,
1934, 1941-1946
1934
Earnings, expense, asset or liability item
|
1943
1944
1945
1946
69,547
26,554
1,195
12,955
18,068'
123
10,652
76,287
31,212
1,119
17,134
16,923
154
9,745
273,479
137,950
1,241
76,510
24,607
321
32,850
295,709
140,002
1,260
97,856
29,694
538
26,359
322,795
141,001
1,627
135,627
24,652
1,033
18,855
350,951
142,538
1,893
171,139
22,609
1,301
11,471
11,943
3,166 /
\
208
22,866
94
5,609
23,344
2,205
5,080
316
5,432
668
9,643
24,520
2,715
5,915
389
5,104
743
9,654
87,847
9,467
19,792
1,704
17,015
3,046
36,823
86,575
10,093
20,658
1,903
14,838
3,359
35,724
77,705
10,567
22,179
855
8,410
2,649
33,045
85,523
11,967
26,938
1,045
7,243
2,574
35,756
N et c u r r e n t o p e r a tin g e a r n in g s .............................................................
35,876
46,203
51,767
185,632
209,134
245,090
265,428
D iv id e n d s (in terest) p a id o n d e p o s it s .................................................
26,701
29,684
33,209
117,985
132,430
143,350
160,134
N et o p e r a tin g ea rn in g s a fte r d ivid en d s o n d e p o s it s ....................
9,175
16,519
18,558
67,647
76,704
101,740
105,294
P ro fits a n d recov eries o n assets— t o t a l ...............................................
Recoveries on securities4............................................................................
Profits on securities sold or exchanged..................................................
Recoveries on loans4..................................................................................
All other profits and recoveries5.......................... ...................................
5,481
833
1,355
702
2,591
23,014
3,432
13,996
462
5,124
19,092
5,164
7,112
653
6,163
129,160
40,402
31,376
11,094
46,288
101,473
31,423
30,677
14,763
24,610
181,982
47,560
79,389
4,055
50,978
186,720
34,920
89,554
2,097
60,149
L osses a n d c h a r g e -o ffs — t o t a l ...............................................................
On securities6................................................................................................
On loans6.................................................................. .....................................
All other7......................................................................................................
11,097
5,300
2,567
3,230
34,848
16,470
6,030
12,348
33,486
10,379
9,211
13,896
168,891
32,818
74,327
61,746
113,691
17,625
68,179
27,887
135,783
36,635
28,825
70,323
142,499
72,320
3,375
66,804
CORPORATION
47,819
24,602
457
18,866 /
1
44
3,850
INSURANCE
C u rre n t o p e r a tin g exp en ses— t o t a l .......................................................
Salaries— officers..........................................................................................
Salaries and wages— em ployees................................................................
D irectors', trustees’ , and managers’ fees1.............................................
Taxes other than on net in com e..............................................................
Recurring depreciation on banking house, furniture and fixtures3.
Other current operating expenses............................................................
|
1942
DEPOSIT
C u rre n t o p e r a tin g ea rn in g s— t o t a l ......................................................
Interest, discount, and other incom e on real estate loa n s ...............
Interest, discount, and incom e on other loans....................................
Interest on U . S. Governm ent obligations, direct and guaranteed
Interest and dividends on other securities............................................
Collection and exchange charges, commissions, and fees .................
Other current operating earnings............................................................
1941
FEDERAL
(Amounts in thousands of dollars)
N e t p ro fits b e fo r e in c o m e t a x e s .........................
3,559
T a xes o n n e t i n c o m e ...............................................
(8)
I n te re s t p a id o n ca p ita l n o t e s a n d d e b e n tu re s
3,559
...
2,034
5,759
4,588
4,131
27,571
64,364
145,905
143,756
149,515
344
318
294
482
271
264
2,009
4,244
3,813
27,277
63,882
145,634
143,492
1,177,936
65,643
140,129
320,949
552,188
13,129
85,898
1,973,635
184,743
581,795
445,939
604,701
35,151
121,306
2,089,328
141,377
725,595
416,107
661,599
30,078
114,572
7,945,687
494,112
3,322,146
663,101
3,104,849
28,145
333,334
9,164,873
449,751
4,723,004
628,821
3,085,567
30,372
247,358
10,636,400
416,762
6,345,344
605,362
3,056,494
36,934
175,504
12,066,095
530,271
7,588,938
653,589
3,112,879
41,588
138,830
1,177,936
1,042,388
1,01*2,388
1,973,635
1.803.002
1.803.002
2,089,328
1,900,429
1,900,1*29
7,945,687
7,134,660
7,131*,660
9,164,873
8.280.998
8.280.998
8,399
127,149
7,248
163,385
6,656
182,243
22,331
788,696
23,974
859,901
10,636,400
12,066,095
9,648,308
10,923,361
13,198
9,61*8,308 /
\ 10,910,163
27,085
32,934
961,007
1,109,800
317
2,823
363
2,884
1,209
9,581
1,276
9,719
1,337
10,852
1,410
11,414
52
56
184
192
192
191
(“ )
(u)
68
INSURED
BANKS
OF
1 Includes professional fees from 1941 through 1944.
2 Includes incom e taxes.
! t11 J o o f’ anj
submitting reports to F D IC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures,
t ln
a“ d .1£ 1941-1944; and for banks not submitting reports to F D IC in 1945-1946, includes reductions in valuation allowances.
6 In 1945 and 1946 for banks submitting reports to F D IC , includes all reductions in valuation allowances.
UJn
anA * n 1941-1944; and for banks not submitting reports to F D IC in 1945-1946, includes additions to valuation allowances.
7 In 1945 and 1946 for banks submitting reports to F D IC , includes all additions to valuation allowances.
8 N o t available; see footnote 2.
9 Also includes interest on borrowed m oney.
10 Asset and liability items are averages of figures reported at beginning, m iddle, and end of year.
11 N ot available.
12 For 1941-1946, includes three mutual savings banks, members of the Federal Reserve System.
Back figures— See the Annual R eport for 1941, p. 173.
DIVIDENDS
N um ber of banks, Decem ber 3 112........................................
147,939
122
AND
N um ber of active officers, Decem ber 3 1 ................................
N um ber of other em ployees, Decem ber 3 1 .....................
|
64,486
345
EXPENSES,
L ia b ilitie s a n d c a p ita l— t o t a l ..............................
Total deposits............................................................................
Demand deposits......................................................
Time and savings deposits...........................................
Borrowings and other liabilities.......................................
T otal surplus and capital accounts.................................
27,916
33
91,550
N e t p ro fits a fte r in te r e s t a n d d iv id e n d s .. ..
A verage a ssets a n d lia b ilitie s 10
A ssets— t o t a l .................................................... ..
Cash and due from b an k s..............................................
U . S. Governm ent obligations........................................
Other securities..................................................
Real estate loa n s..................................................................
Other loans and discounts...............................................
All other assets..................................................................
4,164
97
EARNINGS.
N et p ro fits a fte r in c o m e t a x e s .......................................
4,685
CO
122.
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
1934
Earnings or expense item
24.98
7.06
25.99
.20
11.73
1944
1945
1946
$100.00
38.18
1.72
18.63
25.98
.17
15.32
$100.00
40.91
1.47
22.46
22.18
.20
12.78
$100.00
50.44
.46
27.97
9.00
.12
12.01
$100.00
47.34
.43
33.09
10.04
.18
8.92
$100.00
43.68
.50
42.02
7.64
.32
5.84
$100.00
40.62
.54
48.76
6.44
.37
3.27
33.57
10.93
7.81
.96
13.87
32.14
11.82
6.69
.97
12.66
32.12
11.32
6.22
1.11
13.47
29.28
11.04
5.02
1.14
12.08
24.07
10.41
2.60
.82
10.24
24.37
11.38
2.06
.74
10.19
475.02
66.43
67.86
67.88
70.72
75.93
75.63
Dividends (interest) paid on deposits................................................................
55.84
42.68
43.53
43.14
44.78
44.41
45.63
operating earnings after dividends on deposits.............. ....................
19.18
23.75
24.33
24.74
25.94
31.52
30.00
3.44
1.10
2.34
1.49
.85
1.63
2.13
.35
.34
O 00
°!95
2.28
1.44
.84
1.11
1.24
.71
.70
3.03
.73
2.30
1.35
.95
1.71
1.27
1.39
1.37
2.91
.71
2.20
1.33
.87
1.55
1.18
1.24
1.19
A m ounts per $100 of total assets5
operating earnings after dividends on d ep osits.............................................
N et additions to surplus and capital a ccou nts...............................................
4.06
1.01
43.05
2.27
.78
.46
.94
4.30
.17
3.52
1.18
2.34
1.50
.84
1.17
1.77
.24
.22
3.65
1.17
2.48
1.59
.89
.91
1.60
.20
.18
—
CORPORATION
RecurringVdepreciation on banking house furniture and fixtures®................
\
1943
INSURANCE
............... .............................
Interest and dividends on other securities
Collection and exchange charges commissions* and fe e s ................................
$100.00
51.45
.96
39.45 /
\
.09
8.05
1942
DEPOSIT
A m ounts per $100 of current operating earnings:
1941
1934, 1941-1946
M u t u a l S a v in g s B a n k s ,
FEDERAL
Table
4.44
4.41
4.54
4.15
4.61
4.41
4.58
4.55
4.09
2.56
2.23
4.05
1.65
2.36
4.07
1.75
2.30
3.71
1.65
2.07
4.72
1.60
2.14
4.07
1.49
2.26
3.46
1.47
1.58
2.60
2.09
3.46
7.43
15.15
12.93
100.00
100.00
5.57
11.90
27.25
47.99
7.29
100.00
9.36
29.48
22.59
32.42
6.15
6.77
34.73
19.91
33.11
5.48
100.00
6.22
100.00
100.00
3.92
59.66
5.69
29.08
1.65
100.00
4.40
62.89
5.42
26.14
1.15
L ia b ilitie s a n d c a p ita l— t o t a l ................................................................................
Total deposits.............................................................................................................
Demand deposits.....................................................................................
Time and savings deposits....................................................................................
Borrowings and other liabilities.............................................................................
T otal capital a ccou n ts..............................................................................................
100.00
100.00
88.49
88.1*9
91.35
91.35
100.00
.71
10.80
N um ber of banks, Decem ber 3 1 ................................................................................
68
A ssets a n d lia b ilitie s p e r $100 o f t o ta l assets5
A ssets— t o t a l .................................................................................................................
Cash and due from b an k s...............................I ! ! ! ! ! ! ! ! ! ! ! ! ! ! ' . ! ! ’. ! ! ! ! ! ! ! !
U . S. Government obligations...............................................................................
Other securities......................................................................................................* ’
Loans and discounts.........................................................................................
All other assets...........................................................
41.80
8.35
39.43
4.20
4.91
51.53
6.86
34.00
2.70
100.00
100.00
90.96
90.96
100.00
89.79
89.79
90.36
90.36
100.00
90.71
90.71
.37
8.28
.32
8.72
.28
9.93
.26
9.38
.25
9.04
90.^2
.27
9.20
52
56
184
192
192
191
90.53
.11
INSURED
BANKS
OF
1 Includes professional fees from 1941 through 1944.
2 Includes incom e taxes.
!
an<* / or banks not submitting reports to F D IC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
4 bee footnote 2.
8 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
4.72
3.72
AND
4.39
3.40
EXPENSES,
4.46
3.48
EARNINGS,
S p ecia l r a t io s 5
Incom e on real estate loans per $100 of real estate loans...................................
Incom e on other loans per $100 of other loans......................................................
Interest on U . S. Governm ent obligations per $100 of U . S. Government,
obligations...........................................................................................................
Incom e on other securities per $100 of other securities..............................!!.* .
Dividends paid on deposits per $100 of time and savings deposits..................
N et additions to surplus and capital accounts per $100 of total surplus and
capital accou nts.................................................................................................
Ox
D e p o s it I n s u r a n c e
D is b u r s e m e n t s
Table 123. 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, 1934-1946
Banks grouped by class of bank, year of disbursement, amount of deposits, and
State
Table 124. Assets and liabilities of insured banks placed in receivership and of insured banks
merged with the financial aid of the Federal Deposit Insurance Corporation,
1934-1946
As shown by books of bank at date of closing
Table 125. Depositors and deposits of insured banks placed in receivership, 1934-1946
As shown by books of FD IC , December 81, 19^6
Table 126. Disbursements to protect depositors, 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, 1934-1946
As shown by books of FDIC, December 81, 1946
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’s disbursement is the amount loaned to merging banks, or the
price paid for assets purchased from them.
Noninsured bank failures:
One noninsured bank failed in 1946, none in 1945 or 1944. The
Englewood Industrial Bank, Englewood, Colorado, with deposits of
$147,000, closed June 30, 1946. For suspensions of noninsured banks,
1934-1943, see the Annual Report of the Corporation for 1943, page 102.
Sources of data:
Books of bank at date of closing; and books of FD IC, December
31, 1946.
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
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 FD IC .
Deposits of insured banks placed in receivership as given in tables
with data taken from the books of F D 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.
DEPOSIT
Depositors and deposits in insured banks placed in receivership have
been grouped in Table 125 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.
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.
Table 123.
o f
D is b u rs e m e n ts b y t h e
In su red
B an k s P la c e d
in
F e d e r a l D e p o s it In s u ra n c e
R e ce iv e r s h ip
or
C o r p o r a t io n
M e r g e d w ith t h e
to
P r o t e c t D e p o s ito r s ; N u m b e r a n d D e p o s its
F i n a n c i a l A id
o f th e
C o r p o r a t io n ,
1934-1946
BANKS GROUPED BY CLASS OF BANK, YEAR OF DISBURSEMENT, AMOUNT OF DEPOSITS, AND STATE
Disbursement b y F D IC
(in thousands of dollars)
Num ber of banks
Deposits (in thousands of dollars)
Receiver
ships1
Total
Mergers1
Receiver
ships
Total
Mergers
Total
Receiver
ships1
Mergers2
175,099
399
245
154
505,246
109,592
395,654
46,038
99,411
116,684
14,808
20,934
51,292
31,230
78,477
65,392
65
20
314
21
6
218
44
14
96
94,716
179,081
231,449
19,474
26,538
63,580
75,242
152,543
167,869
C a len d a r yea r
1934...........................................................................
1935...........................................................................
1936...........................................................................
1937...........................................................................
941
8,890
14,833
19,202
941
6,025
8,056
12,045
2,865
6,777
7,157
9
25
69
75
9
24
42
50
1
27
25
1,968
13,320
27,528
33,345
1,968
9,091
11,241
14,960
4,229
16,287
18,385
1938............................................................................
1939...........................................................................
1940...........................................................................
1941............................................................................
30,480
67,804
74,380
23,880
9,087
26,196
4,895
12,278
21,393
41,608
69,485
11,602
74
60
43
50
32
19
24
28
24
7
59,724
157,779
142,389
29,721
10,296
32,740
5,657
14,730
49,428
125,039
136,732
14,991
1942............................................................................
1943...........................................................................
1944............................................................................
1945...........................................................................
1946...........................................................................
10,958
7,217
1,515
1,768
265
1,612
5,500
399
9,346
1,717
1,116
1,768
265
20
5
2
1
1
6
4
1
14
1
1
1
1
19,011
12,535
1,915
5,695
316
1,816
6,637
456
17,195
5,898
1,459
5 695
316
B a n k s w ith d e p o sits o f —
$100,000 or less......................................................
$100,000 to $250,000............................................
$250,000 to $500,00.0............................................
4,956
12,859
14,604
4,309
11,549
10,218
647
1,310
4,386
106
108
59
83
86
36
23
22
23
6.358
17,611
20,972
4,947
13,920
12,462
1,411
3,691
8,510
$500,000 to $1,000,000.........................................
$1,000,000 to $2,000,000.....................................
$2,000,000 to $5,000,000.....................................
24,160
26,714
42,329
13,901
8,961
12,421
10,259
17,753
29,908
49
35
25
24
9
5
25
26
20
36,807
49,320
77,568
17,591
11,748
16,279
19,216
37,572
61,289
$5,000,000 to $10,000,000...................................
$10,000,000 to $50,000,000.................................
M ore than $50,000,000........................................
21,949
114,562
25,675
21,949
88,887
9
8
2
9
6
57,486
239,124
32,645
57,486
206^479
1
15
8
II
CORPORATION
87,034
INSURANCE
262,133
C lass o f b a n k
National banks.......................................................
State banks members F . R . System .................
Banks not members F . R . System ....................
DEPOSIT
A ll b a n k s .....................................................................
FEDERAL
Classification
State
F lorida................
G eorgia ...............
Illin ois.................
Ind iana ...............
Io w a .....................
300
863
3,295
4,335
1,462
203
846
1,242
3,092
385
Kansas................
K e n tu ck y ...........
Louisiana............
M arylan d.........
M assachusetts. .
974
4,614
668
3,110
1,571
482
3,329
668
735
M ichigan............
M innesota..........
M ississippi.........
M issouri.............
M on tana.............
5,340
640
257
4,920
213
139
640
257
4,335
186
N ebraska............
New Hampshire,
N ew Jersey........
N ew Y o r k ...........
N orth Carolina.
469
118
79,246
67,666
1,448
25,103
10,835
1,156
N orth D a k o ta . .
O h io.....................
O klahom a...........
O regon.................
Pennsylvania. . .
2,658
1,610
1,218
962
47,509
South C arolin a..
South D a k o ta ...
Tennessee......... .
T exas...................
V e rm on t.............
Virginia...............
W ashington........
W est V irgin ia .. .
W iscon sin...........
1 D ata from books of F D I C , Decem ber 31, 1946.
2 Data from books of bank at date of closing.
1
7
6
15
3
1
1
8
3
3
491
1,027
6,409
9,710
5,516
217
998
1,637
3,932
498
274
29
4,772
5,778
5,018
9
22
3
5
2
5
IS
3
2
4
4
1,233
7,950
1,652
4,569
3,019
539
3,953
1,652
828
694
3,997
3
5
3
34
3
4
11
1
12,404
818
334
7,001
298
160
818
334
5,116
215
12,244
585
27
7
5
3
45
4
118
54,143
56,831
292
4
1
37
25
6
11
3
2
1
26
22
4
538
296
184,511
138,826
2,291
30,916
13,286
1,421
143
2
861
1
1
2
1
2
97
17
2,053
1,243
1,077
2
8
14
18
6
492
1,285
2,375
1,571
5,201
’
469
1
5
18
2
5
10,133
29
2
7
1
25
136
2,411
1,279
2,512
3,445
136
2,388
1,164
2,468
3,259
23
115
44
186
4,919
935
1,458
6,384
511
4,408
935
1,458
5,096
1,266
1,288
3
2
4
85
962
37,376
1,392
1,610
1,133
1
1,078
8
1,526
3,741
3,019
1,885
83
538
1,552
2,345
1,659
296
153,595
125,540
870
2,278
8
2
1
17
3,830
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
2,988
1,943
3,316
3,725
136
2,862
1,621
3,239
3,375
126
322
77
350
8
1
3
30
3
10,746
1,538
2,007
8,700
629
10,117
1,538
2,007
5,966
2,734
3
20
11
5
1
10
D ISBU RSEM EN TS
8
1,242
428
529
1,168
1,078
8
1,526
101
1,168
1
94
840
INSURANCE
237
840
861
8
1,242
DEPOSIT
A labam a.............
Arkansas.............
C alifornia...........
C o lo ra d o.............
Connecticut
T able 124.
A s s e t s a n d L i a b i l i t i e 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 a n d o f I n s u r e d B a n k s M e r g e d w i t h
t h e F i n a n c i a l A i d o f t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n , 1934-1946
A S SH OW N B Y BOOKS OF B A N K A T D ATE OF CLOSING
Assets
Year
U . S . G ov
ernment
obligations
Other
securities
Loans,
discounts,
and
overdrafts
Banking
house,
furniture &
fixtures
Other
real
estate
T otal
Other
assets
T otal
deposits
Other
liabilities
R . F . C.
capital
Private
capital
stock
Other
capital
accounts1
$108,145,353 $76,409,369 $73,563,320 $231,760,363 $22,227,985 $59,544,599 $13,444,784 5585,095,773 3503,028,743 $11,468,774 $25,130,464 $37,487,461 $7,980,331
$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
185,056
1,974,181
2,194,712
2,238,648
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
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
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
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
1942
1943
1944
1945
1946
4,159,617
1,216,987
368,633
2,440,786
126,764
3,547,766
2,903,771
585,251
1,371,925
114,326
2,275,392
555,383
230,282
55,504
30,236
7,731,137
1,675,734
367,086
2,435,488
77,049
$5,114,277 $444,805,725 $395,654,179
$1,346,751 $19,234,218 $25,233,162 $3,337,415
1,184,658
926,359
10,808
325,362
186,497
4,917,728
18,966,364
21,086,180
4,228,816
16,287,262
18,384,923
140
19,769
262,651
310,000
609,200
315,000
1,664,000
1,808,400
373,772
685,333
21,006
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
14,990,7.68
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
759,861
274,331
1,824,586
15,844
67,428
4,609
354,362
34,523
32,108
83,603
425
20,652,721
6,676,573
1,650,788
6,391,915
351,169
17,195,146
5,897,691
1,459,091
5,695,202
316,402
584
913,400
96,000
1,748,200
300,000
200,000
331,500
10,000
795,391
382,882
-8,303
365,213
24,767
2,369
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 : N o insured bank was placed in receivership in 1945 or 1946. One insured bank was merged with the financial aid of F D IC during 1946. The Augusta County Bank, Inc.,
Churchville, Virginia, (Case N o. 154) with 1,404 accounts was merged with the National Valley Bank of Staunton, Staunton, V a ., on September 16, 1946. A disbursement of $264,638
was m ade b y the Corporation in connection with this merger.
C ORPORATION
M E R G I JRS
$85,524,971 $66,255,291 $57,616,758 $166,191,146 $16,852,369 $47,250,913
Total
INSURANCE
1934
1935
1936
1937
DEPOSIT
R E C E F VERSHIPS
$22,620,382 $10,154,078 $15,946,562
T otal
FEDERAL
T otal
Cash and
due from
banks
Liabilities and capital accounts
Table 125.
D
e p o s it o r s a n d
D
e p o s it s
of
Insured B a n k s P laced
in
R e c e iv e r s h ip ,
1934-1946
AS SHOWN BY BOOKS OF FDIC, DECEMBER 31, 1946
N um ber of depositors
Am ount of deposits
Year
1 Paid b y
F D IC
T otal
Fully paid
b y other
methods
289,537
36,129
15,767
32,332
43,225
74,147
44,284
11,262
23,432
30,924
56,800
31,766
974
2,889
4,677
7,710
7,389
1939
1940
1941
1942
90,208
20,667
38,594
5,717
72,232
15,683
29,887
4,210
6,250
2,932
1,710
562
1943
1944
1945
1946
16,914
901
12,567
774
940
96
T otal
Total
7,837
49,253
109,592,068
87,118,993
87,034,226
1,019
22
26
17
3,531
4,992
7,602
9,611
5,112
1,968,480
9,090,660
11,240,969
14,959,944
10,296,244
941,008
6,028,290
8,055,591
12,046,824
9,087,490
941,008
6,025,513
8,055,564
12,044,562
9,087,444
3,889
7,837
2,052
6,997
945
32,739,738
5,656,661
14,730,243
1,816,179
26,247,978
4,895.050
12,278,001
1,612,049
26,196,419
4,895,050
12,278,001
1,612,049
2,833
31
574
6,637,025
455,925
5,520,888
405,824
5,499,548
399,068
Back figures— See the Annual Report for 1945, p. 145, and earlier reports.
Paid
Unpaid
Secured
and
preferred
Subject
to
©ffset
In excess
of
insurance
maximum
Other
84,767
5,099,085
6,304,236
9,691,620
1,378,134
2,777
27
2,262
46
831,894
538,890
659,381
1,138,193
340,536
90,114
561,369
660,362
1,084,541
524,302
30,607
1,935,772
1,048,035
644,077
253,924
74,857
26,339
817,600
46,309
89,992
51,559
587,417
182,462
391,881
59,824
1,910,854
341,708
793,302
80,896
3,961,357
221,323
997,813
60,561
32,132
16,118
269,246
2,849
21,340
6,756
368,607
241,472
15,316
503,366
34,785
2,692
DISBU RSEM EN TS
382,756
1934
1935
1936
1937
1938
Unpaid
N ot eligible
for
insurance
protection
Uninsured, unsecured,
not preferred, and not
subject to offset
INSURANCE
Total
Insured
DEPOSIT
Eligible for insurance protection
^1
to
T able 126.
D
is b u r s e m e n t s t o
w it h
P rotect D
e p o s it o r s ,
I n su red B an ks P laced
in
R
R
e c o v e r ie s , a n d
e c e iv e r s h ip
or
AS SHOWN BY BOOKS
M
of
L
osses
erged
by
w it h
th e
th e
F ederal D
F in a n c ia l A
I n s u r a n c e C o r p o r a t io n
e p o s it
id
of
th e
C
o r p o r a t io n ,
in
1934-1946
FDIC, DECEMBER 31, 1946
(Amounts in thousands of dollars)
Types and status of case
T otal
1934
$941
941
1943
1944
1945
$23,880
12,278
11,602
$10,958
1,612
9,346
$7,217
5,500
1.717
$1,515
399
1,116
$1,768
$265
’ 1,768
’ ’ 265
66,297
4,313
61,984
22,885
12,059
10,826
10,046
1,297
8,749
6,914
*,197
1.717
1,475
359
1,116
1,768
255
1,768
255
1937
1938
1939
$8,890
6,025
2,865
$14,833
8,056
6,777
$19,202
12,045
7,157
$30,480
9,087
21,393
$67,804
26,196
41.608
$74,380
4,895
69,485
6,069
4,218
1,851
12,296
6,596
5,700
15,387
9,290
6,097
27,589
7,712
19,877
56,506
17,897
38.609
Recoveries b y F D I C .......................
R eceiverships................................
M ergers...........................................
228,221
69,672
158,549
734
734
E stim at^ of losses b y F D I C .........
Receiverships................................
M ergers...........................................
28,896
16,579
12,317
207
207
2.769
1.769
1,000
2,497
1,460
1,037
3,622
2,571
1,051
2,509
1,187
1,322
9,727
8,080
1,647
5,942
582
5,360
737
214
523
667
290
377
189
189
30
30
T e r m in a t e d liq u id a t io n s
Disbursement by F D I C .................
Receiverships................................
M ergers...........................................
66,824
45,084
21,740
941
941
5.434
5.434
8,374
7,758
616
10,622
8,951
1,671
8,937
6,195
2,742
14,205
8,083
6,122
6,953
4,671
2,282
4,314
1,820
2.494
3,804
824
2.980
2,124
407
1.717
1,116
Recoveries b y F D I C .......................
Receiverships................................
M ergers...........................................
57,927
36,861
21,066
734
734
3.886
3.886
6,807
6,298
509
8,297
6,890
1,407
8,056
5,543
2,513
12,775
6,723
6,052
6,367
4,089
2,278
4,108
1,614
2.494
3,703
723
2.980
2,078
361
1.717
1,116
Losses b y F D I C ...............................
R eceiverships................................
M ergers...........................................
8,897
8,223
674
207
207
1.548
1.548
1,567
1,460
107
2,325
2,061
264
881
652
229
1,430
1,360
70
206
206
101
101
46
46
582
4
1,116
1,116
C O RPORATION
1942
1936
1935
INSURANCE
All banks placed in receivership or
merged
$262,133
Disbursement b y F D I C .................
87,034
R eceiverships................................
175,099
M ergers...........................................
DEPOSIT
Banks placed in receivership or merged in -
FEDERAL
C o n n e c t io n
3,456
591
2,865
6,459
298
6,161
8,580
3,094
5,486
21,543
2,892
18,651
53,599
18,113
35,486
67,427
224
67,203
19,566
10,458
9,108
7,154
788
6,366
5.093
5.093
R ecoveries b y F D I C .............
R eceiverships......................
Mergers................................
170,294
32,811
137,483
2,183
332
1,851
5,489
298
5,191
7,090
2,400
4,690
19,533
2,169
17,364
43,731
11,174
32,557
59,930
224
59,706
18,777
10,445
8,332
6,343
574
5,769
4.836
4.836
Estim ate of losses b y F D IC
R eceiverships......................
M ergers................................
19,999
8,356
11,643
1,221
221
930
1,628
535
1,093
8,297
6,720
1,577
531
' ’ 930
1,297
510
787
5,356
1,000
30
30
523
566
189
377
143
143
‘ 5,356
N um ber of b a n k s....................
399
25
69
75
74
60
43
15
20
5
R eceiverships..........................
M ergers.....................................
245
154
24
1
42
27
50
25
50
24
32
28
19
24
8
7
6
14
4
1
Liquidation term inated........
Receiverships......................
M ergers.................................
281
205
76
56
40
16
60
43
17
58
45
13
38
24
14
24
16
5
4
1
9
4
5
2
1
1
1
1
Liquidation a ctiv e.................
Receiverships......................
M ergers.................................
118
40
78
13
2
15
7
16
5
22
10
11
8
11
3
3
1
1
14
19
3
16
11
8
8
8
4
6
2
9
399
399
359
359
1,768
265
1.768
265
1.768
255
1,768
255
2
1
1
1
1
1
1
1
1
1
1
DISBURSEMENTS
N o t e : Estimates of losses for banks placed in receivership are based on total insured deposits, unpaid as well as paid. For amounts unpaid on insured deposits see Table 125,
P* 171. The disbursements in the receiverships as given in the table are the amounts paid on insured deposits b y December 31, 1946. For estimated additional disbursements
and estimated additional recoveries see Table 4, p. 18.
INSURANCE
195,309
41,950
153,359
DEPOSIT
Active liquidations
Disbursement b y F D IC
R eceiverships......................
Mergers................................
CO
INDEX
IN D E X
Page
Absorptions, consolidations, and mergers:
Of insured banks, 1934-46. See Mergers of insured banks with financial aid
of the Corporation.
Of operating banks, 1946.............................................................................................. 108-109
Accounts in insured commercial banks, number of. See Insurance coverage.
Adjusted capital account. See Capital of banks.
Adjusted liabilities. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Admission to insurance:
Applications approved...................................................................................................7, 20-21
By class of bank, 1946...................................................................................................108-109
44
Number of banks, 1936-1946................................................... ......................................
Possessions where banks are eligible...........................................................................
43
Applications from banks:
For admission to insurance............................................................................................
For approval of capital retirement or reduction.....................................................
For approval of establishment of branches........................................ ......................
20-21
23
22
Appraised value of assets. See Assets and liabilities of insured commercial
banks, examiners’ appraisal.
Assessments on insured banks for deposit insurance:
Amount.....................................................................................................................10, 27, 28, 29
Recommendations of the Corporation........................................................................
12
Assets and liabilities of closed banks. See Receivership, insured banks placed in.
Assets and liabilities of insured commercial banks, examiners’ appraisal:
Banks examined in 1939-1946.......................................................................................
134
Banks examined in 1946, grouped b y amount of deposits..................................
135
Banks examined in 1946, grouped by FD IC District and State.................... 136-137
Definitions of terms used: adjusted liabilities; appraised value; book value;
examiners’ deductions; not criticized; substandard..................................
133
Sources of data...................................................................................................................
133
Substandard assets:
Banking development, with respect to ................................................................
7, 8
Ratio to :
Adjusted capital accounts, 1939-1946............................................................ 56-57
Adjusted capital accounts, distribution of insured commercial banks
56
Total assets, appraised value, 1939-1946......................................................
56
Assets and liabilities of insured mutual savings banks, examiners’ classification:
Definition of terms used: Borderline; specific losses; standard; substandard 71-72
Valuation allowances and charge-offs, treatment o f .............................................. 73-74
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, 1946...........................................130-131
All banks, December 31, 1945, and 1946...................................................................
46
All banks, grouped according to insurance status and type............................. 126-127
All banks, June 29 and December 31, 1946...........................................................122, 123
Commercial banks, December 31, 1945, and 1946.................................................
47
Commercial banks, June 29 and December 31, 1946......................................... 122, 123
Growth..................................................................................................................................
7
Insured banks......................................................................................................................
8
177
178
FEDERAL
D E P O S IT
IN S U R A N C E
C O R P O R A T IO N
Page
Assets and liabilities of operating banks:— Continued
Insured commercial banks:
Call dates, 1941-1946.................................................................................................
128
Charge-offs and recoveries on assets.................................................................... 62-64
December 31, 1946, June 29, 1946, and December 31, 1945.....................124--125
Percentage distribution, call dates, 1941-1946..................................................
129
23
Reports o f........... ...........................................................................................................
Mutual savings banks, December 31, 1945, June 29, 1946, and December 31,
1946......................................................................................................... 47, 48, 122, 123
Noninsured banks, June 29 and December 31, 1946.......................................... 122, 123
Sources of data...................................................................................................................
107
Assets and liabilities of the Federal Deposit Insurance Corporation. .29-30, 31, 34-35
Assets purchased by the Federal Deposit Insurance Corporation:
From banks in receivership to facilitate liquidation............................................. 16, 34
From banks merged with financial aid of the Corporation. See Mergers of
insured banks with financial aid of the Corporation.
Liquidation o f.....................................................................................................................
16
Assets of insured banks, quality of. See Assets and liabilities of insured com
mercial banks, examiners’ appraisal.
Assets pledged to secure bank obligations.......................................................................
125
Bank supervision (See also Examinations of banks):
Activities of the Federal Deposit Insurance Corporation in 1946................
20
State legislation, 1946.........................................................................................25-26, 99-101
Banking offices, establishment of:
Banks beginning operations, 1946................................................................................
108
Branches, establishment approved by Corporation............................................... 21, 45
Branches opened, 1946.....................................................................................................
109
Policy of the Corporation...............................................................................................
22
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, 1946.................................................................................... 108, 109
Branches of insured banks, 1936-1946........................................................................
45
Insured banks, 1936-1946................................................................................................
44
Noninsured banks, 1946..................................................................................................
167
Suspensions 1908 to 1946................................................................................................ 12-13
Banks beginning operations. See Banking offices, establishment of.
Banks in financial difficulties (See also Mergers of insured banks with financial
aid of the Corporation; Receiverships, insured banks placed in):
Depositors protected by the Corporation in closed banks:
Fully protected, in insured banks placed in receivership, or merged with
the financial aid of the Corporation...............................................................
15
Number o f.....................................................................................................................
14
Number of, in insured banks merged with financial aid of the Corporation 14, 15
Number of, in insured banks placed in receivership.......................... 7, 14, 15, 171
Depositors sustaining loss in closed insured banks, number o f .........................
14
Insured banks closed:
Deposits o f....................................................................................................................
14
Deposits protected......................................................................................................15,171
Disbursements by the Corporation in connection with.........................15-18, 171
Loss to depositors............................................................................................. 7, 14, 15, 19
Loss to Federal Deposit Insurance Corporation...................................... 15, 17, 172
Number, 1934-1946..........................................................................................7, 12, 14, 18
14
Methods of handling under existing law ...................................................................
Noninsured bank suspensions, 1943-1946..................................................................
167
Recommendations of the Corporation........................................................................
12
INDEX
179
Page
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, 26
Board of Governors of the Federal Reserve System, data obtained from........... 107, 139
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.
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, profits, and dividends of insured banks):
Adequacy o f .........................................................................................................................
10
Definition of terms used in examiners’ appraisal of:
Adjusted capital accounts; book value of capital accounts; net sound
capital.......................................................................................................................
133
Examiners’ appraisal, insured commercial banks:
In 1939-1946, by years..............................................................................................
134
In 1946, banks grouped by amount of deposits...............................................
135
In 1946, banks grouped by F D IC Districts and State................................136-137
Ratio of adjusted capital accounts to appraised value of total assets,
distribution of banks according to, 1946 and 1938...................................
55
Growth..................................................................................................................................
8
Of insured banks placed in receivership.....................................................................
170
Ratios to assets:
All commercial banks; all mutual savings banks.............................................
54
All commercial banks, historical trend................................................................
54
Insured banks, 1934 to 1946................................................................................... 8, 11
Insured commercial banks............................................................. 54-55, 125, 147, 151
Insured mutual savings banks, 1934, 1941-1946..............................................
165
Ratios to assets other than cash and U. S. Government obligations:
All commercial banks................................................................................................ 54, 55
All mutual savings banks.........................................................................................
54
Recommendations of the Corporation........................................................................
10
Retirement approved and disapproved by the Corporation...............................
23
Total capital accounts:
All commercial and mutual savings banks, December 31, 1945 and
December 31, 1946......................................................................................... 46, 47, 54
Commercial and mutual savings banks, insured and noninsured, June 29,
and December 31, 1946................................................................................... 122, 123
Insured banks................................................................ ..............................................
8
Insured commercial banks............................................................................125, 135-136
Charge-offs by banks. See Earnings, expenses, profits, and dividends of insured
banks.
Class of bank, banking data presented by:
Admissions to and terminations of insurance....................................................... 108, 109
Assets and liabilities.......................................................................................................122, 123
Banks which suspended operations, 1934-1946........................................................
168
Deposits........................................................................................................... 118-119, 122, 123
Earnings of insured commercial banks.................................................................... 144, 145
Insured banks placed in receivership or merged with financial aid of the
Corporation.............................................................................................................
168
Number of banking offices................................................................ ..
108-109, 110-117
Number of banks........................................................................ 108-109, 110-117, 118-119
Classification of banks and banking offices......................................................................
Closed banks. See Banks and branches ceasing operations; Banks in financial
difficulties; Receivership, insured banks placed in.
107
180
FEDERAL
D E P O S IT I N S U R A N C E
C O R P O R A T IO N
Page
Commercial banks. See Assets and liabilities of insured commercial banks,
examiners’ appraisal; Assets and liabilities of operating banks;
Capital of banks; Deposits; Earnings, expenses, profits, and dividends
of insured banks; Number of operating banks and branches.
Comptroller of the Currency:
Data obtained from........................................................................................ ............... 107, 138
Director of Corporation........................................ ....................................... ............... iv, v, 26
Consolidations. See Absorptions, consolidations, and mergers.
Consumer loans. See Instalment loans; Loans by banks.
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 in financial difficulties; Receivership, insured banks
placed in.
Protected in insolvent or hazardous banks suspended or merged. See Banks
in financial difficulties.
Deposits:
Amount of, banks grouped by:
Banks which received financial aid from the-Corporation.................... 7, 168, 169
Insured commercial banks examined in 1946....................................................
135
Business and personal (deposits of individuals, partnerships, and cor
porations) ................................................................................................................ 7, 46
Classified by type of deposit:
All banks, 1945-1946..................................................................................................
46
Commercial banks, 1946........................................................................................122, 123
Insured banks placed in receivership, 1934-1946......................... ....................15,171
Insured commercial banks, call dates, December 31, 1946, June 29, 1946,
and December 30, 1945................................................................................... 124-125
128
Insured commercial banks, call dates, 1941-1946........................ ....................
Insured commercial banks, special call dates, 1936-1945.............................. 80, 82
Percentage distribution of types of deposits, by deposit size of bank,
84
October 10, 1945.............................................................................. ....................
Demand. See Deposits, classified by type of deposit.
Growth..................................................................................................................................
7
Governmental. See Deposits, classified by type of deposit.
Insured and otherwise protected:
In banks merged with financial aid of the Corporation............ ....................
15
In banks placed in receivership............................................................................. 16,171
Interbank. See Deposits, classified by type of deposit.
Interest on time and savings deposits........................................................................
62
Of individuals, partnerships, and corporations, demand and time, amount of,
in insured commercial banks: (See also, Deposits, classified by type of
deposit).
Distributed according to size of account and size of banks, October 10,
1945...................................................................................................... ....................
85
Distributed according to size of account and by State, October 10, 1945 89, 91
Paid and unpaid in closed insured banks. See Banks in 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, in insured banks placed in receivership, 1934-1946..
171
Sources of data...................................................................................................................
171
Subject to offset. See Receivership, insured banks placed in.
Uninsured deposits of insured banks placed in receivership...............................
171
INDEX
181
Page
Deposits m :
All commercial and mutual savings banks:
December 31, 1945, and December 31, 1946...........................................47, 118, 123
June 29, 1946...............................................................................................................
122
June 30 and December 31, 1944-1946............................................................... 126-127
All commercial banks:
Call dates, December 31, 1945, to December 31, 1946............................... 124-125
December 31, 1946.....................................................................................................
118
June 29, 1946................................................................................................................
122
Percentage change, 1946 ...........................................................................................
47
All insured banks:
December 31, 1946.................................................................................................. 118, 123
June 29, 1946................................................................................................................
122
1934-1946.......................................................................................................................
30
June 30 and December 31, 1944-1946............................................................... 126-127
All mutual savings banks:
December 31, 1946...................................................................................................118, 123
June 29, 1946................................................................................................................
122
Bank for which the Corporation is receiver.............................................................
16
Banks located in each State and possession, December 31, 1946.. 118-119, 130-131
Banks which received financial aid from the Corporation.................... 14-15, 168-170
Insured banks merged with financial aid of the Corporation................... 15, 168-170
Insured banks placed in receivership.................................................................15, 168-170
Insured commercial banks:
At time of examination. See Assets and liabilities of insured commercial
banks, examiners’ analysis.
Call dates, December 31,1946, June 29,1946, and December 3 1 ,1 9 4 5 .. 124-125
Call cates, 1941-1946.................................................................................................
128
Call dates, special, 1936, 1938, 1941, and 1945......................80, 82, 84-85, 89, 91
December 31, 1946.................................................................................................. 118, 123
June 29, 1946................................................................................................................
122
Type of deposits...................................................................................... 80, 82, 84, 89, 91
Insured mutual savings banks:
December 31, 1946.................................................................................................. 118, 123
June 29, 1946................................................................................................................
122
Noninsured banks:
December 31, 1946.................................................................................................. 118, 123
June 29, 1946...............................................................................................................
122
June 30 and December 31, 1944-1946............................................................... 126-127
Depreciation. See Earnings, expenses, profits, and dividends of insured banks.
Dividends:
To depositors in mutual savings banks......................................................................
To stockholders of operating insured commercial banks. See Earnings,
expenses, profits, and dividends of insured banks.
162
Earnings, expenses, profits, and dividends of insured banks:
Insured banks:
Losses from defalcations...........................................................................................
8
Net profits.....................................................................................................................
8
Insured commercial banks:
Amounts, 1934-1946.................................. ................................................................
57
Amounts, 1934, 1941-1946..................................................................................... 140-141
Amounts by class o f bank, 1946.......................................................................... 144-145
Amounts by size of bank, 1946............................................................................ 148-149
Amounts by State................................................................................................... 152-161
Charge-offs and recoveries.................................................................................. 57, 62-64
Current operating earnings......................................................................................
57
Current operating expenses..................................................................................... 57,61
Dividends................................................................................................................. 57, 58, 65
Income on loans and securities...............................................................................
60
Income on service charges.......................................................................................
61
Income on U. S. Government obligations..........................................................
60
Interest on deposits.................................................................................................... 62,60
Net earnings........................................................................................................57, 142-150
182
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Earnings, expenses, profits and dividends of insured banks:— Continued
. Insured commercial banks:— Continued
Net losses.......................................................................................................................
58
Net profits....................................................................................... 57, 58, 64-65, 142-150
Profits on sale of assets............................................................................................. 57, 62
Profits retained for addition to capital................................................................
65
Rate of net profit and cash dividends to total capital account, 1934-1946.
64
Rate of net profit on total capital accounts, percentage distribution of
banks, 1938, 1943-1946.......................................................................................
58
Rates of net profits on total capital accounts, by amount of deposits,
59
distribution of banks, 1946...............................................................................
Ratios to average total capital accounts......................................... 59, 142, 146, 150
Ratios to total assets.......................................................... 142-143, 146-147, 150-151
Ratios to total assets, special ratios, etc., by States.................................... 152-161
Ratios to total current earnings.................................................................142,146, 150
Salary and wage expense..........................................................................................
61
Sources of earnings..................................................................................................... 59-61
Taxes..........................................................................................................................57, 62, 64
Insured mutual savings banks:
Amounts, 1934, 1941-1946.....................................................................................162-163
Changes during 1946.............................................. ................................................... 65-67
Ratios to total assets, special ratios, etc., 1934, 1941-1946........................164-165
Sources of data..................................................................................................................
139
Employees:
Federal Deposit Insurance Corporation............................................................... 19, 26-27
Insured commercial banks:
Number and salary, December 31, 1946........................................ 144-145, 148-149
Number and salary, 1943-1946...................................................61, 140-141, 152-161
Insured mutual savings banks, December 31, 1946.............................................162-163
Examinations of banks {see also Assets and liabilities of insured commercial
banks, examiners' appraisal; Capital of banks):
Banks cited for unsafe and unsound practices........................................................
20
Banks examined by the Federal Deposit Insurance Corporation................
19
Data from reports of examination.............................................................................132-137
Definition of terms............................................................................................................
133
Mutual savings banks, new plan of examination for............................................. 71-77
Policy of the Corporation............................................................................. .................
19
Expenses of banks. See Earnings, expenses, profits, and dividends of insured
banks.
Expenses of the Corporation. See Federal Deposit Insurance Corporation.
Facilities provided as agents of the Government. See Number of operating
banks and branches.
Federal bank supervisory authorities. See Board of Governors of the Federal
Reserve System; Comptroller of the Currency; Federal Deposit
Insurance Corporation.
Federal credit unions..... ...............................................................................23, 25, 33, 37, 96-98
Federal Deposit Insurance Corporation:
Actions on applications from banks. See Applications from banks.
Assessments on insured banks................................................................................. 10, 28, 29
Assets and liabilities................................................................................ 29-31, 34-35, 38-39
Audits................................................................................................................................30, 36-40
Banks examined by, and submitting reports t o ...................................... ...............
23
Bank supervision by. See Bank supervision.
Board of Directors......................................................................................................... iv, v, 26
Capital, amount o f................................................................................. 10, 29, 30, 31, 35, 39
Capital and surplus relative to deposits of insured banks, 1934-1946............. 11, 30
Depositors protected by. See Banks in financial difficulties.
Disbursements for protection of depositors............... 7, 14, 15, 18, 168-169, 172-173
Districts................................................................................................................. ............... vi, vii
Divisions............................................................................................................................... iv, 27
INDEX
183
Page
Federal Deposit Insurance Corporation:— Continued
Employees:
19
Examiners, recruitment o f .......................................................................................
Number o f...................................................................................................................... 26,27
Examination of banks. See Examinations of banks.
Expenses............................................................................................................ 10, 27-28, 32, 37
Federal credit union activities, 1944-1945.................................................................
33
Income................................................................................................................10, 27-28, 32, 37
Income and expenses, 1933-1946..................................................................................
29
Insured banks receiving financial aid from. See Banks in financial difficulties;
Mergers of insured banks with financial aid of the Corporation;
Receivership, insured banks placed in.
Insured deposits. See Deposits, insured and otherwise protected.
Loans to and purchase of assets from insured banks. See Mergers of insured
banks with financial aid of the Corporation.
Losses incurred:
During 1946.................................................................................................................. 28-29
During 1934-1946................................................................................ 10, 18, 29, 172-173
Reserve for.................................................................................................................... 34, 37
Ultimate, 1934-1946 (estimated)........................................................................ 7, 17, 18
Methods for protecting depositors. See Banks in financial difficulties.
Officers................................................................................................................................ v, vi, 27
Organization and staff...................................................................................................... iv, 26
Payments to insured depositors....................................................................................16,171
Policies............................................................................................................................... 7, 19, 22
Powers..............................................................................................................................17, 35, 39
Protection of depositors. See Banks in financial difficulties.
Purchase of assets to facilitate completion of liquidation of banks in
receivership.............................................................................................................
16
Receiver for insured banks.............................................................................................
170
Recommendations of the Corporation........................................................................ 10-12
Recoveries from banks in financial difficulties.................................16, 17, 18, 172-173
Regulations................................................................................................................. 25, 102-104
Reports from banks..........................................................................................................
23
Reserves for losses............. ................................................................................................ 34, 37
Supervisory activities........................................... ........................................................... 19-23
Surplus................................................................................................ 10, 28, 30-32, 35, 37, 39
Federal Deposit Insurance Corporation Districts:
Banks classified b y ............................................................................................................
118
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 banks. See Banks in financial difficulties.
Instalment loans, how reported...........................................................................................
Insurance coverage:
Accounts, in insured commercial banks, with coverage of $5,000, $10,000,
and $25,000 per depositor:
Number of, grouped by type of deposit, special call dates, 1936-1945..
Percent of, fully protected, by type of deposit, special call dates,
1936-1945................................................................................................................
Accounts, demand and time, of individuals, partnerships, and corporations,
number of, distributed by size and deposit size of insured commercial
banks, October 10, 1945.....................................................................................
Accounts, of individuals, partnerships, and corporations, number of, in
insured commercial banks, distributed by size and State, October
10, 1945:
Demand..........................................................................................................................
Savings and tim e.........................................................................................................
Changes, October 1934-October 1945.........................................................................
121
83
80
86
88
90
79
184
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Insurance coverage:— Continued
Deposits in insured commercial banks with coverage of $5,000, $10,000
and $25,000 per depositor:
Insured and uninsured, amount of, grouped by type of deposit, special
call dates, 1936-1945............................................................................................
Percent of, fully protected, by type of deposit, special call dates, 19361945...........................................................................................................................
Deposits, demand and time, of individuals, partnerships, and corporations,
amount distributed according to size of account and deposit-size of
insured commercial banks, October 10, 1945..............................................
Deposits of individuals, partnerships, and corporations, amount in insured
commercial banks, distributed by size of account and by State,
October 10, 1945:
Demand..........................................................................................................................
Savings and time.........................................................................................................
82
80
85
89
91
Insured status, banks classified by:
Assets and liabilities o f................................................................................122,123, 126-127
Deposits o f........... ...........................................................................................118-119, 126-127
Number o f....................................................................................................... 108-119, 126-127
Insured banks. See:
Absorptions, consolidations, and mergers;
Admission to insurance;
Assets and liabilities of insured commercial banks, examiners’ appraisal;
Assets and liabilities of insured mutual savings banks, examiners’
classification;
Assets and liabilities of operating banks;
Banking offices, establishment of;
Banks and branches ceasing operations;
Banks in financial difficulties;
Capital of banks;
Class of bank, banking data presented by;
Deposits;
Deposits in;
Earnings, expenses, profits, and dividends of insured banks;
Employees;
Examinations of banks;
Insurance coverage;
Loans by 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;
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.........................
23
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, profits, and dividends of insured banks.
Investments of banks. See Assets and liabilities of insured commercial banks;
examiners’ appraisal; Assets and liabilities of operating banks;
Securities.
Law, violations of by insured banks..................................................................................
20
INDEX
185
Page
Legislation related to banking and deposit insurance:
Federal, enacted in 1946:
Administrative Procedure A ct................................................................................
24
Federal Credit Unions..........................................................................................25, 96-98
Saturday closing of banks, District of Columbia............................................. 26, 98
Statute of limitation on Government checks.................................................... 24, 95
Recommended by the Corporation.............................................................................. 11,12
State, enacted in 1946........................................................................................25-26, 99-101
Liquidation, banks placed in.................................................................................... 108, 166-173
Loans by banks: See also Assets and liabilities of operating banks.
Amounts and types:
All types.............................................................................................................. 9, 46, 47, 52
Commercial and industrial...................................................................................... 9, 52
Consumer....................................................................................................................... 9, 52
Real estate..................................................................................................................9, 52, 53
Changes in type, insured commercial banks............................................................
52
Examiners’ evaluation. See Assets and liabilities of insured commercial
banks, examiners’ appraisal.
Interest on. See Earnings, expenses, profits, 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, profits, and dividends of
insured banks.
Of depositors. See Banks in financial difficulties, Receivership, insured
banks placed in.
Of the Federal Deposit Insurance Corporation. See Federal Deposit In
surance Corporation.
Provision for, in mutual savings banks.....................................................................
73
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
in financial difficulties):
Banks cited for unsafe and unsound practices........................................................
20
Classification of banks merged......................................................................................
168
Collections by Corporation on assets purchased or held as collateral.. . .172-173
Deposits protected............................................................................................................. 12,15
Disbursements by Corporation........................................... 14, 17, 18, 168-169, 171-173
Loans made and assets purchased by the Corporation........................................
14
Losses incurred by Corporation................................................................... 17, 18, 172-173
Name and location of bank merged, 1946.............................................17,170
Number of banks merged.......................................................... 7, 14-15, 18, 168-169, 173
Number of depositors.......................................................................................................
15
Procedure............................................................................................................................. 17,167
Recoveries by the Corporation..................................................................... 17, 18, 172-173
Mutual savings banks:
Insured:
Assets and liabilities, June 29 and December 31, 1946..................... 122, 123
Assets and liabilities, examiners* classification................................................. 71-72
Deposits.................................................................................................... 118, 119, 122, 123
Earnings, expenses, profits and dividends.......................................... 65-67, 162-165
Examination.................................................................................................................. 71-77
Number.........................................................................................................................108-119
Insured and noninsured:
Assets and liabilities, December 31, 1946 and 1945...........................
47
Assets and liabilities, June 29 and December 31, 1946..................... 122, 123
Classification.................................................................................................................
107
Deposits, by State, December 31, 1946..........................................118-119
Number.........................................................................................................................108-119
186
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
National banks. See Class of bank, banking data presented by.
Net earnings of insured commercial banks. See Earnings, expenses, profits, and
dividends of insured banks.
Net profits of insured commercial banks. See Earnings, expenses, profits, 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;
Admission to insurance;
Assets and liabilities of operating banks;
Capital of banks;
Class of bank, banking data presented by;
Deposits;
Number of operating banks and branches.
Number of operating banks and branches:
Admitted to insurance..................................................................................... 44, 45, 108-109
Approved for admission to insurance.......................................................................... 20, 21
All banks:
Changes during 1946..........................................................................43, 46, 47, 108-109
December 31, 1946, by class of bank, F D IC district, and States and
possessions............................................................................................................ 118-119
June 29 and December 31, 1946.......................................................... ............... 122, 123
All banks and branches:
Changes during 1946............................................................................... ..
43, 108-109
Changes during 1941-1946.......................................................................................
43
December 31, 1946, by class of bank and States and possessions........... 110-117
Banks operating branches............................................................................................ 110-117
Branches:
Changes during 1946................................................................................. 43, 45, 108-109
Changes during 1936-1946.......................................................................................
45
December 31, 1946, by class of bank and States and possessions.. . .110-117
Commercial banks:
Changes during 1946......................................................................................... 47, 108-109
December 31, 1946, by class of bank, F D IC district, and States and
possessions.............................................................................................................118-119
June and December 31, 1946............................................................................... 122, 123
Insured banks:
Branches.........................................................................................................................
45
Changes, 1936-1946....................................................................................................
44
December 31, 1946..................................................................................................... 43,44
Insured commercial banks:
Changes during 1946............................................................................................... 108-109
December 31, 1946, by FD IC district, and States and possessions.. . .118-119
December 31, 1946, June 29, 1946, and December 31, 1945.....................124-125
Examined in 1946 by amount of deposits..........................................................
135
Operating throughout 1946, by amount of deposits................... ...................
149
Mutual savings banks. See Mutual savings banks.
Noninsured banks:
Changes during 1946.................................................................................43, 44, 108-109
December 31, 1946, by class of bank, FD IC district, and States and
possessions............................................................................................................ 118-119
June 29 and December 31, 1946..........................................................................122, 123
Termination of insurance............................................................................ .................... 44,45
Unit banks, December 31, 1946, by class of bank and States and pos
sessions .................................................................................................................. 110-117
Officers, active, of insured banks. See Employees.
Officers and employees of the Federal Deposit Insurance Corporation
Operating banks. See Number of operating banks and branches.
INDEX
187
Page
Payments to depositors in closed insured banks. See Receivership, insured banks
placed in.
Polk’s Bankers Encyclopedia, data obtained from.......................................................
107
Possessions, banks and branches located in:
Deposits o f.........................................................................................................................118-119
Number o f....................................................................................................... 110-117, 118-119
Postal savings deposits. See Deposits, classified by type of deposit.
Preferred deposits. See Deposits, secured and preferred.
Profits. See Earnings, expenses, profits, and dividends of insured banks.
Protection of depositors. See Banks in financial difficulties; Deposits, insured
and otherwise protected.
Public funds. See Deposits, classified by type of deposit.
Publications of the Corporation.....................................................................................23, 24, 30
Purchase of bank assets by Corporation. See Assets purchased by the Federal
Deposit Insurance Corporation.
Rand McNally Bankers Directory, data obtained from...........................................
107
Real estate:
Acquired by mutual savings banks, examiners’ appraisal o f..............................
Loans on. See Loans by banks.
75
Receivership, insured banks placed in (see also Banks in financial difficulties):
Activities of Corporation as receiver o f..............................................................15, 16, 170
Assets and liabilities of, at dates of suspension, 1934-1946...............................
170
Depositors:
Extent of protection by insurance........................................................................
•171
Losses.............................................................................................................................. 15,19
Methods of protection...............................................................................................
14
Number eligible for protection, paid and unpaid.............................................
171
Number...........................................................................................................................15, 171
Payments to .......................................................................................................... 14, 16, 171
Deposits:
Amounts, 1934-1946......................................................................................... 15, 168, 170
Insured, paid and unpaid by December 31, 1946............................................ 16,171
Not eligible for insurance protection....................................................................
171
Paid and unpaid, December 31, 1946.................................................................. 16,171
Secured, preferred, and subject to offset............................................................ 16,171
Unclaimed accounts....................................................................................................
15
Uninsured...................................................................................................................... 16, 171
Disbursements by the Corporation.................................................................... 18, 168-169
Losses by Corporation on disbursements................................................. 17, 18, 172-173
Name and location of, during 1946.............................................................................
170
Number of banks......................................................................... 7, 12, 14, 18, 168-169, 173
Payments to depositors............................................................................................ 15-16, 171
Recoveries by the Corporation on disbursements.......................... 16, 17, 18, 172—173
Receivers............................................................................................................................167, 170
Sources of data................................................................................................................. 166-167
Reconstruction Finance Corporation, capital of insured banks held by:
Amount, total and portion repaid................................................................................
Number of banks...............................................................................................................
Recommendations of the Federal Deposit Insurance Corporation..................
Retirements approved by Federal Deposit Insurance Corporation.................
8
8
10
23
Recoveries:
By banks on assets charged off. See Earnings, expenses, profits, and dividends
of insured banks.
By the Corporation on disbursements........................................................16-18, 172-173
188
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Reports from banks............................................................................................. ...................
23
Reserves:
In bank assets and liabilities. See Assets and liabilities of operating banks.
Of Federal Deposit Insurance Corporation.........................................................31, 34, 38
Salaries and wages:
Federal Deposit Insurance Corporation.................................................................... 27, 28
Insured banks. See Earnings, expenses, profits, and dividends of insured
banks.
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:
63
Charge-offs on securities held by insured banks.....................................................
Examiners’ appraisal of, method used........................................................................
76
Held by Federal Deposit Insurance Corporation..............................................31, 34, 38
Held by insured banks placed in receivership, 1934-1946...................................
170
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, profits, and
dividends of insured banks.
Profits on securities sold by insured banks. See Earnings, expenses, profits,
and dividends of insured banks.
Rate of income on ..................................................................... 143, 147, 151, 152-160, 165
United States Government obligations:
Held by all banks, December 31, 1945 and December 31, 1946..................46, 47
Held by commercial and mutual savings banks, changes during 1 9 4 6 ...
47
Held by Federal Deposit Insurance Corporation................................ 29-31, 34, 38
Held by insured commercial banks, 1941-1946................................................. 48-50
Held by insured banks placed in receivership or merged with financial
aid of the Corporation........................................................................................
170
Types and maturities held by insured commercial banks, 1946,1945,1941
49
Size of banks, banks classified by. See Deposits, amount of banks grouped by.
State and local government obligations............................................................................
State and local government obligations in relation to total capital accounts
of banks reporting to the Corporation..........................................................
9, 51
51
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...........................................................................................................
107
State legislation regarding.............................................................................................. 99-102
State, banking data classified by:
Deposits, December 31, 1946:
Commercial banks, insured and noninsured.................................................... 118-119
Mutual savings banks, insured and noninsured............................................. 118-119
Deposits and accounts in insured commercial banks, October 10, 1945:
Demand deposits of individuals, partnerships and corporations........... 87, 88-89
Time deposits of individuals, partnerships and corporations..................87, 90-91
Disbursements by the Corporation, 1934-1946........................................................
169
Earnings, expenses, profits, and dividends of insured commercial banks,
1946.........................................................................................................................152-161
Number and deposits of insured banks placed in receivership or merged with
the financial aid of the Corporation.............................................................
169
INDEX
189
Page
State, banking data classified by:— Continued
Number of operating banks or offices, December 31, 1946:
All banking offices, by class of bank and type of office...............................110-117
All banks...................................................................................................................... 118-119
Commercial banks, insured and noninsured.................. .................................118-119
Mutual savings banks, insured and noninsured.............................................118-119
Real estate loans, percentage increases during 1946............................................. 52, 53
Stockholders of banks:
Losses of. See Banks in financial difficulties.
Net profits of insured commercial banks, available for. See Earnings, ex
penses, profits, and dividends of insured banks.
Substandard assets. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Supervision. See Bank supervision.
Suspensions. See Banks in financial difficulties; Receivership, insured banks
placed in.
Taxes paid by insured banks. See Earnings, expenses, profits, and dividends
of insured banks.
Terminations of insurance for unsafe and unsound practices. See Number of
operating banks and branches.
Time and savings deposits. See Deposits, classified by type of deposit.
Trust companies:
Classification o f..................................................................................................................
107
Number not engaged in deposit banking............................................. 118-119, 122, 123
Unit banks. See Number of operating banks and branches.
United States Government obligations. See Assets and liabilities of insured
commercial banks, examiners’ appraisal; Assets and liabilities of
operating banks, Securities.
Unsafe and unsound banking practices:
Actions of the Corporation.............................................................................................
Number of banks cited....................................................................................................
20
20
Unsecured deposits. See Receivership, insured banks placed in.
Valuation allowances:
Commercial banks.............................................................................................................
Mutual savings banks......................................................................................................
121
73
Valuation charge-off account, mutual savings banks............................................... 73-74
Violations of law or regulations...........................................................................................
20