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ANNUAL REPORT
OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION
FOR THE YEAR ENDED
DECEMBER 31,1947
L E T T E R OF T R A N S M IT T A L
F e d e r a l D e p o sit In su ra n c e C o r p o r a tio n
Washington, D. C., June 24, 1948.
SIRS: Pursuant to the provisions of subsection (r) of section
12B of the Federal Reserve Act, as amended, the Federal Deposit
Insurance Corporation has the honor to submit its annual report.
Respectfully,
M a p le T . H a r l,
T
he
P r e s id e n t P ro T
T he Spe ak er
of t h e
em pore
H
ou se
of
of
the
Sen ate
R e p r e s e n t a t iv e s
Chairman
FEDERAL DEPOSIT INSURANCE CORPORATION
FEDERAL DEPOSIT INSURANCE CORPORATION
N a t i o n a l P r e s s B u i l d i n g — W a s h i n g t o n 25, D. C.
BOARD OF DIRECTORS
Chairman................................................................................ M a p l e T. H a r l
(H . E. C ook
Directors............................................................................... <
( P reston D elano
OFFICIALS—JUNE 24, 1948
Secretary................................................................................. Miss E. F. Downey
Executive Officer.....................................................................Walter F. Oakes (Acting)
Deputy to Chairman..............................................................Lyle L. Robertson
Assistant to Director..............................................................Albert G. Towers
Associate General Counsel.................................................... Norris C. Bakke
Chief, Division of Examination.......................................... Vance L. Sailor
Assistant Chief, Division of Examination
(Federal Credit Union Section)................................... C. R. Orchard
Chief, Division of Research and Statistics.........................Miss Florence Helm (Acting)
Director of Personnel............................................................ Randolph Hughes
Chief, Service Division.......................................................... Henry T. Ivey
Chief, Division of Liquidation.............................................Edward C. Tefft
Fiscal Agent........................................................................... W. G. Loeffler
Chief, Audit Division............................................................Mark A. Heck
V
DISTRICT OFFICES
D is t.
No.
S u p e r v is in g
E x a m in e r
A ddress
S t a t e s in d is t r ic t
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
City National Bank
Ohio, Pennsylvania
Building, 20 East Broad
Street, Columbus 15, Ohio
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. John E. Freeman
625 First National Bank
Building, Atlanta 3, Ga.
Georgia, Florida, Alabama,
Mississippi
6. W . Clyde Roberts
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. E. R. Gover
741 Federal Reserve Bank
Building, 164 W. Jackson
Blvd., Chicago 4, 111.
Illinois, Iowa
9. Chas. F. Alden
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
11. Linton J. Davis
Federal Reserve Bank
Building, Station K,
Dallas 13, Tex.
Nebraska, Kansas,
Oklahoma, Colorado,
Wyoming
Louisiana, Texas,
New Mexico, Arizona
12. William P. Funsten Suite 1120, 315 Montgomery Idaho, Utah, Nevada,
Street, San Francisco 4,
Washington, Oregon,
Calif.
California
FEDERAL D EPO SIT INSURANCE CORPORATION DISTRICTS
Vll
District 2 includes Puerto Rico £ Virgin Islands
District 4* includes District of Columbia
District IX includes Hawaii & Alaska
CONTENTS
Summary...........................................................................................................................
Page
3
PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION
Introduction......................................................................................................................
Deposit insurance protection.........................................................................................
Supervisory activities.....................................................................................................
Legal developments.........................................................................................................
Organization and financial statements of the Corporation.....................................
7
10
18
24
26
PART TWO
BANKING DEVELOPMENTS
Banks and branches........................................................................................................
Assets and deposits.........................................................................................................
Capital...............................................................................................................................
Earnings of insured commercial banks........................................................................
Earnings of insured mutual savings banks................................................................
39
41
47
51
60
PART THREE
LOANS OF INSURED COMMERCIAL BANKS, 1934-1947
Loans of insured commercial banks, 1934-1947........................................................
65
PART FOUR
LEGISLATION AND REGULATIONS
Federal legislation...........................................................................................................
Ruling of Commissioner of Internal Revenue...........................................................
Regulations of the Corporation.....................................................................................
State banking legislation................................................................................................
77
82
84
85
PART FIVE
STATISTICS OF BANKS AND 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
96
110
122
130
158
LIST OF CHARTS
Organization chart of the Federal Deposit Insurance Corporation.......................
Page
iv
Map: Federal Deposit Insurance Corporation districts..........................................
vii
A.
Disbursements by the Corporation to protect depositors in insured banks,
1934-1947...................................................................................................................
B.
(Map). Location of the 404 banks involving disbursements by the Cor
poration to protect depositors, 1934-1947..........................................................
13
C.
(Map). Insured banks as a percentage of all banks, December 31, 1947..
39
D.
(Map). Percentage change in total assets of all banks, December 31, 1945
to December 31, 1947.............................................................................................
42
E.
(Map). Ratios of total capital accounts to total assets, commercial banks,
December 31, 1947..................................................................................................
48
F.
(Map). Net additions to capital from profits as a proportion of net profits
after taxes during 1946 and 1947, insured commercial banks.......................
49
G.
Operating experience of insured commercial banks, 1946-1947...................
53
H.
(Map). Rates of net earnings and net profits, insured commercial banks,
1947............................................................................................................................
59
I.
Loans of insured commercial banks, 1934-1947................................................
67
J.
(Map). Percentage increase in total loans, insured commercial banks,
December 31, 1934-1947.........................................................................................
68
K.
(Map).Percentage increase in loans, insured commercial banks, December
31, 1945 to December 31, 1947.............................................................................
70
12
LIST OF TABLES
PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION
D e p o s it in s u r a n c e p r o t e c t io n :
1.
Number of depositors, amount of deposits, recoveries, and losses in
insured banks placed in receivership or merged with the financial aid
of the Corporation, 1934-1947..........................................................................
14
2.
Payment by the Corporation and receivers of deposits in insured
banks placed in receivership, 1934-1947.......................................................
14
3.
Disbursements to protect depositors, recoveries, and losses by the
Corporation from insured banks placed in receivership or merged with
its financial aid, 1934-1947................................................................................
16
4.
Loss to the Corporation and its relation to the deposits of insured
banks placed in receivership or merged....................................................
17
S u p e r v is o 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,
1936-1947.............................................................................: .................................
19
6.
Unsafe or unsound banking practices and violations of law or regula
tions charged against six banks by the Corporation during 1947___
20
7.
Actions by the Federal Deposit Insurance Corporation on applica
tions from banks for admission to insurance, 1935-1947........................
21
8.
Actions by the Federal Deposit Insurance Corporation on applica
tions for approval of establishment or continued operation of branches,
1935-1947
22
X
LIST OF TABLES
xi
Page
O r g a n iz a t i o n a n d f i n a n c i a l s t a t e m e n t s o f t h e c o r p o r a t io n :
9.
Officers and employees of the Federal Deposit Insurance Corporation,
December 31, 1947........................................................................................
27
10.
Income and expenses of the Federal Deposit Insurance Corporation
since beginning operations...........................................................................
28
11.
Income and expenses of the Federal Deposit Insurance Corporation,
calendar year 1947........................................................................................
29
12.
Assets and liabilities of the Federal Deposit Insurance Corporation,
1934-1947
30
13.
Assets and liabilities of the Federal Deposit Insurance Corporation,
December 31, 1947, and December 31, 1946...........................................
31
14.
Asset and liability and income statements of the Federal Deposit
Insurance Corporation— from Auditors’ Report for year ended
June 30, 1947.................................................................................................
34
PART TWO
BANKING DEVELOPMENTS
B anks and bran ch es:
15.
Changes in number of insured and noninsured banks and branches
in the United States and possessions, 1947 and the period, 1942-1947
40
A sse ts a n d d e p o s it s :
16.
Assets and liabilities of all banks in the United States and posses
sions, December 31, 1947, 1946, and 1945...............................................
43
17.
Assets and liabilities of all commercial banks in the United States
and possessions, December 31, 1947, June 30, 1947, December 31,
1946, and 1945................................................................................................
44
18.
Commercial bank loans guaranteed or insured by agencies of the
United States Government, December 31, 1947.....................................
45
19.
Maturities of United States Government obligations held by insured
commercial banks, December 31, 1947, 1946, and 1945.......................
46
20.
Assets and liabilities of all mutual savings banks in the United
States, December 31, 1947, 1946, and 1945.............................................
47
21.
Maturities of United States Government obligations held by mutual
savings banks, December 31, 1947............................................................
47
22.
Capital accounts and capital ratios of all commercial banks in the
United States and possessions, December 31, 1947, 1946, and 1945..
49
23.
Regional distribution of insured commercial banks according to
ratio of adjusted capital accounts to appraised value of total assets,
examinations in 1947....................................................................................
50
24.
Substandard asset ratios of insured commercial banks examined in
1939-1947........................................................................................................
51
25.
Distribution of insured commercial banks according to ratio of
substandard assets to adjusted capital accounts, examinations in
1947, 1946, and 1945.....................................................................................
51
C a p it a l :
E a r n in g s o f in s u r e d c o m m e r c ia l b a n k s :
26.
Earnings, expenses, and profits of insured commercial banks, 19341947..................................................................................................................
52
27.
Selected operating ratios of insured commercial banks, 1941, 19451947..................................................................................................................
54
28.
Distribution of earnings and expenses of insured commercial banks,
1941, 1945-1947.............................................................................................
55
xii
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
E a r n i n g s o f i n s u r e d c o m m e r c i a l b a n k s — Continued
29.
Comparison of average number and average salary of employees of
insured commercial banks, 1941, 1946, and 1947...................................
55
30.
Percentage distribution of insured commercial banks grouped by
rate of net profit on total capital accounts, 1941, 1945-1947..............
57
31.
Net earnings and net profits ratios of insured commercial banks
grouped by amount of deposits, 1947.......................................................
58
E a r n in g s o f in s u r e d m u t u a l s a v in g s b a n k s :
32.
Amounts and average rates of income received and dividends paid
by insured mutual savings banks, 1943-1947..........................................
61
PART THREE
LOANS OF INSURED COMMERCIAL BANKS, 1934-1947
L o a n s o f i n s u r e d c o m m e r c ia l b a n k s , 1934-1947:
33.
Loans of insured commercial banks by major type of loan, 1934-1947
66
34.
Income and charge-offs on loans of insured commercial banks,
1935-1947........................................................................................................
73
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
N u m b e r , o f f ic e s , a n d d e p o s it s o f o p e r a t in g b a n k s :
Explanatory note.......................................................................................................
96
101.
Changes in number and classification of operating banks and branches
in the United States and possessions during 1947.................................
98
102.
Number of operating banks and branches, December 31, 1947
Grouped according to insurance status and class of bank, and by
State and type of office...............................................................................
100
103.
Number and deposits of operating banks, December 31, 1947
Banks grouped according to insurance status and by district and State
108
A s se t s a n d l i a b i l i t i e s o f o p e r a t in g b a n k s :
Explanatory note.......................................................................................................
I ll
104.
Summary of assets and liabilities of operating banks in the United
States and possessions, June 30, 1947
Banks grouped according to insurance status and type of bank..........
112
105.
Summary of assets and liabilities of operating banks in the United
States and possessions, December 31, 1947
Banks grouped according to insurance status and type of bank...........
113
106.
Assets and liabilities of operating insured commercial banks, Decem
ber 31, 1947, June 30, 1947, and December 30, 1946............................
114
107.
Assets and liabilities of all operating banks, call dates, 1942-1947..
116
108.
Assets and liabilities of operating insured banks, call dates, 1942-1947
117
109.
Assets and liabilities of operating commercial banks, call dates,
1942-1947....................................................................................... ................
118
110.
Assets and liabilities of operating insured commercial banks, call
dates, 1942-1947............................................................................................
119
111.
Assets and liabilities of all operating banks in the United States and
possessions, December 31, 1947
Banks grouped by district and State........................................................
120
LIST OF TABLES
xiii
Page
E xaminers ’
evaluation of insured commercial b a n k s :
Explanatory note...............................................................................................................
123
112.
Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1939-1947...................................................
124
113.
Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1947
Banks grouped according to amount of deposits.......................................
126
114.
Examiners’ appraisal of assets, liabilities, and capital of insured
commercial banks examined in 1947
Banks grouped by Federal Deposit Insurance Corporation district and
State......................................................................................................................
E arnings ,
128
expenses , and dividends of insured b an k s :
Explanatory note...............................................................................................................
131
115.
Earnings, expenses, and dividends of insured commercial banks,
1934, 1941-1947....................................................................................................
132
116.
Ratios of earnings, expenses, and dividends of insured commercial
banks, 1934, 1941-1947.......................................................................................
134
117.
Earnings, expenses, and dividends of insured commercial banks, 1947
By class of bank................................................................................................
136
118.
Ratios of earnings, expenses, and dividends of injured commercial
banks, 1947
By class of bank................................................................................................
138
119.
Earnings, expenses, and dividends of insured commercial banks
operating throughout 1947
Banks grouped according to amount of deposits.......................................
140
120.
Ratios of earnings, expenses, and dividends of insured commercial
banks operating throughout 1947
Banks grouped according to amount of deposits.......................................
142
121.
Amounts and ratios of earnings, expenses, and dividends of insured
commercial banks, by State, 1947..................................................................
144
122.
Earnings, expenses, and dividends of insured mutual savings banks,
1934, 1941-1947....................................................................................................
154
123.
Ratios of earnings, expenses, and dividends of insured mutual savings
banks, 1934, 1941-1947.......................................................................................
156
D eposit
insurance disbursements :
Explanatory note...............................................................................................................
124.
159
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,
1934-1947
Banks grouped by class of bank, year of disbursementj amount of
deposits, and State............................................................................................
160
125.
Assets and liabilities of insured banks placed in receivership and of
insured banks merged with the financial aid of the Federal Deposit
Insurance Corporation, 1934-1947
As shown by books of bank at date of closing............................................
162
126.
Name, location, Federal Deposit Insurance Corporation disburse
ment, and assets and liabilities of insured banks merged with the
financial aid of the Corporation during 1947..............................................
163
127.
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, 1934-1947
As shown by books of FDIC , December 81, 1947....................................
164
SUMMARY
Sum m ary
The 14 years of operation of the Federal Deposit Insurance Corporation
have been a period in which business and bank failures have been at
a relatively low rate. For this reason the cost incurred by the Federal
Deposit Insurance Corporation in protecting depositors in closed banks
during this period cannot be used as the basis for estimating the future
cost of deposit insurance. The Corporation has disbursed $308 million
in aid to banks in difficulty. It is estimated that all but about 8 percent
of this amount will be recovered. (Pp. 10-11, 16-18, 31.)
The surplus accumulated by the Corporation during this extraordinarily
favorable period has amounted to $923 million, or more than three times
the original capital subscribed by the United States Treasury and Federal
Reserve banks. In August 1947 the Corporation was authorized by law
to retire the original capital, subject to the maintenance of a minimum
combined capital and surplus of $1 billion. It is expected that this retire
ment will be completed during 1948. (Pp. 7-8, 30-31.)
In about one-fourth of the 404 closed banks to which the Corporation
has extended aid to protect depositors, defalcation has been the principal
cause of failure. Banks are urged to provide more adequate fidelity bond
protection against defalcation. (Pp. 9, 19-20.)
The smallness of the capital equities of banks remains a serious problem.
Nearly 4,000 insured banks had capital accounts, when examined in
1947, amounting to less than 5 percent of their assets; 54 had less than
23^ percent. At the close of 1947, total capital accounts of all commercial
banks were only
percent of their total assets, and less than 21 percent
of their assets other than cash and United States Government obligations.
(Pp. 48-50.)
The proportion of total bank assets consisting of loans increased
substantially during 1946 and 1947, rising from 16 to 25 percent for
insured commercial banks. The expansion in loans was especially rapid
in the second half of each year. (Pp. 41, 65.)
Dividends paid by insured commercial banks were larger in 1947 than
in any previous year. With lower net profits after taxes, the amount of
earnings retained in capital accounts was substantially smaller than in
1946, though more than in any year prior to 1944. (Pp. 52, 60.)
3
PART ONE
POLICIES AND OPERATIONS OF THE CORPORATION
I ntroduction
Contrary to most of the forecasts, the year 1947 proved to be one of
active business and widespread prosperity. Many observers, however,
were alarmed by the inflationary pressures which threatened to attain
serious proportions. Recognizing the danger inherent in the volume of
bank credit which had been greatly inflated in response to the needs for
financing the war effort, the Board of Directors of the Federal Deposit
Insurance Corporation, in cooperation with the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, and the
Executive Committee of the National Association of Supervisors of State
Banks in November, 1947, announced a bank credit policy designed to
alleviate the situation. Not only did this policy embody the views of the
supervisory authorities, but it was also in agreement with the program
of credit control advocated by the American Bankers Association. The
policy statement called upon bank directors to exercise extreme caution
in their lending policies. Banks were urged to curtail all loans of a specu
lative nature on real estate, commodities, and securities and to guard
against the over-extension of consumer credit.
The expansion in bank loans during 1947 was general throughout the
country, but marked divergencies appeared in the rate of increase in
different types of loans and in various sections of the country. Regional
differences were also evident in the margin of capital funds available in
banks to absorb losses which are inevitable in the banking business.
However, examinations made during the year revealed that only a small
percentage of assets were below the standard acceptable for bank in
vestment.
Recentralization of offices of the Corporation. In 1947 the effi
ciency of operation of the Corporation was improved by the return of the
Divisions which had been moved to Chicago in June 1942 to make more
space available in Washington for war agencies. For the last two years
effort had been made to secure necessary space in Washington. By the close
of 1947 all the Divisions of the home office were again located in Wash
ington.
Retirement of the capital of the Corporation. The most important
event of 1947 for the Corporation was the beginning of a program of
capital retirement which had been originated and sponsored by its
Board of Directors in 1946. These retirements were made pursuant to
the provisions of Public Law 363, 80th Congress, approved August 5,
1947. By December 31, 1947, the $139 million paid in by the Federal
Reserve banks in the form of capital subscriptions had been retired in
full by payments to the United States Treasury. Of the $150 million
7
8
FEDERAL DEPOSIT INSURANCE CORPORATION
capital stock originally purchased by the United States Treasury, $47
million had been retired and provision had been made to retire an addi
tional $20 million face value. A balance of less than $83 million held by
the United States Treasury remained in the capital stock account when
the books of the Corporation were closed as of December 31, 1947. Under
the provisions of the Act, payments in units of $10 million are being made
whenever the capital and surplus of the Corporation exceeds $1 billion.
It is estimated that all the capital stock will be retired before the close
of 1948.
Bank capital. A second important development in the program of
bankers to free themselves from subsidy by the Government was the
retirement in 1947 of additional amounts of the capital invested in banks
by the Reconstruction Finance Corporation.
Since the inauguration of deposit insurance in 1934 the Corporation
has constantly called attention to the need for adequate capital in all
insured banks. In the depths of the depression when it seemed impossible
to secure adequate private capital, the Reconstruction Finance Corpora
tion invested more than $1 billion in the capital of over 6,000 banks.
This was intended as a temporary investment only. Banks were urged
to repay this governmental subsidy as rapidly as they could, maintaining
at the same time adequate capital in each bank. By the close of 1947
more than 5,000 banks had completed the retirement of this capital
and only $142 million remained outstanding.
On the whole, however, capital margins have been declining during
the 14 years. On June 30, 1934, the date of the first report of insured
banks to this Corporation, the ratio of total capital accounts to total
assets was 14.3 percent; on December 31, 1947, the ratio was 6.6 percent.
During this period total capital accounts in all insured banks increased
by $4,624 million while total assets increased by $121,655 million. Al
though banks have sold capital stock to the investing public, most of
the increase in total capital accounts has been derived from retained
earnings.
The probable risk pertaining to the different types of assets held by
banks is considered a pertinent factor in appraising the need for capital.
The rapid expansion in bank assets during the war was concentrated in
assets which involved little risk of loss if held to maturity. Since the war,
bank loans have expanded, while a decline has occurred in the amount
of United States Government obligations held by banks. The ratio of
capital accounts of all insured banks to assets other than cash and United
States Government obligations declined from 25.4 percent at the end of
1945, to 20.9 percent at the end of 1947.
Provision for bank losses on assets. For all types of assets, banking
history in the United States has shown a high concentration of losses
INTRODUCTION
9
in a relatively small number of years. Bankers have been urged, therefore,
to write off their losses as soon as they become apparent, and regularly
to provide reserves for future losses. The extent to which this policy has
been followed is indicated by the small amount of substandard assets
held by banks in recent years. During the examinations made in 1947
examiners found that less than 1 percent of the assets of insured commer
cial banks were below the standards set for bank investments. Small as
the percentage was it represented a slight increase from the previous
year, in contrast to the steady decline which has been reported from year
to year since the beginning of deposit insurance.
The fact that losses on loans may be low for a number of years and
then be relatively high for a few years was recently given official recogni
tion by the Bureau of Internal Revenue. Following discussions with a
number of people interested in the welfare of banks, including a repre
sentative of this Corporation, the Bureau of Internal Revenue issued
a ruling in December 1947, designated mimeograph No. 6209. This
ruling extended to 20 years the period for which, the annual average of
the rate of loss on loans was to be calculated and clarified the procedure
to be followed by banks claiming a deduction from taxable income for
reserves established to cover such losses. The ruling provided an incentive
in the form of income tax reduction to the accumulation by banks of
reserves for losses on loans.
Provision for bank losses by defalcation. Approximately onefourth of the 404 banks which the Corporation has assisted because of
financial difficulties have been placed in this unfortunate position because
of defalcations. A sample survey of insured banks examined in 1947
indicated that less than one-half of the banks were meeting even the
minimum standard suggested by the banks themselves through the
American Bankers Association. Since stockholders must bear, to the
extent of their total capital, losses which exceed the amount of the insur
ance protection, it is to their direct advantage to provide a safe margin
of protection. The Corporation, bank supervisory agencies, and bankers
association have called to the attention of bankers the rapid expansion
of bank assets since 1941 which necessitates an examination of the
adequacy of the fidelity coverage.
Responsibilities of the Corporation. The Corporation was created
to protect bank depositors from losses arising from bank failures. The
value of deposit insurance to the banking system and to the people of
the nation arises not only from the ability of the Corporation to fulfill
its responsibilities but also from a continued awareness on the part of
bank depositors of the protection afforded by this Corporation. Memories
of the severe banking crisis of 1933 are fading; in fact, a large proportion
of present-day bank depositors have never had any personal experience
with a banking crisis. The number of bank failures in the last 14 years
10
FEDERAL DEPOSIT INSURANCE CORPORATION
has been smaller than in any other period of similar length. For this
reason a danger exists that depositors will forget about the extra safety
factor which has been added to the banking structure. Insured banks
should, therefore, find it advantageous to foster the confidence of their
depositors by providing information about the Corporation.
The Corporation has demonstrated its ability to meet the problems
associated with business recovery and minor recessions, war, and pros
perity. So far, however, it has not been confronted by a major business
depression. The number of bank failures during the last 14 years has
been less than the number which occurred in any one of the ten years
preceding the establishment of the Corporation.
The favorable experience of the Corporation has given it an opportunity
to accumulate a surplus of almost $1 billion. Although this amount
appears large when compared with losses of only $26 million in 14 years,
it is very small when compared with the $150 billion of deposits in insured
banks at the end of 1947. Even with the power of the Corporation to
protect the deposits in insured banks strengthened by the provision for
borrowing from the Treasury to the extent of $3 billion, the total avail
able funds are still small in relation to the responsibilities of the Cor
poration. It is imperative, therefore, that every effort be made to keep
the banking system in a strong and healthy condition, and to minimize
calls on the Corporation by banks unable to meet the claims of their
depositors.
D
e p o s it
I n s u r a n c e P r o t e c t io n
Methods of protecting depositors. Under the deposit insurance
law two procedures are available for protecting the depositors of insured
banks which are in financial difficulty. One of these is an advance by the
Federal Deposit Insurance Corporation to facilitate assumption of the
deposit liabilities of a weak or insolvent insured bank by another insured
institution in the same or nearby community. The other is the closing
of the insolvent bank, and the payment by the Corporation of the amount
due each depositor, up to the insured maximum of $5,000, as quickly
thereafter as it is possible to verify claims.
The merger procedure has proved the more advantageous of the two
methods. In the community where the weak or insolvent bank is located
ordinary business is not disturbed by an interruption of banking service.
All depositors are fully protected, even those who have deposit balances
in excess of $5,000. The experience of the Corporation has indicated
that its loss is less, relative to the amount of insured deposits, than when
a bank is placed in receivership. Only that part of the assets of the weak
or insolvent bank not acceptable to the absorbing bank is subjected to
DEPOSIT INSURANCE PROTECTION
11
liquidation, other costs of receiverships are avoided, and there is less
adverse effect on property values in the community. Since the Corporation
is the only creditor, the acquired assets are liquidated in an orderly
manner by the Board of Directors.
Because of these advantages, the Corporation uses the merger pro
cedure whenever it is practicable. However, under some circumstances
this procedure cannot be used. If a bank in difficulty is the only bank
in the community and is located in an area in which branch banking is
prohibited a merger may not be feasible. In some cases a new bank is
organized and absorbs the one in difficulty. State supervisory authorities
in the case of State banks, and the Comptroller of the Currency in the
case of national banks, have the responsibility for the closing of banks
which are insolvent and for the chartering of new banks. Under some
circumstances the supervisory authorities may not approve a merger.
Furthermore, the Corporation is authorized to make an advance to
facilitate a merger only when the estimated loss to the Corporation is
smaller than if the bank were placed in receivership.
Deposits protected and the Corporation’ s disbursement in 1947.
During the year 1947 the Corporation aided five banks which were
experiencing difficulties. In each case these banks were merged with
another insured bank. The five banks had total deposits of $7 million,
in 10,618 accounts. Of these accounts, 197, or less than 2 percent, had
balances of more than $5,000 at the time the banks were examined in
connection with the plans for merger; and 14 percent of the total deposits
would not have been insured under the $5,000 limitation had the banks
been placed in receivership. None of the depositors suffered any loss,
nor did any break in the continuity of banking service occur.
The principal disbursement of the Corporation in 1947 in connection
with protection of depositors amounted to $2,051,000. Of this amount,
$1,724,000 was disbursed for the five banks which were merged during
the year. The remainder comprised additional disbursements in con
nection with banks closed in earlier years. In the case of one bank which
had been placed in receivership in 1938, an additional payment of $5,000
was made due to settlement of pending litigation.
Deposits protected and disbursements, 1934-1947. During its
14 years of operation the Corporation protected more than 1,320,000
depositors in 404 closed insured banks. Deposits of these banks exceeded
$512 million. The Corporation’s disbursements amounted to $264 million,
exclusive of advances for the protection and maintenance of collateral
and the amount expended for liquidation expenses which are recoverable.
Including these advances and expenses, the Corporation’s disbursements
were $308 million. Chart A shows the number of banks aided and the
disbursements of the Corporation in each year.
12
FEDERAL DEPOSIT INSURANCE CORPORATION
CHART A
DISBURSEMENTS BY T H E CORPORATION T O PROTECT
DEPOSI TORS IN I NSURED BANKS
1934-1947
A M O U N T OF DISBURSEMENT
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
NUMBER OF B A N K S
NUMBER
1935
1937
1939
1941
1943
1945
«947
DEPOSIT INSURANCE PROTECTION
13
The banks aided by the Corporation have been widely scattered
throughout the United States, being located in 40 of the 48 States.
However, over one-half of the banks were located in seven States. The
number in each State is shown on the map in Chart B.
CHART B
LOCATION OF T H E 4 0 4 BANKS INVOLVING D I S B U R S E M E N T S
BY T H E C O R P O R A T I O N T O P R O T E C T DEPOSITORS
1934
-
1947
Only 2,867 depositors in the closed banks, or about one-fifth of 1
percent of the total number of depositors, experienced any loss. Their
losses are estimated at about $2 million, or less than two-fifths of 1 percent
of the deposits of the banks. Further details regarding the number of
depositors and their losses, together with the estimated loss of the Cor
poration, are given in Table 1.
Loss to depositors has occurred only in the case of banks placed in
receivership. Almost four-fifths of the deposits in all insured banks placed
in receivership were paid by the Corporation. Of the remaining deposits,
a large part was fully covered by offset against sums due to the bank
by the depositors, by pledge of security, in the case of public funds, or
by payment from the first proceeds of liquidation because of preferred
status. The deposits not protected in any of these ways, and therefore
dependent for repayment entirely upon a proportionate share of the
proceeds of liquidation, amounted to less than 10 percent of the total
deposits of the banks placed in receivership.
14
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 1.
N u m b e r o f D e p o s ito r s , A m ou n t o f D e p o s its , R e c o v e r ie s , a n d
L o s s e s i n 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 F i n a n c i a l A id o f t h e C o r p o r a t i o n , 1934-1947
Item
Banks placed
in
receivership
Total
Banks merged
with financial
aid of FDIC
Number of banks...........
404
245
159
N um ber o f depositors.
1,323,978
382,765
941.213
1,270,673
2,867
329,460
2,867
941.213
Estimated number with no loss................................
Estimated number with some loss1...........................
Estimated number with claims barred by termina
tion of insurance or receivership...........................
50,438
50,438
$512,223,000
$109,603,000
$402,620,000
509,869,000
1,907,000
447,000
107,249,000
1,907,000
447,000
402,620,000
Disbursement by F D IC .
$264,184,000
$ 87,039,000
$177,145,000
Estimated loss to FDIC.
$ 26,014,000
$ 14,619,000
$ 11,395,000
A m ount of deposits.
Estimated recovery by depositors.........
Estimated loss by depositors1................
Insurance terminated or claims barred.
1 1,473 depositors will lose an estimated $1,865,000 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.
The amounts of recoveries by the depositors, the methods by which
payments have been made, and the amounts remaining unpaid are shown
in Table 2.
Table 2.
P a y m e n t b y t h e C o r p o r a t i o n a n d R e c e i v e r s o f D e p o s i t 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 , 1934-1947
(Amounts in thousands of dollars)
Status of deposits
Total
Paid by
Dec. 31,
1947
Unpaid on
Dec. 31,
1947
Deposits—t o ta l........................................................................
$109,603
$106,931
$2,672
Insured....................................................................................
Secured, preferred, and subject to offset.............................
In excess of $5,000, not otherwise protected......................
Other uninsured.....................................................................
Insurance terminated or claims barred1...............................
87,119
11,416
9,685
936
447
87,039
11,415
7,536
894
47
80
1
2,149
42
400
Deposits, term inated receiverships, (219 banks)—total
Insured....................................................................................
Secured, preferred, and subject to offset.............................
In excess of $5,000, not otherwise protected......................
Other uninsured......................................................................
Insurance terminated or claims barred1...............................
61,966
49,646
7,477
4,485
194
164
61,004
49,646
7,477
3,682
152
47
962
Deposits, active receiverships, (26 banks)—to ta l...........
Insured....................................................................................
Secured, preferred, and subject to offset.............................
In excess of $5,000, not otherwise protected......................
Other uninsured.....................................................................
Insurance terminated or claims barred................................
47,637
37,473
3,939
5,200
742
283
45,927
37,393
3,938
3,854
742
803
42
117
1,710
80
1
1,346
283
1 In a few cases payments have been made by receivers on deposits on which insurance had termi
nated either directly or into a trust to meet claims presented after termination of receiverships.
DEPOSIT INSURANCE PROTECTION
15
Liquidation of assets of closed banks. Of the 245 insured banks
placed in receivership, the Corporation served as receiver for 77. Under
the deposit insurance law the Corporation is appointed receiver by the
Comptroller of the Currency for all national banks placed in receivership;
and may be appointed receiver or liquidator for closed State banks. Of
the total number placed in receivership, 219 have been liquidated and
the receiverships terminated. By the end of 1947 only 26 receiverships
were still active. The 5 national and 5 State banks remaining in receiver
ship at the close of 1947 for which the Corporation was receiver had
deposits at the time of closing of $11 million. The 16 State banks re
maining in receivership, for which the Corporation was not acting as
receiver, had deposits of $37 million at the time of failure.
By agreement with State banking authorities the Corporation obtains
quarterly reports from the receivers or liquidators for closed banks in
which deposit insurance payments have been made but for which the
Corporation is not receiver. These reports, together with the records
regarding the banks for which the Corporation is receiver, provide
information on the final results of liquidation of insured banks placed
in receivership.
The Federal Deposit Insurance Corporation sometimes buys at public
sale the residue of assets in the hands of a bank’s receiver. This reduces
the expenses of liquidation and expedites the termination of receivership.
By the end of 1947 the Corporation had disbursed $1.2 million to purchase
assets from the receivers of 67 banks. Most of these assets had been
liquidated by the Corporation without a net loss.
In the case of insured banks merged with the aid of the Corporation
the assets which are not acceptable to the absorbing bank are purchased
by the Corporation, or taken as collateral for a loan by the Corporation.
The Corporation is in all cases liquidator of these assets. However, if
the Corporation recovers more than the full amount of its advance,
together with incidental expenses and interest on the advance, the
excess is returned to the stockholders of the closed bank. Of the 159
insured banks merged with the aid of the Corporation the assets acquired
by the Corporation have been liquidated in 89 cases; liquidation was still
in progress at the end of 1947 in the remaining 70 cases.
In general, the assets acquired by the Corporation in the merger cases
have yielded upon liquidation larger amounts than were estimated at
the time they were acquired. This favorable outcome is due to the general
inflation of prices and the recovery in property values that has been
characteristic of the past few years. Receivers of the banks closed without
merger have also had a favorable experience in the liquidation of the
assets of those banks. Liquidation has been completed in a larger propor
tion of the receivership cases than in the merger cases, due to the pre
16
FEDERAL DEPOSIT INSURANCE CORPORATION
dominance of receivership cases in the early years of the Corporation’s
operation.
Recoveries and losses of the Corporation. By December 31, 1947,
the Corporation had recovered $71 million on the $87 million of claims
to which they had been subrogated by the depositors of insured banks
in receivership; and $163 million of the $177 million which had been
disbursed in advances to merged insolvent banks. It is estimated that
the Corporation will recover an additional $4 million.
The total loss to the Corporation in the 404 insured banks placed in
receivership or merged is estimated at $26 million—$15 million in the
receivership cases and $11 million in the merger cases. Table 3 sum
marizes the Corporation’s disbursements and its recoveries and losses
in the two groups of cases.
Table 3.
L osses
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
it s
e p o s it o r s ,
R e c o v e r ie s ,
I n su r e d B a n k s P laced
and
in
F i n a n c i a l A i d , 1934-1947
(Amounts in thousands of dollars)
Book entry Dec. 31, 1947
Disbursem ents1........................................................................
Receiverships..........................................................................
Mergers....................................................................................
Total
$264,184
87,039
177,145
Liquidation
terminated
Liquidation
active
$79,046
49,646
29,400
$185,138
37,393
147.745
68,603
40,662
27,941
165,608
30,220
135,388
Estim ated additional disbursem ents in receiverships2.
80
Recoveries.................................................................................
Receiverships..........................................................................
Mergers...................................................................................
234,211
70,882
163,329
Estimated additional recoveries.........................................
Receiverships..........................................................................
Mergers...................................................................................
4,039
1,618
2,421
Losses by FDIC3.......................................................................
Receiverships..........................................................................
Mergers...................................................................................
26,014
14,619
11,395
10,443
8,984
1,459
15,571
5,635
9,936
Num ber o f b a n k s....................................................................
Receiverships..........................................................................
Mergers...................................................................................
404
245
159
308
219
89
96
26
70
80
4,039
1,618
2,421
1 Includes only principal disbursement; excludes expenses incident to the transactions, the greater
part of which has been recovered.
2 Estimated additional disbursements in receiverships are the insured deposits which have not
been paid. See Table 2.
8 Losses in terminated cases are the established losses; those in active cases are estimated.
Table 4 shows the amount of loss to the Corporation from the banks
placed in receivership or merged each year, and the relationship which
this loss bears to the deposits of the banks involved. In the receivership
cases the Corporation’s loss has been equivalent to slightly over 13
percent of the total deposits of the banks and to about 17 percent of the
deposits insured under the $5,000 limitation for each depositor. In the
merger cases the Corporation’s loss is less than 3 percent of total deposits,
and is estimated at 4 percent of the insured deposits.
17
DEPOSIT INSURANCE PROTECTION
T a b le
of
4.
Loss
to
the
C o r p o r a t io n
I n su r e d B a n k s P laced
in
and
it s
Loss to Federal Deposit Insurance
Corporation
(in thousands of dollars)
Year
Total
R e l a t io n
R e c e iv e r s h ip
On insured
deposits
paid in
receiver
ships
On advances
made to
facilitate
mergers
M
or
to
the
erged,
D
e p o s it s
1934-1947
Loss to the Corporation per $100
of deposits in banks placed
in receivership or merged
Total
Receiver
ships
Mergers
T o ta l.................
$26,014
$14,619
$11,395
$5.08
$13.34
$2.83
1947................
1946................
1945................
1944................
185
0
0
31
31
185
0
0
0
2.66
.00
.00
1.62
6.80
2.66
.00
.00
.00
1943................
1942................
1941................
1940................
1939................
124
672
701
5,093
7,782
124
289
213
582
6,218
0
383
488
4,511
1,564
.99
3.53
2.36
3.58
4.93
1.87
15.91
1.45
10.29
18.99
.00
2.23
3.26
3.30
1.25
1938................
1937................
1936................
1935................
1934................
2,456
3,589
2,423
2,751
207
1,189
2,555
1,460
1,751
207
1,267
1,034
963
1,000
4.11
10.76
8.80
20.65
10.52
11.55
17.08
12.99
19.26
10.52
2.56
5.62
5.91
23.65
Abnormal character of the Corporation’s experience. The
entire period since the Federal Deposit Insurance Corporation was
organized, except for a portion of the years 1937 and 1938, and the
early months of 1946 and of 1947, has been a period of expanding bank
credit, generally rising prices, and business expansion. These circum
stances, as in the case of similar periods in the past, have been accom
panied by a relatively small number of failures both among banks and
among other types of business enterprise. The most extraordinary part
of this period has been the past five years.
According to the business failure compilations of Dun and Bradstreet,
the only compilations extending over a long period of time, the normal
rate of failure among business enterprises prior to 1934 was from 85 to
110 per year per 10,000 concerns; the average of the annual rates during
the 68-year period, 1866-1933, was 99 per 10,000 concerns. During that
long period the failure rate was below 70 per 10,000 only eight times; the
lowest rate was 37 in 1919. During the 14 years since the beginning of
deposit insurance in 1934, the annual rate has never been higher than
70, and has averaged 40 per year per 10,000 concerns. The most extra
ordinary part of this recent period has been the past five years, during
which the annual rates were, respectively, 16, 7, 4, 5, and 14. While
the rate was very low in 1947, a slight rise over the previous three years
was apparent.
The remarkably small number of bank failures since the inauguration
of deposit insurance and especially during the past five years is at
18
FEDERAL DEPOSIT INSURANCE CORPORATION
tributable chiefly to the prevailing conditions of recovery and prosperity
and the favorable circumstances under which all business enterprises
have operated. The extraordinarily low rate of business and bank failures
of recent years cannot be expected to continue indefinitely. In the past,
severe business depressions and crises have come swiftly and without
much warning. Estimates of future disbursements or loss by the Cor
poration cannot, therefore, be based upon the experience of the past
few years.
S u p e r v is o r y A c t iv it ie s
Bank examinations. The policy of the Corporation from its in
ception 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 to make, with the prior
consent of the Comptroller of the Currency or the Board of Governors
of the Federal Reserve System, such examinations of national banks or
State banks members of the Federal Reserve System as special deposit
insurance considerations appear to require.
The Corporation conducted 5,616 regular examinations during 1947,
or 84 percent of the number required to meet a full year’s program. This
represented an increase of 253 examinations over the 5,353 regular
examinations conducted in 1946. In addition to regular examinations,
the Corporation in 1947 conducted 48 special examinations, 45 entrance
examinations of operating uninsured banks, 145 new bank investigations,
73 branch investigations, and 82 miscellaneous investigations. The
regular examinations also involved the examination of 590 branches. The
failure to conduct all examinations called for under the established policy
is attributable to the continued shortage of examining personnel, the
amount of time consumed by experienced personnel in training and
instructing assistant examiners recruited during 1946 and 1947, and the
generally increasing work load in examinations due to expanding loan
portfolios.
A serious deficiency in the number of examiners and assistants necessary
to complete the examination program existed at the beginning of the
year. The examining personnel was increased by about 10 percent during
the year; but at the close of the year was still considerably under that
required to complete the regular examination schedule. To the extent
necessary, in 1948 banks will be examined on a selective basis, by-passing
to the extent necessary some of those that appear to be sound, and making
two or more examinations of those which appear to require more than
ordinary attention.
19
SUPERVISORY ACTIVITIES
Unsafe and unsound banking practices and violations of law
or regulations. During 1947 proceedings were initiated against six
insured banks for engaging in unsafe and unsound banking practices and
were continued against three other banks. Of the nine cases, corrections
were made in three banks and one was absorbed with financial aid of
the Corporation; the other five were pending at the close of the year.
The total number of banks charged with unsafe and unsound practices,
and the disposition of these cases, are given in Table 5. The practices
and violations of the six banks against which action was taken during
1947 are listed in Table 6.
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
U n safe
Law
or
or
I n sured Status
U
n sound
R e g u l a t io n s ,
Disposition or status
Total banks against which action was taken.................
Cases closed:
Corrections made...................................................................
Insured status terminated, or date for such termination
set by Corporation, for failure to make corrections:
Banks suspended prior to or on date of termination of
insured status..................................................................
Banks continued in operation2..........................................
Banks suspended prior to setting of date of termination of
insured status by Corporation
Banks absorbed or succeeded by other banks:
With financial aid of the Corporation.............................
Without financial aid of the Corporation
.................
Cases pending December 31, 1947:
Correction period not expired ............................................
Recapitalization program pending.......................................
Action deferred pending examination..................................
of
P r a c t ic e s
B a n k s C harged
or
V io l a t io n s
1936-1947
Total
cases
1936-19471
Started
during
1947
Pending
beginning
of 1947
138
3
6
26
1
2
7
3
32
1
61
4
1
2
2
1
1
1
1
1
1 No action to terminate the insured status of any bank was taken before 1936. In 4 cases where
initial action was replaced by action based upon additional charges, only the later action is included..
2 One of these suspended 4 months after its insured status was terminated.
Back data—See the Annual Report of the Corporation for 1946, p. 20, and earlier reports.
Fidelity coverage in banks. Four of the seven banks whose depositors
the Corporation was called upon to protect during 1945, 1946, and 1947
went out of business solely because of defalcations in amounts exceeding
fidelity coverage. A fifth had asset problems but its difficulties arose
primarily from breaches of fidelity. In the case of a sixth, there were
irregularities which may or may not be found to constitute the basis of
claims against the surety.
Consideration of the causes of failure of these banks emphasizes the
need for adequate surety coverage in all banks. During 1947 the Cor
poration continued to stress to all insured banks the necessity for pro
viding fidelity protection in keeping with the responsibilities and risks
involved. In this, it solicited and obtained the cooperation of bank
supervisors, both Federal and State.
20
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 6.
U n s a f e o r U n s o u n d B a n k in g P r a c t i c e s a n d
V i o l a t i o n s o f L a w o r R e g u l a t i o n s C h a r g e d A g a in s t
S i x B a n k s b y t h e C o r p o r a t i o n D u r i n g 1947
Type of practice or violation
Capital:
Continued operation of the bank in an insolvent condition.................
Continued operation of the bank with inadequate capital...................
Failure to rehabilitate the bank’s capital account in whole or in part by
a specified date as requested by State Commissioner of Banks.......
M anagem ent and general practices:
Failure to observe and comply with laws, rules, and regulations to
which the bank is subject.........................................................................
Failure to comply with State law in regard to the extent to which credit
may be extended.......................................................................................
Utter disregard of the bank’s directors and officials to heed and/or
comply with the recommendations of bank examiners.....................
Failure of a director to own qualifying shares.......................................
Continued operation of the bank with a weak and hazardous management
Failure of the bank’s officers to properly exercise their functions...........
Disproportionately large aggregate of nonconforming extensions of
credit to directors, officers, their interests, and other borrowers.
Making of improper and misleading entries upon the bank’s books and
records........................................................................................................
Failure to record liens...................................................................................
Unwarranted dissipation of collateral.........................................................
L oan and investm ent practices:
Maintenance of lax lending and collection policies...................................
Unwarranted and excessive amount of losses (including loans and
discounts)...................................................................................................
Unwarranted and excessive amount of assets classified III and IV or
held in violation of State law...............................................................
Unwarranted and excessive amount of losses in the bank’s security
account...................................................................................................
Abnormal volume of substandard and overdue loans or overdrafts. . .
Failure to charge off losses as they occur...............................................
Failure to give necessary attention to weak and distressed loans to
prevent them from developing into losses..........................................
Unwarranted and excessive amount of transactions in securities........
Continued speculation in securities.........................................................
Failure to obtain or maintain adequate credit support and information
Failure to support loans by insurance and title opinions.....................
Case
identi
fication
letters
Number
of banks
charged
a, b, e
c, d
d, e, f
c, d, e, f
d, f
f
a, b, c, d, e, f
d, f
f
a, b
f
c, d, f
c, d, e
c, d, e
a, b
d, e, f
a, b
d
a,
a,
d,
d,
b
b
f
f
Determination of the amount of coverage needed in an individual bank
is the responsibility of the directors of the bank. However, the Insurance
and Protective Committee of the American Bankers Association has
provided a helpful guide in the form of a table of suggested minimum
and fair amounts for banks in different size groups.1
A survey by the Corporation, covering over 70 percent of the insured
banks, indicated that roughly half of the banks, on the dates of their
1947 examinations, had less than the minimum blanket bond coverage
suggested by the American Bankers Association, while only one-fifth
had the fair amount or more. The situation at the close of the year was
better. Banks which had low coverage when examined generally made
appropriate increases during or following the examinations. The Cor
poration expects to make a complete survey of blanket bond coverage
in effect as of 1948 examination dates in relation to the amounts suggested
by the American Bankers Association.
1 Digest of Bank Insurance, American Bankers Association, 1941.
21
SUPERVISORY ACTIVITIES
Approval of banks for insurance. During 1947 the Corporation
approved the applications of 110 banks for admission to insurance. Of
these, 65 were new banks, including one which succeeded a branch of
another bank. The remaining banks approved for insurance comprised
38 banks or successors thereto which were operating as noninsured banks
at the beginning of the year and 7 insured banks which obtained new
charters or withdrew from the Federal Reserve System and applied for
insurance as banks not members of that System. In addition, the Cor
poration approved applications of 26 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. Seventeen applications for ad
mission to insurance were disapproved because, in the opinion of the
Board of Directors, the conditions specified in the deposit insurance law
were not met. Two applications were approved and later rescinded
because the applicants abandoned their plans.
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 7.
Table 7.
A c tio n s b y t h e 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 t io n o n
A p p lic a tio n s fr o m
B a n k s f o r A d m is s io n t o I n s u r a n c e , 1935-1947
Number of applications1
Year
Acted
upon
Approved2
Approved
but later
rescinded
Dis
approved
1935-1947............................................................
1,501
1,298
43
160
1947..................................................................
1946..................................................................
1945..................................................................
1944..................................................................
155
175
124
108
136
163
117
105
2
1
2
2
17
11
5
1
1943..................................................................
1942..................................................................
1941..................................................................
1940..................................................................
1939..................................................................
198
51
81
67
85
190
42
78
58
72
4
2
2
3
3
4
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 Report of the
Corporation for 1941, p. 184, because of later recisions 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.
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
22
FEDERAL DEPOSIT INSURANCE CORPORATION
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 Corpora
tion. For changes in the number of insured banks during 1947, see pages
40 and 101.
Approval of establishment of branches. During 1947 the Corpora
tion approved the establishment of 67 branches by insured banks not
members of the Federal Reserve System. Of these, 56 were for the estab
lishment of new banking offices. Of the remaining cases, 9 were banks to
be absorbed and converted into branches, and 2 were branches to be
established at former locations of head offices after the relocation of
such offices. The Corporation also approved the establishment of one
regular branch in place of a teller’s window; and approved continuation
of operation of five branches previously operated by absorbed banks or
another bank from which the branch had been purchased. The Corporation
disapproved eight applications for permission to establish branches.
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 8.
T a b le 8 .
A
A
c t io n s
p p l ic a t io n s f o r
by
the
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
B r an ch es,
or
on
C o n t in u e d O p e r a t io n
1935-1947
Number of applications1
Year
Acted
upon
Approved2
Approved
but later
rescinded3
Dis
approved
1935-1947............................................................
858
778
31
49
1947.............................................. ...................
1946..................................................................
1945..................................................................
1944..................................................................
83
91
61
49
73
87
58
46
2
8
4
2
3
1943..................................................................
1942..................................................................
1941..................................................................
1940..................................................................
1939..................................................................
105
36
49
44
61
101
32
46
40
53
2
2
3
2
3
1938.................................................................
1937..................................................................
1936..................................................................
1935..................................................................
82
89
93
15
71
82
80
9
6
5
5
1
2
2
2
5
5
2
8
6
1 Figures for years prior to 1942 may differ slightly from those given in the Annual Report of the
Corporation for 1941, p. 185, because of later recisions of cases approved or revision of the data.
2 Excludes cases where approval was later rescinded.
3 In 1947 includes two cases where commitments expired under the 6-month limitation period.
As in the case of banks, the number of branches established by insured
banks in a year differs from the number approved by the Corporation.
SUPERVISORY ACTIVITIES
23
Approval by the Corporation is not required for the establishment of
branches by national banks or State banks members of the Federal
Reserve System. 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. Two banks
did not apply for an extension of time and the commitment of the Cor
poration expired. For changes in the number of branches of insured
banks in 1947, see pages 40 and 102.
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 30 and December 31, 1947, and for a report of earn
ings, expenses, and disposition of profits for the calendar year 1947,
from each insured bank required by law to submit such reports to the
Corporation. These 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 30 and December 31, 1947, are given in the
pamphlets, “ Assets and Liabilities, Operating Insured Commercial and
Mutual Savings Banks,” Reports No. 27 and 28, and in Table 106 of
this report, page 114. Summaries of the reports of earnings, expenses, and
disposition of profits are given in Tables 117-123, pages 136-157 of this
report.
Federal credit unions. These cooperative associations, organized
to encourage thrift among persons of small means and to provide their
members with sources of limited credit at reasonable rates of interest,
are chartered, examined, and supervised by the Corporation, but their
shares are not insured.
On December 31, 1947, there were 3,845 Federal credit unions in actual
operation, and 168 either inactive or in liquidation. During the year
207 new charters were granted and 159 charters were cancelled or re
voked following completion of liquidation of credit unions which had
ceased operation. Because of the continued shortage of examining per
sonnel only 3,347 of the operating credit unions were examined in 1947.
Federal credit unions submit statements of operation to the Corpora
tion on June 30 and December 31 of each year. A summary of the Decem
ber 31 statements is included in the Corporation's “ Report of Operations
of Federal Credit Unions,” which is published annually.
24
FEDERAL DEPOSIT INSURANCE CORPORATION
L egal D
evelopm ents
The 80th Congress, at the regular and special 1947 sessions, enacted
relatively little legislation which directly affected the functions and
administration of the Federal system of deposit insurance or the banking
system in general. Legislative action was completed with respect to the
long-discussed program for the retirement of the capital stock of the
Federal Deposit Insurance Corporation.
Retirement of the Corporation’s capital stock. The Corporation’s
continued recommendation that its outstanding capital stock be retired,
and the subsidy to the banking system represented thereby be eliminated,
received favorable consideration by the Congress.1 Public Law 363,
approved August 5, 1947, the full text of which appears on page 77 of
this report, authorizes repayment to the Treasury of the United States
of the entire $289,299,556.99 paid in by the United States and the Federal
Reserve banks in the form of capital subscription, subject to maintenance
by the Corporation of a minimum combined capital and surplus of $1
billion. The statute also increases the Corporation’s borrowing power from
nearly $1 billion to $3 billion, eliminates the former provision regarding
borrowing from the Reconstruction Finance Corporation, and directs
the Secretary of the Treasury to make such loans to the Corporation,
within the fixed maximum, as its Board of Directors may require for
insurance purposes.
In the same Act Congress increased the compensation of each of
the two appointive members of the Corporation’s Board of Directors to
$15,000 per annum. This compensation is now the same as that of the
Comptroller of the Currency, the ex officio member of the Board, and of
the members of the Board of Governors of the Federal Reserve System.
War loan deposit accounts. The provisions of the Act of April 13,
1943, excluded from the term “ deposit,” for the purpose of determining
the base upon which insured banks pay assessments to the Corporation,
all “ war-loan deposit accounts;” the exemption, by terms of the statute,
being effective “ until six months after the cessation of hostilities in the
present war as determined by proclamation of the President or con
current resolution of the Congress.” A Presidential proclamation issued
on December 31, 1946, fixed the cessation of hostilities as of noon of
that date. Accordingly, the Board of Directors of the Corporation an
nounced that the statutory exemption provided to war-loan deposit
accounts would cease as of noon on June 30, 1947, and that such accounts
must thereafter be included in totaling deposit liabilities for assessment
purposes.
Reorganization of the Executive Branch. Public Law 162, approved
July 7, 1947, created a bi-partisan commission, the Commission on
1 See the Annual Report of the Corporation for 1945* p. 8, and for 1946, pp. 11-12.
LEGAL DEVELOPMENTS
25
Organization of the Executive Branch of the Government, to study and
investigate the present organization and methods of operation of all
units of the Executive branch of the Government. The Commission is
instructed to report to the 81st Congress its findings and recommenda
tions concerning changes which would accomplish economy, efficiency,
and improved service in the transaction of the public business. The full
text of this Act appears on pages 78-80 of this report.
Labor Management Relations Act, 1947. Public Law 101, which
became effective on June 23, 1947, commonly referred to as the TaftHartley Act, applies to all banks other than the twelve Federal Reserve
banks.
Extension of the Reconstruction Finance Corporation. By
Public Law 132, approved June 30, 1947, the Reconstruction Finance
Corporation Act was rewritten and its life extended to June 30, 1948.
Government checks. Public Law 171, approved July 11, 1947, is
designed to facilitate the negotiation of certain Government checks by
extending to ten years, from a maximum of two years, the period of
negotiability. The full text of this Act appears on pages 80-82 of this
report.
Federal credit unions. By Executive Order of April 27, 1942, the
Corporation was given temporary responsibility for supervision of the
activities of all Federal credit unions which prior to that time had been
under the jurisdiction of the Farm Credit Administration. 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 had failed to become effective when proposed to the
Congress in 1946,1was again submitted to the Congress in the President’s
Reorganization Plan No. 1 of 1947. Congress did not adopt a concurrent
resolution disapproving the plan, and under the provisions of the Re
organization Act of 1945 the plan became effective July 1, 1947.
Interpretive ruling of Commissioner of Internal Revenue on
reserve method of accounting in the case of banks. On December
8, 1947, the Commissioner of Internal Revenue issued a ruling approving
the use by banks of a 20-year moving average experience factor for the
determination of bad debt loss reserves which can be deducted from
taxable income. Banks, along with other types of enterprise, have had
for many years the option of adopting this method of accounting for
Federal income tax purposes. However, few banks have used this method
in the past, partly because not over five years’ experience was usually
permitted in determining the loss factor. Also, without the interpretation
and clarification afforded by the ruling, the complications and uncer
tainties involved in the method were regarded as prohibitive by the
average bank.
1 See the Annual Report of the Corporation for 1946, p. 25.
26
FEDERAL DEPOSIT INSURANCE CORPORATION
Encouragement of the accumulation of adequate reserves for losses
on loans out of current earnings by all insured banks is exceedingly
desirable. Therefore, representatives of the Corporation participated
with a Committee of the American Bankers Association and with other
banker groups in discussions of this method of accounting for losses on
loans. These discussions eventually resulted in presentation of the problem
to Internal Revenue officials and later, in issuance of the ruling. The
full text of the ruling is reproduced on pages 82-84 of this report.
Regulations of the Corporation. During the year two minor changes
were made in the regulations of the Corporation dealing with the forms
prescribed by the Corporation for use of insured banks. The texts of
these regulations, as amended and adopted, are given on page 84 of
this report.
State legislation. Legislatures in all States convened in 1947. A
summary of State banking legislation enacted during the year is given
on pages 85-93 of this report.
During 1947, legislation permitting banks to close on Saturday through
out the year was enacted in fourteen States: Connecticut, Florida,
Georgia, Maryland, Massachusetts, Missouri, New Hampshire, New
Jersey, New York, Ohio, Pennsylvania, Rhode Island, Washington, and
Wisconsin. Such legislation had previously been enacted in California,
Delaware, and the District of Columbia. The authorization for such
closing is limited in Delaware, Florida, and Georgia to certain counties.
Saturday closing in Maine is limited to the months of June to September,
inclusive.
All the laws are permissive in nature, although the New Jersey and
Connecticut laws have mandatory features, in that they declare Saturday
a legal holiday for purposes relating to the negotiable instrument law.
The other States, in general, merely declare that Saturday will be a
holiday for a bank which chooses to close on that day. Saturday is specified
as the closing day except in Georgia, whose law permits closing on either
Wednesday or Saturday, and in Missouri, where a bank may remain
closed on any day of the week.
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, who became Chairman of the Board
of Directors of the Corporation in 1946, and Mr. Preston Delano,
Comptroller of the Currency, served throughout the year as members
of the Board of Directors. Mr. Henry Earl Cook was nominated by the
President on March 7, 1947, as a member of the Board of Directors to
fill the vacancy caused by the death of Mr. Phillips Lee Goldsborough
in October, 1946. Mr. Cook’s appointment was confirmed by the Senate
27
ORGANIZATION AND FINANCIAL STATEMENTS
on March 17 and he became a member of the Board of Directors on
April 10, 1947, when he took the oath of office.
Staff and organization. On December 31, 1947, the personnel of
the Corporation consisted of 1,160 officers and employees as compared
with 1,181 at the beginning of the year. The number of officers and em
ployees of each Division of the Corporation as of December 31, 1947,
is given in Table 9.
T a b le 9 .
O f f i c e r s a n d E m p lo y e e s o f t h e F e d e r a l D e p o s it I n s u r a n c e
C o r p o r a t i o n , D e c e m b e r 31, 1947
Division and office
Officers and
administra
Clerical,
tive, super stenographic,
visory, and and custodial
technical
employees
employees
Total
T o ta l..........................................................................................
1,160
760
400
Washington office................................................................
Field offices..........................................................................
360
800
170
590
190
210
3
3
Executive Division..............................................................
28
19
9
Legal Division........................................................................
25
15
10
Division of Examination.......................................................
Washington office..............................................................
District and field.................................................................
718
51
667
543
SO
513
175
21
15k
Division of Liquidation.........................................................
Washington office................................................................
District and field.................................................................
167
U5
122
92
26
66
75
19
56
Division of Research and Statistics.....................................
Washington office............ ....................................................
Field office...........................................................................
52
51
1
25
U
1
27
27
Personnel Division.................................................................
24
11
13
Fiscal and Accounting Division...........................................
40
18
22
D irectors...............................................................................
Service Division.....................................................................
78
12
66
Audit Division........................................................................
Washington office................................................................
Field office...........................................................................
25
15
10
22
12
10
3
3
The largest change in personnel by Divisions occurred in the Divisions
of Liquidation and Examination. Other Divisions of the Corporation
together had a net decrease in personnel of 4 during the year. Personnel
in the Division of Liquidation was reduced from 214 at the beginning
of the year to 167 at the close. This was due largely to a decrease in the
volume of assets to be liquidated. Personnel in the Division of Examina
tion increased from 647 at the beginning of the year to 718 at the close,
with most of the increase occurring in the rank of assistant examiner.
The increase was necessary to restore the examining staff which had
been depleted by wartime reduction, and to handle examination of the
increased volume of bank assets, with rapidly expanding loan portfolios,
and an increase in the number of new bank and branch applications.
28
FEDERAL DEPOSIT INSURANCE CORPORATION
Subsequent to a nationwide competitive Civil Service examination,
85 additional assistant examiners were appointed and 151 War Service
and Temporary assistant examiners were given permanent status. The
increase in the number of assistant examiners was offset in part by the
loss of 45 experienced examiners or assistant examiners through resigna
tions or separations for various reasons.
However, the competitive examination did not result in bringing the
examining force up to normal strength. In relation to the large number
of notices mailed only a small number of applications were filed. Many
of those who applied were ineligible, and only a small percentage of
eligible applicants were able to qualify. The appointments made did not
fill the immediate needs, and consequently no pool remained from which
to fill vacancies resulting from normal turnover.
Income and expenses. A summary statement of the income and
expenses of the Corporation for each year since its organization is given in
Table 10. A detailed statement for the year 1947 is given in Table 11.
Table 10.
In c o m e a n d E x p e n s e s 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 S in c e B e g i n n i n g O p e r a t i o n s 1
(In millions of dollars)
Income
Year
Total
Expenses
Deposit
insurance Investment
and other
assess
income
ments2
Total
Deposit
insurance Adminis
trative
losses and
expenses3 expenses4
Net
income
added to
surplus
1933-1947..............
$1,001.9
$785.1
$216.8
$78.4
$26.8
$51.6
$923.5
1947...................
1946...................
1945...................
1944...................
1943...................
157.7
130.9
121.2
99.5
86.7
114.4
107.1
93.7
80.9
70.0
43.3
23.8
27.5
18.6
16.7
5.7
4.6
4.0
3.9
4.5
.2
.1
.1
.1
.2
5.5
4.5
3.9
3.8
4.3
152.0
126.3
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
4.4
4.4
8.5
11.7
.5
.7
4.9
8.3
3.9
3.7
3.6
3.4
65.0
57.6
47.4
39.5
1938...................
1937...................
1936...................
1935...................
1933-345.............
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
6.2
5.1
5.5
4.4
2.5
3.5
2.6
2.8
.3
3.0
2.7
2.5
2.7
4.16
42.3
41.9
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 1947 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 Cor
poration from assessments for the term of the temporary insurance funds.
3 Includes nonrecoverable expenses in connection with payment of insured deposits of banks placed
in receivership. Total deposit insurance losses and expenses are therefore larger than the losses incurred
and reserve for losses, as given in footnote 1 to Table 13.
4 Includes furniture, fixtures, and equipment purchased and charged off.
5 Includes expenses from date of organization, September 11, 1933, to December 31, 1934.
6 After deducting portion of expenses and losses charged to banks withdrawing from the temporary
funds on June 30, 1934.
29
ORGANIZATION AND FINANCIAL STATEMENTS
The total income of the Corporation in 1947 was $157.8 million. Of
this amount, $114.4 million represented assessments; and $43.4 million
net profit and interest on investments, interest on loans and subrogated
claims, and other income.
Total losses and expenses for the year amounted to $5.7 million, of
which $0.2 million were insurance losses and expenses, and $5.5 million
administrative expenses and other charges.
The surplus of the Corporation was increased by $154.3 million during
the year, reflecting income of $152.1 million in excess of expenses and
losses, and adjustments to surplus applicable to prior periods in the
amount of $2.2 million.
T a b le 1 1.
I ncome
and
E xpenses
of th e
F ederal D
C o r p o r a t io n , C a l e n d e r Y
ear
e p o s it
I nsurance
194 7
Income or expense item
In com e:
Deposit insurance assessments...................................................................................
Interest earned (less provision for amortization of premiums) and profit on sales
of government obligations.......................................................................................
Other income................................................................................................................
T otal in c o m e ..........................................................................................
Expenses:
Deposit insurance losses and expenses......................................................................
Administrative expenses.............................................................................................
Furniture, fixtures and equipment purchased and charged o ff.. ...........................
Amount
$114,429,286.31
42,881,775.04
454,874.27
157,765,935.62
167,192.07
5,472,330.97
45,762.50
T otal expenses.......................................................................................
5,685,285.54
Net incom e added to su rp lu s............................................................
152,080,650.08
Surplus:
As previously reported for December 31, 1946........................................................
Plus—Net adjustments applicable to periods prior to January 1, 1947................
769,185,439.24
2,219,416.73
Surplus December 31, 1946, as ad ju sted .........................................
771,404,855.97
Surplus December 31, 1947.................................................................
$923,485,506.05
DISTRIBUTION OF ADMINISTRATIVE EXPENSES
Salaries.............................................................................................................................
Professional services........................................................................................................
Services of other governmental agencies.......................................................................
Transportation (travel)...................................................................................................
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...................................................................................................................
3,947,455.84
42,212.35
141.56
160,588.42
511,880.20
380,484.24
131,165.48
74,037.22
2,971.20
14,248.43
16,940.87
112,743.14
84,927.60
28,889.47
5,508,686.02
Less:
Inter-departmental expense transfers........................................................................
Fees for services rendered...........................................................................................
Other income................................................................................................................
23,844.75
11,700.00
810.30
36,355.05
Administrative expenses for the year ended December 31, 1947
$
5,472,330.97
30
FEDERAL DEPOSIT INSURANCE CORPORATION
Assets and liabilities. On December 31, 1947, the remainder of the
assets acquired by the Corporation through bank suspensions and
mergers, which had cost $19 million, were carried on the books of the
Corporation at a net or appraised value of $4 million. The Corporation
has disbursed during its fourteen years $308 million in the acquisition
of these assets including expenses incident thereto, and has recovered
$278 million. It is estimated that additional recovery will amount to $4
million, and that the total losses will amount to $26 million.
United States Government obligations owned by the Corporation at
the close of 1947, valued at amortized cost and accrued interest receivable
thereon, amounted to $1,022.5 million. Cash amounted to $4.6 million
and other assets to $0.1 million.
On December 31, 1947, total capital of the Corporation including
accumulated surplus amounted to $1,006.1 million. This comprised
$923.5 million accumulated surplus, and an outstanding balance of
$82.6 million of the original capital of the Corporation, all of which was
held by the United States Treasury. Pursuant to Public Law 363, 80th
Congress, the Corporation in 1947 repaid the $139.3 of capital stock
subscribed by the Federal Reserve banks and $47.4 million of that
subscribed by the United States Treasury, and made provision for
repayment of an additional $20 million of the stock held by the Treasury.
A summary of the assets and liabilities of the Corporation at the
close of each year since its organization is given in Table 12. A more
detailed statement of assets and liabilities at the beginning and end of
1947 is given in Table 13.
T a b le 1 2 .
A s s e ts a n d L ia b ilit ie s o f t h e F e d e r a l D e p o s it
I n s u r a n c e C o r p o r a t i o n , 1934-1947
(In millions of dollars)
u. s.
Dec. 31
1 9 4 7 ....
1 9 4 6 ....
1 9 4 5 ....
1 9 4 4 ....
Cash
In
Govern surance
ment ob assets
ligations
$ 4.6 $1,022.5
7.3 1,047.7
15.7
900.0
762.0
17.8
$ 3.6
5.6
15.1
26.1
Total
assets
or lia
bilities
Lia
bilities
$.1 $1,030.7
.1 1,060.7
.3
931.1
.3
806.2
$24.7
2.2
1.9
1.9
Other
assets
Capital
and
surplus
Ratio—
FDIC
Total
capital and
deposits in surplus to
insured
deposits in
banks
insured
banks
$1,006.1 $154,095.6
1,058.5 148,457.0
929.2 158,174.1
804.3 134,662.1
.65%
.71
.59
.60
1 9 4 3 ....
1 9 4 2 ....
1 9 4 1 ....
1 9 4 0 ....
1939___
20.0
19.4
20.0
20.4
28.3
638.8
536.8
453.9
384.5
363.5
46.2
62.0
81.7
92.2
64.2
.5
.5
.1
.1
.1
705.5
618.7
555.7
497.2
456.1
2.4
1.8
2.2
1.2
3.4
703.1
616.9
553.5
496.0
452.7
111,649.8
89,868.7
71,209.3
65,287.4
57,485.8
.63
.69
.78
.76
.79
1 9 3 8 ....
1 9 3 7 ....
1 9 3 6 ....
1 9 3 5 ....
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
31
ORGANIZATION AND FINANCIAL STATEMENTS
Table 13.
A s s e ts a n d L ia b ilit ie s o f t h e F e d e r a l D e p o s it I n s u r a n c e
C o r p o r a t i o n , D e c e m b e r 31, 1947, a n d D e c e m b e r 31, 1946
Asset, liability, or capital item
Dec. 31, 1947
ASSETS
Assets acquired through bank suspensions and mergers:
Subrogated claims of depositors against closed insured banks. . $
Net balances of depositors in closed insured banks pending
settlement or not claimed, to be subrogated when paidcon tra ....................................................................................
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 banks........................................................
Assets purchased from merging insured banks and receivers of
closed insured banks to avert deposit insurance losses. . .
Total at face value.
Less: Reserve for losses...............
Total at book value.
Cash on hand and on deposit...................................................
United States Government obligations (cost less reserve for
amortization of premiums) and accrued interest receivable
Dec. 31, 1946
7,173,569.38
9,144,440.20
79,560.02
84,766.59
4,452,200.66
6,664,819.55
6,959,368.43
8,261,221.79
411,282.34
387,846.12
19,075,980.83
15,497,234.21
24,543,094.25
18,991,520.60
13,578,746.62
5,551,573.65
4,588,948.84
7,337,224.71
1,022,456,486.94
1,047,720,660.50
Due from Governmental agencies...........................................
23,881.78
32,728.86
Miscellaneous receivables..........................................................
19,773.28
22,818.52
Furniture, fixtures and equipment.........................................
1.00
1.00
Deferred charges...........................................................................
74,297.49
73,996.38
Total assets............................................................. $1,030,742,135.95
$1,060,739,003.62
LIABILITIES
Current liabilities:
United States Treasury for retirement of capital stock..........
Accounts and assessment rebates payable................................
Earnest money deposits and collections in suspense................
Net balances of depositors in closed insured banks pending
settlement or not claimed— contra........................................
20,000,000.00
700,831.23
494,175.15
Deferred credits............................................................................
Capital stock:
United States...............
Federal Reserve banks.
79,560.02
84,766.59
3,354,786.54
1,050,931.67
22,970.38
46,583.68
24,652,323.32
2,254,007.39
$ 102,604,306.58
$ 150,000,000.00
139,299,556.99
102,604,306.58
289,299,556.99
Reserve for deposit insurance expenses.
Total liabilities.....................
349,436.50
722,288.95
$
CAPITAL
Less provision for retirement pursuant to Public Law 36380th Congress (see current liabilities) ...................................
20,000,000.00
289,299,556.99
Net capital stock....................
282,604,306.58
Surplus— (see Table 11).................................
923,485,506.05
769,185,439.24
Total capital............................
1,006,089,812.63
1,058,484,996.23
Total liabilities and capital.
$1,030,742,135.95
$1,060,739,003.62
* Assets acquired through bank suspensions and mergers:
Disbursements (including principal and recoverable liquidation expense)..
Recoveries..........................................................................................................
$307,652,646.41
278,076,790.67
Remaining assets.............................................
Less: Losses incurred and reserve for losses.
Net book value, December 31, 1947.
*See page 32.
29,575,855.74
25,997,109.12
$
3,578,746.62
32
FEDERAL DEPOSIT INSURANCE CORPORATION
Audit. The report on audit of the Corporation for the year ended
June 30, 1946, made under the direction of the Comptroller General,
was transmitted by the Comptroller General to Congress on January 29,
1948, and printed as House Document No. 514, 80th Congress, 2nd
Session. Income and asset and liability statements of the Corporation
from this audit are given in the Annual Report of the Corporation for
1946, pp. 37-40.
The audit of the Corporation for the year ended June 30, 1947, was
also made under the direction of the Comptroller General. The asset and
liability statement, and the income statement, from this audit have been
furnished to the Corporation by the Comptroller General and are given
in Table 14. The auditors’ opinion is shown on the next page.
Footnotes to Table 13, continued:
2 Capital stock:
Originally issued:
United States..............................................................
Federal Reserve banks. . ...........................................
Retired by payments to December 31, 1947:
United States..................................................................
Federal Reserve banks...................................................
$150,000,000.00
139,299,556.99
$289,299,556.99
$ 47,395,693.42
139,299,556.99
186,695,250.41
Held by United States Treasury, December 31, 1947.......................
102,604,306.58
Provision for retirement, December 31, 1947.....................................................
20,000,000.00
Net capital stock, December 31, 1947................................................
$ 82,604,306.58
ORGANIZATION AND FINANCIAL STATEMENTS
33
G e n e r a l A c c o u n t in g O f f ic e
WASHINGTON 25
CORPORATION a u d it s d iv is io n
January 30, 1948
a u d it o r s ’ o p in io n
We have examined the balance sheet of 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
as of June 30, 1947, and the statement of income for the year ended that date. In
connection therewith, we have reviewed the system of internal control and the ac
counting 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 per
formed by the Corporation’s internal auditing staff. Our examination was made in
accordance with generally accepted auditing standards and included all procedures
which we considered necessary in the circumstances. This examination wras made
pursuant to the requirements of the Government Corporation Control Act (59 Stat.
597) effective July 1, 1946, a full report of which is being submitted to the Comptroller
General of the United States.
We did not inspect the collateral under loans to merged insured banks or the docu
ments evidencing ownership of assets purchased from merged insured banks or insured
banks in receivership, which collateral and assets for the most part are held by liqui
dating 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 sheet as of June 30, 1947, and the state
ment of income for the year ended on that date fairly present the financial position
of Federal Deposit Insurance Corporation at June 30, 1947, and the results of its
operations for the year ended on that date, in conformity with generally accepted
accounting principles applied on a basis consistent with that of the preceding year.
(Signed)
S t e p h e n B. I v e s
Director
34
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 14.
A s s e t a n d L ia b ilit y a n d In com e S ta te m e n ts o f t h e 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 t io n — fr o m A u d it o r s ’ R e p o r t
f o r Y e a r E n d e d J u n e 30, 1947
ASSETS
June 30, 1947
Cash:
On deposit with the Treasurer of the United States.......................
On hand, in transit, and on deposit with banks..............................
U. S. Government securities owned—at cost less amortization
(face value, $1,122,308,100, and market value, $1,148,500,131)
Accrued interest receivable thereon..................................................
Assets acquired through mergers and receiverships of insured
banks:
Subrogated claims of depositors against banks in receivership, less
collections (note 1 )..........................................................................
Depositors’ net balances in banks in receivership, to be subrogated
when paid— contra..........................................................................
Equity in collateral assets and liquidation expenses incurred
through loans to merged banks, less collections (note 2 ) ............
Assets purchased and liquidation expenses incurred under agree
ments with merged banks, less collections (note 2 ).....................
Assets purchased outright—cost, less collections (note 2 ) .............
$
. 7,635,365
561,483
8,196,848
1,122,606,137
2,317,346
1,124,923,483
7,975,523
80,804
4,647,561
7,070,305
416,433
20,190,626
Less—Reserve for losses and expenses..............................................
16,546,988
Remainder, net book value of assets acquired through mergers
and receiverships of insured banks................................................
Miscellaneous receivables and deferred charges:
Receivables from other Government agencies..................................
Other.......................................... .........................................................
3,643,638
10,811
104,598
115,409
1
Furniture, fixtures, and equipment, at nominal value................
$1,136,879,379
LIABILITIES
June 30, 1947
A ccou nts payable and accrued expenses (note 3 ).........................
$
370,928
Earnest m oney, escrow funds, and collections held for o th ers..
551,978
Depositors’ net balances in insured banks in receivership,
pending settlem ent—con tra .....................................................
80,804
Deferred credits (interest on loans, and allowable returns on pur
chased assets—note 2 ) ....................................................................
2,189,288
Investm ent o f U. S. Governm ent and Governm ent agencies,
represented by nonvoting capital stock without par value
(note 4):
U. S. Treasury.....................................................................................
Federal Reserve banks........................................................................
Deposit insurance reserve:
Deposit insurance reserve for future losses and related expenses
(notes 4, 6, and 8 )...........................................................................
Federal credit union deficit representing deposit insurance funds
applied to credit union activities (note 5 ).....................................
Remainder of deposit insurance reserve available for future losses
and related expenses........................................................................
$ 150,000,000
139,299,557
289,299,557
845,345,659
958,835
844,386,824
$1,136,879,379
35
ORGANIZATION AND FINANCIAL STATEMENTS
Table 14.
A s s e t a n d L ia b ilit y a n d In com e S ta te m e n ts o f t h e 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 t io n — fr o m A u d it o r s ’ R e p o r t
f o r Y e a r E n d e d J u n e 30, 1947— Continued
INCOME
Fiscal year ended
June 30, 1947
Deposit insurance and investm ent activities:
Deposit insurance assessments...........................................................
Income from investments:
Interest earned on U. S. Government securities, less amortiza
tion of premiums and discounts.................................................
Profit on sale of U. S. Government securities..............................
$ 111,688,194
$24,837,647
6,155,745
Income from bank mergers and receiverships:
Interest and allowable return (note 2 )..........................................
Profit on sale of assets purchased outright...................................
Net income from assets purchased outright.................................
Receivership fees.............................................................................
181,634
92,980
13,343
8,215
Deduct—Provision for losses on assets acquired..........................
296,172
90,054
30,993,392
206,118
Total income............................................................................................
142,887,704
Operating expenses..................................................................................
4,589,414
Net operating income from deposit insurance and investment
activities...........................................................................................
Add—Net reduction of reserves for losses and expenses provided in
prior years in excess of currently estimated requirements..........
138,298,290
Net increase in deposit insurance reserve for the year........................
141,229,779
Balance of deposit insurance reserve at beginning of year.................
704,115,880
Balance of deposit insurance reserve at end of year............................
$845,345,659
Credit Union activities:
Income from fees.................................................................................
Operating expenses..............................................................................
$
2,931,489
287,506
671,329
Net loss from Federal credit union activities for the year..............
Deficit at beginning of the year.........................................................
Deficit at end of year..........................................................................
210,372
497,878
$
958,835
NOTES:
1. The Corporation properly does not reflect in its balance sheet the assets of closed insured banks
wherein it acts as receiver. Those assets remaining and unliquidated at June 30, 1947, aggregated
$1,862,932 on the records maintained by the Corporation as receiver. The recovery value was estimated
to be $179,593 which, when collected, will be applied against the unpaid creditors’ claims of $1,764,206,
including depositors’ claims subrogated to or pending settlement with the Corporation in the amount
of $1,672,511.
2. Loans to merged insured banks are supported by collateral and are evidenced by demand notes
bearing interest at the rate of 4 percent per annum on the principal and any subsequent amounts ex
pended by the Corporation. Under this arrangement, notes are dishonored immediately by the closed
bank and the Corporation acquires and proceeds to liquidate the collateral assets until it has recovered
the principal and any subsequent amounts expended, plus interest thereon. Any excess recoveries and
residual assets are returned to the stockholders of the closed bank.
Assets purchased from merged insured banks are evidenced by agreements allowing a return at the
rate of 4 percent per annum on the principal purchase price and any subsequent amounts expended by
the Corporation. Under this arrangement, the Corporation acquires title to the assets, which it liquidates,
returning any excess recoveries to the stockholders of the selling bank.
The Corporation follows the practice of taking into income only such amounts of interest and al
lowable return as are realized after recovery in full of its investments (including recoverable expenses)
in the respective loan and assets-purchased cases which have been terminated. For those cases not yet
terminated in which the Corporation has recovered in full its investment, the additional recoveries
representing interest and allowable return amounting to $2,175,725 as of June 30, 1947, are included
in deferred credits.
Assets purchased outright represent transfers of the remaining slow-moving or worthless assets
from assets purchased under agreement or purchases of similar assets from loan or receivership cases.
3. The liability of the Corporation in connection with accrued annual leave of employees as of
June 30, 1947, estimated by the Corporation to be approximately $879,610, is not reflected in the bal
ance sheet.
36
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 1 4 .
D
A sse t
e p o s it
and
L ia b il it y
and
I n co m e St a t e m e n t s
I n s u r a n c e C o r p o r a t io n —
for
Y
ear
E n d e d Ju n e
fr om
of th e
F ederal
A u d it o r s ’ R e p o r t
30, 1947— Continued
NOTES: continued
4. Public Law 363, Eightieth Congress, approved August 5, 1947, directs the Corporation to
retire its capital stock by paying the amount received therefor (whether received from the Secretary
of the Treasury or the Federal Reserve banks) to the Secretary of the Treasury. The act provides among
other things that:
“ As soon as practicable after the enactment of this Act, the Corporation shall pay to the
Secretary so much of its capital and surplus as is in excess of $1,000,000,000. The balance of the
amount to be paid to the Secretary shall be paid in units of $10,000,000. Each unit shall be paid
as soon as it may be paid without reducing the capital and surplus of the Corporation below
$1,000,000,000. As each payment is made a corresponding amount of the capital stock of the Cor
poration shall be retired and canceled and the receipt or certificate therefor shall be surrendered
or endorsed to show such cancellation. The stock subscribed by the various Federal Reserve banks
shall be retired and canceled, pro rata, before the stock subscribed by the Secretary is retired and
canceled.”
In conformance therewith, the Corporation paid to the Secretary of the Treasury on September 8,
1947, the sum of $146,695,250 ($139,299,557 to retire all of the outstanding stock in the name of the
Federal Reserve banks and $7,395,693 to retire a portion of the outstanding stock in the name of the
Secretary of the Treasury).
It is expected that all of the capital stock of the Corporation will be retired by August 1948.
5. The Corporation has been delegated the noninsurance function of supervising Federal credit
unions for the United States Government. This activity has resulted in a loss to June 30, 1947, of
$958,835, including $287,506 for the fiscal year 1947, which has been charged to the deposit insurance
reserve. To date, the Corporation has not requested an appropriation from the Congress to cover these
losses.
6. Under t,he provisions of section 12B of the Federal Reserve Act, as amended by section 101 of
the Banking Act of 1935 (subsection “ o” ), the Corporation was authorized and empowered to issue
and have outstanding its notes, debentures, bonds, or other such obligations, in a par amount aggre
gating $974,600,000 at June 30, 1947. This borrowing power is canceled under the provisions of Public
Law 363, Eightieth Congress, approved August 5, 1947, which authorizes the Corporation to borrow
from the Treasury, on such terms as may be fixed by the Corporation and the Secretary, such funds
as in the judgment of the board of directors of the Corporation are required from time to time for in
surance purposes, not exceeding, in the aggregate, $3,000,000,000 outstanding at any one time. The
Corporation has never used the borrowing power granted to it by the Congress.
7. The Corporation estimates that the insured deposits in operating insured banks amounted to
approximately $73,000,000,000 at June 30, 1947.
8. In the foregoing balance sheet, the surplus of the Corporation as at June 30, 1947, is reflected
as “ Deposit insurance reserve.”
PART TWO
BANKING DEVELOPMENTS
B anks
and
B ranches
The annual changes in the number of banks and branches during the
war and postwar years have not been great. Still, it may be noted that
the number of insured banks has grown slowly but consistently since
1942, while the number of noninsured banks has declined in each year
since the beginning of Federal deposit insurance.
On December 31, 1947, the 13,597 insured commercial and mutual
savings banks represented 92 percent of the number of all banks in the
United States and possessions. The proportion of all bank deposits in
insured banks was even greater, amounting to 95 percent.
In seven States and the District of Columbia deposits of all of the
banks are insured by the Federal Deposit Insurance Corporation, and in
thirty-two States the proportion of insured banks isHbetween 90 and 100
percent. States in which less than 90 percent of the banks are insured
include: most of the New England States where a large number of mutual
savings banks have remained outside the Federal insurance system;
South Carolina, in which a number of cash depositories, the investments
of which are limited in character, are operating; Georgia, which has the
largest number of private banks of any State; and Kansas and Nebraska.
The proportion of insured banks in each State is shown in Chart C.
chart
INSURED
DECEMBER
UNITED
STATES
c
BANKS AS A PER CENTAGE
AVERAGE
92
39
31, 1947
OF A L L BANKS
40
FEDERAL DEPOSIT INSURANCE CORPORATION
Changes in the number of banks and branches. The yearly
decreases in the number of banks during the prewar and war periods
were succeeded by net increases in 1945, 1946, and 1947. Unlike the
rapid growth in the number of establishments in many other kinds of
businesses, however, the growth in the number of banks during the
exceptionally prosperous postwar years has been small. The net increase
of all banks amounted to 16 in 1947, 34 in 1946, and 15 in 1945. The
efforts of the State and national supervisory agencies to secure adequate
management and capitalization of new banks in order to prevent re
currence of the pattern of speculative over-banking in many communities
such as took place in the early part of this century have served to check
the expansion in the number of banks. In addition, the returns from the
establishment of new banks have appeared to be less attractive than the
prospective returns from many other types of enterprises.
In 1947 as in recent years the admission of operating banks to insurance
was the primary factor contributing to the net growth in the number
of insured banks. During 1947, as shown in Table 15, there was a net
increase of 47 in the number of insured banks; the net shift of noninsured
to insured banks accounted for 31 and the number of insured banks
beginning operations exceeded those ceasing operations by 16. During
the 6-year period from the end of 1941 to the end of 1947 the net shift
of noninsured to insured banks totaled 279. Consequently, the number
of insured banks increased over the period even though the total number
of banks decreased.
Table 15.
and
C hanges
in
B ranches
N
1947
I n sured
and
N
U n it e d S t a t e s
and
P o s s e s s io n s
u m b e r of
in th e
and the
P e r io d
Total
Insured
B anks
1942-1947
During 1947
Type of change
o n in s u r e d
During 1942-1947
' Non
insured
Total
Insured
Non
insured
All banking offices
Net change.........................................
Offices opened..................................
Offices closed....................................
Changes in classification—net........
205
333
128
224
307
114
31
-19
26
14
-31
415
1,645
1,230
786
1,522
1,082
346
-371
123
148
-346
Banks
Net change.........................................
Banks beginning operations...........
Banks ceasing operations................
Changes in classification—net........
16
113
97
47
99
83
31
-31
14
14
-31
-225
521
746
115
446
610
279
-340
75
136
-279
189
220
177
208
12
12
640
1,124
671
1,076
-31
48
2
218
31
2
206
31
12
386
738
484
38U
692
472
2
46
12
9
22
9
22
307
177
305
167
67
2
10
-67
Branches
Net change.........................................
Branches opened for business........
Facilities provided as agents of
the government...........................
Other branches opened..................
Branches discontinued ..................
Facilities provided as agents of
the government...........................
Other branches discontinued ..
Changes in classification—net........
BANKS AND BRANCHES
41
Although the number of banks has declined since the beginning of
the war, the number of branches has increased. In 1947 the net increase in
branches was 189, representing 30 percent of the net increase of 640
from the end of 1941 to the end of 1947. During the war much of the
growth in the number of branches was in facilities provided as agents
of the United States Government. By 1947, however, most of these
facilities had been closed.
A ssets
and
D
e p o s it s
The dominant banking development in 1947, as in 1946, was the rapid
expansion of bank loans to business and individuals, particularly during
the second half of the year. The demand for credit continued to be
strong. Business borrowed from banks to expand and improve plant
and equipment, to build up inventories, and to meet the other financial
requirements of increased business activity. The use of bank credit by
individuals to buy homes and other consumer goods continued to rise.
State and local governments floated bond issues for veterans’ bonuses
and for deferred improvements of roads and school systems. Although
widely expected following the end of the war, a general business recession
failed to appear. On the contrary, further price inflation rather than
deflation has characterized developments thus far during the postwar
period, and in most of the major segments of the economy the supply
of goods has not met the effective demand.
Assets and deposits of all banks. Total assets of all commercial
and mutual savings banks rose $7 billion in 1947 and amounted to $176
billion at the year end. This total was $2 billion less than the peak reached
on December 31, 1945. As shown in Chart D, however, bank assets in
most States were higher at the close of 1947 than in 1945. During this
period the decline in bank assets in New York and a few other States
exceeded the increases in the rest of the country.
The differences in the expansion or contraction of bank assets by
States since the war indicate the combined impact of Federal fiscal policy
and of relative changes among the States in the value of the output of
goods and services. Thus, bank assets at the close of 1947 were 8 percent
below the 1945 peak in New York State where the contractive effects
of the debt retirement program were most marked. At the other extreme,
the largest relative increase in bank assets during the first two postwar
years occurred in the Dakotas. There, agricultural prosperity was ex
ceptional as a result of a combination of bumper production and relatively
high prices for the major products of the area.
One of the major effects of the postwar credit expansion was to con
tribute further to the inflationary pressure generated by the rapid growth
in the money supply during the war. Business and personal deposits
42
FEDERAL DEPOSIT INSURANCE CORPORATION
rose 5 percent during 1947. This was a less rapid rate for the year as a
whole than for 1946 when these deposits rose 10 percent. In the first
part of 1947 business and personal deposits receded as tax payments were
not entirely returned to the income stream through Government ex
penditures for goods and services but were partially extinguished through
retirement of Federal debt held by the banking system. In the latter
part of the year, however, these deposits expanded again, largely as a
result of the expansion of loans.
CHART D
PERCENTAGE CHANGE IN T O T A L AS S E TS OF A L L BANKS
DECEMBER 31, 1945
UNI TED S T A T E S A V E R A GE
TO DECEMBER
31, 1947
- 1%
Total deposits in all banks were 4 percent higher on December 31,
1947, than at the end of the preceding year, since the rise in business
and personal deposits during the latter part of the year exceeded the
reduction in United States Government deposits in the first part of the
year. In 1946, when the reduction in deposits of the United States Govern
ment was much greater than in 1947, total deposits in all banks declined
by 6 percent. United States Government deposits dropped from 15
percent of total deposits at the close of 1945 to 1 percent at the end of
1947.
The volume of the principal assets and liabilities of all banks at the
close of 1945, 1946, and 1947 is given in Table 16.
43
ASSETS AND DEPOSITS
Table 16.
A sse ts
and
and
L ia b il it ie s
P o s s e s s io n s , D
of
ecem ber
A ll B a n k s
in t h e
31, 1947, 1946,
and
U n it e d St a t e s
1945
(Amounts in millions of dollars)
Asset, liability, or capital
account item
Dec. 31,
1947
Dec. 31,
1946
Dec. 31,
1945
Total assets.................................................
Percentage change
during—
1947
1946
-5.0%
$176,007
$169,256
$178,203
Cash and funds due from banks.............
United States Government obligations..
Obligations of States and political sub
divisions .................................................
Other securities.........................................
Loans, discounts, and overdrafts............
Miscellaneous assets.................................
38,559
81,623
35,185
87,032
35,585
101,822
9.6
-6.2
-1.1
-14.5
5,362
5,398
43,229
1,836
4,471
5,046
35,810
1,712
4,064
4,531
30,473
1,728
19.9
7.0
20.7
7.2
10.0
11.4
17.5
-0.9
Total liabilities and capital accounts..
176,007
169,256
178,203
4.0
-5.0
Total deposits.........................................
Business and personal—total...............
Demand...............................................
Time....................................................
Certified checks, etc.............................
United States Government..................
States and political subdivisions..........
Interbank (including postal savings). .
Miscellaneous liabilities............................
Total capital accounts..............................
162,713
140,341
85,302
52,If38
2,601
1,534
7,788
13,050
1,298
11,996
156,753
133,956
81,276
50,28k
2,396
3,164
6,895
12,738
1,158
11,345
166,474
121,776
73,876
1+5,285
2,615
24,770
5,786
14,142
1,203
10,526
3.8
4.8
5.0
U.3
8.6
-51.5
13.0
2.4
12.1
5.7
-5.8
10.0
10.0
11.0
-8.U
-87.2
19.2
-9.9
-3.7
7.8
Number of banks included...........................
14,755
14,655
14,621
0.7
0.2
4.0%
Types of assets of commercial banks. Total assets of commercial
banks rose to $156 billion at the end of 1947 after declining moderately
in the first half of the year. These movements were closely related to
the changes which occurred in the reserve position of the banks. Changes
in the amount of reserves available in 1947 were affected primarily by
gold inflows and changes in the amount of United States Government
obligations held by the Federal Reserve banks. In the first part of 1947
member bank reserves declined as cash retirements of the Federal debt
held by the Federal Reserve banks exceeded the gold inflow. However,
in the last half of the year reserves increased materially as the retirement
of debt held by the Federal Reserve banks failed to offset Reserve bank
purchases of United States Government obligations and the further
inflow of gold.
The expansion of bank loans to business and individuals and the
reduction in Federal debt held by the banking system reversed the
wartime trend in the distribution of assets. United States Government
securities declined from 57 percent to 45 percent of total assets of com
mercial banks between December 31, 1945, and December 31, 1947,
while the proportion of loans increased from one-sixth to nearly onefourth. The distribution of assets and liabilities of all commercial banks
is given in Table 17.
A special study of the loans of insured commercial banks, 1934-1947,
is presented in Part Three of this report.
44
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 17.
A ssets
U n it e d St a t e s
and
and
L ia b il it ie s
P o s s e s s io n s , D
D
ecem ber
of
A l l C o m m e r c ia l B a n k s
ecem ber
31, 1946
and
31, 1947,
1945
June
in th e
30, 1947,
(Amounts in millions of dollars)
Asset, liability, or
capital account item
Dec. 31,
1947
June 30,
1947
Dec. 31,
1946
Dec. 31,
1945
T otal assets............................
$156,293
$147,887
$150,552
$161,182
37,673
32,878
34,366
69,645
70,976
75,253
5,297
3,745
4,976
3,595
4,411
3,707
38,284
1,649
33,893
1,569
Cash and funds due from
banks.................................
United States Government
obligations........................
Obligations of States and
political subdivisions.......
Other securities....................
Loans, discounts, and over
drafts. . ..............................
Miscellaneous assets............
T otal liabilities and capital
a c c o u n ts..........................
Percentage
distribution
Dec. 31,
1947
Dec. 31,
1945
100.0%
100.0%
34,975
24.1
21.7
91,149
44.6
56.5
3,974
3,366
3.4
2.4
2.5
2.1
31,283
1,532
26,193
1,525
24.5
1.0
16.3
0.9
156,293
147,887
150,552
161,182
100.0
100.0
T otal d eposits....................
Business and personal—
total...........................
144,950
136,749
139,883
151,089
92.7
93.7
122,584
116,038
117,092
106,397
78.4
66.0
Demand...............................
Tim e.....................................
Certified checks, etc.........
85,291
3U,69U
2,599
79,5Jf.O
SU,351
2,1U7
81,265
33,^32
2,395
73,867
29,917
2,613
5U-6
2 2.2
1.6
U5.8
18.6
1.6
United States Government
States and political sub
divisions ........................
Interbank (including post
al savings).....................
Miscellaneous liabilities. . . .
Total capital accounts.........
1,531
1,420
3,161
24,767
1.0
15.4
7,786
7,518
6,893
5,784
5.0
3.6
13,049
1,236
10,107
11,773
1,209
9,929
12,737
1,108
9,561
14,141
1,160
8,933
8.3
0.8
6.5
8.7
0.7
5.6
Number of banks included....
14,222
14,222
14,114i
14,0793
1 Noninsured nondeposit trust companies are not included.
In view of the increasing proportion of loans, many of which have been
made in a period of high prices and expanding business activity, the
probability of higher rates of losses in the future has increased. However,
the risk incurred was diminished to the extent that loans were protected
by Government guarantee or insurance.
At the end of 1947 approximately $5 billion, or 13 percent, of the
amount of loans outstanding at commercial banks were covered by
Federal Government guarantee or insurance provisions which protected
the bank from loss either in whole or in part. Since most of the Govern
ment guarantee or insurance was applied to real estate loans, regarded
as one of the more hazardous types, the importance of this protection
to banks is probably more than the overall figures would indicate. Table
18 shows the amount of commercial bank loans outstanding and insured
or guaranteed by agencies of the United States Government, together
with the guaranteed portion on December 31, 1947.
Commercial bank portfolios of United States Government securities
declined from $75 billion at the beginning of 1947 to $70 billion at the
45
ASSETS AND DEPOSITS
close of the year. Most of this decrease occurred as a result of retirements
of short-term obligations by the Treasury in the first half of the year. In
the second half of 1947 commercial bank holdings of Treasury bills and
notes increased as interest rates on these short-term instruments advanced,
and the rate of debt retirement moderated. The amount of certificates
of indebtedness was reduced, however. Following declines in the market
prices for United States Government bonds below previous support
levels, holdings of bonds were also reduced at the close of the year.
Table 18.
C o m m e r c ia l B a n k L o a n s G u a r a n t e e d
of th e
U n it e d St a t e s G o v e r n m e n t , D
or
I nsured
by
A g e n c ie s
31, 1947
ecem ber
(Amounts in millions of dollars)
Type of loan and guarantor agency
Total guaranteed
in whole or in
part
Guaranteed
portion
All types..............................................................................
$5,143i
$3,477i
Real estate—total.............................................................
3,898
2,733
Federal Housing Administration....................................
Veterans Administration.................................................
1,801
2,097
1,786
947
Business loans—total......................................................
788
573
Veterans Administration.................................................
Reconstruction Finance Corporation.............................
Export-Import Bank........................................................
War Agencies, Regulation V ...........................................
Federal Reserve 13B........................................................
183
409
187
2
7
71
307
187
2
6
Farm loans—total.............................................................
87
76
Veterans Administration.................................................
Commodity Credit Corporation.....................................
21
66
10
66
Consumer loans—total...................................................
370i
95i
Federal Housing Administration....................................
370i
951
1 Includes a small amount of Title I loans made by mutual savings banks not available separately.
Based on records of guarantor agencies. Volume of commercial bank loans guaranteed by
Veterans Administration estimated upon the basis of a sample survey.
N o te:
The distribution of particular types of United States Government
obligations in portfolios of insured commercial banks has changed con
siderably since the end of the war, primarily due to the impact of the
debt retirement program.1 Between December 31, 1945, and December
31, 1947, the proportion of notes, bills, and certificates declined from
42 percent to 23 percent of the total. The proportion of bonds maturing
in 5 years or less, however, increased markedly after 1945, partly because
of the passage of time. The proportion of bonds maturing in over 5 years
remained about the same. The change in the distribution of United
States Government obligations held by insured commercial banks is
presented in Table 19.
1
Prior to December 31, 1947, this distribution was available only for insured commercial banks,
which hold 98 percent of all commercial bank assets.
46
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 19.
M
a t u r it ie s of
U n i t e d S t a t e s G o v e r n m e n t O b l i g a t io n s H e l d
I n s u r e d C o m m e r c ia l B a n k s , D
ecem ber
31, 1947, 1946,
and
by
1945
(Amounts in millions of dollars)
Amount
Type and maturity
Dec. 31,
1947
Dec. 31,
1946
Percentage distribution
Dec. 31,
1945
Dec. 31,
1947
Dec. 31,
1946
Dec. 31,
1945
T otal U. S. Governm ent
o b lig a tio n s.........................
$67,960
Marketable issues:
Direct:
Treasury bills1..............
Certificates of indebted
ness1...........................
Treasury notes1............
2,124
1,272
2,456
3.1
1.7
2.8
7,555
5,920
12,293
6,781
19,075
16,047
11.1
8.7
16.7
9.2
21.5
18.0
18,341
22,202
7,534
2,654
12,728
29,700
6,597
3,008
9,030
32,230
6,092
2,787
27.0
32.7
11.1
3.9
17.3
40.4 *
9.0
4.1
10.2
36.2
6.9
3.1
Bonds maturing in:2
5 years or less...........
5 to 10 years.............
10 to 20 years...........
Over 20 years...........
$73,575
$88,933
100.0%
100.0%
100.0%
Guaranteed issues............
14
15
22
(3)
(3)
(3)
Non-marketable issues4.......
1,616
1,181
1,194
2.4
1.6
1.3
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 Includes United States savings bonds, Treasury bonds (investment series A-1965), and depositary
bonds. Prior to December 31, 1947, this item included United States savings bonds only; depositary
bonds were included with other United States bonds according to maturity.
Types of assets of mutual savings banks. Total assets and liabilities
of mutual savings banks have continued to increase during the postwar
years, but at a slower rate than during the war years. Total deposits
rose 5 percent during 1947 compared with an increase of 10 percent in
1946. Total assets of all mutual savings banks amounted to nearly $20
billion on December 31, 1947. One-fourth of this total was invested in
loans, mostly real estate mortgage loans. More than 60 percent or $12
billion was invested in United States Government obligations. More
detailed data are presented in Table 20.
By far the largest proportion of United States Government obligations
held by mutual savings banks was in long term bonds. This predominance
was an important factor in the continued growth of these holdings be
cause the Federal debt retirement program during the postwar period
has been focused upon short-term issues.
The maturity distribution of United States Government obligations
held by mutual savings banks was reported for the first time as of De
cember 31, 1947, and is presented in Table 21. Bonds maturing after 10
years constituted almost 80 percent of the total portfolio. Treasury notes,
bills, and certificates, and bonds maturing in less than 5 years, comprised
8 percent of the portfolio.
47
ASSETS AND DEPOSITS
Table 20.
A s s e t s a n d L i a b i l i t i e s o f A l l M u t u a l S a v in g s B a n k s in t h e
U n i t e d S t a t e s , D e c e m b e r 31, 1947, 1946, a n d 1945
(Amounts in millions of dollars)
Asset, liability, or surplus and
capital account item
Dec. 31,
1947
Dec. 31,
1946
Percentage change*
during—
Dec. 31,
1945
1947
T otal assets.................................................
Cash and funds due from banks..............
United States Government obligations..
Obligations of States and political sub
divisions .................................................
Other securities.........................................
Loans, discounts, and overdrafts............
Miscellaneous assets.................................
1946
9.9%
$19,714
$18,704
$17,021
886
11,979
819
11,779
610
10,673
8.2
1.7
34.3
10.4
65
1,653
4,944
187
60
1,339
4,527
180
89
1,166
4,280
203
7.0
23.5
9.2
3.9
-32.2
14.8
5.8
-11.3
5.4%
T otal liabilities and surplus and capital
a c c o u n ts...............................................
19,714
18,704
17,021
5.4
9.9
Total deposits............................................
Miscellaneous liabilities............................
Surplus and capital accounts...................
17,763
62
1,889
16,870
50
1,784
15,385
43
1,593
5.3
23.3
5.9
9.7
16.3
12.0
Number of banks included...........................
533
-1.5
0.2
542i
541i
1 Computed from unrounded figures.
2 Includes 8 noninsured guaranty savings banks in New Hampshire.
Table 21.
M a t u r it ie s o f U n ite d S ta te s G o v e r n m e n t O b lig a t io n s H e ld
b y M u t u a l S a v in g s B a n k s , D e c e m b e r 31, 1947
(Amounts in millions of dollars)
Percentage
distribution
Amount
Type and maturity
100.0%
T ota l United States Governm ent ob lig a tio n s..........
$11,978
Marketable issues:
Direct:
Treasury notes, bills, and certificates....................
314
2.6
Bonds maturing in;i
5 years or less........................................................
' 5 to 10 years..........................................................
10 to 20 years........................................................
Over 20 years........................................................
652
1,415
3,712
5,515
5.5
11.8
31.0
46.0
Guaranteed issues.........................................................
3
(2)
Non-marketable issues3....................................................
367
3.1
1 Based upon number of years to final maturity.
2 Less than 0.05 percent.
8 Includes United States savings bonds, Treasury bonds (investment series A-1965), and depositary
bonds.
C a p it a l
Total capital accounts of all commercial banks amounted to $10
billion on December 31, 1947, 6 percent higher than at the beginning of
the year. As in earlier years most of the addition to bank capital in 1946
and 1947 came from retained earnings. In these two years, almost twothirds of net profits after taxes were added to capital accounts. However,
48
FEDERAL DEPOSIT INSURANCE CORPORATION
as shown in Chart E, the proportionof bank profits devoted to strength
ening capital structures varied widely among the different States, ranging
from 41 percent in Rhode Island to 86 percent in Nevada.
CHART E
NET ADDITIONS TO CAPITAL FROM PROFITS AS A PROPORTION
OF NET PROFITS A FTER TAXES DURING 1946 AND 1947
INSURED COMMERCIAL BANKS
U N I T ED S T A T E S
AVERAGE
64%
Preferred stock and capital notes and debentures. Further
progress was made in 1947 toward the retirement of the preferred stock
and capital notes and debentures remaining in the capital accounts of
commercial banks. Most of this type of capital account represented
investment by the Reconstruction Finance Corporation. As indicated
by the data shown in Table 22, the retirement of this investment has been
substantial in relation to the small amounts outstanding in postwar
years.
Capital ratios. Since both assets and capital of commercial banks
grew at approximately the same rate in 1947, the average ratio of total
capital accounts to total assets of 6.5 percent at the end of the year was
almost unchanged from the beginning of the year. The rapid expansion
of loans to business and individuals in 1947, however, brought a sharp
decline in the ratio of capital accounts to risk assets, from 23.4 percent
at the beginning of the year to 20.6 percent at the end of the year.
49
CAPITAL
T a b le 2 2 .
in th e
C a p it a l A
ccounts a n d
U n it e d St a t e s
and
C a p i t a l R a t io s
P o s s e s s io n s , D
of
ecem ber
A l l C o m m e r c ia l B a n k s
31, 1947, 1946,
and
1945
(Amounts in millions of dollars)
Type of capital account
or capital ratio
Dec. 31,
1947
Dec. 31,
1946
Dec. 31,
1945
Percentage change
during—
1947
Capital accounts— total...........................
Capital stock, notes, and debentures—
total....................................................
Common stock.........................................
Preferred stock, capital notes and de
bentures ...............................................
Surplus.......................................................
Undivided profits, including all other
capital accounts.....................................
Ratio of total capital accounts to:
Total assets................................................
Assets other than cash and United States
Government obligations.......................
$10,107
$9,561
$8,933
1946
5.7%
7.0%
3,337
3,192
3,243
3,068i
3,130
2,9031
2.9
U.O
3.6
5.7
115
4,450
1751
4,155
2271
3,873
-17.1
7.1
-22.9
7.3
2,320
2,163
1,930
7.3
12.1
6.5%
20.6
6.4%
23.4
5.5%
25.5
1 Partly estimated.
The problem of low capital ratios, as indicated in Chart F, is partly
regional in character. Those States where the average capital ratios were
lowest were typically the States where the expansion in bank assets during
the war and postwar periods was relatively largest, notably in the West.
CHART F
RATIOS OF TOTAL
CAPITAL ACCOUNTS TO TOTAL ASSETS
COMMERCIAL BANKS
DECEMBER 31,1947
UN I T E D S T A T E S
AVERAGE
6. 5 %
50
FEDERAL DEPOSIT INSURANCE CORPORATION
A similar pattern of regional variation in the capital ratio is shown by
the distribution of banks according to ratios of adjusted capital accounts
to appraised value of total assets. This distribution, which is obtained
from the reports of examination of insured commercial banks, is given
for each Federal Deposit Insurance Corporation district in Table 23.
In the San Francisco district more than one-half of the banks had a
capital ratio below 5 percent while only 3 percent of the banks had ratios
of 10 percent or more. In the Boston district one-fourth of the banks
had a capital ratio of 10 percent or more, while less than 2 percent of
the banks had a capital ratio of less than 5 percent.
T a b le 2 3 .
R e g i o n a l D i s t r i b u t i o n o f I n s u r e d C o m m e r c ia l B a n k s
A c c o r d i n g t o R a t i o o f A d ju s t e d C a p i t a l A c c o u n t s t o A p p r a is e d
V a l u e o f T o t a l A s s e t s , E x a m in a t io n s in 194 7
FDIC district
All districts............................
All
banks
examined
Banks with a ratio of adjusted capital accounts to
appraised value of total assets of—
0.0%
to
2.4%
2.5%
to
4.9%
5.0%
to
7.4%
7.5%
to
9.9%
10%
or
more
12,747
54
3,824
5,717
2,103
1,049
2
7
8
73
128
205
190
505
656
459
151
287
501
212
114
151
329
100
363
683
697
588
126
200
132
96
70
74
25
25
417
577
409
173
68
166
130
34
12
50
85
14
1.
2.
3.
4.
Boston................................
New Y ork..........................
Columbus...........................
Richmond...........................
463
1,016
1,616
983
5.
6.
7.
8.
Atlanta...............................
St. Louis.............................
Madison.............................
Chicago..............................
791
1,398
1,311
1,342
3
226
440
457
630
9. St. Paul. . ..........................
10. Kansas City....... ...............
11. 'Dallas.................................
12. San Francisco....................
1,010
1,370
987
460
13
10
7
5
500
567
356
234
6
1
Examiners’ evaluation of capital and appraisal of assets. The
downward trend for insured commercial banks in the proportion of
substandard assets, in relation to both adjusted capital accounts and
the appraised value of total assets, stopped in 1947, as shown in Table
24. The increase in these ratios, however, was slight and the 1947 ratios
were still well below the prewar figures.
There was a slight decline in the proportion of banks with no sub
standard assets in 1947 as compared with 1946, but the proportion was
still higher than in 1945. Distributions of insured commercial banks
according to the ratio of substandard assets to adjusted capital accounts
for the years 1945, 1946, and 1947 are given in Table 25.
The general high quality of bank assets in recent years is primarily
a reflection of business prosperity. Many loans and investments which
were formerly substandard in quality have worked out satisfactorily.
Among the assets which were acquired recently, however, there will be
51
CAPITAL
many which appear sound although they have inherent weaknesses not
easily recognizable in a boom period. Such assets will be particularly
vulnerable if there should be a decline in business activity. Even though
business activity and employment should remain generally favorable,
some segments of the economy will experience difficulties from time to
time which will adversely affect the credit quality of individual loans
and securities.
S u b s t a n d a r d A s s e t R a t i o s o f I n s u r e d C o m m e r c ia l B a n k s
T a b le 2 4 .
E x a m in e d in 1 9 3 9 -1 9 4 7
Ratio of substandard assets to—
Year
Appraised
value of
total assets
Adjusted
capital
accounts
1947.................
1946.................
1945.................
1944.................
0.48%
0.36
0.45
0.69
7.42%
6.02
7.58
10.92
1943...........
1942.......................................................................................
1941.......................................................................................
1940.......................................................................................
1939.......................................................................................
1.24
2.13
2.84
3.93
5.12
17.84
25.26
31.12
40.35
48.21
T a b le 2 5 .
D i s t r i b u t i o n o f I n s u r e d C o m m e r c ia l B a n k s A c c o r d i n g t o
R a t io o f S u b s ta n d a r d A s s e ts t o A d ju s te d C a p it a l A c c o u n t s
E x a m in a t io n s i n 1 9 47, 1 946 a n d 1945
Percentage distribution
Number of banks
Bank group
1946
1947
1945
1947
1946
1945
12,747
12,493
12,473
100.0%
100.0%
100.0%
N one.....................................
9.9% or less.........................
10.0% to 19.9% ...................
20.0% to 29 .9% ..................
3,556
5,667
1,719
817
3,741
5,753
1,558
640
3,106
5,902
1,836
769
27.9
44.5
13.5
6.4
29.9
46.0
12.5
5.1
24.9
47.3
14.7
6.2
30.0% to 39.9% ...................
40.0% to 49.9% ...................
50.0% to 99.9% ...................
100.0% or more...................
381
223
304
80
345
183
228
45
332
202
280
46
3.0
1.7
2.4
0.6
2.8
1.5
1.8
0.4
2.7
1.6
2.2
0.4
All banks exam ined.............
Banks w ith a ratio o f su b
standard assets to ad
justed capital accounts
o f:
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 reached record levels in 1947, continuing an upward trend un
interrupted since 1938. The increase in total current operating earnings
in 1947 was largely offset by the growth in current operating expenses;
52
FEDERAL DEPOSIT INSURANCE CORPORATION
net current operating earnings were only slightly above the 1946 level.
Net losses and charge-offs on assets in 1947 were in contrast to the sub
stantial net recoveries and profits on assets realized in the preceding
years. As a result net profits after taxes in 1947 fell 13 percent below 1946.
In 1947 net profits after taxes represented a rate of return of 8.2
percent on capital accounts. Dividends paid to stockholders increased
to the highest level of any year of Federal deposit insurance. Although
net profits after taxes retained in capital accounts were 23 percent below
the amount retained in 1946, they were sufficient to maintain the capital
ratio at the level reached at the end of 1946. Chart G compares the 1946
and 1947 operating experience of insured commercial banks, while basic
operating data for the period 1934 to 1947 are shown in Table 26.
T a b le 26.
E a r n i n g s , E x p e n s e s , a n d P r o f i t s o f I n s u r e d C o m m e r c ia l B a n k s ,
1 9 3 4 -1 9 4 7
(Amounts in millions of dollars)
Net
profits
retained
in
capital
accounts
Total
current
operating
expenses1
Net
current
operating
earnings1
Profits
on
securities
sold
Net
chargeoffs2
on assets
Income
taxes3
1947..
1946. .
1945..
1944. .
$3,098
2,863
2,482
2,215
$1,982
1,763
1,523
1,357
$1,116
1,100
960
858
$100
209
267
130
$132
83
22
34
$302
323
299
203
$781
902
906
751
$315
299
274
253
$466
603
631
498
1943. .
1942. .
1941. .
1940..
1939. .
1,959
1,790
1,730
1,631
1,605
1,256
1,222
1,216
1,170
1,148
703
569
514
461
457
103
66
145
178
215
41
114
154
215
272
128
79
50
23
12
638
441
455
401
388
233
228
253
237
232
404
213
201
164
156
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
300
381
524
207
-3405
222
226
223
208
188
78
155
301
Year
10
11
12
5
3
Net
profits
after
taxes
Cash
dividends
declared
and
interest
paid on
capital
Total
current
operating
earnings
-5285
1 Figures for 1934-1941 are estimates and differ from reported figures by the amount of estimated income
taxes excluded from total current operating expenses. See footnote 3.
2 Book value of assets charged off minus recoveries on assets previously charged off.
3 Includes surtax and excess profits tax. Figures for 1934-1941 are estimates, based upon Bureau of Internal
Revenue figures of income taxes paid by national banks for 1934-1937, and paid by “ all banks and trust com
panies” for 1938-1941. Income 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 FDIC.
6 Net loss.
Total current operating earnings. Total current operating earnings
of $3,098 million in 1947 were 8 percent above the previous year. These
record earnings were chiefly due to the unprecedented $1,282 million
income on loans, which was one-third higher than in 1946, and over threefourths above 1945. The proportion of total current operating earnings
derived from loan income rose to 41 percent in 1947, as compared with
an all-time low of 29 percent in 1945.
EARNINGS OF INSURED COMMERCIAL BANKS
CHART
OPERATING EXPERIENCE
6
OF INSURED
COMMERCIAL BANKS
1946- 1947
(AMOUNTS IN MILLIONS OF DOLLARS)
53
54
FEDERAL DEPOSIT INSURANCE CORPORATION
The gain in loan income resulted both from a substantial growth in
the volume of loans and an increase in the average rate of income on
loans. The higher average rate of income on loans reflected primarily an
increase in the proportion of loans bearing relatively higher interest
rates. The average rate of income on loans and other operating ratios
for recent years are shown in Table 27. A further discussion of loan
income is given in Part Three.
Table 27.
S e l e c t e d O p e r a t i n g R a t i o s o f I n s u r e d C o m m e r c ia l B a n k s ,
1941, 1945-1947
Operating ratio
1947
1946
1945
0.72%
10.01
0.66%
10.87
1941
Net current operating earnings to total assets.............
Net profits after taxes to total capital accounts...........
Dividends and interest on capital to total capital
accounts.........................................................................
Retained net profits to total capital accounts..............
3.31
4.89
3.32
6.69
3.29
7.58
3.75
2.97
Average rate of income on loans.....................................
Average rate of income on securities.............................
Average interest paid on time and savings deposits. . .
Average service charges to demand deposits................
Income taxes to net profits before income taxes..........
3.79
1.60
0.87
0.14
27.89
3.43
1.56
0.84
0.11
26.38
3.09
1.46
0.87
0.10
24.80
4.27
1.95
1.20
0)
9.91
0.75%
8.20
0.70%
6.72
1 Not available.
The amount of income on securities declined for the first time since
1940. Income from securities constituted two-fifths of total operating
earnings in 1947, as compared with about one-half in 1945 and 1946.
The drop in income on United States Government obligations to $1,080
million in 1947 was due mainly to Federal debt retirement and, to a
lesser degree, to the sale of such obligations by insured banks. Interest
and dividend income from other securities increased slightly to $179
million in 1947 as a result of the increase in bank holdings of municipal
and other securities.
The average rate of income on all securities rose slightly to 1.6
percent in 1947. This rate advance extended the 1946 reversal of a down
ward trend in the average rate of income on securities which had pre
viously continued since 1937. The increase in the average rate of return
on United States Government obligations to 1.5 percent resulted largely
from the retirement of a substantial proportion of short-term, lowyield issues. In contrast, the average rate of income on other securities
continued to decline, falling to 2.2 percent in 1947.
Current operating earnings other than from loans and securities
constituted 18 percent of the total in 1947. Service charges on deposit
accounts and income from trust departments each provided slightly less
than 5 percent of total operating earnings. Income from service charges,
which has contributed increasingly to earnings in recent years, increased
sharply in 1947. Miscellaneous earnings from commissions, fees, and
rentals accounted for the rest of current income. The proportional con
55
EARNINGS OF INSURED COMMERCIAL BANKS
tribution of the chief components of total earnings and expenses, re
spectively, are shown in Table 28.
T a b le 2 8 .
D i s t r i b u t i o n o f E a r n i n g s a n d E x p e n s e s o f I n s u r e d C o m m e r c ia l
B a n k s , 1941, 1945-1947
1947
1946
1945
1941
Total current operating earnings1............................
Interest and dividends on securities...........................
Government.................................................................
Other..........................................................................
Interest, discount and fees on loans...........................
Service charges on deposit accounts...........................
Other current operating earnings...............................
100.0%
40.6
SU.9
5.8
41.4
4.8
13.2
100.0%
48.7
U2.6
6.2
33.2
4.4
13.7
100.0%
52.4
U5.6
6.7
29.3
4.4 )
13.9 j
100.0%
29.4
(2)
(3)
49.0
21.6
Total current operating expenses1...........................
Salaries and wages........................................................
Interest on time and savings deposits........................
Taxes other than on net income.................................
Other current operating expenses...............................
100.0
47.8
15.1
5.2
31.9
100.0
47.1
15.2
5.5
32.2
100.0
45.4
15.3
6.5
32.8
100.0
42.3
15.6
8.5
33.6
Earnings or expense item
1 Percentages do not necessarily balance because of rounding.
2 Not available separately.
Total current operating expenses. Total current operating expenses
of insured commercial banks continued to advance. The 12 percent
growth in 1947 was distributed among all major expense items.
Salaries and wages constituted 48 percent of total operating expenses
in 1947, a somewhat higher proportion than during the prewar and war
years. The 14 percent increase in salaries and wages during 1947 was due
about equally to increased employment and higher salaries, as shown
in Table 29. Between 1941 and 1947 the average annual salary of bank
officers increased 43 percent to $5,370, while that of other employees
rose 47 percent to $2,169.
T a b le 2 9 .
C o m p a r is o n o f A v e r a g e N u m b e r a n d A v e r a g e S a l a r y o f E m p lo y e e s
o f I n s u r e d C o m m e r c ia l B a n k s , 1941, 1946, a n d 1947
Percentage change—
Salary item
1947
1946
1941
1946 to 1947
1941 to 1947
0.3%
-0.2%
Number of banks,
December 3 1 ................
13,403
13,359
13,427
Average number of em
ployees (full and
part time):
Officers..........................
Other employees..........
64,218
277,733
60,908
258,335
56,392
204,319
5.4
7.5
13.9
35.9
Salaries and wages:
Officers..........................
Other employees..........
$344,845,000
602,266,000
$309,220,000
521,709,000
$211,311,000
302,627,000
11.5
15.4
63.2
99.0
Average salary:1
Officers..........................
Other employees..........
$5,370
2,169
$5,077
2,020
$3,747
1,481
5.8
7.4
43.3
46.5
1 Average salary is computed by dividing the total salary payment by the average of the number of
full and part time employees at the beginning and end of the year.
56
FEDERAL DEPOSIT INSURANCE CORPORATION
Interest on time and savings deposits, the next largest single element
in current operating expenses, accounted for 15 percent of total expenses
in 1947. Interest payments increased to nearly $300 million, the highest
level since 1934. The aggregate amount of interest on deposits declined
steadily between 1934 and 1943. This was due to the reduction in the
average rate of interest, w^hich dropped from 2.4 in 1934 to less than 1
percent at the close of the period. Although the rate of interest on savings
deposits increased slightly in 1947, the substantial advance in interest
payments during the year was due almost entirely to the increased
volume of savings deposits.
Other current operating expenses, including taxes other than on net
income and recurring depreciation, increased at a rate commensurate
with the growth in total expenses.
Net current operating earnings. Net current operating earnings
continued to increase, and amounted to $1,116 million in 1947. The
ratio of net earnings to total assets advanced to three-fourths of 1 percent,
the highest since 1939, and about the same as the 1935-1941 average.
The 1947 rate of net earnings on total assets represented a rapid growth
from the two-thirds of 1 percent return of 1945, when current operations
made a smaller contribution to record net profits.
Charge-offs, recoveries, and profits on assets. Net recoveries
and profits on assets of $125 million in 1946 changed to net losses and
charge-offs of $32 million in 1947. This was due chiefly to three devel
opments: a sharp reduction in profits on the sale of securities; a sub
stantial increase in losses on loans; and a reduction in recoveries on all
major types of assets.
Profits on the sale of securities amounted to $100 million in 1947,
about half of the total reported for the previous year. The long-term
downward trend in interest rates on the types of securities held by banks
was reversed in 1946, and since then the rates have increased appreciably.
During the period of the decline, the prices of outstanding fixed income
bearing securities tended to rise. Furthermore, many issuers who were
in a position to call securities for payment did so and refinanced by the
flotation of securities at the lower rates of interest then prevailing.
Accordingly, banks reported an increasing amount of profits on securities
sold or redeemed between 1942 and 1945. However, the opportunity for
profit on the sale or redemption of securities was reduced in the latter
part of 1946 and was greatly restricted in 1947 because the issuers no
longer found it attractive to refinance and the amount of securities in
bank portfolios on which there was a market profit over book value
was rather small.
Losses and charge-offs on loans rose from $71 million in 1946 to $120
million in 1947. Much of this increase was to be expected in view of the
57
EARNINGS OF INSURED COMMERCIAL BANKS
phenomenal postwar growth in the volume of loans. However, there
was also a moderate advance in the rate of losses, from 26 cents per $100
of loans in 1946 to 36 cents per $100 of loans in 1947. Some of the increase
in losses and charge-offs may have been due to the ruling on December
8, 1947, of the Bureau of Internal Revenue liberalizing for tax purposes
the computation of authorized reserves for bad debt losses on loans.
Recoveries on all types of assets declined in 1947. The total of $162
million was substantially below the 1945 and 1946 recoveries. The decline
in recoveries reflected in part the lower charge-offs during the war, and
the fact that on assets previously charged off most of the recoveries
possible had already been obtained.
Net profits. Net profits before income taxes totaled $1,084 million
in 1947, 12 percent below the record level of the previous year. The decline
was due to the shift from an excess of profits and recoveries to an excess
of losses and charge-offs. Accordingly, income taxes were lower in amount,
although they absorbed 28 percent of net profits before taxes in 1947,
compared with 26 percent in 1946, and an almost negligible proportion
in the prewar period.
Net profits after taxes of $781 million in 1947 represented a rate of
return of 8.2 percent on total capital accounts. This was about midway
between the 9.9 percent average ratio of the previous four years and
the 5.9 percent average return during the period 1935-1941. The higher
average rate of net profits to total capital accounts since 1941 is partly
a result of the fact that the greater aggregate profits from a larger volume
of assets has been achieved without a commensurate increase in the
capital cushion.
The upward movement since 1943 in the proportion of banks with
high rates of net profit to total capital accounts was checked in 1947.
The distribution of banks according to rates of net profit is shown in
Table 30.
Table 30.
P e r c e n t a g e D i s t r i b u t i o n o f I n s u r e d C o m m e r c ia l B a n k s G r o u p e d
b y R a t e o f N e t P r o f i t o n T o t a l C a p i t a l A c c o u n t s , 1941, 1945-1947
Rate of profit
All banks1........................................................................
1947
1946
1945
1941
100.0%
100.0%
100.0%
100.0%
1.2
8.5
33.2
33.2
16.6
7.3
0.6
5.7
28.4
35.3
19.0
11.0
0.6
8.1
36.0
34.6
14.2
6.5
5.4
22.3
38.9
22.2
7.8
3.4
Rate of net profit after taxes to total capital
accounts2:
Net loss..........................................................................
0.0% to 4 .9 % ...............................................................
5.0% to 9 .9 % ...............................................................
10.0% to 14.9% .............................................................
15.0% to 19.9% ...........................................................
20.0% or more..............................................................
1 Excludes banks operating less than a full year or materially affected by mergers.
2 Total capital accounts are averages of figures reported at beginning, middle, and end of year.
58
FEDERAL DEPOSIT INSURANCE CORPORATION
In 1947, 57 percent of all insured commercial banks had a rate of
net profit after taxes of more than 10 percent of total capital accounts;
this was below the 65 percent of banks reporting such a rate of profit in
1946, but above the 33 percent so reporting in 1941. Similarly, the
proportion of banks showing a net loss increased moderately to about
1 percent in 1947, but was still much below that of 1941, when over
5 percent of the banks reported a net loss.
Bank earnings by size and location of banks. In 1947 there was
a direct relationship between size of bank and the ratio of net current
operating earnings to total assets, as shown in Table 31. The ratio declined
progressively from $1.11 per $100 of total assets for banks with less than
$500,000 of deposits to $0.66 per $100 of total assets for banks with de
posits of over $100,000,000. However, the medium-sized banks reported
the highest while the smallest and largest banks reported the lowest
ratios of net profits after taxes to total capital accounts. The high ratios
of net profits to capital accounts in medium-sized banks reflected in
part the relatively low average ratios of total capital accounts to total
assets reported by this group of banks. Conversely, the smallest banks
reported low rates of net profits on total capital accounts even though
they had the highest rates of net earnings on total assets, because of their
generally higher capital ratios.
T a b le 3 1.
N e t E a r n i n g s a n d N e t P r o f i t s R a t i o s o f I n s u r e d C o m m e r c ia l B a n k s
G r o u p e d b y A m o u n t o f D e p o s it s , 1947
Size of bank
A ll ba n ks............................................................
Number of
banks1
13,290
Ratio of
net profits
after taxes
to total
capital accounts2
8.06%
Ratio of net
current
operating
earnings to
total assets2
0.73%
Banks with deposits o f :
$500,000 or less...............................................
$500,000 to $1,000,000...................................
$1,000,000 to $2,000,000...............................
$2,000,000 to $5,000,000...............................
453
1,711
3,286
4,437
8.46
10.78
11.68
10.77
1.11
0.99
0.95
0.91
$5,000,000 to $10,000,000.............................
$10,000,000 to $50,000,000...........................
$50,000,000 to $100,000,000..........................
More than $100,000,000................................
1,817
1,264
144
178
9.29
8.26
7.24
7.17
0.85
0.75
0.67
0.66
1 Excludes banks operating less than full year and trust companies not engaged in deposit banking.
2 Total assets and total capital accounts are averages of figures reported at beginning, middle,
and end of year for banks submitting reports to the Federal Deposit Insurance Corporation and are as
of December 31, 1947, for other banks.
There were notable geographical differences in 1947 in the rates of
net earnings and profits of insured commercial banks. Differences by
State in the ratios of net current operating earnings to total assets and
net profits after taxes to total capital accounts are shown in Chart H.
EARNINGS OF INSURED MUTUAL SAYINGS BANKS
CHART
H
RATES OF N E T EARNINGS AND NET PROFITS
INSURED COMMERCIAL BANKS
1947
RATE OF N E T CURRENT OPERATI NG E AR N I NGS
UN I T ED S T A T E S
AVERAGE
RAT E
UNITED
STATES
AVERAGE
ON T O T A L
.75%
OF N ET
8. 2%
PROFITS
AFTER
TAXES
ON
ASSETS
59
60
FEDERAL DEPOSIT INSURANCE CORPORATION
In general, the more mature and more highly industrialized areas
reported the lowest rates, while the southern and western States showed
the highest rates. Banks in the District of Columbia and Wisconsin
reported the lowest rates of net current operating earnings to total assets
while New Mexico and West Virginia showed the highest rates. The
ratio of net profits after taxes to total capital accounts ranged from a low
of 5 percent in Rhode Island to a high of 18 percent in New Mexico.
Dividends and retained profits. Payments of dividends and interest
on capital of insured commercial banks totaled $315 million in 1947,
5 percent above 1946 and the largest disbursement since the beginning
of Federal deposit insurance. This maintenance of dividend payments,
despite a decline in net profits, increased the proportion of distributed
net profits from 33 percent in 1946 to 40 percent in 1947. Dividend
payments amounted to 3.3 percent of total capital accounts, the same
rate as in 1946, but a little below the 1935-1941 average rate of 3.5
percent.
Although the rate of dividends on capital accounts appears low, it
must be remembered that the substantial additions to bank capital and
surplus from retained net profits in recent years have increased the
equity of stockholders. The 4.9 percent growth in capital accounts in
1947 from retained net profits was over twice the average rate in the
years 1935-1941. Even though the proportion of profits retained in capital
accounts has been high, the capital margin has not kept pace with the
growth in assets. Consequently, a more generous rate of dividends is not
desirable until an adequate capital cushion is provided. If stockholders
were willing to increase capital accounts substantially and thereby
provide a more satisfactory margin of protection, they could expect a
higher proportion of net profits to be paid out in dividends.
E a r n in g s
of
Insured M
utual
Sa v in g s B a n k s
Total current operating earnings of insured mutual savings banks
reached a record high of $376 million in 1947, 7 percent above the previous
year. Although total operating expenses increased, net current operating
earnings before payment of dividends to depositors advanced 6 percent.
Dividends to depositors were 13 percent above 1946. The slight reduction
in net earnings occasioned by the increase in the amount of dividends
paid to depositors, coupled with a sharp decline in profits from the sale
of securities, reduced net profits after taxes substantially below 1946.
Prior to 1944 mutual savings banks received more than half of their
income from real estate mortgage loans. Although the proportion of
income so obtained has declined in recent years, real estate loans still
provided two-fifths of the total operating earnings of insured mutual
EARNINGS OF INSURED MUTUAL SAVINGS BANKS
61
savings banks in 1947. Total income from loans, including an almost
negligible amount from loans other than real estate loans, totaled $153
million in 1947, about 6 percent above 1946. The average rate of income
on loans declined slightly to 4.5 percent in 1947. The amount and the
rate of income on loans and on securities of insured mutual savings banks
for the period 1943 to 1947 are shown in Table 32.
Table 32.
A m o u n t s a n d A v e r a g e R a t e s o f I n c o m e R e c e i v e d a n d D i v id e n d s
P a id b y I n s u r e d M u t u a l S a v in g s B a n k s , 1943-19471
Year
Income
on loans
(in millions)
1947.........................
1946.........................
1945.........................
1944.........................
1943.........................
$153
144
143
141
139
Income on
securities
(in millions)
$209
194
160
128
101
Rate of
income on
loans2
4.51%
4.58
4.61
4.53
4.44
Rate of
income on
securities2
2.34%
2.35
2.31
2.38
2.54
Rate of
dividends
paid on
time & savings
deposits2
1.53%
1.47
1.49
1.60
1.65
1 Data for years prior to 1943 are not comparable with data for succeeding years. During 1943 the
number of insured mutual savings banks more than trebled with the admission to Federal deposit in
surance of 128 mutual savings banks, all but three of them located in New York State. Since that time,
insured mutual savings banks have numbered about one-third and held about two-thirds of the total
assets of all mutual savings banks.
2 Loans, securities, and deposits are averages of figures reported at beginning, middle, and end
of year.
Like commercial banks, insured mutual savings banks sharply in
creased their holdings of United States Government obligations during
the war. Unlike commercial banks, however, they have steadily increased
their holdings of such obligations since the war. In 1947 income from
United States Government obligations of insured mutual savings banks
was 8 percent above 1946, and constituted almost one-half of total operat
ing earnings. The average rate of return on United States Government
obligations of 2.3 percent was much above the 1.5 percent received by
insured commercial banks on such obligations because of the larger
proportion of long-term obligations held by mutual savings banks.
A pronounced advance in the amount of other securities held by insured
mutual savings banks added only slightly to income from this source
due to a decline in the average rate of return. Earnings other than from
loans and securities accounted for less than 4 percent of total operating
earnings in 1947, considerably below the wartime proportion. This
decline resulted principally from the disposal of real estate previously
obtained in settlement of defaulted mortgage loans.
Total current operating expenses of $94 million in 1947 were the
highest on record, almost 10 percent above the previous year. Salaries
and wages, the major expense item, constituted 48 percent of total
operating expenses in 1947. Compensation of officers averaged $9,140
and of other employees $2,716 in 1947. Taxes other than on net income
62
FEDERAL DEPOSIT INSURANCE CORPORATION
declined 60 percent between 1943 and 1947, as a result of the decline
in holdings of other real estate.
Net current operating earnings before the distribution of dividends,
or interest, to depositors amounted to $282 million in 1947. Dividends
paid to depositors in mutual savings banks are similar to interest paid on
time deposits in commercial banks; unlike the latter, however, dividends
are not considered a current expense, but instead are distributed at the
end of specified periods. Total dividends amounted to $181 million in
1947. Although the slightly higher rate of dividends in 1947 reversed
a previous downward trend, most of the growth in dividends was due to
the larger amount of time and savings deposits held. Net operating
earnings of $101 million after the distribution of dividends on deposits
were about the same as in 1945 and 1946.
Net losses and charge-offs of over $12 million in 1947 were in contrast
to the substantial net recoveries and profits on assets realized in 1945
and 1946. The factor primarily responsible for this reversal was the fall
in profits on securities from $90 million in 1946 to $28 million in 1947.
The decline in profits on securities sold, coupled with the fall in net
current operating earnings after payment of dividends to depositors,
brought a decrease in net profits. Net profits after taxes of insured
mutual savings banks were 43 percent below 1946. Retained profits
amounted to 6.7 percent of surplus and capital accounts. The ratio of
surplus and capital accounts to total assets of 9.3 percent was about the
same as at the end of 1946.
PART THREE
LOANS OF INSURED COMMERCIAL BANKS, 1934-1947
L oans
of
I nsured C ommercial B anks , 1934-1947
The postwar expansion in loans of commercial banks has been un
precedented. From December 31, 1945, to December 31, 1947, total
loans of all commercial banks rose nearly 46 percent. The $38 billion
of loans outstanding at the end of 1947 was the highest in history, 6
percent above the previous high reached in 1929. However, the rise in
the volume of bank loans above the 1929 peak has not been as great,
relatively, as the growth in the volume of industrial production since
that time.
A substantial rise in the proportion of total assets invested in loans
accompanied the postwar loan expansion. Loans as a percentage of total
assets rose from 16 percent to 25 percent between the end of 1945 and
the end of 1947. This proportion was still less than half that of 1929,
when it was 57 percent. The decline in importance of loans in the earning
assets portfolio of commercial banks is a reflection of the increasing
participation of the Federal Government in the nation’s economy.
During the depression years the proportion of loans to total assets
declined even though loan volume remained almost unchanged. In these
years bank holdings of United States Government obligations increased
as the Federal debt rose to provide funds for the relief and recovery
programs. With the sharp wartime increase in bank holdings of United
States Government obligations and the moderate decline in the loan
volume, the proportion of loans to total assets declined substantially.
The postwar increase in bank loans and the decline in bank holdings of
Government obligations have reversed the trend. With the present
volume of Federal debt it is unlikely that in the next decade loans will
again become as substantial a component of total assets as in 1929.
In view of the marked changes that have occurred in the postwar
years, it is pertinent to examine in some detail the recent trends by type
of loan and by region. More detailed data by type of loan are available
for insured commercial banks than for noninsured banks. Consequently,
the following discussion refers to insured commercial banks which hold
approximately 98 percent of all commercial bank loans.
Changes since 1934. The volume of bank loans has followed the
general trend of economic activity with the exception of the period of
our active participation in World War II. Year-end figures for the prin
cipal types of loans of insured commercial banks, and percentage changes
during prewar, war, and postwar periods, are given in Table 33. Semi
annual fluctuations in the loans of these banks, by major types of loans,
are presented in Chart I.
65
66
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 3 3 .
L oans o f
In su red
C o m m e r c ia l B a n k s b y
M a jo r T y p e
of
L oan,
1 9 3 4 -1 9 4 7
(Amounts in millions of dollars)
Date or period
All
loans
Com
mercial
and
industrial
For pur
chasing or
carrying
securities
Real
estate
Con
sumer
Agri
cultural
All
other
A m ou n t (Dec. 31):
1947...........................
1946...........................
$37,592
30,740
$18,015
14,019
$2,013
3,127
$9,271
7,106
$5,655
4,031
$1,610
1,358
$1,028
1,099
1945...........................
1944...........................
1943...........................
1942...........................
25,769
21,355
18,844
18,907
9,462
7,921
7,778
7,758
6,771
4,534
2,336
1,547
4,680
4,345
4,438
4,647
2,361
1,888
1,868
2,269
1,314
1,723
1,505
1,642
1,181
944
919
1,044
1941...........................
1940...........................
1939...........................
1938...........................
21,262
18,398
16,866
16,024
9,215
7,179
6,331
5,630
1,276
1,390
1,611
1,852
4,775
4,471
4,137
3,859
13,225
(2)
(2)
(2)
1,450
1,281
1,094
1,065
1,321
4,077
3,693
3,618
1934...........................
14,614
(2)
(2)
3,336
(2)
(2)
Percentage
1945-1947
1941-1945
1938-1941
1934-1938
ch a n g e:
(2 y rs.). . .
(4 y rs.). . .
(3 y rs.). . .
(4 y rs.). . .
45.9%
21.2
32.7
9.6
90.4%
2.7
63.7
(2)
-70.3%
430.6
-31.1
(2)
98.1%
-2.0
23.7
15.7
139.5%
-26.8
(2)
(2)
22.5%
-9.4
36.2
(2)
11,278
-13.0%
-10.6
(3)
(3)
1 Partly estimated.
2 Not available separately; included with all other loans.
3 Comparable changes not available because of reclassifications.
During the recovery period, 1934 to 1937, loans increased from $15
billion to a peak of $17 billion in the middle of 1937. Total loans then
decreased to $16 billion in the business recession of 1937-1938. Increased
business activity, associated in part with the war in Europe and our own
defense preparations, was accompanied by an increase in the volume of
bank loans to $21 billion outstanding at the end of 1941. Nearly threefourths of this $5 billion increase was accounted for by commercial and
industrial loans.
The entry of the United States into the war brought a sharp decline
in the volume of bank loans to a low of $17 billion in the middle of 1943;
more than half of the decline was in commercial and industrial loans.
Most of the financing needed for the expansion of industrial capacity
during this period was provided directly by the Federal Government and
only indirectly by the banks through their purchases of Government
obligation! A sharp decrease in the amount of consumer loans out
standing, occasioned by the wartime restrictions placed upon consumer
credit and the drastic reduction in the production of durable consumers
goods, contributed to the decline in total loans.
From the middle of 1943 to the middle of 1945 the loan volume in
creased $6 billion. Nearly all of this increase was due to the growth in
loans for the purpose of purchasing or carrying securities, chiefly United
States Government obligations.
67
LOANS OF INSURED COMMERCIAL BANKS
CHART
LOANS OF INSURED
1934 -
I
COMMERCIAL
BANKS
1947
BILLIO NS OF DOLLARS
T Y P E OF L O A N
y <—
-
" ja il
Ot her
<—
Consumer
<—
S ecur i t y
<— Co mme r c i a l
a nd
Industrial
^-Agricultural
♦Other
x
/Real
♦Residential ( Esfate
4-Farm
'
1935 1936 1937 1938 1939 1940 1941
1942 1943 1944 1945 1946 1947
Upon the conclusion of the war in Europe, the Federal Government
began to curtail its purchases of war materials and industry began
reconverting to peacetime operations. This process was accompanied by
a material increase in commercial and industrial loans in the last half
of 1945. As the reconversion process proceeded, increases were reported
in most other types of loans.
The years 1946 and 1947 have seen the most rapid increase in bank
loans in the twentieth century. The 46 percent growth in loans during
the two postwar years compares with the growth of 37 percent in loans
of all commercial banks from the middle of 1918 to the middle of 1920,
the most rapid increase in any previous two-year period. The growth in
most of the major types of loans was even more striking; commercial
and industrial and real estate loans doubled while consumer loans rose
140 percent. These increases were partially offset by the sharp decline
of 70 percent in loans for the purpose of purchasing or carrying securities,
an accompaniment of the cessation of the war loan drives.
Regional trends. Although the expansion in loans of insured com
mercial banks for the period 1934 to 1947 was general throughout the
country, there were marked regional differences in the extent of the
increase. As shown in Chart J, the largest relative increases occurred in
States in the Southwest and Far West while the lowest relative increases
occured in the Northeast. The three northeastern Federal Deposit
Insurance Corporation districts had almost three-fifths of the total
volume of loans in 1934, but by the end of 1947 this proportion had
declined to two-fifths.
68
FEDERAL DEPOSIT INSURANCE CORPORATION
CHART
J
PERCENTAGE INCREASE IN T O T A L LOANS
INSURED COMMERCIAL BANKS
D E C E M B E R 31, 1934 - 1947
UNITED
STATES
AVERAGE
157
The percentage increases in bank loans in Arizona, New Mexico, and
Nevada were so striking largely because of the very small amount of
loans outstanding in these States in 1934. Subsequently economic de
velopment in these States has progressed rapidly, but it must be remem
bered that the absolute amount of loans even now is small.
These regional differences reflected the important economic changes
which occurred during the period. One of the most significant was the
westward shift of population and industry. This trend had begun before
the war and was sharply accelerated during the war years. Another
factor was the geographical incidence of Federal fiscal policies. During
the depression Federal taxation and borrowing was relatively heaviest
in the northeastern States while Government spending for relief and
rehabilitation was relatively heaviest in the southern and western States.
Similarly taxation, sale of bonds to individuals, and the creation of bank
credit through purchases of Government securities during the war were
heavier in the Northeast than the disbursement of funds by the Govern
ment in that area. Government disbursements for industrial facilities,
purchase of war materials, and the establishment and operation of
military camps put more money into the southern and western regions
than was taken by the Government through taxation or the sale of war
bonds. Thus, the West and South gained bank balances at a greater
LOANS OF INSURED COMMERCIAL BANKS
69
relative rate than the Northeast. After the end of the war the demand
for bank credit for the reconversion of wartime facilities and the establish
ment of new enterprises was greater in the West than in the Northeast
and, as the result of the previous deposit shift, the supply of credit was
also easier in the West.
During the war period, when total loans increased primarily as the
result of the expansion of loans on securities, the New York Federal
Deposit Insurance Corporation district showed an exceptionally large
gain. The loan volume in this district was dominated by the marked
growth in security loans of the large New York City banks. Large banks
in other financial centers also reported substantial growths in loans on
securities and this contributed to above average increases in total loans
in Illinois and Ohio. In the South, total loans also rose substantially
during the war period—60 percent in the Dallas district and 37 percent
in the Atlanta district. There the increase in loans was largely due to a
sharp expansion in commercial loans as a result of the establishment of
military bases and training centers and the industrial expansion in this
area during the war. The expansion of agricultural loans in these districts,
contrary to the decline for the country as a whole, was also important.
In the two postwar years, 1946 and 1947, the most rapid growth in
bank loans occurred in the Far West. It had been thought that the end
of the war would bring a substantial decline in business activity and
employment in those areas which had enjoyed the greatest expansion
of wartime facilities. California with its large expansion in shipbuilding
and aircraft production was regarded as particularly vulnerable. The
recession never occurred because the drop in wartime activity was quickly
compensated by increases in civilian activity. For example, the Bonneville
Power Administration expected to be faced with a decline in the demand
for electric power, but instead, has encountered difficulty in meeting
the growing demand. The demand for industrial and business facilities
in the West has far exceeded the supply since the end of the war. A
comparison of the postwar loan expansion by States for major types
of loans is shown in Chart K.
In some of the southern States the postwar rate of increase in total
•loans was below the national average because of declines in agricultural
loans and security loans and below average increases in commercial and
industrial loans. Prices well in excess of support prices for most agri
cultural commodities contributed to a sharp drop in loans guaranteed
by the Commodity Credit Corporation. The decline in these loans
exceeded the rise in other farm production loans in many southern
States. The below average increases in commercial and industrial loans
reflected the drastic curtailment of wartime production and the closing
of most of the military establishments and training centers. In contrast,
the rise in real estate and consumer loans in the South was much above
the national average.
70
FEDERAL DEPOSIT INSURANCE CORPORATION
CHART K
P E R C E N T A G E IN C R E A S E IN LO AN S
INSURED C OM M ERC IA L BANKS
D E C E M B E R 31,1945 T O
TOTAL
UNITED
STATES
AVERAGE
STATES
AVERAGE
LOANS
46
C O MME RCI AL
UNITED
D E C E M B E R 31, 1947
90
AN D
INDUSTRIAL
LOANS
LOANS OF INSURED COMMERCIAL RANKS
CHART
K
PERCENTAGE INCREASE IN LOANS
INSURED C O M M ER C IA L BANKS
D E C E M B E R 31, 1945 T O
REAL
UNITED
STATES
AVERAGE
D E C E M B E R 31, 1947 - C O N T I N U E D
ESTATE
98
CONSUMER
UNITED
STATES
AVERAGE
LOANS
140
LOANS
71
72
FEDERAL DEPOSIT INSURANCE CORPORATION
The smallest percentage growth in total loans in 1946 and 1947 was
reported by banks in New York. This was due to the dominance of the
large New York City banks which bore the brunt of the decline in loans
on securities after the end of the war. At the end of 1945, nearly half of
the loans of these banks were security loans and their subsequent decline
almost entirely offset the increase in other types of loans. Furthermore,
commercial and industrial loans of the large New York City banks rose
less rapidly than those of banks in other sections of the country. One
factor was the heavier pressure upon the reserves of these banks than
upon the reserves of other banks. The New York City banks held larger
amounts of Federal deposits than of United States Government obliga
tions which were being retired. Consequently, when Government deposits
were drawn on for purposes of debt retirement the New York banks
lost reserves. Another factor was the relatively favorable financial
position at the end of the war and the less immediate need for bank
credit of the large established corporations which tend to do business
with the banks in the financial centers. What occurred at New York
City banks also occurred to a lesser extent at the large institutions in
other financial centers. This explains, in part, the relatively low increases
in total loans in Illinois and Ohio.
Income on loans. The changes in the volume of loans of insured
commercial banks during the 13-year period, 1934 to 1947, have been
accompanied by similar changes in the income received on loans. In
addition, the changing composition of loans by type and the trend of
interest rates have influenced the amount of income received on loans.
Gross income on loans rose steadily from $643 million in 1935 to
$848 million in 1941 with the exception of a slight drop during the business
recession of 1938. From 1935 through 1941, the average rate of return
on loans remained almost constant. Even though loans declined slightly
as a proportion of total assets, income on loans formed a rising proportion
of total current operating earnings from 1935 to 1941. This was primarily
due to the increasing proportion of non-earning assets, chiefly cash and
reserves, and to the decline in the rate of return on securities.
During the war years, 1942-1944, the amount of income on loans
declined from $848 million in 1941 to $698 million in 1944, or 18 percent,
as shown in Table 34. This decrease was entirely the result of the decline
in the average rate of return since the volume of loans increased slightly
over the period. The decrease in the average rate of return from 4.3
percent in 1941 to 3.4 percent in 1944 was largely the result of the changing
composition of the loan portfolio. Consumer loans dropped sharply;
commercial and industrial loans not only declined, but a large proportion
of those outstanding carried relatively low rates of interest because they
were Government guaranteed or insured, or were large loans made to
very large companies. The decline in other types of loans was offset by
73
LOANS OF INSURED COMMERCIAL BANKS
an increase in loans on securities; these loans yielded very low rates of
return.
T a b le 3 4 .
In com e a n d C h a r g e -o f fs o n L o a n s o f In s u r e d
C o m m e r c ia l B a n k s , 1 9 3 5 -1 9 4 7
Year
Income
on loans
(in millions
of dollars)
1947.........................
1946.........................
$1,282
951
1945.........................
1944.........................
1943.........................
1942.........................
726
698
706
817
1941.........................
1940.........................
1939.........................
1938.........................
848
769
727
705
1937.........................
1936.........................
1935.........................
710
663
643
Rate of
income on
loans1
.
Charge-offs
as percent
of loans1
Income on
loans as
percent of
gross current
operating
earnings
Loans as
percent of
total assets
(year-end)
3.79%
3.43
0.36%
0.26
41.4%
33.2
24.6%
20.9
3.09
3.44
3.85
4.08
0.24
0.35
0.41
0.40
29.3
31.5
36.0
45.6
16.4
15.9
16.8
19.8
4.27
4.41
4.46
4.36
0.52
0.65
0.83
0.93
49.0
47.1
45.3
44.5
27.7
26.0
26.7
28.2
4.28
4.34
4.40
0.85
1.64
2.18
43.5
42.3
43.3
30.9
28.4
28.9
1 Percentages computed from average of loan figures reported at beginning, middle, and end of year.
In 1945, the sharp expansion in loans for the purpose of purchasing
or carrying securities and, in the last half of the year, the rise in com
mercial and industrial loans resulted in a moderate increase in the total
income on loans received by insured commercial banks. Because of the
greater importance of loans on securities, the average rate of return on
loans fell sharply.
From 1945 to 1947, income on loans increased 77 percent. In 1947
total income on loans amounted to nearly $1,300 million, or twice the
1935 total. Approximately two-thirds of the postwar increase in income
on loans was due to the rise in loan volume while the remainder came
as the result of an increase in the rate of return. The average rate of
return on loans rose from a low of 3.1 percent in 1945 to 3.8 percent in
1947, largely because of the reversal of the wartime trend in the com
position of the loan portfolio.
The increase in the amount of income received on loans, together with
the decline in income from United States Government obligations,
brought a sharp rise in the proportion of gross current operating earnings
derived from loans, to 41 percent in 1947 compared with 29 percent in
1945. The 1947 proportion was still below the 1941 proportion of 49
percent.
The rapid expansion of loans in the postwar years has given rise to
conjecture over the possibility of the increasing risks involved. From
this standpoint it is of interest to look at the trend in gross charge-offs as
74
FEDERAL DEPOSIT INSURANCE CORPORATION
shown in Table 34. The proportion of gross charge-offs to average amount
of loans outstanding declined, with only minor interruptions, from 2.18
percent in 1935 to .24 percent in 1945. During the last two years, there
has been a moderate growth in the rate of charge-offs. The rate of .36
percent in 1947 is still much below that of the prewar and early war
years, however, and it would be premature to conclude that this is the
beginning of a substantial increase in charge-offs on loans.
PART FOUR
LEGISLATION AND REGULATIONS
F e d e r a l Le g is l a t io n
RETIREMENT OF FDIC CAPITAL STOCK
[P u b l i c L a w
363— 80t h C o n g r e ss]
[ C h a p t e r 4 9 2 — 1 s t S e s s io n ]
[S. 1070]
AN ACT
To provide for the cancellation of the capital stock of the Federal Deposit Insurance
Corporation and the refund of moneys received for such stock, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled, That the Federal Deposit Insurance Corporation is directed
to retire its capital stock by paying the amount received therefor (whether received
from the Secretary of the Treasury or the Federal Reserve banks) to the Secretary
of the Treasury as hereinafter provided, to be covered into the Treasury as miscel
laneous receipts. As soon as practicable after the enactment of this Act, the Corpora
tion shall pay to the Secretary so much of its capital and surplus as is in excess of
$1,000,000,000. The balance of the amount to be paid to the Secretary shall be paid
in units of $10,000,000 except that the last unit to be paid may be less than $10,000,000.
Each unit shall be paid as soon as it may be paid without reducing the capital and
surplus of the Corporation below $1,000,000,000. As each payment is made a cor
responding amount of the capital stock of the Corporation shall be retired and canceled
and the receipt or certificate therefor shall be surrendered or endorsed to show such
cancellation. The stock subscribed by the various Federal Reserve banks shall be
retired and canceled, pro rata, before the stock subscribed by the Secretary is retired
and canceled.
S e c . 2. Section 12B (d) of the Federal Reserve Act, as amended (U. S. C., title 12,
sec. 264 (d) ), is hereby repealed.
Sec . 3. Section 12B (b) of the Federal Reserve Act, as amended (U. S. C., title 12,
sec. 264 (b) ), is amended by striking out “ $10,000” and inserting in lieu thereof
“$15,000” .
S e c . 4. Section 12B (o) of the Federal Reserve Act, as amended (U. S. C., title 12,
sec. 264 (o) ), is amended to read as follows:
“ (o) The Corporation is authorized to borrow from the Treasury, and the Secretary
of the Treasury is authorized and directed to loan to the Corporation on such terms
as may be fixed by the Corporation and the Secretary, such funds as in the judgment
of the Board of Directors of the Corporation are from time to time required for insur
ance purposes, not exceeding in the aggregate $3,000,000,000 outstanding at any one
time: Provided, That the rate of interest to be charged in connection with any loan
made pursuant to this paragraph shall not be less than the current average rate on
outstanding marketable and nonmarketable obligations of the United States as of
the last day of the month preceding the making of such loan. For such purpose the
Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds
of the sale of any securities hereafter issued under the Second Liberty Bond Act,
as amended, and the purposes for which securities may be issued under the Second
Liberty Bond Act, as amended, are extended to include such loans. Any such loan
shall be used by the Corporation solely in carrying out its functions with respect to
such insurance. All loans and repayments under this section shall be treated as publicdebt transactions of the United States.”
Approved August 5, 1947.
77
78
FEDERAL DEPOSIT INSURANCE CORPORATION
ORGANIZATION OF EXECUTIVE BRANCH OF THE GOVERNMENT
[P u b l ic L a w 162— 80 t h C o n g r e s s ]
[C h a p t e r 207— 1st S e s s io n ]
[H. R. 775]
AN ACT
For the establishment of the Commission on Organization of the Executive Branch
of the Government.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled,
d e c l a r a t io n
o f p o l ic y
S e c t i o n 1. It is hereby declared to be the policy of Congress to promote economy,
efficiency, and improved service in the transaction of the public business in the de
partments, bureaus, agencies, boards, commissions, offices, independent establishments,
and instrumentalities of the executive branch of the Government by—
(1) limiting expenditures to the lowest amount consistent with the efficient
performance of essential services, activities, and functions;
(2) eliminating duplication and overlapping of services, activities, and functions;
(3) consolidating services, activities, and functions of a similar nature;
(4) abolishing services, activities, and functions not necessary to the efficient
conduct of government; and
(5) defining and limiting executive functions, services, and activities.
e s t a b l i s h m e n t o f t h e c o m m is s io n o n o r g a n i z a t i o n o f t h e e x e c u t i v e b r a n c h
Sec . 2. For the purpose of carrying out the policy set forth in section 1 of this Act,
there is hereby established a bipartisan commission to be known as the Commission
on Organization of the Executive Branch of the Government (in this Act referred to
as the “ Commission” ).
m e m b e r s h ip o f t h e
c o m m is s io n
S e c . 3. (a) N u m b e r a n d a p p o in t m e n t . — The Commission shall be composed of
twelve members as follows:
(1) Four appointed by the President of the United States, two from the executive
branch of the Government and two from private life;
(2) Four appointed by the President pro tempore of the Senate, two from the
Senate and two from private life; and
(3) Four appointed by the Speaker of the House of Representatives, two from the
House of Representatives and two from private life.
(b) P o l i t i c a l a f f i l i a t i o n . — Of each class of two members mentioned in subsec
tion (a), not more than one member shall be from each of the two major political
parties.
(c) V a c a n c i e s . — Any vacancy in the Commission shall not affect its powers, but
shall be filled in the same manner in which the original appointment was made.
O RG A N IZA TIO N OF TH E COM M ISSION
Sec . 4. The Commission shall elect a Chairman and a Vice Chairman from among
its members.
79
FEDERAL LEGISLATION
QUORUM
Sec . 5. Seven members of the Commission shall constitute a quorum.
c o m p e n s a t io n
of m em bers
of th e
c o m m is s io n
Sec . 6. (a) M embers o f C ongress .— M embers of Congress who are members of
the Commission shall serve without compensation in addition to that received for
their services as Members of Congress; but they shall be reimbursed for travel, sub
sistence, and other necessary expenses incurred by them in the performance of the
duties vested in the Commission.
(b) M e m b e r s f r o m t h e e x e c u t i v e b r a n c h . — The members of the Commission
who are in the executive branch of the Government shall each receive the compensation
which he would receive if he were not a member of the Commission, plus such ad
ditional compensation, if any (notwithstanding section 6 of the Act of May 10, 1916,
as amended; 39 Stat. 582; 5 U. S. C. 58), as is necessary to make his aggregate salary
$12,500; and they shall be reimbursed for travel, subsistence, and other necessary
expenses incurred by them in the performance of the duties vested in the Commission.
(c) M e m b e r s f r o m p r i v a t e l i f e . — The members from private life shall each
receive $50 per diem when engaged in the performance of duties vested in the Com
mission, plus reimbursement for travel, subsistence, and other necessary expenses
incurred by them in the performance of such duties.
STAFF OF THE COMMISSION
Sec . 7. The Commission shall have power to appoint and fix the compensation of
such personnel as it deems advisable, in accordance with the provisions of the civilservice laws and the Classification Act of 1923, as amended.
expen ses
of th e
c o m m is s io n
Sec . 8. There is hereby authorized to be appropriated, out of any money in the
Treasury not otherwise appropriated, so much as may be necessary to carry out the
provisions of this Act.
EXPIRATION OF THE COMMISSION
Sec . 9. Ninety days after the submission to the Congress of the report provided
for in section 10 (b), the Commission shall cease to exist.
DUTIES OF THE COMMISSION
S e c . 10. (a) I n v e s t i g a t i o n . — The Commission shall study and investigate the
present organization and methods of operation of all departments, bureaus, agencies,
boards, commissions, offices, independent establishments, and instrumentalities of
the executive branch of the Government, to determine what changes therein are
necessary in their opinion to accomplish the purposes set forth in section 1 of this Act.
(b ) R e p o r t . — Within ten days after the Eighty-first Congress is convened and
organized, the Commission shall make a report of its findings and recommendations
to the Congress.
pow ers
of th e
c o m m iss io n
S e c . 11. (a) H e a r i n g s a n d s e s s io n s . — The Commission, or any member thereof,
may, for the purpose of carrying out the provisions of this Act, hold such hearings
and sit and act at such times and places, and take such testimony, as the Commission
or such member may deem advisable. Any member of the Commission may administer
oaths or affirmations to witnesses appearing before the Commission or before such
member.
80
FEDERAL DEPOSIT INSURANCE CORPORATION
(b) O b t a i n i n g o f f i c i a l d a t a . — The Commission is authorized to secure directly
from any executive department, bureau, agency, board, commission, office, independent
establishment, or instrumentality information, suggestions, estimates, and statistics
for the purpose of this Act; and each such department, bureau, agency, board, com
mission, office, establishment, or instrumentality is authorized and directed to furnish
such information, suggestions, estimates, and statistics directly to the Commission,
upon request made by the Chairman or Vice Chairman.
Approved July 7, 1947.
GOVERNMENT CHECKS
[P u b l ic L a w
[C h a p t e r
171— 80th C o n g r e ss]
222— 1 s t
[S. 1316]
Se s s io n ]
AN ACT
To establish a procedure for facilitating the payment of certain Government checks,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled, That, with the exception of checks issued on account of publicdebt obligations and transactions regarding the administration of banking and currency
laws, the amounts of all original and substitute checks drawn on the Treasurer of
the United States, including those drawn by wholly owned and mixed-ownership
Government corporations, or drawn by authorized officers of the United States on
designated depositaries, which have not been paid prior to the close of the fiscal year
next following the fiscal year in which the checks were issued, shall be transferred
from the account of the drawer or the account then available for the payment thereof
to a special-deposit account or accounts on the books of the Treasurer of the United
States.
(b)
With the exception of checks issued on account of public-debt obligations and
transactions regarding the administration of banking and currency laws, any original
or any substitute checks heretofore or hereafter drawn on the Treasurer of the United
States, including those drawn by wholly owned and mixed-ownership Government
corporations, or drawn by authorized officers of the United States on designated
depositaries which have not been paid prior to the close of the fiscal year next following
the fiscal year in which the checks were issued and checks issued in payment of claims
settled by the General Accounting Office on account of any of such checks shall be
payable from the special-deposit account or accounts established pursuant to this
section: Provided, That in the following classes of cases any original or substitute
check shall be payable from the special-deposit account or accounts only after settle
ment by the General Accounting Office: (1) Where the check is drawn on a designated
depositary, (2) where the owner or holder of the check has died or is incompetent,
(3) where on presentation of the check for payment the Treasurer of the United
States is on notice of a doubtful question of law or fact, and (4) where the check is
over ten years old: And provided further, That the limitation imposed in respect to
certain claims or demands against the United States by the Act of October 9, 1940
(54 Stat. 1061; U. S. C., title 31, secs. 71a, 237), shall not be deemed to apply to
original or substitute checks heretofore or hereafter drawn on the Treasurer of the
United States, including those drawn by wholly owned and mixed-ownership Govern
ment corporations, or drawn by authorized officers of the United States on designated
depositaries, but nothing contained in this Act shall be deemed to affect the limitation
FEDERAL LEGISLATION
81
imposed in respect to claims on aecount'of certain checks by section 2 of the Act of
June 22, 1926 (44 Stat. 761; U. S. C., title 31, sec. 122).
Sec . 2. The balances deposited to the credit of the outstanding-liabilities account
of any fiscal year pursuant to section 21 of the Permanent Appropriation Repeal
Act, 1934 (48 Stat. 1235; U. S. C., title 31, sec. 725t), and which have not been covered
into the surplus fund of the Treasury shall be transferred to the foregoing specialdeposit account or accounts and together with the amounts transferred thereto under
the provisions of section 1 shall be available to pay any check payable from such
account or accounts.
Sec . 3. The Secretary of the Treasury is hereby authorized to take such action
as may be necessary to transfer at appropriate intervals from the foregoing specialdeposit account or accounts to the appropriate receipt account or accounts on the
books of the Treasury any amounts not required to effect the purposes of this Act
and with the concurrence of the Comptroller General to make such rules and regula
tions as he may deem necessary or proper for the administration of the provisions
of this Act.
Sec . 4. (a) Sections 306, 307, 308, 309, and 310 of the Revised Statutes of the United
States, as amended (U. S. C., title 31, secs. 149, 150, 151, 152, 153), and section 21 of
the Permanent Appropriation Repeal Act, 1934 (48 Stat. 1235; U. S. C., title 31,
section 725t), are hereby repealed.
(b) Section 5 of the Act of July 1, 1916, as amended (U. S. C., title 31, sec. 154), is
hereby amended to read as follows:
“ At the termination of each fiscal year the General Accounting Office shall report
to the Secretary of the Treasury all checks issued by any disbursing officer of the
Government or its wholly owned or mixed-ownership corporations, as shown by his
accounts rendered to the General Accounting Office, or otherwise, which shall then
have been outstanding and unpaid for one full fiscal year after the fiscal year in which
issued, stating in such report the date, number, and amount of each check and the
symbol on which it was drawn.”
(c) Subsection (a) of section 3646 of the Revised Statutes of the United States, as
amended (U. S. C., 1940 edition, Supp. V, title 31, sec. 528 (a) ) is further amended
by deleting the phrase “before the close of the fiscal year following the fiscal year
in which the original check was issued” and inserting in lieu thereof the phrase
“prior to the expiration of ten years from the date on which the original check wras
issued” and by inserting immediately following the phrase “from the account of
the drawer” the phrase “or the account available for payment of the original check.”
(d) Subsections (c) and (e) of section 3646 of the Revised Statutes of the United
States, as amended (U. S. C., 1940 edition, Supp. V, title 31, secs. 528 (c) and (e) ),
are respectively, further amended by deleting the phrase “before the close of the
fiscal year following the fiscal year in which the original check was issued” and in
serting in lieu thereof the phrase “prior to the expiration of ten years from the date
on which the original check was issued.”
(e) Subsection (f) of section 3646 of the Revised Statutes of the United States, as
amended (U. S. C., 1940 edition, Supp. V, title 31, sec. 528 (f) ) is further amended
to read as follows:
“ (f) Substitutes issued under this section drawn on the Treasurer of the United
States, except those for checks issued on account of public-debt obligations and
transactions regarding the administration of banking and currency laws, shall be
deemed to be original checks and shall be payable under the same conditions as original
checks. Substitutes for checks issued on account of public-debt obligations and trans
82
FEDERAL DEPOSIT INSURANCE CORPORATION
actions regarding the administration of banking and currency laws shall be payable
directly by the Treasurer of the United States without limitation of time.”
(f)
Subsection (g) of section 3646 of the Revised Statutes of the United States, as
amended (U. S. C., 1940 edition, Supp. V, title 31, sec. 528 (g) ) is further amended
by deleting the phrase “by any corporation or other entity” and inserting in lieu
thereof “by any wholly owned or mixed-ownership Government corporation or by
any entity.”
Sec . 5. This Act shall take effect on July 1, 1947.
Approved July 11, 1947.
R u l in g
of
C o m m is s io n e r
of
In t e r n a l R even u e
RESERVE METHOD OF ACCOUNTING FOR
BAD DEBTS IN THE CASE OF BANKS
T r e a s u r y D e p a rtm e n t
O f f i c e o f C o m m is s io n e r o f I n t e r n a l R e v e n u e
W a s h i n g t o n 25, D . C .
December 8, 1947
Com.— Mimeograph
Coll. No. 6209
R. A. No. 1625
T. S. No. 526
COLLECTORS OF INTERNAL REVENUE
INTERNAL REVENUE AGENTS IN CHARGE
TECHNICAL STAFF
AND OTHERS CONCERNED:
1. The Bureau has given careful and extended consideration to the situation of
banks in general with respect to the use of reserves for bad debts, the proper measure
of such reserves, and amounts to be allowed as deductions.
2. In determining a reasonable annual addition to a reserve for bad debts by a
bank it is believed to be fair and sufficiently accurate to resort to the average annual
bad-debt loss of the bank over a period of twenty years, to include the taxable year,
as constituting a representative period in the bank’s history and to accept the equiva
lent percentage of presently outstanding loans as indicative of the probable annual
accruing loss. The Tax Court has held that the “use of the reserve for bad debts is
not inherently inconsistent with a cash basis where, as here, the reserve is against
loss of capital only * * * and contains no element of income which has never been
reported. * * * Such a reserve for loss of capital does not differ materially from a
reserve for depreciation which is set up on a percentage basis rather than on the basis
of actual depreciation suffered.” (Estate of Maurice S. Saltstein, Deceased, Trans
feree, etc. 46 B. T. A. 774, 777, (1942) Acq. C. B. 1942-1, 14.) However, such reserve
cannot be permitted to accumulate indefinitely simply because of the possibility that
at some future date large losses may be concentrated within a relatively short period
of time and operate to absorb the greatest probable reserve. To permit this would
sanction the deduction of a mere contingency reserve for losses, which is not an al
lowable deduction for income or excess-profits tax purposes. This latter rule makes
imperative the imposition of some reasonable ceiling on the accumulation of the
83
RULING OF COMMISSIONER OF INTERNAL REVENUE
reserve other than such indefinite limitation as might eventually prevail under a
moving-average method.
3.
The Bureau has accordingly approved the use by banks of a moving average
experience factor for the determination of the ratio of losses to outstanding loans for
taxable years beginning after December 31, 1946. Such a moving average is to be
determined on a basis of twenty years, including the taxable year, as representing a
sufficiently long period of a bank’s experience to constitute a reasonable cycle of good
and bad years. The percentage so obtained, applied to loans outstanding at the close
of the taxable year determines the amount of permissible reserve in the case of a
bank changing to the reserve method in such year (see 1st year in following com
putation) and the minimum reserve which the taxpayer will be entitled to maintain
in future years (see 2nd year in following computation). A bank following a change to
the reserve method of accounting for bad debts, may continue to take deductions
from taxable income equal to the current moving average percentage of actual bad
debts times the outstanding loans at the close of the year, or an amount sufficient
to bring the reserve at the close of the year to the minimum mentioned above, which
ever is greater. Such continued deductions will be allowed only in such amounts as
will bring the accumulated total at the close of any taxable year to a total not ex
ceeding three times the moving average loss rate applied to outstanding loans (see
5th year in following computation).
Example of the application of the foregoing with amount of
outstanding loans remaining unchanged at $1,000,000.00
Year
1
2
3
4
5
Moving
Average %
1.
.8
.7
.8
1.
Actual Bad
Debts for
Year
S 2,000
11,500
1,000
1,000
500
Deduction
Reserve
at end of
Year
Ceiling
$12,000
9,500
7,000
8,000
9,500
$10,000
8,000
14,000
21,000
30,000
$30,000
24,000
21,000
24,000
30,000
4. In computing the moving average percentage of actual bad debt losses to loans,
the average should be computed on loans comparable in their nature and risk involved
to those outstanding at the close of the current taxable year involved. Government
insured loans should be eliminated from prior year accounts in computing percentages
of past losses, also from the current year loans in computing allowable deductions for
additions to the reserve. Losses not in the nature of bad debts resulting from the or
dinary conduct of the present business should also be eliminated in computing per
centages of prior losses.
5. A newly organized bank or a bank without sufficient years experience for com
puting an average as provided for above, will be permitted to set up a reserve
commensurate with the average experience of other similar banks with respect to
the same type of loans, preferably in the same locality, subject to adjustment after
a period of years when the bank’s own experience is established.
6. Bad debt losses sustained are to be charged to the reserve and recoveries made
of specific debts which have been previously charged against the reserve by a bank
on the reserve method of treating bad debts should be credited to the reserve.
7. Where a bank making its return on the basis of the calendar year 1947, wishes
to avail itself of the provisions of this mimeograph, and to change from the specific
charge-off to the reserve method of accounting for bad debts, the time for making
84
FEDERAL DEPOSIT INSURANCE CORPORATION
application for such change under section 29.23(k)-l, Regulations 111, has been
extended to March 15, 1948 (T. D. 5594 approved December 8, 1947). If such bank
files its return on or before March 15, 1948, on the reserve method and the return is
accompanied by a written statement setting forth the election to use such method
and explaining in detail the computations of the bad debt deduction shown in the
return, such return will be accepted as a timely application.
8. The term “banks” as used herein means banks or trust companies incorporated
and doing business under the laws of the United States (including laws relating to
the District of Columbia), of any State, or of any Territory, a substantial part of the
business of which consists of receiving deposits and making loans and discounts.
9. Correspondence in regard to this mimeograph should refer to the number and
to the symbols IT:EIM .
GEO. J. SCHOENEMAN,
Commissioner.
Approved: December 8, 1947.
A. L. M. WIGGINS,
Acting Secretary of the Treasury.
R e g u l a t io n s
of th e
C o r p o r a t io n
PART 308— FORMS, INSTRUCTIONS, AND REPORTS
A s Amended April 4, 194?
308.1 Certified Statements. The certified statements required to be filed by
insured banks in accordance with the provisions of subsection (h) of section 12B of
the Federal Reserve Act, as amended (48 Stat. 171, as amended; 12 U.S.C. and Sup.,
264 (h) ), shall be filed with the Fiscal Agent of the Corporation upon the forms, and
in the manner, and pursuant to the instructions herein prescribed by the board of
directors; and the assessments required to be certified must be paid to the Corporation
at the time such statements are required to be filed. The form of certified statement
and instructions for completing the same will be furnished to all insured banks by, or
may be obtained upon request from, the Fiscal Agent.
308.2 * * *.
308.3 Forms and Instructions. * * *.
(s) Form 645. First Certified Statement— Part One, Based on Deposits for
the First Thirty-One Days of Operation as an Insured Bank. Form 645 must
be executed in quadruplicate by each bank admitted to membership. Form 645 con
tains a summary of the aggregate daily totals of deposit liabilities less authorized
deductions by which the submitting bank reports the amount of deposits used in
computing its assessment base and the amount of its assessment due the Corporation.
Three copies, signed and certified under oath as true by the officer authorized to so
certify, must be forwarded to the Fiscal Agent on or before the forty-fifth day after
the first day of operation as an insured bank. The fourth copy must be retained in
the bank’s file. These forms are mailed to newly insured banks with appropriate
instructions for the preparation.1
1 Copies of such instructions may be obtained on request from the Fiscal Agent.
St a t e B a n k in g Le g is l a t io n
This summary includes the more important State banking legislation enacted in
1947.
SUPERVISORY AUTHORITY
Banking Board enlarged................................ Kansas (Ch. 102), Pennsylvania (Act 469)
Commissioner of Banking to replace Banking Commission... .Wisconsin (Ch. 411)
Notice to supervisory authority of stock transfers...........................Wisconsin (Ch. 134)
Consent of supervisory authority to transfer of shares and to retirement, resignation
and disqualifying of any officer................................................................Oregon (Ch. 77)
Limitation on ownership of bank stock by supervisory authority...................................
......................................................................California (Ch. 568), Connecticut (Act 538)
Licensing appeal board..........................................................................Missouri (SB 12, 13)
Appeal from decision of supervisory authority.......................Connecticut (Act 76, 538)
Examiners......................................................................................................................................
.......... Missouri (SB 181), New York (Ch. 118), Oregon (SB 60), Tennessee (Ch. 80)
Compensation...................................................California (Ch. 568), Maryland (Ch. 300),
Missouri (SB 181), Nebraska (Bill 407), New York (Ch. 118), North Dakota
(Ch. 115), Tennessee (Chs. 80, 90), Wisconsin (Ch. 411)
Examinations.. .Connecticut (Act 538), Michigan (Act 152), North Dakota (Ch. 109)
Examination fees.............................................. California (Ch. 568), Delaware (Ch. 252),
Michigan (Act 152), New York (Ch. 135), West Virginia (Ch. 38)
Chartering fees.................................................... Nebraska (Bill 23), Wisconsin (Ch. 134)
Check cashers.......... California (Ch. 914), Delaware (Ch. 287), New York (Ch. 485)
Currency exchanges...................................................................................... Illinois (HB 160)
Banking codes or revisions.............................Connecticut (Act 538), Kansas (Ch. 102)
Regulation by banking board covering books and records, appraisals, and minimum
amount of insurance on property owned by bank and trust company authorized
...............................................................................................s,....................Kansas (Ch. 102)
ORGANIZATION AND CHARTER CHANGES
Organization of trust companies and use of “trust” in name. .Florida (Ch. 23661)
Organization and management of savings banks..................................Indiana (Ch. 138)
Minimum capital and surplus requirements. .Arkansas (Act 173), California (Ch. 516),
Iowa (Ch. 267), Oregon (Ch. 92), Washington (Ch. 131), Wisconsin (Ch. 134)
Renewal of charter................ ........................................... .............................. Iowa (Ch. 251)
Change of name. . ............................................................................... Connecticut (Act 538)
Branch banks...........................................................................................California (Ch. 516),
Delaware (Ch. 251), Indiana (Ch. 276), Oregon (Ch. 38), Pennsylvania (Act 376)
Public hearings on establishment of branch offices of state or national banks..........
.................................................................................................................... Indiana (Ch. 246)
Merger and consolidation.. Connecticut (Acts 133, 528, 538), Iowa (Ch. 249), Kansas
(Ch. 102), New Hampshire (Ch. 123), New Mexico (Ch. 160), Wyoming (Ch. 31)
85
86
FEDERAL DEPOSIT INSURANCE CORPORATION
Merger and consolidation of state and national banks....................................................
....................................................................... Indiana (Ch. 133), Pennsylvania (Act 334)
Sale of assets.................................................................................................Kansas (Ch. 102)
Powers of foreign banking corporation................................................ New York (Ch. 46)
Teller windows or receiving stations. .North Carolina (Ch. 990), Wisconsin (Ch. 101)
Par value of capital stock of trust companies.......................New Hampshire (Ch. 157)
SHAREHOLDERS
Annual meeting.................................................. Oregon (Ch. 153), Washington (Ch. 129)
Shareholders’ approval of stock dividend....................................... Connecticut (Act 538)
Voting trust agreements. . . . Illinois (HB 32), Indiana (Ch. 46), New Mexico (Ch. 25)
Examination committee................................................................................ Oregon (Ch. 36)
Stock transfers....................... Kansas (Ch. 102), Oregon (Ch. 77), Wisconsin (Ch. 134)
g e n e r a l p r o v is io n s
Earned surplus or guaranty fund requirements.......... California (Ch. 516), Florida
(Ch. 23749), Kansas (Ch. 102), New Hampshire (Ch. 28), Oregon (Ch. 179), Vermont
(HB 136), Wisconsin (Ch. 112)
Issuing agent for sale and issue of U. S. obligations.......................New York (Ch. 410)
Servicing agent for mortgage loans..................................................Connecticut (Act 275)
Power of banks and trust companies to do surety business and to consolidate with
insurance corporations repealed................................... North Carolina (Chs. 696, 781)
Reserve of reserve banks required to equal that required by Federal law of banks
in reserve cities...................................................................................... Colorado (Ch. 138)
Capital-deposit ratio....................................... Minnesota (Ch. 11), Washington (Ch. 31)
Charitable contributions authorized.................................................... Colorado (Ch. 161),
Delaware (Ch. 146), Pennsylvania (Act 123), Wisconsin (Ch. 134)
Destruction of records............................................. Iowa (Ch. 268), Oklahoma (HB 249)
Limitation of action on claims inconsistent with entries on bank records...................
......................................................................................................................... Iowa (Ch. 268)
Banks exempted from provisions relating to small loan agencies.......... Maine (Ch. 49)
Repeal of requirement that unauthorized real estate be disposed of in five years and
that property, received for debts previously contracted which may not be purchased,
be disposed of in five years..........................................................Pennsylvania (Act 426)
Financial institutions authorized to transact business on holidays and outside regular
banking hours................................................................ Ohio (HB 184), Texas (HB 612)
Limitation on cash item charges.....................................................South Dakota (Ch. 26)
Safe deposit box rental.............................................. Illinois (HB 672), Kansas (Ch. 102)
DEPOSITS
Amount of deposits..........................................................................................Maine (Ch. 47)
Deposits of and security for public funds......................................... Alabama (Act 153),
Arkansas (Acts 122, 396), California (Chs. 143, 973, 1471), Florida (Chs. 23664,
23938, 23976), Illinois (HB 21, SB 426), Indiana (Ch. 119), Kansas (Ch. 102),
STATE LEGISLATION
87
Minnesota (Ch. 29), Nebraska (Bill 65), New Hampshire (Ch. 169), New York
(Chs. 181, 412), Oklahoma (SB 291), Oregon (Ch. 125), Pennsylvania (Act 129),
South Carolina (Act 92), Tennessee (Ch. 190), Washington (Ch. 245), Wisconsin
(Ch. 270)
Increase in amount of savings bank deposits permitted in outside financial institutions
.............................................................................................................Connecticut (Act 170)
Payment of account of deceased depositor........ Indiana (Ch. 124), Kansas (HB 347)
Payment of trust deposits.............................................................................. Maine (Ch. 47)
Payment or pledge of minors’ deposits... .Connecticut (Act 313), Indiana (Ch. 142)
School collection and deposit of pupils’ savings................................................................
.......................................................................Connecticut (Act 522), New York (Ch. 47)
Escheat... .Connecticut (Acts 32, 33), Michigan (Act 329), New Jersey (Chs. 91, 92,
357), New York (Ch. 121), Oklahoma (HB 55), Oregon (Ch. 587), Wyoming (Ch. 86)
Refunds of escheat funds..............................................................North Carolina (Ch. 614)
Joint deposits.......... Maine (Ch. 48), Pennsylvania (Act 425), Tennessee (Ch. 152)
Maximum amount in savings bank. . . . Massachusetts (Ch. 45), Minnesota (Ch. 26)
Payment of savings bank deposit without passbook.......................New York (Ch. 463)
Payroll deductions accounts without passbooks...............................New York (Ch. 463)
Notice of adverse claim to a deposit need not be recognized until bank served with
court process or order thereon. . ...........................................................Kansas (Ch. 102)
Banking board authorized to fix maximum rate of interest on deposits, if after hearing
it finds that bank’s rate is excessive and will impair capital.......... Kansas (Ch. 102)
Modification of loan limitations on Servicemen’s Readjustment Act loans...............
Colorado (Ch. 136), Connecticut (Act 318, SB 406), Idaho (Ch. 48), Iowa (Ch. 266),
Massachusetts (Ch. 110), New Hampshire (Ch. 288), New Jersey (Ch. 27), New
York (Ch. 527), Ohio (HB 196), Pennsylvania (Ch. 473), Vermont (HB 136), Wis
consin (Ch. 134), Wyoming (Ch. 120)
Real estate loans:
Increase of loan limit, authorization of waiver of amortization and of package
mortgages.......................................................................................Connecticut (Act 251)
Inclusion in mortgage debt of taxes, insurance, interest and advancement for
repairs.............................................................................................Connecticut (Act 134)
Direct-reduction loans by savings banks................................. Massachusetts (Ch. 98)
Five-year rehabilitation loans by savings banks...........................New York (Ch. 243)
FHA loans. Connecticut (Acts 97,113), Massachussetts (Ch. 89), Wyoming (Ch. 120)
Maturities of FHA loans extended from 30 to 35 years.............. Connecticut (Act 97)
Loan period increased.................................................................. Pennsylvania (Act 473)
Reconstruction and improvement loans insured by FH A.. Connecticut (Acts 97,113)
In adjoining states.......................................... Iowa (Ch. 265), Pennsylvania (Act 335)
Acceptance of appraisals by U. S. agency on FHA and Servicemen’s Readjustment
Act loans in lieu of bank appraisals permitted.......................Minnesota (Ch. 141)
88
FEDERAL DEPOSIT INSURANCE CORPORATION
Blanket construction loans by savings banks....................... Massachusetts (Ch. 254)
Construction mortgage form specified.........................................Connecticut (Act 480)
Increase amount of amortized loan from 50% to 60% of appraised value..............
............................. .......................................................................... New Mexico (Ch. 159)
Period of industrial bank loans increased from 20 to 36 months.......................................
.............................................................................................................. Connecticut (Act 95)
Loan limitations enlarged or made inapplicable to loans secured by: Obligations or
guarantee of United States or its agencies............................... Colorado (Ch. 136),
Kansas (Ch. 102), Maine (Ch. 76), North Dakota (Ch. 113), South Dakota (Ch. 27),
Wyoming (Ch. 120)
Obligations or guarantee of State or its agencies and subdivisions...................................
................................... Colorado (Chs. 133, 134), Kansas (Ch. 102), Maine (Ch. 76)
Limitations on total liability of one borrower............................... Colorado (Ch. 135),
Connecticut (Act 538), Kansas (Ch. 102), Massachusetts (Ch. 39), Minnesota
(Ch. 82), New York (Ch. 444), Wisconsin (Ch. 134)
Limitation on loans to directors, officers and employees...............New York (Ch. 28)
Personal and installment loans.................. Michigan (Act 19), Minnesota (Ch. 314),
New Mexico (Ch. 174), New York (Chs. 487, 636,705), Pennsylvania (Acts 290, 476)
Motor Vehicle Sales Finance Act............................................... Pennsylvania (Act 476)
Retail installment sales financing.............................................................................................
...........................Connecticut (Act 248), Indiana (Ch. 238), Pennsylvania (Act 476)
Prohibition against designation of insurer or insurance agent by lenders...................
........................................................................ Michigan (Act 67), New York (Ch. 153)
Authorization of any real estate loan which national bank may make...........................
.................................................................................................................Colorado (Ch. 136)
INVESTMENTS
Limitations on investments of deposits......................................... .......................................
........................................................Colorado (Chs. 133, 134), Massachusetts (Ch. 236)
By savings banks and savings departments in bonds of outstate cities of population
of 50,000 instead of 20,000.............................................................. Connecticut (Act 55)
Housing authority bonds............................................................................................................
.....................Connecticut (Act 79), New Hampshire (Ch. 169), Wisconsin (Ch. 361)
By savings banks in securities authorized for banks and trust companies...................
................................................................................................................. Minnesota (Ch. 78)
Banking premises...............Kansas (Ch. 102), Massachusetts (Ch. 36), Ohio (HB 196)
Obligations issued or guaranteed by International Bank for Reconstruction and
development.......................................................................... Connecticut (Acts 109, 529)
Maryland (Ch. 182), New Hampshire (Ch. 19), New Jersey (Ch. 308)
Limitations on investments in municipal bonds of other states............ Kansas (Ch. 102)
Banking Committee authorized to regulate amount and kind of foreign bonds offered
for sale by International Bank for Reconstruction and Development, except Cana
dian bonds payable in dollars, which banks may purchase.......... Wisconsin (Ch. 117)
Obligations of Dominion of Canada, its provinces and cities.............................................
................................................................ Colorado (Chs. 133, 134), New York (Ch. 686),
STATE LEGISLATION
89
Renovation and improvement loans insured by F H A ................ Connecticut (Act 113)
Investment securities— change in test for legal investments. . . . Connecticut (Act 55)
Federal Land Bank bonds and other governmental obligations.......................................
............................................................................. Georgia (Act 103), Wisconsin (Ch. 134)
Railroad obligations............................................................................... New York (Ch. 244)
Purchase and improvement of real estate for housing purposes by savings banks. . . .
........................................................................................................ Massachusetts (Ch. 142)
Loans and securities guaranteed or insured by Veterans Administration...................
........................................................................................................ Massachusetts (Ch. 110)
Extension and modification of mortgage investments...................New York (Ch. 257)
Stock investment of industrial banks................................................... New York (Ch. 45)
Authorization for investment in Agricultural Credit Corporation stock repealed. . . .
........................................................................................................ North Dakota (Ch. 108)
Banks and trust companies with less than $50,000 capital and surplus authorized to
make insured time deposits as investments in insured banks.......... Oregon (Ch. 30)
Investments in evidences of debt and corporate stock...................Vermont (HB 136)
Mutual savings bank investments............................................................ Oregon (Ch. 354)
Bank and trust company authorized to purchase shares in title insurance corporation
to which its title insurance business is transferred.............. Pennsylvania (Act 326)
Repeal of requirement that unauthorized real estate be disposed of in five years and
that property, received for debts previously contracted which may not be pur
chased, be disposed of in five years........................................... Pennsylvania (Act 426)
Authorization for taking title to real estate for purpose of carrying real estate con
ditional sales contracts....................................................................Washington (Ch. 149)
Bond secured by mortgage on leasehold estate................................New Jersey (Ch. 27)
TRUST ACTIVITIES
Investments. .New Jersey (Ch. 308), Pennsylvania (Act 468), South Carolina (Act 572)
Prudent man investment rule.......................Nevada (Ch. 51), Oregon (Ch. 523),
Pennsylvania (Act 468— certain bonds and preferred stocks), Washington (Ch. 100)
Uniform Common Trust Fund Act.......................Colorado (Ch. 325), Texas (Ch. 209)
Investment in common trust fund....................................................Arkansas (Act 394),
California (Ch. 338), Connecticut (Acts 223, 265), Delaware (Ch. 268), Georgia
(Act 96), Indiana (Ch. 297), Minnesota (Ch. 234), Pennsylvania (Act 427)
Exemption of common trust fund from income tax.......................Colorado (Ch. 211)
Increase of limit of investment in common trust funds and removal of limitation on
size of fund....................................................................................... Connecticut (Act 265)
Investment of trust funds in loans insured or guaranteed under Servicemen's Read
justment Act................................................ Kansas (Ch. 315), Pennsylvania (Act 158)
Registration in name of nominee of stock held by fiduciary.......... Arkansas (Act 394),
California (Ch. 102), Connecticut (Act 68), Indiana (Ch. 115), Maine (Ch. 59),
Pennsylvania (Act 399), Washington (Ch. 146)
Transfer of securities to or by fiduciaries or their nominees...........................................
.........................................Arkansas (Act 394), Maine (Ch. 59), Washington (Ch. 159)
90
FEDERAL DEPOSIT INSURANCE CORPORATION
Authorization of executive committee, instead of board of directors or board of trustees,
to exercise trust powers................................................................. .Georgia (Acts 95, 99)
Authorization for trustee to convey real and personal property and execute proxies
on terms in best interest of trust............................................................ Illinois (HB 47)
Fiduciaries proxies.......................................................................................................................
. . . .California (Ch. 101), Illinois (HB 47), Michigan (Act 166), Tennessee (Ch. 11)
Sale without appraisals of securities listed on national stock exchanges.......................
......................................... .......................................................................... Indiana (Ch. 351)
Investment of trust funds in municipal authority bonds.. . . . .Pennsylvania (Act 189)
Trust investments in certain common and preferred stock.............. Indiana (Ch. 297)
Investment of funds held by fiduciary in life, endowment or annuity contracts..........
........................................................................................................................Idaho (Ch. 206)
Joint control of surety with fiduciary over trust funds.......... North Dakota (Ch. 197)
Fiduciaries authorized to pay premiums, brokers’ commissions, title charges, attorneys’
and recording fees, cost of survey and revenue stamps and other charges in purchase
of or investment in real estate mortgages................................... New Jersey (Ch. 306)
Real estate mortgage investments...................................................... New York (Ch. 527)
DIRECTORS, TRUSTEES, OFFICERS AND EMPLOYEES
Compensation of directors and trustees................................. Connecticut (Acts
84 , 5 3 8 )
Commissions authorized on insurance and surety bond premiums in transaction to
which bank is a party...............................................................North Carolina (Ch. 6 9 5 )
Repeal of limitation on salaries based on percentage of deposits...................................
.......................................................................................................New Hampshire (Ch. 7 0 )
Bonus payments to employees..........................................................Washington (Ch.
Limitations on loans. .Florida (Ch.
2 3 7 6 2 ),
New York (Ch.
2 8 ),
147)
Washington (Ch.
147)
Thirty days’ notice to supervisory authority of retirement, resignation, and dis
qualifying of any officer............................................................................ Oregon (Ch. 7 7 )
Report to directors and supervisory authority of stockholders examining Committee
............................................................................................................. ..
Oregon (Ch. 3 6 )
Annual instead of semiannual trial balance of depositors’ accounts by directors. . . .
.............................................................................................................. Connecticut (Act 4 0 )
Filling director vacancies between annual meetings.............................Georgia (Act
98 )
Forfeiture of office upon default on obligation of officer or director.. .Kansas (Ch.
102)
Cumulative voting in election of directors........................................... Wyoming (Ch.
23)
Removal of officer or director by banking board...................................Kansas (Ch. 102)
Insurance on lives of active and retired officers and employees of savings banks. . . .
................................................................................................................. New York (Ch. 27 )
Directors’ qualifying shares.....................Florida (Ch.
2 3 7 6 0 ),
North Dakota (Ch.
112)
Vice-presidents’ qualifying shares............................................................. Kansas (Ch. 102)
Repeal of requirement of individual surety bonds for officers and employees..........
.............................................................................................................Washington (Ch. 1 32)
STATE LEGISLATION
91
Sales to or purchases from any officer or employee without approval of supervisory
authority prohibited.................................................................................Kansas (Ch. 102)
Outstate residence of one director authorized..................................... Wisconsin (Ch. 19)
Requirement that only one vice-president must be director. . . . Wisconsin (Ch. 134)
Criminal penalties and civil liability for violations of banking law...........................
.............................................................................................................Connecticut (Act 538)
CHECKS AND COLLECTIONS
Authorization of one day delay in returning, or giving notice of, dishonored checks..
..............................Massachusetts (Ch. 167), Michigan (Act 49), Nebraska (Bill 246)
Limitation of action on recovery of money paid on forged signature...............................
..................................................Kansas (Ch. 102), Maine (Ch. 11), Wisconsin (Ch. 80)
Limitations on stop payment orders................. Kansas (Ch. 102), Tennessee (Ch. 208)
Certified checks............................................................Kansas (Ch. 102), Montana (Ch. 9)
Liability for non-payment of checks. . . Florida (Ch. 23756), Massachusetts (Ch. 169)
Authority to refuse payment of checks six months after date............................................
....................................................................................................... New Hampshire (Ch. 92)
Regulation of charges on cash item................................................South Dakota (Ch. 26)
Bank relieved of liability for erroneous payment of post-dated check when not notified
of issuance............................................................................................. Florida (Ch. 23756)
HOLIDAYS
Legal holidays and memorial days............................................................ Arizona (Ch. 45),
Arkansas (Act 78), California (Ch. 650), Indiana (Ch. 236), Maryland (Chs. 139,
729), Oklahoma (HB 128), Wisconsin (Ch. 134)
Saturday holidays...........................Connecticut (Act 6), Florida (Chs. 24136, 24275—
only in certain counties), Georgia (Act 313—only in counties of 70,000 population
or more), Maryland (Ch. 127— all but five counties), Massachusetts (Ch. 9), New
Hampshire (Ch. 35), New Jersey (Ch. 10), New York (Ch. 22), Ohio (SB 260)
Pennsylvania (Act 52), Rhode Island (Chs. 1817, 1825), Washington (Ch. 221),
Wisconsin (Ch. 36)
Five-day week........................................................................................ Missouri (HB 57, 58)
Summer Saturday holidays.......................................................................... Maine (Ch. 345)
TAXATION
Capital stock___ Nebraska (Bill 100), New Jersey (Ch. 249), New Mexico (Ch. 106)
Income tax..........................................California (Chs. 830, 831, 1164, 1315, 1371, 1468),
Connecticut (Act 346), Oklahoma (HB 29), Oregon (Ch. 172)
Income tax on participants in common trust fund.............................Colorado (Ch. 211)
Financial institutions....................................................................................... Iowa (Ch. 238)
Deposits............................................................ Maine (Ch. 314), Rhode Island (Ch. 1940)
Exemption of surplus and reserves in an amount of each equal to capital...................
............................................................................................................New Mexico (Ch. 106)
Recording of mortgages............................................................................ Alabama (Act 181)
Deductions for bank commencing business after commencement of tax year...........
.................................................................................... .................... North Carolina (Ch. 72)
92
FEDERAL DEPOSIT INSURANCE CORPORATION
LIQUIDATION
Escheat of unclaimed deposits, funds, or dividends............................................................
North Carolina (Chs. 613, 621), North Dakota (Ch. 115), Washington (Ch. 148)
Refund of escheat funds.............................................................. North Carolina (Ch. 614)
Voluntary liquidation..................................................................................Kansas (Ch. 102)
Disposition of safekeeping property in any liquidation.............. Washington (Ch. 148)
Reserves for litigation..............................................................................New York (Ch. 95)
Reports to Attorney General on corporations in liquidation.......... New York (Ch. 95)
CREDIT UNIONS
Organization.....................................................................................................Texas (Ch. 375)
Reports to supervisory authority..........................................................Florida (Ch. 23662)
Powers, duties, and regulations.................................................................................................
.......... Connecticut (Act 527), Florida (Ch. 23662), Illinois (SB 544), Iowa (Ch. 269)
Capital...................................................... Massachusetts (Ch. 87), Washington (Ch. 213)
Reserve equal to 10 percent of share and deposit balances................................................
.................................................................................. Iowa (Ch. 269), Tennessee (Ch. 125)
Examination fees........................................................Florida (Ch. 23662), Iowa (Ch. 269)
Loans:
Classes of loans.................................................................................Washington (Ch. 213)
Loan limit...............Maryland (Ch. 719), North Dakota (Ch. I ll) , Texas (HB 428)
Loans to directors and committee members......................................... Texas (Ch. 375)
Loans to credit unions.............................................................................. Illinois (SB 594)
Life insurance upon borrowers............................................................Wisconsin (Ch. 90)
Real estate loans. . .Iowa (Ch. 269), Maryland (Ch. 720), Massachusetts (Ch. 178)
Collateral loans....................................... Maryland (Ch. 718), Massachusetts (Ch. 85)
Authorization of compensation for directors and committee members.......................
................................................................................................................ Maryland (Ch. 719)
Supervisory committee of not less than three members...................Colorado (HB 955)
Authorization of payroll deductions for savings and loan payments, bond purchase
and insurance premiums............................................................ Massachusetts (Ch. 189)
Joint shares or deposits..................................................................Rhode Island (Ch. 1877)
Spouse of member eligible for membership....................................... New York (Ch. 258)
Dissolution.................................................................................................... Indiana (Ch. 243)
Distribution on liquidation....................................................................Tennessee (Ch. 125)
Dividends.................................................................... New York (Ch. 29), Texas (Ch. 375)
Taxation of dividends............................................................................... Missouri (HB 407)
m is c e l l a n e o u s
Assignment of accounts receivable................................................California (Ch. 1391),
Colorado (Ch. 120), Connecticut (Act 305), Florida (Ch. 24297), Oklahoma (HB
210), Washington (Ch. 8)
STATE LEGISLATION
93
Trust receipts........................................................Arizona (Ch. 72), Delaware (Ch. 266),
Nevada (Ch. 208), New Mexico (Ch. 151), Oregon (Ch. 93), Wyoming (Ch. 110)
Uniform Stock Transfer Act. .Iowa (Ch. 252), Kansas (Ch. 186), Vermont (HB 217)
Defense of usury not available on any corporate obligation..............................................
................................................................................... Minnesota (Ch. 282), Ohio (SB 108)
Sale of pledged property........................................................................ Oklahoma (HB 129)
Penalty for derogatory statements about banks.....................................Illinois (HB 566)
Examination of safe deposit box of state institution patient... .New York (Ch. 384)
Offer to perform services of a legal nature by bank or trust company prohibited. . . .
..................................................................................................................... Kansas (Ch. 102)
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
N u m ber , O ffices ,
and
D eposits
of
O perating B anks
so
Table 101. Changes in number and classification of operating banks and branches in the United
States and possessions during 1947
The data in these tables relate to banks operating in the United
States and possessions. Data from the same tabulations by States are
published in the Federal Reserve Bulletin, January 1948, pp. 66-67, and
June 1948, pp. 686-87.
Institutions included in the new all-bank series are classified in three
groups: commercial and stock savings banks, trust companies engaged
in fiduciary business but not in deposit banking (designated nondeposit
trust companies), and mutual savings banks. However, the first two
of these groups are combined in the following tables, except that
noninsured institutions are subdivided into banks of deposit and
nondeposit trust companies.
CO R PO R ATIO N
The data given here are tabulated from individual reports of assets
and liabilities of the banks included. This procedure permits exclusion
or inclusion of any particular institution on the basis of the principles
adopted; and is the same as that used in the tables published in previous
annual reports of the Corporation. It differs from that used in all-bank
statistics formerly published by the Board of Governors of the Federal
Reserve System and by the Comptroller of the Currency, which utilized
summaries of State banking data prepared by State banking
departments.
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 engaged in general fiduciary business though not in deposit
banking are included. Uninvested trust funds of trust companies may
be insured by the Federal Deposit Insurance Corporation, and com
panies specializing in fiduciary activities are engaged in a type of
business the bulk of which is handled by banks of deposit. Credit
unions and savings and loan associations are excluded from the tabula
tions, except in the case of a few institutions accepting deposits under
the terms of special charters. A more detailed statement of institutions
included and excluded is given below.
INSURANCE
The tabulations for all banks and trust companies shown here are
prepared in accordance with an agreement among the Federal bank
supervisory agencies for a new “all-bank” series to replace the various
series previously published separately by the three agencies. The new
series differs only slightly from that previously published by this
Corporation. The differences between the old FDIC series and the new
are shown in Table 101 and described in footnote 3 to that table.
DEPOSIT
Table 103. Number and deposits of operating commercial and mutual savings banks, Dec
ember 31, 1947
Banks grouped according to insurance status and by District and State
FEDERAL
Table 102. Number of operating banks and branches, December 31, 1947
Grouped according to insurance status and class of bank, and by State and type
of office
Ci
Institutions included in the all-bank series
Institutions excluded from the all-bank series
Commercial and stock savings banks include the following
categories of banking institutions:
National banks except those (only one at the present time) not
regularly engaged in deposit banking;
Incorporated State banks, trust companies and banking trust
companies, regularly engaged in the business of receiving deposits,
whether demand or time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New
Hampshire;
Industrial and Morris Plan banks which operate under general
banking codes, or are specifically authorized by law to accept deposits
and in practice do so, or the obligations of which are regarded as
deposits for deposit insurance;
Special types of banks of deposit: cash depositories in South
Carolina; cooperative exchanges in Arkansas; savings and loan
companies operating under Superior Court charters in Georgia;
government operated banks in American Samoa, Guam, and North
Dakota; a cooperative bank, usually classified as a credit union,
operating under a special charter in New Hampshire; two savings
institutions, known as “trust companies,” operating under special
charters in Texas; and the Savings Bank Trust Company in New
York.
Private banks under State supervision, and such other private
banks as are reported by reliable unofficial sources to be engaged
in deposit banking;
Branches of foreign banks which engage in a general deposit
business in the continental United States or in the possessions;
In the possessions, branches of American banks engaged in a
general deposit business.
Figures for operating banks do not include institutions in the fol
lowing categories, though such institutions may perform many of the
same functions as banks:
Nondeposit trust companies include institutions operating under
trust company charters which are not regularly engaged in deposit
banking but are engaged in fiduciary business other than that incidental
to real estate title or investment activities.
M utual savings banks include all banks operating under State
banking codes applying to mutual savings banks.
Banks which have suspended operations or have ceased to accept
new deposits and are proceeding to liquidate their assets and pay
off existing deposits, regardless of the amount of deposit liability still
remaining and regardless of whether they are listed among operating
banks or included in abstracts of condition of banks published by
State banking authorities;
Building and loan associations, savings and loan associations,
credit unions, personal loan companies, and similar institutions,
chartered under laws applying to such institutions or under general
incorporation laws, regardless of whether such institutions are au
thorized to accept deposits from the public or from their members
and regardless of whether such institutions are called “banks” (a few
institutions accepting deposits under powers granted in special
charters are included);
Morris Plan companies, industrial banks, loan and investment
companies, and similar institutions except those mentioned in the
description of institutions included.
Branches of foreign banks, and of private banks, which confine
their business to foreign exchange dealings and do not receive “de
posits” as that term is commonly understood;
Institutions chartered under banking or trust company laws, but
operating as investment or title insurance companies and not engaged
in deposit banking or fiduciary activities;
Federal Reserve banks and other banks, such as the Federal Home
Loan banks and the Savings and Loan Bank of the State of New
York, which operate as rediscount banks and do not accept deposits
except from financial institutions;
The postal savings system.
Table 101.
C h a n g e s in N u m b e r a n d C la s s i f i c a t io n
in t h e
o f O p e r a tin g B a n k s a n d B r a n c h e s
U n it e d S t a t e s a n d P o s s e s s io n s D u r in g
1947
CO
00
Commercial and stock savings banks
and nondeposit trust companies
All banks
Noninsured
Insured1
Type of change
Total
Members F. R.
System
Total
National State
Trust
Not
com
Total
mem Banks
panies
of de
bers
F. R.
posit not ac
cepting
System
deposits
In
Non
sured2 insured
1,915
1,890
6,483
6,462
763
776
+ 11
68
83
-11
+ 16
+ 44
-2
+25
+21
-24
-4
14
13
1
113
112
1
99
99
19
19
19
19
61
61
14
13
1
14
1
97
1
3
83
28
16
39
4
1
10
1
3
82
11
74
6
25
2
34
3
5
4
3
1
+29
+6
+23
+29
+6
+23
-29
-6
-23
-1
-1
-1
-1
+ 1
+1
+ 16
+ 47
-31
Banks beginning deposit op era tion s.................................
New banks
...............................................................
Financial institution becoming bank of deposit..................
113
112
1
99
99
Banks ceasing deposit op era tion s.......................................
Suspended bank not reopened or succeeded........................
Merged with financial aid of FDIC— net decrease............
Mergers and absorptions (without FDIC aid)—net
decrease ..........................................................................
Other liquidations .................................................................
97
1
3
83
82
11
74
6
8
5
Noninsured banks becom ing in s u red ...............................
Successions to noninsured banks...........................................
Admissions to insurance, operating banks4.........................
+32
+6
+26
-32
-6
-26
Insured bank b ecom in g n on in su red .................................
Voluntary withdrawal from insurance.................................
-1
-1
+ 1
+ 1
Net change during year.............................................................
533
541
-8
194
191
339
350
-8
+3
-3
Changes resulting fro m —
3
O ther changes in classification a m on g b a n k s................
National banks succeeding State banks...............................
State bank succeeding national bank..................................
Admissions to F. R. System.................................................
Withdrawals from F. R. System..........................................
Changes n ot involving nu m ber in any class:
Successions .............................................................................
Changes in title, location, or name of location...................
Changes in corporate powers.................................................
+7
+8
-1
2
15
1
+22
-6
+33
-5
8
75
2
4
66
2
4
9
8
68
2
4
64
2
2
13
10
+3
-3
+3
-3
2
5
-29
-2
+1
-33
+5
2
41
2
4
4
7
CO R PO R ATIO N
5,005
5,007
13,597
13,550
INSURANCE
13,403
13,359
1,170 14,234
1,209 14,218
-8
14,767
14,759
-8
DEPOSIT
BANKS
FEDERAL
Non
In
Total
sured insured
Mutual savings banks
BRANCHES
Number of branches, December 31, 1947.................................
Number of branches, December 31, 1946.................................
Revision in classification of branches—net3 .......................
4,408
4,220
Net change during year............................................................
+ 189
4,220
4,043
188
177
-1
-1
+ 177
+
12
4,237
4,063
4,096
3,928
1,870
1,787
1,181
1,132
1,045
1,009
141
134
1
171
157
124
115
47
42
+5
-1
-1
+ 175
+ 168
+83
+49
+36
+7
+ 14
+9
206
2
55
1
148
199
2
55
1
141
95
2
30
48
56
7
14
9
5
16
9
63
32
46
7
14
9
5
31
9
22
31
9
22
15
8
7
3
13
2
13
+3
+4
-7
+ 1
+4
-3
-4
4
4
704
698
318
306
Changes resulting from—
208
2
55
1
150
31
9
22
31
9
22
-1
1
+ 1
-1
+
1
-1
1
-1
+3
15
3
2
78
15
3
2
78
15
3
2
74
15
3
2
74
5
9
2
40
22
12
Number of offices, December 31, 1947...................................... 19,175
Number of offices, December 31, 1946...................................... 18,979
Revision in classification of offices—net3 .............................
-9
17,817
17,593
1,358 18,471
1,386 18,281
-1
-9
17,499
17,287
6,875
6,794
3,096
3,022
7,528
7,471
Net change during year............................................................ * +205
+224
-19
+ 191
-1
+ 1
1
DEPOSITS
Changes not involving number in any class:
Branches transferred as result of absorptions.....................
Sale of branches to other banks...........................................
Changes in powers—branches replacing facilities...............
Changes in title, location, or name of location...................
+ 1
12
AND
Other changes in classification among branches..........
Branch of noninsured bank admitted to insurance............
Branch of bank withdrawing from insurance.....................
Branches transferred as result of absorptions or successions
Admissions to F. R. System.................................................
12
OFFICES,
Branches discontinued..........................................................
Facilities provided as agents of the government................
Other branches discontinued.................................................
2
55
1
162
220
3
ALL BANKING OFFICES
+81
+74
+ 57
333
113
220
307
99
208
26
14
12
319
113
206
298
99
199
114
19
95
67
19
48
117
61
56
Offices closed............................................................................
Banks.......................................................................................
Branches..................................................................................
128
97
31
114
83
31
14
14
128
97
31
114
83
31
43
28
15
19
16
3
52
39
13
+ 31
+31
-31
-31
+ 28
+ 28
+ 10
+7
+3
+ 26
+22
+4
Changes in classification......................................................
Among banks..........................................................................
Among branches.....................................................................
-8
-1
-7
84
—4
21
14
7
10
10
-28
-28
-8
+ 14
386
392
-8
+
12
+ 2
14
9
5
14
9
5
+3
+3
_3
—3
4
4
1 Includes 7 trust companies not engaged in deposit banking on December 31, 1947, and 8 on December 31, 1946.
2 Includes 3 mutual savings banks members of the Federal Reserve System, for December 31, 1947, and December 31, 1946.
3 The number of noninsured banks and trust companies included in FDIC statistics was revised as of June 30, 1947, by agreement of the three Federal banking agencies.
The revisions are as follows: (a) exclusion of 12 companies operating under trust company charters but not engaged in fiduciary business other than that incidental to the real
estate title or mortgage business, and of 4 institutions operating under bank charters not actually engaged in deposit banking; (b) inclusion of 6 banks of deposit in possessions
(American Samoa, Guam, and the Panama Canal Zone) not previously covered by FDIC statistics, and of 1 bank of deposit operating under a special charter and 1 nondeposit
trust company not previously counted; and (c) reclassification of 8 guaranty fund savings banks from the mutual savings group to the commercial and stock savings group.
* ODerating a t b egin n in g o f yea r.
BANKS
Offices opened..........................................................................
Banks.......................................................................................
Branches..................................................................................
-17
68
-1 2
OPERATING
212
904
910
+ 11
OF
+
N U M BER ,
Branches opened for business............................................
Facilities provided as agents of the government................
Absorbed banks converted into branches...........................
Branches replacing offices closed or relocated.....................
Table 102.
N u m b e r o f O p e r a t in g B a n k s a n d B r a n c h e s , D e c e m b e r
31, 1947
o
O
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured1
State and type of bank or office
Non
Insured insured Total
Noninsured
Members F. R.
System
Trust
Not
com
mem Banks panies Total
Total
of de not ac
bers
F. R.
posit cepting
National State
System
deposits
17,499
13,403
12,320
1,083
4,096
6,875
5,005
4,726
279
1,870
3,096
1,915
1,719
196
1,181
7,528
6,483
5,875
608
1,045
904
763
716
47
141
United States..................................... 19,046
All banks............................................. 14,714
Unit banks...................................... 13,4-96
1,218
Banks operating branches...........
4,332
Branches.........................................
17,810
13,592
12,451
1,141
4,218
1,236 18,342 17,492
1,122 14,181 13,398
1,01*5 13,062 12,317
77 1,119
1,081
114 4,161
4,094
6,875
5,005
A,726
279
1,870
3,096
1,915
1,719
196
1,181
7,521
6,478
5,872
606
1,043
787
720
682
38
67
63
63
63
129
53
42
11
76
7
5
3
2
2
7
5
3
2
2
117
43
34
9
74
5
5
5
Alabama................................................
All banks.........................................
Unit banks......................................
Banks operating branches...........
Branches...........................................
244
222
218
422
241
219
215
U
22
132
132
132
3
3
3
Arizona..................................................
All banks.............................................
Unit banks......................................
Banks operating branches.
Branches.......................................
51
11
6
5
40
50
10
5
5
40
Arkansas...............................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
247
228
211
17
19
234
215
198
17
19
129
53
42
11
76
7
5
3
2
2
3
3
3
244
222
218
4
22
241
219
215
u
22
1
51
11
6
5
40
247
228
211
17
19
122
48
39
9
74
68
68
68
704
533
434
99
171
318
194
134
60
124
386
339
300
39
47
92.9
92.1
92.0
93.0
95.7
94.7
94.2
94.0
95.8
96.7
45.2
36.4
30.9
60.6
72.5
704
533
434
99
171
318
194
134
60
124
386
339
300
39
47
93.5
92.4
92.3
93.7
97.4
95.4
94.5
94.3
96.6
98^4
45.2
36.4
30.9
60.6
72‘.5
5.4
9.4
7.1
18.2
2.6
5.4
9.4
7.1
18.2
2.6
98.8
98.6
98.6
100.0
100.0
98.8
98.6
98.6
100.0
100.0
98.0
90.9
83.3
100.0
ioo!o
98.0
90.9
83.3
100.0
ioo!o
94.7
94.3
93.8
100.0
100.0
94.7
94.3
93.8
100.0
100.0
State
1
1
13
13
13
88
21
67
6.4
3
21
20
19
1
50
10
5
5
40
33
3
1
2
30
2
2
2
234
215
198
17
19
51
50
49
1
16
16
16
1
1
15
5
2
3
10
167
149
133
16
18
1
1
1
12
12
12
1
1
1
CO R PO R ATIO N
1,358 18,471
1,170 14,234
1,08 4 13,10k
86 1,130
188 4,237
INSURANCE
17,817
13,597
12,454
1,1 U3
4,220
Com Mutual
In
Non
All
sured2 insured banks mercial savings
banks banks
DEPOSIT
United States and possessions........ 19,175
All banks............................................. 14,767
Unit banks....................................... 13,538
1,229
Banks operating branches.............
4,408
Branches.....................................
Possessions.......................................
All banks.........................................
Unit banks...................................
Banks operating branches...........
Branches...........................................
Insured banks
as percentages of—
FEDERAL
Total
Mutual savings banks
California..............................
All banks.............................
Unit banks.......................
Banks operating branches,
Branches..............................
167
35
896
147
146
1U5
1
1
211
188
178
10
23
1,084
189
155
3U
895
14
13
12
1
1
1,084
189
155
3A
895
814
94
81,
10
720
156
22
U
8
134
114
73
57
16
41
5
4
3
1
1
147
146
11,5
1
1
139
138
137
1
1
78
77
76
1
1
15
15
15
46
46
1,6
8
8
110
59
51
U6
5
8
17
14
12
2
3
34
33
32
1
1
27
17
16
1
10
8
31
21
17
U
10
1
1
113
101
93
8
12
98
87
85
2
11
138
116
107
9
22
52
38
31
7
14
4
3
2
1
1
53
39
32
7
14
52
38
31
7
14
13
13
13
57
19
5
U
38
57
19
5
U
38
30
9
2
7
21
182
180
178
2
2
63
61
59
2
2
8
8
98
90
8
12
District of Columbia..........
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
57
19
5
38
57
19
5
U
38
Florida...................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
188
185
182
3
3
182
180
178
2
2
5
U
1
1
188
185
182
3
3
Georgia..................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
410
379
366
13
31
340
311
300
11
29
70
68
66
2
2
410
379
366
13
31
340
311
300
11
29
Idaho......................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
93
48
92
47
U
6
45
1
1
1
93
48
W
6
45
Illinois....................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
886
8
15
U
U2
6
45
883
880
3
3
870
867
86U
3
3
6
16
16
16
886
883
880
3
3
4
1
3
4
21
6
7
2
5
14
3
1
2
3
100.0
70
69
68
1
1
53.6
53.7
52.2
80.0
52.2
79.7
84.5
3
2
1
1
1
92.9
92.7
93.9
87.5
93.3
98.1
97.4
96.9
100.0
100.0
10
10
71
50
U
6
21
19
14
12
2
5
250
247
2U
3
3
70
68
66
2
2
92
47
hi
6
45
58
15
10
5
43
11
11
23
21
20
1
2
1
1
1
870
867
86U
3
3
381
378
375
3
3
364
364
36U
11
11
11
125
125
125
3
3
3
100.0
100.0
100.0
100.0
100.0
4
3
2
1
1
11
3
2
1
1
1
1
109
109
109
10
1
1
73
72
71
1
1
94.6
94.5
91>.5
2
2
2
8h.l
88.9
54.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
96.8
97.3
97.8
66.7
66.7
96.8
97.3
97.8
66.7
66.7
82.9
82.1
82.0
82.9
82.1
82.0
93.5
93.5
98.9
97.9
97.6
98.9
97.9
97.6
100.0
100.0
100.0
100.0
98.2
98.2
98.2
98.2
98.2
98.2
100.0
100.0
8U.6
5
5
5
100.0
100.0
8U.6
100.0
4.1
4.2
U.2
BANKS
56
41
33
1
94.6
94.5
9U.5
OPERATING
Delaware................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
8
98.7
93.6
92.8
97.1
99.9
OF
8
98.7
93.6
92.8
97.1
99.9
DEPOSITS
139
138
137
1
1
9
9
9
AND
1,098
202
167
35
896
OFFICES,
Connecticut..........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
202
N U M BER ,
Colorado................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
1,098
Table 102.
N
um ber
of
O p e r a t in g B a n k s
and
B
ranches,
D
ecem ber
31, 1947—Continued
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured1
Total
Noninsured
Members F. R.
System
Trust
Not
com
mem Banks panies Total
Total
bers
of de not ac
F. R.
posit cepting
National State
System
deposits
564
476
A2J,
52
88
17
16
15
1
1
577
488
Jf.35
53
89
561
473
U21
52
88
144
125
UU
11
19
126
112
110
2
14
291
236
197
39
55
13
12
11
1
1
Io w a ........................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
826
664
5Uh
120
162
757
602
U87
115
155
69
62
57
5
7
826
664
5U
120
162
757
602
U87
115
155
96
96
96
67
67
67
594
439
32U
115
155
K ansas...................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
610
610
610
452
452
U52
158
158
158
610
610
610
452
452
U52
174
174
17U
41
41
hi
K en tu ck y ..............................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
424
388
370
18
36
398
362
su
18
36
26
26
26
424
388
370
18
36
398
362
su
18
36
110
93
91
2
17
L ouisian a..............................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
223
160
126
su
63
222
159
125
3U
63
1
1
1
223
160
126
3U
63
222
159
125
SU
63
M aine.....................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
168
96
70
26
72
121
60
U2
18
61
47
36
28
8
11
134
64
UO
2!>
70
115
54
36
18
61
3
3
3
4
4
U
3
3
3
1
1
1
97.1
96.7
96.6
98.1
98.9
97.2
96.9
96.8
98.1
98.9
69
62
57
5
7
91.6
90.7
89.5
95.8
95.7
91.6
90.7
89.5
95.8
95.7
237
237
237
158
158
158
74.1
74.1
7U.1
74.1
74.1
7U.1
28
20
15
5
8
260
249
238
11
11
23
23
23
93.9
93.3
93.0
100.0
100.0
93.9
93.3
93.0
100.0
100.0
66
34
26
8
32
16
12
8
U
4
140
113
91
22
27
1
1
1
99.6
99.4
99.2
100.0
100.0
99.6
99.4
99.2
100.0
100.0
41
33
28
5
8
34
5
1
U
29
40
16
7
9
24
19
10
U
6
9
72.0
62.5
60.0
69.2
84.7
85.8
84.4
90.0
75.0
87.1
3
3
3
34
32
30
2
2
6
6
6
28
26
2U
2
2
75.0
75.0
75.0
COR PO R ATIO N
581
492
U39
53
89
INSURANCE
Unit banks.......................................
Banks operating branches...............
Branches.............................................
Com Mutual
In
Non
All
sured2 insured banks mercial savings
banks banks
DEPOSIT
In d ia n a ..................................................
Non
Insured insured Total
Insured banks
as percentages of—
FEDERAL
State and type^of bank or office
Mutual savings banks
17.6
18.8
20.0
Maryland.................................
All banks..................................
Unit banks.........................
Banks operating branches.
Branches..................................
All banks..................................
Unit banks....................... .
Banks operating branches.
Branches..................................
Michigan.................................
All banks.................................
Branches................................ .
Minnesota...............................
All banks..................................
Branches..................................
All banks..................................
Unit banks.........................
Banks operating branches.
Branches..................................
Missouri...................................
Unit banks.........................
Banks operating branches.
3
3
26
101
569
378
303
75
191
330
179
136
239
199
167
151
342
188
1U3
U5
154
330
179
136
U3
151
654
448
389
59
206
615
419
363
56
196
654
448
389
59
206
615
419
363
56
196
150
78
67
686
680
678
658
652
650
685
679
677
657
651
649
261
206
175
31
55
257
261
206
175
31
55
257
171
31
55
597
597
597
566
566
566
597
597
597
2
6
US
202
2
6
118
86
71
15
32
2
1
204
84
27
12
15
57
42
31
2U
7
11
12
9
7
2
3
226
190
159
31
36
31
21
18
3
10
8
8
8
72
239
151
137
U
88
186
180
178
28
28
28
443
443
UU3
26
26
26
2
2
2
202
6
6
6
225
171
1U1
30
54
566
566
566
101
101
101
386
386
386
43
43
us
30
30
30
18
18
18
215
215
215
5
1
3
2
1
1
1
2
6
121
100
21
83
11
171
31
55
1
1
1
1
1
16
2
1
1
14
227
190
160
30
37
4
4
U
29
29
29
25
9
6
3
16
2
2
2
1
1
1
1
1
1
2
95.9
94.9
95.9
89.7
97.4
98.9
98.8
99.3
96.2
99.0
227
190
160
30
37
58.0
47.4
UU-9
57.3
79.1
96.5
95.2
95.1
95.6
98.1
94.0
93.5
93.3
9U.9
95.1
94.0
93.5
93.3
9U.9
95.1
95.9
95.9
95.9
100.0
100.0
95.9
95.9
95.9
100.0
100.0
98.5
98.1
97.7
100.0
100.0
98.5
98.1
97.7
100.0
100.0
94.8
94.8
9U.8
94.8
94.8
9U.8
100.0
100.0
100.0
100.0
100.0
100.0
86.2
86.1
86.1
100.0
100.0
86.2
86.1
86.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
9
7
5
Branches..................................
Montana..................................
All banks..................................
Unit banks.........................
Banks operating branches.
112
112
112
112
112
112
112
112
112
112
112
420
418
U16
362
360
358
420
418
U16
362
360
358
112
Branches..................................
Nebraska..................................
All banks..................................
Unit banks.........................
Banks operating branches.
Branches..................................
Nevada.....................................
All banks.................................
Unit banks.........................
Banks operating branches.
Branches..................................
2
2
129
127
125
26
8
3
5
18
13
1
4
50
50
50
8
8
8
64.0
22.2
16.7
S3.3
87.5
100.0
100.0
100.0
BANKS
69
16
10
6
53
OPERATING
77
62
58
U
15
264
OF
All banks..................................
26
114
164
139
25
100
1U0
DEPOSITS
Mississippi..............................
267
166
6
AND
Unit banks.........................
Banks operating branches.
12
9
1U0
OFFICES,
Unit banks.......................
Banks operating branches.
280
166
N U M BER ,
Massachusetts.......................
292
175
1U6
29
117
O
CO
Table 102.
N u m b e r o f O p e r a tin g B a n k s a n d B r a n c h e s , D e c e m b e r
31, 1947—Continued
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Commercial and stock savings banks
and nondeposit trust companies
All banks
Banks operating branches
Branches
507
363
302
61
144
55
47
U0
7
55
47
8
2
4
4
It.
ho
7
8
1,573
782
628
15U
791
North Carolina
All banks
........................
Unit banks
Banks operating branches
Branches
..........
••
396
226
17U
52
170
391
223
172
51
168
5
3
2
1
North Dakota
..........................
All banks
........................
Unit banks
..
Banks operating branches
...
Branches
• • •
176
152
135
17
24
168
146
131
15
8
6
22
2
2
12
10
8
2
2
2
U
2
58
57
56
1
1
52
51
50
1
1
5
5
5
63
47
39
8
16
1
1
1
476
339
282
57
137
259
214
192
22
45
154
78
51
27
76
55
47
U0
7
55
47
U0
7
24
24
9
9
9
n
8
1
1
1
35
34
33
1
1
3
3
3
31
24
20
u
7
1
31
24
20
u
7
1,366
651
5U6
105
715
Slf-9
1*0
396
226
17U
52
170
391
223
172
51
168
61
45
38
7
16
176
152
135
17
24
168
146
131
15
41
41
hi
585
389
196
99.2
98.8
98.6
100.0
100.0
100.0
1 0 0 .0
1 0 0 .0
1 0 0 .0
14
7
7
1 0 0 .0
1 0 0 .0
100.0
100.0
100.0
100.0
1 0 0 .0
1 0 0 .0
20
310
170
129
U1
140
5
3
2
1
127
105
90
15
7
5
3
2
22
2
12
99.2
98:9
98.7
100.0
1 0 0 .0
130
76
61
15
54
8
76.3
77.0
77.8
50.0
50.0
1 0 0 .0
651
186
136
50
465
5
3
52.3
52.8
53.3
33.3
33.3
22
8
1,378
661
55J+
107
717
22
35
34
33
1
18
17
16
1
1
480
343
286
57
137
8
1,585
792
636
156
793
New York
..............................
All banks
............................
Unit banks
.
..............
Banks operating branches
Branches
.
••• ••
76
74
72
2
207
131
82
U9
76
12
10
8
2
2
2
1
1
1
207
131
82
U9
76
99.2
98.7
98.7
98.7
99.7
99.1
98.5
98.6
98.1
99.7
98.7
98.7
98.9
98.1
98.8
98.7
98.7
98.9
98.1
98.8
95.5
96.1
97.0
88.2
91.7
95.5
96.1
97.0
88.2
91.7
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
100.0
100.0
1 0 0 ,0
C O R POR ATIO N
New Mexico
All banks
Unit banks
Banks operating branches
Branches
1
511
367
306
61
144
53
51
U9
2
Com Mutual
Non
All
In
sured2 insured banks mercial savings
banks banks
INSURANCE
New Jersey .......................................
All banks
...
...
Unit banks
.
..............
Banks operating branches
Branches
..............
58
57
56
1
Trust
Not
com
mem Banks panies Total
of de not ac
bers
Total
posit cepting
F. R.
National State
System
deposits
DEPOSIT
111
108
105
3
3
Members F. R.
System
FEDERAL
Non
Total Insured insured Total
Insured banks
as percehtages of—
Noninsured
Insured1
State and type of bank or office
Mutual savings banks
O hio........................................
All banks.............................
Unit banks .......................
Banks operating branches
860
671
630
U1
189
Oklahoma.............................
All banks.............................
Unit banks .......................
387
386
385
Banks operating branches
Branches.............................
1
1
376
375
37U
1
14
14
U
11
11
11
1
17
1U
3
4
Rhode Island........................
All banks.............................
Unit banks .......................
79
29
15
51
14
7
7
37
28
15
8
7
13
23
23
23
1U
50
2
2
2
21
Branches.............................
33
South Dakota......................
All banks.............................
Unit banks .......................
217
170
1U5
25
47
217
170
1A5
25
47
371
297
271
26
74
363
289
263
26
74
8
8
896
892
887
5
4
832
828
823
5
4
64
64
6U
Banks operating branches
Branches.............................
Tennessee..............................
All banks.............................
Unit banks .......................
Banks operating branches
Branches.............................
Texas.......................................
All banks.............................
Unit banks .......................
Banks operating branches
Branches..............................
8
8
1
202
201
24
24
2U
150
150
150
9
9
9
3
3
3
2
2
2
1
151
70
63
7
81
149
98
68
22
10
61
7
81
20
2
76
10
1,144
995
937
58
149
1,123
978
923
55
145
734
647
617
30
87
149
67
8
12
47
51
14
7
7
37
18
9
6
3
9
183
150
1U2
8
33
160
127
119
8
33
49
24
22
2
25
9
7
5
2
2
217
170
1U5
25
47
217
170
1U5
25
47
55
35
31
U
28
28
28
134
107
86
21
27
371
297
271
26
74
363
289
263
26
74
104
70
63
7
34
23
236
208
191
17
28
5
5
5
896
892
887
5
4
832
828
823
5
4
441
437
U32
5
4
126
126
126
265
265
265
64
64
6U
20
3
3
3
10
111
99
12
38
22
2
2
20
20
11
9
2
12
41
36
31
5
5
240
220
207
13
20
11
3
1
2
8
102
96
92
u
1
1
1
1
1
1
1
1
1
1
1
1
19
15
12
3
4
15
5
5
2
2
2
1
1
1
10
23
23
23
6
23
7
3
u
16
12
9
7
2
3
23
7
3
U
16
12
9
7
2
3
98.4
97.9
97.8
98.4
97.9
97.8
100.0
100.0
100.0
100.0
97.2
97.2
97.1
97.2
97.2
97.1
100.0
100.0
100.0
100.0
98.7
97.2
96.9
98.7
97.1
96.8
100.0
100.0
100.0
98.2
98.3
98.5
95.2
97.6
98.2
98.3
98.5
9U.8
97.3
64.6
48.3
U6.7
50.0
74.0
76.1
70.0
87.5
58.3
78.7
87.4
84.7
83.8
87.4
84.7
83.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3
3
3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.8
97.3
97.0
97.8
97.3
97.0
100.0
100.0
100.0
92.9
92.8
92.8
92.9
92.8
92.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
BANKS
1U2
160
127
119
8
33
Banks operating branches ,
200
1
14
14
1U
OPERATING
South Carolina....................
All banks.............................
Unit banks .......................
183
150
376
375
37U
1
254
230
215
15
24
OF
1,146
985
926
59
161
Banks operating branches
387
386
385
1
300
184
169
15
116
DEPOSITS
1,167
1,002
9U0
62
165
Branches.............................
289
240
229
11
49
AND
Pennsylvania........................
All banks.............................
Unit banks.......................
Banks operating branches.
Branches.............................
Banks operating branches
843
654
613
Ul
189
OFFICES,
150
69
62
7
81
Branches.............................
627
Ul
189
1
152
71
6U
7
81
Oregon....................................
All banks.............................
Unit banks .......................
857
668
N U M BER ,
Branches.............................
846
657
616
Ul
189
o
Cn
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, 1947—Continued
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Commercial and stock savings banks
and nondeposit trust companies
All banks
80
70
63
7
10
79
69
62
7
10
41
39
37
2
2
1
1
1
37
29
24
5
8
402
314
270
44
88
402
314
270
44
88
161
131
118
13
30
83
71
65
6
12
158
112
87
25
46
3
3
8
242
123
112
11
119
239
120
109
11
119
146
38
31
7
108
20
16
15
1
4
73
66
63
3
7
3
3
3
177
177
177
5
5
5
182
182
182
177
177
177
76
76
76
32
32
32
69
69
69
4
4
U
1
1
1
695
546
4.56
90
149
11
10
9
1
1
702
552
461
91
150
692
543
453
90
149
110
95
91
L
15
74
68
64
4■
6
508
380
298
82
128
8
7
6
1
1
2
2
2
97
78
70
8
19
96
77
69
8
19
Virginia
All banks
Unit banks
Banks operating branches
Branches
402
314
270
44
88
402
314
270
44
88
W ashington
All banks
Unit banks
Banks operating branches
Branches
246
125
113
12
121
243
122
110
12
121
W est Virginia
All banks
U'nit banks
182
182
182
W iscon sin .............................................
All banks.............................................
Unit banks.......................................
Banks o'pBT&tx'fiQ t)TdyicTi&8
Branches
706
556
465
91
150
1
1
1
1
1
1
17
8
7
1
9
4
2
1
1
2
4
4
h
17
8
7
1
9
4
2
1
1
2
3
3
3
1
1
1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0
98.7
98.6
100.0
100.0
98.8
98.6
98.4
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
97.6
97.3
100.0
100.0
97.3
97.3
97.3
97.3
97.3
97.3
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 RPORATION
28
26
24
2
2
INSURANCE
22
22
22
Com Mutual
All
Non
In
sured2 insured banks mercial savings
banks banks
DEPOSIT
25
12
9
3
13
V erm on t
..............
All banks
Unit banks
Banks operating branches
Branches
National State
75
60
55
5
15
75
60
55
5
15
Branches
Total
Trust
Not
com
mem Banks
Total
panies
of de
bers
F. R.
posit not ac
cepting
System
deposits
75
60
55
5
15
75
60
55
5
15
Utah
Members F. R.
System
FEDERAL
Non
Total Insured insured Total
Insured banks
as percentages of—
Noninsured
Insured1
State and type of bank or office
Mutual savings, banks
Wyoming.................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
55
55
55
26
26
26
12
12
12
17
17
17
100.0
100.0
100.0
100.0
100.0
100.0
19.0
15.8
11.8
50.0
50.0
19.0
15.8
11.8
50.0
50.0
1.9
11.1
1U.3
1.9
11.1
U .3
66.7
50.0
66.7
50.0
100.0
100.0
100.0
100.0
Possession
4
3
2
1
1
4
3
2
1
1
17
16
15
1
1
Guam .......................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
1
1
1
AND
1
1
1
Panama Canal Zone............
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................
4
4
h
4
4
U
1
1
1
1
47
3
1
1
1
2
44
5
5
5
4
4
U
Puerto Rico............................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
OPERATING
53
9
7
2
44
OF
52
8
6
2
44
46
17
11
6
29
2
1
1
1
1
1
1
1
1
1 Includes 7 trust companies not regularly engaged in deposit banking: 1 national bank in Kansas; 2 State banks members of the Federal Reserve System, 1 each in Cali
fornia and Massachusetts; and 4 State banks not members of the Federal Reserve System, 1 each in Florida, Missouri, Pennsylvania and Wisconsin.
2 Includes 3 mutual savings banks members of the Federal Reserve System: 1 in Indiana and 2 in Wisconsin.
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 R eport for 1946, pp. 110-117, and earlier reports.
BANKS
2
1
DEPOSITS
Hawaii4 .....................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
Virgin Islands5 .......................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................
OFFICES,
American Samoa..................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
NUMBER,
Alaska3 .....................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
O
Table 103.
N
um ber
D
an d
e p o s it s
of
O p e r a t in g B a n k s , D
ecem ber
31, 1947
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND BY DISTRICT AND STATE
Number of banks
Commercial and stock savings
banks and nondeposit
trust companies
Mutual savings banks
Mutual savings banks
Noninsured
All
banks
Total
In
sured
Nonin
sured
All
banks
Total
Insured
Nonin
sured
Total
Insured
Nonin
sured
13,403
763
68
533
194
339 162,712,856 144,950,050 141,888,666
3,061,384 17,762,806 12,206,953
5,555,853
14,181
13,398
720
63
533
194
339 161,849,516 144,086,710 141,851,106
2,235,604 17,762,806 12,206,953
5,555,853
53
53
5
43
5
1.............
22............
3 .............
4 .............
5 .............
6 .............
7 .............
8 .............
9 .............
10...........
1 1 .........
123..........
877
1,219
1,673
1,066
992
1,510
1,496
1,547
1,114
1,615
1,110
548
532
1,062
1,663
1,057
992
1,510
1,488
1,547
1,113
1,615
1,110
545
471
1,029
1,632
1,024
912
1,432
1,435
1,469
1,079
1,380
1,044
496
58
30
29
31
78
69
40
73
31
225
65
34
3
3
2
2
2
9
13
5
3
10
1
15
State
Alabama..............
Arizona ..............
Arkansas ............
C aliforn ia..........
Colorado..............
222
11
228
202
146
222
11
228
202
146
219
10
215
189
138
12
4
8
9
Connecticut.........
Delaware.............
Dist. of Columbia
Florida.................
Georgia................
188
41
19
185
379
116
39
19
185
379
98
38
19
180
311
17
1
Possessions........
863,340
863,340
37,560
12,531,557
46,999,977
18,109,338
8,293,497
5,494,666
8,538,626
10,939,425
14,252,838
4,696,140
5,838,571
8,529,509
18,488,712
7,235,143
36,595,020
16,839,194
7,899,522
5,494,666
8,538,626
10,884,479
14,252,838
4,547,183
5,838,571
8,529,509
18,295,299
6,725,492
35,794,163
16,781,474
7,738,561
5,448,666
8,475,393
10,712,225
14,103,930
4,447,420
5,603,898
8,399,889
17,657,555
1,261,590
413,240
793,586
13,157,669
1,131,085
1,261,590
413,240
793,586
13,157,669
1,131,085
1,259,575
410,548
789,429
13,109,756
1,124,076
2,015
2,692
4,157
47,913
7,009
2,737,710
515,866
1,023,900
1,720,160
1,713,498
1,461,361
432,676
1,023,900
1,720,160
1,713,498
1,260,207
430,899
1,023,900
1,712,413
1,686,602
201,154
1,777
825,780
FDIC District
District
District
District
District
District
District
District
District
District
District
District
District
345
157
10
9
17
155
10
2
328
2
8
6
2
1
1
3
3
7
3
1
1
1
3
68
2
72
2
3
69
2
151,210
509,651 5,296,414
800,857 10,404,957 10,321,767
57,720 1,270,144 1,270,144
160,961
79,005
393,975
46,000
63,233
54,946
42,457
172,254
148,908
148,957
99,763
148,957
234,673
129,620
193,413
193,413
637,744
7,747
26,896
1,276,349
83,190
38,319
5,145,204
83,190
314,970
12,489
1,238,030
83,190
COR PO R ATIO N
14,234
United States... 14,714
INSURANCE
United States and
possessions........ 14,767
DEPOSIT
Trust
In
com
Total
sured1 Banks panies
of de not ac
posit cepting
deposits
FEDERAL
FDIC District
and State
Deposits (in thousands of dollars)
Commercial and stock savings
banks and nondeposit
trust companies
1
12
1,597,977
1,646,706
456,344
1,585,067
4,071,059
1,570,299
1,645,683
414,755
1,497,992
3,967,475
27,678
1,023
41,589
87,075
103,584
4,956,679
3,023,426
799,418
4,201,798
560,234
4,956,679
2,874,469
799,418
4,201,798
560,234
4,821,850
2,854,660
790,076
4,176,048
560,234
134,829
19,809
9,342
25,750
1,324,849
166,557
536,980
4,895,171
286,643
1,324,849
166,557
263,474
4,390,302
286,643
1,278,133
166,557
210,948
4,384,829
286,643
46,716
41,312,979
1,886,657
584,936
7,178,404
1,534,141
31,496,081
1,886,657
584,936
6,947,871
1,534,141
68
978
14
127
170
1,395,931
10,930,934
1,002,504
691,597
527,544
297
892
60
70
314
289
828
60
69
314
125
182
556
55
123
182
552
55
19
1
1
9
19
1
1
9
4
17
2
4
17
2
388
160
96
175
378
388
160
64
166
188
362
159
54
164
179
23
Michigan...............
Minnesota.............
Mississippi...........
Missouri................
Montana...............
448
680
206
597
112
448
679
206
597
112
419
651
202
566
112
21
26
4
29
Nebraska...............
Nevada.................
New Hampshire..
New Jersey...........
New Mexico.........
418
8
108
367
47
418
8
74
343
47
360
8
57
339
47
50
New York.............
North Carolina...
North Dakota. . .
Ohio........................
Oklahoma.............
792
226
152
671
386
661
226
152
668
386
651
223
146
654
375
Oregon...................
Pennsylvania. . . .
Rhode Island. . . .
South Carolina.. .
South Dakota. . . .
71
1,002
29
150
170
70
995
20
150
170
Tennessee.............
Texas......................
Utah...................
Vermont................
Virginia.................
297
892
60
78
314
Washirte^ton..........
West Virginia. . . .
Wisconsin.............
Wyoming..............
30,632
12,071
231,598
393,975
3,166,075
26,682
79,005
204,916
314,970
3,166,075
148,957
148,957
52,526
5,473
273,506
504,869
504,869
30,974,871
1,851,355
504,982
6,933,119
1,527,649
521,210
35,302
79,954
14,752
6,492
9,816,898
9,816,898
230,533
230,533
1,382,752
9,891,323
739,827
691,597
527,544
1,374,117
9,848,355
629,029
666,412
527,544
8,635
42,968
110,798
25,185
13,179
1,039,611
262,677
13,179
1,039,611
1,945,265
6,182,920
559,415
329,287
1,802,414
1,945,265
6,182,920
559,415
243,078
1,802,414
1,939,617
6,057,015
559,415
243,078
1,802,414
5,648
125,905
86,209
86,209
120
177
543
55
2,176,220
909,887
2,928,879
240,266
1,995,986
909,887
2,916,636
240,266
1,977,595
896,488
2,905,511
240,266
18,391
13,399
11,125
180,234
180,234
3
62,239
1,859
29,579
460,359
20,196
1
62,239
1,859
29,579
460,359
42,043
1,859
29,579
446,559
1
33,343
272,317
3,644
33,343
272,317
3,644
1
10
1
9
26
7
190
32
9
190
34
24
131
131
262,677
OF
13,800
12,243
11,825 ..........418
33,34:
3,564
1 Includes 7 trust companies not engaged in deposit banking: 1 each in California, Florida, Kansas, Massachusetts, Missouri, Pennsylvania, and Wisconsin.
2 Includes Puerto Rico and the Virgin Islands.
3 Includes Alaska, American Samoa, Guam, Hawaii, and the Panama Canal Zone.
Back figures— See the Annual R eport for 1946, pp. 118-119, and earlier reports.
273,506
AND
Possession
Alaska....................
American Samoa.
Guam.....................
Hawaii...................
Panama Canal
Zone...................
Puerto Rico.........
Virgin Islands.. . .
42,703
62
158
BANKS
1,597,977
1,646,706
687,942
1,979,042
7,237,134
Kentucky.............
Louisiana..............
Maine....................
Maryland.............
Massachusetts. . .
11
OPERATING
9,422
37,519
26,300
111,389
174,456
47
867
473
602
452
DEPOSITS
436,119
11,814,268
2,984,864
2,289,662
1,433,774
48
883
488
664
610
OFFICES,
445,541
11,851,787
3,011,164
2,401,051
1,608,230
48
883
492
664
610
N U M BER ,
445,541
11,851,787
3,053,867
2,401,051
1,608,230
Idaho.....................
Illinois...................
Indiana..................
Iowa.......................
Kansas...................
O
CO
A
ssets
and
L ia b il it ie s
of
O p e r a t in g B a n k s
Table 104. Summary of assets and liabilities of operating banks in the United States and
possessions, June 30, 1947
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, 1947
Banks grouped according to insurance status and type of bank
Table 106. Assets and liabilities of operating insured commercial banks, December 31, 1947,
June 30, 1947, and December 31, 1946
Table 107. Assets and liabilities of all operating banks, call dates, 1942-1947
Table 108. Assets and liabilities of operating insured banks, call dates, 1942-1947
Table 109. Assets and liabilities of operating commercial banks, call dates, 1942-1947
Table 110. Assets and liabilities of operating insured commercial banks, call dates, 1942-1947
Table 111. Assets and liabilities of all operating banks in the United States and possessions,
December 31, 1947
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 and premium allowances.
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
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
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.
Sources of data:
OF
Instalment loans are ordinarily reported net if the instalment pay
ments are applied directly to the reduction of the loan. Such loans are
reported gross if, under contract, the payments do not immediately
reduce the unpaid balances of the loan but are assigned or pledged to
assure repayment at maturity.
On December 31, 1947, asset and liability “not classified” items for
noninsured banks have been allocated according to the distribution
of asset and liability data for all insured State banks not members
of the Federal Reserve System.
LIABILITIES
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.
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” .
Beginning with June 30, 1947 the number of noninsured banks has
been revised slightly in accordance with a uniform all-bank series
agreed upon by the three Federal bank supervisory agencies. The
new series is more complete in coverage but the amounts involved are
very small and do not significantly affect comparability with previous
years. The most important revisions are the inclusion of data for the
noninsured trust companies not accepting deposits and banks in
American Samoa, Guam, and Panama Canal Zone. The 8 New
Hampshire guaranty savings banks, which were formerly classified as
mutual savings banks, are now included with commercial banks.
ASSETS
Assets and liabilities held in or administered by a savings, bond,
insurance, real estate, foreign, or any other department of a bank,
except a trust department, are consolidated with the respective assets
and liabilities of'the commercial department. “ Deposits of individuals,
partnerships, and corporations” include trust funds deposited by a trust
department in a commercial or savings department. Other assets held
in trust are not included in statements of assets and liabilities.
Data for noninsured trust companies not accepting deposits are
excluded prior to June 30, 1947. Data for some noninsured commercial
banks are omitted because of unavailability of reports. On June 30 and
December 31, 1947, 12 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.
Table 104.
Sum mary
of
A
ssets
and
banks
L ia b il it ie s
grouped
of
O p e r a t in g B a n k s
a c c o r d in g t o in s u r a n c e
in
the
U n it e d St a t e s
statu s an d t y p e
and
P o s s e s s io n s , J u n e
30, 1947
of ban k
(Amounts in thousands of dollars)
Commercial and stock savings banks and
nondeposit trust companies
Asset, liability, or capital account item
N ot classified
...................................................
Insured1
Banks
of
deposit
Nondeposit
trust
companies2
Total
Insured
Non
insured
6,193,046
3,309,719
203,817
19,361,709
13,168,663
33,716,747
32,877,442
32,199,046
625,067
53,329
839,305
658,268
181,037
93,200,729
83,116,152
5,040,490
4,527,658
503,162
13,267
79,547,372
70,975,825
4,975,966
3,232,226
350,088
13,267
77,454,065
69,154,906
4,827,879
3,169,582
301,698
1,980,093
1,733,805
143,576
59,419
34,377
8,916
113,214
87,114
4,511
3,225
14,013
4,351
13,653,357
12,140,327
64,524
1,295,432
153,074
9,004,717
8,215,845
44,658
730,788
13,426
4,648,640
3,924,482
19,866
564,644
139,648
38,578,709
33,892,907
33,258,041
614,468
20,398
4,685,802
3,369,961
1,315,841
183,245
92,659
14,091
76,495
135,717
70,249
10,023
55,445
47,528
22,410
4,068
21,050
167,248,399 147,886,690 144,373,154
90,091
18,871
5,391
65,829
16,876
8,820
1,509
6,547
T otal liabilities and capital a c c o u n ts ................................................. 167,248,399 147,886,690 144,373,154
3,309,719
203,817
19,361,709
13,168,663
6,193,046
154,191,122 136,749,156 133,695,764
79,551,190 79,540,061 78,090,841
51,774,932 34,351,250 33,623,136
7,268,364
7,517,876
7,519,756
1,355,089
1,420,526
1,422,708
4,881
4,881
4,881
11,690,112 11,689,472 11,242,608
2,110,845
2,146,623
2,149,076
78,467
78,467
2,980,034
1,377,424
728,068
248,053
65,380
73.358
71,796
46
1,459
57
17,441,966
11,129
17,423,682
1,880
2,182
11,900,985
9,304
11,885,521
1,650
1,574
5,540,981
1,825
5,538,161
230
608
640
2,453
606
2,330
34
123
28,300
Individuals, partnerships, and corporations— demand...................
Individuals, partnerships, and corporations— time.........................
States and political subdivisions.........................................................
Certified and officers’ checks, cash letters of credit, etc. .*..............
1,752,214
1,034,358
104,106
613,750
1,568,969
941,699
90,015
537,255
446,864
35,778
78,467
28,310
M iscellaneous liabilities— t o ta l.........................................................
Rediscounts and other borrowed money...........................................
1,287,045
63,339
1,223,706
1,208,940
63,255
1,145,685
1,117,329
59,543
1,057,786
53,478
2,749
50,729
38,133
963
37,170
78,105
84
78,021
49,795
74
49,721
11,770,232
3,319,580
5,563,885
2,886,767
9,928,594
3,315,085
4,314,917
2,298,592
9,560,061
3,171,036
4,182,796
2,206,229
276,207
106,508
101,310
68,389
92,326
37,541
30,811
23,974
1,841,638
4,495
1,248,968
588,175
1,217,883
4,495
907,332
306,056
623,755
Capital stock, notes, and debentures.................................................
14,755
14,222
13,391
761
70
533
191
342
Undivided profits, including all other capital accounts..................
10
341,636
282,119
1 Includes 7 trust companies not engaged in deposit banking having total capital accounts of $15,667,000 and total assets of $16,429,000.
,.
,
2 Amounts shown as deposits are uninvested trust funds and special accounts. Uninvested trust funds are classified as demand deposits of individuals, partnersmps, ana cor-
3 Not available separately for noninsured commercial banks; included with U. S. Government deposits.
http://fraser.stlouisfed.org/
Back figures—See the Annual Report for 1946, pp. 122-123, and earlier reports.
Federal Reserve Bank of St. Louis
C O R P O R A T IO N
1,462,002
914,008
83,115
464,879
Bank premises owned, furniture and fixtures...................................
Other real estate—direct and indirect...............................................
INSURANCE
Loans, discounts, and overdrafts (in clu din g red iscou n ts). . . .
Total
DEPOSIT
U. S. Government obligations, direct and guaranteed...................
Obligations of States and political subdivisions...............................
NoninLsured
FEDERAL
Cash and balances with other b a n k s..............................................
All
banks
Mutual savings banks
Table 105.
S u m m a r y o f A s s e t s a n d L i a b i l i t i e s o f O p e r a t i n g B a n k s i n t h e U n i t e d S t a t e s a n d P o s s e s s i o n s , D e c e m b e r 31, 1947
B A N K S G ROUPED ACCORDING TO IN SU R A N C E STATU S AN D T Y P E OF B A N K
(A m ou n ts in thousand s o f dollars)
Commercial and stock savings banks and
nondeposit trust companies
Asset, liability, or capital account item
Mutual savings banks
Nonirlsured
All
banks
Total
Insured1
Nondeposit
trust
companies2
Total
Insuij^d
Non
insured
3,316,654
203,226
19,713,945
13,498,677
Cash and balances with other banks.............................................
38,559,197
37,672,917
36,936,014
677,376
59,527
886,280
675,028
211,252
Securities— total...................................................................................
U. S. Government obligations, direct and guaranteed...................
Obligations of States and political subdivisions...............................
Other bonds, notes, and debentures..................................................
Corporate stocks..................................................................................
92,383,673
81,623,382
5,361,993
4,897,998
500,300
78,687,467
69,644,962
5,297,177
3,391,422
353,906
76,712,307
67,959,691
5,130,927
3,319,506
302,183
1,871,697
1,613,053
157,689
66,433
34,522
103,463
72,218
8,561
5,483
17,201
13,696,206
11,978,420
64,816
1,506,576
146,394
9,123,361
8,165,130
45,288
898,759
14,184
4,572,845
3,813,290
19,528
607,817
132,210
Loans, discounts, and overdrafts (including rediscounts). . . .
43,228,562
38,284,154
37,591,988
670,198
21,968
4,944,408
3,559,970
1,384,438
Miscellaneous assets—total...............................................................
Bank premises owned, furniture and fixtures...................................
Other real estate— direct and indirect..............................................
All other miscellaneous assets............................................................
1,835,479
1,059,571
101,236
674,672
1,648,428
966,687
87,021
594,720
1,532,777
936,444
80,041
516,292
97,383
18,694
5,783
72,906
18,268
11,549
1,197
5,522
187,051
92,884
14,215
79,952
140,318
70,770
10,983
58,565
46,733
22,114
3,232
21,387
Total liabilities and capital accounts................................................ 176,006,911 156,292,966 152,773,086
3,316,654
203,226
19,713,945
13,498,677
6,215,268
Deposits—total...................................................................................... 162,712,856 144,950,050 141,888,666
Individuals, partnerships, and corporations—demand................... 85,301,818 85,290,593 83,737,730
Individuals, partnerships, and corporations— time......................... 52,437,998 34,694,444 33,963,323
States and political subdivisions........................................................
7,787,973
7,785,721
7,521,129
United States Government.................................................................
1,533,524
1,530,740
1,432,595
• Postal savings.......................................................................................
5,576
5,576
4,994
Interbank.............................................................................................. 13,044,914 13,044,289 12,669,637
Certified and officers’ checks, cash letters of credit, etc.................
2,601,053
2,598,687
2,559,258
2,980,229
1,473,351
731,077
263,021
98,120
582
374,652
39,426
81,155
79,512
44
1,571
25
17,762,806
11,225
17,743,554
2,252
2,784
12,206,953
9,358
12,190,838
1,737
2,156
5,555,853
1,867
5,552,716
515
628
3
625
2,366
615
2,249
10
117
ASSETS
Total assets................................................................................................ 176,006,911 156,292,966 152,773,086
Banks
of
deposit
6,215,268
29,639
1,319
28,320
62,054
163
61,891
39,528
113
39,415
22,526
50
22,476
Capital accounts— total......................................................................
Capital stock, notes, and debentures................................................
Surplus..................................................................................................
Undivided profits, including all other capital accounts...................
11,996,026
3,341,740
5,734,446
2,919,840
10,106,941
3,336,787
4,450,158
2,319,996
9,735,803
3,193,918
4,316,404
2,225,481
278,706
105,332
103,065
70,309
92,432
37,537
30,689
24,206
1,889,085
4,953
1,284,288
599,844
1,252,196
4,953
939,147
308,096
345,141’
291,748
BANKS
57,719
11,787
45,932
OPERATING
1,148,617
61,345
1,087,272
OF
1,235,975
74,451
1,161,524
LIABILITIES
1,298,029
74,614
1,223,415
AND
Miscellaneous liabilities— total........................................................
Rediscounts and other borrowed m oney..........................................
All other miscellaneous liabilities.......................................................
636,889
Number of banks included.......................................................................
14,755
14,222
13,403
751
68
533
194
339
1 Includes 7 trust companies not engaged in deposit banking having total capital accounts of $15,909,000 and total assets of $16,766,000.
2 Amounts shown as deposits are uninvested trust funds and special accounts. Uninvested trust funds are classified as demand deposits of individuals, partnerships, and cor
porations.
Back figures— See the Annual R eport for 1946, pp. 122-123, and earlier reports.
w
Table 106.
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
an ks,
D
ecem ber
31, 1947,
J u n e 30, 1947, a n d D e c e m b e r 31, 1946
(Amounts in thousands of dollars)
ASSETS
Dec. 31,
1947
16,013,442
8,453,306
51,042
34,885
5,814,224
9,428,590
60,399
56,777
6,130,396
69,154,906
73,574,908
835,769
9,444,067
5,342,364
1,147,386
14,530,670
27,673,640
7,101,231
3,066,101
13,678
6,781,379
1,180,326
12,727,955 Interbank deposits— to ta l..................................
Banks in the United States— demand...............
29,700,350
Banks in the United States— time.....................
6,597,224
3,007,790
Banks in foreign countries— demand................
15,027
Banks in foreign countries— time.......................
8,752,616
5,130,927
3,319,506
8,299,159
4,827,879
3,169,582
195,359
106,824
191,900
109,798
76,712,307
Loans, discounts, and overdrafts (including
rediscounts)— total................................. 37,591,988
Commercial and industrial loans (including
open market paper).................................... 18,014,990
Loans to farmers directly guaranteed by the
Commodity Credit Corporation...............
65,294
Other loans to farmers (excluding loans on real
1,544,394
estate).................................................
for FRASER
Digitized
16,039,194
June 30,
1947
Dec. 31,
1946
Deposits of individuals, partnerships, and
corporations—total................................ 117,701,053 111,713,977 112,663,700
Demand............................................................ . 83,737,730 78,090,841 79,902,589
Tim e.................................................................... 33,963,323 33,623,136 32,761,111
Certified and officers’ checks, cash letters of
credit and travelers’ checks outstand
ing, and am ounts due to Federal
Reserve banks..............................................
2,559,258
2,110,845
2,360,828
Government deposits— to ta l..............................
United States Government— demand...............
United States Government— time.....................
Postal savings.........................................................
1,271,662
States and political subdivisions— demand___
12,293,195
States and political subdivisions— time............
8,958,718
1,327,075
105,520
4,994
6,695,228
825,901
8,628,334
1,249,411
105,678
4,881
6,496,970
771,394
9,684,656
2,932,322
114,327
5,023
5,968,462
664,522
12,669,637
11,236,131
43,225
1,379,176
11,105
11,242,608
9,806,903
42,662
1,371,889
21,154
12,320,105
10,888,080
49,199
1,364,022
18,804
7,893,469
4,300,705
3,295,002
T otal deposits................................................... 141,888,666 133,695,764 137,029,289
Demand........................................................ 106,93U,598
Time............................................................ 8U,951t,068
186,796
110,966 Miscellaneous liabilities— to ta l........................
77,454,065
81,468,377
33,258,041
30,739,973
14,768,345
14,018,991
20,296
102,139
1,528,460
1,255,805
Bills payable, rediscounts, and other liabilities
for borrowed money......................................
Acceptances outstanding......................................
Dividends declared but not yet payable..........
Income collected but not earned........................
Expenses accrued and unpaid.............................
Other liabilities.......................................................
99,126,859 103,Ul 6,303
34,568,905 33,612,986
1,148,617
1,117,329
1,047,214
61,345
166,556
60,315
151,851
332,864
375,686
59$43
99,892
53,358
124,721
374,727
405,088
38,888
133,458
57,497
101,261
381,709
334,401
Total liabilities
(excluding capital
accounts)....................................................... 143,037,283 134,813,093 138,076,503
C O R PO R AT IO N
Total securities...............................
33,704,314
2,014,710
Dec. 31,
1947
INSURANCE
Other securities—total......................................
Obligations of States and political subdivisions
Other bonds, notes, and debentures2. .. .
Corporate stocks:
Federal Reserve banks.........................
Other corporate stocks.........................
32,199,046
1,806,395
LIABILITIES AND CAPITAL
DEPOSIT
Obligations of the U. S. Government, direct
and guaranteed—total........................... 67,959,691
Direct:
Treasury bills..................................................
2,124,097
Treasury certificates of indebtedness...........
7,554,745
Treasury notes................................................
5,920,095
United States non-marketable bonds1..........
1,615,577
Other bonds maturing in 5 years or less.. .. 18,341,409
Other bonds maturing in 5 to 10 years....... 22,202,066
7,533,985
Bonds maturing in 10 to 20 years................
Bonds maturing after 20 years.....................
2,654,213
Guaranteed obligations (FHA debentures). . . .
13,504
Dec. 31,
1946
FEDERAL
Cash, balances with other banks, and cash
items in process of collection— total
36,936,014
Currency and coin..........................................
2,147,943
Reserve with Federal Reserve banks (member
banks).................................................
17,795,563
Demand balances with banks in the United
States (except private banks and Ameri
9,689,645
can branches of foreign banks).................
Other balances with banks in the United States
52,359
Balances with banks in foreign countries
25,778
Cash items in process of collection.........
7,224,726
June 30,
1947
Loans to brokers and dealers in securities. . . .
Other loans for the purpose of purchasing or
carrying securities.......................................
Real estate loans:
On farm land...................................................
1,278,435
793,539
6,815,984
1,661,126
765,411
5,923,583
1,515,352
966,060
550,861
557,829
943,617
2,636,901
113,941
914,343
774,975
426,581
406,889
839,705
2,445,748
101,052
945,716
9,288,040
1,517,318 Capital accounts—total....................................
9,735,803
9,560,061
Capital stock, notes, and debentures..............
3,193,918
3,171,036
3,141,878
Surplus
4,182,796
4,060,047
4,316,404
1,495,456
Undivided profits...............................................
1,644,081
1,650,231
683,569
Reserves
562,148
590,659
575,250
5,057,538
1,365,361
Total liabilities and capital accounts. . 152,773,086 144,373,154 147,364,543
514,029
328,229
311,309
674,938
2,202,897
M EMORANDA
81,068
1,017,447 Pledged assets and securities loaned............ 11,648,069 11,653,224 13,664,608
1,609,335
143,230
239,372
21,953
111,737
464,879
87,202
237,673
22,232
117,772
464,654
118,339
230,023
19,501
96,791
Number of banks3..................................................
13,403
13,391
158,208
170,119
191,752
24.2%
22.3%
22.9%
44.5
5.7
24.6
1.0
6.4
47.9
5.8
23.0
1.0
6.6
49.9
5.3
20.9
1.0
6.3
13,403
13,391
13,359
PERCENTAGES
Percentages of total assets:
Cash and balances with other banks...............
U. S. Government obligations, direct and
guaranteed...................................................
Other securities
TiAflnc or>H Hicpnnnta
Other assets........................................................
Total capital accounts.......................................’
13,359 Number of banks3
BANKS
Total assets............................................... 152,773,086 144,373,154 147,364,543
3,143,231
2,995,594
35,368
112,269
OPERATING
516,292
3,172,261
3,047,381
31,781
93,099
OF
Miscellaneous assets— total.............................
Customers’ liability on acceptances out
standing .......................................................
Income accrued but not collected....................
Prepaid expenses................................................
Other assets.........................................................
3,195,041
3,078,933
29,542
86,566
LIABILITIES
Loans and securities— total................. 114,304,295 110,712,106 112,208,350 Capital stock, notes, and debentures:
Pqt* nr faro vq111o__tnfQ 1
Common stock................................................
Bank premises, furniture and fixtures, and
Capital notes and debentures.......................
other real estate— total.........................
1,016,485
997,123
987,225
Preferred stock...............................................
Bank premises
830,595
823,201
824,029
Furniture and fixtures.......................................
105,849
90,807
78,428
Real estate owned other than bank premises. .
17,801
17,922
Retireable value of preferred stock..................
20,326
Investments and other assets indirectly repre
senting bank premises or other real estate
62,240
65,193
64,442
AND
Other retail instalment paper.......................
Repair and modernization instalment loans.
Instalment cash loans....................................
Single-payment loans.....................................
Loans to banks...................................................
All other loans (including overdrafts).............
1,517,493
ASSETS
On other properties........................................
Other loans to individuals:
823,310
1,189,799
1 Includes United States savings bonds, Treasury bonds (investment series A-1965), and depositary bonds. Prior to December 31, 1947, this item included United States
savings bonds only; depositary bonds were included with other United States bonds according to maturity.
2 Includes obligations of United States Government corporations and agencies not guaranteed by the United States Government.
3 Includes the following trust companies not engaged in deposit banking: 7 as of December 31, and June 30, 1947; and 8 as of December 31, 1946.
Back figures—See the Annual Report for 1946, pp. 124-125, and earlier reports.
Ox
Table 107.
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 , C a l l D
ates,
1942-1947
(Amounts in millions of dollars)
1947
1946
1945
1944
1943
1942
Asset, liability, or capital account item
June 30 Dec. 31 June 30
Cash, balances with other hanks, and cash items
Dec. 30
June 30
Dec. 31 June 29
162,845
178,203
92,082
109,306
116,983
127,794
139,227
152,618
25,667
28,810
26,772
28,570
28,279
30,910
30,846
Dec. 31 June 30
Dec. 31
176,007
169,256
167,248
35,585
33,209
35,185
33,717
38,559
110,417
101,822
4,064
4,028
493
10
105,602
96,403
4,175
4,519
493
12
96,549
87,032
4,471
4,560
477
9
93,200
83,116
5,040
4,528
503
13
92,383
81,623
5,362
4,898
500
65,828
57,913
3,748
3,540
569
58
73,600
66,155
3,553
3,339
513
40
83,569
76,017
3,629
3,394
500
29
93,844
86,281
3,627
3,402
509
25
Loans, discounts, and overdrafts (inc. rediscounts)
25,133
23,961
22,294
23,652
25,487
26,080
28,086
30,473
31,628
35,810
38,579
43,229
Miscellaneous assets—total............................................
Bank premises owned, furniture and fixtures................
Other real estate—direct and indirect .........................
All other miscellaneous assets.........................................
2,304
1,192
707
405
2 ,2 1 2
1,179
620
413
2,089
1,153
533
403
1,972
1,113
421
438
1,892
1,093
331
468
1,784
1,058
242
484
1,731
1,037
183
511
1,728
1,016
144
568
1,728
1,011
117
600
1,712
1,013
105
594
1,752
1,034
104
614
1,836
1,060
101
675
Total liabilities and capital accounts.............................
92,082
109,306
116,983
127,794
139,227
152,618
162,845
178,203
172,167
169,256
167,248
176,007
166,474
73,876
45,285
5,786
24,770
5
14,072
2,615
65
159,990
76,693
48,423
6,619
13,515
5
12,320
2,353
62
156,753
81,276
50,284
6,895
3,164
5
12,667
2,396
66
154,191
79,551
51,775
7,520
1,423
5
11,690
2,149
78
162,713
85,302
52,438
7,788
1,534
5
13,045
2,601
1,203
225
978
1,125
88
1,037
1,158
45
1,113
1,287
63
1,224
1,298
75
1,223
Other bonds, notes, and debentures...............................
Corporate stocks...............................................................
82,987
100,153
107,622
118,100
129,128
142,077
151,859
82,987
100,153
107,622
118,100
129,128
142,077
151,859
Miscellaneous liabilities— total.....................................
Rediscounts and other borrowed m oney........................
Ail other miscellaneous liabilities....................................
665
15
650
639
13
626
657
28
629
733
49
684
824
87
737
926
124
802
913
70
843
Capital accounts— total...................................................
Capital stock notes, and debentures.............................
8,430
2,966
3,882
1,582
8,514
2,960
3,921
1,633
8,704
2,954
3,859
1,891
8,961
2,985
4,131
1,845
9,275
2,996
4,204
2,075
9,615
3,014
4,470
2,131
10,073 v
3,078
4,643
2,352
10,526
3,135
4,974
2,417
11,052
3,175
5,184
2,693
11,345
3,248
5,373
2,724
11,770
3,319
5,564
2,887
11,996
3,342
5,734
2,920
14,827
14,731
14,666
14,632
14,608
14,597
14,601
14,621
14,633
14,655
14,755
14,755
Deposits— total .................................................................
Individuals, partnerships, and corporations— demand.
Individuals, partnerships, and corporations—tim e. . . .
States and political subdivisions.....................................
United States Government..............................................
Postal savings1
• ...........................................
Certified and officers' checks, cash letters of credit, etc.
Not classified
....................................... ..
Undivided profits, including all other capital accounts..
Number of banks included
.................................................
i Not available separately for noninsured banks from December 31, 1945, through June 30, 1947; included with U. S. Government deposits.
COR PO R ATIO N
54,323
46,036
3,821
3,406
498
562
U .S . Government obligations, direct and guaranteed..
INSURANCE
38,978
30,340
3,862
3,951
534
291
102,182
94,169
3,877
3,637
487
12
DEPOSIT
172,167
FEDERAL
Total assets.............................................................................
Dec. 31 June 30
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 B a n k s , C a l l D
ates,
1942-1947
(Amounts in millions of dollars)
1942
1946
1945
1944
1943
1947
Asset, liability, or capital account item
T ota l assets.............................................................................
80,765
97,713
105,414
Dec. 30
June 30
Dec. 31
June 29
Dec. 31 June 30 Dec. 31
120,610
131,766
144,440
154,114
169,006
162,881
160,002
157,542
166,272
27,750
27,571
30,145
30,081
34,732
32,403
34,316
32,857
37,611
Corporate stocks...............................................................
59,581
52,806
3,524
2,859
392
69,130
62,537
3,429
2,794
370
78,606
71,856
3,513
2,880
357
88,166
81,405
3,520
2,879
362
95,975
88,790
3,761
3,085
339
103,832
96,093
3,944
3,462
333
98,964
90,660
4,049
3,927
328
90,110
81,521
4,347
3,931
311
86,459
77,371
4,873
3,900
315
85,836
76,125
5,176
4,218
317
Loans, discounts, and overdrafts (inc. rediscounts)
20,615
19,647
18,405
21,917
23,843
24,465
26,468
28,850
29,928
33,990
36,628
41,152
M iscellaneous assets— t o t a l ...........................................
Bank premises owned, furniture and fixtures...............
Other real estate— direct and indirect...........................
All other miscellaneous assets.........................................
1,790
1,085
417
288
1,732
1,075
378
279
1,720
1,055
339
326
1,813
1,071
361
381
1,746
1,050
292
404
1,664
1,016
214
434
1,590
993
162
435
1,592
974
126
492
1,586
970
106
510
1,586
972
96
518
1,598
984
93
521
1,673
1,007
91
575
T ota l liabilities and capital a c c o u n ts .............................
166,272
97,713
105,414
120,610
131,766
144,440
154,114
169,006
162,881
160,002
157,542
89.869
97.321
111.650
122.415
134.662
143.953
89.869
97.321
111.650
122.415
134.662
143.953
158,174
72,613
39,644
5,597
23,844
5
13,884
2,587
151,628
75,414
42,468
6,363
13,047
5
12,008
2,323
148,458
79,911
44,174
6,635
3,049
5
12,321
2,363
145,597 154,096
78,100
83,747
45,509
46,154
7,270
7,523
1,357
1,435
5
5
11,243
12,670
2,113
2,562
M iscellaneous liabilities— t o ta l.....................................
Rediscounts and other borrowed m oney.......................
All other miscellaneous liabilities...................................
603
11
592
587
10
577
606
24
582
698
45
653
782
84
698
896
122
774
863
65
798
1,125
216
909
1,062
84
978
1,083
39
1,044
1,167
60
1,107
1,188
61
1,127
Capital accou n ts— t o ta l...................................................
Capital stock, notes, and debentures.............................
Surplus...............................................................................
Undivided profits, including all other capital accounts..
7,135
2,865
2,885
1,385
7,257
2,855
2,957
1,445
7,487
2,847
3,095
1,545
8,262
2,880
3,722
1,660
8,569
2,899
3,856
1,814
8,882
2,917
4,102
1,863
9,298
2,983
4,262
2,053
9,707
3,037
4,576
2,094
10,191
3,075
4,769
2,347
10,461
3,147
4,940
2,374
10,778
3,176
5,090
2,512
10,988
3,199
5,255
2,534
Number of banks included......................................................
13,456
13,403
13,363
13,458
13,461
13,460
13,474
13,494
13,526
13,550
13,582
13,597
BANKS
80,765
73,027
Deposits— t o t a l ..................................................................
Individuals, partnerships, and corporations—demand
Individuals, partnerships, and corporations—time. . . .
States and political subdivisions.....................................
United States Government............................................. •73,027
Postal savings....................................................................
Interbank...........................................................................
Certified and officers’ checks, cash letters of credit, etc.
OPERATING
25,708
48,611
41,573
3,629
2,986
423
OF
27,723
33,835
26,623
3,606
3,171
435
LIABILITIES
24,525
Securities— t o ta l................................................................
U. S. Government obligations, direct and guaranteed
AND
Cash, balances w ith other banks, and cash item s
Dec. 31 June 30
ASSETS
June 30 Dec. 31 June 30
Table 109.
A
ssets
and
L ia b il it ie s
op
O p e r a t in g C o m m e r c ia l B
an ks,
C all D
ates,
1942-1947
(Amounts in millions of dollars)
1947
1946
1945
1944
1943
1942
Asset, liability, or capital account item
June 30
97,369
104,555
Dec. 31 June 30 Dec. 30 June 30
Dec. 31 June 29
Dec. 31
June 30
Dec. 31
114,734
125,386
137,830
146,894
161,182
154,113
150,552
147,887
156,293
27,766
27,736
30,327
30,262
34,975
32,462
34,366
32,878
37,673
U. S. Government obligations, direct and guaranteed
Obligations of States and political subdivisions............
Other bonds, notes, and debentures...............................
66,204
60,058
3,344
2,381
381
40
75,010
68,716
3,464
2,433
369
28
84,284
77,953
3,500
2,432
374
25
91,355
84,581
3,776
2,635
352
11
98,489
91,149
3,974
3,004
352
10
92,834
84,965
4,083
3,427
347
12
83,371
75,253
4,411
3,369
329
9
79,547
70,976
4,976
3,232
350
13
78,687
69,645
5,297
3,391
354
Loans, discounts, and overdrafts (inc. rediscounts)
20,304
19,249
17,705
19,171
21,071
21,708
23,777
26,193
27,271
31,283
33,893
38,284
Bank premises owned, furniture and fixtures................
Other real estate— direct and indirect............................
All other miscellaneous assets.........................................
1,737
1,076
348
313
1,681
1,066
311
304
1,639
1,041
267
331
1,593
1,011
215
367
1,569
988
180
401
1,511
956
145
410
1,500
937
122
441
1,525
921
107
497
1,546
918
98
530
1,532
921
91
520
1,569
942
90
537
1,649
967
87
595
Total liabilities and capital accounts.............................
80,395
97,369
104,555
114,734
125,386
137,830
146,894
161,182
154,113
150,552
147,887
156,293
72,589
39,836
15,150
4,437
1,867
22
10,278
776
223
89,479
47,840
16,007
4,491
8,454
13
11,309
1,229
136
96,476
54,180
17,227
4,783
8,070
9
10,887
1,142
178
106,350
59,203
18,923
4,848
10,426
7
11,000
1,679
264
116,655 128,702 137,434
58,215
65,132
66,628
23,815
26,922
20,933
4,933
5,061
5,400
20,829
24,542
19,585
5
5
6
12,597
12,229
11,201
1,367
1,263
1,561
264
77
221
151,089
73,867
29,917
5,784
24,767
5
14,071
2,613
65
143,709
76,682
32,161
6,617
13,512
5
12,320
2,349
63
139,883
81,265
33,432
6,893
3,161
5
12,666
2,395
66
136,749
79,540
34,351
7,518
1,420
5
11,690
2,147
78
144,950
85,291
34,694
7,786
1,531
5
13,044
2,599
Miscellaneous liabilities— total.....................................
Rediscounts and other borrowed m oney........................
623
15
608
604
13
591
617
28
589
697
49
648
778
86
692
891
124
767
865
69
796
1,160
219
941
1,067
87
980
1,108
45
1,063
1,209
63
1,146
1,236
74
1,162
Capital accounts— total...................................................
Capital stock, notes, and debentures.............................
7,183
2,959
2,827
1,397
7,286
2,954
2,885
1,447
7,462
2,948
2,969
1,545
7,687
2,980
3,172
1,535
7,953
2,991
3,272
1,690
8,237
3,009
3,486
1,742
8,595
3,073
3,615
1,907
8,933
3,130
3,873
1,930
9,337
3,170
4,025
2,142
9,561
3,243
4,155
2,163
9,929
3,315
4,315
2,299
10,107
3,337
4,450
2,320
14,280
14,185
14,121
14,087
14,064
14,054
14,059
14,079
14,092
14,114
14,222
14,222
Individuals, partnerships, and corporations— demand
Individuals, partnerships, and corporations— time. . . .
States and political subdivisions.....................................
United States Government..............................................
Postal savings1...................................................................
Certified and officers’ checks, cash letters of credit, etc.
ploQQifiPn
............................
Undivided profits, including all other capital accounts..
i Not available separately for noninsured banks from June 30, 1942, through June 30, 1947; included with U. S. Government deposits.
CO R PO R ATIO N
26,050
59,161
52,628
3,509
2,561
405
58
INSURANCE
28,140
48,299
41,484
3,583
2,723
442
67
DEPOSIT
24,914
33,440
26,458
3,557
2,937
456
32
FEDERAL
80,395
Cash, balances with other banks, and cash items
Dec. 31 June 30
Table 110.
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
an ks,
C all D
ates,
1942-1947
(Amounts in millions of dollars)
1943
1944
1946
1947
Asset, liability, or capital account item
June 30 Dec. 31
Total liabilities and capital accou n ts...............................
78,709
Deposits— to ta l........................................................................
Individuals, partnerships, and corporations— demand
Individuals, partnerships, and corporations— time. . . .
States and political subdivisions........................................
United States Government..................................................
Postal savings..........................................................................
Interbank.................................................................................
Certified and officers’ checks, cash letters of credit, etc.
Miscellaneous liabilities— to ta l........................................
Rediscounts and other borrowed money.........................
All other miscellaneous liabilities......................................
Capital accounts— to ta l.......................................................
Capital stock, notes, and debentures...............................
Surplus......................................................................................
Undivided profits, including all other capital accounts..
Number of banks included.
152,773
27,191
27,190
29,746
29,659
34,303
31,853
33,704
32,199
36,936
64,678
73,228
82,053
58,693
3,288
2,342
355
67,104
3,394
2,388
342
89,001
75,896
3,424
2,386
347
82,422
3,686
2,567
326
96,066
90,642
81,469
77,454
76,712
40,712
3,533
2,680
419
51,542
3,441
2,520
387
19,923
18,907
17,392
18,844
20,732
21,355
23,379
1,678
1,615
1,585
1,022
1,533
1,497
1,459
1,417
71,162
39,266
14,889
4,337
1,806
257
306
994
207
332
972
172
353
95,459
102,405
112,246
122,647
134,613
87,820
94,582
125,752
10,076
766
47,128
15,706
4,394
8,215
13
11,145
1,219
594
11
583
10
22
573
6,953
104,116
114,180
53,423
16,897
4,675
7,765
9
10,681
1,132
58,346
18,572
4,749
10,068
7
10,705
1,669
57,364
20,544
4,812
18,865
594
676
757
45
631
84
673
25
569
6
11,038
1,551
940
139
380
64,149
23,363
4,944
19,862
5
12,074
1,355
871
121
750
919
115
88,933
3,875
2,938
320
82,998
3,975
3,354
315
73,575
4,301
3,295
298
25,769
26,796
30,740
33,258
37,592
1,444
1,452
1,452
1,462
1,533
903
441
143,456
157,582
150,743
147,365
144,373
152,773
134,282
147,811
140,649
137,030
133,696
141,889
65,508
26,363
5,182
23,583
5
12,401
1,240
833
65
768
72,606
29,295
5,595
23,841
5
13,884
2,585
75,405
31,505
6,361
13,046
5
12,007
2,320
79,903
32,761
6,633
3.047
5
12,320
2,361
1,099
1,025
1.047
215
884
83
942
39
1,008
t
8,672
9.069
7,056
7,229
7,710
7,990
2,841
2,887
1,501
2,875
3,090
1,489
2,895
3,190
1,625
2,912
3,402
1,676
2,978
3,529
1,834
3,032
3,785
1,855
13,403
13,347
13,302
13,274
13,269
13,268
13,282
13,302
8,341
914
83
465
67,960
5,131
3,319
302
900
92
460
2,849
2,801
1,406
7,454
902
85
465
69,155
4,828
3,169
302
100
2,859
2,741
1,353
Back figures— See the following Annual Reports: 1946, p. 128; 1945, p . 116.
144,373
L IA B IL IT IE S
1,048
301
266
147,365
57,890
47,344
1,060
340
278
150,743
25,538
27,593
32,726
Miscellaneous assets— to ta l...............................................
Bank premises owned, furniture and fixtures.................
Other real estate— direct and indirect..............................
All other miscellaneous assets.............................................
157,582
134,613
24,382
Loans, discounts, and overdrafts (inc. rediscounts)
143,456
122,647
102,405
25,936
3,494
2,865
431
Dec. 31 June 30 Dec. 31
112,246
95,459
Securities— to ta l......................................................................
U. S. Government obligations, direct and guaranteed
Obligations of States and political subdivisions............
Other bonds, notes, and debentures.................................
Corporate stocks....................................................................
Dec. 31 June 29
AND
78,709
Cash, balances with other banks, and cash item s
in process of collection................................................
Dec. 30 June 30
ASSETS
T otal assets....................................................................................
June 30 Dec. 31 June 30
78,091
33,623
7,268
1,355
5
11,243
937
80
516
2,111
83,738
33,963
7,521
1,433
5
12,670
2,559
1,117
1,148
60
1,057
61
1,087
9,288
9,560
3.070
3,933
2,066
3,142
4,060
2,086
3,171
4,183
2,206
3,194
4,317
2,225
13,335
13,359
13,391
13,403
9,736
O
o
hj
H
$
w
3
o
to
3
H
Table 111.
A
ssets
and
L
ia b il it ie s
of
A
ll
O p e r a t in g B a n k s
banks
in
the
U n it e d St a t e s
g r o u p e d b y d is t r ic t a n d
and
P o s s e s s io n s , D
ecem ber
31, 1947
state
(Amounts in millions of dollars)
Assets
District and State
Number
of banks
Liabilities and capital accounts
Miscel
laneous
assets
Deposits
Total
Business
and
personal1
Govern
ment2
Inter
bank3
Miscel
laneous
liabilities
Total
capital
accounts
81,623
10,760
43,229
1,836
176,007
140,341
9,322
13,050
1,298
11,996
38,387
81,185
10,723
43,000
1,778
175,073
139,693
9,119
13,038
1,277
11,946
Possessions.......................
53
172
438
37
229
58
934
648
203
1.........................
24.......................
3 .........................
4 .........................
5.........................
6.........................
7.........................
8 .........................
9 .........................
10.......................
11.......................
125.....................
877
1,219
1,673
1,066
988
1,510
1,495
1,545
1,114
1,615
1,105
548
1,931
10,132
4,173
2,183
1,604
2,599
2,513
3,596
1,150
1,751
2,855
4,072
7,179
25,066
9,036
4,063
2,409
3,526
5,865
7,342
2,562
2,841
3,333
8,401
1,041
2,754
1,826
462
389
496
698
951
276
356
476
1,035
3,575
13,339
4,529
2,105
1,389
2,393
2,445
3,191
951
1,202
2,261
5,849
162
649
232
100
55
65
84
95
29
33
92
240
13,888
51,940
19,796
8,913
5,846
9,079
11,605
15,175
4,968
6,183
9,017
19,597
11,740
40,552
16,314
7,070
4,457
6,641
9,805
11,818
3,921
4,764
6,679
16,580
372
1,528
861
624
588
615
715
958
381
564
816
1,300
420
4,920
935
600
450
1,282
420
1,477
394
510
1,034
608
107
642
101
49
26
31
37
82
15
17
37
154
1,249
4,298
1,585
570
325
510
628
840
257
328
451
955
State
Alabama..............................
Arizona................................
Arkansas.............................
California............................
Colorado..............................
222
11
228
202
146
376
92
263
2,793
342
527
162
357
5,835
556
108
21
63
713
50
320
153
152
4,467
241
13
6
5
162
6
1,344
434
840
13,970
1,195
1,045
360
672
11,905
990
139
49
64
826
51
78
4
58
427
90
6
3
1
133
4
76
18
45
679
60
Connecticut........................
Delaware.............................
District of Columbia..........
Florida.................................
Georgia................................
188
41
19
185
375
436
106
289
477
512
1,606
247
506
892
669
274
88
41
102
69
667
132
243
336
565
39
6
18
19
17
3,022
579
1,097
1,826
1,832
2,624
470
962
1,385
1,389
73
42
14
209
136
41
4
48
126
189
16
3
6
6
12
268
60
67
100
106
Idaho...................................
Illinois.................................
Indiana................................
Iowa.....................................
Kansas.................................
48
883
492
662
610
103
3,031
759
565
444
252
6,063
1,658
1,279
802
10
782
167
169
106
97
2,686
629
505
338
3
83
22
12
8
465
12,645
3,235
2,530
1,698
388
9,765
2,653
2,053
1,291
51
750
273
208
229
6
1,337
128
140
88
1
79
9
3
3
19
714
172
126
87
12
21
50
FDIC District
District
District
District
District
District
District
District
District
District
District
District
District
COR POR ATIO N
38,559
14,702
INSURANCE
14,755
United States...................
DEPOSIT
United States and pos
sessions ..............................
FEDERAL
Cash and U. S. Govern
Loans, dis
Other
counts, and
due from
ment obli
securities overdrafts
gations
banks
9
20
6
26
93
1,708
1,737
762
2,147
8,030
1,326
1,237
654
1,759
6,670
107
198
25
104
217
165
212
9
116
350
7
10
4
8
70
103
80
70
160
723
Michigan...................
Minnesota.................
Mississippi................
Missouri....................
Montana...................
447
680
206
597
112
1,124
767
239
1,294
150
2,578
1,505
321
1,683
327
332
193
110
226
22
1,185
732
168
1,230
83
39
21
6
31
3
5,258
3,218
844
4,464
585
4,491
2,492
638
3,146
470
297
196
104
283
61
169
336
57
772
29
22
12
2
15
1
279
182
43
248
24
Nebraska...................
Nevada......................
New Hampshire.. ..
New Jersey...............
New Mexico.............
418
8
108
367
47
381
30
67
843
92
686
86
282
2,759
115
76
9
71
521
11
248
49
175
1,096
80
7
2
4
70
2
1,398
176
599
5,289
300
1,092
144
514
4,545
234
66
22
16
306
42
167
1
7
44
10
3
1
2
24
1
70
8
60
370
13
New York.................
North Carolina........
North Dakota..........
Ohio............................
Oklahoma.................
792
226
152
671
386
9,133
554
114
1,723
508
21,929
816
415
3,502
679
2,130
136
31
502
113
12,020
482
51
1,870
327
550
19
2
67
11
45,762
2,007
613
7,664
1,638
35,373
1,438
492
6,417
1,186
1,076
222
77
456
195
4,864
227
16
306
153
596
15
1
33
6
3,853
105
27
452
98
Oregon.......................
Pennsylvania...........
Rhode Island............
South Carolina........
South Dakota..........
71
1,002
29
150
170
342
2,450
144
212
119
686
5,534
624
322
315
107
1,324
97
46
30
319
2,659
228
143
85
20
165
16
5
3
1,474
12,132
1,109
728
552
1,248
9,897
959
596
467
109
405
32
74
47
39
629
12
22
13
7
68
12
2
1
71
1,133
94
34
24
Tennessee..................
Texas..........................
Utah...........................
Vermont....................
Virginia.....................
297
887
60
78
314
569
2,146
147
43
468
752
2,359
245
118
770
135
299
18
31
83
591
1,678
180
170
604
20
64
3
4
22
2,067
6,546
593
366
1,947
1,497
4,848
464
319
1,523
161
527
50
9
130
287
808
45
1
150
8
23
2
3
12
114
340
32
34
132
Washington..............
West Virginia...........
Wisconsin..................
Wyoming..................
125
182
556
55
535
240
630
76
990
462
1,629
118
156
44
199
11
599
231
631
48
15
10
23
1
2,295
987
3,112
254
1,947
792
2,661
205
143
80
145
23
86
37
123
12
8
6
6
1
111
72
177
13
Possession
Alaska........................
American Samoa. . .
Guam.........................
Hawaii.......................
Panama Canal Zone
Puerto Rico..............
Virgin Islands..........
19
1
1
9
4
17
2
21
1
4
93
3
49
1
28
1
25
251
2
129
2
2
15
1
1
6
27
23
67
2
31
491
33
306
4
56
1
16
398
13
161
3
5
1
13
60
20
103
1
1
1
121
1
90
1
20
15
1 Demand and time deposits of individuals, partnerships, and corporations, certified and officers’
2 Deposits of the United States Government; and deposits of States and political subdivisions.
* Interbank deposits; and postal savings deposits.
4 Includes Puerto Rico and the Virgin Islands.
6 Includes Alaska, American Samoa, Guam, Hawaii, and the Panama Canal Zone.
Back figures—See the following Annual Reports: 1946, pp. 130-131; 1945, pp. 118-119.
5
3
1
1
1
29
8
19
15
BANKS
420
350
179
402
2,156
OPERATING
72
145
65
112
503
OF
734
697
409
1,187
4,140
LIABILITIES
473
525
103
420
1,138
AND
388
160
96
175
378
ASSETS
Kentucky..................
Louisiana...................
Maine........................
Maryland..................
Massachusetts.........
ecks, cash letters of credit, etc.
to
bo
to
of
I n s u r e d C o m m e r c ia l B a n k s
Banks grouped according to amount of deposits
Banks grouped by district and State
CO R PO R ATIO N
Table 114. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1947
INSURANCE
Table 113. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1947
DEPOSIT
Table 112, Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1939-1947
FEDERAL
E x a m in e r s ’ E v a l u a t io n
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.
Adjusted capital accounts equal book value of total capital ac
counts plus the value of assets not shown on the books, less examiners’
deductions from total assets, and less liabilities not shown on the books.
The term “adjusted capital accounts” corresponds to the term “net
sound capital” used in the Annual Reports of the Corporation for the
years 1939-1943.
BANKS
Examiners’ deductions from total assets represent the difference
between the appraised value and book value of assets shown on the
books.
Book value of capital accounts refers to the net worth or equity
of the stockholders (including holders of capital notes and debentures)
shown on the books at the time of examination.
COMMERCIAL
Book value of assets is the net value, after deduction of valuation
and premium allowances, at wThich the assets are carried on the books
of the banks at the time of examination.
Evaluation of Liabilities and Capital
INSURED
Adjusted liabilities include all liabilities shown on the books and
such others as have been determined by the examiners.
OF
Evaluation of Assets
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. Appraised value of other securities and of loans and discounts
does not include assets not shown on the books which are included in
the appraised value of fixed and miscellaneous assets.
EVALUATION
Examiners’ deductions (net) from total assets in Table 114 is
the difference between examiners’ deductions and the determinable
sound values of assets not shown on the books.
EXAMINERS
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 1947, include 12,719 insured commercial banks operating
at the close of the year and 28 banks which ceased operations or were
taken over by other banks during the year. Figures for 683 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 675
because reports of examination were, for various reasons, not available
for tabulation. For 481 banks the figures are derived from reports of
examination made in the last three months of 1946.
Table 112.
E x a m i n e r s ’ A p p r a i s a l o f A s s e t s , L i a b i l i t i e s , a n d C a p i t a l o f I n s u r e d C o m m e r c ia l B a n k s E x a m in e d i n 1939-1947
(Amounts in thousands of dollars)
Asset, liability, or capital account item
1940
1941
58,254,425
65,184,983
71,697,320
38,996
340,697
57,952,724
54,982,653
2,970,071
36,777
255,876
64,965,884
62,413,390
2,552,494
19,851
174,037
71,543,134
69,512,512
2,030,622
Cash and due from banks..................................
18,643,164
23,308,292
1943
1944
1945
1946
1947
80,449,956
102,021,738
118,843,675
20,089
145,741
80,324,304
78,610,078
1,714,226
26,346
97,144
101,950,940
100,690,843
1,260,097
138,032,336
147,828,793
20,897
54,193
118,810,379
117,984,985
825,394
20,283
29,354
138,023,265
137,404,382
618,883
16,017
25,095
147,819,715
147,293,671
526,044
144,531,287
15,156
35,596
144,510,847
143,814,520
696,327
24,618,882
25,342,868
26,036,187
29,215,660
0)
31,790,001
(2)
(2)
(2)
(2)
(2)
(2)
26,799,729
50,067,210
26,807,855
65,089,147
78,783,904
50,073,639
65,096,303
78,794,810
(»)
(*)
69,134,182
(4)
Other securities— book va lu e............................
21,315,369
22,758,101
25,759,640
21,234,173
20,027,268
1,206,905
22,698,345
21,659,491
1,038,854
6,682,798
6,055,350
25,722,984
24,970,412
752,572
6,651,951
6,034,558
617,393
5,805,695
6,215,580
6,040,897
5,578,743
462,154
5,800,937
5,499,037
301,900
6,213,954
5,954,653
259,301
( l)
7,890,527
Appraised value.................................................
Not criticized...................................................
Substandard....................................................
Loans and discounts— book value..................
16,055,860
15,898,191
14,669,527
1,228,664
17,037,342
16,924,352
15,870,628
1,053,724
19,544,145
19,467,422
18,618,309
849,113
20,136,352
18,290,697
19,562,561
20,071,927
19,303,969
767,958
18,251,118
17,710,001
541,117
19,539,481
19,180,144
359,337
21,436,642
21,424,482
21,161,567
262,915
7,888,268
7,657,623
230,645
0)
0)
0)
C1)
33,075,357
32,653,390
421,967
0)
33,100,496
Fixed and miscellaneous assets— book value
2,240,032
2,081,248
2,286,416
2,212,195
2,265,613
Appraised value.................................................
Not criticized...................................................
Substandard....................................................
2,177,196
1,642,694
534,502
2,034,895
1,574,979
459,916
2,350,085
2,380,550
2,245,609
1,816,672
428,937
2,173,689
1,844,814
328,875
2,242,418
1,985,592
256,826
2,337,471
2,173,314
164,157
2,374,359
2,277,692
96,667
Total liabilities—book value...........................
Total deposits....................................................
Other liabilities—book value............................
Liabilities not on the books..............................
Adjusted total liabilities...................................
51,781,865
58,627,148
65,012,512
73,529,826
94,882,516
50,976,656
805,209
10,436
51,792,301
57,919,547
707,601
12,927
58,640,075
64,218,740
793,772
6,084
65,018,596
72,755,007
774,819
7,362
73,537,188
111,242,503
94,087,113
795,403
4,491
94,887,007
129,849,891
139,081,529
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
133,169,657
1,951,047
2,635
135,123,339
6,472,560
6,557,835
6,684,808
6,920,130
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
7,139,222
7,601,172
8,182,445
8,747,264
20,283
29,354
3,731
8,169,643
16,017
25,095
4,719
8,733,467
9,410,583
Total capital accounts— book value.............
Assets not on the books....................................
Examiners’ deductions from total assets........
Liabilities not on the books..............................
Adjusted capital accounts................................
26,346
97,144
4,491
7,063,933
20,897
54,193
7,563
7,560,313
C1)
(1)
C1)
C1)
2,616,081
2,623,039
2,579,324
43,715
135,120,704
15,156
35,596
2,635
9,387,508
COR POR ATIO N
Appraised value.................................................
Not criticized...................................................
Substandard....................................................
(})
t1)
INSURANCE
24,107,119
U. iS. Governm ent obligations— book value
Appraised value3................................................
DEPOSIT
Assets not on the books....................................
Examiners’ deductions......................................
Appraised value.................................................
Not criticized...................................................
Substandard.....................................................
1942
FEDERAL
T otal assets— book value....................................
1939
$96.46
9.74
$97.60
9.12
$98.08
8.45
$98.95
6.93
$99.46
6.36
$99.84
5.92
$99.84
5.91
$99.75
6.50
Substandard assets per $100 of—
Appraised value of total assets........................
Adjusted capital accounts................................
5.12
48.21
3.93
40.35
2.84
31.12
2.13
25.26
1.24
17.84
.69
10.92
.45
7.58
.36
6.02
.48
7.42
Substandard loans and discounts per $100
of—
Appraised value of loans and discounts.........
7.73
6.23
4.36
3.83
2.96
1.84
1.23
Number of banks...................................................
13,505
13,437
13,308
13,303
13,207
12,983
12,473
(J)
12,493
1.28
12,747
1 Not available separately.
2 Prior to 1942 U. S. Government obligations not available separately; included under other securities.
3 Appraised value is in excess of book value due to the excess of redemption value of U. S. savings bonds not shown on the books over examiners' deductions of unamortized
premiums on U. S. Government obligations purchased above par.
4 Appraised value not available. Redemption value of U. S. savings bonds not shown on the books included under fixed and miscellaneous assets, while examiners’ deductions
of unamortized premium on U. S. Government obligations purchased above par included under other securities.
OF
INSURED
COMMERCIAL
BANKS
EVALUATION
$95.18
10.63
EXAMINERS
Adjusted capital accounts per $100 of—
Book capital.......................................................
Appraised value of total assets........................
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 in e d
in
1947
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of—
301,523
169
292
301,400
297,895
3,505
$500,000
to
$1,000,000
1,373,760
879
970
1,373,669
1,362,118
11,551
$1,000,000
to
$2,000,000
$2,000,000
to
$5,000,000
$5,000,000
to
$10,000,000
(Amounts in thousands 'of
13,838,763
4,973,266
3,754
2,429
5,725
2,006
13,836,792
4,973,689
13,758,798
k,9k3,682
30,007
77,99k
dollars)
12,723,028
2,088
4,385
12,720,731
12,650,5k8
70,183
$10,000,000 $50,000,000
More than
to
to
$50,000,000 $100,000,000 $100,000,000
25,318,089
3,200
7,662
25,313,627
25,181,976
131,651
10,921,384
872
2,433
10,919,823
10,871,79k
k8,029
75,081,474
1,765
12,123
75,071,116
7k,7 k7,709
323,k07
31,790,001
91,778
351,874
1,172,365
3,008,652
2,605,785
5,256,136
2,526,128
16,777,283
U. S. Government obligations—book value
69,134,182
127,260
658,295
2,498,091
7,002,089
6,458,068
12,841,448
5,320,601
34,228,330
Other securities—book value.........................
Appraised value.................................................
Not criticized...................................................
Substandard....................................................
7,890,527
7,888,268
7,657,623
230,6h5
10,369
10,334
9,670
66k
64,039
63,976
62,02k
1,952
270,242
270,050
262,767
7,283
928,272
927,518
902,k2k
25,09k
942,430
942,070
917,629
2k,kkl
1,645,779
1,645,290
1,601,503
k3,787
561,251
561,111
5k3,107
18,00k
3,468,145
3,467,919
3,358 ,k99
109,k20
Loans and discounts—book value................
33,100,496
33,075,357
32,653,390
±21,967
69,740
69,543
66,783
2,760
289,169
288,340
279,00k
9,336
996,063
994,482
972,k58
22,02k
2,787,404
2,783,133
2,73k,017
k9,116
2,596,371
2,592,851
2,550,955
kl ,896
5,261,328
5,255,102
5,178,833
76,269
2,358,490
2,356,443
2,329,2k0
27,203
18,741,931
18,735,463
18,5k2,100
193,363
Fixed and miscellaneous assets— book value
Appraised value.................................................
2,616,081
2,623,039
2,579,321+
1*3,715
2,376
2,485
2 ,m
81
10,383
11,184
10,921
263
36,505
38,701
38,001
700
112,346
115,400
111,616
3,78k
120,374
121,957
118,111
3,8k6
313,398
315,651
30k,056
11,595
154,914
155,540
152,718
2,822
1,865,785
1,862,121
l,8kl,k97
20,62k
135,120,704
133,169,657
1,951,047
2,635
135,123,339
273,687
272,530
1,157
47
273,734
1,274,814
1,270,608
4,206
112
1,274,926
4,652,509
4,640,799
11,710
223
4,652,732
12,983,992
12,944,071
39,921
442
12,984,434
11,947,343
11,896,238
51,105
410
11,947,753
23,764,718
23,615,220
149,498
322
23,765,040
10,271,678
10,189,050
82,628
1,053
10,272,731
69,951,963
68,341,141
1,610,822
26
69,951,989
Other liabilities—book value............................
Adjusted total liabilities...................................
CO R POR ATION
Cash and due from banks...............................
INSURANCE
144,531,287
15,156
35,596
144,510,847
1US,81U,520
696,827
$500,000
or less
DEPOSIT
Total assets—book value.................................
Assets not on the books....................................
Examiners’ deductions......................................
Appraised value.................................................
Not criticized...................................................
Substandard....................................................
All
banks
FEDERAL
Asset, liability, or capital account item
27,836
169
292
47
27,666
98,946
879
970
112
98,743
320,757
2,429
2,006
223
320,957
854,771
3,754
5,725
442
852,358
775,685
2,088
4,385
410
772,978
1,553,371
3,200
7,662
322
1,548,587
649,706
872
2,433
1,053
647,092
5,129,511
1,765
12,123
26
5,119,127
Adjusted capital accounts per $100 of—
Book capital.......................................................
Appraised value of total assets........................
$99.75
6.50
$99.39
9.18
$99.79
7.19
$100.06
6.45
$99.72
6.16
$99.65
6.08
$99.69
6.12
$99.60
5.93
$99.80
6.82
Substandard assets per $100 of—
Appraised value of total assets........................
Adjusted capital accounts................................
.48
7.42
1.16
12.67
.84
11.70
.60
9.35
.56
9.15
.55
9.08
.52
8.50
.44
7.42
.43
6.32
Substandard loans and discounts per $100
of—
Appraised value of loans and discounts.........
1.28
3.97
3.24
2.21
1.76
1.62
1.45
1.15
1.03
Number of banks...................................................
12,747
655
1,611
3,160
4,114
1,707
1,192
144
164
INSURED
COMMERCIAL
BANKS
OF
Back figures—See the following Annual Reports: 1946, pp. 134-135, and earlier reports.
EVALUATION
9,410,583
15,156
35,596
2,635
9,387,508
EXAMINERS
Total capital accounts—book value.............
Assets not on the books...................................
Examiners’ deductions from total assets........
Liabilities not on the books.............................
Adjusted capital accounts................................
to
Table 114.
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
Insured C
o m m e r c ia l
B
anks
E x a m in e d
in
1947
B A N K S G R O U P E D B Y F E D E R A L D EPO SIT IN SU R AN CE CO RPO R ATIO N D IS TRIC T A N D STATE
(Amounts in thousands of dollars)
Total assets
Number
of
banks
Total capital
accounts
Appraised value
Book
value
Examiners’
deductions
(net)1
Total
Not
criticized
Sub
standard
Book
value
Adjusted
value
Book
value
Adjusted
value
Substandard assets
Adjusted
per $100 of—
capital
accounts
aer $100 oi
appraised Appraised Adjusted
value of
value of
capital
total
total
accounts
assets
assets
12,747 144,531,287
20,440 144,510,847 143,814,520
696,327 135,120,704 135,123,339
9,410,583
9,387,508
$6.50
$.48
United S tates. . . .
12,742 144,489,443
20,428 144,469,015 143,772,888
696,127 135,080,922 135,083,556
9,408,521
9,385,459
6.50
.48
7.42
$7.42
41,844
12
41,832
41,632
200
39,782
39,783
2,062
2,049
4.90
.48
9.76
FDIC D istrict
District 1 .............
District 22...........
District 3 .............
District 4 .............
District 5 .............
District 6 .............
District 7 .............
District 8 .............
District 9 .............
District 10...........
District 11...........
District 123..........
463
1,016
1,616
983
791
1,398
1,311
1,342
1,010
1,370
987
460
7,202,990
38,765,621
17,325,020
7,707,684
5,292,096
8,346,744
10,390,738
13,622,416
4,247,518
5,660,459
8,127,340
17,842,661
1,179
8,653
3,144
861
542
938
116
124
577
613
1,332
3,515
7,201,811
38,756,968
17,321,876
7,706,823
5,291,554
8,345,806
10,390,622
13,622,292
4,248,095
5,659,846
8,126,008
17,839,146
7,169,328
38,498,810
17,240,677
7,675,969
5,253,453
8,310,858
10,356,120
13,582,414
4,235,011
5,637,265
8,103,560
17,751,055
32,483
258,158
81,199
30,854
88,101
34,948
34,502
39,878
13,084
22,581
22,448
88,091
6,639,220
35,723,165
15,888,093
7,236,954
4,997,359
7,878,284
9,834,632
12,862,318
4,028,111
5,361,226
7,705,320
16,966,022
6,639,225
35,724,544
15,888,205
7,237,089
4,997,444
7,878,505
9,834,716
12,862,373
4,028,157
5,361,658
7,705,358
16,966,065
563,770
3,042,456
1,436,927
470,730
294,737
468,460
556,106
760,098
219,407
299,233
422,020
876,639
562,586
3,032,424
1,433,671
469,734
294,110
467,301
555,906
759,919
219,938
298,188
420,650
873,081
7.81
7.82
8.28
6.10
5.56
5.60
5.35
5.58
5.18
5.27
5.18
4.89
.45
.67
.47
.40
.72
.42
.33
.29
.31
.40
.28
.49
5.77
8.51
5.66
6.57
12.95
7.48
6.21
5.25
5.95
7.57
5.34
10.09
State
Alabama..............
Arizona................
Arkansas.............
California............
Colorado..............
200
10
215
176
138
1,225,568
418,402
786,498
13,346,945
1,109,750
97
134
111
1,826
S61
1,225,665
418,268
786,387
13,345,119
1,110,111
1,221,481
414,754
784,490
13,277,352
1,105,600
4,184
3,514
1,897
67,767
4,511
1,155,169
402,273
742,940
12,683,837
1,052,356
1,155,182
402,274
742,955
12,683,859
1,052,401
70,399
16,129
43,558
663,108
57,394
70,483
15,994
43,432
661,260
57,710
5.75
3.82
5.52
4.96
5.20
.34
.84
.24
.51
.41
5.94
21.97
4.37
10.25
7.82
Connecticut.........
Delaware.............
Dist. of Columbia
Florida.................
Georgia................
92
36
19
161
256
1,259,340
471,999
1,112,319
1,725,211
1,619,842
430
124
199
529
91
1,258,910
471,875
1,112,120
1,724,682
1,619,933
1,252,666
465,910
1,108,172
1,708,366
1,609,676
6,244
5,965
3,948
16,316
10,257
1,161,982
426,519
1,046,504
1,634,180
1,525,594
1,161,983
426,534
1,046,504
1,634,187
1,525,644
97,358
45,480
65,815
91,031
94,248
96,927
45,341
65,616
90,495
94,289
7.70
9.61
5.90
5.25
5.82
.50
1.26
.35
.95
.63
6.44
13.16
. 6.02
18.03
10.88
CORPORATION
5
INSURANCE
P ossessions..........
DEPOSIT
United States and
p ossession s........
FEDERAL
FDIC District
and State
Total liabilities
141
29,745
13,274
10,133
5,417
379,235
10,885,379
2,677,705
1,976,939
1,356,904
379,235
10,885,413
2,677,733
1,976,960
1,357,035
15,534
655,655
155,905
104,443
72,105
15,507
655,011
155,814
104,908
71,760
3.93
5.68
5.50
5.04
5.02
.04
.26
.47
.49
.38
.91
4.54
8.52
9.66
7.55
Kentucky............
Louisiana.............
M aine..................
Maryland............
Massachusetts. . .
362
150
54
164
177
1,531,757
1,609,833
450,163
1,535,654
4,324,383
48
18
208
32
96
1,531,709
1,609,815
449,955
1,535,622
4,324,479
1,525,546
1,605,331
446,405
1,531,296
4,312,266
6,163
4,484
3,550
4,326
12,213
1,433,721
1,531,802
414,582
1,439,213
3,989,198
1,433,750
1,531,811
414,583
1,439,254
3,989,200
98,036
78,031
35,581
96,441
335,185
97,959
78,004
35,372
96,368
335,279
6.40
4.85
7.86
6.28
7.75
.40
.28
.79
.28
.28
6.29
5.75
10.04
4.49
3.64
Michigan..............
Minnesota............
Mississippi...........
Missouri..............
Montana..............
380
604
174
532
110
4,773,426
2,729,383
721,475
4,121,421
556,385
309
U08
201
251
89
4,773,117
2,729,786
721,274
4,121,170
556,424
4,761,378
2,720,534
713,930
4,107,478
554,634
11,739
9,252
7,344
13,692
1,790
4,528,976
2,572,568
682,416
3,902,013
533,622
4,529,015
2,572,590
682,431
3,902,049
533,627
244,450
156,815
39,059
219,408
22,763
244,102
157,196
38,843
219,121
22,797
5.11
5.76
5.39
5.32
4.10
.25
.34
1.02
.33
.32
4.81
5.89
18.91
6.25
7.85
Nebraska.............
Nevada................
New Hampshire..
New Jersey..........
New Mexico........
357
8
57
334
45
1,326,832
171,686
228,781
4,553,514
277,143
175
52
191
1,151
299
1,327,007
171,634
228,590
4,552,363
276,844
1,324,438
170,829
226,433
4,494,308
274,854
2,569
805
2,157
58,055
1,990
1,263,480
164,181
207,069
4,257,089
264,625
1,263,576
164,181
207,069
4,257,314
264,629
63,352
7,505
21,712
296,425
12,518
63,431
7,453
21,521
295,049
12,215
4.78
4.34
9.41
6.48
4.41
.19
.47
.94
1.28
.72
4.05
10.80
10.02
19.68
16.29
New Y ork............
North Carolina...
North Dakota. . .
Ohio.....................
Oklahoma............
645
214
134
636
372
33,735,725
1,677,308
473,354
7,027,065
1,568,205
7,378 33,728,347
9
1,677,299
473,418
6U
1,041
7,026,024
1,567,392
813
33,534,301
1,670,185
472,726
7,005,397
1,558,576
194,046
7,114
692
20,627
8,816
31,035,493
1,585,841
455,135
6,600,484
1,474,085
31,036,632
1,585,869
455,145
6,600,499
1,474,233
2,700,232
91,467
18,219
426,581
94,120
2,691,715
91,430
18,273
425,525
93,159
7.98
5.45
3.86
6.06
5.94
.58
.42
.15
.29
.56
7.21
7.78
3.79
4.85
9.46
Oregon.................
Pennsylvania. . . .
Rhode Island. . . .
South Carolina...
South Dakota----
64
980
13
112
162
1,348,740
10,297,955
672,696
618,191
488,396
272
2,103
51
88
71
1,348,468
10,295,852
672,645
618,279
488,467
1,345,067
10,235,280
670,224
616,713
487,117
3,401
60,572
2,421
1,566
1,350
1,283,581
9,287,609
624,359
590,716
466,786
1,283,583
9,287,706
624,359
590,733
466,795
65,159
1,010,346
48,337
27,475
21,610
64,885
1,008,146
48,286
27,546
21,672
4.81
9.79
7.18
4.46
4.44
.25
.59
.36
.25
.28
5.24
6.01
5.01
5.69
6.23
Tennessee............
Texas....................
Utah.....................
Vermont..............
Virginia................
289
782
57
70
301
1,907,068
5,821,962
556,780
267,627
1,839,191
528
881
40
395
559
1,906,540
5,821,081
556,740
267,232
1,838,632
1,893,344
5,808,621
555,612
261,334
1,828,339
13,196
12,460
1,128
5,898
10,293
1,799,610
5,506,620
526,711
242,030
1,715,401
1,799,751
5,506,644
526,714
242,031
1,715,426
107,458
315,342
30,069
25,597
123,790
106,789
314,437
30,026
25,201
123,206
5.60
5.40
5.39
9.43
6.70
.69
.21
.20
2.21
.56
12.36
3.96
3.76
23.40
8.35
Washington.........
West Virginia. . . .
Wisconsin............
Wyoming.............
118
173
478
55
1,986,280
925,021
2,783,702
226,663
1,286
150
256
122
1,984,994
924,871
2,783,958
226,541
1,970,253
921,264
2,774,469
225,273
14,741
3,607
9,489
1,268
1,892,759
859,279
2,627,951
214,401
1,892,774
859,303
2,627,968
214,413
93,521
65,742
155,751
12,262
92,220
65,568
155,990
12,128
4.65
7.09
5.60
5.35
.74
.39
.34
.56
15.98
5.50
6.08
10.46
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.
* Includes 3 national banks in Alaska and 1 State bank in Hawaii, not members of the Federal Reserve System.
BANKS
394,601
11,510,679
2,820,273
2,071,735
1,423,378
COMMERCIAL
394,742
11,540,424
2,833,547
2,081,868
1,428,795
INSURED
27
610
63
486
214
OF
394,769
11,541,034
2,833,610
2,081,382
1,429,009
EVALUATION
33
844
453
498
448
EXAMINERS
Idaho....................
Illinois..................
Indiana................
Iow a.....................
Kansas.................
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 115.
Earnings, expenses, and dividends of insured commercial banks, 1934, 1941-1947
Table 116.
Ratios of earnings, expenses, and dividends of insured commercial banks, 1934,
1941-1947
Table 117.
Earnings, expenses, and dividends of insured commercial banks, 1947
B y class of bank
Table 118.
Ratios of earnings, expenses, and dividends of insured commercial banks, 1947
B y class of bank
Table 119.
Earnings, expenses, and dividends of insured commercial banks operating
throughout 1947
Banks grouped according to amount of deposits
Table 120.
Ratios of earnings, expenses, and dividends of insured commercial banks operating
throughout 1947
Banks grouped according to amount of deposits
Table 121.
Amounts and ratios of earnings, expenses, and dividends of insured commercial
banks, 1947
B y State
Table 122.
Earnings, expenses, and dividends of insured mutual savings banks, 1934, 1941-1947
Table 123.
Ratios of earnings, expenses, and dividends of insured mutual savings banks, 1934,
1941-1947
Reports of earnings, expenses, and dividends are submitted to the
Federal supervisory agencies on either a cash or an accrual basis.
National banks, and State banks not members of the Federal Reserve
System in the District of Columbia: Office of the Comptroller of the
Currency.
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.
AND
DIVIDENDS
OF
INSURED
BANKS
Sources of data:
EXPENSES
Averages of assets and liabilities shown in Tables 115-118 and 121123 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.
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 in operation during
part of the year but not at the end of the year.
Assets and liabilities shown in Table 119, and utilized for computation
of ratios shown in Table 120, are for the identical banks to which the
earnings data pertain. For national banks and State banks members
of the Federal Reserve System, assets and liabilities are as of December
31, 1947, and for other banks, are averages of beginning, middle, and
end of the year.
w
Table 115.
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s , 1934, 1941-1947
(Amounts in thousands of dollars)
1,518,449
1942
1943
1944
1945
1946
1947
1,790,692
1,959,481
2,214,905
2,482,278
2,862,875
3,097,670
509,175
847,832
610,298
804,717
12,084
84,309
861,412
692,305
13,513
95,332
1,090,253 /\
680,708
17,320
107,375
1,132,977
167,198
707,738
18,860
109,789
1,218,517
176,620
936,554
14,564
124,696
1,079,535
179,408
1,263,788
18,386
147,761
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
97,264
144,734
166,794
1,222,157
219,388
333,171
1,256,025
225,142
356,958
1,356,680
240,354
386,346
1,522,778
266,018
424,881
1,762,634
309,220
521,709
1,981,787
344,845
602,266
11,541
174,674
336
97,085
11,775
163,900
502
99,915
12,907
186,773
1,112
97,307
14,610
233,321
2,448
98,683
16,936
268,624
2,364
96,314
18,954
298,274
2,656
103,516
39,917
346,045
40,008
357,825
41,845
390,036
40,329
442,488
40,850
506,617
42,276
569,000
139,698
0)
233,196
Current operating expenses— total.......................................
21,114,167
21,215,766
Salaries—officers.......................................................................
r
211,311
Salaries and wages—employees...............................................
1
302,627
I
402,038
Fees paid to directors and members of executive, discount,
and other committees.......................................................
1
13,151
Interest on time and savings deposits....................................
302,603
190,256
Interest and discount on borrowed m oney............................
374
7,324
Taxes other than on net income.............................................
274,043
2103,371
Recurring depreciation on banking house, furniture and
fixtures................................................................................
347,747
364,414
Other current operating expenses...........................................
330,262
280,412
f
1
Net current operating earnings............................................
2404,282
2514,135
568,535
703,456
858,225
959,500
1,100,241
1,115,883
Recoveries and profits— total.................................................
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
73,589
145,189
70,947
34,728
222,775
55,947
66,457
68,546
31,825
353,015
91,891
103,143
85,664
72,317
361,726
92,778
129,834
84,224
54,890
509,329
122,364
266,764
67,014
53,187
408,608
59,515
208,700
74,499
65,894
262,042
45,360
100,189
67,687
48,806
Losses and charge-offs—total................................................
On securities..............................................................................
On loans.....................................................................................
All other.....................................................................................
1,033,278
391,547
552,857
88,874
333,966
161,073
103,868
69,025
271,118
120,614
80,647
69,857
290,645
116,383
75,223
99,039
265,881
110,439
70,090
85,352
264,122
132,870
55,901
75,351
283,175
132,254
71,253
79,668
294,286
118,498
120,370
55,418
CORPORATION
1,729,901
INSURANCE
550,092
690,601
(*)
34,609 ]
[
41,139
78,190
123,818
1941
DEPOSIT
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...........................................
1934
FEDERAL
Earnings or expense item
2-336,969
2504,622
520,192
765,826
954,070
1,204,707
1,225,674
1,083,639
Taxes on net income— total...................................................
Federal.......................................................................................
State...........................................................................................
63,000
650,000
0)
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
302,242
283,046
19,196
-339,969
Net profits after taxes..............................................................
0)
902,346
781,397
253,193
274,438
298,983
315,215
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
5,981
309,234
Net additions to capital from profits..................................
-527,738
201,226
213,043
404,471
498,056
631,474
603,363
466,182
Average assets and liabilities6
Assets—total...............................................................................
Cash and due from banks.......................................................
U. S. Government obligations................................................
Other securities.........................................................................
Loans and discounts................................................................
All other assets..........................................................................
44,941,293
10,272,448
11,075,592
6,259,203
14,901,832
2,432,218
73,510,130
25,693,758
19,160,565
6,997,406
19,857,387
1,801,014
83,666,451
25,922,701
29,231,826
6,802,771
20,030,625
1,678,528
103,370,189
26,774,094
50,315,698
6,321,794
18,380,838
1,577,765
123,168,863
28,042,727
67,231,161
6,088,482
20,310,112
1,496,381
145,217,438
31,236,090
82,417,236
6,623,089
23,500,772
1,440,251
151,896,770
33,286,775
81,835,381
7,556,923
27,768,296
1,449,395
148,170,261
34,279,792
70,229,835
8,315,081
33,863,334
1,482,219
Liabilities and capital—total.................................................
Total deposits............................................................................
Demand deposits....................................................................
Time and savings deposits....................................................
Borrowings and other liabilities.............................................
Total capital accounts.............................................................
44,941,293
37,424,125
2k,823,179
12,600,9^6
1,319,221
6,197,947
73,510,130
66,168,797
50,327,k62
15,81,1,335
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
148,170,261
137,537,907
103,159,25k
3k,378,653
1,104,386
9,527,968
Number of active officers, December 3 1 ...................................
Number of other employees, December 31...............................
0)
C1)
57,067
211,115
54,925
216,473
55,309
225,647
56,494
229,377
59,119
245,275
62,697
271,395
65,740
284,072
Number of banks, December 317...............................................
14,137
13,427
13,347
13,274
13,268
13,302
13,359
13,403
BANKS
1 Not available.
2 Differs from reported figures as a result of the estimate made of taxes on net income. See footnote 5.
* In 1934; and for banks not submitting reports to FDIC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
In 1941 for banks submitting reports to FDIC, consists of regular depreciation allowances on banking house, furniture and fixtures plus other expenses of occupancy and main
tenance of banking quarters.
* Estimated; profits on securities sold were not reported separately from recoveries on securities by banks not submitting reports to the FDIC.
6 Estimated; based upon Bureau of Internal Revenue figures of income taxes paid by national banks for 1934, and paid by all banks and trust companies for 1941. Banks
submitting reports to the FDIC have reported income taxes separately since 1936.
..... ^ Asset and liability items are averages of figures reported at beginning, middle, and end of year.
7 In 1934 excludes 1 and in 1941, 3 trust companies not engaged in deposit banking, which submit reports to FDIC.
N o t e : Minus (-) indicates net loss.
Back figures—See the Annual Report for 1941, pp. 158-159.
INSURED
905,912
233,490
OF
751,249
227,608
DIVIDENDS
637,961
253,396
AND
440,651
187,769
EXPENSES,
454,622
Dividends and interest on capital— total...........................
Dividends declared on preferred stock and interest paid on
capital notes and debentures...........................................
Cash dividends declared on common stock...........................
EARNINGS,
Net profits before income taxes............................................
CO
Table 116.
R
a t io s
of
E a r n in g s , E x p e n s e s ,
Earnings or expense item
1934
$1 0 0 . 0 0
D
iv i d e n d s
I n s u r e d C o m m e r c ia l B a n k s ,
of
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
1946
1945
1944
1943
1942
1941
1934, 1941-1947
$1 0 0 . 0 0
1947
$1 0 0 . 0 0
$1 0 0 . 0 0
45.64
6.74
29.27
4.42
42.56
6.17
33.22
4.36
34.85
5.79
41.39
4.77
13.48
12.52
3.45
11.70
3.54
10.87
3.65
10.28
3.42
10.27
3.14
10.06
173.38
26.48
19.93
14.88
170.28
30.47
11.00
15.98
68.25
31.50
9.76
5.42
64.10
30.31
8.36
5.10
61.25
28.88
8.43
4.39
61.35
28.42
9.40
3.98
61.57
29.62
9.38
3.36
63.98
31.19
9.63
3.34
23.14
18.95
23.72
19.11
2.23
19.34
2.04
18.29
1.89
17.66
1.62
17.93
1.43
17.78
1.36
18.46
Net current operating earnings............................................
126.62
129.72
31.75
35.90
38.75
38.65
38.43
36.02
Amounts per $100 of total assets3
Current operating earnings— total.............................................
Current operating expenses— total.............................................
Net current operating earnings...................................................
Recoveries and profits— total......................................................
Losses and charge-offs— total......................................................
Net profits before income taxes..................................................
Net profits after income taxes.....................................................
3.38
12.48
i.90
.65
2.30
1-.75
-.76
2.35
x1.65
i.70
.44
.45
i.69
.62
2.14
1.46
1.90
1.80
1 .2 2
1 .1 0
1.71
1.05
Amounts per $100 of total capital accounts3
Net current operating earnings...................................................
Recoveries and profits— total......................................................
Losses and charge-offs—total......................................................
Net profits before income taxes..................................................
Taxes on net income.....................................................................
Net profits after income taxes.....................................................
Cash dividends declared...............................................................
Net additions to capital from profits.........................................
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
2.71
13.30
Current operating expenses— total.......................................
Salaries, wages, and fees..........................................................
Interest on time and savings deposits....................................
Taxes other than on net income.............................................
Recurring depreciation on banking house, furniture and
fixtures................................................................................
Other current operating expenses .........................................
Other service charges, commissions, fees, and collection
and exchange charges.......................................................
Other current operating earnings...........................................
8.08
f
.6 8
.6 8
.26
.32
.62
.53
.34
.28
.74
.62
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
.70
.29
.2 2
.77
.61
1 1 .1 2
4.69
3.45
12.36
2.63
9.73
3.28
6.45
.6 6
.35
.18
.83
.62
11.51
6 .1 1
3.16
14.46
3.59
10.87
3.29
7.58
1 .8 8
1.16
.72
.27
.18
.81
.59
1 2 .2 1
4.53
3.14
13.60
3.59
1 0 .0 1
3.32
6.69
2.09
1.34
.75
.18
.2 0
.73
.53
11.71
2.75
3.09
11.37
3.17
8 .2 0
3.31
4.89
C O R P O R A T IO N
43.96
36.02
4.87
29.43
49.01
INSURANCE
34.08
45.61
4.71
36.23
45.48
2.28 1
DEPOSIT
$1 0 0 . 0 0
/
49.22 1
31.52
4.85
FEDERAL
Amounts per $ 1 0 0 of current operating earnings:
Current operating earnings— total.......................................
Interest and dividends on:
United States Government obligations.............................. J
Other securities.....................................................................
Income on loans........................................................................
and
Special ratios3
4.27
1.95
(5)
1.20
4.08
1.69
.14
1.10
3.85
1.52
.12
.93
3.44
1.49
.12
.87
3.09
1.46
.10
.87
3.43
1.56
.11
.84
3.79
1.60
.14
.87
Assets and liabilities per $100 o f total assets3
1 0 0 .0 0
22.86
24.64
13.93
33.16
5.41
1 0 0 .0 0
34.95
26.07
9.52
27.01
2.45
1 0 0 .0 0
30.98
34.94
8.13
23.94
2.01
1 0 0 .0 0
25.91
48.70
6.11
17.75
1.53
1 0 0 .0 0
22.77
54.59
4.94
16.49
1.21
1 0 0 .0 0
21.51
56.76
4.56
16.18
.99
1 0 0 .0 0
21.91
53.88
4.98
18.28
.95
1 0 0 .0 0
23.14
47.40
5.61
22.85
1.00
1 0 0 .0 0
83.27
55.23
28.0U
2.94
13.79
90.01
68.U6
21.55
.79
9.20
91.00
72.01
18.99
.69
8.31
92.39
75.39
17.00
.60
7.01
93.11
75.72
17.39
.62
6.27
93.62
75.0J,
18.58
.64
5.74
93.37
72.3k
21.03
.70
5.93
92.82
69.62
23.20
’.75
6.43
Number of banks, December 31®...............................................
14,137
13,427
13,347
13,274
13,268
13,302
13,359
13,403
1 0 0 .0 0
1 0 0 .0 0
1 0 0 .0 0
1 0 0 .0 0
1 0 0 .0 0
1 0 0 .0 0
1 0 0 .0 0
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 FDIC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
In 1941 for banks submitting reports to FDIC, consists of regular depreciation allowances on banking house, furniture and fixtures plus other expenses of occupancy and main
tenance of banking quarters.
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 by all banks and trust companies for 1941. Banks
submitting reports to the FDIC have reported income taxes separately since 1936.
5 Not available.
6 In 1934 excludes 1 and in 1941, 3 trust companies not engaged in deposit banking, which submit reports to FDIC.
N o t e : Minus (-) indicates net loss.
AND
Liabilities and capital— to ta l................................................
Total deposits...........................................................................
Demand deposits....................................................................
Time and savings deposits....................................................
Borrowings and other liabilities.............................................
Total capital accounts.............................................................
EXPEN SES,
Cash and due from banks.......................................................
U S Government obligations................................................
Other securities.........................................................................
Loans and discounts................................................................
All other assets.........................................................................
EAR N IN G S,
4.63
3.17
.14
2.40
CO
00
05
Table 117.
E
a r n in g s ,
E xpen ses,
and
D
iv id e n d s
I n s u r e d C o m m e r c ia l B a n k s ,
of
1947
BY CLASS OF BANK
Members F . R. System
Earnings or expense item
Total
State
Operating
throughout
the year
Operating
less than
full year1
1,719,288
858,933
519,449
3,082,187
15,483
1,079,535
179,408
1,263,788
18,386
147,761
617,990
104,951
704,508
9,933
83,013
302,585
44,183
324,241
4,921
36,241
158,960
30,274
235,039
3,532
28,507
1,075,365
178,576
1,259,432
18,339
147,109
4,170
832
4,356
47
652
97,264
144,734
166,794
42,805
55,052
101,036
22,990
80,880
42,892
31,469
8,802
22,866
96,807
141,171
165,388
4 7
3,563
1,406
Current operating expenses— to ta l................................................................
Salaries—officers................................................................................................
Salaries and wages—employees........................................................................
Fees paid to directors and members of executive, discount, and other
committees..................................................................................................
Interest on time and savings deposits.............................................................
Interest and discount on borrowed money...........................................
Taxes other than on net income......................................................................
Recurring depreciation on banking house, furniture and fixtures...............
Other current operating expenses....................................................................
1,981,787
344,845
602,266
1,076,831
177,694
331,849
572,836
91,720
195,638
332,120
75,431
74,779
1,970,193
34 i,688
599,039
11,594
2,157
3,227
18,954
298,274
2,656
103,516
42,276
569,000
9,168
162,208
1,354
58,942
24,043
311,573
4,561
73,584
1,107
28,992
10,793
166,441
5,225
62,482
195
15,582
7,440
90,986
18,872
296,961
2,652
102,928
42,024
565,029
82
1,313
4
588
252
3,971
Net current operating earnings......................................................................
1,115,883
642,457
286,097
187,329
1,111,994
3,889
Recoveries and profits—t o ta l..........................................................................
Recoveries on securities....................................................................................
Profits on securities sold or redeemed.............................................................
Recoveries on loans............................................................................................
All other..............................................................................................................
262,042
45,360
100,189
67,687
48,806
160,555
25,569
61,409
43,595
29,982
71,494
14,789
28,225
15,484
12,996
29,993
5,002
10,555
8,608
5,828
259,688
44,3 8
99,355
67,530
48,465
2,354
1,022
834
157
341
CO R P O R A TIO N
3,097,670
INSURANCE
Current operating earnings— t o ta l................................................................
Interest and dividends on:
United States Government obligations.......................................................
Other securities..............................................................................................
Interest and discount on loans.........................................................................
Service charges and other fees on bank’s loans.............................................
Service charges on deposit accounts................................................................
Other service charges, commissions, fees, and collection and exchange
charges.........................................................................................................
Trust department..............................................................................................
Other current operating earnings....................................................................
DEPOSIT
National
Not
members
F. R.
System
FEDERAL
(Amounts in thousands of dollars)
294,286
118,498
120,370
55,418
168,505
69,748
73,234
25,523
82,672
31,568
29,419
21,685
43,109
17,182
17,717
8,210
292,603
117,532
120,123
54,948
1,683
966
247
470
Net profits before income taxes.....................................................................
1,083,639
634,507
274,919
174,213
1,079,079
4,560
Taxes on net income— total...........................................................................
302,242
283,046
19,196
182,409
172,266
10,143
74,109
67,215
6,894
45,724
43,565
2,159
300,896
281,755
19,141
1,346
1,291
55
200,810
128,489
778,183
3,214
183,123
97,819
34,273
314,260
955
Cash dividends declared on common stock....................................................
5,981
309,234
1,369
181,754
2,935
94,884
1,677
32,596
5,909
308,351
72
883
Net additions to capital from profits..........................................................
466,182
268,975
102,991
94,216
463,923
2,259
Average assets and liabilities2
Assets—total.......................................................................................................
Cash and due from banks................................................................................
U. S. Government obligations.........................................................................
Other securities..................................................................................................
Loans and discounts.........................................................................................
All other assets..................................................................................................
148,170,261
34,279,792
70,229,835
8,315,081
33,863,334
1,482,219
85,297,787
20,459,070
39,867,710
4,972,624
19,154,603
843,780
42,717,345
9,914,101
20,172,397
1,984,828
10,169,087
476,932
20,155,129
3,906,621
10,189,728
1,357,629
4,539,644
161,507
Liabilities and capital— total.........................................................................
Total deposits....................................................................................................
Demand deposits.............................................................................................
Time and savings deposits.............................................................................
Borrowings and other liabilities......................................................................
Total capital accounts......................................................................................
148,i70,261
137,537,907
103,159,254
34,378,653
1,104,386
9,527,968
85,297,787
79,314,689
60,373,574
18,941,115
702,234
5,280,864
42,717,345
39,380,169
30,431,981
8,948,188
328,145
3,009,031
20,155,129
18,843,049
12,353,699
6,489,350
74,007
1,238,073
Number of active officers, December 3 ............................................................
Number of other employees, December 31........................................................
65,740
284,072
31,549
155,218
13,401
85,772
20,790
43,082
65,326
282,658
414
1,414
Number of banks, December 31..........................................................................
13,403
5,005
1,915
6,483
13,290
113
OF
INSURED
BANKS
DIVIDENDS
Includes banka operating less than full year and trust companies not engaged in deposit banking.
* Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures—See Table 115, p. 132. See also the Annual Report for 1946, pp. 144-145, and earlier reports.
1
AND
452,098
315,215
EXPENSES,
781,397
Dividends and interest on capital— total...................................................
Dividends declared on preferred stock and interest paid on capital notes
E A R N IN G S,
Losses and charge-offs— total.........................................................................
On securities.......................................................................................................
00
Table 118.
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
Insured C
o m m e r c ia l
B an ks,
1947
B Y CLASS OF B A N K
Members F. R. System
Earnings or expense item
Not
members
F. R.
System
Total
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
34.85
5.79
41.39
4.77
3.14
10.06
35.94
6.10
41.56
4.83
2.49
9.08
35.23
5.14
38.32
4.22
2.68
14.41
30.60
5.83
45.92
5.49
6.06
6.10
Current operating expenses— total..........................................................................................................
Salaries, wages, and fees.............................................................................................................................
Interest on time and savings deposits.......................................................................................................
Taxes other than on net income................................................................................................................
Recurring depreciation on banking house, furniture and fixtures..........................................................
Other current operating expenses....................................................................................... .......................
63.98
31.19
9.63
3.34
1.36
18.46
62.63
30.17
9.43
3.43
1.40
18.20
66.69
33.98
8.57
3.37
1.26
19.51
63.92
29.92
12.02
3.00
1.43
17.55
Net current operating earnings................................................................................................................
36.02
37.37
33.31
36.08
Amounts per $100 of total assets1
Current operating earnings— total.................................................................................................................
Current operating expenses— total................................................................................................................
Net current operating earnings......................................................................................................................
Recoveries and profits—total.........................................................................................................................
Losses and charge-offs— total.........................................................................................................................
Net profits before income taxes......................................................................................................................
Net profits after income taxes....................................... ................................................................................
2.09
1.34
.75
.18
.20
.73
.53
2.01
1.26
.75
.19
.20
.74
.53
2.01
1.34
.67
.17
.20
.64
.47
2.58
1.65
.93
.14
.21
.86
.64
Amounts per $100 of total capital accounts1
Net current operating earnings......................................................................................................................
Recoveries and profits— total.........................................................................................................................
Losses and charge-offs— total.........................................................................................................................
Net profits before income taxes......................................................................................................................
Taxes on net income........................................................................................................................................
Net profits after income taxes........................................................................................................................
Cash dividends declared..................................................................................................................................
Net additions to capital from profits.............................................................................................................
11.71
2.75
3.09
11.37
3.17
8.20
3.31
4.89
12.17
3.04
3.19
12.02
3.46
8.56
3.47
5.09
9.51
2.38
2.75
9.14
2.47
6.67
3.25
3.42
15.13
2.42
3.48
14.07
3.69
10.38
2.77
7.61
Amounts per $100 of current operating earnings
Current operating earnings— total..........................................................................................................
Interest and dividends on:
United States Government obligations.................................................................................................
Other securities........................................................................................................................................
Income on loans...........................................................................................................................................
Service charges on deposit accounts..........................................................................................................
Other service charges, commissions, fees and collection and exchange charges...................................
Other current operating earnings...............................................................................................................
CO R PO R ATIO N
INSURANCE
$1 0 0 . 0 0
DEPOSIT
State
FEDERAL
National
3.24
1.57
.12
.82
5.26
1.64
.23
.96
Assets and liabilities per $100 o f total assets1
Assets— t o t a l..............................................................................................................................................
Cash and due from banks.......................................................................................................................
U. S. Government obligations...............................................................................................................
Other securities..........................................................................................................................................
Loans and discounts....................................................................................................................................
All other assets.............................................................................................................................................
100.00
23.14
47.40
5.61
22.85
1.00
100.00
23.99
46.73
5.83
22.46
.99
100.00
23.20
47.22
4.65
23.81
1.12
100.00
19.38
50.56
6.74
22.52
.80
Liabilities and capital— t o ta l..................................................................................................................
Total deposits.............................................................................................................................................
Demand deposits......................................................................................................................................
Time and savings deposits......................................................................................................................
Borrowings and other liabilities............................................................................................................
Total capital accounts.............................................................................................................................
100.00
92.82
69.62
23.20
.75
6.43
100.00
92.99
70.78
22.21
.82
6.19
100.00
92.19
71.24
20.95
.77
7.04
100.00
93.49
61.29
32.20
.37
6.14
Number of banks, December 31....................................................................................................................
13,403
5,005
1,915
6,483
OF
INSURED
BANKS
DIVIDENDS
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures—See Table 116, p. 134. See also the Annual Report for 1946, pp. 146-147, and earlier reports.
AND
3.73
1.61
.14
.86
EXPENSES,
3.79
1.60
.14
.87
E AR N IN G S,
Special ratios1
Income on loans per $100 of loans................................................................................................................
Income on securities per $100 of securities................................................................................................
Service charges per $100 of demand deposits............................................................................................
Interest paid per $100 of time and savings deposits.................................................................................
00
co
Table 119.
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 C
o m m e r c ia l
B a n k s O p e r a t in g T
hroughout
1947
B A N K S GROUPED ACCORDING TO AM O U N T OF DEPO SITS
Banks with deposits of—.2
All
banks1
Current operating earnings— total.............................
Interest and dividends on:
United States Government obligations....................
Other securities...........................................................
Interest and discount on loans......................................
Service charges and other fees on bank’s loans...........
Service charges on deposit accounts.............................
Other service charges, commissions, fees and col
lection and exchange charges.................................
Trust department...........................................................
Other current operating earnings..................................
3,082,187
5,722
35,735
123,144
347,639
314,405
594,110
223,732
1,437,700
1,075,365
178,576
1,259,432
18,339
147,109
1,182
170
3,204
113
293
10,313
1,497
17,905
200
1,954
39,310
6,349
57,724
538
6,966
117,453
21,205
157,583
1,436
20,542
107,590
20,380
138,867
1,327
20,202
208,268
36,357
241,459
2,705
37,448
75,895
10,366
87,849
1,431
11,074
515,354
82,252
554,841
10,589
48,630
DEPOSIT
96,807
141,171
165,388
598
2
160
3,165
12
689
9,171
136
2,950
18,221
1,484
9,715
11,539
3,627
10,873
17,308
19,935
30,630
5,183
13,345
18,589
31,622
102,630
91,782
Current operating expenses— total.............................
Salaries—officers.............................................................
Salaries and waees—employees.....................................
Fees paid to directors and members of executive,
discount, and other committees.............................
Interest on time and savings deposits..........................
Interest and discount on borrowed m oney..................
Taxes other than on net income...................................
Recurring depreciation on banking house, furniture
and fixtures..............................................................
Other current operating expenses..................................
1,970,193
342,688
599,039
3,670
1,499
416
22,152
8,108
2,824
75,105
23,855
11,300
214,357
55,680
40,539
199,961
41,610
46,706
393,022
66,401
111,240
152,123
23,010
49,845
909,803
122,525
336,169
INSURANCE
18,872
296,961
2,652
102,928
78
311
7
216
493
2,930
24
1,049
1,725
12,611
56
3,768
4,554
40,507
159
11,629
3,281
39,447
160
10,531
4,246
69,807
316
20,499
1,097
20,173
259
8,152
3,398
111,175
1,671
47,084
42,024
565,029
75
1,068
490
6,234
1,792
19,998
5,556
55,733
5,173
53,053
9,949
110,564
3,866
45,721
15,123
272,658
$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
$100,000,000
$10,000,000 $50,000,000 $100,000,000
(Amountss in thousandsj of dollars)
1,111,994
2,052
13,583
48,039
133,282
114,444
201,088
71,609
527,897
259,688
44,338
99,355
67,530
48,465
235
20
47
108
60
1,754
178
423
788
365
6,065
1,009
1,736
2,040
1,280
19,377
3,319
6,736
5,601
3,721
20,544
3,870
7,929
5,056
3,689
46,083
8,705
17,249
11,584
8,545
16,787
2,394
7,220
3,747
3,426
148,843
24,843
58,015
38,606
27,379
Losses and charge-offs— total.......................................
On securities.....................................................................
On loans...........................................................................
All other...........................................................................
292,603
117,532
120,123
54,948
393
63
248
82
2,397
806
1,215
376
8,047
3,224
3,599
1,224
25,486
11,245
9,958
4,283
25,328
11,650
9,000
4,678
51,201
23,880
17,132
10,189
21,659
8,819
7,234
5,606
158,092
57,845
71,737
28,510
C O R PO R ATIO N
Net current operating earnings...................................
Recoveries and profits—total.......................................
Recoveries on securities.................................................
Profits on securities sold or redeemed..........................
Recoveries on loans.........................................................
All other...........................................................................
FEDERAL
Earnings or expense item
109,660
195,970
66,737
518,648
30,040
28,651
1,389
34,419
33,130
1,289
62,652
60,021
2,631
21,540
20,581
959
141,035
128,862
12,173
Net profits after taxes....................................................
778,183
1,536
10,714
37,431
97,133
75,241
133,318
45,197
377,613
Dividends and interest on capital— total.................
Dividends declared on preferred stock and interest
paid on capital notes and debentures...................
Cash dividends declared on common stock.................
314,260
427
2,651
9,305
25,418
22,269
44,480
17,732
191,978
5,909
308,351
14
413
83
2,568
237
9,068
670
24,748
809
21,460
1,473
43,007
890
16,842
1,733
190,245
Net additions to capital from profits........................
463,923
1,109
8,063
28,126
71,715
52,972
88,838
27,465 *
185,635
Average assets and liabilities3
Assets— total.....................................................................
Cash and due from banks.............................................
U .S . Government obligations......................................
Other securities...............................................................
Loans and discounts.......................................................
All other assets................................................................
151,702,937
36,640,980
67,874,940
8,626,284
37,036,038
1,524,695
185,129
57,193
75,239
6,331
45,136
1,230
1,377,214
354,920
661,778
64,933
288,749
6,834
5,032,793
1,193,181
2,502,320
280,986
1,030,737
25,569
14,713,916
3,264,398
7,250,847
999,145
3,108,235
91,291
13,453,575
2,851,953
6,503,576
1,053,997
2,942,247
101,802
26,697,208
5,992,694
12,807,795
1,822,574
5,798,537
275,608
10,681,947
2,685,799
4,797,963
543,184
2,519,602
135,399
79,561,155
20,240,842
33,275,422
3,855,134
21,302,795
886,962
Liabilities and capital— total.......................................
Total deposits..................................................................
Demand deposits..........................................................
Time and savings deposits...........................................
Borrowings and other liabilities....................................
Total capital accounts...................................................
151,702,937
140,906,026
106,251+,983
3U,651,0U3
1,143,690
9,653,221
185,129
166,272
136,996
29,276
695
18,162
1,377,214
1,274,916
98U,902
290,01 U
2,938
99,360
5,032,793
4,703,048
3 ,U10,7UO
1,292,308
9,355
320,390
14,713,916
13,778,672
9 M l , 079
h,337,593
33,042
902,202
13,453,575
12,600,027
8,08A,U8
U,515,579
43,826
809,722
26,697,208
24,965,107
16,539,321
8,^25,786
118,094
1,614,007
10,681,947
9,992,301
7,U7,916
2,5U,385
65,301
624,345
79,561,155
73,425,683
60,209,581
13,216,102
870,439
5,265,033
Number of active officers, December 3 1 .........................
Number of other employees, December 31.....................
65,326
282,658
823
470
3,639
2,674
8,684
8,845
15,516
26,004
9,004
26,011
10,641
56,673
3,088
24,166
13,931
137,815
Number of banks, December 31.......................................
13,290
453
1,711
3,286
4,437
1,817
1,264
144
178
BANKS
1 This group of banks is the same as the group shown in Table 117 under the heading “ Operating throughout the year.”
2 Deposits are as of December 31, 1947.
3 Asset and liability items are averages of figures reported at beginning, middle, and end of year for banks submitting reports to FDIC and are as of December 31, 1947,
for banks not submitting reports to FDIC.
Back figures—See the Annual Report for 1946, pp. 148-149, and earlier reports.
INSURED
127,173
8,626
8,098
528
OF
46,057
2,226
2,078
148
DIVIDENDS
12,940
358
334
24
AND
1,894
300,896
281,755
19,141
E X P E N SE S ,
1,079,079
Taxes on net income— total.........................................
Federal.............................................................................
EAR N IN G S,
Net profits before income taxes...................................
R
a t io s
of
E
a r n in g s ,
E xpen ses,
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 O p e r a t in g T
hroughout
1947
142
Table 120.
BA N K S GROUPED ACCORDING TO AM OUN T OF DEPO SITS
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
More than
$5,000,000 $10,000,000 $50,000,000
$100,000,000
to
to
to
$10,000,000 $50,000,000 $100,000,000
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
28.86
4.19
50.66
5.47
31.92
5.15
47.31
5.66
33.79
6.10
45.74
5.91
34.22
6.48
44.59
6.43
35.06
6.12
41.10
6.30
33.92
4.63
39.91
4.95
35.85
5.72
39.33
3.38
3.14
9.95
10.45
2.83
8.86
1.96
7.45
2.51
5.24
3.22
3.67
4.61
2.91
8.51
2.32
14.27
2.20
13.52
Current operating expenses— total.........
Salaries, wages, and fees..............................
Interest on time and savings deposits..........................
Taxes other than on net income.................................
Recurring depreciation on banking house, furniture
and fixtures.......................................
Other current operating expenses................................
63.92
31.17
9.63
3.34
64.14
34.83
5.44
3.77
61.99
31.97
8.20
2.94
60.99
29.95
10.24
3.06
61.66
28.99
11.65
3.34
63.60
29.13
12.55
3.35
66.15
30.62
11.75
3.45
67.99
33.05
9.02
3.64
63.28
32.14
7.73
3.28
1.36
18.42
1.31
18.79
1.37
17.51
1.46
16.28
1.60
16.08
1.65
16.92
1.67
18.66
1.73
20.55
1.05
19.08
Net current operating earnings.................................
36.08
35.86
38.01
39.01
38.34
36.40
33.85
32.01
36.72
Amounts per $100 of total assets^
Current operating earnings— total....................................
Current operating expenses— total...................................
Net current operating earnings.......................................
Recoveries and profits—total............................................
Losses and charge-offs— total..........................
Net profits before income taxes.......................................
Net profits after income taxes.........................................
2.03
1.30
.73
.17
.19
.71
.51
3.09
1.98
1.11
.12
.21
1.02
.83
2.59
1.61
.98
.13
.17
.94
.78
2.45
1.49
.96
.12
.16
.92
.74
2.36
1.46
.90
.13
.17
.86
.66
2.34
1.49
.85
.15
.19
.81
.56
2.22
1.47
.75
.17
.19
.73
.50
2.09
1.42
.67
.15
.20
.62
.42
1.80
1.14
.66
.19
.20
.65
.47
Amounts per $100 of total capital accounts3
Net current operating earnings.........................................
Recoveries and profits—total............................................
Losses and charge-offs—total..........................
Net profits before income taxes.........................................
Taxes on net income...........................................................
Net profits after income taxes...........................................
Cash dividends declared.....................................................
Net additions to capital from profits................................
11.52
2.69
3.03
11.18
3.12
8.06
3.25
4.81
11.30
1.29
2.16
10.43
1.97
8.46
2.35
6.11
13.67
1.76
2.41
13.02
2.24
10.78
2.67
8.11
14.99
1.89
2.51
14.37
2.69
11.68
2.90
8.78
14.77
2.15
2.82
14.10
3.33
10.77
2.82
7.95
14.13
2.54
3.13
13.54
4.25
9.29
2.75
6.54
12.46
2.85
3.17
12.14
3.88
8.26
2.76
5.50
11.47
2.69
3.47
10.69
3.45
7.24
2.84
4.40
10.02
2.83
3.00
9.85
2.68
7.17
3.65
3.52
CO R PO R ATIO N
$1 0 0 . 0 0
20.66
2.97
57.97
5.12
INSURANCE
$1 0 0 . 0 0
34.89
5.79
41.46
4.77
DEPOSIT
$1 0 0 . 0 0
FEDERAL
Amounts per $100 of current operating
earnings
Current operating earnings— total.......................
Interest and dividends on:
United States Government obligations....................
Other securities................................
Income on loans...................................
Service charges on deposit accounts.............................
Other service charges, commissions, fees and collection
and exchange charges......................
Other current operating earnings..................................
All
banks1
1 0 0 .0 0
24.15
44.74
5.69
24.41
1.01
1 0 0 .0 0
Number of banks, December 31.......................................
13,290
92.88
70.0U
22.8U
.75
6.37
1 0 0 .0 0
30.89
40.64
3.42
24.38
.67
1 0 0 .0 0
6.27
1.63
.20
1.01
1 0 0 .0 0
25.77
48.05
4.71
20.97
.50
1 0 0 .0 0
5.65
1.64
.20
.98
1 0 0 .0 0
23.71
49.72
5.58
20.48
.51
1 0 0 .0 0
5.12
1.68
.22
.93
1 0 0 .0 0
22.19
49.28
6.79
21.12
.62
1 0 0 .0 0
4.76
1.69
.25
.87
1 0 0 .0 0
21.20
48.34
7.83
21.87
.76
1 0 0 .0 0
4.21
1.67
.23
.83
1 0 0 .0 0
22.45
47.97
6.83
21.72
1.03
1 0 0 .0 0
3.54
1.62
.15
.79
1 0 0 .0 0
25.14
44.92
5.08
23.59
1.27
1 0 0 .0 0
2.65
1.61
.08
.84
1 0 0 .0 0
25.44
41.82
4.85
26.78
1.11
1 0 0 .0 0
89.81
7U.00
15.81
.38
9.81
92.57
71.51
21.06
.21
7.22
93.45
67.77
25.68
.18
6.37
93.64
6U.16
29.U8
.23
6.13
93.65
60.09
33.56
.33
6.02
93.51
61.95
31.56
.44
6.05
93.54
69.72
23.82
.61
5.85
92.29
75.68
16.61
1.09
6.62
453
1,711
3,286
4,437
1,817
1,264
144
178
OF
INSURED
BANKS
DIVIDENDS
1 This group of banks is the same as the group shown in Table 117 under the heading “ Operating throughout the year.” These ratios differ slightly from the ratios for all
insured commercial banks shown in Tables 116 and 118.
2 Deposits are as of December 31, 1947.
3 Asset and liability items are averages of figures reported at beginning, middle, and end of year for banks submitting reports to FDIC and are as of December 31, 1947,
for banks not submitting reports to FDIC.
Back figures—See Table 116, p. 134. See also the Annual Report for 1946, pp. 150-151, and earlier reports.
AND
Liabilities and capital— total.......................................
Total deposits..................................................................
Demand deposits..........................................................
Time and savings deposits...........................................
Borrowings and other liabilities....................................
Total capital accounts...................................................
7.35
1.66
.21
1.06
E X P E N SE S ,
Assets and liabilities per $100 of total
assets3
Assets— total.....................................................................
Cash and due from banks.............................................
U .S . Government obligations......................................
Other securities...............................................................
Loans and discounts.......................................................
All other assets................................................................
3.45
1.64
.14
.86
E AR N IN G S,
Special ratios3
Income on loans per $100 of loans...................................
Income on securities per $100 of securities.....................
Service charges per $100 of demand deposits.................
Interest paid per $100 of time and savings deposits. . . .
Table 121.
A
m ounts
an d
R
a t io s
of
E a r n in g s , E x p e n s e s ,
an d
D
iv id e n d s
Insured C
of
o m m e r c ia l
B an ks,
by
St a t e ,
1947
(Amounts, except ratios, in thousands of dollars)
Earnings or expense item
U. S.and
possessions
Possessions United States
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
29,404
11,106
18,075
329,278
22,464
31,967
10,107
1,079,235
179,368
1,263,341
18,376
147,725
7,533
1,940
14,384
108
1,613
2,354
289
6,356
161
804
5,046
1,404
7,328
56
1,250
89,188
15,612
171,031
3,412
17,133
7,141
898
9,946
96
2,105
10,344
1,264
12,863
64
2,008
3,345
765
3,821
27
186
97,264
144,734
166,794
230
36
97,034
144,734
166,758
1,926
647
1,253
293
242
607
2,154
136
701
6,412
11,166
15,324
623
805
850
515
2,892
2,017
141
1,568
254
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..................
1,981,787
344,845
602,266
701
133
216
1,981,086
344,712
602,050
17,158
•3,714
4,696
7,735
1,220
2,796
10,527
2,805
2,471
214,501
28,855
71,914
13,392
2,765
4,082
21,920
4,303
6,410
5,855
1,375
1,569
18,954
298,274
2,656
103,516
7
153
188
2,361
22
347
12
780
13
18,947
298,121
2,656
103,503
206
222
787
2
492
621
52,275
64
7,761
174
1,581
6
397
249
3,432
51
912
133
615
10
184
42,276
569,000
15
164
42,261
568,836
393
5,437
155
2,565
246
3,502
3,777
49,234
254
4,133
677
5,886
149
1,820
Net current operating earnings...................
1,115,883
398
1,115,485
12,246
3,371
7,548
114,777
9,072
10,047
4,252
Recoveries and profits— total........................
Recoveries on securities..................................
Profits on securities sold or redeemed..........
Recoveries on loans.........................................
All other...........................................................
262,042
45,360
100,189
67,687
48,806
17
2
4
8
3
262,025
45,358
100,185
67,679
48,803
1,083
22
375
437
249
421
53
201
71
96
750
116
283
199
152
32,472
2,819
12,229
15,287
2,137
1,693
357
276
735
325
2,187
246
861
690
390
601
148
317
106
30
Losses and charge-offs— total.......................
On securities.....................................................
On loans...........................................................
All other...........................................................
294,286
118,498
120,370
55,418
32
24
7
294,254
118,497
120,346
55,411
1,741
301
861
579
976
146
717
113
1,319
619
429
271
38,532
8,718
26,076
3,738
1,845
649
900
296
2,052
660
598
794
341
148
106
87
Net profits before income taxes...................
1,083,639
383
1,083,256
11,588
2,816
6,979
108,717
8,920
10,182
4,512
Taxes on net income— total..........................
Federal..............................................................
State
302,242
283,046
19,196
97
97
302,145
282,949
19,196
3|445
2,947
498
931
804
127
1,808
1,808
35,985
32,764
3,221
2,844
2,466
378
3,312
2,970
342
1,461
1,461
Net profits after taxes.....................................
781,397
286
781,111
8,143
1,885
5,171
72,732
6,076
6,870
3,051
Dividends and interest on capital— total..
Dividends on preferred stock and interest on
capital notes and debentures..................
Cash dividends declared on common stock..
315,215
54
315,161
2,455
679
1,468
33,105
1,569
2,742
1,637
5,981
309,234
3
51
5,978
309,183
10
2,445
21
658
26
1,442
399
32,706
10
1,559
22
2,720
2
1,635
466,182
232
465,950
5,688
1,206
3,703
39,627
4,507
4,128
1,414
Net additions to capital from profits........
1
1
CO R POR ATION
3,096,571
300
40
447
10
36
INSURANCE
1,099
1,079,535
179,408
1,263,788
18,386
147,761
DEPOSIT
3,097,670
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..................
AVERAGE ASSETS AN D L IAB IL ITIES1
148,170,261
34,279,792
70,229,835
8,315,081
33,863,334
1,482,219
39,931
9,790
19,369
2,556
8,009
207
148,130,330
34,270,002
70,210,466
8,312,525
33,855,325
1,482,012
1,286,136
339,415
544,166
102,962
287,297
12,296
415,253
85,965
180,302
16,599
127,991
4,396
807,943
243,924
359,071
60,099
140,773
4,076
13,615,846
2,644,662
6,199,481
737,468
3,880,885
153,350
1,127,656
320,446
546,124
45,689
209,859
5,538
1,333,234
299,546
659,366
70,600
285,531
18,191
486,014
97,933
249,728
31,515
102,187
4,651
Liabilities and capital— total........................
Total deposits..................................................
Demand deposits...........................................
Time and savings deposits...........................
Borrowings and other liabilities....................
Total capital accounts....................................
148,170,261
137,537,907
108,159,254
84,378,653
1,104,386
9,527,968
39,931
37,853
19,198
18,655
50
2,028
148,130,330
137,500,054
103,140,056
34,359,998
1,104,336
9,525,940
1,286,136
1,207,682
954,101
253,581
5,477
72,977
415,253
397,213
303,290
93,923
2,437
15,603
807,943
763,607
667,306
96,301
1,131
43,205
13,615,846
12,849,390
7,372,312
5,477,078
113,826
652,630
1,127,656
1,067,580
843,736
223,844
3,263
56,813
1,333,234
1,225,230
865,576
359,654
7,714
100,290
486,014
436,576
368,092
68,484
2,801
46,637
Number of active officers, December 3 1 ..........
Number of other employees, December 31. .. .
65,740
284,072
21
93
65,719
283,979
828
2,517
201
1,355
739
1,514
5,036
28,228
606
2,148
641
3,103
231
868
Number of banks, December 31........................
13,403
5
13,398
219
10
215
189
138
98
38
RATIOS
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
21.20
2.60
58.68
17.52
27.92
7.77
40.85
23.46
27.08
4.74
52.98
15.20
31.79
4.00
44.70
19.51
32.36
3.95
40.44
23.25
33.10
7.57
38.07
21.26
Current operating expenses— total.............
Salaries, wages, and fees................................
Interest on time and savings deposits..........
Taxes other than on net income....................
All other current operating expenses............
63.98
31.19
9.63
3.34
19.82
63.78
32.39
13.92
1.18
16.29
63.98
31.19
9.63
3.34
19.82
58.35
29.24
8.03
1.18
19.90
69.65
36.27
7.02
1.86
24.50
58.24
30.42
4.35
2.72
20.75
65.14
30.79
15.87
2.36
16.12
59.62
31.25
7.04
1.77
19.56
68.57
34.29
10.74
2.85
20.69
57.93
30.45
6.08
1.82
19.58
Amounts per $100 of total assets1
Current operating earnings—total....................
Current operating expenses— total....................
Net current operating earnings..........................
2.09
1.34
.75
2.75
1.75
1.00
2.09
1.34
.75
2.29
1.34
.95
2.67
1.86
.81
2.24
1.30
.94
2.42
1.58
.84
1.99
1.19
.80
2.40
1.65
.75
2.08
1.21
.87
Amounts per $100 of total capital
accounts1
Net profits after income taxes...........................
Cash dividends declared.....................................
8.20
3.31
14.10
2.66
8.20
3.31
11.16
3.36
12.08
4.35
11.97
3.40
11.14
5.07
10.69
2.76
6.85
2.73
6.54
3.51
3.79
1.60
5.71
1.55
3.79
1.60
5.04
1.46
5.09
1.34
5.25
1.54
4.49
1.51
4.79
1.36
4.53
1.59
3.77
1.46
.87
.82
.87
.93
.83
.82
.95
.71
.95
.90
Special ratios1
Income on loans per $100 of loans. . . . ............
Income on securities per $100 of securities. . . .
Interest paid per $100 of time and savings
deposits.....................................................
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures— See the Annual R eport for 1946, pp. 152-161.
145
$1 0 0 . 0 0
25.62
6.60
49.28
18.50
BANKS
$1 0 0 . 0 0
34.85
5.79
41.39
17.97
INSURED
$1 0 0 . 0 0
27.30
3.64
41.58
27.48
OF
$1 0 0 . 0 0
34.85
5.79
41.39
17.97
DIVIDENDS
$1 0 0 . 0 0
AND
Amounts per $100 of current operating
earnings
Current operating earnings—total.............
Interest and dividends on:
United States Government obligations. . .
Other securities............................................
Income on loans...............................................
All other current operating earnings.............
EXPENSES,
Assets— total. . ..................................................
Cash and due from banks..............................
U. S. Government obligations.......................
Other securities................................................
Loans and discounts........................................
All other assets................................................
Table 121.
A
m ounts
and
R
a t io s
of
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, by
St a t e ,
1947—Continued
(Amounts, except ratios, in thousands of dollars)
Earnings or expense item
District of
Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
43,704
9,841
218,115
63,342
47,387
28,280
32,988
33,359
13,783
2,400
12,485
78
3,491
10,449
1,766
21,511
404
2,086
4,119
174
4,091
18
766
92,032
14,745
71,226
1,904
10,235
25,766
2,968
24,167
326
3,345
18,190
2,172
19,521
82
3,543
10,192
1,172
12,325
93
2,000
11,105
1,610
15,675
178
1,253
10,147
3,118
13,238
64
2,084
626
1,350
1,185
2,185
869
2,913
4,204
1,370
1,914
254
71
348
3,943
13,241
10,789
2,285
1,382
3,103
1,970
481
1,428
929
197
1,372
579
1,316
1,272
2,278
336
2,094
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 m oney. .
Taxes other than on net income....................
Recurring depreciation on banking house,
furniture and fixtures..............................
Other current operating expenses..................
15,121
2,390
5,421
24,492
4,476
6,889
27,882
5,509
6,771
5,904
1,287
1,690
140,072
23,647
41,801
41,365
7,835
10,123
28,899
7,633
6,339
16,832
5,006
3,788
18,713
4,559
4,726
21,410
3,986
5,548
196
1,546
7
1,169
207
2,742
32
941
347
3,091
60
2,296
40
852
8
155
997
22,470
88
7,744
513
7,422
6
3,892
305
4,819
8
998
259
1,189
12
804
282
1,724
47
1,449
294
2,597
4
1,950
426
3,966
897
8,308
634
9,174
162
1,710
2,215
41,110
916
10,658
585
8,212
427
5,347
389
5,537
502
6,529
Net current operating earnings...................
6,637
13,712
15,822
3,937
78,043
21,977
18,488
11,448
14,275
11,949
Recoveries and profits— total........................
Recoveries on securities..........................
Profits on securities sold or redeemed..........
Recoveries on loans.........................................
All other...........................................................
1,250
82
480
528
160
2,313
281
1,529
181
322
2,277
181
1,065
581
450
45
71
69
36
24,111
7,157
7,346
3,980
5,628
4,816
875
1,855
638
1,448
1,969
337
744
534
354
1,566
141
347
494
584
2,353
339
997
584
433
1,599
278
630
365
326
Losses and charge-offs— total.......................
On securities.....................................................
On loans...........................................................
All other...........................................................
1,027
347
285
395
2,558
1,673
554
331
2,559
557
1,486
516
635
363
142
130
24,010
14,511
6,363
3,136
6,330
2,914
1,993
1,423
3,623
1,722
1,142
759
2,366
1,149
806
411
2,694
1,223
938
533
2,978
1,151
1,243
584
Net profits before income taxes...................
6,860
13,467
15,540
3,523
78,144
20,463
16,834
10,648
13,934
10,570
Taxes on net income— total..........................
Federal..............................................................
State
. . .
...
1,849
1,849
4,182
4,182
4,404
4,404
938
926
12
17,983
17,983
6,139
6,139
4,725
4,725
2,696
2,696
3,594
3,594
2,843
2,843
Net profits after taxes.....................................
5,011
9,285
11,136
2,585
60,161
14,324
12,109
7,952
10,340
7,727
Dividends and interest on capital— total..
Dividends on preferred stock and interest on
capital notes and debentures..................
Cash dividends declared on common stock ..
2,197
2,238
4,115
652
20,028
3,943
3,398
2,268
3,230
2,134
2,197
7
2,231
11
4,104
2
650
22
20,006
145
3,798
63
3,335
15
2,253
48
3,182
44
2,090
2,814
7,047
7,021
1,933
40,133
10,381
8,711
5,684
7,110
5,593
Net additions to capital from profits........
221
CO R P O R A TIO N
38,204
8,311
852
7,744
30
1,660
INSURANCE
21,758
DEPOSIT
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..................
AVERAGE ASSETS AN D L IABILIT IES1
Assets— total......................................................
Cash and due from banks..............................
U. S. Government obligations.......................
Other securities................................................
Loans and discounts.......................................
All other assets................................................
1,091,912
275,138
545,651
42,490
210,669
17,964
1,805,865
464,965
920,720
97,910
303,340
18,930
1,763,106
482,528
695,604
65,283
502,639
17,052
435,038
94,513
247,928
8,622
81,491
2,484
11,936,658
2,810,784
5,940,342
708,028
2,407,211
70,293
3,023,666
692,855
1,611,289
152,346
546,490
Liabilities and capital— total.......................
Total deposits..................................................
Demand deposits ...........................................
Time and savings deposits...........................
Borrowings and other liabilities....................
Total capital accounts....................................
1,091,912
1,020,272
1,805,865
1,705,733
1,763,106
1,651,622
435,038
416,842
3,023,666
2,853,395
2,320,642
2,201,687
1,445,440
1,371,013
1,581,364
1,478,463
795,541
224,731
11,936,658
11,222,628
1,363,110
342,623
1,339,246
312,376
325,685
91,157
8,488,375
2,734,253
2,028,346
825,049
1,692,710
508,977
1,228,908
142,105
1,264,591
213,872
12,141
99,343
1,028
17,168
52,414
661,616
7,632
162,639
2,532
116,423
2,384
72,043
5,485
97,416
Number of active officers, December 31 ..........
Number of other employees, December 3 1 ... .
324
2,545
915
3,669
1,225
3,677
259
965
4,015
19,070
2,005
5,697
1,955
3,941
1,447
2,303
1,285
3,022
778
2,908
Number of banks, December 31........................
19
180
311
47
867
473
602
452
362
159
EXPENSES,
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
AND
38.20
3.91
35.73
22.16
36.08
6.28
32.88
24.76
23.91
4.04
50.14
21.91
41.86
1.77
41.75
14.62
42.19
6.76
33.53
17.52
40.68
4.68
38.67
15.97
38.39
4.58
41.37
15.66
36.04
4.14
43.91
15.91
33.66
4.88
48.06
13.40
30.42
9.35
39.87
20.36
69.50
36.80
7.11
5.37
64.11
30.29
7.18
2.46
24.18
63.80
28.89
7.07
5.26
22.58
59.99
30.66
1.57
19.10
64.22
30.47
10.30
3.55
19.90
65.30
29.16
11.72
6.14
18.28
60.99
30.13
10.17
18.58
59.52
32.01
4.21
2.84
20.46
56.73
29.00
5.23
4.39
18.11
64.18
29.46
7.79
5.84
21.09
2.48
1.58
.90
2.26
1.36
.90
1.83
1.18
.65
2 .1 0
1.37
.73
2.04
1.24
.80
1.96
1.17
.79
2.08
1.18
.90
4.14
15.06
3.80
9.09
3.03
8.81
2.42
10.40
2.92
11.04
3.15
10.61
3.32
9.96
2.75
5,677
94,455
1,445,440
380,080
712,318
84,187
261,981
6,874
1,581,364
397,248
741,773
67,087
366,607
8,649
1,647,888
476,961
698,464
140,152
313,098
19,213
1,647,888
1,561,007
1,283,637
277,370
9,287
77,594
RATIOS
2 0 .2 2
8 .6 6
2 .1 1
2 .1 2
Amounts per $100 of total capital
accounts1
Net profits after income taxes...........................
Cash dividends declared.....................................
7.65
3.36
9.83
2.37
3.69
1.56
4.14
1.59
4.36
1.61
5.04
1.67
3.04
1.61
4.48
1.63
4.45
1.52
4.74
1.43
4.32
1.57
4.25
1.58
.69
.80
.99
.93
.82
.90
.95
.84
.81
.94
Special ratios1
Income on loans per $100 of loans....................
Income on securities per $100 of securities.. . .
Interest paid per $100 of time and savings
deposits.....................................................
1.36
.76
1 1 .2 1
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures— See the Annual Report for 1946, pp. 152-161.
2 .0 2
1.30
.72
BANKS
1.99
1.38
.61
INSURED
Amounts per $100 of total assets1
Current operating earnings— total....................
Current operating expenses— total....................
Net current operating earnings.........................
OF
Current operating expenses— total.............
Salaries, wages, and fees................................
Interest on time and savings deposits..........
Taxes other than on net income....................
All other current operating expenses............
DIVIDENDS
Amounts per $100 of current operating
earnings
Current operating earnings—total.............
Interest and dividends on:
United States Government obligations. . .
Other securities..........................................
Income on loans...............................................
All other current operating earnings............
EARNINGS,
6,166
65,474
2 0 ,6 8 6
2,320,642
527,139
1,197,850
143,599
440,414
11,640
Table 121.
A m ounts
and
R
a t io s
of
E
a r n in g s ,
E xpen ses,
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
St a t e ,
1947—Continued
(Amounts, except ratios, in thousands of dollars)
Earnings or expense item
Maine
Maryland Massachusetts Michigan Minnesota Mississippi
Missouri
Montana
Nebraska
Nevada
New
Hampshire
63,758
19,806
80,149
11,229
24,609
4,434
6,432
39,986
5,147
44,832
756
5,204
22,956
2,711
23,689
217
3,082
4,802
2,407
7,871
27
1,029
25,314
4,435
39,135
272
3,372
4,707
367
4,070
42
844
9,649
1,034
9,585
29
1,673
1,377
161
2,280
36
154
1,901
407
3,025
224
313
355
670
916
1,157
2,095
7,382
7,489
3,184
1,387
3,382
6,789
1,731
2,583
2,995
73
602
2,047
2,430
3,144
620
49
530
1,085
255
1,299
217
123
115
306
8,070
1,324
1,934
21,121
3,248
5,772
62,780
10,155
20,374
70,414
20.840
41,980
9,344
10,443
12,376
3,031
2,754
49,639
9,887
14,474
6,929
1,572
1,591
14,895
4,035
3,459
2,746
454
764
4,298
828
953
125
2,041
9
403
347
3,977
60
1,436
565
7,231
72
2,274
600
16.840
60
3,402
541
8,320
480
5,212
107
3,081
51
674
75
899
813
192
1,066
47
778
9
656
859
174
1,140
3
1,034
183
186
135
2,099
348
5,933
1,542
20,567
1,312
17,260
630
11,757
4,018
905
15,493
144
2,084
263
5,055
58
622
Net current operating earnings...................
3,823
10,360
32,330
33,464
21,778
7,430
30,510
4,300
9,714
1,688
2,134
Recoveries and profits— total........................
1,047
219
496
188
144
2,072
487
864
375
346
8.318
1,282
3,592
2.318
1,126
4,917
918
2,782
770
447
3,487
900
849
874
864
1,012
246
206
321
239
6,763
1,566
1,963
1,984
1,250
796
226
85
414
71
1,293
273
332
386
302
39
4
5
20
645
177
278
115
75
Losses and charge-offs— total.......................
1,155
479
342
334
1,916
1,256
393
267
11,566
3,607
4,828
3,131
5,502
1,969
2,387
1,146
4,979
2,318
1,253
1,408
2,374
1,307
740
327
7,557
3,561
2,436
1,560
1,908
1,056
611
241
2,026
987
816
223
138
33
70
35
552
342
176
34
Net profits before income taxes...................
3,715
10,516
29,082
32,879
20,286
6,068
29,716
3,188
8,981
1,589
2,227
2,016
2,016
440
440
675
675
6,965
1,149
1,552
149
508
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............
Other current operating earnings..................
Current operating expenses—total.............
Salaries and wages—employees................... .
Fees paid to directors and members of
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..................
Profits on securities sold or redeemed..........
Net profits after taxes.....................................
Dividends and interest on capital— total..
Dividends on preferred stock and interest on
capital notes and debentures..................
Cash dividends declared on common stock..
Net additions to capital from profits.........
1 0 ,1 0 0
86
222
1,130
1,130
3,355
3,355
8,498
6,711
1,787
7,786
7,786
6,027
4,949
1,078
1,324
1,324
7,389
7,306
83
1,011
969
42
2,585
7,161
20,584
25,093
14,259
4,744
22,327
2,177
10
127
1 ,2 2 0
885
1,978
1,231
91
7,861
4
881
1,972
149
502
3,412
14,375
1,292
4,987
1,000
1,044
12,033
7,813
4,889
1,332
896
41
3,261
92
11,941
256
7,557
46
4,843
1,601
3,859
8,551
17,280
9,370
88
10
7,952
3,302
984
88
121
11
544
101
6
6
CO R P O R A TIO N
103,878
33,178
3,527
35,807
612
5,020
INSURANCE
95,110
13,412
1,232
12,659
104
1,331
DEPOSIT
31,481
4,144
687
5,451
18
701
FEDERAL
11,893
Current operating earnings— total.............
Interest and dividends on:
United States Government obligations. . .
AV ERA G E ASSETS AN D LIA B IL ITIE S1
458,847
82,284
229,460
25,839
117,295
3,969
1,573,127
345,791
833,602
52,309
324,740
16,685
4,311,118
953,005
2,037,632
138,169
1,118,681
63,631
4,919,654
984,857
2,566,628
299,644
1,033,065
35,460
2,880,923
674,541
1,432,050
150,095
604,592
19,645
792,553
212,653
315,981
105,816
152,462
5,641
4,225,290
1,154,909
1,755,123
198,930
1,087,066
29,262
551,095
139,869
315,448
18,064
74,639
3,075
1,306,456
358,045
662,518
68,933
210,255
6,705
172,176
31,458
87,254
8,769
42,967
1,728
230,643
50,924
97,389
15,456
64,911
1,963
Liabilities and capital— total.......................
Total deposits...................................................
Demand deposits...........................................
Time and savings deposits...........................
Borrowings and other liabilities....................
Total capital accounts....................................
458,847
420,250
229,8^0
190,410
2,385
36,212
1,573,127
1,469,471
1,027,919
441,552
5,891
97,765
4,311,118
3,913,903
3,109,066
804,837
51,722
345,493
4,919,654
4,646,410
2,574,470
2,071,940
19,345
253,899
2,880,923
2,706,386
1,872,890
833,496
12,247
162,290
792,553
749.289
617.290
131,999
1,583
41,681
4,225,290
3,985,641
3,341,196
644,445
14,417
225,232
551,095
527,517
433,304
94,213
917
22,661
1,306,456
1,237,571
1,100,852
136,719
5,546
63,339
172,176
163,253
108,927
54,326
1,617
7,306
230,643
207,914
139,836
68,078
1,156
21,573
EARNINGS,
Number of active officers, December 3 1 ..........
Number of other employees, December 31. . . .
299
1,110
711
3,276
1,448
9,882
1,788
9,877
2,347
5,715
754
1,656
2,258
7,985
379
940
1,097
2,087
89
384
197
554
Number of banks, December 31........................
54
164
179
419
651
202
566
112
360
8
57
EXPENSES,
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
34.84
5.78
45.99
13.39
42.60
3.92
40.54
12.94
34.88
3.71
38.29
23.12
38.49
4.95
43.89
12.67
36.00
4.25
37.49
22.26
24.25
12.14
39.88
23.73
31.58
5.53
49.17
13.72
41.92
3.27
36.62
18.19
39.21
4.20
39.07
17.52
31.06
3.63
52.23
13.08
29.55
6.33
47.20
16.92
Current operating expenses— total.............
Salaries, wages, and fees................................
Interest on time and savings deposits..........
Taxes other than on net income....................
All other current operating expenses............
67.86
28.45
17.16
3.39
18.86
67.09
29.76
12.63
4.56
20.14
66.00
32.69
7.60
2.39
23.32
67.79
30.36
16.21
3.27
17.95
65.84
31.88
13.05
1.35
19.56
62.49
30.09
5.76
5.22
21.42
61.93
30.99
6.50
3.85
20.59
61.70
28.62
6.00
7.24
19.84
60.52
31.23
4.33
3.16
21.80
61.93
27.67
14.79
4.13
15.34
66.82
28.85
13.98
2.89
21.10
Amounts per $100 of total assets1
Current operating earnings— total....................
Current operating expenses— total....................
Net current operating earnings.........................
2.59
1.76
.83
2.00
1.34
.66
2.21
1.46
.75
2.11
1.43
.68
2.21
1.46
.75
2.50
1.56
.94
1.90
1.18
.72
2.04
1.26
.78
1.88
1.14
.74
2.57
1.59
.98
2.79
1.86
.93
Amounts per $100 of total capital
accounts1
Net profits after income taxes...........................
Cash dividends declared.....................................
7.14
2.72
7.32
3.38
5.96
3.48
9.88
3.08
8.79
3.01
11.38
3.20
9.91
3.53
9.61
3.91
11.00
3.12
15.73
2.04
7.19
2.35
4.66
1.89
3.93
1.65
3.26
1.69
4.41
1.57
3.95
1.62
5.18
1.71
3.63
1.52
5.51
1.52
4.57
1.46
5.39
1.60
4.68
2.05
1.07
.90
.90
.81
1.00
.86
.81
.72
.78
1.21
1.32
RATIOS
BANKS
INSURED
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures— See the Annual Report for 1946, pp. 152-161.
OF
Special ratios1
Income on loans per $100 of loans....................
Income on securities per $100 of securities. . . .
Interest paid per $100 of time and savings
deposits.....................................................
DIVIDENDS
Amounts per $100 of current operating
earnings
Current operating earnings— total.............
Interest and dividends on:
United States Government obligations. . .
Other securities............................................
Income on loans.............................................
All other current operating earnings............
AND
Assets— total......................................................
Cash and due from banks..............................
U. S. Government obligations.......................
Other securities................................................
Loans and discounts.......................................
All other assets................................................
Table 121.
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
St a t e ,
1947—Continued
(Amounts, except ratios, in thousands of dollars)
Earnings or expense item
New
Jersey
New
York
New
Mexico
North
Carolina
North
Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode
Island
South
Carolina
10,180
151,287
35,228
30,251
247,178
15,033
13,636
12,406
2,410
17,870
419
2,237
4,382
297
2,362
57
553
55,018
9,085
61,131
686
7,412
9,613
1,962
17,681
161
2,442
11,933
1,864
12,389
64
1,621
90,392
25,344
86,130
694
7,306
6,786
561
5,191
16
568
4,234
761
5,420
28
1,191
1,629
4,535
4,874
220
38
262
13,141
51,694
47,173
3,764
1,262
1,151
2,128
35
366
3,216
6,536
8,203
1,113
273
1,983
789
579
1,012
4,015
18,839
14,458
172
610
1,129
1,500
263
239
75,372
11,466
20.263
4,263
949
1,279
386,285
58,027
152,629
25,214
5,439
6,341
103,462
14,545
26,012
20,060
5,478
5,406
18,497
3,171
6,399
155,766
25,217
44,860
10,161
1,293
2,537
7,952
1,961
2,213
1,117
16,304
97
4,454
35
348
230
3,258
54
997
89
988
243
2,757
27,809
1,073
14,219
194
933
20,748
110
12,962
190
950
11
509
70
3,288
7
459
2,256
26,235
214
8,470
88
2,566
21
705
91
771
4
132
2,407
19.264
76
1,332
6,419
123,352
628
8,267
119
1,835
2,238
25,914
635
6,881
470
4,633
4,026
44,488
243
2,708
182
2,598
30,752
2,906
222,097
16,305
4,170
47,825
15,168
11,754
91,412
4,872
5,684
Recoveries and profits— total.......................
Recoveries on securities..................................
Profits on securities sold or redeemed..........
Recoveries on loans.........................................
All other...........................................................
13,826
2,845
4,731
3,488
2,762
569
97
20
226
226
63,369
7,247
27,026
16,289
12,807
1 ,6 8 8
56
792
313
527
309
26
48
90
145
10,059
1,382
4,132
1,600
2,945
1,999
140
740
551
568
1,961
90
1,563
132
176
31,875
10,526
10,485
5,002
5,862
1,015
219
287
305
204
525
258
98
57
112
Losses and charge-offs—total.......................
668
On loans...........................................................
All other...........................................................
10,797
5,721
3,139
1,937
177
380
111
59,617
18,754
28,011
12,852
2,754
1,097
758
899
659
253
134
272
12,206
4,773
4,526
2,907
2,271
564
1,133
574
2,256
1,628
479
149
34,250
19,006
8,160
7,084
1,655
345
476
834
758
465
173
120
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..................
Current operating expenses— total.............
Salaries and wages— employees.....................
Fees paid to directors and members of
Interest on time and savings deposits..........
Interest and discount on borrowed m oney. .
Taxes other than on net income. ..................
Recurring depreciation on banking house,
furniture and fixtures..............................
Other current operating expenses..................
Net current operating earnings...................
1
6 ,0 1 0
1,599
1,186
Net profits before income taxes...................
33,781
2,807
225,849
15,239
3,820
45,678
14,896
11,459
89,037
4,232
5,451
Taxes on net income— total..........................
9.049
9.049
674
673
1
61,028
51,962
9,066
4,586
4,451
135
1,005
954
51
12.872
12.872
4,225
3,641
584
3,496
2,604
892
25.669
25.669
1,588
1,392
196
1,479
1,281
198
Net profits after taxes.....................................
24,732
2,133
164,821
10,653
2,815
32,806
10,671
7,963
63,368
2,644
3,972
Dividends and interest on capital— total.
Dividends on preferred stock and interest on
capital notes and debentures..................
Cash dividends declared on common stock ..
7,558
403
92,374
2,820
692
11,476
3,585
1,298
30,264
1.527
972
1,605
5,953
3
400
1,408
90,966
25
2,795
5
687
547
10,929
1
3,584
3
1,295
170
30,094
1.527
4
968
17,174
1,730
72,447
7,833
2,123
21,330
7,086
6,665
33,104
1,117
3,000
Net additions to capital from profits........
CO R PO R ATIO N
41,519
230,207
32,742
208,288
4,967
20,170
INSURANCE
608,382
1,611
249
4,379
9
401
DEPOSIT
7,169
43,383
8,505
37,267
189
5,742
FEDERAL
106,124
Current operating earnings— total.............
Interest and dividends on:
United States Government obligations. . .
AVERAGE ASSETS AND L IAB ILITIES1
283.625 33.655.133
82,946 7,737,971
112,249 15,766,024
11,314 1,532,940
75,533 8,214,570
1,583
403,628
1.885.848
486,899
828,512
118,345
433,380
18,712
485.136
91,313
325,037
20,395
46,005
2,386
7.198.463
1,552,771
3,490,815
465,561
1,624,592
64,724
1.564.407
486,603
668,934
103,552
295,169
10,149
1.390.085
311,473
686,276
92,853
283,041
16,442
10.661.305
2,233,593
5,067,713
965,776
2,247,299
146,924
687.159
117,590
406,798
15,705
135,531
11,535
674.723
188,855
319,457
39,690
122,342
4,379
Liabilities and capital— total.......................
Total deposits..................................................
Demand deposits...........................................
Time and savings deposits...........................
Borrowings and other liabilities....................
Total capital accounts....................................
4.648.797
4,328,026
2,330,01+9
1,997,977
20,345
300,426
283.625 33.655.133
271,347 30,418,990
230,91+5 26,590,21+7
1+0,1+02 3,828,71+3
292
535,980
11,986 2,700,163
1.885.848
1,771,795
1,1+26,096
31+5,699
15,594
98,459
485.136
465,278
361+,937
100,31+1
845
19,013
7.198.463
6,737,989
1+,207,926
2,530,063
32,170
428,304
1.564.407
1,467,421
1,351+,050
113,371
4,301
92,685
1.390.085
1,318,380
928,631
389,71+9
5,930
65,775
10.661.305
9,575,406
6,613,272
2,962,131+
60,633
1,025,266
687.159
631,899
1+08,966
222,933
6,577
48,683
674.723
642,185
556,098
86,087
1,726
30,812
EARNINGS,
Number of active officers, December 3 1 ..........
Number of other employees, December 31. . . .
2,010
9,826
209
688'
6,518
60,440
1,123
3,423
460
790
2,925
12,886
1,405
3,143
665
3,075
4,695
22,398
208
1,539
471
1,222
Number of banks, December 31........................
339
47
651
223
146
654
375
68
978
14
127
EXPENSES,
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
40.88
8.01
35.30
15.81
22.47
3.47
61.21
12.85
37.84
5.38
35.05
21.73
29.88
5.80
44.05
20.27
43.04
2.92
23.76
30.28
36.37
6.00
40.86
16.77
27.29
5.57
50.65
16.49
39.45
6.16
41.16
13.23
36.57
10.25
35.13
18.05
45.14
3.73
34.64
16.49
31.05
5.58
39.95
23.42
Current operating expenses— total.............
Salaries, wages, and fees................................
Interest on time and savings deposits..........
Taxes other than on net income....................
All other current operating expenses............
71.02
30.95
15.36
4.20
20.51
59.46
31.57
4.85
3.39
19.65
63.49
35.08
4.57
2.34
21.50
60.73
28.93
7.85
2.40
21.55
59.04
28.23
9.71
1.91
19.19
68.39
27.43
13.71
8.57
18.68
56.94
31.43
2.70
1.44
21.37
61.15
31.87
10.87
1.52
16.89
63.02
29.27
10.61
3.43
19.71
67.59
26.06
17.07
4.69
19.77
58.32
31.28
5.65
.97
20.42
Amounts per $100 of total assets1
Current operating earnings— total....................
Current operating expenses— total....................
Net current operating earnings..........................
2.28
1.62
.66
2.53
1.50
1.03
1.81
1.15
.66
2.20
1.34
.86
2.10
1.24
.86
2.10
1.44
.66
2.25
1.28
.97
2.18
1.33
.85
2.32
1.46
.86
2.19
1.48
.71
2.02
1.18
.84
Amounts per $100 of total capital
accounts1
Net profits after income taxes...........................
Cash dividends declared.....................................
8.23
2.52
17.80
3.36
6.10
3.42
10.82
2.86
14.81
3.64
7.66
2.68
11.51
3.87
12.11
1.97
6.18
2.95
5.43
3.14
12.89
3.15
4.20
1.78
5.81
1.51
2.60
1.52
4.22
1.56
5.26
1.35
3.81
1.62
6.04
1.50
4.40
1.77
3.86
1.92
3.84
1.74
4.45
1.39
.82
.86
.73
.94
.98
.82
.84
.84
.89
1.1-5
.90
RATIOS
BANKS
INSURED
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures— See the Annual Report for 1946, pp. 152-161.
OF
Special ratios1
Income on loans per $100 of loans....................
Income on securities per $100 of securities. . . .
Interest paid per $100 of time and savings
deposits.....................................................
DIVIDENDS
Amounts per $100 of current operating
earnings
Current operating earnings— total.............
Interest and dividends on:
United States Government obligations. . .
Other securities............................................
Income on loans...............................................
All other current operating earnings............
AND
Assets— total...................................................... 4.648.797
Cash and due from banks..............................
784,964
U. S. Government obligations....................... 2,529,994
Other securities................................................
379,516
Loans and discounts.......................................
891,648
All other assets.................................................
62,675
Table 121.
A
m ounts
and
R
a t io s
of
E
a r n in g s ,
E xpen ses,
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
St a te ,
1947—Continued
(Amounts, except ratios, in thousands of dollars)
Current operating earnings— t o ta l.............
Interest and dividends on:
United States Government obligations. . .
Salaries— officers..................................................
Salaries and wages— employees.......................
Fees paid to directors and members of
Texas
Utah
Vermont
Virginia
Washington
West
Virginia
Wisconsin
Wyoming
11,460
44,812
126,156
14,053
8,499
47,530
47,147
22,856
60,730
5,183
3,737
471
4,116
31
872
12,382
3,262
22,528
176
1,515
33,350
5,575
66,447
492
6,756
3,680
371
7,666
127
713
1,953
606
5,083
35
367
13,645
1,975
25,049
358
2,216
13,932
3,136
23,050
188
2,878
7,969
1,021
10,838
139
909
26,615
3,708
21,860
310
2,943
1,536
199
2,480
5
397
1,690
49
494
2,261
892
1,796
4,150
1,788
7,598
660
343
493
117
100
238
1,063
1,632
1,592
1,576
972
1,415
464
558
958
1,924
833
2,537
205
62
299
6,761
2,031
1,401
26,104
4,976
6,716
76,894
17,817
20,577
8,253
1,538
2,296
5,797
842
1,111
29,000
5,737
7,087
30,556
5,609
10,090
13,244
2,590
3,231
41,254
8,269
9,235
3,155
815
789
229
3,787
24
1,945
829
3,936
30
7,633
145
1,542
18
201
121
2,146
10
145
422
5,653
28
1,655
134
5,157
13
617
191
2,700
34
532
639
10,386
21
954
60
336
2
177
132
2,044
757
7,670
2,074
23,998
178
2,335
118
1,304
919
7,499
748
8,188
397
3,569
925
10,825
80
896
Net current operating earnin gs...................
4,699
18,708
49,262
5,800
2,702
18,530
16,591
9,612
19,476
2,028
Recoveries and profits— t o ta l........................
288
39
37
133
79
2,655
340
1,211
587
517
7,483
782
2,107
2,838
1,756
678
12
486
132
48
914
194
357
281
82
2,614
372
966
944
332
2,404
224
949
367
864
1,203
114
427
363
299
4,259
610
2,612
611
426
261
10
48
141
62
Losses and charge-offs— to ta l.......................
536
267
133
136
4,552
2,530
1,351
671
10,235
2,927
5,404
1,904
938
476
296
166
745
368
294
83
2,599
1,001
1,131
467
5,462
1,799
2,996
667
1,275
603
458
214
4,402
1,884
2,022
496
360
93
201
66
Net profits before in com e taxes...................
4,451
16,811
46,510
5,540
2,871
18,545
13,533
9,540
19,333
1,929
4,783
4,692
91
13.323
13.323
1,718
1,575
143
770
673
97
5.054
5.054
2.673
2.673
2.852
2.852
4,897
4,800
97
504
504
..............................................................
1,033
77
Net profits after taxes.....................................
3,341
12,028
33,187
3,822
13,491
10,860
14,436
1,425
Dividends and interest on capital— t o t a l..
729
3,653
12,360
1,213
581
4,239
2,977
1,885
4,474
398
Dividends on preferred stock and interest on
capital notes and debentures...................
Cash dividends declared on common stock..
7
722
68
3,585
59
12,301
10
1,203
152
429
90
4,149
23
2,954
28
1,857
168
4,306
24
374
Net additions to capital from p ro fits.........
2,612
8,375
20,827
2,609
1,520
9,252
7,883
4,803
9,962
1,027
Recoveries on securities.....................................
Profits on securities sold or redeemed...........
Recoveries on loans.............................................
Taxes on net in com e— t o t a l..........................
State
1 ,1 1 0
2 ,1 0 1
6 ,6 8 8
CO R PO R ATION
123
874
2
154
INSURANCE
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...................
DEPOSIT
Current operating expenses— t o ta l.............
Tennessee
FEDERAL
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....................
South
Dakota
152
Earnings or expense item
AVERAGE ASSETS AN D L IABILITIES1
506,670
115,756
286,012
25,266
76,753
2,883
1,973,637
525,876
789,334
134,406
504,498
19,523
5,991,477
1,942,040
2,262,173
255,238
1,475,168
56,858
572,057
134,355
257,268
17,074
159,908
3,452
268,188
37,421
94,823
25,683
107,658
2,603
1,898,345
437,726
814,003
80,584
544,058
21,974
2,036,423
491,147
873,931
138,899
518,599
13,847
936,245
214,779
470,513
41,602
199,792
9,559
3,029,762
604,641
1,664,979
181,649
555,679
22,814
237,302
68,845
112,359
9,817
44,966
1,315
Liabilities and capital— total.......................
Total deposits...................................................
Demand deposits...........................................
Time and savings deposits............................
Borrowings and other liabilities....................
Total capital accounts....................................
506,670
483,265
402,431
80,834
961
22,444
1,973,637
1,858,538
1,441,520
417,018
7,967
107,132
5,991,477
5,655,446
5,189,794
515,652
18,188
317,843
572,057
539,944
374,469
165,475
1,896
30,217
268,188
241,200
91,423
149,777
1,550
25,438
1,898,345
1,760,311
1,189,577
570,734
10,569
127,465
2,036,423
1,933,828
1,371,578
562,250
7,526
95,069
936,245
862,119
602,462
259,657
6,814
67,312
3,029,762
2,854,892
1,596,593
1,258,299
5,793
169,077
237,302
224,250
178,840
45,410
458
12,594
E A R N IN G S,
Number of active officers, December 3 1 ..........
Number of other employees, December 31.. . .
592
920
1,223
3,819
3,779
10,893
288
1,172
238
620
1,334
4,149
981
4,649
606
1,805
1,929
5,085
203
441
Number of banks, December 31.......................
170
289
828
60
69
314
120
177
543
55
EXPENSES,
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
$1 0 0 . 0 0
32.61
4.11
36.19
27.09
27.63
7.28
50.67
14.42
26.44
4.42
53.06
16.08
26.19
2.64
55.45
15.72
22.98
7.13
60.22
9.67
28.71
4.16
53.45
13.68
29.55
6.65
49.29
14.51
34.87
4.47
48.02
12.64
43.82
6.11
36.51
13.56
29.64
3.84
47.94
18.58
Current operating expenses— total.............
Salaries, wages, and fees..............................
Interest on time and savings deposits..........
Taxes other than on net income....................
All other current operating expenses............
59.00
31.02
7.63
1.34
19.01
58.25
26.60
8.45
4.34
18.86
60.95
31.09
3.12
6.05
20.69
58.73
28.32
10.97
1.43
18.01
6 8 .2 1
24.40
25.25
1.71
16.85
61.01
27.87
11.89
3.48
17.77
64.81
33.58
10.94
1.31
18.98
57.95
26.31
11.81
2.33
17.50
67.93
29.88
17.10
1.57
19.38
60.87
32.10
6.48
3.42
18.87
Amounts per $100 of total assets1
Current operating earnings— total....................
Current operating expenses— total....................
Net current operating earnings.........................
2.26
1.33
.93
2.27
1.32
.95
2.10
1.28
.82
2.45
1.44
1.01
3.17
2.16
1.01
2.50
1.53
.97
2.32
1.50
.82
2.44
1.41
1.03
2.00
1.36
.64
2.18
1.33
.85
Amounts per $100 of total capital
accounts1
Net profits after income taxes...........................
Cash dividends declared.....................................
14.89
3.25
11.23
3.41
10.44
3.89
12.65
4.01
8.26
2.28
10.58
3.33
11.42
3.13
9.94
2.80
8.54
2.65
11.31
3.16
5.40
1.35
4.50
1.69
4.54
1.55
4.87
1.48
4.75
2.12
4.67
1.75
4.48
1.69
5.49
1.76
3.99
1.64
5.53
1.42
1.08
.91
.76
.93
1.43
.99
.92
1.04
.83
.74
RATIOS
BANKS
INSURED
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures— See the Annual R eport for 1946, pp. 152-161.
OF
Special ratios1
Income on loans per $100 of loans....................
Income on securities per $100 of securities. . . .
Interest paid per $100 of time and savings
deposits.....................................................
DIVIDENDS
Amounts per $ 1 0 0 of current operating
earnings
Current operating earnings— total.............
Interest and dividends on:
United States Government obligations. . .
Other securities..........................................
Income on loans...........................................
All other current operating earnings............
AND
Assets— total......................................................
Cash and due from banks..............................
U. S. Government obligations.......................
Other securities................................................
Loans and discounts.......................................
All other assets................................................
154
Table
122.
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
M u t u a l S a v in g s B a n k s ,
1934, 1941-1947
(Amounts in thousands of dollars)
1943
1944
1945
1946
1947
76,287
273,479
295,709
322,795
350,951
375,592
26,554
1,195
31,212
1,119
137,950
1,241
140,002
1,260
141,001
1,627
142,538
1,893
151,174
2,114
12,955
18,068
17,134
16,923
76,510
24,607
97,856
29,694
135,627
24,652
171,139
22,609
184,900
24,386
123
10,652
154
9,745
321
32,850
538
26,359
1,033
18,855
1,301
11,471
1,329
11,689
23,344
24,520
87,847
86,575
77,705
85,523
93,613
208
22,866
2,205
5,080
316
5,432
2,715
5,915
389
5,104
9,467
19,792
1,704
17,015
10,093
20,658
1,903
14,838
10,567
22,179
855
8,410
11,967
26,938
1,045
7,243
13,271
31,247
1,142
6,891
743
9,654
3,046
36,823
3,359
35,724
2,649
33,045
2,574
35,756
2,550
38,512
18,866
f
1
44
3,850
Current operating expenses— total......................................
Salaries— officers....................................................................... |
Salaries and wages— employees...............................................
Directors’ , trustees’ , and managers’ fees1..............................
Taxes other than on net income. ............................ .............
Recurring depreciation on banking house, furniture and
fixtures3...............................................................................
Other current operating expenses...........................................
11,943
94
5,609
668
9,643
Net current operating earnings............................................
35,876
46,203
51,767
185,632
209,134
245,090
265,428
281,979
Dividends (interest) paid on deposits.................................
26,701
29,684
33,209
117,985
132,430
143,350
160,134
181,225
Net operating earnings after dividends on deposits.......
9,175
16,519
18,558
67,647
76,704
101,740
105,294
100,754
Profits and recoveries on assets— total...............................
Recoveries on securities4..........................................................
Profits on securities sold or exchanged..................................
Recoveries on loans4.................................................................
All other profits and recoveries5..............................................
5,481
23,014
19,092
129,160
101,473
181,982
186,720
99,548
833
1,355
702
2,591
3,432
13,996
462
5,124
5,164
7,112
653
6,163
40,402
31,376
11,094
46,288
31,423
30,677
14,763
24,610
47,560
79,389
4,055
50,978
34,920
89,554
2,097
60,149
32,443
27,770
1,266
38,069
Losses and charge-offs— total................................................
11,097
34,848
33,486
168,891
113,691
135,783
142,499
111,998
5,300
2,567
3,230
16,470
6,030
12,348
10,379
9,211
13,896
32,818
74,327
61,746
17,625
68,179
27,887
36,635
28,825
70,323
72,320
3,375
66,804
58,587
4,472
48,939
All other7....................................................................................
3,166
/
\
COR PO R ATIO N
69,547
24,602
457
INSURANCE
47,819
DEPOSIT
1
Interest and dividends on other securities............................
Collection and exchange charges, commissions, and fees. . .
Other current operating earnings...........................................
1942
FEDERAL
Current operating earnings— total......................................
Interest, discount, and other income on real estate loans. . .
Interest, discount, and income on other loans. . . ................
Interest on U . S. Government obligations, direct and
1941
1934
Earnings, expense, asset or liability item
Net profits before income taxes.............................
Taxes on net income................................................................
3,559
( 8)
4,164
27,916
97
33
345
4,588
4,131
27,571
64,486
122
147,939
149,515
2,034
5,759
5,992
145,905
143,756
82,312
88,304
91,550
344
318
294
482
271
264
248
2,009
4,244
3,813
27,277
63,882
145,634
143,492
82,064
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
12,066,095
416,762
530,271
6,345,344 ‘ 7,588,938
605,362
653,589
3,056,494
3,112,879
36,934
41,588
175,504
138,830
13,128,837
649,906
8,127,449
814,360
3,352,063
48,173
136,886
1,177,936
1,042,388
1 M2,388
8,399
127,149
1,973,635
1.803.002
1.803.002
7,248
163,385
2,089,328
1,900,429
1,900,U29
6,656
182,243
7,945,687
7,134,660
7,13k,660
22,331
788,696
9,164,873
8.280.998
8.280.998
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
13,128,837
11,869,717
13,565
11,856,152
42,064
1,217,056
317
2,823
363
2,884
1,209
9,581
1,276
9,719
1,337
10,852
1,410
11,414
1,494
11,599
52
56
184
192
192
191
194
Average assets and liabilities10
Assets— total.............................................................................
Cash and due from banks............................................................
U. S. Government obligations....................................................
Other securities...............................................................................
Real estate loans
Other loans and discounts
All other assets..........................................................................
.............................................
....................................
Liabilities and capital— total ................................
Total deposits........................................................................
Demand deposits...........................................
Time and savings deposits.................................................... }
Borrowings and other liabilities.............................................
Total surplus and capital accounts............................................
Number of active officers, December 3 1 .................................
Number of other employees, December 31...............................
Number of banks, December 3112.....................................
(»)
01)
68
INSURED
BANKS
155
OF
1 Includes professional fees from 1941 through 1944.
2 Includes income taxes.
! t11
an j ^or ^anks no^ submitting reports to FDIC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
4 In 1934, and in 1941-1944; and for banks not submitting reports to FDIC in 1945-1947, includes reductions in valuation allowances.
5 In 1945-1947 for banks submitting reports to FDIC, includes all reductions in valuation allowances.
6 In 1934, and in 1941-1944; and for banks not submitting reports to FDIC in 1945-1947, includes additions to valuation allowances.
7 In 1945-1947 for banks submitting reports to FDIC, includes all additions to valuation allowances.
8 Not available; see footnote 2.
9 Also includes interest on borrowed money.
10 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
11 Not available.
12 For 1941-1947, includes three mutual savings banks, members of the Federal Reserve System.
Back figures—See the Annual Report for 1941, p. 173.
DIVIDENDS
Interest paid on capital notes and debentures................
Net profits after interest and dividends.............................
64,364
AND
3,559
EXPENSES,
Net profits after income taxes...............................................
E A R N IN G S,
4,685
Oi
05
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 M u t u a l S a v in g s B a n k s , 1934, 1941-1947
Earnings or expense item
1941
1942
1943
1944
1945
1946
1947
$1 0 0 . 0 0
50.44
.46
2 .97
9.00
.12
12.01
$1 0 0 . 0 0
47.34
.43
33.09
10.04
.18
8.92
$1 0 0 . 0 0
43.68
.50
42.02
7.64
.32
5.84
$1 0 0 . 0 0
40.62
.54
48.76
6.44
.37
3.27
$1 0 0 . 0 0
40.25
.56
49.23
6.49
.36
3.11
24.98
7.06
25.99
33.57
10.93
7.81
32.14
11.82
6.69
32.12
11.32
6.22
29.28
11.04
5.02
24.07
10.41
2.60
24.37
11.38
2.06
24.92
12.16
1.83
Other current operating expenses...........................................
.20
11.73
.96
13.87
.97
12.66
1.11
13.47
1.14
12.08
.82
10.24
.74
10.19
.68
10.25
Net current operating earnings............................................
<75.02
66.43
67.86
67.88
70.72
75.93
75.63
75.08
Dividends (interest) paid on deposits.................................
55.84
42.68
43.53
43.14
44.78
44.41
45.63
48.25
Net operating earnings after dividends on deposits.......
19.18
23.75
24.33
24.74
25.94
31.52
30.00
26.83
Amounts per $100 of total assets5
Current operating earnings— total.............................................
Current operating expenses—total.............................................
Net current operating earnings. . . . ...........................................
Dividends (interest) paid on deposits........................................
Net operating earnings after dividends on deposits.................
Recoveries and profits—total......................................................
Losses and charge-offs— total......................................................
Net profits before income taxes..................................................
Net additions to surplus and capital accounts.........................
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
3.44
1.10
2.34
1.49
.85
1.63
2.13
.35
.34
3.23
.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
2.86
•71
2.15
1.38
.77
.76
.86
.67
.63
Interest on U. S. Government obligations............................ 1
Interest and dividends on other securities............................
Collection and exchange charges, commissions, and fees. . .
Other current operating earnings...........................................
Current operating expenses— total......................................
Salaries, wages and fees1..........................................................
Taxes other than on net income.............................................
Recurring depreciation on banking house, furniture and
C O R POR ATIO N
$1 0 0 . 0 0
40.91
1.47
22.46
22.18
.20
12.78
INSURANCE
$1 0 0 . 0 0
38.18
1.72
18.63
25.98
.17
15.32
$1 0 0 . 0 0
51.45
.96
/
39.45 \
.09
8.05
DEPOSIT
Amounts per $100 of current operating earnings:
Current operating earnings— total......................................
1934
FEDERAL
Table 123.
4.46
3.48
4.09
4.39
3.40
4.72
3.72
4.44
4.41
4.54
4.15
4.61
4.41
4.58
4.55
4.51
4.39
2.23
4.05
2.36
2.30
3.71
2.07
4.72
2.14
4.07
2.26
3.46
2.28
2.99
4.07
1.65
1.60
1.49
1.47
1.53
2.09
3.46
7.43
15.15
12.93
6.74
100.00
100.00
100.00
6.22
100.00
100.00
9.36
29.48
22.59
32.42
6.15
100.00
6.77
34.73
19.91
33.11
5.48
100.00
4.91
51.53
34.00
2.70
3.92
59.66
5.69
29.08
1.65
4.40
62.89
5.42
26.14
1.15
100.00
5.57
11.90
27.25
47.99
7.29
Liabilities and capital— t o ta l.............................................
Total deposits........................................................................
Demand deposits................................................................
Time and savings deposits.................................................
Borrowings and other liabilities.........................................
Total capital accounts.........................................................
100.00
100.00
100.00
100.00
100.00
100.00
91.35
90.96
90.96
.32
8.72
100.00
89.79
89.79
.28
9.93
100.00
88.49
8849
.71
10.80
90.36
90.36
.26
9.38
90.71
90.53
90.41
Number of banks, December 31.............................................
68
Assets and liabilities per $100 o f total assets5
Assets— t o t a l...........................................................................
Cash and due from banks...................................................
U. S. Government obligations............................................
Other securities.....................................................................
Loans and discounts.............................................................
All other assets......................................................................
.37
8.28
41.80
8.35
39.43
4.20
184
6.86
.11
.25
9.0,4
90.42
.27
9.20
4.95
61.91
6.20
25.90
1.04
.10
90.31
.32
9.27
194
INSURED
BANKS
OF
1 Includes professional fees from 1941 through 1944.
2 Includes income taxes.
3 In 1934, and for banks not submitting reports to FDIC in 1941, consists of regular and extraordinary depreciation allowances on banking house, furniture and fixtures.
4 See footnote 2.
6 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
DIVIDENDS
1.75
2.60
AND
1.65
1.58
EXPENSES,
2.56
EARNINGS,
Special ratios5
Income on real estate loans per $100 of real estate loans...
Income on other loans per $100 of other loans....................
Interest on U. S. Government obligations per $100 of U. S.
Government obligations...............................................
Income on other securities per $100 of other securities.......
Dividends paid on deposits per $100 of time and savings
deposits..............................................................................
Net additions to surplus and capital accounts per $100 of
total surplus and capital accounts.............................
Cn
D
e p o s it
Insurance D
is b u r s e m e n t s
Table 124. 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, 1934-1947
Banks grouped by class of bank, year of disbursement, amount of deposits, and
State
Table 125. Assets and liabilities of insured banks placed in receivership and of insured banks
merged with the financial aid of the Federal Deposit Insurance Corporation,
1934-1947
A s shown by books of bank at date of closing
Table 126. Name, location, Federal Deposit Insurance Corporation disbursement, and assets
and liabilities of insured banks merged with the financial aid of the Corporation
during 1947
Table 127. 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, 1934-1947
,
A s shown by books of F D IC December 31, 1947
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.
from the deposits in Table 125 which are taken from books of the
bank at date of closing. This is because the former include deposits
discovered or reclassified after the date of a bank’s closing.
Details of the mergers during 1947 are given in Table 126. The
disbursements by the Corporation wTere made to purchase assets from
the selling bank which were not acceptable to the purchasing bank.
Books of bank at date of closing; and books of FDIC, December
31, 1947.
Sources of data:
DISBURSEMENTS
Deposits of insured banks placed in receivership as given in Table 124
are taken from the books of FDIC at the end of the year and will differ
One noninsured bank failed in 1947. The Brooklet Banking Company,
Brooklet, Georgia, with deposits of $167,000, closed October 7, 1947.
For suspensions of noninsured banks in previous years, see the Annual
Reports of the Corporation, 1943, page 102, and 1946, page 167.
INSURANCE
Non insured bank failures:
DEPOSIT
The table “Depositors and deposits of insured banks placed in
receivership,” by years, which appeared in previous reports, has been
omitted since there has been no receivership for three years. Total
figures may be found in Table 2. For definitions of the terms used in
that table, and the detailed figures as shown by the books of the Cor
poration for December 31, 1946, see the Annual Report of the Corpora
tion for 1946, pages 167 and 171.
C7t
CD
Table 124.
of
D
is b u r s e m e n t s
Insured B
anks
by
the
P laced
in
F ederal D
R
e p o s it
e c e iv e r s h ip
or
I n s u r a n c e C o r p o r a t io n
M
erged
w it h
to
P rotect D
F in a n c ia l A
the
id
of
e p o s it o r s ;
th e
N
um ber
and
D
e p o s it s
C o r p o r a t i o n , 1934-1947
BAN KS GROUPED B Y CLASS OF BAN K, YEAR OF DISBURSEMENT, AMOUNT OF DEPOSITS, AND STATE
Disbursements by FDIC
(in thousands of dollars)
Number of banks
Deposits (in thousands of dollars)
Receiver
ships1
Total
Mergers1
Receiver
ships
Total
Mergers
Total
Receiver
ships1
Mergers2
177,145
404
245
159
512,223
109,603
402,620
46,879
99,475
117,830
14,808
20,934
51,297
32,071
78,541
66,533
68
20
316
21
6
218
47
14
98
100,165
179,093
232,965
19,474
26,550
63,579
80,691
152,543
169,386
Calendar year
1934....................................................................
1935....................................................................
1936.....................................................................
1937....................................................................
1938....................................................................
941
8,890
14,833
19,202
30,512
941
6,025
8,056
12,045
9,092
2,865
6,777
7,157
21,420
9
25
69
75
74
9
24
42
50
50
1
27
25
24
1,968
13’,320
27,528
33,345
59,724
1,968
9’,091
11,241
14,960
10,296
4,229
16,287
18,385
49,428
1939....................................................................
1940.....................................................................
1941....................................................................
1942....................................................................
1943....................................................................
67,804
74,435
23,888
11,021
7,250
26,196
4,895
12,278
1,612
5,500
41,608
69,540
11,610
9,409
1,750
60
43
15
20
5
32
19
8
6
4
28
24
7
14
1
157,790
142,389
29,721
19,011
12,535
32,751
5,657
14,730
1,816
6,637
125,039
136,732
14,991
17,195
5,898
1944....................................................................
1945....................................................................
1946....................................................................
1947....................................................................
1,515
1,877
292
1,724
399
1,116
1,877
292
1,724
2
1
1
5
1
1
1
1
5
1,915
5,695
316
6,966
456
1,459
5 695
316
6,966
Banks with deposits o f—
$100,000 or less.................................................
$100,000 to $250,000.........................................
$250,000 to $500,000.........................................
4,955
12,864
14,634
4,308
11,554
10,218
647
1,310
4,416
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..................................
25,132
27,314
42,631
13,901
8,961
12,421
11,231
18,353
30,210
51
38
25
24
9
5
27
29
20
38,323
54,769
77,568
17,590
11,748
16,279
20,733
43,021
61,289
$5,000,000 to $10,000,000................................
$10,000,000 to $50,000,000..............................
More than $50,000,000.....................................
22,091
114,563
25,676
22,091
88,887
9
8
2
9
6
57,486
239,136
32,657
57,486
206^479
A
C O R PO R ATIO N
87,039
INSURANCE
264,184
Class o f bank
National banks..................................................
State banks members F. R. System...............
Banks not members F. R. System..................
DEPOSIT
All ba n k s..............................................................
FEDERAL
Classification
Florida................
Georgia...............
Illinois.................
Indiana...............
Iowa.....................
300
863
3,779
4,335
1,462
203
846
1,242
3,092
385
97
17
2,537
1,243
1,077
Kansas................
Kentucky...........
Louisiana............
Maryland...........
Massachusetts. .
975
4,614
482
3,329
493
1,285
22
3,132
1,571
735
2,397
1,571
2
Michigan.............
Minnesota..........
Mississippi.........
Missouri..............
Montana.............
5,340
640
257
4,920
213
139
640
257
4,335
186
Nebraska............
New Hampshire
New Jersey.........
New York...........
North Carolina.
469
118
79,326
67,732
1,448
25,103
10,835
1,156
North Dakota. .
Ohio.....................
Oklahoma...........
Oregon.................
Pennsylvania. . .
2,663
1,610
1,218
962
47,610
10,133
85
962
37,477
South Carolina..
South Dakota...
Tennessee...........
Texas...................
Vermont.............
274
2,412
1,279
2,512
3,445
136
2,388
1,164
2,468
3,259
138
24
115
44
186
Virginia...............
Washington........
West Virginia. . .
Wisconsin...........
Wyoming............
5,056
935
1,458
7,198
511
1,458
5,096
4,545
935
1
2
Data from books of FDIC, December 31, 1947.
Data from books of bank at date of closing.
668
202
1,397
1,610
1,133
428
2
1
1
1
8
8
2
2
1,526
1,526
2
8
7
491
1,027
8,158
9,710
5,516
217
998
1,637
3,932
498
1,233
7,951
1,652
4,569
3,019
539
694
3,954
3,997
1,652
828 ......... *3,741
3,019
668
469
529
1,168
1,078
143
861
5,201
585
27
5
15
18
6
9
3
5
7
5
3
45
4
4
1
5
1
1
6
15
3
5
18
3
2
3
5
3
34
3
1,266
29
18
2
2
7
5
2 ,1 0 2
202
1
2
3
2
8
1
22
12
8
17
3
16
8
1
3
31
1
3
4
11
1
1
11
1
23
4
4
4
37
25
26
1
1
9
3
3
2
118
54,223
56,897
292
6
1
26
22
4
11
2
1
18
1
1
4
2
1
1
3
5
1
3
20
11
1
101
1,168
1,078
12,404
818
334
7,001
298
160
818
334
5,116
215
538
296
184,523
138,826
2,291
30,928
13,286
1,421
538
1,552
2,345
1,659
274
29
6,521
5,778
5,018
12,244
1,885
83
296
153,595
125,540
870
3,830
2,345
2,226
1,114
69,139
14,340
567
1.114
54,799
850
2,988
1,942
3,316
3,725
136
2,862
1,620
3,239
3,375
714
126
322
77
350
10,746
1,538
2,006
9,503
1,991
629
2,006
5,966
10,117
1,538
2,278
3,537
1,991
DISBURSEMENTS
7
1,242
94
841
INSURANCE
237
841
861
7
1,242
DEPOSIT
State
Alabama...........
Arkansas.............
California.........
Colorado.............
Connecticut. . . .
Table 125.
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
162
t h e F i n a n c i a l A id 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 , 1 9 3 4 -1 9 4 7
as
show n
by
books
of b a n k a t d a t e
o f c l o s in g
Assets
Year
U. S. Gov
ernment
obligations
Other
securities
Liabilities and capital accounts
Banking
house,
furniture &
fixtures
Other
real
estate
Other
assets
Total
Total
deposits
Other
liabilities
R. F. C.
capital
Private
capital
stock
Other
capital
accounts3
$110,914,367 $78,610,555 $73,881,642 $233,212,733 $22,284,615 $59,544,600 $13,444,999 $591,893,511 $509,994,485 $11,468,774 $25,130,464 $37,684,961 $7,614,827
$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
I52,364
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
4,159,617
1,216,987
368,633
2,440,786
126,764
2,769,014
2,275,392
3,547,766
2,903,771
555,383
585,251
230,282
1,371,925
55,504
30,236
114,326
1946
2,201,186
318,322
7,731,137
1,675,734
367,086
2,435,488
77,049
1,452,370
1947
$5,114,492 $451,603,463 $402,619,921
$1,346,751 $19,234,218 $25,430,662 $2,971,911
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
14,990,768
168,674
679,659
157,766
57,508
3,726,463
6,103,500
7,186,655
289,000
2,697,650
6,381,000
8,666,162
1,111,250
-428,459
-614,475
1,196,087
544,201
759,861
274,331
1,824,586
15,844
67,428
4,609
354,362
34,523
32,108
83,603
425
215
20,652,721
6,676,573
1,650,788
6,391,915
351,169
6,797,738
17,195,146
5,897,691
1,459,091
5,695,202
316,402
6,965,742
584
913,400
96,000
1,748,200
300.000
200.000
331.500
10,000
197.500
795,391
382,882
-8,303
365,213
24,767
-365,504
2,369
56,630
1
1 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit.
2 No insured bank has been placed in receivership since 1944.
CORPORATION
MERGI 3RS
$88,293,985 $68,456,477 $57,935,080 $167,643,516 $16,908,999 $47,250,914
Total
INSURANCE
1934
1935
1936
1937
DEPOSIT
RECEF ^ERSHIPS2
$22,620,382 $10,154,078 $15,946,562
Total
FEDERAL
Total
Cash and
due from
banks
Loans,
discounts,
and
overdrafts
Table 126.
N
am e,
L o c a t io n , F e d e r a l D
I nsured B
anks
M
erged
e p o s it
w it h
I n s u r a n c e C o r p o r a t io n D
the
F in a n c ia l A id
of
is b u r s e m e n t , an d
C
th e
D
o r p o r a t io n
A
ssets
u r in g
and
L ia b il it ie s
of
1947
Disbursement2
Case
number
Number of
accounts1
Class of bank
Name and location
Absorbing bank
Date
Amount
3,197
January 13, 1947
$202,225
156
The First National Bank of Lemont,
Lemont, Illinois
National
2,871
January 27, 1947
479,407
The Lemont National Bank,
Lemont, Illinois
157
The Central City National Bank,
Central City, Pennsylvania
National
2,081
July 14, 1947
93,190
Central City National Bank,
Central City, Pennsylvania
158
Peoples Bank of Donalds,
Donalds, South Carolina
State commercial, not
member F. R. System
1,445
December 1, 1947
138,185
The Commercial Bank,
Honea Path, South Carolina
159
Lyons State Bank,
Lyons, Wisconsin
State commercial, not
member F. R. System
1,024
December 8, 1947
811,047
Meinhardt Bank,
Burlington, Wisconsin
Liabilities and capital accounts
Assets
Case
num
ber
Loans,
discounts,
and
overdrafts
Banking
house,
furniture <6
fixtures
Cash and
due from
banks
U. S. Gov
ernment
obligations
Total
$2,769,014
$2,201,186
$318,322
$1,452,370
$56,630
155
156
157
158
159
422,088
1,221,356
457,006
573,143
95,421
977,208
189,000
986,978
28,000
36,128
155,635
121,534
1
5,024
337,483
99,027
108,571
156,799
750,490
30,000
20,000
Other
securities
Other
real
estate
Other
assets
$1
$215
195
1,000
18,650
3,600
3,380
’
"2 0
Total
Total
deposits
Other
liabilities
R. F. C.
capital
Other
capital
accounts3
$6,797,738
$6,965,742
$197,500
$-365,504
1,802,907
1,666,213
1,692,739
761,564
874,315
1,991,044
1,748,524
1,709,000
713,459
803,715
50.000
50.000
50.000
12,500
35.000
-238,137
-132,311
-66,261
35,605
35,600
163
1 Number of accounts are as of date of examination prior to purchase of assets.
2 Does not include preliminary and field liquidation expenses or advances for the protection of assets, incident to the transaction.
3 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit.
Private
capital
stock
DISBURSEMENTS
National
INSURANCE
The First National Bank of Evanston,
Evanston, Wyoming
DEPOSIT
First National Bank in Evanston,
Evanston, Wyoming
155
05
Table 127.
D i s b u r s e m e n t s t o P r o t e c t D e p o s i t o r s , R e c o v e r i e s , a n d L o s s e s b y 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 in
AS SHOWN BY BOOKS o f FDIC, DECEMBER
FEDERAL
C o n n e c t i o n w i t h 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 F i n a n c i a l A id o f t h e C o r p o r a t i o n , 1934-1947
31, 1947
(Amounts in thousands of dollars)
Total
1934
941
941
Recoveries by FDIC................
Receiverships........................
Mergers.................................
234,211
70,882
163,329
734
734
Estimate of losses by FDIC.. .
Receiverships........................
Mergers.................................
26,014
14,619
11,395
207
207
Terminated liquidations
Disbursements by FDIC........
Receiverships........................
Mergers.................................
79,046
49,646
29,400
941
941
Recoveries by FDIC................
Receiverships........................
Mergers.................................
68,603
40,662
27,941
734
734
Losses by FDIC.......................
Receiverships........................
Mergers.................................
10,443
8,984
1,459
207
207
1937
1938
1939
1940
1941
1942
8,890
6,025
2,865
14,833
8,056
6,777
19,202
12,045
7,157
30,512
9,092
21,420
67,804
26,196
41,608
74,435
4,895
69,540
23,888
12,278
11,610
11,021
1,612
9,409
7,250
5,500
1.750
1,515
399
1,116
1.877
292
1,724
1.877
*292
1,724
6,109
4,255
1,854
12,338
6,596
5,742
15,396
9,297
6,099
28,013
7,882
20,131
58,450
18,740
39,710
68,427
4,313
64,114
23.065
12.065
10,180
1,297
7,094
5,344
1.750
1,475
359
1,116
1.877
292
761
1.877
’ 292
761
2.751
1.751
2,423
1,460
963
3,589
2,555
1,034
2,456
1,189
1,267
7,782
6,218
1,564
5,093
582
4,511
701
213
488
672
289
383
124
124
31
31
8,478
7,862
616
11,777
9,018
2,759
13,710
8,635
5,075
15,284
8,586
6,698
8,695
4,756
3,939
4,449
1,955
2.494
3,607
823
2.784
2,973
1,223
1.750
1,116
1,877
292
1,116
1.877
’ 292'
6,911
6,402
509
9,196
6,928
2,268
11,838
7,544
4,294
13,780
7,158
6,622
8,109
4,174
3,935
4,236
1,742
2.494
3,507
723
2.784
2,849
1,099
1.750
1,116
1.877
292
1,116
1,877'
’ 292
1,567
1,460
107
2,581
2,090
491
1,872
1,091
781
1,504
1,428
76
586
582
4
213
213
100
100
124
124
1,000
5.847
5.847
4.158
4.158
1.689
1.689
11,000
0)
1943
1944
1945
1946
1947
185
185
CORPORATION
264,184
87,039
177,145
1936
INSURANCE
All banks placed in receiver
ship or merged
Disbursements by FDIC........
Receiverships........................
Mergers.................................
1935
DEPOSIT
Banks placed in receivership or merged in—
Type and status of case
A ctive liquidations
Disbursements by F D I C ..........
Receiverships..........................
Mergers...................................
185,138
37,393
147,745
3,043
178
2,865
6,355
194
6,161
7,425
3,027
4,398
16,802
457
16,345
52,520
17,610
34,910
65,740
139
65,601
19,439
10.323
9,116
7,414
789
6,625
4.277
4.277
399
399
1,724
Recoveries by F D IC .................
Receiverships..........................
Mergers...................................
165,608
30,220
135,388
1,951
97
1,854
5,427
194
5,233
6,200
2,369
3,831
16,175
338
15,837
44,670
11,582
33,088
60,318
139
60,179
18,829
10.323
8,506
6,673
574
6,099
4.245
4.245
359
359
761
Estimate of losses by FDIC
Receiverships..........................
Mergers...................................
15,571
5,635
9,936
1,062
62
1,000
856
584
98
486
6,278
4,790
1,488
4,507
488
4,507
488
572
189
856
1,008
465
543
N um ber o f b a n k s........................
404
9
25
69
75
74
60
43
15
5
2
1
1
5
Receiverships..............................
Mergers.......................................
245
159
9
24
1
42
27
50
25
50
24
32
28
19
24
8
7
4
1
1
1
1
1
5
Liquidation terminated.............
Receiverships..........................
Mergers...................................
308
219
89
9
9
23
23
57
41
16
64
44
20
61
46
15
44
28
16
29
17
12
6
5
1
3
2
1
1
1
1
1
1
1
Liquidation active......................
Receiverships..........................
Mergers...................................
96
26
70
2
1
1
12
1
11
11
6
5
13
4
9
16
4
12
14
2
12
2
2
1
1
761
31
31
185
185
5
D ISBU RSEM EN TS
1 Less than $500.
N ote : 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 2, page 14.
The disbursements in the receiverships as given in the table are the amounts paid on insured deposits by December 31, 1947. For estimated additional disbursements and estimated
additional recoveries see Table 3, p. 16.
INSURANCE
5
DEPOSIT
20
1,724
0
01
INDEX
INDEX
Absorptions, consolidations, and mergers:
Of insured banks, 1934-47. See Mergers of insured banks with financial aid
of the Corporation.
Of operating banks, 1947......................................................................................... 98-99
Adjusted capital account. See Capital of banks.
Adjusted liabilities. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Admission to insurance:
Applications approved..............................................................................................
21
By class of bank, 1947.............................................................................................. 98-99
Applications from banks:
For admission to insurance.....................................................................................
21
For approval of establishment of branches................................................. 22-23
Appraised value of assets. See Assets and liabilities of insured commercial banks,
examiners’ appraisal.
Assessments on insured banks for deposit insurance:
Amount.................................................................................................................. 28-29, 35
Assets and liabilities of closed banks. See Receivership, insured banks placed in.
Assets and liabilities of insured commercial banks, examiners’ appraisal:
Banks examined in 1939-1947.............................................................................. 124-125
Banks examined in 1947, grouped by amount of deposits............................. 126-127
Banks examined in 1947, grouped by FDIC district and State....................128-129
Definitions of terms used: adjusted liabilities; appraised value; book value;
examiners’ deductions; not criticized; substandard...............................
123
Regional distribution of banks according to ratio of adjusted capital accounts
to appraised value of total assets, 1947....................................................
50
Sources of data...........................................................................................................
123
Substandard assets:
Banking development with respect to ............................................................
9
Ratio to:
Adjusted capital accounts.........................................50-51, 125, 127, 128-129
Total assets, appraised value, 1939-1947........................ 50-51, 125, 128-129
Assets and liabilities of operating banks (See also Assets and liabilities of
insured commercial banks, examiners’ appraisal; Capital of banks;
Deposits):
All banks:
By FDIC district and State, December 31, 1947...................................... 120-121
Call dates, 1942-1947..........................................................................................
116
December 31, 1947..............................................................................................
41
December 31, 1945, 1946, and 1947................................................................
43
June 30 and December 31, 1947................................................................... 112, 113
Percentage change, by type of asset and liability during 1946 and 1947.
43
Percentage change in total assets, December 31, 1945-1947, by State... 41-42
Commercial banks:
Call dates, 1942-1947..........................................................................................
118
December 31, 1945-46, June 30, 1947, and December 31, 1947................ 43-44
June 30 and December 31, 1947................................................................... 112, 113
Percentage distribution of assets and liabilities, December 31, 1945 and
1947.................................................................................................................
44
Insured banks, call dates, 1942-1947.....................................................................
117
169
170
FEDERAL DEPOSIT INSURANCE CORPORATION
Assets and liabilities of operating banks:—Continued
Insured commercial banks:
119
Call dates, 1942-1947.........................................................................................
Charge-offs and recoveries on assets................................................................. 56-57
December 31, 1946, June 30 and December 31, 1947............................... 114-115
Reports of.............................................................................................................
23
Mutual savings banks:
December 31, 1945, 1946, and 1947................................................................ 46-47
June 30 and December 31, 1947................................................................... 112, 113
Percentage change during 1946 and 1947...................................................... 46-47
Noninsured banks, June 30 and December 31, 1947......................................112, 113
Sources of data...........................................................................................................
I ll
Assets and liabilities of the Federal Deposit Insurance Corporation................... 30-36
Assets purchased by the Federal Deposit Insurance Corporation:
From banks in receivership to facilitate liquidation..........................................
15
From banks merged with financial aid of the Corporation. See Mergers of
insured banks with financial aid of the Corporation.
Liquidation o f............................................................................................................ 15-16
Assets of insured banks, quality of. See Assets and liabilities of insured com
mercial banks, examiners’ appraisal.
Assets pledged to secure bank obligations......................................
115
Bank supervision (See also Examinations of banks):
Activities of the Federal Deposit Insurance Corporation in 1947................ 7, 18-23
State legislation, 1947......................................................................................... 26, 85-93
Banking data. See Methods of tabulating bank data.
Banking offices, establishment of:
Banks beginning operations, 1947...................................................................21, 40, 98
Branches, establishment approved by Corporation............................................
22
Branches opened, 1947.......................................................................... .................. 40, 98
Policy of the Corporation........................................................................................
23
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, 1947............................................................................ 40, 98-99
Branches of insured banks, 1947...................................................................... 40, 98-99
Insured banks, 1947.....................................................................................15, 40, 98-99
Noninsured banks, 1947........................................................ .................. 40, 98-99, 159
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:
Fulty protected, in insured banks placed in receivership or merged with
the financial aid of the Corporation..........................................................
11
Number of, in insured banks placed in receivership or merged with
financial aid of the Corporation..........................................................11, 13-14
Depositors sustaining loss in closed insured banks, number o f.......................
13
Insured banks closed:
Deposits o f............................................................................................................
11
Deposits protected..............................................................................................
11
Disbursements by the Corporation in connection with............................. 11, 160
Loss to depositors............................................................................................... 13, 14
Loss to Federal Deposit Insurance Corporation................................. 16, 164-165
Number, 1934-1947............................................................................................
14
Methods of handling under existing law.............................................................. 10-11
Noninsured bank suspensions, 1947......................................................................
159
Banks, number of. See Number of operating banks and branches.
Banks operating branches. See Banking offices, establishment of; Number of
operating banks and branches.
IN D E X
171
Page
Blanket bond coverage. See Fidelity bond coverage.
Board of Directors of the Federal Deposit Insurance Corporation.. . iv, v, 26-27
Board of Governors of the Federal Reserve System, data obtained from........I ll , 131
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.
Bureau of Internal Revenue, Commissioner’s ruling. See U. S. Treasury De
partment.
Capital of banks (See also Assets and liabilities of operating banks; Earnings,
expenses, profits, and dividends of insured banks):
Adequacy o f...............................................................................................................
8
Definition of terms used in examiners’ appraisal of:
Adjusted capital accounts; book value of capital accounts; net sound
capital..............................................................................................................
123
Examiners’ appraisal, insured commercial banks:
1939-1947..............................................................................................................
124
Banks grouped by amount of deposits, 1947................................................
127
Banks grouped by FDIC districts and State, 1947................................... 128-129
Banks grouped by ratio of adjusted capital accounts to appraised value
of total assets and FDIC district, 1947....................................................
50
Banks grouped by ratio of substandard assets to adjusted capital
accounts, 1945-1947...................................................................................... 50-51
Ratio of substandard assets to adjusted capital accounts, 1939-1947.... 50-51
Growth....................................................................................................................8, 47, 60
Insured banks placed in receivership or merged with financial aid of the
Corporation..................................................................................................162-163
Net additions as a proportion of net profits, insured commercial banks,
by State, during 1946 and 1947.................................................................
48
Percentage change, 1946 and 1947........................................................................
49
Ratios to assets:
Commercial banks, December 31, 1947, by State........................................
49
Commercial banks, December 31, 1945, 1946, and 1947.............................
49
Insured banks, 1934 and 1947..........................................................................
8
Insured commercial banks...................... 115, 125, 127, 128-129, 135, 139, 143
Insured mutual savings banks, 1934, 1941-1947...........................................
156
Ratios to assets other than cash and U. S. Government obligations; com
mercial banks................................................................................................
49
Retirement of capital invested in banks by the Reconstruction Finance
Corporation......................................................, .........................................8, 48-49
Total capital accounts:
Commercial and mutual savings banks, insured and noninsured, June
30, and December 31, 1947.......................................................................112-113
Commercial banks, December 31, 1945-1947............................................... 47-49
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...................................................... 98-99
Assets and liabilities.............................................................................................. 112, 113
Banks which suspended operations, 1934-1947..................................................
160
Deposits..................................................................................................108-109, 112, 113
Earnings of insured commercial banks............................................................... 136-139
Name, location, FDIC disbursement and assets and liabilities of insured
banks merged with financial aid of the Corporation, 1947...................
163
Number and deposits of insured banks placed in receivership or merged
with financial aid of the Corporation, 1934-1947..................................14, 160
Number of banking offices.................................................................
.98-99, 100-107
Number of banks. ................................................. ..
.98-99, 100-107, 108-109
Ratios of earnings of insured commercial banks. ........................................ 138-139
172
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Classification of banks and banking offices................................................................ 96-97
Closed banks. See Banks and branches ceasing operations; Banks in financial
difficulties; Receivership, insured banks placed in.
Commercial banks. See Assets and liabilities of insured commercial banks,
examiners’ appraisal; Assets and liabilities of operating banks;
Capital of banks; Deposits; Earnings, expenses, profits, and divi
dends of insured banks; Number of operating banks and branches.
Commissioner of Internal Revenue, ruling on reserve for bad debt losses on
loans. See U. S. Treasury Department.
Comptroller of the Currency:
Data obtained from........................................................................... ................... I ll , 131
Director of Corporation.................................................................................. iv, v, 26
Consolidations. See Absorptions, consolidations, and mergers.
Consumer loans. See Loans by banks.
Credit, bank, expansion of during 1947................................................7, 8, 41-42, 50-51
Criticized assets. See Assets and liabilities of insured commercial banks, ex
aminers’ appraisal.
Debt, retirement of Federal........................................................................41-43, 45-46, 54
Defalcation in banks.......................................................................................................
9, 19
Demand deposits. See Assets and liabilities of operating banks; Deposits,
classified by type of deposit.
Depositors:
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........................ 11, 160
Insured commercial banks examined in 1947................................................
126
Business and personal. See Deposits, classified by type of deposit.
Classified by type of deposit:
All banks, call dates, 1942-1947.......................................................................
116
All banks, December 31, 1945-1947................................................................ 42-43
All banks, grouped by FDIC district and State.........................................120-121
All banks, June 30 and December 31, 1947.................................................112-113
Commercial banks, call dates, 1942-1947......................................................
118
Insured banks, call dates, 1942-1947..............................................................
117
Insured commercial banks, call dates, 1942-1947.........................................
119
Insured Commercial banks, December 31, 1946, June and December
1947.................................................................................................................
114
Demand. See Deposits, classified by type of deposit.
Government. See Deposits, classified by type of deposit.
Growth........................................................................................................................
42
Individuals, partnerships, and corporations. See Deposits, classified by
type of deposit.
Insured and otherwise protected:
In banks merged with financial aid of the Corporation..............................
11
In banks placed in receivership........................................................................
13
Interbank. See Deposits, classified by type of deposit.
Interest on time and savings deposits............ 54, 56, 135, 139, 143, 145-153, 157
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.
IN D E X
173
Page
Deposits:— Continued
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, 1934-1947
Sources of data.............................................................................................. ............
Subject to offset. See Receivership, insured banks placed in.
Uninsured deposits of insured banks placed in receivership.............................
14
I ll
14
Deposits in:
.A.11 banks *
June 30 and December 31, 1947.................................................................... 112-113
Banks grouped by FDIC district and State, December 31, 1947.............
120
Banks grouped by insurance status and by FDIC district and State,
December 31, 1947..................................................................................... 108-109
Call dates, 1942-1947.........................................................................................
116
December 31, 1945-1947.................................................................................... 42-43
Percentage change, 1946 and 1947..................................................................
43
Banks for which the Corporation is receiver....................................................... 13-14
Banks located in each State and possession, December 31, 1947.108-109, 120-121
Banks which received financial aid from the Corporation...............11, 14, 160-163
Commercial banks:
Banks grouped by insurance status and by FDIC district and State,
December 31, 1947..................................................................................... 108-109
Call dates, 1942-1947.........................................................................................
118
December 31, 1945-1947....................................................................................
44
June 30 and December 31, 1947.................................................................... 112-113
Percentage distribution, December 31, 1945 and 1947...............................
44
Insured banks, call dates, 1942-1947....................................................................
117
Insured banks merged with financial aid of the Corporation......... 11, 14, 160-163
Insured banks placed in receivership........................................................... 13, 160-162
Insured commercial banks:
At time of examination. See Assets and liabilities of insured commercial
banks, examiners’ analysis.
By FDIC district and State, December 31, 1947.......................................108-109
Call dates, 1942-1947.........................................................................................
119
December 31, 1946, June 30, 1947, and December 31, 1947.....................
114
Insured mutual savings banks:
By FDIC district and State............................................................................108-109
June 30 and December 31, 1947.................................................................... 112-113
Mutual savings banks:
By FDIC district and State, December 31, 1947.......................................108-109
June 30 and December 31, 1947.................................................................... 112-113
December 31, 1945-1947....................................................................................
47
Noninsured banks:
By FDIC district and State, December 31, 1947.......................................108-109
June 30 and December 31, 1947.................................................................... 112-113
Depreciation. See Earnings, expenses, profits, and dividends of insured banks.
Dividends:
To depositors in mutual savings banks...............................................60, 62, 154, 157
To stockholders of operating insured commercial banks. See Earnings,
expenses, profits, and dividends of insured banks.
Earnings, expenses, profits, and dividends of insured banks:
Insured commercial banks:
Amounts, 1934, 1941-1947.............................................................................. 132-133
Amounts, 1934-1947...........................................................................................
52
Amounts by class of bank, 1947.................................................................... 136-137
Amounts by size of bank, 1947...................................................................... 140-141
Amounts by State, 1947...................................................................................144-153
Amounts, comparison, 1946-1947....................................................................
53
Charge-offs and recoveries................................................................................ 56-57
Current operating earnings.......................................................................... 52, 54-55
Current operating expenses............................................................................... 55-56
Distribution of earnings and expenses, 1941, 1945-1947.............................
55
Dividends.............................................................................................................
60
L74
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Earnings, expenses, profits and dividends of insured banks:— Continued
Insured commercial banks:— Continued
Income on loans......................................................................................52, 54, 72-74
Income on securities...........................................................................................
54
54
Income on service charges................................... .................... ........................
Income on U. S. Government obligations......................................................
54
Interest on deposits............................................................................................ 54, 56
Net additions to capital as a proportion of net profits, by State, during
1946 and 1947................................................................................................
48
56
Net earnings. . .....................................................................................................
Net losses.............................................................................................................. 56-57
Net profits............................................................................................................ 57-60
Profits on sale of assets......................................................................................
56
Rate of net earnings on total assets, by size of bank.................................
58
Rate of net profit on total capital accounts, percentage distribution
of banks, 1941, 1945-1947........................................................................... 57-58
Rate of net profits on total capital accounts, by size of bank, 1947........
58
Rates of income on loans and securities, 1941, 1945-1947..........................
54
Rates of net earnings and net profits, by State, 1947................................. 58-60
Rates of net profit and cash dividends to total capital account, 19411945-1947........................................................................................................ 55, 60
Ratios to average total capital accounts..........................134, 138, 142, 144-153
Ratios to total assets, special ratios, etc., 1934, 1941-1947...................... 134-135
Ratios to total assets, special ratios, etc., 1947:
By class of bank..........................................................................................138-139
size of bank........................................................................................... 142-143
By State....................................................................................................... 144-153
Ratios to total current earnings.........................................134, 138, 142, 144-153
Reserves for bad debt losses on loans......................................................
57
Salaries and wages............................................... .........................................
55
Taxes.................................................... ..................................................... 54, 56-57
Insured mutual savings banks:
Amounts, 1934, 1941-1947.............................................................................. 154-155
Amounts and rates, 1943-1947.........................................................................
61
Dividends to depositors..................................................................................... 60, 62
Ratios to total assets, special ratios, etc., 1934, 1941-1947..................... 156-157
Salaries and wages...............................................................................................
61
Sources of data...........................................................................................................
131
Employees:
Federal Deposit Insurance Corporation...............................................................
27
Insured commercial banks:
Number and salary, December 31, 1947...................136-137, 140-141, 144-153
Number and salary, 1934, 1941-1947........................................................... 132-133
Number and salary, 1941, 1946-1947................................... ..........................
55
Insured mutual savings banks, 1934, 1941-1947.............................................. 154-155
Examinations of banks {See also Assets and liabilities of insured commercial
banks, examiners’ appraisal; Capital of banks):
Banks cited for unsafe and unsound practices....................................................
19
Banks examined by the Federal Deposit Insurance Corporation...................
18
Data from reports of examination.......................................................................124-129
Definition of terms................... ................................................................................
123
Policy of the Corporation........................................................................................
18
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.
Failures, business and bank, rates o f..........................................................................
17-18
Federal bank supervisory authorities..........................................................................
7
Federal credit unions...................................................................................................... 23, 25
175
IN D E X
Page
Federal Deposit Insurance Corporation:
Actions on applications from banks. See Applications from banks.
Assessments on insured banks................................................................................
29
Assets and liabilities..................................................................................................30, 34
Audits........................................................................................................................... 32-36
Banks examined by, and submitting reports to ..................................................
23
Bank supervision by. See Bank supervision.
Board of Directors.................................................................................................iv, v, 26
Capital, amount of............................................................................................... 7, 31, 34
Depositors protected by. See Banks in financial difficulties.
Disbursements for protection of depositors.. . . . 11-13, 16, 159, 160-161, 163-165
Districts...................................................................................................................... vi, vii
Divisions..................................................................................................................... iv, 27
Employees:
Examiners, recruitment o f................................................................................ 27-28
Number of.............................................................................................................
27
Examination of banks. See Examinations of banks.
Expenses............................................................................................................... 28, 29, 35
Federal credit union activities..........................................................................23, 25, 35
Income...................................................................................................................28, 29, 35
Income and expenses, 1933-1947...........................................................................
28
Insured banks receiving financial aid from. See Banks in financial difficulties;
Mergers of insured banks with financial aid of the Corporation; Re
ceivership, 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 1947...................................................................................................16, 29, 35
During 1934-1947............................................................................... 16, 17, 164-165
Reserve for...........................................................................................................
31
Methods for protecting depositors. See Banks in financial difficulties.
Officers.....................................................................................................................v, vi, 27
Organization and staff........................................................................................ iv, 26-27
Payments to insured depositors............................................................................. 7, 29
Policies................................................................................. .. .........................
18
Powers......................................................................................................................... 10, 24
Protection of depositors. See Banks in financial difficulties.
Purchase of assets to facilitate completion of liquidation of banks in re
ceivership........................................................................................................
15
Receiver for insured banks......................................................................................
13
Recentralization of offices........................................................................................
7
Recoveries from banks in financial difficulties..............................................11, 16, 35
Regulations.................................................................................................................26, 84
Reports from banks..................................................................................................
23
Reserves for losses...............................................................................................31, 34, 35
Responsibilities of the Corporation.......................................................................
9-10
Retirement of capital stock of the Corporation...................................... 7, 24, 30, 77
Supervisory activities...............................................................................................
7
Surplus.................................................................................................................10, 29, 31
Federal Deposit Insurance Corporation districts:
Number and deposits of banks in..........................................................................
108
States and possessions served................................................................................. vi, vii
Federal Reserve System. See Board of Governors of the Federal Reserve
System.
Fidelity bond coverage...................................................................................................
19-20
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.
Inflation..........................................................................
Insolvent banks. See Banks in financial difficulties.
41, 50-51
176
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Instalment loans, how reported....................................................................................
I ll
Insured status, banks classified by:
Assets and liabilities of...........................................................................................112-113
Changes in number of...............................................................................................
40
Deposits of.............................................................................................. 108-109, 112-113
Number of.................................................................................................98-109, 112-113
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’ classifica
tion;
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;
Insured status, banks classified by;
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;
State, 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............................................................................
19
Legal developments:
Executive order regarding Federal credit unions...............................................
War loan deposit accounts assessment for deposit insurance...........................
25
24
Legislation related to banking and deposit insurance:
Federal, enacted in 1947:
Extension of the life of the Reconstruction Finance Corporation............
Labor Management Relations A ct..................................................................
Organization of Executive Branch of the Government................... 24-25,
Procedure for facilitating payment of certain Government checks. . . 25,
Retirement of FDIC capital stock.......................................................7, 24,
State, enacted in 1947.........................................................................................26,
25
25
78-80
80-82
30, 77
85-93
INDEX
177
Page
Liquidation, banks placed in............................................................................... 98, 159-165
Loans by banks. (See also Assets and liabilities of operating banks):
Agricultural........................................................................................................... 66-67, 69
Commercial and industrial............................................................66-67, 69, 70, 72-73
Consumer................................................................................................ 66-67, 69, 71, 72
Examiners’ evaluation. See Assets and liabilities of insured commercial
banks, examiners’ appraisal.
Expansion in 1947................................................................................................41, 43-44
Guaranteed by Federal Government, by type.................................................... 44-45
Income and charge-offs on (See also Earnings, expenses, profits, and divi
dends of insured banks)................................................................... 56-57, 72-74
On securities...........................................................................................66-67, 69, 72, 73
Percentage changes, by State, December 31, 1945-1947................................... 70-71
Rate of income on..................................................................72-74, 135, 143, 145-153
Real estate..................................................................................................... 44, 66-67, 71
Regional trends......................................................................................................... 67-72
Special study.............................................................................................................. 63-74
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 banks..................................................................... 9, 25-26, 57, 82-84
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):
Assets and liabilities at date of merger, 1934-1947......................................... 162-163
Banks cited for unsafe and unsound practices....................................................
19
Classification of banks merged...............................................................................
163
Collections by Corporation on assets purchased or held as collateral..........164-165
Deposits protected...................................................................................................11, 163
Disbursements by Corporation.......................................... 11, 160-161, 163, 164-165
Loans made and assets purchased by the Corporation.....................................
15
Losses incurred by Corporation.................................................................... 16, 164-165
Name and location of banks merged, 1947..........................................................
163
Number of banks merged............................................................11, 160-161, 163, 165
Number of depositors...............................................................................................
11
Procedure....................................................................................................................
10
Recoveries by the Corporation.................................................................15-16, 164-165
Sources of data...........................................................................................................
159
Methods of tabulating banking data:
Assets and liabilities of operating banks..............................................................
I ll
Deposit Insurance disbursements..........................................................................
158
Earnings, expenses, profits and dividends of insured banks.............................
131
Examiners’ evaluation of insured commercial banks.........................................
123
Number, offices, and deposits of operating banks.............................................. 96-97
Mutual savings banks:
Insured:
Assets and liabilities, June 30 and December 31, 1947.............................112-113
Deposits.............................................................................................108-109, 112-113
Earnings, expenses, profits and dividends......................................60-62, 154-157
Number................................................................................................................. 98-109
178
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Mutual savings banks:— Continued
Insured and noninsured:
Assets and liabilities, by type, December 31, 1945-1947........................... 46-47
Assets and liabilities, June 30 and December 31, 1947.............................112-113
Deposits, by State, December 31, 1946............ ........................................... 108-109
Number................................................................................................................. 98-109
United States Government obligations, distribution by maturity,
December 31, 1947............... ........................................................................ 46-47
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.........................................................................................40, 98-99
All banks:
By class of bank, FDIC district, and State or possession, December
31, 1947.........................................................................................................108-109
By FDIC district and State or possession, December 31, 1947................
120
Call dates, 1942-1947..........................................................................................
116
Changes during 1947.......................................................................................... 98-99
Changes during 1945 to 1947............................................................................
40
June 30 and December 31, 1947.................................................................... 112-113
All banks and branches:
By class of bank and State, December 31, 1947........................................ 100-107
Changes during 1947.......................................................................................... 98-99
Changes during 1947 and cumulative, 1942-1947........................................ 39-41
Approved for admission to insurance....................................................................
21
Banks operating branches..................................................................................... 100-107
Branches:
By class of bank and State, December 31, 1947.........................................100-107
Changes during 1947..............................................................................22, 41, 98-99
Changes during 1941-1947................................................................................
41
Commercial banks:
By class of bank, FDIC district, and State, December 31, 1947............108-109
Call dates, 1942-1947..........................................................................................
118
Changes during 1947...................................................................................... .. . 98-99
June 30 and December 31, 1947.................................................................... 112-113
Insured banks:
Branches............................................................................................................... 22, 41
Call dates, 1942-1947.........................................................................................
117
Changes during 1947 and cumulative, 1942-1947........................................ 39-40
December 31, 1947.............................................................................................. 98-99
Proportion of insured banks, by State, December 31, 1947.......................
39
Insured commercial banks:
By FDIC district, and State, December 31, 1947..................................... 108-109
Call dates, 1942-1947.........................................................................................
119
Changes during 1947........................................................................................... 98-99
December 31, 1946, June 30 and December 31, 1947............................... 114-115
Examined in 1947, by amount of deposits.....................................................
127
Operating throughout 1946, by amount of deposits................................. 141, 143
IN D E X
179
Page
Number of operating banks and branches:—Continued
Mutual savings banks. See Mutual savings banks.
Noninsured banks:
By class of bank, FDIC district, and State, December 31, 1947............108-109
Changes during 1947.....................................................................................40, 98-99
Changes during 1947 and cumulative, 1942-1947.........................................
40
June 30 and December 31, 1947.................................................................... 112-113
Termination of insurance.........................................................................................
14
Unit banks, by class of bank and State, December 31, 1947.........................100-107
Officers, active, of insured banks. See Employees.
Officers and employees of the Federal Deposit Insurance Corporation............... v, 27
Operating banks. See Number of operating banks and branches.
Payments to depositors in closed insured banks. See Receivership, insured banks
placed in.
Possessions, banks and branches located in:
Assets and liabilities............................................................................................... 120-121
Deposits of.............................................................................................. 108-109, 120-121
Earnings, expenses, profits, and dividends........................................................ 144-145
Number of............................................................................ 100, 107, 108-109, 120-121
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
Purchase of bank assets by Corporation. See Assets purchased by the Federal
Deposit Insurance Corporation.
Real estate, loans on. See Loans by banks.
Receivership, insured banks placed in {See also Banks in financial difficulties):
Activities of Corporation as receiver of................................................................
15
Assets and liabilities of, at dates of suspension, cumulative, 1934-1947. .
162
Depositors:
Losses..................................................................................................................... 14, 17
Methods of protection........................................................................................ 10—11
Deposits:
Amounts, 1934-1947...........................................................................................
162
Insured, paid and unpaid by December 31, 1947.........................................
14
Paid and unpaid, December 31, 1947.............................................................
14
Secured, preferred, and subject to offset........................................................
14
Disbursements by the Corporation.............................15-16, 159, 160-161, 164-165
Losses by Corporation on disbursements............................................. 15-16, 164-165
Number of banks.................................................................... 15-16, 159, 160-161, 165
Payments to depositors............................................................................................
15
Recoveries by the Corporation on disbursements...............................15-16, 164-165
Sources of data.................................................................................... ......................
159
Reconstruction Finance Corporation, capital of insured banks held by:
Amount, total and portion repaid...................................................................... 8, 48-49
Number of banks.......................................................................................................
8
Recoveries:
By banks on assets charged off. See Earnings, expenses, profits, and divi
dends of insured banks.
By the Corporation on disbursements...................................................15-16, 164-165
180
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
Reports from banks.........................................................................................................
23
Reserves:
Bank, changes in 1947.............................................................................................
43
For bad debt losses on loans. Ruling of Commissioner of Internal
Revenue.............. ...................................................................................... 57, 82-84
In bank assets and liabilities. See Assets and liabilities of operating banks.
Of Federal Deposit Insurance Corporation..........................................................31, 34
Salaries and wages:
Federal Deposit Insurance Corporation...............................................................
Insured banks. See Earnings, expenses, profits, and dividends of insured
banks.
29
Savings and time deposits. See Deposits, classified by type of deposit.
Secured and preferred deposits. See Deposits, secured and preferred; Receiver
ship, insured banks placed in.
Securities (See also Assets and liabilities of operating banks):
Charge-offs on securities held by insured banks........................ ........................ 57, 62
Held by Federal Deposit Insurance Corporation......................................... 30, 31, 34
Held by insured banks placed in receivership or merged with financial aid
162
of the Corporation, 1934-1947......................................... ..........................
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.
United States Government obligations, held by:
Federal Deposit Insurance Corporation...................................................30, 31, 34
Insured banks placed in receivership or merged with financial aid of
the Corporation.............................................................................................
162
Insured commercial banks, amounts and percentage distribution by
maturities, December 31, 1945-1947......................................................... 45-46
Mutual savings banks, amounts and percentage distribution by ma
turities, December 31, 1947........................................................................ 46-47
Size of banks, banks classified by. See Deposits, amount of, banks grouped by.
State and local government obligations. See Assets and liabilities of operating
banks.
State bank supervisory authorities:
Data obtained from..................................................................................................
I ll
State legislation regarding....................................................................................... 85-93
State, banking data classified by:
Assets and liabilities of operating banks:
Amounts, December 31, 1947.........................................................................120-121
Percentage change, December 31, 1945-1947................................................ 41-42
Deposits, December 31, 1947:
Commercial banks, insured and noninsured................................................ 108-109
Mutual savings banks, insured and noninsured......................................... 108-109
Disbursements by the Corporation, cumulative, 1934-1947.............................
161
Disbursements by the Corporation, number of banks assisted, cumulative,
1934-1947.......................................................................................................
13
Earnings, expenses, profits, and dividends of insured commercial banks,
1947................................................................................................................144-153
Insured commercial banks examined in 1947.................................................... 128-129
Loans of insured commercial banks, percentage increase:
Commercial and industrial, 1945-1947............................................................
70
Consumer, 1945-1947..........................................................................................
71
Real estate, 1945-1947........................................................................................
71
Total, 1945-1947..................................................................................................
70
Total, 1934-1947..................................................................................................
68
Net additions to capital as a proportion of net profits during 1946 and 1947
48
IN D E X
181
Page
State, banking data classified by:— Continued
Number of operating banks or offices, December 31, 1947:
All banking offices, by class of bank and type of office.............................100-107
Commercial banks, insured and noninsured................................................108-109
Insured banks, percentage of all banks, December 31, 1947.....................
39
Mutual savings banks, insured and noninsured......................................... 108-109
Operating banks........................................................... .....................................108-109
Rates of net earnings and net profits of insured commercial banks, 1947.. 58-59
Ratio of total capital accounts to total assets, commercial banks, December
31, 1947..........................................................................................................
49
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.
Statistical methods. See Methods of tabulating banking data.
Stockholders of banks:
Losses of. See Banks in financial difficulties.
Net profits of insured commercial banks, available for. See Earnings,
expenses, 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 of.......................................................................................................... 96-97
Noninsured, number not engaged in deposit banking..................... 98-109, 112-113
Unit banks. See Number of operating banks and branches.
United States Government obligations. See Assets and liabilities of insured com
mercial banks, examiners’ appraisal; Assets and liabilities of operating
banks; Securities.
United States Treasury Department, Commissioner of Internal Revenue,
Ruling on reserves for bad debt losses on loans..............9, 25-26, 57, 82-84
Unsafe and unsound banking practices:
Actions of the Corporation...................................................................................... ........19
Number of banks cited............................................................................................. 19, 20
Type of practice or violation...........................................................................................20
Unsecured deposits. See Receivership, insured banks placed in.
Valuation allowances..................
111
Violations of law or regulations
19, 20
@FedFRASER