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ANNUAL REPORT
OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION
FOR THE YEAR ENDED
DECEMBER 31,1950
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 s it In su k a n c e C o r p o r a t io n
Washington, D. C., June 5,1961
SIRS: Pursuant to the provisions of section 17(a) of the Federal
Deposit Insurance Act, the Federal Deposit Insurance Corporation
has the honor to submit its annual report.
Respectfully,
M a p le T . H a r l,
T h e P r e s id e n t P ro T em p o r e
T he Speaker
of t h e
H o u se
of th e
of
Senate
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 il d i n g — W a s h in g t o n 25, D . C .
BOARD OF DIRECTORS
Chairman................................................................................ M a p l e T. H a r l
f l l . E ar l C ook
Directors..............................................................................<
( P reston D ela n o
OFFICIALS—JUNE 5, 1951
Secretary................................................................................. E. F. Downey
Assistant to Chairman............................................................ Lyle L. Robertson
Assistant to Director............................................................... Albert G. Towers
Associate General Counsel...................................................... Norris C. Bakke
Chief, Division of Examination.............................................Vance L. Sailor
Chief, Division of Research and Statistics............................. Edison H. Cramer
Chief, Service Division........................................................... Henry T. Ivey
Chief, Personnel Division......................................................Randolph Hughes
Chief, Division of Liquidation...............................................Edward C. Tefft
Chief, Division of Finance and Accounts, and Treasurer. . . Russell D. Miller
Chief, Audit Division............................................................. Mark A. Heck
Budget Officer..........................................................................Dana G. Messer
V
DISTRICT OFFICES
D is t.
N o.
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 1365, 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, Puerto Rico,
Virgin Islands
3. A. F. Shafer
City National^Bank
Building, 20 East Broad
Street, Columbus 15, Ohio
Ohio, Pennsylvania
4. Robert N. McLeod
200 Bank of Virginia
Building, Fourth and
Grace Streets,
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. Eugene R. Gover
741 Federal Reserve Bank
Building, 164 W. Jackson
Blvd., Chicago 4, 111.
Illinois, Iowa
9. Charles 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
Nebraska, Kansas,
Oklahoma, Colorado,
Wyoming
11. Linton J. Davis
Federal Reserve Bank
Building, Station K,
Dallas 13, Tex.
Louisiana, Texas,
New Mexico, Arizona
12. William P. Funsten
Suite 1120, 315 Mont
gomery Street, San
Francisco 4, Calif.
Idaho, Utah, Nevada,
Washington, Oregon, Cali
fornia, Alaska, Hawaii
vi
F E D E R A L DEPOSIT INSURANCE CORPORATION
DISTRICT 2 INCLUDES PUERTO RICO & VIRGIN ISLANDS
DISTRICT 4 INCLUDES DISTRICT OF COLUMBIA
DISTRICT 12 INCLUDES HAWAII & ALASKA
DISTRICTS
CONTENTS
Summary...................................................................................................................
Page
xvii
PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION
The Federal Deposit Insurance Act of 1950..........................................................
Participation in deposit insurance..........................................................................
Action to protect depositors....................................................................................
Supervisory activities...............................................................................................
Legal developments..................................................................................................
Personnel and financial statements of the Corporation........................................
3
7
10
15
22
23
PART TWO
BANKING DEVELOPMENTS
Assets, liabilities, and capital accounts..................................................................
Assets.........................................................................................................................
Liabilities...................................................................................................................
Capital.......................................................................................................................
Earnings of insured commercial banks...................................................................
Mutual savings banks..............................................................................................
35
35
42
43
46
53
PART THREE
HISTORY OF LEGISLATION FOR THE GUARANTY OR
INSURANCE OF BANK DEPOSITS
Predecessors of the Federal deposit insurance law................................................
Deposit insurance legislation, 1933-1950.................................................................
Analysis of Congressional proposals for deposit guaranty or insurance, 1886-1933
Digest of bills for insurance or guaranty of bank deposits introduced into
Congress, 1886-1933.............................................................................................
63
66
68
80
PART FOUR
LEGISLATION AND REGULATIONS
Federal legislation:
Federal Deposit Insurance A ct...........................................................................
Laws applicable to Federal Deposit Insurance Corporation and insured banks
National bank conversion act.............................................................................
Rules and regulations of the Federal Deposit Insurance Corporation................
State banking legislation.........................................................................................
105
133
153
158
209
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
214
228
240
248
276
LIST OF CHARTS
Organization chart of the Federal Deposit Insurance Corporation.....................
Map: Federal Deposit Insurance Corporation districts........................................
A. (Map). Percentage of banks insured, December 31, 1950............................
B. (Map). Deposits of insured banks as a percentage of deposits of all banks,
December 31, 1950........................................................................................
C. Assets of all banks, United States and possessions, December 31, 1945-1950
D. Percentage increase of total loans in all banks, December 31, 1945-1950. .
E. Amount and type of loans, insured commercial banks, December 31, 19451950................................................................................................................
F. Ratios of substandard loans and valuation reserves to total loans, insured
commercial banks, 1950...............................................................................
G. Banks grouped by ratio of total capital accounts to total assets, insured
commercial banks, December 30, 1950.......................................................
H. Ratio of total capital accounts to total assets, insured commercial banks,
December 30, 1950........................................................................................
I. Ratio of total capital accounts to risk assets, insured commercial banks,
December 30, 1950........................................................................................
J. Sources and disposition of total income, insured commercial banks, 1950..
K. Disposition of net profits after taxes, insured commercial banks, 1935-1950
L. Rate of net profit after taxes on total capital accounts, insured commercial
banks, 1950....................................................................................................
M. Sources and disposition of total income, insured mutual savings banks, 1950
Page
iv
vii
8
9
36
38
39
41
44
45
45
46
52
53
58
L I S T OF T A B L E S
PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION
P a r t ic ip a t io n i n d e p o s it in s u r a n c e :
1. Number and deposits of operating banks in the United States and pos
sessions, December 30, 1950........................................................................
9
A c t io n t o p r o t e c t d e p o s it o r s :
2. Losses to depositors and to the Federal Deposit Insurance Corporation in
insured banks in financial difficulties, by years, 1934-1950.....................
3. Number of depositors, amount of deposits, recoveries, and losses in insured
banks placed in receivership or absorbed with the financial aid of the
Corporation, 1934-1950.............................................................................. .
4. Payment of deposits by the Corporation and by receivers in insured banks
placed in receivership, 1934-1950................................................................
5. Disbursements to protect depositors, recoveries, and losses by the Cor
poration from insured banks placed in receivership or absorbed with
its financial aid, 1934-1950...........................................................................
6. Estimated losses to the Corporation compared with disbursements, by
year of estimate, 1944-1950.........................................................................
11
12
13
14
15
S u p e r v is o r y a c t i v i t i e s :
7. Summary of unsafe and unsound banking practices and violations of laws
charged against three banks by the Corporation during 1950..........
8. Actions to terminate insured status of banks charged with engaging in
unsafe or unsound practices or violations of law or regulations, 1936-1950
x
19
20
LIST OF TABLES
xi
Page
O rganization and financial statements of the C orporation :
9. Number of officers and employees, Federal Deposit Insurance Corporation,
December 31, 1950......................................................................................................
10. Statement of operations of the Federal Deposit Insurance Corporation
for the year ended December 31, 1950................................................................
11. Determination and distribution of net assessment income for the year
ended December 31, 1950.........................................................................................
12. Operating costs and expenses of the Federal Deposit Insurance Corporation
for the year ended December 31, 1950................................................................
13. Income and expenses of the Federal Deposit Insurance Corporation since
beginning operations September 11, 1933, adjusted as of December 31,
1950..................................................................................................................................
14. Assets and liabilities of the Federal Deposit Insurance Corporation,
1934-1950.......................................................................................................................
15. Statement of condition of the Federal Deposit Insurance Corporation,
December 31, 1950......................................................................................................
16. Assets acquired by the Federal Deposit Insurance Corporation through
bank suspensions and absorptions from beginning of operations to
December 31, 1950......................................................................................................
17. Relation of the deposit insurance fund to the deposits of insured b an k s..
18. Financial statements of the Federal Deposit Insurance Corporation—
from Auditors’ Report for year ended June 30, 1950.....................................
23
24
24
25
26
27
27
28
29
30
PART TW O
B A N K IN G DEVELO PM ENTS
A ssets , liabilities , and capital accounts :
19. Assets and liabilities of all banks in the United States and possessions,
December, 1950, 1949, and 1945............................................................................
35
A ssets :
20. Maturities of United States Government obligations held by insured
commercial banks, December, 1941-1950...........................................................
21. Principal types of loans of all banks in the United States and possessions,
December, 1945-1950.................................................................................................
22. Substandard assets of insured commercial banks, examinations, 19391950..................................................................................................................................
40
L iabilities :
23. Deposits of all banks in the United States and possessions, by type of
deposit, June and December, 1945-1950.............................................................
42
C apital :
24. Capital accounts of insured commercial banks in the United States and
possessions, December, 1934-1950.........................................................................
43
E arnings of insured commercial b an k s :
25. Sources and disposition of total income, insured commercial banks, 19451950..................................................................................................................................
26. Earnings, expenses, and profits of insured commercial banks, 1934-1950..
27. Selected operating ratios of insured commercial banks, 1945-1950...........
28. Insured commercial banks using reserve method of accounting for baddebt losses on loans in accordance with ruling of Commissioner of
Internal Revenue, 1948-1950...................................................................................
M utual savings b a n k s :
29. Number and deposits of all banks and of mutual savings banks, States
having mutual savings banks, December 30, 1950......................................
30. Assets and liabilities of all mutual savings banks in the United States,
December, 1950, 1949, and 1945............................................................................
37
38
46
48
49
51
54
55
xii
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
M utual savings ba n k s :— Continued
31. Maturities of United States Government obligations held by all mutual
savings banks, December, 1948-1950...................................................................
32. Number and deposits of insured and noninsured mutual savings banks,
by State, December 30, 1950..................................................................................
33. Amount and average rate of income received and dividends paid on de
posits, insured mutual savings banks, 1943-1950.............................................
56
57
59
PA R T TH REE
H IS T O R Y OF L E G ISL A T IO N FO R TH E G U A R A N T Y OR
IN SU RAN C E OF B A N K D EPO SITS
Predecessors of the F ederal deposit insurance l a w :
34. Deposits insured and sources of funds in deposit insurance plans enacted
by Congress or passed by one house....................................................................
C ongressional proposals for deposit guaranty or
1886-1933:
Congressional bills for guaranty or insurance of bank deposits, 1886-1933. .
Banks required or permitted to participate in deposit insurance or guaranty
proposals for Federal legislation, 1886-1933......................................................
Administrative authority in proposals for Federal deposit insurance or
guaranty legislation, 1886-1933.............................................................................
Deposits and other liabilities covered by insurance or guaranty in pro
posals for Federal legislation, 1886-1933.............................................................
Sources of funds in proposals for Federal legislation regarding insurance
or guaranty of bank deposits..................................................................................
Rates of assessment on deposits in proposals for deposit insurance...........
Significant changes in bank regulation or supervision accompanying
proposals for Federal insurance or guaranty of deposits...............................
67
A nalysis
of
insurance ,
35.
36.
37.
38.
39.
40.
41.
69
71
72
73
74
75
77
P A R T FIVE
S T A T IST IC S OF B A N K S AN D D EPO SIT IN SU RAN CE
N umber , offices, and deposits of operating ba n k s :
Explanatory note......................................................................................................................
101. Changes in number and classification of operating banks and branches
in the United States and possessions during 1950........................................
102. Number of all operating banks and branches, December 30, 1950
Grouped according to insurance status and class of bank, and by State
and type of office................................................................................................
214
216
218
103. Number and deposits of all operating banks, December 30, 1950
Banks grouped according to insurance status and by district and State. .
A ssets
226
and liabilities of operating b a n k s :
Explanatory note......................................................................................................................
104. Assets and liabilities of all operating banks in the United States and pos
sessions, June 30, 1950
Banks grouped according to insurance status and type of bank...............
105. Assets and liabilities of all operating banks in the United States and pos
sessions, December 30, 1950
Banks grouped according to insurance status and type of bank................
106. Assets and liabilities of all operating banks in the United States and
possessions, December 30, 1950
Banks grouped by district and State.................................................................
107. Assets and liabilities of operating insured banks, December 30, 1950,
June 30, 1950, and December 31, 1949.............................................................
228
230
232
234
236
LIST OP TABLES
xiii
Page
E xam iners ’ evaluation of insured commercial b an k s :
Explanatory note......................................................................................................................
108. Examiners’ appraisal of assets, liabilities, and capital of insured com
mercial banks examined in 1941-1950...............................................................
109. Exam ined appraisal of assets, liabilities, and capital of insured com
mercial banks examined in 1950
Banks grouped according to amount of deposits...........................................
110. Examiners’ appraisal of assets, liabilities, and capital of insured com
mercial banks examined in 1950
Banks grouped by Federal Deposit Insurance Corporation district and
State......................................................................................................................
E arnings , expenses , and dividends of insured b a n k s :
Explanatory note......................................................................................................................
111. Earnings, expenses, and dividends of insured commercial banks, 1942-1950
112. Ratios of earnings, expenses, and dividends of insured commercial banks,
1942-1950.....................................................................................................................
113. Earnings, expenses, and dividends of insured commercial banks, 1950
By class of bank.....................................................................................................
114. Ratios of earnings, expenses, and dividends of insured commercial banks,
1950
By class of bank.....................................................................................................
115. Earnings, expenses, and dividends of insured commercial banks operating
throughout 1950
Banks grouped according to amount of deposits...........................................
116. Ratios of earnings, expenses, and dividends of insured commercial banks
operating throughout 1950
Banks grouped according to amount of deposits...........................................
117. Earnings, expenses, and dividends of insured commercial banks, by
State, 1950..................................................................................................................
118. Earnings, expenses, and dividends of insured mutual savings banks,
1942-1950.....................................................................................................................
119. Ratios of earnings, expenses, and dividends of insured mutual savings
banks, 1942-1950.......................................................................................................
D eposit insurance disbursements :
Explanatory note......................................................................................................................
120. Disbursements, deposits, and depositors in insured banks financially
aided by the Federal Deposit Insurance Corporation, 1934-1950
Banks grouped by class of bank, year of aid, amount of deposits, and
State......................................................................................................................
121. Assets and liabilities of insured banks placed in receivership and of insured
banks absorbed with the financial aid of the Federal Deposit Insurance
Corporation, 1934-1950
-As shown by books of bank at date of closing................................................
122. Name, location, Federal Deposit Insurance Corporation disbursement,
and assets and liabilities of insured banks absorbed with the financial
aid of the Corporation during 1950....................................................................
123. Recoveries and losses by the Federal Deposit Insurance Corporation
in connection with insured banks financially aided by the Corporation,
1934-1950
As shown by books of FDIC , December 31, 1950 .........................................
240
242
244
246
248
250
252
254
256
258
260
262
272
274
276
278
280
281
282
SUMMARY
Summ ary
In the Federal Deposit Insurance Act, approved September 21, 1950,
changes recommended by the Corporation were embodied in the deposit
insurance law. (Pp. 3-7).
During 1950 the Federal Deposit Insurance Corporation disbursed
$3 million to protect depositors in four insured banks in financial diffi
culties. Total disbursements of the Corporation for this purpose since
deposit insurance became effective on January 1, 1934, were $319 million,
extended to protect the depositors of 415 insured banks. The difficulties
of three of the banks aided during 1950 were attributed to defalcations
by officers or employees. (Pp. 10-12).
In 1950 proceedings were initiated against three insured banks for
engaging in unsafe and unsound banking practices. Since 1935 a total
of 145 banks have been charged with engaging in such practices. In
over one-fifth of these cases the banks have corrected the practices; in
most of the remaining cases the banks have suspended operations or
have been absorbed or succeeded by other banks. (Pp. 19-20).
The surplus of the Corporation, which is the deposit insurance fund,
amounted to $1.2.billion at the end of 1950. This is about three-fourths
of 1 percent of the deposits in insured banks. (Pp. 29).
Bank assets and deposits showed a growth of 7 percent in 1950. During
the five-year period between the end of 1945 and the end of 1950 bank
loans expanded by 99 percent, and marked changes occurred in the
composition of the loan portfolios of the banks. At the end of 1950 real
estate loans were 36 percent of all loans, commercial and industrial loans
36 percent, and other loans to individuals 17 percent. (Pp. 35-39).
The capital accounts of banks have not kept pace with their total
assets, nor with those commonly described as “ risk assets.” The ratio
of the capital accounts of insured commercial banks to assets other than
cash and United States Government obligations declined from 26 percent
in 1934 to 17 percent in 1950. (P. 43).
Net profits of insured commercial banks, after taxes, and dividends
paid to stockholders, were larger in 1950 than in any previous year. The
average rate of net profit on total capital accounts, after taxes, was
over 8-1/2 percent. (Pp. 46-52).
A history of deposit insurance legislation shows that 150 bills for
this purpose were introduced into the Congress during the period from
1886 to 1933, and that the basic principles of the deposit insurance
system were developed in these bills and in the experience of various
States with the guaranty of bank obligations used as circulating medium*
(Pp. 63-101).
xvii
PART ONE
OPERATIONS AND POLICIES OF THE CORPORATION
T h e F e d e r a l D e p o s it In su r a n c e A c t o f
1950
Except for brief interruptions, the period since the beginning of Federal
deposit insurance has been a time of business recovery from depression
followed by a continuously high level of business activity. This prosperity
has been reflected both in an increased output of goods and services
and in a larger national income, and has been associated with an ex
pansion of bank deposits and bank assets. In 1950 the dollar value of
the output of the nation was more than four times as large as in
1934, the year the Corporation began operations. The aggregate income
received by individuals, which includes wages and salaries, dividends
and interest, and earnings from unincorporated enterprises, was also
four times as large in 1950 as in 1934. Likewise, the deposits of operating
commercial and savings banks in 1950 were about four times the reported
amount in 1934.
The real economic advance from 1934 to 1950 was much less striking
than is suggested by the foregoing figures. The increase in the value of
output and income of the people reflects in part a larger volume of goods
and services produced and purchased, and in part simply a rise in the
prices at which those goods and services are sold. The real income of the
people and the physical volume of output in 1950 were a little more than
twice the amounts in 1934. Prices of goods and services in 1950 were
about twice the prices of 1934.
The increase in prices meant that a given amount of bank deposits
became less valuable in terms of goods and services. By 1950 the fixed
maximum insurance of $5,000 per depositor provided only about onehalf as much real protection as in 1934. It was therefore to be expected
that a demand should arise for an increase in the statutory insurance
coverage in order to restore the degree of protection which bank depositors
had formerly enjoyed.
Bank failures occur most frequently in times of business depression
and deflation. They are generally few in number in periods of business
recovery and inflation. Since 1934 the number of bank failures has been
unusually low even for a period of recovery and prosperity. This is due
primarily to the existence of Federal deposit insurance and the accom
panying improvement in bank supervision and management. As a result
of the small number of bank failures, the losses and operating expenses
of the Corporation have been less than the income of the Corporation
from the invested portion of the deposit insurance fund. In consequence,
the full amount of the insurance assessments paid by the banks up to
1950 remained in the surplus of the Corporation. Therefore, it was
believed that the insurance assessment rate could be safely reduced.
Moreover, the method of calculating the assessment due to the Cor-
3
4
FEDERAL DEPOSIT INSURANCE CORPORATION
poration, under the law as enacted in 1935, had been found to be cum
bersome and expensive.
Officials of the Federal Deposit Insurance Corporation, as a result
of a decade and a half of administration of the permanent insurance
plan, had found that various aspects of the law could be improved.
These related in part to the methods of handling insured banks which
become involved in financial difficulties, in part to the examination
and supervision of banks, and in part to more technical aspects of the
administration of the law.
These circumstances resulted in various proposals for amending the
deposit insurance law, some of which were embodied in bills introduced
in one or both Houses of the Congress. In 1950 the banking and currency
committees of both the House and the Senate held hearings on a bill
embodying recommendations of the Corporation, and the entire deposit
insurance law was revised. It was also removed from the Federal Reserve
Act, and entitled the “ Federal Deposit Insurance Act.” This Act was
approved by the President and became effective on September 21, 1950.
The new law increases the maximum insurable deposit from $5,000
to $10,000. The immediate effect of this change was to afford full protec
tion to three million additional accounts and to increase the amount of
deposits insured by $12 billion. Nearly 99 percent of all accounts in
insured banks are now fully protected. Under the previous coverage less
than 96 percent of the accounts were fully protected.
The Federal Deposit Insurance Corporation believes that depositors
should retain some element of risk in the deposit insurance system.
Shared risk is an important factor in Federal deposit insurance and its
operation within the present American free enterprise dual banking
system, and also in relation to bank supervision. Owners of small deposits
are protected by the $10,000 maximum; owners of large deposits are
more able to protect themselves by exercising a restraining influence
over managerial policies. Also their personal interest as depositors is a
force in encouraging participation in management.
The new law changes the base for deposit insurance assessment in
two important respects: first, each semiannual assessment computation
is now based on the average of deposits on two dates instead of the daily
average for the six months* period; and second, certain items may be
omitted or deducted from deposits in determining the assessment base,
and alternative methods are provided for computing cash items. For
more detail, see the Corporation’s regulation on assessments, which is
given on pages 190-93.
For several years the Corporation had had under study and analysis
various proposals designed to simplify the computation by banks of
FEDERAL DEPOSIT INSURANCE ACT OF
1950
5
their assessments. Early in 1946 the Corporation commenced a program
of auditing the records of insured banks relating to their assessment
payments. One of the chief purposes of this program was “ to assist the
banks in preparing certified statements with the view to eliminating
any unnecessary work and to correct any errors in interpretation of the
regulations by the banks.” This program contemplated an audit of
1500 banks, or approximately 10 percent of the insured banks, holding
over 70 percent of the deposits in all insured banks. The response of the
banks audited was evidenced by the letters from them regarding the
helpful suggestions our auditors had offered. As a result of its studies
and of the audit the Corporation felt that any change in the assessment
should first provide relief from the large amount of work connected with
the assessment base. The Corporation has not received a single com
plaint from the banks on their first assessment computation under the
new law.
In view of the fact that the Corporation’s need for funds to take care
of depositors in distressed banks had never been tested by a major
business depression, it was recommended that no permanent reduction
in the assessment rate be made. The studies of the Corporation had not
demonstrated that the accumulated fund was adequate, nor had they
determined what would be an adequate fund. In judging the adequacy
of the fund its relation to the Corporation’s potential liability as an
insurer must be given consideration. When compared with the $168
billion of deposits in insured banks, the margin of protection is not
large. At the beginning of the Federal Deposit Insurance Corporation
in 1934 the ratio of the Corporation’s capital and surplus to deposits
in insured banks was 0.73 percent, while as of December 31, 1950, the
ratio was 0.74 percent. The capital accounts of insured banks must also
be considered in connection with the adequacy of the deposit insurance
fund. The ratio of the banks’ capital funds to total assets has decreased
from 14 percent in 1934 to 7 percent at the close of 1950.
The new law retains the previous assessment rate of 1/12 of 1 percent ,
of deposits per year, but provides credits to insured banks in years in
which the Corporation’s assessment income exceeds its losses and ex
penses. The law provides that operating costs and expenses, insurance
losses and expenses, and additions to reserves for losses after adjust
ments applicable to prior periods, shall be deducted from the assessment
becoming due each calendar year at the rate of 1/12 of 1 percent of
deposits. The Corporation retains 40 percent of the net assessment income,
and the balance is to be credited pro rata to insured banks to be applied
toward payment of their assessment next becoming due. If this credit is
larger for any bank than the next assessment, the excess is applied to
the payment of succeeding assessments. The assessment income for the
calendar year 1950, the deductions therefrom, and the division of the
6
FEDERAL DEPOSIT INSURANCE CORPORATION
net assessment income between the Corporation and the banks, are
shown in Table 11, page 24.
As a result of the coverage and assessment provisions of the new law
the amount of deposits insured is increased about 15 percent and the
premium is in effect decreased by approximately 50 percent. That this
can be done without disturbing the confidence of depositors is a tribute
to the effectiveness of deposit insurance and the improvement in manage
ment and bank supervision which has taken place during the seventeen
years the Corporation has been in existence.
One of the principal changes introduced into the new Act, designed
to improve the administration of deposit insurance, is an authorization
for the Corporation, in the discretion of its Board of Directors, to make
loans to, purchase assets from, or make deposits in any insured bank in
danger of closing, if continued operation of the bank is essential to provide
adequate banking facilities for the community [Section 13 (c)]. Under
the old law the Corporation could make loans to or purchase assets from
a bank in financial difficulties only when such action would facilitate a
merger with or assumption of liabilities by another insured bank. This
section further provides that such loans and deposits may be in subordina
tion to the rights of other depositors and creditors. It is the intent of
the Corporation to exercise this discretionary authority sparingly and
only in special situations and in so doing to surround such advances
with appropriate safeguards to protect the best interests of the Cor
poration. This change provides more flexibility in the handling of banks
in financial difficulties.
The Corporation is authorized by the new law to make special ex
aminations of national banks and State banks members of the Federal
Reserve System when such action is deemed advisable by the Board of
Directors to determine the insurance risk. This gives the Corporation
for the first time the authority to make its own appraisal of its risks in
providing deposit insurance for those banks. Under the previous law
over half of the insured banks, holding about 80 percent of the deposits
of all insured banks, could not be examined by the Corporation without
the written consent either of the Comptroller of the Currency or of the
Board of Governors of the Federal Reserve System.
The new law includes a provision designed to help insured banks avoid
weakening their financial structures in connection with voluntary mergers
and consolidations. Withdrawal of capital and surplus in such cases is
prohibited except with the consent of the Comptroller of the Currency
if the continuing or succeeding bank is a national bank, the Board of
Governors of theuFederal Reserve System if a State bank member of the
Federal Reserve System, and the Federal Deposit Insurance Corporation
if an insured State bank not a member of the Federal Reserve System,
FEDERAL DEPOSIT INSURANCE ACT OF
1950
7
The new law contains a provision that requires the Corporation to
pay to the United States Treasury interest at the rate of 2 percent per
year for the amounts advanced to the Corporation by the Federal Reserve
banks and the Treasury for its original capital, for the time such funds
remained in the Corporation’s capital account. This interest, computed
for the period covered, amounts to $81 million. One-half of this amount
was paid on December 30, 1950, and the balance will be paid prior to
July 1, 1951.
Another provision of the new law prohibits the use of such phrases
as “ Federally insured” in advertisements by insured banks and other
financial institutions. For the exact provisions, see pages 131-132.
The Board of Directors recommended to the Congress that the new
Federal Deposit Insurance Act contain authority for the audit of the
Corporation’s financial transactions by the General Accounting Office.
The Board of Directors of the Corporation is proud of the opinion ex
pressed by the auditors regarding the quality of management of the
Corporation, and with minor exceptions the Corporation’s relations
with this independent Government auditing agency have been most
pleasant. The Board of Directors has always recognized that audits
made by an independent outside agency serve not only to inform the
public and the Congress of the Corporation’s financial operations but
also are of assistance to the Board of Directors in its management func
tions. For five years prior to the Federal Deposit Insurance Act of 1950,
authority for the audit of the financial transactions of the Corporation
had been incorporated in the Government Corporation Control Act.
However, the Board of Directors was of the opinion that the audit
authority should be part of the organic law of the Corporation and
should not be set forth in a law applicable to government corporations
generally since the fiscal affairs of the Federal Deposit Insurance Cor
poration have little, if anything, in common with those of other govern
ment corporations. Congress adopted the recommendation of the Cor
poration; and authority for the audit of its financial transactions by the
General Accounting Office is set forth in Section 17 of the Act. In addition
to the audit report to the Congress, the Corporation also receives a
short form report from the General Accounting Office, which is utilized
in connection with the assessment credits to banks under Section 7(d)
of the Act.
P a r t ic ip a t io n
in
D ep o sit I n s u r a n c e
The proportion of all banks participating in Federal deposit insurance
continued its upward trend during 1950. At the end of the year over
93 percent of all banks of deposit in the United States and possessions,
holding over 95 percent of total deposits, were insured.
8
FEDERAL DEPOSIT INSURANCE CORPORATION
Participation by State. In ten States and the District of Columbia
all banks regularly engaged in deposit banking were insured. Seven of the
States were in the West—Arizona, Montana, Nevada, New Mexico,
South Dakota, Utah, and Wyoming; two in the East—Vermont and
Virginia; and one in the South—Alabama.
In many other States participation in deposit insurance was virtually
complete. In each of seven States—Delaware, Idaho, Louisiana, Mary
land, New Jersey, North Carolina, and Oregon—there was only one
noninsured bank of deposit at the end of 1950; in each of two States—
California and Florida—there were only two.
The percentages of banks insured and of deposits held by insured
banks in each State are shown in Charts A and B. These compilations
exclude trust companies not regularly engaged in deposit banking. The
number and deposits of all banks grouped by type of bank and insurance
status are given in Table 1.
In each of four States—Maine, New Hampshire, Massachusetts, and
Connecticut—deposits of insured banks amounted to less than twothirds of total deposits. The lower ratio of deposits in insured banks
in New England is due chiefly to the considerable number of mutual
savings banks in that area not participating in deposit insurance.
9
PARTICIPATION IN DEPOSIT INSURANCE
Table 1 .
N u m b e r a n d D e p o s i t s o f O p e r a t i n g B a n k s in t h e U n i t e d S t a t e s
a n d P o s s e s s i o n s , D e c e m b e r 30, 1950
Number of banks
Type of bank and insurance status
Number
Total deposits
Percentage
distribution
Amount
(in millions)
$176,120
Percentage
distribution
All banks and trust com panies— t o ta l. . .
14,693
100.0%
Banks o f deposit— t o t a l...........................
Insured.......................................................
Noninsured.................................................
14,622
13,634
988
100.0
93.2
6.8
176,039
167,817
8,222
100.0
95.3
4.7
C om m ercial ba n k s....................................
Insured.......................................................
Noninsured.................................................
14,093
13,440
653
100.0
95.4
4.6
156,008
153,497
2,511
100.0
98.4
1.6
M utual savings bank s..............................
Insured.......................................................
Noninsured.................................................
529
194
335
100.0
36.7
63.3
20,031
14,320
5,711
100.0
71.5
28.5
Trust com panies n ot regularly engaged
in deposit ba n k in g.............................
Insured.......................................................
Noninsured.................................................
71
6
65
100.0
8.5
91.5
81i
1
80
100.0%
100.0
1.2
98.8
1 Uninvested trust funds and special accounts.
Detailed data: See Table 103, pp. 226-27.
In only one State—North Dakota—did noninsured commercial banks
hold more than 10 percent of total bank deposits. These deposits were
held by five banks, one of which is owned by the State and which ac
counted for a substantial part of the deposits of noninsured banks.
Chart B.
D e p o s its o f I n s u r e d B a n k s as a P e r c e n ta g e o f D e p o s its
o f a l l B a n k s , D e c e m b e r 31, 1950
10
FEDERAL DEPOSIT INSURANCE CORPORATION
A c tio n
to
P r o tec t D epo sito r s
Aid to insured banks for protection o f depositors, 1950. During
1950 four insured banks needed financial aid from this Corporation to
protect their depositors. In all four cases the Corporation was able to
consummate transactions whereby other insured banks in the same
localities assumed the deposit liabilities and acquired certain assets of
the banks in trouble. The difference between the deposits assumed and
the assets accepted was furnished in cash by the Corporation, which in
return took the unacceptable assets. To purchase these assets the Cor
poration disbursed $3,183,000.
In three of these banks large defalcations were the direct cause of the
difficulties. In the fourth bank, adversely classified assets were the
immediate cause, but defalcations in substantial amounts were dis
covered after the bank was taken over and its affairs were subjected to
close scrutiny. The records in all four banks were found to have been
falsified or partially destroyed, and it is not yet possible to give accurate
figures for the amount of deposits or the number of accounts involved.
The estimates now available indicate that total deposits of the banks
were nearly $6,000,000 and the number of accounts over 6,000.
Each of the three banks in which defalcations were the immediate
cause of closing was carrying fidelity insurance in an amount approxi
mating the recommendation of the Insurance and Protective Committee
of the American Bankers Association. However, the sum of the pecula
tions was more than ten times the amount of fidelity insurance carried.
The Federal Deposit Insurance Corporation emphasizes that along with
the need for adequate fidelity insurance is the need for more internal
controls and ceaseless vigilance by bank directors. The control of fraud
in banks is definitely a responsibility of the directors, and not that of a
governmental agency. Examinations of banks by supervisory agencies
are focused on determination of the solvency and adequacy of capital
of the banks, and on compliance with the laws under which the banks
operate, and not upon the discovery and prevention of defalcations.
Directors of a bank are the persons to whom its shareholders and
depositors look for proper management of its affairs. In accepting his
office, each director assumes the responsibility of exercising such care and
diligence in the discharge of his duties as would be shown by an ordinarily
prudent and diligent man. It is the responsibility of the directors to keep
a reasonably close supervision of the bank’s activities by means of
adequate investigations and audits of the bank’s records at intervals
sufficiently frequent to act as a deterrent to careless or fraudulent ten
dencies on the part of bank personnel. Further, the directors have the
additional responsibility to see that internal controls are adequate to
11
ACTION TO PROTECT DEPOSITORS
prevent losses of the bank’s funds through fraudulent and criminal
practices of outsiders, such as are involved in check-kiting schemes.
Aid to insured banks for protection of depositors, 1934-1950.
From the beginning of deposit insurance on January 1, 1934, to the end
of 1950 the Corporation made disbursements in 415 insured banks.
These banks had about 1,354,000 deposit accounts, totaling approxi
mately $533 million. The Corporation disbursed $273 million, exclusive
of advances for the protection and maintenance of collateral, liquidation
expenses, and the cost of assets purchased from receivers of closed banks
or liquidating officers in absorption cases. Including such advances and
expenses, the Corporation disbursed $319 million. The number of de
positors and their losses, together with the disbursements and estimated
losses of the Corporation during each of the 17 years, are given in Table 2.
Table 2.
L o sse s t o D e p o s ito r s an d t o 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 i o n in I n s u r e d B a n k s in F i n a n c i a l D i f f i c u l t i e s ,
b y Y e a r s , 1934-1950
Year
Num
ber
of
banks
Number
of
depositors1
Amount
of
deposits
(in thousands)
Losses
to
depositors2
(in thousands)
Losses
to the
Corporation3
(in thousands)
Disbursements
by the
Corporation4
(in thousands)
$1,824
$26,930
$273,203
1,360
374
697
124
3,183
2,558
3,027
1,777
292
1934-1950..
415
1,354,172
$533,421
1950........
1949........
1948........
1947
1946
4
4
3
5
1
6,224
5,660
18,311
10,618
1,404
5,766
4,977
10,455
6,966
316
1945
1944
1943
1942
1
2
5
20
12,484
5,488
27,372
60,602
5,695
1,915
12,535
19,011
3
13
5
41
124
683
1,874
1,520
7,250
11,154
1941
1940
1939
1938
15
43
60
74
73,046
256,373
392,765
203,970
29,721
142,389
157,790
59,724
33
31
985
40
610
4,145
7,422
2,432
23,930
74,456
67,804
30,512
1937
1936
1935
1934
75
69
25
9
130,409
89,024
44,655
15,767
33,345
27,528
13,320
1,968
109
171
415
19
3,564
2,415
2,732
207
19,202
14,833
8,890
941
1 Number of depositors in receivership cases; number of deposit accounts in absorption cases.
2 Excludes unclaimed deposits on which insurance has been terminated or the claims barred by
statute of limitations. Includes restricted or deferred deposits.
* Sum of losses in the cases in which the disbursement by the Corporation to protect depositors
was not repaid in full. Excludes interest or gains in cases in which the disbursement by the Corporation
was fully recovered, and gains or losses on assets purchased by the Corporation from receivers of closed
banks. For the net loss of the Corporation, see the item, “ Losses— estimated net total," in Table 16,
p. 28.
* Principal disbursements only. Does not include expenses.
Detailed data: See Tables 120-123, pp. 278-82.
Of the banks in which the Corporation made disbursements, 245
were placed in receivership and 170 were absorbed by other insured
banks. In the receiverships 334,425 depositors were paid irfTull, including
those who failed to make claims but whose funds were held in trust,
and 48,339 sustained some loss after payment of the insured deposits
12
FEDERAL DEPOSIT INSURANCE CORPORATION
by the Corporation. In the absorptions none of the 971,408 depositors
experienced any loss, as all deposit liabilities were assumed by the ab
sorbing banks. The depositors in the banks absorbed, together with
those in receiverships who were paid in full, constituted 96.4 percent
of all depositors involved. In amounts, recoveries to depositors are
estimated to be $531,358,000, or a total of 99.6 percent of all deposits
in the 415 banks. In addition $59,000 was paid into funds held in trust
for depositors whose claims were not presented within the prescribed
time. Further details are given in Table 3.
Table 3.
N u m b er o f D epo sito rs , A m o u n t of D eposits , R e c o v e r ie s , an d
L osses in I n su re d B a n k s P laced in R e c e iv e r s h ip or A bso r bed w it h
the
F in a n c ia l A id of th e C o rpo r atio n , 1934-1950
Item
Banks placed
in
receivership
Total
Banks absorbed
with financial
aid of the
Corporation
Number of banks............................................................
415
245
170
N um ber o f d epositors................................................
1,354,172
382,764
971.408
1,301,867
2,483
330,459
2,483
971.408
Estimated number with no loss................................
Estimated number with some loss1...........................
Estimated number with claims barred by termina
tion of insurance or receivership...........................
49,822
49,822
A m ou nt o f deposits (in thousands)..........................
$533,421
$109,603
$423,818
Estimated recovery by depositors............................
Estimated loss by depositors.....................................
Insurance terminated or claims barred....................
531,358
1,824
239
107,540
1,824
239
423,818
Disbursem ents by the C orporation (in thousands)2
$273,203
$87,044
$186,159
Estimated loss to the Corporation (in thousands)3
26,930
14,401
12,529
1 1,514 depositors will lose an estimated $1,783,000 in accounts which exceeded the limit of $5,000
insurance and were not otherwise protected, and 969 depositors will lose about $41,000 in accounts
which had been restricted or deferred prior to 1934, or were otherwise ineligible for insurance protection.
2 Excludes advances for the protection and maintenance of collateral, liquidation expenses, and the
cost of assets purchased from receivers of closed banks. Also excluded is $17,000 set aside for payment
of depositor's claims not yet proven in the receivership cases. For the amount of disbursements including
these items, see Table 16, p. 28.
3 See note 3 to Table 2.
Detailed data: See Tables 120-123, pp. 278-82.
Receiverships. All of the 245 receiverships of insured banks occurred
prior to June 1944. Since that date the Federal Deposit Insurance Cor
poration has successfully protected all deposits in insured banks. That
is to say, for nearly seven years receiverships of insured banks in difficulty
have been avoided, and no depositor of any insured bank has lost a
single penny because of bank failures. This constitutes an all-time
record in the nation’s history for bank solvency and safety of deposits.
The Corporation’s disbursements to depositors in the 245 receiverships
were $87,044,000. In addition, $17,000 has been set aside for unproven
claims. This figure is slightly less than was previously reported due to
final determination of unproven depositors’ claims, which^ hadjbeen
carried as insured deposits by the Corporation pending such determina
13
ACTION TO PROTECT DEPOSITORS
tion. Losses to the Corporation in the receivership cases are expected
to amount to $14,401,000 or 16.5 percent of disbursements. Those to
depositors will average only 2 percent of their deposits. Further details
regarding the paid and unpaid deposits are given in Table 4.
T a b le 4 .
P a y m e n t of D eposits b y t h e C o rpo ration a n d b y R e c e iv e r s
in
I n su r e d B a n k s P laced in R ec e iv e r s h ip , 1934-1950
(In thousands)
Status of deposits
Paid byDec. 30,
1950
Total
Unpaid on
Dec. 30,
1950
Deposits— to ta l........................................................................
$109,603
$107,582
$2,021
Insured....................................................................................
Secured, preferred, and subject to offset.............................
In excess of $5,000, not otherwise protected......................
Other uninsured......................................................................
Insurance terminated or claims barred2...............................
87,061
11,682
9,685
936
239
87.044
11,682
7,902
895
59
17
(l)
1,783
41
180
Deposits, term inated receiverships, (240 banks)— total
Insured.......................................
..................
Secured, preferred, and subject to offset.............................
In excess of $5,000, not otherwise protected......................
Other uninsured......................................................................
Insurance terminated or claims barred...............................
$ 86,042
68,779
10,045
6,086
936
196
$ 85,032
68,779
10.045
5,254
895
*59
$1,010
Deposits, active receiverships, (5 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................................
$ 23,561
18,282
1,637
3,599
$ 22,550
18,265
1,637
2,648
$1,011
17
(»)
951
43
832
41
137
43
i Less than $500.
* Includes in a few cases payments by receivers, either directly or into a trust, to meet claims pre
sented after termination of receivership.
The Corporation acts as receiver for all insured national banks placed
in receivership, and for closed insured State banks when so appointed
by State authorities. The Corporation has been able to terminate the
receiverships in the cases in which it was receiver, except for one national
bank where legal difficulties prevented prompt liquidation. This bank
had deposits of about $1 million. It is estimated that no loss will be
suffered by depositors or by the Corporation in this case. In the four
remaining State receiverships, the Corporation was not appointed
receiver. However, through cooperation with the State banking authori
ties, periodic reports by the receivers or liquidators are received by the
Corporation. These banks had deposits aggregating $23 million at the
time of failure. It is now estimated that in three of these banks neither
the depositors nor the Corporation will have any loss. In the fourth,
losses will amount to nearly $1 million for depositors and over $4 million
to the Corporation. The Corporation anticipates that the process of
liquidation of all five of these banks will be completed during the forth
coming year.
Ten receiverships were terminated during 1950. Total deposits in
these banks were $17,574,000. The Corporation disbursed $14,480,000
14
FEDERAL DEPOSIT INSURANCE CORPORATION
to insured depositors on which it recovered all but $269,000. The de
positors with accounts in excess of $5,000 lost only $24,000. The Cor
poration also incurred $94,000 in nonrecoverable expenses in paying off
insured depositors.
Absorptions. The Corporation’s disbursements in the form of loans
to banks in difficulty or purchases of assets from such banks amounted
to $186,159,000. Liquidation of the assets acquired by the Corporation
has been completed in 155 of the 170 absorbed banks. At the end of
1950 liquidation was in progress in the remaining 15 cases.
Assets acquired by the Corporation in the absorption cases are
liquidated in such manner and during such period as may be necessary
to provide the largest recovery. In cases where the Corporation recovers
more than the full amount of its investment plus advances, expenses,
and an allowable return on its investment, the excess is delivered to the
banks’ stockholders.
Recoveries and losses to the Corporation. By December 31, 1950,
the Corporation had recovered nearly $291 million of its $319 million
total disbursements in receiverships and absorptions. The Corporation
expects to recover an additional $2 million from liquidations not yet
terminated. Table 5 summarizes the Corporation’s disbursements and
its recoveries and losses in the two groups of cases.
Table 5.
D is bu r se m e n t s to P rotect D eposito rs , R e c o v e r ie s , a n d
L osses b y th e C orpo ratio n from I n su r e d B a n k s P laced in
R ec e iv e r s h ip or A bsorbed w it h its F in a n c ia l A id ,
Item
Total
1934-1950
Liquidation
terminated
Liquidation
active
N um ber o f b a n k s....................................................................
Receiverships..........................................................................
Absorptions.............................................................................
415
245
170
395
240
155
20
5
15
Disbursem ents (in thousands)1..............................................
Receiverships..........................................................................
Absorptions.............................................................................
$273,203
87,044
186,159
$184,236
68,779
115,457
$88,967
18,265
70,702
166,729
58,778
107,951
77,496
13,711
63,785
Estimated additional disbursem ents in receiverships
(in thousands)3....................................................................
17
Recoveries (in thousands).......................................................
Receiverships..........................................................................
Absorptions.............................................................................
244,225
72,489
171,736
Estimated additional recoveries (in thousands)...............
Receiverships..........................................................................
Absorptions.............................................................................
2,065
171
1,894
Losses by the C orporation (in thousands)*.........................
Receiverships..........................................................................
Absorptions.............................................................................
26,930
14,401
12,529
17
2,065
171
1,894
17,507
10,001.
7,506
9,423
4,400
5,023
1 Includes only principal disbursements; i.e., excludes expenses incident to the transaction, the
greater part of which has been recovered. See note 2 to Table 3.
* Insured deposits which have not been paid. See note 2 to Table 3.
* Losses on principal disbursements: see note 3 to Table 2. Losses in terminated cases are the estab
lished losses; those in active cases are estimated.
Detailed data: See Table 123, p. 282.
15
ACTION TO PROTECT DEPOSITORS
The Corporation’s recoveries include $244 million recovery on $273
million principal disbursements and full recovery of expenses incident
to the transactions. The expenses which were recovered include advances
for the protection and maintenance of collateral, expenses of liquidation
of assets acquired in absorption cases, and the cost of assets purchased
from receivers of closed banks or liquidating officers in absorption cases.
The Corporation’s losses in the 415 insured banks placed in receiver
ship or absorbed with its financial aid are estimated at $27 million.
Depositors’ losses in the receivership cases are estimated at $2 million.
In addition, losses of the Reconstruction Finance Corporation on pre
ferred stock investments in these banks are estimated at $41 million.
That Corporation had invested approximately $43 million in those
banks, of which it will recover only $2 million. The total losses to de
positors, to the Federal Deposit Insurance Corporation, and to the
Reconstruction Finance Corporation is therefore approximately $70
million, or 13 percent of the total deposits of the 415 banks.
In 1950 the total estimated losses to the Corporation increased be
cause of the disbursements to four additional banks during the year.
Estimates of losses are necessarily subject to substantial revision, as it
is impossible to determine accurately the value of many of the assets
acquired until after careful and detailed analysis has been made or, in
some cases, until actual disposal.
Table 6 gives the figures of total losses to the Corporation as estimated
at the end of each of the past seven years. Comparable data for prior
years are not available.
T a b le 6.
E stim ated L osses to th e C o rporatio n C o m pared w it h D is b u r s e m e n t s ,
by
Period
1934-1950....................................
1934-1949....................................
1934-1948....................................
1934-1947....................................
1934-1946....................................
1934-1945....................................
1934-1944....................................
Y e a r of E s t im a t e , 1944-1950
Number
of
banks
415
411
407
404
399
398
397
Disbursements
to end of
period
(in thousands)1
Losses as
estimated at
end of period
(in thousands)2
$273,203
269,961
266,976
264,184
262,133
261,717
259,696
$26,930
25,490
24,930
26,014
28,896
31,111
38,810
Estimated
losses as
percent of
disbursements
9.8%
9.4
9.3
9.8
11.0
11.9
14.9
1 Principal disbursements. See note 2 to Table 3.
2 Losses on principal disbursements. See note 3 to Table 2.
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 estab
lishment has been to examine at least once annually each insured State
bank which is not a member of the Federal Reserve System. The infor
16
FEDERAL DEPOSIT INSURANCE CORPORATION
mation of the Corporation relating to national banks is derived chiefly
from a review of reports of examination furnished by the Office of the
Comptroller of the Currency; and information relating to State banks
members of the Federal Reserve System from a review of reports of
examination furnished by the Board of Governors of that System. In
a few cases the Corporation has made special examinations of national
banks or State banks members of the Federal Reserve System. These
have been made in connection with proceedings to terminate the insured
status of banks engaged in unsafe or unsound practices, or purchase of
assets and the making of loans to distressed banks, or applications for
continuance of insurance of banks contemplating withdrawal from the
Federal Reserve System or conversion from a national to a State bank.
The Corporation, since its beginning, has conducted approximately
113,000 bank examinations, of which about 200 have been of institutions
regularly examined by another Federal agency.
During 1950 the Corporation conducted 6,526 regular examinations.
In addition, it made approximately 820 other examinations and in
vestigations. The latter figure includes 127 repeat examinations, 55
entrance examinations of operating banks, 132 new bank investigations,
106 branch investigations, and about 400 miscellaneous investigations.
The above figures do not include the regular examinations of 1,186
branches and 775 trust departments. In addition to reviewing and
analyzing these reports, the Corporation reviewed and analyzed 2,085
reports of examination performed by the Federal Reserve banks and
5,745 reports of examination performed by the Office of the Comptroller
of the Currency.
During the year the Corporation approved the retirement of preferred
capital amounting to $6,300,000, at retirable value, in 167 insured banks
not members of the Federal Reserve System. About two-thirds of this
was held by the Reconstruction Finance Corporation and the remainder
by private investors. Much of this amount was replaced by cash sub
scriptions to new issues of common stock. In conjunction with its ex
amining activities, the Corporation was instrumental in effecting capital
increases in other instances, either through cash subscriptions or stock
dividends. Altogether, cash increases totaled $5,100,000 in common
and preferred stock, and $3,700,000 in other capital segregations. In
addition, common capital accounts in these banks were increased by
approximately $14,800,000 through the medium of dividends payable
in common stock.
Since the inauguration of deposit insurance in 1934, officials of the
Corporation have repeatedly called attention to the need for adequate
capital in insured banks. The Corporation has urged banks to retire as
rapidly as possible, without impairing the adequacy of their capital, the
SUPERVISORY ACTIVITIES
17
preferred stock which was issued to the Reconstruction Finance Cor
poration during the depression years of the early 1930’s and to build
up their capital through retention of earnings or through the sale of
additional stock to private investors. The Reconstruction Finance
Corporation originally invested more than $1 billion in the capital of
about 6,000 banks. By the end of 1950 this had been reduced to $98
million in 423 banks.
The Corporation continues to recommend that insured banks carry
fidelity bond coverage equal to or above the amounts suggested by the
Insurance and Protective Committee of the American Bankers Asso
ciation. In June of 1950 the Insurance and Protective Committee revised
upwards its schedule of recommended blanket bond fidelity coverage.
Since the change was effected during the calendar year, tabulations
of the number of insured banks which meet the suggested coverage are
not comparable with those for previous years. There is evidence, however,
that the banks should and are continuing to increase their coverage in
compliance with the recommendations of supervisory authorities and
the American Bankers Association.
In 1950 the Division of Examination was successful in maintaining
its field examining force at a point closely approximating its authorized
numerical strength. During March and April 1950 the United States
Civil Service Commission held examinations for appointment to the
position of Bank Examiner. These examinations resulted in the re
establishment of registers of eligibles in the 11 districts of the Corporation
in which the registers had been exhausted. They led also to conversion
to permanent status for non-status incumbent examiners, and provided
a pool of eligibles from which future vacancies in the examining force
may be filled. At the same time the examining staff was brought up to
practically full strength through the appointment of successful candidates.
Educational program for examiners. The Corporation is continuing
its education program for examiners. This program, which was started
in 1946, consists primarily of correspondence work in courses of study
given by the American Institute of Banking, but also includes evening
residence courses offered by colleges or universities and local chapters
of the institute as well as special graduate courses at two selected uni
versities. Total enrollment in all educational projects numbered 285
at year-end.
The more advanced courses of study are made available to a limited
number of examiners each year through enrollment in the American
Bankers’ Association Graduate Schools of Banking held at Rutgers
University and the School of Banking at the University of Wisconsin.
These graduate sessions are held for a two-week period each summer
and consist of an intensified educational training program sponsored
18
FEDERAL DEPOSIT INSURANCE CORPORATION
by bankers primarily for their employees. The average annual enrollment
of the Corporation’s examiners at Rutgers and Wisconsin is about 45
under the present schedule.
More than 900 education courses were completed by personnel of
the Corporation from 1946 to 1950, inclusive. Among those taking
American Institute of Banking courses, 46 were awarded Pre-Standard
Certificates, 38 received Standard Certificates, and 7 received Graduate
Certificates from the Institute. Of the examiners with the Corporation
at the close of 1950, 31 held diplomas from the two Graduate banking
schools. A number of other examiners received college degrees for study
completed in part under the evening residence program, bringing to
224 the total number of such degrees held by Corporation examiners.
In addition, many of those examiners who left the Corporation to take
positions in private banks or State banking departments have benefited
from the educational program sponsored by the Corporation.
The cost of the training program is paid by the Corporation, although
those students who attend the Graduate summer schools must forego
two weeks of their annual leave. The Corporation believes that it is to
its own financial advantage and to the best interest of the dual banking
system to keep its examiners abreast of the times and in step with the
educational advancement of the bankers with whom they deal directly.
The Corporation is proud of its pioneering efforts in the field of inservice training and education of bank examiners. The beneficial effects
of such a program are being disseminated throughout the entire banking
profession.
Unsafe and unsound banking practices and violations of law
or regulations. Section 8(a) of the Federal Deposit Insurance Act
charges the Corporation with the responsibility of keeping insured banks
within the channels of safe and sound banking. Whenever the Board of
Directors finds that a bank has continued to engage in unsafe or unsound
practices or violations of the law, it is required to give to the appropriate
supervisory authority a statement with respect to such practices or
violations for the purpose of obtaining necessary corrections. In situations
of this sort the Corporation works jointly with the supervisory authority
in the attempt to secure correction of the unsound practices or violations
of law. If they are not corrected the Corporation has the authority to
terminate the insured status of the bank. This power is used as an ultimate
sanction only after every effort has been made to correct the difficulty.
Where corrections do not appear to be feasible or likely, the Corporation
prefers to have the bank absorbed by a sounder bank rather than to
terminate the bank’s insured status. Accordingly, formal action to
terminate the insured status of banks has been taken in only a small
number of cases.
19
SUPERVISORY ACTIVITIES
During 1950, proceedings were initiated in accordance with Section 8
of the Federal Deposit Insurance Act against three banks for engaging
in unsafe and unsound banking practices and violations of law. The
practices and violations of law with which these banks were charged
are given in Table 7. In one of these cases, the period given the bank
to make corrections had not expired by the end of the year; in another,
hearings were held and the charges sustained, and plans worked out
for rehabilitation of the bank and correction of the practices; in the other
case, the bank was absorbed by another bank.
Table 7.
S u m m a ry o f U n s a f e o r U n s o u n d B a n k i n 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 C h a r g e d A g a i n s t T h r e e 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 1950
Type of practice or violation
Capital:
Continued operation of the bank with inadequate capital.................
Continued operation of the bank with surplus or common stock im
paired....................................................................................................
Progressive dissipation of capital funds by losses.............................. .
Management and general practices:
Continued operation of the bank with weak and hazardous management
Continued operation of the bank with incapable or self-serving
management..............................................................................................
Continued operation of the bank in an unsafe and extended financial
condition...................................................................................................
Incompetency of the bank’s board of directors.......................................
Failure of the bank’s board of directors to perform duties and functions
and properly to supervise bank’s lending and collection policies. .. .
Continued carrying of large lines and concentrations of credit to officers
and directors of the bank........................................................................
Preferential treatment of dealings with an affiliated finance company..
Utter disregard of the bank’s directors and officers to heed and comply
with the recommendations of the State banking authority and of the
Corporation..............................................................................................
Failure to heed the criticisms and recommendations of the bank’s
examiners..............................................................................................
Failure to maintain true and correct records.......................................
Failure to preserve the bank’s assets....................................................
Failure to file claims for and to collect insurance on losses thus protected
Insufficient earnings to take looses as they occur................................
Loan and investment practices:
Maintenance of lax lending and collection policies...............................
Large amount of assets classified as “ substandard” and as “ doubtful1
or “ loss” , as those terms are defined in reports of examination. . . .
Large amount of past due loans..............................................................
Continued making of improvident, or hazardous and improvident,
loans..........................................................................................................
Large amount of loans extended to borrowers heavily indebted to the
President of the bank and his interests.............................................
Failure to restrict total loans to reasonable proportion of assets. . . .
Failure to give necessary attention to loans of questionable value to
prevent them from developing into losses.........................................
Failure to obtain and maintain adequate credit information.............
Failure to obtain and maintain insurance and evidences of title on
properties held as security to loans...................................................
Failure to inspect and appraise chattels and real estate held as security
for loans................................................................................................
Violations of law:
Failure to observe and comply with, and violation of, State banking
laws...........................................................................................................
Extension of credit to directors and officers and their interests not in
conformity with legal requirements.......................................................
Extensions of credit in excess of statutory limitations...........................
Continued practice of bank’s board of directors and officers of know
ingly violating and permitting violations of law..............................
Case
identi
fication
letters
Number
of banks
charged
a, b, c
a, c
b
a, b, c
b, c
b
b
a, b
a, b, c
a, b, c
b, c
a, b
b
c
b
a, b, c
a, b
b
a, b, c
c
a, b, c
20
FEDERAL DEPOSIT INSURANCE CORPORATION
In four other cases, proceedings with respect to banking practices
were pending at the beginning of the year. These were banks previously
charged with unsafe and unsound practices and violations of law, with
final action by the Corporation deferred in view of proposed correction
programs. In one of these cases, corrections were made and the action
dismissed. In the other three, progress was made in the development
of corrective programs, and further action by the Corporation was
deferred pending reexamination or completion of the rehabilitation
programs.
Since 1935, when the Corporation was given authority to terminate
the insurance of banks which continue to engage in unsafe or unsound
practices or violations of law or regulations, a total of 145 banks have
been charged with such practices and violations. The disposition of
these cases is given in Table 8.
T a b le 8 .
A c tio n s t o T e r m in a te In s u re d S ta t u s o f B a n k s C h a rg e d
w ith E n g a g in g in U n s a fe o r U n sound P r a c tic e s o r V io la t io n s
o f L aw o r R e g u la t io n s , 1936-1950
Disposition or status
T ota l banks against w hich action was ta k e n .................
Total
cases
1936-19501
Started
during
1950
Pending
beginning
of 1950
145
4
32
1
Gases 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 operation*..........................................
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........................
61
5
Gases pending December 31, 1950:
Correction period not expired...............................................
Action deferred pending reexamination or completion of
rehabilitation program...................................................
4
3
7
3
32
1
1
1
3
1
1 No action to terminate the insured status of any bank was taken before 1936. In 5 cases where
initial action was replaced by action based upon additional charges, only the later action is included.
a One of these suspended 4 months after its insured status was terminated.
Back data: See the Annual Report of the Corporation for 1949, p. 13, and earlier reports.
Approval of banks for insurance. During 1950 the Corporation
approved the applications of 102 banks for admission to insurance. Of
these, 56 were new banks, 38 were operating as noninsured banks at
the beginning of the year or were successors to such banks, 1 was a
financial institution which had not been engaged previously in deposit
banking, and 7 were insured banks which obtained new charters or
withdrew from the Federal Reserve System. Five applications for ad
mission to insurance were disapproved because the conditions enumerated
in the deposit insurance law were not met.
SUPERVISORY ACTIVITIES
21
The number of applications for admission to insurance acted on by
the Corporation in prior years is given in the Annual Report of the
Corporation for 1949, page 14. For the number of banks which became
insured during 1950—a figure which differs from the number approved
for insurance by the Board of Directors—see page 216 of this report.
Approval o f actions by insured banks. During 1950 the Corporation
approved the establishment of 87 branches by insured banks not members
of the Federal Reserve System. Of these, 76 were for the establishment
of new banking offices, and 11 were banks to be absorbed and converted
into branches. The Corporation also approved continuation of operation
of 38 branches previously operated by absorbed banks, and the sale
of one branch to another bank with assumption of the deposits of the
branch. The Corporation disapproved three applications for permission
to establish branches. For Corporation actions regarding establishment
of branches in prior years, see the Annual Report of the Corporation
for 1949, page 15.
During 1950 the Corporation approved the applications of 10 insured
banks for permission to exercise trust powers, and disapproved one such
application. The Corporation approved one bank’s application for
permission to change the business of a paying and receiving station to
that of a regular branch.
The Corporation approved in ten cases the assumption of deposit
liabilities of one bank by another bank. In five of these cases, deposits
of a noninsured bank were assumed by an insured bank; in three cases
deposits of one insured bank were assumed by another insured bank;
and in one case time deposits of an insured bank were assumed by a
noninsured bank. In the other case, the Corporation approved the
assumption of deposit liabilities of an insured bank by a noninsured
institution, with simultaneous assumption of those deposit liabilities
from the noninsured institution by another insured bank.
Reports from banks. Insured State banks not members of the
Federal Reserve System, other than those in the District of Columbia,
were required by the Corporation to report their assets, liabilities, and
capital accounts as of June 30 and December 30, 1950, and their earnings,
expenses, and disposition of profits for the calendar year 1950. Summaries
of corresponding data for other insured banks have been furnished to
the Corporation by the agencies to which those banks make reports.
Tabulations from the reports of assets, liabilities, and capital accounts,
for the nation and for each State, are given in the pamphlets published
by the Corporation, “ Report No. 33, Operating Insured Commercial
and Mutual Savings Banks, Assets and Liabilities, June 30, 1950,” and
“ Report No. 34, Assets, Liabilities, and Capital Accounts, Capital and
other Ratios, Commercial and Mutual Savings Banks, December 30,
22
FEDERAL DEPOSIT INSURANCE CORPORATION
1950.” Summary tabulations are given in Table 107 of this report,
pages 236-39. Summaries of the reports of earnings, expenses, and disposi
tion of profits are given in Tables 113-119, pages 254-75 of this report.
Through the cooperation of State banking authorities and of officials
of banking institutions not under State or Federal supervision, mostly
unincorporated banks, the Corporation obtained, as of June 30 and
December 30, reports of assets and liabilities of noninsured banks and
trust companies which do not file reports with a Federal agency. Tabula
tions from these reports, and tabulations for all banks and trust companies
obtained by combining the data for insured and noninsurecl banks, are
given in Tables 103-106, pages 226-35, of this report. Similar tabulations
by State for December 30 are given in the pamphlet, “ Report No. 34,”
referred to above.
L egal D evelopm ents
The Federal Deposit Insurance Act. For several months during
1949 the Board of Directors and members of the staff studied the need
for amendments to the law creating the Corporation with a view of
re-casting it into an entirely new Act to be known as the Federal Deposit
Insurance Act. Proposals were drafted. Conferences with outstanding
bankers, bank representatives and others were held and in January,
1950, the proposals were submitted to Congress in S.2822. The banking
and currency committees of both houses held hearings on the bill. The
important changes in the old law recommended by the Corporation were
adopted by Congress. The old statute was withdrawn from the Federal
Reserve Act and the new one, to be known as The Federal Deposit
Insurance Act, was passed by the Congress and approved by the President
on September 21, 1950. (Public Law 797, 81st Congress; 64 Stat. 873;
12 U.S.C. 1811-1831). The important changes made by the new Act are
discussed on pages 1-7 and the text of the Act is given on pages 105-32.
National Bank Conversion Act. Congress authorized a national
bank to convert into, or merge or consolidate with a State bank in the
same State under a State charter, where under the State law, State
banks may without approval by any State authority convert into and
merge or consolidate with national banks as provided by Federal law
(Public Law 706, 81st Congress; 64 Stat. 455; 12 U.S.C. 214, 214a-214c).
This law gives control over the diminution of capital and surplus in
assumption, merger, consolidation, and conversion transactions to the
Federal banking agency having jurisdiction over the resulting banks.
It also provides for continuance of insurance when a national bank
converts to a State bank, or when a State bank results from the merger
or consolidation of an insured bank with any other bank or banks.
The text of this Act is given on pages 153-57.
23
LEGAL DEVELOPMENTS
Rules and regulations o f the Corporation. The rules and regula
tions of the Corporation were revised after the enactment of the Federal
Deposit Insurance Act. The rules and regulations were published in the
Federal Register of December 6, 1950 (15 F.R. 8628), with effective
date of January 6, 1951, as a revision of Chapter III, Title 12, Code
of Federal Regulations. They are given on pages 158-208 of this report.
State legislation. A summary of State banking legislation enacted
during 1950 is given on pages 209-11.
P e rsonnel
and
F in a n c ia l S t a t e m e n t s
of t h e
C o r p o r a tio n
Directors and employees. Mr. Maple T. Harl, Mr. Preston Delano,
and Mr. H. Earl Cook continued to serve as members of the Board of
Directors throughout the year.
On December 31, 1950, the Corporation had 1,075 officers and em
ployees, compared with 1,088 at the beginning of the year. The number
of employees in each Division of the Corporation at the end of 1950
is given in Table 9. Two-thirds of the employees of the Corporation
are in the Division of Examination. Because of the cost of travel and
other expenses incurred in examining banks, the expenses of the Division
of Examination are three-fourths of the total operating expenses of
the Corporation.
T able 9.
N um ber
of
O ffic e r s
and
E m p lo y e e s ,
F ederal
D e p o s it
I n s u r a n c e C o r p o r a t i o n , D e c e m b e r 31, 1950
Division
Total
Washington
office
T o ta l...........................................................................................
1,075
325
Directors..................................................................................
Executive Division.................................................................
Legal Division........................................................................
Division of Examination.......................................................
Division of Liquidation.........................................................
Division of Research and Statistics.....................................
Personnel Division.................................................................
Division of Accounts..............................................................
Audit Division........................................................................
Service Division......................................................................
3
24
24
727
90
46
17
42
27
75
3
24
24
42
25
46
17
42
27
75
District
and
field
offices
750
685
65
Incom e and expenses. A statement of the income, expenses, and
surplus of the Corporation for 1950 is given in Table 10.
The assessment income accruing to the Corporation was much smaller
than in prior years, because of the credit to insured banks required by
the Federal Deposit Insurance Act of 1950. As a consequence the income
of the Corporation in 1950 was less than $85 million. Approximately
24
FEDERAL DEPOSIT INSURANCE CORPORATION
two-thirds of this sum was derived from assessments and one-third from
interest on Government securities.
T a b le 10.
S ta te m e n t o f O p e ra tio n s o f t h e F e d e r a l D e p o s it I n su r a n c e
C o r p o r a tio n f o r t h e Y e a r E n ded D e c e m b e r
31, 1950
Surplus adju stm en ts:
Surplus (deposit insurance fund), December 31, 1949........
$1,203,942,687.76
Adjustments applicable to years prior to 1950:
Interest on capital stock paid to U. S. Treasury.............
Other adjustments (net credit)...........................................
$40,281,155.89
3,901,764.27
Net decrease....................................................................
Surplus (deposit insurance fund) as adjusted, December
31, 1949...............................................................................
36,379,391.62
$1,167,563,296.14
Income:
Deposit insurance assessments.................................................
Less: Net assessment income to be credited to insured banks
(see Table 11).................................................................
$122,682,611.27
Net deposit Insurance assessments.....................................
Interest earned on U. S. Government obligations................
Other interest received............................................................
Other income............................................................................
$ 53,975,720.55
27,960,077.56
2,605,711.78
13,350.09
Total income.....................................................................
$ 84,554,859.98
68,706,890.72
Losses and expenses:
Operating expenses...................................................................
Provision for insurance losses.................................................
Insurance losses in excess of reserves.....................................
$
6,409,098.55
1,759,174.54
2,853.64
Total losses and expenses................................................
$
8,171,126.73
Net income for the year..........................................................
$
Surplus (deposit insurance fund), December 31, 1950............
76,383,733.25
$1,243,947,029.39
Assessments payable in 1950 were $123 million. After deduction of
the Corporation’s operating expenses and losses, three-fifths of the
balance, or $69 million, was credited at the end of the year to insured
banks as an offset to the assessments payable in 1951. The method of
determining this amount is given in Table 11.
Table 11,
D e t e r m in a t io n a n d D i s t r ib u t i o n of N e t A ssessm ent I ncom e
f o r t h e Y e a r E n d e d D e c e m b e r 31, 1950
Total assessments which became due during the
calendar year..........................................................................
Less:
1. Operating costs and expenses for the calendar y e a r .. . .
2. Additions to reserve to provide for insurance losses.. . .
3. Insurance losses in excess of reserves...............................
$ 122,682,611.27
$
6,409,098.55
1,759,174.54
2,853.64
Total deductions...........................................................
Net assessment income...........................................................
40% of net assessment income to be transferred to the
Corporation’s capital account.............................................
Balance of net assessment income to be credited pro rata
to insured banks...................................................................
$
8,171,126.73
$114,511,484.54
$ 45,804,593.82
68,706,890.721
$114,511,484.54
1 Represents 56.00377% of total assessments becoming due during 1950.
FINANCIAL STATEMENTS OF THE CORPORATION
25
Total losses and expenses of the Corporation were $8 million in 1950.
Insurance losses for 1950 were nearly $2 million, and operating expenses
over $6 million. A classification of operating expenses is given in Table 12.
T able 12.
O p e r a tin g C o s t s 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 it I n s u r a n c e
C o r p o r a t i o n f o r t h e Y e a r E n d e d D e c e m b e r 31, 1950
Salaries.............................................................................................. .............................
Professional services........................................................................ .............................
Services of other Government agencies......................................................................
Transportation..............................................................................................................
Subsistence.....................................................................................................................
Office rental...................................................................................................................
Printing, stationery, and supplies...............................................................................
Postage, telephone, and telegraph..............................................................................
Insurance and fidelity bond premiums.......................................................................
Subscriptions.................................................................................................................
Equipment rental..........................................................................................................
Repairs and alterations................................................................................................
Transportation of things..............................................................................................
Furniture, fixtures, and equipment............................................................................
Miscellaneous.................................................................................................................
$4,546,758.35
21,443.17
3,500.99
227,159.28
951,379.77
348,771.97
156,424.41
42,486.25
5,411.09
13,679.34
22,406.09
11,506.88
9,635.07
56,874.31
42,376.48
Total.......................................................................................................
$6,459,813.45
Less: Inter-departmental expense transfers................................................................
Expenses recovered.............................................................................................
39,120.25
11,594.65
Total.......................................................................................................
50,714.90
Operating costs and expenses for year ended December 31, 1950................
$6,409,098.55
The Corporation’s operating income after expenses in 1950, which
was added to the deposit insurance fund, was $76 million. In addition,
the fund was increased by $4 million in net adjustments applicable to
prior years. However, because of the 1950 legislation, the fund at the
end of the year was only $40 million, or 3 percent, larger than at the
beginning of the year. The difference of $40 million resulted from pay
ment of one-half of the interest due the United States Treasury for the
use of Treasury and Federal Reserve funds while invested in the capital
stock of the Corporation. Under the provisions of the Federal Deposit
Insurance Act of 1950 this interest, at the rate of 2 percent per year,
was made payable in two instalments. The second instalment is to be
paid prior to July 1, 1951.
A summary of the income and expenses of the Corporation, and addi
tions to surplus, for each year since its organization is given in Table 13.
Assets and liabilities. A summary of the assets and liabilities of
the Corporation for December 31, 1934 to 1950, is given in Table 14.
Assets of the Corporation totaled $1,314 million at the end of 1950.
United States Government obligations and accrued interest receivable
of $1,309 million accounted for most of this total. The remaining assets
were $2.5 million in cash, $2.3 million in assets acquired through bank
suspensions and absorptions, and $0.1 million in miscellaneous accounts
receivable and deferred charges.
26
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 13. I n 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 i n c e B e g i n n i n g o f O p e r a t i o n s S e p t e m b e r 11 , 1933,
A d j u s t e d a s o f D e c e m b e r 31, 19501
(In millions)
Income
Year
Total
Expenses
Deposit Investment
insurance
and
assess
other
ments
income
Total
Deposit
insurance
losses
and
expenses2
Interest
on
capital
stock
Admin
istrative
expenses3
Net
income
added to
insurance
fund
1 9 3 3 -1 9 5 0 ...
$1,381.6
$303.4
$137.7
$27.2
$40.3
$70.2
$1,243.9
1950............
1949............
1948............
1947............
84.6
148.3
146.8
157.7
54.04
119.8
119.3
114.4
30.6
28.5
27.5
43.3
7.7
6.4
7.1
8.0
1.3
.3
.7
.1
.3
2.4
6.4
6.1
6.1
5.5
76.9
141.9
139.7
149.7
1946............
1945............
1944............
1943............
130.9
121.2
99.5
86.7
107.1
93.7
80.9
70.0
23.8
27.5
18.6
16.7
7.5
6.9
6.8
7.4
.1
.1
.1
.2
2.9
2.9
2.9
2.9
4.5
3.9
3.8
4.3
123.4
114.3
92.7
79.3
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
7.3
7.2
10.7
13.9
.5
.6
4.2
7.6
2.9
2.9
2.9
2.9
3.9
3.7
3.6
3.4
62.1
54.8
45.2
37.3
1938............
1937............
1936............
1935............
1933-34___
47.8
48.1
43.8
20.7
7.0
38.3
38.8
35.6
11.5
(6)
9.5
9.3
8.2
9.2
7.0
8.3
9.1
7.9
8.3
7.2
2.4
3.5
2.5
2.7
.3
2.9
2.9
2.9
2.9
2.8
3.0
2.7
2.5
2.7
4.16
39.5
39.0
35.9
12.4
-0.2
$1,078.2
1 Includes income received and expenses incurred in administering the Federal Credit Union Act from May
16, 1942, to July 28, 1948. The Corporation was fully reimbursed for all expenses incurred in connection with
this operation.
2 Includes nonrecoverable expenses incurred pursuant to the insurance of deposits in closed insured banks.
Total deposit insurance losses and expenses are therefore larger than the losses incurred and reserve for losses,
as given in Table 15.
1 Includes furniture, fixtures, and equipment charged off.
* Net after deducting $68.7 million, representing credits to insured banks of 40 percent of net assessment
income for 1950, pursuant to provisions contained in the Federal Deposit Insurance Act (see Tables 10 and 11).
5
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, and were applied toward payment of subsequent
assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from
assessments during the existence of the temporary insurance funds.
• Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary
insurance funds on June 30, 1934.
A statement of the assets and liabilities of the Corporation at the
close of 1950 is given in Table 15.
The Corporation’s assets acquired through bank suspensions and
mergers represent its disbursements to protect depositors in closed
banks less its recoveries, its known losses, and estimated additional
losses. From the beginning of deposit insurance to December 31, 1950,
the Corporation disbursed a total of $319.3 million to protect depositors
in 415 closed or absorbed banks. During this same period recoveries of
$290.6 million were made, leaving an uncollected balance of only $28.7
million. The actual known losses, less realized profits, for the 17-year
period were $17.0 million. It is estimated that additional losses of $9.4
million will be incurred, leaving a net book value of remaining assets
of $2.3 million. Further details regarding the disbursements, collections,
and losses are given in Table 16.
27
FINANCIAL STATEMENTS OF THE CORPORATION
T a b le 14.
A sse ts an 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 In s u r a n c e
C o r p o r a t i o n , 1934-1950
(in millions)
Dec. 31
Cash
U. S.
Insurance
Government
assets
obligations
Total
assets
Other
assets
Deposit
insurance
fund1
Liabilities
.1
.2
.1
.1
$1,314.3
1,211.7
1,072.0
1,030.8
$70.4
7.8
6.1
24.7
$1,243.9
1,203.9
1,065.9
1,006.1
5.6
15.1
26.1
46.2
.1
.3
.3
.5
1,060.7
931.1
806.2
705.5
2.2
1.9
1.9
2.4
1,058.5
929.2
804.3
703.1
536.8
453.9
384.5
363.5
62.0
81.7
92.2
64.2
.5
.1
.1
.1
618.7
555.7
497.2
456.1
1.8
2.2
1.2
3.4
616.9
553.5
496.0
452.7
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
1950............
1S49............
4&48.......
1947............
$ 2.4
1.4
2.3
4.6
$1,309.5
1,207.3
1,066.0
1,022.5
$ 2.3
2.8
3.6
3.6
1946............
1945............
1244 .......
1943............
7.3
15.7
17.8
20.0
1,047.7
900.0
762.0
638.8
1942............
1941............
1940............
1939............
19.4
20.0
20.4
28.3
1938............
1937............
1936............
1935............
1934............
22.2
20.6
9.1
33.5
16.0
$
1 Designated capital and surplus in previous Annual Reports of the Corporation.
T a b le 15.
S ta te m e n t o f C o n d itio n 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 i o n , D e c e m b e r 31, 1950
ASSETS
Cash..............................................................................................................................
U. S. Government obligations and accrued interest receivable.............................
Assets acquired through bank suspensions and absorptions— net (See Table 16)
Furniture, fixtures, and equipment..........................................................................
Miscellaneous accounts receivable and deferred charges........................................
$
2,453,915.38
1,309,458,494.05
2,315,218.24
1.00
117,112.90
$1,314,344,741.57
T otal assets
LIABILITIES
Net assessment income credited to insured banks..
Accounts payable and other assessment credits.. . .
Accrued annual leave of employees..........................
Earnest money deposits and collections in suspense
Deferred credits............................... ...........................
Depositors’ claims pending settlement.....................
T otal liabilities
$
68,706,890.72
495,411.13
903,958.46
236,455.70
37,325.52
17,670.65
$
70,397,712.18
SURPLUS1
Deposit insurance fund...........................................................................................
T ota l liabilities and su rplus..............................................................
$1,243,947,029.39
$1,314,344,741.57
1 Capital stock issued to the United States in the amount of $150,000,000.00 and to the Federal
Reserve banks in the amount of $139,299,556.99, has been retired by payments to the United States
Treasury in accordance with the provisions of Public Laws 363 and 813. These laws were initiated and
recommended by the Board of Directors of the Federal Deposit Insurance Corporation and approved
August 5, 1947, and June 29, 1948, respectively,
The Federal Deposit Insurance Act, approved September 21, 1950, provided for the payment to
the U. S. Treasury of interest on capital stock while it was outstanding at the rate of two percent per
annum. The first instalment payment of $40,281,155.89 was made on December 30, 1950. Since the
second and final instalment in the same amount will not become payable until after December 31, 1950,
it has not been reflected in this statement.
28
T a b le 1 6.
FEDERAL DEPOSIT INSURANCE CORPORATION
A s s e t s A cq u ired by t h e F e d e r a l D e p o s it I n su r a n c e C o r p o r a tio n
T h r o u g h B a n k Suspensions and A b so r p tio n s fro m B e g in n in g o f O p e ra tio n s
t o D e c e m b e r 31, 1950
(In thousands)
Assets acquired from insured banks in difficulties
Assets
acquired
from
liqui
dators1
Total
Absorption cases
Receiv
ership
Total
subrogated
claims4
Loans3
Assets
purchased
under
ment4
Disbursements— tota l...
Original disbursement. ..
Depositors’ claims pend
ing settlement.............
Subsequent expenses for
protection of assets. . .
Field
liquidation ex
penses ..........................
$319,330
274,678
Collections0.......................
290,599
Uncollected balance. . . .
28,731
Losses— estimated net
total............................
Losses incurred less real
ized profits..................
Reserve for losses...........
Net book value of re
maining assets.........
$1,552
1,475
$317,778
273,203
$87,061
87,044
17
17
77
17
31,970
12,665
1,898
Other
pur
chased5
$132,717
100,292
$96,613
84,517
$1,387
1,350
31,893
24,745
7,111
37
12,665
7,680
4,985
288,701
72,492
126,927
88,383
899
W 7
29,077
14,569
5.790
8,230
488
26,416
597*
27,013
14,399
5.790
6,345
479
16,993
9,423
597*
17,590
9,423
9,999
4,400
5.790
1,322
5,023
479
2,315
251
2,064
170
1,885
1 Assets purchased outright from liquidating officers in receivership and absorption cases in order to facilitate
the termination of the liquidations.
3 Subrogated claims represent the amounts of insured deposits in closed banks paid to depositors for which
amounts the depositors transferred their claims against the bank receiverships to the Federal Deposit Insurance
Corporation.
* Loans to absorbed insured banks are supported by collateral and are evidenced by demand notes bearing
interest at the rate of 4 percent per annum. Recoveries in excess of Corporation disbursements and interest
allowances are returned to stockholders of closed banks.
4 Assets purchased under agreements with absorbed insured banks are evidenced by purchase agreements
allowing an interest return of 4 percent per annum on Corporation advances. Any excess recoveries are returned
to the stockholders of the selling bank in the form of an additional cash purchase price.
6 Assets purchased from absorbed insured banks without refund agreements.
* Does not include operating income from the assets held by the Corporation, nor interest earned or al
lowable return on loans and assets purchased to protect depositors.
7 Collections in excess of disbursements.
* Net profit.
Total liabilities of the Corporation increased from $8 million on
December 31, 1949, to $70 million on December 30, 1950. This increase
was caused by a new account appearing on the balance sheet for the
first time; namely, net assessment income credited to insured banks.
This account constitutes nearly 98 percent of total liabilities.
Pursuant to Public Laws 363 and 813, 80th Congress, approved August
5, 1947, and June 29, 1948, respectively, the Corporation retired all
of the capital stock originally issued to the United States Treasury
and the Federal Reserve banks. Retirement was completed on August
30, 1948. In addition, the first instalment of interest for the use of this
capital was made on December 30, 1950, in compliance with provisions
of the Federal Deposit Insurance Act of September 21, 1950. The second
29
FINANCIAL STATEMENTS OF THE CORPORATION
and final interest instalment of $40 million is to be paid prior to July
1, 1951.
At the end of 1950 the deposit insurance fund was equivalent to
approximately 3/4 of 1 percent of all deposits and about 1-1/3 percent
of insured deposits. Both of these percentages are smaller than the
corresponding figures at the beginning of the year because deposits in
insured banks increased by 7 percent, while the deposit insurance fund
increased by only 3 percent. The ratio of the fund to insured deposits
was also made smaller by the increase in insurance coverage from $5,000
to $10,000 for each depositor. Table 17 shows the total deposits, the
estimated insured deposits, and the ratios of the deposit insurance fund
to deposits, at the end of each year since beginning operations.
Table 17.
R e la tio n
o f th e
D e p o s it In s u r a n c e
of
Dec. 31
Deposit
insurance
fund
(in millions)
Fund to
th e
D e p o s its
I n su red B an ks
Deposits in insured banks
(in millions)
Total
Insured1
1950.........................
1949.........................
1948.........................
1947.........................
$1,243.9
1,203.9
1,065.9
1,006.1
$167,818
156,786
153,454
154,096
$93,498
76,589
75,320
76,254
1946.........................
1945.........................
1944.........................
1948.........................
1,058.5
929.2
804.3
703.1
148,457
158,174
134,662
111,650
1942.........................
1941.........................
1940.........................
1939.........................
616.9
553.5
496.0
452.7
1938.........................
1937.........................
1936.........................
1935.........................
1934.........................
420.5
383.1
343.4
306.0
291.7
Ratio of deposit insurance
fund to—
Total
deposits
Insured
deposits
.74%
.77
.69
.65
1.33%
1.57
1.42
1.32
73,759
67,021
56,398
48,440
.71
.59
.60
.63
1.44
1.39
1.43
1.45
89,869
71,209
65,288
57,485
32,837
28,249
26,638
24,650
.69
.78
.76
.79
1.88
1.96
1.86
1.84
50,791
48,228
50,281
45,125
40,060
23,121
22,557
22,330
20,158
18,075
.83
.79
.68
.68
.73
1.82
1.70
1.54
1.52
1.61
i Estimated. For method, see Annual Report of the Corporation for 1949, page 61.
Audit. The audit of the Corporation for the year ended June 30,
1950, was made by the Comptroller General of the United States. The
short form of the audit report has been furnished to the Corporation
by the Comptroller General and is given in Table 18. The auditor’s
opinion is shown on page 32.
30
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 18. F in a n c ia l St a t e m e n t s of th e F e d e r a l D eposit I n su r a n c e
C orporation — from A u dit o r s ’ R eport for Y e a r E nded June 30, 1950
Exhibit 1— B a la n c e S h e e t — J u n e 30, 1950
ASSETS
C ash .....................................................................................................
United States Governm ent securities, at cost—market value,
$1,277,011,127..............................................................................
Accrued interest receivable.............................................................
Assets acquired through m ergers and receiverships of
insured banks:
Subrogated claims of depositors against banks in receivership
(including $21,449 of pending and unpaid claims) (note 1).. .
Equity in collateral assets (notes 2 and 4):
Under loan agreements................................................................
Under asset purchase agreements..............................................
$
$1,275,789,500
2,526,941
1,383,883
1,278,316,441
4,875,724
2,420,661
6,848,358
14,144,743
11,873,733
2,271,010
108,473
Less estimate for losses and expenses............................................
Assets purchased outright (note 3 )................................................
Deferred charges and sundry assets............................................
Furniture, fixtures, and equipm ent, at nominal value............
2,379,483
136,749
1
$1,282,216,557
LIABILITIES
A ccounts payable and accrued liabilities..................................................................
Earnest m oney, escrow funds, and collections held for oth ers...........................
Depositors’ claim s pending settlem en t.....................................................................
Em ployees’ accrued annual leave................................................................................
Deferred credits (note 4 ) .................................................................................................
Deposit insurance reserve, representing accumulated income from inception to
June 30, 1950, available for future losses and related expenses (notes 5, 6, and 7,
$
472,805
250,325
21,449
1,002,332
3,093,707
1,277,375,939
and exh ibit 2 ) .....................................................................................................................................
$1,282,216,557
The notes following exhibit 2 are an integral part of this statement.
Exhibit 2— S t a t e m e n t
on
for th e
I n com e a n d D eposit I n su r a n c e R e s e r v e
Y e a r E n d ed J u n e
30, 1950
Deposit insurance assessments...........................................................
Interest on United States Government securities............................
Income from bank mergers and receiverships:
Interest and allowable return (note 4 )...........................................
Less estimated loss on merger cases acquired during the year. . .
Administrative and operating expenses.............................................
Net income for year transferred to deposit insurance reserve........
Deposit insurance reserve, June 30, 1949.........................................
Net adjustment of prior years’ estimate of losses and expenses
restored to reserve........................................................................
Deposit insurance reserve, June 30, 1950 (notes 5, 6, and 7 and
exhibit 1 )......................................................................................
$ 120,561,822
26,526,563
$
2,286,966
13,171
2,300,137
590,000
1,710,137
148,798,522
6,435,869
142,362,653
1,135,003,216
10,070
$1,277,375,939
Notes 4, 5, 6, 7, and 8 on the following page are an integral part of this statement.
FINANCIAL STATEMENTS OF THE CORPORATION
T a b le 1 8 .
31
F in a n c ia l S t a t e m e n t s of th e F e d er a l D eposit I n su r a n c e
C o rporatio n — from A u d it or s ’ R eport for Y ea r E n ded
J u n e 30, 1950— Continued
N otes to th e F in a n c ia l S t a t e m e n t s — J u n e 30, 1950
1. Subrogated claims represent the amounts paid to depositors on insured deposits for which the
depositors had transferred to FDIC their claims against banks in receivership. The balance of subro
gated claims at June 30, 1950, represents claims paid and uncollected on six receiverships not terminated
at that date. Any recoveries made on these claims are in the nature of liquidating dividends paid by the
receiverships from funds realized in disposition of bank assets.
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
banks and the Corporation acquires and proceeds to liquidate the collateral assets until it has collected
the principal and any subsequent amounts expended plus interest. Any excess recoveries and residual
unliquidated assets are returned to the stockholders of the closed banks involved.
Assets purchased under agreements with merged insured banks are evidenced by purchase agree
ments 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 closed
banks involved.
3. Assets purchased outright represent collateral assets which have been purchased by the Cor
poration from receivership and merger cases in order to facilitate the termination of the liquidations.
These assets are the absolute property of the Corporation and are not subject to any agreements with
the closed banks from which the assets were originally obtained.
4. The Corporation follows the practice of taking into income only such amounts of interest or
allowable return as are realized after recovery in full of its investments (including recoverable expenses)
in the respective loan and assets-purchased-under-agreement cases when they are closed. Deferred
credits at June 30, 1950, include interest of $3,063,736 and allowable return of $5,967, a total of
$3,069,703, representing recoveries in excess of the Corporation’ s total investment on four of the merger
cases not yet closed at that date.
5. The Corporation may borrow from the Treasury such funds as in the judgment of the board of
directors of the Corporation are required from time to time for insurance purposes, not exceeding, in
the aggregate, three billion dollars outstanding at any time. The Corporation has never used this bor
rowing power.
6. The original capital investment of the Corporation amounting to $289,299,557 consisted of
non-dividend-bearing capital stock which was purchased by the United States Treasury and the Federal
Reserve banks. In accordance with the act of August 5, 1947 (12 U.S.C. 264 supp.), the Corporation
retired this stock by making payments totaling $289,299,557 to the Secretary of the Treasury. Final
payment was made on August 30, 1948. No interest or dividends were ever paid by the Corporation
on the Government’s investment. However, the Federal Deposit Insurance Act, approved September
21, 1950, provides that, “ Prior to July 1, 1951, the Corporation shall pay out of its capital account to
the Secretary of the Treasury an amount equal to 2 per centum simple interest per annum on amounts
advanced to the Corporation on stock subscriptions by the Secretary of the Treasury and the Federal
Reserve banks, from the time of such advances until the amounts thereof were repaid. The amount
payable hereunder shall be paid in two equal installments, the first installment to be paid prior to Decem
ber 31, 1950.” The total interest amounts to $80,562,312. The first installment was paid on December
30, 1950.
7. Section 7(d) of the Federal Deposit Insurance Act provides that as of December 31, 1950, and
December 31 of each calendar year thereafter, the Corporation shall credit pro rata to the insured banks
60 percent of the net assessment income (as defined in the act) for the calendar year, such credit to be
applied toward the payment of assessments becoming due for the semiannual period beginning the next
ensuing July 1, and any excess credit applied to the assessment of the following period.
At June 30, 1950, the part of the net income for the first half of the calendar year 1950, included
in the deposit insurance reserve, to be used in computing the assessment credit as of December 31, 1950,
was not determinable.
8. Under existing law the Corporation is not required to bear the Government’s share of the cost
of furnishing retirement, d is a b ility , and compensation benefits to the Corporation’s employees. These
costs are estimated to be approximately $260,000 for the fiscal year 1950.
32
FEDERAL DEPOSIT INSURANCE CORPORATION
COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON 25
February 21, 1951
Board of Directors,
Federal Deposit Insurance Corporation,
Washington 25, D.C.
Gentlemen:
An audit of the affairs of Federal Deposit Insurance Corporation for the fiscal
year ended June 30, 1950, has been made by the General Accounting Office in accord
ance with provisions of section 17(b) of the Federal Deposit Insurance Act, approved
September 21, 1950.
There is transmitted herewith a short form report including statements of financial
position and operations, together with explanatory notes and auditors’ opinion, all
of which will be included in the detailed report to be submitted by the Comptroller
General to the Congress.
Very truly yours,
E. L. F is h e r
Acting Comptroller General
of the United States
AUDITORS’ OPINION
We have examined the balance sheet of Federal Deposit Insurance Corporation
as of June 30, 1950, and the related statement of income and deposit insurance reserve
for the year then ended. Our examination was made in accordance with generally
accepted auditing standards and accordingly included such tests of the accounting
records and such other auditing procedures as we considered necessary in the cir
cumstances and appropriate in view of the effectiveness of the system of internal
control, including the work performed by the Corporation’s internal auditors.
In our opinion, the accompanying balance sheet and statement of income and
deposit insurance reserve present fairly the financial position of Federal Deposit
Insurance Corporation at June 30, 1950, and the results of its operations for the
year then ended in conformity with generally accepted accounting principles applied
on a basis consistent with that of the preceding year and with applicable Federal laws.
During our examination we observed no program, expenditure, or other financial
transaction or undertaking which, in our opinion, was carried on or made without
authority of law.
S te p h e n B. Iv e s
Director
Corporation Audits Division
GeneraljAccounting Office
PART TWO
BANKING DEVELOPMENTS
A s se t s , L ia b il it ie s ,
C a p it a l A c c o u n ts
and
The most striking economic developments of 1950 were the recovery
from the moderate business recession of 1949 and the sharp rise in prices
during the second half of the year. The outbreak of the Korean war
created an intensified demand for goods both on the part of industry
and private consumers. The scare buying which followed set the stage
for a rapid expansion of bank loans and deposits toward the end of the
year. By the year-end total assets of all banks in the United States and
possessions were $192 billion, deposits and other liabilities $178 billion,
and capital accounts $14 billion. These amounts were respectively 7,
7, and 6 percent larger than at the beginning of the year. The amount
and percentage distribution of bank assets, liabilities, and capital ac
counts at the close of 1950, 1949, and 1945 are presented in Table 19.
T a b le 1 9.
A s s e t s a n d L ia b ilit ie s o f A l l B a n k s in t h e U n it e d
S ta te s and
P o s s e s s i o n s , D e c e m b e r , 1950, 1949, a n d 1945
Amount (in millions)
Asset, liability, or capital
account item
Percentage distribution
Dec. 30,
1950
Dec. 31,
1949
Dec. 31, Dec. 30, Dec. 31, Dec. 31,
1950
1949
1945
1945
T otal assets..............................................
$192,241
$180,043
$178,203
100.0%
100.0%
100.0%
Cash and funds due from banks..........
United States Government obligations.
Obligations of States and subdivisions.
Other securities......................................
Loans and discounts—net....................
Miscellaneous assets..............................
41,236
73,188
8,249
6,568
60,711
2,289
36,676
78,754
6,657
6,025
49,828
2,103
35,585
101,822
4,064
4,531
30,473
1,728
21.4
38.1
4.3
3.4
31.6
1.2
20.4
43.7
3.7
3.3
27.7
1.2
20.0
57.1
2.3
2.5
17.1
1.0
T o ta l liabilities and capital accounts $192,241
$180,043
$178,203
100.0%
100.0%
100.0%
91.6
1.2
7.2
91.8
.9
7.3
93.4
.7
5.9
Total deposits........................................
Miscellaneous liabilities........................
Total capital accounts..........................
176,120
2,205
13,916
165,244
1,633
13,166
166,474
1,203
10,526
Number of banks1................................... .
14,693
14,736
14,725
1 Asset and liability data were not available for 27 banks on December 30,1950, 31 banks on Decem
ber 31, 1949, and 104 banks on December 31, 1945.
Detailed data for 1950: See Table 105, pp 232-33.
A ssets
Significant changes in the distribution of assets held by all banks
in the United States and possessions occurred during the period 1945
through 1950. During this time bank holdings of United States Govern
ment obligations decreased $29 billion, investments in municipal and
other securities increased $6 billion, and loans rose $30 billion. Over
the 5-year period the growth in bank loans amounted to 99 percent,
while the decline in bank holdings of United States Government obliga
tions was 28 percent. The amount and distribution of assets held by all
banks in the United States and possessions from 1945 to 1950 are shown
in Chart C.
35
36
FEDERAL DEPOSIT INSURANCE CORPORATION
United States Government obligations constituted only 38 percent
of total bank assets on December 30, 1950, contrasted with 57 percent
on December 31, 1945. Loans, on the other hand, increased from 17
percent of the total assets in 1945 to 32 percent of the total in 1950.
C h a rt C .
A s s e t s o f A l l B a n k 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 ecem b er
31, 1945-1950
Investment in securities. On December 31, 1945, total investments
in securities held by all banks in the United States and possessions
amounted to $110 billion. By the end of 1950 the banks held only $88
billion in securities, a decline of 20 percent. However, as shown in Table
19, this decline is the result of divergent trends. Bank holdings of
United States Government obligations declined over a fourth from
1945 to 1950, investments in obligations of States and subdivisions
doubled, and holdings of other securities increased almost one-half.
United States Government obligations held by insured commercial
banks declined $5 billion in 1950. The principal changes in such holdings
were an increase of $11 billion in notes, a decrease of over $10 billion
in certificates, and a decline of about $6 billion in bonds. These changes
37
BANK ASSETS
largely reflected Treasury financing activities. The Treasury offered
notes in exchange for most of the bonds, notes, and certificates maturing
or called in 1950.
The amount and percentage distribution by type and maturity of
United States Government obligations held by insured commercial
banks during the period 1941 to 1950 are given in Table 20.
Table 20.
M a t u r it ie s of U n it e d S ta t e s G o v e r n m e n t O b l ig a t io n s H eld b y
I n su r e d C o m m erc ial B a n k s , D e c e m b e r ,
1941-1950
Marketable issues
Direct
Dec.
31
Total
Bonds maturing in-3
Certif
icates1
Notes1
$ 1,937
12,488
10,068
7,555
12,293
2,456
3,972
4,637
4,462
988
6.7%
5.6
4.6
3.1
1.7
Bills1
A m ou n t (in millions)
$4,122
1950 $61,047
1949 65,847
3,692
2,822
1948 61,407
2,124
1947 67,960
1946 73,575
1,272
1945
1944
1943
1942
1941
88,933
75,896
58,693
40,712
21,047
Percentage
distribution
1950 100.0%
1949 100.0
1948 100.0
1947 100.0
1946 100.0
1945
1944
1943
1942
1941
100.0
100.0
100.0
100.0
100.0
Guar
anteed
issues
2.8
5.2
7.9
11.0
4.7
5 years
or less
5 to 10
years
$16,774
5,812
3,395
5,920
6,781
$22,594
27,278
19,374
18,341
12,728
$ 7,737
7,692
15,114
22,202
29,700
$2,987
4,461
6,581
7,534
6,597
$2,554
2,409
2,059
2,654
3,008
19,075
15,303
13,220
6,729
16,047
15,781
7,673
5,800
3,159
9,030
5,918
5,790
2,865
1,551
32,230
25,467
16,776
10,047
3,970
6,092
5,796
6,160
6,470
5,930
3.2%
19.0
16.4
11.1
16.7
27.5%
8.8
5.5
8.7
9.2
37.0%
41.4
31.6
27.0
17.3
12.7%
11.7
24.6
32.7
40.4
21.5
20.2
22.5
16.5
18.0
20.8
13.0
14.2
15.0
10.2
7.8
9.9
7.0
7.4
36.2
33.6
28.6
24.7
18.8
Nonmarketable
issues*
10 to 20
Over
years 20 years
$
11
6
8
14
15
$2,331
2,009
1,986
1,616
1,181
2,787
1,917
1,620
1,337
1,347
22
978
2,501
2,718
4,102
1,194
764
316
284
(4)
4.9%
6.8
10.7
11.1
9.0
4.2%
3.6
3.4
3.9
4.1
(6)%
(6)
(6)
(5)
(6)
3.8%
3.1
3.2
2.4
1.6
6.9
7.6
10.5
15.9
28.2
3.1
2.5
2.8
3.3
6.4
(5)
1.3
4.3
6.7
19.5
1.3
1.0
.5
.7
(4)
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.
3 Based upon number of years to final maturity.
8
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.
4 Non-marketable issues were not reported separately on December 31, 1941.
5 Less than 0.05 percent.
Loans. Total loans and discounts of all banks in the United States
and possessions expanded $11 billion or 22 percent during 1950. Almost
half of this increase was in commercial and industrial loans; real estate
loans advanced nearly $4 billion and other loans to individuals $2 billion.
Nominal increases were recorded in all other loan categories except
agricultural loans, which were slightly lower at the year-end.
Chart D shows that the volume of bank loans more than doubled
from 1945 to 1950 in all but 9 of the 48 States. The lowest rate of growth,
FEDERAL DEPOSIT INSURANCE CORPORATION
38
58 percent, was recorded by the State of New York, while the highest
rate of growth, 267 percent, was registered by North Dakota. In general,
the percentage expansion of loans was lowest in the Eastern half of the
United States and highest in the Western half.
C h art
D.
P e r c en t a g e I n c re a se of T o tal L o ans in A ll B a n k s ,
D ecember
T a b le
21.
31, 1945-1950
P r in c ip al T yp e s of L o ans of A ll B a n k s in t h e U n it e d St a t e s a n d
P o ssessio n s , D e c e m b e r ,
Dec. 31
All
loans,
gross1
Agri
Com
cultural
mercial
(ex
and
cluding
industrial real estate)
1945-1950
Real
estate
For
carrying
securities
Other
loans
to indi
viduals
All
other
A m ou nt
(in millions)
1950....................
1949....................
1948....................
1947....................
1946....................
1945....................
$61,638
50,615
49,090
43,231
35,823
30,467
$22,068
17,195
19,055
18,295
14,237
9,600
$2,926
3,075
2,893
1,678
1,412
1,361
$21,925
18,350
16,703
14,302
11,675
8,980
$2,882
2,658
2,332
2,075
3,164
6,827
$10,243
8,159
6,960
5,791
4,109
2,419
$1,594
1,178
1,147
1,090
1,226
1,280
Percentage
d istribution
1950....................
1949....................
1948....................
1947....................
1946....................
1945....................
100.0%
100.0
100.0
100.0
100.0
100.0
35.8%
34.0
38.8
42.3
39.8
31.5
4.7%
6.1
5.9
3.9
3.9
4.5
35.6%
36.3
34.0
33.1
32.6
29.5
4.7%
5.2
4.8
4.8
8.8
22.4
16.6%
16.1
14.2
13.4
11.5
7.9
2.6%
2.3
2.3
2.5
3.4
4.2
1 Gross loans include valuation reserves, which are excluded from net loans in Table 19.
Detailed data for 1950: See Table 105, p. 232,
39
BANK ASSETS
Marked changes in the composition of bank loans have occurred since
1945. Between 1945 and 1950 real estate loans advanced from 30 to
36 percent of all loans; other loans to individuals, which include personal
instalment loans, increased from 8 to 17 percent; commercial and in
dustrial loans rose from 32 to 36 percent of the total, while loans made
for the purpose of purchasing or carrying securities declined from 22
percent to 5 percent of total loans. The distribution of loans of all banks
by principal type of loan at the close of each year since 1945 is given in
Table 21. A similar breakdown of the volume and distribution of loans
made by insured commercial banks only is illustrated in Chart E.
Chart E. A m o u n t
an d
T yp e of L o a n s ,
I n su r e d C o m m ercial B a n k s , D ecem ber
31, 1945-1950
Examiners’ appraisal of assets, insured commercial banks.
Both the amount and proportion of assets classified as substandard by
examiners of insured commercial banks were lower in 1950 than in any
year since 1939, except for 1945 and 1946. For banks examined in 1950
the ratio of substandard assets to appraised value of total assets was
0.45 percent, compared with 0.51 percent in 1949, 0.36 percent in 1946,
40
FEDERAL DEPOSIT INSURANCE CORPORATION
and 5.12 percent in 1939. Loans comprised about two-thirds and securities
other than United States Government obligations almost one-third of
all assets regarded as substandard. At the end of 1950, 0.99 percent of
the appraised value of loans was classified substandard, and substandard
securities amounted to 1.90 percent of the appraised value of all securities
other than United States Government obligations. These proportions
of substandard loans and securities were the lowest for which comparable
data are available. Amounts and percentages of assets classified as
substandard from 1939 to 1950 are given in Table 22.
T a b le 2 2 .
S u b sta n d a r d A ssets of I n su r e d C om m e rc ia l B a n k s ,
E x a m in a t io n s ,
Substandard assets
1939-1950
Substandard
loans
Substandard
securities1
Substandard
fixed and
miscellaneous
assets
Percentage of
Year
Amount
(in
millions)?
Total
assets
Per
Per
centage
Amount centage Amount of total Amount
(in
Total
(in
(in
of total
other
capital millions) loans millions) secu millions)
ac
rities
counts
Per
centage
of total
fixed
and
miscel
laneous
assets
1950..................
1949..................
1948..................
1947..................
$ 689
762
788
696
1946..................
1945..................
1944..................
1943..................
526
619
825
1,260
.36
.45
.69
1.24
6.02
7.58
10.92
17.84
(3)
263
359
541
(3)
1.23
1.84
2.96
(3)
259
302
462
(3)
4.17
5.20
7.65
(3)
97
164
257
(3)
4.07
7.02
11.45
1942..................
1941..................
1940..................
1939..................
1,714
2,031
2,552
2,970
2.13
2.84
3.93
5.12
25.26
31.12
40.35
48.21
768
849
1,054
1,229
3.83
4.36
6.23
7.73
617
753
1,039
1,207
9.28
329
429
460
535
15.13
19.10
22.60
24.55
■45%
.51
.53
.48
6.35%
7.32
8.00
7.42
$ 445
515
533
422
.99%
1.26
1.35
1.28
$ 202
200
211
231
1.90%
2.22
2.51
2.92
$ 42
47
44
44
1.47%
1.65
1.51
1.67
1 Amounts and percentages both refer to securities other than U. S. Government obligations.
Prior to 1942 no segregation was made between U. S. Government obligations and other securities.
2 Components do not necessarily add to the total because of rounding.
3 Data not available separately.
Detailed data for 19^1-1950: see Table 108, p. 242.
While the over-all proportion of loans classified as substandard is at
a historically low level, the amount and percentage of such loans present
potential problems in individual banks. There are wide geographical
variations in the proportion of loans which are classified as substandard,
ranging from a low of 0.36 percent in Rhode Island to 5.27 percent in
Vermont. Banks in all the States have made provision in varying degree
for possible losses on loans by setting up valuation reserves. The total
amount of these reserves is greater than the total amount of substandard
loans, but the valuation reserves are not held by the banks which appear
to need them most. A comparison of the ratios of substandard loans and
of valuation reserves to total loans, by State, is given in Chart F.
41
BANK ASSETS
Chart F.
to
R atio s of S u b stan dar d L o an s a n d V a l u a t io n R e se r v e s
T o tal L o a n s , I n su red C o m m ercial B a n k s ,
RATIO OF SUBSTANDARD TO TOTAL LOANS
(at time of examination)
6%
4%
2%
6%
4%
2%
0
1950
RATIO OF VALUATION RESERVES TO TOTAL LOANS
(December 30)
13
2%
4%
t>%
VT.
M il
DEL 11
AR1Z. »
MONT.
N. H. ■ m
W. VA. iiiiiiiiiiiiiiiiiiiiii
MISS. iiiiiiiiiiiiiiiiiiiii
N. MEX. iHmwiHiiiini
VA.
■M l
IOWA n u l l
KANS. f
OREG. i n .
NEV. m
ARK. i n
OKLA. i
MD. » m
ALA. iiiiiiiiiiiiiiiiiiiii
COLO. m u i
I111I111111111I1M
KY.
UTAH llllllllllllllllH
WYO. M i l
S. DAK.
N. C. llllllllllllllllllllllillill
GA.
liiiiill
iniimiiiiiniiiM
LA.
S. C. iiiliiiniliiliiiillH
NEBR. iiiiiiiiiiiiiiiiiiiiini
FLA. —
TENN. miiiiiiiiiiiiiiiinii
IND. iiiiiiiiiiiiiiiiiiiii
MO. i f
WASH. niiiiiiiiiiiiiiiiiiiii
N. J. iiiinmiiiiiiiiiiiiiiii
MAINE ifiiiinniiiimmm
iiiiiiiijiiiiiiiiiiiiiiiiiiii
PA.
TEXAS ■ m u
N. DAK. niiiiniiiiiiimniiiii
MINN. mminnni
iiiiiiiiiiiiiiiiiiiiiiiii
ILL
WIS. Himiiiiiiiniiniimiiim
OHIO iiniiiiiiiiiiiiiiiini
D. C. n i m
MICH. iiiiiiiiiiiiiiiiii
IDAHO I l i l l W
N. Y. IlllHllllllllHlHlllliHl
CALIF. iiiiiiiiiiimiiiiiiiiiiiiii
CONN. iiiiiiiiDiiiiiiiiiiiiiiiiiiiiii
MASS. iiiiiiiiiiiiiiiiiiiiniiiiiitt
Iiiiiiiiiiiiiiiiiiiii
R.I.
6%
2%
4%
42
FEDERAL DEPOSIT INSURANCE CORPORATION
The low percentage of assets of substandard quality held by the
insured commercial banks of our Nation is primarily a reflection of
business prosperity. Many of those assets formerly classified as substand
ard have since worked out satisfactorily. At the same time it is likely
that many of the bank assets which appear to be sound today may
actually possess inherent weaknesses not easily recognizable in a boom
period.
L ia b il it ie s
About 99 percent of all bank liabilities, exclusive of capital accounts,
consists of deposits. Miscellaneous liabilities other than deposits amounted
to only $2 billion on December 30, 1950, compared with total deposits
for all banks of $176 billion.
Deposits. Total deposits of all banks in the United States and pos
sessions increased by nearly $11 billion, or 7 percent, during 1950. All
of this increase occurred after the outbreak of the Korean fighting and
the subsequent intensification of industrial and business activity. The
most significant changes occurred in the demand and time deposit
accounts of individuals and businesses. Demand deposits of businesses
and individuals rose $8 billion during the year while time deposits in
creased by less than $1 billion. All of the increase in time deposits oc
curred during the first half of the year. The amount and type of deposits
of all banks in the United States and possessions from 1945 to 1950
are given in Table 23.
Table 23.
D eposits of A ll B a n k s in th e U n it e d Sta t e s an d P o sse s sio n s ,
by
T yp e of D ep o s it , J u n e a n d D e c e m b e r ,
1945-1950
(In millions)
Business and personal
Call dates
Total
deposits
Dec.
June
Dec.
June
Dec.
June
30,
30,
31,
30,
31,
30,
1950............. $176,120
1950.............. 164,555
1949.............. 165,244
157,239
1949.............
162,041
1948.............
1948.............. 157,177
Dec.
June
Dec.
June
Dec.
June
31,
30,
31,
29,
31,
30,
1947..............
1947..............
1946..............
1946..............
1945..............
1945..............
162,729
154,191
156,753
159,990
166,474
151,933
States
and
subdi
visions
Gov’t.
u. s.
Inter
bank1
Total
De
mand
Time
Cer
tified
checks,
etc.
$149,455
139,642
140,241
135,003
138,674
134,961
$91,314
81,924
83,454
78,399
83,167
79,723
$55,203
55,541
54,416
54,216
53,355
53,181
$2,938
2,177
2,371
2,388
2,152
2,057
$9,546
9,580
8,956
8,912
8,561
8,511
$3,059
3,875
3,318
2,373
2,515
2,249
$14,060
11,458
12,729
10,951
12,291
11,456
140,357
133,475
133,956
127,469
121,776
109,321
85,303
79,551
81,276
76,693
73,876
66,709
52,454
51,775
50,284
48,423
45,285
41,348
2,600
2,149
2,396
2,353
2,615
1,264
7,788
7,520
6,895
6,619
5,786
5,442
1,534
1,423
3,164
13,515
24,770
24,538
13,050
11,773
12,738
12,387
14,142
12,632
1 Includes postal savings deposits; prior to Dec. 81,1947, also includes a small amount of unclassified
deposits.
43
BANK LIABILITIES
The rapid expansion in demand deposits paralleled the growth in
total loans and emphasized the sensitivity of demand deposits to changes
in business activity. Time deposits, on the other hand, failed to follow
the general upward trend; rather, they showed a net decrease during the
last six months of the year. This was the first time in many years that
these deposits were lower at the end of the year than at mid-year. This
deviation from trend was probably caused by the heavy scare buying
of durable goods on the part of both individuals and businesses following
the outbreak of war. To finance these purchases savings accounts were
drawn on and borrowings expanded.
C a p it a l
Total capital accounts of all insured commercial banks in the United
States and possessions rose during 1950 to $11.3 billion, an increase of $0.6
billion. Each year since the Corporation was organized there has been an in
crease in total capital accounts of insured banks. However, the in
crease in capital has not kept pace with the increase in total assets and
deposits.
Table 24 gives a summary of the capital accounts and capital ratios
of all insured commercial banks in the United States and possessions
from 1934 to 1950.
Table 24.
C a p it a l A ccounts of I n su re d C o m m ercial B a n k s in th e
U n it e d Sta t e s an d P o ssessio ns , D e c e m b e r ,
1934-1950
Ratio of total
capital accounts to—
Amount (in millions)
Total
capital
accounts
Common
stock
Preferred
stock,
capital
notes,
and de
bentures
1950.......................
1949.......................
1948.......................
1947.......................
1946.......................
1945.......................
$11,281
10,649
10,160
9,736
9,288
8,672
$3,437
3,305
3,163
3,079
2,994
2,837
$ 82
91
101
116
148
195
$5,200
4,803
4,504
4,316
4,060
3,785
$2,562
2,450
2,392
2,225
2,086
1,855
1944.......................
1943.......................
1942.......................
1941.......................
1940.......................
1939.......................
7,990
7,454
7,056
6,845
6,673
6,524
2,660
2,567
2,848
2,469
2,441
2,432
252
308
0)
380
431
482
3,402
3,090
2,802
2,688
2,563
2,443
1,676
1,489
1,406
1,308
1,238
1,167
5.9
6.6
7.4
8.9
9.4
10.3
27.6
28.3
26.0
22.8
24.4
25.4
1938.......................
1937.......................
1936.......................
1935.......................
1934.......................
6,435
6,404
6,329
6,210
6,152
2,428
3,030
3,081
3,300
3,349
553
2,347
2,268
2,185
1,946
1,915
1,107
1,106
1,063
964
888
11.3
11.8
11.3
12.2
13.2
25.6
25.0
24.6
26.1
26.1
Dec. 31
1Preferred stock,
(l)
0)
0)
0)
Surplus
Undivided
profits
and
reserves
Total
assets
6.8%
6.9
6.7
6.4
6.3
5.5
capital notes, and debentures included with common stock.
Assets
other than
cash and
u. s.
Gov’t
obligations
17.1%
19.6
19.3
20.3
23.2
25.2
44
FEDERAL DEPOSIT INSURANCE CORPORATION
From 1934 to 1950, total capital of insured commercial banks increased
from $6.2 billion to $11.3 billion, an increase of 83 percent. During this
same period the ratio of capital accounts to total assets declined from
13.2 percent to 6.8 percent. The ratio of capital accounts to assets other
than cash and United States Government obligations declined from
26.1 percent in 1934 to 17.1 percent in 1950. This latter ratio, sometimes
called the risk asset ratio, is at the lowest level ever reached since the
Corporation was organized. In fact, it is necessary to go back to 1928
to find a year when this ratio, for all commercial banks, was as low as
it was at the end of 1950.
The distribution of insured commercial banks according to their
ratio of total capital accounts to total assets on December 30, 1950, is
shown in Chart G. Chart H shows the ratio of total capital accounts
to total assets, by State.
Chart G. B a n k s G rou ped
by
R atio of T o tal C a p it a l A ccounts to T o tal A ssets ,
I n su red C o m m ercial B a n k s , D ec em b er
CAPITAL RATIO:
30, 1950
3000
LESS THAN 4%
8.0% to 8.9%
9.0% to 9.9%
10.0% to 10.9%
11.0% to 11.9%
12.0% to 119%
13.0% to 13.9%
14.0% to 14.9%
15.0% or MORE
1000
1500
NUMBER OF BANKS
2000
3000
45
BANK CAPITAL
Chart H .
R atio of T o ta l C a p it a l A ccounts to T ota l A ssets ,
I n su re d C o m m ercial B a n k s , D ec e m b e r
m m
6.0% t<>7.5%
□
7.5% AND ABOVE
UNITED STATES AVERAGE
30, 1950
6.8%
Chart I shows, by State, the ratio of total capital accounts to assets
other than cash and United States Government securities.
Chart I.
R atio o f T o ta l C a p it a l A ccounts to R is k A ssets ,
I n su red C o m m ercial B a n k s , D ec e m b e r
15% to 20%
□
20% AND ABOVE
UNITED STATES AVERAGE
17.1%
30, 1950
46
FEDERAL DEPOSIT INSURANCE CORPORATION
A noticeable regional pattern is found in the distribution of both of
the capital ratios. The highest capital ratios are in the New England
and Middle Atlantic States while the lowest ratios are in the West. The
risk asset ratios follow the same regional pattern in all sections of the
country except the South where the average ratios are about as low as
in the West.
Insured commercial banks continued to retire the preferred stock,
capital notes, and debentures held chiefly by the Reconstruction Finance
Corporation. From 1945 to the end of 1950 the total par value of these
investments was reduced from $195 million to $82 million, a reduction
of $113 million. The remaining capital investments of the Reconstruction
Finance Corporation in banks are concentrated in a relatively few banks.
E a r n in g s of I n su r e d C o m m e rc ial B a n k s
Net profits after taxes of insured commercial banks advanced 13
percent during 1950 to the highest level on record. Dividend payments
to stockholders were likewise greater than any previous disbursement,
while profits retained in the bank continued to provide the principal
increment to their capital accounts.
The sources and disposition of total income of insured commercial
banks from 1945 to 1950 are summarized in Table 25.
T a b le 2 5.
S o u r c e s and D is p o s itio n o f T o t a l Incom e,
I n s u re d C o m m ercia l B a n k s, 1945-1950
(In millions)
Item
T otal in c o m e .................................................
Sources
Loans............................................................
U. S. Government obligations...................
Other securities...........................................
Service charges on deposit accounts.........
Other current earnings...............................
Recoveries (including transfers from re
serve accounts and profits on sale of
securities).................................................
Disposition
Salaries and wages......................................
Interest on deposits....................................
Deposit insurance assessment....................
Other current expenses...............................
Charge-offs (including losses and transfers
to reserve accounts)................................
Income taxes................................................
Net profits after taxes................................
Detailed data:
1950
1949
1948
1947
1946
1945
$4,177
$3,820
$3,670
$3,360
$3,271
$2,992
2,008
1,015
226
212
470
1,760
1,013
202
194
438
1,600
1,008
190
174
432
1,282
1,080
179
148
409
951
1,219
177
125
390
727
1,133
167
110
346
246
213
266
262
409
509
1,202
343
111
789
1,111
328
109
736
1,044
317
109
694
947
298
105
633
831
269
98
565
691
233
86
513
367
428
937
380
325
831
486
275
745
294
302
781
283
323
902
264
299
906
See Table 111, pp. 250-51.
The major sources of income of insured commercial banks and the
disposition of this income in 1950 are shown in Chart J. Almost three
EARNINGS OF INSURED COMMERCIAL BANKS
47
fourths of the income came from loans and United States Government
obligations, while the largest expenditure consisted of salaries and wages.
After deducting all expenses, charge-offs and taxes, about a fifth of total
income remained as net profits.
C h art
J.
S ources an d D ispo sitio n of T otal I n c o m e ,
I n su re d C om m ercial B a n k s ,
1950
Total current operating earnings. Total current operating earn
ings of $3,931 million in 1950 exceeded the previous peak of 1949 by
9 percent. Most of the increase in current earnings, and over half the
total earnings, came from the record volume of loans. Interest on United
States Government obligations was practically the same as in 1949.
Income from other securities increased by 12 percent and service charges
on deposit accounts by 9 percent, but together these two sources provided
only about a tenth of total current earnings. A summary of earnings,
expense, and profit data of insured commercial banks for each year
since 1934 is given in Table 26.
Income from loans has steadily risen in relative importance since
World War II. At the end of 1945 loan income constituted only 29
percent of total income. Since that time income from loans has almost
48
FEDERAL DEPOSIT INSURANCE CORPORATION
trebled in amount and at the end of 1950 comprised 51 percent of total
current operating earnings.
Table 26.
E a r n in g s , E x p e n s e s , a n d
P r o f it s
In su red
of
C o m m e r c ia l B a n k s ,
1934-1950
(In millions)
Chargeoffs in
Net
excess of
current
recoveries
operating and profits
earnings1 on assets
sold*
Cash
dividends
declared
and
interest
paid on
capital
Net
profits
retained
in
capital
accounts
Total
current
operating
earnings
Total
current
operating
expenses1
1950..
1949..
1948..
1947..
1946..
1945..
$3,931
3,607
3,404
3,098
2,863
2,482
$2,445
2,284
2,164
1,982
1,763
1,523
$1,486
1,323
1,240
1,116
1,100
959
$121
167
219
32
126*
2I>5*
$428
325
276
302
323
299
$937
831
745
782
903
905
$391
354
332
315
299
274
$546
477
413
467
604
631
1944..
1943..
1942..
1941..
1940..
1939..
2,215
1,959
1,790
1,730
1,631
1,605
1,357
1,256
1,222
1,216
1,170
1,148
858
703
568
514
461
457
96*
62*
48
9
37
57
203
128
79
50
23
12
751
637
441
455
401
388
253
233
228
253
237
232
498
404
213
202
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
126
86
83*
195
741
10
11
12
5
3
300
381
524
208
-3405
222
226
223
208
188
78
155
301
Year
Income
taxes*
Net
profits
after
taxes
-5285
1 Figures for 1934-1941 are estimates and differ from reported figures by the amount of estimated
in com e taxes excluded fro m to ta l current operating expenses. See n o te 3.
a Book value of assets charged off, and transfers to valuation reserves, minus recoveries on assets
previously charged off, transfers from valuation reserves, and profits on assets sold.
8 Includes surtax and excess profits tax. Figures for 1934-1941 are estimates, based upon Bureau
of Internal Revenue figures of income taxes paid by national banks for 1934-1937, and paid by “ all
banks and trust companies” for 1938-1941. Income taxes 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.
* Recoveries and profits on assets sold in excess of charge-offs.
5 Net loss.
Detailed data for 1942-1950: see Table 111, pp. 250-51.
The record $2,008 million income from loans in 1950 was a result of
both a greater volume of loans and a higher average rate of return.
Between 1945 and 1950 income from loans increased 176 percent; over
the same period the volume of loans expanded 97 percent, and the
average rate of return advanced 40 percent. In 1950 most of the
increase in loan income was derived from the rapid expansion in the
volume of loans, since the average rate of return advanced only from
4.22 percent in 1949 to 4.34 percent. The average rates of income on
loans and other operating ratios, for the years 1945 to 1950, are given
in Table 27.
The average rate of income on loans varied directly with size of bank.
In 1950 banks with deposits of $500,000 or less received a return of
7.06 percent on their loans; the average rate of return declined directly
with increased size of bank, and amounted to 3.10 percent in banks
with deposits of more than $100 million.
49
EARNINGS OF INSURED COMMERCIAL BANKS
Interest on United States Government obligations has steadily de
clined in relative importance since 1945. In 1950 this interest comprised
one-fourth of total current operating earnings, compared with nearly
one-half in 1945. The amount in 1950, which was $1,015 million, slightly
exceeded the amount received from this source in 1949, notwithstanding
the decline during 1950 of almost $5 billion in holdings of United States
Government obligations. The stability of income in this circumstance is
explained by the fact that by far the major portion of the decline in
bank holdings of United States Government obligations occurred in the
latter part of 1950, so much so that average holdings during the year
were slightly higher than during 1949. The rate of interest on bank
holdings of United States Government obligations was a shade lower
in 1950, averaging 1.59 percent compared with 1.61 percent in 1949.
Income from municipal and other securities increased 12 percent
during 1950 to $225 million. During the year bank holdings of State and
local government issues expanded sharply, as their attraction to banks
coincided with the largest flotation of these issues ever offered in a
single year. Together with corporate securities these issues yielded an
average return of 2.04 percent in 1950, compared with 2.15 percent in
1949.
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 p I n s u r e d C o m m e r c ia l B a n k s ,
Operating ratio
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
1950
.93%
1949
.87%
1948
.82%
1947
.75%
1945-1950
1946
.72%
1945
.66%
8.51
7.98
7.49
8.20
10.01
10.87
3.55
4.96
3.40
4.58
3.33
4.16
3.31
4.89
3.32
6.69
3.29
7.58
4.34
Average rate of income on loans...................
Average rate of income on securities............
1.66
Average interest paid on time and savings
' deposits........................................................
.94
Average service charges to demand deposits.
.19
Income taxes to net profits before income
taxes............................................................. 31.35
4.22
1.68
4.04
1.64
3.79
1.60
3.43
1.56
3.09
1.46
.91
.18
.90
.17
.87
.14
.84
.11
.87
.10
28.11
26.98
27.89
26.38
24.80
Service charges on deposit accounts amounted to $212 million. This
source of income has grown steadily in importance over the years. Since
1945 the average charge for the maintenance of checking accounts has
almost doubled; in 1950 this charge averaged 19 cents per $100 of demand
deposits.
The earnings of trust departments advanced 13 percent to $181 million
during 1950. This growth was approximately equivalent to the total
increase registered by trust departments during the preceding three
years.
50
FEDERAL DEPOSIT INSURANCE CORPORATION
All other current operating earnings in 1950, including miscellaneous
service charges, commissions, fees, and rentals, totaled $289 million.
Total current operating expenses. Current operating expenses
totaled $2,445 million in 1950, 7 percent above 1949. Almost half of
these expenditures were for wages and salaries; these increased due to
both greater employment and higher rates of pay. Banks had about
18,000 more employees at the end than at the beginning of the year.
Bank officers earned an average of $6,327, and non-officer employees,
including an unknown number of part-time workers, earned an average
of $2,483.
Interest paid on time and savings deposits aggregated $343 million,
the largest amount ever paid by insured commercial banks. Since World
War II such interest payments have comprised about one-seventh of
total expenses, compared with over one-fourth in the early years of the
Corporation. The decline in the relative importance of interest payments
since 1934 has been due principally to a fall in the average rate of interest
paid on time deposits. However, the rate of interest paid on such deposits
in 1950, which averaged 0.94 percent, was slightly higher than in the
last few years.
Property and other taxes, except those on net income, amounted to
$128 million. This was a 13 percent advance for an item which had
increased only 15 percent in the preceding four years.
All other operating expenses totaled $772 million. These include such
varied items as depreciation on fixed assets, rentals, interest on borrowed
money, fidelity and other insurance premiums, advertising, travel,
office supplies, deposit insurance assessments, dues, contributions, and
other incidental items.
Net current operating earnings. Gross earnings exceeded gross
expenses by $1,486 million, 12 percent above 1949. The rate of net
earnings on total assets advanced from 0.87 percent to 0.93 percent, the
highest rate in the history of the Corporation. Banks in the smallest
size group, with deposits of $500,000 or less, earned 1.29 percent on
total assets. The average rate of net earnings declined progressively
with increased size of bank, and averaged 0.82 percent for banks with
deposits of more than $100 million.
Charge-offs, recoveries, and transfers to and from reserves.
In addition to earnings from current operations, banks normally receive
each year income of a non-recurring character. Similarly, each year
banks make provision for losses which are not directly related to current
operations. In 1950 charge-offs exceeded non-recurring income by $121
million, compared with $167 million in 1949.
51
EARNINGS OF INSURED COMMERCIAL BANKS
Income other than from current operations totaled $246 million in
1950. Over a third of this amount, or $91 million, came from profits on
the sale of securities. Recoveries on loans and securities previously
written off amounted to $43 million; transfers from reserve accounts,
to adjust for anticipated losses which did not materialize, totaled $69
million. Miscellaneous recoveries and profits were $43 million.
Charge-offs totaled $367 million in 1950. Over half, or $191 million,
represented additions to valuation reserves for loans. Of this amount,
$156 million were made in accordance with the December 8, 1947, ruling
of the Commissioner of Internal Revenue. By the end of 1950, 43 percent
of all insured commercial banks had added to their reserves in accordance
with this ruling; the proportion was appreciably less among insured
banks not members of the Federal Reserve System, which are generally
smaller institutions. The number and percentage of banks using this
reserve method and the amount of reserves set up in accordance with
it for the last three years are shown in Table 28.
Table 28.
I n su r e d C o m m ercial B a n k s U sin g R e s e r v e M eth od of A ccou n tin g
[for B ad - d e b t L osses on L o a n s in A ccordance w it h R u l in g of
C om m issio n er o f I n t e r n a l R e v e n u e ,
Amount of reserves
(in thousands)1
Number and percentage of
banks using reserve method
Class of bank
Number
1948-1950
Percentage
1950
1949
1948
Insured com m ercial banks
in the United S tates........ 5,792
5,576
5,120
National banks..................... 2,422 2,336 2,135
State banks members of
888
Federal Reserve System..
937
947
State banks not members of
Federal Reserve System.. 2,423 2,303 2,097
1950
1949
1948
Dec. 30,
1950
Dec. 31,
1949
Dec. 31,
1948
43%
42%
38%
$594,986
$463,773
$320,658
49
47
43
363,194
280,983
199,363
50
49
46
165,507
132,290
86,928
37
35
32
66,285
50,500
34,367
1 Reserves for bad-debt losses on loans, set up in accordance with the ruling of the Commissioner of Internal
Revenue on December 8, 1947, comprise the major portion of valuation reserves for loans; the latter totaled
$672,986,000 on December 30, 1950.
During 1950 $56 million of losses on loans were charged to all valuation
reserves for loans. In addition, there were direct losses and charge-offs
on loans amounting to $23 million for which no provision had been made.
At the end of 1950 valuation reserves for loans totaled $673 million.
Charge-offs on securities amounted to $93 million in 1950. Of this
amount, $54 million represented additions to valuation reserves for
securities, and $39 million consisted of direct losses for which no reserve
had been provided. During the year $6 million of realized losses were
charged to valuation reserves. At the end of 1950 valuation reserves for
securities amounted to $250 million.
52
FEDERAL DEPOSIT INSURANCE CORPORATION
Net profits and their disposition. Greater net current operating
earnings and lower net charge-offs combined to increase net profits
before taxes by 18 percent. In 1950 total profits before taxes were $1,365
million. This higher level of profits brought with it a higher average
rate of income tax, which absorbed 31 percent of net profits before
taxes. Net profits after taxes were $937 million, still well above the
previous peak in 1945. This represented a rate of return of 8.51 percent
on total capital accounts, compared with 7.98 percent in 1949, and was
the highest rate of profits since 1946.
For the eighth consecutive year dividend payments were larger than
in the preceding year, reaching a total of $391 million in 1950. Neverthe
less, the proportion of net profits disbursed as dividends was slightly
smaller than in 1949, comprising 42 percent of net profits after taxes.
This compares with an average of 39 percent disbursed during World
War II and 61 percent in the prewar period. The amount and disposition
of net profits after taxes from 1935 to 1950 are shown in Chart K.
C h art K .
D ispo sition o f N e t P rofits A fter T a x e s ,
I n su r e d C o m m ercial B a n k s ,
1935-1950
The profits retained, amounting to $546 million, were the principal
source of addition to capital accounts during the year. Except for 1945
and 1946, this was the largest addition to capital accounts since the
beginning of deposit insurance.
EARNINGS OF INSURED COMMERCIAL BANKS
53
Variation in net profits by State and size of bank. The rate of
net profit after taxes on total capital accounts varied considerably among
different geographical areas and among banks of different sizes. Part
of the variation simply reflected differences in the relative capital position
of the banks. However, economic forces having to do with location and
size of institution were also at work.
Of the twenty-five States in which the banks averaged a return of
10 percent or more on total capital accounts, nineteen were west of the
Mississippi River and the other six were in the South. New Mexico
with 14.6 percent had the highest rate. The lowest rates of net profit
were in the New England and Middle Atlantic States. New Hampshire
with 5.8 percent had the lowest rate. The rates for each State are shown
in Chart L.
Chart L.
R ate
of
N et
P r o f it
I n su red
A fter
T axes
on
C o m m e r c ia l B a n k s ,
T otal
C a p it a l
A cco u n ts,
1950
As in 1949, the rate of net profit on total capital accounts averaged
the highest among banks in the $1 million to $2 million size group; banks
in this group also had higher than average ratios of capital to assets.
In general, the larger the bank, the smaller the average rate of net profit.
M u t u a l S a v in g s B a n k s
Number, deposits, and assets of all mutual savings banks.
Mutual savings banks, unlike most commercial banks, conduct a spe
cialized type of business. Nearly all of their deposits are savings and
54
FEDERAL DEPOSIT INSURANCE CORPORATION
time deposits, and their loans and investments are largely in long-term
obligations. They are organized on the cooperative principle; depositors
supply the funds and are the beneficiaries of their operations.
There were 529 mutual savings banks in the United States at the
end of 1950. Although mutual savings banks comprised only 4 percent
of all banks in the United States at the end of 1950, and held only 11
percent of total bank deposits, they held 36 percent of the nation’s
savings and time deposits.
Mutual savings banks are heavily concentrated in the Northeastern
States; all but 16 are located in the New England and Middle Atlantic
States. Within this area the savings banks do a sizeable portion of the
total banking business. In New England mutual savings banks comprise
40 percent of all banks, and in New York some of the oldest and largest
banks are organized as mutual savings institutions. In New England
and New York State these banks held three-fourths of all savings deposits.
The number of mutual savings banks and their relative importance in
the States where they are located are indicated in Table 29.
T able 29.
N umber and D eposits of A ll B anks and of M utual Sayings B ank s ,
States H aving M utual Savings B anks , D ecember 30, 1950
Number of
banks
Total deposits
(in millions)
Time deposits of
business and
individuals
(in millions)
State
All
banks
Mutual
savings
banks
All
banks
Mutual
savings
banks
All
banks
Mutual
savings
banks
Mutual savings banks
as a percentage of
all banks
Time
deposits
of
Num Total
busi
ber deposits ness
and
indi
viduals
United States—
total..................
14,650
529
$175,296
$20,031
$54,932
$20,004
4%
11%
36%
17 States—total..
5,738
529
99,074
20,031
37,552
20,004
9
20
53
Maine..................
New Hampshire..
Vermont..............
Massachusetts.. .
Rhode Island. . . .
Connecticut.........
95
109
77
371
24
184
32
34
7
189
8
72
686
556
341
7,692
1,044
3,048
238
278
86
3,312
267
1,336
427
388
236
4,032
562
1,744
237
278
85
3,311
267
1,336
34
31
9
51
33
39
35
50
25
43
26
44
56
72
36
82
48
77
New York............
New Jersey..........
Pennsylvania. . . .
Delaware..............
Maryland............
759
347
978
40
173
130
23
7
2
9
44,393
5,455
11,906
623
2,073
11,665
599
1,077
88
402
15,577
2,563
4,062
160
813
11,661
587
1,076
88
401
17
7
1
5
5
26
11
9
14
19
75
23
26
55
49
Ohio.....................
Indiana................
Wisconsin............
Minnesota...........
Oregon.................
Washington.........
662
490
556
681
71
121
3
4
4
1
1
3
8,083
3,322
3,117
3,099
1,436
2,200
243
43
13
167
17
200
2,710
923
1,232
1,009
392
722
240
40
13
167
17
200
0)
1
1
«
1
2
3
1
0)
5
1
9
9
4
1
17
4
28
1 Less than 0.5 percent.
Detailed data: See Table 103, pp. 226-27.
55
MUTUAL SAYINGS BANKS
Savings and time deposits of mutual savings banks reached a new
high of $20 billion at the end of 1950. This represented a 4 percent in
crease during the year and a 30 percent expansion since December 31,
1945. In contrast, savings and time deposits of commercial banks in
New England and New York State have declined during each of the
last two years, and at the end of 1950 were only 14 percent above the
1945 level.
Assets of mutual savings banks totalled $22 billion at the end of 1950.
Investments in real estate loans have almost doubled since 1945 and at
the end of 1950 comprised over a third of their assets. Holdings of United
States Government obligations declined 5 percent during 1950 to ap
proximately their 1945 level, but still comprised nearly half of total
assets. Investments in other securities were about a tenth of total assets;
they decreased slightly during 1950 but were still almost twice their
1945 level. The principal assets and liabilities of all mutual savings
banks at the end of 1950 are compared in Table 30 with the amounts
in ,1949 and in 1945.
Table 30.
A s s e ts an d L ia b ilit ie s o f A l l
U n ite d S ta te s , D e c e m b e r,
M u t u a l S a v in g s B a n k s in t h e
1950, 1949, a n d 1945
Amount (in millions)
Asset, liability, or surplus
and capital account item
Dec. 30,
1950
Dec. 31,
1949
Percentage change1
Dec. 31,
1945
$22,385
$21,493
$17,021
Cash and funds due from banks..............
United States Government obligations..
Obligations of States and subdivisions...
Other securities.........................................
Real estate and other loans......................
Miscellaneous assets.................................
797
10,868
88
2,253
8,137
242
873
11,428
86
2,308
6,578
220
609
10,673
89
1,166
4,281
203
T ota l liabilities and surplus accounts
$22,385
$21,493
$17,021
Total deposits............................................
Miscellaneous liabilities............................
Surplus and capital accounts...................
20,032
106
2,247
19,293
78
2,122
15,385
43
1,593
Number of banks..........................................
529
531
T ota l assets.................................................
5422
1949 to
1950
4.2%
-8.7
-4.9
2.3
-2.4
23.7
9.9
4.2%
1945 to
1950
31.5%
30.8
1.8
-1.2
93.3
90.1
19.1
31.5%
3.8
37.0
5.9
30.2
145.5
41.1
-.4
-2.4
1 Computed from unrounded figures.
2 Includes 8 guaranty savings banks in New Hampshire.
Detailed data for 1950: See Table 105, pp. 232-33.
The maturity distribution of United States Government obligations
held by mutual savings banks at the end of each of the last three years
is shown in Table 31.
Number, deposits, and assets of insured mutual savings banks.
During 1950 two mutual savings banks, both in Rhode Island, became
insured by the Federal Deposit Insurance Corporation. This brought
56
FEDERAL DEPOSIT INSURANCE CORPORATION
to 194 the total number of mutual savings banks insured by the Cor
poration. At the end of 1950 these banks comprised 37 percent of all
mutual savings banks and held 71 percent of their deposits.
Table 31.
M a t u r it ie s of U n it e d St a t e s G o v e r n m e n t O b lig a t io n s H eld b y
A ll M u t u a l S a v in g s B a n k s , D ec e m b e r ,
1948-1950
Amount (in millions)
Type and maturity
United States Government
obligations — total............
Dec. 30,
1950
Dec. 31,
1949
Percentage distribution
Dec. 31,
1948
Dec. 30,
1950
Dec. 31,
1949
Dec. 31,
1948
$10,868
$11,428
$11,476
100.0%
100.0%
100.0%
Non-marketable issues1...........
642
569
537
5.9
5.0
4.7
Marketable issues:
Treasury bills, certificates,
and notes2.........................
177
290
391
1.6
2.5
3.4
Bonds maturing in—*
5 years or less...................
5 to 10 years.....................
10 to 20 years...................
Over 20 years...................
637
197
6,297
2,917
1,120
387
5,691
3,370
948
1,111
3,794
4,695
5.9
1.8
58.0
26.8
9.8
3.4
49.8
29.5
8.2
9.7
33.1
40.9
Guaranteed securities..........
1
1
M
(4)
(4)
«
1 United States savings bonds, Treasury bonds (investment series A-1965), and depositary bonds.
a 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.
3 Based upon number of years to final maturity.
4 Less than $500,000 or .05 percent.
The proportion of mutual savings banks insured by the Corporation
varies widely among the States, as shown in Table 32. In eight of the
seventeen States having mutual savings banks all of them are insured
by the Corporation; in three States, on the contrary, none is insured
by the Corporation. Accordingly, any comparison of the characteristics
of insured mutual savings banks with noninsured mutual savings banks
becomes largely a paraphrase of the features of mutual savings banks
in different States, particularly in New York and Massachusetts. Of all
deposits in insured mutual savings banks, New York State has 81 per
cent; on the other hand, Massachusetts has 58 percent of all deposits
in noninsured mutual savings banks.
Earnings o f insured m utual savings banks. Earnings data are
obtained by the Corporation for the insured mutual savings banks.
During the last few years insured banks have accounted for around
two-thirds of the total earnings of all mutual savings banks. Chart M
shows the sources and disposition of the total income of insured mutual
savings banks in 1950. Of the total income, 87 percent consisted of
current operating earnings and 13 percent of profits on securities sold
and recoveries on assets previously charged-off.
57
MUTUAL SAYINGS BANKS
In 1950 total current operating earnings of insured mutual savings
banks advanced to a new peak of $479 million. This was the ninth con
secutive year of record earnings. Almost half of total earnings came from
real estate mortgages. Income from United States Government obliga
tions provided 38 percent of total earnings, and other securities supplied
10 percent.
Table 32.
N u m b er a n d D e p o s its o f In s u r e d a n d N o n in s u r e d
M u t u a l S a v in g s B a n k s , b y S t a t e , D e c e m b e r 30, 1950
Percentage of
mutual savings
banks insured
on basis of—
Deposits in mutual
savings banks
(in millions)
Number of mutual
savings banks
State
Total
Insured
Non
insured
Total
Insured
banks
$14,3201
T o ta l...............................
529
194
335
$20,031
Maine..........................
New Hampshire.........
Vermont......................
Massachusetts............
Rhode Island..............
Connecticut................
32
34
7
189
8
72
6
26
34
27
189
6
69
238
278
86
3,312
267
1,336
New York...................
New Jersey.................
Pennsylvania..............
Delaware.....................
Maryland....................
130
23
7
2
9
130
23
7
2
7
11,665
599
1,077
88
402
11,665
599
1,077
Ohio.............................
Indiana........................
Wisconsin....................
Minnesota...................
Oregon.........................
Washington.................
3
4
4
1
1
3
3
3
3
1
1
3
243
43
13
167
17
200
243
31
13
167
17
200
7
2
3
2
1
1
Non
insured
banks
$5,711i
211
278
86
74
39
83
3,312
193
1,297
88
319
12
(*)
Num
ber
Deposits
37%
71%
19
11
100
100
25
4
28
3
100
100
100
100
100
100
22
21
100
75
75
100
100
100
100
71
97
100
100
100
1 Components do not necessarily add to the total because of rounding.
2 Less than $500,000.
Detailed data: See Table 103, pp. 226-27.
Income from real estate loans, which advanced 21 percent during the
year, accounted for practically all of the growth in earnings. The larger
volume of these loans was wholly responsible for this greater income, as
the average rate of return has fallen steadily from 4.61 percent in 1945
to 4.35 percent in 1950. This decline is due largely to an increased propor
tion of loans which are partially or fully guaranteed by the United States
Government and carry lower interest rates than most other mortgage
loans. During this period, the volume of real estate loans expanded
74 percent and total income from this source increased 64 percent.
A slight decline in income from United States Government obligations
during 1950 was offset by an increase in income from other securities.
The average rate of income on all securities was 2.45 percent, approxi
mately the same as in the preceding year.
FEDERAL DEPOSIT INSURANCE CORPORATION
58
Chart M.
S o u r c e s a n d D is p o s it io n o f T o t a l In com e,
I n s u r e d M u t u a l S a v in g s B a n k s ,
1950
Current operating expenses totaled $115 million in 1950, 11 percent
greater than in the previous year. Wages and salaries of $56 million
were the largest expense item. Officers received an average of $10,220
while other employees averaged $3,057. These wages and salaries are
higher than those received by commercial bank employees, due in part
to the concentration of insured mutual savings banks in New York
State, where wages and salaries exceed the national average.
Dividends paid to depositors increased 9 percent to $258 million.
This was the largest amount, the highest rate, and the greatest per
centage disbursement of net earnings since 1943, the earliest year for
which comparable data are available. These dividend payments, similar
to interest paid by other banks, afforded an average dividend to de
positors of 1.84 percent on their time and savings deposits. This rate
contrasts with the 0.94 percent interest paid on time and savings deposits
in insured commercial banks.
Amounts and average rates of income received on loans and securities,
and the dividends paid by insured mutual savings banks, from 1943 to
1950 are given in Table 33.
59
MUTUAL SAYINGS BANKS
Table 33.
A m o u n t a n d A v e r a g e R a t e o f In com e R e c e iv e d a n d D iv id e n d s o n
D e p o s i t s , I n s u r e d M u t u a l S a v in g s B a n k s ,
Income (in millions)
from—
Rate of income on— 1
Year
Loans
Securities
1950.......................
1949.......................
1948.......................
1947.......................
$235
194
169
153
$229
228
220
209
1946.......................
1945.......................
1944.......................
1943.......................
144
143
141
139
194
160
128
101
Loans
Securities
4.35%
4.37
4.43
4.51
2.45%
2.44
2.38
2.34
4.58
4.61
4.53
4.44
2.35
2.31
2.38
2.54
1943-1950
Dividends paid
on deposits
Amount
(in
millions)
$258
236
196
181
160
143
132
118
Rate1
Ratio of
dividends
to net
current
earnings
1.84%
1.79
1.57
1.53
71.0%
70.9
64.8
64.3
1.47
1.49
1.60
1.65
60.3
58.5
63.3
63.6
1 Loans, securities, and deposits used in computing these rates are averages of figures reported
at beginning, middle, and end of year.
Detailed data: See Tables 118 and 119, pp. 272-75.
Net current operating earnings in excess of dividends on deposits
were $105 million. This amount was augmented by profits on sales
of securities and by other recoveries and transfers from reserves of $74
million. However, losses, charge-offs and transfers to reserves of $83
million more than off-set these income items. Taxes computed on net
income amounted to $5 million. These taxes were franchise taxes rather
than true income taxes, for mutual savings banks are not subject to
income tax. However, in six States the amount of the franchise tax is
computed on the net income of the bank, and is therefore treated in
earnings reports as an income tax.
After all adjustments in surplus and capital accounts, these accounts
were $93 million greater at the year-end, amounting to $1,513 million.
The ratio of surplus and capital accounts to total assets rose slightly
to 9.5 percent.
PART THREE
HISTORY OF LEGISLATION FOR THE GUARANTY OR
INSURANCE OF BANK DEPOSITS
P red ecessor s
of
the
F ederal D
e p o s it
Insurance La w
Adoption of deposit insurance by the Congress in 1933 followed the
prolonged banking crisis of the early 1930’s, which had culminated in
thousands of bank failures and finally in the banking holiday of 1933.
However, the insurance of bank deposits was not a novel idea conceived
at that time nor was it an untried experiment.
The history of deposit insurance in the United States goes back a
century and a quarter to the efforts of State legislatures to establish
stable banking systems. A period of mushroom growth in banking had
followed the dissolution of the first Bank of the United States in 1811;
and this, together with the policies of the second Bank of the United
States at the end of that decade, had led to many bank failures in the
early years of the 1820’s. In the decades of the 1820’s and 1830’s banking
codes were developed in many of the States. The primary aim of these
codes was to provide conditions under which bank credit would not be
subject to alternations of excessive expansion and contraction, with
consequent periods of financial disturbance accompanied by numerous
bank failures.
At that time the credit of commercial banks was extended both in
the form of deposit accounts and in the form of circulating notes, or
currency; and the latter formed a much larger part of the nation’s circu
lating medium than do the circulating notes issued now by the Treasury
and the Federal Reserve banks. In the 1820’s, the total circulating
medium was about equally divided between deposits and currency;
and practically all of the currency, except for minor coins, consisted
of circulating notes of commercial banks.
State systems of guaranty of bank obligations prior to creation
of the national banking system. In the discussions accompanying
the development of banking codes, there was more agitation for special
legislative provisions to assure the safety of bank credit in the form of
circulating notes than in the form of deposits. In many sections of the
country, currency issued by banks was predominantly used in making
payments, and tended to circulate for long periods of time before being
returned to the issuing bank. The use of deposits was mainly concen
trated in the large cities, and checks or drafts on deposits were usually
presented to the issuing bank promptly. In consequence, some of the
plans for insurance of bank obligations covered only circulating notes,
while others covered both circulating notes and deposits. The earliest
plans covered both notes and deposits.
63
64
FEDERAL DEPOSIT INSURANCE CORPORATION
Insurance funds covering both circulating notes and deposits, or the
mutual guaranty of bank obligations, were established by New York in
1829, Vermont in 1831, Indiana in 1834, and Michigan in 1836. The
New York plan was modified to cover circulating notes only in 1842,
after the fund was found insufficient. Plans covering circulating notes
only were adopted by Ohio in 1845 and Iowa in 1858.
These plans met with varying degrees of success. The Michigan plan
applied only to a few banks and appears never to have been in actual
operation. The New York and Vermont funds were partially successful,
meeting nearly all claims against them and operating for about forty
years, passing out of existence with the termination of the charters of
all the participating banks. The plans in Indiana, Ohio, and Iowa applied
to the offices of so-called State banks, the “ branches” of which were in
reality independent banks subject to examination and supervision by
State boards of control. All three were highly successful. They were
discontinued only when the “ branches” converted into national banks
following the prohibitive Federal tax in 1865 on circulating notes of
State banks.
United States government guaranty of circulating banknotes.
In 1863 the National Bank Act provided for guaranty by the Federal
Government of circulating notes issued by national banks.1 Federal
Government guaranty of circulating banknotes has continued to the
present time. Guaranty of national banknotes continued until 1935,
when they were retired, and the notes of Federal Reserve banks have
been guaranteed since establishment of the Federal Reserve System.
At the time when establishment of a national banking system was
under consideration, circulating notes were, as in the 1820’s, about
equal in amount to deposits. A large portion of the circulating notes in
use in 1863, when the National Bank Act was adopted, had been issued
by the Federal Government during the early years of the Civil War.
The remaining circulating notes were issues of State banks. It was ex
pected that most of these circulating notes would be replaced by notes
of the new national banks.
Consequently, at the beginning of the national banking system it was
expected that about one-half of the circulating medium would be covered
by Federal government guaranty. This is about the same proportion of
the circulating medium as was guaranteed or insured after establish
ment of the Federal Deposit Insurance Corporation in 1934. With the
more rapid growth of currency than of deposits during World War II,
the amount of deposits insured and currency guaranteed rose to about
three-fifths of the circulating medium.
iEach bank which issued circulating notes was required to purchase United States Government bonds
and deposit them with the Comptroller of the Currency as security for the circulating notes, which were
printed under the directions of the Comptroller.
PREDECESSORS OF FEDERAL DEPOSIT INSURANCE
65
Due to circumstances which apparently were not foreseen at the
time of passage of the National Bank Act, the proportion of bank obliga
tions guaranteed by the Federal Government under the provisions of
that Act declined substantially in the 1870’s and 1880’s. Circulating
notes did not expand as rapidly as the needs of the nation for circulating
medium. Increased use was made of deposits transferable by check
because of their convenience in making payments in distant places and
their advantages with respect to safekeeping. In consequence, the prob
lem of assuring the safety and value of bank deposits became as important
a monetary problem as that of assuring the safety and value of banknotes.
Proposals for guaranty of deposits in national banks, 1886-1912.
By the middle of the 1880’s deposits had become over four-fifths of the
circulating medium. The problem of protecting bank deposits was
sufficiently acute to bring about the introduction in the Congress of
bills providing for the guaranty of deposits. Four bills for this purpose
were introduced in the House of Representatives in 1886. Fourteen
more were introduced in the Congress prior to 1900.
In the 60th Congress, following the panic of 1907, about thirty proposals
for deposit guaranty legislation were made. Most of these related to
deposits in national banks but in a few cases other banks were also eligible
for participation. In 1908 the National Monetary Commission was
established and during the next five years only a few bills for deposit
guaranty were introduced in Congress. It is believed that numerous
proposals of this sort were made to the National Monetary Commission
but no record of them has been located.
State deposit guaranty systems, 1907-1917. Proposals for the
guaranty of bank deposits were not confined to the Federal Congress. In
the 1890’s and the early years of the present century, many similar
proposals were made in the legislatures of various States.
During the period 1907-1917 deposit guaranty funds were established
in eight States: Oklahoma in 1907; Kansas, Nebraska, and Texas in
1909; Mississippi in 1914; South Dakota in 1915; and North Dakota
and Washington in 1917. By 1933 these funds had become insolvent
or inoperative as a result of the large number of bank failures in the 1920’s
and early 1930’s, and of relatively high failure rates among the larger
banks.
Proposals for Federal deposit insurance, 1913-1932. During the
period when establishment of the Federal Reserve System was under
consideration proposals for deposit guaranty were considered by the
banking and currency committees of the Congress. The Federal Reserve
Act, as reported by the Senate Committee on Banking and Currency and
as passed by the Senate in 1913, contained a provision placing part of
the earnings of the Federal Reserve banks in a depositors’ guaranty
66
FEDERAL DEPOSIT INSURANCE CORPORATION
fund. This was eliminated by a joint conference committee with the
House. However, during the next few years several bills for the guaranty
of bank deposits were introduced.
In the early 1930*s numerous proposals for deposit guaranty were
made. More than twenty bills for this purpose were introduced in the
72nd Congress, which opened in 1931. Early in 1932, hearings on one
of these were held by a subcommittee of the Banking and Currency
Committee of the House of Representatives. Following the hearings,
the bill was reported favorably by the Committee, and it passed the
House of Representatives in May 1932. The Banking and Currency
Committee of the Senate, to which the bill was referred after its passage
by the House, took no action on it before the 72nd Congress adjourned
on March 4, 1933.
In the first session of the 73rd Congress, which opened on March 9,
1933, several bills for deposit insurance were introduced. One of these
proposals was incorporated in the Banking Act of 1933, as introduced
in the House and Senate by the chairmen of their banking and currency
committees.
D e p o s it I n s u r a n c e L e g i s la t io n ,
1933-1950
Federal legislation regarding deposit insurance. Most of the
important features of the deposit insurance law, as enacted in June 1933,
may be found in one or more of the bills previously introduced in the
Congress. Some of the basic provisions were contained in the very earliest
of the bills introduced.
One feature of the deposit insurance law of 1933 was provision for
two distinct and separate plans of deposit insurance. One of these was a
temporary plan which limited the protection to $2,500 for each depositor.
The other was a permanent plan which provided 50 percent coverage
on all deposits in excess of $50,000, 75 percent coverage of deposits
exceeding $10,000 but not $50,000, and full coverage of all deposits up
to $10,000 per depositor.
Both of the plans of deposit insurance embodied in the Banking Act
of 1933 were amended. Coverage under the temporary plan was raised
in 1934 to $5,000. The permanent plan was revised in 1935, before going
into effect, with coverage reduced to $5,000. In 1950, coverage under
the permanent plan was raised to $10,000. Table 34 gives the insurance
coverage and sources of funds in the plans for deposit insurance approved
by the Senate in 1913 and the House of Representatives in 1932, the
two plans adopted in 1933, and the subsequent amendments.
State deposit insurance legislation, 1934-1943. Subsequent to
creation of the Federal Deposit Insurance Corporation three States
PREDECESSORS OF FEDERAL DEPOSIT INSURANCE
67
provided for establishment of deposit insurance funds for mutual savings
banks. These were Massachusetts and New York in 1934, and Connecticut
in 1943. The New York fund passed out of existence in 1943, when all the
participating banks became insured by the Federal Deposit Insurance
Corporation. The Massachusetts plan covers all mutual savings banks
in the State; in Connecticut nine-tenths of the savings banks participate.
In all three of these plans for mutual savings banks the insurance covered
all deposits.
Table 34.
D eposits I n su re d a n d S ources of F u nd s in D eposit I n su r a n c e
P l a n s E n act ed b y C ongress or P assed b y O n e H ouse
Act
Deposits covered1
Assessments on
participating banks
Other sources of funds
Federal Reserve
Act as passed
by Senate, Sept.
19, 1913
All deposits
None
25 percent of net earnings of Fed
eral Reserve banks after dividends
Passed House of
Representatives,
May 27, 1932
All deposits
Annually on banks members
F. R. System not over
$100,000,000 distributed
in proportion to deposits
and at same rate in par
ticipating banks not mem
bers F. R. System; if fund
exceeds $500,000,000, ex
cess may be refunded to
banks contributing to last
annual assessment
Initial levy on F. R. banks $150,000,000 in proportion to surplus;
45 percent of net earnings of F. R.
banks after dividends; U. S.
appropriation of amount received
as franchise tax from F. R. banks.
Federal Bank Liquidating Board
empowered to borrow on assets|of
insolvent national banks, and- to
borrow a maximum of $500,000,000 from the Reconstruction
Finance Corporation
Banking Act of
1933 (approved
June 16)
Permanent plan
100 percent of
each depositor's
account not ex
ceeding $10,000,
75 percent in ex
cess of $10,000
up to $50,000,
and 50 percent
of accounts in
excess of $50,000
Capital stock subscription
equal to 1/2 of 1 percent
of outstanding deposits as
of January 1, 1933; as
sessment equal to 1/4 of
1 percent of total deposits
when net debit balance of
deposit insurance account
equals or exceeds that
amount
Capital stock subscription by F. R.
banks equal to one-half of surplus
on Jan. 1, 1933, and by U. S.,
$150,000,000. Federal Deposit
Insurance Corporation empowered
to issue its obligations not to
exceed 3 times its capital and
surplus
Banking Act of
1933 (approved
June 16)
Temporary plan
$2,500 per deposi
tor (am ended
June 16, 1934,
to $5,000 per
depositor, with
option of $2,500
or $5,000 for
mutual savings
banks)
1/4 of 1 percent of insured
deposits, plus 1/4 of 1
percent on call by the
Corporation
As in permanent plan
Banking Act of
1935 (approved
August 23)
$5,000 per
depositor
Annually 1/12 of 1 percent
of average deposits
Capital stock subscription of U. S.
Treasury and Federal Reserve
banks ($289,000,000) transferred
from temporary fund. Federal
Deposit Insurance Corporation
empowered to issue obligations not
to exceed 3 times amount received
by the Corporation in payment of
its capital stock and in assess
ments on insured banks for 1936
Federal Deposit
Insurance Act,
1950 (approved
Sept. 21)
$10,000 per
depositor
Annually 1/12 of 1 percent
of average deposits, with
three-fifths of this amount
adjusted for losses and
operating costs to be re
turned to insured banks
Federal Deposit Insurance Corpora
tion authorized to borrow from
Treasury a maximum of $3,000,000,000 at any one time
i
In the Federal Reserve Act as passed by the Senate in 1913 deposit insurance applied to banks members
of the Federal Reserve System. In the other acts, all members of the Federal Reserve System were required to
participate, and applicant State banks were eligible for participation upon certification of solvency or sound
condition by the State authority or upon examination and approval by the administrative Board.
68
FEDERAL DEPOSIT INSURANCE CORPORATION
A n a ly s is o f C o n g r e s s io n a l P r o p o s a ls f o r
D e p o s it G u a r a n ty o r In s u r a n c e ,
1886-1933
For the entire period from 1886 to the establishment of the Federal
Deposit Insurance Corporation, 150 bills for the guaranty or insurance
of bank deposits, including a few proposed amendments to banking
bills under consideration, are known to have been introduced in the
Congress. It is probable that the total number introduced was larger,
for it has not been feasible to analyze the content of all bills relating
to banking.
The foregoing figure does not include bills proposing the establishment
and operation of banks of deposit by the government itself. Numerous
proposals of this type have been introduced in the Congress, some
calling for establishment of a Bank of the United States with branches
scattered throughout the country, others for a series of banks owned
by the government and operating under conditions similar to those
imposed upon national banks, and others for expansion of the Postal
Savings System to provide for receipt of deposits and their transfer by
check at postoffices throughout the nation. The number of such proposals
has not been tabulated. Several bills which would have authorized
national banks to participate in State deposit guaranty plans are also
excluded from the tabulation.
Another group of bills, similar in principle to deposit insurance, pro
posed to authorize national banks to issue circulating notes on the basis
of various types of assets or as general obligations of the banks, with a
guaranty or insurance fund to which all national banks would contribute.
These proposals were numerous during the thirty years preceding estab
lishment of the Federal Reserve System. The number of these bills has
not been tabulated.
Of the 150 bills for the guaranty or insurance of bank deposits about
one-half were original bills in the sense that the proposals embodied in
them differed significantly from proposals embodied in other bills. The
rest of the bills were duplicates or slightly amended versions of the
original bills. These duplicates or amended bills include cases where
identical bills were introduced in both Houses of the Congress on the
same day or approximately the same time, cases where a member of
the Congress introduced the same bill into successive Congresses, and
cases where members of the Congress made slight revisions in their
proposals and reintroduced them as new bills. However, it is not possible
to draw a definite line of demarcation between original proposals and
duplicate or revised bills. Many of the bills with definitely original pro
visions were similar to previously introduced bills with respect to other
features. A digest of the provisions of each of the 150 bills is given on
pages 80-101.
69
CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE
Sponsors* The 150 bills were introduced by 79 different members of
the Congress, of whom 22 were Senators and 57 members of the House
of Representatives. The latter figure excludes two Representatives who
also introduced bills as Senators. The sponsors of the bills came from
30 States in all parts of the nation. Slightly over one-half of the sponsors
were Democrats, and nearly one-half Republicans. Three were members
of other parties.
Character of protection. Three general methods of providing pro
tection for depositors were proposed in the bills. Of the 150 bills, 118
provided for the establishment of an insurance fund, sometimes called
a guaranty fund, out of which depositors’ losses would be paid; 22 pro
vided for United States government guaranty of deposits; and 10 required
banks to purchase surety bonds guaranteeing deposits in full. Table 35
shows the number of each of these three types of bills introduced in each
Congress.
Table 35,
C o n g r e s s io n a l B il l s
of
Bank
for
D e p o s it s ,
G uaranty
or
In su ran ce
1886-1933
NUMBER IN e a c h CONGRESS CLASSIFIED BY CHARACTER OF INSURANCE OR GUARANTY
Bills providing for—
Congress and years
T o ta l....................................................
Congress
49th, 1885-87...............................
50th, 1887-89...............................
51st. 1889-91....................................
52nd, 1891-93...................................
53rd, 1893-95...................................
54th, 1895-97...................................
55th,
56th,
57th,
58th,
59th,
60th,
United
States
government
guaranty1
Total
150
22
4
1
Surety
bonds by
fidelity
company
Insurance*
118
10
4
1
2
5
1
1
2
1
1
3
3
1897-99...................................
1899-01...................................
1901-03...............................
1903-05...................................
1905-07.................................
1907-09...................................
5
2
1
6
33
3
61st, 1909-11....................................
62nd, 1911-13...............................
63rd, 1913-15...................................
64th, 1915-17...............................
65th, 1917-19...................................
66th, 1919-21...............................
7
2
8
3
5
3
67th, 1921-23.......................
68th, 1923-25.................................
69th, 1925-27...................................
70th, 1927-29...................................
71st, 1929-31....................................
72nd, 1931-33...................................
3
6
6
6
7
21
2
1
1
3
3
5
3
2
5
153
1
1
3
1
3
73rd, 1933 (M ar.-May)..................
15
1
13
1
1
1
3
6
30
6
2
8
3
2
3
1 Includes four bills providing for an insurance fund to which government appropriations were to
be made sufficient to maintain it at a specified minimum.
2 One fund for all participating banks, except in eight bills in which separate funds were to be estab
lished in the various Federal Reserve districts.
* Includes 1 bill in which cost was to be underwritten in part by the United States Government.
70
FEDERAL DEPOSIT INSURANCE CORPORATION
Several of the proposals for insurance or guaranty of bank deposits
were accompanied by other proposed currency and banking reforms.
Such reforms related to methods and extent of currency issue, and to
the methods and character of chartering, regulating, and examining
banks.
Participant banks. Most of the bills for guaranty or insurance of bank
deposits introduced prior to establishment of the Federal Reserve System
in 1913 authorized participation of national banks only, though a few
of them also covered deposits in State banks which met specified condi
tions. About one-half of the bills introduced subsequent to establishment
of the Federal Reserve System provided for participation of all members
of that system. Most of the remaining bills covered only national banks.
Only a few provided for coverage of deposits in banks which were not
members of the Federal Reserve System. In a few bills the insurance
of deposits applied to cooperative banks, which were to be established,
with limited dividends to stockholders and distribution of the remaining
profits to depositors.
In nearly all the proposals participation was required of national
banks, or of all banks members of the Federal Reserve System; such
participation was optional in only a few of the proposals. In the cases in
which deposit guaranty was made available to State banks not members
of the Federal Reserve System, such participation was optional.
A more detailed classification and summary of the provisions of the
various bills regarding participation in deposit insurance or guaranty
is given in Table 36.
Administrative authority. Nearly two-thirds of the bills for deposit
insurance or guaranty introduced prior to establishment of the Federal
Reserve System provided for administration of the insurance or guaranty
system by the Comptroller of the Currency. Most of the remaining bills
introduced during that period provided for administration of the system
by the Secretary of the Treasury. A few, however, named the Treasurer
of the United States, and in two cases new boards were proposed.
In the case of bills for deposit insurance or guaranty introduced
subsequent to establishment of the Federal Reserve System, about
one-fourth provided for administration by the Comptroller of the Cur
rency and nearly one-third by the Federal Reserve Board or by the
Federal Reserve banks under supervision of the Board. However, nearly
one-fifth of the bills introduced during this period provided for special
administrative boards. In many of these the Comptroller of the Currency
was to be a member of the proposed administrative board. In a few cases
one of the members of the Federal Reserve Board was to be a member
of the board in charge of the insurance system.
CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE
Table 36.
71
B a n k s R e q u i r e d o r P e r m i t t e d t o P a r t i c i p a t e in D e p o s i t I n s u r a n c e
o r G u a r a n t y P r o p o s a ls f o r F e d e r a l L e g is la t io n —
1886-1933
Banks participating
Number
of bills
T ota l bills in trodu ced ................................................................................................................
150
N ational banks— t o t a l...............................................................................................................
All national banks......................................................................................................................
All national banks members Federal Reserve System1..........................................................
All national banks organized under the A ct............................................................................
National banks in satisfactory condition.................................................................................
National banks found solvent by the Comptroller of the Currency.....................................
National banks accepting the A ct............................................................................................
All national banks in each Federal Reserve district in which fund is established by ma
jority vote of the bank......................................................................................................
81
72
National and State banks— to ta l............................................................................................
All national banks; applicant State banks solvent and properly managed..........................
All national banks; applicant State banks under conditions prescribed by the Comptroller
of the Currency..................................................................................................................
National and State banks accepting the A ct..........................................................................
Solvent national and State banks accepting terms of the A ct..............................................
Any applicant national or State bank certified as sound by the Secretary of the Treasury
or State banking authority, respectively, and approved by the Federal Bank Liqui
dating Board................................................................................................................. ..
All national banks; applicant savings banks agreeing to same regulations and examinations
as national banks................................................................................................................
2
1
1
1
1
3
7
2
1
1
1
1
1
Federal Reserve m em ber banks—to ta l.................................................................................
All Federal Reserve member banks............................... .........................................................
All national banks and all State banks members Federal Reserve System1........................
All Federal Reserve member banks except those under a State deposit guaranty law. . . .
All Federal Reserve member banks, with State banks members of State funds having
privilege of withdrawal......................................................................................................
All members Federal Reserve System in each district in which guaranty fund has reached
size prescribed by Board........................ ; .........................................................................
All Federal Reserve member banks “ deemed sound” or certified as to “ apparent sol
vency” by the Comptroller of the Currency...................................................................
41
23
10
4
Federal Reserve m em ber banks and other bank s..............................................................
All members Federal Reserve System; other applicant banks with total capital account
of $25,000 or more which are certified to be in sound financial condition (or which
maintain a satisfactory condition and management).....................................................
All members Federal Reserve System; other applicant banks certified by State authority
to be in sound financial condition.....................................................................................
All members Federal Reserve System; other applicant banks upon approval by (or com
plying with requirements of) the Federal Reserve Board..............................................
All members Federal Reserve System; other applicant State banks approved by directors
of insurance fund................................................................................................................
All members Federal Reserve System; other applicant State banks certified to be solvent
by State authority and approved by directors of fund..................................................
All members Federal Reserve System; other applicant banks and building and loan
associations found solvent2................................................................................................
12
All classes o f ba n k s....................................................................................................................
All banks organized under the Act3.........................................................................................
Any applicant bank organized under the Act3........................................................................
All national banks and all banks under State charter, including private banks.................
All Federal Reserve member banks, with all banks of deposit required to become members
of the Federal Reserve System.........................................................................................
5
Cooperative banks to be organ ized ........................................................................................
Cooperative national banks.......................................................................................................
Federal cooperative banks.........................................................................................................
1
1
2
3
1
2
2
2
2
1
1
1
2
4
2
2
1 Membership in the Federal Reserve System is optional with national banks located in territories
and possessions.
2 These bills also offered insurance to individual depositors in banks which did not apply for insurance.
3 These were general banking reform bills, under which all or most operating banks were expected
to come under provisions of the proposed Act.
The various methods of administration proposed in the bills are
shown in Table 37.
Deposits and other liabilities protected. Four-fifths of the bills
provided for insurance or guaranty of all, or nearly all, deposits. In
72
F E D E R A L D E PO SIT IN SU R AN C E C O RPORATION
some cases deposits otherwise secured, or deposits of officers, directors,
and stockholders, were excluded from protection. In most of the bills
providing full coverage of deposits, payment from the insurance or
guaranty fund was to be made as soon as practicable; in a few bills, the
payments from the fund were to cover the deposits not paid from the
proceeds of liquidation. In most of the latter cases depositors would be
required to wait until the completion of liquidation before they could
obtain payments from the fund, though in a few cases advances to re
ceivers or liquidating agents were authorized.
Table 37.
A d m in is tr a t iv e A u t h o r i t y in P r o p o s a ls f o r F e d e r a l D e p o s it
I n s u r a n c e o r G u a r a n ty L e g is la tio n ,
1886-1933
Number of bills
Administrative authority
Total
49th to 62nd
Congresses1
63rd to 73rd
Congresses3
T otal num ber o f b ills.................................................
150
67
83
Comptroller of the Currency.....................................
Secretary of the Treasury (or Treasury
Department)........................................................
Treasurer of the United States*................................
Federal Reserve Board...............................................
Federal Reserve banks under supervision of Federal
Reserve Board.....................................................
64
44
20
33
7
20
20
1
13
6
20
18
5
5
Agency to be created— to ta l.....................................
Ministers of Finance (Board of 3 persons suc
ceeding the Comptroller of the Currency).......
Cooperative reserve bank..........................................
Federal Farm Board...................................................
Bureau of Insurance to be organized by Treasury
Department.........................................................
Federal Guaranty and Insurance Corporation........
Federal Bank Liquidating Board..............................
Federal Banking Commission....................................
Guarantee Board........................................................
Federal Bank Deposit Insurance Corporation........
Federal Deposit Insurance Corporation...................
20
2
2
2
2
2
1
2
4
2
2
1
2
1
2
4
2
2
1
2
N ot specified.................................................................
1
1
2
2
1 Prior to establishment of the Federal Reserve System.
*
Subsequent to establishment of the Federal Reserve System, including proposed amendments
to the Federal Reserve Act while that Act was under consideration.
8 Includes one bill with administration by the Treasurer of the United States and Comptroller of
the Currency.
The bills which provided for only partial coverage of deposits con
tained a variety of limitations. Three provided coverage of 50 percent
of deposits in excess of $50,000, 75 percent of deposits in excess of $10,000
up to $50,000, and full coverage up to $10,000 for each depositor. Four
limited the coverage to 50 percent of deposits; one to 25 percent of
deposits; and six to 25 percent of deposits other than interest bearing
time deposits and deposits otherwise secured. Three limited the protection
to $5,000 for each depositor. Several bills limited the protection to non
interest bearing deposits of individuals and institutions or non-interest
73
CON GRESSION AL PROPO SALS FOR D EPOSIT IN SU R A N C E
bearing deposits of individuals subject to check; and several others to
deposits bearing not more than specified rates of interest. Two bills
covered time deposits only and limited the protection to 75 percent.
In a substantial number of bills all liabilities not otherwise secured
were protected by the insurance or guaranty. In no bill did the protection
extend to capital accounts.
Further details regarding the protection to be afforded to depositors
and other creditors are given in Table 38.
Table 38.
D e p o s its a n d O t h e r L ia b ilit ie s C o v e r e d b y In s u r a n c e o r
G u a r a n t y in P r o p o s a ls f o r F e d e r a l L e g is la t io n ,
1886-1933
Liabilities covered
T ota l num ber o f b ills.................................................................................................................
C om plete, or nearly com plete, coverage o f deposits, and also fu ll or partial cov
erage o f other liabilities— t o ta l...................................................................................
Deposits and other liabilities.....................................................................................................
All liabilities to creditors not covered by assets or not paid from proceeds of liquidation..
All liabilities, except circulation and United States deposits1...............................................
All liabilities, except circulation, United States deposits, and other secured public deposits
All depositors and creditors, except officers, directors, and stockholders............................
Deposits and circulating notes..................................................................................................
Deposits, circulating notes, and expenses of note redemption and bank examination3. ..
Deposits and obligations to creditors, excluding creditors for borrowed money, not
covered by proceeds of liquidation...................................................................................
Com plete, or nearly com plete, coverage o f deposits—to ta l............................................
All deposits3................................................................................................................................
All deposits except those of officers, directors, and stockholders.........................................
Deposits, except United States government...........................................................................
Deposits not otherwise secured.................................................................................................
Deposits not covered by assets or not paid from proceeds of liquidation.........................
Deposits not covered by assets, with interest at 3 percent...................................................
Individual deposits.....................................................................................................................
Depositors’ losses for which bank would be responsible in law.............................................
Partial coverage o f deposits—to ta l.........................................................................................
Deposits, except those for current account bearing over 2 percent interest, and time
deposits bearing over 4 percent interest..........................................................................
Deposits bearing not over 2 percent interest, in full; 2 to 3 percent interest, 95 percent
coverage; 3 to 4 percent interest, 90 percent coverage; 4 to 5 percent interest, 80
percent coverage; 5 to 6 percent interest, 70 percent coverage; over 6 percent, no
coverage...............................................................................................................................
Deposits not bearing interest....................................................................................................
Non-interest bearing deposits of individuals and institutions...............................................
Individual deposits non-interest bearing and subject to check.............................................
Full coverage up to $10,000 for each depositor; 75 percent of deposits in excess of $10,000
up to $50,000; 50 percent of deposits in excess of $50,000.............................................
50 percent of deposits................................................................................................................
25 percent of deposits................................................................................................................
25 percent of deposits, exclusive of interest bearing time deposits and deposits secured..
75 percent of time deposits.......................................................................................................
Deposits, maximum $5,000 for each depositor.......................................................................
Deposits, except those bearing 4 percent interest, maximum $5,000 for each depositor..
Number
of bills
150
41
9
2
9
3
8
2
1
7
79
46
2
2
4
21
2
1
1
30
2
1
2
5
1
3
4
1
6
2
2
1
1 Includes 5 bills which provide for both a premium and reserve fund, with coverage reduced to
90 percent if necessary to draw on reserve fund.
2 90 percent of loss paid from general guaranty fund, 10 percent assessed upon banks in redemption
district in which failed bank was located.
8
Includes 3 bills with coverage of all “ just claims0 of depositors, and 3 bills providing for coverage
as follows: deposit accounts up to $1,000 to be paid not less than 50 percent, those over $1,000 not less
than 25 percent or $500 whicnever is greater within 60 days, balance within 1-1/2 years thereafter.
Assessments and other sources of funds. The means by which funds
were to be obtained to meet the cost of deposit insurance or guaranty
were diversified. Table 39 lists the various methods proposed.
74
F E D E R A L DE PO SIT IN SU R AN C E CORPORATION
T a b le 39. S ources of F u nd s in P roposals for F ed e r a l L e g isl a t io n
R e g ar d in g I n su r a n c e or G u a r a n t y of B a n k D eposits
Source of fund
Number
of bills
T otal nu m ber o f b ills.............................................................................................................
150
Cost m et solely by assessment on participating b a n k s............................................. ..
Fixed periodic assessment on total or average deposits................................................... .
Initial or occasional assessment, or both, on total or average deposits......................... ..
Periodic arid also initial or occasional assessment on total or average deposits.............
Assessment on base other than total or average deposits1......................................... .......
Assessment on total or average deposits and on other base...................................... .......
71
32
Cost m et chiefly by assessment on banks, supplem ented by funds from other
sources2..............................................................................................................................
Assessment on total or average deposits, and levy on Federal Reserve banks...................
Assessment on total or average deposits, and contribution from United States Government
Assessment on total or average deposits, levy on Federal Reserve banks, and contribution
from United States Government......................................................................................
Assessment on base other than total or average deposits, and contribution from United
States Government............................................................ ...................................... .........
Assessment on base other than total or average deposits, levy on Federal Reserve banks,
and contribution from United States Government.........................................................
Cost m et w ithout assessment (or with supplem ental assessment only) on par
ticipating ba n ks..........................................................................................................
Assessment on property holders...............................................................................................
Assessment on bank customers, levy on Federal Reserve banks, and contribution from
United States Government...................................................................................... .........
Levy on Federal Reserve banks...............................................................................................
Contribution from United States Government............................................................. .........
Levy on Federal Reserve banks, and contribution from United States Government........
C ost m et solely or chiefly by surety bond prem ium s paid by ba n k s................. .........
Surety bond requirements only................................................................................................
Surety bond requirements with portion of cost not exceeding 1 percent of deposits covered
chargeable to depositor......................................................................................................
1
16
15
7
38
9
13
7
7
2
31
1
5
7
14
4
10
9
1
1 Proposed assessment bases, other than total or average deposits, were of the following types:
insured deposits, capital stock or capital and surplus, fixed sums, circulating notes (including use of
existing tax on circulation as a deposit insurance premium), bonds deposited to secure circulation,
redemption fund for circulating notes, and money paid to United States Treasury by national banking
associations under existing laws.
2 The proposals for levy on the Federal Reserve banks were of two types: payment of part or all
of the net earnings of the Federal Reserve banks into the guaranty fund; and an initial levy on the
surplus of the Federal Reserve banks.
The proposals for Federal government contributions were of four types: an initial contribution;
contributions of amounts received from Federal Reserve banks as franchise tax; contributions of Treasury
receipts from payments by commercial banks such as the tax on circulating notes, unused redemption
fund for circulating notes of closed banks, interest on government deposits, and on issues of national
bank credit notes; and an appropriation sufficient to meet the cost in excess of other funds.
In nearly one-half of the bills the entire cost of deposit guaranty or
insurance, and in about one-fourth of the bills the major part of the
cost, was to be met by assessments upon the banks. Most of the bills
which provided for meeting the cost wholly or chiefly by assessments
on banks levied such assessments on average total deposits or on total
deposits at specified dates. Several bills provided for assessments upon
bases other than total deposits: time deposits, interest bearing deposits,
guaranteed deposits, capital stock, capital and surplus, circulating notes,
loans and discounts, and fixed sums.
The various proposed rates of assessment on deposits are given in
Table 40. In this table rates of assessment applicable to periods shorter
than a year have been converted to equivalent rates per year, in order
to facilitate comparison; and certain special provisions, such as use of
75
CONGRESSION AL PROPO SALS FOR DEPOSIT IN SU R AN C E
capital stock instead of deposits as a base of assessment in the case of
new banks, have been omitted.
T a b le 4 0 .
R at e s of A ssessm en t on D eposits in P roposals for
D eposit I n su ran c e
Rate of assessment
Number
of bills
T ota l num ber o f b ills.............................................................................................................
150
Not providing for assessments on deposits or depositors............................................
56
Providing for assessment on depositors (annual rates)1.................................................
1/4 of 1 percent......................................................................................................................
1/5 of 1 percent......................................................................................................................
4
Providing for assessments on insured deposits with insurance n ot covering all
deposits (annual rates)1...............................................................................................
1/8 of 1 percent (coverage 75 percent of time deposits)2...................................................
1/10 of 1 percent (coverage limited to $5,000)....................................................................
Bills providing for assessments on total or average deposits necessary to cover costs1
3/10 of 1 percent annually, additional 1/2 of 1 percent each when necessary....................
Initial 5 percent, additional sufficient to maintain fund at 5 percent3.................................
Initial 1 percent, additional sufficient to maintain fund at 1 percent4.................................
Initial 1 percent, annually 1/10 of 1 percent, and additional necessary to keep fund at
1 percent..........................................................................................................................
Initial 1/8 of 1 percent, additional necessary to maintain fund at $3 million................
Initial (in form of capital stock subscription) 1 /2 of 1 percent, additional 1 /4 of 1 percent
when necessary to meet debits to fund........................................................................
1 /4 of 1 percent annually subject to variation if necessary...............................................
Sufficient to pay claims (as determined by administrative authority)5...........................
Rate to be established by authority administering funds...................................................
Bills providing for fixed periodic assessments proportional to total or average
deposits, or such assessments plus lim ited additional assessments (annual
rates)1...................................................................................................................................
1/10 of 1 percent (for first two years 1/2 of 1 percent), additional not over 1 percent if
fund is depleted...................................................................................................................
1 percent......................................................................................................................................
1 /2 of 1 percent, additional 1 percent if necessary................................................................
1 /2 of 1 percent, additional 1 /2 of 1 percent if necessary.....................................................
1 /20 of 1 percent, additional to total 1 percent if necessary?...............................................
1/2 of 1 percent (initial 1 percent)...........................................................................................
1/2 of 1 percent..........................................................................................................................
$100 million in proportion to deposits (initially equivalent to about 1/3 of 1 percent)8. ..
1/4 of 1 percent for reserve fund plus 1/10 of 1 percent for premium fund........................
1/4 of 1 percent..........................................................................................................................
1/4 of 1 percent on savings or interest-bearing deposits, and 1/10 of 1 percent on demand
deposits (for first two years 1 /2 percent of all deposits)................................................
1/5 of 1 percent9.........................................................................................................................
1/8 of 1 percent..........................................................................................................................
1/10 of 1 percent........................................................................................................................
1/10 of 1 percent, if necessary..................................................................................................
1/20 of 1 percent........................................................................................................................
1/50 of 1 percent........................................................................................................................
$100, additional 1/50 of 1 percent if necessary.......................................................................
2
2
5
2
3
17
1
1
68
7
1
1
1
3
2
1
4
5
9
1
4
3
18
2
1
1
4
1 Rates referred to here as “ annual” include equivalent annual rates in cases of semiannual or more
frequent assessments. In the digest on pages 80-101 the rates are shown for the periods specified in
the bills. In some of these bills levies were also made on the earnings or surplus of Federal Reserve banks;
and in some the United States government made an initial appropriation for the insurance fund or
appropriated to it certain government receipts from banks.
2 Banks not members of Federal Reserve System assessed twice the rate on member banks.
3 This bill also provided for assessments, at the same rate, on circulating notes, and for special
assessments on banks in each note redemption district to cover 1/10 of losses in that district.
4 In two bills these provisions apply to Federal Reserve member banks, with rates applicable to
other banks to be established by the Federal Reserve Board.
6 In one of these bills, bonds deposited to secure circulating notes were to be pledged for security
of deposits also, with assessments levied on the basis of deposits and deposited bonds if necessary.
8 Two of these bills provided for initial stock subscription of 1/5 of 1 percent of deposits and for
coverage of individual depositors in nonparticipating banks at premium rates to be determined by the
administrative authority. Another bill provided for a “ reasonable” rate of assessment, with the Federal
government contributing to the fund if necessary.
7 In these bills State and United States funds otherwise secured were exempted from assessment.
8 In one of these bills the rate on banks not members of the Federal Reserve System was twice the
rate on member banks; in two of the bills initial assessment was twice the annual amount.
9 One of these bills required an initial deposit in trust of United States Government securities equal
to 2 percent of deposits.
76
FE D E R A L D E PO SIT IN SU R AN C E C O RPORATION
The frequency with which assessments were to be collected, and the
rates of assessment, show wide variation. The specific rates range from
1/50 of 1 percent to 1/2 of 1 percent per year, while in a number of cases
assessments were to be adjusted to meet the total cost. The most common
rate was 1/10 of 1 percent. Many of the bills provided for special initial
assessments, or for assessments as needed in addition to those collected
periodically.
In a number of bills assessments upon the banks were supplemented
by appropriations from the United States government, or, particularly
in the bills introduced in the more recent years, by levies upon the
earnings or surplus of the Federal Reserve banks. In a few bills the only
provision for meeting the cost of insurance or guaranty was an allocation
for this purpose of part or all of the earnings of the Federal Reserve
banks, and in several cases the cost was to be met solely or chiefly by
the United States government. In the cases where the insurance or
guaranty was in the form of purchase of surety bonds, the cost of such
bonds was to be borne by the banks.
In many of the bills a maximum was placed upon the accumulation
of funds by the insurance or guaranty system. In a few bills assessment
rates were to be adjusted by the administrative authority and required
to be sufficient to meet all losses to depositors or to maintain the fund
at a given size. In some bills, the fund was authorized to borrow if neces
sary; and in others, to issue certificates to unpaid depositors if the fund
was depleted.
Changes in bank regulation or supervision. A substantial propor
tion of the bills providing for deposit insurance or guaranty also provided
for significant changes in the regulation or supervision of banks. These
changes are summarized in Table 41.
In some of the bills insurance or guaranty of deposits was only a part
of comprehensive plans for currency and bank reform. In several cases
deposits of banks were limited to 10 times capital, or 10 times capital
and surplus; in others, minimum capital requirements were made more
stringent. A number of bills contained provisions for the issue of emer
gency currency or for a more elastic currency, a few authorized the
United States Treasury to make advances to banks under specified
conditions, and a few made changes in reserve requirements. More
frequent bank examinations were specified in several of the bills, and
in some of the bills Federal bank supervisory authorities were given
more authority regarding chartering of banks or the issue and enforce
ment of regulations regarding banking practices. Maximum interest
rates on deposits, and limitations or restrictions on the payment of
dividends, were embodied in several bills. In a few bills repeal of the
double liability of stockholders was proposed.
77
CON GRESSION AL PROPO SALS FO R D EPOSIT IN SU R AN C E
T a b le 41.
S ig n if ic a n t C h a n g e s i n B a n k R e g u l a t io n o r S u p e r v is io n
A c c o m p a n y in g P r o p o s a l s f o r F e d e r a l I n s u r a n c e o r
G u a r a n t y o f D e p o s it s
Character of proposed change
Currency issue and central banking
Circulating notes of national banks to be issued upon security of specified types of loans
and securities and to be obligations of the United States..............................................
Changes made in conditions of issue of bank notes, eliminating required deposit of United
States government bonds...................................................................................................
Treasury notes in amount equal to the insurance fund to be issued and used for govern
ment expenses.............................................................................................................
Issue of currency by any financial institution or any number of persons depositing United
States bonds and conforming to the A ct..........................................................................
United States Treasury authorized to make advances to persons or corporations in the
form of circulating notes, on approved security..............................................................
Issue of emergency currency if necessary to pay certificates of deposit issued to depositors
of closed banks....................................................................................................................
Comptroller of the Currency authorized to make loans to banks when deposits are
suddenly withdrawn or losses exceed accumulated surplus and to appoint manager
of borrowing bank.........................................................................................................
Increased rediscount facilities.............................................................................................
Federal Reserve banks to be owned by United States.....................................................
Reserve requirements
Reserves required of banks insuring their deposits one-half that specified for other banks..
Changes to be made in reserve requirements.................................................................... .
Capital requirements
Deposits of banks covered not to exceed 10 times capital................................................
Deposits of banks covered not to exceed 10 times capital and surplus.......................... .
Larger minimum capital...................................................................................................... .
Elimination of double liability of stockholders...................................................................
Capital of banks to consist of coin or bullion, United States bonds, State bonds if above
par, and real estate mortgaged to United States........................................................
Interest on deposits
Interest on demand deposits (except correspondent balances) prohibited and on savings
and time deposits limited to 2-3/4 percent per year or to maximum established by
Federal Reserve Board.......................................................................................................
More rigorous restrictions on payment of dividends; interest on deposits limited to 4 per
cent per year.......................................................................................................................
Interest on time deposits limited to 3-1/2 percent and on demand deposits to 1 percent
per year............................................................................................................................
Interest on time or savings deposits limited to 3 percent per year..................................
Interest on tim e or savings deposits lim ited t o 2 - 3 /4 percen t per y e a r .................................
Maximum interest on deposits, 2 percent per year............................................................
Maximum interest on deposits, 3 percent per year............................................................
Maximum interest on deposits, 4 percent for one year or longer, less on deposits for
shorter periods, none on demand deposits...................................................................
Maximum interest on deposits, 5 percent...........................................................................
Maximum interest on deposits, half of legal rate in respective States.............................
Interest on deposits prohibited except 2 percent on government deposits.......................
Bank examinations and reports
Banks to be examined monthly, never over twice in year by same examiner................
Banks to be examined every two months, never twice in year by same examiner.......
Banks to be examined four times a year by two different examiners.............................
All banks covered to be examined twice a year by examiners of the Corporation ad
ministering the fund...........................................................................................................
Comptroller of the Currency or Federal Reserve Board to examine all banks covered
at least twice a year...........................................................................................................
Banks to report their condition weekly to the Comptroller of the Currency......................
Equal right to examine bank given to surety companies furnishing bonds as by Comptroller
of the Currency and national bank examiners................................................................
Insured banks not members of Federal Reserve System to be examined by Federal Reserve
Board................................................................................................................................
Bank management and banking practices
Governors of the Federal Reserve banks and Comptroller of the Currency given power
to suspend bank officials for violations of laws or regulations or repeated warnings
against unsound practices..................................................................................................
Each director and officer of a failed bank to be imprisoned for one to ten years unless it
is proved failure is not due to violation of law................................................................
Restrictions on salary increases, new loans and investments, and dividends when bank
surplus below amount reported or government loan to bank outstanding...............
Limitation on loans................................................................................................................ . .
Federal Banking Commission created and authorized to make rules and regulations, not
inconsistent with Federal Reserve and National Banking Acts, deemed necessary
properly to regulate and control bank practices.............................................................
Restrictions on ana regulation of affiliates, loans to officers, and loans upon stock and
bond collateral....................................................................................................................
Num ber
of bills
78
F E D E R A L D EPOSIT IN SU RAN CE CORPORATION
T a b l e 4 1 . S i g n i f i c a n t C h a n g e s in B a n k R e g u l a t i o n o r S u p e r v is i o n
A c c o m p a n y in g P r o p o s a l s f o r F e d e r a l I n s u r a n c e o r
G u a r a n ty o f D e p o s its —
Continued
Character of proposed change
Number
of bills
Bank management and banking practices—Continued
Interest on loans to be 3 percent, of which 1 percent to be paid to the United States and
2 percent to the county......................................................................................................
Earnings in excess of dividends and specified additions to surplus distributed among
depositors.............................................................................................................................
Superintendent of loan department appointed by President of United States....................
Officer of each bank, nominated by directors and appointed by Secretary of Treasury,
to be responsible for control and management of the bank..........................................
Bank chartering, ownership, and supervision
Comptroller of the Currency authorized to refuse new national charters where banking
facilities are already sufficient...........................................................................................
Nonmembers Federal Reserve System may be required to withdraw from insurance if they
fail to furnish annually certificates by State authority of their financial condition..
Private banks permitted to operate under national banking law.........................................
National banks to be organized, and county comptrollers elected by vote of people in
each county having a population of 5,000 or more; post offices in smaller communities
to receive deposits for such banks....................................................................................
Formation of cooperative banks by not less than 200 persons, with minimum capital
of $25,000.........................................................................................................................
The present system of deposit insurance is the joint result of Con
gressional action in 1933, subsequent Federal legislation, and the ad
ministrative experience of the Federal Deposit Insurance Corporation.
However, its most essential features—a premium or assessment on the
basis of deposits, careful examination of insured banks, maintenance
of the capital funds of banks in proportion to their liabilities or total
assets, assurance of adequate emergency credit to banks in difficulties,
avoidance by banks of unduly risky loans and investments and other
unsafe or unsound banking practices, and prompt action to protect
depositors in banks which become involved in financial difficulties—
were contained in earlier legislative proposals and former systems of
guaranty of bank obligations used as circulating medium. The roots of
the present system of deposit insurance go back more than a century
prior to establishment of the Federal Deposit Insurance Corporation
in 1933.
80
F E D E R A L DE PO SIT IN SU R AN C E C O RPORATION
D ig e s t o f B ills f o r
number
In s u r a n c e o r G u a r a n ty o f B a n k D e p o s its In tr o d u c e d
I n t o C o n g r e s s , 1886-1933
Date» Congress and bill
number, and author
Character of protection,
banks participating, and
administrative authority
Liabilities covered
1
Jan. 11, 1886; 49th HR 3740
Price, W .T. (Wis., Rep.)
Insurance; National banks;
Comptroller of the Currency
Proved claims adjusted for mutual
indebtedness
2
Feb. 1, 1886; 49th HR 5023
Sawyer, J.E. (N .Y ., Rep.)
Insurance; National banks;
Treasurer of U.S. and
Comptroller of the Currency
Deposits
3
Feb. 15, 1886; 49th HR 5683
Hutton, J.E. (M o., Dem)
Insurance; National banks;
Comptroller of the Currency
Proved claims adjusted for mutual
indebtedness
4
Mar. 1, 1886; 49th HR 6240
Brumm, C.N. (Penn., Rep.)
Insurance; National banks;
Comptroller of the Currency
Proved claims adjusted for mutual
indebtedness
5
Jan. 4, 1888; 50th HR 1797
Brumm, C.N. (Penn., Rep.)
Same as 4
Same as 4
6
Dec. 10, 1891; 52nd S 581
Hiscock, F. (N .Y ., Dem.)
Insurance; National banks;
Secretary of the Treasury
Deposits not paid from assets
7
Mar. 23, 1892; 52nd HR 7494
Clover, B .H. (Kans.,
Farmers’ Alliance)
U.S. guaranty; National
banks organized under
the Act;
Comptroller of the Currency
Currency and deposits
8
Aug. 14, 1893; 53rd S 289
Hunton, E. (Va., Dem.)
U.S. guaranty; National
banks;
Secretary of the Treasury
Deposits thereafter made, except
of officers and stockholders
9
Sept. 9, 1893; 53rd HR 1951
Babcock, J.W. (Wis., Rep.)
Insurance; National banks;
Secretary of the Treasury
Depositors
10
Sept. 22, 1893; 53rd HR 3378
Bryan, Wm. J. (Neb., Dem.)
Insurance; National banks;
Comptroller of the Currency
Depositors and creditors except
officers, directors, and stockholders
11
Mar. 26, 1894; 53rd HR 6438
Mercer, D.H . (Neb., Rep.)
Insurance; National banks;
Secretary of the Treasury
Losses to depositors in banks
placed in receivership
12
Jan. 3, 1895; 53rd S 2492
George, J.Z. (Miss., Dem.)
U.S. guaranty; National
banks; Secretary of the
Treasury and Comptroller
of the Currency
Deposits and circulating notes
13
Jan. 5, 1897; 54th S 3478
Peffer, W.A. (Kans.,
Populist)
U.S. guaranty; National
banks;
Comptroller of the Currency
Losses to depositors for which
bank would be responsible in
law
81
DEPO SIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
Introduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Identi
fying
number
Existing duty on circulating notes (1 percent per year);
unused redemption fund for notes of banks closed
five years or more; maximum fund $20,000,000
1
Semi-annually 1/10 of 1 percent of average deposits;
maximum fund $20,000,000
2
Semi-annually 1/20 of 1 percent of average monthly
deposits, in lieu of all existing taxes; unused redemp
tion fund for notes of banks closed five years or
more; maximum fund $20,000,000
3
Semi-annually 1/20 of 1 percent of average deposits,
in lieu of existing taxes, unused redemption fund
of banks closed five years or more; maximum
fund $20,000,000
Same as 4
6
Annually 1/10 of 1 percent of deposits, until fund
sufficient in discretion of Secretary of the Treasury
to guarantee deposits and reimburse government;
initial U.S. appropriation $20,000,000 from tax on
circulating notes and unused redemption fund
Circulating notes, to be obligations of the
United States, to be issued upon deposit of
specified types of loans and securities
6
Reimbursement of government, with interest at 1
percent, by assessments of 2-1/2 percent per year
upon property owners in counties where losses
occur
National banks to be organized, upon vote
of the people, in each county having popu
lation of 5,000 or more; county comptroller
to be elected by the people; post offices in
smaller communities to receive deposits for
such banks; maximum interest on deposits
2 percent; interest on loans to be 3 percent,
of which 1 percent to be paid to the U.S.
and 2 percent to the county
7
8
Annually 1/4 of 1 percent of all deposits, payable
m o n th ly on d ep osits o f th a t m o n th
All money paid to U.S. Treasury by national banking
associations except that appropriated for expenses
of the Bureau of the Currency
Banks to be examined every two months, no
two examinations in any year by the same
examiner
9
Annually 1/4 of 1 percent of average deposits during
October-December; maximum fund $10,000,000
Treasury notes to be issued in amount equal
to special fund, and used for government
expenses, to provide against contraction of
the currency
10
At end of fiscal year, all moneys paid to U.S. Treasury
under existing laws regarding banking associations,
except amounts appropriated to pay expenses of
the Bureau of Currency and those incurred under
this Act
Maximum interest on deposits 5 percent;
banks to be examined four times each year
by two different examiners
11
U.S. bonds deposited to secure bank notes to serve
also to secure deposits; if insufficient, necessary
assessment on amount of deposited bonds and
deposits
Private banks as well as associations per
mitted to operate under the national bank
ing law
12
Necessary Treasury appropriation
Capital of banks to consist of coin or bullion,
U.S. bonds, State bonds if above par, and
real estate mortgaged to U.S.; superin
tendent of loan department appointed by
President of U.S.; banks to be examined
monthly, and by the same examiner not
over twice yearly; maximum interest 4
percent on deposits for one year or longer,
less on deposits for shorter periods, none
on demand deposits
13
82
F E D E R A L DE PO SIT IN SU R AN C E C ORPORATION
D ig e s t o f B i l l s f o r In s u r a n c e o r G u a r a n ty o f B a n k D e p o s its I n t r o d u c e d
In to C on gress,
1886-1933—Continued
Date, Congress and bill
number, and author
Character of protection,
banks participating, and
administrative authority
14
Mar. 15, 1897; 55th HR 50
Fowler, C.N. (N.J., Rep.)
Insurance; any bank or
ganized under the Act;
Ministers of Finance (three)
Depositors, all just claims
15
July 15, 1897; 55th HR 3820
Lewis, J.H. (Wash., Dem.)
U.S. guaranty; National
banks;
Secretary of the Treasury
Deposits, banks to issue to de
positors certificates payable on
demand at U.S. Treasury
16
July 15, 1897; 55th HR 3822
Jenkins, J. (Wis., Rep.)
U.S. guaranty; National
banks;
Comptroller of the Currency
General deposits
17
Jan. 5, 1898; 55th HR 5494
Jenkins, J. (Wis., Rep.)
Insurance; National banks in
satisfactory condition upon
examination; Secretary of
the Treasury
Claims satisfactorily proved
18
Feb. 1, 1898; 55th HR 7604
Fowler, C.N. (N.J., Rep.)
Same as 14, except insurance
optional with bank
Same as 14
19
Feb. 27, 1905; 58th HR 19155
Webber, A.R . (Ohio, Rep.)
U.S. guaranty; National
banks found solvent by
Comptroller of the Currency;
Comptroller of the Currency
All deposits, except those
officers and shareholders
20
Dec. 4, 1905; 59th HR 236
Bates, A.L. (Penn., Rep.)
Insurance; National banks;
Comptroller of the Currency
Deposits not covered by proceeds
of liquidation
21
Jan. 19, 1906; 59th HR 12592
Bates, A.L. (Penn., Rep.)
Same as 20
Same as 20
22
Feb. 14, 1906; 59th HR 14902
Bates, A.L. (Penn., Rep.)
Same as 20
Same as 20
23
Mar. 5, 1906; 59th HR 16225
Gronna, A.J. (N .D ., Rep.)
Insurance; National banks,
applicant State banks sol
vent and properly managed;
Comptroller of the Currency
Deposits not covered by assets,
with interest at 3 percent
24
Dec. 13, 1906; 59th HR 22336
Underwood, O.W. (Ala., Dem.)
Insurance; National banks;
Comptroller of the Currency
Deposits and liabilities to creditors
not paid from proceeds of
liquidation
25
Dec. 17, 1906; 59th HR 22673
Bates, A.L. (Penn., Rep.)
Same as 20
Deposits and obligations to credi
tors, excluding creditors for
borrowed money, not covered
by proceeds of liquidation; pay
ment not later than two years
after failure
26
Dec. 2, 1907; 60th HR 44
Candler, E.S. (Miss., Dem.)
Insurance; National banks;
Comptroller of the Currency
Depositors and creditors, except
officers, directors, and stock
holders
27
Dec. 2, 1907; 60th HR 159
Norris, G.W . (Neb., Rep.)
Insurance; National banks;
Secretary of the Treasury
Deposits not otherwise secured
28
Dec. 2, 1907; 60th HR 354
Sheppard, M. (Texas, Dem.)
Insurance; National banks;
Comptroller of the Currency
Balance of claims of depositors
and creditors, except for bor
rowed money, after partial
payments from liquidation, not
later than two years after
failure
29
Dec. 2, 1907; 60th HR 356
Russell, G.J. (Texas, Dem.)
Insurance; National banks;
Comptroller of the Currency
Depositors and creditors, except
officers, directors, and stock
holders
number
Liabilities covered
of
83
D EPO SIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B
il l s
for
I nsurance
In to
or
G uaranty
C on gress,
of
B ank D
e p o s it s
I ntroduced
1886-1933— Continued
Assessments and other sources of, funds
Other provisions
Annually 1 /2 of 1 percent (initial 1 percent) of average
balance of deposits of preceding fiscal year; maxi
mum fund 5 percent
Part of general banking and currency reform
bill providing for currency issue and deposit
insurance by any financial institution or
any number of persons depositing U.S.
bonds and conforming to Act
Banks to be examined monthly
16
17
Semi-annually 1/10 of 1 percent of average daily
deposits and 1-1/2 percent of average amount of
redemption fund for circulating notes
Annually 1/2 of 1 percent (initial 1 percent) of average
balance of deposits of preceding fiscal year; annual
assessment to be reduced to 1 /8 of 1 percent when
fund exceeds 3 percent
Iff 14
15
Semi-annually 1 /4 of 1 percent of all deposits
Necessary Treasury appropriation in form of loans
at 10 percent interest to bank having a run by
depositors, with all paper owned by bank as
security
Identifying
number
Part’ of general banking and currency reform
bill (same as 14); required reserves of banks
insuring their deposits one-half of that
specified for other banks
18
19
Annually maximum of 1/10 of 1 percent of all de
posits; maximum fund 1/10 of 1 percent; U.S.
appropriations to meet any deficiency
Annually $100; maximum fund $6,000,000; if fund
insufficient, not over two assessments per year of
1/100 of 1 percent of deposits
Maximum interest on deposits 3 percent
20
Annually $100; maximum fund $6,000,000
Same as 20
21
Annually from $100 to $250 depending upon amount
of capital; maximum fund $6,000,000
22
Annually 1 percent of capital and surplus
23
Annually 1/50 of 1 percent of average deposits of
every character; maximum fund $10,000,000
24
Same as 22
25
Annually 1/4 of 1 percent of average deposits; maxi
mum fund $10,000,000
26
Annually 1/5 of 1 percent of average deposits (new
banks 1/5 of 1 percent of capital stock); maximum
fund, 2 percent of average deposits of each bank
27
Annually 1/10 of 1 percent of average deposits; maxi
mum fund $36,000,000
Annually 1/4 of 1 percent of average deposits; maxi
mum fund $10,000,000
Deposits not to exceed 10 times capital
28
29
84
FE D E R A L DEPOSIT IN SU R AN C E C ORPORATION
D igest of B ills for I n su ra n c e or G u a r a n t y of B a n k D eposits I ntro d uced
I nto C o ng r ess , 1886-1933—Continued
Identi
fying
number
Date, Congress and bill
number, and author
Character of protection,
banks participating, and
administrative authority
Liabilities covered
30
Dec. 2, 1907; 60th HR 456
Gronna, A.J. (N .D ., Rep.)
Same as 23
Same as 23
31
Dec. 2, 1907; 60th HR 531
Underwood, O.W. (Ala., Dem.)
Same as 24
Same as 24
32
Dec. 2, 1907; 60th HR 3866
Bates, A.L. (Penn., Rep.)
Same as 25
Same as 25
33
Dec. 16, 1907; 60th HR 9153
Campbell, P.P. (Kans., Rep.)
U.S. guaranty; National
banks;
Secretary of the Treasury
Deposits
34
Dec. 16, 1907; 60th HR 9236
Reeder, W .A. (Kans., Rep.)
Insurance; National banks;
Secretary of the Treasury
Deposits
35
Dec. 19, 1907; 60th HR 10526
Chaney, J.C. (Ind., Rep.)
Insurance; National banks;
Secretary of the Treasury
Individual depositors
36
Dec. 19, 1907; 60th HR 10547
Underwood, O.W. (Ala., Dem.)
Insurance; National banks;
Comptroller of the Currency
Depositors and creditors
37
Dec. 21, 1907; 60th S 2954
Raynor, I. (M d., Dem.), for
Owen, R.L. (Okla., Dem.)
Insurance; National banks;
Comptroller of the Currency
Depositors
38
Jan. 6, 1908; 60th HR 11780
Hinshaw, E.H. (Neb., Rep.)
Insurance; National banks;
Comptroller of the Currency
Depositors and creditors
39
Jan. 6, 1908; 60th HR 11804
DeArmond, D.A. (M o., Dem.)
Insurance; National banks;
Secretary of the Treasury
Deposits
40
Jan. 7, 1908; 60th S 3028
Culberson, C.A. (Texas, Dem.)
Insurance; National banks
accepting the Act;
Comptroller of the Currency
Individual deposits non-interest
bearing and subject to check
41
Jan. 7, 1908; 60th S 3187
Brown, N. (Neb., Rep.)
Insurance; National banks;
Secretary of the Treasury
Deposits not otherwise secured
42
Jan. 8, 1908; 60th HR 12655
Fulton, E.L. (Okla., Dem.)
Insurance; National banks;
Secretary of the Treasury
Deposits not paid from proceeds
of liquidation
43
Jan. 8, 1908; 60th HR 12677
Fowler, C.N. (N.J., Rep.)
(Reported by Banking and
Currency Committee, Feb. 29,
1908)
Insurance; National banks;
Comptroller of the Currency
Deposits and circulating notes,
and expenses of note redemption
and bank examination; 1/10 of
the loss from each failure as
sessed upon banks in that note
redemption district
44
Jan. 8, 1908; 60th HR 12680
Davidson, J.H. (Wis., Rep.)
Insurance; National banks,
savings banks agreeing to
same regulations and exami
nations as national banks;
Comptroller of the Currency
Deposits with interest not over
2 percent, in full; with interest
2 to 3 percent, 95 percent; with
interest 3 to 4 percent, 90 per
cent; interest 4 to 5 percent,
80 percent; interest 5 to 6 per
cent, 70 percent; interest over
6 percent, none
45
Jan. 8, 1908; 60th HR 12682
McHenry, J.G. (Penn., Dem.)
U.S. guaranty; solvent Na
tional and State banks ac
cepting terms of Act;
Comptroller of the Currency
Deposits
85
DEPO SIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
I ntroduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Annually 1/50 of 1 percent of average deposits;
assessments to be suspended when Comptroller
deems fund sufficient
30
31
Same as 24
Annually $100 to $400 depending upon amount of
capital; maximum fund $6,000,000
Annually 1/10 of 1 percent of average deposits
Identi
fying
]number
32
Officers of each bank, nominated by directors
and appointed by Secretary of the Treasury
to be responsible for control and manage
ment of the bank and to report condition
weekly to the Comptroller of the Currency
33
Interest paid by banks on all U.S. government de
posits, rate not over 2 percent per year; maximum
fund $25,000,000
34
Annually 1/10 of 1 percent of average deposits of
individuals; maximum fund $10,000,000
35
Annually 1/10 of 1 percent of average deposits of
every character; maximum fund $10,000,000
Deposits not to exceed 10 times capital and
surplus; payment of interest on deposits
prohibited, except 2 percent per year on
government deposits
36
Sufficient to pay depositors in full, to be fixed by the
Comptroller of the Currency; interest received on
“ special circulation fund”
U.S. Treasury authorized to issue $100,000,000 in circulating notes, to be kept as
a “ special circulation fund” and advanced
to any person or corporation, at 6 to 8 per
cent interest, on approved security
37
Annually 1/20 of 1 percent of average deposits;
maximum fund $10,000,000
Deposits not to exceed 10 times capital and
surplus
38
Annually 1 /8 of 1 percent of total deposits
39
Necessary assessment, whenever a bank fails, pro
rated according to capital and surplus
40
Annually 1/10 of 1 percent of average deposits; maxi
mum fund 2 percent of deposits of each bank
41
Initial assessment 1/8 of 1 percent of average daily
individual deposits (new banks 1 percent of capital);
additional assessments to maintain fund at
$3,000,000
Deposits not to exceed 10 times capital and
surplus
42
Initial assessment 5 percent of all deposits and note
issues; semi-annual assessments to maintain this
amount; special assessments upon banks in note
redemption districts to cover 1/10 of losses in such
districts; interest paid by national banks on
government deposits and interest on circulating
notes, each at 2 percent
Changes to be made in reserve requirements,
and in conditions of issue of circulating
notes (deposit of government bonds not
required); guaranty fund in excess of
$25,000,000 to be used to retire United
States notes
43
For reserve fund, initial assessment 1 percent of
deposits, adjusted annually to keep fund at this
figure. For premium fund, annually 1/10 of 1
percent of average deposits (new banks, 1 percent
of capital); and 1 percent (existing tax) on cir
culating notes
Deposits not to exceed 10 times capital;
Comptroller of the _ Currency authorized
to refuse new national charters where
banking facilities already sufficient
44
Semi-annually 1/10 of 1 percent of capital stock,
additional as and when needed; interest on loans
to banks; maximum fund $10,000,000
Comptroller may make loan at 6 percent to
banks when losses exceed accumulated sur
plus or deposits are suddenly withdrawn,
and appoint manager of borrowing bank;
restrictions on salary increases, new loans
and investments, and dividends when sur
plus below amount reported or while govern
ment loan outstanding
45
FE D E R A L DE PO SIT IN SU R AN C E C O RPORATION
86
D ig e s t o f B i l l s f o r In s u r a n c e o r G u a r a n ty o f B a n k D e p o s its I n t r o d u c e d
I n t o C o n g r e s s , 1886-1933—Continued
Identi
fying
number
Date, Congress and bill
number, and author
Character of protection,
banks participating, and
administrative authority
Liabilities covered
46
Jan. 9, 1908; 60th S 3023
Amendment
Nelson, K. (Minn., Rep.)
Insurance; National banks;
Secretary of the Treasury
Depositors, except U.S.
government
47
Jan. 14, 1908; 60th HR 13646
Adair, J.A. (Ind., Dem.)
Insurance; National banks;
Comptroller of the Currency
Deposits and creditors except
officers, directors, and stock
holders
48
Jan. 15, 1908; 60th S 3988
Owen, R.L. (Okla., Dem.)
Insurance; National banks;
Comptroller of the Currency
Deposits, excluding current ac
counts bearing over 2 percent
and time deposits bearing over
4 percent interest
49
Jan. 27, 1908; 60th HR 15238
Bates, A.L. (Penn., Rep.)
Same as 25
Same as 25
50
Jan. 27, 1908; 60th S 4486
Gore, T .P. (Okla., Dem.)
Insurance; National banks;
Comptroller of the Currency
Deposits and creditors except
officers, directors, and stock
holders w
51
Jan. 30, 1908; 60th HR 15860
Crawford, W .T. (N .C., Dem.)
U.S. guaranty; National
banks and all banks under
State charter, including
private banks;
Comptroller of the Currency
Depositors
52
Feb. 7, 1908; 60th HR 16730
Williams, J.S. (Miss., Dem.)
Insurance; National and
State banks accepting
conditions of Act; Secretary
of the Treasury
Deposits not paid from proceeds
of liquidation
53
Feb. 12, 1908; 60th S 3023
Amendment
Owen, R.L. (Okla., Dem.)
Insurance; National banks;
Comptroller of the Currency
Deposits, excluding interestbearing
54
Feb. 17, 1908; 60th S 3023
Amendment
Brown, N. (Neb., Rep.)
Insurance; National banks;
Secretary of the Treasury
Deposits
55
Mar. 11, 1908; 60th S 3023
Amendment
McCumber, P. J. (N .D ., Rep.)
Insurance; National banks;
Comptroller of the Currency
Deposits not covered by proceeds
of liquidation
56
Mar. 13, 1908; 60th S 3023
Amendment
Nelson, K. (Minn., Rep.)
Same as 46
Same as 46
57
Mar. 16, 1908; 60th HR 19362
Bates, A.L. (Penn., Rep.)
Same as 25
Same as 25
58
Mar. 25, 1908; 60th S 3023
Amendment
Owen, R.L. (Okla., Dem.)
Same as 53
Same as 53
59
Mar. 18, 1909; 61st HR 2140
Sheppard, M . (Texas, Dem.)
Same as 28
Same as 28
60
Mar. 24, 1909; 61st HR 4322
DeArmond, D.A. (M o., Dem.)
Same as 39
Same as 39
61
May 3, 1909; 61st HR 9148
Underwood, O.W. (Ala., Dem.)
Same as 36
Same as 36
62
July 9, 1909; 61st HR 11397
Candler, E.S. (Miss., Dem.)
Same as 26
Same as 26
63
Dec. 10, 1909; 61st HR 13887
Russell, G.J. (Texas, Dem.)
Same as 29
Same as 29
64
Feb. 28, 1910; 61st HR 22000
Rucker, A.W . (Colo., Dem.)
Insurance; National banks,
State banks under condi
tions prescribed by Comp
troller of the Currency;
Comptrollerfof the Currency
Deposits, except time deposits
paying over 4 percent and de
mand deposits paying over 2
percent interest
87
D E PO SIT IN SU R AN C E PROPO SALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G uaranty
of
B ank D
e p o s it s
I ntroduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Identifying
number
One-third of taxes paid on circulating notes; maxi
mum fund $10,000,000
46
Annually 1/10 of 1 percent of average deposits;
maximum fund $5,000,000
47
Same as 37
Same as 37
48
Same as 32
Maximum interest on deposits half of legal
rate in State in which located
49
Annually 1/4 of 1 percent of average deposits;
maximum fund $10,000,000
50
Annually 1 percent on average deposits and capital
stock, for four years
Circulating notes to be issued only on basis of
old and silver, or, if this is inadequate,
tate and local government securities; each
director and officer of a failed bank to be
imprisoned for one to ten years unless it is
proved that failure is not due to violation
of law
51
Semi-annually 1/16 of 1 percent of average deposits;
maximum fund $15,000,000
Change in reserve requirements; limitations
on loans
52
Tax on circulation of national banks; interest on
“ circulation fund” ; if necessary, assessment on
average deposits not over 1/10 of 1 percent per
year
Same as 37, except Treasury note issue to be
$500,000,000
53
Interest paid by national banks on U.S. deposits
at 2 percent per year
54
Annually 1/50 of 1 percent of average deposits; maxi
mum fund, judgment of Comptroller of the
Currency
55
Same as 46
56
Same as 32
Same as 49
57
Same as 53
Same as 53
58
Same as 28
Same as 28
59
Same as 39
60
Same as 36
61
Same as 26
62
Same as 29
63
Existing tax (1 percent per year) on circulating notes
of national banks; assessments on State banks
prescribed by Comptroller of the Currency
64
88
FE D E RA L DEPO SIT IN SU R AN C E C O RPORATION
D ig e st of B ills for I n su r a n c e or G u a r a n t y of B a n k D e posits I n troduced
I n to C o n g ress ,
*fvinp~
number
Date, Congress and bill
™mber, and author
1886-1933— Continued
Character of protection,
banks participating, and
administrative authority
Liabilities covered
65
June 16, 1910; 61st S 8723
Jones, W .L. (Wash., Rep.)
U.S. guaranty; National
banks;
Secretary of the Treasury
Depositors; in form of U.S.
certificates of deposit payable
upon endorsement
66
July 26, 1911; 62nd HR 12836
Candler, E.S. (Miss., Dem.)
Same as 26
Same as 26
67
Dec. 12, 1911; 62nd HR 15454
Sheppard, M . (Texas, Dem.)
Same as 28
Same as 28
68
Nov. 10, 1913; 63rd S Amend
ment to HR 7837
Williams, J.S. (Miss., Dem.)
Insurance; National banks;
Comptroller of the Currency
Liabilities, excluding circulation
U.S. deposits, reduced to 90
percent if necessary to draw on
reserve fund
69
Nov. 25, 1913; 63rd S Amend
ment to HR 7837
Hitchcock, G.N. (Neb., Dem.)
Insurance; members Federal
Reserve System;
Federal Reserve Board
Deposits
70
Dec. 1, 1913; 63rd S Amend
ment to HR 7837
Owen, R.L. (Okla., Dem.)
Insurance; National banks;
Secretary of the Treasury
Deposits
71
Dec. 18, 1913; 63rd S Amend
ment to HR 7837
Owen, R.L. (Okla., Dem.)
(Passed byJSenate, Dec. 19,
1913)
Insurance; members Federal
Reserve System;
Secretary, of the Treasury
Deposits
72
Dec. 23, 1913; 63rd S 3867
Williams, J.S. (Miss., Dem.)
Same as 68
Same as 68
73
Jan. 16, 1914; 63rd HR 11744
Kinkaid, M .P. (Neb., Rep.)
Insurance; National banks;
Secretary of the^Treasury
Deposits
74
Mar. 10, 1914; 63rd S 4844
Owen, R.L. (Okla., Dem.)
Insurance; members Federal
Reserve System;
Federal Reserve Board
Liabilities, except circulation and
U.S. deposits
75
Sept. 12, 1914; 63rd HR 18763
Barton, S.R. (Neb., Rep.)
Insurance; members Federal
Reserve System;
Secretary of the Treasury
Deposits
76
Dec. 6, 1915; 64th HR 771
Kinkaid, M .P. (Neb., Rep.)
Same as 73
Same as 73
77
Dec. 7, 1915; 64th S 456
Williams, J.S. (Miss., Dem.)
Same as 68
Same as 68
78
Dec. 10, 1915; 64th S 1408
Owen, R.L. (Okla., Dem.)
Same as 74
Same as 74
79
April 4, 1917; 65th S 9
Owen, R.L. (Okla., Dem.)
Same as 74
Same as 74
80
April 6, 1917; 65th S 742
Williams, J.S. (Miss., Dem.)
Same as 68
Same as 68
81
Feb. 18, 1918; 65th HR 9968
Shouse, J. (Kans., Dem.)
U.S. guaranty; National
banks;
Comptroller of the Currency
Deposits, maximum
any one depositor
82
Feb. 18, 1918; 65th S 3909
Owen, R.L. (Okla., Dem.)
Same as 81
Same as 81
83
April 23, 1918; 65th S 4426
Shaforth, J.F. (Colo., Rep.)
U.S. guaranty; National
banks;
Comptroller of the Currency
Deposits, maximum $5,000 to any
one depositor, except those
bearing over 4 percent interest
$5,000
to
D EPOSIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
89
Introduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Necessary assessment, upon liquidation of a failed
bank, on basis of average loans and discounts for
preceding year
Revision of entire law relating to national
banks; issue of emergency currency by
government if necessary; public works pro
gram in case of a great national business
depression
Same as 26
Identifying
number
65
66
Same as 28
Same as 28
67
Annually 1/10 of 1 percent of total deposits for
premium fund, plus 1/4 of 1 percent for reserve
fund to be adjusted by the Comptroller of the
Currency to deposits; initial assessment for reserve
fund 1 /2 of 1 percent (bank with deposits less than
capital, 1 percent of capital for reserve fund and
1/10 of 1 percent of capital for premium fund)
Deposits of a bank limited to 10 times its
capital
68
37-1/2 percent of net earnings of Federal Reserve
banks, after 5 percent dividend to stockholders;
maximum fund set by Federal Reserve Board
69
1/4 of net earnings of Federal Reserve banks, after
6 percent dividend to stockholders
70
Same as 70
71
Same as 68
Same as 68
72
Interest received on U.S. Government deposits, reducible after 3 years to one-half of such interest if
fund is deemed sufficient by Secretary of the
Treasury
73
Proceeds of tax on national bank circulation (1 percent) to maximum of 1 percent of deposits in
member banks
74
3/8 of net earnings of Federal Reserve banks after
6 percent dividend to stockholders
75
Same as 73
Same as 68
76
Same as 68
77
Same as 74
78
Same as 74
79
Same as 68
Same as 68
80
Annually 1/10 of 1 percent of aggregate guaranteed
deposits; necessary Treasury appropriation
Same as 81
Annually 1/10 of 1 percent of aggregate guaranteed
deposits; necessary Treasury appropriation
81
82
83
90
FE D E R A L D E PO SIT IN SU R AN C E C O RPORATION
D ig est of B ills for I n su r a n c e or G u a r a n t y of B a n k D eposits I ntroduced
I nto C o n g r ess ,
^vintr*"
number
Date, Congress and bill
number, and author
1886-1933—Continued
Character of protection,
banks participating, and
administrative authority
Liabilities covered
84
May 26, 1919; 66th S 757
Williams, J.S. (Miss., Dem.)
Same as 68
Same as 68
85
May 26, 1919; 66th S 800
Owen, R.L. (Okla., Dem.)
Same as 74
Same as 74
86
Dec. 13, 1920; 66th HR 15012
McClintic, J.V. (Okla., Dem.)
Insurance; National banks
members of F.R. System;
Comptroller of the Currency
Non-interest bearing deposits of
individuals and institutions
87
April 11, 1921; 67th HR 2174
McClintic, J.V. (Okla., Dem.)
Insurance; National banks
members of F.R. System in
Reserve districts establish
ing funds upon vote of ma
jority of said banks;
Comptroller of the Currency
Non-interest bearing deposits of
individuals and institutions
88
Sept. 16, 1922; 67th HR 12659
Smith, A .T . (Idaho, Rep.)
Same as 87
Same as 87
89
Feb. 3, 1923; 67th S 4475
Brookhart, S.W. (Iowa, Rep.)
Insurance; cooperative na
tional banks; Cooperative
reserve bank (after estab
lishment of 1,000 banks);
Treasurer of U.S. (temporarily)
Total deposits
90
Dec. 5, 1923; 68th HR 84
McClintic, J.V. (Okla., Dem.)
Same as 87
Same as 87
91
Jan. 1, 1924; 68th S 2063
Brookhart, S.W. (Iowa, Rep.)
Same as 89
Same as 89
92
Mar. 1, 1924; 68th S Res. 182
Jones, A.A. (N .M ., Rep.)
Insurance; members Federal
Reserve System;
Not specified
Just claims of depositors
93
Mar. 10, 1924; 68th HR 7794
Thomas, E. (Okla., Dem.)
Insurance; members Federal
Reserve System;
Federal Reserve Board
Deposits
94
Apr. 30, 1924; 68th HR 8977
Doyle, T.A. (111., Dem.)
Guaranty of surety company;
National banks;
Treasurer of U.S.
Deposits
95
Feb. 9, 1925; 68th HR 12221
Steagall, H.S. (Ala., Dem.)
Insurance; members
Federal Reserve System;
Secretary of the Treasury
Balance unpaid to depositors after
bank is liquidated
96
Dec. 14, 1925; 69th HR 5406
Hastings, W .W . (Okla., Dem.)
Guaranty of surety company;
National banks and State
banks members F.R. System;
Treasurer of U.S.
25 percent of deposits
97
Mar. 6, 1926; 69th HR 10085
Thomas, E. (Okla., Dem.)
Insurance; National banks
and State banks members
Federal Reserve System;
Comptroller of the Currency
Any claims for losses occasioned
by a bank failure
98
Mar. 23, 1926; 69th HR 10602
Steagall, H.S. (Ala., Dem.)
Same as 95
Same as 95
91
DEPO SIT IN SU R AN C E PROPO SALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
I ntroduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Same as 68
Identifying
number
Same as 68
84
Same as 74
85
Annually 1/2 of 1 percent of average deposits ex
cluding State and U.S. funds otherwise secured,
plus an additional 1 percent per year if necessary;
new banks 2 percent of capital to be adjusted to
deposits later; 10 percent of net earnings of
F .R . banks after dividends
86
Annually 1 /20 of 1 percent of average daily and time
deposits, excluding State and U.S. funds otherwise
secured in districts establishing funds, subject to
increase to 1 percent if necessary and to reduction
if fund is deemed sufficient; new banks 1/2 of 1
percent of capital to be adjusted to deposits later;
10 percent of net earnings of Federal Reserve banks
after dividends; initial levy upon surplus of all
F.R . banks sufficient to provide $1,000,000 for
each fund established
87
Same as 87
88
Annually 1/10 of 1 percent of total deposits; maxi
mum fund, 3 percent of total deposits
Formation of cooperative national banks
by not less than 200 persons; minimum
capital $15,000; dividends on capital
limited; earnings in excess of dividends and
specified additions to surplus to be dis
tributed amongfdepositors and borrowers
89
90
Same as 87
Same as 89
Same as 89
91
Surplus and current net earnings of the Federal
Reserve banking system
Committee on Banking and Currency instructed>to prepare a bill
92
Anually net earnings of Federal Reserve banks equal
to 3/10,000 of 1 percent of individual unsecured
deposits bearing not over 3 percent interest and
not exceeding $5,000 for each depositor; maximum
fund 1/2 of 1 percent of individual deposits with
same limitations
Banks required to purchase surety bonds equal to
aggregate deposits (new banks, equal to capital)
from companies found financially responsible by
Treasurer of the U.S.
93
Each surety company to have same right to
examine banks covered as Comptroller of .
the Currency and national bank examiners
Net earnings of Federal Reserve banks paid to U.S.
Banks required to purchase surety bonds equal to
25 percent of deposits (new banks, capital); com
panies to be approved as to financial responsibility
by the Treasurer of U.S.
U.S. Treasury appropriation $10,000,000
retired when bank deposit insurance fund
$25,000,000; reasonable premiums by
banks to be determined by Comptroller
Currency
Same as 95
to be
reaches
insured
of the
94
95
Company furnishing bond to have right to
examine bank as Comptroller of the Cur
rency, national bank examiners, and State
bank examiners
96
97
98
F E D E R A L D EPOSIT IN SU RAN CE CORPO R ATIO N
92
D ig e st of B ills for I n su r a n c e or G u a r a n t y of B a n k D eposits I ntroduced
I n to C o n g r ess ,
1886-1933— Continued
Date, Congress and bill
number, and author
Character of protection,
banks participating, and
administrative authority
99
Dec. 6, 1926; 69th HR 13466
Brand, C. H. (Ga., Dem.)
Insurance, in effect U.S.
guaranty; members F.R.
System except banks under
State deposit insurance
laws; Federal Reserve Board
Deposits not paid from
of liquidation; fund
used before assets
hausted, if they are
insufficient
100
Dec. 6, 1926; 69th HR 13501
Howard, E. (Neb., Dem.)
Insurance; National banks;
Comptroller of the Currency
Claims of depositors
101
Dec. 11, 1926; 69th HR 14921
Brand, C.H. (Ga., Dem.)
Same as 99
Deposits; immediate payment of
part estimated not recoverable
from assets, with adjustment on
final settlement
102
Dec. 5, 1927; 70th HR 5572
Hastings, W .W . (Okla., Dem.)
Guaranty of surety company;
National banks and State
banks members F.R. System;
Treasurer of United States
25 percent of deposits, excluding
deposits otherwise secured ana
interest-bearing time deposits
103
Dec. 5, 1927; 70th HR 5576
Howard, E. (Neb., Dem.)
Same as 100
Same as 100
104
Dec. 13, 1927; 70th HR 7187
Brand, C.H. (Ga., Dem.)
Same as 99
Same as 101
105
Feb. 16, 1928; 70th HR 11066
Hastings, W .W . (Okla., Dem.)
Same as 102
Same as 102
106
Feb. 20, 1928; 70th HR 11199
Hastings, W .W . (Okla., Dem.)
Guaranty of surety company;
National banks and State
banks members F.R . System;
Secretary of the Treasury
25 percent of deposits, excluding
deposits otherwise secured and
interest-bearing time deposits
107
May 26, 1928; 70th HR 14058
Steagall, H.Sk(Ala., Dem.)
Same as 95
Same as 95
108
Apr. 15, 1929; 71st HR 227
Howard, E. (Neb., Dem.)
Same as 100
Same as 100
109
Dec. 12, 1929; 71st HR 7381
Brand, C.H. (Ga., Dem.)
Same as 99
Same as 101
110
Jan. 6, 1930; 71st S 2848
Brookhart, S.W. (Iowa, Rep.)
Insurance; Federal
cooperative banks;
Federal Farm Board
Total deposits
111
Mar. 26, 1930; 71st HR 11147
Steagall, H.S. (Ala., Dem.)
Same as 95
Same as 95
112
June 12, 1930; 71st HR 12924
Hastings, W .W . (Okla., Dem.)
Same as 106
Same as 106
113
Jan. 10, 1931; 71st HR 16038
Hare, B.B. (S.C., Dem.)
Insurance; members F.R.
System;
Federal Reserve Board
50 percent of deposits
Identi
fying
number
Liabilities covered
proceeds
may be
are ex
believed
93
D E PO SIT IN SU R AN C E PROPO SALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
I ntroduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Identifying
number
Initial U.S. government appropriation of $50,000,000,
and subsequent appropriations necessary to main
tain fund at $25,000,000; after 6 percent dividend
has been paid to stockholders, 90 percent of net
earnings of Federal Reserve banks after surplus
equals capital until fund equals $75,000,000
99
Semi-annually 1/20 of 1 percent (1/4 of 1 percent for
two years) of average daily deposits, with addi
tional assessments not over 1 percent per year if
fund is depleted below 1 percent; new banks 4 per
cent of capital to be adjusted to deposits later
100
Same as 99
101
Banks required to purchase surety bonds equal to
guaranteed deposits (new banks, capital) from
companies approved as to financial responsibility
by the Treasurer of U.S.; or in lieu of above re
quirements bank, with approval of Comptroller
of Currency, may deposit with Federal Reserve
bank of its district Federal, State, county or
municipal bonds to amount of bond required by the
Act
Same as 100
103
Same as 99
104
Banks required to purchase surety bonds equal to
guaranteed deposits (new banks, capital) from
companies approved as to financial responsibility
by Treasurer of the United States
105
Banks required to purchase surety bonds equal to
guaranteed deposits (new banks, capital) from
companies approved as to financial responsibility
by Secretary of the Treasury
106
Same as 95
107
Same as 100
108
Same as 99
109
Annually 1/10 of 1 percent of total deposits; maximum
fund, 3 percent of total deposits
Formation of Federal cooperative banks by
not less than 200 persons (50 persons if
organized as stock corporations); minimum
capital $25,000; dividends on capital
limited; earnings in excess of dividends and
specified additions to surplus to be dis
tributed among depositors and borrowers
110
Same as 95
111
Same as 106
112
Net earnings derived by U.S. from Federal Reserve
banks to extent deemed necessary; and additional
appropriations if necessary not exceeding amount
previously received from net earnings of F .R . banks
113
94
F E D E R A L D E PO SIT IN SU R AN C E CORPO R ATIO N
D ig e s t o f B i l l s f o r I n s u r a n c e o r G u a r a n ty o f B a n k D e p o s its I n t r o d u c e d
In to C on gress,
Identi
fying
number
Date, Congress and bill
number, and author
1886-1933—Continued
Character of protection,
banks participating, and
administrative authority
Liabilities covered
114
Feb. 28, 1931; 71st HR 17324
Ramspeckf R. (Ga., Dem.)
Insurance (fund in each F.R.
district); members F.R.
System in each district in
which guaranty fund has
reached maximum prescribed
by F.R. Board;
Federal Reserve Board
Deposits
115
Dec. 8, 1931; 72nd HR 313
Howard, E. (Neb., Dem.)
Same as 100
Same as 100
116
Dec. 8, 1931; 72nd HR 4512
Beam, H.P. (111., Dem.)
Guaranty of surety company;
National banks; Treasurer
of the United States
Total deposits
117
Dec. 8, 1931; 72nd HR 4572
Hastings, W .W . (Okla., Dem.)
Same as 106
Same as 106
118
Dec. 9, 1931; 72nd HR 5125
Hare, B.B. (S.C., Dem.)
Same as 113
Same as 113
119
Dec. 9,1931; 72nd S 126
Brookhart, S.W. (Iowa, Rep.)
Same as 110
Same as 110
120
Dec. 17, 1931; 72nd HR 6181
Lamneck, A.P. (Ohio, Dem.)
Insurance; members F.R.
System; F.R . banks under
supervision F.R. Board
Deposits; immediate payment of
part estimated not recoverable
from assets, with adjustment
upon final settlement
121
Jan. 4, 1932; 72nd HR 6705
LaGuardia, F.H. (N .Y ., Rep.)
Insurance (fund in each F.R .
district); all members F.R.
System, members of State
funds having privilege of
withdrawal;
Federal Reserve banks under
supervision of F.R. Board
Deposits, fund to pay or advance
to liquidating officer estimated
amount by which assets are
insufficient
122
Jan. 26, 1932; 72nd S 3324
Lewis, J.H. (111., Dem.)
U.S. guaranty; National
banks and State banks
members F.R . System;
Bureau of Insurance or
ganized by Treasury
Department
Deposits
123
Feb. 8, 1932; 72nd HR 8989
Shallenberger, A.C.
(Neb., Dem.)
Insurance (fund in each F.R .
district); members F.R.
System; Federal Reserve
banks under supervision
F .R . Board
Deposits, fund to pay or advance
to liquidating officer estimated
amount by which assets are
insufficient
124
Feb. 20, 1932; 72nd HR 9594
Jenkins, T.A . (Ohio, Rep.)
Same as 123
Same as 123
125
Feb. 26, 1932; 72nd S 3826
Fletcher, D.U . (Fla., Dem.)
U.S. guaranty; ail members
F .R . System certified as to
apparent solvency by Comp
troller of the Currency;
Treasurer of the United States
Unsecured deposits
126
Mar. 2, 1932; 72nd HR 10040
Disney, W .E. (Okla., Dem.)
Insurance, in part under
written by U.S. government;
members F.R. System;
FederaliReserveiBoard
Deposits
95
D EPOSIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
G uaranty
C on gress,
of
B ank D
e p o s it s
I ntroduced
1880-1933— Continued
Assessments and other sources of funds
Other provisions
90 percent of earnings of F.R. banks after surplus
equals subscribed capital; maximum fund pre
scribed by Federal Reserve Board
114
Same as 100
Banks required to purchase surety bonds equal to
total deposits (new banks, capital)
115
Company furnishing bond to have right to
examine bank to same extent as Comp
troller of the Currency and national bank
examiners
Same as 106
116
117
Same as 113
Same as 110
Identi
fying
number
118
Same as 110
119
Quarterly 75 cents (initial assessment $3) for each
$1,000 of average daily deposits; additional assess
ments when necessary not over $5 per $1,000 of
deposits
120
Semi-annually 1/20 of 1 percent (1/4 of 1 percent
for two years) of average deposits; new banks
4 percent of capital to be adjusted later
121
Premium to be established by Bureau of Insurance,
and such further levies on banks or U.S. Treasury
as may be necessary
122
Semi-annually 1/20 of 1 percent of average demand
deposits and 1/8 of 1 percent of average savings or
interest bearing deposits (for two years, 1/4 of
1 percent of all deposits); new banks 4 percent of
capital to be adjusted later; 1/2 of earnings of
Federal Reserve banks after dividends
Maximum rate of interest on savings or
other time deposits 2-3/4 percent per year
Semi-annually 1/20 of 1 percent (1/4 of 1 percent for
two years) of average deposits; new banks 4 percent
of capital to be adjusted later; additional assess
ment not over 1 percent per year if fund is_depleted
below 1 percent of deposits
123
124
Initial assessment 5 percent of capital stock, to be
deposited and maintained with the U.S. Treasury;
Treasury to advance and credit guaranty fund
with any additional sumsjiecessary
Comptroller of the Currency to examine all
members of F.R. System at least twice a
year
125
Quarterly 50 cents per $1,000 of deposits; initial
deposit in trust of U.S. securities equal to 2 percent
of deposits; all future earnings of F.R . banks; U.S.
appropriation of amount received as franchise tax
from Federal Reserve banks, and guarantee against
loss of principal up to $100,000,000
Minimum capital requirements raised; in
creased rediscounting facilities; Governor of
Reserve bank and Comptroller of the Cur
rency to have power to suspend any official
of a member bank for violation of laws,
regulations or repeated warnings against
unsound practices; failed banks liquidated
by receiver nominated by Federal^Reserve
bank
126
96
FE D E R A L DEPO SIT IN SU R AN C E C ORPORATION
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
Bank D
e p o s it s
I ntroduced
1886-1933— Continued
Date, Congress and bill
number, and author
Character of protection,
banks participating, and
administrative authority
127
Mar. 5, 1932; 72nd HR 10201
Cable, J.L. (Ohio, Rep.)
Insur an ce; 'members’ F.R.
System, other applicant
banks and building and loan
associations found solvent
with privilege of withdrawal
on 12 months' notice, and
depositors of banks not
participating;
Federal Guaranty and In
surance Corporation
507percent of deposits, payment
to receiver of closed banks; ad
ditional loans to receivers, in
such amounts as may be safely
loaned after appraisal of assets
128
Mar. 7, 1932; 72nd S 3971
Fess, S.D. (Ohio, Rep.)
Same as 127
Same as 127
129
Mar. 7, 1932; 72nd HR 10241
Steagall, H.B. (Ala., Dem.)
Insurance; members F.R.
System; Federal Bank
Liquidating Board
Deposits; accounts up to $1,000
to be paid not less than 50 per
cent, those over $1,000 not less
than 25 percent or $500 which
ever is greater, within 60 days;
balance within 1-1/2 years
thereafter
130
Mar. 7, 1932; 72nd HR 10242
McClintic, J.V. (Okla., Dem.)
Insurance; National banks
members F.R. System;
Comptroller of the Currency
Non-interest bearing deposits of
individuals and institutions
131
Mar. 21, 1932; 72nd HR 10706
Taylor, J.W . (Tenn., Rep.)
U.S. guaranty; members F .R .
System, with all banks of
deposit required to become
members; Federal Banking
Commission
Deposits
132
Apr. 13, 1932; 72nd HR 11340
Strong, J.G. (Kans., Rep.)
Guaranty by surety company;
National banks;
Comptroller of the Currency
Deposits not specially secured
1/4 within 60 days, 1/4 within
120 days, 1/4 within 210 days,
and final 1/4 within 1 year
133
Apr. 14, 1932;T72nd HR 11362
Steagall, H.B. (Ala., Dem.)
(Passed House of Representatives May 27, 1932, amended
to make banks not members
F.R . System eligible on cer
tification of sound condition
by State examing authority,
and assessment rate for
banks not members F.R.
System same as for members)
Insurance; members F.R.
System, other banks with
capital and surplus not less
than $25,000 found by
Board’s examination to be in
sound financial condition;
Federal Bank Liquidating
Board
Deposits; accounts up to $1,000
to be paid not less than 50 per
cent, those over $1,000 not less
than 25 percent or $500 which
ever is greater, within 90 days;
balance within 1-1/2 years
thereafter
May 21, 1932; 72nd S 4725
Fletcher, D.U. (Fla., Dem.)
Insurance; National banks
and State banks members
F .R System, other appli
cant banks with total capi
tal account of $25,000 or
more which maintain satis
factory condition and
management; Guarantee
Board
Deposits
number
/
134
Liabilities covered
DEPO SIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B il l s
for
I n surance
or
I n to C o n g ress,
G uaranty
of
Bank D
97
e p o s it s
I ntroduced
1886-1933— Continued
Identifying
number
Assessments and other sources of funds
Other provisions
Annual assessment on basis of daily deposits at rate
determined by Corporation; stock subscriptions by
participating banks and by Federal Reserve banks
1/5 of 1 percent of average deposits during latter
half of 1931; premium by guaranteed depositors in
non-participating banks at rate determined by
Corporation
All stockholder banks to be examined twice
a year by examiners of the Corporation
127
Same as 127
Same as 127
128
Annual assessments not over $100,000,000 distributed
in proportion to deposits; initial assessment not to
exceed $130,000,000 in proportion to deposits other
than time and $70,000,000 in proportion to time
deposits; initial levy on F .R . banks $150,000,000
in proportion to surplus; U.S. appropriation of
amount received as franchise tax from F.R . banks;
45 percent of net earnings of F .R . banks after
dividends; if fund exceeds adequate amount excess
may be refunded
Minimum capital requirements increased;
interest on deposits limited to 4 percent;
further restrictions on payment of dividends
129
Annually 1/2 of 1 percent of average deposits, ex
cluding State and U.S. funds otherwise secured,
plus an additional 1/2 of 1 percent per year if
necessary; new banks 1 percent of capital to be
adjusted later; all net earnings of F.R . banks
after dividends
Annually 1/4 of 1 percent from all depositors and
borrowers, except U.S. and political subdivisions;
if necessary on banks annually 1/4 of 1 percent of
net deposits; net earnings of F.R. banks above
surplus requirements; U.S. appropriation if fore
going funds are insufficient
130
Interest on demand deposits except corres
pondent balances, prohibited and interest
on savings and time deposits limited to
2-3/4 percent per year; payment of divi
dends by banks and F .R . bank restricted;
Federal Banking Commission authorized to
make rules and regulations, not incon
sistent with Federal Reserve and national
banking acts, deemed necessary properly
to regulate and control banking practices;
double liability of stockholders repealed;
Federal Reserve banks to be owned by the
United States
Banks required to purchase surety bonds equal to
total deposits (new banks, equal to capital); bonds
to be filed with Comptroller of the Currency;
portion of cost, not to exceed 1/10 of 1 percent of
deposits covered, may be charged by each bank
to its depositors
131
132
Annual assessment on member banks not over
$100,000,000 distributed in proportion to deposits;
assessment on banks not members of the F.R .
System twice that on member banks; initial levy on
F.R . banks $150,000,000 in proportion to surplus;
45 percent of net earnings of F .R . banks after
dividends; U.S. appropriation of amount received
as franchise tax from F.R . banks; if fund exceeds
$500,000,000 excess may be refunded
Banks members F.R. System not to pay over
4 percent interest on deposits, and dividends
restricted; banks not members of the F.R.
System to be examined by Board; failed
national banks to be liquidated by Board
133
Quarterly assessments upon each depositor at 5 cents
for each $100, or less, of average deposits; rate
subject to reduction by board if fund reaches
$300,000,000; U.S. appropriation of franchise tax
previously received and to be received in the
future, from F .R . banks; subject to call of guar
antee board, $100,000,000 from surplus of F.R .
banks
Except for savings banks, interest on time
deposits limited to 3-1/2 percent, and on
demand deposits to 1 percent per year
134
98
F E D E R A L DEPO SIT IN SU R AN C E CORPORATION
D ig e s t o f B i l l s f o r In s u r a n c e o r G u a r a n ty o f B a n k D e p o s its I n t r o d u c e d
In to C on gress,
Identi
fying
number
Date, Congress and bill
number, and author
1886-1933—Continued
Character of protection,
banks participating, and
administrative authority
Liabilities covered
135
Dec. 23, 1932; 72nd S 5291
Vandenberg, A.H. (Mich.,
Rep.)
Insurance; members F.R.
System, other applicant
State banks approved by
directors; Board of Directors
composed of F.R. Board
members
75 percent of time deposits
136
Mar. 9, 1933; 73rd HR 137
Jenkins, T.A. (Ohio, Rep.)
Same as 124
Same as 124
137
Mar. 9, 1933; 73rd HR 1562
Taylor, J.W. (Tenn., Rep.)
Same as 131
Same as 131
138
Mar. 10, 1933; 73rd S 21
Vandenberg, A.H. (Mich.,
Rep.)
Same as 135
Same as 135
139
Mar. 10, 1933; 73rd S 75
McAdoo, W .G. (Calif., Dem.)
Insurance; members F.R .
System, other banks com
plying with requirements of
Board;
Federal Reserve Board
Liabilities except circulation, LT.S.
deposits, and other secured
public deposits
140
Mar. 11, 1933; 73rd S 301
Fletcher, D.U. (Fla., Dem.)
Same as 134
Same as 134
141
Mar. 14, 1933; 73rd HR 3359
Hastings, W .W . (Okla., Dem.)
Same as 106
Same as 106
142
Mar. 14, 1933; 73rd HR 3369
Johnson, L.A. (Texas, Dem.)
Insurance; members F.R.
System, other banks cer
tified by State authority
to be in sound financial
condition; Federal Bank
Liquidating Board
Same as 133
143
Mar. 15, 1933; 73rd HR 3515
Whitley, J.L. (N .Y ., Rep.)
Insurance; any applicant na
tional or State bank cer
tified as sound by Secretary
of Treasury or State bank
ing^ authority, respectively,
and approved by the Board;
Federal Bank Liquidating
Board
Deposits, payable as soon as
practicable, not over 1 year
after necessary information is
provided by report of committee
appraising assets
144
Mar. 16, 1933; 73rd HR 3669
Church, D.S. (Calif., Dem.)
Same as 139
Same as 139
145
Mar. 17, 1933; 73rd HR 3758
Shallenberger, A.C. (Neb.,
Dem.)
Insurance; members F.R .
System;
Comptroller of the Currency
All deposits, by payment to
liquidating officer of closed bank
of sum sufficient to enable full
payment of depositors; loans
to liquidating officers also
authorized
146
Apr. 20, 1933; 73rd HR 5076
Carter, A.E. (Calif., Rep.)
Insurance; members F.R.
System deemed sound;
Federal Reserve Board
Deposits
147
May 9, 1933; 73rd HR 5571
McLeod, C.J. (Mich., Rep.)
Insurance; National banks
and State banks members
F.R . System; Federal
Reserve Board
Deposits, defined as liabilities
other than circulation, U.S.
deposits, and other secured
public deposits
99
D E PO SIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
I ntroduced
1886-1933— Continued
Assessments and other sources of funds
Other provisions
Identi
fying
number
Annually on banks members of the F .R . System
1/8 of 1 percent of average time deposits, and on
banks not members at least twice this rate; addi
tional if necessary, not over 1/8 of 1 percent
annually; initially 1/4 of surplus, and annually
1/4 of net earnings of F.R . banks available for
surplus; U.S. appropriation $125,000,000
135
Same as 124
136
Same as 131
Same as 131
Same as 135
137
138
Assessments on banks members F .R . System sufficient
to maintain fund at 1 percent of deposits, and on
other banks at rate determined by Board; 1 percent
per year on national bank circulation (existing tax)
at option of Board
Same as 134
139
Same as 134
Same as 106
Same as 133, except that banks not members F.R .
System to pay same rate as members
140
141
Banks members F.R . System not to pay over
4 percent interest on deposits and dividends
restricted; banks not members of F.R .
System may be required to withdraw if they
fail to furnish annually certificates by State
authority of their sound financial condition
142
Semi-annually 1/8 of 1 percent of average daily
deposits, subject to variation if necessary; new
banks 4 percent of capital accounts to be adjusted
to deposits later; U.S. appropriations of franchise
tax paid by Federal banks; maximum fund, discre
tion of Board
143
Same as 139
144
Annual assessment aggregating not over $100,000,000
in proportion to deposits; initial assessment
$130,000,000 on basis of deposits other than time
deposits and $70,000,000 on basis of time deposits;
new banks 4 percent of capital accounts, adjusted
to deposits later; initial levy on Federal Reserve
banks $150,000,000 in proportion to surplus; half
of annual earnings of F .R . banks after dividends;
U.S. appropriation of amount received as franchise
tax from Federal Reserve banks
Interest on savings or time deposits limited
to 3 percent per year
145
Semi-annually 1/8 of 1 percent of average time and
demand deposits; F .R . banks 1/4 of surplus and
semi-annually 1/4 of net earnings; assessments may
be reduced or waived by Board when fund is 1
percent or more of deposits
146
Assessments in proportion to deposits sufficient to
maintain fund at 1 percent of average, payable in
installments and at times fixed by Board; if neces
sary, additional assessments not over 3 percent
per year of average deposits; if from accrued
interest fund exceeds 5 percent of average deposits
excess to be distributed as dividends in proportion
to previous assessments
147
100
FE D E R A L DE PO SIT IN SU R AN C E CO R PO R ATIO N
D ig e st of B ills for I n su r a n c e or G u a r a n t y of B a n k D eposits I ntroduced
I n to C o ng r ess ,
Identi-
Date, Congress and bill
number, and author
1886-1933—Continued
Character of protection,
.
L.ab.ht.es covered
148
May 10, 1933; 73rd HR 5598
Steagali, H.B. (Ala., Dem.)
Insurance; members F.R .
System, applicant State
banks in solvent condition
examined and approved by
Corporation; Federal Deposit
Insurance Corporation
All deposits up to $10,000 for
each depositor, 75 percent of
those in excess of $10,000 up
to $50,000, and 50 percent of
those in excess of $50,000
149
May 15, 1933; 73rd S 1631
Glass, C. (Va., Dem.)
Insurance; members F.R.
System; Federal Bank
Deposit Insurance Corp.
Same as 148
150
May 17, 1933; 73rd HR 5661
Steagali, H.B. (Ala., Dem.)
(This bill, in amended form,
became law on June 16,
1933; for principal deposit’
insurance provisions as en
acted, see< Tablet 34, p. 67.)
Same as 148
Same as 148
101
D E PO SIT IN SU R AN C E PROPOSALS
D
ig e s t
of
B
il l s
for
Insurance
In to
or
C on gress,
G
uaranty
of
B ank D
e p o s it s
Introduced
1886-1933— Continued
Identifying
number
Assessments and other sources of funds
Other provisions
Semi-annually 1/4 of 1 percent of all loans made
during the period to be paid by the borrower,
reducible if fund is deemed sufficient; capital stock
subscriptions by insured banks equal to 1/2 of
1 percent of total net outstanding deposits adjusted
annually, by F.R . banks equal to 1/2 of their
surplus, and by the U.S. $150,000,000
Regulation of bank affiliates; restrictions on
securities acquired by member banks;
interest on time deposits limited to 3 per
cent per year; other changes in banking
code
148
Assessment equal to 1/4 of 1 percent of total deposits,
when net debit balance of deposit insurance ac
count equals or exceeds that amount; capital stock
subscriptions by insured banks equal to 1/2 of 1
percent of total deposits adjusted annually, by
Federal Reserve banks equal to 1/2 of their sur
plus, and by the U.S. $150,000,000
Regulation of bank affiliates; restrictions on
securities acquired; interest on demand de
posits prohibited and rate on time deposits
to be limited by Federal Reserve Board;
other changes in banking code
149
Same as 149
Same as 148
150
PART FOUR
LEGISLATION AND REGULATIONS
F e d e r a l L e g is l a t io n
FEDERAL DEPOSIT INSURANCE ACT
[ P u b l ic L a w
7 9 7 — 8 1 st C o n g r e s s ]
[ C h a p t e r 9 6 7 — 2 d S e s s io n ]
[S. 2822]
AN ACT
To amend the Federal Deposit Insurance Act (U.S.C., title 12, sec. 264).
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That section 12B of the Federal
Reserve Act, as amended, is hereby withdrawn as a part of that Act and
is made a separate Act to be known as the “ Federal Deposit Insurance
Act” .
Sec. 2. The Federal Deposit Insurance Act is amended to read as
follows:
Sec. 1. There is hereby created a Federal Deposit Insurance Cor
poration (hereinafter referred to as the “ Corporation” ) which shall in
sure, as hereinafter provided, the deposits of all banks which are entitled
to the benefits of insurance under this Act, and which shall have the
powers hereinafter granted.
Sec. 2. The management of the Corporation shall be vested in a Board
of Directors consisting of three members, one of whom shall be the
Comptroller of the Currency, and two of whom shall be citizens of the
United States to be appointed by the President, by and with the advice
and consent of the Senate. One of the appointive members shall be the
Chairman of the Board of Directors of the Corporation and not more
than two of the members of such Board of Directors shall be members
of the same political party. Each such appointive member shall hold
office for a term of six years. In the event of fa vacancy in the office of
the Comptroller of the Currency, and pending the appointment of his
successor, or during the absence of the Comptroller from Washington,
the Acting Comptroller of the Currency shall be a member of the Board
of Directors in the place and stead of the Comptroller. In the event
of a vacancy in the office of the Chairman of the Board of Directors,
and pending the appointment of his successor, the Comptroller of the
Currency shall act as Chairman. The members of the Board of Directors
shall be ineligible during the time they are in office and for two years
thereafter to hold any office, position, or employment in any insured
bank, except that this restriction shall not apply to any member who
has served the full term for which he was appointed. No member of the
Board of Directors shall be an officer or director of any insured bank
105
106
FE D E RA L D EPOSIT IN SU R AN C E C O RPORATION
or Federal Reserve bank or hold stock in any insured bank; and before
entering upon his duties as a member of the Board of Directors he shall
certify under oath that he has complied with this requirement and such
certification shall be filed with the secretary of the Board of Directors.
Sec. 3. As used in this Act—
(a) The term “ State bank” means any bank, banking association, trust
company, savings bank, or other banking institution which is engaged
in the business of receiving deposits, other than trust funds as herein
defined, and which is incorporated under the laws of any State, any
Territory of the United States, Puerto Rico, or the Virgin Islands, or
which is operating under the Code of Law for the District of Columbia
(except a national bank), and includes any unincorporated bank the
deposits of which are insured on the effective date of this amendment.
(b) The term “ State member bank” means any State bank which is
a member of the Federal Reserve System, and the term “ State non
member bank” means any State bank which is not a member of the
Federal Reserve System.
(c) The term “ District bank” means any State bank operating under
the Code of Law for the District of Columbia.
(d) The term “ national member bank” means any national bank
located in any of the States of the United States, the District of Colum
bia, any Territory of the United States, Puerto Rico, or the Virgin
Islands which is a member of the Federal Reserve System.
(e) The term “ national nonmember bank” means any national bank
located in any Territory of the United States, Puerto Rico, or the Virgin
Islands which is not a member of the Federal Reserve System.
(f) The term “ mutual savings bank” means a bank without capital
stock transacting a savings bank business, the net earnings of which
inure wholly to the benefit of its depositors after payment of obligations
for any advances by its organizers.
(g) The term “ savings bank” means a bank (other than a mutual
savings bank) which transacts its ordinary banking business strictly
as a savings bank under State laws imposing special requirements on
such banks governing the manner of investing their funds and of con
ducting their business: Provided, That the bank maintains, until maturity
date or until withdrawn, all deposits made with it (other than funds
held by it in a fiduciary capacity) as time savings deposits of the specific
term type or of the type where the right is reserved to the bank to require
written notice before permitting withdrawal: Provided further, That
such bank to be considered a savings bank must elect to become subject
to regulations of the Corporation with respect to the redeposit of maturing
deposits and prohibiting withdrawal of deposits by checking except in
cases where such withdrawal was permitted by law on August 23, 1935,
from specifically designated deposit accounts totaling not more than
15 per centum of the bank’s total deposits.
F E D E R A L DEPO SIT IN SU R AN C E ACT
107
(h) The term “ insured bank” means any bank the deposits of which
are insured in accordance with the provisions of this Act; and the term
“ noninsured bank” means any bank the deposits of which are not so
insured.
(i) The term “ new bank” means a new national banking association or
ganized by the Corporation to assume the insured deposits of an insured
bank closed on account of inability to meet the demands of its depositors
and otherwise to perform temporarily the functions prescribed in this Act.
(j) The term “ receiver” includes a receiver, liquidating agent, con
servator, commission, person, or other agency charged by law with
the duty of winding up the affairs of a bank.
(k) The term “ Board of Directors” means the Board of Directors
of the Corporation.
(1) The term “ deposit” means the unpaid balance of money or its
equivalent received by a bank in the usual course of business and for
which it has given or is obligated to give credit to a commercial, checking,
savings, time, or thrift account, or which is evidenced by its certificate
of deposit, and trust funds held by such bank whether retained or de
posited in any department of such bank or deposited in another bank,
together with such other obligations of a bank as the Board of Directors
shall find and shall prescribe by its regulations to be deposit liabilities
by general usage: Provided, That any obligation of a bank which is
payable only at an office of the bank located outside the States of the
United States, the District of Columbia, any Territory of the United
States, Puerto Rico, and the Virgin Islands, shall not be a deposit for
any of the purposes of this Act or be included as a part of total deposits
or of an insured deposit: Provided further, That any insured bank having
its principal place of business in any of the States of the United States
or in the District of Columbia which maintains a branch in any Territory
of the United States, Puerto Rico, or the Virgin Islands may
elect to exclude from insurance under this Act its deposit obligations
which are payable only at such branch, and upon so electing the insured
bank with respect to such branch shall comply with the provisions of
this Act applicable to the termination of insurance by nonmember banks:
Provided further, That the bank may elect to restore the insurance to
such deposits at any time its capital stock is unimpaired.
(m) The term “ insured deposit” means the net amount due to any
depositor for deposits in an insured bank (after deducting offsets) less
any part thereof which is in excess of $10,000. Such net amount shall
be determined according to such regulations as the Board of Directors
may prescribe, and in determining the amount due to any depositor
there shall be added together all deposits in the bank maintained in the
same capacity and the same right for his benefit either in his own name
or in the names of others except trust funds which shall be insured as
provided in subsection (i) of section 7. Each officer, employee, or agent
108
F E D E R A L DEPOSIT IN SU R AN C E CORPORATION
of the United States, of any State of the United States, of the District
of Columbia, of any Territory of the United States, of Puerto Rico, of
the Virgin Islands, of any county, of any municipality, or of any political
subdivision thereof, herein called “ public unit” , having official custody
of public funds and lawfully depositing the same in an insured bank
shall, for the purpose of determining the amount of the insured deposits,
be deemed a depositor in such custodial capacity separate and distinct
from any other officer, employee, or agent of the same or any public
unit having official custody of public funds and lawfully depositing the
game in the same insured bank in custodial capacity.
(n) The term “ transferred deposit” means a deposit in a new bank
or other insured bank made available to a depositor by the Corporation
as payment of the insured deposit of such depositor in a closed -bank,
and assumed by such new bank or other insured bank.
(o)
The term “ branch” includes any branch bank, branch office,
branch agency, additional office, or any branch place of business located
in any State of the United States or in any Territory of the United
States, Puerto Rico, or the Virgin Islands at which deposits are received
or checks paid or money lent.
(p) The term “ trust funds” means funds held by an insured bank
in a fiduciary capacity and includes, without being limited to, funds
held as trustee, executor, administrator, guardian, or agent.
Sec. 4. (a) Every bank, which is an insured bank on the effective
date of this amendment, shall be and continue to be, without appli
cation or approval, an insured bank and shall be subject to the provisions
of this Act.
(b)
Every national member bank which is authorized to commence
or resume the business of banking, and which is engaged in the business
of receiving deposits other than trust funds as herein defined, and every
such national nonmember bank which becomes a member of the Federal
Reserve System, and every State bank which is converted into a national
member bank or which becomes a member of the Federal Reserve System,
and which is engaged in the business of receiving deposits, other than trust
funds as herein defined, shall be an insured bank from the time it is
authorized to commence or resume business or becomes a member of
the Federal Reserve System. The certificate herein prescribed shall be
issued to the Corporation by the Comptroller of the Currency in the case
of such national member bank, or by the Board of Governors of the
Federal Reserve System in the case of such State member bank: Provided,
That in the case of an insured bank which is admitted to membership
in the Federal Reserve System or an insured State bank which is con
verted into a national member bank, such certificate shall not be required,
and the bank shall continue as an insured bank. Such certificate shall
state that the bank is authorized to transact the business of banking
in the case of a national member bank, or is a member of the Federal
F E D E R A L DEPO SIT IN SU R AN C E ACT
109
Reserve System in the case of a State member bank, and that considera
tion has been given to the factors enumerated in section 6. A State bank,
resulting from the conversion of an insured national bank, shall continue
as an insured bank. A State bank, resulting from the merger or consolida
tion of insured banks, or from the merger or consolidation of a noninsured
bank or institution with an insured State bank, shall continue as an
insured bank.
Sec. 5. Subject to the provisions of this Act, any national nonmember
bank which is engaged in the business of receiving deposits, other than
trust funds as herein defined, upon application by the bank and certifica
tion by the Comptroller of the Currency in the manner prescribed in
subsection (b) of section 4 and any State nonmember bank, upon ap
plication to and examination by the Corporation and approval by the
Board of Directors, may become an insured bank. Before approving
the application of any such State nonmember bank, the Board of Di
rectors shall give consideration to the factors enumerated in section 6
and shall determine, upon the basis of a thorough examination of such
bank, that its assets in excess of its capital requirements are adequate to
enable it to meet all of its liabilities to depositors and other creditors as
shown by the books of the bank.
Sec. 6 The factors to be enumerated in the certificate required under
section 4 and to be considered by the Board of Directors under section 5
shall be the following: The financial history and condition of the bank,
the adequacy of its capital structure, its future earnings prospects, the
general character of its management, the convenience and needs of the
community to be served by the bank, and whether or not its corporate
powers are consistent with the purposes of this Act.
Sec. 7. (a) The assessment rate shall be one-twelfth of 1 per centum
per annum. The semiannual assessment for each insured bank shall
be in the amount of the product of one-half the annual assessment rate
multiplied by the assessment base. The assessment base shall be the
amount of the liability of the bank for deposits, according to the defi
nition of the term “ deposit” in and pursuant to subsection (1) of section
3, without any deduction for indebtedness of depositors: Provided,
That the bank—
(1)
may deduct (i) from the deposit balance due to an insured
bank the deposit balance due from such insured bank (other than
trust funds deposited by it in such bank) which is subject to im
mediate withdrawal; (ii) trust funds held by the bank in a fiduciary
capacity and which are deposited in another insured bank; and
(iii) cash items as determined by either of the following methods,
at the option of the bank: (aa) by multiplying by 2 the total of the
cash items forwarded for collection on the assessment base days
(being the days on which the average deposits are computed) and
cash items held for clearings at the close of business on said days,
.
110
FE D E R A L D EPOSIT IN SU R AN C E CORPORATION
which are in the process of collection and which the bank has paid
in the regular course of business or credited to deposit accounts;
or (bb) by deducting the total of cash items forwarded for collection
on the assessment base days and cash items held for clearings at
the close of business on said days, which are in the process of collection
and which the bank has paid in the regular course of business or
credited to deposit accounts, plus such uncollected items paid or
credited on preceding days which are in the process of collection:
Provided, That the Board of Directors may define the terms “ cash
items” , “ process of collection” , and “ uncollected items” and shall fix
the maximum period for which any such item may be deducted; and
(2)
may exclude from its assessment base (i) drafts drawn by
it on deposit accounts in other banks which are issued in the regular
course of business; and the amount of any advices or authoriza
tions, issued by it for cash letters received, directing that its deposit
account in the sending bank be charged with the amount thereof;
and (ii) cash funds which are received and held solely for the pur
pose of securing a liability to the bank but not in an amount in
excess of such liability, and which are not subject to withdrawal
by the obligor and are carried in a special non-interest-bearing
account designated to properly show their purpose.
Each insured bank, as a condition to the right to make any such de
duction or exclusion in determining its assessment base, shall maintain
such records as will readily permit verification of the correctness thereof.
The semiannual assessment base for one semiannual period shall be
the average of the assessment base of the bank as of the close of business
on March 31 and June 30, and the semiannual assessment base for the
other semiannual period shall be the average of the assessment base
of the bank as of the close of business on September 30 and December 31:
Provided, That when any of said days is a nonbusiness day or a legal
holiday, either National or State, the preceding business day shall be
used. The certified statements required to be filed with the Corporation
under subsections (b) and (c) of this section shall be in such form and
set forth such supporting information as the Board of Directors shall
prescribe. The assessment payments required from insured banks under
subsections (b) and (c) of this section shall be made in such manner and
at such time or times as the Board of Directors shall prescribe, provided
the time or times so prescribed shall not be later than sixty days after
filing the certified statement setting forth the amount of assessment.
(b)
On or before the 15th day of July of each year, each insured bank
shall file with the Corporation a certified statement showing for the six
months ending on the preceding June 30 the amount of the assessment
base and the amount of the semiannual assessment due to the Corporation
for the period ending on the following December 31, determined in
accordance with subsection (a) of this section, which shall contain or
F E D E R A L D EPOSIT IN SU R AN C E AC T
111
be verified by a written declaration that it is made under the penalties
of perjury. Each insured bank shall pay to the Corporation the amount
of the semiannual assessment it is required to certify. On or before the
15th day of January of each year, each insured bank shall file with the
Corporation a similar certified statement for the six months ending on
the preceding December 31 and shall pay to the Corporation the amount
of the semiannual assessment for the period ending on the following
June 30 which it is required to certify.
(c) Each bank which becomes an insured bank shall not be required
to file any certified statement or pay any assessment for the semiannual
period in which it becomes an insured bank. On the expiration of such
period, each such bank shall comply with the provisions of subsection
(b) of this section except that the semiannual assessment base for its
first certified statement shall be the assessment base of the bank as of
the close of business on the preceding June 30 or December 31, whichever
is applicable, determined in accordance with subsection (a) of this
section. If such bank has assumed the liabilities for deposits of another
bank or banks, it shall include such liabilities in its assessment base.
The first certified statement shall show as the amount of the first semi
annual assessment due to the Corporation, an amount equal to the
product of one-half of the annual assessment rate multiplied by such
assessment base.
(d) As of December 31, 1950, and as of December 31, of each calendar
year thereafter, the Corporation shall transfer 40 per centum of its net
assessment income to its capital account and the balance of the net
assessment income shall be credited pro rata to the insured banks based
upon the assessments of each bank becoming due during said calendar
year. Each year such credit shall be applied by the Corporation toward
the payment of the total assessment becoming due for the semiannual
assessment period beginning the next ensuing July 1 and any excess credit
shall be applied upon the assessment next becoming due. The term
“ net assessment income,, as used herein means the total assessments
which become due during the calendar year less (1) the operating costs
and expenses of the Corporation for the calendar year; (2) additions to
reserve to provide for insurance losses during the calendar year, except
that any adjustments to reserve which result in a reduction of such
reserve shall be added; and (3) the insurance losses sustained in said
calendar year plus losses from any preceding years in excess of such
reserves. If the above deductions exceed in amount the total assessments
which become due during the calendar year, the amount of such excess
shall be restored by deduction from total assessments becoming due in
subsequent years.
(e) The Corporation (1) may refund to an insured bank any payment
of assessment in excess of the amount due to the Corporation or (2) may
credit such excess toward the payment of the assessment next becoming
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F E D E R A L DEPOSIT IN SU R AN C E C ORPORATION
due from such bank and upon succeeding assessments until the credit
is exhausted.
(f) Any insured bank which fails to file any certified statement required
to be filed by it in connection with determining the amount of any
assessment payable by the bank to the Corporation may be compelled
to file such statement by mandatory injunction or other appropriate
remedy in a suit brought for such purpose by the Corporation against
the bank and any officer or officers thereof in any court of the United
States of competent jurisdiction in the District or Territory in which
such bank is located.
(g) The Corporation, in a suit brought at law or in equity in any
court of competent jurisdiction, shall be entitled to recover from any
insured bank the amount of any unpaid assessment lawfully payable
by such insured bank to the Corporation, whether or not such bank
shall have filed any such certified statement and whether or not suit
shall have been brought to compel the bank to file any such statement.
No action or proceeding shall be brought for the recovery of any assess
ment due to the Corporation, or for the recovery of any amount paid
to the Corporation in excess of the amount due to it, unless such action
or proceeding shall have been brought within five years after the right
accrued for which the claim is made, except where the insured bank
has made or filed with the Corporation a false or fraudulent certified
statement with the intent to evade, in whole or in part, the payment
of assessment, in which case the claim shall not be deemed to have
accrued until the discovery by the Corporation that the certified state
ment is false or fraudulent: Provided, however, That where a cause of
action has already accrued, and the period herein prescribed within
which an action may be brought has expired, or will expire within one
year from the date this amendment becomes effective, an action may
be brought on such cause of action within one year from the effective
date of this amendment: And provided further, That no action or pro
ceeding shall be brought for the recovery of any assessment on deposits
alleged to have been omitted from the assessment base of any insured
bank for any year prior to 1945 except that any claim of the Corporation
for the payment of any assessment may be offset by it against any claim
of the bank for the overpayment of any assessment.
(h) Should any national member bank or any insured national non
member bank fail to file any certified statement required to be filed
by such bank under any provision of this section, or fail to pay any
assessment required to be paid by such bank under any provision of
this Act, and should the bank not correct such failure within thirty
days after written notice has been given by the Corporation to an officer
of the bank, citing this subsection, and stating that the bank has failed
to file or pay as required by law, all the rights, privileges, and franchises
of the bank granted to it under the National Bank Act, as amended,
FE D E R A L D EPOSIT IN SU R AN C E ACT
113
the Federal Reserve Act, as amended, or this Act, shall be thereby
forfeited. Whether or not the penalty provided in this subsection has
been incurred shall be determined and adjudged in the manner provided
in the sixth paragraph of section 2 of the Federal Reserve Act, as amended.
The remedies provided in this subsection and in the two preceding sub
sections shall not be construed as limiting any other remedies against
any insured bank, but shall be in addition thereto.
(i)
Trust funds held by an insured bank in a fiduciary capacity whether
held in its trust or deposited in any other department or in another
bank shall be insured in an amount not to exceed $10,000 for each trust
estate, and when deposited by the fiduciary bank in another insured
bank such trust funds shall be similarly insured to the fiduciary bank
according to the trust estates represented. Notwithstanding any other
provision of this Act, such insurance shall be separate from and addi
tional to that covering other deposits of the owners of such trust funds
or the beneficiaries of such trust estates: Provided, That where the
fiduciary bank deposits any of such trust funds in other insured banks,
the amount so held by other insured banks on deposit shall not for the
purpose of any certified statement required under subsections (b) and
(c) of this section be considered to be a deposit liability of the fiduciary
bank, but shall be considered to be a deposit liability of the bank in
which such funds are so deposited by such fiduciary bank. The Board
of Directors shall have power by regulation to prescribe the manner
of reporting and of depositing such trust funds.
Sec. 8. (a) Any insured bank (except a national member bank or
State member bank) may, upon not less than ninety days’ written notice
to the Corporation, and to the Reconstruction Finance Corporation
if it owns or holds as pledgee any preferred stock, capital notes, or deben
tures of such bank, terminate its status as an insured bank. Whenever
the Board of Directors shall find that an insured bank or its directors
or trustees have continued unsafe or unsound practices in conducting
the business of such bank, or have knowingly or negligently permitted
any of its officers or agents to violate any provision of any law or regula
tion to which the insured bank is subject, the Board of Directors shall
first give to the Comptroller of the Currency in the case of a national
bank or a District bank, to the authority having supervision of the
bank in the case of a State bank, or to the Board of Governors of the
Federal Reserve System in the case of a State member bank, a statement
with respect t® such practices or violations for the purpose of securing
the correction thereof and shall give a copy thereof to the bank. Unless
such correction shall be made within one hundred and twenty days or
such shorter period of time as the Comptroller of the Currency, the
State authority, or Board of Governors of the Federal Reserve System,
as the case may be, shall require, the Board of Directors, if it shall
determine to proceed further, shall give to the bank not less than thirty
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FE D E R A L D EPOSIT IN SU R AN C E C ORPORATION
days’ written notice of intention to terminate the status of the bank
as an insured bank, and shall fix a time and place for a hearing before
the Board of Directors or before a person designated by it to conduct
such hearing, at which evidence may be produced, and upon such evidence
the Board of Directors shall make written findings which shall be con
clusive. Unless the bank shall appear at the hearing by a duly authorized
representative, it shall be deemed to have consented to the termination
of its status as an insured bank. If the Board of Directors shall find that
any unsafe or unsound practice or violation specified in such notice has
been established and has not been corrected within the time above
prescribed in which to make such corrections, the Board of Directors
may order that the insured status of the bank be terminated on a date
subsequent to such finding and to the expiration of the time specified in
such notice of intention. The Corporation may publish notice of such
termination and the bank shall give notice of such termination to each
of its depositors at his last address of record on the books of the bank,
in such manner and at such time as the Board of Directors may find to
be necessary and may order for the protection of depositors. After the
termination of the insured status of any bank under the provisions of
this subsection, the insured deposits of each depositor in the bank on
the date of such termination, less all subsequent withdrawals from any
deposits of such depositor, shall continue for a period of two years to
be insured, and the bank shall continue to pay to the Corporation assess
ments as in the case of an insured bank during such period. No additions
to any such deposits and no new deposits in such bank made after the
date of such termination shall be insured by the Corporation, and the
bank shall not advertise or hold itself out as having insured deposits
unless in the same connection it shall also state with equal prominence
that such additions to deposits and new deposits made after such date
are not so insured. Such bank shall, in all other respects, be subject to
the duties and obligations of an insured bank for the period of two years
from the date of such termination, and in the event that such bank
shall be closed on account of inability to meet the demands of its depositors
within such period of two years, the Corporation shall have the same
powers and rights with respect to such bank as in case of an insured bank.
(b)
Whenever the insured status of a State member bank shall be
terminated by action of the Board of Directors, the Board of Governors
of the Federal Reserve System shall terminate its membership in the
Federal Reserve System in accordance with the provisions of section 9
of the Federal Reserve Act, and whenever the insured status of a national
member bank shall be so terminated the Comptroller of the Currency
shall appoint a receiver for the bank, which shall be the Corporation.
Except as provided in subsection (b) of section 4, whenever a member
bank shall cease to be a member of the Federal Reserve System, its
status as an insuredfobank shall, without notice or other action by the
FE D E R A L DEPOSIT IN SU R AN C E ACT
115
Board of Directors, terminate on the date the bank shall cease to be a
member of the Federal Reserve System, with like effect as if its insured
status had been terminated on said date by the Board of Directors after
proceedings under subsection (a) of this section.
(c) Notwithstanding any other provision of law, whenever the Board
of Directors shall determine that an insured banking institution is not
engaged in the business of receiving deposits, other than trust funds
as herein defined, the Corporation shall notify the banking institution
that its insured status will terminate at the expiration of the first full
semiannual assessment period following such notice. A finding by the
Board of Directors that a banking institution is not engaged in the
business of receiving deposits, other than such trust funds, shall be
conclusive. The Board of Directors shall prescribe the notice to be given
by the banking institution of such termination and the Corporation may
publish notice thereof. Upon the termination of the insured status of
any such banking institution, its deposits shall thereupon cease to be
insured and the banking institution shall thereafter be relieved of all
future obligations to the Corporation, including the obligation to pay
future assessments.
(d) Whenever the liabilities of an insured bank for deposits shall
have been assumed by another insured bank or banks, the insured status
of the bank whose liabilities are so assumed shall terminate on the date
of receipt by the Corporation of satisfactory evidence of such assumption
with like effect as if its insured status had been terminated on said date
by the Board of Directors after proceedings under subsection (a) of this
section: Provided, That if the bank whose liabilities are so assumed gives
to its depositors notice of such assumption within thirty days after such
assumption takes effect, by publication or by any reasonable means,
in accordance with regulations to be prescribed by the Board of Directors,
the insurance of its deposits shall terminate at the end of six months
from the date such assumption takes effect. Such bank shall be subject
to the duties and obligations of an insured bank for the period its deposits
are insured: Provided, That if the deposits are assumed by a newly insured
bank, the bank whose deposits are assumed shall not be required to pay
any assessment upon the deposits which have been so assumed after the
semiannual period in which the assumption takes effect.
Sec. 9. Upon the date of enactment of the Banking Act of 1933, the
Corporation shall become a body corporate and as such shall have
power—
First. To adopt and use a corporate seal.
Second. To have succession until dissolved by an Act of Congress.
Third. To make contracts.
Fourth. To sue and be sued, complain and defend, in any court of
law or equity, State or Federal. All suits of a civil nature at common
law or in equity to which the Corporation shall be a party shall be deemed
1 16
FE D E R A L DEPOSIT IN SU R AN C E CORPORATION
to arise under the laws of the United States: Provided, That any such
suit to which the Corporation is a party in its capacity as receiver of a
State bank and which involves only the rights or obligations of depositors,
creditors, stockholders, and such State bank under State law shall not
be deemed to arise under the laws of the United States. No attachment
or execution shall be issued against the Corporation or its property
before final judgment in any suit, action, or proceeding in any State,
county, municipal, or United States court. The Board of Directors
shall designate an agent upon whom service of process may be made in
any State, Territory, or jurisdiction in which any insured bank is located.
Fifth. To appoint by its Board of Directors such officers and employees
as are not otherwise provided for in this Act, to define their duties, fix
their compensation, require bonds of them and fix the penalty thereof,
and to dismiss at pleasure such officers or employees. Nothing in this
or any other Act shall be construed to prevent the appointment and
compensation as an officer or employee of the Corporation of any officer
or employee of the United States in any board, commission, independent
establishment, or executive department thereof.
Sixth. To prescribe, by its Board of Directors, bylaws not inconsistent
with law, regulating the manner in which its general business may be
conducted, and the privileges granted to it by law may be exercised
and enjoyed.
Seventh. To exercise by its Board of Directors, or duly authorized
officers or agents, all powers specifically granted by the provisions of
this Act, and such incidental powers as shall be necessary to carry out
the powers so granted.
Eighth. To make examinations of and to require information and
reports from banks, as provided in this Act.
Ninth. To act as receiver.
Tenth. To prescribe by its Board of Directors such rules and regu
lations as it may deem necessary to carry out the provisions of this Act.
Sec. 10. (a) The Board of Directors shall administer the affairs of
the Corporation fairly and impartially and without discrimination.
The Board of Directors of the Corporation shall determine and prescribe
the manner in which its obligations shall be incurred and its expenses
allowed and paid. The Corporation shall be entitled to the free use of
the United States mails in the same manner as the executive departments
of the Government. The Corporation with the consent of any Federal
Reserve bank or of any board, commission, independent establishment,
or executive department of the Government, including any field service
thereof, may avail itself of the use of information, services, and facilities
thereof in carrying out the provisions of this Act.
(b)
The Board of Directors shall appoint examiners who shall have
power, on behalf of the Corporation, to examine any insured State
nonmember bank (except a District bank), any State nonmember
FE D E R A L D EPOSIT IN SU RAN CE ACT
117
bank making application to become an insured bank, and any closed
insured bank, whenever in the judgment of the Board of Directors an
examination of the bank is necessary. In addition to the examinations
provided for in the preceding sentence, such examiners shall have like
power to make special examination of any State member bank and any
national bank or District bank, whenever in the judgment of the Board
of Directors such special examination is necessary to determine the
condition of any such bank for insurance purposes. Each such examiner
shall have power to make a thorough examination of all the affairs of
the bank and in doing so he shall have power to administer oaths and
to examine and take and preserve the testimony of any of the officers
and agents thereof, and shall make a full and detailed report of the condi
tion of the bank to the Corporation. The Board of Directors in like
manner shall appoint claim agents who shall have power to investigate
and examine all claims for insured deposits and transferred deposits.
Each claim agent shall have power to administer oaths and to examine
under oath and take and preserve the testimony of any persons relating
to such claims.
(c)
For the purpose of any hearing under this Act, the Board of
Directors, any member thereof or any person designated by the Board
of Directors to conduct any such hearing, is empowered to administer
oaths and affirmations, subpena any officer or employee of the insured
bank, compel his attendance, take evidence, take depositions and require
the production of any books, records, or other papers of the insured
bank which are relevant or material to the inquiry. For the purpose
of any hearing, examination, or investigation under this Act, the Board
of Directors may apply to any judge or clerk of any court of the United
States within the jurisdiction of which such hearing, examination, or
investigation is carried on, or where such person resides or carries on
business, to issue a subpena commanding each person to whom it is
directed to attend and give testimony or for the taking of his deposition
and to produce books, records, or other papers relevant or material to
such hearing, examination, or investigation at a time and place and before
a person therein specified. Such attendance of witnesses and the produc
tion of any such papers may be required from any place in any State or
in any Territory or other place subject to the jurisdiction of the United
States at any designated place where such a hearing is being held or
such examination or investigation is being made: Provided, however,
That the production of a person’s documents at any place other than
his place of business shall not be required in any case in which, prior to
the return date specified in the subpena with respect thereto, such person
either has furnished as directed a copy of such documents (certified by
such person under oath to be a true and correct copy) or has entered into
a stipulation with any authorized representative of the Corporation as
to the information contained in such documents. Witnesses subpenaed
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FE D E R A L DE PO SIT IN SU R AN C E CORPORATION
under this section shall be paid the same fees and mileage that are paid
witnesses in the district courts of the United States.
(d) In cases of refusal to obey a subpena issued to, or contumacy
by, any person, the Board of Directors may invoke the aid of any court
of the United States within the jurisdiction of which such hearing,
examination or investigation is carried on, or where such person resides
or carries on business, in requiring the attendance and testimony of
witnesses and the production of books, records, or other papers. And
such court may issue an order requiring such person to appear before the
Board of Directors or member or person designated by the Board of
Directors, there to produce records, if so ordered, or to give testimony
touching the matter in question; and any failure to obey such order of
the court may be punished by such court as a contempt thereof. All process
in any such case may be served in the judicial district whereof such person
is an inhabitant or carries on business or wherever he may be found.
No person shall be excused from attending and testifying or from pro
ducing books, records, or other papers in obedience to a subpena issued
under the authority of this Act on the ground that the testimony or
evidence, documentary or otherwise, required of him may tend to in
criminate him or subject him to penalty or forfeiture; but no individual
shall be prosecuted or subject to any penalty or forfeiture for or on ac
count of any transaction, matter, or thing concerning which he is com
pelled to testify or produce evidence, documentary or otherwise, after
having claimed his privilege against self-incrimination, except that such
individual so testifying shall not be exempt from prosecution and punish
ment for perjury committed in so testifying.
(e) Each insured State nonmember bank (except a District bank) shall
make to the Corporation reports of condition in such form and at such
times as the Board of Directors may require. The Board of Directors may
require such reports to be published in such manner, not inconsistent
with any applicable law, as it may direct. Every such bank which fails
to make or publish any such report within such time, not less than five
days, as the Board of Directors may require, shall be subject to a penalty
of not more than $100 for each day of such failure recoverable by the
Corporation for its use.
(f) The Corporation shall have access to reports of examination
made by, and reports of condition made to, the Comptroller of the
Currency or any Federal Reserve bank, may accept any report made
by or to any commission, board, or authority having supervision of
a State nonmember bank (except a District bank), and may furnish
to the Comptroller of the Currency, to any Federal Reserve bank, and
to any such commission, board, or authority, reports of examinations
made on behalf of, and reports of condition made to, the Corporation.
(g) The Corporation may cause any and all records, papers, or docu
ments kept by it or in its possession or custody to be photographed or
F E D E R A L DE PO SIT IN SU R AN C E AC T
119
microphotographed or otherwise reproduced upon film, which photo
graphic film shall comply with the minimum standards of quality ap
proved for permanent photographic records by the National Bureau
of Standards. Such photographs, microphotographs, or photographic
film or copies thereof shall be deemed to be an original record for all
purposes, including introduction in evidence in all State and Federal
courts or administrative agencies and shall be admissible to prove any
act, transaction, occurrence, or event therein recorded. Such photo
graphs, microphotographs, or reproductions shall be preserved in such
manner as the Board of Directors of the Corporation shall prescribe and
the original records, papers, or documents may be destroyed or otherwise
disposed of as the Board shall direct.
Sec. 11. (a) The Temporary Federal Deposit Insurance Fund and
the Fund For Mutuals heretofore created pursuant to the provisions
of section 12B of the Federal Reserve Act, as amended, are hereby
consolidated into a Permanent Insurance Fund for insuring deposits,
and the assets therein shall be held by the Corporation for the uses
and purposes of the Corporation: Provided, That the obligations to
and rights of the Corporation, depositors, banks, and other persons
arising out of any event or transaction prior to the effective date of
this amendment shall remain unimpaired. On and after August 23,
1935, the Corporation shall insure the deposits of all insured banks
as provided in this Act: Provided further, That the insurance shall apply
only to deposits of insured banks which have been made available since
March 10, 1933, for withdrawal in the usual course of the banking
business: Provided further, That if any insured bank shall, without
the consent of the Corporation, release or modify restrictions on or
deferments of deposits which had not been made available for with
drawal in the usual course of the banking business on or before August
23, 1935, such deposits shall not be insured. The maximum amount
of the insured deposit of any depositor shall be $10,000: And provided
further, That in the case of banks closing prior to the effective date
of this amendment, the maximum amount of the insured deposit of
any depositor shall be $5,000.
(b) For the purposes of this Act an insured bank shall be deemed
to have been closed on account of inability to meet the demands of its
depositors in any case in which it has been closed for the purpose of
liquidation without adequate provision being made for payment of
its depositors.
(c) Notwithstanding any other provision of law, whenever the
Comptroller of the Currency shall appoint a receiver other than a con
servator of any insured national bank or insured District bank, or of
any noninsured national bank or District bank hereafter closed, he shall
appoint the Corporation receiver for such closed bank.
(d) Notwithstanding any other provision of law, it shall be the duty
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F E D E RA L D EPOSIT IN SU RAN CE CORPORATION
of the Corporation as such receiver to cause notice to be given, by ad
vertisement in such newspapers as it may direct, to all persons having
claims against such closed bank pursuant to section 5235 of the Revised
Statutes (U.S.C., title 12, sec. 193); to realize upon the assets of such
closed bank, having due regard to the condition of credit in the locality;
to enforce the individual liability of the stockholders and directors
thereof; and to wind up the affairs of such closed bank in conformity
with the provisions of law relating to the liquidation of closed national
banks, except as herein otherwise provided. The Corporation as such
receiver shall pay to itself for its own account such portion of the amounts
realized from such liquidation as it shall be entitled to receive on account
of its subrogation to the claims of depositors, and it shall pay to depositors
and other creditors the net amounts available for distribution to them.
The Corporation as such receiver, however, may, in its discretion, pay
dividends on proved claims at any time after the expiration of the period
of advertisement made pursuant to the aforesaid section of the Revised
Statutes, and no liability shall attach to the Corporation itself or as
such receiver by reason of any such payment for failure to pay dividends
to a claimant whose claim is not proved at the time of any such payment.
With respect to any such closed bank, the Corporation as such receiver
shall Imve all the rights, powers, and privileges now possessed by or
hereafter granted by law to a receiver of a national bank or District
bank and notwithstanding any other provision of law in the exercise
of such rights, powers, and privileges the Corporation shall not be subject
to the direction or supervision of the Secretary of the Treasury or the
Comptroller of the Currency.
(e) Whenever any insured State bank (except a District bank) shall
have been closed by action of its board of directors or by the authority
having supervision of such bank, as the case may be, on account of
inability to meet the demands of its depositors, the Corporation shall
accept appointment as receiver thereof, if such appointment is tendered
by the authority having supervision of such bank and is authorized or
permitted by State law. With respect to any such insured State bank,
the Corporation as such receiver shall possess all the rights, powers
and privileges granted by State law to a receiver of a State bank.
(f) Whenever an insured bank shall have been closed on account
of inability to meet the demands of its depositors, payment of the insured
deposits in such bank shall be made by the Corporation as soon as possible,
subject to the provisions of subsection (g) of this section either (1) by
cash or (2) by making available to each depositor a transferred deposit
in a new bank in the same community or in another insured bank in an
amount equal to the insured deposit of such depositor: Provided, That
the Corporation, in its discretion, may require proof of claims to be filed
before paying the insured deposits, and that in any case where the
Corporation is not satisfied as to the validity of a claim for an insured
FE D E RA L DEPOSIT IN SU RAN CE ACT
121
deposit, it may require the final determination of a court of competent
jurisdiction before paying such claim.
(g) In the case of a closed national bank or District bank, the
Corporation, upon the payment to any depositor as provided in sub
section (f) of this section, shall be subrogated to all rights of the depositor
against the closed bank to the extent of such payment. In the case of
any other closed insured bank, the Corporation shall not make any
payment to any depositor until the right of the Corporation to be sub
rogated to the rights of such depositor on the same basis as provided
in the case of a closed national bank under this Act shall have been
recognized either by express provision of State law, by allowance of
claims by the authority having supervision of such bank, by assignment
of claims by depositors, or by any other effective method. In the case
of any closed insured bank, such subrogation shall include the right
on the part of the Corporation to receive the same dividends from the
proceeds of the assets of such closed bank and recoveries on account
of stockholders’ liability as would have been payable to the depositor
on a claim for the insured deposit, but such depositor shall retain his
claim for any uninsured portion of his deposit: Provided, That, with
respect to any bank which closes after May 25, 1938, the Corporation
shall waive, in favor only of any person against whom stockholders’
individual liability may be asserted, any claim on account of such liability
in excess of the liability, if any, to the bank or its creditors, for the amount
unpaid upon his stock in such bank; but any such waiver shall be effected
in such manner and on such terms and conditions as will not increase
recoveries or dividends on account of claims to which the Corporation
is not subrogated: Provided further, That the rights of depositors and
other creditors of any State bank shall be determined in accordance with
the applicable provisions of State law.
(h) As soon as possible after the closing of an insured bank, the Cor
poration, if it finds that it is advisable and in the interest of the depositors
of the closed bank or the public, shall organize a new national bank to
assume the insured deposits of such closed bank and otherwise to per
form temporarily the functions hereinafter provided for. The new bank
shall have its place of business in the same community as the closed bank.
(i) The articles of association and the organization certificate of
the new bank shall be executed by representatives designated by the
Corporation. No capital stock need be paid in by the Corporation.
The new bank shall not have a board of directors, but shall be managed
by an executive officer appointed by the Board of Directors of the Cor
poration who shall be subject to its directions. In all other respects the
new bank shall be organized in accordance with the then existing provi
sions of law relating to the organization of national banking associations.
The new bank may, with the approval of the Corporation, accept new
deposits which shall be subject to withdrawal on demand and which,
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FE D E R A L DEPOSIT IN SU R AN C E CO R PO R ATIO N
except where the new bank is the only bank in the community, shall
not exceed $10,000 from any depositor. The new bank, without applica
tion to or approval by the Corporation, shall be an insured bank and
shall maintain on deposit with the Federal Reserve bank of its district
reserves in the amount required by law for member banks, but it shall
not be required to subscribe for stock of the Federal Reserve bank.
Funds of the new bank shall be kept on hand in cash, invested in obliga
tions of the United States, or in obligations guaranteed as to principal
and interest by the United States, or deposited with the Corporation,
with a Federal Reserve bank, or, to the extent of the insurance coverage
thereon, with an insured bank. The new bank, unless otherwise authorized
by the Comptroller of the Currency, shall transact no business except
that authorized by this Act and as may be incidental to its organization.
Notwithstanding any other provision of law the new bank, its franchise,
property, and income shall be exempt from all taxation now or hereafter
imposed by the United States, by any Territory, dependency, or posses
sion thereof, or by any State, county, municipality, or local taxing
authority.
(j) Upon the organization of a new bank, the Corporation shall promptly
make available to it an amount equal to the estimated insured deposits
of such closed bank plus the estimated amount of the expenses of operating
the new bank, and shall determine as soon as possible the amount due
each depositor for his insured deposit in the closed bank, and the total
expenses of operation of the new bank. Upon such determination, the
amounts so estimated and made available shall be adjusted to conform
to the amounts so determined. Earnings of the new bank shall be paid
over or credited to the Corporation in such adjustment. If any new
bank, during the period it continues its status as such, sustains any
losses with respect to which it is not effectively protected except by reason
of being an insured bank, the Corporation shall furnish to it additional
funds in the amount of such losses. The new bank shall assume as trans
ferred deposits the payment of the insured deposits of such closed bank
to each of its depositors. Of the amounts so made available, the Corpo
ration shall transfer to the new bank, in cash, such sums as may be
necessary to enable it to meet its expenses of operation and immediate
cash demands on such transferred deposits, and the remainder of such
amounts shall be subject to withdrawal by the new bank on demand.
(k) Whenever in the judgment of the Board of Directors it is desirable
to do so, the Corporation shall cause capital stock of the new bank to
be offered for sale on such terms and conditions as the Board of Directors
shall deem advisable in an amount sufficient, in the opinion of the Board
of Directors, to make possible the conduct of the business of the new
bank on a sound basis, but in no event less than that required by section
5138 of the Revised Statutes, as amended (U. S. C., title 12, sec. 51),
for the organization of a national bank in the place where such new
FE D E R A L D EPOSIT IN SU R AN C E AC T
123
bank is located. The stockholders of the closed insured bank shall be
given the first opportunity to purchase any shares of common stock so
offered. Upon proof that an adequate amount of capital stock in the
new bank has been subscribed and paid for in cash, the Comptroller
of the Currency shall require the articles of association and the organiza
tion certificate to be amended to conform to the requirements for the
organization of a national bank, and thereafter, when the requirements
of law with respect to the organization of a national bank have been
complied with, he shall issue to the bank a certificate of authority to
commence business, and thereupon the bank shall cease to have the
status of a new bank, shall be managed by directors elected by its own
shareholders and may exercise all the powers granted by law, and it
shall be subject to all the provisions of law relating to national banks.
Such bank shall thereafter be an insured national bank, without certifica
tion to or approval by the Corporation.
(1)
If the capital stock of the new bank is not offered for sale, or if
an adequate amount of capital for such new bank is not subscribed and
paid for, the Board of Directors may offer to transfer its business to any
insured bank in the same community which will take over its assets,
assume its liabilities, and pay to the Corporation for such business such
amount as the Board of Directors may deem adequate; or the Board
of Directors in its discretion may change the location of the new bank
to the office of the Corporation or to some other place or may at any time
wind up its affairs as herein provided. Unless the capital stock of the
new bank is sold or its assets are taken over and its liabilities are assumed
by an insured bank as above provided within two years from the date
of its organization, the Corporation shall wind up the affairs of such
bank, after giving such notice, if any, as the Comptroller of the Currency
may require, and shall certify to the Comptroller of the Currency the
termination of the new bank. Thereafter the Corporation shall be liable
for the obligations of such bank and shall be the owner of its assets. The
provisions of sections 5220 and 5221 of the Revised Statutes (U. S. C.,
title 12, secs. 181 and 182) shall not apply to such new banks.
Sec. 12. (a) Notwithstanding any other provision of law, the Corpo
ration as receiver of a closed national bank or District bank shall not be
required to furnish bond and shall have the right to appoint an agent
or agents to assist it in its duties as such receiver, and all fees, compensa
tion, and expenses of liquidation and administration thereof shall be
fixed by the Corporation, and may be paid by it out of funds coming into
its possession as such receiver.
(b)
Payment of an insured deposit to any person by the Corporation
shall discharge the Corporation, and payment of a transferred deposit
to any person by the new bank or by an insured bank in which a trans
ferred deposit has been made available shall discharge the Corporation
and such new bank or other insured bank, to the same extent that pay
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F E D E R A L D EPOSIT IN SU R AN C E C ORPORATION
ment to such person by the closed bank would have discharged it from
liability for the insured deposit.
(c) Except as otherwise prescribed by the Board of Directors, neither
the Corporation nor such new bank or other insured bank shall be required
to recognize as the owner of any portion of a deposit appearing on the
records of the closed bank under a name other than that of the claimant,
any person whose name or interest as such owner is not disclosed on the
records of such closed bank as part owner of said deposit, if such recogni
tion would increase the aggregate amount of the insured deposits in
such closed bank.
(d) The Corporation may withhold payment of such portion of the
insured deposit of any depositor in a closed bank as may be required
to provide for the payment of any liability of such depositor as a stock
holder of the closed bank, or of any liability of such depositor to the
closed bank or its receiver, which is not offset against a claim due from
such bank, pending the determination and payment of such liability
by such depositor or any other person liable therefor.
(e) If, after the Corporation shall have given at least three months’
notice to the depositor by mailing a copy thereof to his last-known
address appearing on the records of the closed bank, any depositor in
the closed bank shall fail to claim his insured deposit from the Cor
poration within eighteen months after the appointment of the receiver
for the closed bank, or shall fail within such period to claim or arrange
to continue the transferred deposit with the new bank or with the other
insured bank which assumes liability therefor, all rights of the depositor
against the Corporation with respect to the insured deposit, and against
the new bank and such other insured bank with respect to the transferred
deposit, shall be barred, and all rights of the depositor against the closed
bank and its shareholders, or the receivership estate to which the Cor
poration may have become subrogated, shall thereupon revert to the
depositor. The amount of any transferred deposits not claimed within
such eighteen months’ period, shall be refunded to the Corporation.
Sec. 13. (a) Money of the Corporation not otherwise employed shall
be invested in obligations of the United States or in obligations guaranteed
as to principal and interest by the United States: Provided, That the
Corporation shall not sell or purchase any such obligations for its own
account and in its own right and interest, at any one time aggregating
in excess of $100,000, without the approval of the Secretary of the
Treasury: And provided further, That the Secretary of the Treasury
may waive the requirement of his approval with respect to any transac
tion or classes of transactions subject to the provisions of this subsection
for such period of time and under such conditions as he may determine.
(b)
The banking or checking accounts of the Corporation shall be
kept with the Treasurer of the United States, or, with the approval of
the Secretary of the Treasury, with a Federal Reserve bank:, or with
F E D E R A L DEPO SIT IN SU R AN C E ACT
125
a bank designated as a depositary or fiscal agent of the United States:
Provided, That the Secretary of the Treasury may waive the require
ments of this subsection under such conditions as he may determine:
And provided further, That this subsection shall not apply to the estab
lishment and maintenance in any bank for temporary purposes of banking
and checking accounts not in excess of $50,000 in any one bank, or to
the establishment and maintenance in any bank of any banking and
checking accounts to facilitate the payment of insured deposits, or the
making of loans to, or the purchase of assets of, insured banks. When
designated for that purpose by the Secretary of the Treasury, the Cor
poration shall be a depositary of public moneys, except receipts from
customs, under such regulations as may be prescribed by the said Sec
retary, and may also be employed as a financial agent of the Government.
It shall perform all such reasonable duties as depositary of public moneys
and financial agent of the Government as may be required of it.
(c) In order to reopen a closed insured bank or, when the Corporation
has determined that an insured bank is in danger of closing, in order
to prevent such closing, the Corporation, in the discretion of its Board
of Directors, is authorized to make loans to, or purchase the assets of,
or make deposits in, such insured bank, upon such terms and conditions
as the Board of Directors may prescribe, when in the opinion of the
Board of Directors the continued operation of such bank is essential to
provide adequate banking service in the community. Such loans and
deposits may be in subordination to the rights of depositors and other
creditors.
(d) Receivers or liquidators of insured banks closed on account of
inability to meet the demands of their depositors shall be entitled to
offer the assets of such banks for sale to the Corporation or as security
for loans from the Corporation, upon receiving permission from the
appropriate State authority in accordance with express provisions of
State law in the case of insured State banks. The proceeds of every
such sale or loan shall be utilized for the same purposes and in the same
manner as other funds realized from the liquidation of the assets of
such banks. In any case where prior to the effective date of this amend
ment, the Comptroller of the Currency has appointed a receiver of a
closed national bank other than the Corporation, he may, in his discre
tion, pay dividends on proved claims at any time after the expiration
of the period of advertisement made pursuant to section 5235 of the
Revised Statutes (U. S. C., title 12, sec. 193), and no liability shall attach
to the Comptroller of the Currency or to the receiver of any such national
bank by reason of any such payment for failure to pay dividends to a
claimant whose claim is not proved at the time of any such payment.
The Corporation, in its discretion, may make loans on the security of
or may purchase and liquidate or sell any part of the assets of an insured
bm k which is now or may hereafter be closed on account of inability
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FE D E RA L D EPOSIT IN SU R AN C E CORPORATION
to meet the demands of its depositors, but in any case in which the
Corporation is acting as receiver of a closed insured bank, no such loan
or purchase shall be made without the approval of a court of competent
jurisdiction.
(e) Whenever in the judgment of the Board of Directors such action
will reduce the risk or avert a threatened loss to the Corporation and
will facilitate a merger or consolidation of an insured bank with another
insured bank, or will facilitate the sale of the assets of an open or closed
insured bank to and assumption of its liabilities by another insured bank,
the Corporation may, upon such terms and conditions as it may determine,
make loans secured in whole or in part by assets of an open or closed
insured bank, which loans may be in subordination to the rights of
depositors and other creditors, or the Corporation may purchase any
such assets or may guarantee any other insured bank against loss by
reason of its assuming the liabilities and purchasing the assets of an
open or closed insured bank. Any insured national bank or District bank,
or the Corporation as receiver thereof, is authorized to contract for such
sales or loans and to pledge any assets of the bank to secure such loans.
No agreement which tends to diminish or defeat the right, title or
interest of the Corporation in any asset acquired by it under this section,
either as security for a loan or by purchase, shall be valid against the
Corporation unless such agreement (1) shall be in writing, (2) shall have
been executed by the bank and the person or persons claiming an adverse
interest thereunder, including the obligor, contemporaneously with the
acquisition of the asset by the bank, (3) shall have been approved by
the board of directors of the bank or its loan committee, which approval
shall be reflected in the minutes of said board or committee, and (4)
shall have been, continuously, from the time of its execution, an official
record of the bank.
(f) Prior to July 1, 1951, the Corporation shall pay out of its capital
account to the Secretary of the Treasury an amount equal to 2 per
centum simple interest per annum on amounts advanced to the Cor
poration on stock subscriptions by the Secretary of the Treasury and
the Federal Reserve banks, from the time of such advances until the
amounts thereof were repaid. The amount payable hereunder shall be
paid in two equal installments, the first installment to be paid prior
to December 31, 1950.
Sec. 14. 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 insurance 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 section shall not be less than the
F E D E R A L DEPO SIT IN SU R AN C E ACT
127
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 public-debt transac
tions of the United States.
Sec. 15. All notes, debentures, bonds, or other such obligations issued
by the Corporation shall be exempt, both as to principal and interest,
from all taxation (except estate and inheritance taxes) now or hereafter
imposed by the United States, by any Territory, dependency, or posses
sion thereof, or by any State, county, municipality, or local taxing
authority: Provided, That interest upon or any income from any such
obligations and gain from the sale or other disposition of such obligations
shall not have any exemption, as such, and loss from the sale or other
disposition of such obligations shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto. The Corporation, including its franchise, its
capital, reserves, and surplus, and its income, shall be exempt from all
taxation now or hereafter imposed by the United States, by any Territory,
dependency, or possession thereof, or by any State, county, municipality,
or local taxing authority, except that any real property of the Corporation
shall be subject to State, Territorial, county, municipal, or local taxation
to the same extent according to its value as other real property is taxed.
Sec. 16. In order that the Corporation may be supplied with such
forms of notes, debentures, bonds, or other such obligations as it may
need for issuance under this Act, the Secretary of the Treasury is author
ized to prepare such forms as shall be suitable and approved by the
Corporation, to be held in the Treasury subject to delivery, upon order
of the Corporation. The engraved plates, dies, bed pieces, and other
material executed in connection therewith shall remain in the custody
of the Secretary of the Treasury. The Corporation shall reimburse the
Secretary of the Treasury for any expenses incurred in the preparation,
custody, and delivery of such notes, debentures, bonds, or other such
obligations.
Sec. 17. (a) The Corporation shall annually make a report of its
operations to the Congress as soon as practicable after the 1st day of
January in each year.
(b)
The financial transactions of the Corporation shall be audited
by the General Accounting Office in accordance with the principles and
procedures applicable to commercial corporate transactions and under
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such rules and regulations as may be prescribed by the Comptroller
General of the United States. The audit shall be conducted at the place
or places where accounts of the Corporation are normally kept. The
representatives of the General Accounting Office shall have access to all
books, accounts, records, reports, files, and all other papers, things, or
property belonging to or in use by the Corporation pertaining to its
financial transactions and necessary to facilitate the audit, and they
shall be afforded full facilities for verifying transactions with the balances
or securities held by depositaries, fiscal agents, and custodians. All such
books, accounts, records, reports, files, papers, and property of the
Corporation shall remain in possession and custody of the Corporation.
The audit shall begin with financial transactions occurring on and after
August 31, 1948.
(c) A report of the audit for each fiscal year ending on June 30 shall
be made by the Comptroller General to the Congress not later than
January 15 following the close of such fiscal year. On or before December
15 following such fiscal year the Comptroller General shall furnish the
Corporation a short form report showing the financial position of the
Corporation at the close of the fiscal year. The report to the Congress
shall set forth the scope of the audit and shall include a statement of
assets and liabilities and surplus or deficit; a statement of surplus or
deficit analysis; a statement of income and expenses; a statement of
sources and application of funds and such comments and information
as may be deemed necessary to inform Congress of the financial opera
tions and condition of the Corporation, together with such recommenda
tions with respect thereto as the Comptroller General may deem advisable.
The report shall also show specifically any program, expenditure, or
other financial transaction or undertaking observed in the course of the
audit, which, in the opinion of the Comptroller General, has been carried
on or made without authority of law. A copy of each report shall be
furnished to the President, to the Secretary of the Treasury, and to
the Corporation at the time submitted to the Congress.
(d) For the purpose of conducting such audit the Comptroller General
is authorized in his discretion to employ by contract, without regard
to section 3709 of the Revised Statutes, professional services of firms
and organizations of certified public accountants, with the concurrence
of the Corporation, for temporary periods or for special purposes. The
Corporation shall reimburse the General Accounting Office for the cost
of any such audit as billed therefor by the Comptroller General, and
the General Accounting Office shall deposit the sums so reimbursed into
the Treasury as miscellaneous receipts.
Sec. 18. (a) Every insured bank shall display at each place of business
maintained by it a sign or signs, and shall include a statement to the
effect that its deposits are insured by the Corporation in all of its ad
vertisements: Provided, That the Board of Directors may exempt from
F E D E RA L D EPOSIT IN SU R AN C E AC T
129
this requirement advertisements which do not relate to deposits or when
it is impractical to include such statement therein. The Board of Directors
shall prescribe by regulation the forms of such signs and the manner
of display and the substance of such statements and the manner of use.
For each day an insured bank continues to violate any provisions of this
subsection or any lawful provisions of said regulations, it shall be subject
to a penalty of not more than $100, which the Corporation may recover
for its use.
(b) No insured bank shall pay any dividends on its capital stock or
interest on its capital notes or debentures (if such interest is required
to be paid only out of net profits) or distribute any of its capital assets
while it remains in default in the payment of any assessment due to the
Corporation; and any director or officer of any insured bank who par
ticipates in the declaration or payment of any such dividend or interest
or in any such distribution shall, upon conviction, be fined not more
than $1,000 or imprisoned not more than one year, or both: Provided,
That, if such default is due to a dispute between the insured bank and
the Corporation over the amount of such assessment, this subsection
shall not apply, if such bank shall deposit security satisfactory to the
Corporation for payment upon final determination of the issue.
(c) Without prior written consent by the Corporation, no insured
bank shall (1) merge or consolidate with any noninsured bank or institu
tion or convert into a noninsured bank or institution or (2) assume
liability to pay any deposits made in, or similar liabilities of, any non
insured bank or institution or (3) transfer assets to any noninsured bank
or institution in consideration of the assumption of liabilities for any
portion of the deposits made in such insured bank. No insured bank
shall convert into an insured State bank if its capital stock, or its surplus
will be less than the capital stock or surplus, respectively, of the converting
bank at the time of the shareholders’ meeting approving such conversion,
without prior written consent by the Comptroller of the Currency if the
resulting bank is to be a District bank, or by the Board of Governors
of the Federal Reserve System if the resulting bank is to be a State
member bank (except a District bank), or by the Corporation if the
resulting bank is to be a State nonmember insured bank (except a District
bank). No insured bank shall (i) merge or consolidate with an insured
State bank under the charter of a State bank or (ii) assume liability
to pay any deposits made in another insured bank, if the capital stock
or surplus of the resulting or assuming bank will be less than the aggregate
capital stock or aggregate surplus, respectively, of all the merging or
consolidating banks or of all the parties to the assumption of liabilities,
at the time of the shareholders’ meetings which authorized the merger
or consolidation or at the time of the assumption of liabilities, unless
the Comptroller of the Currency shall give prior written consent if the
assuming bank is to be a national bank or the assuming or resulting
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bank is to be a District bank; or unless the Board of Governors of the
Federal Reserve System gives prior written consent if the assuming or
resulting bank is to be a State member bank (except a District bank);
or unless the Corporation gives prior written consent if the assuming
or resulting bank is to be a nonmember insured bank (except a District
bank). No insured State nonmember bank (except a District bank)
shall, without the prior consent of the Corporation, reduce the amount
or retire any part of its common or preferred capital stock, or retire any
part of its capital notes or debentures.
(d) No State nonmember insured bank (except a District bank)
shall establish and operate any new branch unless it shall have the
prior written consent of the Corporation, and no State nonmember
insured bank (except a District bank) shall move its main office or any
branch from one location to another without such consent. The factors
to be considered in granting or withholding the consent of the Corporation
under this subsection shall be those enumerated in section 6 of this Act.
(e) The Corporation may require any insured bank to provide pro
tection and indemnity against burglary, defalcation, and other similar
insurable losses. Whenever any insured bank refuses to comply with any
such requirement the Corporation may contract for such protection and
indemnity and add the cost thereof to the assessment otherwise payable
by such bank.
(f) Whenever any insured bank (except a national bank or a District
bank), after written notice of the recommendations of the Corporation
based on a report of examination of such bank by an examiner of the
Corporation, shall fail to comply with such recommendations within
one hundred and twenty days after such notice, the Corporation shall
have the power, and is hereby authorized, to publish only such part
of such report of examination as relates to any recommendation not
complied with: Provided, That notice of intention to make such publi
cation shall be given to the bank at least ninety days before such publica
tion is made.
(g) The Board of Directors shall by regulation prohibit the payment
of interest on demand deposits in insured nonmember banks and for
such purpose it may define the term “ demand deposits” ; but such ex
ceptions from this prohibition shall be made as are now or may hereafter
be prescribed with respect to deposits payable on demand in member
banks by section 19 of the Federal Reserve Act, as amended, or by
regulation of the Board of Governors of the Federal Reserve System.
The Board of Directors shall from time to time limit by regulation the
rates of interest or dividends which may be paid by insured nonmember
banks on time and savings deposits, but such regulations shall be con
sistent with the contractual obligations of such banks to their depositors.
For the purpose of fixing such rates of interest or dividends, the Board
of Directors shall by regulation prescribe different rates for such pay
FE D E R A L D EPOSIT IN SU R AN C E ACT
131
ment on time and savings deposits having different maturities, or subject
to different conditions respecting withdrawal or repayment, or subject
to different conditions by reason of different locations, or according to
the varying discount rates of member banks in the several Federal
Reserve districts. The Board of Directors shall by regulation define
what constitutes time and savings deposits in an insured nonmember
bank. Such regulations shall prohibit any insured nonmember bank
from paying any time deposit before its maturity except upon such
conditions and in accordance with such rules and regulations as may be
prescribed by the Board of Directors, and from waiving any requirement
of notice before payment of any savings deposit except as to all savings
deposits having the same requirement. For each violation of any provision
of this subsection or any lawful provision of such regulations relating
to the payment of interest or dividends on deposits or to withdrawal
of deposits, the offending bank shall be subject to a penalty of not more
than $100, which the Corporation may recover for its use.
(h)
Any insured bank which willfully fails or refuses to file any certified
statement or pay any assessment required under this Act shall be subject
to a penalty of not more than $100 for each day that such violations
continue, which penalty the Corporation may recover for its use: Provided,
That this subsection shall not be applicable under the circumstances
stated in the proviso of subsection (b) of this section.
Sec. 19. Except with the written consent of the Corporation, no
person shall serve as a director, officer, or employee of an insured bank
who has been convicted, or who is hereafter convicted, of any criminal
offense involving dishonesty or a breach of trust. For each willful viola
tion of this prohibition, the bank involved shall be subject to a penalty
of not more than $100 for each day this prohibition is violated, which
the Corporation may recover for its use.
Sec. 20. It is not the purpose of this Act to discriminate in any manner
against State nonmember banks and in favor of national or member
banks; but the purpose is to provide all banks with the same opportunity
to obtain and enjoy the benefits of this Act. No bank shall be discrimi
nated against because its capital stock is less than the amount required
for eligibility for admission into the Federal Reserve System.
Sec. 21. The provisions of this Act limiting the insurance of the deposits
of any depositor to a maximum less than the full amount shall be in
dependent and separable from each and all of the provisions of this Act.
Sec. 3. (a) The third paragraph of section 709, title 18, United States
Code, is amended to read as follows:
“ Whoever, except as expressly authorized by Federal law, uses the
words ‘Federal Deposit’, ‘Federal Deposit Insurance’, or ‘Federal Deposit
Insurance Corporation’ or a combination of any three of these words,
as the name or a part thereof under which he or it does business, or
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advertises or otherwise represents falsely by any device whatsoever
that his or its deposit liabilities, obligations, certificates, or shares are
insured or guaranteed by the Federal Deposit Insurance Corporation,
or by the United States or by any instrumentality thereof, or whoever
advertises that his or its deposits, shares, or accounts are federally in
sured, or falsely advertises or otherwise represents by any device what
soever the extent to which or the manner in which the deposit liabilities
of an insured bank or banks are insured by the Federal Deposit Insurance
Corporation; or” .
(b) The amendment made by subsection (a) of this section shall
become effective on January 1, 1951.
Sec. 4. Section 220, title 18, United States Code, is amended to read
as follows:
“ Whoever, being an officer, director, employee, agent, or attorney
of any bank, the deposits of which are insured by the Federal Deposit
Insurance Corporation, of a Federal intermediate credit bank, or of a
National Agricultural Credit Corporation, except as provided by law,
stipulates for or receives or consents or agrees to receive any fee, com
mission, gift, or thing of value, from any person, firm, or corporation,
for procuring or endeavoring to procure for such person, firm, or cor
poration, or for any other person, firm, or corporation, from any such
bank or corporation, any loan or extension or renewal of loan or sub
stitution of security, or the purchase or discount or acceptance of any
paper, note, draft, check, or bill of exchange by any such bank or cor
poration, shall be fined not more than $5,000 or imprisoned not more
than one year or both.”
Sec. 5. Subsection (b) of section 405 of Title IV of the National
Housing Act, as amended, is amended to read as follows:
“ (b) In the event of a default by any insured institution, payment
of each insured account in such insured institution which is surrendered
and transferred to the Corporation shall be made by the Corporation
as soon as possible either (1) by cash or (2) by making available to each
insured member a transferred account in a new insured institution in
the same community or in another insured institution in an amount
equal to the insured account of such insured member: Provided, That
the Corporation, in its discretion, may require proof of claims to be
filed before paying the insured accounts, and that in any case where
the Corporation is not satisfied as to the validity of a claim for an insured
account, it may require the final determination of a court of competent
jurisdiction before paying such claim.”
Approved September 21, 1950.
L A W S A P P L IC A B L E TO TH E C O RPORATION AND IN SU R ED B A N K S
133
LAWS APPLICABLE TO FEDERAL DEPOSIT INSURANCE
CORPORATION AND INSURED BANKS
Principals in crimes
(a) Whoever commits an offense against the United States, or aids,
abets, counsels, commands, induces, or procures its commission, is a
principal.
(b) Whoever causes an act to be done, which if directly performed
by him would be an offense against the United States, is also a principal
and punishable as such. (18 U. S. C. 2)
Offer of bribe to officer or other person
Whoever promises, offers, or gives any money or thing of value, or
makes or tenders any check, order, contract, undertaking, obligation,
gratuity, or security for the payment of money or for the delivery or
conveyance of anything of value, to any officer or employee or person
acting for or on behalf of the United States, or any department or agency
thereof, in any official function, under or by authority of any such de
partment or agency or to any officer or person acting for or on behalf
of either House of Congress, or of any committee of either House, or
both Houses thereof, with intent to influence his decision or action on
any question, matter, cause, or proceeding which may at any time be
pending, or which may by law be brought before him in his official
capacity, or in his place of trust or profit, or with intent to influence him
to commit or aid in committing, or to collude in, or allow, any fraud, or
make opportunity for the commission of any fraud, on the United States,
or to induce him to do or omit to do any act in violation of his lawful
duty, shall be fined not more than three times the amount of such money
or value of such thing or imprisoned not more than three years, or both.
This section shall not apply to violations of section 212 of this title.
(18 U. S. C. 201)
Acceptance or solicitation by officer or other person
Whoever, being an officer or employee of, or person acting for or on
behalf of the United States, in any official capacity, under or by virtue
of the authority of any department or agency thereof, or an officer or
person acting for or on behalf of either House of Congress, or of any
committee of either House, or of both Houses thereof, asks, accepts, or
receives any money, or any check, order, contract, promise, undertaking,
obligation, gratuity, or security for the payment of money, or for the
delivery or conveyance of anything of value, with intent to have his
decision or action on any question, matter, cause, or proceeding which
may at any time be pending, or which may by law be brought before
him in his official capacity, or in his place of trust or profit, influenced
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thereby, shall be fined not more than three times the amount of such
money or value of such thing or imprisoned not more than three years,
or both; and shall forfeit his office or place and be disqualified from
holding any office of honor, trust, or profit under the United States.
This section shall not apply to violations of section 213 of this title.
(18 U. S. C. 202)
Offer of loan or gratuity to bank examiner
Whoever, being an officer, director or employee of a bank which is a
member of the Federal Reserve System or the deposits of which are
insured by the Federal Deposit Insurance Corporation, or of any National
Agricultural Credit Corporation, or of any land bank, national farm loan
association or other institution subject to examination by a farm credit
examiner, makes or grants any loan or gratuity, to any examiner or
assistant examiner, who examines or has authority to examine such bank,
corporation, or institution, shall be fined not more than $5,000 or im
prisoned not more than one year, or both; and may be fined a further
sum equal to the money so loaned or gratuity given.
The provisions of this section and section 218 of this title shall apply
to all public examiners and assistant examiners who examine member
banks of the Federal Reserve System or insured banks, or National
Agricultural Credit Corporations, whether appointed by the Comptroller
of the Currency, by the Board of Governors of the Federal Reserve
System, by a Federal Reserve Agent, by a Federal Reserve Bank or
by the Federal Deposit Insurance Corporation, or appointed or elected
under the laws of any state; but shall not apply to private examiners
or assistant examiners employed only by a clearing-house association
or by the directors of a bank. (18 U. S. C. 217)
Acceptance of loan or gratuity by bank examiner
Whoever, being an examiner or assistant examiner of member banks
of the Federal Reserve System or banks the deposits of which are insured
by the Federal Deposit Insurance Corporation, or a farm credit examiner or
examiner of National Agricultural Credit Corporations, accepts a loan or gra
tuity from any bank, corporation, association or organization examined by
him or from any person connected therewith, shall be fined not more
than $5,000 or imprisoned not more than one year, or both; and may
be fined a further*sum equal to the money so loaned or gratuity given,
and shall be disqualified from holding office as such examiner. (18 U.
S. C. 218)
Receipt of commissions or gifts for procuring loans
Whoever, being an officer, director, employee, agent, or attorney of
any bank, the deposits of which are insured by the Federal Deposit
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Insurance Corporation, of a Federal intermediate credit bank, or of a
National Agricultural Credit Corporation, except as provided by law,
stipulates for or receives or consents or agrees to receive any fee, com
mission, gift, or thing of value, from any person, firm, or corporation,
for procuring or endeavoring to procure for such person, firm, or cor
poration, or for any other person, firm, or corporation, from any such
bank or corporation, any loan or extension or renewal of loan or sub
stitution of security, or the purchase or discount or acceptance of any
paper, note, draft, check, or bill of exchange by any such bank or cor
poration, shall be fined not more than $5,000 or imprisoned not more
than one year or both. (18 U. S. C. 220)
Compensation to Members of Congress, officers and
others in matters affecting the Government
Whoever, being a Member of or Delegate to Congress, or a Resident
Commissioner, either before or after he has qualified, or the head of a
department, or other officer or employee of the United States, or any
department or agency thereof, directly or indirectly receives or agrees to
receive, any compensation for any services rendered or to be rendered,
either by himself or another, in relation to any proceeding, contract,
claim, controversy, charge, accusation, arrest, or other matter in which
the United States is a party or directly or indirectly interested, before
any department, agency, court martial, officer, or any civil, military, or
naval commission, shall be fined not more than $10,000 or imprisoned
not more than two years, or both; and shall be incapable of holding
any office of honor, trust, or profit under the United States. * * * * *
This section shall not apply to any person because of his membership
in the National Guard of the District of Columbia nor to any person
specially excepted by Act of Congress. (18 U. S. C. 281)
Officers or employees interested in claims against
the Government
Whoever, being an officer or employee of the United States or any
department or agency thereof, or of the Senate or House of Repre
sentatives, acts as an agent or attorney for prosecuting any claim against
the United States, or aids or assists in the prosecution or support of any
such claim otherwise than in the proper discharge of his official duties,
or receives any gratuity, or any share of or interest in any such claim in
consideration of assistance in the prosecution of such claim, shall be
fined not more than $10,000 or imprisoned not more than one year,
or both. * * * * *
This section shall not apply to any person because of his membership
in the National Guard of the District of Columbia nor to any person
specially excepted by enactment of Congress. (18 U. S. C. 283)
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Disqualifications of former officers and employees
in matters connected with former duties
Whoever, having been employed in any agency of the United States,
including commissioned officers assigned to duty in such agency, within
two years after the time when such employment or service has ceased,
prosecutes or acts as counsel, attorney, or agent for prosecuting, any
claims against the United States involving any subject matter directly
connected with which such person was so employed or performed duty,
shall be fined not more than $10,000 or imprisoned not more than one
year, or both. (18 U. S. C. 284)
False, fictitious or fraudulent claims
Whoever makes or presents to any person or officer in the civil, military,
or naval service of the United States, or to any department or agency
thereof, any claim upon or against the United States, or any department
or agency thereof, knowing such claim to be false, fictitious, or fraudulent,
shall be fined not more than $10,000 or imprisoned not more than five
years, or both. (18 U. S. C. 287)
Contracts by Member of Congress; exceptions
Whoever, being a Member of or Delegate to Congress, or a Resident
Commissioner, either before or after he has qualified, directly or indirectly,
himself, or by any other person in trust for him, or for his use or benefit,
or on his account, undertakes, executes, holds, or enjoys, in whole or in
part, any contract or agreement, made or entered into in behalf of the
United States or any agency thereof, by any officer or person authorized
to make contracts on its behalf, shall be fined not more than $3,000.
All contracts or agreements made in violation of this section shall be
void; and whenever any sum of money is advanced by the United States
or any agency thereof, in consideration of any such contract or agreement,
it shall forthwith be repaid; and in case of failure or refusal to repay the
same when demanded by the proper officer of the department or agency
under whose authority such contract or agreement shall have been made
or entered into, suit shall at once be brought against the person so failing
or refusing and his sureties for the recovery of the money so advanced.
(18 U. S. C. 431)
Officer or employee contracting with Member of Congress
Whoever, being an officer or employee of the United States, on behalf
of the United States or any agency thereof, directly or indirectly makes
or enters into any contract, bargain, or agreement, with any Member
of or Delegate to Congress, or any Resident Commissioner, either before
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or after he has qualified, shall be fined not more than $3,000. (18 U.
S. C. 432)
Bonds and obligations of certain lending agencies
Whoever falsely makes, forges, counterfeits or alters any note, bond,
debenture, coupon, obligation, instrument, or writing in imitation or
purporting to be in imitation of, a note, bond, debenture, coupon, obliga
tion, instrument or writing, issued by the Reconstruction Finance Cor
poration, Federal Deposit Insurance Corporation, Home Owners’ Loan
Corporation, Farm Credit Administration, Federal Housing Adminis
tration, Federal Farm Mortgage Corporation or any land bank, inter
mediate credit bank, bank for cooperatives or any lending, mortgage,
insurance, credit or savings and loan corporation or association authorized
or acting under the laws of the United States, shall be fined not more
than $10,000 or imprisoned not more than five years, or both.
Whoever passes, utters, or publishes, or attempts to pass, utter or
publish any note, bond, debenture, coupon, obligation, instrument or
document knowing the same to have been falsely made, forged, counter
feited or altered, contrary to the provisions of this section, shall be fined
not more than $10,000 or imprisoned not more than five years, or both.
(18 U. S. C. 493)
Public money, property or records; theft of
Whoever embezzles, steals, or purloins, or knowingly converts to his
use or the use of another, or without authority, sells, conveys or disposes
of any record, voucher, money, or thing of value of the United States,
or of any department or agency thereof, or any property made or being
made under contract for the United States or any department or agency
thereof; or
Whoever receives, conceals, or retains the same with intent to convert
it to his use or gain, knowing it to have been embezzled, stolen, purloined
or converted—
Shall be fined not more than $10,000 or imprisoned not more than ten
years, or both; but if the value of such property does not exceed the sum
of $100, he shall be fined not more than $1,000 or imprisoned not more
than one year, or both.
The word “ value” means face, par, or market value, or cost price,
either wholesale or retail, whichever is greater. (18 U. S. C. 641)
Officer or employee of United States converting property
of another
Whoever, being an officer or employee of the United States or of any
department or agency thereof, embezzles or wrongfully converts to
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F E D E R A L DEPO SIT IN SU R AN C E CORPORATION
his own use the money or property of another which comes into his
possession or under his control in the execution of such office or em
ployment, or under color or claim of authority as such officer or employee,
shall be fined not more than the value of the money and property thus
embezzled or converted, or imprisoned not more than ten years, or both;
but if the sum embezzled is $100 or less, he shall be fined not more than
$1,000 or imprisoned not more than one year, or both. (18 U. 13. C. 654)
Theft by bank examiner
Whoever, being a bank examiner or assistant examiner, steals, or
unlawfully takes, or unlawfully conceals any money, note, draft, bond,
or security or any other property of value in the possession of any bank
or banking institution which is a member of the Federal Reserve System
or which is insured by the Federal Deposit Insurance Corporation, or
from any safe deposit box in or adjacent to the premises of such bank,
shall be fined not more than $5,000 or imprisoned not more than five
years, or both; but if the amount taken or concealed does not exceed
$100, he shall be fined not more than $1,000 or imprisoned not more
than one year, or both; and shall be disqualified from holding office as
a national bank examiner or Federal Deposit Insurance Corporation
examiner.
This section shall apply to all public examiners and assistant examiners
who examine member banks of the Federal Reserve System or banks
the deposits of which are insured by the Federal Deposit Insurance
Corporation, whether appointed by the Comptroller of the Currency,
by the Board of Governors of the Federal Reserve System, by a Federal
Reserve Agent, by a Federal Reserve bank, or by the Federal Deposit
Insurance Corporation, or appointed or elected under the laws of any
State; but shall not apply to private examiners or assistant examiners
employed only by a clearing-house association or by the directors of
a bank. (18 U. S. C. 655)
Theft, embezzlement, or misapplication by bank officer or
employee
Whoever, being an officer, director, agent or employee of, or con
nected in any capacity with any Federal Reserve bank, member bank,
national bank or insured bank, or a receiver of a national bank, or any
agent or employee of the receiver, or a Federal Reserve Agent, or an
agent or employee of a Federal Reserve Agent or of the Board of Gov
ernors of the Federal Reserve System, embezzles, abstracts, purloins
or willfully misapplies any of the moneys, funds or credits of such bank
or any moneys, funds, assets or securities intrusted to the custody or
care of such bank, or to the custody or care of any such agent, officer,
director, employee or receiver, shall be fined not more than $5,000 or
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imprisoned not more than five years, or both; but if the amount embezzled,
abstracted, purloined or misapplied does not exceed $100, he shall be
fined not more than $1,000 or imprisoned not more than one year, or
both.
As used in this section, the term “ national bank” is synonymous
with “ national banking association” ; “ member bank” means and in
cludes any national bank, state bank, or bank and trust company which
has become a member of one of the Federal Reserve banks; and “ insured
bank” includes any bank, banking association, trust company, savings
bank, or other banking institution, the deposits of which are insured by
the Federal Deposit Insurance Corporation. (18 U. S. C. 656)
Embezzlement from lending, credit and insurance institutions
Whoever, being an officer, agent or employee of or connected in any
capacity with the Reconstruction Finance Corporation, Federal Deposit
Insurance Corporation, Home Owners’ Loan Corporation, Farm Credit
Administration, Federal Housing Administration, Federal Farm Mort
gage Corporation, Federal Crop Insurance Corporation, Farmers’ Home
Corporation, the Secretary of Agriculture acting through the Farmers’
Home Administration, or any land bank, intermediate credit bank,
bank for cooperatives or any lending, mortgage, insurance, credit or
savings and loan corporation or association authorized or acting under
the laws of the United States, and whoever, being a receiver of any
such institution, or agent or employee of the receiver, embezzles, ab
stracts, purloins or willfully misapplies any moneys, funds, credits,
securities or other things of value belonging to such institution, or
pledged or otherwise intrusted to its care, shall be fined not more than
$5,000 or imprisoned not more than five years, or both; but if the amount
or value embezzled, abstracted, purloined or misapplied does not exceed
$100, he shall be fined not more than $1,000 or imprisoned not more
than one year, or both. (18 U. S. C. 657)
Official badges, identification cards, other insignia; misuse of
Whoever manufactures, sells, or possesses any badge, identification
card, or other insignia, of the design prescribed by the head of any
department or agency of the United States for use by any officer or
employee thereof, or any colorable imitation thereof, or photographs,
prints, or in any other manner makes or executes any engraving, photo
graph, print, or impression in the likeness of any such badge, identifica
tion card, or other insignia, or any colorable imitation thereof, except as
authorized under regulations made pursuant to law, shall be fined not
more than $250 or imprisoned not more than six months, or both. (18
U. S. C. 701)
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False advertising or misuse of names to indicate Federal agency
Whoever, except as permitted by the laws of the United States, uses
the words “ national” , “ Federal” , “ United States” , “ reserve” , or “ De
posit Insurance” as part of the business or firm name of a person, cor
poration, partnership, business trust, association or other business
entity engaged in the banking, loan, building and loan, brokerage,
factorage, insurance, indemnity, savings or trust business; or
Whoever falsely advertises or represents, or publishes or displays
any sign, symbol or advertisement reasonably calculated to convey the
impression that a nonmember bank, banking association, firm or partner
ship is a member of the Federal reserve system; or
Whoever, except as expressly authorized by Federal law, uses the
words “ Federal Deposit” , “ Federal Deposit Insurance” , or “ Federal
Deposit Insurance Corporation” or a combination of any three of these
words, as the name or a part thereof under which he or it does business,
or advertises or otherwise represents falsely by any device whatsoever
that his or its deposit liabilities, obligations, certificates, or shares are
insured or guaranteed by the Federal Deposit Insurance Corporation,
or by the United States or by any instrumentality thereof, or whoever
advertises that his or its deposits, shares, or accounts are federally insured,
or falsely advertises or otherwise represents by any device whatsoever
the extent to which or the manner in which the deposit liabilities of an
insured bank or banks are insured by the Federal Deposit Insurance
Corporation; * * * * * *
Shall be punished as follows: a corporation, partnership, business trust,
association, or other business entity, by a fine of not more than $1,000;
an officer or member thereof participating or knowingly acquiescing
in such violation or any individual violating this section, by a fine of
not more than $1,000 or imprisonment for not more than one year,
or both.
This section shall not make unlawful the use of any name or title
which was lawful on the date of enactment of this title.
A violation of this section may be enjoined at the suit of the United
States Attorney, upon complaint by any duly authorized representative
of any department or agency of the United States. (18 U. S. C. 709)
Officer or employee of the United States, impersonating
Whoever falsely assumes or pretends to be an officer or employee
acting under the authority of the United States or any department,
agency or officer thereof, and acts as such, or in such pretended character
demands or obtains any money, paper, document, or thing of value,
shall be fined not more than $1,000 or imprisoned not more than three
years, or both. (18 U. S. C. 912)
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False statements or entries generally
Whoever, in any matter within the jurisdiction of any department or
agency of the United States knowingly and willfully falsifies, conceals
or covers up by any trick, scheme, or device a material fact, or makes
any false, fictitious or fraudulent statements or representations, or
makes or uses any false writing or document knowing the same to con
tain any false, fictitious or fraudulent statement or entry, shall be fined
not more than $10,000 or imprisoned not more than five years, or both.
(18 U. S. C. 1001)
Possession of false papers to defraud the United States
Whoever, knowingly and with intent to defraud the United States,
or any agency thereof, possesses any false, altered, forged or counter
feited writing or document for the purpose of enabling another to obtain
from the United States, or from any agency, officer or agent thereof,
any sum of money, shall be fined not more than $10,000 or imprisoned
not more than five years, or both. (18 U. S. C. 1002)
False certification of checks
Whoever, being an officer, director, agent, or employee of any Federal
Reserve bank or member bank of the Federal Reserve System, certifies
a check before the amount thereof has been regularly deposited in the
bank by the drawer thereof, or resorts to any device, or receives any
fictitious obligation, directly or collaterally, in order to evade any of
the provisions of law relating to certification of checks, shall be fined
not more than $5,000 or imprisoned not more than five years, or both.
(18 U. S. C. 1004)
False bank entries, reports and transactions
Whoever, being an officer, director, agent or employee of any Federal
Reserve bank, member bank, national bank or insured bank, without
authority from the directors of such bank, issues or puts in circulation
any notes of such bank; or
Whoever, without such authority, makes, draws, issues, puts forth,
or assigns any certificate of deposit, draft, order, bill of exchange, ac
ceptance, note, debenture, bond, or other obligation, or mortgage,
judgment or decree; or
Whoever makes any false entry in any book, report, or statement of
such bank with intent to injure or defraud such bank, or any other
company, body politic or corporate, or any individual person, or to
deceive any officer of such bank, or the Comptroller of the Currency, or
the Federal Deposit Insurance Corporation, or any agent or examiner
appointed to examine the affairs of such bank, or the Board of Governors
of the Federal Reserve System—
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Shall be fined not more than $5,000 or imprisoned not more than five
years, or both.
As used in this section, the term “ national bank” is synonymous with
“ national banking association” ; “ member bank” means and includes
any national bank, state bank, or bank or trust company, which has
become a member of one of the Federal Reserve banks; and “ insured
bank” includes any state bank, banking association, trust company,
savings bank, or other banking institution, the deposits of which are
insured by the Federal Deposit Insurance Corporation. (18 U. S. C. 1005)
Federal credit institution false entries, reports and transactions
Whoever, being an officer, agent or employee of or connected in any
capacity with the Reconstruction Finance Corporation, Federal Deposit
Insurance Corporation, Home Owners’ Loan Corporation, Farm Credit
Administration, Federal Housing Administration, Federal Farm Mort
gage Corporation, Federal Crop Insurance Corporation, Farmers’ Home
Corporation, the Secretary of Agriculture acting through the Farmers’
Home Administration, or any land bank, intermediate credit bank,
bank for cooperatives or any lending, mortgage, insurance, credit or
savings and loan corporation or association authorized or acting under
the laws of the United States, with intent to defraud any such institution
or any other company, body politic or corporate, or any individual,
or to deceive any officer, auditor, examiner or agent of any such in
stitution or of department or agency of the United States, makes any
false entry in any book, report or statement of or to any such institution,
or without being duly authorized, draws any order or bill of exchange,
makes any acceptance, or issues, puts forth or assigns any note, debenture,
bond or other obligation, or draft, bill of exchange, mortgage, judgment,
or decree, or, with intent to defraud the United States or any agency
thereof, or any corporation, institution, or association referred to in
this section, participates or shares in or receives directly or indirectly
any money, profit, property, or benefits through any transaction, loan,
commission, contract, or any other act of any such corporation, institu
tion, or association, shall be fined not more than $10,000 or imprisoned
not more than five years, or both. (18 U. S. C. 1006)
Fraud to influence Federal Deposit Insurance Corporation
Whoever, for the purpose of obtaining any loan from the Federal De
posit Insurance Corporation, or any extension or renewals thereof, or the
acceptance, release, or substitution of security therefor, or for the purpose
of inducing the Federal Deposit Insurance Corporation to purchase any
assets, or for the purpose of obtaining the payment of any insured deposit
or transferred deposit or the allowance, approval, or payment of any
claim, or for the purpose of influencing in any way the action of the
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Federal Deposit Insurance Corporation, makes any statement knowing
it to be false, or willfully overvalues any security, shall be fined not
more than $5,000 or imprisoned not more than two years, or both.
(18 U. S. C. 1007)
False acknowledgement of appearance or oath
Whoever, being an officer authorized to administer oaths or to take
and certify acknowledgments, knowingly makes any false acknowledg
ment, certificate, or statement concerning the appearance before him or
the taking of an oath or affirmation by any person with respect to any
proposal, contract, bond, undertaking, or other matter submitted to,
made with, or taken on behalf of the United States or any department
or agency thereof, concerning which an oath or affirmation is required
by law or lawful regulation, or with respect to the financial standing
of any principal, surety, or other party to any such proposal, contract,
bond, undertaking, or other instrument, shall be fined not more than
$2,000 or imprisoned not more than two years, or both. (18 U. S. C. 1016)
Government seals wrongfully used and instruments
wrongfully sealed
Whoever fraudulently or wrongfully affixes or impresses the seal of
any department or agency of the United States, to or upon any certificate,
instrument, commission, document, or paper or with knowledge of its
fraudulent character, with wrongful or fraudulent intent, uses, buys,
procures, sells, or transfers to another any such certificate, instrument,
commission, document, or paper, to which or upon which said seal has
been so fraudulently affixed or impressed, shall be fined not more than
$5,000 or imprisoned not more than five years, or both. (18 U. S. C. 1017)
False official certificates or writings
Whoever, being a public officer or other person authorized by any
law of the United States to make or give a certificate or other writing,
knowingly makes and delivers as true such a certificate or writing,
containing any statement which he knows to be false, in a case where
the punishment thereof is not elsewhere expressly provided by law,
shall be fined not more than $500 or imprisoned not more than one year,
or both. (18 U. S. C. 1018)
Influencing or injuring witness before agencies and committees
Whoever corruptly, or by threats or force, or by any threatening
letter or communication, endeavors to influence, intimidate, or impede
any witness in any proceeding pending before any department or agency
of the United States, or in connection with any inquiry or investigation
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FE D E RA L DEPOSIT IN SU R AN C E CORPORATION
being had by either House, or any committee of either House, or any
joint committee of the Congress; or
Whoever injures any party or witness in his person or property on
account of his attending or having attended such proceeding, inquiry,
or investigation, or on account of his testifying or having testified to
any matter pending therein; or
Whoever corruptly, or by threats or force, or by any threatening
letter or communication influences, obstructs, or impedes, or endeavors
to influence, obstruct, or impede the due and proper administration of
the law under which such proceeding is being had before such depart
ment or agency of the United States, or the due and proper exercise of
the power of inquiry under which such inquiry or investigation is being
had by either House, or any committee of either House or any joint
committee of the Congress—
Shall be fined not more than $5,000 or imprisoned not more than
five years, or both. (18 U. S. C. 1505)
Use of mail to defraud or swindle
Whoever, having devised or intending to devise any scheme or artifice
to defraud, or for obtaining money or property by means of false or
fraudulent pretenses, representations, or promises, or to sell, dispose of,
loan, exchange, alter, give away, distribute, supply, or furnish or procure
for unlawful use any counterfeit or spurious coin, obligation, security,
or other article, or anything represented to be or intimated or held out
to be such counterfeit or spurious article, for the purpose of executing
such scheme or artifice or attempting so to do, places in any post office
or authorized depository for mail matter, any matter or thing whatever
to be sent or delivered by the Post Office Department, or takes or receives
therefrom, any such matter or thing, or knowingly causes to be delivered
by mail according to the direction thereon, or at the place at which it
is directed to be delivered by the person to whom it is addressed, any
such matter or thing, shall be fined not more than $1,000 or imprisoned
not more than five years, or both. (18 U. S. C. 1341)
Perjury generally
Whoever, having taken an oath before a competent tribunal, officer,
or person, in any case in which a law of the United States authorizes
an oath to be administered, that he will testify, declare, depose, or certify
truly, or that any written testimony, declaration, deposition, or cer
tificate by him subscribed, is true, willfully and contrary to such oath
states or subscribes any material matter which he does not believe to
be true, is guilty of perjury, and shall, except as otherwise expressly
provided by law, be fined not more than $2,000 or imprisoned not more
than five years, or both. (18 U. S. C. 1621)
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Subornation of perjury
Whoever procures another to commit any perjury is guilty of suborna
tion of perjury, and shall be fined not more than $2,000 or imprisoned
not more than five years, or both. (18 U. S. C. 1622)
Disclosure of confidential information generally
Whoever, being an officer or employee of the United States or of any
department or agency thereof, publishes, divulges, discloses, or makes
known in any manner or to any extent not authorized by law any in
formation coming to him in the course of his employment or official
duties or by reason of any examination or investigation made by, or
return, report or record made to or filed with, such department or agency
or officer or employee thereof, which information concerns or relates
to the trade secrets, processes, operations, style of work, or apparatus,
or to the identity, confidential statistical data, amount or source of any
income, profits, losses, or expenditures of any person, firm, partnership,
corporation, or association; or permits any income return or copy thereof
or any book containing any abstract or particulars thereof to be seen
or examined by any person except as provided by law; shall be fined
not more than $1,000, or imprisoned not more than one year, or both;
and shall be removed from office or employment. (18 U. S. C. 1905)
Disclosure of information by bank examiner
Whoever, being an examiner, public or private, discloses the names
of borrowers or the collateral for loans of any member bank of the Federal
Reserve System, or bank insured by the Federal Deposit Insurance
Corporation, examined by him, to other than the proper officers of such
bank, without first having obtained the express permission in writing
from the Comptroller of the Currency as to a national bank, the Board
of Governors of the Federal Reserve System as to a State member bank,
or the Federal Deposit Insurance Corporation as to any other insured
bank, or from the board of directors of such bank, except when ordered
to do so by a court of competent jurisdiction, or by direction of the
Congress of the United States, or either House thereof, or any committee
of Congress or either House duly authorized, shall be fined not more
than $5,000 or imprisoned not more than one year, or both. (18 U. S.
C. 1906)
Examiner performing other services
Whoever, being a national-bank examiner, Federal Deposit Insurance
Corporation examiner, farm credit examiner, or an examiner of National
Agricultural Credit Corporations, performs any other service, for com
pensation, for any bank or banking or loan association, or for any officer,
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director, or employee thereof, or for any person connected therewith
in any capacity, shall be fined not more than $5,000 or imprisoned not
more than one year, or both. (18 U. S. C. 1909)
Bank robbery and incidental crimes
(a) Whoever, by force and violence, or by intimidation, takes or at
tempts to take, from the person or presence of another any property
or money or any other thing of value belonging to, or in the care, custody,
control, management, or possession of, any bank, or any savings and
loan association; or
Whoever enters or attempts to enter any bank, or any savings and
loan association, or any building used in whole or in part as a bank, or
as a savings and loan association, with intent to commit in. such bank,
or in such savings and loan association, or building, or part thereof, so
used, any felony affecting such bank or such savings and loan association
and in violation of any statute of the United States, or any larceny—
Shall be fined not more than $5,000 or imprisoned not more than
twenty years, or both.
(b) Whoever takes and carries away, with intent to steal or purloin,
any property or money or any other thing of value exceeding $100
belonging to, or in the care, custody, control, management, or possession
of any bank, or any savings and loan association, shall be fined not more
than $5,000 or imprisoned not more than ten years, or both; or
Whoever takes and carries away, with intent to steal or purloin, any
property or money or any other thing of value not exceeding $100 be
longing to, or in the care, custody, control, management, or possession
of any bank, or any savings and loan association, shall be fined not more
than $1,000 or imprisoned not more than one year, or both.
(c) Whoever receives, possesses, conceals, stores, barters, sells, or dis
poses of, any property or money or other thing of value knowing the
same to have been taken from a bank, or a savings and loan association,
in violation of subsection (b) of this section shall be subject to the punish
ment provided by said section (b) for the taker.
(d) Whoever, in committing, or in attempting to commit, any offense
defined in subsections (a) and (b) of this section, assaults any person,
or puts in jeopardy the life of any person by the use of a dangerous
weapon of device, shall be fined not more than $10,000 or imprisoned not
more than twenty-five years, or both.
(e) Whoever, in committing any offense defined in this section, or in
avoiding or attempting to avoid apprehension for the commission of
such offense, or in freeing himself or attempting to free himself from
arrest or confinement for such offense, kills any person, or forces any
person to accompany him without the consent of such person, shall be
imprisoned not less than ten years, or punished by death if the verdict
of the jury shall so direct.
LA W S A P PL IC A B LE TO TH E C O RPORATION AN D IN SU R ED B A N K S
147
(f) As used in this section the term “ bank” means any member bank
of the Federal Reserve System, and any bank, banking association, trust
company, savings bank, or other banking institution organized or oper
ating under the law^s of the United States, and any bank the deposits
of which are insured by the Federal Deposit Insurance Corporation.
(g) As used in this section the term “ savings and loan association”
means any Federal savings and loan association and any savings and
loan association the accounts of which are insured by the Federal Savings
and Loan Insurance Corporation. (18 U. S. C. 2113)
Definition of securities in stolen property law
As used in this chapter: * * *
“ Securities” includes any note, stock certificate, bond, debenture,
check, draft, warrant, traveler’s check, letter of credit, warehouse receipt,
negotiable bill of lading, evidence of indebtedness, certificate of interest
or participation in any profit-sharing agreement, collateral-trust certifi
cate, preorganization certificate or subscription, transferable share,
investment contract, voting-trust certificate; certificate of interest in
property, tangible or intangible; instrument or document or writing
evidencing ownership of goods, wares, and merchandise, or transferring
or assigning any right, title or interest in or to goods, wares, and mer
chandise; or, in general, any instrument commonly known as a “ security” ,
or any certificate of interest or participation in, temporary or interim
certificate for, receipt for, warrant, or right to subscribe to or purchase
any of the foregoing, or any forged, counterfeited, or spurious repre
sentation of any of the foregoing;
“ Value” means the face, par, or market value, whichever is the greatest,
and the aggregate value of all goods, wares, and merchandise, securities,
and money referred to in a single indictment shall constitute the value
thereof. (18 U. S. C. 2311)
Transportation of stolen goods, securities, monies, or articles
used in counterfeiting
Whoever transports in interstate or foreign commerce any goods,
wares, merchandise, securities or money, of the value of $5,000 or more,
knowing the same to have been stolen, converted or taken by fraud; or
Whoever, with unlawful or fraudulent intent, transports in interstate
or foreign commerce any falsely made, forged, altered, or counterfeited
securities, knowing the same to have been falsely made, forged, altered,
or counterfeited; or
Whoever, with unlawful or fraudulent intent, transports in interstate
or foreign commerce, any tool, implement, or thing used or fitted to be
used in falsely making, forging, altering, or counterfeiting any security,
or any part thereof—
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F E D E R A L D EPOSIT IN SU R AN C E COR PO R ATIO N
Shall be fined not more than $10,000 or imprisoned not more than ten
years, or both.
This section shall not apply to any falsely made, forged, altered,
counterf eited or spurious representation of an obligation or other security
of the United States, or of an obligation, bond, certificate, security,
treasury note, bill, promise to pay or bank note issued by any foreign
government or by a bank or corporation of any foreign country. (18
U. S. C. 2314)
Sale or receipt of stolen goods, securities, or monies
Whoever receives, conceals, stores, barters, sells, or disposes of any
goods, wares, or merchandise, securities, or money of the value of $5,000
or more, or pledges or accepts as security for a loan any goods, wares, or
merchandise, or securities, of the value of $500 or more, moving as, or
which are a part of, or which constitute interstate or foreign commerce,
knowing the same to have been stolen, unlawfully converted, or taken; or
Whoever receives, conceals, stores, barters, sells or disposes of any
falsely made, forged, altered, or counterfeited securities, or pledges or
accepts as security for a loan any falsely made, forged, altered, or counter
feited securities, moving as, or which are a part of, or which constitute
interstate or foreign commerce, knowing the same to have been so falsely
made, forged, altered, or counterfeited; or
Whoever receives in interstate or foreign commerce, or conceals,
stores, barters, sells, or disposes of, any tool, implement, or thing used
or intended to be used in falsely making, forging, altering, or counter
feiting any security, or any part thereof, moving as, or which is a part
of, or which constitutes interestate or foreign commerce, knowing that
the same is fitted to be used, or has been used, in falsely making, forging,
altering, or counterfeiting any security, or any part thereof—
Shall be fined not more than $10,000 or imprisoned not more than ten
years, or both.
This section shall not apply to any falsely made, forged, altered,
counterfeited, or spurious representation of an obligation or other security
of the United States or of an obligation, bond, certificate, security,
treasury note, bill, promise to pay, or bank note, issued by any foreign
government or by a bank or corporation of any foreign country. (18
U. S. C. 2315)
Secret Service powers
The Secretary of the Treasury is authorized to direct and use the
Secret Service Division of the Treasury Department to detect, arrest,
and deliver into custody any person violating any of the provisions of
sections 508 and 509 of this title and, insofar as the Federal Deposit
Insurance Corporation, Federal land banks, joint-stock land banks and
L A W S A P P L IC A B LE TO TH E CORPORATION A N D IN SU R ED B A N K S
149
national farm loan associations are concerned, of sections 218, 221, 433,
493, 657, 709, 1006, 1007, 1011, 1013, 1014, 1907 and 1909 of this title.
(18 U. S. C. 3056)
Insured banks receiving property of foreign States and
central banks
* * * * * Whenever (1) any insured bank has received any property
from or for the account of a foreign state which is recognized by the
Government of the United States, or from or for the account of a central
bank of any such foreign state, and holds such property in the name of
such foreign state or such central bank; (2) a representative of such
foreign state who is recognized by the Secretary of State as being the
accredited representative of such foreign state to the Government of
the United States has certified to the Secretary of State the name of a
person as having authority to receive, control, or dispose of such property;
and (3) the authority of such person to act with respect to such property
is accepted and recognized by the Secretary of State, and so certified
by the Secretary of State to such insured bank, the payment, transfer,
delivery, or other disposal of such property by such bank to or upon the
order of such person shall be conclusively presumed to be lawful and
shall constitute a complete discharge and release of any liability of such
bank for or with respect to such property. Any suit or other legal pro
ceeding against any insured bank or any officer, director, or employee
thereof, arising out of the receipt, possession, or disposition of any such
property shall be deemed to arise under the laws of the United States
and the district courts of the United States shall have exclusive jurisdic
tion thereof, regardless of the amount involved; and any such bank,
or any officer, director, or employee thereof which is a defendant in any
such suit may, at any time before trial thereof, remove such suit from a
State court into the district court of the United States for the proper
district by following the procedure for the removal of causes otherwise
provided by law. * * * * * (12 U. S. C. 632)
Depositaries of public funds, insured banks
All insured banks designated for that purpose by the Secretary of
the Treasury shall be depositaries of public money of the United States
(including, without being limited to, revenues and funds of the United
States, and any funds the deposit of which is subject to the control or
regulation of the United States or any of its officers, agents, or employees,
and Postal Savings funds), and the Secretary is hereby authorized to
deposit public money in such depositaries, under such regulations as
may be prescribed by the Secretary; and they may also be employed
as financial agents of the Government; and they shall perform all such
reasonable duties, as depositaries of public money and financial agents
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F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
of the Government as may be required of them. The Secretary of the
Treasury shall require of the insured banks thus designated satisfactory
security by the deposit of United States bonds or otherwise, for the safe
keeping and prompt payment of public money deposited with them
and for the faithful performance of their duties as financial agents of
the Government: Provided, That no such security shall be required
for the safekeeping and prompt payment of such parts of the deposits
of the public money in such banks as are insured deposits and each
officer, employee, or agent of the United States having official custody
of public funds and lawfully depositing the same in an insured bank
shall, for the purpose of determining the amount of the insured deposits,
be deemed a depositor in such custodial capacity separate and distinct
from any other officer, employee, or agent of the United States having
official custody of public funds and lawfully depositing the same in the
same insured bank in custodial capacity. Notwithstanding any other
provision of law, no department, board, agency, instrumentality, officer,
employee, or agent of the United States shall issue or permit to continue
in effect any regulations, rulings, or instructions, or enter into or approve
any contracts or perform any other acts having to do with the deposit,
disbursement, or expenditure of public funds, or the deposit, custody,
or advance of funds subject to the control of the United States as trustee
or otherwise which shall discriminate against or prefer national banking
associations, State banks members of the Federal Reserve System, or
insured banks not members of the Federal Reserve System, by class, or
which shall require those enjoying the benefits, directly or indirectly,
of disbursed public funds so to discriminate. All Acts or parts thereof
in conflict herewith are hereby repealed. The terms “ insured bank” and
“ insured deposit” as used in this Act shall be construed according to the
definitions of such terms in the Act of August 23, 1935 (49 Stat. 684),
as amended (12 U. S. C. 265)
Failure to pay circulating notes, national banks
On becoming satisfied, as specified in sections fifty-two hundred
and twenty-six and fifty-two hundred and twenty-seven, that any
association has refused to pay its circulating notes as therein men
tioned, and is in default, the Comptroller of the Currency may forth
with appoint a receiver, and require of him such bond and security
as he deems proper. Such receiver, under the direction of the
comptroller, shall take possession of the books, records, and assets
of every description of such association, collect all debts, dues, and
claims belonging to it, and, upon the order of a court of record of com
petent jurisdiction, may sell or compound all bad or doubtful debts,
and, on a like order, may sell all the real and personal property of such
association, on such terms as the court shall direct; and may, if necessary
L A W S A P P L IC A B L E TO TH E C O RPORATION A N D IN SU R ED B A N K S
151
to pay the debts of such association, enforce the individual liability of
the stockholders. Such receiver shall pay over all money so made to the
Treasurer of the United States, subject to the order of the comptroller,
and also make report to the comptroller of all his acts and proceedings.
Provided, That the comptroller may, if he deems proper, deposit
any of the money so made in any regular Government depositary, or
in any State or national bank either of the city or town in which the
insolvent bank was located, or of a city or town as adjacent thereto
as practicable; if such deposit is made he shall require the depositary
to deposit United States bonds or other satisfactory securities with the
Treasurer of the United States for the safe-keeping and prompt pay
ment of the money so deposited: Provided, That no security in the
form of deposit of United States bonds, or otherwise, shall be required
in the case of such parts of the deposits as are insured under section 12B
of the Federal Reserve Act, as amended. Such depositary shall pay upon
such money interest at such rate as the comptroller may prescribe, not
less1, however, than 2 per centum per annum upon the average monthly
amount of such deposits. (12 U. S. C. 192)
Bankruptcy funds, deposit of
The judges of the several courts of bankruptcy shall designate, by
order, banking institutions as depositories for the money of estates
under this title, as convenient as may be to the residences of receivers
and trustees, and shall require from each such banking institution a
good and sufficient bond with surety, to secure the prompt repayment
of the deposit. Said judges may, in accordance with the provisions of,
and the authority conferred in section 1126 of the Revenue Act of 1926,
as amended1 accept the deposit of the securities therein designated,
in lieu of a surety or sureties upon such bond and may, from time to
time as occasion may require, by like order increase or decrease the
number of depositories or the amount of any bond or other security or
change such depositories: Provided, That no security in the form of a
bond or otherwise shall be required in the case of such part of the deposits
as are insured under section 264 of Title 12, as amended: And provided
further, That depository banks shall place such securities, accepted for
deposit in lieu of a surety or sureties upon depository bonds, in the
custody of Federal Reserve banks or branches thereof designated by
the judges of the several courts of bankruptcy, subject to the orders of
such judges. All national banking associations designated as depositories,
pursuant to the provisions of this section of this title, are authorized
to give such security as may be required. All pledges of securities hereto
fore made for the purposes herein named are hereby ratified, validated
and approved. (11 U. S. C. 101)
i See, however, Section 19 of the Federal Reserve Act, as amended by Sec. 324 (c) of the Banking
Act of 1935. (U. S. C., Title 12, Sec. 371a.)
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FE D E R A L D EPOSIT IN SU R AN C E CORPORATION
Postal Savings funds, deposit of
Postal savings funds received under the provisions of this chapter
shall be deposited in solvent banks, whether organized under national
or State laws, and whether member banks or not of the Federal reserve
system, being subject to national or State supervision and examination,
and the sums deposited shall bear interest at the rate of not less1 than
2J4 per centum per annum, which rate shall be uniform throughout
the United States and Territories thereof; but 5 per centum of such
funds shall be withdrawn by the board of trustees and kept with the
Treasurer of the United States, who shall be treasurer of the board of
trustees, in lawful money as a reserve. The board of trustees shall take
from such banks such security in public bonds or other securities, au
thorized by Act of Congress or supported by the taxing power, as the
board may prescribe, approve, and deem sufficient and necessary to
insure the safety and prompt payment of such deposits on demand:
Provided, That no such security shall be required in case of such part
of the deposits as are insured under section 12B of the Federal Reserve
Act, as amended. (39 U. S. C. 759)
Indian funds, deposit of
The Secretary of the Interior is hereby authorized in his discretion,
and under such rules and regulations as he may prescribe, to withdraw
from the United States Treasury and to deposit in banks to be selected
by him the common or community funds of any Indian tribe which
are, or may hereafter be, held in trust by the United States and on which
the United States is not obligated by law to pay interest at higher rates
than can be procured from the banks. The said Secretary is also au
thorized, under such rules and regulations as he may prescribe, to deposit
in banks to be selected by him the funds held in trust by the United States
for the benefit of individual Indians: Provided, That no individual
Indian money shall be deposited in any bank until the bank shall have
agreed to pay interest thereon at a reasonable rate, subject, however,
to the regulations of the Board of Governors of the Federal Reserve
System in the case of member banks, and of the Board of Directors of
the Federal Deposit Insurance Corporation in the case of insured non
member banks, except that the payment of interest may be waived in
the discretion of the Secretary of the Interior on any deposit which is
payable on demand: Provided further, That no tribal or individual Indian
money shall be deposited in any bank until the bank shall have furnished
an acceptable bond or pledged collateral security therefor in the form
of any public-debt obligations of the United States and any bonds, notes,
or other obligations which are unconditionally guaranteed as to both
interest and principal by the United States, except that no such bond
or collateral shall be required to be furnished by any such bank which
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153
is entitled to the benefits of section 264 of Title 12, with respect to any
deposits of such tribal or individual funds to the extent that such deposits
are insured under such section: Provided, however, That nothing con
tained in this section, or in section 264 of Title 12, shall operate to deprive
any Indian having unrestricted funds on deposit in any such bank of
the full protection afforded by section 264 of Title 12, irrespective of
any interest such Indian may have in any restricted Indian funds on
deposit in the same bank to the credit of a disbursing agent of the United
States. For the purpose of this section and section 264 of Title 12, said
unrestricted funds shall constitute a separate and distinct basis for an
insurance claim: Provided further, That the Secretary of the Interior,
if he deems it advisable and for the best interest of the Indians, may
invest the trust funds of any tribe or individual Indian in any publicdebt obligations of the United States and in any bonds, notes, or other
obligations which are unconditionally guaranteed as to both interest
and principal by the United States: And provided further, That the fore
going shall apply to the funds of the Osage Tribe of Indians, and the
individual members thereof, only with respect to the deposit of such
funds in banks. (25 U. S. C. 162 (a ))
NATIONAL BANK CONVERSION ACT
[P ublic Law 706—81st C ongress]
[C hapter 729— 2 d Session]
[H. R. 1161]
AN ACT
To provide for the conversion of national banking associations into and their merger
or consolidation with State banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
DEFINITIONS
Section 1. (a) As used in this Act the term “ State bank” means
any bank, banking association, trust company, savings bank (other
than a mutual savings bank), or other banking institution which is
engaged in the business of receiving deposits and which is incorporated
under the laws of any State, any Territory of the United States, Puerto
Rico, or the Virgin Islands, or which is operating under the Code of Law
for the District of Columbia (except a national banking association).
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F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
(b) For purposes of merger or consolidation under this Act the term
“ national banking association” means one or more national banking
associations, and the term “ State bank” means one or more State banks.
C ON VERSIO N OF N A T IO N A L B A N K IN TO A N D M E R G E R OR
CON SOLIDATION W IT H STATE B A N K ; PROCED URE
2. A national banking association may, by vote of the holders
of at least two-thirds of each class of its capital stock, convert into, or
merge or consolidate with, a State bank in the same State in which the
national banking association is located, under a State charter, in the
following manner:
(a) The plan of conversion, merger, or consolidation must be approved
by a majority of the entire board of directors of the national banking
association. The bank shall publish notice of the time, place, and object
of the shareholders’ meeting to act upon the plan, in some newspaper
with general circulation in the place where the principal office of the
national banking association is located, at least once a week for four
consecutive weeks: Provided, That newspaper publication may be dis
pensed with entirely if waived by all the shareholders and in the case
of a merger or consolidation one publication at least ten days before
the meeting shall be sufficient if publication for four weeks is waived by
holders of at least two-thirds of each class of capital stock and prior
written consent of the Comptroller of the Currency is obtained. The
national banking association shall send such notice to each shareholder
of record by registered mail at least ten days prior to the meeting, which
notice may be waived specifically by any shareholder.
(b) A shareholder of a national banking association who votes against
the conversion, merger, or consolidation, or who has given notice in
writing to the bank at or prior to such meeting that he dissents from the
plan, shall be entitled to receive in cash the value of the shares held by
him, if and when the conversion, merger, or consolidation is consum
mated, upon written request made to the resulting State bank at any
time before thirty days after the date of consummation of such con
version, merger, or consolidation, accompanied by the surrender of his
stock certificates. The value of such shares shall be determined as of the
date on which the shareholders’ meeting was held authorizing the con
version, merger, or consolidation, by a committee of three persons, one
to be selected by unanimous vote of the dissenting shareholders entitled
to receive the value of their shares, one by the directors of the resulting
State bank, and the third by the two so chosen. The valuation agreed
upon by any two of three appraisers thus chosen shall govern; but, if
the value so fixed shall not be satisfactory to any dissenting shareholder
who has requested payment as provided herein, such shareholder may
within five days after being notified of the appraised value of his shares
appeal to the Comptroller of the Currency, who shall cause a reappraisal
S ec.
N A T IO N A L B A N K CON VERSIO N AC T
155
to be made, which shall be final and binding as to the value of the shares
of the appellant. If, within ninety days from the date of consummation
of the conversion, merger, or consolidation, for any reason one or more
of the appraisers is not selected as herein provided, or the appraisers fail
to determine the value of such shares, the Comptroller shall upon written
request of any interested party, cause an appraisal to be made, which
shall be final and binding on all parties. The expenses of the Comptroller
in making the reappraisal, or the appraisal as the case may be, shall
be paid by the resulting State bank. The plan of conversion, merger, or
consolidation shall provide the manner of disposing of the shares of the
resulting State bank not taken by the dissenting shareholders of the
national banking association.
SAM E E N T IT Y
S ec. 3. The franchise of a national banking association as a national
banking association shall automatically terminate when its conversion
into or its merger or consolidation with a State bank under a State
charter is consummated and the resulting State bank shall be considered
the same business and corporate entity as the national banking associa
tion, although as to rights, powers, and duties the resulting bank is a
State bank. Any reference to such national banking association in any
contract, will, or document shall be considered a reference to the State
bank if not inconsistent with the provisions of the contract, will, or
document or applicable law.
C O N TR A V E N T IO N W IT H STATE L A W
S ec. 4. N o conversion of a national banking association into a State
bank or its merger or consolidation with a State bank shall take place
under this Act in contravention of the law of the State in which the
national banking association is located; and no such conversion, merger,
or consolidation shall take place under this Act unless under the law
of the State in which such national banking association is located State
banks may without approval by any State authority convert into and
merge or consolidate with national banking associations as provided
by Federal law.
C ONSENT OF F E D E R A L A G E N C IE S
S ec. 5. Section 12B (v) (4) of the Federal Reserve Act (title 12,
U.S.C., sec. 264 (v) (4)), is amended to read as follows:
“ (4) Without prior written consent by the Corporation, no
insured bank shall (a) merge or consolidate with any noninsured
bank or institution or convert into a noninsured bank or institution
or (b) assume liability to pay any deposits made in, or similar
liabilities of, any noninsured bank or institution or (c) transfer
assets to any noninsured bank or institution in consideration of
FE D E R A L D EPOSIT IN SU R AN C E CORPO R ATIO N
156
the assumption of liabilities for any portion of the deposits made in
such insured bank. No insured bank shall convert into an insured
State bank if its capital stock, or its surplus will be less than the
capital stock or surplus, respectively, of the converting bank at
the time of the shareholders’ meeting approving such conversion,
without prior written consent by the Comptroller of the Currency
if the resulting bank is to be a District bank, or by the Board of
Governors of the Federal Reserve System if the resulting bank is
to be a State member bank (except a District bank), or by the Cor
poration if the resulting bank is to be a State nonmember insured
bank (except a District bank). No insured bank shall (a) merge
or consolidate with an insured State bank under the charter of a
State bank or (b) assume liability to pay any deposits made in
another insured bank, if the capital stock or surplus of the resulting
or assuming bank will be less than the aggregate capital stock or
aggregate surplus, respectively, of all the merging or consolidating
banks or of all the parties to the assumption of liabilities, at the
time of the shareholders’ meetings which authorized the merger
or consolidation or at the time of the assumption of liabilities, unless
the Comptroller of the Currency shall give prior written consent
if the assuming bank is to be a national bank or the assuming or
resulting bank is to be a District bank; or unless the Board of Gov
ernors of the Federal Reserve System gives prior written consent
if the assuming or resulting bank is to be a State member bank
(except a District bank); or unless the Corporation gives prior
written consent if the assuming or resulting bank is to be a non
member insured bank (except a District bank). No insured State
nonmember bank (except a District bank) shall, without the prior
consent of the Corporation, reduce the amount or retire any part
of its common or preferred capital stock, or retire any part of its
capital notes or debentures.”
CON TIN UED D EPOSIT IN SU R A N C E
S ec. 6. Section 12B (e) (2) of the Federal Reserve Act (title 12,
U.S.C., sec. 264 (e) (2)), is amended by adding at the end thereof the
following sentences: “ A State bank, resulting from the conversion of
an insured national bank, shall continue as an insured bank. A State
bank, resulting from the merger or consolidation of insured banks,
or from the merger or consolidation of a noninsured bank or institution
with an insured State bank, shall continue as an insured bank.”
E FFE C T OF T E R M IN A T IO N OF IN SU R AN C E
OF M E M B E R B AN KS
S ec. 7. The last sentence of section 12B (i) (2) of the Federal Reserve
Act (12 U.S.C., sec. 264 (1) (2)), is amended to read as follows: “ Except
as provided in paragraph (2) of subsection (e) of this section, whenever
N A T IO N A L B A N K CON VERSIO N ACT
157
a member bank shall cease to be a member of the Federal Reserve System,
its status as an insured bank shall, without notice or other action by the
board of directors, terminate on the date the bank shall cease to be a
member of the Federal Reserve System, with like effect as if its insured
status had been terminated on said date by the board of directors after
proceedings under paragraph (1) of this subsection.”
CON TIN UED M E M B E R SH IP IN TH E F E D E R A L R E S E R V E SYSTEM
S ec. 8. Section 9 of the Federal Reserve Act (title 12, U.S.C., sec.
321), as amended, is amended by inserting after the first paragraph
thereof the following new paragraph:
“ Upon the conversion of a national bank into a State bank, or the
merger or consolidation of a national bank with a State bank which
is not a member of the Federal Reserve System, the resulting or con
tinuing State bank may be admitted to membership in the Federal
Reserve System by the Board of Governors of the Federal Reserve
System in accordance with the provisions of this section, but, other
wise, the Federal Reserve bank stock owned by the national bank shall
be canceled and paid for as provided in section 5 of this Act. Upon the
merger or consolidation of a national bank with a State member bank
under a State charter, the membership of the State bank in the Federal
Reserve System shall continue.”
S E P A R A B IL IT Y CLAUSE
S ec. 9. If any provision of this Act, or the application thereof to
any person or circumstance, is held invalid, the remainder of the Act
and the application of such provision to other persons or circumstances
shall not be affected thereby.
Approved August 17, 1950.
R u l e s a n d R e g u l a t io n s 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 *
Subchapter A—Procedure and Rules of Practice
Part
301— I n t r o d u c t o r y
and
A u t h o r it y
§ 301.1 Scope. The rules contained in this subchapter are pro
mulgated pursuant to the provisions of the Administrative Procedure
Act (60 Stat. 237), the Federal Deposit Insurance Act (Act of Sept. 21,
1950, Pub. Law 797,81st Cong.), and other applicable laws. In accordance
with the provisions of section 3 (a) (2) of the Administrative Procedure
Act (sec. 3 (a) (2), 60 Stat. 238) they state the general course and method
by which the Corporation’s functions with respect to deposit insurance
are channeled and determined, including the nature and requirements
of formal or informal procedures available as well as forms and instruc
tions as to the scope and contents of papers and reports. This subchapter
also includes appropriate provisions with respect to rule making, ad
judications, and hearings, as prescribed by law.
Proceedings by the Corporation within the meaning of this subchapter
include:
(a) The formulation and promulgation of rules and regulations,
including amendments thereto or the repeal thereof;
(b) The disposition of applications, requests, and submittals;
(c) Formal hearings and adjudications.
(Sec. 9, Pub. Law 797, 81st Cong.)
Part
302— F o r m u l a t io n
R ules
and
and
P r o m u l g a t io n
of
R e g u l a t io n s
Sec.
302.1 Notice.
302.2 Public participation.
302.3 Formulation of rules.
302.4 Petitions.
302.5 Effective date.
302.6 Exceptions.
302.7 Amendment and repeal.
A u t h o r it y : §§ 302.1 to 302.7 issued under sec. 9, Pub. Law 797,
81st Cong.
§ 302.1 Notice. General notice of proposed rule making, including
amendments thereto or repeal thereof, will be published in the F e d e r a l
R e g is t e r , except as specified in § 302.6, or otherwise excepted by law.
iRules and Regulations published in Federal Register of December 6, 1950 (15 F.R. 8628) with
effective date of January 6, 1951, as revision of Chapter III, Title 12, Code of Federal Regulations.
158
R U L E S AN D R E G U LATIO N S OF TH E CORPORATION
159
Such notice will include either the terms or substance of the proposed
rule or a description of the subjects and issues involved, reference to
the authority under which the rule is proposed, and a statement of the
time, place, and nature of the public proceedings for making the rule.
§ 302.2 Public participation. Interested persons will be afforded
an opportunity to participate in the making of any rule, except as specified
in § 302.6, or otherwise excepted by law, through the submission of
written data, views, or arguments, unless the board of directors shall
specifically provide an opportunity for the oral presentation thereof.
§ 302.3 Formulation of rules. After consideration of all relevant
matter presented, the Committee on Administration will submit its
recommendations to the board of directors and, in collaboration with
appropriate Divisions, will prepare drafts of any proposed rules or
amendments. The board of directors will take such action thereon as it
deems appropriate and in any rule adopted will incorporate therein a
concise general statement of its basis and purpose.
§ 302.4 Petitions. Any interested person may petition the Cor
poration for the issuance, amendment, or repeal of any rule by submitting
such petition in writing together with a complete and concise statement
of the petitioner’s interest in the subject matter and the reasons why
the petition should be granted. Such petition should be submitted to
the Secretary.
§ 302.5 Effective date. Any rule issued by the Corporation will
be published or served not less than thirty (30) days prior to the effective
date thereof except as specified in § 302.6 or otherwise excepted by law.
§ 302.6 Exceptions. Whenever the Corporation finds that notice
of, and public participation in, rule making is impracticable, unnecessary,
or contrary to the public interest, or there is good cause why the effective
date of any rule should not be deferred for thirty (30) days, the provisions
of §§ 302.1, 302.2, and 302.5 shall not apply; and any such rule when
published will incorporate the finding and a brief statement of the
reasons therefor.
§ 302.7 Amendment and repeal. The right to alter, amend, or
repeal the whole or any part of any rule except as otherwise provided by
law, is expressly reserved.
Par t
Sec.
303.1
303.2
303.3
303— A p p l ic a t io n s ,
R equests,
and
S u b m it t a l s
Application by nonmember bank for deposit insurance.
Application by State nonmember insured bank to establish a
branch.
Application by State nonmember insured bank to move main
office or branch.
160
FE D E R A L DEPOSIT IN SU R AN C E CORPORATION
303.4 Application by insured State nonmember bank to reduce or
retire capital.
303.5 Application for conversion, merger, consolidation, assumption
and sale of asset transactions.
303.6 Application by State nonmember insured bank to extend its
corporate or charter powers.
303.7 Application to continue or resume insured status.
303.8 Applications for use of other official sign or for exemption from
advertising requirements.
303.9 Other applications.
303.10 Procedure on applications.
303.11 Notice of disposition of application.
A u t h o r it y : §§ 303.1 to 303.11 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply secs. 5, 6, 8, 18, 19, Pub. Law, 797, 81st
Cong.
§ 303.1 Application by nonmember bank1 for deposit insurance.
Application for deposit insurance by an existing or proposed State non
member bank should be filed with the Supervising Examiner of the
Federal Deposit Insurance District in which the bank or proposed bank
is or will be located. Any such application (a) by an existing bank must
be accompanied by separate applications for the consent of the Corpora
tion to the continued operation of each branch which it proposes to
continue to operate; (b) by a proposed bank must be accompanied by a
separate application for the consent of the Corporation to establish and
operate each proposed branch. The appropriate forms of application
and instructions for completing the same may be obtained upon request
from the Supervising Examiner of the District in which the application
originates. (See Part 304 of this subchapter for list of forms and in
structions.)2
§ 303.2 Application by State nonmember insured bank to establish a
branch.* Application by a State nonmember insured bank (except a
District bank) to establish and operate a new branch should be filed
with the Supervising Examiner of the Federal Deposit Insurance District
in which the bank is located. The appropriate form of application and
instructions for completing the same may be obtained upon request
from the Supervising Examiner of the District in which the application
originates. (See Part 304 of this subchapter for list of forms and instruc
tions.)
§ 303.3 Application by State nonmember insured bank to move main
office or branch. Application for the consent of the Corporation to move
the main office or branch of a State nonmember insured bank (except a
i A nonmember bank is a bank which is not a member of the Federal Reserve System.
* For information concerning applications for deposit insurance by national nonmember banks,
inquiries should be addressed to the Chief of the Division of Examination, Washington 25, D. C.
* “ The term ‘branch’ includes any branch bank, branch office, branch agency, additional office,
or any branch place of business located in any State of the United States or in any Territory of the
United States, Puerto Rico, or the Virgin Islands at which deposits are received or checks paid or money
lent.” (Sec. 3 (o) (Pub. Law 797, 81st Cong.) )
R U L E S A N D RE G U LATIO N S OF THE CORPORATION
161
District bank) should be filed with the Supervising Examiner of the
Federal Deposit Insurance District in which the bank is located. The
appropriate form of application and instructions for completing the same
may be obtained upon request from the Supervising Examiner of the
District in which the application originates. (See Part 304 of this sub
chapter for list of forms and instructions.)
§ 303.4 Application by insured State nonmember bank to reduce or
retire capital. Application for the consent of the Corporation to the
reduction in the amount, or retirement of any part, of the common or
preferred capital stock, or retirement of any part of the capital notes
or debentures, of an insured State nonmember bank (except a District
bank) should be filed with the Supervising Examiner of the Federal
Deposit Insurance District in which the bank is located. The appropriate
form of application and instructions for completing the same may be
obtained upon request from the Supervising Examiner of the District
in which the application originates. (See Part 304 of this subchapter
for list of forms and instructions.)
§ 303.5 Application for conversion, merger, consolidation, assumption
and sale of asset transactions— (a) With noninsured bank or institution.
Application by an insured bank for the consent of the Corporation to
merge or consolidate with a noninsured bank or institution, or to convert
into a noninsured institution, or to assume liability to pay any deposits
made in, or similar liabilities of, any noninsured bank or institution, or
to transfer assets to any noninsured bank or institution in consideration
of the assumption of liability for any portion of the deposits made in
such insured bank, together with copies of all agreements or proposed
agreements relating thereto, should be filed with the Supervising Ex
aminer of the Federal Deposit Insurance District in which the insured
bank is located. The appropriate form of application and instructions
for completing the form as well as instructions concerning notice to
depositors, may be obtained upon request from the office of said Super
vising Examiner.
(b) Conversion with diminution of capital or surplus. Application
for the consent of the Corporation to convert into an insured State
nonmember bank (except a District bank)—when the conversion will
result in the converted bank having less capital stock or surplus than
the converted bank at the time of the shareholders’ meeting approving
such conversion—together with copies of the charter and/or articles
of association of the converted bank, should be filed with the Supervising
Examiner of the Federal Deposit Insurance District in which the insured
bank is located. The appropriate form of application and instructions
for completing the form may be obtained upon request from the office
of said Supervising Examiner.
(c) Merger, consolidation or assumption with diminution of capital
or surplus. Application for the consent of the Corporation to merge or
162
F E D E R A L DEPOSIT IN SU R AN C E C O R PORATION
consolidate under the charter of a State bank, or assume the liability
to pay any deposits made in another insured bank—when the resulting
or assuming bank is to be an insured State nonmember bank (except
a District bank) and where the capital stock or surplus of the resulting
or assuming bank will be less than the aggregate capital stock or ag
gregate surplus, respectively, of all the merging or consolidating banks
or of all the parties to the assumption of liabilities, at the time of the
shareholders’ meetings which authorized the merger or consolidation
or at the time of such assumption—together with copies of all agreements
or proposed agreements, charters and articles of association relating
thereto, should be filed with the Supervising Examiner of the Federal
Deposit Insurance District in which the resulting or assuming bank is
located. The appropriate form of application and instructions for com
pleting the same may be obtained upon request from the office of said
Supervising Examiner.
§ 303.6 Application by State nonmember insured bank to extend its
corporate or charter powers. Application for the consent of the Corpora
tion to the extension of the corporate or charter powers of a State non
member insured bank (except a District bank) should be filed with the
Supervising Examiner of the Federal Deposit Insurance District in
which the bank is located. The appropriate form of application and
instructions for completing the same may be obtained upon request
from the Supervising Examiner of the District in which the application
originates. (See Part 304 of this subchapter for list of forms and instruc
tions.)
§ 303.7 Application to continue or resume insured status. Application
under § 327.3 (c) of this chapter by a bank whose insured status has
been terminated, to be permitted to continue or to resume its status as
an insured bank, should be filed with the Supervising Examiner of the
Federal Deposit Insurance District in which the bank is located. Such
application should be (a) in writing; (b) signed by the president, or
cashier, or other managing officer of the bank; (c) accompanied by a
certified copy of the resolution of its board of directors authorizing the
submission of such application; and should contain (d) a statement
that the bank's insured status has been terminated, the date thereof,
and the basis therefor, that the insurance of its deposits has not ceased,
and that it applies for permission to continue or resume its status as
an insured bank; and (e) the reasons why the continuance or resumption
of such status should be permitted by the Corporation.
§ 303.8 Application for use of other official sign or for exemption from
advertising requirements. Any application made by an insured bank
under any of the provisions of Part 328 of this chapter should be filed
with the Division of Examination of the Corporation at its principal
office. Such application should (a) be in writing; (b) be signed by the
president, or cashier, or other managing officer of the bank; and (c)
R U LES A N D R E G U L A T IO N S OF TH E C O RPORATION
163
state, in conformity with the particular provision in respect of which
the application is made, the reason for the request in detail and the
reason why the application should be granted and in case of an official
sign should be accompanied by a sample of the proposed sign.
§ 303.9 Other applications. Except as otherwise provided by rule
or regulation, all applications, requests, and submittals for which no
form of application has been prescribed by the Corporation, should be
(a) in writing; (b) signed by the applicant or his duly authorized agent;
and (c) should contain a statement of the applicant’s interest therein,
a complete and concise statement of the action requested and the reasons
and facts relied upon as the basis for such requested action; and should
be addressed to the Secretary at the principal office of the Corporation.
The applicant shall furnish such other pertinent information as may be
required by the Corporation.
Whenever applicable the forms specified in Part 304 of this subchapter
should be used and the instructions issued with respect thereto should
be followed and submission made as therein provided.
§ 303.10 Procedure on applications. With respect to applications
for deposit insurance under § 303.1, the Division of Examination of
the Corporation will cause an investigation to be conducted, and an
examination to be made of the bank or proposed bank; and the board
of directors will thereafter, in accordance with applicable provisions of
law, act upon such application, the report of such investigation and
examination, the recommendations thereon of the examiner and Super
vising Examiner of the District in which the bank is or will be located,
of the Division of Examination and of the Board of Review, and the
legal opinion of counsel for the Corporation. The applicant bank will
be duly advised of the board’s decision upon such application.
With respect to all other applications, requests, or submittals the board
of directors will cause such an investigation or examination, or both,
to be made by the proper Divisions of the Corporation, as the board
shall deem appropriate, and upon the report of such investigation and
examination, and the recommendations thereon, will take such action
as it shall deem necessary or appropriate in the premises.
§ 303.11 Notice of disposition of application. Prompt notice will be
given of the grant or denial, in whole or in part, of any written applica
tion, petition, or other request of any interested person made in connec
tion with any agency proceeding. In the case of a denial, except in
affirming a prior denial, or where the same is self-explanatory, such
notice will be accompanied by a simple statement of procedural or other
grounds.
F E D E R A L DEPOSIT IN SU R AN C E C O RPORATION
164
Part
304— F or m s ,
I n st r u c t io n s ,
and
R epo r ts
Sec.
304.1
304.2
304.3
Certified statements.
Reports of condition, etc.
Forms and instructions.
A u t h o r it y : §§ 304.1 to 304.3 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply secs. 5-8, 10, 18, 19, Pub. Law 797, 81st
Cong.
§ 304.1 Certified statements. The certified statements required to
be filed by insured banks in accordance with the provisions of section 7
of the Federal Deposit Insurance Act shall be filed with the Fiscal Agent
of the Corporation upon the forms, and in the manner, and pursuant
to the instructions prescribed by the board of directors; and the assess
ments 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.
§ 304.2 Reports of condition, etc. Whenever required by the board
of directors pursuant to law, insured State nonmember banks (except
District banks) should file reports of condition, reports of earnings and
dividends, and summaries of deposits, with the Division of Research
and Statistics upon the forms, and in the manner, and pursuant to
the instructions, prescribed by the board of directors from time to time.
The form of such reports and instructions for completing the same
will be furnished to all such banks by, or may be obtained upon request
from, the Division of Research and Statistics.
§ 304.3 Forms and instructions. The following forms and instructions
have been prepared by the Corporation for the use of banks and may
be obtained by any person properly and directly concerned therewith
upon request at the office designated in this chapter:
(a)
Form 82:l Application of Proposed Bank {other than mutual
savings) for Federal Deposit Insurance. The proposed incorporators
are required to make statements and representations and to submit
information with respect to the several factors enumerated in section 6
of the Federal Deposit Insurance Act. The application on Form 82 must
be executed in quadruplicate. Three applications signed by the proposed
incorporators must be forwarded to the Supervising Examiner and the
other application retained by the prospective incorporators. Applications
filed on Form 82 must be accompanied by a certified copy of the proposed
Articles of Incorporation or Association and the requisite number of
i If the proposed bank contemplates the establishment of a branch or branches, its application
on Form 82 must be accompanied by a properly executed Form 85 for each branch. Form 85-M is to
be used where the proposed bank is to be a mutual savings bank.
R U LES AN D R E G U LATIO N S OF TH E CORPORATION
165
properly executed Forms 83. After incorporation is duly effected, the
bank must submit a properly executed Form 82a.
(b) Form 82-M:1 Application of Proposed Mutual Savings Bank for
Federal Deposit Insurance. Form 82-M, which is substantially the
same as Form 82, should be used when the proposed bank is to be a
mutual savings bank, and should be prepared and submitted in the same
manner as Form 82.
(c) Form 82a and Form 82a-M: Certificate of Adoption of Resolution.
Form 82a is a copy of the Resolution of the board of directors (or trustees)
of the bank approving the action of the prospective incorporators in
preparing and presenting its application for Federal deposit insurance
on Form 82 or 82-M, certified to be a true and correct copy by the presi
dent or vice president and cashier or secretary. After incorporation has
been duly effected and the bank is chartered to do business by the proper
state authority, four properly executed Forms 82a must be transmitted
to the Supervising Examiner. If not previously submitted, Form 82a
must be accompanied by a copy of the bank’s Articles of Incorporation
or Association and a copy of the bank’s license or authorization to
engage in the business of receiving deposits.
(d) Form 81+:* Application for Federal Deposit Insurance by an existing
noninsured State bank (other than mutual savings). The applicant bank
is required to submit statements, representations, and information with
respect to the several factors enumerated in section 6 of the Federal
Deposit Insurance Act, and a copy of the resolution of its board of
directors authorizing the bank’s president or vice president and cashier
or secretary to make the application. The application must be executed
in quadruplicate, signed by such officers and the bank’s corporate seal
affixed thereto. Three signed applications must be forwarded to the
Supervising Examiner and the other application retained by the bank
as part of its permanent records. Applications filed on Form 84 must be
accompanied by the requisite number of properly executed Forms 83
and a certified copy of the Articles of Incorporation or Association,
including any amendments thereto.
(e) Form 84-M;2 Application for Federal Deposit Insurance by an
existing noninsured mutual savings bank. Form 84-M, which is sub
stantially the same as Form 84, should be used by mutual savings banks,
and should be prepared and submitted in the same manner as Form 84.
(f) Form 88 and Form 88-M: Financial Statement. Form 83 must
be executed in triplicate and certified to be true and correct by each
individual director (or trustee) and officer of the bank or proposed bank
(who is solely responsible for its contents) for the benefit of the board
of directors of the Corporation in determining, with respect to the
1If the proposed bank contemplates the establishment of a branch or branches, its application
on Form 82 must be accompanied by a properly executed Form 85 for each branch. Form 85-M is to
be used where the proposed bank is to be a mutual savings bank.
*
If the bank has a branch or branches, its application on Form 84 must be accompanied by a properly
executed Form 85 for each branch. Form 85-M is to be used where the bank is a mutual savings bank.
166
FE D E R A L DEPOSIT IN SU R AN C E CORPORATION
applicant bank, the general character of its management in accordance
with section 6 of the Federal Deposit Insurance Act. The requisite
number of properly executed and signed Forms 83 must accompany
each application on Form 82, Form 82-M, Form 84, or Form 84-M.
(g) Form 85, Form 85a and Form 85b: Application of State non
member insured bank (except District bank and mutual savings bank) to
establish or move its main office or branch. (1) Form 85 is an application
to establish a branch. The applicant bank is required to submit state
ments, representations and information with respect to the several
factors enumerated in section 6 of the Federal Deposit Insurance Act
and a copy of the resolution of its board of directors authorizing the
bank’s president or vice president and cashier or secretary to make the
application. The application must be executed in quadruplicate, signed
by the president or vice president, have the corporate seal of the bank
affixed thereto, and be attested by the cashier or secretary. Three signed
applications must be forwarded to the Supervising Examiner and the
other application retained in the files of the bank as part of its permanent
records. The application must be accompanied by a certified copy of
the bank’s Articles of Incorporation or Association, including any amendments thereto unless previously submitted to the Corporation and
not subsequently amended.
(2) Form 85a is an application to move main office or branch. It is
similar to Form 85 and should be prepared and submitted in the same
manner as Form 85.
(3) Form 85b is an application to establish a branch pursuant to
designation as depositary and financial agent of the United States
Government. It is similar to Form 85 and should be prepared and sub
mitted in the same manner as Form 85.
(h) Form 85-M and Form 85a-M: Application by insured nonmember
mutual savings bank to establish a branch or move its main office or branch.
(1) Form 85-M is substantially the same as Form 85 and should be
prepared and submitted in the same manner as Form 85.
(2) Form 85a-M is substantially the same as Form 85a and should
be prepared and submitted in the same manner as Form 85.
(i) Form 100: Application for Consent to Retirement of Common or
Preferred Stock, Capital Notes, or Debentures. The applicant bank is
required to submit statements with respect to the nature of the proposal,
source of funds to effect the proposal, and other steps involved in the
retirement. The application contains a statement of assets and liabilities
and the disposition of certain assets adversely classified in the preceding
Report of Examination made of the bank by examiners of the Corpora
tion. Three applications certified to be true and correct and signed by
the president or cashier of the bank must be forwarded to the Supervis
ing Examiner.
(j) Form 102: Application. Form 102 should be used by all banks
R U LES A N D R E G U L AT IO N S OF TH E CORPORATION
167
applying for the consent of the Corporation with respect to any applica
tion requiring such consent and for which no specific form is prescribed
by this section or otherwise. The form contains a copy of the resolution
of the bank’s board of directors describing the proposal and authorizing
the application, a statement of the action taken upon the proposal by
the proper state banking authority, where such action is required, and
must be signed by the president or vice president and attested by the
cashier or secretary. The application must be accompanied by a copy
of the bank’s Articles of Incorporation or Association including any
amendments thereto unless previously submitted to the Corporation
and not subsequently amended. The application must be executed
in quadruplicate. Three signed applications must be submitted to the
Supervising Examiner of the District wherein the bank is located and
one copy retained in the bank’s files.
(k) Form 64 (Short form): Report of Condition (from banks other than
mutual savings). Form 64 is a report in the form of a standard statement
of the Assets and Liabilities of the reporting bank together with addi
tional detailed breakdown of selected items. When special circumstances
so require, additional detail with respect to specific asset or liability
items may be required. Reports of Condition must be prepared in accord
ance with the instructions contained in the booklet entitled “ Instruc
tions for the preparation of Report of Condition on Form 64 (Short
form)” , copies of which are furnished by the Corporation to all insured
State nonmember banks (except District banks) and which may be
obtained on request from the Division of Research and Statistics.
(1)
Form 64 (Savings): Report of Condition (from mutual savings
banks). Form 64 (Savings) is substantially the same as Form 64 (Short
form) and should be used by mutual savings banks.
(m) Form 73: Report of Earnings and Dividends (from banks other
than mutual savings). Report of Earnings and Dividends, Form 73,
is a report in the form of a standard profit and loss statement and a
reconciliation of changes in total capital accounts during the year.
When special circumstances so require additional detail with respect to
specific income or expense items, charge-offs or recoveries, profits on
assets sold, or changes in total capital account may be required. Reports
of Earnings and Dividends must be prepared in accordance with the
instructions contained in the booklet entitled “ Instructions for the
preparation of Report of Earnings and Dividends on Form 73” , which is
furnished by the Corporation to all insured State nonmember banks
(except District banks) and which may be obtained on request from the
Division of Research and Statistics.
(n) Form 73 (Savings): Report of Earnings and Dividends (from
mutual savings banks). Form 73 (Savings) is substantially the same
as Form 73 and should be used by mutual savings banks.
(o) Form 89: Summary of Deposits. Report of Summary of Deposits
168
F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
is a report of the number of deposit accounts and the amount of deposits
in such accounts grouped by size of account and type of deposit . Summary
of deposit reports must be prepared in accordance with instructions
contained in the pamphlet entitled “ Instructions for preparation of
Form 89” , which is furnished by the Corporation to all insured banks
and which may be obtained on request from the Division of Research
and Statistics.
(p) Form 51+5: Certified statement. A Form 545 must be submitted
on or before January 15 and July 15 of each year by every insured bank
except newly insured banks which must submit their First Certified
Statement on Form 645. Form 545 shows the deposit liabilities, less
authorized deductions, for the two base days in each semiannual period.
The base days are March 31 and June 30 for the six months ending
June 30, and September 30 and December 31 for the six months ending
December 31. When any of said base days is a non-business day or a
holiday, either national or state, the preceding business day shall be
used. The form will show the computation of the assessment base and
the amount of the assessment due the Corporation. It must be prepared
in duplicate, signed by an official of the bank and the original must
be forwarded to the Fiscal Agent. The duplicate copy should be retained
in the bank’s file. The forms are mailed to all insured banks each six
months in ample time to permit compliance with the law, but if not
received on or before January 1 or July 1, they should be obtained from
the Fiscal Agent. Instructions for the preparation of said forms are
furnished all insured banks by the Fiscal Agent.
(q) Form 555: Tabulation of assessment base. Form 555 is used for
the tabulation of total deposit liabilities, deductions claimed, and deposits
for the assessment base for assessment base days. Each form has spaces
for recording the figures for the two base days in each semiannual period.
The form and the supporting records required under section 7 (a) of
the Federal Deposit Insurance Act, must be retained by the bank as
part of its records. A supply of these forms is mailed periodically to each
insured bank. Additional supplies of the form may be obtained from the
Fiscal Agent upon request.
(r) Form 645: First certified statement. The First Certified State
ment, Form 645, must be submitted on or before July 15 or January 15
following the semiannual period in which the bank began operation
as an insured bank. The form shows the deposit liabilities, less authorized
deductions, for the applicable base day, either June 30 or December 31,
or if the applicable day falls on a non-business day or a holiday, the
preceding business day shall be used. The form will show the computation
of the assessment base and the amount of the assessment due the Cor
poration. It must be prepared in duplicate, signed by an official of the
bank, and the original must be forwarded to the Fiscal Agent. The
duplicate copy should be retained in the bank’s file. The forms will be
R U LES A N D R E G U LATIO N S OF TH E CORPORATION
169
mailed by the Fiscal Agent to newly insured banks with appropriate
instructions for their preparation.
(s) Form 845: Final certified statement—for use by an insured bank
whose deposits are assumed by another insured bank. This Statement,
Form 845, shows the deposit liabilities, less authorized deductions of
the bank on the base days prior to the assumption date. Form 845 ac
companied by appropriate letter of explanation and instructions will
be mailed by the Fiscal Agent to each insured bank whose deposit liabili
ties are assumed by another insured bank. The form must be prepared
in duplicate, signed by an officer of the bank and the original must be
forwarded to the Fiscal Agent. The duplicate copy should be retained
in the bank’s files. If the deposits of the liquidating bank are assumed
by a newly insured bank, the liquidating bank is not required to file
Form 845 or to pay any assessments upon the deposits so assumed after
the semiannual period in which the assumption takes effect.
(t) Form 845A: Final certified statement—for use of an insured bank
whose deposit liabilities are assumed by another insured operating bank
(To be used when the assuming bank executes the certified statement for the
bank whose deposits were assumed). Form 845A may be substituted for
Form 845 described in paragraph (s) of this section if the assuming bank
is executing the Certified Statement for the bank whose deposit liabilities
were assumed. Form 845A is prepared in the same manner as Form
845 except the certification is executed by an official of the assuming
bank.
(u)
Amended and corrected certified statements. Forms for use in
amending or correcting previously submitted Certified Statements are
identical in number and form with Forms 545, 645, 845, and 845A de
scribed above except the title of the form contains the additional word
“ Amended” or “ Corrected” . These forms may be obtained on request
from the Fiscal Agent.
Part
305— P a y m e n t
of
I n s u r e d D e p o sit s
§ 305.1 Payment of insured deposits in closed banks. When an
insured bank closes under circumstances requiring the Corporation to
make payment of the insured deposits1 therein, as prescribed by law,2
the Board of Directors appoints one or more Claim Agents with power
and authority as provided by law8 who maintain a temporary office at
the site of the closed bank for the purpose of receiving claims for insured
deposits and making payment thereof as soon as possible in accordance
with applicable law. Claimants for insured deposits are required to submit
to such Claim Agents appropriate proofs of claim, in form and manner
1 Defined in section 3 (m) of the Federal Deposit Insurance Act.
* See section 11 of the Federal Deposit Insurance Act, particularly subsections (b), (f) and (g).
* See section 10 (b) of the Federal Deposit Insurance Act.
170
FE D E RA L DEPOSIT IN SU R AN C E CORPORATION
prescribed by law or by the Board of Directors, to deliver up any pass
book or other record issued by the bank evidencing the insured deposit,
to assign their claims for insured deposits to the Corporation to the
extent required by law, and to furnish proper identification. The claimant
is required to make proof thereof to the satisfaction of the Claim Agent.
Disputed claims which cannot be adjusted in the field are referred to
the Chief of the Division of Liquidation for determination and when
satisfactory disposition cannot be so made, may be referred to the Board
of Directors for appropriate action. In cases where the Corporation is
not satisfied as to the validity of a claim for an insured deposit, it may
require the final determination of a court of competent jurisdiction
before paying such claim. The Corporation is authorized to make pay
ment of the insured deposits in cash or by making available to each
depositor a transferred deposit in a new bank in the same community
or in another insured bank in an amount equal to the insured deposit
of such depositor. Any such transferred deposit would be a demand
deposit in the absence of an agreement between the depositor and trans
feree bank providing for a time or savings deposit. The Corporation's
practice has been to make such payment by issuing its check for the
amount of the insured deposit. In making such payments, the Corpora
tion exercises its statutory authority to withhold payment of such
portion of the insured deposit of any depositor as may be required to
provide for the payment of any liability of such depositor as a stock
holder of the bank, or of any liability of such depositor to the closed
bank or its receiver, which is not offset against a claim due from the
bank, pending the determination and payment of such liability by the
depositor or any other person liable therefor.
(Sec. 9, Pub. Law 797, 81st Cong. Interprets or applies secs. 10, 11, Pub. Law 797,
81st Cong.)
_____________
Part
306— R e c e iv e r s h ip s
and
L iq u id a t io n s
Sec.
306.1 Liquidation of assets acquired through loans and purchases.
306.2 National bank receiverships.
306.3 State bank receiverships.
A u t h o r it y : §§ 306.1 to 306.3 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply secs. 11, 12, 13, Pub. Law 797, 81st Cong.
§ 306.1 Liquidation of assets acquired through loans and purchases.
Assets acquired by the Corporation pursuant to contracts of loan or
purchase from insured banks or receivers of closed insured banks, in
accordance with the provisions of the Federal Deposit Insurance Act,
are liquidated by the Corporation through a liquidator appointed in
the same manner as in the case of a national bank receivership (see
§ 306.2). The liquidator takes possession of the assets and usually main
tains a liquidating office in the vicinity of the bank from which the assets
RU LES A N D R E G U LATIO N S OF TH E CORPORATION
171
were acquired. The liquidator receives collections of debts and claims
due, effects sales of assets, compositions and compromises of debts,
and otherwise enforces claims and obligations due and owing and arising
out of the liquidation. Proposals for the sale of assets, compositions and
compromises, and extensions or renewals of debts due or other contracts,
are transmitted by the liquidator to the Chief of the Division of Liquida
tion and are in turn submitted to the Committee on Liquidations, Loans,
and Purchases of Assets and to the Board of Directors of the Corporation
for approval. Expenses of administration, attorneys’ fees, proposals for
leasing, engaging brokers or others, independent contractors, and ad
vances to protect assets are likewise submitted by the liquidator for
transmission with the recommendation of the Division of Liquidation
to the Committee on Liquidations, Loans, and Purchases of Assets
and to the Board of Directors of the Corporation for approval. In general,
the liquidator is the local representative of the Corporation and proceeds
in compliance with the manual of instructions of the Division of Liquida
tion to liquidate the assets so acquired.
§ 306.2 National bank receiverships. Whenever the Comptroller of
the Currency appoints a receiver (other than conservator) of a national
or District bank, it must be the Corporation. Immediately upon ap
pointment the Corporation takes possession of the records, assets, and
affairs of the bank through one of its agents, usually a liquidator, ap
pointed to represent the Corporation in that receivership. If possession
is taken by an agent other than a liquidator, the liquidator, when ap
pointed, is substituted for the agent. The Board of Directors of the
Corporation appoints the agent to take possession, the liquidator, such
assistant liquidators, and personnel, as may be neccssary, as well as an
attorney to furnish the Corporation as receiver with such legal assistance
as may be required in the administration of the receivership. The liqui
dator as local representative of the Corporation proceeds, in compliance
with the manual of instructions of the Division of Liquidation, and in
conformity with the applicable provisions of the National Bank Act
and the Federal Deposit Insurance Act, to liquidate the assets, receive
claims of depositors (claiming in excess of $10,000 per depositor)1 and
other creditors, pay the expenses of administration, distribute the pro
ceeds of such liquidation, and otherwise wind up the affairs of the bank
subject to the control of the Board of Directors of the Corporation and
under the supervision of the Chief of the Division of Liquidation. After
notice by advertisement pursuant to law, depositors having claims in
excess of $10,000 per depositor, and other creditors, are permitted to
file claims with the liquidator, who transmits such claims to the Division
of Liquidation for allowance, classification, and deductions by way of
set-offs or counterclaims. Such claims are filed on blanks prescribed from
i Claims for insured deposits up to $10,000 for each depositor are filed with a Claim Agent, ap
pointed by the Board of Directors of the Corporation, who represents the Corporation in its capacity
as insurer of deposit (see Part 305 of this chapter).
172
FE D E RA L DEPOSIT IN SU R AN C E C O RPORATION
time to time by the Corporation and when allowed are evidenced by
receiver’s certificates issued by the Division of Liquidation on such
forms as are from time to time prescribed by the Corporation. The
liquidator receives collections of debts and claims due to the receivership,
effects sales of assets, compositions and compromises of debts, and
otherwise enforces claims and obligations, owing to the receivership.
All proceeds of the liquidation are segregated and are kept separate
and apart from the general and other funds of the Corporation. Proposals
for the sale of assets, compositions, and compromises are transmitted
by the liquidator to the Division of Liquidation, which in turn submits
them to the Committee on Liquidations, Loans, and Purchases of Assets
and to the Board of Directors of the Corporation for approval; and upon
such approval the liquidator, through local counsel, presents the pro
posals to a court of competent jurisdiction for authorization as provided
by 12 U. S. C. 192. Expenses of administration are similarly submitted
by the Division of Liquidation for approval by the Board of Directors.
Attorney fees are submitted by the Legal Division for determination
by the Board of Directors. Proposals for leasing, engaging brokers or
others, independent contractors, extensions or renewals of debts due the
receivership, or other contracts, and advances to protect assets, are
submitted by the liquidator for transmission and recommendation by
the Division of Liquidation to the Committee on Liquidations, Loans,
and Purchases of Assets and to the Board of Directors for authorization.
When sufficient funds have been realized from the liquidation to justify
payment of a dividend to creditors, the Division of Liquidation submits
a recommendation to the Board of Directors, which orders a ratable
dividend to be paid. Dividend checks are drawn by the Division of
Liquidation on receivership funds and transmitted to the liquidator for
delivery to the claimants who are required to present their receiver’s
certificates for endorsement thereon and to execute receipts for such
dividends. If such claims are paid in full with interest, receivership
certificates must be surrendered. If surplus assets remain after payment
of dividends to creditors equal to the principal of their respective claims
plus interest thereon, a meeting of the shareholders is called pursuant
to the provisions of 12 U. S. C. 197, for the purpose of determining
whether a shareholders’ agent shall be elected or the receivership con
tinued. If the shareholders elect to have a shareholders’ agent appointed,
then the assets are assigned and delivered to the shareholders’ agent
upon compliance w’ith the requirements of 12 U. S. C. 197.
§ 306.3 State bank receiverships. When the Corporation accepts
appointment as receiver of an insured State bank4 the board of directors
appoints an agent or liquidator to take possession, on behalf of the
Corporation, of the assets, books, and records, and to administer the
affairs, of the closed bank. The liquidator as the local representative
4 Pursuant to the provisions of section 11 (e) of the Federal Deposit Insurance Act.
R U LES A N D RE G U LATIO N S OF THE CORPORATION
173
of the Corporation proceeds, in accordance with the provisions of the
applicable law of the State in which the bank is located, and in con
formity with the manual of instructions of the Division of Liquidation,
to administer the receivership, subject to the control of the board of
directors and under the supervision of the Division of Liquidation.
Part
307— V o l u n t a r y
T e r m in a t io n
of
I n su r ed Statu s
Sec.
307.1
Steps to be taken and records to be furnished the Corporation
by an insured nonmember bank in liquidation.
307.2 Steps to be taken and records to be furnished the Corporation
by a member bank in liquidation (both State and national).
307.3 Steps to be taken and records to be furnished the Corporation
where deposits are assumed by another insured bank.
A u t h o r it y : §§ 307.1 to 307.3, issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply secs. 7, 8, Pub. Law 797, 81st Cong.
§307.1 Steps to be taken and records to be furnished the Corporation
by an insured nonmember bank in liquidation, (a) Whenever a non
member bank goes into liquidation and its insured status has not been
terminated by the board1 and its deposit liabilities are not assumed by
another insured bank, it shall terminate its status as an insured bank in
accordance with the provisions of section 8 (a) of the Federal Deposit
Insurance Act.2 To effect such termination the bank shall adopt a resolu
tion in form substantially as follows:
Resolved: (1) That the status of the.............................................................................
(Name of bank)
(City or town)
................................................ as an insured bank under the provisions of the Federal
(State)
Deposit Insurance Act shall terminate ninety (90) days from the date of the receipt
by the Federal Deposit Insurance Corporation of a copy of this resolution;8
(2) That........................................................................................................................is
(cashier or other officer)
hereby directed to immediately forward a certified copy of this resolution to the
Federal Deposit Insurance Corporation, Washington 25, D. C., which shall constitute
the notice of termination prescribed in section 8 (a) of that Act.
Upon receipt of a certified copy of the aforesaid resolution the Cor
poration will promptly advise the bank of the date of the receipt thereof,
and confirm the date of the termination of its insured status.
i Board means Board of Directors of the Federal Deposit Insurance Corporation.
s Section 8 (a) of the Federal Deposit Insurance Act provides, in part, as follows: “ Any insured
bank (except a national member bank or State member bank) may, upon not less than ninety days' written
notice to the Corporation, and to the Reconstruction Finance Corporation if it owns or holds as pledgee
any preferred stock, capital notes, or debentures of such bank, terminate its status as an insured bank.
* * * After the termination of the insured status of any bank * * * the insured deposits of each de
positor in the bank on the date of such termination, less all subsequent withdrawals from any deposits
of such depositor, shall continue for a period of two years to be insured, and the bank shall continue to
pay to the Corporation assessments as in the case of an insured bank during such period. * * *” [Italics
supplied.]
*
If the bank desires to fix a later date of termination, it may do so a3 the law prescribes only the
minimum notice period which is ninety (90) days.
174
F E D E R A L D EPOSIT IN SU R AN C E C O RPORATION
Thereupon, and prior to the termination date, the bank shall give
notice to its depositors of the termination of its insured status. Such
notice shall be (1) mailed to each depositor at his last address of record
as shown upon the books of the bank, (2) published in not less than two
issues of a local newspaper of general circulation, and (3) in form sub
stantially as follows:
(Date)
Notice to Depositors:
Please be advised that the status of the.......................................................................
(Name of bank)
............................................................................. as an insured bank under the pro(City or town)
(State)
visions of the Federal Deposit Insurance Act, will terminate on......................... day
o f........................................................ . 19...........
You are further advised that your insured deposits in this bank on the date of
termination will continue to be insured within the limitations provided by law.
(Name of bank)
(Address)
There may be included in such notice any additional information or
advice the bank may deem desirable.
Whenever the bank proposes to pay its depositors and, at the direction
of the depositors, effects such payment by transferring the deposits to a
noninsured bank, the following information shall be added to the notice
to depositors prescribed in the above form:
You are further advised that your deposits may be transferred to the..................
(Name of noninsured bank)
(City or town)
(State)
upon your direction to this bank and your acknowledgment in writing of the pay
ment of your deposits in full by such transfer.................................................................
(Name of noninsured bank)
is not a member of the Federal Deposit Insurance Corporation and deposits made in
it, or transferred to it, will not be insured.
(b)
The bank shall furnish to the Corporation the following records
and information:
(1) An affidavit of the mailing and an affidavit of the publication of
the notice to depositors. The affidavit of mailing should be executed
by the person mailing the notice and should state (i) the date of mailing,
(ii) that it was mailed to each depositor at his last address of record as
shown on the books of the bank; and (iii) that a copy of the notice as
mailed is attached.
(2) A certified copy of the resolutions pursuant to which the bank
was placed in liquidation and/or any other document dr instrument
required by law to place the bank in liquidation.
(3) The bank shall continue to file certified statements and pay
assessments thereon for the period its deposits are insured, as provided
R U L E S A N D R E G U LATIO N S OF TH E C ORPORATION
175
by the Federal Deposit Insurance Act:4 Provided, That after the bank
shall have paid in full its deposit liabilities and the assessment to the
Corporation required to be paid for the semiannual period in which
its deposit liabilities are paid in full, and after it shall, under applicable
law, have ceased to have authority to transact a banking business and
to have existence, except for the purpose of, and to the extent permitted
by law for, winding up its affairs, it shall not be required to file further
certified statements nor to pay further assessments.
(4) When the deposit liabilities of the bank shall have been paid in
full, the bank shall furnish to the Corporation an affidavit executed by
two of its officers, which affidavit shall state the fact that the deposit
liabilities have been paid in full and give the date of the final payment
thereof.5
(5) Where the bank has unclaimed deposits the affidavit to be fur
nished pursuant to subparagraph (4) of this paragraph, shall further
state the amount of such unclaimed deposits and the disposition made
of the funds to be held to meet such claims. For assessment purposes,
the following will be considered as payment of such unclaimed deposits,
viz:
(i) The transfer of cash funds in an amount sufficient to pay such
unclaimed and unpaid deposits to the public official authorized under
the law to receive the same; or
(ii) If no provision is made by law for the transfer of funds to a public
official, the transfer of cash funds or compensatory assets to an insured
bank in an amount sufficient to pay the unclaimed and unpaid deposits
in consideration of such insured bank assuming the payment thereof:
Provided, That, prior to such transfer, the liquidating bank shall have
given notice, as hereinafter provided, to the owners of the unclaimed
deposits of the intended transfer and a reasonable time shall have elapsed
after the giving of such notice to enable the depositors to obtain their
deposits. Such notice shall be mailed to each depositor and shall be
published in a local newspaper of general circulation. The notice shall
advise such depositors of the liquidation of the bank, shall request them
to call for and accept payment of their deposits, and shall state the
disposition to be made of their deposits upon their failure to promptly
claim the same.
If such unclaimed and unpaid deposits are disposed of as provided in
subdivision (i) of this subparagraph, a certified copy of the public official's
receipt issued for such funds shall be furnished to the Corporation. If
such unclaimed and unpaid deposits are disposed of as provided in sub
division (ii) of this subparagraph, an affidavit of the publication and of
the mailing of the notice to depositors, together with a copy of such
« See footnote 2 to 5 307.1 (a).
1
The issuance of a draft or officer's check does not constitute the discharge of a deposit liability
nor relieve the bank of assessment until such draft or other evidence of payment has been duly presented
for payment and has been paid.
176
F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
notice, and a certified copy of the contract of assumption shall be fur
nished to the Corporation.
(6)
The liquidating bank shall advise the Corporation of the date on
which the authority or right of the bank to do a banking business shall
have terminated and the method or means whereby such termination
shall have been effected, that is, whether such termination has been
effected by the surrender of its charter, by the cancellation of its authority
or license to do a banking business by the supervisory authority, or
otherwise.6
§ 307.2 Steps to be taken and records to be furnished the Corporation
by a member bank in liquidation (both State and national), (a) Whenever
a bank which is a member of the Federal Reserve System goes into
liquidation and its insured status has not been terminated by the Board7
and its deposit liabilities are not assumed by another insured bank, it
shall notify its depositors of the date of the termination of its insured
status.8 Such notice shall be in the form prescribed in § 307.1 and shall
be given at the time and in the manner therein provided.
(b)
The bank shall furnish to the Corporation the records and infor
mation mentioned in, and comply with the requirements of, § 307.1 (b).
§ 307.3 Steps to be taken and records to be furnished the Corporation
where deposits are assumed by another insured bank.9 (a) Whenever the
deposit liabilities of an insured bank are assumed by another insured
bank, the bank whose deposits are assumed, or the assuming bank as
its agent, shall give notice to its depositors of such assumption. Such
notice shall be (1) mailed to each depositor at his last address of record
as shown upon the books of the bank, (2) published in not less than two
issues of a local newspaper of general circulation, and (3) in form sub
stantially as follows:
8 As the governing law of the various jurisdictions is not uniform in this respect, it is suggested
that the applicable statute be consulted and that this Corporation be advised of the manner in which
the termination or cancellation of such authority has been effected.
7 See footnote 1 to § 307.1 (a).
8 Section 8 (b) of the Federal Deposit Insurance Act provides in part as follows: “ Except as provided
in subsection (b) of section 4, whenever a member bank shall cease to be a member of the Federal Reserve
System, its status as an insured bank shall, without notice or other action by the Board of Directors,
terminate on the date the bank shall cease to be a member of the Federal Reserve System, with like
effect as if its insured status had been terminated on said date by the Board of Directors after proceedings
under subsection (a) of this section.” Regulations of the Board of Governors of the Federal Reserve
System provide (12 CFR 208.10 footnote 13): “ A bank’s withdrawal from membership in the Federal
Reserve System is effective on the date on which the Federal Reserve bank stock held by it is duly can
celled." Section 4 (b) of the Federal Deposit Insurance Act provides in part that: “ A State bank, resulting
from the conversion of an insured national bank, shall continue as an insured bank. A State bank, re
sulting from the merger or consolidation of insured banks, or from the merger or consolidation of a
noninsured bank or institution with an insured State bank, shall continue as an insured bank."
9Section 8 (d) of the Federal Deposit Insurance Act provides as follows: “ Whenever the liabilities
of an insured bank for deposits shall have been assumed by another insured bank or banks, the insured
status of the bank whose liabilities are so assumed shall terminate on the date of receipt by the Corpora
tion of satisfactory evidence of such assumption with like effect as if its insured status had been termi
nated on said date by the Board of Directors after proceedings under subsection (a) of this section:
Provided, That if the bank whose liabilities are so assumed gives to its depositors notice of such assump
tion within thirty days after such assumption takes effect, by publication or by any reasonable means,
in accordance with regulations to be prescribed by the Board of Directors, the insurance of its deposits
shall terminate at the end of six months from the date such assumption takes effect. Such bank shall
be subject to the duties and obligations of an insured bank for the period its deposits are insured: Pro
vided, That if the deposits are assumed by a newly insured bank, the bank whose deposits are assumed
shall not be required to pay any assessment upon the deposits which have been so assumed after the
semiannual period in which the assumption takes effect."
R U LES AND R E G U LATIO N S OF TH E CORPORATION
177
(Date)
Notice to Depositors:
Please be advised that the deposit liabilities shown on the books of the undersigned
bank as of the close of business on............................................ , 1 9 .......... have been
assumed by the....................................................................................................................
(Name of assuming bank)
(City or town)
(State)
and that the status of the undersigned bank as an insured bank will therefore termi
nate as provided in section 8 (d) of the Federal Deposit Insurance Act.
You are further advised that.......................................................................................
(Name of assuming bank)
is an insured bank and that your deposits will continue to be insured by the Federal
Deposit Insurance Corporation in the manner and to the extent provided in said act.
10
(Name of bank)
(Address)
There may be included in such notice any additional information or
advice the bank may deem desirable.
The bank shall furnish to the Corporation an affidavit of mailing and
an affidavit of publication of the notice to depositors. The affidavit of
mailing should be in the form prescribed in § 307.1 (b) (1).
(b) The liquidating bank shall continue to file certified statements
and pay assessments thereon for the period its deposits are insured, as
provided by the Federal Deposit Insurance Act: Provided, That if the
liquidating bank, or the assuming bank as its agent, has given the re
quisite notice to the depositors of the assumption of the deposit liabilities
within 30 days after such assumption takes effect, then the liquidating
bank shall file a final certified statement, as provided for in §304.3 (s)
and (t), and shall pay to the Corporation the normal assessment thereon.11
If the deposits of the liquidating bank are assumed by a newly insured
bank, the liquidating bank is not required to file certified statements or
pay any assessment upon the deposits so assumed, after the semiannual
period in which the assumption takes effect.
(c) The Corporation will consider receipt of the following as satisfactory
evidence of such assumption:
(1) A certified copy of the resolution (i) duly authorizing the bank’s
officers to enter into a contract for the sale of the bank’s assets to another
insured bank upon the consideration of the assumption by it of the
deposit liabilities, and (ii) duly placing the bank in liquidation; and
(2) A certified copy of the assumption agreement, provided it con
tains an express undertaking by an insured bank to pay the deposit
liabilities of the bank going into liquidation.
(d) The bank shall furnish to the Corporation the information called
for in § 307.1 (b) (6).
18 If this notice is given by the assuming bank as agent for the liquidating bank, it may add its
own name designating itself as agent.
11 See § 327.3 of this chapter.
178
FE D E R A L D EPOSIT IN SU R AN C E C O R PORATION
Pa r t
Sec.
308.1
308.2
308.3
308.4
308.5
308.6
308.7
308.8
308.9
308.10
308.11
308.12
308.13
308.14
308.15
308.16
308.17
308.18
308.19
308— I n v o l u n t a r y
T e r m in a t io n
of
I nsured Status
Termination of insured status by the Corporation.
Appearance and practice before the Corporation.
Notice of hearing.
Conduct of hearings.
Rules of evidence.
Proposed findings and conclusions and recommended decision.
Exceptions.
Briefs.
Certification of record to Board of Directors.
Consent to termination of insured status.
Oral argument before Board of Directors.
Decision of Board of Directors.
Filing papers.
Service; proof of service.
Copies.
Computing time.
Documents in proceedings confidential.
Formal requirements as to papers filed.
Termination of insured status of banking institution not engaged
in the business of receiving deposits other than trust funds.
A u t h o r it y : §§ 308.1 to 308.19 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply secs. 8, 10, Pub. Law 797, 81st Cong.
§ 308.1 Termination of insured status by the Corporation. Under the
authority of section 8 (a) of the Federal Deposit Insurance Act the Board
of Directors of the Corporation may terminate the insured status of an
insured bank. The procedure for terminating the insured status of a
bank as therein prescribed will be followed and the hearing required
thereunder will be conducted in accordance with the rules and practice
set forth in this part.
§ 308.2 Appearance and practice before the Corporation— (a) Power
of attorney and notice of appearance. The Corporation maintains no
register of attorneys or agents who may practice before it nor is an
application for admission to practice required. Any person desiring to
appear before or transact business with the Corporation in a representa
tive capacity may be required to file with the Secretary of the Cor
poration a power of attorney showing his authority to act in such ca
pacity, and he may be required to show to the satisfaction of the Board
of Directors that he has the requisite qualifications. Attorneys and
representatives of parties to proceedings shall file a written notice of
appearance with the Secretary or with the trial examiner.
(b)
Suspension and disbarment. Any person appearing before the
Board of Directors or before a trial examiner in a representative capacity,
R U LES A N D R E G U LATIO N S OF TH E CORPORATION
179
or desiring so to act, may for cause, sufficient in the judgment of the
Board of Directors, be suspended or disbarred from so doing, provided
that charges shall be preferred by the Board of Directors against such
representative and he shall be afforded an opportunity to be heard
thereon.
(c)
Summary suspension. Contemptuous conduct at an argument
before the Board of Directors or at a hearing before a trial examiner
shall be ground for exclusion therefrom and suspension for the duration
of the argument or hearing.
§ 308.3 Notice of hearing. Whenever a hearing is ordered by the
Board of Directors in any proceedings a Notice of Hearing shall be given
by the Secretary or other designated officer of the Corporation to the
bank involved and the appropriate supervisory authority. Such notice
shall designate the time and place of the hearing, the nature thereof, the
trial examiner and shall specify the charges against the bank and shall
be delivered by personal service, by registered mail to last known address,
or other appropriate means, at least 30 days in advance of the hearing.
§ 308.4 Conduct of hearings. Any hearing shall be held before a
person designated by the Board of Directors as the trial examiner and,
unless otherwise provided in the notice of hearing, shall be conducted
as hereinafter provided.
(a) Authority of trial examiner. The trial examiner at the hearing
shall have authority to administer oaths and affirmations, take or cause
depositions to be taken, examine witnesses and receive evidence and rule
upon the admissibility of evidence and other matters that normally and
properly arise in the course of the hearing; to subpena any officer or
employee of the insured bank, to compel his attendance, and to require
the production of any books, records or other papers of the insured
bank which are relevant or material to the inquiry, but he shall have
no power to decide any motion to dismiss the proceedings or other
motion which results in a final determination of the merits of the pro
ceedings. Except as authorized by law, the trial examiner shall not
consult any person or party on any fact in issue unless upon notice and
opportunity for all parties to participate, nor be responsible to or subject
to the supervision or direction of any officer, employee, or agent engaged
in the performance of investigative or supervisory functions. The trial
examiner may hold conferences before or during the hearing for the
settlement or simplification of issues by consent of the bank and counsel
for the Corporation.
(b) Attendance at hearings. A hearing shall be private and shall be
attended only by the bank and its representatives or counsel, repre
sentatives of the Corporation, witnesses, and other persons having an
official interest in the proceedings; Provided, however, That on the written
request of the bank or counsel for the Corporation, or on its own motion,
180
FE D E RA L DEPOSIT IN SU RAN CE CORPORATION
the Board of Directors when not prohibited by law, may permit other
persons to attend or may order the hearing to be public.
(c) Transcript of testimony. Hearings shall be reported and tran
scripts will be available at cost to the bank and, if the Board of Directors
has ordered the hearing to be public, to the public. At the close of the
hearing a complete transcript of the testimony taken, together with any
exhibits and any briefs or memoranda of law filed theretofore on behalf
of the bank or counsel for the Corporation, shall be filed with the Secre
tary. Requested corrections to a transcript of record shall be considered
only if offered within 10 days after the date the transcript is filed with
the Secretary (or within 10 days after the bank’s receipt of a copy of
such transcript, if ordered by the bank before conclusion of the hearing).
Requested corrections shall be filed with the Secretary and shall be served
upon the other party to the proceedings as provided in § 308.14. The
trial examiner shall have authority to act upon motions to correct the
record.
(d) Order of procedure. The counsel for the Corporation shall open
and close.
(e) Continuances and changes or extensions of time and changes of
place of hearing. Except as otherwise expressly provided by law, the
Board of Directors may by the notice of hearing, or subsequent order,
provide time limits different from those specified in this part, may on
its own motion or for cause shown extend any time limits prescribed by
these rules or the notice of hearing, and may continue or adjourn any
hearing. The trial examiner may continue or adjourn a hearing to such
time and place as may be ordered by him.
(f) Call for further evidence, oral argument and briefs, reopening of
hearings. The trial examiner may call for the production of further
evidence upon any issue, may permit oral arguments and submission
of briefs at the hearing, and, upon appropriate notice, may reopen any
hearing at any time prior to the certification of his recommended decision
to the Board of Directors, or the Board of Directors may reopen any
hearing at any time prior to its order disposing of the proceeding.
(g) Depositions. The Board of Directors or trial examiner may order
evidence to be taken by deposition in any proceeding at any stage thereof.
Such depositions may be taken by the trial examiner or before any person
designated by the Board of Directors or trial examiner and having power
to administer oaths. Unless notice be waived, no deposition shall be
taken except after at least 5 days’ notice to the bank and counsel for
the Corporation.
Any party desiring to take the deposition of a witness shall make
application in writing, setting out the reasons why such deposition
should be taken, stating the time when, the place where, and the name
and post-office address of the person before whom, it is desired the
deposition be taken, the name and post-office address of the witness,
R U LES AN D RE G U LATIO N S OF TH E CORPORATION
181
and the subject matter or matters concerning which the witness is
expected to testify. If good cause is shown, the Board or trial examiner
will make and serve upon the bank, or its counsel, and counsel for the
Corporation, an order wherein the Board of Directors or trial examiner
shall name the witness whose deposition is to be taken and specify the
time when, the place where, and the person before whom, the witness
is to testify, but such time and place, and the person before whom the
deposition is to be taken so specified in the order, may or may not be
the same as those named in the application. The testimony of the witness
shall be reduced to writing by the person before whom the deposition
is taken, or under his direction, after which the deposition shall be
subscribed by the witness and certified as a true and complete transcript
of the testimony by the person before whom the deposition was taken and
by him forwarded as specified in the order with three additional copies
thereof made by him or under his direction. A certified copy thereof
shall be furnished to the bank, or its counsel, and to counsel for the
Corporation. Witnesses whose depositions are taken, and the person
taking such depositions, shall severally be entitled to the same fees as
are paid for like services in the courts of the United States which shall
be paid by the party upon whose application the deposition was taken.
§ 308.5 Rules of evidence— (a) Evidence. Every party shall have
the right to present his case or defense by oral and documentary evidence,
to submit rebuttal evidence and to conduct such cross examination as
may be required for a full and true disclosure of the facts. Irrelevant,
immaterial or unduly repetitious evidence shall be excluded.
(b) Objections. Objections to the admission or exclusion of evidence
shall be in short form, stating the grounds of objections relied upon, and
the transcript shall not include argument thereon except as ordered by
the trial examiner. Rulings on such objections and on any other matters
shall be a part of the transcript. Failure to object to admission or ex
clusion of evidence or to any ruling shall be considered a waiver of such
objection.
(c) Official notice. All matters officially noticed by the trial ex
aminer shall appear on the record.
§ 308.6 Proposed findings and conclusions and recommended decision—
(a) Proposed findings and conclusions and supporting briefs. Within 15
days after the filing of the transcript with the Secretary (or within 15
days after the bank’s receipt of a copy of such transcript, if ordered by
the bank before the conclusion of the hearing) the bank or counsel for
the Corporation may file with the Secretary for submission to the trial
examiner proposed findings and conclusions, which may be accompanied
by a brief or memorandum in support thereof. A copy of such proposals
and brief or memorandum in support thereof shall be delivered by the
Secretary to the trial examiner and a copy shall be served by the Secre
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FE D E R A L DEPOSIT IN SU R AN C E C O RPORATION
tary upon the other party to the proceedings. All such proposed findings
and conclusions shall be a part of the record.
(b) Recommended decision. The trial examiner, within 15 days
after the expiration of the time allowed for filing proposed findings and
conclusions, shall file with the Secretary his recommended decision in
the form prescribed by law.
(c) Service of recommended decision. A copy of the recommended
decision shall be forthwith served on the bank and on counsel for the
Corporation by the Secretary.
§ 308.7 Exceptions— (a) Filing. Within 15 days after receipt of a
copy of the recommended decision of the trial examiner, the bank or
counsel for the Corporation may file with the Secretary exceptions to
the recommended decision of the trial examiner or any portion thereof
or to his failure to adopt a proposed finding or conclusion, or to the ad
mission or exclusion of evidence or to any other ruling. A copy of such
exceptions shall be forthwith delivered by the Secretary to the trial
examiner and a copy shall be served on the other party to the proceedings.
Exceptions shall be argued only if a hearing is ordered before the Board
of Directors.
(b)
Waiver. Failure to file exceptions to the recommended decision
of the trial examiner or any portion thereof, or to his failure to adopt a
proposed finding or conclusion, or to the admission or exclusion of evi
dence, or to any ruling, within the time so required, shall be deemed to
be a waiver of the objections thereto.
§ 308.8 Briefs— (a) Filing. Within the time provided for filing of
exceptions, the bank or counsel for the Corporation may file a brief in
support of his conclusion and exceptions.
(b) Contents. All briefs shall be confined to the particular matters
in issue. Each exception or proposed finding or conclusion which is
briefed shall be supported by a concise argument or by citation of such
statutes, decisions or other authorities and by page reference to such
portions of the record or recommended decision of the trial examiner as
may be relevant. If the exception relates to the admission or exclusion
of evidence, the substance of the evidence admitted or excluded shall
be set forth in the brief with appropriate references to the transcript.
Exceptions not briefed may be regarded by the Board of Directors as
waived.
(c) Reply briefs. Reply briefs may be filed within 10 days after
service of briefs and shall be confined to matters in original briefs of
opposing parties.
(d) Service of briefs. Copies of briefs shall be served by the Secretary
on the other party to the proceedings.
(e) Delays. Briefs not filed on or before the time fixed in this part
will be received only upon special permission of the Board of Directors.
§ 308.9 Certification of record to Board of Directors. Within 15 days
R U LES AN D R E G U LATIO N S OF TH E C ORPORATION
183
after expiration of the time required for filing exceptions to his recom
mended decision, the trial examiner shall file with the Secretary of the
Corporation and certify to the Board of Directors for initial decision
the entire record, including the transcript of testimony, exhibits (in
cluding on request of the party concerned any exhibits excluded from
evidence) recommended findings and conclusions, exceptions and rulings
thereon, any briefs or memoranda filed by any party or counsel for the
Corporation in connection therewith and his recommended decision. A
copy of his ruling on the exceptions shall be served on the bank and on
the counsel for the Corporation.
§ 308.10 Consent to termination of insured status. Unless a bank,
which has received notice of intention to terminate its status as an insured
bank pursuant to section 8 (a) of the Federal Deposit Insurance Act,
shall appear at the hearing designated in the notice of hearing by a duly
authorized representative, it shall be deemed to have consented to the
termination of its status as an insured bank. In such event counsel for
the Corporation may, but need not, present his case. Within 10 days
of the date or close of the hearing the trial examiner shall certify the
transcript and exhibits, if any, to the Board of Directors with his recom
mended decision.
§ 308.11 Oral argument before Board of Directors. Upon written
request of the bank or counsel for the Corporation, made within 10 days
after the certification of the record to the Board of Directors, the Board
may order the matter to be set down for oral argument before it at the
time and place specified in such order.
§ 308.12 Decision of Board of Directors. Appropriate members of
the staff, who are not engaged in the performance of investigative or
prosecuting functions, may advise and assist the Board of Directors in
the consideration of the matter and in the preparation of appropriate
documents for its disposition. Copies of the decision of the Board of
Directors shall be furnished by the Secretary to the bank, to counsel for
the Corporation and to the appropriate State supervisory authority,
in the case of a State bank, to the Board of Governors of the Federal
Reserve System, in the case of a State member bank, or to the Comp
troller of the Currency, in the case of a national bank.
§ 308.13 Filing papers. Recommended decisions, exceptions, briefs
and other papers required to be filed with the Board of Directors or Secre
tary in any proceeding shall be filed with the Secretary, Federal Deposit
Insurance Corporation, Washington 25, D. C. Any such papers may be
sent to the Secretary by mail or express but must be received by the
Secretary in the office of the Corporation in Washington, D. C., or post
marked by a post office, within the time limit for such filing.
§ 308.14 Service; proof of service. All documents or papers required
by this part to be served on the bank, or on counsel for the Corporation,
shall be served by the Secretary or other designated officer of the Board
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F E D E R A L DEPOSIT IN SU R AN C E CORPORATION
of Directors. Such service, except on counsel for the Corporation, shall
be made by personal service on, or by registered mail addressed to the
last known address of, the attorney or representative of record of any
party. If there is no attorney or representative of record, such service
shall be made upon the bank.
§ 308.15 Copies. Unless otherwise specifically provided in the
notice of hearing, an original and 7 copies of all documents and papers
required or permitted to be filed or served under this part, except the
transcript of testimony and exhibits, shall be furnished to the Secretary.
§ 308.16 Computing time. In computing any period of time pre
scribed or allowed by this part or by order of the Board of Directors,
the day of the act, event, or default after which the designated period
of time begins to run is not to be included. The last day of the period
so computed is to be included, unless it is a Saturday, Sunday, or a
legal holiday in the District of Columbia, in which event the period
runs until the end of the next day which is neither a Saturday, Sunday
nor a legal holiday. Intermediate Saturdays, Sundays and holidays
shall be included in the computation. A half-holiday shall be considered
as other days and not as a holiday.
§ 308.17 Documents in proceedings confidential. Unless and until
otherwise ordered by the Board of Directors, the notice of hearing, the
transcript, the recommended decision of the trial examiner, exceptions
thereto, proposed findings or conclusions, and briefs in support of such
proposals or in support of or in opposition to such exceptions, the findings
and conclusions of the Board of Directors and other papers which are
filed in connection with any hearing shall not be made public, and shall
be for the confidential use only of the Board of Directors, the bank and
appropriate supervising authorities.
§ 308.18 Formal requirements as to papers filed— (a) Form. All
papers filed under this part shall be typewritten, mimeographed, or
printed.
(b) Signature. All papers must be signed by an officer of the bank
filing the same, or its duly authorized agent or attorney, or counsel for
the Corporation, and, except in the case of counsel for the Corporation,
must show the address of the signer.
(c) Caption. All papers filed must include at the head thereof, or
on a title page, the name of the Corporation, the name of the bank,
and the subject of the particular paper.
§ 308.19 Termination of insured status of banking institution not
engaged in the business of receiving deposits other than trust funds. When
ever the Board of Directors shall have evidence indicating that an insured
banking institution is not engaged in the business of receiving deposits,
other than trust funds, it will give notice in writing to the banking
institution of such fact, and will direct the banking institution to show
cause why the insured status of the banking institution should not be
R U LES A N D RE G U LATIO N S OF TH E CORPORATION
185
terminated under the provisions of section 8 (c) of the Federal Deposit
Insurance Act. The banking institution shall have thirty days, or such
greater period of time as the Board of Directors shall prescribe, after
receipt of such notice to submit affidavits or other written proof that it
is engaged in the business of receiving deposits, other than trust funds.
The Board of Directors, may in its discretion, upon written request of
the banking institution, authorize a hearing before it or any person
designated by it. If upon consideration of the evidence, the Board of
Directors determines that the banking institution is not engaged in the
business of receiving deposits, other than trust funds, the Corporation
shall notify the banking institution that its insured status will terminate
at the expiration of the first full semiannual assessment period following
such notice. Within thirty days prior to the date of the termination of
the insured status of a banking institution under section 8 (c) of the
Federal Deposit Insurance Act, the banking institution shall publish
a notice of such termination in not less than two issues of a local newspaper
of general circulation and shall furnish the Corporation with proof of
publication. The notice shall be as follows:
(Date)
Notice:
Please be advised that the status of the...................................................................
(Name of banking institution)
(City or town)
(State)
as an insured bank under the Federal Deposit Insurance Act, will terminate on the
..................... day o f........................ ..................... 19........... and its deposits shall
thereupon cease to be insured.
(Name of banking institution)
(Address)
There may be included in such notice any additional information or
advice the banking institution may deem desirable.
Part
Sec.
309.1
309.2
309— C o n f id e n t ia l
I n f o r m a t io n
Unpublished information.
Opinions and orders.
A u t h o r it y : §§ 309.1 and 309.2 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply sec. 10, Pub. Law 797, 81st Cong.
§ 309.1 Unpublished information— (a) Confidential information and
records. All files, documents, reports, books, accounts, and records
(collectively referred to as “ records” in this section) pertaining to insured
banks, or the internal operations and affairs of the Corporation, in the
186
F E D E R A L D EPOSIT IN SU R AN C E CORPO R ATIO N
possession or under the control of the Corporation or any officer, agent,
or employee thereof, and all facts or information contained in such records
or acquired by said officers, agents, or employees in the performance of
their official duties (collectively referred to as “ information” in this
section) are confidential, unless prepared for public distribution by order
of the Board of Directors of the Corporation or its Chairman.
(b) Certain records and information also privileged. Records and
information pertaining to (1) examinations or investigations of insured
banks, (2) applications and reports to the Corporation by any bank
(exclusive of applications for loans or purchases of assets under section
13 (c) and (e) of the Federal Deposit Insurance Act), (3) proceedings
for the termination of the insured status of any bank, or (4) the internal
operations of the Corporation, are conditionally privileged as well as
confidential, and are sometimes referred to as “ privileged” in this section.
(c) Disclosure prohibited. Officers, agents, and employees of the
Corporation are prohibited from allowing any person to inspect, ex
amine, or copy any of said confidential or privileged records, or furnishing
copies thereof, or from disclosing any such confidential or privileged
information, except as hereinafter provided:
(1) The Chief of any Division having custody thereof, in his discretion,
may release or furnish any record or information, not privileged, to any
governmental agency, State or Federal, for use in the exercise of its
official duties; and to any other person upon a verified written applica
tion, which shall show that the applicant has a substantial interest
therein and the purpose for which it is to be used: Provided, That such
disclosure, in the opinion of the Division Chief, will not be prejudicial
to the Corporation or the public interest.
(2) The Chief of the Division of Examination may furnish to an in
sured nonmember bank copies of any reports of examination of such
bank (except the section designated “ confidential” ) and other informa
tion pertaining to its affairs: Provided, That copies of such reports of
examination and other information so furnished to an insured non
member bank shall remain the property of the Corporation and under
no circumstances shall the bank or any of its directors, officials, or
employees disclose or make public in any manner such reports or any
portion thereof or other information so furnished.
(3) The Chief of the Division of Examination may furnish to the
Comptroller of the Currency, to any Federal Reserve bank, and to any
commission, board, or authority having supervision of a State non
member bank, and to the Reconstruction Finance Corporation, if it
owns or holds as pledgee, or has under consideration an application
for the purchase of, any preferred stock, capital notes, or debentures in
such bank, copies of reports of examination made on behalf of the Cor
poration and other information pertaining to insured nonmember banks
for use in the exercise of their official duties: Provided, That such reports
R U L E S A N D R E G U LATIO N S OF TH E CORPORATION
187
of examination and other information so furnished to such officials or
agency shall remain the property of the Corporation and under no
circumstances shall any such official or agency disclose or make public
in any manner such reports or any portion thereof or other information
so furnished.
(4) The Chief of the Division of Examination may furnish to any
official of the Department of Justice any information regarding defalca
tions, burglaries, or robberies affecting insured banks, when, in his
opinion, there is urgent need for immediate action to be taken by such
Department in the investigation thereof or the apprehension or prosecu
tion of persons responsible therefor.
(5) The Chief of the Division of Research and Statistics may furnish
to the Comptroller of the Currency, to any Federal Reserve bank, and
to any commission, board, or authority having supervision of a State
nonmember bank copies of reports of condition made by insured banks
to the Corporation, including statements of assets, liabilities, and capital
accounts, and of earnings, expenses, and distribution of profits, for use
in the exercise of their official duties: Provided, That under no circum
stances shall such State or Federal officials make public the contents of
such reports or any portion thereof, except in the publication of general
statistical reports.
(6) The General Counsel of the Corporation may disclose to the proper
Federal prosecuting authorities any and all records and information
relating to irregularities discovered in open and closed insured banks
believed to constitute violations of the Federal criminal statutes. The
General Counsel may authorize the production of any record, the dis
closure of any information, and the giving of any testimony with respect
thereto, by any officer or employee of the Corporation, upon any pro
ceeding, hearing, or trial, civil or criminal, in any State or Federal court
or before any administrative board, commission, or committee. Such
authorization may be given only in response to a subpena or other
process duly issued and served upon the Corporation at its principal
office, which service may be by registered mail addressed to the Cor
poration at Washington, D. C., specifying the record requested, the
nature and scope of the testimony to be elicited, the name of the witness
and the place and time of appearance: Provided, That the General
Counsel, in his discretion, may waive the requirement of service of sub
pena or process when he believes it to be in the interest of justice to do
so. Without such prior authorization, any officer or employee required
to respond to a subpena or other legal process shall attend at the time
and place therein mentioned and respectfully decline to produce any
record or disclose any information or give any testimony with respect
thereto, basing his refusal upon this rule: Provided, That this prohibition
shall not apply to information which may be disclosed pursuant to and
in accordance with the provisions of subsection (b), section 22 of the
188
F E D E R A L DEPOSIT INSURxVNCE CORPORATION
Federal Reserve Act as amended by section 326 of the Banking Act
of 1935 (sec. 22, 38 Stat. 272, as amended; 12 U. S. C. 594) and, Provided
further, That when such requested records or information are privileged,
the General Counsel shall not authorize their production or disclosure
in any of the suits or proceedings hereinbefore mentioned, or otherwise,
except where the production of such evidence is requested in behalf of
the Corporation, the United States, or the person from whom such
privileged documents and information were obtained,
(d) Application for disclosure. Applications for disclosure of infor
mation or records hereunder should be addressed to the appropriate
Division Chief or the General Counsel of the Corporation, as the case
may be.
(e) Service of process on officer, agent, or employee. Any officer, agent,
or employee of the Corporation served with a subpena, order, or other
process requiring his personal attendance as a witness or the production
of records or information upon any proceeding mentioned in paragraph
(c) (6) of this section shall promptly advise (1) the court or tribunal
which issued the process, and the attorney for the party at whose in
stance the process was issued, if known, of the substance of this rule,
and (2) the General Counsel of the Corporation at Washington, D. C.,
of such service and of the records and information requested and any
facts which may be of assistance to the General Counsel in determining
whether such records and information should be made available.
(f) Authority of Chairman of Board of Directors. Notwithstanding
any of the foregoing provisions, the Chairman of the Board of Directors,
in his discretion and pursuant to law, may authorize the production,
examination, or inspection of any records, or the furnishing of copies
thereof, or the disclosure of any information, or may direct the General
Counsel or the Chief of any Division to refuse to permit the production,
examination, or inspection of any records, or the furnishing of copies
thereof, or the disclosure of any information, when in his opinion such
action is consistent with the public interest.
§ 309.2 Opinions and orders. A survey and review of the opinions
and orders heretofore made by the Board of Directors of the Corporation
in the adjudication of cases, in connection with licensing, supervision,
investigation, termination of insured status, payment of insured deposits,
and the administration of liquidations and receiverships, disclose that
their publication would not be of current interest or importance, they
are not cited as precedents, and are required for good cause to be held
confidential. Accordingly, they will not be published nor made available
to public inspection.
The Board of Directors will, however, either publish, or, in accordance
with published rule, make available for public inspection, final opinions
and orders in the adjudication of cases which are cited as precedents and
which are not required for good cause to be held confidential.
R U LES AN D R E G U L AT IO N S OF THE CORPORATION
189
Subchapter B—Regulations and Statements
of General Policy
Pa r t
325— I n t r o d u c t o r y
and
A u t h o r it y
§ 325.0 Scope. The regulations and statements of general policy
contained in this subchapter are promulgated pursuant to the provisions
of the Federal Deposit Insurance Act and are published pursuant to
the Administrative Procedure Act (60 Stat. 237), and other applicable
laws, and, in accordance with the provisions of section 3 (a) (3) of the
Administrative Procedure Act, contain rules adopted as authorized by
law and statements of general policy or interpretations formulated and
adopted by the Corporation for the guidance of the public.
(Sec. 9, Pub. Law 797, 81st Cong.)
Part
326— B a n k
O b l ig a t io n s P r e sc r ib e d
as
D epo sit s
Sec.
326.1
326.2
Deposits,
Money or its equivalent.
A u t h o r it y : §§ 326.1 and 326.2 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply sec. 3, Pub. Law 797, 81st Cong.
§ 326.1 Deposits. The term “ deposit” as used in section 3 (1) of
the Federal Deposit Insurance Act, shall include the following obli
gations:
(a) Outstanding drafts, cashier's checks and other officer's checks.
Outstanding drafts,1 cashier’s checks, and other officer’s checks issued
under any of the following circumstances:
(1) For money or its equivalent received by the issuing bank; or
(2) For a charge against a deposit account in the issuing bank; or
(3) In settlement of checks, drafts, or other instruments forwarded
to the issuing bank for collection.
(b) Certified checks. Checks drawn against a deposit account and
certified by the drawee bank.
(c) Traveler's checks and letters of credit. Outstanding traveler’s
checks or letters of credit on which the bank is primarily liable issued
under either of the following circumstances:
(1) For money or its equivalent received by the issuing bank; or
(2) For a charge against a deposit account in the issuing bank.
(d) Special purpose funds. Money received or held by the bank,
or the credit given therefor to an account including a special or mem
orandum account, which money or credit is held for a special or specific
i Drafts drawn on foreign correspondents or foreign branches and payable only in foreign countries
are not included in the term “ deposit.’*
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F E D E R A L D EPOSIT IN SU R AN C E C ORPORATION
purpose, regardless of whether the relationship thereby created is that
of debtor-creditor, fiduciary, or any other relationship.1
§ 326.2 Money or its equivalent. Under paragraphs (a) and (c) of
§ 326.1 drafts, cashier’s checks and other officer’s checks, traveler’s
checks and letters of credit must be regarded as issued for the equivalent
of money when issued in exchange for checks or drafts or for promissory
notes upon which the person procuring any of the enumerated instru
ments is primarily or secondarily liable.
Part
327— A sse ssm e n t s
Sec.
327.1
327.2
327.3
Classes of uncollected items eligible for deduction.
Periods of deduction for uncollected items.
Payment of assessments by banks whose insured status has
terminated.
327.4 Time of payment.
A u t h o r it y : §§ 327.1 to 327.4 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply secs. 7, 8, Pub. Law 797, 81st Cong.
§ 327.1 Cash items— (a) Definition. The term “ cash item,” as
used in section 7 of the Federal Deposit Insurance Act and in this part,
means any instrument providing for the payment of money which the
reporting bank has received in the regular course of business pursuant
to an agreement under which the bank has given credit to a deposit
account, and checks and bank drafts received and paid by it in the
regular course of business: Provided, That the instrument, check or
draft is in the process of collection and is payable on presentation: And,
provided further, That the payor or drawee of the instrument, check or
draft, is a bank or person other than the reporting bank or a branch
office or main office of the reporting bank other than the office where
the item is received. The term “ reporting bank” as used in this part
means the bank filing the certified statement for assessment purposes.
For the purposes of this paragraph a check or bank draft is deemed
paid by the reporting bank if the bank has given cash or other con
sideration therefor.
(b)
Cash items eligible for deduction. In computing the assessment
base, only cash items, as defined in this section, may be deducted. Such
cash items may be deducted without regard to whether withdrawal has
been made against the credit given to deposit accounts therefor. No
*
Special purpose funds, defined in § 326.1 (d), include, among others and without limitation to
those mentioned here, escrow funds, funds held as collateral security for an obligation due the bank or
others, withheld taxes, funds held for distribution or for purchase of securities or currency, or funds
held by the bank to meet its acceptances or letters of credit. The Corporation has consistently interpreted
the term “ deposit", as defined in the Federal Deposit Insurance Act since 1935, to include special purpose
funds as defined in § 326.1 (d). These special purpose funds are also deposits by general usage. This
clarification is made with the realization that some or all of the funds defined as special purpose funds
in 5 326.1 (d) may be within the term “ deposit” as defined in the Federal Deposit Insurance Act since
1935.
R U LES A N D R E G U LATIO N S OF TH E CORPORATION
191
cash item shall be deducted except in accordance with the provisions of
this part and unless such records are maintained as will readily permit
verification of the correctness thereof.
§ 327.2 Period of deduction for uncollected cash items— (a) Choice
of method. An insured bank may, at its option, use either of the two
following methods in computing its deductible cash items, namely:
(1) by multiplying by 2 the total of the cash items forwarded for collec
tion on the assessment base days which were received on said days
and the cash items held for clearings at the close of business on said
days which were received on said days, or (2) by deducting the total
of cash items forwarded for collection on the assessment base days and
cash items held for clearings at the close of business on said days plus
uncollected cash items paid or credited on preceding days: Provided,
The method selected must be followed for the entire assessment period.
If the second alternative method is used, the maximum periods of de
duction shall be as prescribed in the following paragraphs (b) and (c),
and no cash item may be considered as uncollected for any period in
excess of said maximum. No cash item shall be deducted after the bank
has had advice that the item has been paid or dishonored.
(b) Cash items paid or credited to deposit accounts in bank or branch
located in any Federal Reserve district. In the case of any insured bank
or branch located in any Federal Reserve district, cash items forwarded
for collection and cash items held for clearings at the close of business
on the base day shall be eligible for deduction for that day. Any cash
item forwarded for collection on preceding days which remains uncol
lected as of the close of business on the assessment base day shall be
eligible for deduction for the base day: Provided, That an item shall not
be considered as uncollected at the close of business on the base day if
such item has been outstanding for a period in excess of the time necessary
to send the item in due course to the Federal Reserve bank of the Federal
Reserve district or the branch of the subdistrict thereof in which the
reporting bank is located, plus the time allowed for collection from the
place where the item is payable, as shown on the current Time Schedule
of such Federal Reserve bank or branch thereof.
(c) Cash items paid or credited to deposit accounts in bank or branch
located outside of any Federal Reserve district. In the case of any insured
bank or branch located outside any Federal Reserve district, cash items
forwarded for collection and cash items held for clearings at the close of
business on the base day shall be eligible for deduction for that day.
Any cash item forwarded for collection on preceding days which remains
uncollected at the close of business on the assessment base day shall be
eligible for deduction for the base day: Provided, That an item shall
not be considered as uncollected at the close of business on the base day
if such item has been outstanding for a period in excess of the time from
the date the cash item is paid or credited to a deposit account and the
192
FE D E R A L DEPOSIT IN SU R AN C E CORPORATION
date of receipt (in the usual course of business) by the correspondent
bank to which the item is forwarded for collection plus (1) the collection
time allowed by the Federal Reserve time schedule for the district in
which the correspondent bank is located or (2) the actual collection time,
where the collection time is not included in the Federal Reserve time
schedule.
(d)
Construction of section. This section is not to be construed as
requiring any bank to clear items through any Federal Reserve bank
or branch thereof.
§ 327.3 Payment of assessments by banks whose insured status has
terminated— (a) Assumed deposits of terminating bank become deposits of
assuming bank. The deposit liabilities of an insured bank, if assumed
by another insured bank, will, except to the extent that depositors of
the first bank by affirmative action signify their express intention to
hold the first bank liable as a debtor, be presumed for assessment pur
poses to cease being deposit liabilities of the first bank on the date the
assumption becomes effective: Provided, That the requisite notice of
assumption be given to the depositors of the terminating bank.1 The
assumed deposits, for assessment purposes, are deposit liabilities of the
assuming bank from the date of assumption, whether or not the requisite
notice of assumption has been given to the depositors.
(b) Payment of assessments by assuming bank on assumed deposits of
terminating bank. Where the deposit liabilities of an insured bank are
assumed by another insured bank and the assuming bank agrees to file
the certified statement which the terminating bank is required to file,
the filing of such certified statement and the payment of the assessment
thereon by the assuming bank shall be deemed the acts of the terminating
bank: Provided, That the requisite notice of assumption1 be given to the
depositors of the terminating bank and, Provided further, That such
certified statement shall be filed separately from that required to be
filed by the assuming bank.
(c) Resumption of insured status before insurance of deposits ceases.
If a bank whose insured status has been terminated under section 8 (a)
or (b) of the Federal Deposit Insurance Act, makes application to the
Corporation, before the insurance of its deposits shall have ceased, to
be permitted to continue or to resume its status as an insured bank and
if the Board of Directors grant the application, the bank will be deemed,
for assessment purposes, to continue as an insured bank and must there
after furnish certified statements and pay assessments as though its
insured status had not been terminated. For the procedure to be followed
in making such application, see § 303.7 of this chapter.
i The requisite notice of assumption shall be the notice prescribed in § 307.3 of this chapter.
RU LES AN D RE G U LATIO N S OF TH E CORPORATION
193
§ 327.4 Time of 'payment. Each insured bank shall pay to the Cor
poration the amount of the semiannual assessment due to the Corporation,
as shown on its certified statement,2 at the time such statement is re
quired to be filed under Section 7 (b) of the Federal Deposit Insurance
Act.
Part
328— A d v e r t i s e m e n t
Sec.
328.0
328.1
of
M
e m b e r s h ip
Scope.
Mandatory requirements with regard to the official sign and its
display.
328.2 Mandatory requirements with regard to the official advertising
statement and manner of use.
328.3 Approved emblem and approved short title which insured banks
may use at their option.
A u t h o r i t y : §§ 328.fr to 328.3 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply sec. 18, Pub. Law 797, 81st Cong.
§ 328.0 Scope. The regulation contained in this part prescribes
the requirements with regard to the official sign insured banks must
display and the requirements with regard to the official advertising
statement insured banks must include in their advertisements. It also
prescribes an approved emblem and an approved short title which
insured banks may use at their option. It imposes no limitations on other
proper advertising of insurance of deposits by insured banks and does
not apply to advertisements published in foreign countries by insured
banks which maintain offices in such foreign countries in which offices
the deposits are not insured.
§ 328.1 Mandatory requirements with regard to the official sign and
its display— (a) Insured banks to display official sign. Each insured
bank shall continuously display an official sign as hereinafter prescribed
at each station or window where insured deposits are usually and nor
mally received in its principal place of business and in all its branches:
Providedj That no bank becoming an insured bank shall be required to
display such official sign until twenty-one (21) days after its first day
of operation as an insured bank. The official sign may be displayed by
any insured bank prior to the date display is required.
(b) Official sign. The official sign referred to in paragraph (a) of
sSee § § 304.1 and 304.3 of this chapter
FE D E R A L D EPOSIT IN SU R AN C E CORPORATION
194
this section shall be seven inches by three inches in size, and shall be of
the following design:
The Federal Deposit Insurance Corporation
W ASHINGTON, D. C.
$10,000
F O R ' e a c h ' d e p o s it o r
$10,000
Any insured bank may procure official signs from the Corporation or
may use any other sign of the same size, wording and appearance which
shall have been approved in writing by the Corporation as conforming
to the requirements of this section. Such approval will be given only
in individual cases where the official sign does not harmonize with the
bank’s counters or fixtures or where it cannot be adequately displayed
because of the type of construction of the bank’s counters or fixtures.
For the procedure to be followed in applying for such approval see
§ 303.8 of this chapter.
The Corporation shall furnish to banks an order blank for use in
procuring the official signs. Any bank which promptly, after receipt of
the order blank, fills it in, executes it, and properly directs and forwards
it to the Federal Deposit Insurance Corporation, Washington 25, D. C.,
shall not be deemed to have violated this regulation on account of not
displaying an official sign, or signs, unless the bank shall omit to display
such official sign or signs after same have been tendered to the bank
through the instrumentality of the United States mail or otherwise.
(c) Receipt of deposits at same teller’s station or window as noninsured
bank. An insured bank is forbidden to receive deposits at any teller’s
station or window where any noninsured bank receives deposits.
(d) Required changes in official sign. The Corporation may require
any insured bank, upon at least thirty days written notice, to change
the wording of its official signs in a manner deemed necessary for the
protection of depositors or others.
§ 328.2 Mandatory requirements with regard to the official advertising
statement and manner of use.— (a) Insured banks to include official ad
vertising statement in all advertisements except as provided in paragraph (c)
of this section. Each insured bank shall include the official advertising
statement, prescribed in paragraph (b) of this section, in all of its ad
vertisements except as provided in paragraph (c) of this section.
An insured bank is not required to include the official advertising
R U LES AN D R E G U LATIO N S OF THE CORPORATION
195
statement in its advertisements until thirty (30) days after its first day
of operation as an insured bank.
In cases where the Board of Directors of the Federal Deposit Insurance
Corporation shall find the application to be meritorious, that there has
been no neglect or wilful violation in the observance of this section and
that undue hardship will result by reason of its requirements, the Board
of Directors may grant a temporary exemption from its provisions to a
particular bank upon its written application setting forth the facts.
For the procedure to be followed in making such application see § 303.8
of this chapter.
In cases where advertising copy not including the official advertising
statement is on hand on the date the requirements of this section become
operative, the insured bank may cause the official advertising statement
to be included by use of a rubber stamp or otherwise.
(b) Official advertising statement. The official advertising statement
shall be in substance as follows: “ Member of the Federal Deposit In
surance Corporation.” The word “ the” or the words “ of the” may be
omitted. The words “ This bank is a” or the words “ This institution is
a” or the name of the insured bank followed by the words “ is a” may be
added before the word “ member” .
(c) Types of advertisements which do not require the official advertising
statement. The following is an enumeration of the types of advertisements
which need not include the official advertising statement:
(1) Statements of condition and reports of condition of an insured
bank which are required to be published by State or Federal law;
(2) Bank supplies such as stationery (except when used for circular
letters), envelopes, deposit slips, checks, drafts, signature cards, deposit
pass books, certificates of deposit, etc.;
(3) Signs or plates in the banking offices or attached to the building
or buildings in which the banking offices are located;
(4) Listings in directories;
(5) Advertisements not setting forth the name of the insured bank;
(6) Display advertisements in bank directory, provided the name of
the bank is listed on any page in the directory with a symbol or other
descriptive matter indicating it is a member of the Federal Deposit
Insurance Corporation;
(7) Joint or group advertisements of banking services where the names
of insured banks and noninsured banks or institutions are listed and form
a part of such advertisements;
(8) Advertisements by radio which do not exceed thirty (30) seconds
in time;
(9) Advertisements by television, other than display advertisements,
which do not exceed thirty (30) seconds in time;
(10) Advertisements which are of the type or character making it
impractical to include therein the official advertising statement, provided
196
FE D E R A L DEPOSIT IN SU R AN C E C ORPORATION
such exclusion may only be made upon the prior written consent of the
Corporation.
(11) Advertisements which contain a statement to the effect that the
bank is a member of the Federal Deposit Insurance Corporation, or
that the bank is insured by the Federal Deposit Insurance Corporation,
or that its deposits or depositors are insured by the Federal Deposit
Insurance Corporation to the maximum of $10,000 for each depositor.
(12) Advertisements relating to the making of loans by the bank or
loan services;
(13) Advertisements relating to safe keeping box business or services;
(14) Advertisements relating to trust business or trust department
services;
(15) Advertisements relating to real estate business or services;
(16) Advertisements relating to armored car services;
(17) Advertisements relating to service charges or analysis charges;
(18) Advertisements relating to securities business or securities de
partment services;
(19) Advertisements relating to travel department business, including
traveler’s checks on which the bank issuing or causing to be issued the
advertisement is not primarily liable;
(20) Advertisements relating to savings bank life insurance.
(d) Outstanding billboard advertisements. Where an insured bank
has billboard advertisements outstanding which are required to include
the official advertising statement and has direct control of such ad
vertisements either by possession or under the terms of a contract, it
shall, as soon as it can consistent with its contractual obligations, cause
the official advertising statement to be included therein.
(e) Official advertising statement in non-English language. The
non-English equivalent of the official advertising statement may be
used in any advertisement: Provided, That the translation has had the
prior written approval of the Corporation.
§ 328.3 Approved emblem and approved short title which insured
banks may use at their option— (a) Emblem. The only emblem approved
for use by insured banks, when reference therein is made to deposit
insurance or membership in the Corporation, is the one reproduced below:
RU LES AN D RE G U LATIO N S OF TH E CORPORATION
197
(b) Short title. The following short title is approved for use by insured
banks only on signs or plates attached to the outside of the bank building:
“ MEMBER OF FDIC.”
(c) Use of emblem or short title. If an insured bank desires to use
the emblem, it may do so in any of its advertisements and on any of its
bank supplies. Since the approved emblem contains the official adver
tising statement in the outside circle, its use in advertisements requiring
the official advertising statement will satisfy the mandatory requirements
of § 328.2.
Part
329— P a y m e n t
of
D epo sit s
N
and
onm ember
I nterest T h ereon
by
I n su r ed
B anks
Sec.
329.0 Scope.
329.1 Definitions.
329.2 Demand deposits.
329.3 Maximum rate of interest on time and savings deposits.
329.4 Payment of time deposits before maturity.
329.5 Notice of withdrawal of savings deposits.
329.6 Maximum rates of interest payable on time and savings deposits
by insured nonmember banks.
A u t h o r it y : §§ 329.0 to 329.6 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply sec. 18, Pub. Law 797, 81st Cong.
§ 329.0 Scope. The regulation contained in this part relates to the
payment of deposits and interest thereon by insured nonmember banks.
This part is not applicable to banks which are members of the Federal
Reserve System. Regulation Q (Part 217 of this title), prescribed by
the Board of Governors of the Federal Reserve System for banks which
are members of that System, is not applicable to insured banks which
are not members of the Federal Reserve System, except to the extent
that the State law of a particular State provides otherwise. The provisions
of this part do not apply to mutual savings banks or to any deposit in
a bank located outside of, or payable only at a bank’s office which is
located outside of, the States of the United States and the District of
•Columbia.
§ 329.1 Definitions— (a) Demand deposits. The term “ demand
deposit” includes every deposit which 'is not a “ time deposit” or “ savings
deposit” , as defined below.
(b) Time deposits. The term “ time deposits” means “ time certificates
of deposit” and “ time deposits, open account” , as defined below.
(c) Time certificates of deposit. The term “ time certificate of deposit”
means a deposit evidenced by a negotiable or nonnegotiable instrument
which provides on its face that the amount of such deposit is payable:
198
F E D E R A L DEPOSIT IN SU R AN C E CORPORATION
(1) On a certain date, specified in the instrument, not less than thirty
(30) days after the date of the deposit; or
(2) At the expiration of a specified period not less than thirty (30)
days after the date of the instrument; or
(3) Upon written notice to be given not less than thirty (30) days
before the date of repayment.1
(d) Time depositsj open account. The term “ time deposit, open
account” means a deposit, other than a “ time certificate of deposit” or
a “ savings deposit” , with respect to which there is in force a written
contract with the depositor that neither the whole nor any part of such
deposit may be withdrawn, by check or otherwise, prior to the date
of maturity, which shall be not less than thirty (30) days after the date
of the deposit,2 or prior to the expiration of the period of notice which
must be given by the depositor in writing not less than thirty (30) days
in advance of withdrawals.3
(e) Savings deposits. The term “ savings deposit” means a deposit
evidenced by a passbook consisting of funds (1) deposited to the credit
of one or more individuals or of a corporation, association, or other
organization operated primarily for religious, philanthropic, charitable,
educational, fraternal, or other similar purposes and not operated for
profit,4 or (2) in which the entire beneficial interest is held by one or
more individuals or by such a corporation, association, or other organi
zation and in respect to which:
(i) The depositor is required, or may at any time be required, by the
bank to give notice in writing of an intended withdrawal not less than
thirty (30) days before such withdrawal is made; or the bank consistently
continues to adhere to a practice existing prior to January 23, 1936, of
requiring notice of at least fifteen (15) days before permitting withdrawal;
(ii) Withdrawals are permitted in only two ways, either upon presenta
tion of the passbook through payment to the person presenting the pass
book, or without presentation of the passbook, through payment to the
depositor himself but not to any other person, whether or not acting for
the depositor.5
The provisions of subparagraphs (1) and (2) of this paragraph, limiting
savings deposits to funds of certain classes of persons, shall not be ap
1 If the certificate of deposit provides merely that the bank reserves the right to require notice of
not less than thirty (30) days before any withdrawal is made, the bank must require such notice before
permitting withdrawal.
2 Deposits, such as Christmas club accounts and vacation club accounts, which are made under
written contracts providing that no withdrawal shall be made until a certain number of periodic deposits
have been made during a period of not less than three (3) months, constitute “ time deposits, open ac
count” , even though some of the deposits are made within thirty (30) days from the end of such period.
*
If a deposit be made with respect to which the bank merely reserves the right to require notice
of not less than thirty (30) days before withdrawal is made, the bank must require such notice to be given
before permitting withdrawal.
4 Deposits in joint accounts of two or more individuals may be classified as savings deposits if they
meet the other requirements of the above definition, but deposits of a partnership operated for profit
may not be so classified. Deposits to the credit of an individual of funds in which any beneficial interest
is held by a corporation, partnership, association, or other organization operated for profit or not operated
primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes may
not be classified as savings deposits.
5 Presentation of a passbook may be made over the counter or through the mails; and payment
may be made over the counter, through the mails or otherwise, subject to the limitations contained
herein as to the person to whom such payment may be made.
R U LES AN D RE G U LATIO N S OF TH E CORPORATION
199
plicable to deposits received and credited on or before February 1, 1936,
to accounts evidenced by passbooks in insured nonmember banks and
these deposits, together with interest subsequently payable on such
deposits, less any withdrawals from such accounts, may be classed by
insured nonmember banks as savings deposits under the terms of this
paragraph, even though such deposits belong to an association, or
ganization, or corporation organized for profit. The said provisions of
subparagraphs (1) and (2) of this paragraph, however, shall be applicable
to deposits received subsequently to February 1, 1936, whether or not
such deposits are credited to an account existing prior to February 1,
1936.
The presentation by any officer, agent or employee of the bank of a
passbook or a duplicate thereof retained by the bank or by any of its
officers, agents or employees is not a presentation of the passbook within
the meaning of this part except where the passbook is held by the bank
as a part of an estate of which the bank is a trustee or other fiduciary,
or where the passbook is held by the bank as security for a loan. If a
passbook is retained by the bank, it may not be delivered to any person
other than the depositor for the purpose of enabling such person to present
the passbook in order to make a withdrawal, although the bank may
deliver the passbook to a duly authorized agent of the depositor for
transmittal to the depositor.
Every withdrawal made upon presentation of a passbook shall be
entered in the passbook at the time of the withdrawal, and every other
withdrawal shall be entered in the passbook as soon as practicable after
the withdrawal is made.
§ 329.2 Demand deposits— (a) Interest prohibited. Except as pro
vided in this part, no insured nonmember bank shall directly or indirectly,
by any device whatsoever, pay any interest on any demand deposit.
Within this part any payment to or for the account of any depositor as
compensation for the use of funds constituting a deposit shall be con
sidered interest.6
(b)
Exceptions. The prohibition stated in paragraph (a) of this
section does not apply to:
(1)
Payment of interest accruing before August 24, 1937, on any
deposit made by a “ savings bank” 7 as defined in the Federal Deposit
Insurance Act, or by a mutual savings bank;
6 The absorption of normal or customary exchange charges by an insured nonmember bank, in
connection with the routine collection for its depositors of checks drawn on other banks, does not con
stitute the payment of interest within the provisions of this part.
7Section 3 (g) of the Federal Deposit Insurance Act provides:
“ The term ‘savings bank’ means a bank (other than a mutual savings bank) which transacts its
ordinary banking business strictly as a savings bank under State laws imposing special requirements
on such banks governing the manner of investing their funds and of conducting their business: Pro
vided, That the bank maintains, until maturity date or until withdrawn, all deposits made with it (other
than funds held by it in a fiduciary capacity) as time savings deposits of the specific term type or of the
type where the right is reserved to the bank to require written notice before permitting withdrawal:
Provided further, That such bank to be considered a savings bank must elect to become subject to regu
lations of the Corporation with respect to the redeposit of maturing deposits and prohibiting withdrawal
of deposits by checking except in cases where such withdrawal was permitted by law on August 23, 1935
from specifically designated deposit accounts totaling not more than 15 per centum of the bank’s total
deposits.”
200
federal
d e p o s it
in s u r a n c e
c o r p o r a t io n
(2) Payment of interest accruing before August 24, 1937, on any
deposit of public funds8 made by or on behalf of any State, county,
school district, or other subdivision or municipality, or on any deposit
of trust funds, if the payment of interest with respect to such deposit
of public funds or of trust funds is required by State law when such
deposits are made in State banks;
(3) Payment of interest in accordance with the terms of any certificate
of deposit or other contract which was lawfully entered into in good
faith before February 1, 1936 (or, if the bank became an insured non
member bank thereafter, before the date upon which it became an insured
nonmember bank), which was in force on such date, and which may not
legally be terminated or modified by such bank at its option and without
liability; but no such certificate of deposit or other contract may be
renewed or extended unless it be modified to eliminate any provision
for the payment of interest on demand deposits, and every insured non
member bank shall take such action as may be necessary, as soon as
possible consistently with its contractual obligations, to eliminate from
any such certificate of deposit or other contract any provision for the
payment of interest on demand deposits.
(c)
Deposits in savings banks. Deposits in “ savings banks” 9 in
specifically designated deposit accounts with respect to which with
drawal by checking is permitted in accordance with section 3 (g) of the
Federal Deposit Insurance Act, shall, for the purposes of this part, be
classed as demand deposits.
§ 329.3 Maximum rate of interest on time and savings deposits— (a)
Maximum rate prescribed from time to time. Except in accordance with
the provisions of this part, no insured nonmember bank shall pay interest
on any time deposit or savings deposit in any manner, directly or in
directly, or by any method, practice, or device whatsoever. No insured
nonmember bank shall pay interest on any time deposit or savings
deposit at a rate in excess of such applicable maximum rate as the Board
of Directors of the Federal Deposit Insurance Corporation shall prescribe
from time to time; and any rate or rates which may be so prescribed by
the Board will be set forth in supplements to this part (see § 329.6),
which will be issued in advance of the date upon which such rate or
rates become effective.
(b)
Modification of contracts to conform to regulation. No certificate
of deposit or other contract shall be renewed or extended unless it be
modified to conform to the provisions of this part, and every insured
nonmember bank shall take such action as may be necessary, as soon as
possible consistently with its contractual obligations, to bring all of its
outstanding certificates of deposit or other contracts into conformity
with the provisions of this part.
8
Deposits of moneys paid into State courts by private parties pending the outcome of litigation
are not deposits of “ public funds” , within the meaning of the above provision.
4See footnote 7.
RU LES AN D RE G U LATIO N S OF TH E CORPORATION
2 01
(c) Savings deposits received during the first 5 days of month. An
insured nonmember bank may pay interest on a savings deposit received
during the first 5 days of any calendar month at the applicable maximum
rate prescribed pursuant to the provisions of paragraph (a) of this section,
calculated from the first day of such calendar month until such deposit
is withdrawn or ceases to constitute a savings deposit under the provi
sions of this part, whichever shall first occur.
(d) Continuance of time deposit status. A deposit which was a time
deposit at the date of deposit continues to be such until maturity, al
though it has become payable within thirty (30) days, and interest at a
rate not exceeding that prescribed pursuant to the provisions of para
graph (a) of this section may be paid until maturity upon such deposit.
A time deposit or a savings deposit, with respect to which notice of
withdrawal has been given, continues to be such until the expiration
of the period of such notice, and interest may be paid upon such deposit
until the expiration of the period of such notice at a rate not exceeding
that prescribed pursuant to the provisions of paragraph (a) of this
section. Interest at a rate not exceeding that prescribed pursuant to
the provisions of paragraph (a) of this section may be paid upon savings
deposits with respect to which notice of intended withdrawal has not
actually been required or given. No interest shall be paid by an insured
nonmember bank on any amount which by the terms of any certificate
or other contract or agreement, or otherwise, the bank may be required
to pay within thirty (30) days from the date on which such amount is
deposited in such bank,10 except as to savings deposits with respect to
which the bank consistently continues to adhere to a practice existing
prior to January 23, 1936, of requiring notice of at least fifteen (15) days
before permitting withdrawal.
(e) No interest after maturity or expiration of notice; exception. No
interest shall be paid on any time or savings deposit for any period
subsequent to maturity, whether such deposit matures by its terms on
a specific date or at the expiration of a notice period pursuant to written
notice actually given, except if a time certificate is renewed within ten
(10) days after maturity, the renewal certificate11 may draw interest
from the maturity date of the matured certificate.
§ 329.4 Payment of time deposits before maturity— (a) Time deposits
payable on a specified date. No insured nonmember bank shall pay any
time deposit, which is payable on a specified date, before such specified
date, except as provided in paragraph (d) of this section.
(b)
Time deposits payable after a specified period. No insured non
member bank shall pay any time deposit, which is payable at the ex
10 Deposits, such as Christmas club accounts and vacation club accounts, which are made under
written contracts providing that no withdrawal shall be made until a certain number of periodic deposits
have been made during a period of not less than three (3) months, constitute “ time deposits, open ac
count” evenjthough some of the deposits are made within thirty (30) days from the end of such period.
11 Where a time certificate is renewed within ten (10) days after maturity, the renewal certificate
may be dated back to the maturity date of the matured certificate.
202
FE D E RA L DEPOSIT IN SU R AN C E C ORPORATION
piration of a specified period, before such period has expired, except as
provided in paragraph (d) of this section.
(c) Time deposits payable after a specified notice. No insured non
member bank shall pay any time deposit, with respect to which notice
is required to be given a specified period before any withdrawal is made,
until such required notice has been given and the specified period there
after has expired, except as provided in paragraph (d) of this section.
(d) Loans upon security of time deposits. An insured nonmember
bank may make a loan to the depositor upon the security of his time
deposit, provided that the rate of interest on such loan shall be not less
than 2 percent per annum in excess of the rate of interest on the time
deposit.
Where a loan to the depositor upon the security of his time deposit
upon terms satisfactory to the insured nonmember bank and the de
positor cannot be arranged, and where the depositor signs a written
statement to be kept in the files of the bank that he is in need of money
represented by the time deposit before the maturity thereof, stating
the definite amount needed, the time deposit may be paid before ma
turity to the extent required to meet such need, but the depositor shall
forfeit accrued and unpaid interest for a period of not less than three
months on the amount withdrawn. When a portion of a time certificate
of deposit is paid before maturity, the certificate shall be canceled and
a new certificate shall be issued for the unpaid portion of the deposit,
with the same terms, rate, date, and maturity as the original deposit.
§ 329.5 Notice of withdrawal of savings deposits— (a) Requirements
regarding notice. An insured nonmember bank shall observe the re
quirements set forth as follows in requiring notice of intended withdrawal
of any savings deposit or part thereof or in permitting withdrawal
without requiring such notice:
(1) If an insured nonmember bank pay any amount or percentage
of the savings deposits of any depositor without requiring such notice,
it shall, upon request, and without requiring such notice, pay the same
amount or percentage of the savings deposits of every other depositor,
subject to the same notice requirement, except if the bank changes its
practice in accordance with paragraph (b) of this section.
(2) If an insured nonmember bank requires such notice before the
payment of any amount or percentage of the savings deposits of any
depositor, it shall require such notice before the payment of the same
amount or percentage of the savings deposits of any other depositor,
subject to the same notice requirement, except if the bank changes its
practice in accordance with paragraph (b) of this section. Even though
the bank’s practice is to require notice, an insured nonmember bank is
not prevented by this part from paying during the next succeeding
interest period without requiring notice of withdrawal interest on a
savings deposit which has accrued during the preceding interest period.
R U LES A N D RE G U LATIO N S OF TH E CORPORATION
203
(b) Requirements regarding change of practice. No insured non
member bank shall change its practice with respect to the requiring or
not requiring of notice of intended withdrawal of savings deposits,
except after duly recorded action of its board of directors or of its execu
tive committee properly authorized, and no practice in this respect shall
be adopted which does not conform to the requirements of paragraphs
(a) (1) and (a) (2) of this section.
(c) Change of practice for purpose of discrimination. No change in
the practice of an insured nonmember bank with respect to the requiring
or not requiring of notice of intended withdrawal of savings deposits
shall be made for the purpose of discriminating in favor of or against
any particular depositor or depositors.
(d) Requirements applicable although no interest paid. An insured
nonmember bank shall observe the requirements of this section with
respect to savings deposits even though no interest be paid on such
deposits.
(e) Loans upon security of savings deposits. An insured nonmember
bank may make a loan to any of its depositors upon the security of his
savings deposits, provided that if the bank’s practice is to require notice
before permitting withdrawal of any amount or percentage of the savings
deposits of any depositor, the rate of interest on such loan shall not be
less than 2 percent per annum in excess of the rate of interest on the
savings deposit.
§ 329.6 Maximum rates12 of interest payable on time and savings
deposits by insured nonmember banks— (a) Maximum rate of 2Yi percent.
No insured nonmember bank shall pay interest accruing after February
1, 1936, at a rate in excess of 2J^ percent per annum, compounded
quarterly,13 regardless of the basis upon which such interest may be
computed:
(1) On any savings deposit.
(2) On any time deposit having a maturity date 6 months or more
after the date of deposit or payable upon written notice of 6 months
or more.
(3) On any postal savings deposit which constitutes a time deposit,
except that an insured nonmember bank may pay interest on any such
deposits in accordance with the terms of any certificate of deposit or
other contract which was entered into before February 1, 1936 (or, if
the bank becomes an insured nonmember bank thereafter, before the
date upon which it becomes an insured nonmember bank), which was
in force on such date and which may not legally be terminated or modified
by such bank at its option and without liability.
11
The maximum rates of interest payable by insured nonmember banks on time and savings deposits
as prescribed herein are not applicable to any deposit which is payable only at an insured nonmember
bank, or at an office of an insured nonmember bank, located outside of the States of the United States
and the District of Columbia.
19This limitation is not to be interpreted as preventing the compounding of interest at other than
quarterly intervals: Provided, That the aggregate amount of such interest so compounded does not
exceed the aggregate amount of interest at the rate above prescribed when compounded quarterly.
204
F E D E RA L DEPOSIT IN SU R AN C E CORPORATION
(b) Maximum rate of 2 'percent. No insured nonmember bank shall
pay interest accruing after February 1, 1936, at a rate in excess of 2
percent per annum, compounded quarterly, regardless of the basis upon
which such interest may be computed, on any time deposit (except
postal savings deposits which constitute time deposits) having a ma
turity date less than 6 months and not less than 90 days after the date
of deposit or which is originally or becomes payable upon written notice
of less than 6 months and not less than 90 days, except that an insured
nonmember bank may pay interest on such deposits in accordance with
the terms of any certificate of deposit or other contract which was entered
into before February 1, 1936 (or, if the bank becomes an insured non
member bank thereafter, before the date upon which it becomes an in
sured nonmember bank), which was in force on such date and which
may not legally be terminated or modified by such bank at its option
and without liability.
(c) Maximum rate of 1 percent. No insured nonmember bank shall
pay interest accruing after February 1, 1936, at a rate in excess of 1
percent per annum, compounded quarterly, regardless of the basis upon
which such interest may be computed, on any time deposit (except
postal savings deposits which constitute time deposits) having a ma
turity date less than 90 days after the date of deposit or which is originally
or becomes payable upon written notice of less than 90 days, except that
an insured nonmember bank may pay interest on such deposits in ac
cordance with the terms of any certificate of deposit or other contract
which was entered into before February 1, 1936 (or, if the bank becomes
an insured nonmember bank thereafter, before the date upon which it
becomes an insured nonmember bank), which was in force on such date
and which may not legally be terminated or modified by such bank at its
option and without liability.
(d) Discontinuance of payments on outstanding certificates of indefinite
maturities. Banks which on January 23, 1936, have outstanding cer
tificates of indefinite maturities representing deposit liabilities drawing
interest as savings deposits must within 1 year from February 1, 1936,
discontinue to pay thereon the rate applicable hereunder to savings
deposits unless meanwhile the same be converted into savings deposits
as defined in this part.
Part
330— R e c o g n it io n
N
Sec.
330.1
330.2
ot o n
of
D e p o sit O w n e r s h ip
B a n k R eco rd s
Deposits evidenced by negotiable instruments.
Deposit obligations for payment of items forwarded for collection
by bank acting as agent.
R U LES A N D R E G U LATIO N S OF TH E CORPORATION
330.3
330.4
205
Deposits of public officers.
Deposits in custodial accounts.
A u t h o r it y : §§ 330.1 to 330.4 issued under sec. 9, Pub.®Law 797,
81st Cong. Interpret or apply sec. 12, Pub. Law 797, 81st Cong.
§ 330.1 Deposits evidenced by negotiable instruments. If any insured
deposit obligation of a bank be evidenced by a negotiable certificate of
deposit, negotiable draft, negotiable cashier’s or officer’s check, negotiable
certified check, or negotiable traveler’s check or letter of credit, the
owner of such deposit obligation will be recognized for all purposes of
claim for insured deposits to the same extent as if his name and interest
were disclosed on the records of the bank provided the instrument was
in fact negotiated to such owner prior to the date of the closing of the
bank. Affirmative proof of such negotiation must be offered in all cases
to substantiate the claim.
§ 330.2 Deposit obligations for payment of items forwarded for collec
tion by bank acting as agent. Where a closed bank has become obligated
for the payment of items forwarded for collection by a bank acting solely
as agent, the owner of such items will be recognized for all purposes of
claim for insured deposits to the same extent as if his name and interest
were disclosed on the records of the bank when such claim for insured
deposits, if otherwise payable, has been established by the execution and
delivery of prescribed forms. Such bank forwarding such items for the
owners thereof will be recognized as agent for such owners for the purpose
of making an assignment of the rights of such owners against the closed
insured bank to the Federal Deposit Insurance Corporation and for the
purpose of receiving payment on behalf of such owners.
§ 330.3 Deposits of public officers. The owner of any portion of a
deposit appearing on the records of a closed bank under the name of a
public official, State, county, city, or other political subdivision will be
recognized for all purposes of claim for insured deposits to the same
extent as if his name and interest were disclosed on the records of the
bank: Provided, That the interest of such owner in the deposit is disclosed
on the records maintained by such public official, State, county, city, or
other political subdivision and, Provided further, That such records have
been maintained in good faith and in the regular course of business.
§ 330.4 Deposits in custodial accounts. The owner of any portion
of a deposit appearing on the records of a closed bank under a name other
than that of the claimant, whose name or interest as such owner is not
disclosed on the records of the closed bank as part owner of said deposit,
will be recognized for all purposes of claim for insured deposits to the
same extent as if his name and interest were disclosed on the records of
the bank: Provided, That the deposit is maintained in a specifically
designated deposit account or accounts in such a manner as to disclose
the custodial nature thereof and, Provided further, That the name and
interest of such owner in the deposit is disclosed on the records of the
206
FE D E R A L DEPOSIT IN SU R AN C E C O RPORATION
person in whose name the deposit is maintained and such records have
been maintained in good faith and in the regular course of business.
Pa r t
331— I n s u r a n c e
of
T r ust F u nds
§ 331.1 Claim by fiduciary bank for insured deposits of trust estates.
In the event of the closing of an insured bank for inability to meet the
demands of its depositors, the claim for insured deposits made by a
fiduciary bank or trust company which, in the exercise of its trust powers,
had deposited trust funds therein will be determined as follows:
(a) Allocated funds of a trust estate. If trust funds of a particular
trust estate are allocated by the fiduciary and deposited, the deposit
with respect to such estate will be determined by ascertaining the amount
of its funds allocated, deposited and remaining to the credit of the
claimant as fiduciary in the closed insured bank.
(b) Interest of a trust estate in unallocated trust funds. If trust funds
of a particular trust estate be mingled1 with trust funds of other trust
estates and deposited by the fiduciary bank or trust company in one
or more insured banks to the credit of the depositing bank or trust
company as fiduciary, without allocation of specific amounts from the
particular trust estate to an account in such bank or banks, the deposit
with respect to such estate in any closed insured bank will be the amount
which will bear the same ratio to all unallocated funds of the estate for
which the fiduciary is accountable as the entire unallocated trust funds
to the credit of the fiduciary bank or trust company in the closed insured
bank will bear to the entire amount of such funds so deposited by the
fiduciary in all depositories.2
(c) Claims for funds of corporate trusts determined on basis of allocation.
The rule stated in paragraph (b) of this section will not be applied to
funds of a bank or trust company held as fiduciary under a type of trust
created to facilitate the issuance, distribution, or servicing of corporate
bonds, debentures, or stock issues, commonly known as corporate trusts.
The claim of the fiduciary bank with respect to deposits of such funds
will be determined according to allocations of the funds of particular
estates to particular deposit accounts.
(d) Insured deposit of a trust estate. In arriving at the total insured
deposit of a fiduciary bank or trust company with respect to any trust
estate, the deposit of such estate as determined in accordance with any
paragraph of this section shall be combined with that determined under
any other subsection of this section and the insured deposit shall be
the total less any amount thereof in excess of $10,000.
(Sec. 9, Pub. Law 797, 81st Cong. Interprets or applies secs. 3, 7, 12, Pub. Law 797,
81st Cong.).
i This section is not to be construed as an express or implied approval of such commingling of trust
funds as may be involved in the maintaining of general trust accounts.
a In determining claims under this paragraph, unallocated trust funds in the fiduciary bank will
be included in the totals of such funds.
R U LES A N D R E G U L AT IO N S OF TH E CORPORATION
Pa r t
332— P o w e r s
I n c o n s is t e n t W
it h
P u r po ses
of
207
F e d e r a l D e p o s it
I nsurance La w
Sec.
332.1
332.2
Inconsistent powers.
Exercise prohibited.
A u t h o r it y : §§ 332.1 and 332.2 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply sec. 6, Pub. Law 797, 81st Cong.
§ 332.1 Inconsistent powers. A State nonmember insured bank
(except a District bank) which does not have any of the powers herein
after enumerated, or which, although it has any such power, does not
exercise the same, shall not hereafter exercise, take, or assume the power:
(a) to do a surety business; (b) to insure the fidelity of others; (c) to
engage in insuring, guaranteeing or certifying titles to real estate; or
(d) to guarantee or become surety upon the obligations of others.1
§ 332.2 Exercise prohibited. After the effective date of this part,
any State nonmember bank (except a District bank) becoming an insured
bank shall not thereafter exercise any of the powers enumerated in § 332.1.
Part
333— E x t e n s i o n
of
C o r po r ate P o w e r s
REGULATIONS
Sec.
333.1
333.2
Classification of general character of business.
Change in general character of business.
in t e r p r e t a t io n s
333.101
Prior consent not required.
§§ 333.1 to 333.101 issued under sec. 9, Pub. Law 797,
81st Cong. Interpret or apply sec. 6, Pub. Law 797, 81st Cong.
A u t h o r it y :
r e g u l a t io n s
§ 333.1 Classification of general character of business. State non
member insured banks are divided into five categories for the purpose
of classifying their general character or type of business,2 viz: commercial
banks, banks and trust companies, savings banks (including mutual
and stock), industrial banks, and cash depositories.
§ 333.2 Change in general character of business. No State non
member insured bank (except a District bank) or branch thereof shall
hereafter cause or permit any change to be made in the general character
or type of business exercised by it after the effective date of this part
without the prior written consent of the Corporation.
1The limitations prescribed in paragraph (d) do not include acceptances or endorsements made in
the usual course of the banking business.
«A bank's business may include two or more of the general classifications.
208
F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
IN T E R P R E T A T IO N S
§ 333.101 Prior consent not required. The extension by any State
nonmember insured bank of its business to include personal, character
or installment loans, or the extension by an industrial bank of its business
to include those of a commercial bank, is not a change in the general
character or type of business requiring the prior written consent of the
Corporation.
F e d e r a l D e p o sit I n s u r a n c e
C o r p o r a tio n ,
[ se a l ]
E. F.
D ow ney,
Secretary,
F. R. Doc. 50-11160; Filed, Dec. 5, 1950; 8:57 a. m.]
St a t e B a n k in g L e g is l a t io n
In 1950 the legislatures of thirteen States held regular sessions and five of these leg
islatures held special sessions. The legislatures of thirteen other States held special
sessions.
This summary includes the more important State banking legislation enacted in 1950.
SUPERVISORY AUTHORITY
Appointment of Bank Commissioner................................... Connecticut (H.B. 47xxxx)
Report of violations and shortages to Commissioner of Banks and District Attorney
............................................................................................... Massachussetts (Ch. 368)
Examination report furnished bank only for its use and may not be shown to others
without consent of Commissioner of Banks.......................Massachusetts (Ch. 428)
Governor’s authority to protect depositors and maintain banking structure in
emergency............................................................................... Massachusetts (Ch. 639)
Microfilming and destruction of records.......................................New Jersey (Ch. 195)
o r g a n iz a tio n a n d c h a r t e r c h a n g e s
Holders of two-thirds instead of three-fourths of stock to consent to dissolutions
........................................................................................................New Jersey (Ch. 33)
Application for charter to have affidavit that each subscriber has agreed to pay in
cash for his share of stock, surplus and reserve for expense upon approval..........
......................................................................................................New Jersey (Ch. 181)
Amendment of agreement of association or of charter of savings bank with approval
of board of bank incorporation.............................................. Rhode Island (Ch. 2529)
SHAREHOLDERS
Twenty days notice to shareholders of meeting to approve merger agreement
......................................................................................................New Jersey (Ch. 153)
Preemptive rights to purchase new stock within time fixed by Board of Directors
......................................................................................................New Jersey (Ch. 267)
Annual meeting on fourth Tuesday in January unless otherwise fixed in by-laws
........................................................................................................New Jersey (Ch. 46)
GENERAL OPERATING PROVISIONS
Coercion by lender in placing insurance on real and personal property prohibited
................................................................................................. Massachusetts (Ch. 520)
Banking institution may apply for license as sales finance company with its own
bond instead of surety bond............................................................Michigan (Act 27)
Limitation of deposits by bank in another bank to 25 percent of capital funds of
depository bank removed.............................................................New Jersey (Ch. 75)
Reserves...........................................................................................New Jersey (Ch. 122)
DEPOSITS
Limitation on deposits and certificate funds of banking companies...............................
...................................................................................................Massachusetts (Ch. 92)
Disposition of abandoned property..........................................Massachusetts (Ch. 801)
Maximum and minimum amounts of deposits in savings banks.New Jersey (Ch. 214)
Interest and dividends on deposits in savings banks.................. New Jersey (Ch. 233)
Banks having State deposits to make monthly report to Comptroller General. . . .
................................................................................................South Carolina (Act 983)
209
210
F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
LOANS
Payments on principal of savings bank construction loan to commence in nine instead
of six months............................................................................ Massachusetts (Ch. 85)
Valuation and revaluation of real estate mortgages held by savings bank..............
...................................................................................................Massachusetts (Ch. 96)
Personal loans by savings banks to be repaid within 2-year period.........................
.................................................................................................Massachusetts (Ch. 365)
Loans insured under Federal Farm Tenant A ct..................... Massachusetts (Ch. 598)
Purchase or acquisition of installment loans..................................New York (Ch. 586)
Foreign banks authorized to acquire from bank part or entire interest in loan made
by bank and in its security........................................................New Jersey (Ch. 97)
Real property mortgages purchased by bank.............................. New Jersey (Ch. 183)
Savings bank loans of $10,000 or less on collateral security of value of 110 percent
of loan.......................................................................................... New Jersey (Ch. 164)
Modification of real estate loan limitations................................. New Jersey (Ch. 247)
Savings bank mortgage loan limitations.......................................New Jersey (Ch. 313)
Taking interest in advance on loans............................................. New Jersey (Ch. 311)
Personal loan departments of banks and trust companies............... New York (Ch. 9)
INVESTMENTS
In general obligations of any one political subdivision of State not in excess of 50
percent of capital and surplus........................................................Georgia (H.B. 241)
Savings banks authorized to invest in common stock of national banks anywhere in
U. S. with capital funds of $40 million and 6 percent of deposits and with ten year
dividend rate of 4 percent, not in excess of 1/15 of capital funds of savings bank
in any bank stock or 2/3 of capital funds in all bank stock .. Massachusetts (Ch. 367)
Savings bank investment in equipment obligations.................... New Jersey (Ch. 200)
Restrictions on power to take and hold real estate...........................New York (Ch. 8)
Sale of obligations of certain public units to banks and trust companies of which an
officer or employee of the public unit is an officer, director, or stockholder..........
........................................................................................................New York (Ch. 551)
Savings bank investments................................................................New York (Ch. 645)
TRUST ACTIVITIES
Joint control of money or assets by surety and fiduciary required to give bond----...................................................................................................Massachusetts (Ch. 65)
Common trust fund......................................................................... Mississippi (Ch. 328)
Investment of common trust funds in direct obligations of United States excepted
from requirement of ready market over the counter or on an exchange.............
...................................................................................................... New Jersey (Ch. 123)
Investment powers of fiduciaries.....................................................New York (Ch. 464)
DIRECTORS, TRUSTEES, OFFICERS, AND EMPLOYEES
Election of trust company directors at special meeting of shareholders authorized
................................................................................................... Massachusetts (Ch. 93)
Reports to Board of Directors....................................................Massachusetts (Ch. 93)
Executive Committee of Board of Directors................................New Jersey (Ch. 160)
Compensation of trustees of savings bank....................................... New York (Ch. 16)
Retirement benefits of officers and employees............................. New Jersey (Ch. 288)
STATE B A N K IN G L E G ISLA T IO N
211
CHECKS AND COLLECTIONS
Banks not liable for payment of post-dated check prior to its date unless certified
or accepted and may return to last endorser any such check paid in error..........
......................................................................................................... Louisiana (Act 143)
Death of drawer of check on bank not a revocation of authority to pay check until
bank has notice of death............................................................. Mississippi (Ch. 201)
New Jersey (Ch. 124)
Deferred posting and delayed returns act....................................... Louisiana (Act 144)
Massachusetts (Ch. 287)
Mississippi (Ch. 204)
New York (Ch. 153)
Virginia (Ch. 48)
Bank paying check subject to stop-payment order subrogated to rights of payee,
endorsers and drawer..................................................................... Louisiana (Act 145)
Issuance of bad check of $25 or more made a felony...................Mississippi (Ch. 316)
LIQUIDATION
Disposal of unclaimed dividends...............................................................Idaho (Ch. 10)
Disposition of amounts unclaimed in voluntary and involuntary liquidations. . . .
.......................................................................................................... New York (Ch. 44)
MISCELLANEOUS
Microfilm or photographic copy of bank files or record on original record admissible
in evidence...................................................................................... Louisiana (Act 146)
New Jersey (Ch. 104)
Uniform Trust Receipts A ct........................................................... Mississippi (Ch. 331)
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
214
N
um ber,
O f f ic e s ,
and
D epo sits
of
O p e r a t in g B a n k s
States and possessions during 1950
of office
The tabulations for all banks and trust companies shown here and
in Tables 104-106 are prepared in accordance with an agreement
among the Federal bank supervisory agencies. The data are tabulated
from individual reports of assets and liabilities of the banks included.
Institutions included are classified in three groups: commercial and
stock savings banks, nondeposit trust companies, and mutual savings
banks. However, in the case of insured banks the first two of these
groups are combined in the tabulations.
CORPORATION
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; and credit unions and savings and loan associa
tions are excluded except in the case of a few which accept deposits
under the terms of special charters.
INSURANCE
Table 103. Number and deposits of all operating banks, December 30, 1950
Banks grouped according to insurance status and by district and State
DEPOSIT
Table 102. Number of operating banks and branches, December 30, 1950
Grouped according to insurance status and class of bank, and by State and type
FEDERAL
Table 101. Changes in number and classification of operating banks and branches in the United
Com m ercial and stock savings banks include the following
categories of banking institutions:
National banks;
OPERATING
BANKS
215
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.
OF
N ondeposit trust com panies 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.
DEPOSITS
Branches of foreign banks which engage in a general deposit
business in the continental United States or in the possessions.
AND
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, North Dakota,
and Puerto Rico; 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; employes’ mutual banking associations in
Pennsylvania; and the Savings Banks 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;
OFFICES,
Industrial and Morris Plan banks which operate under general
banking codes, or are specifically authorized by law to accept de
posits and in practice do so, or the obligations of which are regarded
as deposits for deposit insurance;
Banks which have suspended operations or have ceased to accept
new deposits and are proceeding to liquidate their assets and pay
off existing deposits;
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 private banks, which confine
their business to foreign exchange dealings and do not receive
“ deposits” 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;
NUMBER,
Incorporated State banks, trust companies, and bank and trust
companies, regularly engaged in the business of receiving deposits,
whether demand or time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New
Hampshire;
M utual savings banks include all banks operating under State
banking codes applying to mutual savings banks.
Institutions excluded. Institutions in the following categories are
excluded, though such institutions may perform many of the same
functions as commercial and savings banks:
C h a n g e s in N u m b er a n d C la s s if ic a t io n 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
in t h e U n it e d S t a t e s an d P o s s e s s io n s D u r in g
216
Table 101.
1950
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured1
Mutual savings banks
Noninsured
Type of change
Total
Not
Non
mem Banks deposit
bers
of de
trust
F. R.
posit
com
National State System
panies
Total
13,640
13,628
1,053
1,108
14,164
14,205
13,446
13,436
4,958
4,975
1,912
1,914
Total
In
Non
sured2 insured
BANKS
N um ber o f banks, Decem ber 30, 1950....................................... 14,693
N um ber o f banks, D ecem ber 31, 1949....................................... 14,736
6,576
6,547
653
704
529
531
335
339
+2
-4
-43
+ 12
-55
-41
+ 10
-17
-2
Banks beginning op eration s.................................................
New banks...............................................................................
Other additions to operating banks3.....................................
69
67
2
59
58
1
10
9
1
69
67
2
59
58
1
6
6
8
8
45
44
1
10
9
1
Banks ceasing o p era tion s.....................................................
Suspended banks not reopened or succeeded......................
Absorbed with financial aid of F D IC — net decrease........
Mergers, consolidations and absorptions (without FDIC
aid)— net decrease...............................................................
Other liquidations4..................................................................
106
1
4
95
11
1
104
1
4
95
28
12
55
9
1
2
2
4
2
89
12
84
7
5
5
88
11
84
7
25
1
12
47
6
4
4
1
1
1
1
+ 48
+ 5
+40
+3
-48
-5
-40
-3
+46
+ 5
+38
+3
+2
+2
+3
+41
+3
+38
-46
-5
-38
-3
-2
-1
+ 1
-6
+4
-6
O ther changes in classification ...........................................
National banks succeeding State banks...............................
State ban^s succeeding national bank.................................
Admissions to F. R. System.................................................
Withdrawals from F. R . System..........................................
Offices reclassified6................................. ................................
Changes n ot involving nu m ber in any class:
Successions .............................................................................
Changes in title, location, or name of location..................
Change in classification..........................................................
Change in corporate powers...................................................
-6
-6
-6
-6
-6
-6
1
1
2
4
116
2
11
2
+3
+3
+4
-1
-1
-3
+6
-4
4
3
121
120
2
11 ......11
3
116
11
2
22
13
1
81
11
+2
-2
+2
-2
4
1
-6
1
5
2
CORPO R ATIO N
N oninsured banks b ecom in g in s u re d ...............................
Successions to noninsured banks...........................................
Admissions to insurance, operating banks5..........................
Admissions to F. R. System.................................................
-2
INSURANCE
194
192
Net change during y e a r.............................................................
4
+ 29 -51
65
65
DEPOSIT
Non
In
sured insured Total
FEDERAL
Members F. R.
System
BRANCHES
4,984
4,671
174
193
4,945
4,665
4,832
4,530
2,230
2,085
1,359
1,302
1,243
1,143
112
134
-19
+280
+302
+ 145
+57
+ 100
298
36
73
293
35
71
72
3
20
83
7
181
179
138
25
39
1
73
49
57
2
24
7
17
23
7
16
8
5
3
10
1
9
5
1
4
1
+6
+1
-1
+6
+32
+32
+ 15
-5
+1
-1
-5
-26
-32
+ 16
-1
+22
+32
-10
36
127
127
2
6
78
1
28
28
+294
+313
Branches opened for business.............................
Facilities provided as agents of the government7.
Absorbed banks converted into branches............
Branches replacing offices relocated.....................
Other branches opened...........................................
Branches not previously included8........................
311
300
35
71
193
186
Branches discontinued9. ........................................
Facilities discontinued............................................
Other branches discontinued.................................
24
7
17
23
7
16
+7
+36
+ 35
+1
’ +6
1
7
-29
-35
+6
1
2
6
2
6
1
1
61
58
-22
+ 14
+ 11
+3
5
1
2
13
7
6
1
12
7
1
5
+ 1
+4
+3
-3
-3
+ 1
+ 1
5
5
742
730
346
333
396
397
+6
18,624
18,299
1,227
1,301
19,109
18,870
18,278
17,966
7,188
7,060
3,271
3,216
7,819
7,690
765
838
-74
+239
+312
+ 128
+55
+ 129
-73
+ 12
+ 13
-1
367
69
298
352
59
293
144
6
138
80
8
72
128
45
83
15
10
5
13
7
6
13
7
6
128
104
24
118
95
23
36
28
8
22
12
10
60
55
10
9
1
2
2
-6
+6
+78
+46
+32
+20
+5
+ 15
-3
+2
-5
+61
+39
-78
-52
-26
+ 1
2
2
ALL BANKING OFFICES
Number of offices, December 30, 1950.
Number of offices, December 31, 1949.
Net change during year.
+251
+325
Offices opened.
Banks.............
Branches........
380
69
311
359
59
300
Offices closed.
Banks...........
Branches.. . .
130
106
24
118
95
23
Changes in classification6.
Among banks......................
Among branches.................
+1
-6
+84
+48
+ 36
-83
-54
-29
+22
6 trust companies not engaged in deposit banking on December 30, 1950 and December 31, 1949.
3 mutual savings banks members of the Federal Reserve System on December 30, 1950, and December 31, 1949.
1 financial institution becoming bank of deposit, and 1 bank which discontinued voluntary liquidation proceedings and reopened.
2 banks placed in liquidation in 1949, but included in count as of December 31, 1949.
, which were formerly tabulated as banks.
____ ____________________________________ f December 31, 1949.
.
-8 Includes 5 branches opened prior to beginning of year but not included in count as of December 31, 1949. 9 Includes 1 facility and 1 branch discontinued prior to beginning of year but included in count as of December 31, 1949.
+1
2
2
+6
+2
+4
-5
-2
-3
217
1 Includes
* Includes
* Includes
4 Includes
+7
21
10
11
12
11
1
66
66
BANKS
19,851
19,600
2
OPERATING
36
132
OF
36
132
DEPOSITS
Changes not involving number in any class:
Successions............................................................................ .
Branches transferred as result of absorption or succession
Change in title, location, or name of location.................. .
Change in powers................................................................. .
.
2
6
12
1
152
141
1
1
AND
Other changes in classification among branches..........
Branches of noninsured banks admitted to insurance.......
Branches transferred as result of absorption or succession.
Sale of branch to another bank............................................
Offices reclassified6................................................................ .
6
11
1
2
1
213
199
OFFICES,
Net change during year.
5,158
4,864
NUMBER,
Number of branches, December 30, 1950.
Number of branches, December 31, 1949.
N
um ber
of
A l l O p e r a t in g B
anks
and
B ranch es, D
ecem ber
218
Table 102.
30, 1950
G R O U P E D A C C O R D IN G TO IN S U R A N C E STATU S AND CLASS OF B A N K , AN D B Y S T A TE AN D T Y P E OF O FFIC E
Commercial and stock savings banks
and nondeposit trust companies
All banks
18,624
13,640
12,806
1.881*
4,984
53
14
8
6
39
251
225
219
6
26
251
225
219
6
26
67
11
7
56
65
10
4
6
55
251
232
215
17
19
241
222
205
17
19
18,278
13,446
12,179
1,267
4,832
7,188
4,958
U,591
867
2,230
3,271
1,912
1,691
221
1,359
7,819
6,576
5,897
679
1,243
765
653
620
88
112
66
65
6U
1
1
742
529
U16
118
213
346
194
127
67
152
396
335
289
U6
61
93.8
92.8
92.7
9U.8
96.6
95.7
94.9
9U.7
97.U
97.7
46.6
36.7
80.5
59.8
71.4
1,137 18,966 18,225
1,024 14,12T 13,432
9U8 12,880 12,171
1,261
1,291
76
4,793
4,845
113
7,188
4,958
U,591
867
2,230
3,271
1,912
1,691
221
1,359
7,766
6,562
5,889
678
1,204
680
629
600
29
51
61
60
59
1
1
742
529
U16
118
213
346
194
127
67
152
396
335
289
U6
61
94.2
93.0
92.8
9U.6
97.8
96.1
95.1
9k.9
97.7
98.9
46.6
36.7
80.5
59.8
71.4
53
14
8
6
39
85
24
20
U
61
5
5
5
37.1
32.6
2U.2
60.0
39.0
37.1
32.6
2U.2
60.0
39.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.0
90.9
100.0
85.7
98.2
97.0
90.9
100.0
85.7
98.2
96.0
95.7
95.8
100.0
100.0
96.0
95.7
95.8
100.0
100.0
1,227
1,053
978
80
174
90
29
25
JL
61
19,109
14,164
12,868
1,801
4,945
143
43
88
10
100
53
14
8
6
39
25!
225
219
6
26
251
225
219
6
26
95
70
65
5
25
24
23
22
1
1
132
132
182
67
11
u
7
56
65
10
4
6
55
40
3
1
2
37
6
2
1
1
4
19
5
2
8
14
251
232
215
17
19
241
222
205
17
19
54
52
50
2
2
16
16
16
171
154
189
15
17
State
4
A r lr o f ic o o
2
1
1
1
10
10
10
2
1
1
1
9
9
9
1
1
1
CORPORATION
143
43
88
10
100
Com Mutual
In
Non
All
sured2 insured banks mercial savings
banks banks
INSURANCE
United S tates....................................... 19,708 18,571
All banks............................................. 14,650 13,626
Unit banka....................................... 18.2U6 12,298
1,828
Banks operating branches............... 1,U0U
4,945
5,058
Branches.............................................
Not
Non
mem Banks deposit Total
bers
of de
trust
Total
F. R.
com
posit
National State System
panies
DEPOSIT
United States and p ossession s........ 19,851
14,693
18,279
IM h
5,158
Branches.............................................
Non
Total
Insured insured
Members F. R .
System
FEDERAL
Total
Insured banks
as percentages of—
Noninsured
Insured1
State and type of bank or office
Mutual savings banks
3
2
1
1
1
C olo ra d o ................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
158
154
150
4
4
148
144
140
4
4
10
10
10
158
154
150
4
4
148
144
140
4
4
80
77
74
3
3
16
16
16
52
51
50
1
1
10
10
10
C o n n e cticu t..........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
239
184
165
19
55
145
95
79
16
50
94
89
86
3
5
162
112
96
16
50
142
92
76
16
50
69
47
40
7
22
36
15
9
6
21
37
30
27
3
7
19
19
19
D elaw are................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
61
40
SI
9
21
56
37
30
7
19
5
3
1
2
2
58
38
so
8
20
56
37
SO
7
19
13
13
IS
12
4
1
s
g
31
20
16
4
11
2
1
D istrict o f C o lu m b ia..........
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
64
19
4
15
45
64
19
4
15
45
64
19
h
15
45
64
19
4
15
45
33
9
1
8
24
17
6
2
4
11
14
4
1
3
10
Florida....................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
205
199
193
4
4
4
205
199
193
6
6
201
195
189
6
6
66
62
58
4
4
12
12
12
123
121
119
2
2
2
2
2
6
201
195
189
6
6
G eorgia..................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
439
397
S78
19
42
372
331
313
18
41
67
66
65
1
1
439
397
378
19
42
372
331
313
18
41
76
51
42
9
25
25
15
10
5
10
271
265
261
4
6
Id a h o ......................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
98
43
35
97
42
34
8
55
1
1
1
98
43
35
8
55
97
42
34
8
55
61
13
8
5
48
13
11
10
1
2
I llin o is....................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
893
891
889
878
876
874
2
2
15
15
15
893
891
889
2
2
878
876
874
2
2
386
384
382
2
2
124
124
124
6
8
55
2
2
99.0
94.6
93.6
97.8
99.9
99.0
94.6
93.6
97.8
99.9
93.7
93.5
93.3
93.7
93.5
93.3
74
69
66
3
5
60.7
51.6
47.9
84.2
90.9
87.7
82.1
79.2
3
2
1
1
1
91.8
92.5
96.8
77.8
90.5
9
9
9
100.0 100.0
100.0 100.0
1
1
1
77
72
69
s
5
3
2
1
1
1
1
1
3
3
3
100.0
100.0
96.6
97.4
100.0
87.5
95.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.0
98.0
97.9
98.0
98.0
97.9
67
66
65
1
1
84.7
83.4
82.8
94.7
97.6
84.7
83.4
82.8
23
18
16
2
5
1
1
1
99.0
97.7
97.1
99.0
97.7
97.1
368
368
368
12
12
12
2
2
2
3
3
S
100.0 100.0
100.0 100.0
94.7
97.6
100.0
100.0
100.0
100.0
98.3
98.3
98.3
98.3
98.3
98.3
100.0
100.0
3.9
4.2
4.3
100.0
100.0
BANKS
120
71
53
18
49
OPERATING
180
27
16
11
153
OF
869
93
77
16
776
DEPOSITS
1,169
191
146
45
978
AND
1,181
202
156
46
979
202
OFFICES,
12
11
10
1
1
1,181
NUMBER,
156
46
979
1,169
191
146
45
978
C aliforn ia ..............................
All banks.............................
Unit banks.......................
Banks operating branches,
Branches..............................
to
i—‘
CO
Table 102.
N u m b e r o f A l l O p e r a t in g B a n k s a n d
B ran ch es, D ecem b er
30, 1950— Continued
G R O U P E D A C C O R D IN G TO IN S U R A N C E STATU S AN D CLASS OF B A N K , AN D B Y S T A TE AN D T Y P E O F OFFIC E
Commercial and stock savings banks
and nondeposit trust companies
All banks
Non
Insured insured
Total
Members F .R .
System
Total
National State
64
64
64
604
445
328
117
159
61
56
52
4
5
1
1
1
466
466
466
174
174
174
41
41
41
251
251
251
146
146
146
429
385
361
24
44
406
362
338
24
44
in
92
89
3
19
29
21
16
5
8
266
249
233
16
17
20
20
20
242
165
126
39
77
241
164
125
39
77
75
36
26
10
39
19
11
6
5
8
147
117
93
24
30
1
1
1
134
63
39
24
71
115
53
35
18
62
40
32
27
5
8
34
5
1
4
29
41
16
7
9
25
19
10
4
6
9
583
475
418
57
108
Iowa........................................................
All banks.............................................
Unit banks. ...
..................
Banks operating branches...............
Branches
827
663
542
121
164
765
606
489
117
159
62
57
53
4
5
827
663
542
121
164
765
606
489
117
159
K ansas ...............................................
All banks
Unit banks .
..
...
Banks operating branches...............
Branches.............................................
612
612
612
466
466
466
146
146
146
612
612
612
K en tu ck y
.......................................
All banks .. .
............................
Unit banks
.............................
Banks operating branches...............
Branches
..........................
429
385
361
24
44
406
362
338
24
44
23
23
23
Louisiana
. . . . ............................
All banks
..........................
Unit banks
..........................
Banks operating branches...............
Branches
................ ..
242
165
126
39
77
241
164
125
39
77
1
M a in e ...................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches
.
............................
168
95
69
26
73
121
59
hi
18
62
1
1
47
36
28
8
11
4
4
4
3
3
3
1
1
1
3
3
3
34
32
30
2
2
6
6
6
28
26
24
2
2
97.8
97.6
97.5
98.3
99.1
98.0
97.7
97.7
98.3
99.1
92.5
91.4
90.2
96.7
97.0
92.5
91.4
90.2
96.7
97.0
76.1
76.1
76.1
76.1
76.1
76.1
94.6
94.0
93.6
100.0
100.0
94.6
94.0
93.6
100.0
100.0
99.6
99.4
99.2
100.0
100,0
99.6
99.4
99.2
100.0
100.0
72.0
62.1
59.4
69.2
84.9
85.8
84.1
89.7
75.0
87.3
75.0
75.0
75.0
CORPORATION
97
97
97
595
486
428
58
109
160
125
111
Branches.............................................
13
12
11
1
1
INSURANCE
10
9
8
1
1
586
478
421
57
108
Com Mutual
In
Non
All
savings
sured2 insured banks mercial
banks banks
DEPOSIT
291
238
200
38
53
2
2
2
^■xa
132
112
107
5
20
599
490
432
58
109
Indiana..................................................
All banks.............................................
Unit banks.......................................
Non
Not
mem Banks deposit Total
trust
bers
of de
com
F. R.
posit
panies
System
FEDERAL
Total
Insured banks
as percentages of—
Noninsured
Insured1
State and type of bank or office
Mutual savings banks
17.6
18.8
20.0
M aryland...............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
308
173
189
1
1
M assachusetts.....................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
595
371
28k
87
224
349
174
12k
50
175
246
197
160
37
49
359
182
131
51
177
349
174
12k
50
175
209
116
9k
22
93
91
25
8
17
66
49
33
22
11
16
10
8
7
1
2
M ich ig a n ...............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
681
442
378
6k
239
647
414
852
62
233
34
28
26
2
6
681
442
878
6k
239
647
414
352
62
233
163
78
66
12
85
251
153
189
lk98
233
183
lk7
86
50
27
21
19
2
6
7
7
7
M in n esota.............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
687
681
679
2
6
668
662
660
2
6
19
19
19
686
680
678
2
6
667
661
659
2
6
184
178
176
2
6
28
28
28
455
455
k55
17
17
17
2
2
2
M ississippi............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
269
201
16k.
37
68
265
197
160
87
68
4
4
k
269
201
16k
37
68
265
197
160
37
68
29
24
23
1
5
9
7
6
1
2
227
166
181
85
61
4
4
k
M issouri.................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
601
600
599
577
576
575
1
1
24
24
2k
601
600
599
1
1
577
576
575
1
1
80
79
78
1
1
101
101
101
396
396
396
20
20
20
M o n ta n a ................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
110
110
110
110
110
110
110
110
110
110
110
110
39
39
39
45
45
h5
26
26
26
N ebraska................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
420
418
369
367
365
2
2
420
418
U16
2
2
369
367
365
2
2
126
124
122
2
2
17
17
17
226
226
226
N evada....................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
27
27
8
3
5
19
27
8
8
5
19
19
5
2
3
14
5
1
3
2
1
1
1
3J,
1
1
hi6
2
2
8
3
5
19
27
8
8
5
19
51
51
51
1
4
2
1
44
44
U
1
1
1
25
9
6
8
16
16
2
1
1
14
236
189
153
86
47
4
4
u
7
7
7
1
1
1
1
1
1
9
7
5
2
2
96.1
94.8
95.7
91.2
97.8
98.9
98.8
99.2
96.8
99.2
236
189
158
86
47
58.7
46.9
kS.7
57.5
78.1
97.2
95.6
9k.7
98.0
98.9
95.0
93.7
93.1
96.9
97.5
95.0
93.7
93.1
96.9
97.5
97.2
97.2
97.2
100.0
100.0
97.2
97.2
97.2
100.0
100.0
98.5
98.0
97.6
100.0
100.0
98.5
98.0
97.6
100.0
100.0
96.0
96.0
96.0
100.0
100.0
96.0
96.0
96.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
87.9
87.8
87.7
100.0
100.0
87.9
87.8
87.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
64.0
22.2
16.7
33.3
87.5
100.0
100.0
100.0
BANKS
125
85
69
16
40
O P E R A T IN G
73
16
9
7
57
OF
82
61
5k
7
21
D E P O S IT S
280
162
182
30
118
AND
283
164
133
31
119
O F F IC E S ,
12
9
6
3
3
NUM BER,
135
296
164
188
31
132
to
102.
N um ber o f
A l l 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
222
T a b le
30, 1950— Continued
G R O U P E D A C C O R D IN G TO IN S U R A N C E STATU S AN D CLASS OF B A N K , AN D B Y ST A TE AN D T Y P E OF O FFIC E
C om m ercial and stock savings banks
and nond eposit trust com panies
A ll ban ks
In su red 1
State and t y p e o f b a n k o r office
In s u re d
N on
in s u r e d
T o ta l
National
347
282
65
174
343
278
65
174
New M ex ico..........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
66
51
66
51
9
15
15
New Y o rk ..............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
1,642
1,632
N orth C arolina....................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
443
N orth D akota.......................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
521
U2
759
586
173
883
225
162
63
218
172
150
135
15
22
58
57
1
1
517
1
1
489
324
60
165
485
510
119
788
440
443
66
51
26
71
U7
2U
78
9
680
16
9
7
13
130
376
32U
52
221
171
12 U
U7
75
57
18
55
69
31
340
170
23
167
41
,225
218
167
172
150
135
15
145
130
15
22
597
29
22
46
36
10
41
-41
509
8
U
u
225
130
76
5U
95
225
130
76
5U
95
M utual
C om
m e r cia l s a v in g s
banks
banks
76.6
53.2
53.8
33.3
33.3
77.3
78.1
50.0
50.0
99.2
99.2
100.0
100.0
100.0
100.0
98.8
98.6
622
505
117
785
224
162
62
216
22
28
149
15
440
224
162
62
216
145
130
15
276
All
banks
52.7
1
1
205
177
28
71
1,407
752
581
171
880
In
N on
sured2 in s u r e d
52
9
15
T o ta l
51
50
320
260
60
165
U2
N on
d e p o s it
trust
co m
panies
98.8
98.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.4
99.3
99.1
99.1
98.8
99.7
98.9
99.0
98.3
99.6
99.3
99.6
99.3
99.6
100.0
100.0
98.lt
23
170
98.U
99.1
2
124
97.1
97.1
100.0
100.0
100.0
100.0
2
2
102
87
15
22
96.7
96.3
99.1
96.7
96.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
C O R P O R A T IO N
New Jersey............................
All banks.............................
Unit ba7iks.......................
Banks operating branches
Branches..............................
59
58
57
B anks
o f de
posit
IN S U R A N C E
112
109
106
3
3
State
N ot
m em
bers
F. R.
S y ste m
D EPO SIT
59
New H a m p sh ire..................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
N on in su red
M em bers F . R .
System
T ota l
Insu red banks
as percentages o f -
FEDERAL
T o ta l
M u tu a l savings banks
98.2
98.3
98.5
95.6
98.1
98.2
98.2
98.5
95.3
97.9
100.0
100.0
100.0
100.0
5
71.1
58.3
45.5
69.2
75.8
77.6
75.0
80.0
72.7
78.3
35.7
25.0
16.7
50.0
50.0
91.4
88.5
87.0
91.4
88.5
87.0
100.0
100.0
100.0
100.0
59
12
4
8
47
218
169
143
26
49
218
169
143
26
49
873
861
848
13
12
8
8
8
47
47
47
22
7
4
3
15
24
13
16
14
3
22
10
3
13
113
99
89
17
17
17
2
••*2
197
148
131
17
49
180
131
114
17
49
58
25
20
5
33
9
7
5
218
169
143
26
49
218
169
143
26
49
56
35
31
4
21
27
27
27
395
297
264
33
98
920
908
895
13
12
387
289
256
33
98
873
861
848
13
12
123
72
61
11
51
454
442
429
13
12
2
2
22
10
9
1
12
136
136
136
10
14
8
2
1
1
3
100.0
135
107
85
100.0
100.0
22
100.0
28
100.0
100.0
100.0
100.0
242
207
186
21
98.0
97.3
97.0
98.0
97.3
97.0
100.0
100.0
100.0
35
283
283
283
94.9
94.8
94.7
94.9
94.8
94.7
100.0
100.0
100.0
47
47
47
100.0
100.0
100.0
100.0
BANKS
387
289
256
33
98
3
4
100.0
O P E R A T IN G
S ou th D a k o ta .......................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
17
17
17
12
26
7
3
4
19
19
15
OF
180
131
114
17
49
242
219
205
14
23
D E P O S IT S
76
16
5
11
60
153
108
95
13
45
10
12
AND
26
10
6
4
16
748
627
593
34
121
1
2
100.0
100.0
100.0
O F F IC E S ,
64
14
5
9
50
9
50
38
28
12
10
100.0
100.0
100.0
NUM BER,
1,143
954
893
61
189
197
148
131
17
49
26
7
3
4
19
1,164
971
907
64
193
S outh C arolin a....................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
12
100.0
100.0
21
17
14
3
4
90
24
13
100.0
100.0
1,169
961
896
65
208
R hode Islan d........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
Unit banks.......................
Banks operating branches
98.8
97.1
96.4
108
20
17
3
88
1,190
978
910
B ra n ch e s ....................................
98.8
97.2
96.5
170
68
54
14
102
P ennsylvania........................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
920
908
895
100.0
100.0
172
70
56
14
102
171
69
55
14
102
98
100.0
2
2
2
173
71
57
14
33
100.0
25
25
25
O reg on ...................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
395
297
264
97.2
97.2
97.1
200
199
198
1
1
11
11
11
T enn essee..............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
97.2
97.2
97.1
376
375
374
1
1
376
375
374
1
1
13
66
151
151
151
387
386
385
1
1
387
386
385
11
100.0
100.0
259
228
207
O klah om a..............................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
68
100.0
100.0
311
181
163
18
130
9
9
9
212
31
306
241
223
18
65
879
653
596
57
226
102
99.0
98.6
98.5
876
650
593
57
226
888
662
605
57
226
1
1
21
99.0
98.6
98.5
885
659
602
57
226
O h io ........................................
All banks.............................
Unit banks.......................
Banks operating branches
Branches..............................
to
to
CO
N
um ber
of
A
ll
O p e r a t in g B a n k s
and
B ran ch es, D
ecem ber
224
Table 102.
30, 1950— Continued
G R O U P E D A C C O R D IN G TO IN S U R A N C E STATU S AN D CLASS OF B A N K , AN D B Y ST A TE AN D T Y P E OF O FFIC E
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured1
State and type of bank or office
Noninsured
Members F. R.
System
Total
National State
V e r m o n t................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
97
77
68
9
20
96
76
67
9
20
V irgin ia.................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
427
313
259
5U
114
427
313
259
5U
114
W ash in gton ..........................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
268
121
106
15
147
265
118
103
15
147
West V irgin ia.......................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
180
180
180
W iscon sin .............................................
All banks.............................................
.......................................
Banks operating branches...............
Branches.............................................
708
556
U6U
92
152
79
55
U9
6
24
79
55
U9
6
24
28
11
9
2
17
25
20
18
2
5
26
24
22
2
2
81
70
62
8
11
80
69
61
8
11
41
39
37
2
2
1
1
1
38
29
23
6
9
427
313
259
5U
114
427
313
259
5h
114
176
132
112
20
44
89
71
61
10
18
162
110
86
2U
52
3
3
3
262
118
10U
lk
144
259
115
101
lb
144
166
36
28
8
130
21
16
1U
2
5
72
63
59
U
9
3
3
3
176
176
176
4
4
u
180
180
180
176
176
176
74
74
7*
34
34
3U
68
68
68
4
4
U
697
546
U55
91
151
11
10
9
1
1
704
552
k60
92
152
694
111
543
95
Unit banks
U52
90
91
5
151
16
75
69
65
U
6
508
379
297
82
129
7
6
5
1
1
1
1
1
1
1
1
16
7
6
1
9
6
3
2
1
3
3
3
3
4
4
•4
16
7
6
1
9
5
3
2
1
3
3
3
3
1
1
I
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0
98.7
98.5
100.0
100.0
98.8
98.6
98.U
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.9
97.5
97.2
100.0
100.0
98.9
97.5
97.1
100.0
100.0
97.8
97.8
97.8
97.8
97.8
97.8
98.4
98.2
98.1
98.9
99.3
98.6
98.4
98.3
98.9
99.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
75.0
75.0
C O R P O R A T IO N
79
55
U9
6
24
Com Mutual
In
Non
All
sured* insured banks mercial savings
banks banks
IN S U R A N C E
79
55
U9
6
24
Not
Non
mem Banks deposit Total
bers
of de
trust
F. R.
posit
com
System
panies
D EPO SIT
U ta h .......................................................
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
Insured banks
as percentages of—
FE D E RA L
Non
Total Insured insured
Total
Mutual savings banks
W yom in g .................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................
53
53
53
24
24
n
15
15
15
14
14
U
100.0
100.0
100.0
100.0
100.0
100.0
37.5
25.0
16.7
100.0
100.0
37.5
25.0
16.7
100.0
100.0
1.9
11.1
1U.3
1.9
11.1
1U.3
Possessions
Alaska3.....................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
9
5
3
2
4
9
5
3
2
4
15
15
15
A m erican S a m o a ..................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
1
1
1
G u am (including Marianas Islands)4.
All banks.............................................
Unit banks.......................................
Banks operating branches...............
Branches.............................................
2
Hawaii6.....................................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
2
1
1
1
1
1
1
48
3
1
2
45
5
5
5
4
Panam a Canal Z on e4...........
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................
4
Puerto R ico4...........................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches...............................
41
7
U
s
34
41
7
U
3
34
14
4
2
2
10
74.5
63.6
66.7
60.0
77.3
74.5
63.6
66.7
60.0
77.3
Virgin Islands6.......................
All banks...............................
Unit banks.........................
Banks operating branches.
Branches................................
2
1
2
1
66.7
50.0
66.7
50.0
1
1
1
1
1
1
1
100.0
100.0
100.0
100.0
1 Includes 6 trust companies not engaged in deposit banking: 2 State banks members of the Federal Reserve System, 1 each in California and Massachusetts; and 4 State
banks not members of the Federal Reserve System, 1 each in Florida, Missouri, Pennsylvania and Wisconsin.
* Includes 3 banks members of the Federal Reserve System: 1 in Indiana and 2 in Wisconsin.
bO
* Includes 5 national banks, 4 among insured banks not members of the Federal Reserve System, and 1 among noninsured banks.
* Includes noninsured branches of insured banks in the United States: 1 in Guam, 1 in Marianas Islands, 4 in Panama Canal Zone, and 7 in Puerto Rico.
* Includes, among noninsured banks, 1 national bank operating 20 branches.
* Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch.
Back figures: See the Annual Report for 1949, pp. 128-135, and earlier reports.
52!
d
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tel
W
o
a
w
O
tel
v?2
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«
e
tel
►
d
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i—
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O
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o
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tel
£
a
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o
w
22!
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C
O
Table 103.
N
um ber
and
D
e p o s it s
of
A l l O p e r a t in g B a n k s , D
ecem ber
30, 1950
B A N K S G R O U P ED AC CORDING TO IN SU R AN CE STATU S AN D B Y D IS TR IC T AN D ST A TE
Number of banks
F D I C D is tr ic t
an d State
C o m m e rcia l a n d s to c k savings
ba n k s a n d n o n d e p o s it
tru st com pan ies
14,164
sured2
13,446
N on
Banks d e p o s it
trust
o f de
p o s it 1
co m
panies
653
13,432
629
43
14
24
860
1,159
1,640
1,058
1,022
1,514
1,488
1,554
518
1,004
1,630
1,049
1,022
1,514
1,480
1,554
1,109
1,623
1,135
526
458
987
1,604
1,025
948
1,449
1,432
1,482
1.085
1,405
1.086
485
57
14
24
23
72
54
36
68
225
11
232
225
10
232
202
Connecticut.........
Delaware.............
Dist. of Columbia
Florida.............
Georgia............
184
40
19
199
397
Idaho...............
Illinois..............
Indiana............
Iowa.................
Kansas.............
43
891
490
663
612
FDIC D istrict
District 1.............
District 23............
District 3 .............
District 4 .............
District 5 .............
District 6 .............
District 7.............
District 8 .............
District 9 .............
District 10...........
District 11...........
District 124..........
State
Alabama..............
Arizona................
Arkansas..............
California............
Colorado..............
1,110
1,623
1,135
530
225
11
154
529
194
194
N on in
sured
A ll
ban ks
T o ta l
Insured
N o n in
sured
5.711.251
335 175,296,191 155,264,855 153,288,465
1,976,390 20.031.336 14.320.085
5.711.251
209,146
13,366,219
19,988,508
8,770,835
5,876,093
9,109,612
12,268,973
15,405,993
4,749,163
6,286,585
10,137,619
19,391,899
7,848,815
38,416,786
18,668,708
8,368,603
5,876,093
9,109,612
12,212,457
15,405,993
4,581,971
6,286,585
10,137,619
19,175,580
7,475,060
37,782,149
18,595,851
8,232,281
5,844,584
9,059,255
12,025,819
15,268,250
4,467,963
6,076,407
10,047,579
18,622,413
222
202
191
144
1,271,312
470,746
847,093
14,018,278
1,216,378
1,271,312
470,746
847,093
14,018,278
1,216,378
1,271,312
467,711
843,400
13,964,890
1,209,166
112
38
19
199
397
92
37
19
195
331
1,711,251
535,327
1,162,112
2,008,324
1,779,546
1,633,534
533,001
1,162,112
2,001,015
1,763,259
77,717
2,326
66
3,047,612
623,149
1,162,112
2,008,324
1,779,546
43
891
486
663
612
42
876
475
606
466
12
9
56
146
442,985
13,037,855
3,322,273
2,368,138
1,687,499
442*985
13,037,855
3,278,969
2,368,138
1,687,499
434,254
12,993,950
3,259,665
2,274,300
1,530,457
8,731
43,905
19,304
93,838
157,042
154
22
209
48
2
1
2
N on in
sured
2,591,211 20.031.336 14.320.085
823,967
18
153
10
Insured
335 176,120,158 156,088,822 153,497,611
823,967
342
155
10
T o ta l
324
2 50,768,659
614,821
226,416
373,755 5,517,404
634.637 12,351,873 12,264,051
72,857 1,319,800 1,319,800
82,731
402,232
136,322
31,509
50,357
43,576
56,516
186.638
137,743
167,192
167,192
114,008
210,178
90,040
216,319
216,319
553,167
5,290,988
87,822
319,501
' 12,940
C O R P O R A T IO N
14,121
43
Possessions........
529
In
sured
IN S U R A N C E
United S ta te s ... 14,650
T o ta l
D EPO SIT
United States and
possessions. .. 14,693
In
M u tu a l savings ban ks
FEDERAL
T ota l
C om m ercia l and s to c k savings
ban ks and n o n d e p o sit
trust com panies
M u tu al savings banks
N on in su red
A ll
ban ks1
to
to
Oi
Deposits (in thousands of dollars)
3,035
3,693
53,388
7,212
1,336,361
87,822
39,499
1,296,862
87,822
43,304
30,719
12,585
7,309
16,287
Kentucky..........
Louisiana...........
Maine................
Maryland..........
Massachusetts. .
165
95
173
371
362
164
53
162
174
20
442
680
201
600
21
17
4
418
8
75
324
51
367
8
58
320
51
New Y ork............
North Carolina...
North D akota...
Ohio......................
Oklahoma............
759
225
150
662
386
629
225
150
659
622
224
145
650
375
Oregon.................
Pennsylvania. . . .
Rhode Island. . . .
South Carolina...
South Dakota___
71
978
24
148
169
70
971
16
148
169
954
12
131
169
Tennessee.
Texas........
Utah.........
Vermont. .
Virginia. . .
297
908
55
77
313
297
908
55
70
313
289
861
55
69
313
Washington.........
West Virginia.. ..
Wisconsin............
Wyoming.............
121
180
556
53
118
180
552
53
115
176
543
53
20
1
34
23
130
130
'3
5
47
19,474
803
39,303
88,740
105,739
5,829,254
3,099,199
816,911
4,584,006
581,765
5,829,254
2,932,007
816,911
4,584,006
581,765
5,673,044
2.918.708
808,998
4,562,644
581,765
156,210
13,299
7,913
21,362
1,375,030
178,579
555,949
5,454,936
360,852
1,375,030
178,579
278,108
4,855,706
360,852
1,335,310
178,579
225,155
4,849,973
360,852
39,720
44,392,898
1,899,074
563,699
8,082,933
1,736,190
32,728,077
1,899,074
563,699
7,840,002
1,736,190
32,249,309
1,872,430
462,990
7,829,853
1,729,986
1,436,308
11,905,575
1,044,003
672,370
504,500
1,419,620
10,828,706
776,588
672,370
504,500
1,412,079
10,765,998
678,545
662,679
504,500
7,541
62,708
98,043
9,691
2,061,331
7,470,584
589,691
340,724
2,014,777
2,061,331
7,470,584
589,691
254,863
2,014,777
2,055,503
7,384,382
589,691
254,863
2,014,777
5,828
86,202
2,199,767
949,802
3J.17.446
271,488
2,000,136
949,802
3,104,234
271,488
1,983,640
938,555
3,093,110
271,488
16,496
11,247
11,124
84,822
1,340
84,822
1,340
46,974
37,848
1,340
20,021
395,182
20,021
395,182
12,306
20,021
382,876
24,926
293,233
4,443
24,926
293,233
4,443
145,586
4,280
24,926
147,647
163
52,953
5,733
237,845
402,232
3,312,081
26,997
82,731
167,192
167,192
277,841
599,230
599,230
210,848
319,501
3,312,081
277,841
478,768 11,664,821 11,664,821
26,644
100,709
10,149
242,931
242,931
6,204
16,688
1,076,869
267,415
16,688
1,076,869
74,059
85,861
85,861
199,631
199,631
13,212
12,857
193,356
355
1 Includes 27 noninsured banks of deposit (1 in Colorado, 16 in Georgia, 3 in Iowa, 3 in Michigan, and 4 in Texas) for which deposits are not available.
a Includes 6 trust companies not engaged in deposit banking: 1 each in California, Florida, Massachusetts, Missouri, Pennsylvania, and Wisconsin.
* Includes Puerto Rico and the Virgin Islands.
4 Includes Alaska, American Samoa, Guam, Hawaii, Marianas Islands, and the Panama Canal Zone.
6 Includes deposit data for the following noninsured branches of insured banks in the U. S.: 1 each in Guam and Marianas Islands; 4 in the Panama Canal Zone; and 7 in
Puerto Rico. Data for these branches are not included in the figures for the States in which the parent banks are located.
Back figures: See the Annual Report for 1949, pp. 136-137, and earlier reports.
BANKS
Possession
Alaska..................
American Samoa.
Guam and
Marianas Islands5
Hawaii.................
Panama Canal
Zone6................
Puerto Rico5........
Virgin Islands.. . .
44
1.597.708
1,834,634
409,236
1,581,728
4,273,727
O P E R A T IN G
418
8
109
347
51
20
1,617,182
1,835,437
448,539
1,670,468
4,379,466
OF
Nebraska.............
Nevada................
New Hampshire..
New Jersey..........
New Mexico........
600
110
1,617,182
1,835,437
686,384
2,072,700
7,691,547
D E P O S IT S
110
414
661
197
576
110
201
26
7
189
AND
442
681
32
9
189
O F F IC E S ,
Michigan...
Minnesota..
Mississippi.
Missouri. . .
Montana. . .
1
1
10
NUM BER,
385
165
63
164
182
to
fcO
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. Assets and liabilities of all operating banks in the United States and possessions,
June 30, 1950
Banks grouped according to insurance status and type of bank
Table 105. Assets and liabilities of all operating banks in the United States and possessions,
December 30, 1950
Banks grouped according to insurance status and type of bank
Table 106. Assets and liabilities of all operating banks in the United States and possessions,
December 30, 1950
Banks grouped by district and State
Table 107. Assets and liabilities of operating insured banks, December 30, 1950, June 30,
1950, and December 31, 1949
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; Polk’s Bankers Encyclopedia; and reports from individual
banks.
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
Beginning with June 30, 1948, individual loan items have been
S o u rce s o f d a ta
OF
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.
Total deposits shown in these tables are not the same as the deposits
upon which assessments paid to the Fedei-al Deposit Insurance Cor
poration are based. The assessment base is slightly lower due to certain
exclusions which are permitted and deductions which may be claimed.
Asset and liability data for noninsured banks are tabulated from
reports pertaining to the individual banks. In a few cases these reports
are not as detailed as those submitted by insured banks, and some of
the items reported have been allocated to more detailed categories
according to the distribution of asset and liability data for insured
State banks not members of the Federal Reserve System or for other
noninsured banks.
LIABILITIES
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.
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” .
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.
AND
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 reserves.
reported gross instead of net of valuation reserves. Accordingly, re
serves for losses on loans under the provisions of Mimeograph 6209
issued by the Bureau of Internal Revenue in December 1947 and other
loan valuation reserves have been shown separately.
ASSETS
The data in these tables relate to banks operating in the United
States and possessions. Data for December 30, 1950, from the same
tabulations for all operating banks in each State are given in the
pamphlet published by the Corporation, “ Report No. 34, Assets,
Liabilities, and Capital Accounts, Capital and other Ratios, Commercial
and Mutual Savings Banks, December 30, 1950.” State data for June
30 and December 30, 1950, are published in the Federal Reserve
Bulletin, November 1950, pp. 1496-97, and May 1951, pp. 530-31.
Table 104.
A
ssets
an d
L ia b il it ie s
of
A
ll
O p e r a t in g B a n k s
in
the
U n it e d St a t e s
and
P o s s e s s io n s , J u n e
30, 1950
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in thousands of dollars)
Commercial and stock savings banks and
nondeposit trust companies
All banks
Mutual savings banks
Nonirisured
Asset, liability, or capital account item
Total
Insured
Insured1
Banks
of
deposit
9,672,728 157,785,135 154,700,864
2,893,454
N ondeposit
trust
com
panies2
Total
Insured
Non
insured
190,817 22,251,775 15,663,318
6,588,457
33,422,706
1,881,025
32,905,533
1,814,757
468,444
65,053
48,729
1,215
831,491
89,551
659,319
63,999
172,172
25,552
15,864,291
8,666,557
284,373
50,708
6,820,167
531,754
12,676
10,637
42,458
15,863,320
8,741,073
43,804
61,345
6,832,139
15,863,320
8,339,957
37,694
50,708
6,799,097
354,868
6,110
10,637
31,776
46,248
971
457,238
253,245
971
326,600
246,679
130,638
6,566
1,266
30,486
21,070
9,416
Securities— to ta l................................................. 91.315.286
U. S. Government obligations, direct and
guaranteed...................................................... 77.609.287
7,516,412
Obligations of States and subdivisions...........
5,655,676
Other bonds, notes, and debentures3..............
533,911
Corporate stocks................................................
85,136,707
6,178,579
77,325,997
75,597,738
1,632,099
96,160 13,989,289
9,538,969
4,450,320
72,553,872
7,336,698
4,918,436
327,701
5,055,415
179,714
737,240
206,210
66,039,937
7,431,379
3,485,373
369,308
64,609,100
7,262,026
3,408,633
317,979
1,369,592
154,631
70,472
37,404
61,245 11,569,350
85,033
14,722
6,268 2,170,303
13.925
164,603
7,944,772
74,672
1,509,803
9,722
3,624,578
10,361
660,500
154,881
52,310,789
837,972
53,148,761
17,108,800
49,667,066
815,356
50,482,422
16,867,743
2,643,723
22,616
2,666,339
241,057
45,107,916
592,379
45,700,295
17,067,999
44,379,303
590,080
44,969,383
16,841,978
700,897
2,228
703,125
224,850
27,716
71
27,787
1,171
7,202,873
245,593
7,448,466
40,801
5,287,763
225,276
5,513,039
25,765
1,915,110
20,317
1,935,427
15,036
Loans and discounts, n et— t o ta l...................
Valuation reserves4................................................
Loans and discounts, gross— t o ta l................
Commercial and industrial loans.....................
Loans to farmers directly guaranteed by the
Commodity Credit Corporation..................
Other loans to farmers (excluding loans on
real estate).....................................................
Loans to brokers and dealers in securities... .
Other loans for carrying securities..................
Real estate loans:
On farm land....................................
On residential properties..............................
On other properties.......................................
Other loans to individuals................................
All other loans (including overdrafts)............
M iscellaneous assets—t o t a l............................
Bank premises owned, furniture and fixtures.
Other real estate— direct and indirect............
All other miscellaneous assets..........................
484,384
471.706
12,678
484,384
471,706
12,678
2,435,389
1,871,554
953,850
2,357,948
1,856,277
913,403
77,441
15,277
40,447
2,434,107
1,871,554
951,804
2,356,895
1,856,277
912,762
77,006
15,252
33,779
206
25
5,263
1,282
1,053
229
2,046
641
1,405
986.261
15,653^999
3,206,828
9,208,386
102,601
1,136,709
950.707
13,881,966
2,906,192
9,083,943
102,473
1,090,064
35.554
1,772,033
300,636
124,443
128
46,645
942.546
9,507,232
2,069,273
9,139,009
102,601
1,129,786
920.373
9,343,589
2,027,721
9,049,763
102,473
1,085,846
20.319
149,445
39,589
88,325
128
41,754
1.854
14,198
1,963
921
43.715
6,146,767
1,137,555
69,377
30.334
4,538,377
878,471
34,180
13,381
1,608,390
259,084
35,197
2,186
6,923
4,218
2,705
228,122
105,625
12,298
110,199
177,267
80,919
8,801
87,547
50,855
24,706
3,497
22,652
2,156,638
1,198,372
133,238
825,028
1,995,557
1,152,039
115,443
728,075
161,081
46,333
17,795
96,953
1,928,516
1,092,747
120,940
714,829
1,818,290
1,071,120
106,642
640,528
92,014
16,286
5,748
69,980
18,212
5,341
8,550
4,321
CORPORATION
689,345
91,820
INSURANCE
33,564,852
1,878,756
DEPOSIT
Gash, balances with other^banks, and cash
collection item s— to ta l............................. 34,254,197
1,970,576
Currency and coin.............................................
Reserve with Federal Reserve banks (member
15,864,291
9,198,311
Demand balances with banks in U. S.............
297,049
Other balances with banks in U. S..................
61,345
Balances with banks in foreign countries. . . .
6,862,625
Cash items in process of collection..................
Total
FEDERAL
T ota l assets.............................................................. 180,036,910 170,364,182
Non
insured
180,036,910 170,364,182
9,672,728 157,785,135 154,700,864
Deposits of individuals, partnerships, and
137,465,079 129,802,565
corporations— total..........................
Total liabilities and capital accounts.
D e m a n d ...............................................................
T i m e ......................................................................
81,924,036
55,541,043
80,715,147
49,087,418
2,893,454
190,817 22,251,775 15,663,318
7,662,514 117,535,532 115,687,067
1,779,946
68,519 19,929,547 14,115,498
5,814,049
1,208,889
6,453,625
1,139,923
640,023
67,465
1,054
10,619
12,120
19,917,427 14,104,879
1,501
5,812,548
81,911,916
35,623,616
80,704,528
34,982,539
6,588,457
2,176,864
2,154,068
22,796
2,172,598
2,149,878
22,581
139
4,266
4,190
76
Government deposits— total...........................
13,454,611
13,085,762
368,849
13,445,543
13,077,827
367,674
9,068
7,935
1,133
U n ited States G ov ern m en t— d e m a n d ................
U n ited States G ov ern m en t— t im e .......................
States and su bdivision s— d e m a n d ........................
S tates and subdivision s— t im e ...............................
3,687,557
187,229
8,120,732
1,459,093
3,596,643
183,018
7,946,204
1,359,897
90,914
4,211
174,528
99,196
3,685,629
186,960
8,118,606
1,454,348
3,595,216
182,749
7,944,081
1,355,781
90,407
4,211
174,489
98,567
42
6
1,928
269
2,126
4,745
1,427
269
2,123
4,116
501
Interbank and postal savings deposits—
total......................................................
11,458,387
11,077,976
380,411
11,457,982
11,077,581
380,401
405
395
10
9,739,722
218,477
1,313,127
177,568
9,493
9,579,247
31,317
1,280,965
177,568
8,879
160,475
187,160
32,162
9,739,693
218,101
1,313,127
177,568
9,493
9,579,218
30,951
1,280,965
177,568
8,879
160,475
187,150
32,162
29
376
29
366
10
2,550,602
68,700 19,943,286 14,128,018
5,815,268
20,469
18,388
67,646
1,054 19,922,817 14,109,630
2,081
5,813,187
OF
OPERATING
614
614
Total deposits.
164,554,941 156,120,371
8,434,570 144,611,655 141,992,353
D em a n d ............
T im e ..................
106,962,038 105,272,274
57,592,903
50,848,097
1,689,764 1 0 6 ,9 U ,569 105,253,886
37,670,086
36,738,467
6,744,806
1 ,6 20,037
930,565
Miscellaneous liabilities— total..............
1,828,703
1,698,870
129,833
1,708,734
1,630,100
54,430
24,204
119,969
68.770
51,199
R ed iscou n ts and oth er b o rro w e d m o n e y .
A ll other m iscellaneous lia b ilitie s ...............
46,135
1,782,568
36,778
1,662,092
9,357
120,476
46,117
1,662,617
36,778
1,593,322
6,771
47,659
2,568
21,636
18
119,951
68.770
18
51,181
8,564,403 146,320,389 143,622,453
2,605,032
92,904 20,063,255 14,196,788
5,866,467
Total liabilities (excluding
accounts)...........
capital
166,383,644 157,819,241
Capital accounts— total............
13,653,266
12,544,941
1,108,325
11,464,746
11,078,411
288,422
97,913
2,188,520
1,466,530
P referred c a p it a l.............................
C om m on s t o c k .................................
S u r p lu s ................................................
U n d iv id ed p rofits and re se rv e s.
113,824
3,516,147
6,603,861
3,419,434
92,069
3,396,440
6,072,132
2,984,300
21,755
119,707
531,729
435,134
108,278
3 ,516,147
5,126,679
2,713,642
86,523
3 ,396,440
4 ,985,564
2,609,884
21,605
8 2,743
108,465
75,609
150
36,964
32,650
28,149
5,546
5,546
’ i , 477,182
705,792
‘ i , 086,568
374,416
390,614
331,376
14,717
13,641
1,076
14,187
13,449 N u m b e r673
o f ban ks5. 65
530
192
338
721,990
BANKS
231
1 In clu d es 6 trust com pan ies n o t en gag ed in d e p o sit ban kin g having total capital accou n ts o f $16,035,000 and total assets o f $17 ,444 ,00 0.
a A m ou n ts show n as d e p o sits are special accou n ts and uninvested trust funds, w ith the latter classified as dem and deposits o f in d iv id u a ls, partnerships, and corporations.
* In clu d es ob lig a tion s o f U n ited S tates G overn m en t corporations and agencies, n o t guaranteed b y the U n ited States G o ve rn m e n t.
4 R eserves for losses on loans au th orized b y the Bureau o f Internal R evenue fo r in com e tax purposes and other valu ation reserves.
6 In clu d es 28 noninsured ban ks o f d e p o sit for w hich asset and liability da ta are n o t available.
Back figures: See th e A n n u al R e p o rt fo r 1949, p p . 140-141, and earlier reports.
LIABILITIES
in the U n ited States— d e m a n d . .
in the U n ited States— t im e ..........
in foreign cou n tries— d e m a n d . . .
in foreign cou n tries— t im e ............
s a v in g s ...................................................
3
629
AND
B anks
Banks
B anks
B anks
P o s ta l
36
ASSETS
Certified and officers’ checks, cash letters
of credit and travelers’ checks out
standing, and amounts due to Federal
Reserve banks....................................
Table 105.
A
ssets an d
L ia b il it ie s
of
A l l O p e r a t in g B
a n k s in t h e
U n it e d S t a t e s
and
P o s s e s s io n s , D
ecem ber
30, 1950
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
232
(A m ou n ts in thousands o f dollars)
C om m ercia l and s to ck savings ban ks an d
n on d e p o sit trust com panies
A ll banks
M u tu a l savings ban ks
N onin su red
A ss et, lia b ility , or capital a c c o u n t ite m
T o ta l
192,240,673 182,698,421
T ota l
In su red1
9,542,252 169,855,778 166,791,755
B a nks
of
dep osit
2,858,091
N o n d e p o sit
trust
com
pan ies2
T o ta l
In sured
205,932 22,384,895 15,906,666
N on
insured
6,478,229
40,438,890
39,864,505
518,631
55,754
796,913
616,781
180,132
97,811
2 ,232,510
2,164,712
66,299
1,499
110,554
80,541
30,013
D e m a n d balan ces w ith ban ks in U . S ...............
O ther balan ces w ith ban ks in U . S .....................
B a lan ces w ith ban ks in foreign c o u n tr ie s . . . .
Cash item s in process o f c o lle c t io n .....................
17,459,016
11,379,362
210,585
159,009
9 ,6 84,767
17,459,016
10,794,765
201,977
142,293
9,637,982
584,597
8,608
16,716
46,785
17,458,039
10,889,938
42,167
159,009
9,657,227
17,458,039
10,442,367
38,581
142,293
9,618,513
394,151
3,487
16,716
37,978
53,420
99
977
489,424
168,418
977
352,398
163,396
137,026
5,022
736
Securities— t o ta l.................................................
88,004,762
82,212,902
5,791,860
74,795,406
73,197,950
1,493,543
U . S . G o v ern m en t ob lig a tio n s , d ire ct and
gu a r a n te e d ................................................................
O bligation s o f States and s u b d iv isio n s..............
O th er b on d s, n otes, and d eben tu res3................
C orp ora te s t o c k s .........................................................
73,188,217
8 ,249,124
6 ,010,448
556,973
68,534,185
8,039,590
5,303,150
335,977
4,654,032
209,534
707,298
220,996
62,320,423
8,160,880
3,938,032
376,071
61,046,880
7,958,929
3,868,699
323,442
1,208,876
183,691
62,984
37,992
Loans and discounts, net— to ta l...................
60,711,146
57,895,004
2,816,142
52,574,396
51,808,684
737,048
2,222
27,540
19,469
8,071
103,913 13,209,356
9,014,952
4,194,404
64,667
18,260
6,349
14,637
10,867,794
88,244
2,072,416
180,902
7,487,305
80,661
1,434,451
12,535
3,380,489
7,583
637,965
168,367
28,664
8,136,750
6,086,320
2,050,430
901,944
2,841,245
53,249,647
52,481,670
28,707
8,388,546
22,838
58,796,948
739,270
228,958
61,638,193
6,315,278
2,073,268
C om m ercia l and industrial lo a n s .........................
L oa n s to farm ers d irectly gu aran teed b y the
C o m m o d ity C redit C o rp o ra tio n
O ther loans to farm ers (exclu d in g loans on
real e s t a t e )................................................................
L oa n s to brok ers and dealers in se cu ritie s. . . .
O th er loans for carryin g s e c u r itie s ......................
R ea l estate loans:
On farm la n d ...........................................................
On residential p ro p e rtie s ....................................
O n other p r o p e r tie s ...............................................
O th er loans to in d iv id u a ls ......................................
L oa n s to ban ks
A ll other loans (in clu din g o v e r d r a ft s ) ...............
22,067,761
21,833,514
234,247
22,037,786
21,808,262
227,376
2 ,148
29,975
25,252
4,723
381,962
366,984
14,978
381,962
366,984
14,978
2 ,544,703
1,801,662
1 ,079,965
2,467,578
1,788,634
1,036,636
77,125
13,028
43,329
2,543,371
1,801,662
1,078,014
2 ,466,476
1,788,634
1,036,186
76,723
13,003
37,059
172
25
4,769
1,332
1,102
230
1,951
450
1,501
1,012,194
17,484,931
3,427,902
10,243,043
90,167
1,503,903
979,315
15,527,738
3,145,352
10,108,373
90,033
1,452,791
32,879
1,957,193
282,550
134,670
134
51,112
968,341
10,431,169
2,264,040
10,155,523
90,167
1,497,612
946,188
10,250,306
2,219,326
10,061,154
90,033
1,448,121
20,611
165,102
43,240
93,534
134
47,510
1,542
15,761
1,474
835
43,853
7,053,762
1,163,862
87,520
33,127
5,277,432
926,026
47,219
10,726
1,776,330
237,836
40,301
1,981
6,291
4 ,670
1,621
M iscellaneous assets— t o t a l............................
2,288,962
2,109,229
179,733
2,047,086
1,920,616
108,869
17,601
241,876
188,613
53,263
B a n k prem ises ow n ed, furniture an d fixtures.
O th er real estate— d irect and in d ir e c t ..............
A ll other m iscellaneous a s s e ts ...............................
1,241,035
136,203
911,724
1,193,824
119,307
796,098
47,211
16,896
115,626
1,130,904
123,970
792,212
1,108,923
110,084
701,609
16,633
5,866
86,370
5,348
8,020
4,233
110,131
12,233
119,512
84,901
9,223
94,489
25,230
3,010
25,023
V a lu a tion reserves4.........................................................
25,103
675,251
672,986
43
251,796
927,047
Loans and discounts, gross—t o t a l................
CORPORATION
754,517
2,245,253
INSURANCE
40,481,286
2,3 4 3 ,0 6 4
C u rren cy and c o in ......................................................
R eserv e w ith F ed era l R e se rv e ba n k s (m em ber
DEPOSIT
Gash, balances w ith other banks, and cash
collection item s— t o ta l............................. 41,235,803
FEDERAL
T ota l assets.............................. .................... ..
Insured
N on
insured
Total liabilities and capital accounts.............. 192,240,673 182,698,421
9,542,252 169,855,778 166,791,755
2,858,091
205,932 22,384,895 115,906,666
6,478,229
Deposits of individuals, partnerships, and
corporations— total................................... 146,516,310 138,881,057
Demand.............................................................. 91,313,759 90,004,198
Time................................................................... 55,202,551 48,876,859
7,635,253 126,500,888 124,575,069
1,309,561 91,300,786 89,992,776
6,325,692 35,200,102 34,582,293
1,846,021
1,229,242
616,779
79,798 20,015,422 14,305,988
11,422
78,768
12,973
1,030 20,002,449 14,294,566
5,709,434
1,551
5,707,883
2,908,960
29,521
2,933,714
2,904,687
28,959
68
4,767
4,273
494
Government deposits— total...........................
United States Government— demand.............
United States Government— time...................
States and subdivisions— demand..................
States and subdivisions— time........................
12,271,185
2,795,933
185,507
7,917,149
1,372,596
333,246
75,645
1,722
165,025
90,854
12,593,768
2,868,992
187,004
8,080,919
1,456,853
12,261,835
2,794,060
185,282
7,915,894
1,366,599
331,833
74,928
1,722
164,929
90,254
100
4
10,663
2,586
225
1,255
6,597
9,350
1,873
225
1,255
5,997
1,313
713
Interbank and postal savings deposits—
total............................................................... 14,060,936
Banks in the United States— demand............ 12,109,685
143,916
Banks in the United States—time..................
1,478,555
Banks in foreign countries— demand..............
318,161
Banks in foreign countries— time..................
10,619
Postal savings ..
.....................................
13,756,494
11,956,820
29,164
1,442,351
318,161
9,998
304,442
152,865
114,752
36,204
14,060,452
12,109,656
143,461
1,478,555
318,161
10,619
13,756,020
11,956,791
28,719
1,442,351
318,161
9,998
304,432
152,865
114,742
36,204
484
29
455
474
29
445
10
8,302,462 156,088,822 153,497,611
1,768,821 118,772,622 117,006,559
6,538,641 37,316,200 86,491,052
2,511,245
1,687,127
824,118
79,966 20,031,336 14,320,085
18,852
78,936
21,610
1,080 20,009,726 14,301,233
5,711,251
2,758
5,708,498
73.568
73.568
32,761
20
32,741
106,648 20,137,665 14,393,653
5,744,012
2,086,850
87,072
1,999,778
Total liabilities (excluding capital
accounts).................................................. 178,324,808 169,904,546
621
2,013,282
87,072
1,926,210
58,357
6,003
52,354
8,420,262 158,187,143 155,510,893
2,569,602
117,800
7,535
110,265
13,915,865
109,448
3,560,801
6,854,212
3,391,404
12,793,875
87,693
3,435,833
6,323,990
2,946,359
1,121,990
21,755
124,968
530,222
445,045
Number of banks5.....................................................
14,693
13,640
1,053
11,668,635
104,005
3,560,801
5,337,457
2,666,372
14,164 I
11,280,862
82,250
3,435,833
5,200,481
2,562,298
288,489
21,605
87,754
103,582
75,548
13,446
653
26,682
1,512
25,170
106,329
20
106,309
99,284 2,247,230
150
5,443
37,214
33,394 ’ i , 516,755
28,526
725,032
65
529
1,513,013
5,443
734,217
1,123,509
384,061
‘393,246
340,971
194
335
1 Includes 6 trust companies not engaged in deposit banking having total capital accounts of $16,178,000 and total assets of $17,589,000.
2 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.
3 Includes obligations of United States Government corporations and agencies, not guaranteed by the United States Government.
4 Reserve for losses on loans authorized by the Bureau of Internal Revenue for income tax purposes and other valuation reserves.
6 Includes 27 noninsured banks of deposit for which asset and liability data are not available.
^
Back figures: See the preceding table and the Annual Report for 1949, pp. 142-143, and earlier reports.
BANKS
Capital accounts— total...................................
Preferred capital................................................
Common stock...................................................
Surplus................................................................
Undivided profits and reserves........................
2,098,321
94,587
2,003,734
OPERATING
2,204,650
94,607
2,110,043
10
OF
Miscellaneous liabilities— total.....................
Rediscounts and other borrowed money........
All other miscellaneous liabilities....................
600
LIABILITIES
Total deposits.............................................. 176,120,158 167,817,696
Demand....................................................... 118,794,282 117,025,411
Time............................................................ 57,325,926 50,792,285
621
96
AND
2,938,481
12,604,431
2,871,578
187,229
8,082,174
1,463,450
ASSETS
Certified and officers’ checks, cash letters
of credit and travelers’ checks out
standing, and amounts due to Federal
Reserve banks.................. ...........................
go
Table 106.
A sse ts a n d
L ia b ilitie s
o f A l l O p e r a t in g B a n k s in t h e
U n ite d
S t a t e s a n d P o s s e s s io n s , D e c e m b e r
30, 1950
BANKS GROUPED BY DISTRICT AND STATE
(Amounts in thousands of dollars)
Liabilities and capital accounts
Assets
District and State
Number
of banks1
U. S. Gov
ernment
obligations
Loans, dis
Other
counts, and
securities overdrafts
Miscel
laneous
assets
Total
Business
and
personal2
Govern
ment3
Inter
bank4
Miscel
laneous
liabilities
Total
capital
accounts
14,693 41,235,803
73,188,217 14,816,545 60,711,146
2,288,962 192,240,673 149,454,791 12,604,431 14,060,936
2,204,650 13,915,865
United S tates.................
14,650 41,086,365
72,894,335 14,740,716 60,386,227
2,209,253 191,316,896 148,854,511 12,392,474 14,049,206
2,183,626 13,837,079
Possessions......................
860 2,032,813
1,159 10,994,782
1,640 4,453,401
1,058 2,256,374
1,022 1,702,827
1,514 2,707,010
1,488 2,824,466
1,554 3,970,704
1,110 1,106,321
1,623 1,873,815
1,135 3,353,372
530 3,959,918
6,442,632
21,143,701
8,746,823
3,703,998
2,181,789
3,136,187
5,781,531
6,919,388
2,053,746
2,444,640
3,353,350
7,280,432
324,919
79,709
923,777
600,280
211,957
11,730
21,024
78,786
1,311,829 4,934,238
4,226,966 19,490,996
2,304,148 6,117,324
614,704 2,822,649
466,608 1,897,294
599,185 3,258,706
932,566 3,440,977
1,298,145 4,212,580
403,370 1,487,699
465,707 1,902,971
602,963 3,345,987
1,590,354 7,799,725
177,167
819,690
258,710
123,515
74,925
80,743
110,342
112,091
37,407
43,280
140,969
310,123
14,898,679
56,676,135
21,880,406
9,521,240
6,323,443
9,781,831
13,089,882
16,512,908
5,088,543
6,730,413
10,796,641
20,940,552
12,316,922
43,645,100
17,655,376
7,331,249
4,687,306
6,996,168
10,743,582
12,728,843
3,899,489
4,979,550
7,680,996
16,790,210
611,956
2,045,400
1,283,796
754,793
681,075
749,155
1,035,393
1,185,274
463,604
763,023
1,151,270
1,879,692
437,341
5,078,159
1,049,336
684,793
507,712
1,364,289
489,998
1,491,876
386,070
544,012
1,305,353
721,997
132,323
1,162,254
136,753
72,570
41,706
53,727
71,525
102,756
29,038
23,837
64,097
314,064
1,400,137
4,745,222
1,755,145
677,835
405 644
618,492
749,384
1,004,159
310,342
419,991
594,925
1,234,589
75,829
FDIG D istrict
District
District
District
District
District
District
District
District
District
District
District
District
1 ...........................
25..........................
3 ...........................
4 ...........................
5...........................
6 ...........................
7 ...........................
8 ...........................
9 ...........................
10.........................
11.........................
12®........................
State
Alabama............................
Arizona..............................
Arkansas............................
California..........................
Colorado............................
225
11
232
202
154
362,967
99,122
290,765
2,739,683
353,925
447,883
159,081
336,881
5,277,673
515,739
118,182
33,432
72,931
1,156,529
49,844
430,749
202,782
203,066
5,808,630
373,382
15,187
9,164
5,328
210,724
7,443
1,374,968
503,581
908,971
15,193,239
1,300,333
1,046,628
412,181
694,823
12,162,266
1,037,111
144,713
51,499
82,039
1,321,872
89,280
79,971
7,066
70,231
534,140
89,987
10,097
5,686
2,006
281,622
6,014
93,559
27,149
59,872
893,339
77,941
Connecticut......................
Delaware...........................
District of Columbia........
Florida...............................
Georgia..............................
184
40
19
199
397
488,610
114,454
302,364
553,812
537,950
1,507,220
280,654
524,678
946,594
517,475
367,652
101,033
50,822
127,842
98,035
966,750
191,984
347,853
491,990
749,780
44,502
6,842
20,446
27,926
23,631
3,374,734
694,967
1,246,163
2,148,164
1,926,871
2,890,429
556,711
1,057,830
1,595,497
1,405,354
113,810
61,969
29,545
255,946
166,542
43,373
4,469
74,737
156,881
207,650
25,216
4,071
7,542
10,328
17,772
301,906
67,747
76,509
129,512
129,553
Idaho.................................
Illinois................................
Indiana..............................
Iowa...................................
Kansas...............................
43
891
490
663
612
96,785
3,390,627
811,536
580,077
471,987
178,457
6,004,034
1,642,005
915,354
628,308
13,404
1,086,466
200,973
211,679
158,317
176,983
3,400,936
864,313
811,644
535,308
3,911
97,220
26,763
14,871
10,052
469,540
13,979,283
3,545,590
2,533,625
1,803,972
372,726
10,767,038
2,808,771
1,961,805
1,287,409
62,184
917,963
382,064
267,311
305,097
8,075
1,352,854
131,438
139,022
94,993
2,379
98,961
14,727
3,795
4,195
24,176
842,467
208,590
161,692
112,278
CORPORATION
293,882
INSURANCE
149,438
43
DEPOSIT
United States and p os
sessions ........................
FEDERAL
Cash and
due from
banks
Deposits
12,252
24,214
7,209
34,134
100,142
1,749,156
1,949,728
771,230
2,265,093
8,584,600
1,322,221
1,303,541
646,538
1,810,425
6,954,358
131,919
299,843
31,676
153,058
374,199
163,042
232,053
8,170
109,217
362,990
7,995
12,768
4,051
14,353
84,962
123,979
101,523
80,795
178,040
808,091
Minnesota.........................
Mississippi........................
Missouri............................
Montana............................
442
681
201
600
110
1,309,449
737,299
248,098
1,359,339
152,775
2,692,379
1,203,082
269,837
1,531,704
281,179
474,525
299,134
122,549
306,673
30,007
1,681,495
1,072,519
224,775
1,673,607
142,830
53,905
26,366
8,181
38,795
4,250
6,211,753
3,338,400
873,440
4,910,118
611,041
5,154,555
2,525,407
639,827
3,430,395
489,063
470,982
244,633
113,874
342,661
60,053
203,717
329,159
63,210
810,950
32,649
47,154
22,633
3,509
29,830
2,414
335,345
216,568
53,020
296,282
26,862
Nebraska...........................
Nevada..............................
New Hampshire................
New Jersey........................
New M exico......................
418
8
109
347
51
392,317
33,125
72,530
942,841
119,587
563,298
86,015
250,121
2,612,912
129,044
98,622
10,585
65,225
638,210
12,446
403,858
58,631
236,025
1,627,651
118,276
8,874
2,522
4,668
77,815
3,344
1,466,969
190,878
628,569
5,899,429
382,697
1,109,368
154,310
525,726
4,977,314
286,579
97,495
23,554
22,914
416,450
60,620
168,167
715
7,309
61,172
13,653
4,024
1,409
1,825
35,618
893
87,915
10,890
70,795
408,875
20,952
New Y ork..........................
North Carolina.................
North Dakota...................
Ohio...................................
Oklahoma..........................
759
225
150
662
386
9,892,311
540,232
103,607
1,877,179
573,165
18,155,666
603,973
326,055
3,524,747
623,732
3,438,179 17,540,185
211,071
681,567
42,613
126,531
671,372 2,504,369
145,986
512,721
697,898
23,709
2,843
86,743
14,901
49,724,239
2,060,552
601,649
8,664,410
1,870,505
37,923,662
1,461,377
445,572
7,075,597
1,322,859
1,463,320
194,199
105,607
650,692
235,064
5,005,916
243,498
12,520
356,644
178,267
1,103,447
27,086
2,197
53,882
8,611
4,227,894
134,392
35,753
527,595
125,704
Oregon...............................
Pennsylvania....................
Rhode Island....................
South Carolina.................
South Dakota...................
71
978
24
148
169
322,304
2,576,222
145,422
200,223
112,640
536,903
5,222,076
514,944
258,008
243,430
131,914
1,632,776
96,304
58,110
31,616
523,040
3,612,955
384,611
198,869
145,819
22,064
171,967
16,747
5,923
3,948
1,536,225
13,215,996
1,158,028
721,133
537,453
1,257,995
10,579,779
974,329
572,552
439,447
137,341
633,104
55,843
76,496
53,311
40,972
692,692
13,831
23,322
11,742
10,417
82,871
14,044
4,213
1,794
89,500
1,227,550
99,981
44,550
31,159
Tennessee..........................
Texas.................................
Utah...................................
V ermont............................
Virginia..............................
297
908
55
77
313
588,807
2,581,788
152,748
49,120
533,922
631,674
2,351,387
211,590
106,102
755,253
142,577
386,681
28,186
25,544
104,049
826,160
2,536,532
234,380
196,853
767,853
24,368
104,247
5,296
3,899
27,689
2,213,586
7,960,635
632,200
381,518
2,188,766
1,548,729
5,678,695
477,533
325,542
1,636,505
192,536
739,308
62,966
13,514
188,019
320,066
1,052,581
49,192
1,668
190,253
13,896
44,750
4,206
2,225
15,090
138,359
445,301
38,303
38,569
158,899
Washington.......................
West Virginia....................
Wisconsin..........................
Wyoming...........................
121
180
556
53
511,011
254,757
703,481
82,421
790,381
435,220
1,447,147
113,563
223,451
46,544
257,068
12,938
804,318
291,398
895,169
77,702
23,032
11,614
29,674
2,010
2,352,193
1,039,533
3,332,539
288,634
1,952,513
792,560
2,780,256
222,803
163,479
113,476
182,347
36,087
83,775
43,766
154,843
12,598
12,125
4,286
9,644
993
140,301
85,445
205,449
16,153
20
1
25,928
325
36,033
1,119
3,175
24,686
25
879
10
90,701
1,479
65,097
1,008
18,321
295
1,404
37
107
5,772
139
1,307
73,468
3,234
44,399
777
158,476
3,785
91,901
2,568
23,110
1,433
166,702
897
129,858
1,318
17,302
7,370
17,013
37,070
65
20,042
429,126
24,929
352,586
4,914
12,341
321,239
13,182
184,025
3,388
7,680
70,328
11,672
102,612
1,049
3,615
72
6,596
6
21
1,775
3
19,080
38
Possession
Alaska................................
American Samoa..............
Guam and Marianas
Islands7..........................
Hawaii...............................
Panama Canal Zone7.......
Puerto Rico7......................
Virgin Islands...................
9
11
2
49,358
186
32,169
40,273
433
BANKS
555,873
488,397
234,699
535,109
2,915,300
OPERATING
77,004
170,404
83,067
144,108
674,037
OF
635,928
713,838
343,725
1,126,866
3,720,520
LIABILITIES
468,099
552,875
102,530
424,876
1,174,601
AND
385
165
95
173
371
ASSETS
Kentucky..........................
Louisiana...........................
Maine................................
Maryland..........................
Massachusetts..................
1
Includes 27 noninsured banks of deposit (1 in Colorado, 16 in Georgia, 3 in Iowa, 3 in Michigan, and 4 in Texas) for which asset, liability, and capital account data are
not available.
a Demand and time deposits of individuals, partnerships, and corporations, certified and officers’ checks, cash letters of credit, etc.
3 Deposits of the United States Government and of States and political subdivisions.
4 Interbank deposits and postal savings deposits.
^
6 Includes Puerto Rico and the Virgin Islands.
Oi
• Includes Alaska, American Samoa, Guam, Hawaii, Marianas Islands, and the Panama Canal Zone.
7 Includes asset, liability, and capital account data for the following noninsured branches of insured banks in the U. S.: 1 each in Guam and Marianas Islands; 4 in the Panama
Canal Zone; and 7 in Puerto Rico. Data for these branches are not included in the figures for the States in which the parent banks are located.
Back figure*: See the Annual Report for 1949, pp. 144-145, and earlier reports.
Table 107.
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 , D
ecem ber
30, 1950,
June
30, 1950,
and
D
ecem ber
31, 1949
(Amounts in thousands of dollars)
Insured commercial banks1
All insured banks
Assets
June 30,
1950
Dec. 31,
1949
Dec. 30,
1950
June 30,
1950
Dec. 31,
1949
182,698,421 170,364,182 170,378,776 166,791,755 154,700,864 155,318,889
15,906,666
15,663,318
15,059,887
616,781
80,541
977
659,319
63,999
971
682,026
79,852
961
33,564,852
1,878,756
15,864,291
35,904,132
2,067,673
16,428,505
39,864,505
2,164,712
17,458,039
32,905,533
1,814,757
15,863,320
8,666,557
284,373
50,708
6,820,167
9,806,738
254,070
41,713
7,305,433
10,442,367
38,581
142,293
9,618,513
8,339,957
37,694
50,708
6,799,097
72,553,872
73,679,157
61,046,880
64,609,100
65,847,210
7,487,305
7,944,772
7,831,947
30,092
2,880
90,495
315,348
331,641
61,564
4,500,018
2,154,430
837
23,519
27,796
107,005
288,303
518,712
78,078
4,462,364
2,438,550
445
11,352
71,892
72,407
282,093
616,857
133,521
4,071,221
2,571,700
904
368,081
9,438,657
326,600
352,398
37,906
216,164
246,679
163,396
41,713
7,288,465 ........19,469 ........21,070 ........16,968
3,872,642
6,143,956
11,705,636
2,196,250
28,027,996
8,185,163
7,457,636
4,956,627
7,966
3,703,170
12,560,194
5,883,832
2,291,309
27,895,168
7,825,481
8,532,235
4,980,649
7,119
4,121,692
1,936,936
16,774,383
2,330,550
22,594,053
7,737,024
2,986,472
2,554,454
11,316
3,849,123
6,116,160
11,598,631
1,907,947
27,509,284
8,107,085
2,995,272
2,518,077
7,521
3,691,818
12,488,302
5,811,425
2,009,216
27,278,311
7,691,960
4,461,014
2,408,949
6,215
13,678,717
8,039,590
5,303,150
12,582,835
7,336,698
4,918,436
11,539,392
6,478,189
4,738,594
12,151,070
7,958,929
3,868,699
10,988,638
7,262,026
3,408,633
9,977,012
6,402,782
3,261,461
1,527,647
80,661
1,434,451
1,594,197
74,672
1,509,803
1,562,380
75,407
1,477,133
224,773
111,204
218,869
108,832
210,878
111,731
224,723
98,719
218,821
99,158
210,829
101,940
50
12,485
48
9,674
49
9,791
82,212,902
85,136,707
85,218,519
73,197,950
75,597,738
75,824,222
9,014,952
9,538,969
9,394,327
CORPORATION
Obligations of States and subdivisions........................
Other bonds, notes, and debentures3............................
Corporate stocks:
Dec. 31,
1949
INSURANCE
Obligations of the U. S. Government, direct and
guaranteed— total................................................ 68,534,185
Direct:
4,151,784
1,939,816
Treasury certificates of indebtedness........................
16,864,878
2,645,898
United States non-marketable bonds2......................
Other bonds maturing in 5 years or less.................. 22,925,694
7,798,588
Other bonds maturing in 5 to 10 years....................
7,486,490
Other bonds maturing in 10 to 20 years..................
4,708,884
Bonds maturing after 20 years..................................
12,153
Guaranteed obligations (FHA debentures)..................
35,222,106
1,987,821
16,427,544
June 30,
1950
DEPOSIT
Gash, balances with other banks, and cash col
lection items— total................................................. 40,481,286
2,245,253
Currency and coin...........................................................
Reserve with Federal Reserve banks (member banks) 17,459,016
Demand balances with banks in the United States
(except private banks and American branches of
foreign banks)................ . ............. ............................. 10,794,765
201,977
Other balances with banks in the United States........
142,293
Balances with banks in foreign countries....................
9,637,982
Dec. 30,
1950
FEDERAL
Dec. 30,
1950
Insured mutual savings banks
766,442
48,079,412
51,808,684
672
QRU
fi
UImjt/O
52,481,670
zO 1QQ
44 ^7Q
nftn
Oi7U,U
OU
548,034
44,969,383 i i aja 7Afl
21,833,514
16,867,743
16,959,727
21,808,262
16,841,978
16,939,200
366,984
471,706
975,832
366,984
471,706
975,832
2,467,578
1,788,634
2,357,948
1,856,277
1,988,281
1,748,606
2,466,476
1,788,634
2,356,895
1,856,277
1,987,280
1,748,606
1,036,636
913,403
855,388
1 O^fi 1Rfi
ijvOUjlOU
Q19
«7l£ f7fi9
1\>Lt
854,781
979,315
15,527,738
3,145,352
10,108,373
90,033
1,452,791
950,707
13,881,966
2,906,192
9,083,943
102,473
1,090,064
914,354
12,576,193
2,895,101
8,039,973
97,913
1,028,044
Q4.fi , 188
xoo
10,250,306
2,219,326
10 061 154
’ 9 0 ’, 033
1,448,121
Q
Q7Q
V£9H
t\JjO
iO
*7yO'xOjOO*/
885,617
901,944
49,667,066
47,312,970
6,086,320
5,287,763
4,814,304
228,958
225,276
6,315,278
5,513,039
5,032,712
25,252
25,765
20,527
1,102
1,053
1,001
AKf\
40U
O
Q
10*7
00,16
I
218,408
641
607
28,737
4,063,104
880,886
32,919
2,014,215
5,277,432
926,026
30,334
4,538,377
878,471
34,180
T otal loans and securities................................. 140,107,906 134,803,773 132,531,519 125,006,634 119 977 ft41 l11ft
7 ftftft
l o f^ i,o
oo
15,101,272
14,826,732
14,208,631
1,267,482
1,225,098
1,219,007
996,946
196,878
23,123
970,642
181,397
24,052
954,554
170,195
21,690
914. 362
194,561
20,155
96,184
91,391
78,659
89,929
1 177 762
QQ1fO
oon
031
OV
11
J
X'7K
Q/i 1
V4,lx4
89,720
85,723
18,314
82,584
o yO
QL
1n(
U
2,968
78,812
2,107
3,507
76,822
1,776
3,376
n(4)t7lU
a Qi n
6,255
5,294
3,749
877,732
179,290
20,545
1fift A1Q
iDO,4li7
86 097
728,075
718,027
701,609
174,985
330,906
34,504
187,680
170,705
323,308
32,500
191 514
217,165
277,022
30 987
176*435
2 2 .2 %
37.5
7.5
31.7
1.1
7.0
1 9 .7 %
42.6
7.4
29.1
1.2
7.4
2 1 .1 %
43.2
6.8
23.9%
91
36.6
41.7
640,528
174,985
OQft QQ1
^OU,t/Ul
30 471
1
1A1
634,520
94,489
87,547
83,507
170,705
97A
R9X ..........53,493 ..........49,975 ......... 48,683
u <4,040
OQ OKfi
4,733
4,033
3,244
1KQ QQ/f
ioi7,yo4
36,263
33,539
31,580
RATIOS
Percentages o f total assets:
Cash and balances with other banks..........................
U. S. Government obligations, direct and guaranteed
Other securities...........................................................
Loans and discounts................................
Other assets...................................................................
Total capital accounts................................................
1.1
7.1
28.7
1 2
6.8
i.2
2 2 .7 %
42.4
ft A
0*4
97
u
%AA
*
1i
1*1
A,%Q
0
7
3.9%
47.1
O
£
J7.D
OQ O
OO.Z
1
l.Zo
Q.oK
y
4.2%
50.7
10.2
4 .5 %
52.0
10.4
33.8
32.0
1.1
9.4
9.4
1.1
237
27.8
71
7.3
31.1
1.1
BANKS
796,098
217,165
330,515
35,720
212,698
OPERATING
M iscellaneous assets— t o t a l.....................................
Customers’ liability on acceptances outstanding........
Income accrued but not collected.........................
Prepaid expenses.....................................................
Other assets.............................................................
1,313,131
Q K1Q AQQ
O,0lD,UOi7
ft fkfi7i ,U04
CiKA
o,UU
47,219
Q7
Q1Q
v l ,<7lo
1
A9Q 11Q ............4,670 ............4,218 ........... 4,931
1,U^0,110
OF
B ank premises, fu rn itu re and fixtures, and other
real estate— t o t a l...................................................
Bank premises............................................
Furniture and fixtures.........................
Real estate owned other than bank premises.............
Investments and other assets indirectly representing
bank premises or other real estate............................
2,027,721
Q 04.Q,7fi^
V
1Ud
102 473
1
OR^ ,O
RT
4.fi
x f\joo
tu
LIABILITIES
815,356
50,482,422
57,895,004
AND
58,796,948
ASSETS
Loans and discounts, net— t o ta l...........................
Valuation reserves4.....................................................
Loans and discounts, gross— t o ta l.............................
Commercial and industrial loans (including open
market paper).............................................................
Loans to farmers directly guaranteed by the Com
modity Credit Corporation.......................................
Other loans to farmers (excluding loans on real
estate)..........................................................................
Loans to brokers and dealers in securities.............
Other loans for the purpose of purchasing or carrying
securities.................................................................
Real estate loans:
On farm land...........................................................
On residential properties........................................
On other properties....................................................
Other loans to individuals.....................................
Loans to banks......................................................
All other loans (including overdrafts)..........................
Table 107.
A
ssets an d
L ia b il it ie s
of
O p e r a t in g I n s u r e d B
an ks,
D
ecem ber
30, 1950,
June
30, 1950,
and
D
ecem ber
31, 1949— Continued
Insured commercial banks1
Ail insured banks
Liabilities and capital
238
(Amounts in thousands of dollars)
Insured mutual savings banks
Dec. 31,
1949
T ota l liabilities and capital a c c o u n ts ............................ 182,698,421 170,364,182 170,378,776 166,791,755 154,700,864 155,318,889
15,906,666
15,663,318
15,059,887
Deposits o f individuals, partnerships, an d c o r
porations— t o t a l....................................................... 138,881,057 129,802,565 130,172,268 124,575,069 115,687,067 116,590,911
Demand............................................................................ 90,004,198 80,715,147 82,138,607 89,992,776 80,704,528 82,128,729
48,876,859 49,087,418 48,033,661 34,582,293 34,982,539 34,462,182
14,305,988
11,422
14,294,566
14,115,498
10,619
14,104,879
13,581,357
9,878
13,571,479
Certified and officers’ checks, cash letters o f credit
and travelers* checks ou tstan d in g, and
am ou n ts due to Federal Reserve b a n k s ............
Dec. 30,
1950
June 30,
1950
Dec. 31,
1949
2,341,659
2,904,687
2,149,878
2,338,307
4,273
4,190
3,352
12,271,185
2,795,933
185,507
7,917,149
1,372,596
13,085,762
3,596,643
183,018
7,946,204
1,359,897
11,896,122
3,056,587
178,121
7,425,023
1,236,391
12,261,835
2,794,060
185,282
7,915,894
1,366,599
13,077,827
3,595,216
182,749
7,944,081
1,355,781
11,889,661
3,054,607
177,863
7,423,797
1,233,394
9,350
1,873
225
1,255
5,997
7,935
1,427
269
2,123
4,116
6,461
1,980
258
1,226
2,997
and postal savings deposits— t o ta l......... 13,756,494
the United States— demand.......................... 11,956,820
29,164
the United States— time................................
1,442,851
foreign countries— demand............................
318,161
foreign countries— time..................................
9,998
11,077,976
9,579,247
31,317
1,280,965
177,568
8,879
12,375,807
10,884,885
29,539
1,315,270
139,398
6,715
13,756,020
11,956,791
28,719
1,442,351
318,161
9,998
11,077,581
9,579,218
30,951
1,280,965
177,568
8,879
12,375,430
10,884,850
29,197
1,315,270
139,398
6,715
474
29
445
395
29
366
377
35
342
States and subdivisions—demand................................
States and subdivisions— time......................................
T otal d eposits........................................................... 167,817,696 156,120,371 156,785,856 153,497,611 141,992,353 143,194,309
117,025,411 105,272,271 107,162,031 117,006,559 105 ,253,886 107 ,145 ,56 0
36,048,749
36,738,467
49,623,825 36,491,052
50,848,097
50,792,285
14,320,085
14,128,018
13,591,547
18,852
14,301,233
18,388
14,109,630
16,471
13,575,076
2,086,850
1,698,870
1,524,711
2,013,282
1,630,100
1,475,881
73,568
68,770
48,830
87,072
248,705
72,107
314,630
504,433
859,903
36,778
193,670
67,587
293,068
426,520
681,247
14,154
199,790
70,563
249,130
393,113
597,961
87,072
248,705
65,313
312,810
493,784
805,598
36,778
193,670
56,421
291,287
414,886
637,058
14,154
199,790
66,742
247,437
383,378
564,380
6,794
1,820
10,649
54,305
11,166
1,781
11,634
44,189
3,821
1,693
9,735
33,581
T ota l liabilities (excluding capital accoun ts) 169,904,546 157,819,241 158,310,567 155,510,893 143,622,453 144,670,190
14,393,653
14,196,788
13,640,377
M iscellaneous liabilities— to ta l..................... .. .........
Bills payable, rediscounts, and other liabilities for
Dividends declared but not yet payable......................
Income collected but not earned...................................
Other liabilities................................................................
1
CORPORATION
2,154,068
INSURANCE
2,908,960
G overnm ent deposits— t o t a l.........................................
United States Government— demand...........................
Interbank
Banks in
Banks in
Banks in
Banks in
Dec. 31,
1949
DEPOSIT
June 30,
1950
June 30,
1950
FEDERAL
Dec. 30,
1950
Dec. 30,
1950
12,068.209
3,400,822
5,863,498
2,248,909
554,980
11,280,862
3,518,083
5,200,481
2,093,304
468,994
11,078,411
3,482,963
4,985,564
2,108,111
501,773
10,648,699
3,395,489
4,803,154
1,954,348
495,708
1,513,013
5,443
1,123,509
322,013
62,048
1,466,530
5,546
1,086,568
312,571
61,845
7,100
7,250
7,530
7,100
7,250
7,530
194
192
192
LIABILITIES
12,544,941
3,488,509
6,072,132
2,420,682
563,618
AND
Capital a ccou n ts— to ta l................................................. 12,793,875
Capital stock, notes, and debentures........................... 3,523,526
Surplus.............................................................................
6,323,990
Undivided profits............................................................
2,415,317
Reserves...........................................................................
531,042
1,419,510
5,333
1,060,344
294,561
59,272
M EMORANDA
15,464,146
15,732,931
14,659,992
15,464,146
15,732,931
14,659,992
C apital stock , notes, and debentures:
Par or fa ce value— t o ta l.............................................
Common stock............................................................
Capital notes and debentures...................................
Preferred stock............................................................
3,525,906
3,436,556
27,391
61,959
3,490,937
3,397,164
27,105
66,668
3,403,769
3,305,479
29,261
69,029
3,518,806
3,436,556
20,291
61,959
3,483,687
3,397,164
19,855
66,668
3,396,239
3,305,479
21,731
69,029
Retireable value of preferred stock..............................
118,037
125,431
131,062
118,037
125,431
131,062
Number of banks....................................................................
13,640
13,641
13,628
13,446
13,449
13,436
OPERATING
BANKS
OF
1 Includes stock savings banks and nondeposit trust companies.
2 United States savings bonds, Treasury bonds (investment series A-1965), and depositary bonds.
8 Includes obligations of United States Government corporations and agencies, not guaranteed by the United States Government.
4 Reserves for losses on loans authorized by the Bureau of Internal Revenue for income tax purposes and other valuation reserves.
Back figures: See the Annual Reports for 1949, pp. 146-149, and for 1948, pp. 94-97.
ASSETS
Pledged assets and securities lo a n e d .........................
to
In sured
C o m m e r c ia l B a n k s
Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1941-1950
Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1950
Banks grouped according to amount of deposits
Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks
examined in 1950
Banks grouped by Federal Deposit Insurance Corporation district and State
CORPORATION
Table 110,
INSURANCE
Table 109
DEPOSIT
Table 108
of
FEDERAL
E x a m in e r s ’ E v a l u a t io n
241
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 (net) from total assets in Table 110 is
Book value o f 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.
c o m m e r c ia l
Examiners’ deductions from total assets represent the difference
between the appraised value and book value of assets shown on the
books.
Adjusted liabilities include all liabilities shown on the books and
such others as have been determined by the examiners.
in su r e d
Assets n ot 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.
Evaluation o f liabilities and capital
of
Book value of assets is the net value, after deduction of valuation
and premium reserves, at which the assets are carried on the books
of the banks at the time of examination.
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 following Annual Reports of the Corporation; 1938,
pages 61-78; and 1949, pages 10-11. 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 mis
cellaneous assets.
e v a l u a t io n
Evaluation o f assets
the difference between examiners1 deductions and the determinable
sound values of assets not shown on the books.
e x a m in e r s ’
The tables in this section present a summary of the evaluation of
bank assets and liabilities made by examiners of the Federal supervisory
agencies. Since bank examinations are made at various dates during
the year, these tables differ from those in the previous sections, which
are based on reports submitted by the banks for specified dates. These
tables have been prepared from reports of examination available during
the year and do not cover precisely the banks examined in that year.
The figures for 1950 include 13,335 insured commercial banks operating
at the close of the year and 39 banks which ceased operations or were
taken over by others during the year. Figures for 108 insured banks
operating at the close of the year were not included in the tabulations:
6 because they were not engaged in deposit banking, and 102 because
reports of examination were, for various reasons, not available for
tabulation. For 469 banks the figures are derived from reports of
examination made in the last six months of 1949.
242
Table 108.
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 in
1941-1950
(Amounts in thousands of dollars)
1943
1944
1945
1946
1947
1948
1949
1950
T ota l assets— book value............
Assets not on the books..............
Examiners’ deductions................
Appraised value............................
Not criticized.............................
Substandard...............................
71,697,320
19,851
174,037
71,543,134
69,512,512
2,030,622
80,449,956
20,089
145,741
80,324,304
78,610,078
1,714,226
102,021,738
26,346
97,144
101,950,940
100,690,843
1,260,097
118,843,675
20,897
54,193
118,810,379
117,984,985
825,394
138,032,336
20,283
29,354
138,023,265
137,404,382
618,883
147,828,793
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
147,679,494
16,056
40,775
147,654,775
146,866,522
788,253
149,150,139
13,252
34,009
149,129,382
148,367,106
762,276
154,799,121
10,464
26,699
154,782,886
154,093,855
689,031
Gash and due from b a n k s..........
24,107,119
24,618,882
25,342,868
26,036,187
29,215,660
0)
31,790,001
33,487,233
33,021,350
32,894,750
U. S. G overnm ent obligations—
book value...............................
Appraised value3..........................
(a)
(?)
26,799,729
26,807,855
50,067,210
50,073,639
65,089,147
65,096,303
78,783,904
78,794,810
(x)
0)
69,134,182
(4)
63,438,109
(4)
63,466,989
(4)
63,481,873
(!)
6,682,798
6,651,951
6,034,558
617,393
6,055,350
6,040,897
5,578,743
462,154
5,805,695
5,800,937
5,499,037
301,900
6,215,580
6,213,954
5,954,653
259,301
(')
0)
0)
0)
7,890,527
7,888,268
7,657,623
230,645
8,435,320
8,432,640
8,221,268
211,372
9,047,781
9,045,770
8,845,376
200,394
10,642,848
10,641,719
10,439,625
202,094
Other securities— book v a lu e .. . 25,759,640
Appraised value........................... 25,722,984
Not criticized............................. 24,970,412
752,572
Substandard...............................
19,544,145
19,467,422
18,618,309
849,113
20,136,352
20,071,927
19,303,969
767,958
18,290,697
18,251,118
17,710,001
541,117
19,562,561
19,539,481
19,180,144
359,337
21,436,642
21,424,482
21,161,567
262,915
0)
(x)
0)
0)
33,100,496
33,075,357
32,653,390
421,967
39,416,074
39,385,909
38,852,883
533,026
40,778,572
40,752,947
40,238,045
514,902
44,934,475
44,913,063
44,467,867
445,196
Fixed and m iscellaneous as
sets— book value....................
Appraised value...........................
Not criticized.............................
Substandard...............................
2,286,416
2,245,609
1,816,672
428,937
2,212,195
2,173,689
1,844,814
328,875
2,265,613
2,242,418
1,985,592
256,826
2,350,085
2,337,471
2,173,314
164,157
2,380,550
2,374,359
2,277,692
96,667
«
(x)
(0
0)
2,616,081
2,623,039
2,579,324
43,715
2,902,758
2,910,884
2,867,029
43,855
2,835,447
2,842,326
2,795,346
46,980
2,845,175
2,851,481
2,809,740
41,741
T otai liabilities— book value---- 65,012,512
Total deposits............................... 64,218,740
Other liabilities— book value.. . .
793,772
6,084
Liabilities not on the books........
Adjusted total liabilities............. 65,018,596
73,529,826
72,755,007
774,819
7,362
73,537,188
94,882,516
94,087,113
795,403
4,491
94,887,007
111.242.503
110;i77;295
1,065,208
7,563
111,250,066
129,849,891
128,263,849
1,586,042
3,731
129,853,622
135,120,704
133,169,657
1,951,047
2,635
135,123,339
137,795,798
135,666,637
2,129,161
4,083
137,799,881
138,712,491
136,424,272
2,288,219
4,614
138,717,105
143,936,354
141,411,203
2,525,151
3,557
143,939,911
139,081,529
137,221,546
1,859,983
4,719
139,086,248
CORPORATION
Loans
and
discounts— book
value.........................................
Appraised value...........................
Not criticized.............................
Substandard...............................
INSURANCE
1942
DEPOSIT
1941
FEDERAL
Asset, liability, or
capital account item
6,920,130
20,089
7,139,222
26,346
7,601,172
20,897
8,182,445
20,283
8,747,264
16,017
9,410,583
15,156
9,883,696
16,056
10,437,648
13,252
10,862,767
10,464
174,037
6,084
6,524,538
145,741
7,362
6,787,116
97,144
4,491
7,063,933
54,193
7,563
7,560,313
29,354
3,731
8,169,643
25,095
4,719
8,733,467
35,596
2,635
9,387,508
40,775
4,083
9,854,894
34,009
4,614
10,412,277
26,699
3,557
10,842,975
Adjusted capital accounts per
$100 of—
Book capital.................................
Appraised value of total assets..
$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
$99.71
6.67
$99.76
6.98
$99.82
7.01
Substandard assets per $100 of—
Appraised value of total assets. .
Adjusted capital accounts...........
2.84
31.12
2.13
25.26
1.24
17.84
.69
10.92
.45
7.58
.36
6.02
.48
7.42
.53
8.00
.51
7.32
.45
6.35
Substandard loans and dis
counts per $100 of—
Appraised value of loans and
discounts...................................
4.36
3.83
2.96
1.84
1.23
1.28
1.35
1.26
.99
Number of banks.............................
13,308
13,303
13,207
12,983
12,473
12,747
12,927
13,266
13,374
(0
EVALUATION
6,684,808
19,851
EXAMINERS
Total capital accounts— book
value.........................................
Assets not on the books..............
Examiners’ deductions from total
assets.........................................
Liabilities not on the books........
Adjusted capital accounts..........
OF
BANKS
COMMERCIAL
1 Not available separately.
2 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.
INSURED
12,493
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 in
1950
244
T able 109.
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of—
T ota l assets— book v alu e..................................
Assets not on the books....................................
Examiners’ deductions......................................
Appraised value.................................................
Not criticized...................................................
Substandard.....................................................
154,799,121
10,464
26,699
154,782,886
154,093,855
689,031
264,039
55
410
263,684
258,192
5,492
1,637,217
486
1,479
1,636,224
1,612,013
24,211
$500,000
or less
$500,000
to
$1,000,000
$1,000,000
to
$2,000,000
$2,000,000
to
$5,000,000
$5,000,000
to
$10,000,000
$10,000,000
to
$50,000,000
$50,000,000
More than
to
$100,000,000 $100,000,000
uAmounts in thesusands of dollars)
13,358,185
26,708,840
14,139,372
5,257,211
1,686
1,976
1,582
2,653
4,336
6,491
5,913
3,787
13,355,535
26,704,903
5,255,006
14,135,534
13,265,282
26,574,842
14,013,017
5,195,244
90,253
130,061
122,517
59,762
11,669,026
961
1,797
11,668,190
11,625,588
42,602
81,765,231
1,065
2,486
81,763,810
81,549,677
214,133
69,544
362,977
1,118,808
2,873,258
2,610,674
5,245,265
2,464,915
18,149,309
86,529
635,156
2,144,643
5,868,741
5,717,309
11,833,480
5,080,507
32,115,508
Other securities—book valu e..........................
Appraised value.................................................
Not criticized...................................................
Substandard.....................................................
10,642,848
10,641,719
10,439,625
202,094
9,650
9,645
9,123
522
82,457
82,403
80,777
1,626
314,739
314,651
309,201
5,450
1,065,127
1,064,820
1,045,645
19,175
1,119,137
1,119,015
1,098,183
20,832
2,089,842
2,089,491
2,048,497
40,994
753,352
753,305
737,188
16,117
5,208,544
5,208,389
5,111,011
97,378
Loans and discounts—book v alu e.................
Appraised value.................................................
Not criticized...................................................
Substandard.....................................................
44,934,475
44,913,063
44,467,867
445,196
95,684
95,315
90,466
4,849
543,124
541,805
519,555
22,250
1,633,543
1,630,105
1,576,962
53,148
4,196,813
4,191,339
4,091,076
100,263
3,766,147
3,762,415
3,696,372
66,043
7,181,913
7,177,340
7,098,765
78,575
3,187,609
3,186,374
3,164,935
21,439
24,329,642
24,328,370
24,229,736
98,634
Fixed and m iscellaneous assets— book value
Appraised value.................................................
Not criticized...................................................
Substandard.....................................................
2,845,175
2,851,481
2,809,740
41,741
2,632
2,651
2,530
121
13,503
13,883
13,548
335
45,478
46,799
45,630
1,169
135,433
137,376
134,297
3,079
144,918
146,122
142,744
3,378
358,340
359,327
348,835
10,492
182,643
183,089
178,043
5,046
1,962,228
1,962,234
1,944,113
18,121
T otal liabilities—book valu e...........................
Total deposits....................................................
Other liabilities—book value............................
Liabilities not on the books..............................
Adjusted total liabilities...................................
143,936,354
141,411,203
2,525,151
3,557
143,939,911
232,637
231,744
893
43
232,680
1,484,290
1,478,932
5,358
175
1,484,465
4,827,502
4,813,570
13,932
308
4,827,810
13,086,412
13,039,732
46,680
663
13,087,075
12,424,259
12,353,928
70,331
255
12,424,514
24,960,650
24,766,605
194,045
629
24,961,279
10,927,564
10,797,355
130,209
100
10,927,664
75,993,040
73,929,337
2,063,703
1,384
75,994,424
T otal capital accoun ts—book valu e.............
Assets not on the books....................................
Examiners’ deductions from total assets........
Liabilities not on the books..............................
Adjusted capital accounts................................
10,862,767
10,464
26,699
3,557
10,842,975
31,402
55
410
43
31,004
152,927
486
1,479
175
151,759
429,709
1,582
3,787
308
427,196
1,052,960
2,653
6,491
663
1,048,459
933,926
1,686
4,336
255
931,021
1,748,190
1,976
5,913
629
1,743,624
741,462
961
1,797
100
740,526
5,772,191
1,065
2,486
1,384
5,769,386
CORPORATION
32,894,750
63,481,873
in s u r a n c e
Cash and due from ba n k s...............................
U. S. G overnm ent obligations— book value
depo sit
All
banks
FEDERAL
Asset, liability, or capital account item
$99.82
7.01
$98.73
11.76
$99.24
9.27
$99.42
8.13
$99.57
7.42
$99.69
6.97
$99.74
6.53
$99.87
6.35
$99.95
7.06
Substandard assets per $100 of—
Appraised value of total assets..................
Adjusted capital accounts..........................
.45
6.35
2.08
17.71
1.48
15.95
1.14
13.99
.87
11.69
.68
9.69
.49
7.46
.37
5.75
.26
3.71
.99
5.09
4.11
3.26
2.39
1.76
1.09
.67
.41
13,374
624
1,958
3,286
4,131
1,769
1,245
177
184
Substandard loans and discounts
$100 of—
Appraised value of loans and discounts.
Number of banks.........................................
per
Back figures: See the Annual Report for 1949, pp. 154-155, and earlier reports.
OF
INSURED
COMMERCIAL
BANKS
245
EXAM IN ERS’ EVALUATION
Adjusted capital accounts per $100 of—
Book capital.................................................
Appraised value of total assets..................
Table 110.
E x a m in 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 i a l B a n k s E x a m in e d in
1950
B AN KS GROUPED B Y FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT AND STATE
(Amounts in thousands of dollars)
Total liabilities
Total assets
Number
of
banks
Appraised value
Book
value
JDxaminers'
deductions
(net) 1
Total
Not
criticized
Sub
standard
Book
value
Adjusted
value
uook
value
13,374 154,799,121
16,235 154,782,886 154,093,855
689,031 143,936,354 143,939,911 10,862,767 10,842,975
7.01
.45
United S ta tes___
13,362 154,603,775
15,549 154,588,226 153,905,909
682,317 143,757,741 143,761,270 10,846,034 10,826,956
7.00
.44
6.30
6.35
686
194,660
187,946
6,714
178,613
178,641
16,733
16,019
8.23
3.45
41.91
FDIC District
District 1.............
District 22............
District 8 .............
District 4 .............
District 5.............
District 6 .............
District 7 .............
District 8 .............
District 9 .............
District 10...........
District 11...........
District 123..........
462
987
1,592
1,025
943
1,437
1,430
1,477
1,078
1,400
1,066
477
7,525,266
39,398,702
18,825,759
8,293,704
5,825,846
8,866,495
12,025,567
15,152,474
4,577,879
6,055,466
9,482,799
18,769,164
1,418
4,021
1,084
2,024
1,141
1,359
78
780
404
1,166
3,552
1,576
7,523,848
39,394,681
18,824,675
8,291,680
5,824,705
8,865,136
12,025,489
15,153,254
4,578,283
6,054,300
9,479,247
18,767,588
7,494,872
39,198,447
18,739,962
8,234,595
5,780,628
8,816,748
11,991,648
15,108,968
4,561,024
6,024,528
9,427,442
18,714,993
28,976
196,234
84,713
57,085
44,077
48,388
33,841
44,286
17,259
29,772
51,805
52,595
6,912,108
36,154,833
17,256,186
7,704,605
5,436,474
8,291,659
11,321,524
14,225,536
4,305,947
5,670,553
8,935,800
17,721,129
6,912,115
36,155,424
17,257,659
7,704,722
5,436,566
8,291,828
11,321,670
14,225,652
4,305,989
5,671,271
8,935,859
17,721,156
613,158
3,243,869
1,569,573
589,099
389,372
574,836
704,043
926,938
271,932
384,913
546,999
1,048,035
611,733
3,239,257
1,567,016
586,958
388,139
573,308
703,819
927,602
272,294
383,029
543,388
1,046,432
8.13
8.22
8.32
7.08
6.66
6.47
5.85
6.12
5.95
6.33
5.73
5.58
.39
.50
.45
.69
.76
.55
.28
.29
.38
.49
.55
.28
4.74
6.06
5.41
9.73
11.36
8.44
4.81
4.77
6.34
7.77
9.53
5.03
State
Alabama..............
Arizona................
Arkansas..............
California............
Colorado..............
225
9
222
187
142
1,294,222
469,471
814,743
14,196,103
1,225,932
482
550
142
1,028
124
1,293,740
468,921
814,601
14,195,075
1,225,808
1,284,440
462,876
810,694
14,164,197
1,220,001
9,300
6,045
3,907
30,878
5,807
1,202,848
446,063
757,935
13,413,308
1,151,895
1,202,868
446,064
757,947
13,413,323
1,152,008
91,374
23,408
56,808
782,795
74,037
90,872
22,857
56,654
781,752
73,800
7.02
4.87
6.95
5.51
6.02
.72
1.29
.48
.22
.47
10.23
26.45
6.90
3.95
7.87
Connecticut.........
Delaware.............
Dist. of Columbia
Florida.................
Georgia................
96
36
19
190
331
1,563,630
552,312
1,161,106
1,985,813
1,746,184
151
268
84
280
299
1,563,479
552,044
1,161,022
1,985,533
1,745,885
1,557,957
543,392
1,157,996
1,972,190
1,734,547
5,522
8,652
3,026
13,343
11,338
1,443,840
500>706
1,088,657
1,865,647
1,622,330
1,443,841
500,766
1,088,657
1,865,659
1,622,371
119,790
51,606
72,449
120,166
123,854
119,638
51,278
72,365
119,874
123,514
7.65
9.29
6.23
6.04
7.07
.35
1.57
.26
.67
.65
4.62
16.87
4.18
11.13
9.18
CORPORATION
195,346
INSURANCE
Possessions..........
12
DEPOSIT
United States and
possessions........
FEDERAL
FDIC district
and State
Substandard assets
Adjusted
per $100 of—
capital
accounts
per $100 of
appraised Appraised Adjusted
Adjusted
capitai
value of
total
value
total
accounts
assets
assets
Total capital
accounts
41
872
474
605
464
436,893
12,833,107
3,276,387
2,319,367
1,547,468
1
63
73
843
325
436,894
12,833,044
3,276,460
2,320,210
1,547,143
435,977
12,805,420
3,265,020
2,303,548
1,538,000
917
27,624
11,440
16,662
9,143
415,016
12,056,146
3,079,064
2,169,390
1,453,644
415,018
12,056,193
3,079,162
2,169,459
1,453,870
21,877
776,961
197,323
149,977
93,824
21,876
776,851
197,298
150,751
93,273
5.01
6.05
6.02
6.50
6.03
.21
.22
.35
.72
.59
4.19
3.56
5.80
11.05
9.80
Kentucky............
Louisiana.............
Maine...................
Maryland............
Massachusetts.. .
362
160
54
160
173
1,600,774
1,845,133
446,563
1,596,331
4,318,410
358
227
230
154
158
1,600,416
1,844,906
446,333
1,596,177
4,318,252
1,591,971
1,835,059
443,632
1,587,326
4,310,418
8,445
9,847
2,701
8,851
7,834
1,481,920
1,744,881
406,900
1,487,308
3,966,833
1,481,967
1,744,903
406,902
1,487,322
3,966,835
118,854
100,252
39,663
109,023
351,577
118,449
100,003
39,431
108,855
351,417
7.40
5.42
8.83
6.82
8.14
.53
.53
.61
.55
.18
7.13
9.85
6.85
8.13
2.23
Michigan.............
Minnesota...........
Mississippi...........
Missouri...............
Montana..............
414
656
197
565
111
5,593,346
3,005,918
799,627
4,430,734
584,926
383
316
80
492
67
5,592,963
3,006,234
799,547
4,430,242
584,869
5,580,190
2,995,911
789,451
4,407,924
581,387
12,773
10,323
10,096
22,318
3,482
5,284,169
2,815,306
745,649
4,162,316
558,934
5,284,188
2,815,331
745,668
4,162,384
558,937
309,177
190,612
53,978
268,418
25,992
308,775
190,903
53,879
267,858
25,932
5.52
6.35
6.74
6.05
4.43
.23
.34
1.26
.50
.60
4.14
5.41
18.74
8.33
13.43
Nebraska.............
Nevada................
New Hampshire..
New Jersey..........
New M exico........
366
8
58
320
50
1,313,207
183,893
236,604
4,901,057
335,356
24
14
268
699
298
1,313,183
183,879
236,336
4,900,358
335,058
1,308,650
182,819
233,794
4,855,212
332,224
4,533
1,060
2,542
45,146
2,834
1,232,275
173,427
212,385
4,574,540
317,311
1,232,422
173,428
212,385
4,574,726
317,313
80,932
10,466
24,219
326,517
18,045
80,761
10,451
23,951
325,632
17,745
6.15
5.68
10.13
6.65
5.30
.35
.58
1.08
.92
.85
5.61
10.14
10.61
13.86
15.97
New Y ork............
North Carolina. .
North D ak ota...
Ohio......................
Oklahoma............
624
226
145
641
375
33,798,127
1,799,121
475,142
7,747,328
1,708,810
2,411
450
44
447
598
33,795,716
1,798,671
475,186
7,746,881
1,708,212
33,658,889
1,781,998
473,957
7,727,138
1,699,048
136,827
16,673
1,229
19,743
9,164
30,946,795
1,671,294
449,216
7,266,474
1,588,239
30,947,112
1,671,354
449,219
7,266,511
1,588,446
2,851,332
127,827
25,926
480,854
120,571
2,848,604
127,317
25,967
480,370
119,766
8.43
7.08
5.46
6.20
7.01
.40
.93
.26
.25
.54
4.80
13.10
4.73
4.11
7.65
Oregon.................
Pennsylvania. . . .
Rhode Island. . . .
South Carolina. . .
South Dakota. . . .
68
951
12
133
166
1,375,955
11,078,431
689,237
683,612
511,893
54
637
40
71
101
1,375,901
11,077,794
689,197
683,541
511,994
1,368,409
11,012,824
687,103
680,293
509,769
7,492
64,970
2,094
3,248
2,225
1,293,994
9,989,712
639,288
639,982
482,491
1,293,996
9,991,148
639,288
639,995
482,502
81,961
1,088,719
49,949
43,630
29,402
81,905
1,086,646
49,909
43,546
29,492
5.95
9.81
7.24
6.37
5.76
.54
.59
.30
.48
.43
9.15
5.98
4.20
7.46
7.54
Tennessee............
Texas....................
Utah.....................
Vermont..............
Virginia................
288
847
55
69
311
2,020,244
6,832,839
591,962
270,822
2,039,935
367
2,477
195
571
890
2,019,877
6,830,362
591,767
270,251
2,039,045
2,006,159
6,797,283
588,230
261,968
2,021,730
13,718
33,079
3,537
8,283
17,315
1,889,488
6,427,545
555,294
242,862
1,885,992
1,889,530
6,427,579
555,296
242,864
1,886,007
130,756
405,294
36,668
27,960
153,943
130,347
402,783
36,471
27,387
153,038
6.45
5.90
6.16
10.13
7.51
.68
.48
.60
3.06
.85
10.52
8.21
9.70
30.24
11.31
COMMERCIAL
Washington.........
West Virginia.. . .
Wisconsin............
W yoming.............
113
176
542
53
1,936,218
1,013,599
3,155,834
260,049
243
375
232
95
1,935,975
1,013,224
3,156,066
259,954
1,928,369
1,005,252
3,146,438
258,829
7,606
7,972
9,628
1,125
1,824,269
931,372
2,958,291
244,500
1,824,274
931,387
2,958,320
244,525
111,949
82,227
197,543
15,549
111,701
81,837
197,746
15,429
5.77
8.08
6.27
5.94
.39
.79
.31
.43
6.81
9.74
4.87
7.29
BANKS
INSURED
247
OF
* Examiners deductions (net) is net of assets not on the books. Figures in italics represent excess of appraised value of assets over book value.
i Includes 7 banks m Puerto Rico not members of the Federal Reserve System.
* Includes 3 national banks and 1 State bank in Alaska, and 1 State bank in Hawaii, not members of the Federal Reserve System.
EXAM IN ERS’ EVALUATION
Idaho....................
Illinois..................
Indiana................
Iowa.....................
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
I nsu red B an k s
Table 111. Earnings, expenses, and dividends of insured commercial banks, 1942-1950
Table 112. Ratios of earnings, expenses, and dividends of insured commercial banks, 1942-1950
Table 113. Earnings, expenses, and dividends of insured commercial banks, 1950
By class of bank
Table 114. Ratios of earnings, expenses, and dividends of insured commercial banks, 1950
By class of bank
Table 115. Earnings, expenses, and dividends of insured commercial banks operating through
out 1950
Banks grouped according to amount of deposits
Table 116. Ratios of earnings, expenses, and dividends of insured commercial banks operating
throughout 1950
Banks grouped according to amount of deposits
Table 117. Earnings, expenses, and dividends of insured commercial banks, by State, 1950
Table 118. Earnings, expenses, and dividends of insured mutual savings banks, 1942-1950
Table 119. Ratios of earnings, expenses, and dividends of insured mutual savings banks,
1942-1950
State banks members of the Federal Reserve Sj^stem: Board of
Governors of the Federal Reserve System.
BANKS
Other insured banks: Federal Deposit Insurance Corporation.
INSURED
249
National banks, and State banks not members of the Federal Reserve
System in the District of Columbia: Office of the Comptroller of the
Currency.
OF
Averages of assets and liabilities shown in Tables 111-114 and 117-
S ou rce s o f d a ta
DIVIDENDS
Assets and liabilities shown in Table 115, and utilized for computation
of ratios shown in Table 116, 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
30, 1950, and for other banks, are averages of beginning, middle, and
end of the year.
AND
On December 8, 1947, the Commissioner of Internal Revenue issued
Comm. Mimeograph Coll. No. 6209 entitled, “ Reserve Method of
Accounting for Bad Debts in the Case of Banks.” (See pp. 82-84 in
the 1947 Annual Report). Under this ruling, banks are permitted to
accumulate limited amounts of tax-free reserves for bad debt losses on
loans. As a result, since 1947 unusually large amounts were set aside
from income to valuation reserves, and net profits were decreased
accordingly. The uniform report of earnings and dividends for the
calendar year 1948 was revised to show separately for the first time
charge-offs and transfers to valuation reserves as well as recoveries
and transfers from valuation reserves. Also, the actual recoveries and
losses that are credited and charged to valuation reserves were reported
as memoranda items.
EXPENSES,
119 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 vear.
EARNINGS,
Reports of earnings, expenses, and dividends are submitted to the
Federal supervisory agencies on either a cash or an accrual basis.
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.
Table 111.
E
a r n in g s ,
xpen ses, and
1942
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 ,
(Amounts in thousands of dollars)
1943
1944
1945
1946
1947
1942-1950
250
Earnings or expense item
E
1948
1949
1950
1,090,253
680,708
17,320
107,375
2,482,278
( 1,132,977
\
167,198
707,738
18,860
109,789
2,862,875
1,218,517
176,620
936,554
14,564
124,696
3,097,670
1,079,535
179,408
1,263,788
18,386
147,761
3,403,586
1,008,138
189,559
1,577,633
22,315
173,791
3,606,879
1,013,515
201,691
1,733,690
26,090
194,013
3,930,696
1,015,456
225,425
1,976,100
31,724
212,272
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
97,456
156,678
178,016
95,420
160,430
182,030
104,602
180,674
184,445
C urrent operating expenses— t o ta l...............
Salaries— officers................................................
Salaries and wages—employees.......................
Fees paid to directors and members of execu
tive, 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....................
1,222,157
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
2,163,514
381,756
662,696
2,283,727
410,685
700,065
2,444,534
446,043
755,681
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
20,859
316,570
3,432
106,163
22,608
328,010
3,582
113,569
24,745
343,040
4,296
128,101
39,917
346,045
40,008
357,825
41,845
390,036
40,329
442,488
40,850
506,617
42,276
569,000
48,271
623,767
53,988
651,219
59,469
683,159
Net current operating earnin gs.....................
568,535
703,456
858,225
959,500
1,100,241
1,115,883
1,240,072
1,323,153
1,486,164
Recoveries, transfers from reserve accoun ts,
and profits— to ta l.......................................
On securities:
222,775
353,015
361,726
509,329
408,608
262,042
266,439
213,187
245,461
(
45,360 {
100,189
29,221
24,161
60,025
16,412
26,672
73,196
14,718
38,639
90,469
39,748
48,934
64,350
23,142
28,220
45,546
28,506
29,971
43,157
Transfers from reserve accounts.................. }
Profits on securities sold or redeemed.........
On loans:
Recoveries.......................................................
Transfers from reserve accounts.................. }
All other.............................................................
Losses, charge-offs, and transfers to reserve
accoun ts—t o ta l...........................................
On securities:
Losses and charge-offs...................................
Transfers to reserve accounts...................... }
On loans:
Losses and charge-offs...................................
Transfers to reserve accounts...................... }
All other.............................................................
55,947
66,457
91,891
103,143
92,778
129,834
122,364
266,764
59,515
208,700
68,546
31,825
85,664
72,317
84,224
54,890
67,014
53,187
74,499
65,894
271,118
290,645
265,881
264,122
283,175
294,286
485,753
379,824
366,932
78,590
40,941
38,671
33,044
38,721
54,518
32,393
278,666
55,163
29,064
221,167
57,878
23,030
191,248
59,414
(
67,687 X
48,806
120,614
116,383
110,439
132,870
132,254
/
118,498 \
80,647
69,857
75,223
99,039
70,090
85,352
55,901
75,351
71,253
79,668
f
120,370 (
55,418
CORPORATION
2,214,905
861,412
692,305
13,513
95,332
INSURANCE
1,959,481
610,298
804,717
12,084
84,309
DEPOSIT
1,790,692
FEDERAL
C urrent operating earnings— t o ta l...............
Interest on U. S. Government obligations. . .
Interest and dividends on other securities---- }
Interest and discount on loans........................
Service charges and 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....................
1,204,707
1,225,674
1,083,639
1,020,758
1,156,514
1,364,690
202,821
187,032
15,789
298,795
277,538
21,257
323,328
301,048
22,280
302,242
283,046
19,196
275,422
258,490
16,932
325,148
304,572
20,576
427,776
402,582
25,194
Net profits after income taxes........................
440,651
637,961
751,249
905,912
902,346
781,397
745,336
831,364
936,915
Dividends and interest on capital— to ta l.. .
Dividends declared on preferred stock and
interest on capital notes and debentures...
Cash dividends declared on common stock ...
227,608
233,490
253,193
274,438
298,983
315,215
331,833
354,144
391,249
14,523
213,085
14,324
219,166
13,645
239,548
11,769
262,669
8,345
290,638
5,981
309,234
5,230
326,603
5,093
349,052
4,333
386,916
Net additions to capital from profits...........
213,043
404,471
498,056
631,474
603,363
466,182
413,503
477,220
545,666
Memoranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.......................................................
On loans.............................................................
Losses charged to reserve accounts (not included
in losses above):
On securities.......................................................
On loans..............................................................
8
8
0)
0)
0)
C1)
(»)
(l)
0)
(0
C1)
7,224
10,844
2,600
19,645
3,565
20,385
(!)
(!)
0)
C1)
(*)
18,031
46,487
6,104
72,978
6,324
56,250
DIVIDENDS
954,070
127,865
114,316
13,549
AND
765,826
79,541
(0
0)
EXPENSES,
520,192
Taxes on net income— total............................
Federal................................................................
State....................................................................
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
150,726,513
36,247,026
64,291,298
8,872,676
39,650,962
1,664,551
151,566,078
35,683,829
63,080,739
9,387,984
41,670,879
1,742,647
158,986,894
36,006,423
63,846,830
11,043,342
46,250,272
1,840,027
L iabilities and capital— t o t a l.........................
Total deposits....................................................
Demand deposits.............................................
Time and savings deposits..............................
Borrowings and other liabilities......................
Total capital accounts......................................
83,666,451
76,134,514
60,2^5,967
15,888,54-7
580,544
6,951,393
103,370,189
95,506,221
77,878,606
17,627,615
617,535
7,246,433
123,168,863 145,217,438
114,682,390 135,948,387
93,267,11U 108,968,917
21,^15,276
26,979,1+70
768,280
934,381
7,718,193
8,334,670
151,896,770
141,829,678
109,890,600
31,939,078
1,057,079
9,010,013
148,170,261 150,726,513
137,537,907 139,517,461
103,159,25A 101+,195,063
31+,378,653
35,322,398
1,104,386
1,257,852
9,527,968
9,951,200
151,566,078
139,764,394
103,862,159
35,902,235
1,380,578
10,421,106
158,986,894
146,269,294
109,822,638
36,1+1+6,656
1,710,204
11,007,396
Number of active officers, December 31............
Number of other employees, December 31........
54,925
216,473
55,309
225,647
56,494
229,377
59,119
245,275
62,697
271,395
65,740
284,072
67,609
292,015
69,439
296,308
71,566
312,324
Number of banks, December 31.........................
13,347
13,274
13,268
13,302
13,359
13,403
13,419
13,436
13,446
Note: Due to rounding, earnings data of State banks for 1949 and 1950 may not add precisely to the indicated totals.
1 N ot available.
2 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures: See the Annual Report for 1941, pp. 158-159.
fcO
£2
BANKS
103,370,189
26,774,094
50,315,698
6,321,794
18,380,838
1,577,765
INSURED
83,666,451
25,922,701
29,231,826
6,802,771
20,030,625
1,678,528
OF
Average assets and liabilities2
Assets— to ta l........................................................
Cash and due from banks................................
United States Government obligations..........
Other securities..................................................
Loans and discounts..........................................
All other assets..................................................
EARNINGS,
Net profits before income taxes.....................
R
a t io s
of
Earnings or expense item
a r n in g s ,
E xpen ses,
D
iv id e n d s
1944
1943
1942
and
of
1946
1945
1942-1950
I n s u r e d C o m m e r c ia l B a n k s ,
1947
1949
1948
1950
(
49.22 j
31.52
4.85
$100.00
45.64
6.74
29.27
4.42
$100.00
42.56
6.17
33.22
4.36
$100.00
34.85
5.79
41.39
4.77
$100.00
29.62
5.57
47.01
5.11
$100.00
28.10
5.59
48.79
5.38
$100.00
25.83
5.74
51.08
5.40
3.08
12.52
3.45
11.70
3.54
10.87
3.65
10.28
3.42
10.27
3.14
10.06
2.86
9.83
2.65
9.49
2.66
9.29
C urrent operating expenses— t o ta l...............
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....................
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
63.57
31.30
9.30
3.12
63.32
31.42
9.10
3.15
62.19
31.20
8.73
3.26
2.23
19.34
2.04
18.29
1.89
17.66
1.62
17.93
1.43
17.78
1.36
18.46
1.42
18.43
1.50
18.15
1.51
17.49
Net cu rren t operating earnin gs.....................
31.75
35.90
38.75
38.65
38.43
36.02
36.43
36.68
37.81
2.14
1.46
.68
1.90
1.22
.68
1.80
1.10
.70
1.71
1.05
.66
1.88
1.16
.72
2.09
1.34
.75
2.26
1.44
.82
2.38
1.51
.87
2.47
1.54
.93
.26
.34
.29
.35
.27
.18
.18
.14
.16
.32
.62
.53
.28
.74
.62
.22
.77
.61
.18
.83
.62
.18
.81
.59
.20
.73
.53
.32
.68
.49
.25
.76
.55
.23
.86
.59
8.18
9.71
11.12
11.51
12.21
11.71
12.46
12.70
13.50
4.87
4.69
6.11
4.53
2.75
2.68
2.04
2.23
4.01
10.57
1.75
8.82
3.23
5.59
3.45
12.36
2.63
9.73
3.28
6.45
3.16
14.46
3.59
10.87
3.29
7.58
3.14
13.60
3.59
10.01
3.32
6.69
3.09
11.37
3.17
8.20
3.31
4.89
4.88
10.26
2.77
7.49
3.33
4.16
3.64
11.10
3.12
7.98
3.40
4.58
3.33
12.40
3.89
8.51
3.55
4.96
Service charges on deposit accounts................
Other service charges, commissions, fees, and
collection and exchange charges..................
Other current operating earnings....................
A m ou n ts per $100 o f to ta l assets1
Current operating earnings— total......................
Current operating expenses— total......................
Net current operating earnings............................
Recoveries, transfers from reserve accounts,
and profits—total..............................................
Losses, charge-offs, and transfers to reserve acNet profits before income taxes...........................
Net profits after income taxes.............................
A m ou n ts per $100 o f total capital
a cco u n ts1
Net current operating earnings............................
Recoveries, transfers from reserve accounts,
and profits—total
................................
Losses, charge-offs, and transfers to reserve
accounts— total..................................................
Net profits before income taxes...........................
Net profits after income taxes.............................
Cash dividends declared.......................................
Net additions to capital from profits..................
3.20
3.90
7.48
1.14
6.34
3.28
3.06
CORPORATION
$100.00
43.96
36.02
4.87
INSURANCE
$100.00
34.08
45.61
4.71
DEPOSIT
$100.00
FEDERAL
A m ou n ts per $100 o f cu rren t operatin g
earnings
Current operatin g earnings— t o ta l...............
Interest on U. S. Government obligations. . .
Interest and dividends on other securities---- }
E
252
Table 112.
4.08
1.69
.14
3.85
1.52
.12
3.44
1.49
.12
3.09
1.46
.10
3.43
1.56
.11
3.79
1.60
.14
4.04
1.64
.17
4.22
1.68
.19
4.34
1.66
.19
.93
.87
.87
.84
.87
.90
.91
.94
100.00
30.98
34.94
8.13
23.94
2.01
100.00
25.91
48.70
6.11
17.75
1.53
100.00
22.77
54.59
4.94
16.49
1.21
100.00
21.51
56.76
4.56
16.18
.99
100.00
21.91
53.88
4.98
18.28
.95
100.00
23.14
47.40
5.61
22.85
1.00
100.00
24.05
42.65
5.89
26.31
1.10
100.00
23.55
41.62
6.19
27.49
1.15
100.00
22.65
40.16
6.94
29.09
1.16
L iabilities and capital— t o ta l..........................
Total deposits.....................................................
100.00
93.11
100.00
93.62
100.00
93.37
100.00
92.82
100.00
92.56
100.00
92.21
100.00
92.00
72.01
18.99
75.39
17.00
75.72
17.39
Borrowings and other liabilities......................
Total capital accounts......................................
75.0k
18.58
72.SU
21.08
69.62
23.20
.69
8.31
.60
7.01
.62
6.27
.64
5.74
68.52
23.69
.84
6.60
.91
6.88
69.08
22.92
.70
5.93
.75
6.43
69.13
2 3 .US
Number of banks, December 31..........................
13,347
13,274
13,268
13,302
13,359
13,403
13,419
13,436
13,446
i Asset and liability items are averages of figures reported at beginning, middle, and end of year.
OF
INSURED
BANKS
253
1.08
6.92
DIVIDENDS
100.00
92.39
AND
100.00
91.00
D em and d ep osits......................................................
T im e and savings d ep osits....................................
EXPEN SES,
1.10
Assets and liabilities per $100 o f total
assets1
Assets— t o t a l........................................................
Cash and due from banks................................
United States Government obligations..........
Other securities..................................................
Loans and discounts..........................................
All other assets...................................................
EARNINGS,
Special ra tio s1
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...............................................................
254
Table 113.
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s ,
1950
BY CLASS OF BANK
(Amounts in thousands of dollars)
Members F,. R. System
Total
National
Current operating expenses— t o ta l................................................................
Fees paid to directors and members of executive, discount, and other
Recurring depreciation on banking house, furniture and fixtures...............
Recoveries, transfers from reserve accoun ts, and profits—to ta l..........
On securities:
Profits on securities sold or redeemed............................................
On loans:
Transfers from reserve accounts..................................................................
3,930,696
1,015,456
225,425
1,976,100
31,724
212,272
2,185,946
588,733
132,093
1,099,861
17,749
119,216
1,078,236
276,061
58,049
507,919
8,317
53,273
666,514
150,662
35,283
368,320
5,658
39,783
3,912,166
1,011,315
224,239
1,969,519
31,608
211,444
18,530
4,141
1,186
6,581
116
828
104,602
180,674
184,445
45,492
70,078
112,724
25,255
100,439
48,924
33,855
10,157
22,797
104,187
176,717
183,137
415
3,957
1,308
2,444,534
446,043
755,681
1,332,609
229,596
420,115
686,715
115,122
234,998
425,210
101,325
100,568
2,431,565
443,494
751,946
12,969
2,549
3,735
24,745
343,040
4,296
128,101
59,469
683,159
11,760
189,458
1,747
74,265
33,467
372,201
5,687
81,316
2,148
34,577
14,546
198,322
7,298
72,266
401
19,259
11,456
112,636
24,622
341,740
4,292
127,589
59,238
678,643
123
1,300
4
512
231
4,516
1,486,164
853,337
391,521
241,306
1,480,602
5,562
245,461
153,514
65,056
26,891
241,739
3,722
14,718
38,639
90,469
9,670
28,999
60,920
3,118
7,800
21,228
1,930
1,840
8,321
14,109
37,682
89,645
609
957
824
28,506
29,971
43,157
15,220
13,333
25,372
7,328
13,627
11,955
5,958
3,011
5,830
28,369
29,701
42,230
137
270
927
CORPORATION
Interest on time and savings deposits.............................................................
Interest and discount on borrowed money.....................................................
Operating
less than
full year1
INSURANCE
Other service charges, commissions, fees, and collection and exchange
charges.......................................*..................................................................
Operating
throughout
the year
DEPOSIT
C urrent operating earnings— t o ta l...............................................................
Interest on United States Government obligations.......................................
Interest and dividends on other securities......................................................
Interest and discount on loans.........................................................................
State
Not
members
F. R.
System
FEDERAL
Earnings or expense item
364,815
2,117
6,098
3,585
38,205
54,475
516
43
23,030
191,248
59,414
10,842
109,094
30,345
3,426
57,174
19,194
8,762
24,980
9,875
22,865
190,879
58,391
165
369
1,023
N et profits before in com e taxes.....................................................................
1,364,690
791,205
358,591
214,894
1,357,525
7,165
Taxes on net in com e— t o ta l............................................................................
Federal...........................................................................................
427,776
402,582
25,194
254,641
241,100
13,541
114,419
105,809
8,610
58,716
55,673
3,043
425,958
400,869
25,089
1,818
1,713
105
Net profits after in com e taxes........................................................................
936,915
536,564
244,172
156,179
931,567
5,348
Dividends and interest on capital— to ta l...................................................
Dividends declared on preferred stock and interest on capital notes and
debentures..................................................................................................
Cash dividends declared on common stock...................................................
391,249
228,991
116,531
45,727
389,962
1,287
4,333
386,916
709
228,282
2,126
114,405
1,498
44,229
4,320
385,644
13
1,272
Net additions to capital from p rofits.......................................................
545,666
307,573
127,641
110,452
541,605
4,061
M em oranda
Recoveries credited to reserve accounts (not included in recoveries above):
On securities.....................................................................................................
On loans..............................................................................................
Losses charged to reserve accounts (not included in losses above):
On securities............................................................................
On loans.........................................................................................
3,565
20,385
1,839
12,962
1,197
4,054
529
3,369
3,565
20,237
148
6,324
56,250
2,815
33,543
2,993
12,786
516
9,921
6,324
56,050
200
158,986,894
36,006,423
63,846,830
11,043,342
46,250,272
1,840,027
92,219,693
21,557,337
37,098,448
6,611,148
25,875,572
1,077,188
45,373,169
10,514,449
17,893,067
2,753,418
13,651,281
560,954
21,394,032
3,934,637
8,855,315
1,678,776
6,723,419
201,885
Liabilities and capital—t o ta l.........................................................................
Total deposits....................................................................................................
158,986,894
146,269,294
92,219,693
84,941,214
45,373,169
41,602,291
21,394,032
19,725,789
D em an d d ep osits...............................................................................................................
T im e and savings d ep osits.............................................................................................
10 9 ,822 ,63 8
S 6 ,U 6 ,6 5 6
64,850,449
20,0 9 0 ,7 6 5
32 ,099,662
9,502,629
12,872,527
6,853,262
1,710,204
11,007,396
1,140,553
6,137,926
446,448
3,324,430
123,203
1,545,040
71,566
312,324
34,263
172,089
14,693
91,539
22,610
48,696
71,225
311,211
341
1,113
13,446
4,958
1,912
6,576
13,370
76
Average assets and liabilities2
Assets—to ta l........................................................................................................
Cash and due from banks................................................................................
United States Government obligations..........................................................
Other securities..................................................................................................
Loans and discounts.........................................................................................
All other assets..................................................................................................
Number of banks, December 30............................................................
255
N ote: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.
1 Includes banks operating less than full year and trust companies not engaged in deposit banking.
2 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures: See Table 111, p. 250. See also the Annual Report for 1949, pp. 160-165, and earlier reports.
BANKS
Number of active officers, December 30............................................................
Number of other employees, December 30........................................................
INSURED
Borrowings and other liabilities......................................................................
Total capital accounts....................................................................................
OF
53,301
8,618
9,573
DIVIDENDS
97,985
24,005
41,360
AND
215,646
38,721
54,518
EXPENSES,
366,932
EARNINGS,
Losses, charge-offs, and transfers to reserve accounts— to ta l..............
On securities:
Losses and charge-offs..................................................................................
Transfers to reserve accounts................................................... ..................
On loans:
Losses and charge-offs...................................................................................
Transfers to reserve accounts....................................................................
All other....................................................................................
256
Table 114.
R a t io s o f E a r n in g s , E x p e n se s, an 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,
1950
B Y CLASS OF BANK
Members F. R. System
Not
members
F. R.
System
Total
National
State
$100.00
25.83
5.74
51.08
5.40
2.66
9.29
$100.00
26.93
6.04
51.13
5.46
2.08
8.36
$100.00
25.61
5.38
47.88
4.94
2.34
13.85
$100.00
22.60
5.29
56.11
5.97
5.08
4.95
Current operating expenses— to ta l........................................................................................................
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.............................................................................................................
62.19
31.20
8.73
3.26
1.51
17.49
60.96
30.26
8.67
3.40
1.53
17.10
63.69
33.00
7.54
3.21
1.35
18.59
63.80
31.39
10.84
2.89
1.72
16.96
Net current operating earn in gs..............................................................................................................
37.81
39.04
36.31
36.20
INSURANCE
A m ou nts per $100 o f total assets1
Current operating earnings— total. .............................................................................................................
Current operating expenses— total...............................................................................................................
Net current operating earnings....................................................................................................................
Recoveries, transfers from reserve accounts, and profits— total..............................................................
Losses, charge-offs, and transfers to reserve accounts—total..................................................................
Net profits before income taxes..................................................................................................................
Net profits after income taxes......................................................................................................................
2.47
1.54
.93
.16
.23
.86
.59
2.37
1.45
.92
.17
.23
.86
.58
2.37
1.51
.86
.14
.21
.79
.54
3.12
1.99
1.13
.12
.25
1.00
.73
M em oranda
Recoveries credited to reserve accounts (not included in recoveries above):
On securit.ips........................................................., .....................................................................................
On loans. . ..................................................................................................................................................
Losses charged to reserve accounts (not included in losses above):
On securities...............................................................................................................................................
On loans......................................................................................................................................................
(2)
.01
(2)
.01
(2)
,01
(2)
.02
(*)
.04
(2)
.04
.01
.03
(2)
.05
CORPORATION
A m ou nts per $100 o f current operating earnings
C urrent operating earnings— to ta l........................................................................................................
Interest on United States Government obligations...............................................................................
Interest and dividends on other securities..............................................................................................
Income on loans........................................................................................................................................
Service charges on deposit accounts........................................................................................................
Other service charges, commissions, fees, and collection and exchange charges................................
Other current operating earnings.............................................................................................................
DEPOSIT
FEDERAL
Earnings or expense item
13.50
2.23
3.33
12.40
3.89
8.51
3.55
4.96
13.90
2.50
3.51
12.89
4.15
8.74
3.73
5.01
11.78
1.96
2.95
10.79
3.44
7.35
3.51
3.84
15.62
1.74
3.45
13.91
3.80
10.11
2.96
7.15
.03
.19
.03
.21
.04
.12
.03
.22
.06
.51
.05
.55
.09
.38
.03
.64
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.................................................................................
4.34
1.66
.19
.94
4.32
1.65
.18
.94
3.78
1.62
.17
.86
5.56
1.77
.31
1.05
Assets and liabilities per $100 of total assets1
Assets—total................................................................................................................................................
Cash and due from banks.........................................................................................................................
United States Government obligations...................................................................................................
Other securities..........................................................................................................................................
Loans and discounts..................................................................................................................................
All other assets...........................................................................................................................................
100.00
22.65
40.16
6.94
29.09
1.16
100.00
23.37
40.23
7.17
28.06
1.17
100.00
23.17
39.43
6.07
30.09
1.24
100.00
18.39
41.39
7.85
31.43
.94
Liabilities and capital— total..................................................................................................................
Total deposits......................................................................................................................
100.00
92.00
100.00
92.11
100.00
91.69
100.00
92.20
OF
69.08
22.92
70.32
21.79
70.75
20.94
1.08
6.92
60.17
32.03
1.24
6.65
.93
7.33
.58
7.22
13,446
4,958
1,912
6,576
Number of banks, December 30..................................................................................................................
257
BANKS
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
2 Less than .005
Back figures: See Table 112, p. 252. See also the Annual Report for 1949, pp. 166-167, and earlier reports.
INSURED
Borrowings and other liabilities...............................................................................................................
Total capital accounts...............................................................................................................................
AND
Dem and d ep osits................................................................................................................................................................
T im e and savings deposits..............................................................................................................................................
EXPEN SES,
Memoranda
Recoveries credited to reserve accounts (not included in recoveries above):
On securities...............................................................................................................................................
On loans......................................................................................................................................................
Losses charged to reserve accounts (not included in losses above):
On securities...............................................................................................................................................
On loans......................................................................................................................................................
DIVIDENDS
EARN INGS,
Amounts per $100 of total capital accounts*
Net current operating earnings....................................................................................................................
Recoveries, transfers from reserve accounts, and profits—total..............................................................
Losses, charge-offs, and transfers to reserve accounts—total..................................................................
Net profits before income taxes...................................................................................................................
Taxes on net income......................................................................................................................................
Net profits after income taxes......................................................................................................................
Cash dividends declared................................................................................................................................
Net additions to capital from profits..........................................................................................................
Table 115.
E
a r n in g s ,
E
xpenses,
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
1950
B A N K S GRO UPED ACCORDING TO AM O U N T OF D EPOSITS
258
Banks with deposits of— 2
Earnings or expense item
All
banks1
$500,000
or
less
$500,000
to
$1,000,000
$1,000,000
to
$2,000,000
$2 ,000,000
to
$5,000,000
288,169
73,101
13,824
143,275
2,534
17,229
1,875,935
498,887
114,274
891,657
17,671
78,695
11,851
4,085
11,756
19,220
22,756
35,220
6,977
14,108
17,123
36,115
134,118
104,519
250,829
68,151
51,850
238,725
52,141
60,000
489,574
86,487
143,912
187,565
29,952
61,485
1,133,416
160,467
414,148
DEPOSIT
2,464
13,992
79
4,553
6,021
41,895
184
12,522
4,164
40,977
125
12,008
5,393
77,881
427
25,116
1,357
23,557
233
9,467
4,297
139,333
3,204
62,207
731
8,067
2,493
23,860
7,612
62,595
7,340
61,969
14,312
136,046
5,406
56,108
21,233
328,527
2,832
18,845
60,347
152,880
138,270
264,305
100,605
742,519
241,739
266
1,563
4,661
11,957
13,167
34,860
13,171
162,094
14,109
37,682
89,645
5
1
48
73
24
200
416
117
680
1,225
464
2,648
1,946
615
3,523
2,814
2,531
12,106
910
530
5,821
6,721
33,400
64,619
28,369
29,701
42,230
164
8
41
888
89
287
2,189
231
1,028
3,980
1,036
2,603
3,100
1,265
2,717
5,712
3,419
8,279
2,395
1,286
2,230
9,943
22,366
25,045
364,815
548
3,371
10,456
28,977
30,577
63,933
25,662
201,291
38,205
54,475
46
2
296
55
1,170
331
3,862
706
4,679
1,280
8,211
3,659
3,978
995
15,961
47,448
22,865
190,879
58,391
348
89
64
1,591
916
514
3,825
3,439
1,692
6,181
13,168
5,059
3,387
15,708
5,521
3,642
36,242
12,179
1,316
15,656
3.718
2,575
105,663
29,644
8,194
1,351
264
5,220
83
389
50,029
10,878
1,768
29,935
295
2,608
104,187
176,717
183,137
718
3
168
3,639
15
891
9,040
149
3,277
16,627
1,484
10,183
Current operating expenses— t o 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..................................
2,431,565
443,494
751,946
5,363
2,303
663
31,184
12,182
4,231
94,909
31,811
15,658
24,622
341,740
4,292
127,589
119
424
5
269
807
3,684
35
1,448
59,238
678,643
111
1,470
Net current operating earnings...................................
1,480,602
Losses, charge-offs, and transfers to reserve a c
coun ts— to ta l.............................................................
On securities:
Losses and charge-offs.................................................
Transfers to reserve accounts....................................
On loans:
Losses and charge-offs................................................
Transfers to reserve accounts....................................
Ail other...........................................................................
CORPORATION
3,912,166
1,011,315
224,239
1,969,519
31,608
211,444
INSURANCE
753,877
195,101
42,924
379,757
5,673
53,230
FEDERAL
(Amounts in thousandsi of dollars)
376,995
403,709
155,256
94,911
36,884
100,203
22,196
6,894
22,097
203,099
226,714
89,863
2,610
666
2,077
26,486
8,484
24,324
C urrent operating earnings— t o ta l.............................
Interest on United States Government obligations.. .
Interest and dividends on other securities...................
Interest and discount on loans......................................
Service charges and 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..................................
Recoveries, transfers from reserve accounts, and
profits—to ta l.............................................................
On securities:
Recoveries....................................................................
Transfers from reserve accounts................................
Profits on securities sold or redeemed......................
On loans:
Recoveries....................................................................
Transfers from reserve accounts................................
All other...........................................................................
$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
1,357,525
2,549
17,036
54,552
135,861
120,861
235,231
88,114
703,322
425,958
400,869
25,089
522
483
38
3,465
3,224
241
11,447
10,719
729
33,740
32,165
1,575
35,726
34,359
1,368
73,190
70,318
2,873
29,072
27,834
1,238
238,797
221,771
17,026
Net profits after in com e taxes.....................................
931,567
2,029
13,571
43,105
102,121
85,135
162,041
59,043
464,525
Dividends and interest on capital— t o ta l.................
Dividends declared on preferred stock and interest on
capital notes and debentures.....................................
Cash dividends declared on common stock.................
389,962
643
3,936
12,217
30,510
26,495
55,019
21,574
239,570
4,320
385,644
12
631
60
3,875
137
12,080
372
30,138
555
25,941
1,038
53,981
859
20,715
1,287
238,283
Net additions to capital fro m p rofits........................
541,605
1,386
9,636
30,888
71,610
58,639
107,023
37,469
224,955
M em oranda
Recoveries credited to reserve accounts (not included in
recoveries above):
On securities....................................................................
On loans...........................................................................
Losses charged to reserve accounts (not included in
losses above):
On securities....................................................................
On loans...........................................................................
3,565
20,237
1
24
1
150
18
484
52
2,059
70
2,204
617
4,060
154
1,427
2,653
9,829
6,324
56,050
2
53
17
425
59
1,547
87
5,241
116
6,194
775
10,954
134
4,300
5,134
27,337
AND
Average assets and liabilities3
Assets— t o t a l..................................................................... 165,765,708
Cash and due from banks.............................................. 39,398,895
United States Government obligations........................ 61,097,487
Other securities............................................................... 12,010,300
Loans and discounts....................................................... 51,349,902
All other assets................................................................
1,909,124
220,194
60,789
73,616
9,024
75,079
1,686
1,511,028
351,043
591,086
75,742
484,479
8,678
5,043,086
1,125,103
2,034,148
300,318
1,551,320
32,197
14,101,155
3,059,271
5,679,074
1,072,546
4,182,413
107,851
13,695,963
2,878,682
5,576,355
1,187,493
3,931,846
121,587
29,021,723
6,280,528
11,782,165
2,373,245
8,253,560
332,225
12,034,538
2,871,231
4,634,451
830,314
3,543,287
155,255
90,138,021
22,772,248
30,726,592
6,161,618
29,327,918
1,149,645
DIVIDENDS
5,043,086
4,621,965
14,101,155
13,032,104
13,695,963
12,705,787
29,021,723
26,988,463
12,034,538
11,225,071
90,138,021
82,428,352
1,010,558
830,019
8,331,179
1,290,786
8,956,652
U,075,U52
8,U87,725
U,268,062
18,855,587
8,682,926
8,566,238
2,658,888
3,374
137,082
11,016
410,105
37,727
1,031,324
54,149
936,027
179,301
1,853,959
6 7 ,29k ,879
15,188,^78
97,107
712,360
1,618,331
6,091,338
16,215
153,537
2,001,651
11,197,348
646
25,153
Number of active officers, December 30.........................
Number of other employees, December 30.....................
71,225
311,211
1,007
561
4,246
2,987
9,006
9,472
15,358
26,671
9,464
27,941
12,325
63,435
3,604
26,607
Number of banks, December 30.......................................
13,370
530
1,850
3,222
4,189
1,847
1,376
161
195J
N o te: Due to rounding, earnings data of State banks may not add precisely to the indicated totals,
i This group of banks is the same as the group shown in Table 113 under the heading “ Operating throughout the year."
* Deposits are as of December 30, 1950.
*
• 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 30, 1950,
for banks not submitting reports to FDIC.
B a ck figu res: See the Annual Report for 1949, pp. 168-169, and earlier reports.
BANKS
Borrowings and other liabilities....................................
Total capital accounts....................................................
INSURED
1,511,028
1,370,572
158,607
85,788
OF
220,194
194,395
Dem and d ep osits...................................................................... 116 ,H I ,365
T im e and savings d ep osits.................................................... 86,U25,8UU
EXPENSES,
Liabilities and capital— to ta l....................................... 165.765.708
Total deposits.................................................................. 152.566.709
EARNINGS,
Net profits before Incom e taxes...................................
Taxes on net in com e— t o ta l.........................................
Federal.............................................................................
State.................................................................................
Table 116.
R a t io s o f E a r n in g s , E x p e n s e s , a n d D iv id e n d s of I n su re d C o m m ercial B a n k s O p e r at in g T h r o u gh ou t
1950
B ANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of— *
Earnings or expense item
$500,000
or
less
$500,000
to
$1,000,000
$1,000,000
to
$2,000,000
$2,000,000
to
$5,000,000
$5,000,000 $10,000,000 $50,000,000 More than
to
to
to
$100,000,000
$10,000,000 $50,000,000 $100,000,000
$100.00
23.76
4.44
58.31
5.46
$100.00
24.82
5.47
56.67
6.03
$100.00
25.17
5.89
54.57
7.03
$100.00
25.88
5.69
51.13
7.06
$100.00
25.37
4.80
50.60
5.98
$100.00
26.60
6.09
48.47
4.19
2.66
9.20
8.76
2.08
7.27
1.81
5.82
2.21
4.12
2.89
3.14
4.20
2.55
7.69
2.42
10.83
1.93
12.72
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..................................
62.15
31.19
8.73
3.26
65.44
37.64
5.17
3.28
62.33
34.42
7.36
2.89
61.13
32.16
9.01
2.93
62.13
31.22
10.38
3.10
63.32
30.85
10.87
3.18
64.94
31.28
10.33
3.33
65.09
32.20
8.17
3.29
60.42
30.86
7.43
3.32
1.51
17.46
1.35
18.00
1.46
16.20
1.61
15.42
1.88
15.55
1.95
16.47
1.90
18.10
1.88
19.55
1.13
17.68
Net current operating earnings...................................
37.85
34.56
37.67
38.87
37.87
36.68
35.06
34.91
39.58
2.36
1.47
.89
3.72
2.43
1.29
3.31
2.06
1.25
3.08
1.88
1.20
2.86
1.78
1.08
2.75
1.74
1.01
2.60
1.69
.91
2.39
1.56
.83
2.08
1.26
.82
Amounts per $100 of total assets3
Current operating earnings— total....................................
Current operating expenses— total....................................
Net current operating earnings.........................................
Recoveries, transfers from reserve accounts, and
profits— total...................................................................
Losses, charge-offs, and transfers to reserve accounts—
total..................................................................................
Net profits before income taxes.........................................
Net profits after income taxes...........................................
M em oranda
Recoveries credited to reserve accounts (not included
in recoveries above):
On securities.....................................................................
On loans...........................................................................
Losses charged to reserve accounts (not included in
losses above):
On securities.....................................................................
On loans...........................................................................
.15
.12
.10
.09
.08
.09
.12
.11
.18
.22
.82
.56
.25
1.16
.92
.22
1.13
.90
.21
1.08
.85
.20
.96
.72
.22
.88
.62
.22
.81
.56
.21
.73
.49
.22
.78
.52
(4)
.01
(4)
.01
(4)
.01
(4)
.01
(4)
.01
(4)
.02
(4)
.01
(4)
.01
(4)
.01
(4)
.03
(4)
.02
(4)
.03
(4)
.03
(4)
.04
(4)
.05
(4)
.04
(4)
.04
.01
.03
CORPORATION
$100.00
21.75
3.53
60.43
5.21
INSURANCE
$100.00
16.48
3.22
64.72
4.74
DEPOSIT
$100.00
25.85
5.73
51.15
5.41
FEDERAL
Amounts per $100 of current operating
earnings
Current operating earnings— total.............................
Interest on United States Government obligations...
Interest and dividends on other securities...................
Income on loans..............................................................
Service charges on deposit accounts.............................
Other service charges, commissions, fees, and col
lection and exchange charges.....................................
Other current operating earnings..................................
All
banks1
14.26
14.12
12.19
1.41
1.88
1.85
2.66
3.26
12.12
3.80
8.32
3.48
4.84
2.18
10.14
2.07
8.07
2.56
5.51
2.46
12.43
2.53
9.90
2.87
7.03
2.55
13.30
2.79
10.51
2.98
7.53
2.81
13.17
3.27
9.90
2.96
6.94
3.27
12.91
3.81
9.10
2.83
6.27
3.45
12.69
3.95
8.74
2.97
5.77
3.60
12.37
4.08
8.29
3.03
5.26
3.30
11.55
3.92
7.63
3.94
3.69
.03
.18
(4)
.10
(4)
.11
(4)
.12
.01
.20
.01
.24
.03
.22
.02
.20
.04
.16
.06
.50
.01
.21
.01
.31
.01
.38
.01
.51
.01
.66
.04
.59
.02
.60
.08
.45
3.90
1.69
.18
.94
7.06
1.95
.25
1.18
6.24
1.90
.25
1.12
5.84
1.88
.25
1.08
5.47
1.81
.27
1.03
5.23
1.73
.31
.96
4.67
1.68
.29
.90
4.12
1.59
.20
.89
3.10
1.66
.12
.92
100.00
100.00
100.00
100.00
100.00
100.00
22.31
40.33
5.96
30.76
.64
21.70
40.27
7.61
29.66
.76
21.02
40.71
8.67
28.71
.89
100.00
100.00
100.00
100.00
100.00
91.65
66.05
25.60
.22
8.13
92.42
63.52
28.90
.27
7.31
100.00
3,222
4,189
23.77
36.86
7.24
30.98
1.15
Liabilities and capital—to ta l.......................................
Total deposits..................................................................
Demand deposits..........................................................
Time and savings deposits...........................................
Borrowings and other liabilities....................................
Total capital accounts....................................................
100.00
Number of banks, December 30.......................................
13,370
92.04
70.07
21.97
1.21
6.75
27.61
33.43
4.10
34.10
.76
100.00
88.28
72.03
16.25
.30
11.42
530
23.23
39.12
5.01
32.06
.58
100.00
90.71
68.87
21.8 U
.22
9.07
1,850
92.77
61.61
31.16
.40
6.83
1,847
21.64
40.60
8.18
28.44
1.14
100.00
92.99
63.25
29.7U
.62
6.39
1,376
23.86
38.51
6.90
29.44
1.29
100.00
93.27
71.18
22.09
.81
5.92
161
25.26
34.09
6.84
32.54
1.27
100.00
91.45
7U-66
16.79
1.79
6.76
195
BANKS
14.77
1.16
INSURED
14.82
1.13
OF
14.72
1.14
DIVIDENDS
Assets and liabilities per $100 o f total
assets3
Assets— to ta l.....................................................................
Cash and due from banks..............................................
United States Government obligations........................
Other securities...............................................................
Loans and discounts.......................................................
All other assets................................................................
13.75
1.06
AND
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.. . .
11.26
2.16
EXPENSES,
M em oranda
Recoveries creditedgto reserve accounts (not included
in recoveries above):
On securities....................................................................
On loans...........................................................................
Losses charged to reserve accounts (not included in
losses above):
On securities....................................................................
On loans...........................................................................
13.22
EARNINGS,
A m ou nts per $100 o f total capital accounts3
Net current operating earnings.........................................
Recoveries, transfers from reserve accounts, and
profits— total...................................................................
Losses, charge-offs, and transfers to reserve accounts—
total..................................................................................
Net profits before income taxes........................................
Taxes on net income..........................................................
Net profits after income taxes..........................................
Cash dividends declared....................................................
Net additions to capita! from profits.. . . .......................
1
This group of banks is the same as the group shown in Table 113 under the heading “ Operating throughout the year.” These ratios differ slightly from the ratios for all
insured commercial banks shown in Tables 112 and 114.
3 Deposits are as of December 30, 1950.
8 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 30, 1950, for
banks not submitting reports to FDIC.
4 Less than .005.
fcO
Back figures: See the Annual Report for 1949, pp. 170-171, and earlier reports.
£
Table 117.
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
State,
1950
(Amounts in thousands of dollars)
262
Possessions
Earnings or expense item
U. S.and
possessions
Puerto
Rico
United
States
Other1
Alabama
Arizona
Arkansas
California
Colorado Connecticut
Delaware
3,922,671
38,138
15,933
22,891
435,665
30,408
44,656
14,265
456
51
1,023
62
60
1,014,500
224,821
1,971,557
31,438
212,098
6,990
2,347
22,207
359
2,140
2,351
609
9,637
326
1,234
5,285
1,634
11,225
61
1,510
86,603
20,001
256,556
7,576
27,529
7,859
1,072
15,916
178
2,778
10,193
2,122
21,304
181
3,180
3,404
820
6,596
79
269
104,602
180,674
184,445
782
2
151
453
75
103,367
180,672
184,219
1,839
822
1,434
2,126
7,383
318
359
12,856
190
17,162
1,096
862
Other
current operating
earnings
636
978
992
659
4,599
2,419
130
2,634
334
C urrent operating expenses— t o ta l.............
Salaries— officers..............................................
Salaries and wages— employees.....................
Fees paid to directors and members of execu
tive, discount, and other committees.......
Interest on time and savings deposits..........
Interest and discount on borrowed m oney. .
Taxes other than on net income....................
Recurring depreciation on banking house,
furniture and fixtures..................................
Other current operating expenses..................
2,444,534
446,043
755,681
4,494
728
1,360
1,438
275
528
2,438,602
445,040
753,793
21,321
5,081
6,011
10,640
1,789
3,982
13,311
3,798
3,295
270,060
37,492
88,517
17,552
3,925
5,488
30,171
5,950
9,346
7,532
1,742
2,198
24,745
343,040
4,296
128,101
66
521
121
395
33
189
263
2,576
15
458
36
857
30
24,646
342,330
4,175
127,676
350
310
871
10
666
705
68,301
92
14,182
274
2,007
20
448
314
3,902
39
1,129
148
792
4
223
59,469
683,159
152
1,152
51
333
59,266
681,674
678
6,239
271
3,356
367
3,994
5,470
55,300
397
4,993
920
8,571
228
2,198
Net current operating earnings...................
1,486,164
1,351
742
1,484,071
16,817
5,292
9,580
165,605
12,857
14,485
6,732
245,461
359
66
245,036
1,107
715
831
16,433
1,252
2,098
279
14
14,704
38,639
90,204
13
6
241
5
300
273
112
37
145
1,440
1,725
3,874
369
15
221
179
35
616
9
16
106
R ecoveries, transfers from reserve a c
coun ts, and profits— to ta l......................
On securities:
Recoveries....................................................
Transfers from reserve accounts................
Profits on securities sold or redeemed. . . .
On loans:
Recoveries....................................................
Transfers from reserve accounts................
All other...........................................................
Losses, charge-offs, and transfers to re
serve accounts— t o ta l..............................
On securities:
Losses and charge-offs.................................
Transfers to reserve accounts....................
On loans:
Losses and charge-offs.................................
Transfers to reserve accounts....................
All other...........................................................
Net profits before in com e taxes...................
14,718
38,639
90,469
245
20
28,506
29,971
43,157
104
27
10
4
28,375
29,971
43,143
321
28
499
29
5
103
258
17
263
1,363
2,051
5,982
401
35
211
389
107
772
114
5
28
366,932
622
285
366,025
3,692
1,871
1,410
26,410
2,343
3,932
553
38,721
54,518
22
236
13
38,686
54,282
142
9
140
50
329
10
2,634
5,516
463
3
232
127
37
15
23,030
191,248
59,414
250
15
100
20
169
83
22,760
191,064
59,231
758
2,144
638
1
1,407
272
358
434
280
745
14,091
3,424
412
1,012
452
49
2,352
1,174
109
242
150
1,364,690
1,088
523
1,363,079
14,233
4,136
9,001
155,628
11,765
12,649
6,458
CORPORATION
2,180
500
553
3,520
224
114
INSURANCE
5,845
1,015,456
225,425
1,976,100
31,724
212,272
DEPOSIT
3,930,696
FEDERAL
Current operating earnings— t o ta l.............
Interest on United States Government
obligations....................................................
Interest and dividends on other securities. ..
Interest and discount on loans......................
Service charges and fees on bank’s loans___
Service charges on deposit accounts.............
Other service charges, commissions, fees, and
collection and exchange charges................
Trust department............................................
..................
427,588
402,393
25,195
5,088
4,390
697
1,409
1,282
128
63,417
58,269
5,149
4,159
3,656
503
4,147
3,704
443
2.320
2.320
Net profits after income taxes......................
936,915
1,077
346
935,492
9,145
2,727
6,820
92,212
7,607
8,503
4,137
Dividends and interest on capital— to ta l..
Dividends declared on preferred stock and
interest on capital notes and debentures..
Cash dividends declared on common stock ..
391,249
609
95
390,545
3,308
1,010
2,062
51,183
2,324
4,089
2,323
4,333
386,916
609
3
92
4,330
386,215
1
3,307
21
989
6
2,056
341
50,843
4
2,320
7
4,082
1
2,322
Net additions to capital from profits.........
545,666
468
251
544,947
5,838
1,717
4,758
41,028
5,283
4,414
1,814
3,565
20,385
45
3,565
20,340
2
186
409
41
859
3,333
171
1
274
17
6,324
56,250
50
6,324
56,200
2
572
42
1,443
135
1,359
9,124
534
14
678
3
101
553,463
102,719
248,393
39,474
Memoranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On loans............................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities
....................................
On loans............................................................
63,458 158,765,077
14,552 35,964,413
28,899 63,784,101
3,513 11,014,639
15,873 46,170,583
621
1,831,341
1,311,586
327,989
452,672
116,333
400,012
14,580
462,945
82,221
160,080
32,834
180,356
7,454
855,146 14,514,711
252,887 2,557,213
330,828 5,503,264
69,087 1,009,389
197,089 5,247,527
5,255
197,318
1,225,112
322,101
525,803
47,755
322,272
7,181
1,628,876
21,866
5,790
Liabilities and capital— total........................ 158,986,894
Total deposits.................................................. 146,269,294
158,359
134,690
63,458 158,765,077
59,877 146,074,727
1,311,586
1,212,272
462,945
435,230
855,146 14,514,711
796,276 13,445,497
1,628,876
1,497,411
D em and d eposits.................................................... 109,822,638
T im e and savings d ep osits................................. S 6 ,U 6 ,6 5 6
6 6 ,1U2
68,518
3 h ,1*37 109,722,059
36,852,668
25 M O
1,225,112
1,146,315
953,060
259,212
8,588
335,800
99,U30
6 9 6 ,U 9
99,827
925,051
2 21 ,26U
553,463
498,460
1,125,820
371,591
U15,917
82,5 US
Borrowings and other liabilities....................
Total capital accounts....................................
1,710,204
11,007,396
9,500
14,169
152
3,429
1,700,552
10,989,798
128
90,726
4,566
23,149
2,039
56,831
7,569,356
5 ,8 7 6 ,1U1
230,939
838,275
5,120
73,677
350,185
658,959
145,304
452,562
10,031
121,434
157,087
3,639
51,364
71,566
864
264
955
36
182
71,402
681
311,187
2,813
1,738
817
1,654
5,168
312,324
30,873
2,482
4,053
265
962
N u m b e r o f ban k s, D e ce m b e r 3 0 ............................
13,446
7
7
13,432
225
10
222
191
144
92
37
797
26 3
N o te : D u e t o r ou n d in g , earnings data o f State banks m ay n o t add precisely t o the in d ica ted to ta ls.
1 In clu d es 1 State b a n k and 4 nation al ba n k s in A laska, 1 State ban k in H aw a ii, and 1 national b a n k in the V irgin Isla nds, n on e o f w h ich is a m em ber of the Federal R eserve
S y s tem .
2 E x cess of tax refu n d s ov er ta x p a y m e n ts .
* A sset and lia b ility item s are averages o f figures reported a t beginning, m id dle, and end o f y ear.
B a ck figures: See the A n n u a l R e p o r t fo r 1949, p p . 172-181, and earlier reports.
BANKS
N u m b e r o f a ctiv e officers, D e ce m b e r 3 0 ............
Number o f other em p loy ees, D ece m b e r 3 0 . . . .
INSURED
158,359
27,458
33,830
25,190
63,816
8,065
OF
Average assets and liabilities3
Assets— total............................ ......................... 158,986,894
Cash and due from banks.............................. 36,006,423
United States Government obligations........ 63,846,830
Other securities................................................ 11,043,342
Loans and discounts........................................ 46,250,272
1,840,027
All other assets.................................................
DIVIDENDS
177
171
6
2,181
2,181
27
AND
11
18
EXPENSES,
427,776
402,582
25,194
EARNINGS.
Taxes on net income— total..........................
Federal..............................................................
State..................................................................
Table 117.
E
a r n in g s ,
E
xpe n se 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 ,
1950— Continued
Earnings or expense item
District of
Columbia
Florida
Georgia
Idaho
264
(Amounts in thousands of dollars)
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
13,858
270,454
80,345
60,834
38,861
42,216
45,013
8,335
2,421
33,735
696
3,269
3,455
275
8,223
203
983
97,213
20,770
103,163
2,930
13,598
26,131
3,507
38,220
451
4,163
16,071
3,163
32,839
174
4,338
9,755
2,208
21,074
263
2,675
11,123
1,687
23,900
243
1,649
11,366
3,585
21,556
54
2,647
745
1,834
1,330
2,389
1,202
3,561
4,122
1,913
2,230
264
72
383
4,055
16,580
12,147
2,367
1,953
3,552
1,931
632
1,687
910
343
1,635
617
1,630
1,367
2,848
553
2,403
Current operating expenses—t o t a l.............
Salaries— officers..............................................
Salaries and wages— employees.....................
Fees paid to directors and members of execu
tive, 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..................
18,189
3,077
6,635
31,889
6,074
9,466
35,904
7,474
9,386
8,558
1,914
2,449
169,578
30,066
50,147
51,930
10,256
13,637
36,681
10,188
8,749
22,346
6,821
5,263
23,770
5,919
6,389
28,986
5,488
8,170
210
1,454
6
1,282
341
3,335
27
1,125
495
3,444
40
2,783
72
1,483
8
204
1,369
26,712
303
8,642
728
8,567
7
4,521
406
5,011
5
1,278
369
1,595
7
982
403
1,822
52
1,886
426
3,007
18
2,578
543
4,982
1,345
10,176
905
11,380
281
2,147
3,221
49,119
1,131
13,085
865
10,180
457
6,852
596
6,702
844
8,454
Net current operating earnings...................
10,422
19,059
20,818
5,300
100,877
28,415
24,154
16,516
18,446
16,027
1,111
2,226
1,448
355
20,992
4,801
1,666
1,279
1,466
1,753
2
13
155
195
126
965
67
4
520
90
161
1,300
773
115
14
396
124
124
1,202
980
6,981
311
135
5
428
23
501
359
402
13
526
267
6
667
500
85
273
77
14
51
2,031
3,255
6,541
559
287
1,722
356
98
688
456
82
305
298
337
263
495
72
302
1,707
2,299
3,903
711
30,946
9,008
3,962
2,978
3,838
3,945
169
6
435
75
409
12
59
5,149
2,608
765
1,299
693
10
457
15
340
221
398
526
19
792
720
250
1,000
539
431
2,213
838
63
505
84
996
16,828
5,364
389
3,156
3,400
377
2,013
869
691
1,088
728
378
2,270
630
364
1,502
1,156
9,826
18,985
18,363
4,944
90,923
24,206
21,858
14,816
16,074
13,835
Recoveries, transfers from reserve a c
coun ts, and profits— to ta l......................
On securities:
Recoveries....................................................
Transfers from reserve accounts................
Profits on securities sold or redeemed. . . .
On loans:
Recoveries.....................................................
Transfers from reserve accounts................
All other...........................................................
Losses, charge-offs, and transfers to re
serve accoun ts— t o ta l..............................
On securities:
Losses and charge-offs.................................
Transfers to reserve accounts....................
On loans:
Losses and charge-offs.................................
Transfers to reserve accounts....................
All other...........................................................
N et profits before in com e taxes...................
CORPORATION
56,722
14,713
2,622
21,049
196
5,217
INSURANCE
50,948
8,133
914
13,147
170
2,338
DEPOSIT
28,610
FEDERAL
Current operating earnings—t o ta l.............
Interest on United States Government
obligations....................................................
Interest and di videncls on other securities. . .
Interest and discount on loans......................
Service charges and 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..................
3.465
3.465
5.596
5.596
5.988
5.988
1,813
1,480
334
25.522
25.522
6.893
6.893
5.428
5.428
3.978
3.978
4.648
4.648
4.006
4.006
17,313
16,431
10,837
11,427
9,830
4,409
2,806
3,836
2,845
65,401
768
23,182
2.913
3.055
64
4,902
2
767
75
23,106
72
4,759
57
4,352
4
2,802
26
3,810
21
2,824
Net additions to capital from p rofits.........
3,448
10,334
7,410
2,363
42,220
12,483
12,022
8,031
7,590
6,985
M em oranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.....................................................
On loans............................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities.....................................................
On loans............................................................
138
1
66
1
349
18
36
915
19
658
137
221
8
245
8
99
364
1
434
5
708
62
141
1,681
24
1,077
19
458
555
53
635
15
465
Average assets and liabilities1
Assets— to ta l......................................................
Cash and due from banks..............................
United States Government obligations........
Other securities................................................
Loans and discounts........................................
Ail other assets................................................
1,176,007
282,278
510,329
47,361
316,006
20,033
2,005,511
505,928
933,773
116,434
424,197
25,179
1,786,739
474,162
525,613
91,631
674,056
21,277
440,643
83,633
185,916
11,484
155,962
3,648
13,326,594
3,077,508
6,206,191
1,003,218
2,954,164
85,513
3,332,130
731,243
1,614,438
186,888
774,395
25,166
2,340,789
494,541
914,524
194,164
723,546
14,014
1,577,743
400,598
598,091
135,020
435,846
8,188
1,643,580
400,554
663,544
71,010
496,701
11,771
1,863,634
501,368
740,319
159,009
438,424
24,514
Liabilities and capital— to ta l........................
Total deposits..................................................
1,176,007
1,095,565
2,005,511
1,875,350
1,786,739
1,647,522
440,643
416,080
13,326,594
12,474,711
3,332,130
3,122,556
2,340,789
2,189,029
1,577,743
1,480,165
1,643,580
1,518,433
D em and d eposits....................................................
T im e and savings d ep osits.................................
1,863,634
1,751,806
875,931
219,63b
1,526,919
8U8,U81
l,3 3 0 ,b 8 6
317,036
315 ,526
100,55k
9,319,653
3 ,1 55,058
1 ,6 7 6 ,7 U7
512,282
66,303
785,580
13,535
196,039
3,322
148,438
1 ,325,382
15 U,7 83
1 ,2 9 1 ,97b
2 2 6 ,b59
2,069
22,494
2,238,26^
88b ,292
3,610
93,968
7,549
117,598
l,b 6 b ,9 2 1
286,885
Borrowings and other liabilities.....................
Total capital accounts....................................
6,991
73,451
9,051
121,110
16,735
122,482
4,830
13,789
98,039
361
2,652
1,054
4,322
1,374
4,315
304
1,053
4,361
19,819
2,052
6,526
2,077
4,254
1,540
2,652
1,379
3,364
879
3,643
Number of banks, December 30........................
19
195
331
42
876
475
606
466
362
164
265
N ote: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.
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 1949, pp. 172-181, and earlier reports.
BANKS
Number of active officers, December 30..........
Number of other employees, December 3 0 ....
INSURED
3,131
4,966
OF
12,377
3.055
DIVIDENDS
13,389
2.913
AND
6,361
EXPENSES,
Net profits after incom e taxes......................
Dividends and interest on capital— t o t a l..
Dividends declared on preferred stock and
interest on capital notes and debentures
Cash dividends declared on common stock ..
EARNINGS,
Taxes on net in com e— t o ta l..........................
Federal..............................................................
State..................................................................
Table 117.
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 ,
1950— Continued
(Amounts in thousands of dollars)
Earnings or expense item
Maine
Maryland Massachusetts Michigan Minnesota Mississippi
Missouri
Montana
Nebraska
Nevada
New
Hampshire
140,525
82,400
24,042
105,854
14,839
31,402
5,335
7,448
30,272
4,897
52,061
586
7,226
40,600
7,273
74,535
1,362
7,115
20,843
4,442
40,452
425
4,634
4,652
2,679
11,393
59
1,311
24,167
5,810
61,345
502
4,312
4,693
546
7,056
112
1,216
8,744
1,465
16,071
76
2,200
1,335
179
3,017
99
235
1,532
352
4,293
19
682
200
387
377
794
1,129
1,461
2,696
8,693
7,237
3,551
2,076
4,014
6,599
2,114
2,892
3,089
117
743
2,977
3,027
3,715
545
62
608
1,032
353
1,463
82
152
237
135
121
315
Current operating expenses— t o ta l.............
Salaries— officers..............................................
Salaries and wages— employees.....................
Fees paid to directors and members of execu
tive, 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..................
9,319
1,602
2,445
24,923
4,104
7,391
73,317
12,529
24,039
89,961
13,774
28,180
53,320
12,760
14,150
15,159
3,939
3,725
62,207
12,995
19,009
9,215
2,211
2,286
19,097
5,494
4,685
3,462
605
1,057
5,004
994
1,221
171
1,972
15
521
420
3,940
59
1,561
712
7,014
134
2,977
827
18,440
36
4,328
677
8,986
99
1,064
243
1,169
8
1,090
698
6,254
86
2,820
67
762
17
955
292
1,154
55
974
11
776
224
97
931
4
215
165
2,428
576
6,872
2,130
23,784
2,223
22,154
1,097
14,490
352
4,635
1,541
18,803
282
2,637
439
6,002
99
690
154
1,387
Net current operating earnin gs...................
4,565
13,268
40,351
50,564
29,080
8,883
43,647
5,624
12,305
1,874
2,445
596
1,897
9,115
4,141
2,261
767
4,271
1,320
2,512
84
321
170
110
1,283
296
104
360
116
42
133
1,436
206
1,351
386
205
53
62
1,197
738
14
50
189
34
252
634
142
504
461
103
112
237
71
208
14
46
9
60
27
56
Recoveries, transfers from reserve a c
coun ts, and profits— t o ta l......................
On securities:
R ecoveries...................................................
Transfers from reserve accounts................
Profits on securities sold or redeemed. . . .
On loans:
Recoveries....................................................
Transfers from reserve accounts................
All other...........................................................
Losses, charge-offs, and transfers to re
serve accounts— t o ta l..............................
On securities:
Losses and charge-offs.................................
Transfers to reserve accounts . .
On loans:
Losses and charge-offs.................................
Transfers to reserve accounts....................
All other...........................................................
Net profits before in com e taxes...................
81
3
181
237
333
646
231
1,946
2,861
127
128
88
115
250
287
143
1,104
1,859
1,115
410
1,344
824
860
61
581
1,121
2,983
14,412
11,309
5,000
2,617
8,072
3,118
2,776
153
776
181
10
494
65
1,330
2,744
1,060
656
408
92
518
227
1,857
664
383
1,250
466
369
3
141
130
164
583
182
229
1,239
956
229
6,852
3,256
742
7,799
1,051
1,035
2,408
1,058
266
1,238
368
914
3,478
1,159
603
650
233
172
1,079
691
10
117
24
135
288
82
4,041
12,181
35,055
43,397
26,341
7,033
39,848
3,826
12,041
1,804
1,989
CORPORATION
113,668
12,302
1,431
18,542
85
2,447
INSURANCE
38,191
3,312
652
8,053
48
855
DEPOSIT
13,883
FEDERAL
Current operating earnings— t o ta l.............
Interest on United States Government
obligations....................................................
Interest and dividends on other securities. . .
Interest and discount on loans......................
Service charges and 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..................
Taxes on net income— total..........................
Federal..............................................................
State.................. ...............................................
1.213
1.213
4.100
4.100
12,196
9,530
2,666
13.643
13.643
8,429
6,892
1,537
1.670
1.670
12,483
11,919
563
1,462
1,406
55
2.980
2.980
635
635
599
599
2,829
8,081
22,858
29,754
17,912
5,363
27,365
2,365
9,062
1,169
1,389
1,138
3,683
12,942
10,723
6,382
1,597
9,605
1,273
2,553
187
570
9
1,129
28
3,655
19
12,923
186
10,537
51
6,331
57
1,540
58
9,547
5
1,269
3
2,550
187
570
Net additions to capital from profits.........
1,690
4,398
9,917
19,031
11,530
3,766
17,760
1,092
6,508
982
820
Memoranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.....................................................
On loans............................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities.....................................................
On loans............................................................
194
198
27
571
1,058
257
131
46
459
117
1
178
57
75
EXPENSES,
2
325
6
514
18
1,588
67
1,565
13
614
29
475
47
1,092
199
31
364
96
7
251
AND
Average assets and liabilities1
Assets—total......................................................
Cash and due from banks..............................
United States Government obligations........
Other securities................................................
Loans and discounts........................................
All other assets.................................................
448,106
81,139
180,163
30,866
151,523
4,415
1,643,379
358,689
784,254
70,137
409,394
20,905
4,507,456
963,192
1,861,140
254,038
1,352,148
76,938
5,739,443
1,133,606
2,658,876
418,893
1,479,533
48,535
3,046,112
667,797
1,215,989
242,026
895,743
24,557
814,377
213,796
268,842
118,284
206,010
7,445
4,584,724
1,192,740
1,595,569
287,390
1,473,239
35,786
595,934
140,987
298,614
27,745
124,379
4,209
1,334,042
338,730
548,663
88,092
350,210
8,347
182,328
31,316
84,274
9,441
54,945
2,352
236,893
52,544
82,815
15,914
83,571
2,049
D IV ID E N D S
OF
E A R N IN G S ,
Net profits after income taxes......................
Dividends and interest on capital— total..
Dividends declared on preferred stock and
interest on capital notes and debentures..
Cash dividends declared on common stock ..
1,643,379
1,523,447
4,507,456
4,076,162
5,739,443
5,393,814
3,046,112
2,832,444
814,377
760,559
4,584,724
4,289,386
595,934
567,827
1,334,042
1,251,781
182,328
170,611
229,672
175,1+59
1,101,1+56
1+21,991
3,233,361
2,160,1+53
236,893
.211,980
1,967,961+
861+, U80
627,338
133,221
3,588,01+0
701,31+6
3,097
39,878
9,788
110,144
3,330,991+
71+5,168
1+69,512
98,315
1,1 13,932
137,81+9
20,243
193,425
2,506
51,312
24,553
270,785
2,028
26,079
109,61+1
60,970
3,195
79,066
1,326
10,391
‘ 11+5,61+6
66,331+
N u m b e r o f activ e officers, D e ce m b e r 30 ..........
N u m b e r o f other e m p loy ees, D e ce m b e r 3 0 ... .
305
1,202
822
3,613
1,600
10,770
1,951
11,247
2,547
6,475
806
1,851
2,488
8,913
415
1,075
1,181
2,316
104
441
206
592
N u m b e r o f ban k s, D e ce m b e r 30........................
53
162
174
414
661
197
576
110
367
8
58
63,028
368,266
39,278
306,351
Note: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.
* Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures: See the Annual R eport for 1949, pp. 172-181, and earlier reports.
827
24,086
BANKS
448,106
405,131
IN S U R E D
Liabilities and capital— total........................
Total deposits...................................................
Demand deposits...........................................
Time and savings deposits...........................
Borrowings and other liabilities....................
Total capital accounts....................................
Table 117.
E
a r n in g s ,
E xpen ses,
D
and
iv id e n d s
of
I nsured C
o m m e r c ia l
B an ks,
by
St a t e ,
Oklahoma
Oregon
1950— Continued
Earnings or expense item
New
Jersey
New
York
New
Mexico
North
Carolina
North
Dakota
268
(Amounts in thousands of dollars)
Ohio
Pennsylvania
Rhode
Island
South
Carolina
53,601
13,373
190,149
47,986
39,393
301,269
18,088
18,537
192,224
41,699
321,343
5,673
31,438
9,802
2,868
29,334
776
2,948
4,271
490
5,350
105
941
55,456
11,672
90,607
1,158
9,609
9,904
2,396
28,197
157
3,349
9,884
2,681
20,737
196
3,052
83,445
26,657
136,250
1,087
10,348
5,851
458
8,952
10
813
4,258
1,004
9,364
30
1,465
1,625
4,781
5,265
278
121
366
13,887
63,382
45,721
4,487
1,711
1,677
1,796
53
370
3,633
8,561
9,454
1,051
396
2,539
801
737
1,305
4,314
22,288
16,883
186
753
1,065
1,702
377
339
Current operating expenses— t o ta l.............
Salaries— officers..............................................
Salaries and wages— employees.....................
Fees paid to directors and members of execu
tive, 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..................
90,732
13,959
26,092
6,376
1,481
2,019
436,924
67,298
168,369
32,396
7,471
8,698
7,814
2,190
1,781
122,456
18,468
33,333
26,505
7,525
7,395
25,508
4,828
9,019
186,621
31,135
57,460
12,597
1,657
3,430
10,722
2,754
3,084
1,337
17,267
86
5,195
60
417
4
263
3,146
30,562
2,198
16,770
328
4,136
77
1,233
97
1,115
1
242
1,192
22,308
149
14,067
268
1,152
24
588
90
4,053
19
593
2,810
27,575
171
9,784
138
2,702
4
923
150
833
5
166
3,104
23,692
208
1,925
7,206
141,377
928
9,527
154
2,236
2,982
29,957
885
8,668
909
5,997
5,241
52,446
298
3,443
357
3,375
Net current operating earnin gs...................
40,080
4,539
278,442
21,205
5,560
67,693
21,482
13,886
114,647
5,491
7,815
10,048
403
61,846
2,170
232
6,791
1,324
1,357
53,666
1,092
391
122
7
351
67
1,026
1,499
13,673
32,550
199
19
486
71
25
69
Recoveries, transfers from reserve a c
coun ts, and profits— t o ta l......................
On securities:
Recoveries.....................................................
Transfers from reserve accounts................
Profits on securities sold or redeemed. . . .
On loans:
Recoveries.....................................................
Transfers from reserve accounts................
All other...........................................................
Losses, charge-offs, and transfers to re
serve accoun ts— t o ta l..............................
On securities:
Losses and charge-offs.................................
Transfers to reserve accounts....................
On loans:
Losses and charge-offs.................................
Transfers to reserve accounts....................
All other...........................................................
Net profits before in com e taxes...................
11
2,408
13,096
20,037
60
66
1,251
22
39
40
631
492
1,697
291
9
93
5,605
14,400
6,299
236
91
465
63
5
63
657
1,264
2,049
539
64
241
152
4
108
2,258
856
2,831
36
163
189
63
12
151
10,790
1,149
68,250
4,178
971
14,801
3,055
3,270
57,214
1,293
1,249
1,558
955
36
3,902
5,558
805
94
98
12
1,046
661
333
48
684
3,779
28,017
18
4
218
4
705
6,034
1,538
317
620
175
1,496
47,008
10,287
219
2,427
633
97
509
256
548
10,385
2,162
776
1,290
608
61
1,835
690
1,528
18,924
4,966
32
883
356
136
720
171
39,338
3,792
272,037
19,197
4,821
59,682
19,752
11,974
111,100
5,289
6,957
660
1,104
4,152
1,392
1,338
1,401
1
CORPORATION
715,367
1,932
230
7,068
322
597
INSURANCE
10,913
40,125
9,716
60,457
408
8,436
DEPOSIT
130,812
FEDERAL
C urrent operating earnings— to ta l.............
Interest on United States Government
obligations....................................................
Interest and dividends on other securities.. .
Interest and discount on loans......................
Service charges and 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..................
6,226
5,637
590
3,790
2,856
934
29,574
29,572
2
1,845
1,646
198
2,433
2,177
256
Net profits after in com e taxes......................
30,538
2,733
185,647
12,594
3,405
41,970
13,526
8,184
81,525
3,445
4,524
Dividends and interest o n capital— t o t a l ..
Dividends declared on preferred stock and
interest on capital notes and debentures..
Cash dividends declared on common stock ..
8,889
706
104,977
3,748
1,112
14,163
4.260
2,796
34,752
1,688
1,563
1,117
7,773
2
704
1,346
103,631
15
3,733
4
1,108
143
14,020
4.260
1
2,795
167
34,585
1,688
9
1,554
Net additions to cap ital from p rofits.........
21,649
2,027
80,671
8,846
2,293
27,807
9,266
5,388
46,773
1,757
2,962
M em oranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.....................................................
On loans............................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities.....................................................
On loans............................................................
229
482
140
1,732
3,720
12
92
1
100
213
780
264
103
213
1,004
36
70
146
1,184
332
1,817
11,869
32
433
158
190
2,219
663
727
603
3,758
4
262
234
Average assets and liabilities1
Assets— t o ta l......................................................
Cash and due from banks..............................
United States Government obligations.........
Other securities................................................
Loans and discounts........................................
All other assets.................................................
5,011,114
810,075
2,374,837
482,060
1,273,741
70,401
358,586 34,433,342
106,517 8,335,155
125,317 12,894,784
11,513 2,096,941
112,124 10,607,768
498,694
3,115
1,883,659
474,243
606,146
167,857
613,565
21,848
483,012
81,195
265,580
27,748
105,645
2,844
7,957,966
1,625,914
3,521,545
602,415
2,127,495
80,597
1,791,085
540,098
634,166
131,377
472,673
12,771
1,413,938
289,218
556,146
119,365
428,054
21,155
11,481, €92
2,319,800
4,778,187
1,115,108
3,118,129
150,468
703,722
115,864
345,928
19,376
211,547
11,007
688,273
179,344
267,845
54,224
181,399
5,461
Liabilities and capital— to ta l........................
Total deposits..................................................
Demand deposits...........................................
Time and savings deposits............................
Borrowings and other liabilities....................
Total capital accounts....................................
5,011,114
4,649,030
2,615,2^8
2,033,782
30,036
332,048
358,586 34,433,342
339,056 30,722,160
293,189 26,498,865
45,867 4,223,295
808
833,114
18,722 2,878,068
1,883,659
1,731,571
1,336,364
395,207
24,034
128,054
483,012
455,573
344,370
111,203
1,540
25,899
7,957,966
7,420,247
4,784,599
2,635,648
43,850
493,869
1,791,085
1,666,289
1,538,800
127,489
5,904
118,892
1,413,938
1,320,061
945,945
374,116
9,026
84,851
11,481,692
10,311,085
7,225,104
3,085,981
74,346
1,096,261
703,722
645,784
430,989
214,795
7,618
50,320
688,273
642,055
553,855
88,200
3,450
42,768
Number of active officers, December 30..........
Number of other employees, December 3 0 ... .
2,122
11,285
261
899
6,868
61,408
1,291
4,030
479
927
3,125
14,110
1,506
3,524
823
3,699
4,900
23,907
232
1,635
546
1,506
Number of banks, December 30........................
320
51
622
224
145
650
375
68
954
12
131
N ote: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.
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 1949, pp. 172-181, and earlier reports.
BANKS
17.713
17.713
INSURED
1,415
1,339
76
OF
6,604
6,394
210
DIVIDENDS
86,391
76,146
10,245
AND
1.059
1.059
EXPENSES,
8,801
8,801
EARNINGS,
Taxes on net in com e— t o t a l..........................
Federal..............................................................
State..................................................................
Table 117.
E
a r n in g s ,
E
xpenses,
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
anks, by
Sta te ,
1950— Continued
(Amounts in thousands of dollars)
Earnings or expense item
South
Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West
Virginia
Wisconsin
Wyoming
18,500
9,474
60,888
57,425
28,455
75,362
7,465
3,811
625
7,485
60
1,154
11,535
3,630
36,342
406
1,804
36,262
8,006
111,369
1,416
9,103
3,823
501
10,953
498
946
1,546
496
6,355
54
467
12,617
2,133
37,161
459
3,045
11,829
4,317
31,376
419
4,979
7,820
987
15,931
181
1,106
24,965
4,536
35,541
437
4,229
1,712
241
4,225
79
526
1,523
49
487
2,151
1,231
2,117
4,724
2,736
10,188
674
403
704
128
168
260
1,301
2,282
1,892
1,506
1,328
1,672
564
796
1,072
1,771
1,063
2,819
228
81
374
Current operating expenses— t o ta l.............
Salaries— officers..............................................
Salaries and wages— employees.....................
Fees paid to directors and members of execu
tive, 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..................
9,074
2,784
2,095
35,092
6,846
9,289
108,532
25,765
29,605
10,935
2,001
2,971
6,913
1,045
1,359
37,717
7,518
9,854
37,235
7,036
12,651
16,520
3,378
4,208
50,254
10,733
12,610
4,285
1,115
1,160
133
981
2
222
318
5,356
107
2,523
1,212
5,491
34
10,179
195
2,395
11
200
136
2,574
3
146
579
7,152
26
2,006
207
5,137
14
969
272
2,970
27
726
829
10,627
45
1,193
69
394
7
226
216
2,640
912
9,741
3,416
32,832
230
2,931
146
1,506
1,346
9,237
1,167
10,056
542
4,395
1,286
12,931
158
1,156
Net current operating earnin gs...................
6,119
24,124
75,271
7,565
2,561
23,171
20,191
11,936
25,108
3,181
256
3,197
7,454
591
526
1,595
1,285
968
2,573
183
16
556
432
804
10
221
36
5
144
116
13
373
36
32
441
33
46
578
303
1,255
228
198
110
836
29
68
15
110
355
30
676
2,458
487
2,716
180
1
180
158
108
75
432
200
462
157
9
610
270
80
357
246
284
900
98
1,138
6,449
18,265
1,087
789
3,339
5,518
2,030
4,689
664
102
25
1,917
401
2,166
292
100
87
5
424
65
437
1,367
283
3
924
68
78
97
776
139
475
2,255
1,402
3,361
9,213
3,233
193
561
233
187
453
58
633
1,752
465
180
2,733
802
313
962
470
353
2,698
645
154
261
171
5,236
20,873
64,460
7,070
2,298
21,427
15,958
10,874
22,992
2,700
Recoveries, transfers from reserve a c
coun ts, and profits—t o ta l......................
On securities:
Recoveries.....................................................
Transfers from reserve accounts................
Profits on securities sold or redeemed. . . .
On loans:
Recoveries.....................................................
Transfers from reserve accounts................
All other...........................................................
Losses, charge-offs, and transfers to re
serve accounts— t o ta l..............................
On securities:
Losses and charge-offs.................................
Transfers to reserve accounts....................
On loans:
Losses and charge-offs.................................
Transfers to reserve accounts....................
All other...........................................................
Net profits before incom e taxes...................
5
52
CO R PO R ATIO N
183,803
INSURANCE
59,216
DEPOSIT
15,192
FEDERAL
Current operating earnings— t o t a l.............
Interest on United States Government
obligations....................................................
Interest and dividends on other securities. . .
Interest and discount on loans......................
Service charges and 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..................
6.646
6.646
3.988
3.988
Net profits after in com e taxes......................
3,654
14,841
44,170
4,380
1,739
14,783
Dividends and interest on capital—t o t a l..
Dividends declared on preferred stock and
interest on capital notes and debentures..
Cash dividends declared on common stock..
1,214
4,533
15,691
1,550
659
5,294
4
1,210
42
4,491
19
15,672
8
1,542
130
530
Net additions to capital from p rofits.........
2,440
10,307
28,479
2,830
M em oranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.....................................................
On loans...........................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities.....................................................
On loans............................................................
52
7
342
129
1,241
107
1
504
Average assets a n d liabilities1
Assets— t o t a l......................................................
Cash and due from banks..............................
United States Government obligations.........
Other securities................................................
Loans and discounts........................................
Ail other assets.................................................
524,452
105,895
245,299
30,321
139,249
3,688
Liabilities and capital— t o ta l........................
Total deposits...................................................
Demand deposits...........................................
Time and savings deposits............................
Borrowings and other liabilities.....................
Total capital accounts....................................
6,085
5,943
142
834
834
11,970
7,306
16,907
1,866
4,053
2,475
5,355
512
49
5,245
2
4,051
12
2,463
140
5,216
7
506
1,080
9,488
7,916
4,832
11,552
1,353
80
129
10
244
337
137
10
339
79
133
4,304
185
174
Q
197
Q
773
1,6 DO
817
1
341
QO
Q
O
866
2
175
2,102,093
530,424
681,357
144,326
722,437
23,549
7,294,544
2,290,277
2,291,817
346,652
2,270,839
94,959
605,721
137,828
224,070
25,722
213,008
5,093
276,903
42,508
81,448
22,809
127,272
2,866
2,068,144
475,508
753,155
94,734
717,464
27,283
2,034,910
458,643
733,826
188,097
634,268
20,076
1,005,029
227,051
442,321
45,006
279,332
11,319
3,197,102
623,627
1,496,577
237,825
811,079
27,994
271,787
73,565
111,814
11,942
72,598
1,868
524,452
492,973
U08,1U6
89,827
1,591
29,888
2,102,093
1,959,210
1,U99,1>67
U59,7U8
11,779
131,104
7,294,544
6,846,556
6,189,689
656,867
32,537
415,451
605,721
565,544
383,U 6
182,098
3,349
36,828
276,903
247,404
95,372
152,032
1,559
27,940
2,068,144
1,899,862
1,275,526
62^,836
14,309
153,973
2,034,910
1,907,304
1,879,U97
527,807
9,596
118,010
1,005,029
918,665
660,608
258,057
4,971
81,393
3,197,102
2,993,056
1,758,988
1,289,078
8,492
195,554
271,787
255,422
209,185
46,287
898
15,467
Number of active officers, December 30..........
Number of other employees, December 3 0 ... .
633
1,049
1,374
4,428
4,451
13,304
322
1,290
241
636
1,494
4,779
1,083
5,027
645
1,858
2,027
5,666
217
490
Number of banks, December 30........................
163
289
861
55
69
313
115
176
543
N ote: Due to rounding, earnings data of State banks may not add precisely to the indicated totals,
i Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures: See the Annual R eport for 1949, pp. 172-181, and earlier reports.
53'
BANKS
3.569
3.569
INSURED
559
493
66
OF
2,691
2,520
171
DIVIDENDS
20.290
20.290
AND
6,032
5,933
99
EXPEN SES,
1,581
1,448
183
EARNINGS,
Taxes on net in com e— t o t a l..........................
Federal..............................................................
State..................................................................
272
Table 118.
E
a r n in g s ,
E
xpen ses, and
D
iv id e n d s
of
I nsured
M
utual
Sa v in g s B a n k s ,
1942-1950
(Amounts in thousands of dollars)
1942
1943
1944
1945
194 6
1947
1949
1948
1950
|
76,287
273,479
295,709
322,795
350,951
375,592
403,156
436,869
478,695
166,308
2,477
191,372
2,615
231,730
3,198
140,002
1,260
141,001
1,627
142,538
1,893
17,134
16,923
76,510
24,607
97,856
29,694
135,627
24,652
171,139
22,609
184,900
24,386
184,139
35,748
183,106
45,165
182,457
46,134
154
9,745
321
32,850
538
26,359
1,033
18,855
1,301
11,471
1,329
11,689
1,214
13,270
1,450
13,161
1,567
13,609
Current operatin g expenses— t o ta l...............
Salaries— officers................................................
Salaries and wages—employees.......................
Directors', trustees’ , and managers’ fees1. . . .
Taxes other than on net income......................
Recurring depreciation on banking house,
furniture and fixtures....................................
Other current operating expenses....................
24,520
2,715
5,915
389
5,104
87,847
9,467
19,792
1,704
17,015
86,575
10,093
20,658
1,903
14,838
77,705
10,567
22,179
855
8,410
85,523
11,967
26,938
1,045
7,243
93,613
13,271
31,247
1,142
6,891
100,768
14,267
34,156
1,211
6,418
104,187
15,181
35,809
1,313
6,411
115,470
16,434
38,526
1,620
7,025
743
9,654
3,046
36,823
3,359
35,724
2,649
33,045
2,574
35,756
2,550
38,512
2,705
42,011
3,127
42,346
2,887
48,978
Net cu rren t operating earnings.....................
51,767
185,632
209,134
245,090
265,428
281,979
302,388
332,682
363,225
257,770
117,985
132,430
160,134
181,225
196,096
235,800
101,740
105,294
100,754
106,292
96,882
105,455
181,982
47,560
79,389
4,055
50,978
186,720
34,920
89,554
2,097
60,149
99,548
32,443
27,770
1,266
38,069
59,897
14,514
6,705
411
38,267
77,797
20,094
33,205
443
24,055
74,127
21,759
24,344
303
27,721
142,499
72,320
3,375
66,804
111,998
58,587
4,472
48,939
76,792
23,872
7,233
45,687
88,143
30,861
8,610
48,672
83,121
23,383
8,496
51,242
143,350
Dividends (interest) paid o n d ep o sits..........
33,209
Net operatin g earnings after dividends o n
d e p o sits.........................................................
18,558
67,647
76,704
Profits and recoveries o n assets— t o t a l........
Recoveries on securities2...................................
Profits on securities sold or exchanged...........
Recoveries on loans2..........................................
All other profits and recoveries3.......................
19,092
5,164
7,112
653
6,163
129,160
40,402
31,376
11,094
46,288
101,473
31,423
30,677
14,763
24,610
Losses and charge-offs— t o t a l.........................
33,486
10,379
9,211
13,896
168,891
32,818
74,327
61,746
113,691
17,625
68,179
27,887
135,783
36,635
28,825
70,323
All other3.............................................................
CORPORATION
137,950
1,241
INSURANCE
31,212
1,119
151,174
2,114
DEPOSIT
C urrent operatin g earnings— t o ta l...............
Interest, discount, and other income on real
estate loans.....................................................
Interest, discount, and income on other loans
Interest on U. S. Government obligations,
direct and guaranteed..................... .............
Interest and dividends on other securities.. ..
Collection and exchange charges, commis
sions, and fees................................................
Other current operating earnings....................
FEDERAL
Earnings, expense, asset or liability item
Net profits before in co m e taxes.............
4,164
Taxes o n n et in c o m e .................................
Net profits after in co m e taxes................
Interest o n capital d e b e n tu re s..............
4,131
27,916
64,486
147,939
149,515
88,304
89,397
345
122
2,034
5,759
5,992
4,501
4,341
5,061
27,571
64,364
145,905
143,756
82,312
84,896
82,195
91,400
96,461
271
264
248
234
230
225
63,882
145,634
143,492
82,064
84,662
81,965
91,175
Average assets an d liabilities6
Assets— t o t a l................................................
Cash and due from banks.........................
U. S. Government obligations.................
Other securities..........................................
Real estate loans........................................
Other loans and discounts........................
All other assets...........................................
2,089,328
141,377
725,595
416,107
661,599
30,078
114,572
7,945,687
494,112
3,322,146
663,101
3,104,849
28,145
333,334
9,164,873
449,751
4,723,004
628,821
3,085,567
30,372
247,358
10,636,400
416,762
6,345,344
605,362
3,056,494
36,934
175,504
12,066,095
530,271
7,588,938
653,589
3,112,879
41,588
138,830
13,128,837
649,906
8,127,449
814,360
3,352,063
48,173
136,886
13,860,655
667,792
8,042,934
1,189,924
3,756,276
56,597
147,132
14,627,136
665,128
7,855,590
1,504,437
4,382,035
58,135
161,811
15,543,290
652,709
7,754,675
1,561,408
5,327,950
68,178
178,370
13,128,837
11,869,717
13,565
11,856,152
42,064
1,217,056
13,860,655
12,519,862
lb ,395
12,505,1+67
44,618
1,296,175
14,627,136
13,201,208
U.752
13,186,U56
47,638
1,378,290
15,543,290
14,013,217
17,90b
13,995,313
63,722
1,466,351
Liabilities an d capital— t o ta l..................
Total deposits.............................................
Demand deposits..................................... .
Time and savings deposits......................
Borrowings and other liabilities................
Total surplus and capital accounts.........
2,089,328
1,900,429
7,945,687
7,134,660
9,164,873
8.280.998
10,636,400
9,648,308
l,900,b29
6,656
182,243
7,13b,660
22,331
788,696
8.280.998
23,974
859,901
9,6b8,308
27,085
961,007
12,066,095
10,923,361
13,198
10,910,163
32,934
1,109,800
Number of active officers, December 3 1 . . . ,
Number of other employees, December 31.
363
2,884
1,209
9,581
1,276
9,719
1,337
10,852
1,410
11,414
1,494
11,599
1,527
11,930
1,567
12,331
1,650
12,870
192
192
191
194
193
192
194
Number of banks, December 317..................
INSURED
BANKS
OF
1 Includes professional fees from 1942 through 1944.
* Jn JSJf2-1944; and for banks not submitting reports to FDIC in 1945-1947, includes reductions in valuation reserves.
?T
for banks submitting reports to FDIC and in 1948-1950 for all banks, includes all reductions in valuation reserves.
tr
fo^ banks not submitting reports to FDIC in 1945-1947, includes additions to valuation reserves.
« In 1945-1947 for banks submitting reports to FDIC and in 1948-1950 for all banks, includes all additions to valuation reserves.
®Asset and liability items are averages of figures reported at beginning, middle, and end of year.
7 Includes 3 mutual savings banks, members of the Federal Reserve System.
Baek figures: See the Annual Report for 1941, p. 173.
DIVIDENDS
482
27,277
AND
294
3,813
EXPEN SES.
318
Net profits after interest an d dividends
to
CO
to
k£-*
Table 119.
R
a t io s
of
E a r n in g s , E x p e n s e s ,
and
D
iv id e n d s
I n sured
of
M
utual
Sa v in g s B a n k s ,
1942-1950
j
1943
1944
1945
1946
1949
1948
1947
1950
$100.00
47.84
.43
33.09
10.04
$100.00
43.68
.50
42.02
7.64
$100.00
40.62
.54
48.76
6.44
$100.00
40.25
.56
49.23
6.49
$100.00
41.25
.61
45.68
8.87
$100.00
43.81
.60
41.91
10.34
$100.00
48.41
.67
38.11
9.64
.20
12.78
.12
12.01
.18
8.92
.32
5.84
.37
3.27
.36
3.11
.30
3.29
.33
3.01
.33
2.84
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
24.99
12.31
1.59
23.85
11.97
1.47
24.12
11.82
1.47
.97
12.66
1.11
13.47
1.14
12.08
.82
10.24
.74
10.19
.68
10.25
.67
10.42
.72
9.69
.60
10.23
Net current operating earnin gs.....................
67.86
67.88
70.72
75.93
75.63
75.08
75.01
76.15
75.88
Dividends (interest) paid on deposits..........
43.53
43.14
44.78
44.41
45.63
48.25
48.64
53.97
53.85
Net operating earnings after dividends on
d eposits.....................................................
24.33
24.74
25.94
31.52
30.00
26.83
26.37
22.18
22.03
A m ounts per $100 o f total assets2
Current operating earnings— total......................
Current operating expenses— total......................
Net current operating earnings............................
Dividends (interest) paid on deposits.................
Net operating earnings after dividends on
3.65
1.17
2.48
1.59
3.44
1.10
2.34
1.49
3.23
.95
2.28
1.44
3.03
.73
2.30
1.35
2.91
.71
2.20
1.33
2.86
.71
2.15
1.38
2.91
.73
2.18
1.41
2.98
.71
2.27
1.61
3.08
.74
2.34
1.66
.89
.91
1.60
.20
.18
.85
1.63
2.13
.35
.34
.84
1.11
1.24
.71
.70
.95
1.71
1.27
1.39
1.37
.87
1.55
1.18
1.24
1.19
.77
.76
.86
.67
.63
.77
.43
.55
.65
.61
.66
.53
.60
.59
.56
.68
.47
.53
.62
.59
C urrent operating expenses— to ta l...............
Salaries, wages and fees1...................................
Taxes other than on net income......................
Recurring depreciation on banking house,
furniture and fixtures....................................
Other current operating expenses....................
Recoveries and profits—total..............................
Losses and charge-offs— total..............................
Net profits before income taxes...........................
Net additions to surplus and capital accounts. .
CORPORATION
$100.00
50.44
.46
27.97
9.00
INSURANCE
$100.00
40.91
1.47
22.46
22.18
DEPOSIT
A m ou nts per $100 o f current operating
earnings
Current operating earnings— to ta l...............
Income on real estate loans..............................
Income on other loans......................................
Interest on U. S. Government obligations. . .
Interest and dividends on other securities---Collection and exchange charges, commis
sions, and fees................................................
Other current operating earnings....................
1942
FEDERAL
Earnings or expense item
4.07
4.61
4.41
4.58
4.55
2.30
2.07
2.14
3.71
4.72
4.07
1.75
1.65
1.60
2.09
3.46
100.00
6.77
34.73
19.91
33.11
5.48
4.51
4.39
4.43
4.38
4.37
4.50
4.35
4.69
2.26
2.28
2.29
2.33
2.35
3.46
2.99
3.00
3.00
2.95
1.49
1.47
1.53
1.57
1.79
1.84
7.43
15.15
12.93
6.74
6.53
5.95
6.22
100.00
6.22
41.80
8.35
39.43
4.20
100.00
4.91
51.53
6.86
34.00
2.70
100.00
3.92
59.66
5.69
29.08
1.65
100.00
4.40
62.89
5.42
26.14
1.15
100.00
4.95
61.91
6.20
25.90
1.04
100.00
4.82
58.03
8.58
27.51
1.06
100.00
4.55
53.71
10.28
30.35
1.11
100.00
4.20
49.89
10.04
34.72
1.15
100.00
90.96
100.00
89.79
100.00
90.36
100.00
90.71
90.96
.32
8.72
89.79
.28
9.93
90.36
.26
9.38
100.00
90.53
’U
90.42
.27
9.20
100.00
90.41
.10
90.31
.32
9.27
100.00
90.33
.11
90.22
.32
9.35
100.00
90.25
.10
90.15
.33
9.42
100.00
90.16
.12
90.04
.41
9.43
56
184
192
191
194
193
192
194
)
90.71 J
.25
9.04
192
INSURED
B AN KS
OF
1 Includes professional fees from 1942 through 1944.
3 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
* Includes 3 mutual savings banks, members of the Federal Reserve System.
DIVIDENDS
Number of banks, December 31*........................
2.36
4.54
4.15
AND
L iabilities and capital— t o ta l..........................
Total deposits....................................................
Demand deposits.............................................
Time and savings deposits.............................. }
Borrowings and other liabilities......................
Total capital accounts......................................
4.44
4.41
EXPENSES,
Assets and liabilities per $100 o f total
assets3
Assets— t o ta l........................................................
Cash and due from banks................................
U. S. Government obligations.........................
Other securities..................................................
Loans and discounts.........................................
All other assets..................................................
4.72
3.72
EARNINGS,
Special ratios*
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. . .
D epo sit I n su r a n c e D is b u r s e m e n t s
Table 120. Disbursements, deposits, and depositors in insured banks financially aided by the
Federal Deposit Insurance Corporation, 1934-1950
Banks grouped by class of bank, year of aid, amount of deposits, and State
Table 121. Assets and liabilities of insured banks placed in receivership and of insured banks
absorbed with the financial aid of the Federal Deposit Insurance Corporation,
1934-1950
As shown by books of bank at date of closing
Table 122. Name, location, Federal Deposit Insurance Corporation disbursement, and assets
and liabilities of insured banks absorbed with the financial aid of the Corporation
during 1950
Table 123. Recoveries and losses by the Federal Deposit Insurance Corporation in connection
with insured banks financially aided by the Corporation, 1934-1950
As shown by books of FDIC, December 81, 1950
Disbursements by the Federal Deposit Insurance Corporation
to protect depositors have been made when insured banks because of
One noninsured bank failed in 1950. The name and location of this
bank and its deposits and date of closing are given below.
Long Banking Company, Ludowici, Georgia, July 1950, deposits
$42,000.
For suspensions of noninsured banks in previous years, see the Annual
Reports of the Corporation as follows: 1943, p. 102; 1946, p. 167;
1947, p. 159; and 1949, p. 187.
Sources of data
Books of bank at date of closing; and books of FDIC, December
31, 1950.
D ISBU RSEM EN TS
Deposits of insured banks placed in receivership as given in Table 120
are taken from the books of FDIC at the end of the year and will differ
from the deposits in Table 121 which are taken from books of the
Noninsured bank failures
INSURANCE
The table “Depositors and deposits of insured banks placed in
receivership,” by years, which appeared in previous jroports, has been
omitted since there has been no receivership since 1944. For definitions
of the terms used in that table, and tlie detailed figures as shown by
the books of the Corporation for December 31, 1946, see the Annual
Report of the Corporation for 1946, pages 167 and 171. Totals for all
insured banks placed in receivership are given in Tables 3 and 4 of
this Report, pages 12 and 13.
Details of the absorptions during 1950 are given in Table 122. The
disbursements by the Corporation were made to purchase assets from
the selling bank which were not acceptable to the purchasing bank.
DEPOSIT
financial difficulties are placed in receivership or are absorbed with the
aid of the Corporation. In receiverships the disbursement is the amount
paid by the Corporation on insured deposits. In absorptions the Corpora
tion’s disbursement is the amount loaned to absorbed banks, or the
price paid for assets purchased from them.
bank at date of closing. This is because the former include deposits
discovered or reclassified after the date of a bank’s closing.
to
T a b le 120.
D i s b u r s e m e n t s , D e p o s i t s , a n d D e p o s i t o r s in I n s u r e d B a n k s F i n a n c i a l l y A id e d 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 , 1934-1950
banks
grou ped
by
c l a s s o f b a n k , y e a r o f a i d , a m o u n t o f d e p o s it s , a n d
to
state
-T
00
Disbursements by FDIC
(in thousands of dollars) 1
Deposits
(in thousands of dollars) 2
Number of banks
Number of depositors2
Classification
Total
273,203
87,044
186,159
Receiver
ships
Total
Absorp
tions
Total
415
245
170
533,421
Receiver
ships
109,603
Absorp
tions
Total
Receiver
ships
Absorp
tions3
423,818
1,354,172
382,764
971,408
36,057
72
21
51
108,828
19,474
89,354
285,173
65,406
229,767
80,341
22
6
16
187,623
26,550
161,073
368,503
82,860
285,643
121,063
51,302
69,761
321
218
103
236,970
63,579
173,391
700,496
244,498
455,998
Calendar year
193 4
193 5
193 6
193 7
193 8
193 9
941
8,890
14,833
19,202
30,512
67,804
941
6,025
8,056
12,045
9,092
26,196
2,865
6.777
7,157
21,420
41,608
9
25
69
75
74
60
27
25
24
28
1,968
13,320
27,528
33,345
59,724
157,790
1,968
9,091
11,241
14,960
10,296
32,751
4,229
16,287
18,385
49,428
125,039
15,767
44,655
89,024
130,409
203,970
392,765
15,767
32,331
43,225
74,148
44,288
90,211
12,324
45,799
56,261
159,682
302,554
1940.
1941.
1942.
1943.
1944.
1945.
74,456
23,930
11,154
7,250
1,520
1,874
4,895
12,278
1,612
5,500
404
69,561
11,652
9,542
1,750
1,116
1,874
43
15 I
20
5
2
1
24
7
14
1
1
1
142,389
29,721
19,011
12,535
1,915
5,695
5,657
14,730
1,816
6,637
456
136,732
14,991
17,195
5,898
1,459
5,695
256,373
73,046
60,602
27,372
5,488
12,484
20,667
38,594
5,717
16,917
899
235,706
34,452
54,885
10,455
4,589
12,484
1946.
1947.
1948.
1949.
1950.
292
1,777
3,027
2,558
3,183
292
1.777
3,027
2,558
3,183
1
5
3
4
4
1
5
3
4
4
316
6,966
10,455
4,977
5,766
316
6,966
10,455
4,977
5,766
1,404
10,618
18,311
5,660
6,224
1
1,404
10,618
18,311
5,660
6,224
Banks with deposits of$100,000 or less..................
$100,000 to $250,000.........
$250,000 to $500,000.........
4,955
12,864
15,224
4,308
11,554
10,223
647
1,310
5,001
106
108
60
6,358
17,611
21,409
4,947
13,920
12,462
1,411
3,691
8,947
38,064
83.012
90,910
29,695
65.512
56,777
8,369
17,500
34,133
$500,000 to $1,000,000___
$1,000,000 to $2,000,000. .
$2,000,000 to $5,000,000. .
27,050
30,075
44,792
13,901
8,961
12,421
13,149
21,114
32,371
55
41
27
41,374
59,223
82,902
17,590
11,748
16,279
23,784
47,475
66,623
144,613
190,022
216,299
63,487
54,324
51,756
81,126
135,698
164,543
$5,000,000 to $10,000,000.
$10,000,000 to $50,000,000
More than $50,000,000___
23,680
114,563
25,676
23,680
88,887
10
8
65,407
239,137
32,657
65,407
206,480
170,850
420,402
61,213
170,850
359,189
CORPORATION
14,808
20,934
INSURANCE
50,865
101,275
DEPOSIT
Class of bank
National banks.......................
State banks members F. R.
System.................................
Banks not members F. R.
System.................................
Absorp
tions
FEDERAL
All banks.
Receiver
ships
Florida...............
Georgia..............
Illinois................
Indiana..............
Iowa...................
300
863
4,024
6,208
1,462
203
846
1.242
3,097
385
Kansas...............
Kentucky..........
Louisiana...........
Maryland..........
Massachusetts. .
975
4,614
668
3,132
1,571
482
3,329
668
735
Michigan...........
Minnesota.........
Mississippi........
Missouri............
Montana............
6,308
640
257
4,920
639
139
640
257
4,335
186
Nebraska...........
New Hampshire
New Jersey........
New York..........
North Carolina.
469
118
80,929
67,828
2,387
25,103
10,835
1,156
North Dakota. .
Ohio...................
Oklahoma..........
Oregon...............
Pennsylvania. . .
2,663
1,874
2.444
962
48,720
South Carolina..
South Dakota...
Tennessee..........
Texas..................
Vermont............
298
2,411
1,279
2,761
3.445
Virginia..............
Washington.......
West Virginia...
Wisconsin..........
Wyoming...........
5,053
935
1,458
7,198
202
143
529
1,168
1,078
8
1,526
101
1,168
97
17
2,782
3,111
1,077
491
1,027
9,561
13,236
5,516
217
998
1,637
3,932
498
493
1,285
1,233
7,951
1,652
4,569
3,019
539
3,954
1,652
828
13,530
818
334
7,001
1,007
160
818
334
5,116
215
118
55,826
56,993
1,231
538
296
192,444
138,826
3,282
30,928
13,286
1,421
10,133
1,266
264
1,311
962
38,587
3,830
3,087
4,151
1,114
71,385
136
2,388
1,164
2,468
3,259
162
23
115
293
186
850
2,988
1,942
3,925
3,725
511
4,542
935
10,746
1,538
2,006
9,503
1,991
2,006
5,966
469
1,397
1,610
1,133
1,458
5,096
‘ 861
2,397
1,571
6,169
585
453
2,102
202
34
1
22
8
16
2
20
428
794
3,529
3,231
3,529
3,169
10
5,379
.... _
274
29
7,924
9,304
5.018
1,642
8,094
20,034
30,011
13,666
448
7,773
5,372
12,549
1,676
1,194
321
14,662
17,462
11,990
694
3,997
5,147
34,623
6,087
22,569
9,062
2,254
18,490
6,087
6,643
2,893
16,133
928
2.650
1.651
26,760
849
30,621
1,885
792
31,549
2.650
1.651
34,562
1,488
296
161,516
125,540
1,861
2,224
1,781
520,426
259,905
10,409
101,656
28,440
3,677
14,340
2,278
742
2,492
1,114
57,045
14,109
8,541
10,564
2,105
159,628
’ 43,828
7,349
956
4,690
2,105
115,800
136
2,862
1,620
3,239
3,375
714
126
322
686
350
1,848
12,516
12,358
19,864
11,058
403
11,412
9,993
18,334
8,687
1,445
1,104
2,365
1,530
2,371
629
10,117
1,538
26,063
4,181
8,346
26,896
3,197
2,964
23,099
4,181
8
1,526
'1,078
’ 3,741
3.019
13,370
538
1,552
2,345
1,659
3,537
1,991
2,437
3,169
5,379
15,926
9,062
7,802
639
2,224
6,760
7,585
5,874
8,346
18,739
1,781
418,770
231,465
6,732
8,157
3,197
* Includes only principal disbursements made through December 31. 1950. Excludes estimated additional disbursements of $17,000 and expenses incident to the transactions.
* Data from books of FDIC, December 31, 1950.
* Number of deposit accounts.
DISBU RSEM EN TS
7
1.242
94
841
INSURANCE
237
841
861
7
1,242
DEPOSIT
State
Alabama............
Arkansas............
California..........
Colorado............
Connecticut.. . .
to
CD
Table 121.
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 A b s o r b e d w i t h
1934-1950
280
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 ,
a s s h o w n b y b o o k s o f b a n k a t d a t e o f c l o s in g
Liabilities and capital accounts
Assets
Year
U. S. Gov
ernment
obligations
Other
securities
Loans,
discounts,
and
overdrafts
Banking
house,
furniture &
fixtures
Other
real
estate
Total
Other
assets
Total
deposits
Other
liabilities
R. F. C.
capital
Private
capital
stock
Other
capital
accounts1
$121,942,751 $80,606,724 $74,367,908 $238,530,556 $22,499,020 $59,563,796 $13,663,690 $611,144,445 $531,192,746 $11,672,568 $25,155,114 $38,316,611 $4,807,406
$65,569,217
$5,375,616 $12,293,686
$8,330y507 $140,290,048 $107,374,564 $10,122,023
$5,896,246 $12,254,299 $4,642,916
603,519
698,440
902,215
1,293,683
451,570
273,638
510,479
1,955,104
2,307,696
2,215,638
1,329,865
6,842,116
6,454,624
11,107,699
6,574,061
79,365
459,055
459,700
486,995
412,911
120,319
242,274
734,874
837,966
2,125,022
69,565
1,597,403
273,559
1,010,689
530,408
2,661,327
12,323,948
12,974,788
19,283,376
13,919,907
1,951,992
8,700,485
11,039,098
14,715,286
10,124,255
104,963
2,111,886
93,695
1,132,758
1,213,354
90,000
223.000
788.000
755,250
1,052,900
432,100
950,000
1,069,350
2,498,815
1,059,200
82,272
338,577
-15,355
181,267
470,198
1939
1940
1941
3,329,557
1,018,215
6,462,157
1,052,424
452,574
3,493,431
4,855,519
1,519,677
1,810,346
21,839,422
3,314,762
5,398,218
1,845,901
694,900
91,311
7,221,558
435,526
106,615
3,781,385
523,899
449,458
43,925,766
7,959,553
17,811,536
32,557,805
5,599,438
14,627,158
4,695,820
455,788
298,526
2,249,996
422,750
195,500
2,775,001
1,045,533
1,582,000
1,647,144
436,044
1,108,352
1942
1943
1944
500,513
2,910,826
196,220
119,650
968,872
117,700
52,364
405,011
41,090
777,953
1,846,467
84,030
70,685
772,493
2,300
55,222
414,310
25,030
63,677
5,434
1,601,417
7,381,656
446,774
1,379,526
6,274,311
405,210
1,520
13,582
131
81,750
32,500
4,600
140.000
675.000
27,300
-1,379
386,263
9,533
$1,550,545 $19,258,868 $26,062,312
$164,490
373,772
685,333
21,006
-428,459
-614,475
1,196,087
544,201
795,391
382,882
-8,303
ABSOR PTIONS
$99,322,369 $70,452,646 $58,421,346 $172,961,339 $17,123,404 $47,270,110
Total
$5,303,183 $470,854,397 $423,818,182
1935
1936
1937
1938
1939
404,834
3,109,830
4,717,074
8,133,887
27,451,442
233,395
2,071,296
2,495,254
7,018,796
27,929,162
1,403,807
2,080,059
3,520,186
10,377,037
16,266,036
2,256,417
8,917,554
8,678,629
20,896,236
44,289,765
608,467
1,277,605
562,181
2,873,257
5,142,882
1,184,658
926,359
3,913,009
15,459,743
10 808
325,362
186,497
2,380,489
1,049,600
4,917,728
18,966,364
21,086,180
55,592,711
137,588,630
1940
1941
1942
1
CMQ
IJ74
o
1944
30,227,874
3,167,243
4,159,617
1,216,987
368,633
17,183,076
801,273
3,547,766
2,903,771
585,251
17,987,527
2,835,309
2,275,392
555,383
230,282
60,687,428
8,178,623
7,731,137
1,675,734
367,086
4,553,388
798,028
759,861
274,331
22,840,095
1,014,582
1,824,586
15,844
67 428
458,831
197,669
354,362
34,523
32,108
153,938,219
16,992,727
20,652,721
6,676,573
1,650,788
4,228,816
16,287,262
18,384,923
49,428,383
125,038,946
140
19,769
262,651
168,674
679,659
310,000
609,200
3,726,463
6,103,500
315,000
1.664.000
1,808,400
2,697,650
6.381.000
136,731,549
14,990,768
17,195,146
5,897,691
1,459,091
157,766
57,508
584
7,186,655
289,000
913,400
96,000
8,666,162
1,111,250
1,748,200
300,000
200,000
5,695,202
6,391,915
83,603
4,609
2,435,488
55,504
2,440,786
1,371,925
1945
316,402
351,169
2 369
425
30,236
77,049
114,326
1946
126,764
1
A
K
O
Q7A
10/i n
6,965,742
6,797,738
215
l,40£to lU
Ou,OoU
318,322
2,769,014
2,201,186
1Q/i Q
119
onn
10,454,520
10,360,196
156,808
19,196
XlAyAU
U
2,015,414
178,720
6,864,201
1,013,657
15,000
5,959
4,977,235
4,885,620
5,853
61,705
217,903
1,336,785
1949
647,349
2,616,025
9,650
197,835
*5,766,506
4,005,118
26,030
89,643
1,965,624
40,500
1,548,158
1950
335,163
1 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit.
2 NoFRASER
insured bank has been placed in receivership since 1944.
Digitized for
8 As of December 31, 1950.
365,213
331,500
24,767
10,000
197,500 -365,504
375,000 -469,324
142,500 -255,074
114,150 -2,083,023
CORPORATION
185,056
1,974,181
2,194,712
2,238,648
1,610,297
INSURANCE
1934
1935
1936
1937
1938
DEPOSIT
RECEIl/ERSHIPS*
Total
$22,620,382 $10,154,078 $15,946,562
FEDERAL
Total
Cash and
due from
banks
Table 122.
N a m e , L o c a t io n , F e d er a l D eposit I n su r a n c e C orpo r atio n D is b u r s e m e n t , an d A ssets a n d L ia b il it ie s of
I n s u r e d B a n k s A bso rbed w it h th e F in a n c ia l A id of t h e C o rpo r atio n D u r in g 1950
Case
number
Name and location
Number of
accounts1
Class of bank
Disbursement
Absorbing bank
Date
Amount*
DEPOSIT
The Westphalia State Bank,
Westphalia, Michigan
State bank, not
member F. R. System
1,039
April 3, 1950
$967,959
168
The Bank of Aurora,
Aurora, North Carolina
State bank, not
member F. R. System
2,447
July 24, 1950
938,698
Guaranty Bank and Trust Company,
Greenville, North Carolina
169
The Farmers First National
Bank of Minooka,
Minooka, Illinois
National bank
953
August 14, 1950
245,368
The First National Bank of Joliet,
Joliet, Illinois
170
First National Bank in Cecil,
Cecil, Pennsylvania
National bank
1,785
October 9, 1950
1,030,114
Cash and
due from
banks
U. S. Gov
ernment
obligations
Other
securities
Loans,
discounts,
and
overdrafts
The First National Bank of McDonald,
McDonald, Pennsylvania
Liabilities and capital accounts
Banking
house,
furniture &
fixtures
Other
real
estate
Other
assets
Total
Total
deposits3
Other
liabilities
Total
$1,548,158
$335,163
$89,643
$1,965,624
$40,500
$26,030
$4,005,118
$5,766,506
$197,835
167
168
169
170
108,786
120,680
1,154,008
164,684
115,990
100,173
25.000
94.000
52,692
32,001
2,250
2,700
461,246
992,095
146,281
366,002
5.000
22,501
4.000
8,999
707
23,955
744,421
1,291,405
1,331,539
637,753
1,126,402
991,329
1,403,375
2,245,400
197,835
1,368
R. F. C.
capital
$9,650
9,650
Private
capital
stock
Other
capital
accounts4
$114,150 $-2,083,023
25.000
14,150
25.000
50.000
DISBU RSEM EN TS
Assets
Case
num
ber
Maynard-Allen State Bank,
Portland, Michigan
INSURANCE
167
-406,981
78,441
-96,836
-1,657,647
1 Number of accounts as of December 31, 1950, from books of FDIC.
2 As of December 31, 1950; does not include preliminary and field liquidation expenses or advances for the protection of assets incident to the transaction.
* As determined by FDIC agents after adjustment of books of bank for liabilities discovered subsequent to closing.
4
Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, after adjustment for liabilities discovered subsequent to closing. Minus (-) indicates net
operating deficit.
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 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 F i n a n c i a l l y A id e d b y t h e C o r p o r a t i o n ,
AS SHOWN BY BOOKS OF FDIC, DECEMBER
(Amounts in thousands of dollars)
1934-1950
31, 1950
Absorptions
Receiverships
All banks
Estimated
Re
Estimated
Re
Re3
Estimated coveries
Estimated coveries
addi
addi
addi
coveries
umber Estimated
Estimated
FDIC
Estimated Number
Estimated Number
FDIC
FDIC
tional
to
of
tional
to
of
tional
to
of
losses2
disburse December
losses'
2
disburse
disburse
re
banks
re
December
banks
re
December
anks
ment
ment1
ment1
31, 1950 coveries
30, 1950 coveries
30, 1950 coveries
244,225
2,065
26,930
245
87,061
72,489
171
14,401
170
186,159
171,736
1,894
12,529
20
395
88,984
184,236
77,496
166,729 .
2,065
9,423
17,507
5
240
18,282
68,779
13,711
58,778
171
4,400
10,001
15
155
70,702
115,457
63,785
107,951
1,894
5,023
7,506
207
2,732
2,415
3,564
941
6,025
8,056
12,045
734
4,273
6,596
9,503
207
1,752
1,460
2,542
1
27
25
2,865
6,777
7,157
1,885
5,822
6,130
2,432
7,422
4,145
610
9,092
26,208
4,895
12,278
7,908
20,038
4,313
12,065
1,184
6,004
582
213
24
28
24
7
21,420
41,608
69,561
11,652
20,172
40,187
65,212
11,255
683
124
41
1,612
5,505
404
1,320
5,376
363
292
124
41
14
1
1
1
9,542
1,750
1,116
1,874
9,151
1,750
1,116
1,874
1
5
3
4
4
292
1,777
3,027
2,558
3,183
292
1,346
2,314
2,143
1,087
Year
193
193
193
193
4
5
6
7
9
25
69
75
941
8,890
14,833
19,202
734
6,158 .
12,418
15,633
193
193
194
194
8
9
0
1
74
60
43
15
30,512
67,816
74,456
23,930
28,080
60,225
69,525
23,320 .
194
194
194
194
2
3
4
5
20
5
2
1
11,154
7,255
1,520
1,874
10,471
7,126
1,479
1,874 .
194
194
194
194
195
6
7
8
9
0
1
5
3
4
4
292
1,777
3,027
2,558
3,183
.
292
1,346
2,314
2,143
1,087
169
786
307
16
41
736
124
697
374
1,360
166
5
3
786
980
955
1,022
1,248
1,418
3,563
397
391
307
16
41
736
124
697
374
1,360
1 Differs from amount of principal disbursements as given in Table 120 by including unpaid insured deposits, expected to result in additional FDIC disbursement of $17 thousand
($12 thousand in 1939 and $5 thousand in 1943).
^
u
u
*2 Sum of losses in the cases in which the disbursement by the Corporation to protect depositors was not repaid in full. Excludes interest or gains in cases m which the disbursement
by the Corporation was fully recovered and gains or losses on assets purchased by the Corporation from receivers of closed banks. For the net loss to the Corporation ($514 thousand
less than here shown), see the item, “ Losses’ in Table 16, p. 28.
CORPORATION
273,220
INSURANCE
415
Status
Active..............
Terminated
DEPOSIT
All.banks, total.
FEDERAL
Liquidation status
and year of
receivership or
absorption
282
Table 123.
INDEXES
I n d e x T o F e d e r a l D e p o s it In s u r a n c e A c t
Actions, power to maintain and defend..............................
Administration of Corporation’s affairs...............................
Admission to insurance, factors considered.........................
Advertising by insured banks, regulated.............................
Annual report.........................................................................
Agents for service of process................................................
Application for admission to insurance...............................
Assessment:
Assessment net income defined.....................................
Assessment base:
Assumed deposits of newly insured bank............
Computation..........................................................
D ays........................................................................
Deductions and exclusions:
Advices of deposit charge for cash letters...
Cash collateral................................................
Cash items, methods of deduction................
Drafts on bank accounts...............................
Reciprocal insured bank balances.................
Record o f.........................................................
Redeposited trust funds.................................
Assumed deposits..........................................................
Cash items.....................................................................
Certified statement, (this index)
Credit to insured banks................................................
Default, dividend payment or asset distribution
prohibited...................................................................
Duty of bank to p a y .....................................................
Limitation of actions:
Amount due and excess payments.......................
Effect of fraud................... ....................................
Newly insured bank’s computation.............................
Overpayment.................................................................
Penalty, national bank’s failure to p a y .......................
Process of collection, Board may define......................
R ate................................................................................
Suit to recover...............................................................
Time of payment...........................................................
Trust funds in other insured banks.............................
Uncollected items, Board may define..........................
Assumption, consolidation and merger transactions:
Approval of Corporation...............................................
Assessment.....................................................................
Loans to facilitate..........................................................
Notice to depositors......................................................
Termination of insured status......................................
With diminished capital or surplus..............................
With noninsured bank or institution...........................
Attachment against Corporation.............. .........................
Audit of financial transactions of Corporation...................
Bank directors, officers and employees convicted of
certain crimes, eligibility..................................................
Banking or checking accounts of Corporation....................
Board of Directors of Corporation:
Appointment..................................................................
Appointive members.....................................................
Bipartisan.......................................................................
Certificate of member...................................................
Citizenship requirement................................................
Chairman........................................................................
Comptroller of Currency...............................................
285
Section
Page
9 ............. ....... 115-116
2,9,10(a) . . 105, 116-117
6 .............. ............ 109
18(a)
128-129
17(a)........ ............ 127
9 .............. ............ 116
5 .............. ............ 109
7 (d )........ ............
Ill
7(c),8(d) . . . . I l l, 115
7(a)........ ............ 109
7 (a ) ........
. 109-110
7 (a )(2 )... ........... 110
7 (a )(2 )... ........... 110
7 (a )(1 )..,. . 109-110
7 (a )(2 )... ........... 110
7 (a )(1 )... ........
109
7 (a)........ ............ 110
7(a) (l)(i). ........... 109
7(c),8(d)..........111,115
7 (a )(1 )... ..........
109
7 (d )........ ............
Ill
18(b)........ ............ 129
7 (b )........ ........ 110-111
7(g ) ....... ............ 112
112
7 (g) ....... .........
7 (c) ....... .........
Ill
7(e) ( g ) . . . .... I l l , 112
7 (h ) ...... .........
112
7 (a )(1 )... ..........
110
7(a) ....... ............ 109
7 (g)........ ............ 112
7(a)........ ............ 110
7(a) ( l )(i ) . ........... 109
7 (a )(1 )... ........... 110
18(c)........ ............ 129
7(c),8(d) . . . .. I l l, 115
13(e)......... ............ 126
8(a) ( d ) ... . . . 113-115
8 (d ) ...... .........
115
18(c) ....... ............ 129
18(c) ....... .........
129
9 ........... ............ 115
17(b) ( c ) . . .
127-128
19.............. ............ 131
13(b) ......... ........124-125
2 ..............
2 ..............
2 ..............
2 ..............
2 ..............
2 ..............
2 ...........
............ 105
............ 105
............ 105
, , , 105-106
............ 105
............ 105
......... 105
286
F E D E R A L DEPO SIT IN SU R AN C E CORPO R ATIO N
Section
Board of Directors of Corporation:—Continued
Employment by insured bank or Federal Reserve
bank prohibited..........................................................
Hearings before..............................................................
Number of members......................................................
Ownership of insured bank stock prohibited..............
Powers:
Adopt bylaws.........................................................
Appoint agents for service of process...................
Appoint claim agents.............................................
Appoint examiners.................................................
Appoint officers and employees............................
Bond, requiring from employees............... ...........
Branch bank, approve establishing or moving of
Define cash items, process of collection and
uncollected items................................................
Define time and savings deposits.........................
Fix interest rates on deposits................................
Fix period for deducting items from assessment
base.....................................................................
Fix time for assessment payments.......................
Main office of insured bank, approve moving of
Prescribe form of certified statement...................
Prescribe manner of reporting and depositing
trust funds......................................................
Prescribe for payment of deposits before maturity
Subpena..................................................................
Qualifications..........................................................
Senate confirmation...............................................
Term of office.........................................................
Vacanc}^ in office of Chairman..............................
Vacanc3r or absence of Comptroller......................
Bonds, notes, debentures and obligations:
Exemption from taxation..............................................
Preparation of forms.....................................................
Borrowing power of Corporation from Treasury................
Branch bank, approval of Corporation to establish or move
Burglary, bank indemnity insurance against......................
Bylaws....................................................................................
Capacity to sue and be sued................................................
Capital stock, reduction by insured bank...........................
Certified statement:
Form o f...........................................................................
Injunction to compel filing...........................................
Newly insured bank’s first statement..........................
Penalty for failure to file:
General........ .........................................................
National and insured national nonmember..........
Time for filing................................................................
Verification.....................................................................
Change in location of branch or main office, approval of
Corporation........................................................................
Claim agent, powers o f............. ,...........................................
Closed banks, loans to or purchase of assets......................
Closed banks, rights of depositors and creditors................
Comptroller of Currency......................................................
Congress, annual report t o ...................................................
Consolidation (see Assumption), continuance of insured
status..................................................................................
Continuation of insured status.............................................
Contracts, power to make....................................................
Conversion:
Approval of Corporation...............................................
Continuance of insured status......................................
Creation of Corporation........................................................
Page
2 ............... .
.. 105
8(a), 10(c) (d)
113-114,117-118
2 ....................... . . 105
2 ....................... . 105-106
9 .......................
9 .......................
10(b)..................
10(b) ..................
9 .......................
9 .......................
18(d)..................
..
..
..
..
..
..
..
116
116
117
116
116
116
130
7 (a )(1 )............. . ,
18(g).................. . .
18(g).................. ..
110
130
130
7(a)(1) .............
7(a)..................
18(d)..................
7(a)..................
..
..
..
..
110
110
130
110
7 (i)...................
18(g)..................
10(c) (d ).............
2 .......................
2 .......................
2 .......................
2 .......................
2 .......................
,. 113
.. 131
117-118
. . 105
. . 105
. . 105
. . 105
. . 105
15.......................
16.......................
14.......................
18(d)..................
18(e)...................
9 .......................
9 .......................
18(c)..................
. . 127
. . 127
. . 126
, . 130
, . 130
, 116
. 115
129-130
7 (a).................. . .
7 (f)................... .
7 (c).................. .
18(h)..................
7(h )..................
7 (b )..................
7 (b )..................
110
112
Ill
.. 131
. . 112
. 110
110-111
18(d).................. , 130
117
10(b)..................
13(c)(6).............. 125-126
11(g).................. , . 121
2 .......................
105
17(a).................. , . 127
4 (b ).................. , 108
4(a) (b)............. ■ 108
9 ....................... . . 115
18(c).................. .
4 (b ).................. ,
1 ................... ..
129
108
105
287
LNCE
IN D E X TO F E D E R A L D EPOSIT IN SU R AN
C E AC T
Page
Section
Definitions:
Board of Directors.........................................................
Branch............................................................... ............
Closed for inability to meet demands of depositors...
Deposit............................................................................
District bank..................................................................
Insured bank..................................................................
Insured deposit...............................................................
Mutual savings bank.....................................................
National member bank..................................................
National nonmember bank...........................................
Net assessment income..................................................
New bank........................................................................
Noninsured bank............................................................
Public funds....................................................................
Receiver..........................................................................
Savings bank..................................................................
State bank......................................................................
State member bank........................................................
State nonmember bank.................................................
Transferred deposit........................................................
Trust funds.....................................................................
Deposit of public funds.........................................................
Depositary and financial agent, Corporation’s status as..
Depositors’ rights:
State laws.......................................................................
Subrogation of Corporation..........................................
Deposits (see Insurance of deposits)
Deposits by Corporation subordinated to rights of de
positors and creditors........................................................
Deposits in insured banks:
Deferred or restricted....................................................
Defined............................................................................
Interest on demand deposits prohibited......................
Interest rate....................................................................
Payment before maturity..............................................
Directors (see Board of Directors)
Discharge from liability for insured deposits......................
Discrimination against nonmember bank prohibited.........
Dividends:
On bank stock or distribution of assets, when pro
hibited .........................................................................
Payment on deposits subject to limitation.................
Employees, officers and directors of insured banks, con
victed 0 1 crimes, eligibility................................................
Examination of banks:
District, national, and State member...........................
Examiners’ powers.............................. ..........................
Failure to comply with recommendations, penalty. . .
State nonmember. . . .............. .....................................
State nonmember, initial examination.........................
Examination reports, exchanged with certain Federal and
State agencies.....................................................................
Examiners, appointment and duties....................................
Execution against Corporation.............................................
Exemption from taxation.....................................................
Facilities of Federal Government, use by Corporation___
Factors considered in admission to insurance, new branches
and moving branch or main office....................................
Federal Reserve System, effect of termination of member
ship on insured status.......................................................
Financial agent for Government..........................................
Financial transactions, commercial audit by General
Accounting Office o f..........................................................
Forfeiture of rights, national bank......................................
3(k )............
3 (o )............
11(b)............
3 (1 )............
3 (c)............
3(h )............
3(m )...........
3 (f).............
3 (d )............
3(e)............
7 (d )............
3 0 ).............
3(h )............
3 (m )...........
........
........
........
........
.......
........
........
........
........
107
108
119
107
106
107
107
106
106
106
111
3 (g )............
3 (a )............
3 (b )............
3 (b )............
3(n )............
3 (p )............
3(m ) .........
1 3(b) ..........
........ 107
, , ,. 107
. . . 107-108
, 107
........ 106
106
.......
106
106
........ 108
.......
108
107
124-125
1 1 ( g ) ..........
1 1 ( g ) ...............
......
, ,
121
121
13(c) ..........
......
125
1 1 ( a ) ..........
......
3(j)..........
3(1)..........
,
18(g) .......... ......
.,.
18(g)..........
18(g)............ ........
119
107
130
130
131
12(b)............ . . . 123-124
20.................. ........ 131
18(b)............ ........
18(g)............ ......
129
130
19..............
131
...
10(b) ..........
116-117
10(b) .......... . . . 116-117
130
18(f)............. ......
10(b) .......... . . . 116-117
5 .............. , .,.
109
10(f).............
10(b)............
9 ..................
.,
.
1 5 ......................
10(a)............
118
116
116
127
116
6,18(d) , , . .. 109, 130
8 (b )............ ........
13(b)............ ......
114
125
17(b)(c)(d).., . . . 127-128
7 (h ) ......... . . . 112-113
288
F E D E R A L DE PO SIT IN SU R AN C E CORPORATION
Funds of Corporation, deposit o f .........................................
General Accounting Office, commercial audit of Corpora
tion’s financial transactions..............................................
Guarantee by Corporation of assumption and assets pur
chased by insured banks...................................................
Hearing before Board of Directors and hearing officers. ..
Indemnity insurance, requiring from insured banks..........
Insurance of deposits:
Admission to insurance..................................................
Bank closed for inability to meet demands of de
positors .......... .............................................................
Banks closing prior to effective date............................
Banks insured................................................................
Capacity in which deposits maintained.......................
Certificate of Comptroller of Currency and Board of
Governors of Federal Reserve System.....................
Consolidation, merger or conversion, insurance
continued....................................................................
Deposits payable outside U.S., D.C. and any U.S.
Territory.....................................................................
Discharge of Corporation’s liability to pay.................
Deposits covered............................................................
Deposit of public funds.................................................
Factors considered.........................................................
Insurance fund...............................................................
Liability of depositor to closed bank...........................
Maximum amount.........................................................
New national bank to assume insured deposits in
closed bank.................................................................
Owner of insured deposit, recognition o f.....................
Payment of insured deposits in closed insured bank..
Proof of claim for insured deposit................................
Public funds....................................................................
Right in which deposit maintained..............................
Rights of depositors and creditors, State laws............
Separability of provisions relating t o ...........................
Subrogation of Corporation upon payment of insured
deposit . .................... . . . ......... .................................
Termination (see Termination of insured status).......
Time for filing claim for insured deposit.....................
Transferred insured deposits in new national bank or
another insured bank.................................................
Trust funds.....................................................................
Withholding payment of insured deposit....................
Insured status, continuation on termination......................
Interest by Corporation on its repaid capital.....................
Interest on deposits (see Deposits in banks).......................
Investment of Corporation’s moneys...................................
Jurisdiction of Federal courts...............................................
Limitation of actions.............................................................
Loans and purchases of assets, guarantees and deposits by
Corporation:
Agreements diminishing Corporation’s rights in assets
acquired b y .................................................................
Closed insured banks, to reopen...................................
Closing, to prevent............ ............................................
Court approval, when required....................................
Prevent loss to Corporation and facilitate merger,
consolidation or assumption. . . . . ...........................
Receivers and liquidators of closed insured banks.. . .
Mails, free use o f..................................................................
Main office, approval of Corporation to move....................
Management of the Corporation..........................................
Section
Page
13(b)...................... 124
17(b)(c)(d)........ 127-128
13(e)...................... 126
8(a), 10(c) (d)
.. .113-114,117-118
18(e)...................... 130
4(a),5 ........108-109,122
11(b)......................
11(a)......................
4,5,11 (i) . . 108-109,
3(m ),7(i).. 107-108,
119
119
122
113
4 (b )......................
108
4 (b )..................108-109
3 (1 )...................... 107
12(b)...................... 123
3(1),11(a).........107,119
3 (m ).................107-108
6 ........................... 109
11(a)......................
119
3 (m), 12(d)___ 107,124
3(m),11(a)----- 107,119
11(h)...................... 121
3(m), 12(c). 107-108,124
11(f)......................
120
11(f),12(e).. 120-121,124
3(m )................. 107-108
3(m )..................... 107
11(g)...................... 121
131
21...........................
11(g)......................
121
12(e)......................
124
11(f), 12(b).........120, 123
7 (i)....................... 113
ll(f)(g)» 12(d)
120-121, 124
4(b),8 ___ 108,113-114
13(f)....................... 126
18(g).......... ........... 130
13(a)...................... 124
9,10(c),(d)........115-118
7(g),11(g),12(e)
. . . 112, 121, 124
13(e)...................... 126
13(c)...................... 125
13(c)......................
125
13(d)..................125-126
13(e)...................... 126
13(d) (e ).............125-126
10(a)...................... 116
18(d)...................... 130
2,9,10(a).. 105,115, 116
IN D E X TO FE D E R A L DE PO SIT IN SU R AN C E ACT
Merger (see Assumption) continuance of insured status...
National banks:
Insurance of deposits...................... . ............................
Special examination of by Corporation.......................
New national bank:
Assumption of insured deposits in closed bank..........
Assumption of liabilities by insured bank...................
Exempt from taxation...................................................
Funds from Corporation...............................................
Management...................................................................
Organization...................................................................
Sale of stock in ...............................................................
Termination of status as new bank..............................
Winding up affairs o f.....................................................
Nondiscriminatory provision................................................
Notice to depositors of:
Assumption of deposits.................................................
Insured deposits in closed bank....................................
Termination of insurance..............................................
Oaths, power to administer..................................................
Obligations and expenses of Corporation............................
Officers, directors and employees of insured banks, con
victed of certain crimes, eligibility...................................
Official sign:
Display by insured bank...............................................
Penalty for failure to display........................................
Payment of interest on deposits by banks, regulated........
Payment of insured deposits:
Discharge of Corporation..............................................
Dividends, Corporation’s right to receive...................
Liability of depositor to bank.......................................
Limitation on time for claiming...................................
Method of payment.......................................................
New national bank to assume deposits........................
Notice to depositor........................................................
Proof of claim.................................................................
Recognition of owner whose name or interest undis
closed on bank’s records............................................
Rights of depositors and creditors, State law.............
Subrogation of Corporation to depositor’s rights........
Powers of Corporation (see Board of Directors also)........
Private banks.........................................................................
Process, agents for service o f................................................
Public funds, deposit o f........................................................
Purchase of assets (see Loans, etc.)
Receivers:
National banks:
Assets as security for loan from Corporation----Bond not required for national or District bank.
Corporation to be appointed as receiver of..........
Duties, rights and powers of Corporation as. . . .
Fees, compensation and expenses.........................
Payment of dividends............................................
Power of Corporation to act as....................................
Sale of assets to Corporation b y ..................................
State banks:
Appointment of Corporation as receiver of.........
Rights and powers of Corporation.......................
Records of Corporation, reproduction, use as evidence and
destruction.........................................................................
Report to Congress................................................................
Reports of condition:
Access of Corporation to reports of certain Federal
and State agencies......................................................
Banks must make..........................................................
289
Section
Page
4 (b )..................108-109
4(b),5 ............... 108-109
10(b)...................... 117
11(f) (h )(j)..........120-122
11(1)...................... 123
11 (i)....................... 122
l l ( j ) ....................... 122
l l ( i ) ...................121-122
l l ( i ) ....................... 121
11 (k )..................122-123
l l ( k ) ...................... 123
11(1)...................... 123
20........................... 131
8(d )...................... ... 115
12(e)...................... ... 124
8 (a )...................... ... 113
10(b) ( c ) .................... 117
10(a)......................... 116
19...........................
131
18(a).................. 128-129
18(a)...................... 129
18(g).................. 130-131
1 2 (b )..................123-124
11(d) ( g ) .............120-121
3(m),12(d) ....1 0 7 , 124
12(e)...................... 124
11(f)...................120-121
11(f) (h )(j).. 120,121,122
12(e)......................
124
11(f),12(e).........120, 124
3(m),12(c). 107-108,124
11(g)...................... 121
11(g)...................... 121
9 ........................115-116
3(a)....................... 106
9 ...........................
116
3(m )..................... 108
13(c) (e)..............125, 126
12(a)...................... 123
8(b),11(c)........ 114,119
ll(d)(g),12(a), 13(d)
.119-121,123,125
12(a)...................... 123
11(d)...................... 120
9 ...........................
116
13(c) (e)..............125, 126
11(e)......................
11(e)......................
120
120
10(e) (g)..............118-119
17(a)...................... 127
10(f)......................
10(e)......................
118
118
290
F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
Section
Reports of condition:—Continued
Furnished to certain Federal and State agencies........
Penalty for failure to make or publish........................
Publication.....................................................................
Reports of examination:
Access of Corporation to reports of certain Federal
and State agencies........................................ .............
Furnished to certain Federal and State agencies........
Reduction of capital or surplus in conversion, merger,
consolidation and assumption transactions.....................
Retirement of capital, Corporation’s approval...................
Rules and Regulations, Board may prescribe.....................
Sale of assets by insured banks............................................
Seal..........................................................................................
Separability provision...........................................................
Signs, display of official signs...............................................
State banks:
Insurance of deposits.....................................................
Examination o f...............................................................
Subpena:
Books and records may be subpenaed.........................
Powers.............................................................................
Refusal to obey..............................................................
Witness fees....................... .............................. ............
Subrogation, rights of Corporation on payment of insured
deposits...............................................................................
Suits:
By or against Corporation............................................
Corporation as receiver.................................................
Surety bonds, Corporation may require..............................
Surplus, reduction by insured banks.......... .........................
Stockholder’s liability, waiver by Corporation...................
Tax exemption of Corporation.............................................
Termination of insured status :
Advertising deposits are insured after.........................
Basis for........ . ............. .................................................
Ceasing to receive deposits...........................................
Continuation of insurance of old insured deposits.. ..
Duties and obligations of bank after...........................
Effect on membership in Federal Reserve System___
Effect on national bank, Corporation as receiver___
Hearing on ......................................................................
Involuntary....................................................................
Liabilities assumed by another bank...........................
Notice of assumption of liabilities................................
Notice of termination by Corporation and bank........
Notice to bank of intention to terminate....................
Order of Board terminating insured status.................
Powers of Corporation over bank after. . ...............
Statement to Federal or State supervising authority
of basis for..................................................................
Termination of membership in Federal Reserve System
Voluntary.......................................................................
Transfer of assets to noninsured bank or institution.........
Trust companies not receiving deposits..............................
Trust funds, insurance o f......................................................
Unclaimed insured deposits..................................................
Use of information, services and facilities of Federal
Government........................................................................
Witness fees............................................................................
10(f).......................
10(e)......................
10(e)......................
118
118
118
10(f)......................
10(f).......................
118
118
18(c).............. 129-130
18(c).................. 129-130
9 ...........................
116
13(c)(d),18(c). ..125, 129
9 ................. .........
115
21.................
131
18(a).................. 128-129
4(b),5 ...............108-109
10(b)..................116-117
10(c) (d )............. 117-118
10(b) (c) ( d ) ........ 116-118
10(c) ( d ) ............. 117-118
10 (c)...................117-118
11(g)......................
121
9 ................. ...115-116
9 ...........................
116
9,18(e)..............116,130
18(c)...................... 129
11(g)...................... 121
15...........................
127
8(a)...................... 114
8(a)(c)(d). 113-114, 115
8 (c)......................
115
8(a) (c)(d )____ 114, 115
8(a) (c)(d )........114,115
8 (b )..................114-115
8 (b )...................... 114
8(a)...................... 114
8 (a )(c ).... 113-114,115
8 (d )...................... 115
8 (d )...................... 115
8 (a).................. 113-114
8 (a).................. 113-114
8(a).................. 113-114
8(a) (c)(d )........ 114, 115
8 (a )..................113-114
8 (b )..................114-115
8(a) (b)(d)........113-115
18(c)...................... 129
3(a),4(b),5,8(c)
106, 108, 109, 115
7 (i)....................... 113
12(e)...................... 124
10(a).......... ........... 116
10(c).................. 117-118
29 1
IN D E X TO R E L A T E D L A W S
I n d e x T o L a w s A p p l ic a b l e T o Fe 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 a n d In s u r e d B a n k s
Source
Advertising; false use of words Federal and Deposit
Insurance..................................................................... 18 U.S.C.
Acknowledgments or oaths, false.................................. 18 U.S.C.
Bank officers or employees, embezzlement or theft... 18 U.S.C.
Bank robbery and incidental crimes.............................18 U.S.C.
Bankruptcy funds, deposit o f........................................ 11 U.S.C.
Bribery:
Acceptance of loan or gratuity by bank examiner 18 U.S.C.
Offer of loan or gratuity to bank examiner..........18 U.S.C.
Claims against Government:
False.........................................................................18 U.S.C.
Officers or employees interest in ............................18 U.S.C.
Confidential information:
Disclosure by bank examiner................................ 18 U.S.C.
Disclosure generally................................................18 U.S.C.
Congress, Member of
Compensation for services..................................... 18 U.S.C.
Contracts b y .......................................... .................18 U.S.C.
Contracts of Government employees with...........18 U.S.C.
Counterfeiting bonds or obligations of Federal
Deposit Insurance Corporation................................. 18 U.S.C.
Default in payment of circulating notes, national
bank............................................................................. 12 U.S.C.
Depositaries of public money, insured banks as..........12 U.S.C.
Deposit of bankruptcy funds........................................ 12 U.S.C.
Deposit of Indian funds.................................................25 U.S.C.
Deposit of Postal Savings funds................................... 39 U.S.C.
Embezzlement or misapplication of funds by
officers or employees.................................................. 18 U.S.C.
Examiners:
Disclosure of confidential information..................18 U.S.C.
Loans or gratuities:
Offer to examiners...........................................18 U.S.C.
Acceptance by examiners............................... 18 U.S.C.
Gifts for procuring.......................................... 18 U.S.C.
Performing other services.......................................18 U.S.C.
Theft b y .................................................................. 18 U.S.C.
False and fraudulent acts:
Acknowledgment of oaths......................................18 U.S.C.
Advertising.............................................................. 18 U.S.C.
Certificates...............................................................18 U.S.C.
Certification of checks............................................18 U.S.C.
Entries by Corporation employees........................18 U.S.C.
Entries or statements generally.............................18 U.S.C.
Entries, reports, and transactions by bank
employees.............................................................18 U.S.C.
Impersonation of officer of Government.............. 18 U.S.C.
Papers, possession of to defraud Government . . . 18 U.S.C.
Statements to Corporation.................................... 18 U.S.C.
Use of official seal, fraudulent. ............................. 18 U.S.C.
Foreign banks; insured banks receiving property o f . . 12 U.S.C.
Forgery of bonds or obligations of Federal Deposit
Insurance Corporation............................................... 18 U.S.C.
Indian tribe community funds, deposit o f................... 25 U.S.C.
Insured banks, depositaries of public money...............12 U.S.C.
Mail, use of to defraud or swindle........ ...................... 18 U.S.C.
National banks, default in payment of circulating
notes.............................................................................12 U.S.C.
Officers or employees:
Claims against Government, interested in ...........18 U.S.C.
False certificates......................................................18 U.S.C.
709
1016
656
2113
101
131-132, 140
143
138-139
146
151
218
217
134
134
287
283
136
135
1906
1905
145
145
281
431
432
135
136
136-137
493
137
192
265
150-151
149-150
151
152-153
152
101
162(a)
759
657
139
1906
145
217
218
220
1909
655
134
134
132, 134-135
145-146
138
1016
709
1018
1004
1006
1001
143
131-132, 140
143
141
142
141
1005
912
1007
1017
632
141-142
140
141
142-143
143
149
493
162(a)
265
1341
137
152-153
149-150
144
1002
192
150
283
1018
135
143
292
F E D E R A L DEPO SIT IN SU R AN C E CORPORATION
Source
Officers or employees:—Continued
False entries................................... ......................
Matters connected with former duties...............
Official insignia, identification cards, etc., misuse o f .
Official seal, fraudulent use o f . ..................................
Overvaluation of securities to influence action..........
Perjury...........................................................................
Postal savings funds, deposit o f ..................................
Principals in crim es.....................................................
Public money:
Depositaries of, insured banks a s........................
Theft o f ..................................................................
Public property or records, theft o f ............................
Robbery. . ....................................................................
Secret Service, powers o f .............................................
Securities:
Defined..................................................................
Receipt of stolen..................................................
Transportation of stolen......................................
Subornation of perjury................................................
Theft:
Page
18 u.s.c.
18 u.s.c.
18 u.s.c.
,18 u.s.c.
18 U.S.C.
18 u.s.c.
39 u.s.c.
18 u.s.c.
1006
284
701
1017
1007
1621
759
2
142
136
139
143
143
144
152
133
12 u.s.c.
18 u.s.c.
18 u.s.c.
18 u.s.c.
18 u.s.c.
265
641
641
2113
3056
149-150
137
137
146
148-149
18 u.s.c.
18 u.s.c.
18 u.s.c.
18 u.s.c.
2311
2315
2314
1622
147
148
147-148
145
18 u.s.c. 655
138
138-139
139
139
137-138
137
143-144
18 u.s.c. 656
18 u.s.c.
18 u.s.c.
18 u.s.c.
18 u.s.c.
18 u.s.c.
657
657
654
641
1505
G e n e r a l In d e x
Page
Absorptions of insured banks with financial aid of the Corporation {See also
Banks in financial difficulties):
Assets and liabilities at date of absorption, 1934-1950................................. 280-281
Banks cited for unsafe and unsound practices................................................ 18-20
Deposits protected............................................................................... 10-13, 278-281
Disbursements by Corporation.......................................10-12, 14, 278-279, 281, 282
Legislation. See Index to Federal Deposit Insurance Act, pages 285-290.
Loans made and assets purchased by Corporation.................... 6, 10-11, 14, 28, 31
Losses incurred by Corporation......................................................11-15, 26, 28, 282
Name and location of banks absorbed, 1950....................................................
281
Number of banks absorbed.............................................10-11, 14, 20, 278-279, 282
Number of depositors affected b y ...............................................10-12, 278-279, 281
Recoveries bv the Corporation on assets purchased or held as collateral
...............................................................................................14-15, 28, 31, 282
Sources of data....................................................................................................
277
Absorptions of operating banks, 1950.................................................................. 216-217
Admission to insurance:
Applications approved......................................................................... ....... 20-21, 216
By class of bank, 1950..................................................................................... 216-217
Applications from banks:
For admission to insurance......................................................................... 20-21, 216
For approval of establishment of branches......................................................
21
Appraised value of assets. See Assets and liabilities of insured commercial
banks, examiners’ appraisal.
Assessment on insured banks for deposit insurance:
Computation of assessment (See Index to Federal Deposit Insurance
Act, pages 285-290).
Income of the Federal Deposit Insurance Corporation..................23-24, 26, 30-31
Summary of change in assessment provision...................................................
5-6
Assets and liabilities of closed banks. See Receivership, insured banks placed in.
Assets and liabilities of insured commercial banks, examiners’ appraisal (See
also Substandard assets of insured commercial banks):
Banks examined in 1941-1950......................................................................... 242-243
Banks examined in 1950, grouped by amount of deposits............................244-245
Banks examined in 1950, grouped by FDIC district and State...................246-247
Change in recent years....................................................................................... 39-40
Definitions of terms: adjusted liabilities; appraised value; book value;
examiners’ deductions; assets not criticized; substandard assets.. . .
241
Sources of data....................................................................................................
241
Assets and liabilities of operating banks (See also Assets and liabilities of
insured commercial banks, examiners’ appraisal; Capital of banks;
Deposits; Loans by banks; Securities):
All banks:
Amount, by type, December, 1945-1950.................................................... 35-36
By FDIC district and State, December 30, 1950.................................... 234-235
Changes during 1950....................................................................................
35
Grouped according to insurance status and type of bank, June 30 and
December 30, 1950............................................................................... 230-233
Percentage composition, December, 1950, 1949, and 1945.......................
35
Commercial banks, June 30 and December 30, 1950.................................... 230-233
Insured banks, December 31, 1949, June 30 and December 30, 1950.........236-239
Insured commercial banks:
Amount, December 31, 1949, June 30 and December 30,1950.230-233, 236-239
Averages, by State, class of bank and deposit size of banks, 1950
.......................................................................255, 259, 263, 265, 267, 269, 271
Averages of principal components, 1942-1950............................................
251
Reports of...................................................................................................... 21-22
293
294
FE D E R A L DEPO SIT IN SU R AN C E C O RPORATION
Page
Assets and liabilities of operating banks:—Continued
Insured mutual savings banks:
Amount, December 31, 1949, June 30 and December 30, 1950............. 236-239
Amount, June 30 and December 30, 1950................................................230-233
Averages of principal components, 1942-1950............................................
273
Mutual savings banks:
Amount, by type and percentage change, December, 1950,1949, and 1945
55
Amount, June 30 and December 30, 1950................................................ 230-233
Noninsured banks, June 30 and December 30, 1950.....................................230-233
Sources of data....................................................................................................
229
Assets and liabilities of the Federal Deposit Insurance Corporation.................. 25-29
Assets of insured banks, quality of. See Assets and liabilities of insured com
mercial banks, examiners’ appraisal; Substandard assets of insured
commercial banks.
Assets pledged to secure bank obligations.............................................................
239
Assets purchased by the Federal Deposit Insurance Corporation:
From banks absorbed with financial aid of the Corporation. See Absorptions
of insured banks with financial aid of the Corporation.
From banks in receivership............................................................................... 12-14
Liquidation o f..................................................................................................... 14, 28
Bank supervision (See also Examinations of banks):
Activities of the Federal Deposit Insurance Corporation..................... 10, 16-22
State legislation, 1950........................................................ ............................. 209-211
Banking offices, establishment of:
Banks, beginning operations, 1950....................................................................
Branches, establishment approved by Corporation.........................................
Branches opened, 1950.......................................................................................
216
21
217
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, 1950..........................................................................216-217
Branches of insured banks, 1950.......................................................................
217
Insured banks, 1950......................................................................................... 216, 281
Noninsured banks, 1950................................................................................... 216, 277
Banks in financial difficulties (See also Absorptions of insured banks with
financial aid of the Corporation; Receiverships, insured banks
placed in):
Depositors protected by the Corporation in closed banks......................... 10-12
Depositors sustaining loss in closed insured banks, number o f...................... 11-12
Insured banks closed:
Deposits of....................................................................................... 10-13, 278-281
Disbursements by the Corporation in connection w ith .. 10-15, 278 -279,281-282
Loss to depositors......................................................................................... 11-14
Loss to Federal Deposit Insurance Corporation............................11-15, 28, 282
Number, 1934-1950.......................................................... 11-12, 14, 278-279, 282
Methods of handling under existing law.......................................................... 6, 10
Noninsured bank suspensions, 1950............................................................... 216, 277
Banks, number of. See Number of operating banks and branches.
Banks operating branches. See Banking offices, establishment of; Number
of operating banks and branches.
Blanket bond coverage. See Fidelity bond coverage.
Board of Directors of the Federal Deposit Insurance Corporation..................iv, v, 23
Board of Governors of the Federal Reserve System, data obtained from.. 229, 249
G E N E R A L IN D E X
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.
295
Page
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
Department.
Capital of banks {See also Assets and liabilities of operating banks; Earnings
and expenses of insured commercial banks; Earnings and expenses of
insured mutual savings bank):
Examiners’ appraisal, insured commercial banks:
1941-1950.......................................................................................................
243
Banks grouped by amount of deposits, 1950.........................................244-245
Banks grouped by FDIC district and State, 1950...................................246-247
Definition of terms used...............................................................................
241
Ratio of substandard assets to adjusted capital accounts, 1950.... 243, 245-247
Growth................................................................................................................ 43-44
Insured banks placed in receivership or absorbed with financial aid of the
Corporation........................................................................................... 280-281
Net additions as a proportion of net profits, insured commercial banks.. 46, 52
Ratios to total assets:
Insured commercial banks, 1950 ............................. 237, 243, 245-247, 257, 261
Insured commercial banks, 1934-1950........................................................
43
Insured commercial banks, by State, December 30, 1950........................
45
Insured commercial banks, distributed by, December 30, 1950..............
44
Ratios to assets other than cash and U. S. Government obligations, insured
commercial banks:
1934-1950.......................................................................................................
43
December 30, 1950, by State.....................................................................
45
Retirement of capital invested in banks by the Reconstruction Finance
Corporation.........................................................................................16-17, 46
Total capital accounts:
Commercial and mutual savings banks, insured and noninsured, June 30
and December 30, 1950........................................................................231, 233
Composition of, insured commercial banks, December 1934-1950...........
43
Insured banks, December 31, 1949, June 30 and December 30, 1 9 5 0 ....
239
Charge-offs by banks. See Earnings and expenses of insured commercial banks;
Earnings and expenses of insured mutual savings banks.
Class of bank, banking data presented by:
Admissions to and terminations of insurance............... ............................... 216-217
Banks absorbed with financial aid of the Corporation, 1950.........................
281
Earnings of insured commercial banks, 1950................................................. 254-257
Insured banks financially aided by the Corporation, 1934-1950...................
278
Number of banks and banking offices, 1950.................................................. 216-225
Ratios of earnings of insured commercial banks, 1950................................. 256-257
Reserve method of accounting for bad-debt losses on loans, used by insured
commercial banks, 1948-1950..................................... ..........................
51
Classification of banks and banking offices.......................................................... 214-215
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 and expenses of insured com
mercial 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..........................................................................................229, 249
Director of Corporation...................................................................................iv, v, 23
296
F E D E R A L D EPOSIT IN SU R AN C E CORPORATION
Consolidations. See Absorptions of insured banks with financial aid of the Cor
poration; Absorptions of operating banks.
Credit, bank, expansion of during 1950. See Deposits; Loans by banks.
Criticized assets. See Assets and liabilities of insured commercial banks, ex
aminers’ appraisal.
Defalcation in banks...................................................................................................... 10
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 absorbed. See
Banks in financial difficulties.
Deposits:
Amount of, banks grouped by:
Assets and liabilities of insured commercial banks examined in 1950...
244
Banks receiving financial aid from the Corporation, 1 9 3 4 -1 9 5 0 ........
278
Disbursements for protection of depositors, 1934-1950.............................
278
Earnings data of insured commercial banks, 1950.................................. 258-259
Earnings ratios of insured commercial banks, 1950 ................ 48-50, 260-261
Business and personal. See Deposits, classified by type of deposit.
Changes in deposits, 1945 to 1950................................................................35, 42-43
Classified by type of deposit:
All banks, grouped by FDIC district and State, December 30, 1950.. .234-235
All banks, June 30 and December 30, 1950. ........................................... 231, 233
All banks, semiannually, 1945-1950.................................................. .........
42
Commercial banks, June 30 and December 30, 1950............................. 231, 233
Insured banks, by type of bank, December 31, 1949, June 30 and
238
December 30, 1950.................................................................................
Mutual savings banks, June 30 and December 30, 1950....................... 231, 233
Noninsured banks, by type of bank, June 30 and December 30, 1950. .231, 233
Demand. See Deposits, classified by type of deposit.
Government. See Deposits, classified by type of deposit.
Individuals, partnerships, and corporations. See Deposits, classified by
type of deposit.
Insured and otherwise protected:
In banks absorbed with financial aid of the Corporation......................... 10-12
In banks placed in receivership................................................................... 12-13
Increase in coverage to $10,000 for each depositor................................... 4, 29
Interbank. See Deposits, classified by type of deposit.
Interest on time and savings deposits.................................... 46, 49-50, 58, 250-270
Postal savings deposits. See Deposits, classified by type of deposit.
Preferred. See Deposits, secured and preferred.
Savings and time. See Deposits, classified by type of deposit.
Secured and preferred, in insured banks placed in receivership, 1934-1950..
13
Sources of data................................. #..............................................................229, 241
Subject to offset. See Receivership, insured banks placed in.
13
Uninsured deposits of insured banks placed in receivership.........................
Deposits in:
Banks grouped by FDIC district and State, December 30,1950.226-227, 234-235
Banks grouped by insurance status, June 30 and December 30, 1950.. 231, 233
42
By type of deposit, semiannually, 1945-1950............................................
June 30 and December 30, 1950............................................................... 231, 233
Banks receiving financial aid from the Corporation......................... 10-14, 278-281
Commercial banks:
Banks grouped by insurance status and by FDIC district and State,
December 30, 1950............................................................................... 226-227
June 30 and December 30, 1950............................................................... 231, 233
G E N E R A L IN D E X
297
Page
Deposits in:—Continued
Insured banks:
As percentage of deposits of all banks........................................................
7-9
As percentage of deposits of all banks, by State, December 31, 1950..
9
Placed in receivership or absorbed with financial aid of the Corporation
............... ................................................................................... 10-14, 278-281
Insured commercial banks:
At time of examination..............................................................................242, 244
By FDIC district and State, December 30, 1950.................................... 226-227
December 31, 1949, June 30 and December 30, 1950...............................
238
Insured mutual savings banks:
By FDIC district and State, December 30, 1950.................................... 226-227
By State, December 30, 1950..............................................................57, 226-227
December 31, 1949, June 30 and December 30, 1950...............................
238
Mutual savings banks:
By FDIC district and State, December 30, 1950.................................... 226-227
By State, December 30, 1950........................................................54, 57, 226-227
June 30 and December 30, 1950............................................................... 231, 233
Noninsured banks:
By FDIC district and State, December 30, 1950.................................... 226-227
June 30 and December 30, 1950............................................................... 231, 233
Mutual savings banks, by State, December 30, 1950...............................
57
Dividends:
To depositors in insured mutual savings banks.........................58-59, 272, 274-275
To stockholders of operating insured commercial banks. See Earnings and
expenses of insured commercial banks.
Earnings and expenses of insured commercial banks:
Amounts of principal components:
Annually, 1934-1950.....................................................................................
48
Annually, 1942-1950...................................................................................250-251
By class of bank, 1950............................................................................... 254-255
By deposit size of bank, 1950....................................................................258-259
By State, 1950............................................................................................ 262-271
Charge-offs and recoveries:
Amounts, 1934-1950.....................................................................................
48
Banks using reserve method of accounting for bad debt-losses on loans,
by class of bank, 1948-1950...................................................................
51
• Recoveries and profits on sale of assets......................................................
51
~ Current operating earnings and expenses, 1950.............................................. 47-50
Income, sources and disposition of total, 1945-1950....................................... 46-47
Net profits after taxes:
Amounts........................................................... 46, 48, 52, 251, 255, 259, 263-271
Disposition of, 1934-1950............................................................................. 48, 52
Ratios of earnings items:
Rates of income on loans and securities...............................48-49, 253, 257, 261
--"" Rate of interest on time and savings deposits.................... 49-50, 253, 257, 261
Rate of net profit on total capital accounts, by State, 1950....................
53
Rate of service charges on demand deposits............................. 49, 253, 257, 261
To current operating earnings, total assets, and total capital accounts,
1942-1950.................................................................................................
252
To current operating earnings, total assets, and total capital accounts,
by class and deposit size of bank, 1950...............................256-257, 260-261
Salaries and wages, 1950...................................................................................
50
Taxes, 1950............................................................................................... 48, 49, 50, 52
Valuation reserves, transfers to and from. 51, 249-250,254-255,258-259,262-270
Earnings and expenses of insured mutual savings banks:
Amounts of principal components, 1942-1950................................................272-273
Dividends to depositors, 1943-1950..................................................................59, 272
Income from loans and securities, 1943-1950.................................................. 59, 272
Income, sources and disposition of total, 1950................................................
58
Rates of income on loans and securities and dividends on deposits..........59,275
Ratios of earnings and expense items to current operating earnings and
total assets, 1942-1950............................................................................
274
Salaries and wages, 1950....................................................................................
58
298
F E D E R A L D EPOSIT IN SU R AN C E CORPO R ATIO N
Employees:
Federal Deposit Insurance Corporation....................................................... 17-18, 23
Insured commercial banks:
Average salary, 1950............................................................................. ..
50
Number and compensation, 1942-1950............................................... .. .250-251
Number and compensation, by State, class of bank, and deposit size
of bank, December 30, 1950.................................254-255, 258-259, 262-271
Insured mutual savings banks:
Average salary, 1950.....................................................................................
58
Number and compensation, 1942-1950............................................... .. .272-273
Examination of insured banks (See also Assets and liabilities of insured com
mercial banks, examiners’ appraisal; Capital of banks):
Banks examined by the Federal Deposit Insurance Corporation, 1950
16
Changes in examination authority....................................................................
6
Data from reports of examination...................................................... 39-41, 242-247
Definition of terms.............................................................................................
241
Powers of Federal Deposit Insurance Corporation. See Index to Federal
Deposit Insurance Act, pages 285-290.
Expenses of banks. See Earnings and expenses of insured commercial banks;
Earnings and expenses of insured mutual savings banks.
Expenses of the Corporation. See Federal Deposit Insurance Corporation.
Failures. See Banks and branches ceasing operations; Receivership, insured
banks placed in.
Federal bank supervisory authorities............................ ...................................... 6, 15-16
Federal Deposit Insurance Act, 1950. (See also Index to Federal Deposit
Insurance Act, pages 285-290):
Summary of provisions.......................................................................................
3-7
Text of Act........................................................................................................105-132
Federal Deposit Insurance Corporation (See also Index to Federal Deposit
Insurance Act, pages 285-290):
Actions on applications from banks. See Applications from banks.
Assessments on insured banks............................................................ 5, 23-24, 26, 30
Assets and liabilities........................................................................................... 25-31
Audits.................................................................................................................7, 29-32
Banks examined by, and submitting reports to.......................................... 16, 21-22
Bank supervisory activities............................................................................... 15-22
Board of Directors........................................................................................... iv, v, 23
Borrowing power................................................................................................
31
Deposit insurance fund..................... ............. ; ••• ;.................... 5, 25, 26, 27, 29-30
Depositors protected by. See Banks in financial difficulties.
Disbursements for protection of depositors........................10-14, 278-279, 281-282
Districts............................................................................................................... vi, vii
Divisions............................................ ................................................................. iv, 23
Educational program for bank examiners........................................................ 17-18
Employees, number o f.......................................................................................
23
Examination of banks. See Examinations of banks.
Income and expenses............................................................................... 23-26, 30-31
Insured banks receiving financial aid from. See Absorptions of insured
banks with financial aid of the Corporation; Banks in financial
difficulties; Receivership, insured banks placed in.
Insured deposits. See Deposits, insured and otherwise protected.
Loans to and purchase of assets from insured banks. See Absorptions of
insured banks with financial aid of the Corporation.
Losses incurred, 1934-1950.............................. ...........••••..........11-15, 26, 28, 282
Methods of protecting depositors. See Banks in financial difficulties.
Organization and staff..................................................................................... iv, v, 23
Payments to insured depositors.......................................^..........................11-14, 278
Protection of depositors. See Banks in financial difficulties.
Purchase of assets of banks in receivership.......................................... ........... 12-14
Receiver for insured banks...................................................................... .. 12-13, 31
G E N E R A L IN D E X
299
Page
Federal Deposit Insurance Corporation—Continued.
Recoveries.........................................................................................14-15, 28, 31, 282
Reports from banks......................................................................................... 5, 21-22
Reserves for losses on assets acquired..............................................................
28
Retirement of capital stock of the Corporation.......................................... 27-28, 31
Rules and regulations. See Rules and regulations of the Federal Deposit
Insurance Corporation.
Supervisory activities......................................................................................... 15-22
Surplus (deposit insurance fund).................................................. 5, 24-25, 27, 29-30
Federal Deposit Insurance Corporation districts, banking data classified by:
Assets and liabilities of all banks, December 30, 1950......................................... 234
Assets and liabilities, examiners' appraisal, 1950............................................ ..... 246
Number and deposits of banks, by type of bank, December 30, 1950............... 226
Federal Reserve System. See Board of Governors of the Federal Reserve
System.
Fidelity bond coverage............................................................................................. 10,17
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.
History of legislation for guaranty or insurance of bank deposits:
Congressional proposals for guaranty or insurance of bank deposits:
Administrative authority for guaranty or insurance systems................... 70-72
Assessment rates for deposit insurance.......................................................
75
Assessments and other sources of funds..................................................... 73-76
Digest of bills for bank deposit guaranty or insurance, 1886-1933..........80-101
Methods of protection for depositors..........................................................
69
Number of bills for deposit guaranty or insurance, each Congress,
1886-1933.................................................................................................
69
Participant banks.........................................................................................
70
Protection of deposits and other liabilities................................................. 71-73
Regulation and supervision of banks.......................................................... 76-78
Sponsors of bills introduced in Congress.............................................. 69, 80-101
Deposit insurance legislation, 1933-1950:
Federal legislation.........................................................................................
66
State legislation............................................................................................ 66-67
Predecessors of the Federal deposit insurance law:
Federal deposit insurance proposals, 1913-1932......................................... 65-66
Proposals for guaranty of deposits in national banks, 1886-1912..................
65
State systems for guaranty of bank obligations................................... 63-64, 65, 67
United States Government guaranty of circulating banknotes......................
64
Income of insured banks. See Earnings and expenses of insured banks.
Income of the Federal Deposit Insurance Corporation. See Federal Deposit
Insurance Corporation.
Index to Federal Deposit Insurance Act..............................................................285-290
Index to laws applicable to Federal Deposit Insurance Corporation and insured
banks...................................................................................................... 291-292
Insolvent banks. See Banks in financial difficulties.
Insurance, defalcation and fidelity......................................................................... 10,17
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..................... 21-22
Insured deposits. See Deposits, insured and otherwise protected.
Insured mutual savings banks. See Mutual savings banks.
300
FE D E R A L D E PO SIT IN SU R AN C E CORPO R ATIO N
Page
Insured State banks members of the Federal Reserve System. See Class of bank,
banking data presented by.
Insured status, banks classified by:
Assets and liabilities of, June 30 and December 30, 1950................. ....... 230-233
Changes in number of, 1950............................................................................216-217
Deposits of, December 30, 1950......................................................................226-227
In each State, December 30, 1950.................................................................. 218-227
Mutual savings banks, number and deposits, by State, December 30, 1950..
57
Number of, December 30, 1950.........................................................................
9
8
Percentage of banks insured, by State, December 31, 1950...........................
Interbank deposits. See Deposits, classified by type of deposit.
Interest. See Earnings and expenses of insured commercial banks; Earnings
and expenses of insured mutual savings banks.
Interest on capital advanced to the Federal Deposit Insurance Corporation
...................................................................................................7, 25, 27-29, 31
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* See Unsafe and unsound banking practices.
Legislation relating to deposit insurance and banking:
Federal Deposit Insurance Act, 1950. See Index to Federal Deposit Insur
ance Act, pages 285-290.
Federal, enacted in 1950...................................................................................
22
History of deposit insurance legislation. See History of legislation for
guaranty or insurance of bank deposits.
Laws applicable to Federal Deposit Insurance Corporation and insured
banks. See Index to laws applicable to Federal Deposit Insurance
Corporation and insured banks, pages 291-292.
National Bank Conversion Act. See National Bank Conversion Act.
State, enacted in 1950...................................................................................... 209-211
Liquidation, banks placed in, 1950.........................................................................
216
Loans by banks (See also Assets and liabilities of operating banks):
Amount and percentage distribution in all banks, by type, 1945-1950.... 38-39
Expansion, all banks, by State, 1945-1950......................................................
38
Income and charge-offs on.............................................................................47-48, 51
Provision for losses..............................................................................41, 51, 229, 249
Rate of income on................................................... 48-49, 57, 59, 253, 257, 261, 275
Substandard:
Amounts and ratio to total loans, 1941-1950.....................................40, 242-245
Ratio to total loans, by State, 1950............................................................
41
Loans to insolvent or hazardous insured banks by Federal Deposit Insurance
Corporation. See Absorption of insured banks with financial aid of
the Corporation.
Losses:
Of banks charged off. See Earnings and expenses of insured commercial
banks; Earnings and expenses of insured mutual savings 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.
Of the Reconstruction Finance Corporation on preferred stock investments
in banks.......................................................................................... .........
15
Provision for, in banks.................................................................. 41, 51, 59, 249-275
Mergers. See Absorptions of insured banks with financial aid of the Corporation,
G E N E R A L IN D E X
301
Page
Methods of tabulating bank data:
Assets and liabilities of operating banks..........................................................
229
Deposit insurance disbursements......................................................................
277
Earnings, expenses, profits, and dividends of insured banks..........................
249
Examiners’ evaluation of insured commercial banks.......................................
241
Number, offices, and deposits of operating banks.........................................214-215
Mutual savings banks:
Insured:
Assets and liabilities, December 31, 1949, June 30 and December 30,
1950........................................................................................................ 238-239
Earnings, expenses, profits, and dividends...................................56-59, 272-275
Number and deposits, December 31, 1949, June 30 and December 30,
1950........................................................................................................ 238-239
Insured and noninsured:
Assets and liabilities, June 30 and December 30, 1950........................... 230-233
Number and deposits, by State, December 30, 1950........................57, 226-227
Total:
Assets and liabilities, December 1950, 1949, and 1945.............................
55
Number and deposits, by State, December 30, 1950................................
54
United States Government obligations held by, distribution by maturity,
December, 1948-1950.............................................................................
56
National Bank Conversion Act:
Consent of Federal agencies required............................................................. 155-156
Conversion in contravention with State law prohibited.................................
155
Definitions under conversion act:
State bank...................................................................................................153-154
National banking association.......................................................................
154
Insurance of deposits in conversion, merger, or consolidation:
Continuation of deposit insurance..............................................................
156
Termination of deposit insurance of banks members of the Federal
Reserve System.....................................................................................156-157
Procedure for national bank conversion, merger, or consolidation with
State bank........................#....................................................................154-155
Separability provision of conversion act..........................................................
157
Termination of national banking association franchise..................................
155
National banks. See Class of bank, banking data presented by.
Net earnings of insured commercial banks. See Earnings and expenses of insured
commercial banks.
Net profits of insured commercial banks. See Earnings and expenses of insured
commercial banks.
Net sound capital of insured commercial banks. See Capital of banks.
New banks. See Banking offices, establishment of.
Noninsured banks. See Absorptions of operating banks; Admission to insur
ance; 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:
A.11 banks and branches *
By class of bank, FDIC district and State, December 30,1950.218-227, 234-235
By type and insurance status, December 30, 1950...................................
9
June 30, 1950................................................................................................
231
Branches, by class of bank and State, December 30, 1950.......................... 218-225
Changes by type of change and class of bank during 1950..........................216-217
Insured banks:
Admissions to insurance................................................................. 20-21, 216-217
Branches, approval of, by Corporation......................................................
21
December 31, 1949, June 30 and December 30, 1950...............................
239
Termination of insurance............................................................................. 20,216
302
FE D E R A L D EPOSIT IN SU R AN C E CORPORATION
Page
Number of operating banks and branches:—Continued
Insured commercial banks:
By FDIC district and State, December 30, 1950.............................. .. .226-227
By ratio of total capital accounts to total assets, December 30, 1950..
44
243
Examined in 1941-1950................................................................................
Examined in 1950, by amount of deposits.................................................
245
Examined in 1950, by FDIC district and State...................................... 246-247
Operating throughout 1950, by amount of deposits................................259, 261
Using reserve method of accounting for bad-debt losses on loans, by
class of bank, 1948-1950.........................................................................
51
Mutual savings banks. See Mutual savings banks.
Noninsured banks:
By class of bank, FDIC district and State, December 30, 1950............226-227
Failures during 1950.....................................................................................
277
Unit banks, by class of bank and State, December 30, 1950....................... 218-225
Officers and employees of the Federal Deposit Insurance Corporation...... 17-18, 23
Officers of insured banks. See Employees.
Operating banks. See Number of operating banks and branches.
Payments to depositors in closed insured banks. See Receivership, insured
banks placed in; and Index to Federal Deposit Insurance Act,
pages 285-290.
Possessions, banks and branches located in:
Assets and liabilities, December 30, 1950...................................................... 234-235
Deposits of, December 30, 1950......................................................................226-227
Earnings, expenses, profits, and dividends, 1950...........................................262-263
Number of, December 30, 1950.........................................................................
225
Postal savings deposits. See Deposits, classified by type of deposit.
Preferred deposits. See Deposits, secured and preferred.
Profits. See Earnings and expenses of insured commercial banks.
Protection of depositors. See Absorptions of insured banks with financial aid of
the Corporation; Banks in financial difficulties; Deposits, insured
and otherwise protected.
Public funds. See Deposits, classified by type of deposit.
Publications of the Corporation.............................................................................. 21-22
Purchase of bank assets by Corporation. See Assets purchased by the Federal
Deposit Insurance Corporation.
Receivership, insured banks placed in (See also Banks in financial difficulties):
Activities of the Corporation as receiver o f....................................................
13
Assets and liabilities of, at dates of suspension, cumulative, 1934-1950....
280
Depositors’ losses................................................................................................ 11-14
Deposits:
Amounts, 1934-1950..............................................................................12-13, 278
Insured, paid and unpaid by December 30, 1950......................................
13
Secured, preferred, and subject to offset....................................................
13
Disbursements by the Corporation.....................................11-15, 278-279, 281-282
Losses by the Corporation on disbursements.......................................12-15, 28, 282
Number of banks..........................................................................11-12, 278-279, 282
Payments to depositors...................................................................................... 11-14
Recoveries by the Corporation on disbursements............................... 13-15, 28, 282
Sources of data....................................................................................................
277
Reconstruction Finance Corporation, capital of insured banks held by:
Amount outstanding...........................................................................................
17
Decreases in RFC and other preferred capital....................................
16-17, 46
Losses on..............................................................................................................
15
G E N E R A L IN D E X
303
Page
Recoveries:
By banks on assets charged off. See Earnings and expenses of insured com
mercial banks; Earnings and expenses of insured mutual savings
banks.
By the Corporation on disbursements........................................... 14-15, 28, 31, 282
Reports from banks.................................................................................................. 21-22
Reserves:
For bad-debt losses on loans, ruling of Commissioner of Internal Revenue
.............................................................................................. .. .. .5 1 , 229, 249
In bank assets and liabilities. See Assets and liabilities of operating banks.
Of Federal Deposit Insurance Corporation, for losses on assets acquired..
28
Surplus (deposit insurance fund) of the Corporation..................24-25, 27, 29-30
Rules and regulations of the Federal Deposit Insurance Corporation:
Advertising of insurance of deposits............................................................... 193-197
Applications from banks for changes in situation......................................... 159-163
Assessment deductions and payments............................................................190-193
Authority of the Corporation to issue rules and regulations....................... 158, 189
Confidential information concerning operations and records of banks... .185-188
Deposit obligations defined............................................................... 189-190,197-198
Extension of corporate powers of banks........................................................ 207-208
Forms, instructions, and reports..................................................................... 164-169
Formulation and promulgation of rules and regulations...............................158-159
Insurance of trust funds.....................................................................................
206
Ownership of deposits not on bank records....................................................204-206
Payment of insured deposits........................................................................... 169-170
Payment of interest on deposits......................................................................197-204
Powers not consistent with purposes of Federal Deposit Insurance A ct. . . .
207
Receiverships and liquidations........................................................................ 170-173
Termination of insured status of banks by the Corporation.. ..................... 178-185
Voluntary termination of insured status by an insured bank....................... 173-177
Salaries and wages:
Federal Deposit Insurance Corporation...........................................................
Insured banks. See Earnings and expenses of insured commercial banks;
Earnings and expenses of insured mutual savings banks.
25
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............................................. 51, 59
Held by Federal Deposit Insurance Corporation....................................... 25, 27, 30
Held by insured banks placed in receivership or absorbed with financial aid
of the Corporation, 1934-1950...............................................................
280
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 and expenses of insured
commercial banks; Earnings and expenses of insured mutual savings
banks.
Profits on securities sold by insured banks. See Earnings and expenses of
insured commercial banks; Earnings and expenses of insured mutual
savings banks.
United States Government obligations, held by:
Federal Deposit Insurance Corporation................................................ 25, 27, 30
Insured banks placed in receivership or absorbed with financial aid of
the Corporation, 1934-1950....................................................................
280
Insured commercial banks, amounts and percentage distribution by
maturities, December, 1941-1950..........................................................
37
Mutual savings banks, amounts and percentage distribution by ma
turities, December, 1948-1950................................................................
56
Size of banks, banks classified by. See Deposits, amount of, banks grouped by.
304
FE D E R A L D EPOSIT IN SU R AN C E C O RPORATION
Sources of data........................................................................... 21-22, 229, 241, 249, 277
State and local government obligations. See Assets and liabilities of operating
banks.
State bank supervisory authorities:
Data obtained from............................................................................................ 22, 229
State legislation regarding................................................................ ................
209
State, banking data classified by:
Assets and liabilities of insured commercial banks examined in 1950... .246-247
Assets and liabilities of operating banks, December 30, 1950......................234-235
Capital, ratio to total assets, insured commercial banks, December 30, 1950
45
Capital, ratio to assets other than cash and U. S. Government obligations,
insured commercial banks, December 30, 1950...................................
45
Deposits, December 30, 1950:
Commercial banks, insured and noninsured.............................................226-227
Mutual savings banks, December 30, 1950............. ................................. 54, 57
Mutual savings banks, insured and noninsured, December 30,1950.. 57, 226-227
Disbursements by the Corporation, cumulative, 1934-1950......................... 278-279
Earnings and expenses of insured commercial banks, 1950..........................262-271
Loans of all banks, expansion of, 1945-1950....................................................
38
Net earnings and net profits of insured commercial banks, rates of, 1950. .262-271
Net profits after taxes as a proportion of total capital accounts, 1 9 5 0 ....
53
Number and deposits of mutual savings banks, December 30, 1950. ........... 54, 57
Number of operating banks or offices, December 30, 1950:
All banking offices, by class of bank and type of office......................... 218-225
Commercial banks, insured and noninsured............................................ 218-227
Mutual savings banks, insured and noninsured.................................57, 218-227
Proportion of banks insured, December 31, 1950............................... 8, 57, 218-225
Proportion of deposits in all banks held by insured banks, December 31, 1950
9
Ratio of substandard loans to total loans, insured commercial banks, 1950..
41
Ratio of valuation reserves to total loans, insured commercial banks,
December 30, 1950..................................................................................
41
State banking legislation enacted in 1950............................................................ 209-211
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.
Stockholders of banks, net profits available for. See Earnings and expenses of
insured commercial banks.
Substandard assets of insured commercial banks. (See also Assets and liabilities
of insured commercial banks, examiners’ appraisal):
Amounts and percentage, by type of asset, 1939-1950...................................
40
Changes in recent years..................................................................................... 39-40
Fixed and miscellaneous............................................................................40, 242, 244
Loans...........................................................................................................40, 242, 244
Ratio of substandard loans to total loans, by State, 1950.............................
41
Ratios to capital accounts, by State, 1950.................................................... 246-247
Relative to total assets........................................................................39-40, 243, 245
Securities.................................................................................................... 40, 242, 244
Supervision. See Bank supervision.
Suspensions. See Banks and branches ceasing operations; Receivership, insured
banks placed in.
Taxes paid by insured banks. See Earnings and expenses of insured commercial
banks; Earnings and expenses of insured mutual savings banks.
Terminations of insurance for unsafe and unsound practices..............................
Time and savings deposits. See Deposits, classified by type of deposit.
20
GE N E R A L IN D E X
305
Page
Trust companies:
Classification o f................................................................................................ 214-215
Noninsured, not engaged in deposit banking.................................216-227, 230-233
Type of bank, banking data distributed by:
Assets and liabilities......................................................................... 230-233, 236-239
Number of banks and total deposits, by FDIC district and State, December
30, 1950.................................................................................................. 226-227
Unit banks. See Number of operating banks and branches.
United States Government obligations. See Assets and liabilities of insured
commercial banks, examiners’ appraisal; Assets and liabilities of
operating banks; Securities.
United States Treasury Department, Commissioner of Internal Revenue,
Ruling on reserves for bad-debt losses on loans.......................... 51, 229, 249
Unsafe and unsound banking practices:
Actions of the Corporation................................................................................
Number of banks cited......................................................................................
Tj^pe of practice or violation.............................................................................
18-20
19-20
19
Unsecured deposits. See Receivership, insured banks placed in.
Valuation reserves................................... ........................................51, 229, 232, 237, 249
Violations of law or regulations, banks charged with. See Unsafe and unsound
banking practices.
@FedFRASER