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A N N U A L REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION




1965




L E T T E R OF T R A N S M I T T A L

FEDERAL DEPOSIT INSURANCE CORPORATION
Washington, D. C., September 22,1966

SIRS: Pursuant to the provisions of Section 17(a) of the Federal
Deposit Insurance Act, the Federal Deposit Insurance Corporation
is pleased to submit its annual report. Part One of the report, sepa­
rately submitted earlier in the year, is included in this volume.

Respectfully yours.

K. A. RANDALL,
Chairman

THE PRESIDENT OF THE SENATE
THE SPEAKER OF THE HOUSE OF REPRESENTATIVES




iii

FEDERAL DEPOSIT INSURANCE CORPORATION

B O A R D O F D IR E C TO R S
CHAIRMAN
COMPTROLLER OF THE CURRENCY
DIRECTOR
SECRETARY
•

i
I
__________ I_________
EXECUTIVE ASSISTANT
TO THE BOARD
ASSISTANTS

EXAMINATION
DIVISION



I

I

I

AUDITOR

COMMITTEES
BOARD OF REVIEW
LIQUIDATIONS, LOANS AND
PURCHASES OF ASSETS
SPECIAL

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

BOARD OF DIRECTORS
Chairman_________________________________________ K. A. Randall
Director________________ ____ ________________ William W. Sherrill
Comptroller of the Currency_____ _______________ James J. Saxon

O F F IC IA L S

Assistant to the Chairman______________________ John L. Flannery
Assistant to the Director__________________________Thano Dameris
Assistant to the Director_______________________ Albert J. Faulstich
(Comptroller of the Currency)
Chief, Division of Examination________________Edward H. DeHority
General Counsel___________________________________ John F. Lee
Controller

_______________________________ Edward F. Phelps, Jr.

Chief, Division of Research and Statistics____Raymond E. Hengren
Chief, Division of Liquidation______

___

_______ A. E. Anderson

Auditor________________________________________James J. Bogart
Secretary------------------------------------------------------- ------- E. F. Downey
Executive Assistant to the Board__________ Timothy J. Reardon, Jr.
Assistant to the Board________________________William M. Moroney
Assistant to the Board____________________________ Frank E. Tracy
Assistant to the Board_________________________Raoul D. Edwards
Special Assistant to the Chairman_____________________ Lynn Mah
Special Assistant to the Chairman______________Raymond T. Cahill




September 22,1966
v

FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICTS

DI STRI CT

O F F I CE S

AND

1. Lewis S. Rough, Jr., Suite
805, State Street Bank B uild­
ing, 225 Franklin Street, Bos­
ton, Massachusetts 02110
2. Philip C. Lods, 74 Trinity
Place, New York, New York
10006
3. W illiam D. Allen, Suite 600,
Huntington Trust Building,
37 West Broad Street, Co­
lumbus, Ohio 43215
4. Albert E. Clark, 403 East
Grace Street, Richmond, Vir­
ginia 23219

SUPERVISING

EXAMI NERS

7. Wallace A. Ryen, 715 Ten­
ney Building, Madison, Wis­
consin 53703
8. Claude C. Phillippe, 164
West Jackson Boulevard,
Chicago, Illinois 60604
9. Roger B. West, 748 Roa­
noke Building, Minneapolis,
Minnesota 55402
10. Stanley Pugh, 1207 Federal
Reserve Bank Building, Kan­
sas City, Missouri 64106

5. Roger C. Eagleton, 1000 Bank
of Georgia Building, Atlanta,
Georgia 30303

11. Lloyd Thomas, Federal Re­
serve Bank Building, Sta­
tion K, Dallas, Texas 75222

6. Lewis C. Beasley, 420 Locust
Building, 1015 Locust Street,
St. Louis, Missouri 63101

12. Walter W. Smith, Suite 1700,
582 Market Street, San Fran­
cisco, California 94104

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Mai n O f f f i c e : 550 1 7th S t r e e t , N. W., W a s h i n g t o n ,




D. C. 204 2 9

CONTENTS
Page
The year in brief ________________________________________________________

xii

PART ONE
OPERATIONS OF THE CORPORATION
The Corporation and banking developments________________________________
Deposit insurance participation and coverage_____________________________
Insurance operations to protect depositors of failing banks_________________
Supervisory activities_____________________________________________________
Legal developments______________________________________________________
Administration of the Corporation__________________________________________
Finances of the Corporation_______________________________________________

3
8
9
14
21
23
25

PART TWO
LEGISLATION AND REGULATIONS
Federal banking legislation— 1965 ________________________________________
Rules and regulations of the Corporation _________________________________
State banking legislation— 1965 __________________________________________

81
84
87

PART THREE
BANKING DEVELOPMENTS
Supervisory status of banks _____________________________________________
97
Number of banking offices ________________________________________________ 99
Assets and liabilities of banks ___________________________________________ 101
Income of insured banks _________________________________________________ 106

PART FOUR
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number, offices, and deposits of banks ___________________________________
Assets and liabilities of b a n k s ____________________________________________
Income of insured banks _________________________________________________
Banks closed because of financial difficulties,
and deposit insurance disbursements __________________________________




114
128
150
178

vii

LIST

OF T A B L E S

PART ONE
OPERATIONS OF THE CORPORATION
INSURANCE OPERATIONS TO PROTECT DEPOSITORS OF FAILING BANKS:
1. Insured banks closed during 1965 requiring disbursements by the
Federal Deposit Insurance Corporation_____________________________

10

2. Protection of depositors of insured banks requiring disbursements by
the Federal Deposit Insurance Corporation, 1934-1965_______________

11

3. Analysis of disbursements, recoveries and losses in deposit insurance
transactions, January 1, 1934-December 31, 1965___________________

13

SUPERVISORY ACTIVITIES:
4. Applications approved by the Board of Directors of the Federal Deposit
Insurance Corporation in 1964 and 1965 ____________________________

15

5. Mergers, consolidations, acquisitions of assets and assumptions of
liabilities approved under section 18(c) of the Federal Deposit Insur­
ance Act during 1965______________________________________________

16

6. Bank examination activities of the Federal Deposit Insurance Corpora­
tion in 1964 and 1965______________________________________________

17

7. Actions to terminate insured status of banks charged with unsafe or
unsound banking practices or violations of law or regulations, 19361965

19

15. Description of each merger, consolidation, acquisition of assets or
assumption of liabilities approved by the Corporation during 1965____

33

ADMINISTRATION OF THE CORPORATION:
8. Number of officers and employees of the Federal Deposit Insurance
Corporation, December 31, 1964 and 1965__________________________

24

FINANCES OF THE CORPORATION:
9. Statement of financial condition, Federal Deposit Insurance Corpora­
tion, December 31, 1965___________________________________________

26

10. Statement of income and the deposit insurance fund, Federal Deposit
Insurance Corporation, year ended December 31, 1965______________

27

11. Determination and distribution of net assessment income, Federal De­
posit Insurance Corporation, year ended December 31, 1965________

28

12. Sources and application of funds, Federal Deposit Insurance Corpora­
tion, year ended December 31, 1965________________________________

29

13. Income and expenses, Federal Deposit Insurance Corporation, by year,
from beginning of operations, September 11, 1933, to December 31,
1965, adjusted to December 31, 1965_______________________________

30

14. Insured deposits and the deposit insurance fund, 1934-1965___________

31

viii



PART THREE
BANKING DEVELOPMENTS
SUPERVISORY STATUS OF BANKS:
16. All banks in the United States classified by supervisory status and
Federal deposit insurance participation, December 31, 1965 ________

98

NUMBER OF BANKING OFFICES:
17. Analysis of changes in number of banks and branches in the United
States during 1965 ______________________________________________ 100
ASSETS AND LIABILITIES OF BANKS:
18. Amounts and percentage changes in assets and liabilities of all banks
in the United States, December 30, 1961, December 31, 1964 and
1965 ...................... .................................................................................... 102

INCOME OF INSURED BANKS:
19. Sources and disposition of total income of insured commercial banks,
1961, 1964, and 1965 _____________________________________________ 107
20. Operating data of insured commercial banks, 1950, 1955, 1961-1965____ 108
21. Insured commercial banks in the United States (States and other areas)
which reported reserves for bad debt losses on loans pursuant to
Internal Revenue Service rulings, and amount of such reserves,
December 31, 1961-1965 __________________________________________ 109
22. Sources and disposition of total income of insured mutual savings
banks, 1961, 1964, and 1965 ______________________________________ 110

PART FOUR
STATISTICS OF BANKS AND DEPOSIT INSURANCE
NUMBER, OFFICES AND DEPOSITS OF BANKS:
Explanatory note __________________________________ ___ _________________ 114
101. Changes in number and classification of banks and branches in the
United States (States and other areas) during 1965 ...... ....................... 116
102. Number of banking offices in the United States (States and other areas),
December 31, 1965
Grouped according to insurance status and class of bank, and by
State or area and type of o ffic e ___________________________________ 118
103. Number and deposits of all banks in the United States (States and other
areas), December 31, 1965
Banks grouped according to insurance status and by district and
State _________________________ ___ ____ _ _____ ____________ ____ _ 126
_
ASSETS AND LIABILITIES OF BANKS:
Explanatory note _____________ ___ ____________________________ __ _______ 128




ix

104. Assets and liabilities of all banks in the United States (States and other
areas), June 30, 1965
Banks grouped according to insurance status and type of bank___ 130
105. Assets and liabilities of all banks in the United States (States and other
areas), December 31, 1965
Banks grouped according to insurance status and type of b a n k ___ 132
106. Assets and liabilities of all banks in the United States (States and other
areas), December 31, 1965
Banks grouped by district and State ..._____ _____ ________ ___ — 134
107. Assets and liabilities of all insured banks in the United States (States
and other areas), June and December call dates, 1962 through 1965.... 136
108. Assets and liabilities of insured commercial and insured mutual savings
banks in the United States (States and other areas), December and
June call dates, 1963 through 1965 ____________________________140
109. Average assets and liabilities and assets and liabilities per $100 of
total assets of insured commercial banks in the United States (States
and other areas), 1965
By class of bank .................................................................................... 144
110. Assets and liabilities and assets and liabilities per $100 of total assets
of insured commercial banks operating throughout 1965 in the United
States (States and other areas), December 31, 1965
Banks grouped according to amount of deposits _______________ 145
111. Average assets and liabilities of insured commercial banks in the United
States (States and other areas), by State, 1965 ___________________ 146
112. Distribution of insured commercial banks in the United States (States
and other areas), December 31, 1965
Banks grouped according to amount of deposits and by ratios of
selected items to assets ____ _______________ ___ __________________ 148
INCOME OF INSURED BANKS:
Explanatory note ________ ____ ____________________________________________ 150
113. Income of insured commercial banks in the United States (States and
other areas), 1957-1965 ___________________ _ ___ ________________ 152
_
114. Ratios of income of insured commercial banks in the United States
(States and other areas), 1957-1965 _____ _____________ ___ ___ ___ _ 154
115. Income of insured commercial banks in the United States (States and
other areas), 1965
By class of bank ..._______ _____ _____ _________ ________________ 156
116. Ratios of income of insured commercial banks in the United States
(States and other areas), 1965
By class of bank ______ ___ ___ __________ ___ ___________________ 158
117. Income of insured commercial banks operating throughout 1965 in the
United States (States and other areas)
Banks grouped according to amount of deposits ________________ 160
118. Ratios of income of insured commercial banks operating throughout
1965 in the United States (States and other areas)
Banks grouped according to amount of deposits ________________ 162
x



119. Income of insured commercial banks in the United States (States and
other areas), by State, 1965 ______________________________________ 164*
120. Income of insured mutual savings banks, 1957-1965_________________ 174
121. Ratios of income of insured mutual savings banks, 1957-1965________ 176
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES,
AND DEPOSIT INSURANCE DISBURSEMENTS
Explanatory note ________________________________________________________ 178
122. Number and deposits of banks closed because of financial difficulties,
1934-1965, by years ______________________________________________ 180
123. Insured banks requiring disbursements by the Federal Deposit Insurance
Corporation during 1965 ___________________________________________ 181
124. Depositors, deposits, and disbursements in insured banks requiring dis­
bursements by the Federal Deposit Insurance Corporation, 1934-1965
Banks grouped by class of bank, year of deposit payoff or deposit
assumption, amount of deposits, and S ta te ________________________ 182
125. Recoveries and losses by the Federal Deposit Insurance Corporation on
principal disbursements for protection of depositors, 1934-1965_____ 184




THE YEAR IN BRIEF

The number of banks insured by the Federal Deposit Insurance
Corporation totaled 13,876 at the end of 1965, following a gain of
56 during the year. About 97 percent of all operating banks and
trust companies in the United States were insured.
At the end of the year, the Corporation’s insurance fund totaled
$3,036 million, amounting to 0.80 percent of total deposits in
insured banks, and 1.45 percent of estimated insured deposits.
Disbursements by the Corporation were required in five failed
bank cases during 1965. Together these banks had approximately
16,000 depositors and nearly $44 million in deposits. Three were
closed by their chartering agency, whereupon the Corporation
paid their depositors up to the $10,000 maximum; it also accepted
appointment as receiver in each case. Liabilities of the other two
banks were, with the Corporation’s assistance, assumed by indi­
vidual insured banks which made deposits of the absorbed banks
available in full to the depositors.
Supervisory activities of the Corporation continued to increase
in 1965. Field examinations and investigations conducted by the
Corporation, totaling almost 13,000, were appreciably greater than
in 1964. During the year the banking industry and the Corporation
became substantially involved for the first time with Federal regis­
tration and reporting of bank securities. The first full year of
operation was completed also under Public Law 88-593, providing
for notice to the appropriate Federal banking agency of changes in
control of insured banks.
The number of banking offices in the United States rose by 1,231
during 1965 to a total of 30,958. Virtually all of the increase was due
to net increases in branches.
Assets of all banks totaled $437 billion at the end of 1965, after
a gain of 8.6 percent during the year. Much of this increase re­
flected the continued rapid growth of loans. Total deposits climbed
8.1 percent to nearly $387 billion, most of the rise occurring in the
time and savings category. Net income after taxes of insured com­
mercial banks rose 10.1 percent above 1964, and represented a
return of 8.45 percent on total capital accounts.

xii



OPERATIONS
OF THE CORPORATION




PART

ONE




3

THE CORPORATION AND BANKING DEVELOPMENTS

The Federal Deposit Insurance Corporation was established for
the purpose of protecting bank depositors and helping to bring
about sound conditions in the nation’s banking system. Through
Federal deposit insurance, individual depositors in insured banks
presently are protected to a maximum of $10,000. The protection
afforded by the Corporation has buttressed the use of bank de­
posits as the major component of the nation’s money supply. As a
bank supervising agency, stemming from its function as an insurer,
the Corporation’s role has increased in scope and complexity with
the changes and rapid growth in the banking system.
Created by the Banking Act of 1933 at the depth of the Depres­
sion, the Corporation’s first urgent role was to help restore public
confidence in banks. During the years immediately following, its
efforts were directed largely toward rescuing weak banks and pay­
ing off deposits in closed banks. The success of the Corporation
in these early operations was essential to the establishment of de­
posit insurance on a sound basis. While the probability of recur­
rence of banking difficulties of such severity is quite remote, main­
tenance of confidence in banks is a lasting concern of the
Corporation.
Two years after its beginning, under the Banking Act of 1935,
the Corporation acquired certain additional powers of vital im­
portance to its supervisory functions. The Act of 1935 clarified and
made permanent the Corporation’s authority to examine insured
banks not members of the Federal Reserve System and to review
examination reports of members of the System. Provision was
made for termination of the insured status of any bank which
persistently engaged in unsafe or unsound practices or in violation
of laws or regulations. Among other provisions, the Act conferred
upon the Corporation the power to pass upon certain mergers,
branching activity, and changes in capitalization by nonmember
insured banks, to require reports of condition, and to prescribe
regulations regarding the payment of interest on deposits by these
banks.
The Act of 1935 completed the basic structure of deposit insur­
ance as it has served the nation during the ensuing three decades.
Although given specific functions in administering the insurance
program, the Corporation actually has quite limited powers. It can
neither charter nor close a bank, and it has passed upon only about
one-half of all banks recently admitted to deposit insurance. In ef­
fect, the supervisory powers and activities of the Corporation serve




4

FEDERAL DEPOSIT INSURANCE CORPORATION

to complement and strengthen those of other Federal and State
banking agencies. In the exercise of its powers, the Corporation
since its inception has recognized its responsibilities for fostering
the sound operation of insured banks.
Following the turbulent era of the 1930’s, when failures were
numerous, the Corporation was able to concentrate more of its
efforts on the improvement of conditions and practices in operating
banks. Its operations in failed bank cases meanwhile had dropped
sharply following the early 1940’s, as indicated by the trend of dis­
bursements shown in Chart A. From an average of 52 failures of
insured banks per year in 1934-1939, the rate fell to 26 annually in
1940-1942 and to an average of about 3 per year in subsequent
years. At the same time, banks were entering an era of rapid growth,
as total deposits in commercial banks more than doubled between
1941 and 1945.

During the decade after World War II the number of insured
banking institutions in the United States declined slightly; neverthe­
less the Corporation’s supervisory activities in bank examinations
and in other areas were considerably developed and expanded.
Of great importance to the Corporation’s activities at that time and
since have been the close liaison and working relationships with
the other Federal and State bank supervisory agencies. An agree­



THE CORPORATION AND BANKING DEVELOPMENTS

5

ment among the agencies, for example, made in 1938 and reaffirmed
in 1949, provided for uniform examination methods in appraising
bank assets. Another facet of this cooperation has been the con­
duct of examinations on a joint or concurrent basis with State
authorities.
In its capacity as insurer of deposits in all national banks, virtu­
ally all State-chartered commercial banks, and most mutual savings
banks, the Corporation for many years has assembled, processed,
and made available statistics for all banks. In 1947, under a cooper­
ative arrangement worked out by the Bureau of the Budget and the
three Federal banking agencies, the Corporation was given specific
responsibilities for compiling and publishing the “ all bank” data,
including data for noninsured banks.
The period since the late 1940’s has been one of vast growth
and change in the banking system. Shifts and growth of popula­
tion, and efforts to increase market penetration have led to a con­
tinuing rise in the number of banking offices, much of this in the
form of branching activity. Chart B shows that in the past two dec­
ades the number of banks changed little, while branches rose
almost threefold. Statewide branching, limited-area branching, and
unit banking are each prevalent in about one-third of the States,
reflecting in part the legal status of branch banking within each
CHART B

BRANCHES HAVE ACCOUNTED FOR A RISING PROPORTION
OF BANKING OFFICES
B A N K IN G

B A N K IN G O FFICES OF
CO M M E R C IA L B A N K S

OFFICES OF

C O M M ER C IA L B A N K S

4 0.000

40.000

BRANCHES
■

BANKS

30 .00 0

30,000

—

1945

'4 6

’47




’48

'49

'5 0

'51

'5 2

’53

’54

’55

’56

'5 7

’ 58

’59

'60

’61

'62

’ 63

’64

'6 5

6

FEDERAL DEPOSIT INSURANCE CORPORATION

State. Where branching is permitted, continuing merger activity
has also contributed to the increase in branches.
One of the most spectacular changes in recent years has been
the rapid growth of commercial banks’ loan portfolios. In the past
five years, for example, commercial banks increased their loans by
64 percent, while adding about 46 percent to total assets. Chart C
shows the increments in each of the major segments of bank loans
between 1960 and 1965.
CHART C

GROWTH AND DIVERSIFICATION OF BANK LENDING
HAS BEEN SUBSTANTIAL SINCE 1960*

LO AN S OF A L L
C O M M E R C IA L B A N K S

0

15

30

45

60

75

TOTAL

"O T H E R ”
A G R IC U L TU R E
SECU R ITIES
FIN A N C IA L
IN S T IT U T IO N S
CO N SU M ER
REAL ESTATE
C O M M ERCIAL
AND IN D U S TR IA L
60
B IL L IO N S OF DO LLA RS

75

90

•IN C R E A S E 6 /1 5 /6 0 -6 /3 0 /6 5

Banks have moved to accommodate the mounting volume of loan
demand in various ways, including greater use of amortized credit.
They have also adjusted to increased credit demands through a
more fully developed market for Federal funds, which has brought
a more efficient use of reserves. New uses of time certificates of
deposit and the development of capital notes and debentures, along
with higher interest rate ceilings on time and savings deposits, have
enabled banks to compete more effectively for funds.
Benefitting by the economy’s growth, banks have continued to
fulfill their traditional role as lenders to business and industry, but
in doing so have also moved ahead in developing an imaginative
array of techniques to finance new industries. Equipment leasing,
accounts receivable financing, and instruments for financing ex­



THE CORPORATION AND BANKING DEVELOPMENTS

7

ports are but a few examples of such areas of innovation or
development.
Commercial banks have become the predominant suppliers of
consumer instalment credit, as their loans of this type have risen
from less than $1 billion at the end of World War II to over $43 bil­
lion in 1965. Since 1960, consumer credit advanced by commercial
banks has continued to rise faster than their total loans. In addition
to the funds which banks supply to other lenders, they directly pro­
vide over two-fifths of the funds used in consumer instalment credit.
Similarly, the participation of banks in the field of mortgage financ­
ing has had a marked development. The fact that real estate credit
of commercial banks rose from $28 billion to $46 billion during the
past five years, but still declined slightly as a percentage of total
loans, dramatizes the great expansion in bank lending.
One of the most dynamic areas of banking operations today is
the expanding range of non-credit services offered. Banks find
themselves increasingly in the role of middlemen with respect to
customers and different segments of the money market. Financial
counseling requires services of an ever more sophisticated nature.
Trust services provided by banks have expanded rapidly to keep
pace with the flourishing economy, the increasing affluence of our
citizens, and the proliferation of pension funds. At the same time
the ever-rising volume of deposit and check transactions has con­
tinued unabated.
Fortunately, the development of computer systems seems to
promise deliverance from an otherwise almost insurmountable
problem of handling the burgeoning volume of check clearings.
Paradoxically, the day may be envisioned when payments of money
on deposit by the average individual will be handled through auto­
mated systems without the use of checks. Now employed also in
the preparation of payrolls, in the provision of check reconciliation
services for customers, and in various other activities, adaptations
of computers to more numerous and difficult tasks are rapidly
being developed.
As an insuring and supervisory agency, the Federal Deposit
Insurance Corporation has a direct concern in these developments
that affect the sound operation of banks and the quality of banking
services. Aware that it cannot itself stand still in the face of these
developments, the Corporation is currently engaged in a program
to strengthen its own capability to serve insured banks. It foresees
in particular the possibility of significant advances in the quality
of research in the areas of banking markets and banking structure.
Progress was made by the Corporation during the past year in
preparing to provide banks with data designed to assist them in
evaluating their performance. Early in 1966 the Corporation in


FEDERAL DEPOSIT INSURANCE CORPORATION

8

stalled a new computer system that has a capability for vastly more
rapid and extensive analysis of banking data than hitherto possible.
The many applications of the new equipment are promising, both
for supervisory purposes and in direct benefits to all banks. Among
other uses, it will permit the Corporation to meet more effectively
its responsibilities in the area of banking statistics. The computersupplied information made available by the Corporation should in
turn be useful to banks for many purposes— such as market pene­
tration studies, cost analyses, and evaluation of investment alter­
natives.
Recent years have brought greater management and supervisory
recognition of the importance of bank auditing. Significant oppor­
tunities exist for further development of the complementary rela­
tionships between auditing and the supervisory examination. As a
management tool, moreover, the detailed audit is assuming greater
importance with the growth and increasing complexity of bank
operations. At present, the Corporation is studying the more spe­
cific audit phases of its examination procedures and added empha­
sis in this direction is planned in its regular assignments.
In summary, the promotion of a sound banking system which
merits public confidence is a traditional, and still vital, concern of
the Corporation. The challenge of this task is sharpened by the vast
growth in size and complexity of the nation’s economy and banking
system. Banks have proven themselves adaptable, through improve­
ment of facilities, more efficient operating methods, and imaginative
programs for development of customer services. The Corporation
has responded to the needs of the day by instituting programs de­
signed to help banks adapt to change and improve their abilities
to meet growing needs for their services.
DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

At the end of 1965, the number of banks insured by the Corpora­
tion totaled 13,876, after a rise of 56 during the year. About 97
percent of all operating banks and trust companies in the United
States were insured.
Incorporated commercial banks, trust companies which receive
deposits, and mutual savings banks may qualify for participation in
Federal deposit insurance. National banks are insured upon their
chartering by the Comptroller of the Currency; those State banks
which become members of the Federal Reserve System must be
admitted to insurance. Other banks become insured upon applica­
tion to and approval by the Corporation’s Board of Directors.
The 448 banks not participating in Federal deposit insurance re­
flected a continuing decline in the number of such banks. Over one


DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

9

third of these banks, including nondeposit trust companies, private
banks, industrial banks, branches in the United States of banks
chartered in foreign countries, and several banks operating under
special codes or charters are not eligible for insurance. Of the re­
maining noninsured banks, 177 are mutual savings banks, virtually
all of which are located in Massachusetts and covered under an in­
surance system in that State.
Maximum insured protection for each depositor in an insured
bank was first established at $2,500 by the Banking Act of 1933.
Coverage was lifted to $5,000 in mid-1934, and subsequently re­
mained unchanged until increased in 1950 to its present level of
$10,000. The maximum insurance per depositor in an insured bank
applies to deposits owned in the same right and capacity. Coverage
may of course be extended readily by opening accounts at other
insured banks.
About 55 percent of all deposits in insured banks is covered by
Federal deposit insurance, this estimate being based upon the re­
sults of a survey in 1964 and subsequent deposit trends. The pro­
portion varies considerably among types of accounts. It is substan­
tially higher, for example, for the deposits of business firms and in­
dividuals than for deposits of public funds, the latter being pro­
tected also by surety bonds or pledges of securities in addition to
deposit insurance.
INSURANCE OPERATIONS TO PROTECT
DEPOSITORS OF FAILING BANKS
Banks failing in 1965. The Corporation made disbursements to
protect depositors in five banks which failed in 1965. The number
of depositors affected was somewhat below the number assisted in
the seven banks which failed in 1964, but the five banks held almost
twice as much in deposits. The name, location, and other data con­
cerning these banks are given in Table 1.
The five insured banks failing in 1965 had approximately 16,000
depositors and almost $44 million in deposits. One bank alone ac­
counted for 80-90 percent of the respective totals. Three of the
banks, including this one, were closed by their chartering agency
and placed in receivership, with the Corporation being named re­
ceiver in each case. Depositors of each bank were promptly paid
their insured deposits.
The liabilities of the other two banks were assumed by individual
insured banks, where deposits of the absorbed banks were immedi­
ately made available in full to depositors. The Corporation made
this possible by disbursing $456,882 to purchase assets of the dis­
tressed banks which were unacceptable to the assuming banks.



FEDERAL DEPOSIT INSURANCE CORPORATION

10

Table 1. INSURED BANKS CLOSED DURING 1965 REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION1

Case
number

Name and
location

Date of
closing
or deposit
assumption

Number
of de­
positors'
accounts

Amount of Date of first pay­ Depositors Deposits
paid
deposits
ment to deposi­ receiving
(in thou­
(in thou­ tors or disburse­
full re­
ment by FDIC
covery
sands)3
sands)2

15,810

Total

14,377

$43,837

$19,720

D eposi t payoff
275

The Brighton
National Bank,
Brighton, Colorado

January 22,1965

1,374

2,254

January 28,
1965

1,283

928

276

San Francisco
National Bank,
San Francisco,
California

January 22,1965

12,484

40,176

January 29,
1965

11,198

17,523

277

Winona State Bank,
Winona, Texas

February 5,1965

498

435

February 10,
1965

442

297

D ep o s it a ss u m p tio n
183

Malone State Bank,
Malone, Texas4

February 25, 1965

695

525

February 25,
1965

695

525

184

First State Bank,
Covington, Texas5

April 5,1965

759

447

April 5,1965

759

447

1 Figures adjusted to and as of December 31,1965.
2 Includes certain certificates of deposit carried on the books of some of the closed banks as deposits which are in
litigation to determine whether they represent funds received by the banks in the usual course of business.
3 Includes $8,559 thousand paid by FDIC claim agents in deposit payoff cases. All deposits were made available in
full through assuming banks, with FDIC assistance, in deposit assumption cases.
4 Liabilities assumed by First State Bank, Hubbard, Texas.
5 Liabilities assumed by The First National Bank of Itasca, Itasca, Texas.

Of the nearly 16,000 depositors in the five failing banks, about
1,500 had not received full recovery by the end of 1965. Almost twothirds of this number can obtain full recovery simply by present­
ing their claims to the Corporation or through offset against their
debts to the bank. Included amdng the remaining accounts are de­
posits in excess of the $10,000 maximum insurance coverage, and
certain certificates of deposit carried on the books of some of the
banks as deposits, the insured status of which is now in litigation.
Less than half of the amounts in these accounts in the five banks
had been paid at the end of 1965.
Recovery of disbursements made by the Corporation in these
five cases is proceeding. In its capacity as receiver in the three
receivership cases, the Corporation is liquidating the banks’ assets
and it shares pro rata with the owners of uninsured claims and
other common creditors in the proceeds from the liquidation. Assets
acquired by the Corporation in the two assumption cases are like­
wise being liquidated. The Corporation estimates that after it has
recovered all it can, it will have lost about $6.4 million in the five
cases.
Banks failing, 1934-1965. During its 32 years of operation the
Corporation has made disbursements to protect depositors in 459
failing banks. These banks had over 1.5 million depositors or ac­



INSURANCE OPERATIONS TO PROTECT DEPOSITORS

11

counts, and total deposits of $702 million. The extent and method
of this protection are shown in Table 2.
The Corporation has used two methods in meeting its insurance
obligation. In the deposit payoff method, employed in 275 cases,
payment of deposits up to the insured maximum was made di­
rectly to depositors by the Corporation’s claim agents. Reflecting
changes in the deposit insurance maximum, one case involved pro­
tection up to $2,500 per depositor, 244 cases up to $5,000, and 30
cases up to $10,000.
The deposit assumption method, which protects depositors in
full and makes their deposits available immediately, has been used
Table 2. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
1934-1965

Item

Deposit payoff
cases
(275 banks)

All cases
(459 banks)

Deposit
assumption cases
(184 banks)

Number or
amount

Percent

Number or
amount

Percent

Number or
amount

Percent

N u m b e r of dep o sito rs or acco unts
—t o t a l 1..............................................

1,532,325

100.0%

496,138

100.0%

1.036.187

100.0%

Full recovery received or a v a il­
a b le ..................................................
From FDIC 2..........................................
From offset4...........................................
From security or preference 5.................
From asset liquidation 6..........................

1,520,593
1,474,827
39,621
2,944
3,201

99.2
96.2
2.6
.2
.2

484,406
438,6403
39,621
2,944
3,201

97.6
88.4
8.0
.6
.6

1.036.187
1.036.187

100.0
100.0

Full recovery not received as of
D e c e m b e r 3 1 , 1 9 6 5 .................

11,732

.8

11,732

2.4

Terminated cases..................................
Active cases 7..........................................

2,863
8,869

.2
.6

2,863
8,869

.6
1.8

A m o u n t of depo sits (in th o u s an d s )
—t o t a l ..............
.........................

$701,615

100.0%

$234,116

100.0%

$467,499

Paid or m ad e a v a ila b le ..................

671,538

95.7

204,039

87.2

467.499

100.0

By FDIC2................................................
By offset 9...............................................
By security or preference 10...................
By asset liquidation 11............................

618,582
12,316
24,283
16,357

88.2
1.7
3.5
2.3

151,0838
12,316
24,283
16,357

64.5
5.3
10.4
7.0

467.499

100.0

N o t paid as of D e c e m b e r 3 1 f
1 9 6 5 ................................................

30,077

4.3

30,077

12.8

Terminated cases....................................
Active cases 12......................................

1,804
28,273

.3
4.0

1,804
28,273

.8
12.0

100.0%

1 Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.
2 Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks,
facilitated by FDIC disbursements of $198,531 thousand, in deposit assumption cases.
3 Includes 57,453 depositors in terminated cases who failed to claim their insured deposits (see note 8).
4 Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the
absence of offsets.
5 Excludes depositors paid in part by FDIC whose deposit balances were less than the insurance maximum.
6 The insured portions of these depositor claims were paid by the Corporation.
7 Full recovery available to 7,957 of these depositors.
8 Includes $200 thousand unclaimed insured deposits in terminated cases (see note 3).
9 Includes all amounts paid by offset.
10 Includes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid
by Corporation.
11 Includes unclaimed deposits paid to authorized public custodians.
12 Includes $10,196 thousand representing deposits available but unclaimed, expected through offset, or expected
from proceeds of liquidations; and $3,770 thousand representing up to $10,000 of each of certain certificates of deposit
whose insured status is in litigation.




12

FEDERAL DEPOSIT INSURANCE CORPORATION

in 184 cases. Under this procedure the Corporation acquires, by
purchase or loan, the assets of the distressed bank which are un­
acceptable to the absorbing bank, enabling the latter to assume the
liabilities of the distressed bank. Use of this method is limited to
situations wherein the Corporation expects it will reduce its risk
or avert a threatened loss, and to where the action will facilitate a
merger with another insured bank. The method is not ordinarily
suitable for situations where much uncertainty exists as to the
nature and extent of a bank’s deposit liabilities.
The Corporation has built its insurance operations around the
twin objectives of restoring deposits to depositors as promptly as
possible, while at the same time seeking to maximize recovery on
its disbursements. The latter objective, which requires patience and,
above all, avoidance of any disruption of local markets, accounts
for the time required to liquidate assets acquired in these cases,
a problem accentuated by the necessarily adverse quality of the
assets. At the end of 1965, some assets remained to be liquidated
from 29 failed bank cases, including the five initiated during 1965.
These active cases account for the major part of the accounts and
deposits not yet paid shown in Table 2. Even including these, how­
ever, less than 1 percent of the accounts in the 459 insured banks
closed since January 1, 1934, had not been paid in full by the end
of 1965.
Corporation disbursements and losses, 1934-1965. Since begin­
ning operations, the Corporation has disbursed or expects to dis­
burse $402 million in fulfilling its insurance obligation. Principal
disbursements in the 184 assumption cases totaled $199 million
through 1965; and in the 275 deposit payoff cases, $152 million.
Recoveries made or expected at the end of 1965 totaled $360
million, resulting in a loss to the Corporation estimated at $42
million, excluding $9 million of interest and allowable return re­
ceived by the Corporation on its advances. Details of disburse­
ments, recoveries and losses are shown in Table 3.
Provision of facilities when banks are failing. The Corporation’s
responsibility to depositors goes beyond protecting their deposits
to providing them a banking facility, an objective that neither pay­
offs nor assumptions are necessarily able to accomplish.
Since its establishment the Corporation has had the authority to
organize and operate a “ Deposit Insurance National Bank” , re­
stricted primarily to accepting and paying deposits. Such a bank
normally replaces a failed bank and provides limited banking serv­
ice to a community until permanent facilities are available. The
limited and temporary character of such a facility is indicated by its
inability to make loans, and by the requirement that it be liquidated



INSURANCE OPERATIONS TO PROTECT DEPOSITORS
Table 3.

13

ANALYSIS OF DISBURSEMENTS, RECOVERIES AND LOSSES
IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1934-DECEMBER 31, 1965
(In thousands)
Type of disbursement

A ll d is b u rs e m e n ts —to ta l.
P rin c ip a l d is b u rs e m e n ts in d e p o sit a ss u m p tio n and
pa y o ff c ases—t o t a l...........................................................
Loans and assets purchased (184 deposit assumption cases):
To December 31,1965..........................................................
Estimated additional.............................................................
Deposits paid (275 deposit payoff cases):
to December 31,1965...........................
Estimated additional..............................
A dvances and e xp e n s es in d e p o sit a s s u m p tio n and
p ayoff c ases—t o t a l...........................................................
Expenses in liquidating assets in 184 deposit assumption cases:
Advances to protect assets............................................................
Liquidation expenses.....................................................................
Insurance expenses.......................................................................
Field payoff and other insurance expenses in 275 deposit payoff cases.
O th er d is b u rs e m e n ts —t o t a l...................................................
Assets purchased to facilitate termination of liquidations:
To December 31, 1965...................................................................
Estimated additional......................................................................
Unallocated insurance expenses........................................................

Disbursements

Recoveries1

Losses

$402,196

$359,877

$42,319

$350,181

$310,105

$40,076

$198,531 1

$184,959 1
292 /

$13,280

150,873 1
777 /

115,583 1
9,271 /

26,796

$ 50,044

$ 47,338

$ 32,875
14,463
248
2,458

$ 32,875
14,463

$ 1,971

$ 2,434

$

(463)3

$ 1,772 |

$ 2,4191
15/

$

(662)4

.........i99

(2)

$ 2,706

$

(2)

(2)

248
2,458

199

1 Excludes recoveries in excess of amounts due the Corporation, which were returned to stockholders and holders of
capital obligations of failed banks. Does not include $9.3 million of interest and allowable return received by the Corpora­
tion on its advances.
2 Not recoverable.
3 Net recovery in excess of disbursements.
4 Net profit and net income.

if it has not been transferred to private ownership within two years.
The first such banks, numbering 24, were organized solely to
pay depositors of insured banks placed in receivership during the
operation of the temporary insurance plan, and were terminated
when payoffs were completed. After this procedure for paying de­
positors was made optional in the Banking Act of 1935, only three
such banks have been organized. One, organized in 1935, was cap­
italized and chartered as a privately-owned bank the next year,
and continued in operation until it consolidated with another bank
in 1958. No further use of this authority was made until 1964, when
two Deposit Insurance National Banks were organized, and these
continued in operation during all of 1965 under Corporation
auspices.
In 1950 the Corporation was given another tool to meet situations
where an insured bank which has closed or is threatened with fail­
ure provides vital banking services. If continued operation of such
a bank is deemed essential to provide adequate banking service in
the community, the Corporation may make loans, purchase assets,
or deposit funds in the bank. So far this authority has not been
exercised.



14

FEDERAL DEPOSIT INSURANCE CORPORATION

SUPERVISORY ACTIVITIES

That the activities of banks substantially affect the public interest,
and that consequently these institutions should be subject to some
measure of public regulation has long been recognized. Banks,
whose checking deposits provide the lubricant which makes possi­
ble the functioning of a modern economy, are also a primary means
for channeling the economy’s savings into productive outlets. As
the cornerstone of the nation’s financial structure, banks have the
responsibility of providing a safe depository for funds and a con­
tinuity of basic services, while actively supporting growth and de­
velopment of their communities.
Supervision of banks is a basic function of the bank chartering
agencies. National banks are chartered and supervised by the U.S.
Comptroller of the Currency. State banks are chartered under the
various State laws, and those State banks which are members of
the Federal Reserve System are supervised also by the Federal
Reserve authorities. Although the Corporation does not charter
banks, as insurer of deposits it has direct supervisory functions with
respect to State nonmember banks, and some aspects of its super­
vision extend to all insured banks.
Applications to become insured or operate a branch. Through the
power to regulate the formation of banks and acquisition of
branches, the bank supervisory agencies seek to promote sound­
ness and a desirable degree of competition in banking. Before ap­
proval of an application for insurance, the law requires that the
Corporation must give consideration to 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 finally, whether or not the bank’s corporate powers are
consistent with the purposes of the Federal deposit insurance law.
The Corporation passes upon applications by State nonmember
banks for deposit insurance; national and State member banks be­
come insured upon certification by the appropriate Federal char­
tering or supervisory authority after consideration of the six factors.
Throughout most of the Corporation’s life, the chartering authorities
have sought its opinion regarding a bank’s insurance eligibility be­
fore issuing a charter.
Applications submitted by nonmember insured banks and ap­
proved by the Board of Directors in 1965 are shown in Table 4.
Approvals included 97 admissions to insurance, of which 79 were
new banks, and 440 applications for branches. During the year, 9
applications for insurance, 2 applications for branches, and 4 other
applications were disapproved. These data relate to formal applica­



SUPERVISORY ACTIVITIES

15

tions submitted to the Board of Directors; the number of disapprov­
als tends to be reduced by withdrawal or improvement of applica­
tions after preliminary discussion prior to their submission to the
Board.
Table 4. APPLICATIONS APPROVED BY THE BOARD OF DIRECTORS
OF THE FEDERAL DEPOSIT INSURANCE CORPORATION
IN 1964 AND 1965
Type of application

1965

1964

A ll a p p lic a tio n s 1........................................................................................................

1,004

895

A d m is sio n to in s u ra n c e —t o t a l........................................................................
New banks..................................................................................................................
Operating banks..........................................................................................................

97
79
18

130
112
18

C o n tin u a tio n of in s u ra n c e of b anks w ith d ra w in g fro m Fed e ra l
R eserve S y s te m ..............................................................................................

18

23

C h a n g e in ty p e o f bu sin e ss —t o ta l.................................................................
To engage in trust business or to provide additional fiduciary services 2...................
To enlarge powers of a branch...................................................................................
Change from industrial or savings banking to commercial.........................................

52
45
5
2

70
65
5

A s s u m p tio n of de p o sit lia b ilitie s —t o t a l.....................................................
Of another insured bank.............................................................................................
Of a noninsured bank..................................................................................................
Of a nondeposit financial institution...........................................................................
Of a branch of a noninsured foreign bank..................................................................

52
45
5
2

33
273
1
3<
2

O p era tio n of b ra n c h e s —t o t a l...........................................................................
New branch offices......................................................................................................
Banks becoming branches as result of absorbtion......................................................
Continue branches of absorbed predecessor...............................................................
Conversion of mobile branch to stationary branch.....................................................

440
349
38
46
7

368
318
26
24

C hange of lo c a tio n —t o t a l...................................................................................
Main offices.................................. ..............................................................................
Branches......................................................................................................................

289
206
83

248
168
80

Retirem ent or adjustm ent of c a p ita l...................................................

48

21

S ervice of person convicted of dish onesty or breach of tr u s t...........

3

2

E xem p tio n fro m re q u ire m e n ts of S e c u ritie s Exchange A ct of 1 9 3 4 .

3

O th e r ............................................................................................................................

2

1 Excludes applications supplementary to a primary application; for example, for an extension of time with respect to
an insurance commitment for a new bank. Also excludes a few applications acted upon in prior years on which additional
action was taken during 1964 and 1965.
2 Includes permission to four new banks in 1964, and two in 1965, to do a trust business.
3 In one case only a branch of an insured bank was absorbed.
4 Includes two safe deposit companies and one savings and loan association.

Merger transactions. Bank mergers have constituted one of the
most active areas of banking in recent years. Concern for preserva­
tion of the benefits from competition in the face of increasing num­
bers of mergers has led Congress to invest the bank supervisory
agencies with greater responsibilities in this area.
The Bank Merger Act of 1960 requires approval by the appropri­
ate Federal banking authority for an insured bank to engage in any
absorption transaction. Consent of the Corporation is required for
any transaction in which the resulting bank is an insured bank not
a member of the Federal Reserve System and is outside the District



16

FEDERAL DEPOSIT INSURANCE CORPORATION
TABLE 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS
AND ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)
OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1965
Offices operated2
Banks

Number
of
banks1

Resources
(in
thousands)2

Prior to
trans­
action

298
131
167
66
20
74
7

$26,638,773
24,543,175
2,095,598
951,130
399,445
719,578
25,445

2,063
1,775
288
111
45
124
8

After
trans­
action

ALL CASES
B an ks in v o lv e d ..........................................................................
Absorbing banks............................................................................
Absorbed banks3...........................................................................
National4....................................................................................
State banks members FRS.........................................................
Not members FRS5....... .............................................................
Noninsured institutions3............................................................

2.057
2.057

CASES WITH RESULTING BANK
A NATIONAL BANK
$14,905,078
B an ks in v o lv e d ..........................................................................
151
1,253
Absorbing banks............................................................................
63
13,864,528
1,097
Absorbed banks.............................................................................
88
1,040,550
156
National......................................................................................
44
436,225
77
State banks members FRS.........................................................
10
138,594
18
Not members FRS......................................................................
34
61
465,731
Noninsured institutions..............................................................

1.257
1.257

CASES WITH RESULTING BANK A
STATE BANK MEMBER OF THE
FEDERAL RESERVE SYSTEM
B an ks in v o lv e d ..........................................................................
Absorbing banks............................................................................
Absorbed banks.............................................................................
National......................................................................................
State banks members FRS.........................................................
Not members FRS...............................................................
Noninsured institutions..............................................................

48
21
27
8
6
13

$ 8,095,636
7,579,643
515,993
351,217
88,046
76,730

435
397
38
11
7
20

437
437

99
47
52
14
4
27
7

$ 3,638,059
3,099,004
539,055
163,688
172,805
177,117
25,445

375
281
94
23
20
43
8

363
363

CASES WITH RESULTING BANK NOT
A MEMBER OF THE
FEDERAL RESERVE SYSTEM
B an ks in v o lv e d ..........................................................................
Absorbing banks............................................................................
Absorbed banks.............................................................................
National4....................................................................................
State banks members FRS.........................................................
Not members FRS5....................................................................
Noninsured institutions3............................................................

1 The number of resulting banks is smaller than the number of cases, which totaled 149, because a few banks partici­
pated in more than one case.
2 Where an absorbing bank engaged in more than one transaction, the resources included are those of the bank before
the latest transaction, and the number of offices before the first and after the last transaction.
3 Includes 2 institutions other than banks (one holding company and one safe deposit company).
4 Includes one case in which a State bank not a member of the FRS absorbed 2 branches of a national bank; resources
and offices of branches (counted as 2 banks) are included in this table.
5 In one case a newly organized State bank not a member of the FRS absorbed a branch (counted in the table as a
bank) of a bank of the same class; resources and office of branch are included in this table.

of Columbia, or which involves a noninsured bank or institution.
The other Federal banking agencies have similar authority over
merger transactions in which the resulting bank is under their
jurisdiction.
In making their determinations in 1965, each agency was required
to consider the effect of the transaction on competition, including
any tendency toward monopoly, in addition to the six banking fac­
tors enumerated above. Each of the agencies, along with the At­



SUPERVISORY ACTIVITIES

17

torney General, submitted advisory reports concerning the effect
of the transaction on competition to the agency responsible for de­
cision in the given case.
There were 298 banks involved in merger applications approved
by the three Federal agencies during 1965. The 167 absorbed finan­
cial institutions, mostly banks, had resources totaling $2,096 million;
nearly all continued in operation as banking offices. Further infor­
mation regarding the applications approved during 1965 is shown
in Table 5.
Merger applications approved by the Corporation during 1965
involved the absorption of 52 financial institutions with resources
of $539 million. Data concerning these cases, with a statement for
each giving the basis for approval and a summary by the Attorney
General of his report regarding the competitive factors involved,
are shown in Table 15, pp. 33-77.
Bank examinations. As a basic supervisory tool, the bank exam­
ination develops information which forms a basis for the Corpora­
tion’s decisions affecting individual banks. Included in examination
reports are details of the bank’s financial condition, a report of any
violations of pertinent banking laws and regulations, and finally an
evaluation of the bank's management.
Table $. BANK EXAMINATION ACTIVITIES OF THE FEDERAL
DEPOSIT INSURANCE CORPORATION IN 1964 AND 1965
Number
Activity

F ield e x a m in a tio n s and in v e s tig a tio n s —t o t a l...................................

1965

1964

12,981

12,484

E x a m in a tio n s of m ain o ffic e s ................................................................
Regular examinations of insured banks not members of Federal Reserve System
Re-examinations; or other than regular examinations.......................................
Entrance examinations of operating noninsured banks.....................................

6,796
6,618
146
32

6,753
6,592
124
37

E x a m in a tio n s of d e p a rtm e n ts and b ra n c h e s ...................................
Examinations of trust departments....................................................................
Examinations of branches...................................................................................

4,439
1,056
3,383

3,977
981
2,996

In v e s tig a tio n s ..................................................................................................
New bank investigations....................................................................................
State banks members of Federal Reserve S y s te m .........................
Banks not members o f Federal Reserve S y s te m .............................
New branch investigations..................................................................................
Mergers and consolidations................................................................................
Miscellaneous investigations..............................................................................

1,746
151
6
145
435
144
1,016

1,754
214
5
209
373
147
1,020

W as h in g to n o ffic e rev iew of rep o rts of e x a m in a tio n of in su re d
b a n k s —t o t a l.......................................................................................................
National banks...........................................................................................................
State banks members of Federal Reserve System....................................................
State banks not members of Federal Reserve System.............................................

9,077
1,607
603
6,867

7,600
57
1,134
6,409

The policy of the Corporation is to examine each bank under its
supervision at least once each year. More than one examination
may be made if corrective action is involved, or if otherwise deemed



18

FEDERAL DEPOSIT INSURANCE CORPORATION

necessary. Although authorized by law to examine any insured
bank for insurance purposes, in practice the Corporation reviews
the examination reports of the Federal supervisory agencies and
rarely makes its own examinations of national banks or State mem­
ber banks.
Numbers of examinations and investigations made in 1964 and
1965, along with reviews of reports, are shown in Table 6.
Citations for unsafe or unsound banking practices and violations
of law. When examination of a bank reveals continuation of unsafe

or unsound banking practices or violation of law or regulations, the
Corporation has the authority and duty to begin proceedings for
termination of the bank’s insured status. These proceedings, pre­
scribed under Section 8 (a) of the Federal Deposit Insurance Act,
are started only after cooperative actions between the bank and the
Corporation have been exhausted. After formal notice of the viola­
tions or objectionable practices, the bank is given a stipulated
period for their correction, and later opportunity, if the proceeding
is continued, to present its case at an administrative hearing. If and
when insurance is withdrawn, the insured deposit of each depos­
itor on the date of termination, less later withdrawals, continues to
be insured for two years.
During 1965, proceedings were instituted against four banks.
One case was closed when the bank suspended. Four cases were
still pending at the year’s end, including one case begun in 1964.
During the Corporation’s entire period of operation, actions to
terminate insurance have been taken against 193 banks. In only 12
cases have proceedings reached the ultimate stage of actual or
scheduled termination. A summary of the outcome of all termination
proceedings is given in Table 7.
Regulation of bank securities. During 1965 the banking industry
for the first time became substantially involved with Federal securi­
ties regulation. Public Law 88-467, approved by the President on
August 20,1964, extended the registration and reporting provisions
of the Securities Exchange Act of 1934 to securities traded in the
over-the-counter market, including securities issued by banks.
Under new section 12(g) of the Act, an issuer of securities, having
assets exceeding one million dollars and a class of equity security
held of record by 750 or more persons (500 after July 1, 1966), is
required to register such security within 120 days after the last day
of its first fiscal year on which it meets the minimum standards.
Additional reporting requirements are contained in sections 13,
14(a), 14(c) and 16 of the Act. The responsibility for administering
and enforcing the Act with respect to insured banks is vested by
section 12(i) in the three Federal bank supervisory authorities. The



19

SUPERVISORY ACTIVITIES
Table 7. ACTIONS TO TERMINATE INSURED STATUS OF BANKS
CHARGED WITH UNSAFE OR UNSOUND BANKING PRACTICES OR
VIOLATIONS OF LAW OR REGULATIONS, 1936-1965
Disposition or status

Started
during 1965

T o ta l ba n k s a g a in s t w hich a ction w as t a k e n ...............................................
C ases c lo s e d ............................................................................................................
Corrections made.........................................................................................................
Banks absorbed or succeeded by other banks............................................................
With fin an cia l a id o f the C o rp o ra tio n ...........................................................
W ithout fin an cia l a id of the C o rp o ra tio n .....................................................
Banks suspended prior to setting date of termination of insured status by Corporation.
Insured status terminated, or date for such termination set by Corporation, for failure
to make corrections..............................................................................................
Banks suspended p rio r to or on date of term ination o f insured status
Banks continued in operation 2......................................................................
C ases not closed D ec e m b e r 3 1 , 1 9 6 5 .........................................................
Correction period not expired.....................................................................................
Action deferred pending analysis of examination.......................................................
Date set for hearing.....................................................................................................

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 latter action is included.
2 One of these suspended 4 months after its insured status was terminated.

Federal Deposit Insurance Corporation has this responsibility for
all insured State nonmember banks.
Regulations of the Corporation implementing the Act became
effective January 1,1965, and were published in the Federal Regis­
ter of January 12, 1965. Designated Part 335, these regulations set
forth procedures for meeting registration and reporting require­
ments. Forms and instructions provide itemized requirements for
the content of each of the reports and statements specified in the
Act: (1) the registration statement; (2) the annual report; (3) the
current report; (4) the quarterly report; (5) the proxy statement;
and (6) reports by directors, officers, and large stockholders of
their transactions in the bank’s stock.
Because of certain built-in delays in the statute and the fact that
almost all banks have a fiscal year that coincides with the calendar
year, the new legislation had little impact upon banks until 1965.
By April 30, 1965, the 120-day deadline as specified in the Act, 42
insured State nonmember banks had filed registration statements
with the Corporation. Later in the year, after being granted an ex­
tension of time, 34 additional banks filed registration statements,
bringing to 76 the total number of such statements filed with the
Corporation during 1965. Under its authority to exempt a bank from
the registration and reporting requirements, the Corporation ap­
proved three of five applications for such exemption for a period
of one year.
Since registration does not become effective until 60 days after
the filing of the registration statement, and no additional reports
are required until such date, periodic and supplemental reporting



20

FEDERAL DEPOSIT INSURANCE CORPORATION

was principally confined to the last several months of 1965. During
the year, 20 current reports were filed by 17 banks, and 209 quar­
terly reports were received. Proxy soliciting material was filed by
management for special meetings of stockholders in 13 cases.
Initial statements of beneficial ownership of securities were re­
ceived from 1,686 “ insiders,” or an average of almost 23 per bank,
along with 438 statements of changes in beneficial ownership of
securities.
Within the Corporation, administration of the statute and regula­
tions is assigned to the Division of Examination. Registration state­
ments and other reports are examined for compliance with the
regulations and the standards of adequate disclosure. If the docu­
ment is materially deficient, an amendment is requested. In the
case of proxy solicitations, material is filed in preliminary form
prior to the date of the proposed solicitation. Where preliminary
material fails to comply with requirements, the responsible party
is advised informally of necessary corrections prior to furnishing
security holders with definitive proxy material. In neither situation
does the review or clearance of material imply approval or certify
the accuracy of any statement.
To make this information widely available to investors, state­
ments and reports of banks under the Corporation’s jurisdiction
are available for public inspection both at its main office in Wash­
ington and at each of the twelve Federal Reserve Banks. The
statements and reports of State banks supervised by the Federal
Reserve System also are available at these locations. Copies of all
public filings are available in reasonable quantities free of charge
from the Corporation.
Reports from banks. Reports obtained from banks antedate
examination as a supervisory tool, and continue to provide valu­
able information useful both in supervision and in the analysis of
economic conditions. Each year since 1934 the Corporation has
obtained reports from insured banks regarding their assets, liabil­
ities and income. Since 1935 it has also collected data concerning
assets and liabilities of noninsured banks, and in 1947 was as­
signed responsibility for preparing and issuing data relating to all
banks operating in the United States.
Until 1961 each insured bank submitted reports of condition at
or near the middle and end of each year. Since the beginning of
1961, and as a result of statutory changes in the method of com­
puting deposit insurance assessments, each insured bank has filed
four reports of condition a year. In 1965, reports were required for
April 26, June 30, October 13, and December 31. Data from the
mid-year and year-end reports are tabulated and, classified by
State, are published separately by the Corporation.



SUPERVISORY ACTIVITIES

21

Reports of income of all banks insured by the Corporation are
submitted on a calendar year basis and, consolidated and classi­
fied in different ways, are published in the Corporation’s Annual
Report. No information is received by the Corporation on the
income of noninsured banks.
Tabulations of the assets and liabilities of both insured and non­
insured banks, and data on the income of insured banks, will be
published in the forthcoming full Annual Report.
Conferences of supervisors of State banks. The Corporation added
a new dimension to its long history of cooperation with State
supervisors of banks by inaugurating a series of conferences in
mid-1964. At the first conference, in June of that year, the Cor­
poration was host to supervisors of banks in the States comprising
FDIC District 12. In the first half of 1965 two further conferences
were held. At the one in February, the guests were State super­
visors of banks in the States making up FDIC Districts 1 and 2.
Another in May brought together supervisors of banks in the States
comprising FDIC Districts 3, 6, 7 and 8. Attendance and other
details concerning these conferences were included in the Cor­
poration’s Reports to Insured Banks for June 30, 1964 and June
30, 1965, respectively.
The series of conferences was continued on November 16-18,
1965 when officials of the Corporation met with bank supervisors
and their senior staff aides from States in FDIC Districts 4 and 5.
The discussions ranged over a variety of subjects, including pro­
posed or pending legislation at both the State and Federal levels,
developments in bank auditing, shifting patterns in assets and
liabilities of banks, the outlook for branch banking and competition
with other financial institutions. Through exchange of attitudes and
information on these and other matters the Corporation believes
it has contributed to better understanding among bank supervisors
generally.
LEGAL DEVELOPMENTS
Federal legislation. In 1965 both the domestic and international
operations of banks were the subject of Federal legislation. Meas­
ures pertaining to certain types of bank lending included Public
Law 88-59, approved on June 30, 1965, which provides additional
necessary assistance to victims of natural disasters under existing
SBA programs. The act increases the maturity of Small Business
Administration disaster loans from 20 to 30 years. It provides for
a suspension of up to 5 years on the payment of principal and
interest on disaster loans at the discretion of the Small Business
Administration upon showing of need. If the disaster loan upon



22

FEDERAL DEPOSIT INSURANCE CORPORATION

which a suspension is granted is a participation loan, SBA shall,
at the request of the lender, (1) purchase the participating lender’s
portion of the loan; or (2) in order to avoid default of the loan,
make payments to the participating lender on behalf of the bor­
rower during the suspension period.
The Housing and Urban Development Act of 1965 provides addi­
tional authorizations and funds to continue Federally assisted
housing and urban development programs for 4 years and makes
improvements affecting nearly every housing program. This act,
Public Law 89-117, approved August 10, 1965, includes 11 titles
and approximately 98 sections. Under Title XI, Section 24 of the
Federal Reserve Act is amended, extending from 18 to 24 months
the maximum maturity of construction loans made by commercial
banks.
The Coinage Act of 1965 (Public Law 89-81) was approved on
July 23, 1965. This act is intended to conserve the nation’s dwin­
dling stock of silver by providing for minting 10- and 25-cent pieces
containing no silver, and 50-cent pieces of 40 percent silver con­
tent. The act makes numerous changes in coinage laws to smooth
the transition to the new coins. Under certain circumstances, the
use of coins as security for loans may also be prohibited.
On August 28, 1965, the President approved Public Law 89-145
to permit government agencies to draw a single check, represent­
ing payments to one or more persons, in favor of a financial insti­
tution used by such persons as a depository.
Federal legislation in 1965 included several measures relating
to balance-of-payments transactions and conservation of the na­
tion’s gold. Public Law 89-3, approved on March 3,1965, eliminated
the requirement that Federal Reserve Banks maintain a gold cer­
tificate reserve of at least 25 percent against their deposit liabili­
ties. A similar reserve requirement with respect to Federal Reserve
notes was not affected.
The President signed Public Law 89-79 on July 21, 1965, extend­
ing for three additional years the provisions in sec. 19 of the Fed­
eral Reserve Act and sec. 18(g) of the Federal Deposit Insurance
Act permitting domestic banks to pay interest on time deposits of
foreign governments at rates differing from those applicable to
domestic depositors.
Public Law 89-175, signed on September 9, 1965, established a
program of voluntary agreements among banks and other financial
institutions directed to the curtailment of the private flow of dollar
funds and credit from the United States to foreign countries. Par­
ticipants are given immunity from antitrust laws.
Rules and regulations of the Corporation. On December 7, 1965,
Part 329 of the Corporation’s regulations was amended to conform



LEGAL DEVELOPMENTS

23

with an amendment adopted by the Board of Governors of the
Federal Reserve System providing for payment of a maximum
permissible rate of interest of 51 percent per annum on certain
/2
deposits by national and other member banks. Section 329.6 was
amended to permit insured State nonmember banks to pay a maxi­
mum permissible rate of 51 percent per annum, compounded
/2
quarterly, regardless of the basis upon which such interest may
be computed, on any time deposit, and to pay a maximum permis­
sible rate of 4 percent per annum, compounded quarterly, regard­
less of the basis upon which such interest may be computed, on
any savings deposit.
Ruling of Commissioner of Internal Revenue. A revised method
for computing annual additions to reserves for bad debts by banks
for taxable years ending after December 31, 1964 was provided in
a ruling by the Commissioner of Internal Revenue (Rev. Rul. 65-92,
also released as Technical Information Release 707, March 15,
1965). It superseded previous rulings issued December 8, 1947
(mimeograph 6209, C.B. 1947-2, 26) and April 8,1954 (mimeograph
54-55, Rev. Rul. 54-148, C.B. 1954-1, 60).
The 1947 ruling authorized a bank to use a 20-year moving aver­
age, including the taxable year, in determining annual additions to
bad debt reserves which can be deducted from taxable income.
For any portion of such 20-year period during which the bank was
not in existence, the bank was authorized to use the average expe­
rience of other similar banks with respect to the same type of
loans. The 1954 ruling gave a bank the alternative of computing its
loss experience on the basis of any 20 consecutive years of its
own experience after 1927.
The new ruling effective for 1965 is intended to minimize the
differences in permissible reserves existing among banks under
prior rulings. In lieu of using a loss experience factor determined
on an individual basis, a bank is now allowed deductions for addi­
tions to its reserve for bad debts until the reserve equals 2.4 per­
cent of loans outstanding at the close of the taxable year, subject
to certain exceptions and limitations.
Text of statutes, regulations, and rulings. Pertinent provisions of
the foregoing statutes, regulations, and rulings, along with a sum­
mary of significant State banking legislation, will be published in
the full report to be released later.
ADMINISTRATION OF THE CORPORATION
Structure and employees. Management of the Corporation is
vested in a Board of Directors consisting of three members, two
of whom are appointed for six-year terms by the President, by and



24

FEDERAL DEPOSIT INSURANCE CORPORATION

with the advice and consent of the Senate. One of the two Directors
so appointed serves as Chairman of the Board. The Comptroller of
the Currency (also a Presidential appointee) serves ex officio as
the third member of the Board. Not more than two Directors may
be members of the same political party.
Mr. K. A. Randall, Chairman of the Board, was appointed a
Director on March 10, 1964. He was elected to his present posi­
tion on April 25, 1965, after designation of Chairman Joseph W.
Barr to become Under Secretary of the Treasury. Mr. Barr con­
tinued as Director until his resignation effective April 29, 1965.
Mr. James J. Saxon, Comptroller of the Currency, was on the
Board throughout 1965. The Board was returned to full strength
by the appointment as Director of Mr. William W. Sherrill to a full
term beginning March 4,1966.
Corporation officials are listed on page v, opposite an organiza­
tional chart of the Corporation. During the year a realignment of
audit functions resulted in the elimination of the former Audit
Division, and transfer of its responsibilities for the Corporation’s
independent internal audit and liquidation audit to the newlycreated position of Auditor of the Corporation. The field personnel
of the former Audit Division were transferred to the Assessment
Branch of the Office of the Controller, and audit responsibilities
in the examination area were assigned to the Examination Division.
In 1965 the increase of Corporation personnel totaled 58, con­
sisting of 17 in the Washington office and 41 in the District offices.
In the home office, the increase was spread among the Legal,
Liquidation, Examination, and Research and Statistics Divisions.
Outside of Washington, the increase occurred entirely in the
Division of Examination field offices. Transfers of audit personnel
were reflected primarily in the increase of Executive Offices em­
ployees and in the addition of field staff in the Office of the
Controller. A distribution of the Corporation’s employees at the
end of 1964 and 1965 is shown in Table 8.
Table 8. NUMBER OF OFFICERS AND EMPLOYEES OF THE FEDERAL
DEPOSIT INSURANCE CORPORATION, DECEMBER 31,1964 AND 1965
Washington
office

Total

District and other
field offices

Unit
1965

1964

1965

1964

1965

1964

T o t a l.................................................

1,446

1,388

363

346

1,083

1,042

Directors..........................................
Executive Offices.............................
Legal Division..................................
Division of Examination..................
Division of Liquidation....................
Division of Research and Statistics..
Office of the Controller....................
Audit Division..................................

2
43
36
1,078
101
72
114

3
29
26
1,013
108
65
106
38

2
43
36
62
45
72
103

3
29
26
58
41
65
106
18

0
0
0
1,016
56
0
11

0
0
0
955
67
0
0
20




ADMINISTRATION OF THE CORPORATION

25

From an average employment of 831 field bank examiners, 111
left the employ of the Corporation in 1965. Forty-four of the exam­
iners went to banks or to State or Federal supervisory agencies.
For all employees, exclusive of temporary personnel, the turnover
rate was 16 per 100, the same as in 1964. Among field bank
examiners, who comprise the largest class of employees, the rate
was 13 per 100. However, excluding several examiners who ac­
celerated their retirement under Public Law 89-314, the turnover
ratio was 12 per 100, again equal to the 1964 rate.
During the year, 148 temporary field liquidation employees were
hired and 167 were separated. At year-end, the employment of
temporary field liquidation personnel totaled 48. These temporary
field personnel, who perform primarily clerical tasks, are appointed
at the site of each bank liquidation and their services terminated
as individual liquidations are completed.
Employee benefits and programs. Corporation personnel are
covered under benefit plans generally available to Federal em­
ployees. These include retirement annuities, group life insurance,
hospitalization and medical payments insurance, compensation for
on-the-job injuries, unemployment benefits, and competitive leave
allowances. In such of these programs as provide an option,
upwards of 90 percent of the employees participate. The Corpora­
tion also provides facilities for an employees’ credit union; this
is particularly helpful to examiners, who are prohibited by law
from borrowing from insured banks.
For many years, the Corporation has had a program under
which on-the-job training of examiners is supplemented by exten­
sive educational courses. These consist of correspondence courses
offered by the American Institute of Banking, graduate schools of
banking at several leading universities, and supervisory agency
schools conducted jointly with the Federal Reserve Board. The
latter include schools for trainees and junior examiners, as well
as training exercises in the fields of bank automation and trust
department examinations. At the end of 1965, 95 percent of all
examiners were enrolled under these various programs.
FINANCES OF THE CORPORATION
Assets and liabilities. Assets and liabilities of the Corporation
on December 31, 1965, are presented in Table 9.
At the end of 1965, assets of the Corporation totaled $3,212
million. United States Government obligations, valued at amortized
cost, with accrued interest, comprised $3,190 million. Of the nearly
$22 million remaining, nearly half consisted of the estimated net
value of assets acquired in insurance transactions. The Corpora


26

FEDERAL DEPOSIT INSURANCE CORPORATION
Table 9. STATEMENT OF FINANCIAL CONDITION, FEDERAL DEPOSIT
INSURANCE CORPORATION, DECEMBER 31, 1965
ASSETS

C a s h .................................................................................................................
U . S. G o v e rn m e n t o b lig a tio n s :
Securities at amortized cost (face value $3,171,999,000; market or redemption
value $2,985,975,804)..................................................................................
Accrued interest receivable.............................................................................
A ss e ts a cq u ire d in re c e iv e rs h ip and d e p o sit a ssu m p tion
tr a n s a c tio n s :1
Subrogated claims of depositors against closed insured banks.....................
Net insured balances of depositors in closed insured banks, to be subrogated
when paid—see related lia b ility2...............................................................
Loans to insured banks...................................................................................
Equity in assets acquired under purchase agreements..................................
Assets purchased outright..............................................................................

3,753,929

$3,157,732,051
32,476,155

$

$
Less reserves for losses

3,190,208,206

20,691,811
777,182
953,780
1,741,348
15,011
24,179,132
14,600,500

9,578,632

M is c e lla n e o u s a s s e ts ......................................................................

151,195

Land and o ffic e b u ild in g , less d e p re c ia tio n on b u ild in g

8,040,515

_L

F u rn itu re , fix tu re s , and e q u ip m e n t (co s t $ 1 ,0 8 2 ,0 7 6 ) ..
T o tal assets

$3,211,732,478

LIABILITIES AND DEPOSIT INSURANCE FUND3
A ccounts p a y a b le and a ccrued lia b ilit ie s .....................................

1,101,175

E a rn e st m oney, escrow fu n d s , and c o llectio ns held for
o th e r s ......................................................................................................

209,279

A ccrued a n n u a l le a v e of e m p lo y e e s ..................................................

1,268,909

D ue in su red b a n k s :
Net assessment income credits available July 1 ,19664(See Table 11)............
Other assessment credits available immediately............................................

$

158,337,888
13,712,295

172,050,183

N e t in su re d b a la n c e s of de p o sito rs in closed in su re d ba n k s
—see re la te d a s s e t...........................................................................

777,182

T o ta l lia b ilitie s .......................................................................

$ 175,406,728

D ep o s it in s u ra n c e fu n d , n e t in co m e a c c u m u la te d s ince
in ce p tio n 5 (S e e T a b le 1 0 ) .............................................................
T o ta l lia b ilitie s and d e p o s it in s u ra n c e fu n d

3,036,325,750
$3,211,732,478

The following notes are an integral part of this statement.
1 Reported hereunder is the book value of assets in process of liquidation. An analysis of all assets acquired in receiver­
ship and deposit assumption transactions, including those assets which have been liquidated, is furnished in Table 3.
2 The amount reported under this caption does not include any portion of certain certificates of deposit carried on the
books of some of the closed banks as deposits which are in litigation to determine whether they represent funds received
by the banks in the usual course of business. If the courts find that all such certificates of deposit were acquired in the
usual course of business, the holders would be entitled to recover the insured portion from the Corporation, amounting
to about $3.8 million. The Corporation would in turn have a common claim against the banks' assets in like amount.
3 Capital stock was retired by payments to the United States Treasury in 1947 and 1948 pursuant to the Acts of August
5, 1947 (61 Stat. 773) and June 29, 1948 (62 Stat. 1092), with total interest payments made thereon in 1950 and 1951,
pursuant to the Act of September 21,1950 (64 Stat. 873).
4 Represents the portion of the Corporation’s net assessment income for 1965 which, pursuant to the Federal Deposit
Insurance Act (12 U.S.C. 1817), shall be credited to assessments becoming due from insured banks after June 30, 1966.
These credits in effect reduce insured banks' assessments for 1965 from the statutory rate of one-twelfth of 1 percent
of assessable deposits to an effective rate of almost one-thirty-second of 1 percent of such deposits.
5 The deposit insurance fund represents the accumulated net income of the Corporation and is available for insuring
deposits and payment of expenses. On June 30,1965 the Fund amounted to 1.50 percent of insured deposits, estimated at
$195.6 billion; and to 0.83 percent of total deposits in all insured banks, amounting to approximately $355.0 billion. In
addition to this Fund, the Corporation is authorized to borrow from the United States 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, not to exceed $3 billion outstanding at any one time, when in the judgment of the Board of Directors of the
Corporation such funds are required for insurance purposes. No borrowiings have been made under this authorization.
NOTE: This statement does not include accountability for the assets and liabilities of either the closed insured banks
for which the Corporation acts as receiver or I iquidating agent or those of the two wholly owned Deposit I nsurance National
Banks in operation on December 31,1965. Periodic ana final accountability reports of its activities as receiver or liquidating
agent are furnished by the Corporation to the courts, supervisory authorities, and others, as required. The operating
deficits of the two Deposit Insurance National Banks, amounting to $74,877, are reflected in the Corporation's statement
of income and deposit insurance fund.




27

FINANCES OF THE CORPORATION

tion’s office building and site were valued at $8 million, and cash
amounted to almost $4 million.
Liabilities totaled $175 million on December 31, 1965, and con­
sisted almost entirely of net assessment income credits due insured
banks. Credits not available immediately will be available July 1,
1966 for application against assessments then due.
The excess of the Corporation’s assets over its liabilities, repre­
senting its accumulated income or surplus, constitutes the deposit
insurance fund. This fund, which comprises the Corporation’s
basic resource for protection of depositors, amounted to $3,036
million at the end of 1965. Further resources are available to the
Corporation through its authority to borrow up to $3 billion from
the United States Treasury whenever the Corporation’s Board of
Directors adjudges such funds are needed for insurance purposes.
This borrowing authority has never been used.
Income and expenses in 1965. A statement of the Corporation’s
income and expenses in 1965, showing also the change in the
deposit insurance fund for the year, is presented in Table 10.
Net income added to the insurance fund in 1965, after expenses,
losses, and assessment credits, amounted to $192 million. Interest
Table 10. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE
FUND, FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1965
In c o m e :
Deposit insurance assessments:
Assessments earned in 1965......................................
Less net assessment income credits to insured banks

$260,497,027
158,336,297

10,154
$ 102,170,884
112,278,146
201,726

Adjustments of assessments earned in prior years...
Net income from U. S. Government securities...........
Other income..............................................................

$ 214,650,756

T o ta l in c o m e .............................................
Expenses and lo sses:
Administrative and operating expenses:
Salaries and wages......................................................................................
Civil Service retirement fund and F.I.C.A. payments.................................
Travel expenses...........................................................................................
Office rentals, communications and other expenses...................................
Provisions for insurance losses:
Applicable to banks assisted in 1965..........................................................
Adjustments appllicabe to banks assisted in prior years...........................

$ 102,160,730

11,834,062
763,813
3,065,924
2,009,040
$

$

6,375,000
1,698,441

4,676,559
640,824

Non-recoverable insurance expenses incurred to protect depositors—n e t...
T o tal e xp enses and lo s s e s ...............................................

17,672,839

$

22,990,222

N e t a d d itio n to th e d e p o sit in su ra n c e fu n d — 1 9 6 5 ..................

$ 191,660,534

D ep o s it in su ra n c e fu n d , J a n u a ry 1 , 1 9 6 5 .....................................

2,844,665,216

D ep osit in su rance fu n d , D e c e m b e r 3 1 , 1 9 6 5 , n e t in co m e
a cc u m u la ted since in ce p tio n (S e e T a b le 9 and note 5 of
T a b le 9 ) ...................................................................................................




$3,036,325,750

28

FEDERAL DEPOSIT INSURANCE CORPORATION

on United States Government securities, plus adjustments for port­
folio changes, provided $112 million. Assessment income allocated
to the Corporation amounted to $102 million. Operating expenses
aggregated less than $18 million while insurance losses and
expenses exceeded $5 million.
The statutory assessment rate of one-twelfth of 1 percent of
assessable deposits would have yielded assessment income of
$260 million in 1965. However, two-thirds of this amount, after
deduction of the Corporation’s expenses and losses, was credited
to insured banks, under further statutory provisions. This assess­
ment credit, which amounted to $158 million in 1965, reduced the
effective assessment rate in 1965 to approximately one-thirtysecond of 1 percent of assessable deposits. The determination and
distribution of net assessment income in 1965 is shown in Table 11.
Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT
INCOME, FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1965
D e te rm in a tio n of n e t a ss e s sm e n t in co m e :
Total assessments which became due during the calendar year....
Less:
Administrative and operating expenses.......................................
Net additions to reserve to provide for insurance losses:
Provisions applicable to banks assisted in 1965...................
Adjustments to provisions for banks assisted in prior years.

$260,497,027
17,672,839
$ 6,375,000
1,698,441

Insurance expenses......................................................................

4,676,559
643,183*

Total deductions............................................................

$ 22,992,581
$237,504,446

N e t ass e s sm e n t in co m e fo r 1 9 6 5
D is trib u tio n of ne t a ssessm ent in co m e, D ecem b er 3 1 , 1 9 6 5 :
Net assessment income for 1965:
33% ^transferred to the deposit insurance fund......................................
66%% credited to insured banks..............................................................

$ 79,168,149
158,336,297

T o t a l...........................................................................................

$237,504,446
Percentage of total
assessment
becoming due in
1965

A llo catio n of n e t a ss e s sm e n t in co m e c re d it am ong in s u re d
banks, D ec e m b e r 3 1 , 1 9 6 5 :

Credit for 1965....................................
Adjustments of credits for prior years.
T o ta l............................

$158,336,297
1,591

60.782%

$158,337,888

60.783%

.001

1
Insurance expenses reported in Table 10 are net after applying a credit of $2,359, representing income not applicable
to net assessment income.

Other funds at the disposal of the Corporation during 1965
sisted principally of funds arising from the redemption and
of U. S. Government securities. These were reinvested, along
other income, in similar obligations of the United States.



con­
sale
with
The

29

FINANCES OF THE CORPORATION

sources and uses of all funds handled by the Corporation in 1965
are shown in Table 12.
Income and expenses, 1934-1965. The cumulative income of the
Corporation since its establishment reached $3,393 million at the
Table 12. SOURCES AND APPLICATION OF FUNDS, FEDERAL DEPOSIT
INSURANCE CORPORATION, YEAR ENDED DECEMBER 31,1965
Funds p rovid ed by:
Net deposit insurance assessments................................................................................................
Income from U. S. Government securities, less amortized net discounts......................................
Maturities and sales of U. S. Government securities......................................................................
Collections on assets acquired in receivership and deposit assumption transactions....................
Increase in assessment credits due insured banks........................................................................
T o ta l fu n d s p ro v id e d ...........................................................................................
Funds a p p lie d to :
Administrative, operating and insurance expenses, less miscellaneous credits.............................
Acquisition of assets in receivership and deposit assumption transactions...................................
Purchases of U. S. Government securities.......................................................................................
Net changes in other assets and liabilities.....................................................................................
T o tal fu n d s a p p lie d .............................................................................................

$102,170,884
112,153,659
611,577,953
9,464,007
10,958,893
$846,325,396

$ 17,976,301
9,347,021
814,131,189
4,870,885
$846,325,396

end of 1965, as shown in Table 13. Almost two-thirds of it came
from insurance assessments, but these have come to comprise a
much smaller proportion of annual income in recent years. As the
insurance fund grows larger, and holdings of U. S. Government
obligations, in which it is invested, increase, income from these
investments provides a steadily larger proportion of income.
Operating expenses, insurance losses and expenses, and inter­
est paid on capital stock have required $357 million, or about
10 percent of total income. The difference between total income
and these expenses and losses comprises the deposit insurance
fund.
The relationship of the insurance fund to the Corporation’s con­
tingent liability, specifically, insured deposits, has long been of
interest. Attention is focused on it particularly when proposals are
made to increase the amount of insurance per depositor, or to
curtail additions to the fund. The ratio of the fund to insured
deposits has ranged between rather narrow limits during the Cor­
poration’s 32 years of operation, as shown in Table 14; at the end of
1965 it stood at 1.45 percent. By itself, of course, the ratio can
neither prove nor disprove the adequacy of the fund. For on one
hand it ignores the Corporation’s borrowing capacity; and on the
other, our economy has yet to experience banking stresses which
would seriously test the Corporation’s full resources.
Audit. A continuous internal audit is made of the Corporation’s
operations. An Audit Division, which formerly performed this func


FEDERAL DEPOSIT INSURANCE CORPORATION

30

tion, was abolished in 1965, and its duties with respect to internal
audit were transferred to the newly designated office of Auditor.

Table 13. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE
CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933, TO DECEMBER 31, 1965,
ADJUSTED TO DECEMBER 31, 1965
(In millions)
Expenses and losses

Income

Net
income
added to
deposit
insurance
fund4

Total

Deposit
insurance
assess­
ments1

Invest­
ments
and
other
sources2

$3,393.1

$2,180.1

$1,213.0

$356.8

$42.3

$233.9

$3,036.3

1965
1964

214.6
197.1

102.2
93.0

112.4
104.1

24.1
18.9

6.4
3.4

17.7
15.5

190.5
178.2

1963
1962
1961
1960
1959

181.9
161.1
147.3
144.6
136.5

84.2
76.5
73.4
79.6
78.6

97.7
84.6
73.9
65.0
57.9

16.4
13.8
14.8
12.5
12.1

2.0
.1
.2

14.4
13.7
13.2
12.4
11.9

165.5
147.3
132.5
132.1
124.4

1958
1957
1956
1955
1954

126.8
117.3
111.9
105.7
99.7

73.8
69.1
68.2
66.1
62.4

53.0
48.2
43.7
39.6
37.3

11.6
9.7
9.6
9.0
7.8

.1
.5
.3
.1

11.6
9.6
9.1
8.7
7.7

115.2
107.6
102.3
96.7
91.9

1953
1952
1951
1950
1949

94.2
88.6
83.5
84.8
151.1

60.2
57.3
54.3
54.2
122.7

34.0
31.3
29.2
30.6
28.4

7.3
7.8
6.6
7.8
6.4

1.4
.3

7.2
7.0
6.6
6.4
6.1

86.9
80.8
76.9
77.0
144.7

1948
1947
1946
1945
1944

145.6
157.5
130.7
121.0
99.3

119.3
114.4
107.0
93.7
80.9

26.3
43.1
23.7
27.3
18.4

7.0
9.9
10.0
9.4
9.3

.7
.1
.1
.1
.1

.6
4.8
5.8
5.8
5.8

5.7
5.0
4.1
3.5
3.4

138.6
147.6
120.7
111.6
90.0

1943
1942
1941
1940
1939

86.6
69.1
62.0
55.9
51.2

70.0
56.5
51.4
46.2
40.7

16.6
12.6
10.6
9.7
10.5

9.8
10.1
10.1
12.9
16.4

.2
.5
.6
3.5
7.2

5.8
5.8
5.8
5.8
5.8

3.8
3.8
3.7
3.6
3.4

76.8
59.0
51.9
43.0
34.8

1938
1937
1936
1935
1933-34...

47.7
48.2
43.8
20.8
7.0

38.3
38.8
35.6
11.5
(5)

9.4
9.4
8.2
9.3
7.0

11.3
12.2
10.9
11.3
10.0

2.5
3.7
2.6
2.8
.2

5.8
5.8
5.8
5.8
5.6

3.0
2.7
2.5
2.7
4.26

36.4
36.0
32.9
9.5
—3.07

Year

1933-65...

Total

Deposit
Insurance
losses and
expenses

Interest
on capital
stock3

$80.1

1.6
.1

.1
.8

Adminis­
trative
and
operating
expenses

1 For the period from 1950 to 1965, inclusive, figures are net after deducting the portion of net assessment income
credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, as amended. Assessment
credits to insured banks for these years amounted to $1,614 million, equal to 58.5% of gross assessments.
2 Includes $9.3 million of interest and allowable return received on funds advanced by the Corporation in 162 rece ivership and deposit assumption cases.
3 Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by
payments to the United States Treasury in 1947 and 1948.
4 The amounts shown herein give effect to adjustments to the deposit insurance fund in the years to which they are
applicable, whereas the amounts of the Fund shown in Table 14 represent the Fund as reported on the dates specified.
Hence the deposit insurance fund reported in Table 14 cannot be computed by annual addition of income reported herein,
except for the Fund as of December 31,1965.
5 Assessments collected from members of the temporary insurance funds which became insured under the permanent
plan were credited to their accounts at the termination of the temporary funds and were applied toward payment of subse­
quent 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.
6 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance
funds on June 30,1934.
7 Deduction.




FINANCES OF THE CORPORATION

31

INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND,

Table 14.

1934-1965
Deposits in
insured banks
(in millions)

Year
(Dec. 31)
Total
1965.........
1964.......

$209,690
191,787

Deposit
insurance
fund
(in
millions)

Total
deposits

Insured
deposits

55.6%
55.0

$3,036.3
2,844.7

.80%
.82

1.45%
1.48

Insured1

$377,400
348,981

Percent
of
deposits
insured

Ratio of deposit
insurance fund to—

1963.........
1962.........
1961.........
1960.........
1959

313,3042
297,5483
281,304
260,495
247,589

177,381
170,2104
160,3094
149,684
142,131

56.6
57.24
57.04
57.5
57.4

2,667.9
2,502.0
2,353.8
2,222.2
2,089.8

.85
.84
.84
.85
.84

1.50
1.474
1.474
1.48
1.47

1958
1957
1956
1955
1954

242,445
225,507
219,393
212,226
203,195

137,698
127,055
121,008
116,380
110,973

56.8
56.3
55.2
54.8
54.6

1,965.4
1,850.5
1,742.1
1,639.6
1,542.7

.81
.82
.79
.77
.76

1.43
1.46
1.44
1.41
1.39

1953
1952
1951
1950
1949

193,466
188,142
178,540
167,818
156,786

105,610
101,842
96,713
91,359
76,589

54.6
54.1
54.2
54.4
48.8

1,450.7
1,363.5
1,282.2
1,243.9
1,203.9

.75
.72
.72
.74
.77

1.37
1.34
1.33
1.36
1.57

1948
1947
1946
1945
1944

153,454
154,096
148,458
158,174
134,662

75,320
76,254
73,759
67,021
56,398

49.1
49.5
49.7
42.4
41.9

1,065.9
1,006.1
1,058.5
929.2
804.3

.69
.65
.71
.59
.60

1.42
1.32
1.44
1.39
1.43

1943
1942
1941
1940
1939

111,650
89,869
71,209
65,288
57,485

48,440
32,837
28,249
26,638
24,650

43.4
36.5
39.7
40.8
42.9

703.1
616.9
553.5
496.0
452.7

.63
.69
.78
.76
.79

1.45
1.88
1.96
1.86
1.84

1938
1937
1936
1935
1934

50,791
48,228
50,281
45,125
40,060

23,121
22,557
22,330
20,158
18,075

45.5
46.8
44.4
44.7
45.1

420.5
383.1
343.4
306.0
333.0

.83
.79
.68
.68
.83

1.82
1.70
1.54
1.52
1.84

1 Figures estimated by applying to the deposits in the various types of account at the regular call dates the percentages
insured as determined from special reports secured from insured banks.
2 December 20,1963.
3 December 28, 1962.
4 Revised.

In addition, an independent audit of the Corporation has been
made each year since its establishment, first by private firms and
later by the General Accounting Office. In the 1950 enactment of
the Federal Deposit Insurance Act the Corporation recommended,
and the Congress enacted, legislation providing that the financial
transactions of the Corporation shall be audited by the General
Accounting Office in accordance with the principles and proce­
dures applicable to commercial corporate transactions and under
such rules and regulations as may be prescribed by the Comptroller
General of the United States.







BANK ABSORPTIONS APPROVED BY THE CORPORATION

33

Table 15. DESCRIPTION OF EACH MERGER, CONSOLIDATION,
ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES
APPROVED BY THE CORPORATION DURING 1965

Case No. 1
Security State Bank of Ephrata,
Ephrata, Washington
(change title to Security Bank of
Washington)
to merge with
Douglas County Bank,
East Wenatchee, Washington

Resources
(in
thousands
of dollars)

Banking offices
In
operation

5,667

3

4,971

To be
operated

5

2

S u m m a ry re p o rt by A tto rn e y G eneral, O c to b e r 8 , 1 9 6 4
The Security State Bank, a small resident-owned banking institution located
in Ephrata, with total assets of $5,616,000 and two branch offices, proposes to
merge with the Douglas County Bank of East Wenatchee which has total assets
of $4,373,000 and a single branch office. Neither of the participating banks has
previously been involved in a merger or acquisition and direct competition
between the two is practically nonexistent. While one independent bank will be
eliminated by this merger, it is noted that Douglas County Bank has experienced
operating difficulties and has considered merger with a large Seattle-based bank.
Three such banks, the only competitors of the resulting bank, will suffer no
conceivable competitive disadvantages.
We conclude that the proposed merger will not have a substantially adverse
effect upon competition.

B asis fo r C o rp oratio n app ro val, J an u ary 7, 1 9 6 5
This merger involves two relatively small locally-owned banks located in central
Washington. Security operates its main office and two branches in Grant County
and Douglas operates its main office and one branch in Douglas County. The
main offices of the two banks are located 46 miles apart and the nearest offices
of each are some 30 to 33 miles apart. The service areas are contiguous but
do not overlap and there is little or no competition between the two banks which
would be eliminated as a result of the merger.
v
The two banks have been under the same principal management since 1960
and are now commonly owned to a considerable degree. Although one inde­
pendent bank will be eliminated, there will be no diminution in the number of
banking offices and no impairment in service or convenience to the public should
occur. Competition is provided by eight area offices of the three largest branch
systems in Washington and the expanded resources and larger lending limits of
the resulting bank should tend to increase, somewhat, competition with these
banks. On a statewide basis, the resulting bank will hold only a fraction of one
percent of deposits and loans and but 14.2 percent and 11.6 percent of deposits
and loans, respectively, in the relevant service area. The proposed merger will
enable better overall supervision of activities of the two banks, which are already
closely related, and should result in improved and more efficient banking services
for the community.
There is no tendency toward monopoly indicated and in view of the foregoing,
the proposed merger is considered to be in the public interest.



34

FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

Case No. 2
The Savings Society Commercial Bank,
Springfield, Ohio
(change title to The Springfield Bank)
to merge with
The First State Bank,
South Charleston
to acquire the assets and assume
liabilities of
The Springfield Savings Society of Clark
County, Ohio,
Springfield

/ jr .

thousands
of dollars)

Banking offices
In
operation

10,604

3

3,620

1

27,326

To be
operated

3

4

S u m m a ry re p o rt by A tto rn e y G eneral, D e c e m b e r 2, 1 9 6 4
The conjunction of the Commercial Bank, the Savings Society, and the State
Bank will result in one commercial bank in Clark County, Ohio, under the owner­
ship and control of Transcontinental Investing Corporation through an intermediary
Ohio Center Corp., another general purpose corporation.
Direct competition between the banks is not substantial and of little significance
because of present common ownership in the Savings Society. The creation of a
single entity will render more remote the possibility of eventual deconcentration in
the area. The degree of existing concentration shown in the application indicates
that the possibility of deconcentration might well be preserved.
It is considered that the potential effects on competition resulting from these
multiple transactions will be adverse.

B asis fo r C orp oratio n app ro val, Jan u ary 2 2 , 1 9 6 5
The proposed transactions involve a merger of two commercial banks and the
purchase of assets and assumption of liabilities of a mutual savings bank by the
resulting merged bank. The mutual savings bank owns all of the common stock
outstanding in the two commercial banks except for directors’ qualifying shares,
and its three offices are shared by one of the commercial banks. Depositors of
the mutual savings bank have approved the “ Agreement for purchase and Sale
of Stock and Other Assets.” The mutual savings bank and one commercial bank
are located in Springfield, Ohio, which is situated in the west-central sector of
the State. The other commercial bank is located in South Charleston, 12 miles
southeast from Springfield in an agricultural area.
The three banks involved are commonly controlled and managed and there
will be no elimination of competition or increase in concentration of banking
resources. The resulting bank will hold 22.8 percent of aggregate IPC deposits
and 26.0 percent of aggregate loans held by all banks in the service area. It will
be exceeded in size by a national bank in Springfield which holds 28.0 percent
of aggregate IPC deposits and 28.8 percent of aggregate loans. The national
bank is one of 22 banks affiliated with the BancOhio Corporation, a registered
bank holding company, operating 68 offices throughout Ohio with aggregate
resources exceeding $854,000,000.
A favorable finding has been made on each of the banking factors and on the
competitive factor. The resulting bank, operating as a single unit, could more
efficiently provide banking services than can the three banks operating independ­
ently, and the proposed transactions are concluded to be in the public interest.




35

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Case No. 3
Industrial Trust & Savings Bank,
Muncie, Indiana
to merge with
Yorktown State Bank,
Yorktown

Resources
(in
thousands
of dollars)

Banking offices
In
operation

20,814

3

3,332

To be
operated

4

1

S u m m a ry re p o rt by A tto rn e y G eneral, N o v e m b e r 3 0 , 1 9 6 4
If the proposed merger of Industrial and Yorktown is approved, Yorktown’s
only office will be converted to a branch of the resulting bank. Yorktown’s share of
IPC deposits and loans and discounts (less than 6 percent in either category),
its size relative to that of its competitors (approximately 10 percent as large as
its smallest competitor, Industrial), the location of a competing bank’s branch
office in the same town as Yorktown, and the ownership of its entire capital
stock by persons who are officials of Industrial all tend to dull Yorktown’s
competitive vigor. Of the four banks listed as competing in the resulting bank’s
service area, Yorktown is the only one without branch offices. Without branches in
such a geographically large, but sparsely settled, service area, Yorktown’s
capacity for competing for deposits and loans is limited. Moreover, at present,
Merchants, the largest bank, is more than two times larger than American, the
second largest, and the resulting bank would approximate the position held by
American in IPC deposits and loans.
The proposed merger would not appear to have significantly adverse effects
upon competition.

B asis fo r C orporation approval, J an u ary 2 7 , 1 9 6 5
The proposed merger involves two banks located 6 miles apart in the central
and western portion of Delaware County, Indiana. Applicant operates its head
office and two branches in Muncie, the county seat, which is located in an
extremely rich agricultural area. Muncie is the location of a teachers college, a
business college, a conservatory of music, and several large industries. State
Bank operates its sole office in Yorktown, 6 miles west from applicant in a
primarily agricultural area.
The respective trade areas overlap only to a minor extent. Direct competition is
afforded State Bank by a branch of the American National Bank and Trust
Company of Muncie and applicant is in direct competition with three offices of
this bank and eight offices of another national bank in Muncie. It appears that
there is little, if any, competition between the participating banks.
Applicant’s relative deposit position in the combined service area will not
be elevated by the addition of State Bank’s deposits. The resulting bank will be
the third largest with 20.6 percent of aggregate IPC deposits but applicant will
move from third to second largest bank, based on the proportion of total loans
held or from 19.2 percent to 21.0 percent. The increase in concentration is not
substantial, 2.6 percent in IPC deposits and 1.8 percent in loans, and the result­
ing bank will be the smallest in the combined service area, based on IPC deposit
size. The Merchants National Bank of Muncie with eight offices and 55.7 percent
of the IPC deposits dominates that combined service area. Competition with the
branch of American National Bank and Trust Company of Muncie in State Bank’s
service area should be substantially increased under the proposal and there
should be no discernible adverse effects upon competition in applicant’s
service area.
The proposed merger will have no significant adverse effect upon overall
competition, but will introduce expanded and improved banking services, espe­
cially to the Yorktown area, and is concluded to be in the public interest.



FEDERAL DEPOSIT INSURANCE CORPORATION

36

Case No. 4
Peoples Bank & Trust Company,
Owenton, Kentucky
to acquire the assets and assume
liabilities of
The First State Bank,
Monterey

Resources
(in
thousands
of dollars)

Banking offices
In
operation

4,765

1

758

To be
operated

2

1

S u m m a ry re p ort by A tto rn e y G eneral, N o v e m b e r 3 0 , 1 9 6 4
The proposed transaction will eliminate all competition between Peoples and
First State, which are in communities 10 miles apart. The competition thus elim­
inated, however, does not appear to be critically significant. But the acquiring
bank presently has 49 percent of the loans and 44 percent of the deposits in
the service area; the proposed transaction would increase those percentages
to 57 percent and 51.4 percent, respectively, in addition to decreasing the banking
alternatives in the service area. It may also induce the second and third largest
banks in the area to acquire the remaining two banks in order to compete
successfully with the resulting bank.
However, because of the small size and location of the merging banks we do
not feel that the proposed acquisition will have a significant adverse effect upon
competition.

B asis fo r C o rporation appro val, F eb ru a ry 2 3 , 1 9 6 5
This proposal unites the smallest with the largest of six banks in Owen County.
Competition between these two banks is limited and the small size of State and
its location in Monterey, a small farming community of 211 population, has
restricted its competitive ability with other banks in the area. Any limited competi­
tion which may exist between the participating banks is largely eliminated through
88 percent ownership of the common stock of State by officers of the applicant.
Owen County with a population of about 8,000 has six banks and the elimination
of the smallest with its replacement by a branch of a larger bank will result in
no diminution of banking offices and will have no significant competitive effects.
The applicant will increase its holding of the area IPC deposits by less than
6 percent.
The services which State has offered its customers in the past have been
limited; as a branch of the larger applicant bank, it will afford broader and
improved banking services to the public in Monterey. These services will include
a wider range of types of loans and credit facilities, a larger lending limit, trust
services, and savings accounts which State does not now provide. Also, State
has managerial problems which the acquisition will correct.
No tendency toward monopoly is involved and in view of the benefits to be
derived in the Monterey community, the transaction is considered to be in the
public interest.

Case No. 5
Industrial Bank of Commerce of Albany,
Albany, New York (change title to
Community State Bank)
to merge with
Industrial Bank of Schenectady,
Schenectady

Resources
(in
thousands
of dollars)

Banking offices
In
operation

10,009

2

13,189

To be
operated

2

4

S u m m a ry re p o rt by A tto rn e y G eneral, Jan u ary 18, 1 9 6 5
Industrial Bank of Commerce of Albany, Albany, New York (Albany Bank) is



BANK ABSORPTIONS APPROVED BY THE CORPORATION

37

the smallest of 11 banks in the city of Albany with deposits of $8,164,000 (about
0.4 percent of total deposits of Albany banks).
Schenectady Bank is the smallest of six banks in the city of Schenectady with
deposits of $10,780,000 (about 3 percent of total deposits of Schenectady banks).
Neither bank has had any prior merger or acquisition activity. Financial General
Corporation is the owner of 94.1 percent of Albany Bank and 73.7 percent of
Schenectady Bank. Prior to the filing of its application to merge, Albany Bank
had applied to the New York State Banking authorities for approval of its plan
of conversion from an industrial bank to a State bank under the name of
Community State Bank. The resulting bank would bear this name.
Existing direct competition between the participating banks is very limited. They
are located in sizeable cities 16 mles apart (Albany, populaton 129,726, and
Schenectady, population 81,682). In addition, because of the relatively small size
of the merging banks and the presence of several other much larger banks in
each of the service areas, it does not appear that the proposed merger, if con­
summated, would have a significantly adverse effect upon competition.

B asis fo r C orp oration appro val, F e b ru a ry 2 3 , 1 9 6 5
This transaction involves the merger of a $13 million industrial bank into a
$10 million industrial bank and the conversion of the resulting bank from indus­
trial to commercial bank status under the title of “ Community State Bank.”
Applicant operates its two offices in Albany, and Industrial operates its two
offices in Schenectady, New York, with the closest offices located about 15
miles apart. Each of the participating banks serves primarily the immediate area
of their respective offices and there is virtually no competition between them
which would be eliminated through this proposal. The resulting bank will have
its main office and one branch in Albany and two branches in Schenectady.
The participating banks are by far the smallest when compared to other
commercial and savings banks operating in Albany or Schenectady and the
resulting bank will continue to be the smallest, holding but 2.4 percent and 1.8
percent of the IPC deposits and loans, respectively, held by all commercial banks
in the relevant service area. Although the resulting bank will be the only bank
having offices in both Albany and Schenectady, there are many convenient
competitive alternatives, all larger, in both cities and between them, and it does
not appear that the proposed merger will alter the competitive picture to any
significant degree.
The proposed merger and conversion which will enable the resulting bank,
with its expanded resources and larger lending base, to provide broader services
to the communities which it serves and which will have no significant effect on
competition, is concluded to be in the public interest.

Case No. 6
First State Bank, Hubbard, Texas,
Hubbard, Texas
to acquire the assets and assume
liabilities of
Malone State Bank,
Malone

Resources
(in
thousands
of dollars)

Banking offices
In
operation

3,716

1

763

To be
operated

1

1

Approved under emergency provisions. No report requested from the Attorney
General.

B asis fo r C orp oration appro val, F e b ru a ry 2 3 , 1 9 6 5
The elimination of the substantial volume of cash items and out-of-territory,
nonconforming loans classified loss and doubtful would exceed the capital struc­
ture and impair Malone’s deposits. Attempts by the owners of stock control to



38

FEDERAL DEPOSIT INSURANCE CORPORATION

obtain additional financing or collection of the assets considered doubtful and
loss were unfruitful, and the bank was faced with the threat of closing. Since
the amount of deposit liabilities in excess of the insurance limit of $10,000 is
moderate, the Corporation determined it to be in the public interest to make
a loan to or purchase the unacceptable assets of Malone so a deposit assump­
tion transaction could be effected with Hubbard. Texas law does not permit
branching so the office at Malone will be closed; however, Hubbard is located
only 9 miles away and management of that institution is familiar with the service
area and customers of Malone through previous ownership of that bank.
Resources
(in
thousands
of dollars)

Case No. 7
Washington Mutual Savings Bank,
Seattle, Washington
to consolidate with
Liberty Mutual Savings Bank,
Yakima

Banking offices
In
operation

To be
operated

463,341

12

15

17,135

3

S u m m a ry re p o rt by A tto rn e y G eneral, D e c e m b e r 14, 1 9 6 4
The proposed consolidation closely parallels the proposal of Washington
Mutual to consolidate with Citizens Mutual Savings Bank of Spokane, approval
of which was given by the Corporation November 12, 1964. Liberty Mutual, like
Citizens Mutual, was a savings and loan association prior to its conversion to
the status of a mutual savings bank preparatory to the proposed consolidation.
The lack of any substantial competition between the applicants, the strength
of the remaining competition in Liberty Mutual’s service area, and the fact
that the consolidation would increase only slightly the size of Washington Mutual
would indicate that the adverse competitive effects of the proposal, in and of
itself, may not be substantial. The fact that this proposal follows so closely,
both in time and circumstances, the application of Washington Mutual to
consolidate with Citizens Mutual, however, gives rise to the possibility that a
series of such transactions may be contemplated by Washington Mutual as an
avenue of expansion. Any such program, when carried on by this, the largest
mutual savings bank west of the Mississippi, is a cause for concern. Accordingly,
future merger transactions by Washington Mutual would appear to bear close
scrutinization in order to prevent the elimination of potential competition on
a wide scale.

B asis fo r C o rp oration ap p ro val, M a rc h 17, 1 9 6 5
This transaction involves a mutual savings bank which is insured by the
Federal Deposit Insurance Corporation and a state-chartered savings and loan
association which is insured by the Federal Savings and Loan Insurance Corpo­
ration. Liberty Mutual does not and will not operate as a mutual savings bank,
being presently in operation as Liberty Savings and Loan Association, Yakima.
Because applicable State law does not provide for the consolidation of a mutual
savings bank and a savings and loan association, the desired consolidation
requires the prior conversion of the savings and loan association into a mutual
savings bank. It is planned that the conversion and consolidation will be
effected on the same date with a minimum of intervening time.
Washington Mutual, the largest of four savings banks in Washington, operates
eight branches in the Seattle metropolitan area, two branches in Spokane and
a branch at Pullman. An additional branch has been approved for Seattle but
has not yet opened. Washington Mutual has enjoyed considerable success and
is a primary competitor for mortgage loans and thrift deposit services in its
service area. The consolidation will have no effect on competition in these
banking fields in the present service area of Washington Mutual where it is in
direct competition with 18 commercial or savings banks and 15 savings and
loan associations in the Seattle area together with 4 savings and loan associations
in the Spokane area.



BANK ABSORPTIONS APPROVED BY THE CORPORATION

39

Liberty Savings and Loan Association is a relatively small association with
its main office in Yakima, about 140 miles from Seattle; one branch in Grandview,
about 190 miles from Seattle; and a branch in Kennewick, 230 miles from Seattle.
In Yakima it is competitive with three savings and loan associations, and in
Kennewick it is competitive wth five such assocations. The converting/consolidat­
ing association is competitive with four commercial banks in Yakima, two in
Grandview, and five in Kennewick, with this competition including branches of
banks in Seattle and Tacoma which have deposits ranging from $213 million
to $1.1 billion.
At the present time, there is no mutual savings bank within 140 miles of any
office of Liberty Savings and introduction of this form of financial competition
to the areas served by the three offices of the association should be a beneficial
addition to the competitive situation, as well as contributing significantly to the
convenience of existing and potential mutual savings bank customers in these
areas.
There is no tendency toward monopoly involved or adverse aspects relative
to the statutory factors to be considered, and the consolidation is considered to
be in the public interest.
Resources
(in
thousands
of dollars)

Case No. 8
Wright County State Bank,
Clarion, Iowa
to acquire the assets and assume
liabilities of
Bank of Galt,
Galt

Banking offices
In
operation

To be
operated

3,695

727

S u m m a ry re p o rt by A tto rn e y G eneral, D e c e m b e r 14, 1 9 6 4
These two small banks presently compete with nine others of comparable size
in serving the banking needs of rural Wright County, Iowa. Bank of Galt is a
single office, owner-operated bank. The proposed merger would not significantly
affect competition or increase concentration in this area. The proposed merger
would have little, if any, adverse effect on competition in banking in Iowa but it
does represent another addition by acquisition to an established holding
company chain.

B asis fo r C o rp oration app roval, M a rc h 18, 1 9 6 5
The proposal involves the acquisition of a small noninsured bank, owned as
a copartnership, by a subsidiary of an established bank holding company which
controls 13 other Iowa banks. The participating banks are located in rural
Wright County, Iowa, which is situated in the north-central section of the State.
Applicant’s main office is located at Clarion, a residential and retail center for
the surrounding agricultural area, and its branch at Rowan, 10 miles east from
the main office, serves a small rural community. The noninsured bank is located
in Galt, a residential hamlet in economic decline, 10 miles southeast from
Clarion and 5 miles southwest from Rowan.
The service areas of the participating banks geographically overlap to some
extent but the nominal volume of common deposits and loans and the variances
in their respective loan portfolios indicates there is little, if any, competition
between them which would be eliminated by the proposed transaction.
Applicant’s relative position as fourth largest among the banks in Wright
County will remain unchanged as a result of the proposal. The resulting bank
would hold 13.0 percent of aggregate deposits and 15.6 percent of aggregate
loans and would be but slightly more than one-half of the deposit size of the
largest bank, its local and primary competitor. The resulting concentration of
deposits in the holding company within the overall service area, represented by
the combined deposits of the resulting bank and the other subsidiary located



40

FEDERAL DEPOSIT INSURANCE CORPORATION

14 miles southwest from Clarion, would also be exceeded, although modestly,
by the competing Clarion bank. Competition in the area served by the bank at
Galt should be enhanced by the introduction of expanded and improved banking
services which will be offered by the resulting bank.
Favorable findings have been made on all banking factors and there should
be no significant adverse effects on competition. The proposed transaction will
bring to the residents of the Galt area improved banking services, the benefits
of Federal deposit insurance, assurance of continued banking facilities for as
long as a need exists and is concluded to be in the public interest.
Resources
(in
thousands
of dollars)

Case No. 9
Tioga County Savings and Trust Company,
Wellsboro, Pennsylvania (change title
to Commonwealth Bank and
Trust Company)
to merge with
The First National Bank of Galeton,
Galeton
The First National Bank of Lawrenceville,
Lawrenceville
Farmers and Traders National Bank of
Westfield,
Westfield

Banking offices
In
operation

To be
operated

8,754

3,790

1

1,719

1

2,710

1

S u m m a ry re p o rt by A tto rn e y G eneral, J an u ary 2 7 , 1 9 6 5
Tioga County Savings and Trust Co. conducts commercial banking through one
office located in Wellsboro, Pennsylvania. As of October 1, 1964 it had total
deposits of $7,832,000 and total net loans and discounts of $4,483,000.
First National Bank of Galeton has one office located in the town of Galeton,
Pennsylvania. As of October 1, 1964 it had total deposits of $3,292,000 and total
net loans and discounts of $1,895,000.
First National Bank of Lawrenceville has one office located in the town of
Lawrenceville, Pennsylvania. As of October 1, 1964 it had total deposits of
$1,474,000 and total net loans and discounts of $928,000.
Farmers and Traders National Bank has one office located in Westfield, Penn­
sylvania. As of October 1, 1964 it had total deposits of $2,232,000 and total net
loans and discounts of $1,254,000.
The applicant and other banks are located in small towns in Tioga and Potter
Counties 20-34 miles apart. Both counties are primarily rural. There is little,
if any, direct competition between these banks.
If the proposed merger is approved certain communities of the county would
lose accessible alternative banking sources. The resulting bank, Tioga County’s
second largest, would hold 32 percent of total IPC deposits in the county. Over
75 percent of the total IPC deposits would be concentrated in the two largest
banks in Tioga County and only four banks would remain in the county. However,
in view of the size and location of the banks involved in the proposed merger
it is our view that the effect on competition will not be significantly adverse.

B asis fo r C orp oratio n app ro val, M a rc h 18, 1 9 6 5
The proposed merger involves three banks in Tioga County, Pennsylvania, and
one bank located 2 miles west of the county line in adjoining Potter County.
Tioga County is situated in the north-central part of the State and its northern
border forms part of the Pennsylvania-New York State boundary line. Applicant’s
sole office is located in Wellsboro, the approximate geographic center of Tioga
County, and none of the three other participating banks’ sole offices are nearer
to applicant or each other than 19 miles.
Applicant is located in Wellsboro, an industrial and mountainous resort area,
and the three other banks are located in Galeton (Potter County), a manufactur­



BANK ABSORPTIONS APPROVED BY THE CORPORATION

41

ing and resort area; Lawrenceville, a residential town with its economy largely
dependent upon industries in nearby areas of New York State; and Westfield
which has one industry, a leather tanning plant, and is located in a farming area.
The distances between the participating banks, the rugged terrain, the lack
of common depositors and borrowers and the negligible amount of business
derived from each others’ service areas indicate there is little, if any, competi­
tion between them which would be eliminated as a result of the proposal.
Applicant will increase its deposit size significantly as a result of the proposed
merger, but the resulting bank will be only fourth largest of all banks offering
competition within the overall service area. Applicant’s share of IPC deposits
held by all banks with offices in this area will increase from 8.7 percent to
16.4 percent, and the resulting bank will be roughly equal in deposit size to
its major competitor, Northern National Bank and Trust Company, Wellsboro,
Pennsylvania, which recently effected a purchase and assumption transaction
involving three other Tioga County banks. The proposed merger should enhance
competition and enable the resulting bank to compete more favorably with
Nortnern National and its four branches. There should be no significant adverse
effects in the areas of the Lawrenceville Bank and Westfield Bank, where the
nearest competing banking offices are those of applicant’s major competitor,
or in the Galeton Bank service area where the nearest competing bank is 19
miles distant.
Favorable findings have been made on all banking factors, the overall effect
on competition would not be unfavorable and, in view of the enlarged and
expanded banking services to be available at each of the participating bank
locations, the proposed merger is concluded to be in the public interest.

Case No. 10
Security State Bank,
Sheldon, Iowa
to merge with
State Bank of Archer,
Archer

Resources
(in
thousands
of dollars)

Banking offices
In
operation

7,024

1

1,296

To be
operated

2

1

S u m m a ry re p o rt by A tto rn e y G eneral, Jan u ary 12, 1 9 6 5
The Security State Bank of Sheldon, Iowa (Security) has requested permission
to merge with the State Bank of Archer, Archer, Iowa (State Bank). Security
intends to operate the acquired banking facilities as a branch office.
Although the banks are located 8 miles apart, because of the rural nature
of the area, their service areas overlap in large measure. Security presently is
the largest bank in the area with approximately 29 percent of all deposits.
State Bank is the smallest in the area with approximately 5 percent of all
deposits. Security presently has twice the amount of deposits as its next largest
competitor and as a result of the proposed merger its deposits will be three
times as great as the third largest bank in the area.
In addition to Security, the Citizens State Bank is the only other bank located
in the town of Sheldon. Citizens State Bank was not organized until 1962 and
is about one-third the size of Security and will probably be most affected
by the merger.
All actual and potential competition between the merging banks will be
eliminated.
Thus the proposed merger would eliminate competition and further increase
the size of the largest bank in the area and may place the smaller banks at a
greater competitive disadvantage, thereby increasing the probability of further
merger activity with a resultant adverse effect on competition.



42

FEDERAL DEPOSIT INSURANCE CORPORATION

B asis fo r C o rporation app ro val, M a rc h 2 5 , 1 9 6 5
State Bank of Archer is the smallest of nine banks presently competing in
the relevant service area, holding, as of June 30, 1964, 4.2 percent of the
aggregate deposits and 4.4 percent of the loans. Security State Bank is the
largest, holding almost one-fourth of the aggregate deposits and 22.1 percent
of the loans. Following the merger, it will hold 29.0 percent and 26.5 percent,
respectively, in each category, thereby extending its already largest position.
It will be a little more than twice the size of the next two largest banks among
eight remaining in the area and more than three times the size of one other bank
in Sheldon. However, the seven remaining competing banks are well established
and have developed sufficient deposit volume and earning assets to provide
effective competition to Security in their respective immediate service areas.
There are no other banks in Archer and there will be no reduction in the number
of banking offices because State’s sole office will be continued as a branch
of Security.
The service area of State lies within the larger service area of Security and
there are no banks or other financial institutions intervening. The two banks are
located about 12 miles apart. Consequently, there is overlapping of the service
areas, although that of State extends mostly northeastward from Archer where
President Sterling Archer of State and his family have extensive land holdings,
rather than northwestward toward Sheldon. The evidence indicates that the
present deposit and loan volume of State has been maintained only because of
Mr. Archer’s strong influence and popularity in this area northeast of Archer.
The main effect of the merger will be to eliminate one small independent unit
bank and substitute in its place a branch of Security; however, numerous bank­
ing choices will remain which are easily accessible to the public.
Because of health reasons, President Archer of State desires early future
retirement and in the absence of a qualified successor, the bank will be left
with a management succession problem. Archer is a small declining rural
community (population 200) with poor future prospects and it is unlikely that
a bank the size of State could attract a qualified executive officer from outside
its present personnel ranks. The merger will correct this deficiency.
The loan limit of State is but $20,000, while that of Security is $60,000 and
that of the resulting bank will be $101,000. Many of the business people of the
Archer area, especially farmers, must travel to other points to satisfy their
credit needs. Consequently, the greater resources and larger capital of Security,
along with its stronger management staff and personnel, will permit expanded
services in the Archer Community, and a wider variety of loans will be made
available to the public. As it now stands, almost 90 percent of State’s loans are
represented by loans to farmers. In addition, as a result of the merger, the public
in the Archer service area will be assured of continued local banking facilities
inasmuch as a branch of Security can be sustained more profitably on a rela­
tively small deposit volume than can the unit State bank.
There is no tendency toward monopoly involved and in view of the foregoing,
it is concluded that the merger would be in the public interest.

Case No. 11
Rumford Bank and Trust Company,
Rumford, Maine
to acquire the assets and assume
liabilities of
Rangeley Trust Company,
Rangeley

Resources
fin
vjn
thousands
of dollars)

Banking offices
In
operation

12,895

4

2,467

To be
operated

2

6

S u m m a ry re p ort by A tto rn e y G eneral, F e b ru a ry 17, 1 9 6 5
The proposed acquisition of the Rangeley Trust Company by Rumford Bank
and Trust Company would consolidate the only two banks headquartered in



43

BANK ABSORPTIONS APPROVED BY THE CORPORATION

this area of west-central Maine. Although the two banks are located some 35
miles apart, there are no other banking institutions in the area between them,
nor are there any banks between Rumford and Phillips, 20 miles to the northeast
where Rangeley Trust Co. has a branch.
However, in view of the relative small size of the merging bank and the lack
of significant competition between the merging banks, the effect on competition
does not appear to be significantly adverse.

B asis fo r C o rporatio n app ro val, M a rc h 2 5 , 1 9 6 5
Applicant, an insured commercial bank located in Rumford, Maine, proposes
to acquire the assets and assume the liabilities of a small noninsured trust
company headquartered in Rangeley, 50 miles distant. The banks are located in
the west-central section of the State, a mixed agricultural, industrial and rec­
reational area.
The closest operating offices of the two banks are 34 miles apart. There are
no banking offices intervening but the terrain is mountainous and sparsely
populated and neither bank holds a significant amount of business which
originates in the other’s service area. There is virtually no competition between
the participating banks which would be eliminated by the proposed transaction.
Applicant’s only local competitor is a branch of a bank which operates 24
offices in southern Maine and is six times larger than applicant in terms of
total resources. The noninsured trust company’s closest competitor is a non­
insured mutual savings bank, 16 miles distant from its branch and 43 miles from
the main office. Two commercial banks, each roughly twice the IPC deposit size
of the trust company, also serve the latter’s trade area. The proposed transaction
should have no significant effect on competition in the combined service area
and should enhance competition in the trust company’s service area.
The banking and competitive factors requiring consideration have been
determined to be favorable to the proposal and, in view of the benefits of
Federal deposit insurance which will become available to the residents of the
Rangeley area and the improved and more adequate lending services which
the larger, well-managed applicant bank will introduce, the proposed transaction
is concluded to be in the public interest.

Case No. 12
The South Omaha Bank,
Omaha, Nebraska (change title to Center
Bank, and move head office within Omaha
from 4840 South Twenty-fourth Street to
4131 Center Street)

Resources
(in
thousands
of dollars)

Banking offices
In
operation

9,848

2

16,916

To be
operated

1

1

to acquire the assets and assume
liabilities of

The Center Bank,
Omaha

S u m m a ry re p o rt by A tto rn e y G eneral, F e b ru a ry 1, 1 9 6 5
South Omaha Bank is an affiliate of Northwest Bancorporation, a registered
bank holding company, which also controls two other banks in Omaha, one
of which is the second largest in that city.
The banking industry in Omaha is highly concentrated, the three largest
banking interests accounting for 87 percent of both loans and deposits. The
proposed transaction would increase this figure to over 89 percent. Such increase
when viewed in the context of this highly concentrated area is extremely sig­
nificant. As the Supreme Court has stated, if “ concentration is already great, the
importance of preventing even slight increases in concentration and so pre­
serving the possibility of eventual deconcentration is correspondingly great.”
United States v. Philadelphia N a t’I Bank, 374 U. S. 321, 365, n. 42.



44

FEDERAL DEPOSIT INSURANCE CORPORATION

The proposed transaction would also eliminate present and future competition
between Center Bank and the Banco affiliates. According to the map submitted by
the applicants, Center Bank derives 15 percent of its deposits from the area
immediately surrounding U. S. National’s home office. That Center Bank is
a significant factor is unquestioned. The application states, “ The Center Bank
has had unusual growth since its opening in 1955, leading all banks in the Omaha
area in 1957.” (p. 12)
Consummation of the proposed transaction will appreciably enhance Banco’s
favorable competitive position in Omaha since its three banks will be located in
the three most economically significant parts of the city.
In our *view, approval of the proposed transaction would result in serious
adverse competitive effects.

B asis fo r C orp oration app roval, M a rc h 2 5 , 1 9 6 5
The proposal involves two banks located in Omaha, Nebraska, reportedly
the w orld’s largest livestock and meatpacking center. Applicant, a subsidiary
of Northwest Bancorporation which is a registered bank holding company, would
acquire the assets and assume the deposit liabilities of Center, a nonaffiliated
bank. Prior thereto in a similar transaction, which recently has been approved
by the Comptroller of the Currency, applicant’s assets and deposit liabilities
would be acquired and assumed by a national bank in Omaha, also a subsidiary
of the holding company. Applicant will retain its charter and, under the subject
proposal, will move to Center’s location, operate under Center’s present manage­
ment, as a subsidiary of the holding company, with essentially the same asset
structure and identical deposit liabilities as Center presently owns.
The subject proposal will not result in significant elimination of competition
between the participating banks or between Center and other affiliates of the
holding company since competition is reportedly as strong and vigorous between
affiliates as with nonaffiliated banks. The proposed transaction will not increase
the concentration of banking resources with respect to the participating banks
and the holding company will not increase the number of its affiliated banks
but will control an additional 3.0 percent of aggregate IPC deposits and 2.4
percent of aggregate loans in Omaha. The largest Omaha bank holds 38.5 per­
cent of aggregate IPC deposits and the holding company will control less than
30 percent of such deposits. Under the subject proposal there will be no elim­
ination of a banking office, the transaction being the substitution of the charter
of one bank for that of another.
Favorable findings have been accorded all banking factors and it is concluded
that the proposed transaction, which will have no material effect on competition,
is in the public interest.
Resources
(in
thousands
of dollars)

Case No. 13
Bank of Sonoma County,
Sebastopol, California
to merge with
Sebastopol National Securities Company,
Sebastopol

17,779

Banking offices
In
operation

To be
operated

3

3

358

S u m m a ry re p o rt by A tto rn e y G eneral, M a rc h 31, 1 9 6 4
This merger which was consummated on June 18, 1963 had no significant
adverse effect on competition, in our opinion, because Sebastopol National
Securities Company was a holding company whose only significant investment
was its ownership of all the stock of Bank of Sonoma County. The Securities
Company was not engaged in the banking business.

B asis fo r C o rporatio n ap p ro val, A pril 1, 1 9 6 5
This transaction involved the merger of a parent holding company into a



45

BANK ABSORPTIONS APPROVED BY THE CORPORATION

bank whose stock was the holding company’s chief asset, and was effected
because the reasons for which the holding company was organized were no
longer operative. The holding company was not engaged in the banking business
and the merger had no significant effect on the condition of the bank or upon
competition. The transaction, which eliminated a form of ownership which was
obsolete and expensive, was concluded to be in the public interest.
The proposal will eliminate one small affiliated bank and the limited competi­
tion it provides but in view of the declining population trend in evidence for
the area it is believed that two banks of comparable size in Centerville can
adequately serve the banking needs of the community. Moreover, the resulting
bank, with its expanded resources and larger lending limit, and which will
erect new and modern banking quarters, including drive-in and off-street parking
facilities, will be better able to provide improved banking services to the public.
There will still remain an alternative source to the public for both commercial
banking and trust services.
There is no tendency toward monopoly involved, and in view of the benefits
to be derived from the merger without any unfavorable competitive effects, it
is concluded that the proposal is in the public interest.
Resources
(in
thousands
of dollars)

Case No. 14
Iowa Trust and Savings Bank,
Centerville, Iowa (change location
of head office within Centerville
from 300 North 12th Street to 200
North 10th Street)
to merge with
The First National Bank of Centerville,
Centerville

Banking offices
In
operation

To be
operated

6,036

4,741

S u m m a ry re p o rt by A tto rn e y G eneral, D e c e m b e r 14, 1 9 6 4
These two banks have been under common ownership and management for
68 years, doing business in offices one block apart in Centerville, serving
Appanoose County, Iowa. The proposed merger would merely unite them under
one roof in a new building, enabling the resulting bank to offer more modern
banking services to its customers. Two other presently competing banks in the
county are comparable in size and strength to the resulting bank. Since the
merger would neither eliminate competition between the applicants nor give
them any additional substantial advantage over their competitors, the resulting
effect on competition would not be adverse except to the degree that by the
union the opportunity for the development of any meaningful competition between
the units will be permanently foreclosed.

B asis fo r C orporation app roval, A pril 1, 1 9 6 5
This proposal involves the merger of two banks which have been commonly
owned and managed for many years. The main offices of the participating banks
are located about one block apart in Centerville and the service area of each
is confined primarily to Appanoose County, Iowa. Census reports indicate that
the populations of both Centerville and Appanoose County have been in a
declining trend for the past two decades.
Applicant, which is now the second largest, would become the largest of
the three banks in Centerville and after the merger would hold more than half
the IPC deposits in the county but less than half the loans. It would not be
significantly larger than its principal competitor, however, which would hold
over 45 percent of the IPC deposits and over 56 percent of the loans. Because
of the existing close relationship of the participating banks, there is no effective
competition between them which would be eliminated and the investigation
indicates the merger would not alter the competitive situation in the area to any
significant degree.



46

FEDERAL DEPOSIT INSURANCE CORPORATION

Resources
(in
thousands
of dollars)

Case No. 15
Kendall State Bank,
Valley Falls, Kansas
to consolidate with
The Citizens State Bank,
Valley Falls

Banking offices
In
operation

To be
operated

2,947

2,060

1

S u m m a ry re p ort by A tto rn e y G eneral, M a rc h 2, 1 9 6 5
Kendall and Citizens are the only two banks competing in the Valley Falls,
Kansas area, and are located a short distance from each other. The application
admits that the service areas of the two banks are the same. Kansas is a
unit banking State, and the nearest banks to Valley Falls, Kansas are 12 miles
away. Thus, approval of this application would eliminate the competition between
Kendall and Citizens, and, in addition, would result in Kendall’s being the only
source of commercial banking services in the Valley Falls, Kansas area. The
proposed consolidatiaon would appear to have an adverse effect upon competi­
tion in the Valley Falls, Kansas area.

Basis fo r C orporation approval, April 15, 1 9 6 5
The proposal involves two independent banks located less than one block
apart in Valley Falls, Kansas. The town is a small community situated in a
fairly stable agricultural area.
The participating banks serve the same trade area but the aggregate volume
of common deposits and loans is not significant. Interest rates, service charges
and general services offered the public are similar and, reportedly, there is
very little competition between them.
The applicant bank will substantially increase its share of the aggregate IPC
deposits and loans owned by all banks located in the overall service area but
the resulting concentration of banking resources will not be disproportionate.
The resulting bank would hold 16.2 percent and 17.9 percent of the aggregate
IPC deposits and loans, respectively, and would be the second largest bank
in the area. The nearest competing bank is located 12 miles from Valley Falls,
beyond the ten-mile radial area from which applicant derives 80 percent of its
deposit volume. There should be no significant adverse effects on competition
in the overall service area as a result of this proposal.
The proposal will eliminate a banking source in Valley Falls but should cause
no inconvenience because of the proximity of the existing banking offices, and
the resulting bank will be able to meet the larger credit requirements of the
area and provide certain additional banking services.
The banking and competitive factors requiring consideration are determined
to be favorable to the proposal, and in consideration of the larger lending
capacity and additional conveniences which are planned to be offered by the
resulting bank, the proposed consolidation is concluded to be in the public
interest.

Resources

Case No. 16
The Farmers & Merchants Bank,
Aiken, South Carolina
to acquire the assets and assume
liabilities of two branches of
The Citizens and Southern National Bank
of South Carolina,
Charleston



Banking offices

( in
Un

thousands
of dollars)

12,945

1,727*

In
operation

2

22

To be
operated

4

47

BANK ABSORPTIONS APPROVED BY THE CORPORATION

S u m m a ry re p o rt by A tto rn e y G eneral, M a rc h 2, 1 9 6 5
Farmers & Merchants, the largest local bank In Aiken, South Carolina,
serving an area encompassing the towns of Graniteville and Langley, 6 and
8 miles from Aiken, respectively, proposes to acquire the assets and assume
liability to pay the deposits of two branch offices of the Citizens and Southern
National Bank of Charleston, such branches being located at Graniteville and
North Augusta, South Carolina. The total deposits of the branches are $1,669,000
of which an estimated $1,200,000 is deposited at the Graniteville branch. There
is some direct competition between the acquiring bank and the branch at
Graniteville due to the proximity of their respective offices, but very little, if any,
competition between the acquiring bank and the branch at North Augusta, which
is 18 miles from Aiken.
If the acquisition is consummated, there may be a slight adverse effect on
competition in the Aiken-Graniteville service area by reason of some elimination
of competition and increase in concentration. There would be no adverse effect
in the North Augusta area, however, where the result would be the substitution
of a branch of the largest local bank in Aiken, South Carolina, for a branch
of the State’s second largest bank.
We conclude that the proposed acquisition would not have a significant ad­
verse effect upon competition in the two areas.

Basis fo r C orporation app ro val, April 15, 1 9 6 5
The Graniteville and North Augusta branches of Citizens and Southern oper­
ated as the main office and branch of an independent bank for many years
prior to their acquisition by Citizens and Southern on May 23, 1964 and, both
as an independent bank and branches of Citizens and Southern, have provided
convenience to the public and served its needs. Citizens and Southern, which
has operated these branches less than one year, now expresses a desire to
dispose of them (because they are too far removed from that bank’s principal
service areas) to Farmers & Merchants, a local Aiken County bank, in order
that these banking facilities can be continued. Farmers & Merchants is a pro­
gressive bank which can provide continuance of adequate banking services to
the public. It is a relatively small bank which faces strong competition from three
branches of State Bank and Trust Company (two in Aiken and one in Langley),
the State’s fourth largest bank, and one branch in Aiken of The South Carolina
National Bank of Charleston, by far the State’s largest bank. The latter also
operates a branch in North Augusta.
There is no tendency toward monopoly involved and the acquisition will
have no significant effect on competition, other than to increase but slightly
the size of Farmers & Merchants and expand its service area slightly through
two branch locations. It is concluded that the purchase and assumption trans­
action would be in the public interest.
Resources

Case No. 17
Dauphin Deposit Trust Company,
Harrisburg, Pennsylvania
to merge with
Lemoyne Trust Company,
Lemoyne

Banking offices

fin
Un

thousands
of dollars)

In
operation

To be
operated

138,117

11

15

29,045

4

S u m m a ry re p ort by A tto rn e y G eneral, M a rc h 2 2 , 1 9 6 5
The Dauphin Deposit Trust Company has total assets of $138,138,000 and
conducts commercial banking through eleven offices, nine of which are located
throughout the city of Harrisburg and surrounding suburbs east of the Susque­
hanna River, and through two offices located in Carlisle, Pennsylvania, which is
18 miles west of the city of Harrisburg. Since 1955 this bank has acquired seven



48

FEDERAL DEPOSIT INSURANCE CORPORATION

offices as a result of five mergers and has established three de novo branch
offices.
The Lemoyne Trust Company has total assets of $29,045,000 and conducts
commercial banking in Lemoyne, Pennsylvania, and the adjoining town of Camp
Hill, Pennsylvania. Lemoyne is located on the west bank of the Susquehanna
River, and the main office of the Lemoyne Trust Company is located across the
river about a mile-and-one-half west of the main office of the Dauphin Deposit
Trust Company. This bank has four offices, none acquired by merger.
There is direct competition between the banks and in view of the ability of
each to establish competing branches, there is a possibility of considerably
more competition. Dauphin Deposit Trust Company now has an application
pending to establish a branch office about 5 miles west of the Camp Hill office'
of the Lemoyne Trust Company.
The merger of Dauphin and Lemoyne will result in the elimination of direct,
albeit limited, competition between the merging banks. Further, and more impor­
tant, the merger will continue and perhaps aggravate an already excessive trend
toward concentration in the Harrisburg-Lemoyne area by merger and acquisition.
The primary service area affected, the Lemoyne, Pa. area, is already highly con­
centrated in six banks— the proposal will reduce the number to five. In the
Harrisburg-Lemoyne area, commercial banking is now concentrated in seven
banks and the proposal will eliminate one of these. Finally, as a result of the
proposal, the two largest banks, one of which is the acquiring bank, will possess
68 percent of the Lemoyne area deposits and 66 percent of the HarrisburgLemoyne area deposits. Thus the proposal, if consummated, would have a
seriously adverse effect on competition.

Basis fo r C orp oratio n app ro val, April 2 8 , 1 9 6 5
The proposed merger will combine the $138 million applicant bank, located in
Harrisburg, Pennsylvania, and Lemoyne Trust, a $29 million bank headquartered
in Lemoyne, 1.5 miles west and across the Susquehanna River from applicant’s
main office. None of applicant’s 10 branches are closer to any of Lemoyne
Trust’s 3 branches than their respective main offices.
An analysis of the participating banks’ deposit and loan accounts indicates
each serves a definite area or areas with a low degree of overlapping and a
negligible amount of common accounts. There is only minor competition between
the merging banks which would be eliminated by the proposal.
Applicant is the second largest bank, in terms of total IPC deposits, which
operates offices in the overall service area, and both merging banks face their
major competition from the largest bank which operates 5 branches in Harris­
burg and one branch in Camp Hill, 1 mile from Lemoyne Trust’s nearest
office. The resulting bank will hold 25.4 percent of the aggregate IPC deposits
represented in the combined service area compared to 30.3 percent owned by
the largest and principal competitor.
Lemoyne Trust, in addition to competition from the largest area bank, is faced
with competition from two other larger banks operating seven offices in its service
area as well as from large Pittsburgh, Philadelphia, and New York banks which
regularly solicit customers in this area.
The proposed merger will further, to a small degree, the concentration of bank­
ing resources in the three largest banks which presently own an aggregate of
70.1 percent of the IPC deposits. However, applicant’s competitive position will
not be significantly enhanced and competition should be stimulated in Lemoyne
Trust’s service area by the introduction of improved and expanded banking
services which the applicant can offer.
The proposed merger, while it will nominally increase the concentration in the
three large area banks, will not, of itself, have a significantly unfavorable effect
on competition; will combine two banks for which all banking factors have been
determined to be favorable to the proposal; and in view of the additional and
improved services in the forms of data processing, broader trust services, larger
lending limit, and an improved and aggressive banking staff familiar with all
phases* of banking which will be introduced to the Lemoyne Trust service area,
the proposed transaction is concluded to be in the public interest.



49

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Banking offices

Resources
(in
thousands
of dollars)

Case No. 18
Southern Bank and Trust Company,
Greenville, South Carolina
to merge with
Bank of Clover,
Clover

In
operation

19,477

6

3,179

1

To be
operated

7

S u m m a ry re p o rt by A tto rn e y G eneral, M a rc h 16, 1 9 6 5
The banking trend in South Carolina is experiencing a conspicuous trend
toward concentration, with the four largest banks accounting for 70 percent and
60 percent, respectively, of the State’s total loans and deposits. The proposed
merger, which is the second such transaction by the Southern Bank in recent
months, would contribute to that general trend. In assessing the competitive
aspects of the proposed merger three geographic areas are relevant. The merger
would have its most noticeable effect in the area now served by the Clover Bank,
where the combined deposits of the three remaining banks would total only
one-third of the amount of deposits of the resulting bank. In the Rock Hill area,
which is now served by one branch of the Southern Bank and three branches of
both the Rock Hill National Bank and the Citizens and Southern National Bank,
the impact of the proposed merger would be much less noticeable since the
competitive positions of the banks presently located in that area would not be
appreciably altered. In the Greenville area, the anticompetitive effects of the
merger would likewise be insignificant, as Southern Bank, South Carolina’s 14th
largest bank, would still be faced with competition from branches of that State’s
2nd largest bank. We therefore feel that the proposed merger would not have
significant anticompetitive effects.

Basis fo r C orp oratio n app ro val, M a y 6 , 1 9 6 5
The proposal would merge a small unit bank in Clover, South Carolina into a
moderately large bank, Southern, headquartered in Greenville, 90 miles distant.
Southern operates six offices and none are closer to Clover Bank than 22 miles.
The respective service areas do not overlap and no competition between the
participating banks will be eliminated.
Southern’s service area is dominated by two large banks which operate
branches in Greenville. The two banks hold, in the aggregate, more than 80
percent of the total deposits owned by the banks operating offices in Southern’s
service area. The third largest bank is headquartered in Greenville and is more
than twice the deposit size of Southern. Clover Bank’s only local competitor,
located two blocks distant, owns more than 94 percent of the total deposits of
all banks operating in the Clover area. The increase in Southern’s resources will
be nominal and should have no significant competitive effects in Southern’s
service area. The small Clover Bank will be replaced by a branch of a mod­
erately large bank which should enhance competition, to some degree, with the
substantially larger competitor in Clover.
All banking factors are favorable to the proposal which will have no significant
competitive effects, and in view of the improved banking services that the larger
resulting bank should be in a position to offer in the Clover area, the proposed
merger is concluded to be in the public interest.

Case No. 19
The Delaware County Bank,
Delaware, Ohio
to merge with
The Bank of Galena Company,
Galena



Resources
(in
thousands
of dollars)

Banking offices
In
operation

8,786

2

1,112

1

To be
operated

3

50

FEDERAL DEPOSIT INSURANCE CORPORATION

S u m m a ry re p o rt by A tto rn e y G eneral, A pril 2, 1 9 6 5
The Delaware County Bank, Delaware, Ohio, an independent bank with its
head office and drive-in facilities at the seat of Delaware County, proposes to
acquire by merger The Bank of Galena Company, Galena, Ohio, a small unit
bank 13 miles southeast of Delaware. The principal competitor of The Delaware
County Bank is First National Bank, a member of the BancOhio System. In view
of the strong competitive position of the competitor of Delaware Bank in its
own service area and of the insufficient credit services presently rendered in
the Galena Bank service area, it is believed that the impact of the proposed
merger upon banking competition in the two service areas will not be adverse.

B asis fo r C orp oration app ro val, M a y 13, 1 9 6 5
Both the applicant and Galena Bank face their major competition from affili­
ates of BancOhio Corporation, a registered bank holding company, which con­
trols one bank in Delaware, about twice the size of the applicant. The latter
bank has an application pending to merge with a bank in Sunbury, about two
miles from Galena Bank which is its closest competitor. There is no significant
competition which will be eliminated as a result of this proposal and the substi­
tution of a branch of the applicant in place of the unit Galena Bank will result
in improved banking services to the Galena community. In view of existing com­
petition there is no tendency toward monopoly involved and it is concluded that
the proposed merger is in the public interest.

Case No. 20
The Bank of Prince William,
Woodbridge, Virginia
to merge with
Guardian National Bank of Fairfax County,
Springfield

Resources
(in
thousands
of dollars)

Banking offices
In
operation

15,104

7

3,002

To be
operated

9

2

S u m m a ry re p o rt by A tto rn e y G eneral, A pril 12, 1 9 6 5
The application shows that in the service area of the main office of Guardian
National Bank of Fairfax County (Guardian), The Bank of Prince William (appli­
cant bank), which is a subsidiary of Virginia Commonwealth Corporation, a
registered bank holding company, has no current branch. There are, however,
three competing banks, to wit: Mt. Vernon National Bank, Springfield branch,
owned by The First Virginia Corporation, a holding company; the First and
Citizens National Bank, Springfield branch, owned by another holding company
in the State, United Virginia Bankshares, Incorporated; and The Northern Virginia
Bank, an independent bank, with its main office in Springfield, each larger than
the resulting bank.
The application further shows that in the service area of the authorized branch
of Guardian at the Lee Plaza shopping center, the applicant bank has no current
branch. However, there is competition from two branches of the aforesaid Mt.
Vernon National Bank, to wit: The Jefferson Manor branch and the Beaconfield
branch.
The principal effect of the proposed acquisition will be that the applicant bank
will enter the service areas of Guardian for the first time.
While one more independent bank in Virginia will be eliminated by the pro­
posed merger, it would appear that the acquisition of Guardian by the applicant
bank will not appreciably enhance the size or competitive power of Virginia
Commonwealth Corporation, the holding company which owns the acquiring
bank. Except for the increasing domination of the Guardian service areas on the
part of banks controlled by bank holding companies, the proposal would not
appear to have more than a slight adverse competitive effect in the service areas
involved.



BANK ABSORPTIONS APPROVED BY THE CORPORATION

51

B asis fo r C o rp oratio n app ro val, M a y 14, 1 9 6 5
This merger would combine a relatively new bank which has been in opera­
tion for only about one year, and which presently operates two offices in Fairfax
County, with a well-established bank presently operating seven offices, all of
which are located in Prince William County. The two banks are located 9
miles apart, their service areas do not overlap, and there is virtually no com­
petition between them which would be eliminated by this proposal.
Within its service area Guardian National is now competing with one bank
which is nearly five times its size and with a branch of another nearly thirty
times its size. Moreover, the largest bank in Northern Virginia has also been
authorized to establish a branch in Springfield which could further intensify
competition in this area. While this proposal would eliminate one independent
bank there will be no elimination of banking facilities or alternates and its re­
placement with branches of The Bank of Prince William should enable it to
compete more effectively with the larger institutions in the Springfield area. The
resulting bank would remain the third largest bank in the Springfield area, being
less than one-third the size of the now dominant bank and slightly smaller in
size than its next largest competitor. The moderate amount of resources to be
gained by The Bank of Prince William through the proposed merger would not
enhance its competitive position in Prince William County to any significant
extent.
The Guardian National Bank has experienced serious managerial and opera­
tional problems, as well as loan administration problems, during its relatively
short period of existence. Correction of these deficiencies should be accom­
plished through the merger.
In view of the foregoing, the proposed merger, which will not have an unfa­
vorable effect on competition but which will result in a strengthened manage­
ment and provide a solution to the other problems with which Guardian National
Bank is presently confronted, is concluded to be in the public interest.
Resources
(in
thousands
of dollars)

Case No. 21
Farmers Trust Company,
Franklin, Indiana (change title to
Franklin Bank and Trust Company)
tQ merge with
The Johnson County National Bank of
Franklin,
Franklin

Banking offices
In
operation

8,792

2

4,851

To be
operated

3

1

S u m m a ry re p ort by A tto rn e y G eneral, S e p te m b e r 3 0 , 1 9 6 4
The proposed merger of the Farmers Trust Company, Franklin, Indiana, with
The Johnson County National Bank, Franklin, Indiana, under the charter of
Farmers Trust Company and with the title Franklin Bank and Trust Company,
Franklin, Indiana, will eliminate one of the three banks now competing in Frank­
lin. It will reduce the number of commercial banks in Johnson County to five
and upset such competitive balance as presently exists among the banks now
operating there. It, therefore, may tend to initiate a trend toward other mergers
in that area. The competitive effect on commercial banking thus will be adverse.

B asis fo r C orp oratio n appro val, M a y 18, 1 9 6 5
The primary service area involved in this proposal is considered to consist
mostly of Johnson County, which is contiguous to Marion County to the north,
wherein is located Indianapolis, the county seat and State capital. Franklin is
the seat of Johnson County and is but 21 miles south of downtown Indianapolis,
and its Whiteland branch is but 15 miles away.
Among Johnson County banks (six) the applicant now ranks third and National
fifth. As a result of the merger, the applicant will gain first position, as measured



FEDERAL DEPOSIT INSURANCE CORPORATION

52

In terms of IPC deposits, holding 31.4 percent of the county’s aggregate bank
IPC deposits, but still will be of comparable size with the other bank in Franklin,
which holds 25.4 percent. With respect to loans, the resulting bank still will rank
third, holding less than 26 percent of aggregate loans, as compared to 30.4 per­
cent held by the other bank in Franklin and 26.1 percent by a bank in Green­
wood, which is north of Franklin toward Indianapolis. Our examiner indicates
that the growth potential of this bank and the Union Bank and Trust Company,
Franklin, which has recently opened a branch 13 miles northwest of Franklin
toward Indianapolis, is greater than that of the resulting bank. The northern part
of Johnson County is its most populous and fastest growing area. Not to be
ignored, from a competitive standpoint, are the banks in Indianapolis, two of
which exceed $600 million in total resources and one in excess of $300 million,
and these banks exert considerable competitive influence in Johnson County,
especially with respect to instalment loans. Many of Johnson County’s residents
commute to Indianapolis for employment.
Although one Frenklin bank, among three, will be eliminated from the scene
as a result of the merger and to this extent one source of competition will be
eliminated, it is concluded that this effect on competition would be offset by
the betterment in capacity and services that the resulting bank can provide the
public. Such improved services and facilities will be manifested in an increased
loan limit, expanded loan facilities and services, improved trust facilities, park­
ing and drive-in facilities (not now possible at ether bank individually), and a
farm management program. Also, walk-up windows, which are presently inade­
quate, will be improved and the merged bank will be in a position in the future
to install and provide automation services to its customers.
In view of the alternate banking facilities available to the public and the much
improved services and facilities that the resulting bank can offer (as compared
to the two banks now operating separately), it is concluded that there is no
tendency toward monopoly, that the merger would be in the public interest.

Case No. 22
The Howard Savings Institution,
Newark, New Jersey
to acquire the assets and assume
liabilities of
Irvington State Bank,
Irvington

Resources
(in
thousands
of dollars)

Banking offices
In
operation

To be
operated

6 2 5 ,0 5 4

10

10,000

S u m m a ry rep o rt by A tto rn e y G eneral, M arc h 19, 1 9 6 5
The acquiring bank, The Howard Savings Institution, is a savings bank with
eight offices throughout the Newark area. It is the largest bank in Newark, either
savings or commercial, and is larger than all the other savings banks in Newark
combined. The other bank, Irvington State Bank, is a commercial bank with two
offices within the urban area of Newark, it is a relatively new bank, having been
incorporated in 1957, and it has grown and prospered since. Because of their
geographic proximity, the two banks are directly competitive with each other in
the types of banking business they both offer. However, Irvington State Bank,
being a commercial bank, engages in a wider range of activity, and its business
would be restricted should it be acquired by the larger savings bank. The Newark
banking market is already concentrated with The Howard Savings Institution
being the principal factor in this concentration. Counting all banks, savings and
commercial, the two largest have about 37 percent of the market, the three
largest over half of the market and the four largest about two-thirds of the
market. Accordingly, should the proposed acquisition be effected it would have
a seriously adverse effect on competition.



53

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Basis fo r C orporation approval, June 3 , 1 9 6 5
The applicant, a $625.1 million mutual savings bank, will acquire by the pro­
posed transaction the two offices of Irvington, a $10.0 million commercial bank.
These banks are located in the adjoining towns of Newark and Irvington in
Essex County, New Jersey, and applicant’s much larger service area entirely
overlaps that of Irvington. The nature of the two institutions precludes compe­
tition between them in some areas of banking, but Irvington’s deposit and loan
structures are heavily weighted with time deposits and mortgage loans. Some
competition, therefore, is indicated between them; however, an analysis of cus­
tomer and area overlapping disclosed that applicant derives less than 20 percent
of its deposit volume and slightly more than 6 percent of its mortgage portfolio
from Irvington’s service area and that common customers are even smaller in
number and amount. The degree of competition between the participating banks
which would be eliminated is not significantly adverse. The resulting bank, as
a mutual savings bank, would not be competitive in the commercial banking
field and to this extent overall competition in Irvington’s service area would be
lessened.
The increase in concentration of IPC deposits and loans resulting from the
proposal is nominal in both service areas. The resulting bank would hold 21.0
percent of the aggregate IPC deposits in applicant’s service area and 26.3 per­
cent in Irvington’s service area, based on total IPC deposits of all banks in both
instances. The existing competitive situation would not be materially changed
in this respect. Irvington’s deposit and loan structures are concentrated in the
fields of banking in which the applicant, by its nature, places its greatest empha­
sis and is most experienced and equipped to service. In addition, the applicant
will bring personal trust services to the proposed Irvington branches for the
first time, and the utilization of a unique computer service which will be offered
will be an additional convenience for the Irvington residents.
Consummation of the proposed transaction will resolve a declining earnings
situation and capital problem now in evidence at Irvington, and would improve
the asset condition and strengthen the management factor. There would be no
significantly unfavorable effect on competition and, in view of the benefits to be
derived, the proposed transaction is concluded to be in the public interest.

Case No. 23
Farmers Bank, Owenton, Ky., Inc.,
Owenton, Kentucky (change title to
First Farmers Bank and Trust Company)
to merge with
The First National Bank in Owenton,
Owenton and
Gratz Deposit Bank,
Gratz

Resources
(in
thousands
of dollars)

Banking offices
In
operation

1,539

1

1,223

1

1,189

To be
operated

2

1

S u m m a ry re p o rt by A tto rn e y G eneral, M arc h 2 4 , 1 9 6 5
Farmers Bank and First National, each of which has its only office in Owenton,
Kentucky, the county seat, are located 7 miles northeast of the only office of
Gratz Deposit Bank, Gratz, Kentucky. A controlling interest in each of the Owen­
ton banks and a 25 percent interest in Gratz Deposit was recently acquired by
Garvice D. Kincaid and associates who, according to the application, own “ about
fourteen banks” in the State of Kentucky.
This application comes on the heels of the elimination of still another inde­
pendent bank in Owen County through the merger of Peoples Bank and First
State Bank, approval of which was given by the Corporation in February 1965.
By virtue of that merger and the proposed one, the number of banks in Owen
County will be reduced from six to three. First Farmers (the resulting bank) will



FEDERAL DEPOSIT INSURANCE CORPORATION

54

have 38.7 percent of the IPC deposits and 34.5 percent of the loans, while
Peoples Bank will have 51.7 percent of IPC deposits and 57.8 percent of the
loans of the three banks.
Because of the small size of the merging banks and the fact that the large
degree of common ownership undoubtedly precludes aggressive competition
among them even in the absence of a merger, the adverse competitive effect of
the proposed merger probably is not substantial. Nevertheless, we do view with
some concern the rapid decline in the number of independent banking units in
this area and the continuing diminution of prospects for eventual deconcen­
tration.

B asis fo r C orporation app ro val, June 10, 1 9 6 5
The proposal would merge the two smallest of three banks in Owenton, Ken­
tucky, and a small bank in Gratz, 9 miles southwest. The two Owenton banks,
which are one block apart, would be combined into one office of the resulting
bank and a branch would be established at Gratz. The Owenton banks are com­
monly owned and controlled and the same ownership exercises effective control
of the Gratz bank. The small size of the three merging banks and the degree of
common ownership indicates there is no significant competition between them
which would be eliminated by the proposal.
The applicant bank in Owenton holds 11.3 percent of the aggregate IPC
deposits owned by the nine banks operating in the combined service area.
Although applicant’s share of such deposits would be increased substantially,
the resulting bank would hold slightly less than 30 percent of the aggregate IPC
deposits compared to almost 40 percent held by its local competitor, the largest
bank in the area. Gratz Bank’s closest competitor is a branch of the largest bank
in the combined service area and competition should be enhanced in both the
Gratz and Owenton areas.
The resulting bank would be in a position to accommodate much larger credit
requests and furnish a greater variety of loans to present and potential custo­
mers than can the merging banks operating independently. Additionally, trust
services will be available at the resulting bank locations as a result of the pro­
posal and savings accounts, not presently offered by the Gratz Bank, will be
available to the Gratz area residents.
The proposed merger, which will have no unfavorable effect on competition,
will result in enlarged and improved banking services, resolve the problem of
declining earnings in the two Owenton banks, and is concluded to be in the
public interest.

Case No. 24
Bank of Turtle Lake,
Turtle Lake, North Dakota
(proposed new bank)
to acquire the assets and assume
liabilities of 1 branch of
The Farmers Security Bank of Washburn,
Washburn

Resources
(in
thousands
of dollars)

Banking offices
In
operation

To be
operated

1,9773

S u m m a ry re p ort by A tto rn e y G eneral, A pril 3 0 , 1 9 6 5
Farmers Security Bank of Washburn, North Dakota (Farmers Security Bank),
operates a main office in Washburn and a paying and receiving station at Turtle
Lake, about 26 miles to the northeast. This station has only limited banking
authority. In order to have an institution with full banking powers in Turtle Lake,
the owners of Farmers Security Bank had the Bank of Turtle Lake chartered in
1964, and propose to transfer roughly half of its assets and business to the new
institution as of April 1, 1965. As an end result of the transaction as planned, the



BANK ABSORPTIONS APPROVED BY THE CORPORATION

55

Farmers Security Bank and Bank of Turtle Lake would have identical owners.
The proposed acquisition appears unlikely to have adverse effects on compe­
tition in the relevant area.

B asis fo r C o rp oratio n appro val, June 2 5 , 1 9 6 5
The transaction involves an operating bank in Washburn, North Dakota and a
proposed new bank to be located in Turtle Lake, the site of the Washburn bank’s
paying and receiving station. Washburn and Turtle Lake are located 24 miles
apart and each serves a primarily agricultural area.
The effect of the proposals will be to supplant a limited power station with a
full service bank. It is apparent that no competition exists between the partici­
pating banks and the common ownership and control of the resulting banks pre­
cludes potential competition between them which would be eliminated. There
will be no increase in concentration of banking resources and competition may
be enhanced in the Turtle Lake area by the introduction of full service banking.
The proposed transaction, which will have no unfavorable effect on compe­
tition and will bring the benefits of full service banking to the Turtle Lake area,
is concluded to be in the public interest.
Resources
(in
thousands
of dollars)

Case No. 25
State Bank and Trust Company,
Greenwood, South Carolina
to merge with
The Saluda County Bank,
Saluda

In
operation

Banking offices
To be
operated

78,514

22

24

4,338

2

S u m m a ry re p o rt by A tto rn e y G eneral, M a y 2 0 , 1 9 6 5
Applicant bank is the fourth largest bank operating in the State of South Caro­
lina, having 21 offices and over $78,000,000 in total assets. Although little if
any competition between the merging banks would be eliminated, the proposed
merger would eliminate the only bank serving the Saluda, South Carolina area,
and would add a seventh independent bank to applicant’s list of acquisitions
throughout the State during the past 10 years. This is another in a series of
eliminations of independent banks by statewide chains which continues a con­
spicuous trend toward concentration in South Carolina. Aside from such trend,
the effect of the merger on competition would not be significantly adverse.

B asis fo r C o rp oratio n app ro val, June 1, 1 9 6 5
This proposal would merge a relatively small bank in Saluda, South Carolina,
with a much larger bank (the fourth largest in the State), headquartered in
Greenwood, 30 miles northwest of Saluda. State Bank operates 22 offices in 15
cities or towns situated generally west and southwest of Columbia (including
four in Columbia), but none closer to Saluda Bank than 23 miles. The respective
service areas of the merging banks do not overlap and there is no competition
between them which will be eliminated.
Principal banking competition for State Bank emanates from offices of the
State’s 3 largest banks which, among 20 banks with offices in the relevant
service area(s), collectively hold more than four-fifths of the aggregate bank
deposits, as compared to less than 10 percent held by State Bank and Saluda
Bank combined. Among these banks, the largest holds more than four times the
volume of deposits held by State Bank and the third largest holds twice the vol­
ume of State Bank. The latter’s deposit volume, as a result of the merger, would
be increased by less than one-half of 1 percent. To a small degree, the en­
larged lending limit that would result for State Bank would enable it to compete
more effectively with its large competitors; otherwise, the merger would have no
significant effect on banking competition in the areas presently served by State
Bank.



FEDERAL DEPOSIT INSURANCE CORPORATION

56

Saluda Bank now is the only bank serving Saluda and its immediate trade
area and the competition it faces from other banks does not loom large, its
nearest competitor being located 13 miles away. The substitution of branches of
the larger bank in place of the two Saluda offices of Saluda Bank should prove
beneficial to the public in that area because of State Bank’s greater resources
and more aggressive management policies; moreover, competition as it presently
exists would not be altered or lessened to any significant degree because there
are no other banks in the immediate area. In Saluda, the small bank which is
strictly local in its outlook and service to the public would be replaced by
branches of a bank of substantial size which is in a position to expand the range
of banking services.
There is no tendency toward monopoly involved and it is concluded that the
merger would be in the public interest.

Resources
(in
thousands
of dollars)

Case No. 26
Peoples Bank of Radford,
Radford, Virginia
to acquire the assets and assume
liabilities of
Bank of Dublin, Inc.,
Dublin

Banking offices
In
operation

3,289

2

3,033

To be
operated

1

3

S u m m a ry re p o rt by A tto rn e y G eneral, June 16, 1 9 6 5
Peoples Bank of Radford, with assets of $3,284,069, proposes to acquire the
assets of and assume liability to pay deposits made in Bank of Dublin, a bank
with assets of $3,032,650 and located 8 miles southwest of Radford, Virginia.
According to the application, competition between the two banks is insignificant.
Peoples Bank will shortly become a subsidiary of The First Virginia Corpora­
tion, a bank holding company, such acquisition having been approved by the
Federal Reserve Board on April 12, 1965.
However, the important factor in this proposed acquisition is the impending
failure of the Dublin Bank. The application points out that Dublin is insolvent
due to fraudulent dealings by one of its customers who was indebted to Dublin
Bank in the amount of $730,000. To meet the loss which will result from this
indebtedness, Charter Bank has arranged to acquire the assets of and assume
liability to pay deposits made in Dublin Bank by advancing $730,000 to Dublin
Bank. This sum will be used to create a capital reserve against which all losses
on the indebtedness of the defrauding borrower will be charged. This $730,000
which Charter Bank has advanced was secured by Charter Bank through a loan
of $500,000 from First Virginia Corporation and by First Virginia Corporation
making a deposit of $230,000 in Charter Bank.
The outstanding stock of Dublin Bank has been placed in a voting trust and
any equity remaining after depositors are paid will be distributed to the stock­
holders of Dublin Bank in the form of stock in Bank of Radford.
Under these special circumstances we voice no adverse comment on com­
petitive grounds to the proposed acquisition.

Basis fo r C orp oratio n app roval, July 1, 1 9 6 5
This transaction would combine the sixth and seventh largest of eight banks
serving a mixed agricultural-industrial area in Montgomery and Pulaski counties
in southwestern Virginia. Peoples presently operates its main office and one
branch in Radford, and Bank of Dublin operates its only office and provides the
only banking facility in Dublin (population— 1,427), which is situated about 8
miles southwest of Radford. The service areas of the participating banks are
predominantly local in nature and consequently any competition between them
which would be eliminated through this transaction would be minimal.



BANK ABSORPTIONS APPROVED BY THE CORPORATION

57

Bank of Dublin was recently faced with an emergency situation arising from
fraudulent activities of one of its customers who had taken his own life. As a
result, directors of the bank became convinced that its assets contained such a
volume of spurious loans and related items as to render the bank insolvent, and
the bank was faced with the threat of suspension of its operations. To avoid this
probability, an arrangement was made for its acquisition by Peoples which was
in process of becoming affiliated with First Virginia Corporation, a registered
bank holding company, whereby the latter provided an escrow deposit in a suffi­
cient amount to offset potential losses in the assets of Bank of Dublin, assure
its solvency and permit it to continue normal operations until the proposed trans­
action could be arranged.
Our investigation of the proposal disclosed no objection from any of the com­
peting bankers and the consensus was that it would be beneficial to the public
and banking since it would save such services for the people of Dublin. The
increase in Peoples’ resources as a result of this transaction would about double
its size but it would still be the sixth largest of seven remaining banks and would
hold but slightly over 10 percent of the IPC deposits and loans held by all banks
represented in the area.
In view of the emergency situation described above, it did not appear likely that
Bank of Dublin would be able to continue to be competitive or function effec­
tively as an independent unit. Under these circumstances, the proposed trans­
action which would solve the serious problems at the Bank of Dublin and assure
continuance of the only banking facility at Dublin, and which would have no sig­
nificantly unfavorable effect on competition, was concluded to be in the public
interest.

Resources

Case No. 27
Manufacturers Bank,
Los Angeles, California
to merge with
Guardian Bank,
Hollywood

(in

thousands
of dollars)

Banking offices
In
operation

47,859

1

7,659

To be
operated

2

1

S u m m a ry re p o rt by A tto rn e y G eneral, June 3 0 , 1 9 6 5
Guardian Bank, Hollywood, California, has assets of about $7.7 million, and
Manufacturers Bank in nearby Los Angeles has assets of about $48 million. Both
are unit banks and both are new entrants in the banking field in the Los Angeles
area, Manufacturers having begun operations in 1962 and Guardian in 1963.
Analysis of the position each bank occupies relative to others in the area is
complicated by the fact that most other banking offices are branches of large
California-wide or regional banks and assignment of realistic financial figures to
individual offices is difficult if not impossible. However, data developed by the
Federal Deposit Insurance Corporation indicate that Manufacturers has about
11.4 percent of the deposits in the relevant area and 20.5 percent of the loans,
resulting in a ranking of fourth in deposits and third in loans. The addition of the
Guardian Bank business would increase Manufacturers Bank’s totals to 12.6 per­
cent of deposits, still ranking fourth, and 23.4 percent of the loans, raising it to
second position.
After initial losses, both banks appear to be operating profitably. Each there­
fore may be regarded as providing a significant stimulus to competition in the
concentrated banking market of the Los Angeles area. We think it important to
preserve the contributions of new entry. Nevertheless, in light of the facts in this
case, it does not appear that the proposed merger is likely to have significant
adverse competitive effects.



FEDERAL DEPOSIT INSURANCE CORPORATION

58

B asis fo r C orp oratio n app roval, July 2 , 1 9 6 5
The proposal would merge two small unit banks, Manufacturers Bank and
Guardian Bank, which are located 9 miles apart in Los Angeles, California.
Each bank serves a separate area and faces direct competition from four of the
State’s large branch bank systems. There is virtually no competition between
the participating banks which would be eliminated by the proposal.
The applicant, Manufacturers Bank, would nominally increase its share of
aggregate IPC deposits to 12.7 percent of the total owned by all banking offices
in the combined service area. Thirteen offices of three large branch banks hold
an aggregate of 70.2 percent of such deposits. There would be no unfavorable
effects on competition in the service area of either merging bank and competi­
tion should be enhanced in Guardian’s service area.
Guardian is operating with an impaired common capital account and attempts
to sell additional stock have been unsuccessful. The bank faces the possibility
of closure. The proposed merger will serve to prevent the forced liquidation of
Guardian and is determined to be in the public interest.
Resources
(in
thousands
of dollars)

Case No. 28
Broad Street Trust Company,
Philadelphia, Pennsylvania (change
title to Continental Bank and Trust
Company and change location of head
office to Norristown)
to merge with
Montgomery County Bank and Trust
Company,

Banking offices
In
operation

To be
operated

244,627

23

37

131,924

14

M n r r ie tr tu /n

S u m m a ry re p o rt by A tto rn e y G eneral, June 8 , 1 9 6 5
Broad Street Trust Company, which operates 28 offices in Philadelphia and
the surrounding three-county area, seeks to merge with Montgomery County
Bank and Trust Company, under the charter of Broad Street and with the title
of Continental Bank and Trust Company. Broad Street, with assets now exceed­
ing $242,603,000, has made three acquisitions in the past 10 years.
Montgomery County Bank and Trust Company, Norristown, Pennsylvania, was
chartered in 1884 and has made three acquisitions since 1955. With total assets
of $131,000,000, it operates 15 offices, 13 of which are located in Montgomery
County, and is about to open branches in six adjoining counties.
Seven banks headquartered in Philadelphia, including Broad Street, account
for approximately 82 percent of total deposits and approximately 85 percent of
total loans in the area. Twenty-two remaining banks, according to the applica­
tion, hold a combined share of only 17.31 percent of total deposits and 14.13
percent of total loans.
Broad Street is now the seventh largest bank in Philadelphia and the resulting
bank would be sixth among 28 banks with approximately 6 percent of the com­
mercial banking business in the area.
The probable effect on commercial banking in the Philadelphia area would be
adverse.

B asis fo r C orporatio n app ro val, July 6 , 1 9 6 5
Broad Street Trust Company, the applicant, operates 19 of its 23 offices in
Philadelphia, Pennsylvania, and is the seventh largest bank in the combined
service area. The proposed merger with Montgomery County Bank and Trust
Company, headquartered in Norristown, 16 miles northwest, would advance appli­
cant’s position to sixth largest bank and provide it with 15 additional offices. The
respective service areas do not overlap and virtually no competition between
the merging banks would be eliminated by the proposal.



59

BANK ABSORPTIONS APPROVED BY THE CORPORATION

The resulting bank would hold but 5.6 percent of the aggregate IPC deposits
owned by the 32 commercial banks located in the combined service area. The
next larger bank holds 9.6 percent and the largest bank holds almost one-fifth
of such deposits. Competition in Philadelphia, applicant’s primary service area,
would not be changed significantly by the proposed merger. A number of offices
of five of the six largest banks furnish competition in Montgomery County Bank’s
service area and direct competition with four of these large banks is provided
at five of Montgomery County Bank’s locations. Competition will be enhanced
materially in this service area as a result of applicant’s more aggressive policies
and increased size.
There will be no unfavorable effect on competition and the proposed merger,
which would strengthen management with greater depth and aggressiveness and
provide improved and specialized lending and trust services to the areas served
by both banks, is concluded to be in the public interest.
Resources
(in
thousands
of dollars)

Case No. 29
Citizens Bank of Michigan City, Indiana,
Michigan City, Indiana
to acquire the assets and assume
liabilities of
State Bank of Westville,
Westville

Banking offices
In
operation

30,133

6

2,793

To be
operated

1

7

S u m m a ry re p ort by A tto rn e y G eneral, June 2 2 , 1 9 6 5
The Citizens Bank, which operates a head office and two branch offices in
Michigan City, Indiana, as well as two additional branch offices in the center and
the south of LaPorte County, Indiana, proposes to acquire by merger the State Bank
of Westville, Indiana, also in LaPorte County 12 miles south of Michigan City.
Though the State Bank’s service area is included in the larger service area of
Citizens Bank and the two banks obviously competed with each other in the
past, competition has practically been eliminated since the purchase by the
President and Chairman of the Board of Citizens Bank of most of State Bank’s
outstanding capital stock.
In the service area of Citizens Bank, the resulting bank would remain the
second largest bank, increasing its share of deposits from 15.7 percent to 17.2
percent. The increase in the share of loans and discounts would be from 17.4
percent to 18.4 percent. By comparison, the largest bank in the service area,
First Merchants National Bank, Michigan City, has a share of deposits amount­
ing to 19.7 percent and loans and discounts of 22.7 percent.
In the smaller State Bank service area— within the Citizens Bank area— there
is, at Wanatah, a branch office of the aforementioned First Merchants National
Bank, Michigan City, and at Union Mills a branch of LaPorte Bank and Trust Co.
It is therefore not believed that the vigor of competition in the State Bank service
area will suffer as a result of the merger.
It does not appear that the merger, if approved, will have a substantial impact
upon competition in commercial banking in the service areas of the two banks.

Basis fo r C orporation approval, July 2 3 , 1 9 6 5
The purchase and assumption transaction involves two banks located 12 miles
apart in LaPorte County, Indiana. Applicant, with its head office and three
branches in Michigan City, operates two additional branches in the county and
is the third largest bank in the relevant service area in terms of IPC deposits
owned. The selling bank is a small unit bank in Westville which serves a limited
area situated within the larger service area of the applicant. The closest offices
of applicant to Westville are those in Michigan City.
Competition between the two banks in the past appears to have been minimal
by virtue of the difference in their size and proximity of other larger banks. Con­



60

FEDERAL DEPOSIT INSURANCE CORPORATION

trol of Westville bank was acquired by applicant’s president in April, 1965 with
the intention of effecting the proposal.
The increase in applicant’s resources would be nominal and the resulting
bank, as second largest in the area, would hold 17.1 percent of the aggregate
IPC deposits. The largest bank holds slightly more than one-fifth of such deposits
and is applicant’s local and principal competitor. The third largest bank is
roughly equal in deposit size to applicant and is located 12 miles from the main
office of each participating bank. Westville bank’s closest competitor, 8 miles
south, is a branch of the largest bank. A branch of a bank five times the deposit
size of Westville competes from a location 9 miles southeast. The small in­
crease in concentration will have no significant effect on competition in appli­
cant’s service area and competition should be intensified in the smaller service
area of the Westville bank.
The seven statutory factors are favorable to the proposal and there is no ten­
dency toward monopoly involved. The proposed transaction, which will bring
capable, aggressive management and enlarged and improved lending and trust
services to Westville, is concluded to be in the public interest.

Resources
(in
thousands
of dollars)

Case No. 30
Southern Bank and Trust Company,
Greenville, South Carolina
to merge with
Bank of Piedmont,
Piedmont

Banking offrces
In
operation

To be
operated

2 2 ,6 5 6

1 ,9 4 8

S u m m a ry re p o rt by A tto rn e y G eneral, June 4 ,1 9 6 5
The banking industry in the State of South Carolina is presently concentrated
and a substantial increase in banking concentration has taken place in recent
years because of numerous mergers. The proposed merger is the third merger
involving the Southern Bank and Trust Company in recent months.
This merger, because of the presence of common ownership and common
directors, will, in and of itself, have little direct effect upon competition. It will,
however, eliminate an alternative source of credit and increase concentration in
banking in an area where concentration is already substantial and where a
trend toward greater concentration appears to be well established. At the present
time, the four largest banks in South Carolina operate 41 percent of the total
banking offices in the State and hold over 60 percent of the State’s total de­
posits. In the area served by Southern Bank and Trust Company five banks
hold over 90 percent of the total deposits. Approval of this merger will allow the
continuation of the merger trend and in all probability encourage banks in the
area to expand still further via the merger route.
The over-all effect of the proposed merger on competition will not be substan­
tially adverse.

Basis fo r C orporatio n app ro val, July 2 3 , 1 9 6 5
Consummation of this merger would have very little effect on the competi­
tive ability and position of Southern, as opposed to its larger competitors in
Greenville. There are four banks in Greenville among which Southern is the
smallest, and following the merger it will be less than one-half the size of the
third largest. It will be substantially smaller than the two largest banks in
Greenville. In Piedmont the merger would have the effect of replacing a small
unit bank which is strictly local in its outlook and service to the public by a
branch of a larger bank which is aggressive in its policies and banking practices.
For several years Piedmont Bank has had difficult management problems which
the merger wilt solve. Moreover, its asset condition leaves much to be desired
and the management of Southern is more capable of dealing with these prob­



BANK ABSORPTIONS APPROVED BY THE CORPORATION

61

lems. Its management can supply the personnel and policy direction which is
needed. Furthermore, the larger bank is in a position to provide a broader range
of banking services and conveniences to the public.
All banking factors are favorable to the proposal and with no tendency toward
monopoly involved it is concluded that the merger would be in the public interest.

Case No.

Resources
(in
thousands
of dollars)

3 1

The Bank of Asheville,
Asheville, North Carolina
to merge with
Swannanoa Bank & Trust Company,
Swannanoa

Banking offices
In
operation

1 9 ,5 7 0

6

5

2 ,2 7 0

To be
operated

1

S u m m a ry re p o rt by A tto rn e y G eneral, June 7 , 1 9 6 5
The proposed merger would eliminate the competition which presently exists
between the applicants. The small size of the merging bank and the Asheville
Bank’s concentration on local service suggest that the competition between the
participants is minimal. Moreover, the merger will not significantly alter the
present distribution of banking power in Buncombe County. The resulting bank
will be faced with competition from branches of four of North Carolina’s five
largest banks. Nor will this merger thrust a large bank into a market previously
occupied by a number of small institutions.
We therefore feel that the proposed merger would not have significant anti­
competitive effects.

B asis fo r C o rp oratio n app roval, A u g u s t 6 , 1 9 6 5
Asheville Bank serves a broad area in Buncombe County, North Carolina which
Includes the smaller service area of Swannanoa Bank, located 11 miles east.
The small size of Swannanoa Bank and the differences in the composition of their
loan portfolios minimize the competition between them which would be elim­
inated by the proposal.
Asheville Bank competes in Asheville with four of the five largest branch bank
systems in the State. The five Asheville branches of the largest bank represented
in the area hold more than three times the deposit volume of Asheville Bank
and almost one-half the aggregate deposits owned by all banking offices in the
area. The second largest bank’s seven branches in the area hold slightly more
than one-fourth of the aggregate deposits, and all offices of Asheville Bank hold
13.2 percent. The proposed merger would increase Asheville Bank’s deposits to
14.8 percent of the aggregate owned by all offices represented in the service
area. Three of the State’s largest banks compete with Swannanoa Bank through
their four branches located within 5 to 8 miles of Swannanoa.
The proposal does not involve a tendency toward monopoly and there would
be no unfavorable effect on competition in either merging bank’s service area.
The Asheville Bank would bring a broader range of banking services to the
immediate Swannanoa area and provide highly capable management for the
Swannanoa Bank which is presently operating under temporary active manage­
ment. The proposed merger is concluded to be in the public interest.

Case No.

3 2

Greenfield Citizens Bank,
Greenfield, Indiana (change title
to Hancock County Bank)
to merge with
Hancock County Bank,
Willow Branch



Resources
fin
v,in
thousands
of dollars)

Banking offices
In
operation

3 ,8 5 0

1

3 ,6 5 3

3

To be
operated
4

FEDERAL DEPOSIT INSURANCE CORPORATION

62

S u m m a ry re p o rt by A tto rn e y G eneral, July 9 , 1 9 6 5
The Greenfield Citizens Bank, Greenfield, Indiana, which operates its head
office in Greenfield and has obtained permission to open a drive-in and walk-up
facility 500 feet north of its office, proposes to acquire by merger the Hancock
County Bank in Willow Branch, 10 miles northeast of Greenfield. Hancock County
Bank has a branch office in Greenfield, approximately 1 mile north of the appli­
cant bank and another branch office 6 miles northwest of Greenfield. The service
areas of the two banks overlap more than 50 percent.
Early this year three directors of Greenfield Citizens Bank acquired controlling
interest in Hancock County Bank and also became directors of that bank. Though
competition between the banks which derive the predominant part of their busi­
ness from the same area has been reduced as a result of the transaction, the
merger, if approved, would permanently eliminate all competition between the
two banks. The resulting bank would operate 50 percent of all banking offices
in the Hancock-Greenfield area and control approximately 25 percent of all IPC
deposits and loans there. The share of the two largest among five banks operat­
ing in the area would exceed 60 percent of all IPC deposits and loans.
In view of the lack of meaningful competition between the merging banks
at present and their relatively small size it would appear that the effect of their
merger on competition would not be significantly adverse.

B asis fo r C orp oratio n appro val, A u g u s t 2 3 , 1 9 6 5
The primary service area of Citizens and Hancock Bank consists mostly of
Hancock County which is contiguous to Marion County to the west wherein is
located Indianapolis, the State capital. Greenfield is the seat of Hancock County
and is but 21 miles east of downtown Indianapolis. Willow Branch, location of
the main office of Hancock, is 10 miles northeast of Greenfield. It is estimated
that the service areas of the merging banks overlap about 50 percent; hence,
there is some competition between them which would be eliminated.
Among 12 banks competing in the service area of Citizens and Hancock,
Citizens ranks seventh in size and Hancock eighth, as measured in terms of
IPC deposits. As a result of the merger, Citizens will gain third position, hold­
ing 13.1 percent of the aggregate IPC deposits held by 11 banks. It will be
less than two-thirds the size of its local competitor in Greenfield and substan­
tially smaller than an Indianapolis bank which operates two branches in the
area. Not to be ignored from a competitive standpoint are the Indianapolis banks,
two of which exceed $600 million in total resources and one in excess of $300
million. These banks, operating a multiple number of banking offices, exert con­
siderable competitive influence in Hancock County, as many of its residents
commute to Indianapolis for employment.
Although one bank competing in the relevant service area will be eliminated
along with one source of competition, 11 banks will still remain, providing
ample alternative sources with which the public can choose its banking rela­
tions. The greater resources and enlarged capital base of the resultant bank,
and the improved services it can offer, should prove beneficial to the public.
Moreover, the increased lending limit and expanded loan facilities and other
services, which the resultant bank will provide, will assist in the future growth of
Hancock County. The asset structure and condition, capital position, earnings
performance and active management of Hancock are characteristics favorable
to the proposal in that the merger with Citizens would tend to correct these
unfavorable situations. These factors outweigh the elimination of competition
that would result.
There is no tendency toward monopoly involved and it is concluded that the
proposed merger would be in the public interest.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources

Case No. 33
Brownstown Loan and Trust Co.,
Brownstown, Indiana (change title
to The Peoples Bank
to consolidate with
The First National Bank of Brownstown,
Brownstown

fin
( in

thousands
of dollars)

63

Banking offices
In
operation

4,549

2

3,068

To be
operated

1

2

S u m m a ry re p o rt by A tto rn e y G eneral, A u g u s t 3 , 1 9 6 5
The Brownstown Loan and Trust Co., Brownstown, Indiana, was organ­
ized May 13, 1919. It has a branch at Crothersville, Indiana, about 13 miles
southeast of Brownstown.
The First National Bank was organized April 4, 1908. The main office of the
Brownstown Loan and Trust Co. and the office of the First National Bank are
both on Main Street in Brownstown, a community of 3,000 population.
The consolidation will eliminate competition between two banks that have been
successfully competing with each other since 1919. One of three banking
alternatives in the community of Brownstown will be eliminated. The consolida­
tion will give the resultant bank 67.1 percent of deposits and 54.4 percent of
loans in Brownstown. If the service area is Jackson and adjacent counties, the
consolidated bank with total deposits of $6,921,000 and loans of $2,623,000 will
be third in size with 22.2 percent of total deposits of $31,166,000 and 19.6 per­
cent of total loans of $13,363,000 in that area.
The effect of the proposed merger on competition will be adverse. However,
since the merging banks are relatively small banks operating in a sparsely popu­
lated area, it does not appear that this effect will be substantial.

B asis fo r C o rporation approval, S e p te m b e r 7, 1 9 6 5
Among eight banks located in the defined service area, applicant ranks fourth
in size and National sixth, as measured in terms of IPC deposits, and among
three banks in Brownstown applicant is largest by a narrow margin and National
is smallest. The resulting bank will continue to rank fourth among seven banks
in the relevant service area, holding 17.1 percent of aggregate IPC deposits.
The two largest banks, both located in Seymour, 10 miles northeast of Browns­
town, will hold more than one-half of the IPC deposits, and they provide strong
competition to the three banks in Brownstown. The public will continue to have
alternative banking choices available and the overall effect of the consolidation
on competition will not be unfavorable. This conclusion was confirmed by offi­
cials of competing banks in the area.
The present quarters of both the applicant and National are congested and
inadequate, and neither bank provides drive-in facilities. The consolidation will
provide a capital structure sufficient to enable the resulting bank to construct
modern quarters, conveniently located and with ample inside space, drive-in
facilities, and adequate to serve the needs of the public. The increased lending
limit of the resulting bank will aid in servicing the credit needs of the com­
munity, inasmuch as some persons now must go elsewhere to have their credit
needs supplied. Moreover, it is contemplated that consumer and instalment lend­
ing will be considerably expanded, along with trust department facilities. It is
concluded that the resulting bank will better serve the convenience and needs
of the community through improved and enlarged facilities and a management
representing a broader range of experience.
There is no tendency toward monopoly involved and in view of the foregoing,
it is concluded that the consolidation will be in the public interest.



FEDERAL DEPOSIT INSURANCE CORPORATION

64

Case No. 34
Guaranty Bank & Trust Company,
Worcester, Massachusetts
to consolidate with
First National Bank of Webster,
\ A / a K r + n «*
Webster

Banking offices

Resources
(in
thousands
of dollars)

In
operation

To be
operated

86,624

11

14

15,430

3

S u m m a ry rep o rt by A tto rn e y G eneral, A u g u s t 16, 1 9 6 5
Guaranty Bank & Trust Company of Worcester, Massachusetts, with assets
of $83,429,000, proposes to consolidate with the First National Bank of Webster,
Webster, Massachusetts, with assets of $15,655,000, under the charter and title
of the former.
Competition between the banks is minimal, and not of significance. The pro­
posed consolidation would remove one of two small, independent banks in the
primary service area of Webster, and would require that the remaining bank
compete with a branch office of the second ranked bank in Worcester County.
To this extent the proposed merger may have an adverse effect on competition.

B asis fo r C orp oration approval, S e p te m b e r 2 4 , 1 9 6 5
The relevant service area in this consolidation extends through Worcester
County in central Massachusetts, from the State line on the north to the southern
border of the County and State, occupying approximately the eastern one-half of
the County. The area is highly developed with diversified industry constituting
the principal economic base. The main offices of the participating banks are
20 miles apart and the nearest offices are 6 miles apart. A comprehensive
survey of the deposit and loan accounts of the two banks reveals an insignificant
amount of competition between them which would be eliminated.
Guaranty is the second largest commercial bank among 12 operating in
the relevant service area and this rank will be unchanged as a result of the
consolidation. It will hold approximately 23.5 percent of the IPC deposits held
by the remaining 11 commercial banks in the area, an increase of 3.5 percent.
The resultant bank would be less than one-half the size of its major commercial
bank competitor in Worcester, as measured in terms of IPC deposits, and would
be operating 14 offices compared to 26 for the largest bank. The relative rank
and service areas of the numerous financial institutions competitive in the over­
all area would be unchanged by the consolidation. Of strong competitive signifi­
cance is the presence in the area of 16 mutual savings banks which, combined,
hold more than two-thirds of the aggregate IPC deposits held by all banks, or
more than twice the volume of IPC deposits held by the commercial banks. More­
over, out-of-territory banks in larger cities, particularly Boston, are competitive
in the area for the accounts of the larger industrial firms. Expanded services,
including greater resources and lending capacity, trust facilities, and the ad­
vantages of Guaranty’s automation equipment would be immediately available to
the residents of the Webster area where the principal noticeable effect of the
consolidation would be the substitution of branches of Guaranty for the present
offices of National.
It is concluded that the consolidation, which will not have an unfavorable
effect on competition or the banking structure of the area, and which will pro­
vide increased banking services and greater availability of banking resources
for support of the economy of the area, without tendency toward monopoly, is in
the public interest.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources

Case No. 35
The Colorado State Bank of Denver,
Denver, Colorado
to acquire the assets and assume
liabilities of
Citizens Savings Bank,
Denver

(in
UR

thousands
of dollars)

65

Banking offices
In
operation

26,362

1

10,629

To be
operated

1

1

S u m m ary rep ort by A tto rn e y G eneral, June 2 9 , 1 9 6 5
The proposed transaction would unite two of the small banks in Denver, Colo­
rado, whose combined shares of loans and IPC deposits would not exceed 3
percent. Moreover, the Denver banking market is dominated by two of the 26
competing banks. Approval of this transaction would strengthen the resulting
institution without significant anticompetitive results. The proposed acquisition of
assets and assumption of liabilties would not appear to have a significant adverse
effect upon competition.

Basis fo r C orporation approval, O c to b e r 15, 1 9 6 5
The proposed transaction will unite two small banks in Denver, Colorado, which
are located five blocks apart. The selling bank is authorized to conduct a general
banking business but operates as a savings bank. The nature of its operation
indicates there is little competition between the participating banks which would
be eliminated by the proposal.
The service area is dominated by two large banks which hold an aggregate of
more than one-half the IPC deposits and loans owned by the 26 banks in Denver.
The resulting bank would hold less than 3 percent of such deposits and loans.
The elimination of the selling bank will not substantially lessen competition with
other area banks and numerous banking alternatives are available within a short
distance. The selling bank’s customers will benefit from the added services avail­
able at the applicant bank which include checking accounts, safe deposit box
rental and drive-up facilities.
The banking factors requiring consideration are determined to be favorable
to the proposal and the effect of the transaction on competition would not be
unfavorable. Consummation of the proposal will provide added banking services
to the selling bank’s present customers and is concluded to be in the public
interest.

Case No. 36
Altoona Central Bank and Trust Company,
Altoona, Pennsylvania (change title to
Mid-State Bank and Trust Company)
to merge with
First Bellefonte Bank and Trust Company,
Bellefonte

Resources
(i n
un
thousands
of dollars)

Banking offices
In
operation

58,267

8

20,790

To be
operated

12

4

S u m m a ry rep ort by A tto rn e y G eneral, A u g u s t 2 7 , 1 9 6 5
Altoona Central Bank and Trust Company, Altoona, Pennsylvania (Altoona
Bank) is the largest of nine banks in its service area with IPC deposits of
$47,728,000 (about 33.7 percent of such deposits held by banks located there). It
operates eight offices in Altoona and the surrounding area. Since 1953 Altoona
Bank has acquired four banks with total deposits of $15,966,578.
First Bellefonte Bank and Trust Company, Bellefonte, Pennsylvania (Bellefonte
Bank) is the second largest of eight banks in its Bellefonte-State College service



FEDERAL DEPOSIT INSURANCE CORPORATION

66

area with IPC deposits of $16,573,000 (29 percent of such deposits held by
banks located there) although it is largest in loans and discounts with 36 percent.
It operates four offices in this area. Since 1954 Bellefonte Bank has acquired two
banks with total deposits in excess of $6,320,723.
Existing competition between the participating banks is very limited, largely
because their nearest offices are 35 miles apart.
If the proposed merger is consummated, the other banks in the Altoona-State
College service areas, respectively, will henceforth be competing against a
banking institution with greatly increased resources. In Altoona Bank’s service
area the resulting bank would have 40 percent of total IPC deposits of banks
located there, whereas at the present time Altoona Bank has 33.7 percent of
such deposits. Likewise, in the Bellefonte-State College service area, the result­
ing bank would have 62 percent of total IPC deposits of banks located there,
whereas at the present time Bellefonte Bank has 29 percent of such deposits.
In both areas the resulting bank would be the largest by a substantial margin.
This merger would serve to further accelerate the trend toward concentration
of bank resources in this central Pennsylvania area and enhance the competitive
imbalance already existing between the participating banks and the smaller
banks in their respective service areas. Thus, the proposed merger, if consum­
mated, may have an adverse effect upon competition.

Basis fo r C orporation approval, O c to b e r 21, 1 9 6 5
The applicant is the larger of 2 banks in Altoona and the largest of 12
in the Altoona service area. Also, it is larger than each of the 8 banks in the
Bellefonte-State College service area. First is the second largest bank in the
Bellefonte-State College service area although it holds the largest volume of
loans. The service areas are separate. Altoona and Bellefonte are 50 miles apart
and the nearest offices of the applicant and First are 36 miles apart. Therefore,
the merger would not reduce the number of banking choices available to the
public, insofar as each area is concerned. There is no competition between the
two banks which would be eliminated. Although the largest bank will become
larger, the remaining banks are well established and have successfully com­
peted with larger banks in the past.
There is strong evidence of the need for a larger bank in the service areas
involved, especially in the Bellefonte-State College area where the growth trend
in recent years has been substantial, both with respect to industry and housing,
as well as the constantly increasing enrollment at Pennsylvania State University.
The legal lending limit of First is inadequate to service the credit needs of several
of its industrial and larger business customers and on many occasions it has
had to resort to loan participations with correspondent banks in order to provide
these credit needs. Moreover, in order to assist in financing the growing housing
needs of the area, it has had to sell mortgage loans to other financial institutions.
The resulting bank, with its greater resources and larger capital base, will alle­
viate this problem and it will be in a better position to assist in the expansion and
growth of the area. Improved trust services, including applicant’s common trust
fund, will become available to the customers of First and a farm representative
and agricultural department will be able to develop more effective relations with
farmers in Blair and Centre counties which contain very fertile farm land. The
applicant already has installed automation equipment and as a result of the
merger the resultant bank will be of sufficient size to develop and expand this
service for the benefit of both banks and their customers.
All banking factors are considered to be favorable to the proposal. It is con­
cluded that the merger which will not have unfavorable effects on competition
and which will provide greater benefits to the public and assist in the economic
growth of the area, without tendency toward monopoly, is in the public interest.




67

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Case No. 37
Binford State Bank,
Binford, North Dakota (change title
to Farmers and Merchants Bank in
Cooperstown, and change location of
head office to Cooperstown)
to merge with
Security Trust Company,
Cooperstown

Resources
(in
thousands
of dollars)

Banking offices
In
operation

1,693

1

1,140

To be
operated

1

2

S u m m a ry re p o rt by A tto rn e y G eneral, June 3 0 , 1 9 6 5
Each of the merging banks has assets of less than $2 million and operates one
office. The banks are located 19 miles apart in a sparsely populated area that
is predominantly agricultural, with some light industry around Cooperstown. Both
banks are owned and operated by the same individuals. In fact, Security Trust Co.
was organized in 1963 by the owners and officers of Binford State Bank.
The service areas of the two banks overlap to a degree. Their common owner­
ship and management, however, suggest that there is little significant competi­
tion between them that would be eliminated by this merger.
The resulting bank will be comparable in size to the four other banks operat­
ing in its service area. It will be in most direct competition with the area’s largest
bank (First State Bank in Cooperstown), an affiliate of First Bank Stock Corp.
of Minneapolis. On the other hand, the owners and officers of the resulting bank
also own and operate Citizens State Bank in Finley, one of the area’s four other
banks. Because of this relationship the same individuals control 35-40 percent of
the area’s banking business. It seems unlikely that there will be especially vigor­
ous competition between the resulting bank and Citizens in Finley for this signifi­
cant amount of business. In terms of concentration, however, this relationship
does not appear serious, so long as these banks remain separate.
In our opinion, the overall effect of this merger on competition will not be
adverse.

B asis fo r C orp oratio n appro val, O c to b e r 2 9 , 1 9 6 5
Among four banks in Griggs County, including Security, and seven in the
relevant service area, the applicant and Security are the two smallest and follow­
ing their merger will be of about equal rank with one other bank as third largest
among six banks in the area. Cooperstown is the location of the largest bank
in the area, holding'approxim ately one-fourth of the local IPC deposits, as
compared to less than 16 percent which will be held by the bank to result from
the merger. The increase in size for the applicant is not an important factor in
this proposal.
Both the applicant and Security are commonly owned and managed. The con­
trol of the applicant was acquired in 1954, and that of Security when it was
organized as a trust company in 1963. Because of recent changes in the North
Dakota banking law, a trust company can no longer engage in a general banking
business. Because of the common ownership and managemet, elimination of
competition, also, is not an important factor in the proposal.
Binford, the present location of the applicant and 18 miles northwest of
Cooperstown, is a small community of about 260 population, which is on a declin­
ing trend, and the community contains but about 10 business establishments.
Cooperstown, the seat of Griggs County, has a present estimated population of
almost 1,600 which is increasing, and it has about 85 business establishments.
Cooperstown is the trading center for Griggs County and the surrounding area
for a radius of from 15 to 25 miles in all directions. The owners of the applicant
and Security have been residents of Cooperstown for about 40 years, and
through other business interests have supplied credit needs in substantial
amounts in the area. The growth of Security in its approximate 21/2 years of



FEDERAL DEPOSIT INSURANCE CORPORATION

68

existence, without the benefit of Federal deposit insurance, despite the competi­
tion by an insured local competitor (the largest bank in the area), is evidence
that it is providing a community need and convenience. The change of location
of the applicant (a full-service bank) from Binford to Cooperstown should in­
crease competition in the area and improve services to the public because the
services presently provided by Security are limited by legal restrictions. It is
indicated that the residents of Binford already are going in increasing numbers
to Cooperstown to purchase their goods and services; thus, the conversion from
a full-service bank in Binford with poor future growth prospects to a paying and
receiving station should result in no significant inconvenience to the public in
that community. The State Banking Board in its written opinion concurs in this
view. Full-service branch banks are prohibited in North Dakota.
There is no tendency toward monopoly involved, and it is concluded that the
merger and change of main office location from Binford to Cooperstown would
be in the public interest.

Case No. 38
Citizens’ Bank of Albany,
Albany, Oregon (change title to
Citizens Valley Bank)
to merge with
Bank of Lebanon,
Lebanon

Resources
(in
thousands
of dollars)

Banking offices
In
operation

11,823

2

11,712

To be
operated

3

5

S u m m ary rep o rt by A tto rn e y G eneral, S e p te m b e r 3 , 1 9 6 5
Citizens’ Bank of Albany (Citizens), Albany, Oregon, has requested permission
to merge the Bank of Lebanon (Lebanon), Lebanon, Oregon. The Citizens’ Bank
intends to operate the acquired facilities as branches. The merged bank will
have approximately $23,000,000 in deposits and $13,500,000 in loans. Service
areas of the two banks overlap and they are presently competitors for those
services offered by both, namely deposits, commercial loans and agricultural
loans. In the service area of the resulting bank are two large statewide banking
chains (First National Bank of Oregon and U. S. National Bank of Oregon) which
control 8 percent of the loans and deposits throughout the entire State and are
substantial factors in the resulting bank’s area.
The competitive effects of the proposed merger probably would be adverse
in that all presently existing competition between the two banks would be elim ­
inated. In view of the limited size of the two banks in relation to their large
competitors such anticompetitive effects would not appear to be substantial.

Basis fo r C orporation approval, N o v e m b e r 10, 1 9 6 5
The merger involves two relatively small banks of similar size whose main,
and closest, offices are located 13 miles apart in Linn County, Oregon. There are
no intervening bank offices and the applicant and merging bank reportedly de­
rive business from each other’s area “ to quite an extent” . The proposal would
eliminate the direct competition between them; however, the merging bank’s
financial condition seriously threatens its ability to continue in operation. The
proposal, under this circumstance, would have the effect of preserving, rather
than lessening, competition by assuring the continued operation of the merging
bank offices as branches of the applicant.
The applicant would slightly more than double its size but the resulting bank,
with $23.0 million in deposits, would continue to compete with the two largest
branch bank systems in Oregon. Each of the large banks holds in excess of $1.0
billion in deposits and competes directly with the participating banks’ main
offices and at one of the merging bank’s branch locations. Competition would be
enhanced with the large competitors, and the applicant’s increased size could



69

BANK ABSORPTIONS APPROVED BY THE CORPORATION

enable It to offer improved and additional banking services not presently pro­
vided by the individual participating banks.
The proposal would not have significant adverse effects on competition and
would provide a solution to the merging bank’s management and asset prob­
lems. Continued operation of the merging bank’s offices would be assured and
it is concluded that the proposed merger is in the public interest.

Case No. 39
Union Bank & Trust Co., Erie,
Erie, Pennsylvania
to merge with
The Bank of Erie,
Erie

Resources
(in
thousands
of dollars)

Banking offices
In
operation

35,677

6

14,439

To be
operated

3

9

S u m m a ry re o o rt by A tto rn e y G eneral, A u g u s t 10, 1 9 6 5
Union Bank & Trust Co., Erie, Erie, Pennsylvania, with total assets of $33,793,000,
and five branch offices, proposes to merge the Bank of Erie, which has total
assets of $14,000,000 and two branch offices. Applicant bank and the merging
bank are the two smallest of five banks in the city of Erie. Applicant bank has
made no acquisitions since chartered in 1923 except for the purchase of Home
National Bank of Union City, Pennsylvania in 1959, which has since operated as
a branch office.
Although the resulting bank will continue to rank last in the Erie area, the
proposed acquisition would eliminate all competition between two of five compet­
ing banks in Erie and reduce the banking alternatives from five to four, thereby
adversely affecting competition in the Erie, Pennsylvania area.

B asis fo r C o rp oratio n app roval, N o v e m b e r 10, 1 9 6 5
The relevant service area in this proposal is the city of Erie and is considered
to extend approximately 3 miles beyond the city limits. Within this area there
are 22 offices of five banks, of which Union operates 5 and Bank of Erie 3.
The participants are the two smallest of the five Erie banks, together holding 15.4
percent of the aggregate resources and Bank of Erie holding but 4.5 percent.
The two largest Erie banks, combined, hold more than two-thirds, each being of
almost equal size. There is competition between the merging banks which will be
eliminated, but the improved competitive standing of Union will more than
compensate for the loss of the smallest competitive source. The broader and
improved services which Union can introduce into the offices of Bank of Erie
and the larger lending base of the resulting bank will tend to increase competition
with the three larger banks. There will be no reduction in the number of
banking offices.
Bank of Erie presently is the only bank in Erie not operating a trust depart­
ment. In addition to trust facilities, Union will provide the customers of that bank
with the advantages of electronic data processing equipment, and the larger
lending base will be beneficial to the resulting bank in attracting and holding
new customers. Moreover, Bank of Erie lacks management depth and is faced
with a management problem which the merger will solve.
In view of the competition provided by the three larger banks, there is no
tendency toward monopoly, and it is concluded that the merger is in the pub­
lic interest.



70

FEDERAL DEPOSIT INSURANCE CORPORATION

Case No. 40
The Northwestern Bank,
North Wilkesboro, North Carolina
to merge with
Bryson City Bank,
Bryson City

Resources
(in
thousands
of dollars)

Banking offices
In
operation

To be
operated

239,953

66

67

3,095

1

S u m m a ry re p ort by A tto rn e y G eneral, July 21, 1 9 6 5
Northwestern Bank, North Wilkesboro, North Carolina, proposes to acquire
by merger the Bryson City Bank, Bryson City, North Carolina. Northwestern Bank
is the fifth largest bank in North Carolina, with resources in excess of $225
million. It operates 63 offices in 58 cities concentrated in the Piedmont and
western regions of North Carolina. Since 1960 it has acquired nine independent
banks with 16 offices and combined resources of over $52.7 million.
The Bryson City Bank operates its only office in Swain County and is the only
bank in that county. It is 25 miles from the nearest office of Northwestern Bank.
As of December 31, 1964, the Bryson City Bank had total resources of over $2.7
million. Competition between the merging banks is virtually non-existent.
The banking industry in North Carolina is highly concentrated with the six
largest banks accounting for over 66 percent and 68 percent of the State’s
total deposits and resources, respectively. Northwestern Bank presently accounts
for 4.9 percent of the State’s total deposits and 5 percent of total resources,
while corresponding figures for the State’s largest bank, Wachovia Bank and
Trust Co., are 22.1 percent and 22.9 percent, respectively. Northwestern Bank
claims that the proposed merger is necessary to enable it to compete with the
State’s larger institutions.
The instant merger would not have anticompetitive effects.

B asis fo r C orp oration approval, N o v e m b e r 17, 1 9 6 5
Banking resources in North Carolina are concentrated largely in six major
branch systems operating on a statewide or regional basis and among which
Northwestern ranks fifth in volume of deposits and number of banking offices.
Among 152 banks in the State, as of December 31, 1964, these six banks held
more than two-thirds of the total bank deposits and operated more than one-half
of the State’s 831 banking offices. Northwestern held less than 5 percent of the
total banking deposits and it now operates 66 offices. By contrast, the State’s
largest bank with 92 offices holds 22 percent of the State’s total bank deposits
and the fourth largest bank holds 9 percent. Northwestern, ranking fifth, is only
a little more than one-half the size of the State’s fourth largest bank.
Northwestern faces direct competition from the State’s four largest branch
bank systems at several locations although its operations are confined to the
north-central and the western sections of the State. It does not presently com­
pete with the unit Bryson City Bank; therefore, elimination of competition is not
a factor in this proposal. Bryson City Bank holds less than 0.06 percent of the
State’s total deposits and its merger into Northwestern will have no significant
effects on competition in the areas where Northwestern presently has offices.
The nearest competitor for Bryson City Bank is the Cherokee branch of First
Union National Bank of North Carolina, Charlotte, 10 miles northeast (the State’s
third largest bank). Although competition in the service area of Bryson City
Bank is limited because of the mountainous terrain, to the extent that it may
exist, the absorption of the relatively small unit Bryson City Bank by North­
western would have no significant adverse competitive effects. The latter bank
is in a position to offer a much broader range of services to the public, particu­
larly trust facilities, an agricultural advisory department, data processing, and
other specialized loan services.
It is concluded that the merger is in the public interest.



71

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in
thousands
of dollars)

Case No. 41

Banking offices
In
operation

100,569

3

114,988

Kings County Trust Company,
Brooklyn, New York (change title to
Kings County Lafayette Trust Company)
to merge with
Lafayette National Bank of Brooklyn
in New York,
Brooklyn

To be
operated

10

7

S u m m ary rep ort by A tto rn e y G eneral, O c to b e r 13, 1 9 6 5
Kings County Trust Company (hereinafter called Kings County) was organized
on August 6, 1889. It has received authority to establish a branch office at 1532
Flatbush Avenue, Brooklyn, and expects to do so in about three months. The
average net operating income of this bank for the five years 1959 to 1963 has
been $1,263,000 annually. For 1964 it was $1,084,000.
Lafayette National Bank of Brooklyn in New York (hereinafter called Lafay­
ette) was organized on February 26, 1926. Lafayette has a head office and six
branches, all in Brooklyn. The average net operating income of this bank for
the five years 1959 to 1963 has been $1,610,000 annually. For 1964 it was
$1,977,000.
The application indicates that both banks compete in the same service areas
and maintain commercial, personal loans and trust departments in the service
area involved. There are four competing Brooklyn banks with the following IPC
deposits, loans and discounts as of June 30, 1965:
IPC
deposits

Name of bank

Kings County
Lafayette
Central State Bank
Franklin National Bank of L. I.

$

84,633,000
105,707,000
33,812,000
1,257,370,000

Total
net loans
and discounts

$ 46,436,000
71,093,000
21,231,000
874,851,000

In addition, six large New York City banks have branches in the primary service
area of the proposed merging banks in Brooklyn, to wit: Bankers Trust Co.,
Chase Manhattan Bank, Chemical Bank New York Trust Co., First National City
Bank, Manufacturers Hanover Trust Co. and Royal National Bank.
Considering the continuing trend toward concentration of banking resources in
the New York City metropolitan area, this merger will serve to accelerate that
trend and eliminate one of the four local banks in the Brooklyn service area.
The elimination of each bank creates a competitive disadvantage for local busi­
nessmen as well as for the remaining banks. Therefore, the proposed merger,
if consummated, would have a substantial adverse effect on competition.

Basis fo r C orporation approval, N o v e m b e r 2 4 , 1 9 6 5
The proposal would merge two commercial banks of similar size with main
offices 31 blocks apart in Brooklyn, New York. Applicant had been a single­
/2
office bank engaged predominantly in wholesale banking until 1965. Lafayette
operates seven offices and its banking business is primarily retail in nature. The
participating banks operate for deposits predominantly in different markets and
there is no significant competition between them to be eliminated by the pro­
posed merger.
The resulting bank would hold a nominal proportion of the aggregate deposits
and loans owned by the 17 commercial banks operating 126 offices in Brooklyn.
Lafayette is in direct competition with five banks, each holding in excess of $1.0
billion in deposits, which have branches in the same block as Lafayette’s main
office. Applicant’s main office competes directly with three banks, each holding
in excess of $5.0 billion in deposits, which have branches within two blocks.



FEDERAL DEPOSIT INSURANCE CORPORATION

72

There would be no material change in the competitive situation in Brooklyn
or in the immediate areas of the participating bank’s main offices.
Such limited unfavorable effects on competition as might result from the
merger would be outweighed by the resolution of the capital, asset and manage­
ment problems of Lafayette. The merger, therefore, is concluded to be in the
public interest.

Case No. 42
American Bank and Trust Co. of Pa.,
Reading, Pennsylvania
to merge with
The First National Bank of Coaldale,
Coaldale

Resources
(in
un
thousands
of dollars)

Banking offices
In
operation

To be
operated

243,770

14

15

3,383

1

S u m m a ry rep o rt by A tto rn e y G eneral, S e p te m b e r 1, 1 9 6 5
This merger by itself does not appear likely to have significant anticompetitive
effects. It will result in the conversion of the small independent other bank,
currently the only bank located in Coaldale, into a branch office of applicant
bank, which is, by a substantial margin, the largest bank centered in Berks
County and also in the six surrounding counties. Because the resources of the
other bank are relatively small, this merger will not add significantly to the market
share of applicant bank, either in its present service area, or Berks County plus
Pottsville and Reamstown, or in the larger seven-county area which the resulting
bank claims it will serve.
However, the merger will be another step in the growth-by-merger process by
which the applicant bank has achieved its present position as the largest bank
in the area. Of applicant’s $220 million in deposits, $52 million came by the
merger route, $28 million in the last six years. But for these resources acquired
by some nine mergers, the applicant would be comparable in size and competi­
tive strength to other area banks. The proposed merger, then, while it would add
only another $3 million to the applicant’s deposits, will serve to enhance further
its current competitive advantages.

B asis fo r C orporation approval, D e c e m b e r 6, 1 9 6 5
The main offices of the merging banks are located 44 miles apart in eastern
Pennsylvania. Applicant, whose main office is in Reading, 60 miles northwest of
Philadelphia, operates 12 offices in Berks County, one branch in Lancaster
County and one branch in Schuylkill County. National is a unit bank located in
Coaldale, Schuylkill County, and applicant’s nearest office is 19 miles south­
west in Pottsville. Offices of competing banks intervene the closest offices of the
participating banks, and the deposit and loan accounts derived by either bank
from the other’s service area are negligible. There is no significant competition
between the merging banks which would be eliminated by the proposal.
Applicant is a progressive, well-managed bank with a history of service to its
community, particularly in providing financial and other support for industrial
diversification and expansion.
Coaldale, located near the northeast border of Schuylkill County, is in the
center of an anthracite mining area. The decline of this industry has been accom­
panied by a population decline and high unemployment and the area continues
to be economically distressed. Applicant’s Pottsville office is managed by a staff
and advisory committee which has furnished leadership in the continuing indus­
trialization of a radius of about 5 miles surrounding Pottsville. The resulting
bank can enlarge the capabilities of this group, particularly in Schuylkill County,
and accomplish a stated purpose of the merger: to increase the job-creating
potential in the northeast section of Schuykill County. The resulting bank could
provide complete banking and fiduciary services beneficial to the people, indus­
try, and commercial establishments in this area which the local banks now



73

BANK ABSORPTIONS APPROVED BY THE CORPORATION

provide to a lesser extent. The services include electronic data processing, a
larger lending limit, full-scale consumer credit and personal loan financing and
more extensive and competitive trust services.
The service area of the resulting bank would include Berks, Schuylkill, and
Lancaster counties as well as portions of four other contiguous counties in
which the applicant is authorized to establish branches under State law and a
small portion of Carbon County near Coaldale. Applicant is and will be the
largest bank with offices in this area but there would be no appreciable increase
in its resources through the proposed merger.
It is concluded, since there would be no significant unfavorable effects on com­
petition, the extension of applicant’s broader services and aggressive manage­
ment, with its record of improving the economy of the area it serves, to an
economically distressed area would benefit that community and, therefore, the
proposed merger is in the public interest.

Case No. 43
The Boone County State Bank,
Lebanon, Indiana
to acquire the assets and assume
liabilities of
State Bank of Advance,
Advance

Resources
(in
thousands
of dollars)

Bankir g offices
In
operation

12,764

2

1,732

To be
operated

3

1

S u m m a ry re p o rt by A tto rn e y G eneral, O c to b e r 2 7 , 1 9 6 5
The Boone County State Bank of Lebanon, Indiana, with assets of $12,765,000,
proposes to acquire the assets and assume the liabilities of the State Bank of
Advance, Advance, Indiana.
The acquisition by Boone, the largest bank in the area, of the assets of Ad­
vance would increase Boone’s dominance in the service area, and would en­
courage further concentration of banking facilities. However, in view of the size
of the merging bank, the lack of substantial competition to be eliminated and
the availability of alternate sources of banking services in the general area, it
does not appear that the proposed acquisition would have significant anti­
competitive effects.

B asis fo r C orp oratio n appro val, D e c e m b e r 16, 1 9 6 5
The two banks involved in the purchase and assumption transaction are lo­
cated 11 miles apart in Boone County, Indiana. No banking offices intervene the
two participating banks and their service areas overlap to a limited extent. There
is some competition betweeen them which would be eliminated but the amount
is not significant.
The increase in applicant’s resources would not materially affect competition
in Lebanon, the location of applicant’s two offices. The selling bank has less
than $2 million in resources and is the only bank located in Advance. There is
no competition in Advance to be affected by the introduction of the applicant.
The nearest competitors to Advance Bank are 5 to 8 miles distant and are
small banks serving primarily their own communities. There would be no signifi­
cant adverse effect on competition which may exist with these banks.
Present and potential customers in Advance Bank’s service area would benefit
from the resulting bank’s larger lending limit, the availability of applicant’s farm
representative and expanded consumer credit facilities.
The proposed transaction which would have no significant unfavorable effects
on competition, but which would provide enlarged and expanded services in
Advance Bank’s area and resolve the lack of depth in active management at
Advance Bank, is concluded to be in the public interest.



74

FEDERAL DEPOSIT INSURANCE CORPORATION

Case No. 44
Pontiac State Bank,
Pontiac, Michigan
to merge with
Clarkston State Bank,
Clarkston

Resources
(in
thousands
of dollars)

Banking offices
In
operation

To be
operated

62,818

10

8,803

S u m m ary rep ort by A tto rn e y G eneral, N o v e m b e r 15, 1 9 6 5
The proposed merger between a small, unprogressive, and futureless bank on
the one hand and a thriving, up-to-date and imaginative bank on the other,
neither of which is significantly in competition with the other, would only improve
banking services in a rapidly growing community where there is a need for such
an improvement.
The merger would not increase Pontiac State’s banking power appreciably.
On the other hand, it would permit Pontiac State to compete more effectively
with its much larger competitor in the area, Community National Bank.
No anticompetitive effects are seen in the proposed merger.

Basis fo r C orporation approval, D e c e m b e r 16, 1 9 6 5
The Pontiac Bank serves an area a portion of which is contiguous to, but
does not include a significant portion of, the Clarkston Bank’s service area, lo­
cated some 10 miles northwest of the applicant’s main office. Business it de­
rives from the Clarkston area is mostly unsolicited, and results from the inability
of the Clarkston Bank to take care of the area’s credit requirements with its
present size and loan policies.
Competition felt by the Clarkston Bank in the past has been small because the
larger banks have not been interested in the type of account it was handling, but
the early establishment of an office of a large Pontiac bank nearby would put it,
as a small, unit bank, in a very disadvantageous competitive situation. On the
other hand, merger into the Pontiac Bank will provide its community with offices
of both Pontiac banks to choose between, and thus will improve the area’s
competitive situation. Furthermore, the proposal will enable the applicant to
maintain its competitive position relative to the larger Pontac bank and the banks
headquartered in Detroit and Flint which have branched into the Greater Pontiac
Area. These outside banks presently handle about 97 percent of the banking
business of the Detroit-Pontiac-Flint section of the State of Michigan, and the
National Bank in Pontiac handles about 67 percent of the volume left for the
four existent locally headquartered banks. While the proposed merger will in­
crease the applicant’s share of the latter volume only some 3 percent to 4 per­
cent, it will enable it to maintain its competitive position in the Clarkston area
as well as in the rest of Pontiac’s service area.
The Pontiac Bank is in a position to bring a much broader range of banking
services to the Clarkston area, and vastly better credit facilities, under a man­
agement considered highly competent, whereas the Clarkston Bank has been
unable, due to its small size and lack of perceptible future prospects, to find a
suitable successor or assistant for its present executive officer. The proposed
merger is concluded to be in the public interest.

Case No. 45
Empire Trust Company,
New York, New York
to merge with
Empire Safe Deposit Company,



Resources
(in
thousands
of dollars)

316,497

286

Banking offices
In
operation

2

To be
operated

2

75

BANK ABSORPTIONS APPROVED BY THE CORPORATION

S u m m a ry rep o rt by A tto rn e y G eneral, N o v e m b e r 2 6 , 1 9 6 5
Empire Trust Company proposes to merge into it Empire Safe Deposit Com­
pany, its subsidiary, which is engaged in the business of renting vaults and safe
deposit boxes. The stated purpose of the merger is to simplify administration and
to effect possible local tax savings. The proposed transaction would have no
effect on competition.

B asis fo r C orporatio n app ro val, D e c e m b e r 2 0 , 1 9 6 5
Empire Trust Company owns all but Directors’ qualifying shares of the Empire
Safe Deposit Company whose operation is limited to a safe deposit business
conducted in leased portions of the bank’s two offices. All officers of the safe
deposit company are also officers of Empire Trust Company. The objective of
the proposed transaction is to simplify administration and to possibly accom­
plish some savings in local taxes by eliminating the affiliation and having the
bank furnish safe deposit service on a direct basis. Consummation of the
merger should have no effect on the condition or prospects of the applicant
nor upon banking competition. Favorable findings have been made on the seven
factors required to be considered by the Corporation and it is concluded that
the merger is in the public interest.

Case No. 46
Keystone Bank,
Freeport, Pennsylvania (change location
of head office to Lower Burrell)
to merge with
The Union National Bank of Rockwood,
Rockwood

Resources
(in
thousands
of dollars)

Banking offices
In
operation

14,795

5

3,056

To be
operated

6

1

S u m m a ry rep o rt by A tto rn e y G eneral, A u g u s t 16, 1 9 6 5
Keystone Bank operates four offices in southwestern Pennsylvania on the
fringes or within the industrial complex of Pittsburgh. It has pending applications
for two branch offices to be located within this area. As of June 1, 1965, Key­
stone reported total assets of $14,395,000, net loans and discounts of $9,214,000
and total deposits of $12,826,000.
Union National Bank of Rockwood operates a single office in Rockwood,
Pennsylvania, a small agricultural and recreational community approximately 65
miles southeast of the nearest office of Keystone Bank. As of June 1, 1965, Union
National Bank reported total assets of $2,896,000, net loans and discounts of
$1,610,000 and total deposits of $2,645,000.
Because of the great distance separating the offices of the two banks and the
apparently local nature of their respective operations, competition between them
appears to be insignificant. Neither bank is a substantial factor in its respective
service area, and the impact of the merger from the standpoint of competition
or concentration in either service area is slight. We conclude that the effects of
the merger upon competition will not be adverse.

B asis fo r C orp oration appro val, D e c e m b e r 2 0 , 1 9 6 5
The areas served by the Keystone Bank and the Union Bank, whose closest
offices are more than 60 miles apart, are not contiguous and the banks have
never competed with each other. Consequently, there would be no elimination of
competition between the merging banks.
Union Bank has failed to grow or prosper because of local economic condi­
tions and, until recently, an unprogressive management. Keystone Bank’s manage­
ment now holds a substantial stock interest, effective control of policy and a
strong position on the board of Union Bank. Keystone Bank is in a position to



FEDERAL DEPOSIT INSURANCE CORPORATION

76

bring a much broader range of banking services to the Rockwood area, vastly
better credit facilities and a highly competitive management. Union Bank’s senior
officers are approaching retirement age and the bank faces a management suc­
cession problem. The resulting bank, with its superior credit facilities and aggres­
sive management, can prove to be a major factor in stimulating the local Rockwood economy and developing the region as a resort area, a prospect which
would be very beneficial to the local community.
Keystone Bank presently handles less than one-half of 1 percent of the banking
business in its present service area, and the proposal would have no adverse
effect on competition therein. Union Bank presently holds about 8 percent of the
deposits and loans in its immediate service area. The entry of Keystone Bank
into the Rockwood area would stimulate competition with the larger banks repre­
sented there without adverse effects on competition with other banks serving
the area.
The proposed merger, which would have no unfavorable effects on competi­
tion, would bring broader banking services and improved credit facilities to the
Rockwood area which can be a factor in stimulating the local economy and
development of the region, is concluded to be in the public interest.

Case No. 47
Security State Bank of Colby,
Colby, Wisconsin
to consolidate with
Colby State Bank,
Colby

Resources
(in
thousands
of dollars)

Banking offices
In
operation

To be
operated

4,285

3,703

S u m m a ry re p o rt by A tto rn e y G eneral, O c to b e r 2 7 , 1 9 6 5
This is a proposal to consolidate Security State Bank and Colby State Bank,
the two commercial banks of Colby, Wisconsin, a city of 1,200 in the west-central
part of the State. The head offices of the consolidating banks are half a block
apart; each bank also operates a branch office near the town. The head office
of Colby State would be discontinued after the banks are combined. Both banks
have been profitable independent institutions and are about equal in size to
their nearest competitors.
The proposed consolidation would extinguish the competition which now pre­
vails between Security State and Colby State and would eliminate the latter as an
independent competitor in Colby and the surrounding area. It would also upset
the relative competitive balance which prevails among the banks nearest Colby,
and might thereby stimulate further merger activity in the area.
For these reasons, it is our opinion that the proposed consolidation of these
two small, country banks would have an adverse effect on competition in com­
mercial banking in Colby but would not appear to adversely affect competition
beyond the confines of rural Colby and vicinity.

B asis fo r C orp oratio n appro val, D e c e m b e r 2 9 , 1 9 6 5
The proposal would consolidate two banks located one-half block apart in
Colby, Wisconsin, each with less than $5.0 million in resources. State law pro­
hibits branch banks and one office in Colby would be discontinued. The applicanUand the other bank each has a station, 3 miles north and 4 miles south
of Colby, respectively, which would be operated as stations of the resulting bank.
The IPC deposits of the applicant would be almost doubled and the resulting
bank would hold 23.3 percent of the aggregate of such deposits owned by the
nine banks serving the general area. The seven other banks are located outside
of Colby and its vicinity and primarily serve their immediate areas. The increased
size of the applicant would have no significant adverse effect on competition
with these banks. One large bank and four savings and loan associations located



BANK ABSORPTIONS APPROVED BY THE CORPORATION

77

outside the general area offer strong competition to the area banks. The proposal
would stimulate competition with these outside institutions to some degree.
The competition existing in Colby between the two small consolidating banks
would be eliminated but present banking facilities and services would be im­
proved and expanded and the resulting bank could offer additional services bene­
ficial to the community. The larger lending limit would enable essentially all of
the area's credit requirements to be met by the resulting bank, the present
inadequate physical facilities would be enlarged, a number of additional services
would be offered, and the resulting bank would be in a position to consider
establishment of a trust department and data processing techniques. The pro­
posal would eliminate one banking source in Colby but would cause no incon­
venience because of the proximity of the existing bank offices.
The overall effect of the transaction on competition would not be unfavorable
and the proposed consolidation, which would resolve applicant’s lack of depth
in active management and provide improved facilities and additional services
beneficial to the community, is concluded to be in the public interest.
1 Assets of branches being absorbed.
2 Two branches being absorbed. This bank will continue to operate its other offices.
3 Assets to be transferred.
4 Branch only is being absorbed. The Farmers Security Bank of Washburn will continue to operate its main office.
6 Operates two offices in quarters leased from Empire Trust Company as part of offices of the latter. Will be continued in
operation.










LEGISLATION
AND REGULATIONS

PART

TWO




81

FEDERAL BANKING LEGISLATION— 1965
Public L a w 8 9 -3
8 9 th C ongress, H . R. 3 8 1 8
M a rc h 3 , 1 9 6 5

AN ACT
To eliminate the requirement that Federal Reserve banks maintain certain
reserves in gold certificates against deposit liabilities.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assem bled , That the first sentence of the third paragraph

of section 16 of the Federal Reserve Act, as amended (12 U.S.C. 413), is further
amended by striking out “ reserves in gold certificates of not less than 25 per
centum against its deposits and” .
Sec. 2. The eighteenth paragraph of section 16 of the Federal Reserve Act,
as amended (12 U.S.C. 467), is further amended by substituting a period for the
comma after the word “ notes” and striking out the remainder of the paragraph.
Approved March 3, 1965.

Public L a w 8 9 - 5 9
8 9 th C ongress, S. 1 7 9 6
June 3 0 , 1 9 6 5

AN ACT
To amend the Small Business Act to provide additional assistance for disaster
victims.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assembled, That (a) section 7(b) of the Small Business

Act is amended by striking out “ twenty years.” , in the second sentence, and in­
serting in lieu thereof the following: “ thirty years: Provided, That the Administrator
may consent to a suspension in the payment of principal and interest charges on,
and to an extension in the maturity of, the Federal share of any loan under this
subsection for a period of not to exceed five years, if (A) the borrower under such
loan is a homeowner or a small-business concern, (B) the loan was made to
enable (i) such homeowner to repair or replace his home, or (ii) such concern to
repair or replace plant or equipment which was damaged or destroyed as the
result of a disaster meeting the requirements of clause (A) or (B) of paragraph
(2) of this subsection, and (C) the Administrator determines such action is neces­
sary to avoid severe financial hardship: Provided further, That the provisions of
paragraph (1) of subsection (c) of this section shall not be applicable to any such
loan having a maturity in excess of twenty years.”
(b)
Section 7(c) of such Act is amended by inserting “ (1)” after “ (c)” , and by
adding at the end thereof a new paragraph as follows:
“ (2) During any period in which principal and interest charges are suspended
on the Federal share of any loan, as provided in subsection (b), the Administra­
tor shall, upon the request of any person, firm, or corporation having a partici­
pation in such loan, purchase such participation, or assume the obligation of
the borrower, for the balance of such period, to make principal and interest
payments on the non-Federal share of such loan: Provided, That no such pay­



82

FEDERAL DEPOSIT INSURANCE CORPORATION

ments shall be made by the Administrator in behalf of any borrower unless (i)
the Administrator determines that such action is necessary in order to avoid a
default, and (ii) the borrower agrees to make payments to the Administration in
an aggregate amount equal to the amount paid in its behalf by the Administrator,
in such manner and at such times (during or after the term of the loan) as the
Administrator shall determine having due regard to the purposes sought to be
achieved by this paragraph.”
(c) Section 4(c) of such Act is amended by—
(1) Inserting “ 7(c)(2),” after “ 7(b),” in the first sentence;
(2) inserting “ and 7(c)(2)” after “ 7(b)” where “ 7(b)” first appears in the fourth
sentence; and
(3) deleting “ section 7(b)” from clause (2) in the fourth sentence and inserting
“ sections 7(b) and 7(c)(2)” .
Sec. 2. Section 4(c) of the Small Business Act is amended—
(1) by striking out “ $1,666,000,000” and inserting in lieu thereof $1,716,000,000” ; and
(2) by striking out “ $1,325,000,000” and inserting in lieu thereof $1,375,000,000 ” .

Approved June 30, 1965.

Public L a w 8 9 - 7 9
8 9 th C ongress, H. R. 5 3 0 6
July 21, 1 96 5

AN ACT
To continue the authority of domestic banks to pay interest on time deposits of
foreign governments at rates differing from those applicable to domestic depositors.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assembled, That the last sentence of the fourteenth para­

graph (12 U.S.C. 371b) of section 19 of the Federal Reserve Act is amended by
changing “ the effective date of this sentence and ending upon the expiration of
three years after such date,” to read “ October 15, 1962, and ending on October
15, 1968,” .
Sec. 2. The last sentence of section 18(g) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(g)) is amended by changing “ the effective date of this sen­
tence and ending upon the expiration of three years after such date,” to read
“ October 15, 1962, and ending on October 15, 1968,” .
Approved July 21, 1965.

Public L a w 8 9-8 1
8 9 th C ongress, S. 2 0 8 0
July 2 3 , 1 9 6 5

AN ACT
To provide for the coinage of the United States.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assembled, That this Act may be cited as the “ Coinage
Act of 1965” .
TITLE II— AMENDMENTS TO EXISTING LAW
“ §337. Coins as security for loans
“ Whoever lends or borrows money or credit upon the security of such coins
of the United States as the Secretary of the Treasury may from time to time



FEDERAL BANKING LEGISLATION— 1965

83

designate by proclamation published in the Federal Register, during any period
designated in such a proclamation, shall be fined not more than $10,000 or im­
prisoned not more than one year, or both.”
(b) The table of sections at the beginning of such chapter is amended by
adding at the end:
“ 337. Coins as security for loans.”
(c) The amendments made by this section shall apply only with respect to
loans made, renewed, or increased on or after the 31st day after the date of
enactment of this Act.
Approved July 23, 1965.

Public L a w 89-117
8 9 th C o ng ress, H . R. 7 9 8 4
A u g u s t 10, 1 9 6 5

AN ACT
To assist in the provision of housing for low- and moderate-income families, to
promote orderly urban development, to improve living environments in urban
areas, and to extend and amend laws relating to housing, urban renewal, and
community facilities.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assem bled , That this Act may be cited as the “ Housing

and Urban Development Act of 1965” .
TITLE XI— MISCELLANEOUS
FEDERAL RESERVE ACT
76 Stat. 663. 12 USC 371.
Sec. 1111. Section 24 of the Federal Reserve Act is amended by striking out
“ eighteen months” , wherever it appears m the third paragraph, and inserting
in lieu thereof “ twenty-four months” .
Approved August 10, 1965.

Public L a w 8 9 -1 4 5
8 9 th C ongress, S. 1 3 0 9
A ugust 28, 1965

AN ACT
To authorize checks to be drawn in favor of financial organizations for the credit
of a person’s account, under certain conditions.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assembled, That section 3620 of the Revised Statutes,

as amended (31 U.S.C. 492), is amended—
(1) by inserting the designation “ (a)” before the word “ It” at the beginning
thereof; and
(2) by adding the following new subsections at the end thereof:
“ (b) Notwithstanding subsection (a) or any other provision of law, and under
regulations to be prescribed by the Secretary of the Treasury, the head of an
agency may, upon the written request of a person to whom a payment is to be
made, authorize a disbursing officer to make the payment—
“ (1) by sending to the financial organization designated by that person a
check that is drawn in favor of that organization and for credit to the account
of that person; or



FEDERAL DEPOSIT INSURANCE CORPORATION

84

“ (2) if more than one person to whom a payment is to be made designates
the same financial organization, by sending to the organization a check that is
drawn in favor of the organization for the total amount due those persons and
by specifying the amount to be credited to the account of each of those persons.
In this subsection, ‘agency’ means any department, agency, independent estab­
lishment, board, office, commission, or other establishment in the executive,
legislative, or judicial branch, of the Government, any wholly owned or controlled
Government corporation, and the municipal government of the District of Colum­
bia; ‘financial organization’ means any bank, savings bank, savings and loan
association or similar institution, or Federal or State chartered credit union.
“ (c) Payment by the United States of a check, drawn in accordance with sub­
section (b) and properly endorsed, shall constitute a full acquittance for the
amount due to the person requesting payment.”
Approved August 28, 1965.

Public L a w 8 9 -1 7 5
8 9 th C ongress, H . R. 5 2 8 0
S e p te m b e r 9 , 1 9 6 5

AN ACT
To provide for exemptions from the antitrust laws to assist in safeguarding the
balance of payments position of the United States.
Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assem bled , That it is declared to be the policy of Con­

gress to safeguard the position of the United States with respect to its inter­
national balance of payments. To effectuate this policy the President shall under­
take continuous surveillance over the private flow of dollar funds from the
United States to foreign countries, the solicitation of cooperation by banks, invest­
ment bankers and companies, securities brokers and dealers, insurance com­
panies, finance companies, pension funds, charitable trusts and foundations, and
educational institutions, to curtail expansion of such flow, and the authorization
of such voluntary agreements or programs as may be necessary and appropriate
to safeguard the position of the United States with respect to its international
balance of payments.
Approved September 9, 1965.

RULES AND REGULATIONS OF THE CORPORATION
TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED
NONMEMBER BANKS
§329.6 maximum rates 1 of interest payable on time and savings deposits by
2
insured nonm em ber banks — (a) Maxim um rate of 4 1i percent.
/

No insured nonmember bank shall pay interest accruing at a rate in excess of
51 oercent per annum, compounded quarterly,1 regardless of the basis upon
/2
3
which such interest may be computed, on any time deposit.
(b) Maxim um rate of 4 percent. No insured nonmember bank shall pay interest
accruing at a rate in excess of 4 percent per annum, compounded quarterly,
regardless of the basis upon which such interest may be computed, on any




RULES AND REGULATIONS OF THE CORPORATION

85

savings deposit. [Effective Dec. 7, 1965] (Sec. 9, 64 Stat. 881; 12 U.S.C. 1819
Interprets or applies Sec. 18, 64 Stat. 891; 12 U.S.C. 1828). [F.R. Doc. 65-13221;
Filed Dec. 9, 1965; 8:47 a.m.]
12
The maximum rates of interest payable by insured nonmember banks on tim e and
savings deposits as prescribed herein are not applicable to any deposit which is payable
only at an office of an insured nonmember bank located outside of the States of the
United States and the District of Columbia.
13
This 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 pre­
scribed when compounded quarterly.

IN T E R P R E T A T IO N
The purpose of the amendment is to increase the rate of interest that insured
State nonmember banks are permitted to pay on time deposits, including certifi­
cates of deposit. Formerly, insured State nonmember banks were permitted to
pay interest up to 41 percent per annum on a time deposit with maturity of
/2
90 days or more and to pay interest up to 4 percent on any such deposit with
maturity of less than 90 days. Insured State nonmember banks are now permitted
to pay interest up to 51/2 percent per annum on any time deposit with maturity
of 30 days or more.

INTERNAL REVENUE RULING 65-921
SECTION 166— BAD DEBTS
Revised method for computing annual additions to reserves for bad debts by
banks for taxable years ending after December 31, 1964.
M im eograph 6209, C.B. 1947-2, 26, and Revenue Ruling 54-148, C.B. 1954-1, 60,
superseded; Revenue Procedure 64-51, C.B. 1964-2, 1003, Revenue Rulings 57-210,
C.B. 1957-1, 94, 57-509, C.B. 1957-2, 145, 58-259, C.B. 1958-1, 116, 63-122, C.B.
1963-2, 98, and G.C.M. 25605, C.B. 1948-1, modified.

SECTION 1. PURPOSE.
The purpose of this Revenue Ruling is to provide a uniform percentage for
computing annual additions to reserves for bad debts by banks in order to
minimize the large differences in permissible reserves now existing among banks
under prior rulings.. . .
SEC. 3. UNIFORM RESERVE RATIO.
In lieu of reserve computations made through the use of a loss experience
factor determined on an individual basis as provided in section 7 of this Revenue
Ruling, a bank will be allowed deductions for additions to its reserve for bad
debts until the reserve equals 2.4 percent of loans outstanding at the close of the
taxable year, subject to the exceptions and limitations prescribed in sections 4, 5,
and 6 of this Revenue Ruling.
SEC. 4. RESERVE LESS THAN UNIFORM RATIO.
If the dollar balance of a bank’s reserve, as of the close of its taxable year
immediately preceding the year of the change, is less than 2.4 percent of loans
outstanding at such time, the amount of the difference (referred to herein as the
deficiency in the reserve) may be included in the bank’s annual addition to the
reserve in an amount not exceeding one-tenth of the deficiency in the reserve,
commencing with the year of the change. Such amount need not be added in



86

FEDERAL DEPOSIT INSURANCE CORPORATION

any specific taxable year but not more than one-tenth of the deficiency will be
permitted in any one year. A bank computing its annual reserve addition under
this section will also be permitted to include in such addition an amount equal
to net bad debts charged to the reserve during the year. Further, it will be
permitted to include in such addition 2.4 percent of the increase in its loans
outstanding at the end of the taxable year over loans outstanding at the end
of the year preceding the year of change, to the extent that a reserve addition
with respect to such increase has not been taken in a prior year. The sum of the
foregoing amounts, however, may not exceed an amount sufficient to increase the
reserve to 2.4 percent of outstanding loans at the end of the taxable year. Thus,
if a decrease in a bank’s year-end outstanding loans has resulted in a reserve
ratio in excess of 2.4 percent, no addition to the reserve would be permitted for
that year. If a bank changes to the reserve method of accounting, it shall be
treated, for purposes of this section, as having a reserve of zero for the taxable
year immediately preceding the year of the change.
SEC. 5. RESERVE EXCEEDING UNIFORM RATIO.
If the dollar balance of a bank’s reserve, as of the close of its taxable year
ending in 1964, exceeds 2.4 percent of loans outstanding at such time, the addi­
tion to the reserve in any taxable year shall not increase the reserve above the
greater of (i) such dollar balance, or (ii) 2.4 percent of loans outstanding at the
close of the taxable year. Thus, a bank which has reserves exceeding 2.4 percent
of outstanding loans may maintain the dollar balance of its reserve by making
additions to its reserve equal to the net amount of bad debts charged to the
reserve during the year. Notwithstanding the preceding rules of this section, if
the amount of loans outstanding at the close of the taxable year is less than the
amount of loans outstanding at the close of the taxable year ending in 1964, the
addition to the reserve shall not increase the reserve at the close of the taxable
year to a percentage of outstanding loans which is larger than the percentage
which the reserve bore to outstanding loans at the close of the taxable year end­
ing in 1964.
SEC. 6. MAXIMUM ANNUAL RESERVE ADDITION.
Notwithstanding the provisions of sections 4 and 5 of this ruling, the addition
to the reserve that a bank will be permitted in a taxable year through the use
of the uniform reserve ratio shall not exceed an amount equal to 0.8 percent of
loans outstanding at the end of the taxable year, or an amount sufficient to bring
the reserve to 0.8 percent of loans outstanding at the end of the taxable year,
whichever amount is greater.
SEC. 7. PROBABLE EXPERIENCE METHOD.
In lieu of reserve computations made through the use of the uniform reserve
ratio under sections 3 through 6 of this Revenue Ruling, a bank may compute
its annual reserve additions under the method provided in this section. If a bank
so computes its addition, it must establish, to the satisfaction of the District Di­
rector of Internal Revenue, that the amount computed is necessary in order to
absorb the bad debts probably arising on loans outstanding at the close of the
taxable year. In such event, the reasonableness of the proposed addition for the
taxable year shall be determined under the provisions of section 166(c) of the
Code in light of the facts existing at the close of such year. Thus, the reasonable­
ness of the addition shall depend upon the total amount of the existing reserve
and current business conditions, the nature of the bank’s loans, the bank’s past
experience, and other factors, which may reasonably be expected to have a
significant effect on the collection of the loans outstanding at the close of the
taxable year. The reasonableness of the addition shall not, however, be based
upon mere speculation, possibility, or contingency. For purposes of this section,
the addition to the reserve for any taxable year will be regarded as reasonable if
it does not increase the balance of the reserve (as of the close of such year)
above an amount equal to the total amount of loans outstanding at the close of
such year multiplied by the “ moving average experience percentage” for such



87

INTERNAL REVENUE RULING

year. In determining the moving average experience percentage, reference shall
be made to the bad debt experience of the bank with respect to its loans for a
6-year period comprising the taxable year and the 5 preceding taxable years. The
moving average percentage shall be computed as the ratio which the total amount
of net bad debts sustained on loans during such 6-year period bears to the
sum of the total amounts of loans outstanding at the close of each taxable year
in such period.
If the bank has not been in existence for the full 6-year period, then, for the
portion of such period during which it was not in existence, the taxpayer may
use the average bad debt experience of comparable banks with respect to com­
parable loans.
SEC. 8. DEFINITIONS OF TERMS.
.01 The term “ banks” as used herein means banks or trust companies in­
corporated and doing business under the laws of the United States (including
laws relating to the District of Columbia), of any State, or of any Territory, a
substantial part of the business of which consists of receiving deposits and
making loans and discounts. Such term does not include a mutual savings bank
not having capital stock represented by shares, a domestic building and loan
association as defined in section 7701(a)(19) of the Code, or a cooperative bank
as defined in section 7701(a)(32) of the Code.
.02 The term “ loans” as used in sections 3 through 6 of this ruling does not
include Government insured or guaranteed loans to the extent so insured or
guaranteed.
.03 The term “ the year of change” means the first taxable year ending after
December 31, 1964, or, in the case of a bank changing from the specific chargeoff method to the reserve method in a later year, the year in which the change is
made.
SEC. 9. BANKS ON SPECIFIC CHARGE-OFF METHOD.
Where a bank on the specific charge-off method of accounting for bad debts
desires to change to the reserve method, application to make such a change shall
be made in the manner prescribed by section 3 of Revenue Procedure 64-51,
C.B. 1964-2, 1003, but the amount of the reserve at the end of the year of change
and subsequent years shall be determined in accordance with the provisions of
this Revenue Ruling.
SEC. 10. EFFECTIVE DATE.
The provisions of this Revenue Ruling are applicable for taxable years ending
after December 31, 1964. . . .
1 Also released as Technical Information Release 707, dated Mar. 15, 1965.

STATE BANKING LEGISLATION— 1965
In 1965, the legislatures of 48 States held regular sessions and 20 held spe­
cial sessions. Some of the more important State banking legislation enacted
during 1965 is summarized below on a State-by-State basis.

A L A B A M A (R egu lar and th re e Special Sessions)
Definition of corporate status of production credit associations
and provision for method of taxation (same as imposed on
national banks) ____________________________________________
Authorization for any bank to pledge acceptable assets as
security for the deposits of public funds ____________________
Authorization for certain banks to establish branches ______




HB

153

HB
HB
HB

202
540
822

88

FEDERAL DEPOSIT INSURANCE CORPORATION

Enactment of Uniform Commercial Code ...

_________

Withdrawal of funds deposited through error or mistake made
unlawful ____________________________________________________
Reserve requirements ________ ___________________________

HB 1125
HB 1156
HB 59— XX
SB
608
SB 56— X
SB 57— X
SB 68— X
SB 99— X
Act
549
SB
2
Ch.
664
SB
36
SB
38

A L A S K A ( R e g u la r S e s s io n )
Authorization for banks to act as executors or administrators
of estates of less than $75,000 without giving bond ____________
Trustees and investments of mutual savings b a n k s _________
Exemption of State and national banks from the corporation
laws ____________________________________ ____ _______________

Ch.
HB
Ch.
HB
Ch.
HB

18
38
89
189
80
237

Ch.
SB
Ch.
SB
Ch.
SB

77
62
86
235
73
236

Act
SB
Act
SB
Act
HB
Act
HB
Act
HB
Act
HB
Act
HB
Act
HB

52
44
45
45
93
114
421
145
76
191
78
200
432
256
444
331

Ch.
AB
Ch.
AB
Ch.
AB

264
735
293
954
915
999

A R I Z O N A (R e g u la r S e s s io n )
Limitations and exemptions on disclosure of bank records ....
Permissible charges on instalment lo a n s ___________________
Bond and audit procedures in deposit of public m o n e y______
A R K A N S A S ( R e g u la r S e s s io n )
Establishment of reserve requirements for State banks ______
Authorization for a maximum rate of interest that may be paid
upon deposits by State banks _______________________________
Authority for certain banks to establish tellers’ w indow s_____
Issuance of pass book permissible rather than mandatory ....
Authorization to issue capital notes ________________________
Ownership of accounts and deposits_____________________ _
Requirements and responsibilities of Board of D ire cto rs_____
Receipt and payment of deposits of joint te n a n ts___________
C A L I F O R N IA ( R e g u la r S e s s io n )
Certain acts in re procuring a loan or extension of credit from
financial institutions declared a felony ________________________
Security for deposit of public fu n d s _________________________
Restriction on loans by credit unions (no loan in excess of
$1,000 without security) ______________________________________



STATE BANKING LEGISLATION— 1965
Dissolution of credit u n io ns_________________________________
Loan limitations of savings and loan associations____________
Fidelity bonding requirements of check sellers and cashiers ....
Real property loans of savings and loan associations________
Small loan interest c e ilin g s _________________________________
Investment of public pension and retirement fu n d s ___________
Bank loans _______________________________________________

Ch. 812
AB 1001
Ch. 1966
AB 1613
Ch. 870
AB 2006
Ch. 1837
AB 2938
Ch. 3240
AB 3240
ACA 57
Ch. 628
SB
291

C O L O R A D O (R e g u la r S e s s io n )
Chartering and regulation of industrial b a n k s _______________
Criminal penalties for no account and short c h e c k s _________
Enactment of Uniform Commercial C o d e _____________________
Investment in trust company stocks by State b a n k s _________
Reserves, loans and investments of State b a n k s_____________
State bank borrowing ______________________________________
Powers of Banking Board __________________________________
Regulation of debt adjusters________________________________

HB 1476
SB
13
SB
104
SB
216
SB 304
SB
305
SB
308
SB
318

C O N N E C T IC U T (R e g u la r S e s s io n )
Powers of State banks and trust companies ________________
Limitation of powers of State banks and trust com panies____
Amendment of Uniform Commercial Code __________________

PA
227
HB 2889
PA
200
HB 3495
PA
377
HB 4718

D E L A W A R E (R e g u la r S e s s io n )
Collection, payment and dishonor of demand items of banks
and trust companies _________________________________________

HB

27

HB
SB
SB
SB
SB
SB
SB

1299
46
63
415
138
432
474

SB

917

Act
HB
Act
SB

447
153
42
2

F L O R ID A ( R e g u la r S e s s io n )
Authorization for State banks to issue and sell capital notes
and debentures _____________________________________________
Director of banks and trust companies ______________________
Investments of banks and trust com panies__________________
“ Sale of Money Orders A ct” _______________________________
Banking business by unauthorized p e rso n s_________________
Enactment of Uniform Commercial Code ___________________
Memorial to U.S. Congress urging preservation of the dual
banking system ______________________________________________
G E O R G IA ( R e g u la r S e s s io n )
Reporting requirements for change in control of a b a n k ______
Sales of Checks A c t________________________________________




90

FEDERAL DEPOSIT INSURANCE CORPORATION

Authorization for State banks and trust companies to issue
capital notes and debentures _______________________________ SB
Application for banking charter, additional capital stock ____

Act
Act
SB
Act
SB

435
55
440
100
436
113

Act
SB
Act
SB

208
138
259
927

SB
SB

67
71

H A W A II (R e g u la r S e s s io n )
Enactment of Uniform Commercial C o d e ____________________
Capital requirements of banks ____________________________
ID A H O ( R e g u la r S e s s io n )
Authorization for banks to issue capital notes and
debentures __________________________________________________
Limitations on bank real estate lo a n s _______________________
IL L IN O IS ( R e g u la r S e s s io n )
Criminal usury _____________________________________________
Development Credit Corporation Act _______________________
Rate of interest on instalment lo a n s ________________________
Amendments to Uniform Commercial Code _________________
Bank’s liability for forged checks __________________________
Definition of consumer fraud _______________________________
Duties of Financial Institutions Department _________________
Amendments to Banking A c t ________________________________

HB 149
HB 964
HB 1136
SB 713
SB 716
SB 838
SB 1024
SB 1025

IN D IA N A ( R e g u la r S e s s io n )
Loans and investments of building and loan associations____ Act
Deposit of public funds of municipal co rp o ra tion s___________
Savings bank investments __________________________________
Amendments to Financial Institutions Act __________________
Definitions of common trust funds _________________________

35
HB 1195
HB 1369
HB 1467
SB 120
SB
290
SB 271

IO W A ( R e g u la r S e s s io n )
Enactment of Uniform Commercial Code ____________________

SB

227

HB
HB
HB
SB
SB
SB

631
845
897
4
276
278

HB
HB
HB
HB

309
499
620
816

K A N S A S (R e g u la r S e s s io n )
Public moneys— bonds and security given by depositories___
Rates of interest on deposits ______________________________
Interest and other charges on loans _______________________
Enactment of Uniform Commercial Code ____________________
Examination of banks and trust companies _________________
Capital notes and debentures in banks _____________________
M A IN E (R e g u la r S e s s io n )
Municipal investments, common trust funds ________________
Enactment of Model Joint Obligations Act _________________
Amendments to savings bank laws _________________________
Amendments to Uniform Commercial Code ________________



STATE BANKING LEGISLATION
Loans and interest defined _________________________________
Small loan agencies and companies _______________________
Amendments to banking la w s _______________________________

91
HB
SB
SB
SB

990
350
509
379

HB
SB

617
131

SB
SB

304
502

M A R Y L A N D ( R e g u la r S e s s io n )
Investments of building or homestead associations _________
Reports of banks and trust com panies______________________
Amendment of Uniform Commercial Code, destruction of
records _____________________________________________________
County investments of insured banking institutions _________
M A S S A C H U S E T T S ( R e g u la r S e s s io n )
Increases in limit of personal loans by savings b a n k s _______
Prohibition of unauthorized banking _______________________
Investments of savings banks ______________________________
Conversion of cooperative banks into Federal savings and
loan associations ____________________________________________
Authorization of trust companies to issue and sell capital
notes and debentures ________________________________________

HB 1251
HB 3306
HB 3481
HB 3576
SB

879

M IC H IG A N ( R e g u la r S e s s io n )
An Act to revise and codify the laws relating to financial
institutions ___________________________________________________
Charitable trusts, rules and regulations______________________
Home Improvement Finance Act ___________________________
Amendments to Uniform Securities Act ____ _______________
_

PA
21
HB 2140
PA 353
HB 2211
PA 332
HB 2360
PA 322
SB 553
PA 339
SB 644

M I N N E S O T A ( R e g u la r S e s s io n )
Enactment of Uniform Commercial Code ____________________
Investments of mutual savings banks _______________________
Receipt of deposits by insolvent banking institutions________
Bank organization and incorporation ....._____________________
Interest on deposits paid by banks and trust com panies_____
Sale and registration of se cu ritie s__________________________

HB 162
HB 327
HB 399
HB 506
HB 811
SB 1102

M IS S O U R I ( R e g u la r S e s s io n )
Rights and powers of banks _______________________________
Amendments to Uniform Commercial C o d e _________________

HB
SB
SB

466
241
324

SB

67

LB
LB
LB

4
52
283

M O N T A N A ( R e g u la r S e s s io n )
Branch banking, drive-in, walk-up facilities _________________
N E B R A S K A ( R e g u la r S e s s io n )
Disclosure of loan rates on sales c o n tra c ts_________________
Personal loans by banks and trust com panies_______________
Instalment Sales Act _______________________________________



92

FEDERAL DEPOSIT INSURANCE CORPORATION
Bank embezzlement and fraud _____________________________
Sale of Checks Act __________________________________

LB
LB

432
530

SB
SB

15
111

HB
HB
HB

147
278
432

AB
SB

187
102

HB
HB

147
360

N E V A D A ( R e g u la r S e s s io n )
Enactment of Uniform Commercial Code ___________________
Authorization of banks to sell capital notes and debentures ....
N E W H A M P S H IR E (R e g u la r S e s s io n )
Verification of savings accounts ___________________________
Amendments to Uniform Commercial Code _________________
Organization of savings banks ____________________________
N E W J E R S E Y (R e g u la r S e s s io n )
Capital stock and surplus of banks ________________________
Advertising of loan rates _________________________________
N E W M E X IC O (R e g u la r S e s s io n )
Authority of banks to sell capital notes and debentures_____
Rates of interest on lo a n s __________________________________
N E W Y O R K (R e g u la r S e s s io n )
Resolution calling for a general revision of the banking laws
Criminally usurious loans __________________________________
Amendments to Uniform Commercial Code _________________

AB 192
AB 5855
SB 2742

N O R T H C A R O L I N A (R e g u la r S e s s io n )
Enactment of Uniform Commercial Code ___________________

HB

218

SB
SB

60
196

SB

48

SB

1

N O R T H D A K O T A (R e g u la r S e s s io n )
Enactment of Uniform Commercial Code ___________________
Bank loan limitations _____________________________________
O H IO ( R e g u la r S e s s io n )
Amendments to Uniform Commercial Code _________________
O K L A H O M A ( R e g u la r S e s s io n )
Banking Code of 1965 (a general revision of the banking
laws) _______________________________________________________
O R E G O N (R e g u la r S e s s io n )
Real estate loans of banks and trust companies ______________ SB
Maximum interest rates on bank lo a n s ________________________ SB
Sale of Checks Act __________________________________________SB
Misrepresentation of financial condition _______________________SB

145
266
287
342

P E N N S Y L V A N I A (R e g u la r S e s s io n )
Licensing of money order and check sale businesses_______
Banking Code of 1965 ____________________________________

HB 1336
SB 665

R H O D E IS L A N D (R e g u la r S e s s io n )
Capital debentures of financial institutions _________________

HB 1648

S O U T H C A R O L I N A (R e g u la r S e s s io n )
Enactment of State Bank Holding Company A c t _____________



HB 1404

93

STATE BANKING LEGISLATION

T E N N E S S E E (R egu lar Session)
Authority to issue capital notes and debentures_____________
Licensing for selling checks and other instrum ents_________

SB
SB

148
646

SB

141

SB

46

HB

292

SB

122

HB

990

T E X A S (R eg u lar Session)
Enactment of Uniform Commercial Code ___________________

U T A H (R eg ular Session)
Enactment of Uniform Commercial C o d e ___________________

V E R M O N T (R eg ular Session)
Authority to issue capital notes and debentures_____________

W A S H IN G T O N (R egular Session)
Enactment of Uniform Commercial C o d e ___________________

W E S T V IR G IN IA (R eg u lar Session)
Authority to issue capital notes and debentures_____________

W IS C O N S IN (R egular Session)
Legislative study to determine need for branch banks
and bank holding companies ________________________________

SJR. 98

W Y O M IN G (R egular Session)
Real estate loans of State b a n k s __________________________ _




SB

18




BANKING DEVELOPMENTS




PART

THREE




97

SUPERVISORY STATUS OF BANKS

Banks operating in the United States at the end of 1965 consisted
of 13,818 commercial banks and 506 mutual savings banks. All
but 3 percent were covered by Federal deposit insurance, a protec­
tion available to all banks and trust companies incorporated in the
United States engaged in the business of receiving deposits.
Commercial banks and trust companies may be chartered, that
is, given authority to operate, by the Federal government or by the
respective State governments. Mutual savings banks may be char­
tered only by those State governments that have enabling legisla­
tion. Chartering authorities have general supervisory responsibili­
ties, such as presiding at both the inception and liquidation of a
bank as well as regulating certain activities and structural changes.
Federal participation in bank supervision comes not only through
deposit insurance and chartering, but also through bank member­
ship in the Federal Reserve System. Such membership is required
of Federally-chartered banks, but is optional for State-chartered
banks. About one-sixth of the banks having the option of Federal
Reserve membership currently exercise that option; these are
typically the larger banks.
These different avenues of regulatory involvement with banks
have led to an interwoven supervisory structure. The Comptroller
of the Currency, who charters national banks, examines and regu­
lates them; he also examines nonnational banks located in the
District of Columbia. The Federal Reserve Board exercises certain
authority over all member banks, such as that relating to legal re­
serve requirements and maximum interest rates payable on time
deposits. In addition, the Federal Reserve Banks examine State
banks that are members of the System, and require from them
periodic reports of condition. Both national banks and State banks
that are members of the Federal Reserve System are required to
be insured by the Federal Deposit Insurance Corporation; however,
the Corporation focuses its supervisory authority, including exam­
ination, call reports, and action on applications for mergers and
branches, upon those insured banks not members of the Federal
Reserve System.
The first full year of experience in a new area of Federal banking
supervision was completed in 1965 under terms of Public Law
88-593, which requires an insured bank to report to the appropriate
Federal banking authority any change in ownership in the bank’s
outstanding voting stock resulting in a change in the control of
the bank. During 1965 there were 409 changes in control reported
under these terms, almost two-thirds of them relating to banks
supervised by the Corporation. Most of the banks reporting changes



FEDERAL DEPOSIT INSURANCE CORPORATION

98

in control were relatively small, four-fifths of them having assets
of less than $10 million. Three-fourths of the changes occurred
in unit banking States. Under an allied requirement, 191 insured
banks reported loans in 1965 which were secured by 25 percent
or more of the stock of a bank. The underlying purpose of the
statute is to alert the Corporation to changes in control, thereby
enabling it to evaluate the new management.
This tripartite structure of Federal supervision of insured banks
is buttressed by State supervision of banks chartered by the indi­
vidual States and subject to the respective State regulations. Where
Federal controls impinge on State banks, as in the case of bank
examination and reporting requirements, cooperation between the
supervisory agencies has tended to minimize the burden on both
banks and supervisors. State-chartered banks that are not insured
by the Federal Deposit Insurance Corporation are examined or
TABLE 16. ALL BANKS IN THE UNITED STATES CLASSIFIED BY SUPERVISORY
STATUS AND FEDERAL DEPOSIT INSURANCE PARTICIPATION,
DECEMBER 31, 1965 1
Commercial banks
and nondeposit
trust companies 2

A ll banks
Supervisory status
Total

Insured

Non­
insured

Insured

Non­
insured

Mutual savings
banks
Insured

Non­
insured 3

N u m b e r of banks and tru s t
c o m p a n ie s —t o t a l..................

14,324

13,876

448

13,547

271

329

177

B an ks of d e p o s it........................

14,274

13,876

398

13,547

221

329

177

4,822

4,822

1,401

1,401

1,401

7,653
448

7,653

7,324

Examined by and reporting to: 4
Comptroller of the Currency 5 ..........
State authorities and Federal
Reserve Banks 6 ..............................
State authorities and Federal
Deposit Insurance Corporation 7..
State authorities only 8 .....................

T ru s t c o m p a n ie s not reg u ­
la rly engaged in d e p o sit
b ankin g * ...................................

4,822

329

448

50

50

221

177

50

P e rc e n ta g e in su re d and non­
in s u re d :
A ll banks and trust companies............
Banks of deposit....................................
Trust companies not regularly engaged
in deposit banking.............................

100 . 0 %
1 00.0
100.0

96.9%
97.2

3.1%
2 .8
100.0

98.0%
98.4

2 .0%
1.6

65.0%
65.0

35.0%
35.0

100.0

1 Includes the 50 States, District of Columbia, and other areas.
2 Includes all banks and trust companies, except mutual savings banks, engaged in the business of accepting deposits
from the public, and trust companies engaged in fiduciary business but not regularly engaged in deposit banking.
3 171 of these banks in Massachusetts were insured by the Mutual Savings Central Fund, Inc.
4 Classification relates to regular examination and periodic submission of reports of condition (assets and liabilities).
5 Includes all national banks and 7 nonnational banks in the District of Columbia; of the latter, 4 are members of the
Federal Reserve System.
6 Includes all State banks that are members of the Federal Reserve System except 4 commercial banks in the D istrict
of Columbia.
7 Includes all insured banks not members of the Federal Reserve System except 3 in the District of Columbia.
8 Includes 22 branches of foreign banks located in 3 States, Puerto Rico and the Virgin Islands. Also includes 66
unincorporated banks located in 7 States. Unincorporated banks in 3 of these States (Georgia, Iowa, and Texas) are not
examined by the State authorities, and do not submit detailed periodic condition reports to the State authorities. Financial
statements of 4 unincorporated banks were not available to the Corporation at the close of 1965.
9 Subject to supervision by State authorities only, except for 1 which is a member of the Federal Reserve System but
not insured by the Corporation. Excludes 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.




SUPERVISORY STATUS OF BANKS

99

otherwise supervised only by State authorities.
About one-half of the 14,324 banks operating on December 31,
1965 were supervised by the Federal Deposit Insurance Corpora­
tion and the respective State authorities; one-third by the Comptrol­
ler of the Currency; and about one-tenth by the Federal Reserve
Banks and the respective State authorities. The 448 noninsured
banks were subject to examination only by their respective State
authorities. Every bank is subject to examination and regulation
under Federal law or by the banking authority of the State, Terri­
tory, or District in which it is located.
The number of banks operating on December 31,1965, classified
by supervisory status, type of bank, and participation in Federal
deposit insurance, is shown in Table 16. Percentage distributions
of the number of banks and amount of assets held by banks
supervised by the different agencies are shown in Chart D.

NUMBER OF BANKING OFFICES

The number of banking offices in the United States increased by
1,231 in 1965, a somewhat slower growth than occurred in 1964.
Nearly all of the growth in number of offices during 1965, as in



100

FEDERAL DEPOSIT INSURANCE CORPORATION

other recent years, was in branches. Most were new branches, as
distinct from branches arising from mergers.
There were 30,958 banking offices in the United States on De­
cember 31, 1965, slightly over one-half of them branches of banks.
The total of offices includes offices of both commercial banks and
mutual savings banks. An analysis of the increases and decreases
in banking offices in 1965 is shown in Table 17.
TABLE 17. ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES IN
THE UNITED STATES DURING 1965 '
Type of office and change

Commercial
banks and
trust
companies2

Total

Mutual
savings
banks

ALL BANKING OFFICES
Number, December 31, 1965.......................................................................................

30,958

29,736

1,222

N e t change du rin g y e a r .......................................................................

+1,231

+1,190

+41

506

BANKS
Number, December 31, 1965...........................................

14,324

13,818

N e t change d u rin g y e a r .......................................................................

+43

+43

Banks beginning operations.....................................................................................
Banks ceasing operations.........................................................................................
Absorbed................................................................................................................
Suspended..............................................................................................................
Other liquidation...................................................................................................

202

199
156
147
9

159
149
9
1

3
3
2
1

BRANCHES3
Number, December 31, 1965.......................................................................................

16,634

15,918

716

N e t change du ring y e a r .......................................................................

+1,188

+1,147

+41

Branches beginning operations...............................................................................
Succeeded absorbed banks..................................................................................
Other new branches..............................................................................................
Branches discontinued.............................................................................................
Other or unclassified changes— n e t........................................................................

1,247
130
1,117
54
-5

1,203
128
1,075
52
-4

44
2

42
2
-1

1 Excludes changes not affecting number of banks or branches of commercial banks and trust companies or of mutual
savings banks.
2 Includes all banks and trust companies, except mutual savings banks, engaged in the business of accepting deposits
from the public, and trust companies engaged in fiduciary business but not regularly engaged in deposit banking.
3 Includes facilities established in or near m ilitary or other Federal Government installations at the request of the
Treasury Department or the Commanding Officer of the installation.

Back data: See Annual Reports for 1964, page 136; and for 1963, p. 60.

The number of banking offices is influenced both by supervising
authorities and business opportunities. Each State has controls
over the opening of new banks; and every State but one, Wyoming,
has statutes regulating branching. In about one-third of the States,
unit banking prevails; in another one-third, limited-area branching
is permitted; and in one-third, statewide branching is prevalent.
National banks are chartered by the Comptroller of the Currency,
and branches of national banks are opened in accordance with the
branching regulations of the respective States.
In each year from 1948 through 1962 there was a net decline in
the number of banks. This trend was sharply reversed in 1963 and



NUMBER OF BANKING OFFICES

101

1964 when the net increase in banks amounted to 141 and 189,
respectively. Growth continued in 1965, but at a slower pace, as the
net increase in operating banks slowed to 43.
The increase of 1,188 in the number of branches during 1965 was
slightly greater than the growth in 1964. This rise continued the
growth that has occurred in each year since 1933. From 1961 to
1965 there was a 38 percent increase in bank branches. During
this period branches of State banks grew 27 percent, while
branches of national banks increased 49 percent. At the end of
1965 slightly over one-half of all branches were branches of na­
tional banks, though such banks comprised but a third of all banks.
Numbers of banks and branches in 1961 and 1965, distributed by
class of bank, are shown in Chart E.

ASSETS AND LIABILITIES OF BANKS

Assets of all banks totaled $437 billion at the end of 1965. About
87 percent of total resources, or $379 billion, was held by commerical banks, and $58 billion by mutual savings banks.
The increase in bank assets during 1965 amounted to $34 billion,
or 8.6 percent, slightly less than the rate of growth in 1964, but
above the rate of any other year since World War II. Assets and



102

FEDERAL DEPOSIT INSURANCE CORPORATION

liabilities of all banks in 1961,1964 and 1965, along with percentage
changes, are shown in Table 18.
TABLE 18. AMOUNTS AND PERCENTAGE CHANGES IN ASSETS AND
LIABILITIES OF ALL BANKS IN THE UNITED STATES, DECEMBER 30, 1961,
DECEMBER 31, 1964 and 1965
Amount (in millions)

Percentage change

Asset or liability item
1964

1965

1961

1961-1965

A ss e ts —t o t a l................................

$437,119

$402,673

$322,336

Cash and funds due from banks___
U. S. Government obligations...........
Other securities..................................
Loans and discounts 1 .......................
Other assets........................................

62,060
65,158
50,459
248,104
11,338

61,644
68,921
44,362
217,658
10,088

57,487
72,822
29,719
154,843
7,466

8 .0

1 .0

-1 0 .5
69.8
60.2
51.9

-5 .5
13.7
14.0
12.4

L ia b ilitie s and c a p ita l a c ­
c o u n ts —t o t a l........................

437,119

402,673

322,336

35.6

8.6

Deposits—to ta l...................................
Other liabilities...................................
Capital accounts—to ta l......................

386,541
15,524
35,055

357,565
12,812
32,295

287,991
8,050
26,296

34.2
92.8
33.3

8 .1
21.2

Loans—gross to ta l 2..................

252,350

221,446

157,689

60.0

14.0

Commercial and industrial................
Agricultural (except real estate)___
For carrying securities.......................
Real estate loans................................
Other loans to individuals................
To financial institutions.....................
A ll other loans....................................

72,052
8,227
8,521
94,293
46,354
17,619
5,284

60,776
7,522
8,418
84,532
40,521
14,469
5,206

45,538
6,263
6,213
59,587
28,277
8,374
3,436

58.2
31.4
37.1
58.2
63.9
110.4
53.8

18.6
9.4

D e p o s its —t o ta l............................

386,541

357,565

287,991

34.2

8.1

Business and personal deposits:
Demand 3 ........................................
Tima and savings..........................

146,421
183,110

141,562
162,054

129,586
113,018

13.0
62.0

3.4
13.0

49.2
- 6 .6
15.3

13.2
-1 4 .3
3.9

Government deposits:
States and subdivisions................
United States..................................
Interbank deposits..............................

26,616
5,8444
2 4 ,5495

23,504
6,814
23,6316

17,843
6,254
21,2906

35.6%

1964-1965

8.6%

8.5

1.2

11.5
14.4
2 1 .8

1.5

1 Net of valuation reserves.
2 Includes valuation reserves.
3 Includes certified checks, letters of credit, etc.
4 Includes postal savings deposits.
5 Includes domestic and foreign interbank deposits, and deposits of foreign governments.
6 Includes postal savings deposits, domestic and foreign interbank deposits, and deposits of foreign governments.

Note: Due to rounding, components may not add to totals.

Growth in bank assets in 1965 was but one dimension of a flour­
ishing economy which at year-end was in the 58th consecutive
month of expansion. Output of goods and services during 1965 rose
to a record $681 billion. Employment was at a peak of 72 million,
while unemployment was the lowest since 1957. Both capital out­
lays and consumer expenditures reached new highs, placing
mounting pressure on capacity which itself expanded sharply
during the year.
Loans. In their role as the major supplier of credit, banks helped
to shape, and were themselves influenced by, these economic
developments. Total loans of all banks rose 14.0 percent during
the year, continuing the vigorous growth of this category of assets.
At year-end, loans comprised 56.8 percent of total assets, up from
48.0 percent in 1961.



ASSETS AND LIABILITIES OF BANKS

103

Commercial and industrial loans, long the major type of credit
supplied by banks, advanced 18.6 percent during 1965, more than
twice the average annual rate of expansion from 1961 to 1964. The
rapid growth in business loans, particularly since 1963, represented
in part a resurgence of commercial banks’ traditional role in such
financing, following a period when business concerns were meet­
ing a larger share of their financial needs from internal sources,
particularly depreciation allowances and retained profits. Though
such sources provided substantially more funds in 1965 than in
1964, they were not sufficient to meet the larger demands gen­
erated by the accelerated rate of economic expansion. Business
firms, therefore, have turned increasingly, and notably in 1965, to
banks and other suppliers of intermediate and longer-term business
credit.
Further penetration of the market for longer-term credit was
represented by the banks' 11.5 percent increase in total real estate
loans in 1965, notwithstanding a relatively sluggish year for resi­
dential construction. Indeed, this increase exceeded the 1965
percentage rise in outstanding mortgages held by savings and
loan associations, the primary lenders in this field. The nearly $10
billion increase in banks’ real estate loans was not, however,
wholly dependent on new residential construction, but represented
in considerable part refinancing of mortgages on existing resi­
dences along with a 14.1 percent advance in nonresidential real
estate loans.
Consumer loans extended by banks totaled $46 billion at the end
of 1965, up 14.4 percent during the year. Banks supplied about
half of the increase in total instalment credit during the year, main­
taining their dominance in this type of lending. They gave further
support to personal expenditures through their loans to nonbank
financial institutions; loans to sales finance companies and other
nonbank lenders increased over one-fifth in 1965 to a year-end
total of $13 billion.
Securities. The types of assets held by banks reflect in general
the kinds of debt instruments available and suitable for bank
ownership, tailored where feasible to considerations of yield. In
contrast to the five-fold advance in private debt since World War
II, public debt during this period increased only by one-third. Most
of this increase in public debt was in obligations of State and local
governments, which has risen even faster than private debt since
1945, as outlays for schools, utilities, roads and similar services
have exceeded rising State and local revenues and Federal grantsin-aid.
Though Federal government debt increased slightly in 1965, banks



104

FEDERAL DEPOSIT INSURANCE CORPORATION

reduced their holdings of Federal obligations a little over 5 percent,
putting the proceeds into more remunerative alternatives. Those
alternatives included, along with the pressing loan demands, the
growing obligations of State and local governments, whose taxexempt status continued to make them attractive. Banks increased
their holdings of “ municipal” obligations by $5 billion, or 14.9 per­
cent during 1965, absorbing almost one-half of total municipal bond
offerings during the year.
Deposits. Total deposits of all banks approached $387 billion on
December 31, 1965, an increase of 8.1 percent during the year.
Nearly $334 billion was in commercial banks and $53 billion in
mutual savings banks.
Continuing the trend of the last few years, most of the growth in
deposits in 1965 was in time (including savings) deposits. Such
deposits of business and individuals rose 13.0 percent during 1965,
accounting for nearly three-fourths of the expansion in deposit
volume. Demand deposits of business and individuals increased 3.4
percent during the year, about half as fast as in 1964. Chart F
shows annual changes in demand and time deposits of business
and individuals held by all banks from 1961 to 1965.




ASSETS AND LIABILITIES OF BANKS

105

Deposits are the main source of bank funds, and the expanding
role of banks in the credit markets reflects a renewed ability of
banks to compete for liquid balances. In the decade of the 1950’s,
banks lost deposits of interest-sensitive investors; large corpora­
tions and others tended to shift temporarily surplus funds out of
idle (and non-interest bearing) demand deposit balances into such
short-term instruments as Treasury bills and commercial paper,
while longer-term funds gravitated to institutions paying a higher
return, including savings and loan associations. Starting in 1957,
and accelerating since 1962, a series of liberalizing revisions has
increased the maximum rates that insured commerical banks may
pay on savings and time deposits. Banks have responded to the
opportunity by steadily increasing their rates and by developing
new instruments to retain and attract such deposits.
Time certificates of deposit (“ CD’s” ) have been the principal
medium for banks’ sharpened competitiveness in obtaining funds
for expansion. Such certificates evidence deposits with a bank
which bear a stated rate of interest and are payable on a specific
date or after a required period of notice, with maturities of not
less than 30 days and usually not more than one year after issu­
ance. In certain areas of the United States, time certificates have
been issued for many years, largely to individuals by relatively
small banks. Most of these were for relatively small amounts and
were typically nonmarketable. The new circumstances which have
made them a significant instrument since 1961 have been the
development of a secondary market which provides high liquidity
for negotiable CD’s, the increasingly attractive yields, and the
lower reserve requirements applicable to time deposits. Through
their use, banks have not only retained types of funds which
formerly escaped but have attracted funds from new sources. Their
broad appeal to business corporations, State and local govern­
ments, individuals, and other financial institutions had raised nego­
tiable CD’s to a total of $16 billion at the end of 1965.
Borrowed funds. As pressures impinged increasingly on their
liquidity positions during 1965, banks sought additional short-term
funds apart from deposits. The distinction between deposits and
certain types of borrowings has been confused somewhat by dif­
ferences in supervisory requirements. Notwithstanding their differ­
ences, deposits and borrowings have in common the function of
providing the short-term funds which were obtained in increasing
amount in 1965.
Between the end of 1964 and the end of 1965, borrowings of all
banks increased more than two-thirds to over $41 billion. There
/2
was somewhat heavier reliance than in 1964 on the discount win­



106

FEDERAL DEPOSIT INSURANCE CORPORATION

dow of Federal Reserve Banks, and even greater willingness to
borrow from other sources. One such source was “ Federal funds” ;
that is, reserve balances at Federal Reserve Banks that member
banks borrow and lend to each other, typically for one-day periods,
to adjust reserve positions. Call report information, obtained sep­
arately for Federal funds for the first time, showed they totaled
nearly $21 billion at the end of 1965. Other borrowing instruments
/2
used considerably in 1965 were promissory notes and repurchase
agreements.
Capital funds. Total capital and surplus accounts of all banks
exceeded $35 billion on December 31, 1965, an increase of 8.5
percent during the year. Over $30 billion was held in commercial
banks and nearly $5 billion in mutual savings banks.
Total capital and surplus accounts increased $2,760 million in
1965. Over 55 percent of the growth came from retained earnings,
and nearly one-fourth from common stock. Again, as in 1964,
capital accounts were strengthened substantially by the sale of
capital notes and debentures. In the two years ended December
31, 1965, capital notes and debentures of all banks increased from
$168 million to $1,701 million. This increase of $1,533 million, while
representing fewer than 200 issues, comprised 30 percent of the
growth in total capital and surplus accounts of all banks during
the period. The greater resort to use of borrowed capital has been
stimulated generally by tax advantages and the possibility, through
greater leverage, of increased earnings.
The ratio of total capital and surplus accounts to total assets of
all banks was 8.0 percent at the end of 1965, the same as a year
earlier.
INCOME OF INSURED BANKS
Insured commercial banks. Total income of insured commercial
banks amounted to $17.2 billion in 1965, a gain of 12.4 percent from
1964. The advance was due primarily to an increase in loan income
of almost 15 percent. Income from U. S. Government securities
declined slightly while income from “ other” securities, including
mainly obligations of States and subdivisions, rose 18.5 percent.
Sizable gains occurred also in service charges on deposit ac­
counts, trust department earnings, and in other current operating
revenues. Recoveries, transfers from valuation reserves, and profits
on securities sold were likewise greater than in 1964. Sources and
disposition of income of insured commercial banks in 1961, 1964
and 1965 are shown in Table 19.
The results in 1965 followed in part certain existing trends evi­
dent in Chart G, which shows percentage changes in income from



107

INCOME OF INSURED BANKS

TABLE 19. SOURCES AND DISPOSITION OF TOTAL INCOME OF INSURED
COMMERCIAL BANKS, 1961, 1964, AND 1965
Amount
(in millions)

Income
1965

T o tal in c o m e .................................

1964

Percentage distribution
1961

1965

1964

1961

100.0%

100.0%

100.0%

$17,208

$15,347

$11,778

11,205
2,225
1,285
843
1,260
390

9,785
2,240
1,085
781
1,132
322

7,009
1,902
629
630
900
708

65.1
13.0
7.5
4.9
7.3
2.3

63.8
14.6
7.1
5.1
7.3

59.5
16.2
5.3
5.4
7.6

2.1

6 .0

4,365
5,071
3,051
1,178
1,029

4,082
4,088
2,727
1,017
1,148
1,088
1,195

3,336
2,107
1,998
935
1,406
895

25.4
29.5
17.7

26.6
26.6
17.8

28.3
17.9
17.0
7.9
11.9
7.6
9.4

S ources
Loans....................................................
U. S. Government obligations..........
Other securities..................................
Service charges on deposits.............
Other current income........................
Recoveries, etc.....................................

D isposition
Salaries and wages.............................
Interest on deposits..........................
Other current expenses.....................
Charge-offs, etc...................................
Income taxes......................................
Dividends to stockholders................
Additions to capital accounts...........

1,202

1,312

1,101

6 .8
6 .0

7.0
7.6

6 .6

7.5
7.1
7.8

Note: Due to rounding, components may not add to totals.

1961 to 1965. Income on securities other than U. S. Government
obligations experienced the greatest percentage growth, more than
doubling between 1961 and 1965. Loan income, which advanced
60 percent in the four years, accounted for almost four-fifths of
the increase in total income.
CHART G

INTEREST PAID ON DEPOSITS BY INSURED COMMERCIAL BANKS
INCREASED 141 PERCENT BETWEEN 1961 AND 1965
PERCENTAGE CHANGE:
SOURCES OF INCOME
LOANS
U.S. GOVERNMENT OBLIGATIONS
OTHER SECURITIES

1961 to 1965
i
W /M ///////M
u
W /////M /////////////////////////M

SERVICE CHARGES ON DEPOSIT ACCOUNTS

m m

OTHER CURRENT OPERATING INCOME

W ////////M

RECOVERIES

DISPOSITION OF INCOME
SALARIES AND WAGES

m m

INTEREST ON DEPOSITS
OTHER CURRENT OPERATING EXPENSES

W /////////////M

CHARGE-OFF, ETC.
INCOME TAXES
DIVIDENDS TO STOCKHOLDERS
ADDITIONS TO CAPITAL ACCOUNTS




m m

FEDERAL DEPOSIT INSURANCE CORPORATION

108

Income from loans, totaling $11.2 billion in 1965, comprised
slightly over 65 percent of insured commercial banks’ total income
as compared to less than 60 percent in 1961. At the same time,
income from U. S. Government securities declined from 16.2 per­
cent to 13.0 percent, while income from other securities rose from
5.3 to 7.5 percent of the total.
Growth in loan income has reflected principally the expansion
of loan volume associated with the sustained uptrend of the econ­
omy, and greater diversification of credit outlets. Rising costs of
operation have been responsible in part for some shifting in recent
years in commercial bank loans and investments in the direction
of higher yielding, less liquid assets, such as mortgages and taxexempt securities. In turn, banks have acquired funds in part by
liquidation of U. S. Government securities, which generally yield
a lower return. Although funds moving into new loans and invest­
ments have brought generally higher rates, the average rates of
return in 1965 on total portfolios were only slightly greater than in
1964.
Increases in operating expenses in 1965, as in other recent
years, consumed most of the growth in current operating revenues.
Rapidly rising interest payments on deposits have been responsible
TABLE 20. OPERATING DATA OF INSURED COMMERCIAL BANKS,
1950, 1955, 1961-1965 1
Item

1950

1955

1961

1962

1963

1964

1965

Current operating revenue per $100 of
total assets..........................................

$2.36

$3.03

$3.98

$4.13

$4.32

$4.36

$4.49

Net current operating earnings per $100
of total assets.....................................

.89

1.15

1.31

1.23

1.22

1 .20

1.16

Income on loans per $100 of loans..........

3.90

4.47

5.61

5.51

5.55

5.60

5.59

Income on U. S. Government obligations
per $100 of U. S. Government o b li­
gations. ...............................................

1.66

2.18

2.87

3.17

3.45

3.58

3.76

Income on other securities per $100 of
other securities..................................

1.87

2.14

2 .6 6

2.62

2.65

2.82

2.89

Current operating expense per $100 of
current operating revenue................

62.15

62.00

67.12

70.24

71.79

72.47

74.21

Salaries, wages, fees, and benefits per
$100 of current operating revenue..

31.19

30.28

30.93

29.86

28.88

27.83

25.94

Interest on time and savings deposits
per $100 of current operating
revenue................................................

8.73

10.67

19.00

23.28

25.63

27.25

30.16

Interest paid per $100 of time and
savings deposits.................................

.94

1.35

2.54

2.90

3.09

3.21

3.44

Net current operating earnings per $100
of total capital accounts....................

13.22

16.09

16.40

15.33

15.06

15.18

14.54

Net income after taxes per $100 of total
capital accounts..................................

8.32

7.69

9.02

8.47

8.56

8.41

8.45

1 Data relate to banks operating thoughout each of the respective years.




INCOME OF INSURED BANKS

109

TABLE 21. INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES
AND OTHER AREAS) WHICH REPORTED RESERVES FOR BAD DEBT
LOSSES ON LOANS PURSUANT TO INTERNAL REVENUE SERVICE
RULINGS, AND AMOUNT OF SUCH RESERVES,
DECEMBER 31, 1961-1965
1964

1965

1963

1962

1961

N u m b e r of banks using res e rve m ethod

C la s s of bank
In su re d c o m m e rc ia l b a nks—to ta l

10,014

8,615

8,270

7,948

7,660

National banks............................................
State banks:
Members of FRS.....................................
Not members of FRS..............................

3,830

3,382

3,201

3,049

2,970

1,112

1,013
4,220

1,022

4,047

1,040
3,859

1,045
3,645

5,072

P e rc e n ta g e of banks using reserve m ethod
In s u re d c o m m e rc ia l b a nks—to ta l
National banks...........................................
State banks:
Members of FRS.....................................
Not members of FRS..............................

74%

64%

62%

61%

58%

80

71

69

68

66

79
69

70
58

68

67
55

65
52

56

A m o u n t of reserves (in th o u s an d s ) 1
$3,354,202

$3,007,517

$2,699,666

$2,402,327

2,346,133

1,903,619

1,676,023

1,498,405

1,331,851

1,015,256
474,422

1,032,641
417,942

960,413
371,081

875,151
326,110

781,167
289,309

In su red c o m m e rc ia l banks—to tal 53,835,811
National banks............................................
State banks:
Members of FRS.....................................
Not members of FRS..............................

1
Reserves set up in accordance with Internal Revenue Service rulings comprise the major portion of valuation
reserves for loans; the latter totaled $4,011,273,000 on December 31, 1965.

for much of the recent increase in operating expenses, having
nearly doubled between 1961 and 1964, and increased a further
24.0 percent in 1965. This upward trend of interest payments re­
flects both the expanding volume of time and savings deposits
and escalating increases in rates permitted by higher ceilings
and prompted by growing competition for funds. In 1965 interest
payments again, as in 1964, exceeded salaries and wages as the
largest category of expenses, notwithstanding a 6.9 percent in­
crease in total employee compensation during the year.
Net current operating earnings of $4.3 billion were 4.9 percent
greater than in 1964. As a proportion of total current operating
revenue, however, they continued to decline, falling in 1965 to
25.8 percent. Net earnings represented a return of 1.16 percent on
total assets, the lowest since 1955. Selected operating ratios of
insured commercial banks in 1965 and other recent years are
shown in Table 20.
Federal income tax liability declined in 1965 to its lowest level
since 1959, reflecting among other factors the rising proportion
of before-tax income received from tax-exempt securities, the
reduction in tax rates enacted in 1964, and, effective in 1965,
upward adjustments in loss reserves permitted under revised
Treasury regulations. Additions to reserves for losses on loans were
$159 million greater in 1965 than in 1964. There was an appreciable
increase also in the number of banks reporting reserves for bad



FEDERAL DEPOSIT INSURANCE CORPORATION

110

debt losses on loans, pursuant to Internal Revenue Service rulings,
as indicated in Table 21.
Net income after related taxes was a record $2.5 billion, 10.1
percent greater than in 1964. This represented a return of 8.45
percent on total capital accounts, about the same as in the preced­
ing three years. The proportion of net income paid to stockholders,
47.8 percent, was barely changed from 1964.
Insured mutual savings banks. Total income of insured mutual
savings banks amounted to $2.5 billion in 1965, 8.7 percent higher
than in 1964. Income from loans, which comprises approximately
four-fifths of the total income of insured mutual savings banks, rose
12.4 percent during the year. The share of income from U. S. Gov­
ernment obligations declined slightly from 1964, while small in­
creases occurred in income from other securities, and in other
current income.
The proportion of loan income to total income increased from
71 percent in 1961 to nearly 81 percent in 1965, as shown in Table
22. Mortgage loans comprised 98 percent of loans held by insured
mutual savings banks. Growth in volume of mortgage loans rather
than higher average rates earned on them accounted primarily for
the increase in loan income; the increase from 5.25 percent in
1964 to 5.27 percent in 1965 in the average rate of return on
mortgage loans was somewhat less than the rises of other recent
years.
TABLE 22. SOURCES AND DISPOSITION OF TOTAL INCOME OF INSURED
MUTUAL SAVINGS BANKS, 1961, 1964 AND 1965
Amount (in millions)

Percentage distribution

Income
1965

T o tal in c o m e ......................................................

1964

1961

$2,467

$2,270

$1,709

1965

1964

1961

100.0%

100.0%

100.0%

80.8

78.1

6 .0
8 .6
2 .2

6 .8

71.0
8.9

9.1

12.0

2 .2

2.4

3.8

2.5
5.6

Sources
Loans............................................................................
U. S. Government obligations..................................
Other securities..........................................................
Other current income.................................................
Recoveries, etc............................................................

1,993
148
211

55
60

1,772
153
207
50
87

1,213
152
206
42
96

168
136
1,654
.75
26

142
118
1,148
98
16
187

D isposition
Salaries and wages....................................................
Other current expenses............................................
Dividends and interest on deposits.........................
Charge-offs, etc...........................................................
Income taxes...............................................................
Additions to surplus accounts..................................

177
150
1,809
78
30
223

211

7.2

7.4

6.1

6 .0

73.3
3.2

72.9
3.3

8.3
6.9
67.2
5.7

1 .2

1.1

1 .0

9.0

9.3

10.9

Note: Due to rounding, components may not add to totals.

Mutual savings banks distribute most of their income in the form
of dividends or interest. The proportion has been gradually rising,
amounting to 73.3 percent in 1965 compared with 67.2 percent in
1961. In responding to market conditions, the banks continued to



INCOME OF INSURED BANKS

111

raise the rates paid on deposits. The average dividend on savings
and time deposits increased from 3.57 percent in 1961 to 4.15
percent in 1965. While this rate continued to be significantly higher
than the average rate paid by insured commercial banks— 3.44 per­
cent in 1965— a narrowing of the gap in the last few years has
sharpened the competition among various institutions for savingstype deposits.
Salaries and wages, and other current expenses of mutual sav­
ings banks, have also continued to rise, although not as rapidly as
dividend payments. After expenses and taxes, $223 million re­
mained for transfer to surplus in 1965, an amount 5.8 percent
higher than in 1964.







STATISTICS OF BANKS
AND DEPOSIT INSURANCE




PART

FOUR

1
14

NUMBER, OFFICES, AND DEPOSITS OF BANKS
Table 101.

Table 103.

Number and deposits of all banks in the United States (States and other
areas), December 31, 1965




Branches include all offices of a bank other than its head office,
at which deposits are received, checks paid, or money lent. Bank­
ing facilities separate from a banking house, banking facilities at
government establishments, offices, agencies, paying or receiving
stations, drive-in facilities and other facilities operated for limited
purposes are defined as branches under the Federal Deposit Insur­
ance Act, Section 3(o), regardless of the fact that in certain States,
including several which prohibit the operation of branches, such
limited facilities are not considered branches within the meaning
of State law.

CORPORATION

Tabulations for all banks are prepared in accordance with an
agreement among the Federal bank supervisory agencies. Provision
of deposit facilities for the general public is the chief criterion for
distinguishing between banks and other types of financial institu­
tions. However, trust companies engaged in general fiduciary busi­
ness though not in deposit banking are included; and credit unions
and savings and loan associations are excluded except in the case
of a few which accept deposits under the terms of special charters.

INSURANCE

B a n k s g r o u p e d a c c o r d in g to in s u ra n c e s ta tu s a n d b y d is t r ic t a n d S ta te

DEPOSIT

G r o u p e d a c c o r d in g to in s u ra n c e s ta tu s a n d c la s s o f b a n k , a n d b y S ta te
o r a re a a n d ty p e o f o ffic e

FEDERAL

Table 102.

Changes in number and classification of banks and branches in the United
States (States and other areas) during 1965
Number of banking offices in the United States (States and other areas),
December 31, 1965

DEPOSITS
O BANKS
F
115




Mutual 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:
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
authorized 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 en­
gaged in deposit banking or fiduciary activities;
Federal Reserve Banks and other banks, such as the Federal
Home Loan Banks and the Savings and Loan Bank of the State of
New York, which operate as rediscount banks and do not accept
deposits except from financial institutions;
The postal savings system.

NUMBER, OFFICES, AN
D

Commercial banks include the following categories of banking
institutions:
National banks;
Incorporated State banks, trust companies, and bank and trust
companies, regularly engaged in the business of receiving deposits,
whether demand or time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New
Hampshire;
Industrial and Morris Plan banks which operate under general
banking codes, or are specifically authorized by law to accept
deposits and in practice do so, or the obligations of which are
regarded as deposits for deposit insurance;
Special types of banks of deposit: cash depositories in South
Carolina; a cooperative exchange in Arkansas; a savings and loan
company operating under Superior Court charter in Georgia; gov­
ernment 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; a sav­
ings institution, known as a “trust company,” operating under
special charter in Texas; an employes’ mutual banking association
in Pennsylvania; the Savings Banks Trust Company in New York;
and branches of foreign banks engaged in a general deposit busi­
ness in New York, Oregon, Washington, Puerto Rico, and Virgin
Islands.
Private banks under State supervision, and such other private
banks as are reported by reliable unofficial sources to be engaged
in deposit banking.
Nondeposit trust companies include institutions operating under
trust company charters which are not regularly engaged in deposit
banking but are engaged in fiduciary business other than that inci­
dental to real estate title or investment activities.

TABLE 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1965
Commercial banks and nondeposit trust companies
Insured

116

All banks

Mutual savings banks

Noninsured

Type of change
Total

In­
Non­
sured insured

Members F. R.
System

Total
Total

State

In­
sured

Non­
Banks
deposit Total
of
trust
de­
com­
posit
panies1

Non­
insured

FEDERAL

Na­
tional

Not
mem­
bers
F. R.
Sys­
tem

ALL BANKING OFFICES
30,306
29,072

652
655

29,736
28,546

29,393
28,196

13,801
12,954

4,738
4,759

10,854
10,483

278
288

65
62

1,222
1,181

913
876

309
305

Net change during y e a r..........................................................

+1,231

+1,234

-3

+1,190

+1,197

+847

-2 1

+371

-1 0

+3

+41

+37

+4

Offices opened......................................................................

1,454

1,420

34

Banks.................................................
Branches....................................................................

1,407

1,385

751

225

409

19

3

47

35

12

202

184
1,236

18
16

199
1,208

182
1,203

88

4

663

221

90
319

14
5

3

1,252

3
44

33

223

208

15

216

205

96

30

79

11

159
64

146
62

13

156
60

145
60

62
34

19

64
15

11

2

Offices closed................................

Banks.......................................
Branches.................................

. .

-2 2

i

— 18
—4

—1

14,324
14,281

13,876
13,820

448
461

13,818
13,775

+43

+56

—13

202

184

18

201
1

184

159
9
149

Among banks..........................
Among branches..................................

3

7

! 17

+192

—216

+17

+ 16
+176

—31
-1 8 5

+32
+9

4,815
4,773

1,405
1,451

7,327
7,269

221
235

50
47

+43

+54

+42

—46

+58

—14

_i_3

199

182

88

4

90

14

3

17

198

182

88

4

90

13

3

1

1

146

13

156

145

62

5

4

9

5

2

141

8
1

147

140

60

2

— 17

13,547
13,493

3
1

4

—18

+1

+5

1

11

4
2
2

—4
—1

+1

_1

- 1-1
+4

506
506

329
327

177
179

4-2
1^

_2

3

2

1

3

2

1

3

1

2

2

1

1
1

__3

BANKS
N um ber of banks, December 31, 1965...........................
N um ber of banks, December 3 1 ,1 9 6 4
Net change during y e a r...................................................
Banks beginning operation............................................

New banks.........................................
Suspended bank reopened......................
Banks ceasing operation.................................

Closed because of financial difficulties3..
Absorptions, consolidations, and mergers (without
FDIC aid).........................................
Other liquidations.............................
Noninsured banks becoming in sured...............

Admission to insurance, operating banks. .




1

1

19

64

11

3

19

4

61

7

1

+17

—17

+16

+16

—16

-1
-1

+17

-1 7

+ 16

+16

— 16

+1

_1

1

CORPORATION

4-22
+18
+4

Changes in classification

11

2

INSURANCE

30,958
29,727

DEPOSIT

Num ber of offices, December 31, 19652............................
Num ber of offices, December 31, 19642............................

+1
+1

Other changes in classification...................

National banks succeeding State banks.
State banks succeeding national banks..
Admission to F. R. System........................
Withdrawal from F. R. System.................
Changes not involving number in any class:

+1
+1

+16
+23
-7

-3 1

-10

+1
-22
1

+16

-12

-1
-1

+7

-1
+22

1

141

136

140

135

3
4

3
3

3
4

3
3

67
5
3
3

4
43

3
43

4
43

3
43

3
43

1
2

1
2

1
2

1
2

BRANCHES
Num ber of branches, December 3 1 ,1 9 6 5 2
Num ber of branches, December 31, 1 9 6 4 2.

16,634
15,446

204
194

15,918
14,771

15,846
14,703

8,986
8,181

3,333
3,308

3,527
3,214

57
53

Net change during y e a r.................................

+1,188

+10

+1,147

+1,143

+805

+25

+313

Branches opened for business......................................

1,252

16

1,208

1,203

Facilities provided as agents of the governmentfi.
Absorbed banks converted to branches................
Branches replacing head offices relocated............
Other branches opened 7..........................................
Branches added to count8.......................................

21
2

319

5
130
13
1,099
5

5
128
13
1,057
5

5
128
13
1,054
3

26

30

194

277

Facilities6...................................
Other branches7......................
Branches deleted from count8.

64

+6

33

1
1

......

" '4 2 '

"31

2
2
+1

+9
-5

+5

+1
1
+3

+4
,+ r

-1
-1

+1

+3

-2

BANKS

-11

1
0
80
373

70

372

368

368

21
0
117

1 Includes one trust company member of the Federal Reserve System.
2 Includes a few seasonal offices which were not in operation December 31.
3 Includes one noninsured bank which suspended, and subsequently entered voluntary liquidation.
4 Noninsured private (unincorporated) bank succeeded by noninsured State bank.
5 Information available only for insured banks not members of Federal Reserve System.
6 Facilities established in or near military or other Federal Government installations at request of the Treasury Department or the commanding officer of the installation.
7 Excludes opening and closing of seasonal offices (except those newly established or permanently discontinued in 1965).
8 Changes occurred prior to 1965, but were not recognized in count as of December 31,1964.




......

O
F

Changes in operating powers of branches.............
Branches transferred through absorption, consoli­
dation or merger....................................................
Changes in title, location, or name of location.......

-185
-1 6 6

-1
-3

+35

44

3

+ 171

+3

+41

5

1
2

+176

+1

+4

15

6

+4

132
126

2

23
5

Branches changing class as result of conversion. . .
Branches of insured banks withdrawing from F. R.
System.....................................................................
Branch of noninsured bank admitted to insurance.
Branches transferred through absorption, consoli­
dation or merger....................................................

584
549

8

34

6

Other changes in classification (n e t )..........................

Changes not involving number in any class:

1

2

716
675

DEPOSITS

Branches discontinued................

3
72
5
583

15
15

NUMBER, OFFICES, AND

Succession 4...................................................
Change in title................................................
Change in location.......................................
Change in title and location.........................
Change in name of location........................
Change in corporate powers:
Converted to commercial banks.............
Granted trust powers5................................

-1
-1

TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965

M u tu a l s a v in g s b a n k s

C o m m e rc ia l b a n k s and n o n d e p o s it t r u s t c o m p a n ie s

A ll b a n k s

S ta te a n d ty p e o f b a n k o r o ffic e
M e m b e rs F. R.
Sysltern

T ota l
T o ta l

N a­
tio n a l

S ta te

45
5

259
247

152
177

107
70

97.1
97.4

98.1
99.4

58.7
71.7

15

716

584

132

98.9

99.6

81.6

24
5

6
5
50
Is

1,220
505

91
1
328

98.2
97.3

99.1
98.4

74.7
65.0

5

259
246

152
176

39
0
w

97.2
97.5

98.1
99.5

58.7
71.5

15

715

583

2

2

1

13,776
4,814

4,738
1,405

10,723
7,320

10,596
3,207

10,354
3,185

3,426
1,388

953
452

5,975
1,345

187

15,753

15,698

8,962

3,333

3,403

40

2
4
7

10
8
15

16
5

2
5

8

1

11
3
7
1
6
124

2
4
7

10,601
3,207

10,355
3,192

204

15,918

15,846

50 States and D. C.— all offices
B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s .....................................

30,776
14,308

30,148
13,867

6
28
441

29,556
13,803

10,855
3,453

10,506
3,361

349
92

16,468

16,281

1
82
16
5
11
166

18
5
9
i
8
149

1

3
17

7

10
165

148

1
24

W

197
17

4

107
70

99.0

99.7

81.5

86.7
53.3

100.0

1

86.8
56.3

16.6
77.8

100 .0
100.0

132

3

1

1

16.6
80.0

17

1

1

89.8

89.7

100.0

100.0

State
Alabama— all offices
Banks

Unit banks
Banks operating branches
B ra n c h e s
Alaska— all offices
B a n ks

Unit banks
Banks operating branches
B ra n c h e s
Arizona— all offices
B a n ks

Unit banks
Banks operating branches
B ra n c h
e s


4
26
263

4
26
263

46
2
263

46
2
263

24
1

216

216

216

216

1ft

47
163

47
163

47
163

57
29

163

86

128

19
7
153

100.0
100.0

100.0

19

140

5
9

10 0 .0
100 .0

100 .0
100 .0

26

100.0

100.0

97.0
85.7

96.9
83.3

100.0

66.7

50.0

100.0

1 0 0 .0

100 .0

3
3
24

13

6
7
14
6
8
53

6
5

2

6
5

6
3

12

2

12

10

5
0
5

4
8
53

2

4
8
53

2
8
53

1
3
5
2

5
45

27
6
17

9

26
7
18
8
10
258

27
6
17
8
9
250

2

2

2

2

2

2

2

2

3

26
7
18
8
10
258

2

1

8

9

1

250

8

100.0

8

9

100.0

100.0

100.0

13
8
4
1

1
8

6
6

1

12

1

100.0

100.0

3

1
17

7
5

1

1 0 0 .0
1 0 0 .0

100.0
100 .0

54

8

100.0

100.0

179

100.0

CORPORATION

29,237
13,539

353
95

16,430

INSURANCE

201
20
57

3,527

10,507
3,369

221

DEPOSIT

74.7
65.0

5,976
1,351

10,860

B ra n c h e s

99.1
98.4

953
452

13,801
4,815

Com ­
m e rc ia l M u tu a l
b a n k s sa vin g s
of
b a n ks
d e p o s it

98.1
97.2

3,333

29,393
13,547

A ll
banks
of
de­
p o s it

39
0
177

8,986

29,736
13,818

T o ta l

N on­
in s u re d

93
1
329

3,426
1,389

6
52
448

In ­
s u re d

1,222
506

28
7

30,306
13,876

Unit banks
Banks operating branches

Non­
d e p o s it
tru s t
com ­
p a n ie s 3
6
5
50

10,854
7,327

30,958
14,324

Other areas— all offices
Banks

B anks
of
de­
p o s it 2

4,738
1,405

United States— all offices.......
B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s .....................................

s ,m
16,634

Not
m em ­
b e rs
F. R.
S ys­
te m

FEDERAL

T o ta l

N on­
in s u re d

P e rc e n ta g e in s u r e d 1

N o n in s u re d

In s u re d

In ­
s u re d

118

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

Arkansas—all offices.. .
Banks..........................
Unit banks.......................
Banks operating branches.

Branches.....................
California—all offices...
Banks..........................
Unit banks.......................
Banks operating branches.

Branches.....................

Unit banks.......................
Banks operating branches.

2,623
199
95
104
2,424

2,612
193
91

354
246
183
63
108

350
242
179
63
108

250
243
7

11
6

102

4
2

2,419

5

218
210

40
40
40

350
242
179
63
108

192
158
131
27
34

2,623
199
95
104
2,424

2,612
193
91

2,49
1

280
83
35
48
197

258
250
243
7

218
210

78
76

377
64
23

102

74

1
1
1

99.2
98.8
98.4
100.0
100.0

99.2
98.8
98.4
100.0
100.0

11
6
4
2
5

3
3
3

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

84.5
84.0
83.5
100.0
100.0

84.5
84.0
83.5
100.0
100.0

40
40
40

Branches.....................
Connecticut—all offices
Banks..........................
Unit banks.......................
Banks operating branches.

Branches.....................
Delaware—all offices
Banks...........................

555
139
60
79
416

551
135
56
79
416

381
68
27
313

95

95

22
11

22

85
20

41

99.2
95.5
88.5
100.0
100.0

100.0
100.0
100.0
100.0
100.0

85
20

10
2

10
2

2
8

2
8

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

99.6
99.5
99.5
100.0
100.0

99.6
99.5
99.5
100.0
100.0

93.3
90.2
88.3
100.0
100.0

93.3
90.2
88.3
100.0
100.0

100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

4
1

11
11

11

11

11

Branches.....................

73

73

9
65

9
65

D. C.—all offices............
Banks...........................

103
15

103
15

103
15

103
15

14

14

1
14

14

Florida—all offices........
Banks...........................

461
443

Unit banks.......................
Banks operating branches.

426

17
18

458
440
423
17
18

Georgia—all offices.......
Banks...........................

625
429
360
69
196

583
387
318
69
196

Hawaii—all offices.........
Banks...........................

128

12

Unit banks.......................
Banks operating branches.

4
8

Branches.....................

116

Unit banks.......................
Banks operating branches.

Unit banks.......................
Banks operating branches.

Branches.....................

Branches.....................

Unit banks.......................
Banks operating branches.

Branches.....................




1

1

461
443

1
243
237
231

17
18

458
440
423
17
18

625
429
360
69
196

583
387
318
69
196

357
316
279
37
41

122

128

122

7

12

7

78
5

7

4
8

7

115

116

115

426

42
42

2
2
2

1
1
1

6

6

5
73

42
42
42

6
5
4
1
1

119

99.5
97.8
94.9
100.0
100.0

1
1
1

O BANKS
F

174
71
33
38
103

3
3
3

DEPOSITS

313

174
71
33
38
103

NUMBER, OFFICES, A D
N

Colorado—all offices__
Banks..........................

354
246
183
63
108

TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1965— CONTINUED
120

G R O U P E D A C C O R D IN G TO IN S U R A N C E ST A TU S A N D C LASS O F B A N K , A N D B Y S T A T E OR A R E A A N D T Y P E O F O FFIC E
A ll b a n k s

C o m m e rc ia l b a n k s and n o n d e p o s it t r u s t c o m p a n ie s

In s u re d

M u tu a l s a v in g s b a n k s

N o n in s u re d

S ta te a n d ty p e o f b a n k o r o ffic e
Non­
in s u re d

M e m b e rs F. R.
S ystem

T o ta l
T o ta l

N a­
tio n a l

S ta te

Not
m em ­
b e rs
F. R.
S ys­
te m

Banks
of
de­
p o s it 2

Non­
d e p o s it
tr u s t
com ­
p a n ie s 3

In ­
s u re d

T o ta l

N on­
in s u re d

A ll
banks
of
de­
p o s it

Com ­
m e rc ia l M u tu a l
b a n k s savings
of
banks
d e p o s it

152

152

152

104

30

18

25
12

25
12

25
12

25
12

9

7
4

9

100.0

100.0

3

5

13

13

13

13

3

127

127

4
9

100 .0
100 0

100.0
100 0

100.0

100.0

Illinois—all offices...................

1,056

1,049

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

1,051

1,044

1,0^7

1,040
4

Indiana—all offices.................

897

893

4

893

889

379

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

426

422

418

254
168

4
4

422

258
168

254
168

250
168

471

471

471

471

257

58

156

Iowa*— offices......................
all

908

894

908

894

129

79

686

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s .....................................

673

659

14

673

659

101

62

496

489
184

475
184

14

489
184

475
184

75
26

47
15

235

235

353
143

235

235

28

17

190

Kansas—all offices..................

648

645

648

645

195

48

402

B a n k s .............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

599

596

3

599

596

170

552
47

549
47

3

549
47

147
23

41
34

49

552
47

49

49

49

25

7

17

Kentucky—all offices..............

578

572

6

578

572

198

52

322

B a n k s .............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

346
244

340

6

346

340

81

14

245

6

98.3

98.3

6

244
102

238
102

6
8

192
53

232

232

232

97.5
100 0

97.5
100 0

232

40
41

6

102

238
102

38

77

100.0

100.0

127

111

6
95

1,056

1,049

422

7

1,051

112

515

3

1,047

1,044
1,0 40
4

417

7

413

112

515

3

7

4
5

5

14

3

5

23

112

515

3

4

99.7

4

99.7

99.7

3

122

88

208

3

59
63

60
28

131
77

3

7

1

4

1

4

4

1

4

4

100.0

99.7

4

1 0 0 .0

100.0

364

99.7

100 0

146

99.7

99.7

4

4
5

117

100.0

DEPOSIT




4
5

100.0

99.7

99.3

99.3

100.0

100.0

98.8

98.8

100 0

100 0

100.0

100.0

1

98.6

98.6

13

1

98.1

13

1

97.3

97.3

100 0

100 0

13

98.1

100.0

100.0

3

99.5

99.5

385

3

99.5

99.5

368
17

3

99.5
100.0

99.5
100 0

100.0

100.0

99.0

99.0

6

100.0

CORPORATION

152

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

INSURANCE

Idaho—all offices.....................

FEDERAL

In ­
s u re d

T o ta l

P e rc e n ta g e in s u r e d 1

1
1

Maine—all offices......................
B a n k s ........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s ..................................

264
76
36
40
188

244
65
28
37
179

Maryland—all offices...............
B a n k s........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s..................................

558
128
62

_
Massachusetts—all offices_
B a n k s ........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s4................................

1,066
340
148
192
726

591

Michigan—all offices................
B a n k s .........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s ..................................

1,247
354
176
178
893

1,243
352
175
177
891

4
2

Minnesota—all offices..............
B a n k s ........................................
Unit banks....................................
Banks operating branches.............
B ra n c h e s ..................................

733
723
717

728
718
712

6

6

10

Mississippi—all offices............
B a n ks ........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s..................................

417
196
98
98
221

Missouri—all offices.................
B a n ks.........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s..................................

718
655
592
63
63

707
644
581
63
63

11
11

Montana—all offices.................
B a n ks........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s..................................

134
131
128
3
3

132
129
126
3
3

2
2




66

430

462
214
130
84
248

461
213
129
84
248

178
47
17
30
131

247
156
109
47
91

1
1

20
11

219
44

93
21

54
12

14
5

8

11

6

33
175

1
11

2

3
9

205
39
9
30
166

551
127
62
65
424

7
1

516
122
61
61
394

509
121
61
60
388

242
50

755
164
44

311
176

153
17

72
135

721
156
42
114
J565

415
93
27

120

729
161
45
116
568

66

2

1,247
354
176
178
893

1,243
352
175
177
891

495
97
41
56
398

5
5
5

732
722
716

727
717
711

199
193
191

6

6

2

10

10

J !L -

417
196
98
98
221

417
196
98
98
221

417
196
98
98
221

105
37

718
655
592
63
63

707
644
581
63
63

116
96
76
20

495
467
439
28
28

134
131
128
3
3

132
129
126
3
3

52
50
48

37
37
37

1

1

6

104

1
1

11

2

100.0

7
1

42
6

42
6

98.7
99.2

98.6
99.2

100.0

1

1

100.0

100.0

1

5
36

5
36

98.5
98.6

98.4
98.5

100.0
100.0

6
4
3

2
1

303
171

1

2
6

101

1

2

1

337
179
103
76
158

34
8

17
136

153
46
15
31
107

71.0
48.4
29.7
62.8
81.5

99.2
97.5
64.3
58.4
99.6

120
59
61
339

289
135
75
60
154

3
1

1
1

99.7

99.8
99.7

1

1 00.0

100.0

99.4
99. f

99.4
99. f

500
496
492
4
4

5
5
5

99.3
99.3
99.3

99.3
99.3
99.3

100.0

100.0

100.0

100.0

100.0

100.0
100.0

7

1

53

28
28

10

27
68

6

26

1

2
1
1

141

1
1

1

294
153
87

2

88.6
81.8
90.1
94.9

207
64
38
26
143

6

2

100.0

92.4
85.5
77.8
92.5
95.2

3
9

42

22

20

100.0

100.0
39
26
19
7
13

28
192

6

99.8
99.5
99.2

45
32
25
7
13

15
72

322

99.8
99.5
99.2

1

1

6
6
6

70
132

100.0
100.0
100.0

8

3
3
3

1
1

1
1

1

1

100.0

98.9
98.9
98.6
100.0

100.0

100.0

8
8

100.0

100.0

66

100.0

99.2
99.2
99.2

99.2
99.2
99.2

100.0

100.0

100.0

100.0

100.0

98.1
98.1

86.7
81.3
76.0
100.0

100.0
100.0

100.0
10.1
4.5
1.9
7.9
16.5

100.0
100.0
100.0

O BANKS
F

461
213
129
84
248

DEPOSITS

462
214
130
84
248

NUMBER, OFFICES, A D
N

Louisiana—all offices...............
B a n k s ........................................
Unit banks....................................
Banks operating branches.............
B ra n ch e s ..................................

122

TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1965— CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks

Commercial banks and nondeposit trust companies
Insured
Members F. R.
System

Total
Total

Na­
tional

Nevada— all offices...........
Banks.............................
Unit banks..............................
Banks operating branches.......
Branches........................

72
9
3

410

m

464
436

458
430

410

404

26
28
72
9
3

72
9
3

144
126
109
17
18

Non­
insured

All
banks
of
de­
posit

Com­
mercial Mutual
banks savings
of
banks
deposit

99.8
99.8
99.8

300
291

100.0

100.0

100.0

1

100.0

100.0
100.0

37
3

100.0
100.0
100.0

6

100.0

100.0

63

100.0

100.0
97.0
95.9

100.0

9 4.2
1 0 0 .0

100.0
100.0

142
106
76

New Jersey— all offices.......
Banks.............................
Unit banks..............................
Banks operating branches.......
Branches........................

957
254

New Mexico— all offices....
Banks.............................
Unit banks..............................
Banks operating branches.......
Branches.........................

159
64
25
39
95

New York— all offices........
Banks.............................
Unit banks..............................
Banks operating branches.......
Branches4.......................

2,633
470
219
251
2,163

S
O
36

86

168
703

139
103
73
30
36

101

954
251
83
168
703

906
233
76
157
673

159
64

159
64

95
442
196

2^6

2,157

74
51
32
19
23

23
19
16
3
4

97.9
97.2
96.1
100.0

100.0

100.0

100.0

903
230
73
157
673

572
147

109
36

100.0
100.0

100.0
100.0

100.0
100.0

*“
*159
64
25
39
95
2,242
316
151
165
1,926

74
52
27

95
2,276
344
174

170
1,932

47

47
13

100
425

34

100.0
100.0

175

100.0

87
34
15
19
53

14
8

100.0
100.0

4
4

1,160
198
105
93
962

943
83

1
3

10
0 .0
10
0 .0

100.0

100.0
100.0

100.0

35
17
18
104

81
231

357
126
45
81
231

100.0

100.0
357
126

100.0

100.0
100.0
100.0

100.0

100.0

6

100.0

100.0

95.1
91.6
98.0
99.7

98.7
93.2
8 9.3
9 7.1

99.7

100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0

100.0

CORPORATION

100.0

6

63

New Hampshire— all offices
Banks.............................
Unit banks..............................
Banks operating branches.......
Branches........................




458
430

In­
sured

INSURANCE

464
436

Non­
Banks
deposit Total
of
trust
de­
com­
posit2 panies3

DEPOSIT

Nebraska— all offices........
Banks.............................
Unit banks..............................
Banks operating branches.......
Branches........................

State

Not
mem­
bers
F. R.
Sys­
tem

FEDERAL

In­
Non­
sured insured

Percentage insured

Noninsured

State and type of bank or office
Total

Mutual savings banks

North Carolina—all offices_
_

883

878

5

883

878

292

B a n k s ............................................

146

145

1

146

145

30

Banks operating branches.............

64
82

64
81

64
81

9
21

1

64
82

102
4

/

3

484

5

111

1

99.3

99.3

57

1

100.0
98.8

100.0
98.8

99.4

54

B r a n c h e s ......................................

737

733

4

737

733

262

373

4

North Dakota—all offices........

218

212

6

218

"111

49

156

5

B a n k s ............................................
Unit banks....................................
Banks operating branches.............

169

163

6

169

163

42

117

134
35

128
35

6

134
35

128
35

36
6

90
27

49

49

49

49

7

39

1,491

1,490

B a n k s ............................................
Unit banks....................................

99.5

99.5

1

97.7

97.7

5

1

97.0

97.0

5

1

96.2
100.0

96.2
100.0

100.0

100.0

1,490

1

1,489

741

427

99.9

99.9

543

542

1

542

541

224

128

189

1

1

1

99.8

99.8

100.0

307
236

306
236

1

306
236

305
236

99
125

79
49

127
62

1

1

1

99.7
100.0

99.7
100.0

100.0

948

948

517

299

132

1

459

458

253
111
193
29

26

179

321

1

1

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

948

948

Oklahoma—all offices..............

459

458

B a n k s ............................................
Unit banks....................................

421

420

1

421

420

385
36

384
36

1

385
36

384
36

38

38

38

38

31

Oregon—all offices....................

317

314

3

316

313

222

15

76

3

33

2

1

1

n

2

1

1

1

B ra n c h e s

B a n k s ............................................
Unit banks....................................
B ra n c h e s 4

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

Pennsylvania—all offices

Rhode Island—all offices

100.0

100.0
100.0

100.0

100.0

99.4

99.4

1

96.1

96.0

100.0

1

92.0
100.0

100.0

19

92.3
100.0

43

100.0

100.0

2

1

1

1

100.0

49

3

51

48

12

24
25

3

26
25

23
25

7

5

265

265

265

265

210

2
1
1
2

1,880

1,867

13

1,809

1,796

1,164

238

394

3

71

71

99.5

99.4

568

10

571

561

373

44

144

7

3

7

7

98.8

98.8

100.0

8
2

343
228

335
226

224

23

56

5
2

3

234

336
232

1
6

1
6

98.5
99.1

98.5
99.1

1,302

1,299

3

100.0
100.0

1,238

184

175

9

136

578
344

2
1

8
8

10

100.0

1,235

149
791

194

250

3

64

64

99.8

99.8

100.0

127

58

26

43

9

48

48

95.1

93.4

100.0

2

7

7

88.9

81.8

100.0

"7

7

7

88.9

81.8

100.0

39

2
1

41

41

95.8

94.4

100.0

181

4

99.0

99.0

18

16

2

11

9

4

1

18

16

2

11

9

4

I

166

159

7

125

399

395

4

399

395

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

129

125

4

129

68
61

64
61

4

68
61

125
64

270

270

246

245

* 118

61

54

25

205

9

4

25

5

95

4

96.9

5
20

3

56

4

9 4 .I
100.0

100.0

100.0

100.0

99.6

99.6

96.9
94.1

270

270
irtwfri

180

1

246

245

70

31

144

25

111

1

99.4

99.4

87

1

99.3
100.0

99.3
100.0

100.0

100.0

170

169

1

170

169

33

137
33

136
33

1

137
33

136
33

27
6

76

76

76

76

37

1

123




100.0

100.0
100.0

52

South Carolina—all offices_
_

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

1

1

27
25

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s ......................................

South Dakota—all offices

174

169

O BANKS
F

B a n k s ............................................
Unit banks....................................
Banks operating branches.............
B r a n c h e s 4...................................

100.0

100.0

DEPOSITS

Banks operating branches

24

100.0

100.0

1

100.0

NUMBER, OFFICES, A D
N

Ohio—all offices.........................

99.4

1
24

TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1965— CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks

Commercial banks and nondeposit trust companies
Insured
Members F. R.
System

Total
Total

Na­
tional

State

Not
mem­
bers
F. R.
Sys­
tem

Non­
Banks
deposit Total
of
trust
de­
com­
posit2 panies3

622

5

627

622

281

294

4

33

308

4

298

298

294

76

9

209

3

Unit banks....................................
Banks operating branches.............

Branches...............................

192
106

189
105

328

3
1
1

192
106

189
105

329

25
51

4
5

329

328

205

24

160
49

99

2
1
1

Texas—all offices.......................

1,194

1,182

12

1,194

1,182

565

76

541

All
banks
of
de­
posit

12

1
1
1

99.4

99.0
99.0
99.1

99.7

Com­
mercial Mutual
banks savings
banks
of
deposit

99.4
99.0
99.0
99.1
99.7

Banks.....................................

1,142

1,130

12

1,142

1,130

545

72

513

12

98.9

Unit banks....................................
Banks operating branches.............

1,089
53

1,077
53

12

485
28

9 8.9

99.0
98.9
98.9

52

524
21

12

52

1,077
53

68
4

Branches...............................

1,089
53

20

4

28

100.0

100.0

52

Utah—all offices........................

165

165

165

71

43

51

INSURANCE

627

Banks.....................................

Non­
insured

DEPOSIT

Tennessee—all offices.............

In­
sured

52
165

100.0
100.0
100.0

Banks.....................................

56

56

56

56

13

13

30

100.0
100.0

Unit banks....................................
Banks operating branches.............

36
20

36
20

9
4

109

109

109

36
20

6
7

21
9

100.0

Branches...............................

36
20

100.0

109

58

30

21

100.0
100.0

100.0

100.0

Vermont—all offices.................

113

112

105

104

58

48

47

27

20

1

27
21

26
21

15
12

11
9

1

1

Banks.....................................

54

53

1

Unit banks....................................
Banks operating branches.............

31
23

30
23

1

Branches...............................

1

8

8

6

6

4

2

4
2

2

46

2

100.0
100.0

100.0
100.0

100.0

100.0

100.0

100.0
100.0

100.0
100.0

100.0
100.0

100.0

59

59

57

57

31

820

820

Banks.....................................

820

820

454

262

262

262

262

118

57

87

Unit banks....................................
Banks operating branches.............

129
133

129
133

558

129
133

50
68

35
22

44

558

129
133

100.0
100.0
100.0

43

100.0

100.0

Washington—all offices...........

533

532

Banks.....................................

104

Unit banks....................................
Banks operating branches.............

59
45

429

429

100.0

Virginia—all offices...................

Branches...............................

Branches4..............................




26
152

214

558

558

336

95

127

1

509

378

37

93

103

1

508

100

99

31

10

58

1

58
45

1

58
42

57
42
JBSL

15
16

5
5

37
21

1

347

27

35

409

100.0

100.0
100.0

100.0

100.0

24

24

99.8
99.0

1

3

9 8 .3
100.0

99.8
99.0
98.3

100.0
100.0

1
3

100.0

20

1

100.0

100.0

100.0

20

4

1

4

100.0

100.0

CORPORATION

100.0

FEDERAL

Total

Non­
insured

Percentage insured1

Noninsured

State and type of bank or office
In­
sured

Mutual savings banks

187

186

187

Banks..............................

187

186

99.5

99.5

187

186

187

186

99.5

99.5

Unit banks............................
Banks operating branches

187

186

99.5

99.5

West Virginia—all offices

186

Branches........................
754

751

751

Banks..........................

584

Unit banks.......................
Banks operating branches

477
107

581
474

581
474

107

Branches.....................

170

Wisconsin—all offices..

Wyoming—all o ffices...

Banks...........................
Branches.....................

134

549

99.9

99.9

578

110

416

99.8

99.8

100.0

170

329
87

170

170

99.8
100.0

24

133

100.0

99.8
100.0

100.0

107

97
13

70

70

70

70

40

16

100.0

69

69

69

69

39

16

100.0

38

16

100.0

100.0
100.0
100.0

100.0

100.0

68
1
1

6
8
1
1

6
8
1
1

6
8
1
1

1
1

100.0

100.0

100.0

NUMBER, OFFICES, A D
N

Unit banks.......................
Banks operating branches.

748
471
107

100.0

Other a rea
Pacific Islands—all offices5

30.8

30.8

33.3

Banks................................

33.3

93.5

93.5

Unit banks6............................
Banks operating branches.......

Branches7........................
Panama Canal Z o n e all offices......................

Banks...........................
Unit banks.......................
Banks operating branches.
Puerto Rico—all offices

Banks...........................
Unit banks.........................
Banks operating branches. .

Branches9...................

Banks..............................
Unit banks............................
Banks operating branches. . . .

Branches10......................

155

145

130

7

8

8

1
6

7

3

144

144

138

1
2

1
0

7

4

3

1
1
3

/

3

1
1

1
2
7

1

1
6
123

63.6

63.6

33.3
75.0

33.3
75.0

95.8

95.8

75.0

70.0

50.0

33.3

100.0

100.0
85.7

100.0
100.0
100.0

87.5

100.0

100.0




125

1 Nondeposit trust companies are excluded in computing these percentages.
2 Includes 10 noninsured branches of insured banks; 8 branches in the Pacific Islands and 2 in the Panama Canal Zone.
3 Includes one trust company in Massachusetts, member of the F.R. System, operatingone branch.
4 Includes the following branches of banks located in other States or in Puerto Rico: 1 noninsured branch in Massachusetts and 1 in Pennsylvania of a noninsured bank in New York; 6 insured branches in New
York of 2 insured banks in Puerto Rico not members of the F. R System; 1 insured branch in Pennsylvania of a national bank in New Jersey; 1 insured branch in Oregon and 2 in Washington of a national bank in
.
California.
5 United States possessions (American Samoa, Guam, Midway Islands, and Wake Island); Trust Territories (Kwajalein, Palau Islands, Ponape Island, Saipan, and Truk Atoll).
6 American Samoa.
7 Consists of the following branches of a national bank in California: 1 noninsured in Caroline Islands, Truk Atoll (Moen Island) and 4 in the Mariana Islands (3 insured on Guam and 1 noninsured on Saipan);
also 7 branches of an insured bank in Hawaii, not a member of the F. R System, consisting of 1 insured branch on Guam and 6 noninsured branches; 2 in Caroline Islands, Palau Islands (Koror) and Ponape Island
.
(Kolonia); 2 in Marshall Islands, Kwajalein Atoll; 1 in Midway Islands, Sand Island; and 1 on Wake Island.
8Two noninsured branches of two national banks in New York.
9 Includes 15 insured branches of two national banks in New York.
1 Includes 4 insured branches of a national bank in New York.
0
Back figures: See the Annual Report for 1964, pp. 160-167, and earlier reports.

O BANKS
F

Virgin Islands—all offices.

155

DEPOSITS

Branches8...................

Table 103. NUMBER AND DEPOSITS OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND BY DISTRICT AND STATE

C o m m e rc ia l b a n k s a n d
n o n d e p o s it t r u s t c o m p a n ie s
FD IC D is tr ic t a n d S ta te

14,324

In ­
s u re d

13,818

13,547

221

50

2 3
3
4
5

214

15

8

7

733
761

406
611
1,113
861
1,331
1,545
1,357
1.724
1,192
1,775
1,438
465

386
574

17
29

8

1,102

8

3

854
1,286
1,520
1,348
1 703
U78
1,725
1,424
447

7
44

6

7
9
10
11
124

177

505

328

177

1

327
150

150
150

8
6

8
6

7

7

1

1,121

8

329

506

867
1,331
1,545
1,364
1,724
1|193
1,775
1,438
472

20

5
16
12

50

3

5
4
5
2
6
1
12

6

1

1

7

7

2

2

71

71

2

44
13

2

Non­
in s u re d 2

T o ta l

In s u re d

386,540,654

333,779,458

331,512,681

2,266,777

52,761,196

45,887,291

6,873,905

385,165,892

332,405,396

330,292,482

2,112,914

52,760,496

45,886,591

6,873,905

1,374,762
177

In s u re d

1,374,062

1,220,199

153,863

700

700

28,534,724
110,330,967
38,878,807
19,449,095
17,619,242
18,973,907
27,535,992
30,011,783
9,754,885
12,899,862
25,266,910
47,284,480

13,882,684
77,439,375
35,674,272
18,726,162
17,619,242
18,973,907
27,430,037
30,011,783
9,286,429
12,899,862
25,266,910
46,568,795

13,672,865
76,119,646
35,641,232
18,510,086
17,579,627
18,935,003
27,400,466
29,933,889
9,168,369
12,868,993
25,223,098
46,459,407

209,819
1,319,729
33,040
216,076
39,615
38,904
29,571
77,894
118,060
30,869
43,812
109,388

14,652,040
32,891,592
3,204,535
722,933

7,778,135
32,891,592
3,204,535
722,933

3,235,941
355,533
2,105,124
2,046,227
35,341,253

3,235,941
338,449
2,105,124
2,046,227
35,341,253

3,235,941
332,631
2,096,061
2,042,865
35,341,253

5,818
9,063
3,362

2,897,785
7,100,440
1,206,776
2,280,630
7,710,154

2,897,785
3,392,507
971,143
2,280,630
7,710,154

2,870,104
3,376,856
971,143
2,280,630
7,686,166

27,681
15,651

4,612,943
1,006,557
896,840
25,509,730
6,998,739

4,612,943
1,006,557
896,840
25,509,730
6,923,808

4,597,316
987,634
896,840
25,456,055
6,921,163

15,627
18,923

105,955

105,955

468,456

468,456

715,685

715,685

17,084

17,084

3,707,933
235,633

3,707,933
235,633

74,931

74,931

State
A la b a m a
A la s k a
A riz o n a
A rk a n s a s
C a lifo rn ia

263
14
18
246
199

C o lo ra d o
C o n n e c tic u t
D e la w a re
D is tr ic t o f C o lu m b ia
F lo rid a

250
139

G eorgia
H a w aii
Id a h o
Illin o is
FRASER
In d ia n a

Digitized for


263

263

12

10

18
246
199

17
242
193

250

210

68
20

64

22

15
443

15
443

15
440

429

429

387
7
25
1,044
418

12

12

25
1,051
426

25
1,051
422

2

3

40
3

1
1
6

1

20
2

1

42
5
3
3

4
1

4

4

Non­
in s u re d

T o ta l

23,988

53,675
2,645

6,873,905

CORPORATION

13,539

N on­
in ­
s u re d

INSURANCE

D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t

13,803

In ­
s u re d

T o ta l

DEPOSIT

FDIC District
D is tr ic t 1 ....................................

14,308
16

50 States and D. C...............

A ll
banks

1

Non­
B a n k s d e p o s it
o f de­ tru s t
p o s it
com ­
p a n ie s

M u tu a l s a v in g s b a n k s

FEDERAL

T o ta l

C o m m e rc ia l b a n k s a n d
n o n d e p o s it t r u s t c o m p a n ie s

M u tu a l s a v in g s b a n k s

N o n in s u re d 1

A ll
banks 1

126

D e p o s its (in th o u s a n d s o f d o lla rs )

N u m b e r o f banks

Iowa.........
Kansas...
Kentucky.
Louisiana.
Maine......

673
599
346
214
76

673
599
346
214
44

659
596
340
213
39

Maryland..........
Massachusetts.
Michigan...........
Minnesota.........
Mississippi........

128
340
354
723
196

122
161
354
722
196

121
156
352
717
196

Missouri..............
Montana..............
Nebraska............
Nevada...............
New Hampshire.

655
131
436
9
106

655
131
436
9
74

644
129
430
9
71

New Jersey....
New Mexico__
New York5.......
North Carolina.
North Dakota..

254
64
470
146
169

233
64
344
146
169

230
64
316
145
163

Ohio................
Oklahoma......
Oregon...........
Pennsylvania.
Rhode Island.

543
421
52
578
18

542
421
51
571

4,477,834
3,365,409
3,440,141
4,339,568
817,345

24,219
2,446
10,021
858
29,081

4,348,524
15,703,124
14,127,902
6,518,502
2.060.204

3,625,591
7,229,385
14,127,902
6,050,046
2.060.204

3,468,794
7,121,419
14,102,094
6.044.961
2,060,204

156,797
107,966
25,808
5,085

8.416.347
1.118.348
2,280,603
697,963
1,432,683

8.416.347
1.118.348
2,280,603
697,963
586,438

8,401,548
1,117,704
2,280,228
697,963
573,949

14,799
644
375
12,489

12,049,814
945,214
95,779,095
4,483,903
1,059,065

10,002,492
945,214
65,171,158
4,483,903
1,059,065

10,001,055
945,214
63,965,332
4,438,708
947,461

1,437

2,047,322

2,047,322

1,205,826
45,195
111,604

30,607,937

30,607,937

15,723,810
3.799.204
3,031,549
23,154,997
2,066,837

15,721,496
3.799.204
2,964,541
19,952,776
1,258,110

15,719,482
3,798,837
2,953,602
19,921,750
1,213,478

2,014
367
10,939
31,026
44,632

2,314

2,314

1
1

541
420
48
561
9

67,008
3,202,221
808,727

67,008
3,202,221
808,727

129
170
298
1,142
56

129
170
298
1,142
56

125
169
294
1,130
56

1,468,979
1,058,970
5,061,171
17,876,146
1,418,439

1,468,979
1,058,970
5,061,171
17,876,146
1,418,439

1,465,345
1,058,243
5,050,449
17,842,255
1,418,439

3,634
727
10,722
33,891

54
262
104
187
584
69

48
262

47
262
99
186
578
69

765,554
5,062,996
4,456,866
1,804,063
6,409,351
554,415

569,818
5,062,996
3,825,273
1,804,063
6,378,327
554,415

569,818
5,062,996
3.792.962
1,793,613
6,377,209
554,415

50,049
29,431
1,214,269
81,013

50,049
29,431
1,214,269
80,313

38,083

100

179

126

171

126

619,660

566,405

53,255

722,933
8,473,739

722,933
1,653,089

6,820,650

468,456

468,456

846,245

846,245

195,736
32,311
10,450
1,118

195,736

• 631,593

631,593

31,024

31,024

700

700

Other area

Pacific Islands8..........
Panama Canal Zone7.
Puerto Rico8...............
Virgin Islands9............

1,107,554
74,562

11,966
29,431
106,715
5,751

Digitized for


127

1 Includes 7 noninsured banks (1 in Illinois, 2 in Iowa, 1 in Nebraska, 1 in North Dakota, and 2 in Texas) for which data are not available.
2 Includes figures for 16 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York.
3 Includes Puerto Rico and the Virgin Islands.
4 Includes Alaska, Hawaii, Pacific Islands, and the Panama Canal Zone.
5 Includes deposit data for 6 insured branches operated by 2 insured banks in Puerto Rico. See also footnote 2.
6 In United States possessions (American Samoa, Guam, Midway Islands, and Wake Island) and Trust Territories (Kwajalein, Palau Islands, Ponape Island, Saipan, and Truk Atoll). Consists of deposit data for 1
noninsured bank in American Samoa and 5 branches of an insured bank in California, 1 noninsured in Caroline Islands, Truk Atoll (Moen Island) and 4 in the Mariana Islands (3 insured on Guam and 1 noninsured on
Saipan). Also, 7 branches of an insured bank in Hawaii, consisting of 1 insured branch on Guam and 6 noninsured branches: 2 in Caroline Islands, Palau Islands (Koror) and Ponape Island (Kolonia); 2 in Marshall
Islands, Kwajalein Atoll; 1 in Midway Islands, Sand Island; and 1 on Wake Island.
7 Consists of deposit data for 2 noninsured branches operated by 2 insured banks in New York.
8 Includes deposit data for 15 insured branches operated by 2 insured banks in New York.
9 Includes deposit data for 4 insured branches operated by an insured bank in New York.
Note: Data
the branches
footnotes 6,7, 8,
FRASER forSee the Annualdescribed in1964, pp. 168-169, and 9 are not included in the figures for the States in which the parent banks are located.
Back figures:
Report for
and earlier reports.

O BANKS
F

187
581
69

6

DEPOSITS

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

4,502,053
3,367,855
3,450,162
4,340,426
846,426

NUMBER, OFFICES, A D
N

South Carolina.
South Dakota..
Tennessee.......
Texas...............
Utah.................

4,502,053
3,367,855
3,450,162
4,340,426
1,466,086

ASSETS AND LIABILITIES OF BANKS
Table 104.

Table 105.
Table 106.
Table 107.
Table 108.
Table 109.

Table 110.

Table 111.
Table 112.




Assets and liabilities of all banks in the United States (States and other
areas), June 30,1965
Banks grouped according to insurance status and type of bank
Assets and liabilities of all banks in the United States (States and other
areas), December 31, 1965
Banks grouped according to insurance status and type of bank
Assets and liabilities of all banks in the United States (States and other
areas), December 31, 1965
Banks grouped by district and State
Assets and liabilities of all insured banks in the United States (States and
other areas), June and December call dates, 1962 through 1965
Assets and liabilities of insured commercial and insured mutual savings
banks in the United States (States and other areas), December and June
call dates, 1963 through 1965
Average assets and liabilities and assets and liabilities per $100 of total
assets of insured commercial banks in the United States (States and other
areas), 1965
By class of bank
Assets and liabilities and assets and liabilities per $100 of total assets of
insured commercial banks operating throughout 1965 in the United States
(States and other areas), December 31, 1965
Banks grouped according to amount of deposits
Average assets and liabilities of insured commercial banks in the United
States (States and other areas), by State, 1965
Distribution of insured commercial banks in the United States (States and
other areas), December 31, 1965
Banks grouped according to amount of deposits and by ratios of selected
items to assets

LIABILITIES
O BANKS
F

Sources of data
National banks and State banks in the District of Columbia not
members of the Federal Reserve System: Office of the Comptroller
of the Currency.
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.
Noninsured banks: State banking authorities; and reports from
individual banks.

AN
D
129




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 immedi­
ately reduce the unpaid balances of the loan but are assigned or
pledged to assure repayment at maturity.
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.
Additional data on assets and liabilities of all banks as of June
30, 1965, and December 31, 1965, are shown in the Corporation’s
semiannual publication, “ Assets, Liabilities, and Capital Accounts,
Commercial and Mutual Savings Banks,” Report of Call No. 72, and
Report of Call No. 74. Data from Call No. 71, April 26, 1965, and
Call No. 73, October 13, 1965, were not tabulated for all insured
banks. Comparable tabulations for State and national banks were
not feasible because of a change in the form used for national
institutions.

ASSETS

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 pre­
mium reserves.
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 de­
partment. 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.” Branches out­
side the 50 States of insured banks in the United States are treated
as separate entities but as in the case of other branches are not
included in the count of banks. Data for such branches are not
included in the figures for the States in which the parent banks are
located.
Demand balances with and demand deposits due to banks in the
United States, except private banks and American branches of for­
eign banks, exclude reciprocal interbank deposits. Reciprocal inter­
bank deposits arise when two banks maintain deposit accounts with
each other.
Individual loan items are reported gross instead of net of valua­
tion reserves. Accordingly, reserves for losses on loans are shown
separately.

Table 104. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1965
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in thousands of dollars)

130

Commercial banks and nondeposit trust
companies

All banks

Mutual savings banks

Noninsured
Asset, liability, or capital account item
Banks of
deposit1

Non­
deposit
trust
com­
panies2

352,795,164

3,023,731

57,221,034

56,667,724

495,141
36,091
49,781
34,751

5,012,452
17,842,470
12,667,174
421,658
309,605
20,967,675

4,990,981
17 842,470
12,246,917
385,858
259,824
20,941,674

Non­
insured

56,382,768

48,806,222

7,576,546

505,530

47,780

1,019,666

909,658

110,008

19,987

1,484

150,828

124,745

26,083

391,160
21,541
49,766
23,076

29,097
14,259
15
2,925

505,346
310,682

430,462
310,391

74,884
291

52,810

44,060

8.750

98,306,125

834,078

174,399

11,319,407

9,060,148

2,259,259

Total

Insured

Total assets.....................................................................................

412,492,741

401,601,386

10,891,355

356,109,973

Cash, balances with other banks, and cash collection
items—to ta l..........................................................................

58,240,700

57,577,382

663,318

5,163,280
17,842,470
13,172,520
732,340
309,605
21,020,485

5,115,726
17,842,470
12,677,379
696,249
259,824
20,985,734

47,554

Currency and coin............................................................
Demand balances with banks in U. S............................
Other balances with banks in U. S.................................
Cash items in process of collection................................

110,634,009

107,366,273

3,267,736

U. S. Gov’t obligations (including guaranteed).............
Obligations of States and subdivisions..........................
Securities of Federal agencies and corporations (not
guaranteed by U. S.).....................................................
Other bonds, notes, and debentures............................
Corporate stocks...............................................................

62,739,439
36,975,460

60,471,005
36,690,065

2,268,434
285,395

56,985,944
36,613,542

56,495,520
36,350,723

433,870
215,008

56,554
47,811

5,753,495
361,918

3,975,485
339,342

1,778,010
22,576

4,634,794
3,956,264
2,328,052

4,580,732
3,645,065
1,979,406

54,062
311,199
348,646

3,789,965
949,999
975,152

3,739,048
818,470
902,364

43,868
122,595
18,737

7,049
8,934
54,051

844,829
3,006,265
1,352,900

841,684
2,826,595
1,077,042

3,145
179,670
275,858

Loans and discounts, net—to ta l............................................

232,784,202

226,088,437

6,695,765

189,687,753

188,118,000

1,532,761

36,992

43,096,449

37,970,437

3,860,350

3,836,135

24,215

3,636,024

3,625,878

10,050

96

224,326

210,257

14,069

Loans and discounts, gross— to ta l....................................... 236,644,552

229,924,572

6,719,980

193,323,777

191,743,878

1,542,811

37,088

43,320,775

38,180,694

5,140,081

83,749,852

5,264,944

46,548,191

46,271,346

263,212

13,633

42,466,605

37,478,506

4,988,099

Valuation reserves...............................................................

5,126,012

Real estate loans—total...................................................

89,014,796

Secured by farm land..........................................................................
Secured by residential properties:
Insured by FHA ............................................................................
Guaranteed by V A ..........................................................................
Not insured or guaranteed by FHA or V A ....................................
Secured by other properties.................................................................

2,845,016

2,818,473

26,543

2,793,884

2,772,387

20,410

1,087

51,132

46,086

5,046

20,505,337
14,033,310
34,057,616
17,573,517

19,519,177
13,001,002
31,529,459
16,881,741

986,160
1,032,308
2,528,157
691,776

7,469,505
2,711,594
20,202,084
13,371,124

7,352,529
2,664,910
20,137,423
13,344,097

114,053
46,628
57,969
24,152

2,923
56
6,692
2,875

13,035,832
11,321,716
13,855,532
4,202,393

12,166,648
10,336,092
11,392,036
3,537,644

869,184
985,624
2,463,496
664,749

3,694,422
11,389,565
5,964,537
2,865,035

108,239
121,663
141,228
54,703

3,791,073
11,500,139
6,065,862
2,914,301

3,682,834
11,378,627
5,924,659
2,860,568

107,982
121,160
132,822
48,598

257
352
8,381
5,135

11,588
11,089
39,903
5,437

11,588
10,938
39,878
4,467

151
25
970

412,830
7,672,328
66,161,524
43,848,886
5,194,796

410,962
7,652,108
65,548,952
43,518,906
5,130,233

1,868
20,220
612,572
329,980
64,563

412,830
7,670,275
65,973,561
43,271,578
5,175,967

410,962
7,650,055
65,370,328
43,077,851
5,116,648

1,864
19,918
599,804
191,683
55,768

4
302
3,429
2,044
3,551

2,053
187,963
577,308
18,829

2,053
178,624
441,055
13,585

9,339
136,253
5,244

10,833,830

10,569,294

264,536

9,886,584

9,703,315

151,362

31,907

947,246

865,979

81,267

5,446,537
5,387,293

5,348,423
5,220,871

98,114
166,422

5,024,472
4,862,112

4,982,772
4,720,543

24,453
126,909

17,247
14,660

422,065
525,181

365,651
500,328

56,414
24,853

1nanc tn rninmprriAl anH fnrpicrn h^nk^
Loans to other financial institutions..............................
Loans to brokers and dealers in securities...................
Other loans for carrying securities.................................
Loans to farmers directly guaranteed by the CommnHitv/ PrArlit PnKnorfltinn
Hthor Inane tn farmorc
i iHincr P 2*1
A
Commercial and industrial loans....................................
Other loans to individuals................................................
All other loans (including overdrafts)............................
Miscellaneous assets—to ta l...................................................

 premises, furniture and fixtures, and real estate.
Bank
All other
http://fraser.stlouisfed.org/miscellaneous assets.......................................
Federal Reserve Bank of St. Louis

3,802,661
11,511,228
6,105,765
2,919,738

CORPORATION

Securities—to ta l.........................................................................

99,314,602

INSURANCE

291,078

Non­
insured

DEPOSIT

Insured

Insured

FEDERAL

Total

Total

401,601,386

10,891,355

356,109,973

352,795,164

3,023,731

291,078

56,382,768

48,806,222

7,576,546

305,548,114

297,366,589

8,181,525

254,605,333

253,109,398

1,380,906

115,029

50,942,781

44,257,191

6,685,590

125,932,774
173,579,15/

125,025,810
166,401,889

906,964
7,177,268

125,552,047
123,027,988

124,664,936
122,516,457

809,233
474,384

77,878
37,147

380,727
50,551,169

360,874
43,885,432

19,853
6,665,737

138,188,291
1,001,772
34,389,094

131,217,061
999,966
34,184,862

6,971,230
1,806
204,232

87,680,663
1,001,426
34,345,899

87,355,589
999,892
34,160,976

305,857
1,534
166,993

19,217

50,507,628
346
43,195

43,861,472
74
23,886

6,646,156
272
19,309

6,036,183

5,938,890

97,293

6,025,298

5,928,005

97,289

4

10,885

10,885

Government deposits—to ta l..................................................
U nited States G overnm ent—d e m a n d .............................
U nited States G overnm ent—tim e .....................................
States and subd ivisio n s—d e m a n d ...................................
States and subdivisions—tim e ..........................................

36,144,289

35,924,838

219,451

36,108,595

35,890,424

217,748

423

35,694

34,414

1,280

11,826,783
280,625
13,387,010
10,649,871

11,782,734
277,414
13,281,655
10,583,035

44,049
3,211
105,355
66,836

11,820,022
280,347
13,385,275
10,622,951

11,776,596
277,179
13,279,920
10,556,729

43,003
3,168
105,355

423

6,761
278
1,735
26,920

6,138
235
1,735
26,306

623
43

Domestic interbank and postal savings deposits—total
C om m ercial banks in the U. S.—d em a n d ......................
C om m ercial banks in th e U. S.—tim e .............................
M utual savings banks in th e U. S.—d e m a n d .................
M utual savings banks in th e U. S.—tim e ........................
Postal savings.........................................................................

15,496,012

15,252,023

243,989

15,494,492

15,250,503

243,888

11
0

1,520

1,520

13,838,027
461,898
884,918
293,261
17,908

13,785,308
457,758
773,584
217,469
17,904

52,719
4,140
111,334
75,792
4

13,837,928
460,477
884,918
293,261
17,908

13,785,209
456,337
773,584
217,469
17,904

52,618
4,140
111,334
75,792
4

101

99
1,421

99
1,421

Foreign government and bank deposits—to ta l................
Foreign governm ents, ce ntra l banks, etc.—d e m a n d ..
Foreign governm ents, central banks, etc.—tim e ..........
Banks in foreign co un trie s—d e m a n d ..............................
Banks in fore ig n co un trie s—tim e .....................................

6,703,247

6,501,583

201,664

6,703,212

6,501,554

201,588

35

29

6

809,162
4,115,931
1,476,596
301,558

782,664
4,054,156
1,387,455
277,308

26,498
61,775
89,141
24,250

809,127
4,115,931
1,476,596
301,558

782,635
4,054,156
1,387,455
277,308

26,447
61,775
89,116
24,250

35

29

6

Total deposits.....................................................................
Demand.........................................................................................
Time..............................................................................................

363,891,662
174,191,453
189,700,209

355,045,033
172,758,100
182,286,933

8,846,629
1,433,353
7,413,276

312,911,632
173,791,211
139,120,421

310,751,879
172,378,340
138,373,539

2,044,130
1,334,395
709,735

115,623
78,476
37,147

50,980,030
400,242
50,579,788

44,293,154
379,760
43,913,394

6,686,876
20,482
6,666,394

Miscellaneous liabilities—to ta l............................................
R ediscounts and o th e r borrow ed m o ne y........................
All o th e r m iscellaneous lia b ilitie s .....................................

14,477,226
3,738,863

13,588,903

888,323

13,610,069
3,695,472

12,923,639
3,575,541

24,617
2,555

867,157
43,391

9,914,597

9,348,098

22,062

823,766

42,641
622,623

201,893
750

767,642

661,813
117,376
544,437

665,264

3,618,182
9,970,721

120,681

10,738,363

Total liabilities (excluding capital accounts)............

378,368,888

368,633,936

9,734,952

326,521,701

323,675,518

2,705,943

140,240

51,847,187

44,958,418

6,888,769

Capital accounts—to ta l...........................................................
Preferred c a p ita l....................................................................
Com mon s to c k .......................................................................
S u rp lu s .....................................................................................
U ndivided p ro fits and re serve s.........................................

34,123,853

32,967,450

1,156,403

29,588,272

29,119,646

317,788

1,561,898

46,823

1,607,784

1,560,961

3,847,804
937

8,368,486
15,808,441

130,830

8,368,486

556,539

8,499,316
13,256,218

7,228,625

422,211

6,224,954

13,082,209
6,107,990

46,523
86,354
102,399

4,535,581
937

8,499,316
16,364,980
7,650,836

150,838
300
44,476

687,777

1,608,721

N um ber o f b a n ks3........................................................................

14,310

13,862

448

13,805

13,535

17,930

66,222

AD
N

25

O BANKS
F

201,143

71,610

3,108,762

2,726,232

82,512

34,452

1,425,882

1,120,635

382,530
305,247

223

47

505

327

178

131

1 Includes asset and liability figures for 16 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the parent banks.
a Amounts shown as deposits are special accounts and univested trust funds with the latter classified as demand deposits of individuals, partnerships, and corporations.
3 Includes 4 noninsured banks of deposit for which asset and liability data are not available.
Back figures: See the Annual Report for 1964, pp. 172-173, and earlier reports.




LIABILITIES

7
0
45

614

ASSETS

412,492,741

Business and personal deposits—to ta l..............................
Individuals, p a rtn e rsh ip s, and corpo ra tio ns—d e m a n d .
Ind ivid u als, partn ersh ips, and co rporations—t im e . . . .
Savings deposits.................................................................................
Deposits accumulated for payment of personal loans........................
Other deposits of individuals, partnerships, and corporations..........
C ertified and o ffic e rs ’ checks, letters of credit,
tra ve le rs’ checks, e tc........................................................

Total liabilities and capital accounts.....................................

Table 105. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in thousands of dollars)

132

Commercial banks and nondeposit trust
companies

All banks

Mutual savings banks

Nonins;ured
Total

Asset, liability, or capital account item

Insured
Banks of
deposit1

Non­
deposit
trust
com­
panies2

375,394,111

3,189,519

61,042,575

60,436,719

574,781
21,366
37,469
37,840

4,887,698
17,992,395
14,852,555
506,126
293,334
22,510,467

4,865,803
17,992,395
14,354,186
484,817
255,865
22,483,653

115,616,568

112,421,079

3,195,489

104,645,467

65,157,643
39,049,539

62,969,793
38,780,622

2,187,850
268,917

5,470,571
5,938,815

5,355,470
5,315,194

Loans and discounts, net—to ta l............................................ 248,104,496

241,078,486

Obligations of States and subdivisions..........................
Securities of Federal agencies and corporations (not
guaranteed by U. S.).....................................................
Other securities 3..............................................................

58,219,970

50,499,716

7,720,254

560,332

45,524

1,017,393

904,000

113,393

20,417

1,478

168,496

142,598

25,898

457,883
20,608
37,461
23,963

40,486
701

570,012
212,250

493,600
212,193

76,412
57

2,851

66,635

55,609

11,026

103,650,708

800,050

194,709

10,971,101

8,770,371

2,200,730

59,687,880
38,727,956

59,209,832
38,480,349

410,834
195,892

67,214
51,715

5,469,763
321,583

3,759,961
300,273

1,709,802
21,310

115,101
623,621

4,624,862
1,604,769

4,513,114
1,447,413

103,767
89,557

7,981
67,799

845,709
4,334,046

842,356
3,867,781

3,353
466,265

7,026,010

202,815,164

42,645

45,289,332

39,964,343

11,225,371

378,899,228

62,059,968

61,340,719

719,249

5,056,194
17,992,395
15,422,567
718,376
293,334
22,577,102

5,008,401
17,992,395
14,847,786
697,010
255,865
22,539,262

47,793

1,658,376

5,324,989

4,245,353

4,220,604

24,749

4,022,793

4,011,273

11,273

247

222,560

209,331

13,229

Loans and discounts, gross—to ta l........................................ 252,349,849

245,299,090

7,050,759

206,837,957

205,125,416

1,669,649

42,892

45,511,892

40,173,674

5,338,218

49,393,933

265,677

15,604

44,617,323

39,435,679

5,181,644

Valuation reserves............................................................ ............
Real estate loans—total .............................................................

94,292,537

88,829,612

5,462,925

49,675,214

Secured by farm land.........................................................................
Secured by residential properties:
Insured by FHA ............................................................................
Guaranteed by V A .........................................................................
Not insured or guaranteed by FHA or VA ...................................
Secured by other properties.................................................................

2.962.835

2,934,831

28,004

2.910.551

2,888,012

21,331

1,208

52,284

46,819

5,465

21,493,279
14,095,367
36,894,597
18,846,459

20,503,429
13,064,822
34,175,196
■ 18,151,334

989,850
1,030,545
2,719,401
695,125

7,702,346
2,687,718
21,997,366
14,377,233

7,592,405
2,637,439
21,929,584
14,346,493

106,712
50,156
59,598
27,880

3,229
123
8,184
2,860

13,790,933
11,407,649
14,897,231
4,469,226

879,909
980,266
2,651,619
664,385

2,107,517
13,200,380
2,064,215
5,109,279
3,179,888

65,318
143,482
38,337
170,178
61,825

2,160,330
13,329,369
2.102.552
5,257,843
3,236,018

2,095,012
13,186,038
2,064,215
5,087,694
3,175,076

65,082
142,981
38,337
161,610
53,641

236
350

12,911,024
10,427,383
12,245,612
,3,804,841

12,5.05
14,493

12,505
14,342

151

8,539
7,301

21,614
5,695

21,585
4,812

29
883

2.172.835
13,343,862
2,102,552
5,279,457
3,241,713

Loans to commercial and foreign banks.......................
Loans to other financial institutions..............................
Federal funds sold (loaned)
Loans to brokers and dealers in securities...................
Other loans for carrying securities.................................
Loans to farmers directly guaranteed by the Com­
modity Credit Corporation
Other loans to farmers (excluding real estate).............
Commercial and industrial loans....................................
Other loans to individuals................................................
All other loans (including overdrafts)............................

537,184
7,689,718
72,052,318
46,353,962
5,283,711

533,948
7,670,978
71,379,881
46,013,134
5,210,258

3,236
18,740
672,437
340,828
73,453

537,184
7,687,805
71,898,025
45,698,638
5,254,979

533,948
7,669,065
71,235,183
45,497,461
5,187,791

3,236
18,463
658,282
199,151
63,189

277
4,560
2,026
3,999

1,913
154,293
655,324
28,732

1,913
144,698
515,673
22,467

9,595
139,651
6,265

M iscellaneous assets—to ta l..................................................

11,338,166

11,053,543

284,623

10,396,022

10,192,541

170,761

32,720

942,144

861,002

81,142

Bank
 premises, furniture and fixtures, and real estate.
—net of mortgages and other liens............................
http://fraser.stlouisfed.org/
All other miscellaneous assets.......................................
Federal Reserve Bank of St. Louis

5,624,591
5,713,575

5,525,447
5,528,096

99,144
185,479

5,187,819
5,208,203

5,144,222
5,048,319

24,360
146,401

19,237
13,483

436,772
505,372

381,225
479,777

55,547
25,595

CORPORATION

201,114,143

8

INSURANCE

Securities—to ta l.........................................................................
U. S. Gov’t, obligations (including guaranteed)............

315,598

425,893,827

DEPOSIT

Demand balances with banks in U. S ..................................
Other balances with banks in U. S.................................
Balances with banks in foreign countries.....................
Cash items in process of collection...............................

Non­
insured

FEDERAL

Currency and coin............................................................

Insured

Non­
insured

Total assets..................................................................................... 437,119,198
Cash, balances with other banks, and cash collection
item s—to ta l..........................................................................

Total

Insured

Total

437,119,198

Total liabilities and capital accounts................................
Business and personal deposits—total.........................
Individuals, partnerships, and corporations—demand
.

329,531,661
140,408,828
2,296,779
138,112,049
183,110,319

Savings deposits...............................................................................
Deposits accumulated for payment of personal loans......................
Deposits of savings and loan associations... .♦
................................
Other deposits of individuals, partnerships, and corporations.........

1,080,137
923,540
35,861,101

Deposits of savings and loan associations.........................................
Other deposits of individuals, partnerships, and corporations..........

Individuals, partnerships, and corporations—time

1 .520 4
4 , 4 ,01

425,893,827
321,054,130
139,423,124
2,294,862
137,128,262
175,687,053
138,032,101
1,078,235
922,485
35,654,232

11,225,371
8,477,531
985,704
1,917
983,787
7,423,266
7,213,440
1,902
1,055
206,869

378,899,228

375,394,111

276,810,698
140,055,917
2,296,779
137,759,138
130,754,219
92,911,673
1,079,923
923,540
35,839,083

275,205,357
139,077,920
2,294,862
136,783,058
130,-195,436
92,554,897
1,078,207
922,485
35,639,847

3,189,519
1,476,965
889,617
1,917
887,700
518,789

315,598

58,219,970

50,499,716

7,720,254

128,376
88,380

52,720,
352,

1,848,773
345,204

6,872,190
7,707

88:380
39,994

352,
52,356,
52,333 ,

345,204

,491,617
,477,204

7,707
6,864,483
6,856,664
186

14,385

7,633

334,484

1,716
1,055
181,534

214

17,702

f ,018

Certified and officers’ checks, letters of credit,
travelers’ checks, etc.................................................

6,012,514

5,943,953

68,561

6,000,562

5,932,001

68,559

2

Government deposits—total..............................................
United States Government—demand...........................
United States Government—tim e..................................
States and subdivisions—demand................................
States and subdivisions—tim e.......................................

32,459,855
5,558,496
285,065
14,351,303
12,264,991

32,253,974
5,530,611
281,737
14,243,803
12,197,823

205,881
27,885
3,328
107,500
67,168

32,421,009
5,550,986
284,610
14,349,223
12,236,190

32,216,843
5,523,816
281,330
14,241,724
12,169,973

203,874
26,878
3,280
107,499
66,217

292
292

Domestic interbank deposits—total
Commercial banks in the U. S.—demand....................
Commercial banks in the U. S.—tim e...........................
Mutual savings banks in the U. S.—demand...............
Mutual savings banks in the U. S.—time......................

17,541,234
15,825,351
515,629
989,003
211,251

17,313,105
15,779,184
511,424
860,378
162,119

228,129
46,167
4,205
128,625
49,132

17,539,847
15,825,229
514,364
989,003
211,251

17,311,718
15,779,062
510,159
860,378
162,119

227,676
45,714
4,205
128,625
49,132

453
453

Foreign government and bank deposits—total...............
Foreign governments, central banks, etc.—demand..
Foreign governments, central banks, etc.—time
Banks in foreign countries—demand...........................
Banks in foreign countries—tim e..................................

7,007,904
921,633
4,150,871
1,632,562
302,838

6,778,763
892,867
4,086,126
1,529,097
270,673

229,141
28,766
64,745
103,465
32,165

7,007,904
921,633
4,150,871
1,632,562
302,838

6,778,763
892,867
4,086,126
1,529,097
270,673

228,838
28,523
64,745
103,405
32,165

303
243

Total deposits...............................................................
Demand........................................................................................
Time..............................................................................................

386,540,654
185,699,690
200,840,964

377,399,972
184,203,017
193,196,955

9,140,682
1,496,673
7,644,009

333,779,458
185,325,115
148,454,343

331,512,681
183,836,865
147,675,816

2,137,353
1,398,820
738,533

129,424
89,430
39,994

52,761,196
374,575
52,386,621

45,887,291
366,152
45,521,139

6,873,905
8,423
6,865,482

Miscellaneous liabilities—total........................................
Federal funds purchased (borrowed)...........................
Other liabilities for borrowed money........ ................
All other miscellaneous liabilities..................................

15,523,841
2,440,413
2,150,076
10,933,352

14,631,509
2,438,413
1,989,090
10,204,006

892,332
2,000
160,986
729,346

14,728,525
2,440,413
2,057,996
10,230,116

13,976,496
2,438,413
1,898,290
9,639,793

722,572
2,000
156,662
563,910

29,457

795,316

655,013

140,303

3,044
26,413

92,080
703,236

90,800
564,213

1,280
139,023

Total liabilities (excluding capital accounts)........... 402,064,495

392,031,481

10,033,014

348,507,983

345,489,177

2,859,925

158,881

53,556,512

46,542,304

7,014,208

Capital accounts—total......................................................
Preferred capital..............................................................
Common stock:................................................................
Surplus..............................................................................
Undivided profits and reserves.....................................

35,054,703
1,744,011
8,647,880
16,825,002
7,837,810

33,862,346
1,695,350
8,507,770
16,263,422
7,395,804

1,192,357
48,661
140,110
561,580
442,006

30,391,245
1,741,252
8,647,880
13,643,617
6,358,496

29,904,934
1,692,591
8,507,770
13,464,797
6,239,776

329,594
48,361
91,712
107,256
82,265

156,717
300
48,398
71,564
36,455

4,663,458
2,759

3,957,412
2,759

706,046

3,181,385
1,479,314

2,798,625
1,156,028

382,760
323,286

Number of banks4..................................................................

14,324

13,876

448

13,818

13,547

221

50

506

329

177

,952

11,952
1,715
715
48

1

951

AD
N

1,387

122
1,265

LIABILITIES
O BANKS
F
133

1 Includes asset and liability figures for 16 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the parent banks.
2 Amounts shown as deposits are special accounts and univested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.
3 Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "Other assets” .
4 Includes 7 noninsured banks for which asset and liability data are not available.
Back figures, 1934-1964: See the preceding table and the Annual Report for 1964, pp. 174-175, and earlier reports.




ASSETS

37,131
6,795
407
2,079
27,850

Table 106. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965
B A N K S G RO UPE D BY D IS T R IC T A N D S T A TE
(A m o u n ts in th o u s a n d s o f d o lla rs )

134

L ia b ilitie s a n d c a p ita l a c c o u n ts

A s s e ts

FD IC D is tr ic t a n d S ta te

Num ­
ber of
C a sh a n d
b a n k s 1 d u e fro m
banks

D e p o s its
U. S. G ov­
e rn m e n t
o b lig a tio n s

O th e r
s e c u r itie s 2

Loa ns, d is ­
c o u n ts ,
a n d o v e r­
d r a fts

M is c e lla ­
neo us
a s s e ts

T o ta l
B u s in e s s
a n d p e r­
s o n a l3

G o v e rn ­
m e n t4

Foreign
g o v ’t a n d
in te rb a n k

M is c e lla ­
ne o u s
lia b ilitie s

T o ta l
c a p ita l
a c c o u n ts

50,458,925

248,104,496

11,338,166

437,119,198

329,531,661

32,459,855

24,549,138

15,523,841

35,054,703

65,008,076

50,354,955

246,926,076

11,246,141

435,448,536

328,411,095

32,246,774

24,508,023

15,349,862

34,932,782

Other a reas............................

16

146,680

149,567

103,970

1,178,420

92,025

1,670,662

1,120,566

213,081

41,115

173,979

121,921

733
761
867
1,331
1,545
1,364
1,724
1,193
1,775
1,438
472

2,743,215
16,310,739
5,862,001
3,360,671
3,597,196
3,979,918
4,167,823
4,981,684
1,549,390
2,646,087
5,650,405
7,210,839

4,810,706
12,190,828
7,041,246
3,798,632
3,855,393
3,908,325
6,452,912
6,698,702
2,208,104
2,783,715
4,381,013
7,028,067

3,149,926
14,514,960
6,051,012
2,412,669
2,344,424
2,531,185
3,523,443
4,229,145
1,434,150
1,489,782
3,156,965
5,621,264

21,118,521
80,752,318
23,872,750
11,741,770
9,358,701
10,346,907
15,676,231
16,940,626
5,433,485
7,257,579
14,173,214
31,432,394

576,525
4,284,148
839,302
491,035
485,478
354,835
567,405
705,682
207,264
265,558
757,117
1,803,817

32,398,893
128,052,993
43,666,311
21,804,777
19,641,192
21,121,170
30,387,814
33,555,839
10,832,393
14,442,721
28,118,714
53,096,381

26,399,551
93,848,896
34,437,936
16,828,883
14,089,773
15,368,075
23,935,205
25,565,414
8,280,981
10,589,608
19,910,505
40,276,834

1,345,891
6,247,115
2,929,065
1,771,708
2,345,073
1,856,028
2,817,118
2,297,360
948,425
1,533,922
3,083,318
5,284,832

789,282
10,234,956
1,511,806
848,504
1,184,396
1,749,804
783,669
2,149,009
525,479
776,332
2,273,087
1,722,814

1,014,377
7,285,855
1,156,427
551,191
439,523
421,385
714,964
945,380
233,445
271,612
619,751
1,869,931

2,849,792
10,436,171
3,631,077
1,804,491
1,582,427
1,725,878
2,136,858
2,598,676
844,063
1,271,247
2,232,053
3,941,970

A la b a m a .....................................
A la s k a .........................................
A r iz o n a .......................................
A r k a n s a s ....................................
C a lifo r n ia ...................................

263
14
18
246
199

622,895
46,725
318,698
453,589
5,354,718

733,318
67,737
257,871
359,504
5,013,210

491,037
41,995
227,836
307,305
4,165,673

1,677,520
218,959
1,457,548
1,087,925
23,949,585

61,191
13,857
94,741
35,390
1,369,916

3,585,961
389,273
2,356,694
2,243,713
39,853,102

2,643,340
250,456
1,833,703
1,723,166
30,117,634

446,950
101,126
237,488
202,755
3,736,296

145,651
3,951
33,933
120,306
1,487,323

55,903
10,806
54,443
19,125
1,579,792

294,117
22,934
197,127
178,361
2,932,057

C o lo r a d o .....................................
C o n n e c tic u t............. .................
D e la w a re .. ...............................
D is tric t o f C o lu m b ia ..............
F lo rid a .........................................

250
139

556,442
623,798
185,229
436,049
1,595,227

528,428
777,099
227,152
553,376
1,894,725

262,179
1,040,442
211,901
116,480
990,331

1,810,209
5,368,009
712,709
1,369,131
3,829,269

89,305
139,138
23,682
44,918
246,687

3,246,563
7,948,486
1,360,673
2,519,954
8,556,239

2,505,001
6,701,307
1,061,628
2,089,403
6,085,248

241,707
325,176
132,140
50,791
1,083,700

151,077
73,957
13,008
140,436
541,206

80,335
165,387
30,682
50,589
182,805

268,443
682,659
123,215
188,735
663,280

G e o rg ia .......................................
H a w a ii.........................................
I d a h o ...........................................
I llin o is ..........................................
In d ia n a .......................................

429
25
1,051
426

982,883
152,723
129,380
4,211,411
1,229,086

824,211
164,338
172,713
5,555,216
1,962,407

513,009
120,660
92,784
3,657,592
760,180

2,786,424
665,664
565,992
14,530,044
3,767,137

128,786
64,718
23,290
648,093
132,273

5,235,313
1,168,103
984,159
28,602,356
7,851,083

3,686,459
791,867
773,524
21,610,986
5,966,662

562,338
186,128
119,022
1,958,282
817,325

364,146
28,562
4,294
1,940,462
214,752

170,950
37,730
16,132
910,165
272,382

451,420
123,816
71,187
2,182,461
579,962

673
599
346
214
76

770,273
604,997
764,917
988,952
139,764

1,143,486
848,717
847,814
971,540
259,023

571,553
487,208
359,749
531,976
213,693

2,410,582
1,756,929
1,779,644
2,200,485
1,014,343

57,589
46,621
55,070
80,424
29,318

4,953,483
3,744,472
3,807,194
4,773,377
1,656,141

3,954,428
2,627,930
2,884,748
3,333,854
1,384,638

339,078
597,937
299,662
611,287
65,131

208,547
141,988
265,752
395,285
16,317

35,215
39,915
38,120
68,391
36,355

416,215
336,702
318,912
364,560
153,700

FDIC District
D is tr ic t 1 ....................................
D is tr ic t
D is tr ic t
D is tr ic t
D is tric t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tr ic t
D is tric t
D is tr ic t

2
3
4
5

5..................................
....................................
....................................
....................................
6 ....................................
7 ....................................
8 ....................................
9 ....................................
1 0 .................................
1 1 .................................
1 2 6 ...............................

1,121

State

I o w a ..............................................
K a n s a s ........................................


K e n tu c k y ....................................
L o u is ia n a ...................................
http://fraser.stlouisfed.org/
M a in e ...........................................
Federal Reserve Bank of St. Louis

22

15
443

12

CORPORATION

65,157,643

61,913,288

INSURANCE

62,059,968

14,308

DEPOSIT

14,324

50 States and D. C...............

FEDERAL

Total United S tates.............

526,173
1,307,039
1,957,530
949,028
350,047

2,747,422
11,476,125
8,365,241
3,728,249
1,065,488

128,257
336,698
301,936
136,181
48,814

4,856,014
17,992,905
15,489,902
7,259,431
2,263,679

3,870,220
14,343,041
12,278,268
5,529,135
1,674,726

341,863
710,773
1,499,368
537,130
252,085

136,441
649,310
350,266
452,237
133,393

102,745
666,693
331,622
177,323
29,865

404,745
1,623,088
1,030,378
563,606
173,610

M is s o u ri..................................
M o nta na ..................................
N eb ra ska ................................
N evada....................................
New H am p sh ire ....................

655
131
436
9
106

1,717,963
179,387
462,852
91,849
104,259

1,779,760
261,978
485,302
141,426
206,756

1,200,943
138,228
246,332
93,891
132,728

4,578,356
626,825
1,332,094
421,392
1,155,267

157,573
26,835
40,780
28,396
24,793

9,434,595
1,233,253
2,567,360
776,954
1,623,803

6,723,462
956,915
1,891,730
589,979
1,351,340

846,758
123,558
192,744
102,079
68,242

846,127
37,875
196,129
5,905
13,101

217,968
25,913
54,184
13,561
39,812

800,280
88,992
232,573
65,430
151,308

New Je rsey............................
New M exico............................
New Y o rk 7..............................
N orth C aro lin a .......................
N orth D ako ta .........................

254
64
470
146
169

1,336,665
155,321
14,651,227
894,622
120,826

2,020,394
206,409
9,794,681
635,227
293,154

2,128,890
105,169
12,070,199
683,628
229,141

7,698,487
556,583
71,198,066
2,750,219
510,818

248,063
23,612
3,957,511
128,627
22,226

13,432,499
1,047,094
111,671,684
5,092,323
1,176,165

11,093,212
767,063
80,623,268
3,628,955
881,920

836,894
158,629
5,094,572
543,813
158,379

119,708
19,522
10,061,255
311,135
18,766

376,172
22,398
6,706,772
187,261
16,632

1,006,513
79,482
9,185,817
421,159
100,468

O h io .........................................
O kla ho m a ...............................
O re g o n ....................................
P e n nsylva nia .........................
Rhode Is la n d .........................

543
421
52
578
18

2,587,934
914,462
452,281
3,274,067
175,834

3,305,886
778,145
545,067
3,735,360
211,020

2,204,965
452,182
419,358
3,846,047
390,953

9,113,694
2,048,116
1,812,550
14,759,056
1,520,085

298,609
74,674
112,652
540,693
33,798

17,511,088
4,267,579
3,341,908
26,155,223
2,331,690

13,839,962
3,108,283
2,553,373
20,597,974
1,914,885

1,414,858
419,894
442,274
1,514,207
135,941

468,990
271,027
35,902
1,042,816
16,011

375,698
88,304
78,686
780,729
89,570

1,411,580
380,071
231,673
2,219,497
175,283

South C aro lin a ......................
South D ako ta ........................
Tenn esse e ..............................
T e xa s.......................................
U ta h .........................................

129
170
298
1,142
56

303,066
147,518
1,043,449
4,187,434
249,703

287,575
308,658
921,247
2,945,193
190,616

214,943
117,753
663,188
2,291,984
194,765

822,517
567,593
2,900,982
9,958,598
894,409

34,534
22,022
106,802
558,340
31,656

1,662,635
1,163,544
5,635,668
19,941,549
1,561,149

1,220,219
913,011
4,036,699
13,975,885
1,096,780

205,074
129,358
506,853
2,075,914
271,126

43,686
16,601
517,619
1,824,347
50,533

49,915
13,577
146,172
474,519
26,722

143,741
90,997
428,325
1,590,884
115,988

V e rm o n t..................................
V irg in ia ....................................
W ashington............................
West V irg in ia ..........................
W isco nsin ...............................
W yo m ing .................................

54
262
104
187
584
69

61,192
808,581
724,398
291,384
970,543
107,334

122,133
912,080
731,994
583,181
1,593,504
143,123

65,071
641,131
492,138
230,314
805,733
41,881

584,692
3,158,951
2,868,479
893,530
3,543,853
310,231

12,780
114,654
122,199
40,045
133,196
14,178

845,868
5,635,397
4,939,208
2,038,454
7,046,829
616,747

704,340
4,434,616
4,053,443
1,585,470
5,690,275
456,664

40,628
451,237
297,209
178,930
500,425
81,640

20,586
177,143
106,214
39,663
218,651
16,111

16,560
123,095
104,752
37,586
110,960
8,874

63,754
449,306
377,590
196,805
526,518
53,458

Other area
Pacific Is la n d s 8.....................
Panama Canal Z o n e 9..........
Puerto R ico 10.........................
Virgin Is la n d s 11.....................

1
11
4

7,836
1,226
131,530
6,088

140,220
8,381

102,254
1,716

31,773
3,591
1,090,111
52,945

12,339
24,794
38,138
16,754

52,914
29,611
1,502,253
85,884

33,015
16,763
1,015,160
55,628

16,909
12,663
158,166
25,343

125
5
40,943
42

1,570
180
169,884
2,345

118,100
2,526

966

1,295




135

1Includes 7 noninsured banks (1 in Illinois, 2 in Iowa, 1 in Nebraska, 1 in North Dakota, and 2 in Texas) for which data are not available.
2Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ Miscellaneous assets” .
3 Demand and time deposits of individuals, partnerships, and corporations, certified and officers’ checks, letters of credit, etc.
4 Deposits of the United States Government, States and subdivisions and postal savings.
5 Includes Puerto Rico and the Virgin Islands.
6 Includes Alaska, Hawaii, Pacific Islands, and the Panal Canal Zone.
* 7 Includes asset and liability data for 6 insured branches operated by 2 insured banks in Puerto Rico. See also Table 105, footnote 1.
8 In United States possessions (American Samoa, Guam, Midway Islands, and Wake Island) and Trust Territories (Kwajalein, Palau Islands, Ponape Island, Saipan, and Truk Atoll). Consists of asset and liability
data for 1 noninsured bank in American Samoa and 5 branches of an insured bank in California, 1 noninsured in Caroline Islands, Truk Atoll (Moen Island) and 4 in the Mariana Islands (3 insured on Guam and 1 non­
insured on Saipan). Also, 7 branches of an insured bank in Hawaii, consisting of 1 insured branch on Guam and 6 noninsured branches: 2 in Caroline Islands, Palau Islands (Koror) and Ponape Island (Kolonia); 2
in Marshall Islands, Kwajalein Atoll; 1 in Midway Islands, Sand Island; and 1 on Wake Island.
9 Consists of asset and liability data for 2 noninsured branches operated by 2 insured banks in New York.
1 Includes asset and liability data for 15 insured branches operated by 2 insured banks in New York.
0
1 Includes asset and liability data for 4 insured branches operated by an insured bank in New York.
1
Note: Data for branches described in footnotes 5, 6, 7, 8, and 9 are not included in the figures for the States in which the parent banks are located.
Back figures, 1945-1964: See the Annual Report for 1964, pp. 176-177, and earlier reports.

O BANKS
F

827,193
3,234,675
2,897,001
1,344,314
403,139

LIABILITIES

626,969
1,638,368
1,968,194
1,101,659
396,191

AD
N

128
340
354
723
196

ASSETS

M a ry la n d ................................
M a ssach u se tts......................
M ichig an .................................
M inn e so ta..............................
M is s issip p i.............................

136

Table 107. ASSETS AND LIABILITIES OF ALL INSURED BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE AND DECEMBER CALL DATES, 1962 THROUGH 1965
(Amounts in thousands of dollars)

Assets

June 30,
1962

Dec. 28,
1962

June 29,
1963

Dec. 20,
1963

June 30,
1964

Dec. 31,
1964

June 30,
1965

Dec. 31,
1965

366,105,553

392,174,389

401,601,386

425,893,827

51,166,975

53,768,750

60,926,055

57,577,382

61,340,719

Currency and coin.....................................................................................
Reserve with Federal Reserve Banks (member banks)......................
Demand balances with banks in the United States (except private
banks and American branches of foreign banks)............................
Other balances with banks in the United States.................................
Balances with banks in foreign countries............................................
Cash items in process of collection.......................................................

3,295,166
16,839,174

4,382,304
17,679,794

3,596,056
16,529,350

4,157,140
17,149,613

4,671,492
16,773,717

4,690,732
17,580,743

5,115,726
17,842,470

5,008,401
17,992,395

11,850,224
312,949
178,081
16,805,736

13,021,881
416,948
237,431
18,844,058

12,321,213
575,162
245,254
18,398,806

12,086,463
508,860
298,992
16,965,907

12,464,351
612,791
365,678
18,880,721

14,567,230
782,609
300,841
23,003,900

12,677,379
696,249
259,824
20,985,734

14,847,786
697,010
255,865
22,539,262

Obligations of the U. S. Government, direct and guaranteed—total

68,688,732

70,605,519

67,667,433

67,135,755

63,269,961

66,698,504

60,471,005

62,969,793

Direct:
Treasury bills.........................................................................................
Treasury certificates of indebtedness................................................
Treasury notes maturing in 1 year or less.........................................
Treasury notes maturing after 1 year.................................................
United States non-marketable bonds.................................................
Other bonds maturing in 1 year or less..............................................
Other bonds maturing in 1 to 5 years.................................................
Other bonds maturing in 5 to 10 years..............................................
Other bonds maturing after 10 years.................................................
Guaranteed obligations.............................................................................

8,440,540
3,657,486
11,467,088
15,362,125
569,852
1,058,937
14,401,180
10,072,252
3,424,328
234,944

11,791,016
3,996,330
5,322,085
19,150,662
449,760
2,285,148
11,648,541
13,598,734
2,123,031
240,212

9,308,207
3,255,341
4.627.951
19,844,588
421,017
1,508,840
10,068,307
15,957,065
2.469.952
206,165

11,208,197
1,670,638
6,138,257
16,757,376
393,648
1,155,685
13,468,861
13,667,498
2,433,898
241,697

9,202,774
32,445
6,552,501
17,064,558
368,416
1,873,321
12,795,720
12,710,246
2,364,612
305,368

13,533,705

9,180,492 1

7,225,361
12,152,456
339,889
1,915,555
15,616,677
13,588,921
2,019,222
306,718

7,212,091
7,635,127
316,039
1,005,734 1
17,046,637
15,483,680
2,370,586
220,619

31,778,264

34,126,296

37,145,497

39,700,867

41,120,989

43,386,304

46,895,268

49,451,286

23,458,724

25,076,053

28,037,856

30,022,176

31,615,328

33,711,653

36,690,065

38,780,622

2,910,983
4,013,148
457,069
938,340

3,486,442
4,064,339
465,705
1,033,757

3,597,544
3,909,101
481,062
1,119,934

3,813,096
4,215,668
3,909,572
3,787,856
491,175
1,183,992 } 1,782,993

4,195,363
3,667,522

100,466,996

104,731,815

104,812,930

Other securities—to ta l.......................................................................................

Obligations of States and subdivisions.................................................
Securities of Federal agencies and corporations (not guaranteed
by U. S.).............................................................................................
Other bonds, notes, and debentures....................................................
Federal Reserve Bank stock...................................................................
Other corporate stocks............................................................................
Total securities.




106,836,622

104,390,950

1,811,766

110,084,808

C)

5,355,470
4,580,732
3,645,065
| 25,315,194
1,979,406

107,366,273

112,421,079

CORPORATION

354,809,831

51,665,841

INSURANCE

340,388,582

54,582,416

DEPOSIT

335,934,112

49,281,330

FEDERAL

313,495,544

Cash, balances with other banks, and cash collection items—to ta l....

Total assets.

156,309,473

Loans and discounts, net—to ta l......................................................................

168,801,321

175,498,110

188,232,982

198,530,566

211,329,246

226,088,437

241,078,486

2,878,319

2,909,688

3,226,382

3,213,551

3,461,096

3,762,450

3,836,135

4,220,604

Loans and discounts, gross—to ta l..................................................................

159,187,792

171,711,009

178,724,492

191,446,533

201,991,662

215,091,696

229,924,572

245,299,090

Real estate loans—total...........................................................................

59,043,989

62,750,776

67,032,568

70,980,241

75,153,728

79,556,374

83,749,852

88,829,612

Secured, by farm land......................................................................................................
Secured by residential properties:
Insured by FHA .........................................................................................................
Guaranteed by VA .......................................................................................................
Not insured or guaranteed by FHA or V A ................................................................
Secured by other properties..............................................................................................

1,955,870

2,048,943

2,266,236

2,350,099

2,583,231

2,665,233

2,818,473

2,934,831

14,328,907
11,151,068
20,862,495
10,745,649

15,176,739
11,472,042
22,471,202
11,581,850

16,255,516
12,054,896
23,930,946
12,524,974

17,016,748
12,317,825
25,767,552
13,528,017

17,780,208
12,598,984
27,693,182
14,498,123

19,519,177
13,001,002
31,529,459
16,881,741

20,503,429
13,064,822
34,175,196
18,151,334

1,915,015
8,646,348
(3
)
4,629,754
2,211,103

3,610,250
9,448,495
O
5,349,920
2,488,339

2,859,830
10,443,943
(3 ,
)
5,504,905
2,698,850

18,771,324
12,813,742
29,550,691
15,755,384

3,437,217
10,858,968
(3
)
5,381,309
2,799,024

3,694,422
11,389,565
<)
3
5,964,537
2,865,035

2,107,517
13,200,380
2,064,215
5,109,279
3,179,888

2,560,370
8,473,355
C)
5,177,925
2,114,934

870,226
5,906,652
46,062,053
29,653,900

1,111,661
5,963,558
48,860,921
30,790,186

799,576
6,733,102
50,022,702
32,921,628

816,838
6,647,074
53,144,882
34,919,957

366,380
7,312,822
55,257,892
37,952,479

513,580
6,984*, 795
60,197,360
40,205,923

410,962
7,652,108
65,548,952
43,518,906

533,948
7,670,978
71,379,881
46,013,134

Passenger automobile instalment loans...........................................................................
Other retail consumer instalment loans...........................................................................
Residential repair and modernization instalment loans..................................................
Other instalment loans for personal expenditures...........................................................
Single-payment loans for personal expenditures............................................................

9,908,821
2,756,744
2,737,832
4,828,838
9,421,665

10,534,920
2,858,885
2,825,491
5,092,511
9,478,379

11,693,717
3,008,854
2,853,029
5,475,283
9,890,745

12,451,250
3,201,535
2,976,040
5,807,404
10,483,728

13,847,341
3,494,772
2,986,774
6,256,116
11,367,476

14,686,090
3,749,799
3,088,258
6,567,231
12,114,545

16,260,214
3,938,527
3,106,720
7,136,733
13,076,712

17,174,769
4,178,989
3,215,450
7,587,860
13,856,066

All other loans (including overdrafts)....................................................

3,710,554

3,907,323

3,812,696

4,040,537

4,440,833

5,157,146

5,130,233

5,210,258

Total loans and securities.........................................................................

256,776,469

273,533,136

280,311,040

295,069,604

302,921,516

321,414,054

333,454,710

353,499,565

4,924,022

5,096,486

5,348,423

LIABILITIES

1,476,902
7,232,209
e)
3,242,678
1,988,629

AD
N

Loans to domestic commercial and foreign banks..............................
Loans to other financial institutions.......................................................
Federal funds sold (loaned)...................................................................
Loans to brokers and dealers in securities...........................................
Other loans for purchasing or carrying securities................................
Loans to farmers directly guaranteed by the Commodity Credit Cor­
poration ...............................................................................................
Other loans to farmers (excluding loans on real estate).....................
Commercial and industrial loans (including open market paper)......
Other loans to individuals for personal expenditures—total...............

ASSETS

Valuation reserves........................................................................................

45,525,447

3,975,558

4,172,496

4,428,257

4,707,697

2,714,370
778,152
123,522

2,852,967
819,099
126,659

3,122,721
838,200
128,093

3,343,007 i
892,555
112,159 >

359,514

373,771

339,243

Miscellaneous assets—to ta l.............................................................................

3,462,187

3,646,064

3,983,444

3,865,555

4,491,265

4,737,794

5,220,871

5,528,096

1,456,612
2,005,575

1,618,937
2,027,127

1,549,880
2,433,564

1,591,458
2,274,097

1,690,721
2,800,544

1,697,120
3,040,674

1,824,831
3,396,040

1,862,571
3,665,525

15.7%
21.9
10.1
49.9
2.4
8.3

16.2%
21.0
10.2
50.3
2.3
8.1

15.2%
19.9
10.9
51.5
2.5
8.1

14.4%
18.9
11.2
53.1
2.4
8.2

14.7%
17.3
11.2
54.2
2.6
8.2

15.5%
17.0
11.1
53.9
2.5
8.0

14.3%
15.1
11.7
56.3
2.6
8.2

14.4%
14.8
11.6
56.6
2.6
8.0

13.4

12.9

12.5

12.2

12.1

11.8

11.6

11.2

Customers’ liability on acceptances outstanding.................................
Other assets..............................................................................................

O

O

O

(0

359,976 /

O BANKS
F

.

Bank premises..........................................................................................
Furniture and fixtures..............................................................................
Real estate owned other than bank premises......................................
Investments and other assets indirectly representing bank prem­
ises or other real estate...................................................................

Bank premises, furniture and fixtures, and other real estate—total

PERCENTAGES
To total assets:

To total assets other than cash and U. S. Government obligations:

Total capital accounts..............................................................................




137

Cash and balances with other banks.....................................................
U. S. Government obligations, direct and guaranteed........................
Other securities........................................................................................
Loans and discounts................................................................................
Other assets..............................................................................................
Total capital accounts..............................................................................

1
38

Table 107. ASSETS AND LIABILITIES OF ALL INSURED BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE AND DECEMBER CALL DATES, 1962 THROUGH 1965— CONTINUED
(Amounts in thousands of dollars)
Dec. 31,
1964

June 30,
1965

Dec. 31,
1965

354,809,831

366,105,553

392,174,389

401,601,386

425,893,827

266,669,373
123,842,677

273,587,716
121,036,112

295,697,698
134,613,437

297,366,589
125,025,810

Dec. 28,
1962

June 29,
1963

Dec. 20,
1963

Total liabilities and capital accounts..........................................................

313,495,544

335,934,112

340,388,582

Business and personal deposits—total...................................................
Individuals, partnerships, and corporations—demand......................

233,748,980
111,730,739

252,498,086
123,554,500

253,187,093
116,024,030

22,794,794

26,985,046

28,895,834

34,184,862

4,447,764

4,456,271

4,812,349

5,889,875

5,938,890

Government deposits—total......................................................................
United States Government—demand...................................................
United States Government—tim e..........................................................
States and subdivisions—demand....................................................
States and subdivisions—tim e................................................................

27,970,218
9,544,587
295,840
11,794,877
6,334,914

25,611,034
6,833,754
266,199
12,066,083
6,444,998

31,127,763
11,026,837
250,834
12,388,673
7,461,419

27,171,277
6,734,239
268,300
12,263,435
7,905,303

31,764,288
10,257,861
257,574
12,562,582
8,686,271

30,103,156
6,507,450
270,984
13,499,246
9,825,476

35,924,838
11,782,734
277,414
13,281,655
10,583,035

32,253,974
5,530,611
281,737
14,243,803
12,197,823

Domestic interbank and postal savings deposits—total.......................
Commercial banks in the U. S.—demand............................................
Commercial banks in the U. S.—tim e...................................................
Mutual savings banks in the U. S.—demand.......................................
Mutual savings banks in the U. S.—tim e..............................................
Postal savings...........................................................................................

13,341,497
12,392,738
218,066
669,337
42,901
18,455

14,889,921
13,907,406
241,908
684,285
38,153
18,169

13,980,532
12,924,632
281,667
710,091
46,888
17,254

14,270,000
13,323,112
269,914
610,294
49,252
17,428

14,261,223
13,051,155
359,132
749,168
82,561
19,207

16,756,448
15,492,886
384,815
740,382
118,835
19,530

15,252,023
13,785,308
457,758
773,584
217,469
17,904

17,313,105
15,779,184
511,424
860,378
162,119
O

Foreign government and bank deposits—total.......................................
Foreign governments, central banks, etc.—demand..........................
Foreign governments, central banks, etc.—tim e.................................
Banks in foreign countries—demand....................................................
Banks in foreign countries—tim e..........................................................

4,138,626
660,437
2,162,539
1,182,770
132,880

4,548,654
724,335
2,431,688
1,265,391
127,240

4,854,482
626,447
2,856,924
1,264,201
106,910

5,193,098
841,612
3,045,448
1,177,311
128,727

5,733,893
675,616
3,574,254
1,316,494
167,529

6,424,074
826,137
3,893,693
1,454,685
249,559

6,501,583
782,664
4,054,156
1,387,455
277,308

6,778,763
892,867
4,086,126
1,529,097
270,673

Total deposits........................................................................................

279,199,321
152,397,664
126,801,657

297,547,695
163,492,480
134,055,215

303,149,870
159,412,675
143,737,195

313,303,748
163,248,951
150,054,797

325,347,120
164,461,337
160,885,783

348,981,376
179,024,098
169,957,278

355,045,033
172,758,100
182,286,933

377,399,972
184,203,017
193,196,955

Demand.......................................................................................................................
Time............................................................................................................................




O
124,486,860
106,841,377
784,531

O
132,715,299
111,621,506
790,380

C)
138,370,425
114,738,550
837,081

(0
147,739,255
119,858,822
895,387

(0
155,194,386
125,341,342
957,210

O
166,401,889
131,217,061
999,966

(,)

CORPORATION

20,303,413

4,456,726

Savings deposits..............................................................................................................
Deposits accumulated for payment of personal loans.....................................................
Deposits of savings and loan associations.......................................................................
Other deposits of individuals, partnerships, and corporations........................................

>
117,596,062
101,648,557
765,933

INSURANCE

16,860,952

4,422,179

Individuals, partnerships, and corporations—tim e..............................

/

DEPOSIT

\ 15,181,572

Certified and officers' checks, letters of credit, travelers' checks, etc,

321,054,130
139,423,124
2,294,862
\137,128,262
175,687,053
138,032,101
1,078,235
f
922,485
\ 35,654,232
5,943,953

Deposits of savings and loan associations.......................................................................
Other deposits of individuals, partnerships, and corporations........................................

FEDERAL

June 30,
1964

June 30,
1962

L iabilities and capital

12,612,070

10,726,686

12,024,063

1,516,411

3,614,177

2,059,441

2,611,535

1,498,878
5,906,971

1,655,648
6,044,141

1,597,026
6,476,440

1,620,293
7,377,600

1,724,102
6,943,143

1,737,101
7,675,427

Total liabilities (excluding capital accounts).......................................

287,387,532

308,838,296

312,739,747

325,915,818

336,073,806

361,005,439

368,633,936

392,031,481

Capital accounts—to ta l......................................................................................
Capital stock, notes, and d e b e n tu re s .........................................................
S u rp lu s ................................................................................................................
Undivided p ro fits ..............................................................................................
R eserves.............................................................................................................

26,108,012
6,826,298
13,430,586
5,024,430
826,698

27,095,816
6,937,502
13,822,081
5,488,605
847,628

27,648,835
7,172,516
14,258,908
5,363,677
853,734

28,894,013
7,451,066
14,637,286
5,941,518
864,143

30,031,747
8,304,806
15,133,523
5,661,210
932,208

31,168,950
8,739,510
15,552,060
5,872,927
1,004,453

32,967,450
9,930,384
15,808,441
6,165,156
1,063,469

33,862,346
10,203,120
16,263,422
6,259,687
1,136,117

Captial stock, notes, and debentures:
Par or face value—to ta l..................................................................................
Common s to c k ...............................................................................................
Capital notes and d e b e n tu re s ...................................................................
P referred s to c k ..............................................................................................

6,826,598
6,789,688
22,090
14,820

6,937,802
6,882,362
20,646
34,794

7,172,816
7,114,462
21,094
37,260

7,451,366
7,282,980
130,547
37,839

8,305,106
7,745,231
521,404
38,471

8,739,510
7,886,432
811,331
41,747

9,930,384
8,368,486
1,520,921
40,977

10,203,120
8,507,770
1,655,460
39,890

N um b e r o f b a n k s .....................................................................................................

13,442

13,457

13,527

13,621

13,728

13,820

13,862

13,876

13,588,903
3,618,182 /
\
1,855,467
8,115,254

14,631,509
2,438,413
1,989,090
1,897,569
8,306,437

MEMORANDA

1 Not available.
2 Excludes as of December 31,1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "Other assets” .
3 Prior to December 31,1965, "Federal funds sold (loaned)” not reported separately; most were included with loans to banks.
4 Net of mortgages and other liens; previously included with “ Other liabilities” .
Back figures, 1934-1962: See the Annual Report for 1962, pp. 126-129, and earlier reports.

139




O BANKS
F

9,589,877

3,590,812

LIABILITIES

11,290,601

782,362

AD
N

8,188,211

ASSETS

Miscellaneous liabilities—to ta l........................................................................
Federal fu n d s purchased (b o rro w e d )..........................................................
O ther lia b ilitie s fo r borrow ed m o n e y ........................................................... }
A cceptances o u ts ta n d in g ...............................................................................
O ther lia b ilitie s ..................................................................................................

140

Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), DECEMBER AND JUNE CALL DATES, 1963 THROUGH 1965
(Amounts in thousands of dollars)
Insured mutual savings banks

Insured commercial banks
Assets

Cash, balances with other banks, and cash
collection items—to ta l...................................

Dec. 31,
1965

Dec. 20,
1963

June 30,
1964

Dec. 31,
1964

June 30,
1965

Dec. 31,
1965

311,790,848

321,083,191

345,130,205

352,795,164

375,394,111

43,018,983

45,022,362

47,044,184

48,806,222

50,499,716

50,445,462

52,969,638

60,032,916

56,667,724

60,436,719

721,513

799,112

893,139

909,658

904,000

4,053,057

4,552,579

4,551,889

4,990,981

4,865,803

104,083

118,913

138,843

124,745

142,598

17,149,613

16,773,717

17,580,743

17,842,470

17,992,395

11,644,517

12,005,653

14,090,586

12,246,917

14,354,186

441,946

458,698

476,644

430,462

493,600

484,817
255,865
22,483,653

141,043

179,277

224,274

310,391

212,193

34,441

42,224

53,378

44,060

55,609

59,209,832

4,324,018

4,316,203

4,110,452

3,975,485

3,759,961

208,768
19,074
217,234
354,585
115,721
14,190
537,123
1,423,462
1,296,853
137,008

208,369
274
239,473
322,221
101,005
10,642
774,718
1,222,311
1,266,641
170,549

232,494

306,770

309,700

128,164
280,349
92,527
11,515
850,449
1,107,233
1,241,155
166,566

101,696
133,205
85,234
6,622
877,817
1,090,004
1,257,229
116,908

146,292
89,827
67,037
31,850
851,953
975,170
1,177,097
111,035
5,010,410

367,817
298,992
16,931,466

433,514
365,678
18,838,497

558,335
300,841
22,950,522

385,858
259,824
20,941,674

Obligations of the U. S. Government, direct
and guaranteed—to ta l..................................

62,811,737

58,953,758

62,588,052

56,495,520

Direct:
Treasury bills...............................................
Treasury certificates of indebtedness —
Treasury notes maturing in 1 year or less
Treasury notes maturing after 1 year. ...
United States non-marketable bonds. . ..
Other bonds maturing in 1 year or less..
Other bonds maturing in 1 to 5 years —
Other bonds maturing in 5 to 10 years . ..
Other bonds maturing after 10 years. . ..
Guaranteed obligations.................................

10,999,429
1,651,564
5,921,023
16,402,791
277,927
1,141,495
12,931,738
12,244,036
1,137,045
104,689

8,994,405
32,171
6,313,028
16,742,337
267,411
1,862,679
12,021,002
11,487,935
1,097,971
134,819

13,301,211
7,097,197
11,872,107
247,362
1,904,040
14,766,228
12,481,688
778,067
140,152

7,110,395
7,501,922
230,805
999,112
16,168,820 I
14,393,676
1,113,357
103,711

Other securities—to ta l..........................................

34,660,292

36,056,681

38,371,648

41,810,605

44,440,876

5,040,575

5,064,308

5,014,656

5,084,663

29,611,314

31,230,057

33,343,807

36,350,723

38,480,349

410,862

385,271

367,846

339,342

300,273

3,099,001
3,503,243
931,823
784,083
491,175 |
795,800
270,477

3,446,144
762,790

3,739,048
4,513,114
818,470
| 21,447,413
902,364

712,425
3,003,773

714,095
2,977,749

749,219
2,904,732

841,684
2,826,595

842,356
2,731,805

Obligations of States and subdivisions.......
Securities of Federal agencies and corpora­
tions (not guaranteed by U. S .)................
Other bonds, notes, and debentures..........
Federal Reserve Bank stock........................
Other corporate stocks..................................
Total securities.




97,472,029

95,010,439

818,907
100,959,700

8,873,722 V

98,306,125

C
)

103,650,708

913,515

987,193

992,859

1,077,042

1,135,976

9,364,593

9,380,511

9,125,108

9,060,148

8,770,371

CORPORATION

June 30,
1965

INSURANCE

Dec. 31,
1964

DEPOSIT

Currency and coin...........................................
Reserve with Federal Reserve Banks (mem­
ber banks)...................................................
Demand balances with banks in the United
States (except private banks and Ameri­
can branches of foreign banks)............
Other balances with banks in the United
States...........................................................
Balances with banks in foreign countries...
Cash items in process of collection..............

June 30,
1964

FEDERAL

Total assets.

Dec. 20,
1963

164,480,262

175,096,194

188,118,000

201,114,143

32,299,615

34,050,304

36,233,052

37,910,437

39,964,343

3,552,676
178,648,870
43,733,086

3,625,878
191,743,878
46,271,346
2,772,387

4,011,273
205,125,416
49,393,933

218,740
32,518,355
31,892,036
46,848

211,839
34,262,143
33,706,284
47,698

209,774
36.442.826
35,823,288
48,629

210,257
38,180,694
37,478,506

2,303,251

3,249,257
167,729,519
41,447,444
2,535,533

46,086

209,331
40,173,674
39,435,679
46,819

7,047,238
2,817,152
16,380,889
10,539,675

7,106,329
2,754,793
17,734,238
11,316,551

7,243,497
18,810,798
12.377.719

7,352,529
2,664,910
20,137,423
13,344,097

7,592,405
2,637,439
21,929,584
14,346,493

9,969,510
9,500,673
9,386,663
2,988,342

10,673,879
9,844,191
9,958,944
3,181,572

11.527.827
10,129,274
10,739,893
3,377,665

10,336,092
11,392,036
3,537,644

12,911,024
10,427,383
12,245,612
3,804,841

3,594,633
9,441,479

2,840,826
10,435,192

3,420,989
10,849,646

3,682,834
11,378,627

15,617
7,016

19,004
8,751

16,228
9,322

11,588
10,938

12,505
14,342

O

(3
)

24,278

12,492

25,759

39,878

21,585

11,579

11,925

4,807

4,467

4,812

Loans ana aiscoums, nei—toiai.......................... 1M, 833,367
2,994,811
Valuation reserves.................................................
Loans and discounts, gross—total...................... 158,928,178
Real estate loans—total..................................... 39,088,205
Secured, by farm land........................................................
Secured by residential properties:
Insured by FHA ...........................................................
Guaranteed by V A .........................................................
Not insured or guaranteed by FHA or VA ..................
Secured by other properties...............................................

Loans to domestic commercial and foreign
banks................................................................
Loans to other financial institutions................
Federal funds sold (loaned)..............................
Loans to brokers and dealers in securities
Other loans for purchasing or carrying securi­
ties....................................................................
Loans to farmers directly guaranteed by the
Commodity Credit Corporation......................
Other loans to farmers (excluding loans on
real estate).......................................................
Commercial and industrial loans (including
open market paper)........................................
Other loans to individuals for personal expend­
itures—total..................................................
Passenger automobile instalment loans..............................
Other retail consumer instalment loans............................
Residential repair and modernization instalment loans...
Other instalment loans for personal expenditures.............
Single-payment loans for personal expenditures...............

All other loans (including overdrafts)...............

Miscellaneous assets—total.................................
Customers’ liability on acceptances out­
standing............................................................
Other assets........................................................

2 , 68 4 ,4 6 8

5,325,642

5,492,413

5,355,550

5,924,659

2,095,012
13,186,038
2,064,215
5,087,694

2,476,760

2,686,925

2,794,217

2,860,568

3,175,076

816,838

366,380

513,580

410,962

533,948

6,644,575

7,310,676

6,982,643

7,650,055

7,669,065

2,499

2,146

2,152

2,053

1,913

52,984,200

55,120,779

60,040,383

65,370,328

71,235,183

160,682

137,113

156,977

178,624

144,698

34,531,746
12,437,272
3,200,612
2,909,590
5,718,920
10,265,352
4,024,100

37,598,158
13,828,325
3,493,806
2,916,619
6,150,538
11,208,870
4,430,726

39,814,778
14.661.720
3,748,783
3,012,861

43,077,851
16,230,256
3,936,684
3,025,310
6,987,170
12,898,431
5,116,648

45,497,461
17,139,214
4,176,950
3,126,804
7,388,640
13,665,853
5,187,791

388,211
13,978
923

354,321
19,016
966
70,155
105,578
158,606
10,107

391,145
24,370
1,016
75,397
126,027
164,335
13,148

441,055
29,958
1,843

515,673
35,555
2,039

>
z
o

149,563
178,281
13,585

190,213
22,467

>

(3
)

0

4,394,800
3,082,103
863,387
89,334

6,441,204

11,950,210
5,143,998

259,490,701

276,055,894

286,424,125

4,587,288

4,753,588

4,982,772

C
)

C
)

304,764,851

0)

218,376
16,437

81,410




CO
CO

41,664,208

43,430,815

45,358,160

47,030,585

312,897
260,904
29,168
22,825

336,734
271,529
33,462
31,743

342,898
277,072
39,117
26,709

365,651
295,200
42,064
28,387

381,225
308,289
45,641
27,295

359,976
4,035,564

4,287,807

4,720,543

5,048,319

320.365

455,701

449,987

500,328

479,777

1,591,458
1,953,732

1,690,721
2,344,843

1,697,120
2,590,687

1,824,831
2,895,712

1,862,571
3,185,748

320.365

455701

449*987

500 *328

479^777

16.2%

16.5%

17.4%

16.1%

16.1%

1.9%

1. 8%

20.1
11.1
50.0

18.4
51.2
2.7

18.2
11.1
50.7
2.6

15.8
11.8
53.6
2.7

8 .2

8.0

16.0
11.9
53.3
2.7
8.3

8.0

11.7
75.1
1.5
8.3

12.7

12.4

12.2

11.7

9.4

8.1
12.8

m
co
O
~
r\
0D
>
7
Z
if)

3,545,190

2.6

00

48,734,714

PERCENTAGES
To total assets:
Cash and balances with other banks...............
U.S. Government obligations, direct and guar­
anteed...............................................................
Other securities..................................................
Loans and discounts..........................................
Other assets........................................................
Total capital accounts........................................
To total assets other than cash and U. S. Gov­
ernment obligations:
Total capital accounts........................................

>

CO

Total loans and securities....................... 253,405,396
Bank premises, furniture and fixtures, and
other real estate—total..................................
Bank premises....................................................
Furniture and fixtures........................................
Real estate owned other than bank premises.
Investments and other assets indirectly rep­
resenting bank premises or other real
estate................................................................

2 , 6 1 6,604

11.2

1.7%

10.0

1. 8%
9.6

1.9%

8.0

8.7
10.7
77.0
1.7
7.9

9.1

8.9

11.2
75.6

1.8

8.1
10.4
77.8
1.8
7.9

7.5
9.9
79.1
1.7
7.8
8.6

Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), DECEMBER AND JUNE CALL DATES, 1963 THROUGH 1965— CONTINUED
142

(Amounts in thousands of dollars)
Insured mutual savings banks

Insured commercial banks
Liabilities and capital

Dec. 20,
1963

Total liabilities and capital accounts...................
Business and personal deposits—to ta l............

Dec. 31,
1964

June 30,
1965

Dec. 31,
1965

June 30,
1965

Dec. 31,
1965

311,790,848

321,083,191

345,130,205

352,795,164

375,394,111

43,018,983

45,022,362

47,044,184

48,806,222

50,499,716

228,042,312

232,821,964

252,983,403

253,109,398

275,205,357

38,627,061

40,765,752

42,714,295

44,257,191

45,848,773

123,561,302

120,715,072

134,300,734

124,664,936

139,077,920

281,375

321,040

312,703

360,874

345,204

\

0)

100,033,046

107,304,540

11? 804,696

122,516,457

76,413,701
836,450

79,447,955
894,700

82,966,971
956,410

87,355,589
999,892

Other deposits of individuals, partnerships, and cor­ > 22,782,895
porations .....................................................................

26,961,885

28,881,315

34,160,976

partnerships,

and

Deposits accumulated for payment of personal loans. . . .

}

(,)

\136,783,058

281,375

321,040

312,703

360,874

345,204

130,195,436

38,337,379

40,434,715

42,389,690

43,885,432

45,491,617

92,554,897
1,078,207
922,485

38,324,849
631

40,410,867
687

42,374,371
800

43,861,472
74

45,477,204
28

( 35,639,847

11,899

23,161

14,519

23,886

14,385

/

4,447,964

4,802,352

5,877,973

5,928,005

5,932,001

8,307

9,997

11,902

10,885

11,952

Government deposits—to ta l................................

27,142,510

31,735,033

30,068,312

35,890,424

32,216,843

28,767

29,255

34,844

34,414

37,131

United States Government—demand .........
United States Government—tim e..................
States and subdivisions—demand................
States and subdivisions—tim e.......................

6,729,214
268,203
12,261,389
7,883,704

10,251,709
257,556
12,561,082
8,664,686

6,500,876
270,832
13,497,662
9,798,942

11,776,596
277,179
13,279,920
10,556,729

5,523,816
281,330
14,241,724
12,169,973

5,025
97
2,046
21,599

6,152
18
1,500
21,585

6,574
152
1,584
26,534

6,138
235
1,735
26,306

6,795
407
2,079
27,850

Domestic interbank and postal savings de­
posits—total .....................................................

14,268,764

14,259,755

16,754,488

15,250,503

17,311,718

1,236

1,468

1,960

1,520

1,387

Commercial banks in the U. S.—dem and...
Commercial banks in the U. S.—time .......
Mutual savings banks in the U. S.—demand.
Mutual savings banks in the U. S.—tim e ....
Postal savings

13,323,080
268,710
610,294
49,252
17,428

13,051,094
357,725
749,168
82,561
19,207

15,492,798
382,943
740,382
118,835
19,530

13,785,209
456,337
773,584
217,469
17,904

15,779,062
510,159
860,378
162,119
o

32
1,204

61
1,407

88
1,872

99
1,421

122
1,265

Foreign government and bank deposits —
total
...
............................

5,193,043

5,733,851

6,424,074

6,501,554

6,778,763

55

42

29

841,590

675,575

826,137

782,635

892,867

22

41

29

3,045,415
1,177,311
128,727

3,574,254
1,316,493
167,529

3,893,693
1,454,685
249,559

4,054,156
1,387,455
277,308

4,086,126
1,529,097
270,673

33

Total deposits .................................................. 274,646,629
Demand. . ..
........................................................ 162,952,144
Time..........
........................................................ 111,694,485

284,550,603
164,122,545
120,428,058

306,230,277
178,691,247
127,539,030

310,751,879
172,378,340
138,373,539

331,512,681
183,836,865
147,675,816

38,657,119
296,807
38,360,312

Foreign governments, central banks, etc.—
demand
......................................
Foreign governments, central banks, etc.—
time
Banks in foreign countries—demand
Banks in foreign countries—time




1
40,796,517
338,792
40,457,725

42,751,099
332,851
42,418,248

44,293,154
379,760
43,913,394

45,887,291
366,152
45,521,139

CORPORATION

Certified and officers’ checks, letters of
credit, travelers' checks, etc....................

INSURANCE

C)

Other deposits of individuals,

Individuals, partnerships, and corporations
—tim e.........................................................

DEPOSIT

C)

/ 2,294,862

FEDERAL

Dec. 31,
1964

Individuals, partnerships, and corporations
—demand...................................................

Dec. 20,
1963

June 30,
1964

June 30,
1964

10,118,845

11,461,821

2,039,406

2,591,133

1,724,102
6,355,337

1,737,101
7,133,587

12,923,639
3,575,541 /
\
1,855,467
7,492,631

13,976,496
2,438,413
1,898,290
1,897,569
7,742,224

790,247

607,841

562,242

665,264

37,647

20,035

20,402

42,641

90,800

752,600

587,806

541,840

622,623

564,213

655,013

317,692,098

323,675,518

345,489,177

39,447,366

41,404,358

43,313,341

44,958,418

46,542,304

26,413,743
8,304,128
12,551,781
4,913,133
644,701

27,438,107
8,738,836
12,893,189
5,113,007
693,075

29,119,646
9,929,447
13,082,209
5,362,653
745,337

29,904,934
10,200,361
13,464,797
5,437,575
802,201

3,571,617
533
2,473,815
828,115
269,154

3,618,004
678
2,581,742
748,077
287,507

3,730,843
674
2,658,871
759,920
311,378

3,847,804
937
2,726,232
802,503
318,132

3,957,412
2,759
2,798,625
822,112
333,916

Capital stock, notes, and debentures:
Par or face value—to ta l.....................................
C om m on s to c k .................................................
Capital notes and d e b e n tu re s ......................
P referred s to c k ................................................

7,450,833
7,282,980
130,014
37,839

8,304,428
7,745,231
520,726
38,471

8,738,836
7,886,432
810,657
41,747

9,929,447
8,368,486
1,519,984
40,977

10,200,361
8,507,770
1,652,701
39,890

533

678

674

937

2,759

533

678

674

937

2,759

N um b e r of b a n k s ........................................................

13,291

13,401

13,493

13,535

13,547

330

327

327

327

329

MEMORANDA

1 Not available.
2 Excludes as of December 31,1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "Other assets” .
3 Prior to December 31,1965, "Federal funds sold (loaned)” not reported separately; most were included with loans to banks.
4 Net of mortgages and other liens; previously included with "Other liabilities” .
Back figures, 1984-1963: See the Annual Report for 1963, pp. 140-143, and earlier reports.

143




O BANKS
F

294,669,448

25,322,396
7,450,533
12,163,471
5,113,403
594,989

LIABILITIES

286,468,452

Capital accounts—to ta l.........................................
Capital stock, notes, and d e b e n tu re s ...........
S u rp lu s ...................................................................
U ndivided p ro fits .................................................
R eserves................................................................

AD
N

Total liabilities (excluding capital ac­
counts) ............................................................

ASSETS

Miscellaneous liabilities—to ta l...........................
11,821,823
Federal fu n d s purchased (b o rro w e d )...........
} 3,576,530
O ther lia b ilitie s fo r borrow ed m o n e y .............
Acceptances o u ts ta n d in g ..................................
1,620,293
O ther lia b ilitie s .....................................................
6,625,000

1
44

Table 109. AVERAGE ASSETS AND LIABILITIES AND ASSETS AND LIABILITIES PER $100 OF TOTAL ASSETS OF INSURED
COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965
BY CLASS OF BANK
M em bers F.R. System
A sset or lia b ility item
Average assets and liabilities (in thousands of dollars) 1
Assets—to ta l........................................................................................................................................................................................

National

State

Not
m em bers
F.R. System

89,789,067
15,863,727
12,959,311
10,338,330
47,927,616
2,700,083

57,701,776
7,097,723
13,726,920
6,884,790
28,887,583
1,104,760

Liabilities and capital—total
.....................................................................................................................................................
Total d e p o s its ....................................................................................................................................................................................................
Demand deposits . .
.
....
.........................................................................................................................................................
Time and savings deposits .................................................................................................................................................................................
B orrow ings and o th e r lia b ilitie s ..................................................................................................................................................
Total capital a c c o u n ts ....................................................................................................................................................................

357,214,409
315,643,533
178,089,360
137,554,173
12,750,015
28,820,861

209,723,566
185,333,844
104,888,829
80,445,015
7,597,295
16,792,427

89,789,067
78,327,285
45,809,958
32,517,327
4,215,451
7,246,331

57,701,776
51,982,404
27,390,573
24,591,831
937,269
4,782,103

Assets and liabilities per $100 of total assets1
Assets—total . .
.......................................................................................................................................................
Cash and due fro m banks
.....................................................................................................................................................
U nited States G o vernm ent o b lig a tio n s .....................................................................................................................................
O ther se cu ritie s2
..................................................................................................................................................................
Loans and disco u n ts ....................................................................................................................................................................
All o th e r assets
......................................................................................................................................................................

$100.00
16.52
16.63
11.63
52.54
2.68

$100.00
17.19
15.61
11.60
52.85
2.75

$100.00
17.67
14.43
11.51
53.38
3.01

$100.00
12.30
23.79
11.93
50.06
1.92

Liabilities and capital—total .......................................................................................................................................................
Total d e p o s its ..................................................................................................................................................................................
Demand deposits...................................................................................................................................................................................................
Time and savings deposits....................................................................................................................................................................................
B orrow ings and o th e r lia b ilitie s ..................................................................................................................................................
Total capital a c c o u n ts ....................................................................................................................................................................

$100.00
88.36
49.85
38.51
3.57
8.07

$100.00
88.37
50.01
38.36
3.62
8.01

$100.00
87.23
51.02
36.21
4.70
8.07

$100.00
90.09
47.47
42.62
1.62
8.29

1 Asset and liability items are averages of the amounts reported for the following call dates: December 31,1964; June 30,1965; and December 31,1965.
2 Excludes as of December 31,1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ All other assets” .
Note: For income data by class of bank, see Tables 115 and 116, pp. 156-159.
Back figures, 1934-1964: See Tables 113 and 114, pp. 152-155; the Annual Report for 1964, p. 186; and earlier reports.




CORPORATION

209,723,566
36,052,146
32,733,320
24,317,652
110,846,392
5,774,056

INSURANCE

357,214,409
59,013,596
59,419,551
41,540,772
187,661,591
9,578,899

DEPOSIT

U nited States G overnm ent o b lig a tio n s .....................................................................................................................................
O the r se cu ritie s2.............................................................................................................................................................................
Loans and disco u n ts
...................................................................................................................................................
All o th e r assets
...................................................................................................................................................

FEDERAL

Total

Table 110. ASSETS AND LIABILITIES AND ASSETS AND LIABILITIES PER $100 OF TOTAL ASSETS OF INSURED COMMERCIAL BANKS
OPERATING THROUGHOUT 1965 IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits o f—
Asset or lia b ility item

All
b a n ks1

Less
than
$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
$25,000,000

$25,000,000
to
$50,000,000

$50,000,000
to
$100,000,000

$100,000,000
to
$500,000,000

$500,000,000
or
more

23,741,467
3,314,447
5,797,710
3,018,538
11,215,891
394,881

38,878,993
5,151,557
8,543,127
5,306,693
19,139,674
737,942

26,118,929
3,456,325
5,316,455
3,543,296
13,276,232
526,621

24,963,647
3,533,788
4,662,523
3,253,062
12,991,328
522,946

68,798,509
11,213,644
10,499,726
8,255,868
37,277,412
1,551,859

171,872,406
30,689,676
18,649,843
19,057,344
97,367,027
6,108,516

Liabilities and capital—to ta l................................... 373,994,597
Total d e p o s its ........................................................... 330,309,463
Demand deposits............................................................... 183,232,016
Time and savings deposits................................................ 147,077,447
13,917,033
Borrowings and o th e r lia b ilitie s ..........................
Total capital a cco u n ts............................................ 29,768,101

447,353
388,846
272,316
116,530
1,984
56,523

3,054,395
2,707,335
1,659,993
1,047,342
16,057
331,003

16,118,898
14,468,893
7,988,085
6,480,808
129,338
1,520,667

23,741,467
21,501,660
11,376,776
10,124,884
253,479
1,986,328

38,878,993
35,278,953
18,082,820
17,196,133
610,503
2,989,537

26,118,929
23,637,742
12,308,007
11,329,735
548,895
1,932,292

24,963,647
22,529,077
11,958,187
10,570,890
579,127
1,855,443

68,798,509
61,485,591
35,251,517
26,234,074
2,027,213
5,285,705

171,872,406
148,311,366
84,334,315
63,977,051
9,750,437
13,810,603

Assets and liabilities per
$100 of total assets
Assets—to ta l................................................................
Cash and due fro m b a n k s ....................................
U nited States G overnm ent o b lig a tio n s .............
Other se curitie s2......................................................
Loans and d is c o u n ts ..............................................
All other a s s e ts ........................................................

$100.00
16.12
15.78
11.86
53.53
2.71

$100.00
19.00
31.55
6.02
42.50
.93

$100.00
15.55
30.92
7.69
44.75
1.09

$100.00
14.63
27.65
10.35
45.86
1.51

$100.00
13.96
24.42
12.72
47.24
1.66

$100.00
13.25
21.97
13.65
49.23
1.90

$100.00
13.23
20.35
13.57
50.83
2.02

$100.00
14.16
18.68
13.03
52.04
2.09

$100.00
16.30
15.26
12.00
54.18
2.26

$100.00
17.86
10.85
11.09
56.65
3.55

Liabilities and capital—to ta l...................................
Total d e p o s its ..........................................................
Demand deposits...............................................................
Time and savings deposits................................................
Borrowings and oth e r lia b ilitie s ..........................
Total capital a c c o u n ts ............................................

$100.00
88.32
48.99
89.33
3.72
7.96

$100.00
86.92
60.87
26.05
.44
12.64

$100.00
88.64
54.35
34.29
.52
10.84

$100.00
89.76
49.56
.80
9.44

$100.00
90.57
47.92
42.65
1.07
8.36

$100.00
90.74
46.51
44-23
1.57
7.69

$100.00
90.50
47.12
43.38
2.10
7.40

$100.00
90.25
47.90
42.35
2.32
7.43

$100.00
89.37
51.24
38.13
2.95
7.68

$100.00
86.29
49.07
37.22
5.67
8.04

N um ber of banks, December 3 1 ............................

13,366

521

1,790

4,301

3,046

2,295

691

330

302

90

40.20




145

1This group of banks is the same as the group shown in Table 115 under the heading “ Operating throughout the year". These ratios differ slightly from the ratios for all insured commercial banks shown in Table
2 Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "All other assets” .
Note: For income and expense data by size of bank, see Tables 117 and 118, pp. 160-163.
Back figures, 1941-1964: See the Annual Report for 1964, p. 187, and earlier reports.

O BANKS
F

16,118,898
2,357,381
4,457,141
1,668,837
7,391,564
243,975

LIABILITIES

3,054,395
474,996
944,466
234,891
1,366,929
33,113

AD
N

447,353
84,984
141,125
26,920
190,135
4,189

ASSETS

Assets and liabilities (in
thousands of dollars)
Assets—to ta l................................................................ 373,994,597
60,276,798
Cash and due fro m b a n k s ....................................
United States Government o b lig a tio n s ............. 59,012,116
Other securities2...................................................... 44,365,449
Loans and d is c o u n ts .............................................. 200,216,192
10,124,042
All o ther a s s e ts ........................................................

146

Table 111. AVERAGE ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), BY STATE,1965 1
(Amounts in thousands of dollars)
Liabilities and capital a c c o u n ts 1

A sse ts 1
State

59,013,596

U.S. Gov­
e rn m e n t
o bligations

Other
securities2

Loans
and
discounts

All
o th e r
assets

59,419,551

41,540,772

187,661,591

9,578,899

Total
Total

Demand

Tim e and
savings

Borrow ings
and o ther
liab ilitie s

Total
capital
accounts

357,214,409

315,643,533

178,089,360

137,554,173

12,750,015

28,820,861

177,784,544

137,169,384

12,718,396

28,749,342

41,473,943

187,142,758

9,549,462

356,421,666

90,081

66,829

518,833

29,437

792,743

689,605

304,816

384,789

31,619

71,519

State
A la b a m a .............................................
A la s k a .................................................
A riz o n a ................................................
A rka nsa s............................................
C a lifo rn ia ............................................

564,833
47,167
293,226
421,140
5,560,484

686,742
72,157
254,679
339,053
5,147,517

440,958
38,484
215,320
288,541
3,904,948

1,581,887
175,884
1,411,818
1,018,987
22,812,318

60,199
12,335
84,968
33,792
1,279,503

3,334,619
346,027
2,260,011
2,101,513
38,704,770

3,001,159
320,515
2,023,561
1,912,249
34,457,175

1,855,558
170,584
1,032,196
1,248,918
15,338,618

1,145,601
149,931
991,365
663,331
19,118,557

51,962
5,844
53,928
18,707
1,393,132

281,498
19,668
182,522
170,557
2,854,463

C olorado.............................................
C on n e cticu t.......................................
D elaware.............................................
D istrict of C olu m b ia ........................
F lo rid a .................................................

530,643
564,675
197,453
427,448
1,423,370

538,113
465,927
227,202
545,436
1,863,206

236,557
480,968
119,675
113,808
862,364

1,673,812
2,076,514
495,550
1,277,264
3,522,614

79,906
85,212
21,367
43,626
235,646

3,059,031
3,673,296
1,061,247
2,407,582
7,907,200

2,748,835
3,233,533
934,614
2,179,264
7,100,633

1,562,119
2,080,235
685,191
1,420,269
4,323,428

1,186,716
1,153,298
249,423
758,995
2,777,205

61,099
134,858
28,979
52,040
170,957

249,097
304,905
97,654
176,278
635,610

G eorgia...............................................
Hawaii .............................................
Idaho
.............................................
Illinois ................................................
In d ia n a ...............................................

919,443
137,015
124,096
4,048,068
1,177,452

796,832
159,867
169,333
5,567,455
1,896,960

451,906
103,636
85,907
3,511,843
687,211

2,564,097
618,056
532,525
13,453,980
3,416,129

115,545
56,757
22,826
597,538
118,710

4,847,823
1,075,331
934,687
27,178,884
7,296,462

4,284,913
936,303
850,788
24,328,123
6,517,201

2,767,834
483,759
493,417
13,185,311
3,824,089

1,517,079
452,544
357,371
11,142,812
2,693,112

131,588
33,578
16,615
810,505
231,714

431,322
105,450
67,284
2,040,256
547,547

Iowa
...................
K ansas................................................
K e n tu c k y ............................................
Louisiana
...............
M a in e ..................................................

727,430
559,537
699,672
881,484
115,084

1,093,777
836,278
801,674
954,427
155,220

514,027
465,522
336,022
493,903
97,539

2,245,310
1,650,280
1,663,364
2,039,179
511,885

55,279
44,212
51,638
76,117
20,739

4,635,823
3,555,829
3,552,370
4,445,110
900,467

4,199,585
3,200,069
3,208,665
4,016,944
792,441

2,501,900
2,063,007
2,180,683
2,744,818
415,358

1,697,685
1,137,062
1,027,982
1,272,126
377,083

36,036
32,058
37,559
71,961
28,187

400,202
323,702
306,146
356,205
79,839

M a ryla n d ............................................
M a ssachusetts.................................
M ichigan
...................
M innesota
...................
M is s issip p i.........................................

575,371
1,487,700
1,936,326
1,046,395
362,752

679,596
1,108,544
2,986,828
1,344,282
383,511

380,316
682,271
1,855,377
763,578
332,214

1,999,243
4,469,895
7,606,234
3,132,571
995,507

71,771
217,305
274,364
122,171
46,829

3,706,297
7,965,715
14,659,129
6,408,997
2,120,813

3,325,360
6,786,582
13,359,128
5,760,894
1,922,267

2,035,153
5,022,967
5,790,181
3,056,335
1,255,056

1,290,207
1,763,615
7,568,947
2,704,559
667,211

86,305
455,024
312,402
148,049
31,352

294,632
724,109
987,599
500,054
167,194

CORPORATION

59,329,470

87,563

INSURANCE

58,926,033

Other a re a s ...........................................

DEPOSIT

50 States and D. C..............................

314,953,928




FEDERAL

Total United States............................

Cash and
due fro m
banks

Deposits

Missouri...........
Montana...........
Nebraska..........
Nevada..............
New Hampshire

1,607,988
165,556
448,441
94,519
84,398

1,761,070
252,777
479,720
134,728
94,465

1,096,738
126,668
233,699
73,899
44,581

4,354,697
599,687
1,253,542
419,791
388,221

142,333
25,709
38,577
27,029

New Jersey.......
New Mexico....
New York.........
North Carolina. .
North Dakota...

1,306,012
157,027
13,787,126
816,897
105,209

1,814,423
212,174
7,911,920
637,644
247,646

1,721,069
91,628
8,709,479
605,146
145,510

Ohio..................
Oklahoma........
Oregon.............
Pennsylvania...
Rhode Island...

2,499,080
835,378
441,837
3,186,231
152,526

3,220,775
783,603
506,068
3,507,993
137,545

South Carolina.
South Dakota. . .
Tennessee.......
Texas................
Utah.................

279,021
137,320
985,487
3,900,169
238,130

176,303
26,110
46,818
14,290
23,619

755,708
84,341
222,046
59,451
59,708

5,734,338
538,614
39,100,440
2,531,516
468,834

203,954
22,909
3,045,302
120,912
21,629

10,779,796
1,022,352
72,554,267
4,712,115
988,828

9,652,239
929,478
61,294,088
4,122,362
898,204

4,879,191
573,638
37,235,584
2.561.995
472,886

4,773,048
355,840
24,058,504
1,560,367
425,318

315,052
16,102
5,176,820
192,967
13,811

812,505
76,772
6,083,359
396,786
76,813

1,981,499
399,348
345,430
3,093,085
250,018

8,644,318
1,921,573
1,659,578
11,558,718
761,730

278,612
71,405
104,328
453,200
20,174

16,624,284
4,011,307
3,057,241
21,799,227
1,321,993

14,886,545
3,569,719
2,769,801
19,173,692
1,162,817

7,645,008
2,390,676
1,305,366
9,981,962
540,034

7,241,537
1,179,043
1,464,435
9,191,730
622,783

372,583
70,235
71,101
678,541
57,937

1,365,156
371,353
216,339
1,946,994
101,239

285,935
298,459
919,937
2,934,287
184,817

189,800
104,912
605,616
2,050,864
150,896

758,532
543,063
2,716,587
9,441,865
848,635

33,361
21,246
97,340
542,845
28,733

1,546,649
1,105,000
5,324,967
18,870,030
1,451,211

1,364,868
1,004,777
4,796,549
16,884,929
1,312,538

1,058,952
547,725
2,749,266
10,775,045
653,943

305,916
457,052
2,047,283
6,109,884
658,595

44,188
12,997
126,269
442,530
27,132

137,593
87,226
402,149
1,542,571
111,541

57,980
771,044
670,342
283,421
984,984
101,646

96,902
898,987
653,804
565,230
1,574,057
139,888

59,185
577,149
398,394
195,761
720,628
40,046

371,155
2,936,325
2,190,412
844,150
3,311,462
300,072

10,328
107,850
113,901
37,231
127,250
13,838

595,550
5,291,355
4,026,853
1,925,793
6,718,381
595,490

537,891
4,736,232
3,617,462
1,704,458
6,108,144
534,784

185,048
2,479,200
2,031,921
988,454
3,022,515
292,491

352,843
2,257,032
1,585,541
716,004
3,085,629
242,293

10,453
121,079
96,515
32,659
109,018

47,206
434,044
312,876
188,676
501,219
51,878

84,763
2,800

83,132
6,949

65,613
1,216

498,569
20,264

29,005
432

761,082
31,661

661,769
27,836

295,381
9,435

366,388
18,401

29,987
1,632

69,326
2,193

Other area

Puerto Rico.......
Virgin Islands. . .

O BANKS
F

2,938,821
477,056
653,716
310,262
235,035

LIABILITIES

5.091.994
582,890
1,531,399
365,963
304,414

AD
N

8,030,815
1,059,946
2,185,115
676,225
539,449

ASSETS

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

11,111

8,962,826
1,170,397
2,453,979
749,966
622,776

1Asset and liability items are averages of the amounts reported for the following'call dates: December 31,1964; June 30,1965; and December 31,1965.
2 Excludes as of December 31, 1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ All other assets”’.
Note: For income data by State, see Table 119, pp. 164-173.
Back figures, 1946-1964: See the Annual Report for 1964, pp. 188-189, and earlier reports.

147




148

Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1965
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS
Num ber of banks with deposits of—
Ratios

All
banks

$1,000,000
to
$2,000,000

$2,000,000
to
$5,000,000

$5,000,000
to

$25,000,000
to
$50,000,000

$50,000,000
to
$100,000,000

$100,000,000
to
$500,000,000

$500,000,000
or
more

1
6
39
33
6
5

235
65
153
67
17
17
4

472
296
604
295
119
40
29

638
393
1,123
1,121
666
267
147

186
84
452
938
867
347
189

63
42
269
712
690
367
158

9
5
65
223
229
118
44

4
4
30
103
123
52
14

2
3
17
118
109
38
16

Ratios of U. S. Government obligations to total
assets of—
Less than 10 percent
10 to 20 percent
20 to 30 percent
30 to 40 percent
..................
4 0 to 50 p e rc e n t............................................................
50 to 60 p e rc e n t............................................................
60 p e rce n t or m o re ......................................................

865
3,874
4,406
2,743
1,142
392
126

33
101
140
126
90
43
25

92
321
493
502
276
127
44

257
930
1,372
1,099
494
163
40

175
904
1,154
584
194
42
10

156
861
863
327
73
15
6

49
320
240
76
6
2

30
188
83
22
7

43
193
57
7
2

Ratios of loans to total assets of—
Less th a n 10 p e rc e n t.....................
10 to 20 p e rc e n t..............................
20 to 30 p e rc e n t..............................
30 to 40 p e rc e n t..............................
40 to 50 p e rc e n t..............................
50 to 60 p e rc e n t..............................
60 percent or m o re .........................

29
193
838
2,475
4,387
3,993
1,633

16
24
68
140
142
122
46

4
45
188
397
589
436
196

6
73
334
944
1,396
1,109
493

1
33
167
558
1,072
871
361

2
12
63
337
799
774
314

Ratios of cash and due from banks to total assets ofLess than 10 p e rc e n t...................................................
10 to 15 percent
15 to 20 percent
20 to 25 percent
25 to 30 percent
30 to 35 percent
35 percent or more.

3,015
5,334
3,071
1,353
462
175
138

62
144
148
90
38
36
40

357
687
413
219
95
48
36

955
1,655
1,043
439
170
56
37




721
1,250
702
279
72
22

17

612
1,014
450
174
43
5
3

30
56
4

1

2
8
66
235
291
91

3
8
19
84
151
65

1
2
12
64
171
53

166
329
139
50
9

85
130
65
40
9

54
100
80
42
16
7
4

1

2
6
68
14
3
25
31
20
10
1

CORPORATION

1,609
893
2,719
3,616
2,853
1,252
606

INSURANCE

Ratios of obligations of States and subdivisions to
total assets of—
Z e ro .....................................................................................
More than zero b u t less than 1 p e rc e n t...................
1 to 5 p e rc e n t...................................................................
5 to 10 p e rc e n t................................................................
10 to 15 p e rc e n t..............................
15 to 20 p e rc e n t..............................................................
20 percent or m o re ........................................................

DEPOSIT

to
$25,000,000

$ 10,000,000

$ 10 ,000,000

FEDERAL

Less
than
$1,000,000

1,860
5,774
3,100
1,332
623
339
193
327

4
61
102
110
62
65
41
113

40
385
535
355
209
133
65
133

236
1,595
1,391
625
266
103
69
70

446
1,671
664
171
61
27
15
8

629
1,278
309
52
17
10
3
3

259
362
59
10
3

128
173
20
5
4

96
184
17
4
1
1

22
65
3

Ratios of total capital accounts to total assets other
than cash and due from banks, U. S. Govern­
ment obligations, C.C.C. loans, and F.H.A. and
V.A. real estate loans of—
Less than 10 percent...................................................
10 to 15 percent...........................................................
15 to 20 percent............................................................
20 to 25 percent............................................................
25 to 30 percent...........................................................
3 0 to 3 5 percent...........................................................
35 to 4 0 percent...........................................................
40 percent or m ore......................................................

1,533
5,669
3,208
1,456
711
373
207
391

4
49
95
110
65
59
38
138

35
328
503
378
238
148
70
155

195
1,472
1,406
687
308
121
81
85

362
1,649
730
193
73
33
13
10

536
1,317
347
64
18
11
5
3

217
387
72
14
3

103
191
27
4
5

71
202
22
6
1
1

10
74
6

Ratios of total capital accounts to total assets of—
Less than 4 percent......................................................
4 to 6 percent.................................................................
6 to 8 percent.................................................................
8 to 10 percent..............................................................
to 12 percent............................................................
12 to 15 percent............................................................
15 percent or m ore......................................................

47
1,010
4,707
4,074
1,969
1,065
676

2
2
42
100
125
145
142

1
19
327
520
427
321
240

7
139
1,243
1,490
853
409
214

8
255
1,321
965
338
118
58

12
364
1,074
621
160
50
20

8
136
331
173
32
11
2

8
47
175
81
12
7

1
43
154
86
15
4

5
40
38
7

13,548

558

1,855

4,355

3,063

2,301

693

330

303

90

LIABILITIES
O BANKS
F

Number of banks.

AN
D

1
0

ASSETS

Ratios of total capital accounts to total assets other
than cash and due from banks and U. S. Govern­
ment obligations of—
Less than 10 percent........................................
10 to 15 percent.................................................
15 to 20 percent.................................................
20 to 25 percent.................................................
25 to 30 percent.................................................
30 to 35 percent.................................................
35 to 40 percent.................................................
40 percent or m ore............................................

Back figures, 1958-1964: See the Annual Report for 1964, pp. 190-191, and earlier reports.

149




Table 113.
Table 114.

Table 118.

Table 120.
Table 121.




CORPORATION

Table 119.

INSURANCE

Table 117.

DEPOSIT

Table 116.

FEDERAL

Table 115.

Income of insured commercial banks in the United States (States and other
areas), 1957-1965
Ratios of income of insured commercial banks in the United States (States
and other areas), 1957-1965
Income of insured commercial banks in the United States (States and other
areas), 1965
By class of bank
Ratios of income of insured commercial banks in the United States (States
and other areas), 1965
By class of bank
Income of insured commercial banks operating throughout 1965 in the
United States (States and other areas)
Banks grouped according to amount of deposits
Ratios of income of insured commercial banks operating throughout 1965
in the United States (States and other areas)
Banks grouped according to amount of deposits
Income of insured commercial banks in the United States (States and other
areas), by State, 1965
Income of insured mutual savings banks, 1957-1965
Ratios of income of insured mutual savings banks, 1957-1965

150

INCOME OF INSURED BANKS

The income data received and published by the Corporation relate
to commercial and mutual savings banks insured by the Corporation.

INSURED
BANKS

The present report of income and dividends for mutual savings
banks was first used by the Corporation for the calendar year 1951.
For a discussion of the history and principles of this report see pp.
50-52 in Part Two of the 1951 Annual Report.

O
F

Sources of data
National banks and State banks in the District of Columbia not
members of the Federal Reserve System: Office of the Comptroller
of the Currency.
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.

151




Mutual savings banks

INCOME

Commercial banks
Reports of income and dividends are submitted to the Federal
supervisory agencies on either a cash or an accrual basis.
Income 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 year. Data for 4
insured branches in Guam of 2 insured banks in California and
Hawaii, for 6 insured branches in New York of 2 insured banks in
Puerto Rico, for 15 insured branches in Puerto Rico and for 4
insured branches in the Virgin Islands of insured banks in New
York are not available.
The uniform Report of Income and Dividends (formerly called
Report of Earnings and Dividends was revised extensively in 1961.
New items were added, combining components previously included
in other items; and some items were subsumed into new categories.
Thus certain items, even carrying the same designation (e.g. other
current operating expenses), are not comparable with data reported
for prior years.
The revised form breaks out the following items not previously
available separately: (1) benefits to officers and other employees;
(2) net occupancy expense of bank premises, with a supporting
schedule; (3) furniture and equipment expense (including costs
related to the purchase or rental of automated data processing
systems); and (4) losses on securities sold.
Two expense items previously reported separately have been com­
bined with other items: (1) taxes other than on net income; and

(2) recurring depreciation on banking house, furniture and fixtures.
Taxes on bank premises, social security taxes paid in behalf of
building employees, and recurring depreciation on banking house
are now included under occupancy expense of bank premises. Other
social security taxes are included with officer and employee benefits.
Recurring depreciation on furniture and fixtures is now included
with furniture and equipment expense.
Revenue and expenses incident to “ Federal funds” transactions
have been classified as “ Interest and discount on loans” and “ In­
terest and discount on borrowed money,” respectively.
In addition to other minor changes in classification, new designa­
tions have been given to certain items. For example, the term “ net
income” is the new equivalent of the former term “ net profits.” A
further change entailed the division of officers and other employees
into two groups: those engaged in banking operations, and those
concerned with building operations.

Table 113. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1957-1965

Incom e item

1957

1958

1959

152

(Amounts in thousands of dollars)
1960

1961

1962

1963

1964

1965

10,723,545
1,790,341
578,783
6,698,655
108,655
589,954
218,566
460,251
278,340

11,069,604
1,901,732
629,134
6,891,442
117,259
630,458
223,283
502,871
473,425

12,218,959
2,093,207
759,030
7,578,200
139,645
681,243
237,446
543,916
>186,272

13,509,713
2,176,454
921,060
8,516,837
155,478
728,857
248,362
573,252
>189,413

15,024,487
2,240,389
1,085,334
9,612,079
173,159
781,405
280,289
629,694
>222,138

16,817,187
2,224,711
1,285,287
10,999,867
204,996
842,775
304,276
689,628
1265,647

Current operating expenses—to ta l...............................................
Salaries—o ffic e rs ............................................................................
Salaries and wages—oth e r e m p lo y e e s .....................................
O fficer and em ployee b e n e fits ....................................................
Fees paid to d ire cto rs and c o m m itte e s ....................................
In te re st on tim e and savings d e p o s its .....................................
In te re st on borrow ed m o n e y .......................................................
Taxes o th e r than on net in c o m e .................................................
R ecurring depreciation on b anking house, fu rn itu re and
fix tu re s ...........................................................................................
Occupancy expense of bank prem ises—n e t...........................
Furniture and e q u ip m e n t.............................................................
Other c u rre n t o pe ra tin g expe n se s.............................................

5,119,182
773,769
1,493,778
(3
)
45,396
1,141,715
49,538
205,903

5,612,723
827,142
1,573,330
(3
)
48,271
1,380,575
24,161
221,571

6,264,207
892,657
1,684,159
(3
)
51,866
1,580,250
78,350
252,763

6,932,820
966,643
1,831,323
(*)
56,292
1,785,086
87,385
285,801

7,440,492
21,028,869
21,869,961
377,494
59,794
2,106,645
37,997
(4
)

8,589,177
21,098,146
21,975,406
419,098
63,236
2,845,283
64,325
(4
)

9,714,980
21,183,264
2 ,101,111
2
457,033
67,469
3,464,308
106,517
(4
)

10,897,460
21,284,140
2
2,234,922
490,732
72,176
4,088,061
127,277
(4
)

12,486,120
2 1,392,765
22,369,259
525,692
77,093
5,070,781
189,519
(4
)

146,262
(6
)
(7
)
1,262,823

168,371
C)
5
(7
)
1,369,305

191,424
(6
)
(7
)
1,532,739

212,493
(6
)
(7
)
1,707,797

(5
)
510,691
224,852
81,224,189

(5
)
555,670
267,885
*1,300,128

(5
)
608,462
311,518
81,415,298

(5
)
670,243
362,301
*1,567,608

(5
)
731,573
411,889
8 1,717,549

Net current operating earnings......................................................

2,931,235

2,888,223

3,405,145

3,790,725

3,629,112

3,629,782

3,794,733

4,127,027

4,331,067

198,413

868,115

328,889

574,826

708,171

467,061

468,450

322,104

390,368

64,368
9,295
20,751

681,554
9,646
57,145

47,277
27,946
111,447

329,322
12,927
55,568

453,730
9,934
86,574

256,987
6,241
56,761

167,445
4,046
60,516

74,723
6,633
57,284

84,619
7,114
97,435

21,183
39,757
43,063

22,439
42,158
55,176

20,551
57,607
64,062

25,684
70,211
81,114

16,825
51,817
89,291

16,902
56,610
73,560

17,913
131,235
87,295

17,383
62,313
103,768

17,962
84,001
99,237

757,432

783,213

1,361,515

978,422

935,461

836,665

883,637

1,017,299

1,177,540

58,939
12,603
95,039

49,887
12,827
63,530

88,397
11,256
72,213

85,045
9,224
63,370

Recoveries, transfers from valuation reserves, and profits—
to ta l.................................................................................................
On securities:
Profits on securities sold or re d e e m e d .................................
R ecoveries.....................................................................................
T ransfers fro m valuation re serve s.........................................
On loans:
R ecoveries.....................................................................................
Transfers fro m valuation re serve s.........................................
All o th e r..............................................................................................
Losses, charge-offs, and transfers to valuation reserves—
to ta l.................................................................................................
On securities:
Losses on securities s o ld ..........................................................
Charge-offs p rio r to s a le ............................................................ }
Transfers to valuation re serve s...............................................
On loans:
Losses and ch a rg e -o ffs ..............................................................
T ransfers to valuation re s e rv e s ..............................................
All o th e r..............................................................................................
Net income before related taxes...................................................




237,480

93,657

745,081

219,767

84,996

268,159

168,003

156,232

/ 44,290
\21,354
224,678

25,636
321,870
87,452

25,053
282,227
114,117

25,459
318,965
104,006

35,760
451,667
114,996

31,194
481,200
132,745

30,107
528,710
111,267

29,588
609,059
118,746

32,385
666,040
147,008

36,188
846,877
136,836

2,372,217

2,973,128

2,372,519

3,387,129

3,401,822

3,260,178

3,379,546

3,431,832

3,543,895

CORPORATION

9,669,352
1,732,174
546,253
5,856,688
111,991
531,916
205,935
426,016
258,381

INSURANCE

8,500,949
1,544,023
501,978
5,046,782
94,674
486,507
191,408
379,395
256,183

DEPOSIT

8,050,416
1,442,379
412,497
4,879,676
83,815
440,892
186,815
354,520
249,828

FEDERAL

Current operating revenue—to ta l..................................................
In te re s t on U. S. G overnm ent o b lig a tio n s ...............................
In te re st and dividends on o th e r s e c u ritie s .............................
In te re st and d isco u n t on lo a n s ...................................................
Service charges and fees on lo a n s ............................................
Service charges on dep o sit a c c o u n ts ........................................
O ther charges, com m issions, fees, e tc .....................................
T ru s t d e p a rtm e n t...........................................................................
Other c u rre n t o perating re v e n u e ................................................

884,458
832,797
51,661

1,384,397
1,300,940
83,457

1,406,102
1,317,292
88,810

1,256,382
1,159,725
96,657

1,226,783
1,130,629
96,154

1,148,203
1,050,624
97,579

1,029,162
927,423
101,739

N et income after related taxes......................................................

1,373,821

1,701,667

1,448,061

2,002,732

1,995,720

2,003,796

2,152,763

2,283,629

2,514,733

Dividends and interest on capital—to ta l....................................
Cash dividends declared on com m on s to c k ...........................
Dividends declared on prefe rre d stock and intere st on
capital notes and d e b e n tu re s .................................................

678,101
675,867

725,866
723,500

776,386
774,167

831,546
829,522

895,053
893,230

941,189
939,426

993,374
990,039

1,088,310
1,062,561

1,202,349
1,146,186

2,234

2,366

2,219

2,024

1,823

1,763

3,335

25,749

56,163

Net additions to capital from incom e.........................................

695,720

975,802

711,675

1,171,186

1,100,667

1,062,607

1,159,389

1,195,319

1,312,384

Memoranda
Recoveries cre dite d to valuation reserves (n ot included in
recoveries above):
On se cu rite s.............................................................................
On lo a n s .............................................................................
Losses charged to valuation reserves (n o t included in losses
above):
On s e c u ritie s .................................................
On lo a n s ...............................................................

2,646
50,824

10,410
69,073

5,585
73,790

18,294
68,232

9,911
73,844

4,714
84,863

6,216
96,897

4,515
157,791

4,158
124,062

74,529
117,937

19,741
127,515

207,061
122,315

47,716
264,405

22,463
249,500

16,305
238,825

17,314
323,475

43,683
394,181

25,761
429,490

Average assets and liab ilities9
Assets—to ta l...................................................................
Cash and due fro m b a n k s ............................................
U nite d S tates G o ve rn m e n t o b lig a tio n s...................................
O ther s e c u ritie s .......................................................................
Loans and d is c o u n ts ......................................................
All o th e r a s s e ts ................................................................

214,790,440
45,474,318
57,238,574
16,725,206
91,493,989
3,858,353

228,359,687
46,766,041
62,355,819
19,237,561
95,666,835
4,333,431

237,577,389
46,881,654
61,878,548
20,284,525
103,872,351
4,660,311

246,776,722
49,317,003
57,773,429
20,092,632
114,275,450
5,318,208

254,198,199
46,613,211
61,792,135
21,660,321
117,969,985
6,162,547

274,220,778
49,438,670
64,519,914
25,761,084
127,789,110
6,712,000

298,940,778
50,997,566
64,058,431
31,421,875
145,028,233
7,434,673

325,490,626
54,449,343
61,439,390
36,360,062
164,816,703
8,425,128

357,214,409
59,013,596
59,419,551
41,540,772
187,661,591
9,578,899

Liabilities and capital—to ta l..........................................................
Total d e p o s its ............................................................
Demand, deposits...........................
Time and savinqs deposits...................
Borrow ings and o th e r lia b ilitie s ..........................................
Total capital a c c o u n ts ..............................

214,790,440
193,993,484
139,023,597
54,969,887
4,242,293
16,554,663

228,359,687
206,196,015
143,813,475
62,382,540
4,440,097
17,723,575

237,577,389
213,428,979
146,599,745
66,829,234
5,410,250
18,738,160

246,776,722
220,099,028
150,451,481
69,647,547
6,712,522
19,965,172

254,198,199
225,214,703
147,556,175
77,658,528
7,694,509
21,288,987

274,220,778
243,319,550
153,849,494
89,470,056
8,197,420
22,703,808

298,940,778
264,069,489
159,561,973
104,507,516
10,587,389
24,283,900

325,490,626
287,988,560
168,382,122
119,606,438
11,110,692
26,391,374

357,214,409
315,643,533
178,089,360
137,554,173
12,750,015
28,820,861

91,597
452,218

95,308
457,023

98,934
481,666

103,211
506,596

107,279
526,101

112,458
543,695

117,147
531,820

124,351
578,307

130,486
601,677

13,165

13,124

13,114

13,126

13,115

13,124

13,291

13,493

13,547

N um b e r of em ployees (in clu d in g building
D ecem ber 31:
Active o ffic e rs ................................
O ther e m p lo y e e s ..................................
N um ber of banks, December 3 1 .....................

employees),

153

1Excludes rentals from bank premises; included with "Occupancy expense of bank premises—net."
2 Excludes compensation of building officers and other employees; included with "Occupancy expense of bank premises—net."
3 Included with ‘‘Other current operating expenses” , except Social Security taxes paid on bank’s account which were included with ‘‘Taxes other than on net income.”
4 Included with “ Officer and employee benefits” , “ Occupancy expense of bank premises—net” , and “ Other current operating expenses.”
5 Included with “ Occupancy expense of bank premises—net” , and “ Furniture and equipment.”
6 Included with “ Taxes other than on net income” , “ Recurring depreciation on banking house, furniture and fixtures” , and “ Other current operating expenses.”
7 Included with “ Recurring depreciation on banking house, furniture and fixtures” , and “ Other current operating expenses.”
8 Not comparable with amounts reported for previous years; see footnotes 3, 4, 6, and 7.
•n. x£or ^57 through 1960 and for 1964 and 1965, averages of amounts reported at beginning, middle, and end of year. For 1961 and 1962, averages of amounts for four consecutive official call dates beginning
with the end of the previous year and ending with the fall call of the current year. For 1963, averages of amounts reported at 1962 year-end, 1963 spring, mid-year, and year-end calls.
Note: Due to rounding differences, data for 1957-1959 may not add to totals.
Back figures, 1934-1956: See the following Annual Reports: 1956, pp. 116-117; 1950, pp. 250-251; and 1941, pp. 158-159.




BANKS

1,271,459
1,198,890
72,570

O INSURED
F

998,397
947,998
50,401

INCOME

Taxes on net income—to ta l............................................................
F ederal..............................................................................................
S ta te ..................................................................................................

1961

1962

1963

1 964

1965

Service charges on dep o sit a c c o u n ts .....................................................................................................
O ther charges, com m issions, fees, e tc....................................
.....................................................
O ther c u rre n t o p e ra tin g re v e n u e .............................................................................................................

$100.00
17.92
5.12
61.65
5.48
2.32
7.51

$100.00
18.16
5.91
60.48
5.72
2.25
7.48

$100.00
17.91
5.65
61.73
5.50
2.13
7.08

$100.00
16.69
5.40
63.48
5.50
2.04
6.89

$100.00
17.18
5.68
63.31
5.70
2.02
>6.11

$100.00
17.13
6.21
63.16
5.58
1.94

$100.00
16.11
6.82
64.19
5.39
1.84
>5.65

$100.00
14.91
7.22
65.13
5.20
1.87
»5.67

$100.00
13.23
7.64
66.63
5.01
1.81
1
5.68

Current operating expenses—to ta l............................................................................................................
Salaries, wages, and fees .........................................................................................................................
O fficer and em ployee b e n e fits .................................................................................................................
In te re st on tim e and savings d e p o s its ...................................................................................................
Taxes o th e r than on net in c o m e ..............................................................................................................
R ecurring d ep reciation on banking house, fu rn itu re and fix tu re s ................................................
Occupancy expense of bank prem ises—n e t........................................................................................
F u rn iture and e q u ip m e n t..........................................................................................................................
O ther c u rre n t o pe ra tin g e xpe n se s..........................................................................................................

63.59
28.73
(3
)
14.18
2.56
1.82
(6
)
(7
)
16.30

66.02
28.80
(3
)
16.24
2.61
1.98
(6
)
(7
)
16.39

64.78
27.19
(3
)
16.34
2.61
1.98
(6
)
(7
)
16.66

64.65
26.62
(3
)
16.65
2.66
1.98
(6
)
(7
)
16.74

67.22
2
26.73
3.41
19.03
(4
)
(5
)
4.61
2.03
811.41

70.29
225. 67
3.43
23.28
(4
)
(5
)
4.55
2.19
*11.17

71.91
2
24.81
3.38
25.64
(4
)
(6
)
4.50
2.31
811.27

72.53
2
23.90
3.27
27.21
(4)
(5)
4.46
2.41
811.28

74.25
2
22.83
3.13
30.15
(4
)
(5
)
4.35
2.45
*11.34

Net current operating earnings .................................................................................................................

36.41

33.98

35.22

35.35

32.78

29.71

28.09

27.47

25.75

Amounts per $ 10 0 of total assets9
...........................
C u rre n t ope ra tin g revenue—tota l
C u rre n t ope ra tin g expenses—to ta l.........................................................................................................
N et c u rre n t ope ra tin g earnings
...........................................
Recoveries, tra n s fe rs fro m valuation reserves, and p rofits—total
............................................
Losses, charge-offs, and tra n sfe rs to valuation reserves—to ta l....................................................
N et incom e before related ta x e s .............................................................................................................
N et incom e a fte r related ta x e s ................................................................................................................

3.74
2.38
1.36
.09
.35
1.10
.64

3.72
2.46
1.26
.38
.34
1.30
.75

4.07
2.64
1.43
.14
.57
1.00
.63

4.35
2.81
1.54
.23
.40
1.37
.81

4.35
2.92
1.43
.28
.37
1.34
.79

4.45
3.13
1.32
.17
.30
1.19
.73

4.52
3.25
1.27
.16
.30
1.13
.72

4.62
3.35
1.27
.10
.32
1.05
.70

4.71
3.50
1.21
.11
.33
.99
.70

Amounts per $ 10 0 of total capital accounts9
N et c u rre n t o p e ra tin g e a rn in g s ................................................................................................................
Recoveries, tra n sfe rs fro m valuation reserves, and profits—to ta l................................................
Losses, charge-offs, and tra n sfe rs to valuation reserves—to ta l....................................................
N et incom e before related ta x e s .............................................................................................................
Taxes on n et in c o m e ...................................................................................................................................
N et incom e a fte r related ta x e s ................................................................................................................
Cash d ividends d e c la re d ............................................................................................................................
N et a d d itio n s to capital fro m in c o m e ....................................... ..........................................................

17.71
1.20
4.58
14.33
6.03
8.30
4.10
4.20

16.30
4.89
4.42
16.77
7.17
9.60
4.09
5.51

18.17
1.76
7.27
12.66
4.72
7.94
4.14
3.80

18.99
2.88
4.90
16.97
6.94
10.03
4.16
5.87

17.05
3.32
4.39
15.98
6.61
9.37
4.20
5.17

15.99
2.06
3.69
14.36
5.53
8.83
4.15
4.68

15.63
1.93
3.64
13.92
5.06
8.86
4.09
4.77

15.64
1.22
3.86
13.00
4.35
8.65
4.12
4.53

15.03
1.35
4.08
12.30
3.57
8.73
4.17
4.56

Special ratios9
Income on loans per $100 of lo a n s ........................................................................................................
Income on U. S. G overnm ent obligations per $10 0 of U. S. Government o bligations.............
Incom e on o th e r securities per $ 10 0 o f o th e r s e c u ritie s .................................................................
Service charges per $ 10 0 o f dem and d e p o s its ..................................................................................
In te re st paid per $100 of tim e and savings d e p o s its .......................................................................

5.42
2.52
2.47
.32
2.08

5.37
2.48
2.61
.34
2.21

5.75
2.80
2.69
.36
2.36

5.96
3.10
2.88
.39
2.56

5.94
3.08
2.90
.43
2.71

6.04
3.24
2.95
.44
3.18

5.98
3.40
2.93
.46
3.31

5.94
3.65
2.98
.46
3.42

5.97
3.74
3.09
.47
3.69




CORPORATION

1960

INSURANCE

1959

DEPOSIT

1958

Incom e ite m
Amounts per $ 1 0 0 of current operating revenue
Current operating revenue—to ta l...............................................................................................................
In te re s t on U. S. G overnm ent oblig atio n s
........................................................................................
In te re st and d ividends on o th e r s e c u ritie s ...........................................................................................

FEDERAL

1957

154

Table 114. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1957-1965

100.00

100.00

100.00

inn nn
IUU.UU

21.17
26.65
7.79
42.60
1.79

20.48
27.31
8.42
41.89
1.90

mn nn
IUU.UU

19 ! 73
26.05
8 54
43] 72
1.96

19 98
23] 41
8 14
HO. 01
9 10
L. ifi

18 34
tH.Ol
fi DL
9
0. R
AH
40.41
9 >9
1

Liabilities and capital—to ta l................
Total d e p o s its ........................
Demand deposits...............................
Time and savings deposits...................
Borrow ings and o th e r lia b ilitie s.
Total capital a c c o u n ts .................

100.00

100.00

100.00

90.32
64.73
25.59
1.97
7.71

90.30
62.98
27.32
L94
7.76

89 83

mn nn
IUU.UU
Q ly
Q
oy. IQ

inn nn
IUU.UU
00 cn
00. bu

7 89

nl
OU. i'
ly
Zo. ZZ
9 79
L. / L
8 no
0 . uy

N um b e r o f banks, Decem ber 3 1 .

13,165

13,124

13,114

13 126

2 ] 28

100.00
17 nc
1/. Uo
01 >Q
1
Li.HO
in ci
lU .o l

40. O
U
O

A
t:

100.00

100.00

48.51
2.49

16.73
18.87
11.17
50.64
2.59

16.52
16.63
11.63
52.54
2.68

inn nn
IUU.UU

100.00

100.00

100.00

58.05
30.55
7 O
Q
0. Uo
ft . Q
7
O 0/

88.73
56.10
32.63
OO
G
z. yy
8.28

88.34
53.38
34.96
3.54
8.12

88.48
51.73
36.75
3.41
8.11

88.36
49,85
38.51
3.57
8.07

13 115

IQ , 1 /1
9
l o 1Z4

13,291

13,493

13,547

155




BANKS

1 Excludes rentals from bank premises; included with "Occupancy expense of bank premises—net.”
2 Excludes compensation of building officers and other employees; included with “ Occupancy expense of bank premises—net.”
! |nc uded with “ Other current operating expenses” , except Social Security taxes paid on bank's account which were included with "Taxes other than on net income ”
nc uded with Officer and employee benefits", “ Occupancy expense of bank premises—net,” and "Other current operating expenses ”
5 Included with ^Occupancy expense of bank premises—net” , and “ Furniture and equipment.”
! !nc!u^e5 w!£ " I axes othe[ than on net income< "Recurring depreciation on banking house, furniture and fixtures," and “ Other current operating expenses ”
”
7 Included with Recurring depreciation on banking house, furniture and fixtures” , and “ Other current operating expenses ”
8 Not comparable with amounts reported for previous years; see footnotes, 3, 4, 6, and 7.
-*1. * f or 1557« u
t.hrough -960 and for J9641
and 1965 averages of amounts reported at beginning, middle, and end of year. For 1961 and 1962, averages of amounts for four consecutive official call date-; heainnina
with the end of the previous year and ending with the fall call of the current year. For 1963, averages of amounts reported at 1962 year-end, 1963 spring, mid-year, and year-end calls
Back figures, 1934-1956: See the following Annual Reports: 1956, pp. 118-119; 1950, pp. 252-253; and 1941, pp. 160-161.

O INSURED
F

.

Q0
Q0

inn nn
IUU.UU
IQ. U
lo 07
O
l.0• D
O
Q oy
G
y. Q

INCOME

Assets and liabilities per $ 10 0 of total assets9
Assets—to ta l.........................................................
Cash and due fro m b a n k s .............................
U nited States G overnm ent o b lig a tio n s ..........
O ther s e c u ritie s .............................................
Loans and d is c o u n ts ................................
All o th e r a sse ts .........................

Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965
156

BY CLASS OF BANK

(Amounts in thousands of dollars)
Members F.R. System
Income item

Total
National

State

Not
members
F.R. System

Operating
throughout
the year

Operating
less than
full year

2,986,220

16,784,582

32,605

475,901
322,934
2,673,104
50,192
163,130
- 64,663
301,418
74,401

538,670
206,488
1,872,547
37,220
189,542
80,366
32,037
29,350

2,217,838
1,283,430
10,979,742
204,583
841,332
303,558
688,855
265,244

6,873
1,857
20,125
413
1,443
718
773
403

Current operating expenses— total........................................................................

12,486,120

7,189,491

3,010,098

2,286,531

12,455,607

30,513

Salaries—officers.........................................................................................................
Salaries and wages—other employees.....................................................................
Officer and employee benefits..................................................................................
Fees paid to directors and committees....................................................................
Interest on time and savings deposits.....................................................................
Interest on borrowed money.....................................................................................
Occupancy expense of bank premises—net...........................................................
Furniture and equipment...........................................................................................
Other current operating expenses............................................................................

1,392,765
2,369,259
525,692
77,093
5,070,781
189,519
731,573
411,889
1,717,549

743,378
1,368,757
308,352
36,372
3,002,427
103,074
409,065
244,743
973,323

302,532
605,621
139,292
12,223
1,211,717
80,621
188,753
88,820
380,519

346,855
394,881
78,048
28,498
856,637
5,824
133,755
78,326
363,707

1,387,912
2,364,536
524,920
76,926
5,062,273
189,438
729,269
410,715
1,709,618

4,853
4,723
772
167
8,508
81
2,304
1,174
7,931

Net current operating earnings.............................................................................

4,331,067

2,515,733

1,115,645

699,689

4,328,975

2,092

Recoveries, transfers from valuation reserves, and profits—total.......................

390,368

194,055

135,847

60,466

389,103

1,265

84,619
7,114
97,435

50,401
1,535
41,128

17,055
3,598
49,826

17,163
1,981
6,481

84,128
7,110
97,346

491
4
89

17,962
84,001
99,237

8,950
35,368
56,673

1,574
37,737
26,057

7,438
10,896
16,507

17,927
83,775
98,817

35
226
420

1,177,540

On securities:
Profits on securities sold or redeemed.................................................................
Recoveries................................................................................................................
Transfers from valuation reserves........................................................................
On loans:
Recoveries.................................................................................................................
Transfers from valuation reserves........................................................................
All other........................................................................................................................

676,330

306,043

195,167

1,174,251

3,289

On securities:
Losses on securities sold........................................................................................
Charge-offs prior to sale.........................................................................................
Transfers to valuation reserves.. . ........................................................................
On loans:
Losses and charge-offs...........................................................................................
Transfers to valuation reserves.............................................................................
All other........................................................................................................................

85,045
9,224
63,370

49,104
4,017
41,058

20,874
833
13,118

15,067
4,374
9,194

84,855
9,198
63,183

190
26
187

36,188
846,877
136,836

16,557
483,442
82,152

2,745
240,555
27,918

16,886
122,880
26,766

35,796
845,592
135,627

392
1,285
1,209

Net income before related taxes...........................................................................

3,543,895

2,033,458

945,449

564,988

3,543,827

6
8

Losses, charge-offs, and transfers to valuation reserves—total...........................




CORPORATION

4,125,743

1,210,140
755,865
6,454,216
117,584
490,103
159,247
356,173
161,896

INSURANCE

9,705,224

2,224,711
1,285,287
10,999,867
204,996
842,775
304,276
689,628
265,647

DEPOSIT

16,817,187

Interest on U. S. Government obligations...............................................................
Interest and dividends on other securities..............................................................
Interest and discount on loans.................................................................................
Service charges and fees on loans...........................................................................
Service charges on deposit accounts.......................................................................
Other charges, commissions, fees, etc....................................................................
Trust department........................................................................................................
Other current operating revenue..............................................................................

FEDERAL

Current operating revenue— total..........................................................................

1,029,162

612,046

265,903

151,213

1,027,492

1,670

Federal.........................................................................................................................

927,423
101,739

552,132
59,914

234,856
31,047

140,435
10,778

925,864
101,628

1,559
111

Net income after related taxes.............................................................................

2,514,733

1,421,412

679,546

413,775

2,516,335

1,602

Taxes on net income— total..................................................................................

717,439

338,148

1,201,455

84
9

1,146,186

681,802

321,537

142,847

1,145,346

840

56,163

35,637

16,611

3,915

56,109

54

Net additions to capital from income...................................................................

1,312,384

703,973

341,398

267,013

1,314,880

2,496

Number of banking employees (exclusive of building employees), December 31:
Active officers.............................................................................................................
Other employees........................................................................................................

130,042
569,276

67,215
326,607

24,074
132,711

38,753
109,958

129,463
567,693

579
1,583

4,158
124,062

3,115
77,961

588
22,315

455
23,786

4,158
123,696

366

25,761
429,490

14,777
260,180

6,561
86,020

4,423
83,290

25,758
427,838

3
1,652

731,573

409,065

133,755

729,269

2,304

Memoranda

Recoveries credited to valuation reserves (not included in recoveries above):
On securities
.........................................................................
On loans......................................................................................................................
Losses charged to valuation reserves (not included in losses above):
On securities...............................................................................................................
On loans.......................................................................................................................
Occupancy expense of bank premises
Occupancy expense of bank premises, net—total................................................

188,753

166,867

109,968

42,276

14,623

166,707

160

898,440

519,033

231,029

148,378

895,976

2,464

Salaries—building department officers...................................................................
Salaries and wages—building department employees..........................................
Building department personnel benefits................................................................
Recurring depreciation..............................................................................................
Maintenance and repairs..........................................................................................
Insurance and utilities...............................................................................................
Rents paid...................................................................................................................

2,716
94,688
11,380
160,888
101,322
155,298
243,044
129,104

1,657
56,968
7,058
96,423
60,896
88,274
128,882
78,875

774
24,646
3,413
38,494
22,333
37,379
73,838
30,152

285
13,074
909
25,971
18,093
29,645
40,324
20,077

2,713
94,550
11,369
160,435
101,035
154,807
242,151
128,916

3
138
1
1
453
287
491
893
188

Number of building employees, December 31:
Officers........................................................................................................................
Other employees........................................................................................................

444
32,401

208
17,822

99
6,928

137
7,651

440
32,322

4
79

Number of banks, December 3 1 .................................................................................

13,547

4,815

1,405

7,327

13,366

181

Note: For average asset and liability data, see Table 109, p. 144.
Back figures, 1934-1964: See Table 113, pp. 152-153; the Annual Report for 1964, p . 198-199, and earlier reports.
p




BANKS

Rental and other income..............................................................................................
Occupancy expense of bank premises, gross—total.............................................

O INSURED
F

1,202,349

Cash dividends declared on common stock...........................................................
Dividends declared on preferred stock and interest on capital notes and
debentures...............................................................................................................

INCOME

Dividends and interest on capital— total..............................................................

146,762

158

Table 116. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965
BY CLASS OF BANK

Members F.R. System
Income item
Total

National

State

Not
members
F.R.
System

$100.00

$100.00

$100.00

13.23
7.64
66.63
5.01
1.81
5.68

12.47
7.79
67.71
5.05
1.64
5.34

11.53
7.83
66.01
3.95
1.57
9.11

18.04
6.91
63.95
6.35
2.69
2.06

72.96

76.57

22.14
3.18
30.94
4.21
2.52
11.09

22.31
3.38
29.37
4.57
2.15
11.18

25.79
2.61
28.69
4.48
2.62
12.38

Net current operating earnings...............................................................................................................................................

25.75

25.92

27.04

23.43

4.71
3.50
1.21
.11
.33
.99
.70

4.63
3.43
1.20
.09
.32
.97
.68

4.59
3.35
1.24
.15
.34
1.05
.76

5.17
3.96
1.21
.11
.34
.98
.72

(2
)
.03

(2
)
.04

(2
)
.02

(2
)
.04

.01
.12

.01
.12

.01
.10

.01
.14

Amounts per $100 of total assets1

Current operating revenue—total
.................................................................................................
Current operating expenses—total
...........................................................................................................
Net current operating earnings
...........................................................................................................
Recoveries, transfers from valuation reserves, and profits—total..................................................................................................
Losses, charge-offs, and transfers to valuation reserves—total.....................................................................................................
Net income before related taxes.........................................................................................................................................................
Net income after related taxes............................................................................................................................................................
Memoranda

Recoveries credited to valuation reserves (not included in recoveries above):
On securities
.......................................................................................................................................................................
On loans...............................................................................................................................................................................................
Losses charged to valuation reserves (not included in losses above):
On securities
.........................................................................................................................................................................
On loans....
..........................................................................................................................................................................




CORPORATION

74.08

22.83
3.13
30.15
4.35
2.45
11.34

INSURANCE

74.25

Salaries, wages, and fees..................................................................................................................................................................
Officer and employee benefits.........................................................................................................................................................
Interest on time and savings deposits............................................................................................................................................
Occupancy expense of bank premises—net...................................................................................................................................
Furniture and equipment..................................................................................................................................................................
Other current operating expenses...................................................................................................................................................

Current operating expenses— total.........................................................................................................................................

DEPOSIT

$100.00

Interest on U. S. Government obligations......................................................................................................................................
Interest and dividends on other securities.....................................................................................................................................
Income on loans.................................................................................................................................................................................
Service charges on deposit accounts..............................................................................................................................................
Other service charges, commissions, fees, etc..............................................................................................................................
Other current operating revenue.....................................................................................................................................................

FEDERAL

Amounts per $100 of current operating revenue
Current operating revenue— total............................................................................................................................................

Amounts per $100 of total capital accounts'
Net current operating earnings............................................................................................
Recoveries, transfers from valuation reserves, and profits- total...................................
Losses, charge-offs, and transfers to valuation reserves—total......................................
Net income before related taxes.........................................................................................
Taxes on net income.............................................................................................................
Net income after taxes..........................................................................................................
Cash dividends declared.......................................................................................................
Net additions to capital from income..................................................................................

15.03
1.35
4.08
12.30
3.57
8.73
4.17
4.56

14.98
1.16
4.03
12.11
3.65
8.46
4.27
4.19

15.40
1.87
4.22
13.05
3.67
9.38
4.67
4.71

14.63
1.26
4.08
11.81
3.16
8.65
3.07
5.58

.01
.31

.01
.50

.09
1.49

.09
1.55

.09
1.19

.09
1.74

Special ratios1
Income on loans per $100 of loans....................................................................................
Income on U.S. Government obligations per $100 of U.S. Government obligations
Income on other securities per $100 of other securities..................................................
Service charges per $100 of demand deposits.................................................................
Interest paid per $100 of time and savings deposits.......................................................

5.97
3.74
3.09
.47
3.69

5.93
3.70
3.11
.47
3.73

5.68
3.67
3.12
.36
3.73

6.61
3.92
3.00
.69
3.48

4.35

4.21

4.57

4.48

Occupancy expense of bank premises per $100 of current operating revenue
Occupancy expense of bank premises, net—total............................................................
Rental and other income......................................................................................................
Occupancy expense of bank premises, gross—total.........................................................
Salaries and wages- building department officers and employees.............................
Building department personnel benefits........................................................................
Recurring depreciation......................................................................................................
Maintenance and repairs...................................................................................................
Insurance and utilities.......................................................................................................
Rents paid............................................................................................................................
Taxes....................................................................................................................................
Number of banks, December 31

.99

1.13

1.03

.49

5.34

5.34

5.60

4.97

.58
.07
.96
.60
.92
1.44
.77

.60
.07
.99
.63
.91
1.33
.81

.62
.08
.93
.54
.91
1.79
.73

.45
.03
.87
.61
.99
1.35
.67

13,547

4,815

1,405

BANKS

.02
.46

O INSURED
F

.01
.43

INCOME

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

7,327

1For average asset and liability data, see Table 109, p. 144.
2 Less than .005.
Back figures, 1934-1964: See Table 114, pp. 154-155; the Annual Report for 1964, pp. 200-201; and earlier reports.

159




Table 117. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1965 IN THE UNITED STATES (STATES AND
OTHER AREAS)
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

160

Banks with deposits of— 2
Income item

All
banks1

Less
than
$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
$25,000,000

$25,000,000
to
$50,000,000

$50,000,000 $100,000,000 $500,000,000
to
to
or
$100,000,000 $500,000,000
m
ore

(Am
ounts; in thousands of dollars)
745,699

1,109,993

1,839,236

1,233,131

1,163,841

3,146,122

7,383,023

34,601
6,664
86,954
655
6,713
5,581
72
1,225

165,093
43,854
461,084
4,527
40,596
23,430
701
6,414

214,626
80,842
695,545
8,406
69,936
25,625
5,060
9,953

323,874
142,208
1,156,029
19,429
127,757
34,485
18,117
17,337

204,751
94,889
775,222
15,321
80,572
23,333
25,600
13,443

182,389
90,597
739,044
14,873
69,950
20,273
32,405
14,310

402,882
235,451
2,065,974
42,163
162,026
53,211
148,279
36,136

684,283
588,194
4,987,350
99,106
282,798
116,720
458,427
166,145

Current operating expenses— total....................

12,455,607

16,168

107,241

570,040

838,849

1,403,810

942,201

888,751

2,331,393

5,357,154

Salaries—officers................................................
Salaries and wages—other employees............
Officer and employee benefits..........................
Fees paid to directors and committees...........
Interest on time and savings deposits............
Interest on borrowed money.............................
Occupancy expense of bank premises—n e t...
Furniture and equipment..................................
Other current operating expenses...................

1,387,912
2,364,536
524,920
76,926
5,062,273
189,438
729,269
410,715
1,709,618

5,710
1,854
429
484
3,569
33
919
415
2,755

31,182
12,567
2,888
2,736
32,386
140
5,512
2,992
16,838

120,691
79,392
16,476
12,324
201,091
696
30,678
18,186
90,506

139,270
132,114
27,363
14,307
317,965
1,199
47,066
27,857
131,708

189,872
244,966
49,485
16,786
545,582
2,924
82,137
47,757
224,301

115,703
176,481
35,481
8,002
364,836
2,946
56,525
33,169
149,058

102,525
166,875
35,934
5,447
348,359
5,288
54,959
33,755
135,609

239,341
482,803
101,909
9,500
886,088
28,174
138,880
94,060
350,638

443,618
1,067,484
254,955
7,340
2,362,397
148,038
312,593
152,524
608,205

Net current operating earnings.........................

4,328,975

4,904

35,224

175,659

271,144

435,426

290,930

275,090

814,729

2,025,869

Recoveries, transfers from valuation reserves,
and profits— total.........................................

389,103

65
2

2,773

13,604

20,663

32,119

19,614

21,930

89,798

187,977

On securities:
Profits on securities sold or redeemed........
Recoveries........................................................
Transfers from valuation reserves................
On loans:
Recoveries........................................................
Transfers from valuation reserves................
All other................................................................

84,128
7,110
97,346

36
35
5

346
70
63

3,156
390
269

6,385
857
1,326

10,111
1,242
2,950

5,936
543
2,689

6,481
138
3,579

20,588
497
21,720

31,089
3,338
64,745

17,927
83,775
98,817

421
41
87

1,474
316
504

5,116
2,106
2,567

4,710
3,020
4,365

2,862
5,171
9,783

894
3,427
6,125

526
3,733
7,473

548
17,731
28,714

1,376
48,230
39,199

Losses, charge-offs, and transfers to valuation
reserves— total.............................................

1,174,251

1,365

7,719

46,726

72,778

120,131

75,913

73,288

202,252

574,079

84,855
9,198
63,183

31
20
12

242
80
143

2,568
1,189
653

5,091
2,419
1,621

10,928
1,986
3,590

7,611
1,198
2,357

7,162
1,585
4,688

18,528
185
16,232

32,694
536
33,887

35,796
845,592
135,627

813
330
159

2,806
3,334
1,114

12,231
23,512
6,573

9,134
44,787
9,726

7,232
80,440
15,955

1,748
52,993
10,006

309
50,829
8,715

1,332
140,118
25,857

191
449,249
57,522

3,543,827

4,164

30,278

142,537

219,029

347,414

234,631

223,732

702,275

1,639,767

On securities:
Losses on securities sold...............................
Charge-offs prior to sale.................................
Transfers to valuation reserves....................
On loans:
Losses and charge-offs...................................
Transfers to valuation reserves....................
All other................................................................
FRASER

Digitized for
http://fraser.stlouisfed.org/
Net income before related taxes.......................
Federal Reserve Bank of St. Louis

CORPORATION

142,465

5,339
731
12,540
103
984
900
194
281

INSURANCE

21,072

2,217,838
1,283,430
10,979,742
204,583
841,332
303,558
688,855
265,244

DEPOSIT

16,784,582

Interest on U. S. Government obligations.......
Interest and dividends on other securities.. ..
Interest and discount on loans.........................
Service charges and fees on loans...................
Service charges on deposit accounts...............
Other charges, commissions, fees, etc............
Trust department................................................
Other current operating revenue.....................

FEDERAL

Current operating revenue— total......................

1,027,492

87
5

6,462

34,015

59,045

100,069

71,238

69,551

211,206

475,049

Federal.................................................................
State.....................................................................

925,864
101,628

795
62

5,880
582

31,264
2,751

54,927
4,118

94,343
5,726

67,276
3,962

65,740
3,811

198,252
12,954

407,387
67,662

Net income after related taxes.........................

2,516,335

3,307

23,816

108,522

159,984

247,345

163,393

154,181

491,069

1,164,718

Dividends and interest on capital— total

1,201,455

1,103

8,116

35,715

55,020

89,405

64,443

66,000

228,058

653,595

1,145,346

1,103

8,111

35,671

54,840

88,808

63,588

64,326

219,199

609,700

5

44

180

597

855

1,674

8,859

43,895
511,123

Taxes on net income— total

Cash dividends declared on common stock...
Dividends declared on preferred stock and
interest on capital notes and debentures

56,109
1,314,880

2,204

15,700

72,807

104,964

157,940

98,950

88,181

Number of banking employees (exclusive of
building employees), December 31:
Active officers.....................................................
Other employees................................................

129,463
567,693

1,195
814

4,993
4,544

15,574
24,794

15,693
38,263

18,955
68,243

10,644
49,016

8,628
42,746

19,809
117,620

33,972
221,653

Memoranda

77

7
881

109
6,567

9
1
11,279

278
19,215

138
11,496

301
10,104

570
21,476

2,664
42,601

25,758
427,838

1
208

1
2,186

175
16,664

293
31,798

1,326
57,698

1,050
36,813

1,991
35,408

7,436
77,622

13,485
169,441

Occupancy expense of bank premises
Occupancy expense of bank premises, n e t total .............................................................

729,269

99
1

5,512

30,678

47,066

82,137

56,525

54,959

138,880

312,593

Rental and other income......................................

166,707

5
2

385

2,519

4,092

9,237

10,558

14,676

51,919

73,269

Occupancy expense of bank premises, gross—
total.............................................................

895,976

91
7

5,897

33,197

51,158

91,374

67,083

69,635

190,799

385,862

2,713

1

8

31

32

82

92

220

757

1,490

94,550
11,369
160,435
101,035
154,807
242,151
128,916

4
1
1
100
146
410
11
0
11
7

410
8
1,006
892
2,055
604
914

3,070
133
6,656
4,161
8,862
5,004
5,280

5,308
292
10,891
6,101
11,560
8,705
8,269

9,759
737
19,215
11,255
17,486
18,135
14,705

7,616
731
12,525
8,828
11,177
16,099
10,015

7,900
821
12,156
8,823
10,559
18,971
10,185

24,050
2,968
31,820
21,999
28,007
54,797
26,401

36,396
5,678
66,066
38,830
64,691
119,735
52,976

Number of building employees, December 31:
Officers................................................................
Other employees.................................................

440
32,322

8
1
31

34
842

45
3,284

23
3,197

61
3,981

33
2,771

27
2,774

66
7,139

143
8,203

Number of banks, December 3 1 .........................

13,366

5
21

1,790

4,301

3,046

2,295

691

330

302

90

1This group of banks is the sam as the group show in Table 115 under the heading ‘‘Operating throughout the year”.
e
n
2For asset and liability data, see Table 110, p 145.
.
Back figures, 1941-1964: See the Annual Report for 1964, pp. 202-203, and earlier reports.




161

Salaries—building department officers...........
Salaries and wages—building department
employees........................................................
Building department personnel benefits........
Recurring depreciation......................................
Maintenance and repairs..................................
Insurance and utilities.......................................
Rents paid...........................................................
Taxes....................................................................

BANKS

4,158
123,696

O INSURED
F

Recoveries credited to valuation reserves (not
included in recoveries above):
On securities.......................................................
On loans...............................................................
Losses charged to valuation reserves (not in­
cluded in losses above):
On securities.......................................................
On loans..............................................................

INCOME

Net additions to capital from income...............

2
63,011

162

Table 118. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1965 IN THE UNITED STATES (STATES
AND OTHER AREAS)
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of— 2
Income item

Less
than
$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
$25,000,000

$25,000,000
to
$50,000,000

$50,000,000 $100,000,000 $500,000,000
or
to
to
m
ore
$100,000,000 $500,000,000

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

24.29
4.68
61.49
4.71
3.92
.91

22.14
5.88
62.44
5.44
3.14
.96

19.34
7.28
63.42
6.30
2.31
1.35

17.61
7.73
63.91
6.95
1.87
1.93

16.60
7.70
64.11
6.53
1.89
3.17

15.67
7.79
64.78
6.01
1.74
4.01

12.81
7.48
67.01
5.15
1.69
5.86

9.27
7.97
68.89
3.83
1.58
8.46

Current operating expenses— total....................

74.21

76.73

75.28

76.44

75.57

76.33

76.41

76.36

74.10

72.56

Salaries, wages, and fees..................................
Officer and employee benefits..........................
Interest on time and savings deposits............
Occupancy expense of bank premises—n e t...
Furniture and equipment..................................
Other current operating expenses...................

22.81
3.13
30.16
4.35
2.45
11.31

38.19
2.04
16.94
4.36
1.97
13.23

32.63
2.03
22.73
3.87
2.10
11.92

28.48
2.21
26.97
4.11
2.44
12.23

25.74
2.46
28.65
4.24
2.51
11.97

24.56
2.69
29.66
4.47
2.60
12.35

24.34
2.88
29.59
4.58
2.69
12.33

23.61
3.09
29.93
4.72
2.90
12.11

23.26
3.24
28.16
4.41
2.99
12.04

20.57
3.45
32.00
4.23
2.07
10.24

Net current operating earnings.........................

25.79

23.27

24.72

23.56

24.43

23.67

23.59

23.64

25.90

27.44

4.49
3.33
1.16

4.71
3.61
1.10

4.66
3.51
1.15

4.63
3.54
1.09

4.67
3.53
1.14

4.73
3.61
1.12

4.72
3.61
1.11

4.66
3.56
1.10

4.57
3.39
1.18

4.30
3.12
1.18

.10

.14

.09

.08

.09

.08

.08

.09

.13

.11

.31
.95
.67

.31
.93
.74

.25
.99
.78

.29
.88
.67

.31
.92
.67

.31
.89
.64

.29
.90
.63

.29
.90
.62

.29
1.02
.71

.34
.95
.68

(3
)
.03

.02

(3
)
.03

(3
)
.04

(3
)
.05

(3
)
.05

(3
)
.04

(3
)
.04

(3
)
.03

(3
)
.02

.01
.11

(3
)
.05

(3
)
.07

(3
)
.10

(3
)
.13

(3
)
.15

(3
)
.14

.01
.14

.01
.11

.01
.10

Amounts per $100 of total assets2

Current operating revenue—total........................
Current operating expenses—total......................
Net current operating earnings............................
Recoveries, transfers from valuation reserves,
and profits—total.............................................
Losses, charge-offs, and transfers to valuation
reserves—total.................................................
Net income before related taxes..........................
Net income after related taxes.............................
Memoranda

Recoveries credited to valuation reserves (not
included in recoveries above):
On securities........................................................
On loans...............................................................
Losses charged to valuation reserves (not in­
cluded in losses above):
On securities........................................................
On loans...............................................................




CORPORATION

$100.00

25.34
3.47
60.00
4.67
4.27
2.25

INSURANCE

$100.00

13.21
7.65
66.64
5.01
1.81
5.68

DEPOSIT

$100.00

Interest on U. S. Government obligations.......
Interest and dividends on other securities....
Income on loans.................................................
Service charges on deposit accounts..............
Other service charges, commissions, fees, etc.
Other current operating revenue.....................

FEDERAL

Amounts per $100 of current
operating revenue
Current operating revenue— total......................

All
banks1

Amounts per $100 of total
capital accounts2

Net current operating earnings...........................
Recoveries, transfers from valuation reserves,
and profits—total................................................
Losses, charge-offs, and transfers to valuation
reserves—total....................................................
Net income before related taxes.........................
Taxes on net income.............................................
Net income after taxes..........................................
Cash dividends declared.......................................
Net additions to capital from income.................

14.54

8.68

10.64

11.55

13.65

14.56

15.06

14.83

15.41

1.31

1.10

.84

.89

1.04

1.07

1.01

1.18

1.70

1.36

3.95
11.90
3.45
8.45
4.03
4.42

2.41
7.37
1.52
5.85
1.95
3.90

2.33
9.15
1.95
7.20
2.46
4.74

3.07
9.37
2.23
7.14
2.35
4.79

3.66
11.03
2.98
8.05
2.77
5.28

4.01
11.62
3.35
8.27
2.99
5.28

3.93
12.14
3.68
8.46
3.34
5.12

3.95
12.06
3.75
8.31
3.56
4.75

3.82
13.29
4.00
9.29
4.31
4.98

4.16
11.87
3.44
8.43
4.73
3.70

.01
.42

.14

.27

.01
.43

.57

.01
.64

.01
.59

.02
.54

.01
.41

.02
.31

.66

.01
1.10

.01
1.60

.04
1.93

.05
1.91

.11
1.91

.14
1.47

.10
1.23

14.67

Memoranda

.09
1.44

C)

.37

0)

(:i)

O

Special ratios2

6.65

6.41

6.30

6.28

6.14

5.95

5.80

5.66

5.22

3.78

3.66

3.70

3.70

3.79

3.85

3.91

3.84

3.67

2.89
.46

2.72
.36

2.84
.40

2.63
.51

2.68
.61

2.68
.71

2.68
.65

2.78
.58

2.85
.46

3.09
.34

3.44

3.06

3.09

3.10

3.14

3.17

3.22

3.30

3.38

3.69

4.23

BANKS

Occupancy expense of bank premises
per $100 of current operating
revenue
Occupancy expense of bank premises, n e t total .............................................................

5.59
3.76

O INSURED
F

Income on loans per $100 of loans....................
Income on U. S. Government obligations per
$100 of U. S. Government obligations.........
Income on other securities per $100 of other
securities..........................................................
Service charges per $100 of demand deposits...
Interest paid per $100 of time and savings
deposits............................................................

INCOME

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

4.36

3.87

4.11

4.24

4.47

4.58

4.72

4.41

.99

.25

.27

.34

.37

.50

.86

1.26

1.65

10
.0

5.34

4 1
.6

4.14

4.45

4.61

4.97

5.44

5.98

6.06

5.23

Salaries and wages—building department
officers and employees..................................
Building department personnel benefits........
Recurring depreciation......................................
Maintenance and repairs..................................
Insurance and utilities.......................................
Rents paid...........................................................
Taxes................................................................

.58
.07
.96
.60
.92
1.44
.77

.20
.01
.47
.69
1.95
.48
.81

.29
.01
.71
.63
1.44
.42
.64

.41
.02
.89
.56
1.19
.67
.71

.48
.03
.98
.55
1.04
.78
.75

.54
.04
1.04
.61
.95
.99
.80

.62
.06
1.02
.72
.91
1.30
.81

.70
.07
1.04
.76
.91
1.63
.87

.79
.09
1.01
.70
.89
1.74
.84

.51
.08
.89
.53
.88
1.62
.72

Number of banks, December 3 1 .........................

13,366

521

1,790

4,301

3,046

2,295

691

330

302

90

1This group of banks is the same as the group shown in Table 115 under the heading "Operating throughout the year” . These ratios differ slightly from the ratios for all insured commercial banks shown in Tables
114 and 116.
2 For asset and liability data, see Table 110, p. 145.
3 Less than .005.
Back figures, 1941-1964: See the Annual Report for 1964, pp. 204-205, and earlier reports.




163

4.35

Rental and other income......................................
Occupancy expense of bank premises, grosstotal .............................................................

Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1965
(Amounts in thousands of dollars)

16
4

Income item

Total
United
States

Current operating revenue— total..................

Other areas
Puerto
Rico

50 States
and
D.C.

Virgin
Islands

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecti­
cut

163,266

22,402

128,236

96,072

2,049,372

161,549

196,877

43

2,220,892
1,283,725
10,963,196
201,988
841,105
301,058
689,602
264,867

26,331
13,101
103,606
1,365
10,789
3,248
3,517
1,309

3,216
1,379
13,695
1,411
1,743
674
85
199

9,961
7,534
90,293
3,695
9,735
2,411
3,170
1,437

12,750
9,142
63,822
297
5,518
2,656
992
865

194,449
127,360
1,407,004
51,372
137,125
33,385
58,773
39,904

20,653
7,815
104,885
2,391
13,276
3,222
6,454
2,853

17,226
13,966
128,832
1,832
12,507
3,025
17,119
2,370

Current operating expenses— total................

12,486,120

39,279

1,537

12,445,304

116,094

16,355

103,228

69,651

1,614,549

126,730

145,160

Salaries—officers............................................
Salaries and wages—other employees........
Officer and employee benefits.....................
Fees paid to directors and committees ...
Interest on time and savings deposits........
Interest on borrowed money........................
Occupancy expense of bank premises—net
Furniture and equipment..............................
Other current operating expenses...............

1,392,765
2,369,259
525,692
77,093
5,070,781
189,519
731,573
411,889
1,717,549

4,411
9,064
1,515
190
12,488
321
2,170
1,256
7,864

172
363
56
9
604
22
42
40
229

1,388,182
2,359,832
524,121
76,894
5,057,689
189,176
729,361
410,593
1,709,456

16,727
22,451
4,442
985
42,236
128
5,488
4,554
19,083

2,510
3,895
653
51
4,888
35
1,115
759
2,449

11,393
22,117
3,971
164
38,981
378
7,330
4,489
14,405

11,595
12,080
2,516
1,101
23,094
263
4,189
2,596
12,217

156,804
312,207
61,152
1,640
755,078
20,744
92,967
51,002
162,955

16,788
23,821
4,254
1,131
44,699
1,145
9,297
5,680
19,915

18,712
33,806
8,001
891
44,112
759
10,034
6,607
22,238

Net current operating earnings.....................

4,331,067

9,435

53
0

4,321,129

47,172

6,047

25,008

26,421

434,823

34,819

51,717

Recoveries, transfers from valuation re­
serves , and profits— total........................

390,368

1,665

8

388,695

2,433

46
5

4,026

1,367

49,125

4,128

7,140

84,619
7,114
97,435

467

84,152
7,114
97,435

1,504
1
1
46

373

690
64
1,819

548
20
50

10,494
3,020
11,006

710
70
383

1,056
3
484

17,962
84,001
99,237

123
35
1,040

8

17,839
83,966
98,189

277
222
373

83

16
208
1,229

424
97
228

694
16,922
6,989

375
144
2,446

8
257
5,332

1,177,540

2,637

5
3

1,174,850

9,661

1,369

10,935

5,945

135,357

11,252

15,648

85,045
9,224
63,370

201

306
148
186

14

103

5

84,844
9,224
63,365

6

686

307
98
127

5,957
234
8,927

351
102
257

994
5
365

36,188
846,877
136,836

817
1,405
209

48
5

35,371
845,424
136,622

536
7,387
1,098

1,148
201

42
9,286
818

845
3,513
1,055

1,415
101,849
16,975

1,488
8,004
1,050

13
9,664
4,607

3,543,895

8,463

48
5

3,534,974

39,944

5,134

18,099

21,843

348,591

27,695

43,209

On securities:
Profits on securities sold or redeemed...
Recoveries......................
.................
Transfers from valuation reserves
On loans:
Recoveries...................................................
Transfers from valuation reserves...........
All other...........................................................
Losses, charge-offs, and transfers to valu­
ation reserves— total................................

On securities:
Losses on securities sold...........................
Charge-offs prior to sale............................
Transfers to valuation reserves................
On loans:
Losses and charge-offs..............................
Transfers to valuation reserves................
All other...........................................................

Digitized forNet income before related taxes...................
FRASER


CORPORATION

16,766,433

293
27
1,417
156
29
75

INSURANCE

2,040

3,526
1,535
35,254
2,852
1,641
3,143
26
737

DEPOSIT

48,714

FEDERAL

16,817,187

Interest on U. S. Government obligations... 2,224,711
Interest and dividends on other securities.. 1,285,287
Interest and discount on loans.................... 10,999,867
204,996
Service charges and fees on loans..............
842,775
Service charges on deposit accounts..........
304,276
Other charges, commissions, fees, etc.......
689,628
265,647
Other current operating revenue.................

Taxes on net income—total.............................
Federal............................................................
State................................................................

1,029,162

87
2

27
5

1,028,078

11,727

1,782

4,724

5.083

111,123

8,909

562
265

13,544

927,423
101,739

257

926,604
101,474

10,128
1,599

1,778
4

4,349
375

5.083

79,758
31,365

7,359
1,550

9,902
3,642

201

2,514,733

7,636

2,506,896

28,217

3,352

‘13,375

16,760

237,468

18,786

29,665

Dividends and interest on capital—total........
Cash dividends declared on common stock
Dividends declared on preferred stock and
interest on capital notes and debentures

1,202,349

2,840

1,199,509

10.426

43
8

8,191

5,003

140,095

9,522

1,146,186

2,582

1,143,604

10.426

14,419

483

6,788

4,964

125,289

9,206

14,411

56,163

258

55,905

1,403

39

14,806

316

Net additions to capital from income............

1,312,384

4,796

5,184

11,757

97,373

9,264

15,246

Number of banking employees (exclusive of
building employees), December 31:
Active officers...............................................
Other employees..........................................

130,042
569,276

526
2,540

1,745
6,553

168
754

1,063
5,388

1,363
3,506

14,703
66,642

1,575
5,777

1,529
7,767

4,158
124,003

7
1,773

765

1,585

5
845

205
14,099

1,987

902

681

25,761
428,757

7
5,531

1,469

8,153

1
2,452

3,415
66,940

85
7,011

33
3,946

731,573

2,170

729,361

5,488

1,115

7,330

4,189

92,967

9,297

166,867

10,034

399

166,462

1,037

134

1,166

579

10,308

3,080

1,567

895,823

6,525

1,249

8,496

4,768

103,275

12,377

1
1,601

2,706

23

52

7

319

27

94,511
11,357
160,573
100,900
154,904
242,158
128,714

817
80
1,266
702
1,294
2,056
287

521
71
1,423
644
1,887
3,190
708

599
59
1,268
456
982
728
669

4,414
12,821
15,177
15,110
42,640
12,108

1,125
103
1,407
1,469
1,672
5,210
1,364

1,209
123
1,978
1,135
2,217
3,348
1,583

4
135

23
963

6

316

354

1
324

242

193

210

898,440

4
8

2,716
94,688
11,380
160,888
101,322
155,298
243,044
129,104

177
23
309
419
389
854

Number of building employees, December
31:
Officers..........................................................
Other employees..........................................

444
32,401

443
32,343

408

Number of banks, December 3 1 ...................

13,547

13,539

263

Note: For average asset and liability data by State, see Table 111, pp. 146-147.
Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.




12

47
3
228
191
394
257
129

2

686

165

25,761
429,490

BANKS

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e ttotal.............................................................
Rental and other income................................
Occupancy expense of bank premises,
gross—total................................................
Salaries—building department officers__
Salaries and wages—building department
employees..................................................
Building department personnel benefits..
Recurring depreciation................................
Maintenance and repairs............................
Insurance and utilities.................................
Rents paid.....................................................
Taxes..............................................................

17,791

129,503
566,644

4,158
124,062

1,307,387

O INSURED
F

Memoranda
Recoveries credited to valuation reserves
(not included in recoveries above):
On securities.................................................
On loans.........................................................
Losses charged to valuation reserves (not
included in losses above):
On securities.................................................
On loans.........................................................

201

INCOME

Net income after related taxes.......................

Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
BY STATE, 1965— CONTINUED
166

(Amounts in thousands of dollars)

Delaware

District
of
Columbia

54,188

111,343

380,657

260,101

59,962

51,348

1,197,465

338,519

213,914

165,578

157,596

20,360
3,176
71,244
1,611
6,606
1,190
6,384
772

70,530
26,424
221,141
6,510
30,184
8,127
11,787
5,954

31,299
13,900
168,065
5,807
19,603
10,237
8,783
2,407

6,032
3,353
42,828
2,470
2,240
2,328

Other current operating revenue.................

8,491
4,481
28,601
825
1,381
566
8,422
1,421

711

6,356
2,834
34,578
1,222
4,676
900
357
425

208,105
110,219
730,293
9,532
39,235
14,328
62,171
23,582

70,786
19,708
209,691
2,617
15,454
7,470
9,229
3,564

41,924
15,133
135,545
772
11,082
4,446
3,135
1,877

33,003
13,639
101,233
754
10,823
2,963
1,645
1,518

30,478
10,466
99,459
1,459
6,222
1,763
6,092
1,657

Current operating expenses—to ta l...................

31,086

75,889

294,154

192,220

45,262

37,040

883,777

250,178

157,351

115,569

108,944

Salaries—officers............................................
Salaries and wages—other employees........
Officer and employee benefits.....................
Fees paid to directors and committees ....
Interest on time and savings deposits........
Interest on borrowed money........................
Occupancy expense of bank premises—net.
Furniture and equipment..............................
Other current operating expenses...............

4,916
8,224
1,583
271
7,452
109
1,939
1,767
4,825

8,591
16,131
2,349
574
27,394
698
5,243
2,908
12,001

37,398
60,687
10,868
2,725
98,501
1,789
17,630
14,686
49,870

25,840
39,528
9,597
1,982
58,076
1,710
13,311
7,567
34,609

4,583
9,852
2,826
228
17,151
131
2,586
2,122
5,783

5,262
7,279
1,729
200
13,660
263
1,901
1,548
5,198

90,447
146,588
34,956
5,569
406,591
18,926
42,088
25,734
112,878

33,280
46,880
9,644
2,526
88,204
3,387
14,808
8,905
42,544

30,714
24,388
5,299
1,351
57,196
388
8,324
5,426
24,265

23,490
18,664
3,947
1,574
38,900
566
6,280
4,148
18,000

17,304
20,709
4,295
1,468
35,232
408
6,427
3,974
19,127

Net current operating earnings.........................

23,102

35,454

86,503

67,881

14,700

14,308

313,688

88,341

56,563

50,009

48,652

Recoveries, transfers from valuation re­
serves, and profits—to ta l.............................

1,919

998

5,628

3,538

413

389

39,171

12,289

2,963

3,039

6,913

893
154
25

282

971
71
290

1,451
137
90

49

27
5
212

10,730
375
12,710

1,732
71
5,185

1,185
26
74

649
190
111

1,412
76
420

33
598
216

117
26
573

295
1,246
2,755

276
403
1,181

4

59

360

86

684
6,172
8,500

271
1,145
3,885

513
584
581

931
303
855

432
2,664
1,909

5,956

5,454

30,282

18,294

3,033

1,953

75,433

28,158

10,732

12,152

11,309

95
1
367

502
14

1,790
229
196

997
62
337

633

527
2
19

9,288
746
8,184

3,395
271
3,840

1,273
273
237

588
342
147

387
232
1,043

50
3,255
2,188

259
4,020
659

2,164
22,628
3,275

442
13,688
2,768

2,099
301

138
1,136
131

1,363
45,557
10,295

448
15,667
4,537

586
6,302
2,061

2,482
6,361
2,232

820
6,900
1,927

19,065

30,998

61,849

53,125

12,080

12,744

277,426

72,472

48,794

40,896

44,256

Income item
Current operating revenue—to ta l......................

Net income
 before related


ta xe s ......................

Indiana

Iowa

Kansas

Kentucky

CORPORATION

On securities:
Losses on securities sold...........................
Charge-offs prior to sale
Transfers to valuation reserves
On loans:
Losses and charge-offs
Transfers to valuation reserves................
All other...........................................................

Illinois

INSURANCE

Losses, charge-offs, and transfers to valu­
ation reserves—to ta l.....................................

Idaho

Hawaii

DEPOSIT

On securities:
Profits on securities sold or redeemed...
Recoveries
.............
Transfers from valuation reserves
On loans:
Recoveries...................................................
Transfers from valuation reserves
All other................................................. ..........

Georgia

FEDERAL

Interest on U. S. Government obligations...
Interest and dividends on other securities..
Interest and discount on loans....................
Service charges and fees on loans..............
Service charges on deposit accounts.........
Other charges, commissions, fees, etc.......

Florida

13.295

18.713

15.501

3,729

4,841

79.773

22.641

13.600

11,220

14.624

7,222
469

13.295

18.713

15.501

3,426
303

3,972
869

79.773

22.641

13.600

10,223
997

14.624

Net income after related ta xe s .........................

11,374

17,703

43,136

37,624

8,351

7,903

197,653

49,831

35,194

29,676

29,632

Dividends and interest on capital—to ta l.........

6,821

8,411

17,183

16,328

5,417

3,575

70,653

17,210

12,261

9,939

10,431

Cash dividends declared on common stock.
Dividends declared on preferred stock and
interest on capital notes and debentures

6,821

8,339

16,947

14,807

4,358

3,495

70,349

16,727

12,246

9,917

10,428

72

236

1,521

1,059

80

304

483

15

22

3

Net additions to capital from incom e.............

4,553

9,292

25,953

21,296

2,934

4,328

127,000

32,621

22,933

19,737

19,201

Number of banking employees (exclusive of
building employees), December 31:
Active officers.................................................
Other employees............................................

413
2,109

623
3,552

3,765
16,627

2,624
10,155

403
2,320

490
1,990

7,585
33,453

3,266
12,569

3,163
7,082

2,578
5,363

2,071
5,934

Memoranda

Recoveries credited to valuation reserves
(not included in recoveries above):
374

50
4,568

26
2,086

12
281

179

2,269
7,444

70
3,199

9
1,472

10
1,386

73
1,207

735
226

2,385

112
19,351

51
5,370

12
1,447

683

2,806
25,927

328
9,334

99
3,276

5
4,271

105
3,004

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t to ta l....................................................................

1,939

5,243

17,630

13,311

2,586

1,901

42,088

14,808

8,324

6,280

6,427

Rental and other income..................................

250

994

5,166

2,287

758

366

8,603

3,488

1,347

1,339

1,265

Occupancy expense of bank premises,
gross—to ta l......................................................

2,189

6,237

22,796

15,598

3,344

2,267

50,691

18,296

9,671

7,619

7,692

8

94

32

45

1

163

34

16

31

4

8,021
787
8,827
6,135
7,395
12,053
7,310

2,748
202
3,686
2,502
3,276
3,678
2,170

1,316
93
1,759
1,082
1,939
2,111
1,355

982
73
1,519
999
1,547
1,477
991

1,102
90
1,442
1,032
1,539
1,531
952

203
28
382
216
325
927
108

1,102
95
866
722
685
2,096
663

2,164
211
4,118
2,699
4,595
4,683
4,232

1,178
126
2,231
2,083
2,402
4,636
2,910

205
50
446
472
604
1,249
273

222
13
572
162
432
531
334

Number of building employees, December
Q1•
O1.
Officers............................................................
Other employees............................................

73

1
312

25
713

12
487

3
94

3
89

21
2,165

5
1,059

14
812

9
507

3
557

Number of banks, December 3 1 ....................

20

15

440

387

7

25

1,044

418

659

596

340

Note: For average asset and liability data by State, see Table 111, pp. 146-147.
Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.




167

Salaries—building department officers.......
Salaries and wages—building department
employees...................................................
Building department personnel benefits. ..
Recurring depreciation..................................
Maintenance and repairs..............................
Insurance and utilities..................................
Rents paid......................................................
Taxes...............................................................

BANKS

180

O INSURED
F

On loans..........................................................
Losses charged to valuation reserves (not
included in losses above):
On securities
...................................
On loans..........................................................

INCOME

7,691

Federal.............................................................
State

Taxes on net income—to ta l................................

Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
BY STATE, 1965— CONTINUED
168

(Amounts in thousands of dollars)
Income item

Louisiana

Maine

Maryland

Massa­
chusetts

Michigan

Minne­
sota

Mis­
sissippi

Missouri

Montana

Nebraska

Nevada

396,741

706,651

312,530

102,736

391,458

60,336

116,202

42,537

26,340
11,632
116,851
3,411
13,050
3,452
3,925
1,958

38,731
20,200
260,617
3,846
25,016
12,819
26,431
9,081

112,612
57,847
462,483
7,536
28,874
11,055
20,301
5,943

52,633
23,430
188,158
2,291
17,838
15,941
9,526
2,713

15,284
11,083
62,864
395
6,468
4,404
964
1,274

68,142
31,793
251,099
2,144
15,948
5,894
11,409
5,029

9,407
3,755
39,000
1,022
4,143
1,761
585
663

19,003
7,084
76,743
460
6,707
2,298
2,487
1,420

5,530
2,282
28,310
1,065
2,932
641
1,216
561

Current operating expenses—to ta l...................

144,017

35,670

130,440

269,493

565,131

237,249

73,866

278,732

45,159

83,069

30,778

Salaries—officers............................................
Salaries and wages—other employees........
Officer and employee benefits.....................
Fees paid to directors and committees
Interest on time and savings deposits........
Interest on borrowed money........................
Occupancy expense of bank premises—net.
Furniture and equipment..............................
Other current operating expenses...............

18,469
27,593
5,508
1,929
44,017
2,265
10,226
5,234
28,776

4,340
7,647
1,293
391
12,222
209
2,469
1,257
5,842

13,124
29,568
5,606
1,082
42,588
1,628
9,086
5,634
22,124

33,704
69,780
15,263
1,553
64,047
6,810
20,681
12,125
45,530

42,871
98,234
21,457
2,439
282,838
3,087
28,779
15,179
70,247

35,616
38,105
9,327
2,207
94,278
3,694
12,228
8,140
33,654

11,787
13,382
3,269
1,022
23,310
1,135
3,330
2,677
13,954

36,115
51,691
9,518
2,694
107,167
3,993
15,080
9,523
42,951

7,331
7,072
1,999
380
15,681
301
2,112
1,594
8,689

17,666
14,132
3,651
1,166
23,453
1,089
4,454
3,682
13,776

3,941
6,559
953
89
11,154
50
2,342
1,320
4,37.0

N et current operating earnings.......................

55,014

11,831

50,179

127,248

141,520

75,281

28,870

112,726

15,177

33,133

11,759

Recoveries, transfers from valuation re­
serves, and profits—to ta l.............................

4,420

543

2,637

10,817

18,947

5,520

3,517

12,959

3,369

2,308

4,197

1,808
67
727

92
158
75

335
36
162

1,041
193
3,623

2,028
75
2,983

759
234
324

561
447
708

2,468
82
3,190

222
122
809

504
160
431

50
3,283

437
695
686

51
19
148

138
329
1,637

170
1,232
4,558

229
1,143
12,489

586
2,364
1,253

421
541
839

609
4,627
1,983

680
231
1,305

200
405
608

864

15,610

On securities:
Profits on securities sold or redeemed...
Recoveries...................................................
Transfers from valuation reserves...........
On loans:
Recoveries
Transfers from valuation reserves
All other...........................................................
Losses, charge-offs, and transfers to valu­
ation reserves—to ta l.....................................

3,451

12,845

32,277

51,524

17,250

10,715

31,304

7,087

7,305

3,523

On securities:
Losses on securities sold.........................
Charge-offs prior to sale............................
Transfers to valuation reserves................
On loans:
Losses and charge-offs..............................
Transfers to valuation reserves................
All other...........................................................

422
274
1,587

772
51
62

1,393
66
749

5,530
28
1,507

4,253
114
5,596

1,455
344
82

489
939
2,163

3,131
1,920
1,561

248
62
565

642
255
188

1,298

702
10,599
2,026

21
1,925
620

207
8,612
1,818

293
17,838
7,081

603
34,469
6,489

963
12,598
1,808

666
5,105
1,353

1,467
19,564
3,661

369
5,261
582

352
4,941
927

1,896
329

Net income before related ta xe s ......................

43,824

8,923

39,971

105,788

108,943

63,551

21,672

94,381

11,459

28,136

12,433




CORPORATION

180,619

5,841
2,780
32,492
459
2,942
569
1,982
436

INSURANCE

47,501

35,831
15,093
124,750
1,402
11,818
6,355
1,498
2,284

DEPOSIT

199,031

Interest on U. S. Government obligations...
Interest and dividends on other securities..
Interest and discount on loans....................
Service charges and fees on loans..............
Service charges on deposit accounts..........
Other charges, commissions, fees, etc.......
Trust department...........................................
Other current operating revenue.................

FEDERAL

Current operating revenue—to ta l......................

Taxes on net income—to ta l................................

14.052

2.774

Federal............................................................
State................................................................

13.159

41,881

14.052

19.351

21,482

2.774

5.369

13.159

34,258
7,623

29,788

4,053

19.351

15,934
5,548

28,041
1,747

3,692
361

o o
o o
8 o
o 8o
o

3.237

5.369

Net income after related taxes..........................

29,772

6,149

26,812

63,907

89,592

42,069

16,303

64,593

7,406

20,038

9,196

Dividends and interest on capital—to ta l.........

11,693

2,945

11,804

34,519

Cash dividends declared on common stock.
Dividends declared on preferred stock and
interest on capital notes and debentures.

38,454

6,584

11,498

2,940

18,437

11,577

34,219

26,668

4.038

7,467

35,910

18,198

6,556

25,386

4.038

7,462

3,100

195

5

227

300

2,544

239

28

1,282

5

62

Net additions to capital from incom e.............

18,079

3,204

15,008

29,388

51,138

23,632

9,719

37,925

3,368

12,571

6,034

Number of banking employees (exclusive of
building employees), December 31:
Active officers.................................................
Other employees............................................

1,748
7,190

478
2,196

1,325
7,800

2,696
16,651

3,672
23,932

3,679
10,207

1,263
3,839

3,774
13,879

736
1,935

1,891
3,994

395
1,519

3.237

3,162

794

17
2,954

5
6,953

1,813

7
1,225

24
2,254

28
423

10
1,590

52
265

1
'6
3,830

47
1,222

140
2,631

1,061
9,790

83
16,235

3,758

70
2,820

749
8,508

5
4,892

163
3,684

12
1,299

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t to ta l....................................................................

10,226

2,469

Rental and other income..................................

9,086

20,681

28,779

562

12,228

3,330

2,628

3,357

15,080

2,112

4,454

1,277

3,301

4,637

1,884

2,342

Occupancy expense of bank premises,
gross—to ta l......................................................

3,013

711

1,250

500

12,854

3,031

10,363

24,038

32,080

16,865

5,214

149

18,093

2,823

19

5,704

145

23

2,842

Salaries—building department officers.......
Salaries and wages—building department
employees...................................................
Building department personnel benefits .
Recurring depreciation.................................
Maintenance and repairs..............................
Insurance and utilities..................................
Rents paid.......................................................
Taxes...............................................................

1,900
143
2,166
1,291
1,840
2,542
2,926

458
33
559
283
493
775
430

814
100
1,839
1,584
1,655
3,279
1,073

2,565
418
3,924
2,477
4,535
4,810
5,160

4,129
555
6,102
4,232
5,786
6,921
4,210

1,324
95
2,411
1,809
3,431
5,418
2,354

501
52
870
802
1,076
733
1,180

2,211
268
4,595
2,579
3,337
3,295
1,762

Number of building employees, December
31:
Officers.........................................................
Other employees............................................

5
681

237

3
302

27
853

17
1,376

8
669

1
253

Number of banks, December 3 1 ....................

213

39

121

156

352

717

196

46




16

10

384
40
574
289
486
459
591

734
74
942
640
986
1,525
787

328
20
639
403
497
607
338

17
868

181

7
430

1
76

644

129

430

9

169

Note: For average asset and liability data by State, see Table 111, pp. 146-147.
Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.

46

BANKS

27
554

O INSURED
F

15
1,459

INCOME

Memoranda

Recoveries credited to valuation reserves
(not included in recoveries above):
On securities...................................................
On loans..........................................................
Losses charged to valuation reserves (not
included in losses above):
On securities...................................................
On loans..........................................................

170

Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
BY STATE, 1965— CONTINUED
(Amounts in thousands of dollars)
Income item

New
Hampshire

New
Jersey

New
Mexico

New
York

North
Carolina

North
Dakota

Ohio

Oklahoma

Oregon

Pennsyl­
vania

Rhode
Island

3,086,702

236,818

50,413

753,587

186,834

158,269

1,028,629

66,813

7,982
2,558
36,104
520
4,184
1,507
859
464

273,745
275,559
2,075,146
29,245
91,582
42,145
217,468
81,812

26,091
16,794
153,543
4,947
14,944
10,153
7,667
2,679

10,032
4,348
29,484
334
2,585
2,872
359
399

120,954
61,876
484,013
5,205
35,875
9,204
29,265
7,195

30,291
11,450
123,668
1,318
12,562
2,934
2,624
1,987

17,121
10,854
105,698
2,160
14,422
1,967
3,998
2,049

131,088
94,892
669,919
8,236
34,235
12,858
63,585
13,816

4,802
7,333
44,061
538
3,164
887
5,224
804

Current operating expenses—to ta l...................

25,065

397,938

42,368

2,231,795

172,676

37,567

555,862

132,735

125,512

747,627

50,669

Salaries—officers............................................
Salaries and wages—other employees........
Officer and employee benefits.....................
Fees paid to directors and committees.......
Interest on time and savings deposits........
Interest on borrowed money........................
Occupancy expense of bank premises—net.
Furniture and equipment..............................
Other current operating expenses...............

3,367
4,427
1,083
345
8,955
77
1,429
1,011
4,371

39,412
81,455
17,701
3,127
153,862
3,602
25,683
14,158
58,938

6,253
8,846
1,308
408
12,602
134
2,737
2,013
8,067

173,901
444,394
119,000
5,322
983,112
69,065
147,377
51,731
237,893

24,843
37,450
7,284
960
58,409
1,582
10,123
6,408
25,617

6,460
5,166
1,436
408
15,419
110
1,999
1,226
5,343

52,247
102,278
18,987
3,351
241,902
4,820
25,461
16,511
90,305

24,012
23,014
5,061
1,364
44,534
1,676
7,048
5,223
20,803

16,659
23,312
4,389
292
54,755
371
6,990
4,261
14,483

74,239
138,807
33,888
6,189
305,744
11,363
41,698
26,044
109,655

4,127
9,221
2,738
226
24,296
371
2,348
1,582
5,760

Net current operating earnings.........................

8,351

117,402

11,810

854,907

64,142

12,846

197,725

54,099

32,757

281,002

16,144

Recoveries, transfers from valuation re­
serves, and prof its—to ta l.............................

1,373

10,442

1,446

59,862

5,769

834

15,640

3,220

7,172

24,300

7,474

414

239

4,475
335
6,185

1,479

On securities:
Profits on securities sold or redeemed...
Recoveries
. ...
Transfers from valuation reserves...........
On loans:
Recoveries...................................................
Transfers from valuation reserves
All other...........................................................

784
55
101

4,537
39
1,007

489

9,991
252
22,943

2,149
6
63

257
4
2

2,013
54
5,487

1,631
10
21

6,542

65
16
352

253
1,733
2,873

141
172
230

1,189
14,915
10,572

53
1,803
1,695

81
141
349

544
4,685
2,857

968
51
539

334

651
8,931
3,723

13
3,942
1,752

Losses, charge-offs, and transfers to valu­
ation reserves—to ta l.....................................

2,577

29,688

4,120

267,354

13,308

2,380

38,591

13,381

9,108

66,588

2,876

176
50
6

4,856
158
1,583

601
61
105

74

127
201

57

288

On securities:
Losses on securities sold...........................
Charge-offs prior to sale
Transfers to valuation reserves................
On loans:
Losses and charge-offs
Transfers to valuation reserves................
All other...........................................................

252
96
199

4,134
52
2,505

179
15
73

8,026
240
6,227

375
62
1,468

839

7,288
308
4,678

142
1,493
395

422
17,235
5,340

167
3,264
422

893
237,379
14,589

135
8,590
2,678

290
1,411
447

961
28,298
2,735

2,025
9,634
955

58
6,808
1,329

1,554
45,938
6,822

1,822
726

Net income before related taxes.......................

7,147

98,156

9,136

647,415

56,603

11,300

174,774

43,938

30,821

238,714

20,742




CORPORATION

54,178

66,715
51,858
335,170
4,624
29,432
5,959
16,971
4,611

INSURANCE

515,340

3,551
1,563
23,969
281
2,536
485
596
435

DEPOSIT

33,416

Interest on U. S. Government obligations...
Interest and dividends on other securities..
Interest and discount on loans....................
Service charges and fees on loans..............
Service charges on deposit accounts.........
Other charges, commissions, fees, etc.......
Trust department...........................................
Other current operating revenue.................

FEDERAL

Current operating revenue—to ta l......................

Taxes on net income—to ta l................................

2.344

21.693

2.948

160,398

20,224

3,482

50.744

14,714

8,793

62,121

3,590

Federal.............................................................
State ...............................................................

2.344

21.693

2.948

127,245
33,153

18,543
1,681

3,250
232

50.744

13,414
1,300

6,387
2,406

62,121

2,771
819

Net income after related taxes.........................

4,803

76,463

6,188

487,017

36,379

7,818

124,030

29,224

22,028

176,593

17,152

Dividends and interest on capital—to ta l.........

1.624

34,681

3,208

292,231

15,149

3.146

48,428

15,221

9.781

91,951

5.217

Cash dividends declared on common stock.
Dividends declared on preferred stock and
interest on capital notes and debentures.

1.624

32,718

3,172

270,097

13,422

3.146

48,231

14,370

9.781

90,870

5.217

1,963

36

22,134

1,727

197

851

Net additions to capital from incom e.............

3,179

41,782

2,980

194,786

21,230

4,672

75,602

14,003

12,247

84,642

11,935

Number of banking employees (exclusive of
building employees), December 31:
Active officers.................................................
Other employees............................................

370
1,291

3,425
19,588

604
2,336

12,232
89,941

2,476
10,701

734
1,522

4,588
24,594

2,502
6,264

1,700
5,593

6,991
33,724

362
2,315

234

14
3,830

1,110

461
18,084

86
706

183

82
4,838

2,829

710

142
5,214

284

856

674
11,257

3,552

5,442
75,914

1,476
3,005

484

1,401
12,093

222
8,559

2,594

4,248
18,308

884

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t total ....................................................................

1,429

25,683

2,737

147,377

10,123

1,999

25,461

7,048

6,990

41,698

2,348

Rental and other income..................................

165

2,996

518

30,193

2,105

415

12,522

4,229

398

6,780

1,622

Occupancy expense of bank premises,
gross—to ta l......................................................

1,594

28,679

177,570

12,228

2,414

37,983

11,277

7,388

48,478

3,970

418

34

1

148

35

73

194

38

1,081

404
49
640
411
493
908
350

13,787
2,428
33,218
14,175
32,302
55,089
26,153

1,189
110
2,622
1,406
2,349
3,456
1,062

264
21
615
171
562
396
384

6,358
707
6,902
4,645
6,365
9,676
3,182

1,499
167
2,169
1,141
2,181
3,294
791

729
76
1,731
1,158
1,305
1,175
1,141

8,169
1,084
9,101
4,963
7,939
11,548
5,480

945
148
593
335
537
724
650

Number of building employees, December
31:
Officers............................................................
Other employees............................................

95

4
950

130

71
3,158

2
561

3
175

27
2,201

9
588

7
206

24
2,808

5
279

Number of banks, December 3 1 ....................

71

230

64

316

145

163

541

420

48

561

9

Note: For average asset and liability data by State, see Table 111, pp. 146-147.
Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.




171

3,022
424
4,915
4,285
4,334
6,170
5,489

BANKS

181
14
297
132
243
427
300

O INSURED
F

3,255

40

Salaries—building department officers.......
Salaries and wages—building department
employees...................................................
Building department personnel benefits .
Recurring depreciation..................................
Maintenance and repairs..............................
Insurance and utilities...................................
Rents paid.......................................................
Taxes...............................................................

INCOME

Memoranda

Recoveries credited to valuation reserves
(not included in recoveries above):
On securities...................................................
On loans..........................................................
Losses charged to valuation reserves (not
included in losses above):
On securities...................................................
On loans..........................................................

Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
BY STATE, 1965— CONTINUED
172

(Amounts in thousands of dollars)
Income item

South
Carolina

South
Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washing­
ton

West
Virginia

Wisconsin

Wyoming

837,061

77,175

31,398

271,605

212,256

90,157

302,224

29,882

35,755
18,216
168,663
2,486
9,221
3,844
4,914
1,606

112,788
61,431
568,959
8,959
43,403
12,906
18,144
10,471

6,802
4,713
53,055
1,831
5,910
2,306
1,860
698

3,599
1,838
22,880
273
1,717
247
571
273

34,105
17,658
184,189
4,109
15,843
5,323
8,172
2,206

25,257
13,441
137,229
3,333
18,570
4,750
6,838
2,838

21,159
5,474
55,225
780
2,981
1,413
2,253
872

59,972
20,948
190,092
1,804
13,508
.4,624
7,420
3,856

5,061
1,218
20,153
295
1,853
815
264
223

Current operating expenses—to ta l..................

52,122

42,027

179,625

615,589

56,622

25,572

201,139

162,872

61,297

229,273

22,511

Salaries—officers............................................
Salaries and wages—other employees........
Officer and employee benefits.....................
Fees paid to directors and committees......
Interest on time and savings deposits........
Interest on borrowed money........................
Occupancy expense of bank premises—net.
Furniture and equipment..............................
Other current operating expenses...............

9,742
13,998
2,958
580
8,700
84
3,208
2,811
10,041

8,177
6,262
1,780
543
15,916
53
2,139
1,412
5,745

20,718
30,661
6,292
1,202
76,546
2,463
9,096
6,523
26,124

85,159
100,527
20,578
6,135
221,033
12,644
40,345
21,571
107,597

6,409
9,686
1,976
414
25,098
711
2,603
2,335
7,390

2,724
3,864
796
328
13,115
27
1,288
630
2,800

24,290
37,074
7,353
1,849
80,093
1,144
10,377
6,852
32,107

20,209
36,037
7,330
419
61,236
864
10,021
6,501
20,255

8,430
11,250
2,277
916
22,875
102
2,988
2,223
10,236

31,944
35,254
9,260
2,806
98,769
1,656
11,481
7,718
30,385

3,542
3,779
720
327
8,518
169
1,178
1,012
3,266

Net current operating earnings.........................

24,512

15,523

65,080

221,472

20,553

5,826

70,466

49,384

28,860

72,951

7,371

Recoveries, transfers from valuation re­
serves, and profits—to ta l.............................

1,993

566

5,307

11,569

1,321

442

4,761

3,233

1,954

4,323

525

1,497
1

143
31

3,387
63
434

2,564
101
348

238
595

189
1
30

668
193
1,060

970
31
866

687
5
37

2,225
65
440

182
1
86

On securities:
Profits on securities sold or redeemed...
Recoveries...................................................
Transfers from valuation reserves...........
On loans:
Recoveries...................................................
Transfers from valuation reserves...........
All other...........................................................
Losses, charge-offs, and transfers to valu­
ation reserves—to ta l.....................................

41
120
334

205
24
163

377
150
896

3,404
1,679
3,473

81
71
336

55
17
150

228
1,686
926

78
446
842

151
375
699

97
428
1,068

177
4
75

3,359

2,037

14,248

62,302

4,537

1,584

19,576

11,977

5,413

12,632

1,400

On securities:
Losses on securities sold...........................
Charge-offs prior to sale.........................
Transfers to valuation reserves................
On loans:
Losses and charge-offs..............................
Transfers to valuation reserves................
All other...........................................................

162
60
165

137
26
6

2,383
417
272

3,549
463
3,225

566
20
49

262
7
25

2,047
60
574

1,403
1
1
525

462
105
21

1,913
173
261

30
28
76

108
2,350
514

133
1,280
455

666
8,668
1,842

6,715
41,753
6,597

712
2,864
326

56
1,055
179

683
13,882
2,330

209
7,903
1,926

278
3,545
1,002

204
8,107
1,974

226
873
167

N et income before related taxes......................

23,146

14,052

56,139

170,739

17,337

4,684

55,651

40,640

25,401

64,642

6,496




CORPORATION

244,705

11,623
3,221
35,501
301
3,184
2,650
490
580

INSURANCE

57,550

11,065
5,873
48,293
436
5,459
3,081
1,621
806

DEPOSIT

76,634

Interest on U. S. Government obligations...
Interest and dividends on other securities..
Interest and discount on loans....................
Service charges and fees on loans..............
Service charges on deposit accounts.........
Other charges, commissions, fees, etc.......
Trust department...........................................
Other current operating revenue.................

FEDERAL

Current operating revenue—to ta l......................

Taxes on net income—to ta l................................

Federal............................................................
State................................................................

8,036

4,772

18,177

49.874

7,484
552

4,332
440

5,695

1,270

17,819
358

49.874

17.610

5,391
304

13.966

8.841

1,128
142

20,693

17.610

13.966

8.841

2.329

17,058
3,635

2.329

Net income after related taxes.........................

15,110

9,280

37,962

120,865

11,642

3,414

38,041

26,674

16,560

43,949

4,167

Dividends and interest on capital—to ta l.........

5,776

Cash dividends declared on common stock.
Dividends declared on preferred stock and
interest on capital notes and debentures.

3,355

13,189

60,725

5,775

5,875

1,632

3,336

13,035

19,000

58,859

5,727

12,181

5.541

1,558

18,893

17,670

12,169

5.541

1,789

17,443

1,735

1

19

154

1,866

148

74

107

12

227

54

Net additions to capital from incom e.............

9,334

5,925

24,773

60,140

5,767

1,782

19,041

14,493

11,019

26,279

2,378

Number of banking employees (exclusive of
building employees), December 31:
Active officers.................................................
Other employees............................................

1,043
4,344

911
1,801

2,353
8,529

8,433
26,517

679
2,669

321
1,110

2,605
10,772

1,984
8,413

923
3,059

3,134
9,935

349
943

403

6
593

1
1,118

101
13,954

387

67
153

242
1,302

923

19
435

4
1,717

4
380

1,167

1,125

1
1
3,662

1,826
39,639

1,130

613

214
5,183

51
2,714

52
1,469

4
4,140

964

Memoranda

Recoveries credited to valuation reserves
(not included in recoveries above):
On securities...................................................
On loans..........................................................
Losses charged to valuation reserves (not
included in losses above):
On securities...................................................
On loans..........................................................

—
■7
O
O
m
O
T|
2
£2
70

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t to ta l....................................................................

3,208

Rental and other income..................................

2,139

9,096

267

40,345

2,603

368

1,288

2,790

10,377

26,362

10,021

1,083

155

2,988

1,669

960

11,481

1,178

§

Occupancy expense of bank premises,
gross—to ta l......................................................

858

2,852

301

g

3,475

1,443

12,046

10,981

3,846

10

14,333

62

23

1,479

61

4

m

0

2,507

Salaries—building department officers
Salaries and wages—building department
employees...................................................
Building department personnel benefits. . .
Recurring depreciation..................................
Maintenance and repairs..............................
Insurance and utilities..................................
Rents paid.......................................................
Taxes...............................................................

11,886

66,707

1

3,686

1

42

190

13

297
39
788
521
836
796
197

297
29
348
289
579
532
432

1,513
129
2,898
1,318
2,101
1,639
2,246

6,650
607
12,252
6,100
11,655
13,315
15,938

492
35
823
317
592
967
447

200
20
263
108
241
428
183

1,709
175
2,418
1,138
2,341
3,267
988

880
144
3,174
1,886
1,918
1,832
1,085

632
61
815
462
724
608
521

1,810
187
2,751
1,477
2,608
2,991
2,448

161
12
380
195
282
155
2S0

Number of building employees, December
31:
Officers............................................................
Other employees............................................

1
192

12
215

7
657

21
2,224

1
227

106

2
837

6
232

3
299

6
828

Number of banks, December 3 1 ....................

125

169

294

1,130

56

47

262

99

186

578

2
71
69

Note: For average asset and liability data by State, see Table 111, pp. 146-147.
Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.




O
?

5
^

Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS, 1957-1965
(Amounts in thousands of dollars)
In c o m e ite m

1958

1 95 7

1 96 1

1960

1959

1962

1963

1964

1965

1,026,327

1,149,643

1,280,347

1,461,763

1,595,183

1,755,582

1,946,776

2,164,115

2,391,753

In te r e s t on U. S. G o v e rn m e n t o b lig a tio n s ..................................
In te r e s t a n d d iv id e n d s on o th e r s e c u r it ie s ................................
In te r e s t a n d d is c o u n t on real e s ta te m o rtg a g e lo a n s — n e t

147,157
127,212
720,215

141,950
167,489
808,975

146,353
180,535
921,315

152,458
199,258
1,070,173

151,931
205,751
1,194,282

156,410
206,367
1,342,896

153,659
203,720
1,534,446

153,368
207,164
1,738,621

147,751
211,278
1,950,930

In te r e s t a n d d is c o u n t on r ea l esta te m o rtg ag e lo a n s — g r o s s ...........................
L e s s : M o rtg a g e serv icin g f e e s .................................................................................
P r e m iu m a m o r t iz a t io n .................................................................................

7 U ,S 0 3
2 3 ,1 3 8
950

8 3 6 ,5 1 5
2 5 ,9 8 5
1 ,5 5 5

9 5 1 ,9 5 2
2 9 ,1 5 4
1 ,4 8 3

1 , 104,100

1 ,2 3 1 ,7 7 4
3 6 ,0 4 5

1 , 5 8 0 ,2 7 6

1 ,7 9 0 ,3 1 8
4 9 ,7 5 6
1 ,9 4 1

2 , 0 0 9 ,2 1 4
5 6 ,1 6 5
2 ,1 1 9

In te r e s t a n d d is c o u n t on o th e r lo a n s a n d d is c o u n ts — n e t . ..
In c o m e on real e s ta te o th e r th a n b a n k b u ild in g — n e t ..........

10,848
31

11,749

12,669

18,407
27

1,447
18,767
-3 8

1 ,3 8 3 ,7 3 5
3 9 ,2 8 3
1 ,5 5 6

22,733
-5 2

27,576
-108

33,538

41,773
-9 7

I n c o m e on r e a l esta te oth er th a n b a n k b u ild in g — g r o s s ....................................
L e s s : O p era tin g e x p e n s e ..........................................................................................

140

139
137

21 6
21 7

397
370

37 9
417

302

296

354

In c o m e on o th e r a s s e ts .......................................................................
In c o m e fro m s e rv ic e o p e r a tio n s .....................................................

7,898
12,966

8,384
11,094

7,486
11,990

7,474
13,966

9,081
15,409

9,777
17,451

Current operating expenses—to ta l...............................................

174,758

187,758

201,402

224,789

241,685

S a la rie s — o f f ic e r s ....................................................................................
S a la rie s a n d w a g e s — o th e r e m p lo y e e s .........................................
P e n s io n , h o s p ita liz a tio n a n d g ro u p in s u ra n c e p a y m e n ts ,
a n d o th e r e m p lo y e e b e n e fits .....................................................
Fees p aid to tru s te e s a n d c o m m itte e m e m b e rs ......................
O c c u p a n c y , m a in te n a n c e , e tc. o f b a n k p re m is e s (in c lu d in g
ta x e s a n d re c u rrin g d e p re c ia tio n )— n e t ...............................

28,590
58,310

30,099
61,797

32,082
64,396

36,608
71,295

38,158
75,303

16,478
3,007

18,314
3,203

20,006
3,366

22,656
3,731

174

Current operating income—to ta l...................................................

-1

1 ,5 8 4

4 4,17 4
1 ,6 5 6

-1 2 2

541

13,121
18,425

18,713
21,405

252,963

274,544

290,471

311,755

40,466
79,165

42,792
84,514

45,391
89,514

48,514
93,680

24,134
3,994

25,419
4,158

27,202
4,404

28,138
4,604

30,080
4,720

638

22,695

25,255

27,369

29,269

32,160

34,683

37,219

2 7 ,8 4 6
8 ,5 2 0

3 0 ,2 5 2
9 ,3 2 7

3 2 ,2 6 8
9 ,5 7 3

3 5 ,1 2 0
9 ,8 6 5

3 7 ,2 9 8
9 ,9 2 9

3 9 ,2 9 7
1 0 ,0 2 8

4 2 ,5 8 3
1 0 ,4 2 3

4 5 ,8 7 1
1 1 ,1 8 8

4 9 ,0 9 3
1 1 ,8 7 4

D e p o s it in s u ra n c e a s s e s s m e n ts .....................................................
F u rn itu re a n d fix tu re s ( in c lu d in g r e c u rrin g d e p re c ia tio n ) .
A ll o th e r c u r re n t o p e ra tin g e x p e n s e s ...........................................

9,407
3,251
36,389

10,183
3,501
39,736

11,316
4,445
43,096

11,707
4,740
48,797

12,824
5,438
54,465

12,172
5,997
56,317

12,709
7,714
63,049

14,035
9,182
64,924

15,887
10,262
71,393

851,569

961,885

1,078,945

1,236,974

1,353,498

1,502,619

1,672,232

1,873,644

2,079,998

Franchise and income taxes—to ta l..............................................

9,060

10,342

11,649

13,637

16,011

17,966

22,587

26,022

29,487

S ta te fra n c h is e a n d in c o m e t a x e s ..................................................
F e d e ra l in c o m e t a x e s ............................................................................

8,972
88

9,831
511

11,172
477

13,190
447

15,277
734

17,502
464

19,168
3,419

21,657
4,365

22,048
7,439

Net current operating income after taxes..................................

842,509

951,543

1,067,296

1,223,337

1,337,487

1,484,653

1,649,645

1,847,622

2,050,511

716,383

812,254

897,469

1,073,542

1,147,767

1,334,005

1,481,869

1,653,768

1,809,350
241,161

N et current operating incom e.............

Dividends and interest on deposits..............................................
Net current operating income after taxes and dividends.........

126,126

139,289

169,827

149,795

189,720

150,648

167,776

193,854

Non-recurring income, realized profits and recoveries
credited to profit and loss, and transfers from valuation
adjustm ent provisions—to ta l..................................................

48,148

66,160

91,205

142,009

113,763

105,907

113,085

105,454

75,130

13,434

17,295

21,147

31,133

17,567

20,453

28,678

18,048

15,242

16,022
259
437
431

30,974
138
367
624

39,498
192
646
2,498

34,860
283
535
6,576

54,263
629
337
459

55,751
739
462
957

28,752
2,465
807
871

36,472
1,088
571
1,096

27,375
1,266
719
1,532

5,939
10,850
65
711

8,345
8,068
28
321

14,270

57,588
10,480

10,873
29,068
36
531

5,460
21,465

26,995
24,342
46
129

22,029
25,786
92
272

11,817
16,365

N o n -re c u rrin g in c o m e ..........................................................................
R e a lize d p ro fits a n d re c o v e rie s on:
S e c u ritie s sold o r m a tu r e d .............................................................
Real e s ta te m o rtg a g e lo a n s ...........................................................
O th e r real e s t a te .................................................................................
A ll o th e r a s s e ts ....................................................................................
T ra n s fe rs fro m v a lu a tio n a d ju s tm e n t p r o v is io n s 1 on :
S e c u ritie s ................................................................................................
 s ta te m o rtg a g e lo a n s ...........................................................
Real e
O th e r real
http://fraser.stlouisfed.org/ e s ta te .................................................................................
A ll o th e r a s s e ts ....................................................................................

Federal Reserve Bank of St. Louis

12,021

17
916

86

468

66

554

121

693

CORPORATION

20,925

INSURANCE

19,326

O ccu p a n cy , m a in te n a n c e , etc. o f b a n k ‘ p re m is e s (in c lu d in g tax es a n d
s
r ec u rrin g d e p r e c ia t io n )— g r o s s ......................................................................
L e s s : I n c o m e f r o m b a n k b u ild in g .........................................................................

DEPOSIT

404
9,984
17,499

421
543

FEDERAL

109

2

3 2 ,3 4 3

Non-recurring expenses, realized losses charged to profit
and loss, and transfers to valuation adjustm ent pro­
visions—to ta l....................................................................

83,870

79,852

126,876

123,664

12,958

116,143

13,699

11,385

16,981

109,192

101,611

17,692

88,234

18,941

17,331

93,036

12,991

15,306

35,526
1,036
179
191

25,056
603
191
684

66,875
330
260
440

63,846
508
210
315

40,851
1,252
375
404

31,379
1,083
662
424

47,629
1,681
656
655

39,884
2,023
712
936

48,124
3,037
886
927

18,062
15,236
16
666

21,946
16,733
45
895

30,347
16,151
40
1,048

23,352
17,679
19
754

19,337
35,377
111
744

30,925
25,252
76
450

11,548
21,534
74
503

8,692
22,266
57
673

6,524
17,394
122
716

90,404

125,597

134,156

168,140

187,340

147,363

179,250

211,074

223,255

972
365
39
5

571
14

471
136

278
53

1,658
48

3,389
201

756
64

341
85

5

173
99
2
37

585

6

35

14

13

24

8,741
342
127
67

6,267
217
3
300

9,339
197
26
385

8,110
1,131
13
165

7,721
720
5
218

5,830
501
6
448

12,973
5,136
190
178

6,058
765
258

6,564
841
118
308

26,904,256

29,160,570

31,248,671

34,339,564

723,830
5,592,025
3,559,430
16,445,982
185,174
3,586
394,229

35,916,590

38,152,221

742,225
5,338,796
4,378,447
18,045,621
227,027
4,361
424,093

689,698
5,236,825
4,677,222
19,937,652
244,010
7,002
456,262

721,308
5,092,512
5,036,291
22,628,058
355,327
11,555
494,513

757,912
4,791,909
5,228,022
24,255,437
353,474
18,955
510,881

41,180,616

44,609,410

794,362
4,748,691
5,151,555
26,435,337
441,994
19,640
560,642

48,466,656

786,298
4,563,328
5,115,637
29,528,513
543,458
21,114
612,268

768,719
4,351,966
5,057,794
33,121,502
588,196
28,389
692,844

891,727
4,030,731
5,069,343
36,991,670
672,117
27,228
783,840

26,904,256

29,160,570

31,248,671

24,322,261

34,339,564

26,304,610

35,916,590

38,152,221

28,136,390

30,822,839

32,320,488

41,180,616

34,350,820

44,609,410

48,466,656

24,295,761
26,500

37,175,285

40,334,274

26,274,758
29,852

431,019
2,424,941

512,192
2,600,089

30,790,599
32,240

43,985,749

318,445
2,263,550

28,106,089
30,301

32,113,129
207,359

598,011
2,918,714

506,744
3,089,358

34,070,511
280,309

36,870,906
304,379

39,997,217
337,057

43,609,062
376,687

Number of active officers, December 3 1 .............
Number of other employees, December 3 1 ............................

2,239
14,590

2,356
14,925

2,504
15,110

2,885
16,753

2,977
17,290

3,085
17,617

3,170
18,459

3,281
18,958

3 423
19,'451

Number of banks, December 3 1 ..............................................

239

241

268

325

330

331

330

327

329

Non-recurring expenses..............................................
Realized losses on:
Securities sold.............................................................
Real estate mortgage loans......................................
Other real estate.........................................................
All other assets...........................................................
Transfers to valuation adjustment provisions1on:
Securities.....................................................................
Real estate mortgage loans......................................
Other real estate...............................................................
All other assets..................................................................
Net additions to total surplus accounts from operations

.

Memoranda
Recoveries credited to valuation adjustm ent provisions1
(not included in recoveries above) on:

Realized losses charged to valuation adjustm ent provi­
sions1 (not included in realized losses above) on:

Average assets and liab ilities2
Assets—to ta l....................................................................

Liabilities and surplus accounts—total

. .

Total deposits.....................................................
Savings and time deposits..................................
Demand deposits................................................

Other liabilities.....................................................
Total surplus accounts........................................

537,630
3,263,771

588,622
3,416,709

660,037
3,615,099

653,614
3,827,293

Back figures, 1934-1956: Data for 1934-1950, which however are not comparable with figures for 1951-1965, may be found in the following Annual Reports: 1941, p. 173; and 1950 pp. 272-273 For 1951-1956 see
the Annual Report for 1959, pp. 166-167.
'
'

175

1 Includes "Valuation reserves” and "Other asset valuation provisions (direct write-downs).”
2 For 1957 through I960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1965, averages of amounts for four consecutive official call dates beginning with the end of the pre­
vious year and ending with the fall call of the current year.




BANKS

Cash and due from banks....................................
United States Government obligations.................................
Other securities......................................................
Real estate mortgage loans........................................
Other loans and discounts..........................................
Other real estate...................................................................
All other assets.....................................

O INSURED
F

Securities........................................................
Real estate mortgage loans................................................
Other real estate......................................................................
All other assets.........................................................................

INCOME

Securities................................................................
Real estate mortgage loans....................................................
Other real estate..........................................................
All other assets......................................................

176

Table 121. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS, 1957-1965
Incom e item

1957

1958

1959

1960

1961

1962

1963

1964

Amounts per $10 0 of current operating income
Current operating income—to ta l................................................................................................................
In te re st on U. S. G overnm ent o b lig a tio n s ............................................................................................
In te re st and d ividends on o th e r s e c u ritie s ...........................................................................................
In te re st and d isco u n t on real estate m ortgage loans— n e t..............................................................
In te re st and d isco u n t on o th e r loans and disco u n ts—n e t...............................................................
Incom e on o th e r a s s e ts .............................................................................................................................
Incom e fro m service o p e ra tio n s ..............................................................................................................

$100.00
14.34
12.40
70.17
1.06
.77
1.26

$100.00
12.35
14.57
70.37
1.02
.73
.96

$100.00
11.43
14.10
71.96
.99
.58
.94

$100.00
10.43
13.63
73.21
1.26
.51
.96

$100.00
9.52
12.90
74.87
1.18
.57
.96

$100.00
8:91
11.76
76.49
1.29
.56
.99

$100.00
7.89
10.46
78.82
1.42
.51
.90

$100.00 $100.00
6.18
7.09
9.57
8.83
80.34
81.57
1.55
1.75
.78
.60
.85
.89

Current operating expenses—to ta l.............................................................................................................
Salaries—o ffic e rs ..........................................................................................................................................
Salaries and wages o th e r e m p lo ye e s...................................................................................................
Pension, hospitalization and group insurance paym ents, and other employee benefits.
Fees paid to tru ste e s and co m m itte e m e m b e rs .................................................................................
Occupancy, m aintenance, etc. of bank prem ises (inclu din g taxes and recurring depreciation),
— n e t.............................................................................................................................................................
D eposit insurance a sse ssm e n ts..............................................................................................................
F urn iture and fix tu re s (in clu d in g re cu rrin g d e p re c ia tio n )................................................................
All o th e r c u rre n t o p e ra tin g e xpe n se s.....................................................................................................

17.03
2.79
5.68
1.60
.29

16.33
2.62
5.37
1.59
.28

15.73
2.51
5.03
1.56
.26

15.38
2.50
4.88
1.55
.26

15.15
2.39
4.72
1.51
.25

14.41
2.30
4.51
1.45
.24

14.10
2.20
4.34
1.40
.23

13.42
2!10
4.14
1.30
.21

13.03
2.03
3.92
1.26
.20

1.88
.92
.32
3.55

1.82
.89
.30
3.46

1.77
.88
.35
3.37

1.73
.80
.32
3.34

1.72
.80
.34
3.42

1.67
.69
.34
3.21

1.65
.65
.39
3.24

1.60
.65
.42
3.00

1.55
.66
.43
2.98

Net current operating incom e..............

....

82.97

83.67

84.27

84.62

84.85

85.59

85.90

86.58

86.97

Franchise and income taxes—to ta l............................................................................................................
State fra n ch ise and incom e ta x e s ...........................................................................................................
Federal incom e ta x e s ..................................................................................................................................

.88
.87
.01

.90
.86
.04

.91
.87
.04

.93
.90
.03

1.00
.96
.04

1.02
1.00
.02

1.16
.98
.18

1.20
1.00
.20

1.24
.93
.31




83.36

83.69

83.85

84.57

84.74

85.38

85.73

70.65

70.10

73.44

71.95

75.99

76.12

76.42

75.65

8.58

8.62

8.96

10.08

12.29

12.12

13.26

10.25

11.90

CORPORATION

Net current operating income after taxes and dividends...................................................................

82.77

69.80

INSURANCE

...

DEPOSIT

82.09

.

FEDERAL

Net current operating income after taxes

Dividends and interest on deposits.............................................

1965

Amounts per $ 10 0 of total assets1

Current operating income—total.......................................................................................................
Current operating expenses—total...................................................................................................
Net current operating income..............................................................................................
State franchise and income taxes..............................................................
.............................
Net current operating income after taxes.......................................................................................
Dividends and interest on deposits..................................................................................................
Net current operating income after taxes and dividends...............................................................
Non-recurring income, realized profits and recoveries credited to profit and loss, and transfers
from valuation adjustment provisions2
—total..............................................................................
Non-recurring expenses, realized losses charged to profit and loss, and transfers to valuation
adjustment provisions2
—total........................................................................................................
Net additions to total surplus accounts from operations...............................................................

4.10
.65
3.45
.03
3.42
2.87
.55

4.26
.66
3.60
.04
3.56
3.12
.44

4.44
.67
3.77
.05
3.72
3.19
.53

4.60
.66
3.94
.05
3.89
3.50
.39

4.73
.67
4.06
.05
4.01
3.60
.41

4.85
.65
4.20
.06
4.14
3.71
.43

4.93
64
4 29
06
4 23
3 73
.50

.18

.22

.29

.41

.31

.28

.27

.24

.15

.31
.34

.27
.43

.41
.43

.36
.49

.32
.52

.28
.39

.24
.44

.20
.47

.19
.46

2.63
3.57
4.38
5.86
2.95
3.99

2.66
3.83
4.48
5.18
3.09
5.18

2.79
3.86
4.62
5.19
3.19
5.16

2.99
3.96
4.73
5.18
3.49
5.76

3.17
3.94
4.92
5.31
3.57
6.06

3.29
4.01
5.08
5.14
3.92
4.52

3.37
3.98
5.19
5.07
4.02
5.25

3.52
4.10
5.25
5.70
4.13
5.84

3.67
4.17
5.27
6.22
4.15
5.83

Special ratios1

Interest on U. S. Government obligations per $100 of U. S. Government obligations...............
Interest and dividends on other securities per $100 of other securities.....................................
Interest and discount on real estate mortgage loans per $100 of real estate mortgage loans
Interest and discount on other loans and discounts per $100 of-other loans and discounts.......
Dividends and interest on deposits per $100 of savings and time deposits...............................
Net additions to total surplus accounts from operations per $100 of total surplus accounts........
Assets and liabilities per $ 10 0 of total assets1
Assets—to ta l........................................................................................................................................

Liabilities and surplus accounts—t o t a l...................................................................................................

Total deposits..............................................................................

10 0 10 0 10 0 10 0 10 0 10 0 10 0
0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0

10 0 10 0
0 .0 0 .0

10 0 10 0 10 0 10 0 10 0 10 0 10 0
0 .0 0 .0 0 .0 0 .0 0 .0 0 .0 0 .0

10 0 10 0
0 .0 0 .0

2.69
20.78
13.23
61.13
.69
.01
1.47

2.55
18.31
15.01
61.88
.78
.02
1.45

2.21
16.76
14.97
63.80
.78
.02
1.46

2.10
14.83
14.67
65.90
1.03
.03
1.44

2.11
13.34
14.56
67.53
.99
.05
1.42

2.08
12.45
13.50
69.29
1.16
.05
1.47

1.91
11.08
12.42
71.73
1.32
.05
1.49

1.72
9.76
11.34
74.25
1.32
.06
1.55

1.84
8.32
10.46
76.32
1.39
.05
1.62

90.40

90.20

90.04

89.76

89.99

90.04

90.27

90.42

90.75

Savings and time deposits..............................................................................................................................................
Demand deposits............................................................................................................................................................

90.30

90.10

89.94

89.67
.09

1.64
8.32

1.74
8.50

1.41
8.60

89.53
.74

89.98
.77

1.48
8.32

89.30
.74

89.66
.76

1.19
8.41

.1
0

89.41
.58

Other liabilities............................................................................
Total surplus accounts....................................................................................................................

.1
0

1.43
8.30

1.48
8.10

1.35
7.90

239

241

268

325

330

331

330

327

BANKS

Cash and due from banks..............................................................................................................
United States Government obligations.........................................................................................
Other securities...............................................................................
Real estate mortgage loans............................................................................................................
Other loans and discounts...................................................................
...........................
Other real estate..............................................................................................................................
All other assets......................................................................

O INSURED
F

3.94
.64
3.30
.04
3.26
2.78
.48

INCOME

3.81
.65
3.16
.03
3.13
2.66
.47

329

Number of banks, December 3 1 ...........................................................

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

.1
0

1.41
8.55




177

1For 1957 through 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1965, averages of amounts for four consecutive official call dates beginning with the end of the pre­
vious year and ending with the fall call of the current year.
2 Includes "Valuation reserves” and "Other asset valuation provisions (direct write-downs)” .
Back figures, 1934,1941-1950, and 1951-1956: Data for 1934 and 1941-1950, which however are not comparable with figures for 1951-1965, may be found in the following Annual Reports: 1947, pp. 156-157 and
1950, pp. 274-275. For 1951-1956, see the Annual Report for 1959, pp. 168-169.

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, AND
DEPOSIT INSURANCE DISBURSEMENTS
Table 122.
Table 123.
Table 124.

Table 125.




Number and deposits of banks closed because of financial difficulties,
1934-1965, by years
Insured banks requiring disbursements by the Federal Deposit Insurance
Corporation during 1965
Depositors, deposits, and disbursements in insured banks requiring dis­
bursements by the Federal Deposit Insurance Corporation, 1934-1965
Banks grouped by class of bank, year of deposit payoff or deposit
assumption, amount of deposits, and State
Recoveries and losses by the Federal Deposit Insurance Corporation on
principal disbursements for protection of depositors, 1934-1965

BANKS
INSURANCE
DISBURSEMENTS

Insured banks: books of bank at date of closing; and books of
FDIC, December 31, 1965.

DEPOSIT

Sources of data

AD
N
179




Noninsured bank failures
Four noninsured banks failed in 1965. These banks, with the
dates of their closing and the amounts of their deposits, were:
The Citizens Bank, Stockbridge, Georgia (private); February 25,
1965; deposits, $622,000.
Exchange Bank, Ludowici, Georgia (private); August 7, 1965;
deposits, $55,000.
Thompson Banking Company, Wrens, Georgia (private); Septem­
ber 14, 1965; deposits, $633,000.
Farmers and Merchants Bank, Portal, Georgia (private); October,
1965; deposits, $84,500.
For detailed data regarding noninsured banks which suspended
in the years 1934-1962, see the Annual Report for 1963, pp. 27-41.
For 1963 and 1964, see Table 122, this Report, and previous Re­
ports for respective years.

CLOSED

Disbursements by the Federal Deposit Insurance Corporation to
protect depositors are made when the insured deposits of banks in
financial difficulties are paid off, or when the deposits of a failing
bank are assumed by another insured bank with the financial aid of
the Corporation. In deposit payoff cases, the disbursement is the
amount paid by the Corporation on insured deposits. In deposit
assumption cases, the principal disbursement is the amount loaned
to failing banks, or the price paid for assets purchased from them;
additional disbursements are made in those cases as advances for
protection of assets in process of liquidation and for liquidation
expenses.

Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED
BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1965, BY YEARS

Insured

Insured
Year

Non­
insured 1

Total

With
disburse­
ments
by

Total

Non­
insured 1

Total

F D IC 3

464

456

$790,838

$59,325

$731,513

1965...
1964...
1963...
1962...
1961...
1960...
1959...
1958...
1957...
1956...
1955...
1954...
1953...
1952...
1951...
1950...
1949...
1948...
1947...
1946...
1945...
1944...
1943...
1942...
1941...
1940...
1939...
1938...
1937...
1936...
1935...
1934...

.

9.

4

5
7

5
7

1,395
429

2

2

2

3
9

5

45,232
23,751
23,440
4,231
10,611
7,965
2,595
10,413
12,502
11,689
11,953
2,948
45,101
3,313
6,464
5,555
9,217
10,674
7,207
494
5,695
1,915
12,525
19,541
18,805
142,787
160,211
60,444
34,141
28,100
13,987
37,332

43,837
23,322
23,440
3,011
8,936
6,930
2,595
8,240
11,247
11,329
11,953
998
44,711
3,170
3,408
5,513
6,665
10,674
7,040
347
5,695
1,915
12,525
19,186
18,726
142,429
157,772
59,406
33,613
27,508
13,404
1,968

8

1

1

2

1

3
9
3
3
5
4
5
4
5
5
9
3
6
2

3
4
2
2

5
2
4
3

2
4
5
3
5

1
1

1

2
5
23
16
48
72
80
83
72
32
61

3
2

5
12
7
7
3
6
52

2
5
20
14
43
60
73
76
69
26
9

1,220
1,675
1,035
2,173
1,255
360
1,950
390
143
3,056
42
2,552

355
79
358
2,439
1,038
528
592
583
35,364

$41,147

$690,366
43,837
23,322
23,440

3,011

10,084

26,449

1,190

328
85

8,936
6,930
2,595
8,240
1,163
11,329
11,953
998
18,262
3,170
3,408
5,513
5,475
10,674
7,040
347
5,695
1,915
12,525
19,186
18,726
142,429
157,772
59,406
33,285
27,508
13,319
1,968

1 For information regarding each of these banks, see Table 22 in the Annual Report of the Federal Deposit Insurance Corporation for 1963, page 221 of the report for 1964,
and page 179 of this Report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see Table 22, note 9). Deposits are unavailable for
7 banks.
2 For information regarding these cases, see Table 23 of the Annual Report for 1963.
.
3 For information regarding each bank, see the Annual Report for 1958, pp. 48-83 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual
reports. Excludes the following cases requiring disbursements by the Corporation: 1 bank in voluntary liquidation in 1937 (payoff case no. 90); 1 noninsured bank with insured
deposits at date of suspension, its insurance status having been terminated prior to suspension (payoff case no. 162); and 1 foreign-owned bank closed in 1941 by order of the
Federal Government (payoff case no. 234). Only 2 cases involved mutual savings banks; 1 in 1938 (payoff case no. 157) with deposits of $2,479 thousand, and 1 in 1939 (deposit
assumption case no. 83) with deposits of $1,585 thousand.




CORPORATION

130

INSURANCE

594

With
disburse­
ments
by
FDIC3

DEPOSIT

Total

Without
disburse­
ments
by
FDIC2

FEDERAL

Without
disburse­
ments
by
FDIC2

Total

180

Deposits (in thousands)

Number

Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1965
Case
num ber

F irst p aym e n t to
d epositors or
d is b u rs e m e n t by FDIC

Date o f closing
N um ber of
or d eposit assum ption
depositors
or a c c o u n ts 1

D isburse
m e n t2

Receiver or liq u id a tin g agent
or assum ing bank

1,375

January 22, 1965

January 28, 1965

$ 1 ,0 7 1 ,1 6 5

Federal Deposit Insurance
C orporation

2 76

San Francisco National Bank,
San Francisco, C alifornia

N

12,493

January 22, 1965

Janu a ry 29, 1965

9 ,9 2 6 ,7 3 0

Federal Deposit Insurance
Corpo ration

2 77

Winona State Bank,
W inona, Texas

NM

498

February 5, 1965

February 10, 1965

385,341

Federal Deposit Insurance
C orporation

M alone State Bank,
Malone, Texas

NM

695

February 25, 1965

February 25, 1965

3 7 8 ,4 2 8

First State Bank,
H ubbard, Texas

F irst State Bank,
C ovington, Texas

NM

763

April 5, 1965

A pril 5, 1965

D eposit
assum p­
tion
183

7 7,2 96

$11,227,193

O ther
securities
$731,851

$40,844,025

O ther
real
estate

$1,631,026

$112,393

105,394

Total

Other
a s s e ts 4

D eposits

$886,990

$58,750,320

$43,877,754

Other
lia b ilitie s
$9,768,772

Capital
stock
$2,570,000

O ther
capital
accounts
$2,533,794

Deposit
payoff
275

128,972

326,821

111,851

2,252,871

76,578

12,622

3,015,109

2,254,355

409,623

250,000

101,131

276

2,674,534

10,849,996

620,000

37,929,071

1,547,462

440,119

54,061,182

40,175,911

9,335,711

2,250,000

2,299,560

277

6,536

40,039

2

432,647

479,224

434,588

23,438

20,000

1,198

427,462

6,982

1,601

589,095

524,480

25.000

39,615

194,582

2

1

605,710

488,420

25.000

92,290

Deposit
assum p­
tio n
183

95,675

184

411,125

50,376

6,999

1 At date of closing. Number of depositors in receivership cases; number of deposit accounts in deposit assumption cases.
2 In receivership cases includes disbursements made to December 31,1965, plus estimated additional disbursements.
3 As determined by FDIC agents after adjustment of books of bank for liabilities or overdrafts discovered subsequent to closing.
4 Includes in case number 277 a shortage account of $381,155.




DISBURSEMENTS

$3,316,842

U. S. Gov­
e rn m e n t
o blig atio n s

B anking
house,
fu rn itu re &
fixtu re s

INSURANCE

Total

Cash and
due fro m
banks

Loans,
discounts,
and
overdrafts

The First National Bank
of Itasca,
Itasca, Texas

Liab ilitie s and capital a c c o u n ts 3

A sse ts3
Case
num ber

DEPOSIT

184

AD
N

N

CLOSED

The B righton National Bank,
B righton, C olorado

BANKS

D eposit
payoff
275

Class of
bank

Name and location

Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, 1934-1965
B A N K S G R O U P E D B Y C L A S S O F B A N K , Y E A R O F D E P O S IT P A Y O F F O R D E P O S I T A S S U M P T I O N , A M O U N T O F D E P O S I T S , A N D S T A T E

C la s s ific a tio n
T o ta l

P a y o ff
cases

A ssum p­
tio n
cases

T o ta l

P a y o ff
cases

A ssum p­
tio n
cases

D i s b u r s e m e n t s b y F D IC
(in t h o u s a n d s o f d o lla r s )

D e p o s it s 1
(in t h o u s a n d s o f d o lla r s )

T o ta l

P a y o ff
cases

Assum p­
tio n
cases

182

N u m b e r o f d e p o s it o r s 1

N u m b e r of banks

P r in c ip a l d i s b u r s e m e n t s

T o ta l

A dvances and
expenses2

Assum p­
P a y o ff
tio n
cases3
cases4

P a y o ff
cases5

A ssum p­
tio n
cases6

71 1
0 ,6 5

24 1
3 ,1 6

47 9
6 ,4 9

30 8
5 ,1 1

11 5
5 ,6 0

18 3
9 ,5 1

2,459

4
7,585

S ta te b a n k s m e m b e r s F. R. S . . ..
B a n k s n o t m e m b e r s F . R . S .............

82
24
353

29
8
238

53
16
115

327,325
3 72,545
8 32,455

8 2,6 49
8 6,939
3 26,550

1 76,482
1 90,536
334,597

7 6,770
2 9,418
127,929

99,7 12
161,119
2 06,668

71,5 52
103,265
1 75,364

3 2,9 38
2 2,994
9 5,7 18

3 8 ,6 1 4
8 0,2 71
7 9,647

696
151
1 ,612

6 ,1 9 6
19,273
2 2 ,1 17

9
25
69
75
74
60
43
15
20
5
2
1
1
5
3
4
4
2
3
2
2
5
2
1
4
3
1
5
2
7
5

9
24
42
50
50
32
19
8
6
4
1

15,767
32,331
4 3,225
74,148
44,288
90,169
20,667
38,594
5,717
16,917
899

941
8 ,8 9 0
14,781
19,160
3 0,4 80
6 7,770
74,134
23,8 80
10,825
7 ,172
1 ,503
1,768
265
1,724
2 ,9 9 0
2 ,5 5 2
3 ,9 8 6

941
6 ,0 2 6
8 ,0 5 6
12,045
9 ,092
26,196
4 ,8 9 5
12,278
1,612
5,5 0 0
404

8 ,0 8 0
5 ,465
2 ,338
4 ,3 8 0
3 ,073
11,171
8,301
36,3 26
1 9,926
14,356

1,454

1,9 6 8
13,319
2 7,5 08
3 3,3 49
5 9,6 84
157,772
142,429
29,718
19,186
12,525
1,915
5,695
347
7 ,040
10,674
5,4 7 5
5 ,513
3 ,4 0 8
3,1 7 0
1 8,2 62
998
11,953
1 1,329
1 ,163
8 ,2 4 0
2 ,5 9 3
6 ,9 3 0
8 ,9 3 6
2 3,2 66
23,4 12
4 3,8 37

1 ,968
9 ,091
11,241
14,960
10,296
3 2,738
5,657
14,730
1,816
6,637
456

2

15,767
44,6 55
8 9,0 18
130,387
203,961
392,718
256,361
73,005
60,688
27,371
5,487
12,483
1,383
10,637
18,540
5,671
6,366
5,276
6 752
2 4,469
1,811
17,790
15,197
2 ,3 3 8
9,5 8 7
3,0 7 3
11,171
8 ,301
3 6,326
1 9,926
15,810

6 ,5 0 3
4 ,7 0 2
1 ,163
4 ,1 5 6
2 ,5 9 3
6 ,9 3 0
8 ,9 3 6
2 3,2 66
2 3,4 12
4 2,8 65

107
109
61
69
50
36
16
6
5

83
86
37
33
17
11
4
3
1

24
23
24
36
33
25
12
3
4

38,347
8 3,370
91,2 06
159,582
205,975
248,052
2 22,948
198,033
284,812

2 9,695
65 ,5 1 2
5 7,275
73,241
66,7 68
6 9,413
32,6 65
8 9,085
12,484

8 ,652
17,858
33,931
86,341
139,207
178,639
190,283
108,948
272,328

6,418
17,759
21,857
53,749
7 1,025
112,703
105,189
113,320
199,594

4 ,947
1 3,9 20
12,8 97
2 6 ,4 37
2 2,2 08
3 6 ,5 6 6
27,715
49,251
4 0,1 76

244,676
2 85,606
505,905

Year7
1934
................................................................
1 9 3 5 ......................................................................
1936
................................................................
1 9 3 7 ......................................................................
1 9 3 8 ..................................................................
1 9 3 9 ......................................................................
1 9 4 0 ..................................................................
1 9 4 1 ......................................................................
1 9 4 2 ......................................................................
1 9 4 3 ....................................................................
1 9 4 4 ......................................................................
1945
................................................................
1 9 4 6 ..................................................................
1947
................................................................
1 9 4 8 ....................................................................
1949
.............
...............................
1950
1951
...............
...............................
1952
1 9 5 3 ..................................................................
1954
1 9 5 5 ......................................................................
1 9 5 6 ......................................................................
1 9 5 7 ....................................................................
1 9 5 8 ......................................................................
1 9 5 9 ......................................................................
1960
.........................................
1 9 6 1 ........................................................................
1963
1964.
..............................................
1 9 6 5 ......................................................................

4
1
1
3
3
1
5
2
7
3

1
27
25
24
28
24
7
14
1
1
1
1
5
3
4
4
2
3
2
2
1
1
1

12,3 24
4 5,7 93
56,2 39
159,673
3 02,549
2 35,694
34,411
54,971
10,454
4 ,5 8 8
12,483
1,383
10,637
18,540
5,671
6 ,3 6 6
5 ,2 7 6
6 752
2 4,4 69
1,811
9 ,7 1 0
9 ,7 3 2
5,2 0 7

4 ,2 2 9
16,267
1 8,3 89
4 9,388
125,034
136,773
14,987
17,369
5 ,888
1 ,459
5 ,695
347
7 ,0 4 0
10,674
5,4 7 5
5 ,513
3 ,4 0 81,8 8 5
3 ,1 7 0
1 8,2 62
998
5 ,4 5 0
6 ,6 2 8

972

1 ,369
5 ,017
913
6 ,7 8 4
3 ,3 3 3
1,031
3 ,0 2 6
1 ,8 3 5
4 ,7 6 5
6,2 0 1
19,2 22
12,571
9 ,4 0 9

4 ,4 3 8
2 ,7 9 5
1 ,031
2 ,7 9 6
1 ,8 3 5
4 ,7 6 5
6,2 0 1
1 9,2 22
12,571
8 ,9 5 2

1,471
3 ,839
8,961
2 7,312
48,817
76,138
7 7,474
6 4,068
159,418

4 ,9 9 9
1 2,9 06
15,051
3 4,8 63
3 8,8 86
58,391
4 3,8 80
59,505
8 1,699

4 ,3 0 9
1 1,5 54
1 0,6 08
19,627
16,707
2 3,7 70
17,5 96
3 9 ,4 3 5
8 ,0 4 5

4 ,0 8 4

2 ,8 6 5
6 ,7 2 5
7,1 1 6
2 1,3 87
41,574
6 9,2 39
11,602
9 ,213
1,672
1,099
1,768
265
1,724
2 ,9 9 0
2 ,5 5 2
3 ,9 8 6
1 ,8 8 5
1 ,3 6 9
5 ,0 1 7
913
2 ,3 4 6
538

43
108
67
103
93
162
89
50
38
53
9

457

106
87
20
38
51
84
154
259
464
381

691
1 ,3 5 2
4 ,4 4 3
15,2 36
22,1 79
3 4,6 22
2 6,2 84
2 0,0 70
7 3,6 53

88
209
161
332
327
354
360
296
331

230

272
934
905
4 ,9 0 2
17,603
17,237
1,479
1,076
72
37
96
11
360
200
166
524
127
195
428
145
665
51
31

70

Banks with deposits of—
L e s s t h a n $ 1 0 0 , 0 0 0 ...............................
$ 1 0 0 , 0 0 0 to $ 2 5 0 , 0 0 0 .........................
$ 2 5 0 , 0 0 0 to $ 5 0 0 , 0 0 0 .........................
$ 5 0 0 , 0 0 0 to $ 1 , 0 0 0 , 0 0 0 ...................
$ 1 , 0 0 0 , 0 0 0 to $ 2 , 0 0 0 , 0 0 0
$ 2 , 0 0 0 , 0 0 0 to $ 5 , 0 0 0 , 0 0 0 ..............
$ 5 , 0 0 0 , 0 0 0 to $ 1 0 , 0 0 0 , 0 0 0
$ 1 0 , 0 0 0 , 0 0 0 to $ 2 5 , 0 0 0 , 0 0 0 . . . .
$ 2 5 , 0 0 0 , 0 0 0 to $ 5 0 , 0 0 0 , 0 0 0 . . . .




154
173
603
2 ,1 9 4
3 ,3 1 7
5,5 2 5
5,491
5 ,4 0 4
2 4 ,7 2 3

CORPORATION

3
7
4 6 3 1,0 6,18
9 ,1 8

INSURANCE

2,32
5
1 4 1,53
8

DEPOSIT

25
7

FEDERAL

49
5
Class of bank

F lo rid a.................
G e o rg ia...............
Id a h o ...................
Illin o is ..................
In d ia n a ................

1,642
9 ,4 1 0
2,451
79,617
3 0,0 06

448
8 ,7 9 7
2 ,4 5 1
4 1 ,6 9 8
1 2,5 49

1 ,1 9 4
613

491
1 ,9 5 9
1 ,8 9 4
5 0 ,5 8 6
1 3,5 93

217
1 ,8 7 0
1 ,8 9 4
2 4 ,9 0 3
3 ,9 3 2

Io w a ......................
K a n sa s................
K e n tu c k y ............
L o u isia n a ............
M a in e ...................

16.055
5,1 4 5
36,1 39
6 ,0 8 7
9 ,7 1 0

4 ,0 6 6
2 ,2 5 4
1 8 ,4 9 0
6 ,0 8 7

9 ,4 0 1
1 ,2 3 4

4 ,3 8 3
539
3 ,9 5 3
1 ,6 5 2

M a ry la n d ............
M a s s a c h u s e tts ..
M ic h ig a n .............
M in n e s o ta ..........
M is s is s ip p i.........

22,5 67
9 ,0 4 6
32,8 19
2 .6 5 0
1.651

6 ,6 4 3

M is s o u ri..............
M o n ta n a ..............
N e b ra s k a ............
New H a m p sh ire
New J e rs e y ........

37,6 47
1,5 0 0
6 ,0 6 9
1,7 8 0
522,563

2 9 ,4 7 8
849
6 ,0 6 9
103,797

New Y o rk ............
N o rth C a ro lin a ..
N o rth D a k o ta . ..
O h io ......................
O k la h o m a ...........

269,621
1 0,4 08
1 4,103
13,751
25,0 70

O re g o n ................
P e n n sylva n ia .. .
South C a ro lin a ..
S outh D a k o ta . . .
T e n n e sse e.........

3 7 ,9 1 9
1 7,4 57
1 1,9 89
2 ,8 9 1
1 7,6 49
9 ,7 1 0

8,888
1 ,6 5 2
5 ,4 5 0

100

2 ,1 8 5
596
1 ,0 7 8

1 ,0 8 9
984
1 1,7 73
529
1 ,2 4 2

94
841
1 0,911
529
1 ,2 4 2

995
144
861

1
8
421
35
8

91
48
138

274

203
1 ,5 5 1
1 ,4 9 3
2 0 ,4 6 4
3 ,0 9 6

97
69
7 ,9 8 2
3 ,1 0 1

3
33
29
288
39

13
33

2 5,6 84
9 ,6 6 2

300
1 ,6 2 0
1 ,4 9 3
2 8 ,4 4 6
6 ,1 9 7

5 ,0 1 8
694
4 ,9 3 4

3 ,8 7 5
974
5 ,4 5 5

2 ,8 0 4
482
3 ,3 2 9

1,0 7 1
492
2 ,1 2 6

668

668

5 ,4 5 0

2 ,3 4 6

3 ,7 3 8
3 ,0 1 9
1 3,372

3 ,1 0 9
1 ,5 6 4
7 ,3 6 2
640
257

2 ,0 3 3

2 6 ,4 6 8

117
5 5 ,6 5 7

161

8
2 0 ,1 54

46
5
44
10

2 ,3 4 6

791
384
113
72
201
665

1 5,9 24
9 ,0 4 6
3 0 ,7 3 5

4 ,5 6 6
3 ,0 1 9
1 4.7 65
818
334

1,169
651
1 ,7 8 0
4 1 8 ,7 6 6

9 ,2 7 3
1 ,0 9 5
8 ,1 4 5
296
1 94 ,63 0

3 3 ,1 2 8

296
1 61,502

6 .6 5 7
640
5 ,1 6 6
117
8 2 ,1 2 5

2 8 ,4 4 0
3 ,6 7 7
6 ,7 6 0
7 ,5 8 5
2 0 ,1 4 9

2 41,181
6 ,7 3 1
7 ,3 4 3
6 ,1 6 6
4 ,9 2 1

1 45 ,43 9
3 ,2 6 6
3 ,8 3 0
7 ,2 2 3
13.7 65

1 3,2 86
1,4 2 1
1 ,5 5 2
2 ,3 4 5
1 1,0 53

1 32,153
1 ,8 4 5
2 ,2 7 8
4 ,8 7 7
2 ,7 1 2

6 7 ,8 7 2
2 ,3 8 7
2 .6 5 7
2 ,0 9 7
9 ,2 5 6

1 0,8 36
1 ,1 5 6
1 ,3 9 7
1 ,6 1 0
7 ,9 4 5

5 7 ,0 3 6
1,2 3 1
1 ,2 5 9
488
1,311

32
23
24
7
180

10,847
179
203
44
104

3 ,4 3 9
1 66,894
1 ,848
12,515
1 2,358

1 ,2 3 0
4 3 ,8 2 8
403
1 1,412
9 ,9 9 3

2 ,2 0 9
123 ,06 6
1 ,4 4 5
1 ,1 0 3
2 ,3 6 5

2 ,6 7 0
7 5 ,7 5 6
849
2 ,9 8 7
1,9 4 2

1 ,3 6 8
1 4,3 40
136
2 ,8 6 2
1 ,6 2 0

1 ,3 0 2
6 1 ,4 1 6
714
126
322

1 ,9 4 8
51,2 91
274
2 ,4 1 2
1 ,2 7 8

1 0,1 33
136
2 ,3 8 8
1 ,1 6 4

962
4 1 ,1 5 9
138
23
114

11
75

81
9 ,5 2 4
10
9
25

T e xa s...................
V e rm o n t..............
V irg in ia ................
W a s h in g to n ........
W est V irg in ia ___

3 8,2 00
11,057
35,7 15
4,1 7 9
8 ,3 4 6

3 5 ,2 1 8
8 ,6 8 7
1 2,6 38

2 ,9 8 2
2 ,3 7 0
2 3,0 77
4 ,1 7 9

2 0 ,0 8 7
3 ,7 2 5
17,7 78
1 ,5 3 8
2 ,0 0 6

1 8,4 28
3 ,3 7 5
7 ,6 5 2

1 ,6 5 8
350
1 0,1 27
1 ,5 3 8

1 2,9 46
3 ,4 4 5
7 ,9 0 6
935
1 ,4 5 8

1 2 ,1 96
3 ,2 5 9
3 ,5 1 0

W isco n sin ...........
W yo m in g .............

26,898
3 ,2 1 2

18,7 39

8 ,1 5 9
3 ,2 1 2

9 ,5 1 2
2 ,0 3 3

5 ,9 6 6

3 ,5 4 5
2 ,0 3 3

7 ,1 8 8

5 ,0 9 6

2 ,0 8 4
2 .6 5 0
1.6 5 1

8 ,3 4 6

828
1 ,3 9 2
818
334
7 ,2 4 0
215
8 ,1 4 5

2 ,0 0 6

202

735
1,212
640
257

6,011
186
5 ,1 6 6

2 ,3 7 4
1 ,5 6 4
6 ,1 5 0

646
453

9
39
17
5
99
6
46

26
28

750
186
4 ,3 9 6
935

402
21
211

2 ,0 9 2
202

54

1 ,4 5 8

371
1 ,0 3 0
760

77
21

114
22
505
512

11
417
19




183

1 Adjusted to Decem ber 3 1 ,1 9 6 5 . In assum ption cases, refers to num ber of deposit accounts.
2 Excludes $199 thousand of non-recoverable insurance expenses in cases which were resolved w ithout paym ent of claims or a disbursem ent to facilitate assumption of deposits by another insured bank, and
other expenses of field liquidation em ployees not chargable to liquidation activities.
3 Includes estim ated additional disbursem ents in active cases.
4 Excludes excess collections turned over to banks as additional purchase price at term ination of liquidation.
5 These disbursem ents are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.
6 Includes advances to protect assets and liquidation expenses of $47,338 thousand, all of which have been fully recovered by the Corporation, and $248 thousand of non-recoverable expenses.
7 No case in 1962 required disbursem ents. Disbursem ent totals for each year relate to cases occurring during that year, including disbursem ents made in subsequent years.
Note: Due to rounding differences, com ponents may not add to totals.

DISBURSEMENTS

1 ,1 6 8
4 6 ,2 0 5
2 ,2 6 2
1 ,5 2 6

INSURANCE

2 ,2 8 5
1 ,7 6 4
4 7 ,2 8 4
2 ,2 6 2
1 ,5 2 6

DEPOSIT

7 ,1 1 1
905
3 ,1 6 9

AD
N

794
3 ,5 2 9
1 7 ,8 8 6
1 ,3 8 4
5 ,3 7 9

CLOSED

7,9 0 5
4 ,4 3 4
21.0 55
1,3 8 4
5 ,3 7 9

BANKS

State
A la b a m a ..............
A rk a n s a s ............
C a lifo rn ia ............
C o lo ra d o .............
C o n n e c tic u t.......

Table 125. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL DISBURSEMENTS
FOR PROTECTION OF DEPOSITORS, 1934-1965
(Amounts in thousands of dollars)

31, 1965!

9,564

4 ,0 6
0 7

1 0 2 ,85 6
2 4 7 ,3 2 4

7 8 ,5 9 7
2 2 1 ,9 4 5

9 ,5 6 4

1 4,696
2 5 ,3 8 0

734
6 ,1 8 6
1 2 ,3 2 6
1 5,611
2 8 ,0 5 5

207
2 ,7 0 4
2 ,4 5 5
3 ,5 5 0
2 ,4 2 5
7 ,1 5 3
3 ,7 7 3
591
688
123

4
5
6
7

8

941
8 ,8 9 0
14,7 81
1 9 ,1 6 0
3 0 ,4 8 0

193
194
1 94
194
194

9
0
1
2
3

6 7 ,7 7 0
7 4 ,1 3 4
2 3 ,8 8 0
1 0,8 25
7 ,1 7 2

6 0 ,6 1 7
7 0 ,2 41
2 3 ,2 9 0
10,1 37
7 ,0 4 8

194
194
194
194
194

4
5
6
7

8

1 ,5 0 3
1 ,7 6 8
265
1 ,7 2 4
2 ,9 9 0

1 ,4 6 2
1 ,7 6 8
265
1 ,6 2 8
2 ,3 4 9

194 9
19: 3
195 1
195 2
195 3

2 ,5 5 2
3 ,9 8 6
1 ,8 8 5
1 ,3 6 9
5 ,0 1 7

2 ,1 8 3
2 ,6 0 1
1 ,7 9 2
577
5 ,0 1 7

913
6 ,7 8 4
3 ,3 3 3
1 ,031
3 ,0 2 6

651
6 ,5 5 4
3 ,0 3 8
1 ,0 3 1
2 ,9 9 8

260
230
260

195 9
1 9 6 0 ....
1 9 6 1 ....
1 9 6 3 .. .
1 9 6 4 ....
1 9 6 5 ....

1 ,8 3 5
4 ,7 6 5
6,201
1 9,2 22
12,571
9 ,4 0 9

1 ,7 2 2
4 ,7 6 5
4 ,5 0 7
1 4 ,4 0 4
6 ,8 1 0
177

105

1 5,58
1
3

9 7
,2 1

26,7
96

14
8

18 3
9 ,5 1

14 5
8 ,9 9

21

5 6 ,1 9 8

12,2 94
1 4,5 03

10

95,452

3 4 ,6 3 4
8 0 ,9 4 9

9,2 7 1

254

174

4 6 ,6 5 8
1 51,873

4 3 ,9 6 3
140 ,99 6

9
24
42
50
50

941
6,026
8,056
12,045
9,092

734
4 ,2 7 4
6 ,5 9 5
9 ,5 2 0
7,9 0 8

207
1,751
1 ,4 6 0
2 ,5 2 4
1 ,1 8 4

2 ,8 6 5
6 ,7 2 5
7 ,1 1 6
2 1 ,3 8 7

1,911
5 ,7 3 0
6 ,0 9 0
2 0,1 47

32
19
8

26,196
4,895

5 ,7 9 8
582
213
292
123

4 1 ,5 7 4
6 9 ,2 3 9
1 1,6 02
9 ,2 1 3
1 ,6 7 2

4 0 ,2 1 9
6 5 ,9 2 8
11,2 25
8 ,8 1 6
1 ,6 7 2

40

1 ,0 9 9
1 ,7 6 8
265
1 ,7 2 4
2 ,9 9 0

1 ,0 9 9
1 ,7 6 8
265
1 ,6 2 8
2 ,3 4 9

2 ,5 5 2
3 ,9 8 6
1 ,8 8 5
1 ,3 6 9
5 ,0 1 7

2 ,1 8 3
2,6 0 1
1 ,7 9 2
577
5 ,0 1 7

369
1 ,3 8 5
3
792

913
2 ,3 4 6
538

651
2 ,3 4 6
538

260

369
1 ,385
3
792

195 4
1955. ...
1 956.......
1 9 5 7 ....
195 8

11 5
5 ,6 0

.....

6

1,612

4

5 ,5 0 0

2 0,3 99
4 ,3 1 3
12,0 65
1 ,3 2 0
5,3 7 6

404

363

1 2 ,2 7 8

72
641

149
3 ,1 6 8
3 ,1 0 9
2 ,8 5 7

1 ,5 4 6
1 ,6 5 0
2 ,6 5 2
6 ,3 7 5

4,438
2.795
1,031
2.796

4 ,2 0 8
2 ,5 0 0
1,031
2 ,7 6 8

230
260

1,835
4,765
6,201
19,222
12,571
8,952

1,7 2 2
4 ,7 6 5
4 ,5 0 7
1 4,404
6 ,8 1 0

293

2 ,4 0 3
1 0,8 77

953
995
1 ,0 2 5
1 ,241

120

1 ,3 5 5
3 ,1 9 0
378
396

72
641

105

230

149
3 ,1 6 8
3 ,1 0 9
2 ,8 0 2

1 ,5 4 6
1 ,6 5 0
2,6 5 2
6 ,1 5 0

457

1 Excludes in deposit assum ption cases recovery of all advances for asset protection, totaling $32,875 thousand, and all liquidation expenses totaling $14,463 thousand.
2 Includes estim ated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursem ent was fully recovered.
3 Includes estim ated additional disbursem ents in active cases.
4 Excludes excess collections turned over to banks as additional purchase price at term ination of liquidation.
5 No case in 1962 required disbursem ents.
Note: Due to rounding differences, com ponents m ay not add to totals.




13,2
80

177

225

CORPORATION

193
193
193
193
193

3 1 , 1965

INSURANCE

30 4
0 ,5 1

3 1 , 1965

Re­
Estimated
Number Principal
disburse­ coveries additional
of
banks
ments4 to Dec. recoveries

DEPOSIT

30 8
5 ,1 1

Status
Active........
Terminated
Year5

Re­
Number Principal
Estimated
of
disburse­ coveries additional Losses2
ments3 to Dec. recoveries
banks

FEDERAL

Total

Deposit assumption cases

Deposit payoff cases

184

Liquidation
All cases
status and
year of de­
Re­
Estimated
posit payoff Number Principal
disburse­ coveries additional Losses2
or deposit
of
to Dec. recoveries
assumption banks
ments




INDEX




187
INDEX

Page

Absorptions:
Of insured banks requiring disbursements by FDIC. See
Banks in financial difficulties.
Of operating banks, 1965______________________________________ 15-17, 100
Of operating banks approved by FDIC, 1965___________________ 15-17, 33-77
Regulation

of_______________________________________________________ 15-17

Admission of banks to insurance:
Applications for, 1965_______________________________________________ 14-15
Different methods followed___________________________________________

14

Number of banks admitted, by class of bank, 1965_____________________ 117
Applications from banks_________________________________________________ 14-15
Areas outside continental United States, banks and branches located in:
Assets and liabilities, December 31, 1965__________________________ 134-135
Average assets and liabilities, insured commercial banks, 1965_____146-147
Deposits, December 31, 1965______________________________________ 126-127
Earnings, expenses, profits, and dividends, 1965__________________ 164-165
Number, December 31, 1965_________________________ 118, 125-127, 134-135
Assessments for deposit insurance_______________________________________ 26-30
Assets, liabilities, and capital of banks (see also Deposits):
All banks:
Amounts and percentage change, 1961, 1964 and 1965____________ 102
By FDIC district and State, December 31, 1965________________ 134-135
Changes in 1965_____________________ _________________________
Commercial banks, June 30, and December 31, 1965___________

102

_ 130-133
_

In banks grouped according to insurance status and type of
bank, June 30, and December 31, 1965_____________________ 130-133
Insured banks, June and December call dates, 1962 through
.136-139
1965 _________________________ ______ _______________
Insured commercial banks:
Amount, call dates, December 20, 1963 through December
31, 1965_____ ..... _______________________________ __________ 140-143
Average for 1965, by class of bank____ _______________________ 144
Average for 1965, by State____________________________________ 146-147
Percentage distributions, average for 1965, by class of bank______

144

Percentage distributions, December and June call dates,
1963 through 1965__________________________________________140-143
Percentage distributions of totals among size groups of banks,
December 31, 1965___________________________________________
Ratios of selected items to total assets, by size of bank,
December 31, 1965________ ______ ___
______

145

___148-149

Insured mutual savings banks:
Amount, and percentage distributions, December and June
call dates, 1963 through 1965______________________________ 140-143
Major categories, average, 1957-1965____________________________



175

FEDERAL DEPOSIT INSURANCE CORPORATION

188

Page
Assets, liabilities, and capital of banks (see also Deposits) — Continued
Mutual savings banks:
Banks grouped by insurance status, June 30, and December
31, 1965_______________ _______
____________________ 130-133
Sources of d a ta ______
Assets and liabilities of FDIC___________

129, 151, 179
....

______ 25-27

Assets pledged to secure bank obligations________

___

.139, 143

Assets purchased by FDIC from banks in financial d ifficulties____ 13, 26, 29, 179
Assumption of deposits of insured banks with financial aid of FDIC
(see also Banks in financial difficulties)____________________ 10-13, 179, 181-184
Attorney General of the United States, summary reports on absorptions___ 33-77
Audit of FDIC________________________________________________________ 24, 29-31
Bad-debt reserves. See Valuation reserves.
Bank Merger Act of 1960__________
_____ ________ _______

___15-17

Bank practices. See Unsafe and unsound banking practices.
Bank supervision. See Supervision of banks; Examination of insured banks.
Banking Acts of 1933 and 1935_______

.... 3-4, 9, 13

Banking data, classification of:
Assets and liabilities of banks_______________________________________

129

Deposit insurance disbursements____________________________________
Income of insured banks____________________________________________

179
151

Number, offices, and deposits of banks____________________________ 114-115
Banking offices, number of. See Number of banks and branches.
Banks, applications from, acted on by FDIC__________________ ____ _____ 14-15
Banks in financial difficulties:
Insured banks requiring disbursements by FDIC:
Deposit size of_________________________________________________ 182
_____________11, 180, 182-183
Deposits protected, 1934-1965_____ .
Disbursements by FDIC, 1934-1965__________________ 4, 10-13, 179-184
Loans made and assets purchased by FDIC_______________________12-13
Location by State, 1934-1965

___________________

Losses incurred by FDIC____________

_______ 7, 10, 12-13, 184

Losses incurred by depositors___________

_______________

183
11

Name and location of, 1965___________________________________ 10, 181
Number of, 1934-1965___________________________________4, 10-12, 180
Number of deposit accounts, 1934-1965 ____

______ 182-183

Recoveries by FDIC on assets acquired, 1934-1965_________ 12-13, 184
Noninsured banks:
Deposits of commercial banks closed, by year, 1934-1965_________

180

Sources of data________________________________________________

179

Suspensions, 1965__________________________________________ 116, 179
Banks, number of. See Number of banks and branches.
Board of Directors of FDIC. See Federal Deposit Insurance Corporation.
Board of Governors of the Federal Reserve System. See Federal Reserve
authorities.



189

INDEX

Page
Branches (see also Number of banks and branches):
Establishment approved by FDIC, 1965______________________________ 14-15
Examination of, 1964 and 1965 ________ ____________________________
17
Increase, branches of all banks, 1965_____ ___________________ 5, 100, 117
Regulation of________________________________________________________ 100
Call reports. See Assets, liabilities, and capital of banks; Reports from
banks.
Capital of banks. See Assets, liabilities, and capital of banks; Banks in
financial difficulties; Income of insured commercial banks; Examina­
tion of insured banks.
Capital notes and debentures_____________________________________________

106

Certificates of deposit (see also Deposits)_______________________________ 6, 105
Charge-offs by banks. See Income of insured commercial banks;
Income of insured mutual savings banks; Valuation reserves.
Class of bank, banking data presented by:
Admissions to and terminations of insurance________________________ 116-117
Assets and liabilities of all banks____________________________ 132-133, 144
Income of insured commercial banks, 1965_________________________ 156-157
Insured banks requiring disbursements by FDIC, 1934-1965___________ 182
Number of banks and banking offices, 1965________________98, 101, 116-127
Ratios of income of insured commercial banks, 1965....._____________158-159
Classification of banks_____________________________________________98, 114-115
Closed banks. See Banks in financial difficulties.
Commercial banks. See Assets, liabilities, and capital of banks; Deposits;
Income of insured commercial banks; Number of banks and branches.
Comptroller General cf the United States _________________ ______________
31
Comptroller of the Currency.... _____________________ IV, V, 8, 14, 24, 97, 99-100
Computer systems, uses of
___________________________________________ 7-8
Conferences of supervisors of State banks _____________________________
21
Consolidations. See Absorptions.
Control of banks, changes in ________________ __ ____________________ __ 97-98
Credit, bank. See Assets, liabilities, and capital of banks.
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance coverage___________________________________________8-9, 31
Deposit insurance national banks____ ________

. .. .

________12-13

Deposits of:
All banks:
By insurance status of bank and type of account, December 31,
1965 ___ __ ___ ____ __________ ____ _
______________________ 133
By insurance status of bank and type of account, June 30, 1965____ 131
By type of account in each State and FDIC district, December 31,
1965 ________________________ „ _____ __ ____________ . . . . . . .......134-135
By type of bank in each State and FDIC district, December 31,
1965 ______________________
______________________________ 126-127
Deposit growth
___________________
______________________ 104




190

FEDERAL DEPOSIT INSURANCE CORPORATION
Page

Deposits of — Continued
All insured banks:
By type of account, December 31, 1965 ___________________________ 133
By type of account, call dates, June 30, 1962, through December
31, 1965 ____________________________________ ________________
Ratios of deposit insurance fund to, 1934-1965 _

138

... 26n, 31

Commercial banks:
By FDIC district and State, December 31, 1965 _______________ 126-127
By type of account, December 31, 1965 . .... ____________________

133

By type of account, June 30, 1965.

131

......__________________________

Insured banks requiring disbursements by the Corporation. See Banks
in financial difficulties.
Insured commercial banks:
By type of account, call dates, December 20, 1963, through De­
cember 31, 1965 ______________________________________________

140

Percentage distributions of selected totals among size groups of
banks, December 31, 1965_______________ _____________________ 145
Insured mutual savings banks:
By FDIC district and State, December 31, 1965_________________126-127
By type of account, call dates, December 20, 1963, through
December 31, 1965 ___________________________________________
Interest and dividends on, 1957-1965_____________________________

140
174

Mutual savings banks:
By FDIC district and State, December 31, 1965_________________ 126-127
By type of account, June 30, and December 31, 1965___________ 131, 133
Noninsured banks:
By FDIC district and State, December 31, 1965________________ 126-127
By type of account and type of bank, June 30, and December
31, 1965 ____________________________________________________131, 133
Sources of data concerning_________________________________________ 129
State legislation concerning________________________________________ 87-93
Deposits, insured by FDIC, 1934-1965____________________________________

31

Directors of FDIC. See Federal Deposit Insurance Corporation.
Disbursements. See Banks in financial difficulties.
Dividends:
To depositors in insured mutual savings banks______ 110-111, 174, 176-177
To stockholders of insured commercial banks. See Income of insured
commercial banks.
Earnings of banks. See Income of insured commercial banks; Income of
insured mutual savings banks.
Economic conditions ____________________________________________________

102

Educational program for bank examiners_________________________________

25

Employees:
FDIC

______________________________________________________________23-25

Insured commercial banks:
Number and compensation, 1957-1965___________________________ 152-153



INDEX

191
Page

Employees - Insured commercial banks — Continued
Number and compensation, by class of bank, by size of bank, and
Insured mutual savings banks, number and compensation________ 174-175
Examination of insured banks:
Banks examined by FDIC, 1965________________________________ 17-18, 97-99
District offices and supervising examiners____________________________

VI

Examiners school ___________________________________________________

25

Powers granted to supervisory authorities______________ 4-5, 8, 17-18, 97-99
Expenses of banks. See Income of insured commercial banks; Income of
insured mutual savings banks.
Expenses of FDIC_______________________________________________________ 27-30
Failures. See Banks in financial difficulties.
Federal bank supervisory authorities_________________________ 3-5, 14-20, 97-99
Federal Deposit Insurance Act (see a/so Legislation relating to deposit
insurance and banking)_____ ______________________________________ 9, 18, 26n
Federal Deposit Insurance Corporation (FDIC):
Actions on applications_____________________________________________ 14-19
Assessments on insured banks______________________________________ 25-30
Assets _____________________________________________________________25-27
Audit

______________________________________________________________29-31

Banks examined by, and submitting reports to_______________ 3, 17-20, 97-99
Borrowing power ________________________________________________ 26n, 29
Capital stock _______________________________________________________ 26n
Computer system ____________________________________________________ 7-8
Coverage of deposit insurance, banks participating____ 8-9, 97-99, 116-127
Deposit insurance fund (surplus)_______________________________ 26n, 26-31
Directors (members of the Board)_________________________________ V, 23-24
Disbursements for protection of depositors__________________ 9-13, 179-184
Districts ____________________________________________________________ VI
Divisions _________________________________________________________ IV, 24
Educational program for bank examiners____________________________
25
Employees _____________________________ ___________________________ 23-25
Examination of banks_____________________________________ VI, 17-18, 97-99
Financial statements, 1965_________________________________________ 26-29
Income and expenses, 1933-1965____________________________________ 29-30
Insured banks requiring disbursements by. See Banks in financial
difficulties.
Liabilities

_________________________________________________________ 25-26

Loans to, and purchase of assets from, insured banks__________ 179, 182-183
Losses incurred, 1934-1965____________________________________ 12-13, 184
Methods of protecting depositors_________________________________9-13, 179
Organization and staff_________________________________________IV-VI, 23-25
Payments to insured depositors_____________________________________ 9-13
Protection of depositors____ _____ ____________________________ 9, 182-183



192

FEDERAL DEPOSIT INSURANCE CORPORATION
Page

Federal Deposit Insurance Corporation (FDIC) — Continued
Recoveries ______
_....
_
_ . .... ______

_________ 13, 184

Reports from banks_____ -.... ... ___________ .... ... _____ ___ 18-21, 97-98
Reserve for losses on assets acquired___ _______________ __________ 26-27
26n
Retirement of capital s to c k________..... ______ _________ ._________
_ 22-23, 84-85
_
Rules and regulations________ ___
_____
29
_____ _________ _______.___________
Sources and uses of funds
Supervisory activities ....
_______
..._ ..
_ _.____ 14-21, 97-99
FDIC districts, banking data classified by:
All banks:
Assets and liabilities, December 31, 1965 .... ..... ____ ___________
Number and deposits, by type of bank, December 31, 1965 _____
Federal funds _________________________________ ____________ ___________

134
126
106

14-20, 97-99
Federal Reserve authorities___________________ _____________
Federal Reserve member banks. See Class of bank, banking data
presented by.
31
General Accounting O ffice___________________________________ ___________
Income of FDIC_____________________________________ ________ __________ 27-30
Income of insured commercial banks:
Amounts of principal components:
Annually, 1957-1965 ___________________

_________ 152-153

By class of bank, 1965 ___________________________ _________156-157
_________ _________ 160-161
By size of bank, 1965____ _______
By State, 1965_________ ____________________________ _________164-173
___________ 151
Classification of income d a ta ___________
106-108
Income, sources and disposition of total .
Ratios of income items:
Annually, 1957-1965 ________ _______________________ _________154-155
By class of bank, 1965______________________________ _________ 158-159
By size of bank, 1965________________________ ____ ________ 162-163
Selected operating ratios, 1950-1965_____________________ __________

108

Sources of data____________________________________________________

151

Income of insured mutual savings banks:
Amounts of principal components, 1957-1965____________ _________ 174-175
Income, sources and disposition of total________________ ___________

110

Ratios of income and expense items, 1957-1965___________ _________ 176-177
Sources of data_________________________________________ ___________

151

Insolvent banks. See Banks in financial difficulties.
Insurance of bank obligations________________________________ ______ 3, 8-9, 29
Insurance status, banks classified by:
Assets and liabilities of, June 30 and December 31, 1965 _________130-133
Changes in number of, 1965______________________________ 116-117, 158-159
Deposits of, June 30 and December 31, 1965____________ _________ 131-133
98, 116-127

Number of, December 31, 1965__________________________

Percentage of banks insured, by State, December 31, 1965._________ 118-125



INDEX

193

Page
Insured banks. See Assets, liabilities, and capital of banks; Banks in finan­
cial difficulties; Deposits; Income of insured commercial banks; Income of
insured mutual savings banks; Number of banks and branches.
Insured commercial banks not members of the Federal Reserve System.
See Class of bank, banking data presented by.
Insured deposits. See Banks in financial difficulties; Deposit insurance
coverage.
Insured State banks members of the Federal Reserve System. See Class of
bank, banking data presented by.
Internal Revenue Service ruling on reserves for losses
on loans ________________________________________________ 23, 85-87, 109-110
Investments. See Assets, liabilities, and capital of banks; Assets and lia­
bilities of FDIC; Banks in financial difficulties.
Law, violations of by insured banks_____________________________________ 18-19
Legislation relating to deposit insurance and banking:
Federal, enacted in 1965_________________________________21-22, 81-84, 97
Relating to bank supervision_________________________________ 15-19, 97-98
State, enacted in 1965______________________________________________ 87-93
Loans. See Assets, liabilities, and capital of banks; Banks in financial
difficulties.
Loans, growth of, 1960-1965______________________________________ 6-7, 102-103
Losses:
Of banks. See Income of insured commercial banks; Income of Insured
mutual savings banks.
Of FDIC ___________________________________________________10, 12-13, 184
On loans, reserves for. See Valuation reserves.
Provision for, in insured banks, 1957-1965________________ 152-153, 174-175
Mergers. See Absorptions.
Methods of tabulating banking data. See Banking data, classification of.
Mutual savings banks. See Assets, liabilities, and capital of banks; Deposits;
Income of insured mutual savings banks; Number of banks and branches.
National banks. See Class of bank, banking data presented by.
New banks, 1965_________________________________________________ 100, 116-117
Noninsured banks (see also Absorptions; Admission of banks to insurance;
Assets, liabilities, and capital of banks; Banks in financial difficulties;
Classification of banks; Class of bank, banking data presented by; De­
posits; Number of banks and branches; Reports from banks)_____________ 8-9
Number of banks and branches:
Banking offices (banks and branches):
By insurance status, type of bank, and State, December 31, 1965__118-125
Changes in specific years____________________________ _ ____ 5-6, 100-101
_
Changes during 1965______________________________________ 100-101, 117
Banks:
Banks having branches, by insurance status, type of bank, and State,
December 31, 1965 __________________________________________118-125
By insurance status and type of bank, December 31, 1965„__98-99, 117, 133



194

FEDERAL DEPOSIT INSURANCE CORPORATION
Page

Number of banks and branches — Continued
By insurance status, type of bank, FDIC district and State, December
31, 1965 _____________________________________________________ 126-127
Changes during 1965_______________________________ __________100, 117
Branches:
By insurance status, type of bank, and State, December 31, 1965__118-125
Changes during 1965__________________________________________ 100, 117
Regulation of _____________________________________________ 5-6, 100-101
Insured commercial banks:
December 31, 1957-1965_________ _______ _____________________ 153, 155
December 31, 1965, by class of bank, deposit size of bank,
and State_________________________________________157, 161, 171,

173

Distributed by capital ratios and distribution of assets, December
31, 1965 __ _________________________________________________ 148-149
Insured mutual savings banks, 1957-1965_________________________ 175-177
Mutual savings banks, December 31, 1965_____________________98, 117-127
Noninsured banks, December 31, 1965_________________________ 98, 117-127
Unit banks, by insurance status and State, December 31, 1965_____ 118-125
Obligations of banks. See Assets, liabilities, and capital of banks; Deposits.
Officers of insured banks. See Employees.
Officials of FDIC_________________________________________ ____ _______ V, 23-24
Operating banks. See Number of banks and branches.
Payments to depositors in closed insured banks. See Banks in financial
difficulties.
Personnel. See Employees.
Possessions, banks and branches located in. See Areas outside continental
United States, banks and branches located in.
Protection of depositors. See Banks in financial difficulties.
Receivership, insured banks placed in. See Banks in financial difficulties.
Recoveries:
By banks on assets charged off. See Income of insured commercial
banks; Income of insured mutual savings banks.
By FDIC on disbursements. See Banks in financial difficulties.
Reports from banks

..

______________________________________ 18-21, 97-98

Reserves:
Of FDIC, for losses on assets acquired_____________________________ 26-27
Of insured banks for losses on assets. See Valuation reserves.
With Federal Reserve Banks. See Assets, liabilities, and capital of banks.
Salaries and wages:
FDIC _______________________________________________________________

27

Insured banks. See Income of insured commercial banks; Income of
insured mutual savings banks.
Savings and time deposits. See Deposits (items referring to type of account).
Securities. See Assets, liabilities, and capital of banks; Assets and liabilities
of FDIC; Banks in financial difficulties.
Securities, registration and reporting of bank____________________________ 18-20



INDEX

195
Page

Size of bank, data for banks classified by amount of deposits:
Assets and liabilities, insured commercial banks, 1965 _____________ 145
Banks requiring disbursements by FDIC, 1934-1965 ________________ 182
Disbursements for protection of depositors, 1934-1965
__________ 182
Income data of insured commercial banks, 1965_______________ __160-161
Income ratios of insured commercal banks, 1965 _____

.162-163

Number of employees of insured commercial banks, 1965_____________ 161
Number of insured commercial banks, 1965...
... _________ 161, 163
Number of insured commercial banks, grouped by ratios of selected
items to assets, December 31, 1965
148-149
State, banking data classified by:
Assets and liabilities of banks, December 31, 1965________________134-135
Deposits of banks, by class of bank, December 31, 1965___________ 126-127
Disbursements, deposits, and depositors in insured banks requiring
disbursements by FDIC, 1934-1965_______________________________ 183
Income of insured commercial banks, 1965_____

________________ 164-173

Number of banks and branches, by class of bank and type of office,
December 31, 1965 .
_ _______________________ __________ 118-125
.
Percentage of banks insured, December 31, 1965 .
State banking legislation enacted in 1965_________________

________ 118-125
___________ 87-93

State banks. See Class of bank, banking data presented by.
Stock ownership of banks, changes in.... ______________________________ 97-98
Stockholders of banks, net profits available for. See Income of insured com­
mercial banks.
Supervision of banks (see also Examination of insured banks):
By FDIC ______________________________________ _________ VI, 14-21, 97-99
Federal and State supervision..........___________________________ 4-5, 97-99
State legislation, 1965____ _______________________________________ 87-93
Supervisory status of banks------------------------------- ------------------------- 97-101
Suspensions. See Banks in financial difficulties.
Taxes paid by insured banks. See Income of insured commercial banks;
Income of insured mutual savings banks.
Terminations of insurance for unsafe and unsound practices____________ 18-19
Time and savings deposits. See Deposits (items referring to type of account).
Trust companies, classification of_____
Trust powers, applications f o r _ .....
_

...__________________ 98, 115
_________

_____________________

15

Unit banks, by insurance status and State, December 31, 1965__________ 118-125
Unsafe and unsound banking practices________________________________ 18-19
Valuation reserves (see also Assets, liabilities, and capital of banks):
Amounts held, June and December call dates, 1962 through 1965_____

137

Amounts held, June 30 and December 31, 1965______________130, 132, 141
Internal Revenue Service ruling, change in concerning__________ 23, 85-87
Number of banks reporting reserves under Internal Revenue Service
rulings, December 31, 1961-1965___________________________________ 109
Changes, 1957-1965 ______________________ ______________ 152-153, 174-175
Violations of law or regulations, banks charged with______________________18-19







Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102