The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A N N U A L REPORT OF TH E FEDERAL DEPOSIT INSURANCE CORPORATION 1967 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., May 15, 1968 SIR S : Pursuant to the provisions of Section 17(a) of the Federal Deposit Insurance Act, the Federal Deposit Insurance C orporation is pleased to subm it its report for the calen d ar year 1967. Respectfully yours, Chairman THE PRESIDENT OF THE SENATE THE SPEAKER OF THE HOUSE OF REPRESENTATIVES iii FE D E R A L DEPO SIT INSURANCE CORPORATION BOARD OF DIRECTORS COMMITTEES CHAIRMAN COMPTROLLER OF THE CURRENCY DIRECTOR BOARD OF REVIEW LIQUIDATIONS, LOANS AND PURCHASES OF ASSETS SPECIAL SECRETARY EXECUTIVE ASSISTANT TO THE BOARD AUDITOR ASSISTANTS EXAMINATION DIVISION LEGAL DIVISION LIQUIDATION DIVISION RESEARCH DIVISION OFFICE OF THE CONTROLLER FEDERAL DEPOSIT INSURANCE CORPORATION BOARD OF DIRECTORS Chairman ..................................... ..................................... K. A. Randall D irector......................................................... ......................... (Vacancy) Comptroller of the Currency..... ................. ............... William B. Camp OFFICIALS Assistant to the Chairman ................ ....... .............. John L. Flannery Special Assistant to the Chairman ............ .......................... Lynn Mah Special Assistant to the Chairman for Mutual Savings Banks............ ......... ............ Raymond T. Cahill Assistant to the Director....................... ..... ..............Albert J. Faulstich (Comptroller of the Currency) Chief, Division of Examination..... .............. .... ..... Edward H. DeHority General Counsel ........................................... ..................... S. Rex Lewis Controller ....... .............................................. Edward F. Phelps, Jr. Director, Division of Research............. ....... ......................... (Vacancy) Chief, Division of Liquidation .......................................A. E. Anderson Secretary...................................................... ...................... E. F. Downey Auditor (Acting)........................................................... John D. Roderick Senior Advisor to the B oard....................... Raymond E. Hengren Executive Assistant to the Board............... Timothy J. Reardon, Jr. Assistant to the B oard.......................................... William M. Moroney May 15, 1968 V FE D ER A L D E P O S I T I N S U R A N C E CO RP OR ATI ON D I S T R I C T S DISTRICT OFFICES AND Boston Mark J. Laverick Two Center Plaza Boston, Massachusetts 02108 New York Claude C. Phillippe 74 Trinity Place New York, New York 10006 Philadelphia Alan R. Miller Public Ledger Building 6th and Chestnut Streets Philadelphia, Pennsylvania 19106 Richmond Albert E. Clark 403 East Grace Street Richmond, Virginia 23219 Atlanta Lewis C. Beasley 1000 Bank of Georgia Building Atlanta, Georgia 30303 Columbus William D. Allen Huntington Trust Building 37 West Broad Street Columbus, Ohio 43215 Madison Wallace A. Ryen 715 Tenney Building Madison, Wisconsin 53703 FEDERAL DEPOSIT SUPERVISING EXAMINERS Chicago John J. Early 164 West Jackson Boulevard Chicago, Illinois 60604 St. Louis John Stathos 420 Locust Building 1015 Locust Street St. Louis, Missouri 63101 Memphis Quinton Thompson First National Bank Building 165 Madison Avenue Memphis, Tennessee 38103 Minneapolis Roger B. West 748 Roanoke Building Minneapolis, Minnesota 55402 Kansas City Stanley Pugh 1708 Federal Reserve Bank Building Kansas City, Missouri 64106 Dallas Lloyd Thomas Federal Reserve Bank Building Station K Dallas, Texas 75222 San Francisco Walter W. Smith Wells Fargo Building 44 Montgomery Street San Francisco, California 94104 INSURANCE CORPORATION M a i n O f f i c e : 5 5 0 1 7 t h S t r e e t , N. W., W a s h i n g t o n , D. C. 2 0 4 2 9 vi CONTENTS Page The year in b rie f--------------- ------ -------- ----------------- ---------------- xi PART ONE BANKING DEVELOPMENTS The economy in 1967 -------------------- ------------------ ----------------- 3 Financial developments......... ..... .............. ....... ................- .... — 5 Commercial bank performance in 1967 ________ ________ ___ 9 PART TWO OPERATIONS OF THE CORPORATION Disbursements to protect depositors....... ...... ............................... 19 Supervisory activities............ ....................................................... 22 Federal legislation ...... ................................ .................................. 29 Rules and regulations of the Corporation________________ __ 30 Administration of the Corporation ............................................ 33 Finances of the Corporation ........................ ................................. 34 PART THREE LEGISLATION AND REGULATIONS Federal banking legislation— 1967 ______ _____ ___________ 93 Rules and regulations of the Corporation— 1967 ..... ..... ........ . 99 State banking legislation— 1967 __________________ ________ 143 PART FOUR STATISTICS OF BANKS AND DEPOSIT INSURANCE Number of banks and branches...... .... ......... .......... ..... ............... 154 Assets and liabilities of banks__ ______________ ___ _______ 170 Income of insured banks...... .............................................. ....... 186 Banks closed because of financial difficulties; deposit insurance disbursements___ ___________________ 216 LIST OF TABLES Page DISBURSEMENTS TO PROTECT DEPOSITORS: 1. Insured banks closed during 1967 requiring disbursements by the Fed eral Deposit Insurance Corporation ............................................................. 19 2. Protection of depositors of insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1967 .......................... 20 3. Analysis of disbursements, recoveries and losses in deposit insurance transactions, January 1, 1934-December 31, 1967 .................................. 21 SUPERVISORY ACTIVITIES: 4. Mergers, consolidations, acquisitions of assets and assumptions of liabilities approved under section 18(c) of the Federal Deposit Insur ance Act during 1967 ..................................................................................... 24 5. Bank examination activities of the Federal Deposit Insurance Corporation in 1966 and 1967 ................................................................................ ........... 25 6. Actions to terminate insured status of banks charged with unsafe or un sound banking practices or violations of law or regulations, 19361967 .................................................................................................................. 26 14. Description of each merger, consolidation, acquisition of assets or assumption of liabilities approved by the Corporation during 1967 ..... 4 3 ADMINISTRATION OF THE CORPORATION: 7. Number of officers and employees of the Federal Deposit Insurance Corporation, December 31, 1966 and 1967 ............................................ 34 FINANCES OF THE CORPORATION: 8. Statement of financial condition, Federal Deposit Insurance Corpora tion, December 31, 1967 ............................................................................. 35 9. Statement of income and the deposit insurance fund, Federal Deposit Insurance Corporation, year ended December 31, 1967 ........................ 36 10. Determination and distribution of net assessment income, Federal De posit Insurance Corporation, year ended December 31, 1967 ................ 37 11. Sources and application of funds, Federal Deposit Insurance Corpora tion, year ended December 31, 1967 ......................................................... 37 12. Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of operations, September 11, 1933, to December 31, 1967, adjusted to December 31, 1967 ....................................................... 38 13. Insured deposits and the deposit insurance fund, 1934-1967 ............... 3 9 Page NUMBER OF BANKS AND BRANCHES: Explanatory note ...................................................................................................... 154 101. Changes in number and classification of banks and branches in the United States (States and other areas) during 1967 .......................... 156 102. Changes in number of commercial banks and branches during 1967, by State .......................................................................................................... 15 103. Number of banking offices in the United States (States and other areas), December 30, 1967 Grouped according to insurance status and class of bank, and by State or area and type of o ffic e ........................................ .................... 160 104. Number and deposits of all commercial and mutual savings banks (States and other areas), December 30, 1967 Banks grouped by class and by deposit size .................................... 169 ASSETS AND LIABILITIES OF BANKS: Explanatory note ...................................................................................................... 171 105. Assets and liabilities of all banks in the United States (States and other areas), June 30, 1967 Banks grouped according to insurance status and type of bank .... 172 106. Assets and liabilities of all banks in the United States (States and other areas), December 30, 1967 Banks grouped according to insurance status and type of bank .... 174 107. Assets and liabilities of insured commercial and insured mutual savings banks in the United States (States and other areas) December call dates, 1963-1967 ........................................................ 176 108. Assets and liabilities of insured commercial banks in the United States (States and other areas), December 30, 1967 Banks grouped by class of b a n k ............................................................. 180 109. Assets and liabilities of insured commercial banks operating through out 1967 in the United States (States and other areas), December 30, 1967 Banks grouped according to amount of deposits ............................ 181 110. Percentages of assets and liabilities of insured commercial banks operating throughout 1967 in the United States (States and other areas), December 30, 1967 Banks grouped according to amount of deposits.............................. 183 111. Distribution of insured commercial banks in the United States (States and other areas), December 30, 1967 Banks grouped according to amount of deposits and by ratios of selected items to assets and deposits ............................................ ........ 184 ix Page INCOME OF INSURED BANKS: Explanatory note ...................................................................................................... 187 112. Income of insured commercial banks in the United States (States and other areas), 1959-1967 ............................................................................. 188 113. Ratios of income of insured commercial banks in the United States (States and other areas), 1959-1967 ........................................................ 190 114. Sources and disposition of total income, insured commercial banks in the United States (States and other areas), 1959-1967 ........................ 191 115. Income of insured commercial banks in the United States (States and other areas), 1967 Banks grouped by class of b a n k ............................................................. 192 116. Income of insured commercial banks operating throughout 1967 in the United States (States and other areas) Banks grouped according to amount of deposits ............................ 194 117. Ratios of income of insured commercial banks operating throughout 1967 in the United States (States and other areas) Banks grouped according to amount of deposits ............................ 196 118. Income of insured commercial banks in the United States (States and other areas), by State, 1967 ..................................................................... 198 119. Income of insured mutual savings banks, 1959-1967 ............................ 208 120. Ratios of income of insured mutual savings banks, 1959-1967 ........... 210 121. Sources and disposition of total income, insured mutual savings banks, 1959-1967 ......................................................................................... 211 122. Income of insured mutual savings banks in the United States (States and other areas), by State, 1967 ............................................................. 212 BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES; DEPOSIT INSURANCE DISBURSEMENTS: Explanatory note ...................................................................................................... 217 123. Number and deposits of banks closed because of financial difficulties, 1934-1967 ...................................................................................................... 218 124. Insured banks requiring disbursements by the Federal Deposit Insur ance Corporation during 1967 ................................................................... 219 125. Depositors, deposits and disbursements in insured banks requiring dis bursements by the Federal Deposit Insurance Corporation, 1934-1967 Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount of deposits, and S ta te ............................................ 220 126. Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements for protection of depositors, 1934-1967 .... 222 THE YEAR IN BRIEF Commercial banks experienced a favorable year in 1967, increas ing their assets by more than 12 percent. Operating earnings of in sured commercial banks rose about 5.6 percent from 1966, while net income after taxes increased by about 17 percent. The liquidity position of commercial banks and of savings institutions improved significantly in 1967. Investments comprised a larger share of com mercial and mutual savings bank assets than a year earlier. In 1967, the Corporation’s disbursements were required in four bank failure cases involving a total of almost $11 million of deposits and approximately 4,700 depositors. By the end of the year, over 98 percent of the depositors had fully recovered their funds, with the aid of Corporation disbursements totaling $7.8 million. The deposit insurance fund rose by $234 million during the year to a total of $3,485 million. As of December 31, 1967, the fund amounted to 0.78 percent of total deposits in insured banks, and approximately 1.33 percent of insured deposits. At the end of 1967, there were 14,244 banks in the United States, of which 13,850, or 97.2 percent, were insured. The banks not par ticipating in Federal deposit insurance included 224 commercial banks and nondeposit trust companies and 170 mutual savings banks. During 1967, the total number of banks in operation decreased by 47, and the number of insured banks by 23. A 1,105 net increase in branches raised the total number of banking offices by 1,058. The Corporation conducted 7,148 examinations of main offices, 4,662 examinations of departments and branches, and 1,767 investi gations during the year. Major changes were made in the structure of FDIC Districts in 1967, involving an increase in their number from 12 to 14 and shifts in the boundaries of several Districts. The new alignment of Districts became fully operational on July 1. Temporary legislation granting the Federal bank supervisory author ities additional flexibility in establishing maximum interest rates pay able by insured banks on deposits, which was enacted in 1966, was extended on September 21, 1967, for a one-year period. The Cor poration issued new rules and regulations to define and clarify insur ance coverage and to carry out the intent of Congress to provide in surance up to $15,000 per depositor. BANKI N6 DEVELOPMENTS PART ONE 3 By most yardsticks 1967 was an excellent year for commercial banks. Deposits and assets increased by about 12 percent, and most banks were able to post sizeable gains in earnings at the same time that they increased their liquidity. A brief review of the principal eco nomic and financial developments in 1967 will help place the princi pal developments in banking in better perspective. TH E ECONOMY IN 1 96 7 The U.S. economy during 1967 recorded its seventh consecutive year of expansion. The pace of economic activity, however, was not uniform throughout the year or throughout all sectors of the economy. Gross national product (GNP) advanced at an annual rate of only $13 billion during the first half of the year, in contrast to a gain of more than $32 billion during the second half of 1967. About half the over all gain came as a result of price level increases. Changes in GNP in 1967 were closely tied to fluctuations in the level of inventory accumulation and to changes in the level of Govern ment spending. Inventory accumulation was substantial in 1966 and, partly as a result of a disappointing level of final sales, net inventory accumulation occurred at an $18.5 billion annual rate in the fourth quarter of 1966. Thereafter, inventory accumulation declined sharply, falling to less than $1 billion in the second quarter of 1967. The de pressing effect on the economy of inventory behavior during the first half of 1967 was partially offset by an increase in the level of govern ment expenditures, particularly by the Federal Government. In the second half of 1967, inventory investment began to pick up and, thus, to exert an expansionary influence on the economy, while the advance in Government expenditures moderated. The net influ ence of changes in inventory accumulation and Government expenditures on changes in GNP is depicted in Chart 1. Business spending on plant and equipment declined slightly in the first half of 1967 and posted moderate gains in the second half. Spending on residential construction increased throughout 1967, fol lowing a sharp decline in the last three quarters of 1966, and by the fourth quarter of 1967 approximately regained the level achieved prior to the 1966 decline (Chart 2). Consumer expenditures, particularly for durable goods, expanded at a relatively modest pace in 1967. If the effect of increases in the con sumer price level is excluded, expenditures on durable and nondura ble goods (consumer expenditures exclusive of spending on services) barely increased between the fourth quarter of 1966 and the fourth 4 FEDERAL DEPOSIT INSURANCE CORPORATION CHART 1 RELATIONSHIP AMONG GNP, GOVERNMENT SPENDING AND INVENTORY ACCUMULATION BILLIONS OF DOLLARS BILLIO NS OF DOLLARS quarter of 1967. Households saved an unusually high proportion of their incomes in 1967 (Chart 3). Recent price rises, uncertainty about the economic outlook and taxes and unsettled conditions in financial markets may have influenced the high personal savings rate. Clearly, the effect of the high savings rate was to moderate the pressure on both goods and financial markets in 1967. In summary, 1967 can be characterized as a year in which the economy maintained a relatively high rate of activity, but a year in which “ real" gains were modest. The economy was able to absorb a rather substantial inventory adjustment and a slowdown in consumer THE ECONOMY IN 1967 5 CHART 2 HOMEBUILDING ACTIVITY BILLIONS OF DOLLARS MILLIO NS OF UNITS Figures are s e a s o n a lly a d ju sted annual rates spending relatively painlessly. To a considerable extent this occurred because Government spending increased substantially. FINANCIAL DEVELOPMENTS In some respects financial markets behaved paradoxically in 1967. During most of the year monetary policy remained expansionary. Banks and other financial institutions had ample funds to meet loan demands, a situation which contrasted markedly with the stringency existing during much of 1966. However, the cost of funds was high. Interest rates in early 1967 continued the decline begun in late 1966, but began to turn upward once again in March in the case of corpo rate and Government bonds and about mid-year in the case of short term securities. Monetary policy. Following a period of considerable restraint, the monetary authorities began to move toward an easier policy in the fourth quarter of 1966. Throughout most of 1967 the monetary au thorities continued to make reserves available to commercial banks. The effect of this increase in the reserve base was supplemented by reductions in reserve requirements on time and savings deposits. In April the discount rate was reduced from 4 1/2 to 4 percent. Monetary 6 FEDERAL DEPOSIT INSURANCE CORPORATION policy remained fairly expansionary until late in 1967 when the expan sion of the reserve base was moderated. In late November, partly in response to the devaluation of the British pound, the discount rate was again raised to 4Y2 percent. Credit demands. While substantial credit expansion occurred in 1967, credit demands of the various sectors of the economy were not uniformly strong. A Federal cash deficit of approximately $7.3 billion in calendar year 1967 added to the pressure on financial markets. The acceleration of corporate tax payments and repayment of Federal agency debt contributed to an improved Treasury cash position in the first half of the year when Treasury receipts normally exceed expendi tures. In the second half of 1967, however, the cash deficit was about $20 billion and Treasury financing exerted considerable pressure on financial markets. State and local governments added a record dollar volume to their debt in 1967. In part this reflected financing postponed from 1966 when financial markets became extremely tight. Both Federal and State and local government financing was concentrated in commercial banks in 1967. Net purchases of Federal and State and local govern ment securities by commercial banks amounted to $15.3 billion, and banks also were substantial net purchasers of Federal agency securi ties. Despite an upswing in housing starts, the volume of mortgage fi nancing in 1967 barely exceeded the relatively low 1966 level. Among other considerations, this reflected the fact that mortgage closings tend to lag somewhat behind movements in housing starts and the fact that high interest rates, and inflexible rate ceilings on mortgages 7 FINANCIAL DEVELOPMENTS in some areas, restrained the level of housing turnover and refinanc ing. The overall increase in corporate debt in 1967 was slightly less than in 1966. Despite the fact that banks had ample funds during most of 1967 and were generally more eager to make loans than in 1966, corporate borrowing from banks expanded by less than in the two previous years. The expansion of trade credit was also at a slower pace than during the two previous years. What made 1967 so unusual from the standpoint of corporate financing was the tremendous vol ume of bond financing. Net corporate bond financing increased by about 50 percent compared with an already extremely high 1966 level (Chart 4). CHART 4 CORPORATE AND MUNICIPAL BOND FINANCING BILLIONS OF DOLLARS BILLIONS OF DOLLARS 1 9 6 1 -6 5 1966 1967 AVERAGE The increase in the volume of corporate bond financing in early 1967 was not surprising. In previous periods when economic activity has slackened and monetary policy has eased, corporations have taken advantage of lower interest rates in the capital market to replenish their liquidity through long-term financing. However, the 1966-1967 decline in interest rates was extremely short-lived, particularly with re spect to corporate bonds. The quick turnaround in bond rates reflected expectations that the pace of business activity would accelerate in the 8 FEDERAL DEPOSIT INSURANCE CORPORATION second half of the year and the heavy calendar of bond financing that was building up. Between February and December, rates on high and medium-grade corporate bonds rose by more than 110 basis points to their highest level since 1921. Despite the rising level of interest rates on corpo rate bonds, the volume of corporate bond financing continued to be high throughout the year. Either high rates did not weigh heavily in corporate decisions or the need for long-term financing was consid ered to be very pressing. Apparently the difficulties experienced by some firms in 1966 with respect to obtaining adequate financing persuaded them of the need for heavier reliance on long-term financing. The heavy volume of bank borrowing in 1965 and 1966 led to relatively high use of credit lines by some firms and, as a result, provided little leeway for financing un expected cash needs. Long-term financing, for some firms, provided a means for paying down such lines. Additional needs for long-term financing were related to the speed-up in corporate tax payments oc curring in 1966 and 1967. This speed-up had the effect of eliminating what had amounted to a permanent source of financing aggregating about $8 billion for all corporations. Interest rates. The heavy volume of corporate bond financing put substantial pressure on financial markets. Because the principal sup pliers of funds to the corporate bond market in recent years have been insurance companies and pension funds with relatively fixed in flows of funds, it was necessary to tap other financial resources to finance the greatly increased volume of long-term corporate debt. This required concessions to the bond market in the form of substantially higher interest rates to attract such investors as individuals and mu tual savings banks. During the spring of 1967 bond rates increased while the effect of relatively easy monetary policy exerted downward pressure on short term interest rates. Thus, for a while there emerged an unusually large spread between short-term and long-term interest rates. In the second half of 1967 Treasury bill rates moved up sharply, but still re mained well below bond rates. In the mortgage market, the recovery in the inflow of funds to mort gage lenders outdistanced the recovery in housing starts during the first half of 1967. As a result, normally sluggish mortgage rates did not begin to move up again until well after the turnaround in corpo rate bond yields, and the rise of mortgage rates in the second half of 1967 (partly because of interest ceilings and usury laws) was rela tively modest. Indeed, interest rates on medium-grade corporate bonds moved above the average rate on conventional and insured mortgages in the latter part of 1967. FINANCIAL DEVELOPMENTS 9 CHART 5 I NTEREST RATES PERCENT PERCENT The experience in 1967 (Chart 5) testified to the fact that interest rate relationships cannot be taken for granted. While a considerable overlap exists among the portfolios of different lenders and considera ble arbitrage occurs in financial markets, the mix of credit demands can importantly affect the relationships among interest rates and re sult in significant deviation from “ normal” patterns. COMMERCIAL BANK PERFORMANCE IN 1 9 6 7 Deposits. Deposits at insured commercial banks advanced by a record $43 billion in 1967— more than 12 percent. A substantial in crease in the reserve base of member banks contributed importantly to a record $19 billion— 9.8 percent— gain in demand deposits. Size able increases were experienced by banks in their IPC, public and bank demand deposits. While most banks shared in the increases, large banks and banks located in financial centers experienced greaterthan-average growth in demand deposits. Time deposits rose by more than $24 billion in 1967— approxi mately double the 1966 advance. Two-thirds of the total gain was recorded during the first half of the year. As short-term market rates of interest rose in the second half of 1967, time deposit gains slackened, in part because of attrition in large-denomination certifi 10 FEDERAL DEPOSIT INSURANCE CORPORATION cates of deposit, but also because of reduced gains in consumeroriented time deposits. During 1967 gains occurred in all categories of time deposits. Sav ings deposits, which had declined in 1966 as a result of competition from other savings instruments— including bank time deposits— in creased by $4.4 billion, or 4.8 percent. Large-denomination CD’s, de spite a decline in the latter part of the year, increased by about $4 bil lion. Other IPC time deposits, excluding negotiable CD’s, increased $12 billion, or about 30 percent. During 1967 a growing number of commercial banks attempted to bid for a larger share of savings dollars through open book accounts. Such accounts have enabled commercial banks to offer an instrument similar in form and competitive in rate with savings instruments of fered by thrift institutions. The 5 percent ceiling applicable on such accounts of less than $100,000 was generally the prevailing rate on these savings instruments during the second half of 1967. Start ing from a relatively low base, time deposit open accounts under $100,000 experienced the largest percentage gain of the various time deposit categories in 1967. A number of factors contributed to the favorable performance of time and savings deposits at commercial banks in 1967. These in cluded the high personal savings rate, the desire of spending units to rebuild their liquidity and the relatively attractive rates offered on time deposits compared with short-term money market rates— at least during the first half of the year. During the early months of 1967 the number of banks lowering their rates on consumer-oriented time deposits exceeded the number of banks raising such rates, but, as market interest rates began to climb, the number of rate increases on time deposits rose. By the lat ter part of 1967 most of the larger banks were offering the 5 percent maximum permissible rate on at least one time-deposit instrument of less than $100,000. Rates on negotiable CD’s followed roughly the same pattern, although they moved more uniformly in line with money market rates. In September Congress extended for one year the interest rate leg islation originally enacted in September, 1966, and scheduled to expire in September, 1967. The interest rate ceiling remained at 5 1/2 percent for time deposits in denominations of over $100,000 and 5 percent for denominations of less than $100,000. While commercial banks, mutual savings banks, and savings and loan associations all competed actively for individual savings in 1967, some of the intensity of the savings competition of 1966 was gone. The savings pool was growing rapidly, rate competition from the money market was less intensive; and there was only limited opportunity COMMERCIAL BANK PERFORMANCE IN 1967 11 for rate changes, although there continued to be some experimenta tion with new or modified instruments. In addition, the most rate-sensitive funds posed less of a problem because they had already been largely withdrawn from banks and thrift institutions in 1966. Both mutual savings banks and savings and loan associations experi enced sizeable savings gains— about 8 percent in the case of mutuals and about 9 percent in the case of savings and loan associations. Loans and investments. Loans of insured commercial banks in creased by $18 billion in 1967, slightly more than in 1966, but below the increase experienced in 1965 and 1964. Bank investments rose by $19 billion, the largest annual gain since World War II. As a result, bank liquidity as measured by the loan-deposit ratio increased for the first time in several years. In the light of the abundant volume of funds available to banks in 1967 and the fact that there probably existed a backlog of unsatisfied loan demand from 1966, the 8.4 percent loan increase in 1967 was modest. The dollar gains in commercial and industrial, real estate, and consumer loans approximated the gains in 1966. The percentage gain in consumer loans was pulled down by a relatively small gain in automobile loans, which resulted from a high level of loan repayments and reduced new car sales. The larger banks had greater-than-average percentage gains in de posits, but less-than-average gains in loans. While the 20 largest banks in the country showed a loan increase of 6 percent, all other banks showed a gain of almost 10 percent. In part, the performance of the largest banks may have reflected the fact that they entered 1967 under a somewhat greater pressure to rebuild liquidity than did those banks more removed from money centers. At the same time, high rates of return on municipal and Federal agency securities probably discour aged larger banks from reaching for loans. Investments. Banks posted substantial gains in 1967 in Treasury, State and local government, and Federal agency securities. Their hold ings of Treasury securities, which had declined during the four pre vious years, increased by $6.3 billion or 11 percent. Bank purchases of Treasury securities were largely confined to the short end of the market— maturities of three years and under. Bank options were lim ited somewhat by the fact that Treasury financing was concentrated, in all but one instance, in relatively short maturities. While banks were concentrating new purchases in the short end of the market dur ing 1967, existing holdings of long and intermediate-term Treasuries were, of course, becoming a year shorter in maturity. The result was a general shortening in maturities and, combined with the increase in the holdings of Treasury securities, a considerable increase in bank li quidity (Chart 6). 12 FEDERAL DEPOSIT INSURANCE CORPORATION Banks raised their investments in State and local government securities by about $9 billion in 1967 to bring their holdings of such securities to approximately $50 billion— more than double their hold ings of 5 years earlier (Chart 7). Banks raised their holdings of other securities, principally Federal agency securities, by $3.7 billion, or al most 50 percent. A considerable share of this increase resulted from bank purchases of participation certificates. Bank earnings. Operating revenue in 1967 increased approximately in line with the rise in bank assets. Operating expenses, however, advanced more rapidly and, as a result, net operating earnings in creased less than proportionately to the increase in assets. Compari sons of 1967 to 1966, however, provide a somewhat deceptive picture of bank performance. They show only a 5.6 percent gain in net operat ing earnings, but a very substantial 16.3 percent gain in net income before taxes and a 17.0 percent increase in after-tax income. Actually, net operating earnings after taxes— the figure most used by commer cial banks to report their earnings for statement purposes— appear to have increased by more than 8.5 percent in 1967— somewhat less than the percentage increase in bank assets and operating revenue. The substantial expansion in bank holdings of tax-exempt securities COMMERCIAL BANK PERFORMANCE IN 1967 13 had the effect of restraining the before-tax return on bank earning as sets, although it probably raised the taxable-equivalent yield on earn ing assets. This also tended to depress the level and percentage gain in operating revenue and net current operating earnings. The shift to tax-exempt income has a much greater relative impact on net current operating earnings than on operating revenue. A reduction of one per cent in operating revenue, other things equal, would result in about a 4 percent reduction in net current operating earnings. Even if the advance in operating revenue is adjusted upward to re flect the effect of the substantial increase in tax-exempt securities, the 1967 increase in operating revenue would still be less than the increase in operating expenses. Salaries and employee benefits advanced by about 10.9 percent in 1967. The number of bank employees rose about 5.2 percent and the rise in salaries, wages and benefits was slightly more. The other major component of bank expenses— interest on time and savings deposits— increased 18 percent compared with a 15 percent advance in time and savings deposits. As a result, interest payments on time and savings deposits continued to account for a growing share of bank operating expenses. Larger banks tended to experience greater percentage increases in 14 FEDERAL DEPOSIT INSURANCE CORPORATION wages and salaries, but smaller relative increases in their interest cost on time and savings deposits. For the 50 largest commercial banks, the volume of time and savings deposits grew by 14.1 percent while interest costs on deposits increased by 13.8 percent. Larger banks were able to attract negotiable certificates of deposit at re duced rates in early 1967 and many were already at ceiling rates on savings certificates and other consumer-oriented time deposits in 1966. Many smaller banks, on the other hand, had been paying lower rates in 1966 and moved closer to the rates offered by larger banks which, in many instances, eliminated the competitive gap in 1967. In terest payments on the average outstanding volume of time and savings deposits were approximately 4.24 percent in 1967 compared with 4.02 percent in 1966. In 1967 few banks realized substantial gains or losses in security transactions and for all insured commercial banks gains and losses approximately offset each other. This was in sharp contrast with the 1966 experience when insured commercial banks took security losses of $450 million. This year-to-year difference accounts for a considera ble part of the large percentage gain in bank net profits between 1966 and 1967. If net security losses realized by commercial banks in 1966 were eliminated and 1966 tax liability were adjusted accord ingly, 1966 net income would be raised by about $200 million. Use of this adjusted figure would produce a year-to-year increase in net in come of about 9 percent in 1967. Changes in bank income and expenses in 1967 were similar to those that have been occurring since about 1960. Interest expense on time and savings deposits has advanced relative to the growth in bank assets. Portfolio shifts and higher interest rates in the most recent years have almost raised the ratio of operating revenues to bank assets sufficiently to offset increased expenses. Portfolio shifts have not been fully reflected in operating revenues, however, for. expanded invest ment in tax-exempt securities has been reflected in lower tax pay ments rather than higher operating revenues. If security gains and losses and their effect on tax liability are eliminated, the after-tax net income per dollar of bank assets shows considerable stability during this period. Net income of insured commercial banks in 1967 of $3,142 million represented a return on total capital accounts of about 9.6 per cent and a 10 percent return on total equity capital. Commercial banks paid dividends of $1,342 million in 1967, an advance of 8.2 percent over dividends paid in 1966. This represented a dividend pay-out ra tio of 42.7 per cent, slightly less than the pay-out ratio for banks during the past several years. COMMERCIAL BANK PERFORMANCE IN 1967 15 Retained earnings of insured commercial banks in 1967 amounted to $1.8 billion. Total capital accounts increased by $2.3 billion, about $300 million of which represented an increase in outstanding capital notes and debentures. Because the overall 7.3 percent increase in bank capital was less than the percentage gain in bank deposits, the ratio of bank capital to deposits declined slightly in 1967. After charge-offs of $601 million to loan loss reserves, commercial banks made net additions to such reserves of approximately $435 mil lion compared to $325 million in 1966. At the end of 1967 insured commercial banks had loan loss reserves of about $4.7 billion, ap proximately 2 percent of total loans and more than 14 percent of total capital accounts. On an after-tax basis, net additions to loan loss re serves were equivalent to between 6 and 7 percent of commercial bank net income in 1967. Number of banks. During 1967 the number of insured commercial banks and trust companies declined by 24 to 13,517. (Including mu tual savings banks the number of insured banks at the end of 1967 was 13,850.) As a result of a substantial increase in the number of bank branches, the number of offices of insured commercial banks increased by more than 1,000 and totaled 31,570 at the end of CHART 8 INSURED COMMERCI AL BANKS THOUSANDS THOUSANDS 1960 1961 1962 1963 1964 1965 1966 1967 16 FEDERAL DEPOSIT INSURANCE CORPORATION 1967. Ninety-four insured commercial banks began operations in 1967 and 21 noninsured commercial banks transferred to insured status. This was more than offset, however, by a reduction in the num ber of banks through mergers and bank closings, including four bank failures. Banking structure changes during 1967 were similar to those expe rienced during 1966— a small reduction in the number of banks and a substantial increase in the number of banking offices. The 134 com mercial banks absorbed by merger was close to the average number absorbed through merger during the past several years. Changes since 1960 in the number of banks and banking offices are summa rized in Chart 8. Summary. The favorable performance of commercial banks in 1967 was reflected in sizeable gains in their deposits, earning assets and net income. While expenses continued to rise relative to assets and operating revenue, the rise was somewhat less marked than in other recent years and was largely offset by an increase in operating reve nue. Aided by monetary policy and the behavior of the economy, banks were able to reverse the recent trend and to achieve a substan tial increase in liquidity in 1967. As a result, the banks were able to operate in a more comfortable environment in 1967 compared with 1966. OPERATIONS OF THE CORPORATION PART TWO 19 DISBURSEMENTS TO PROTECT DEPOSITORS Banks failing in 1967. Disbursements totaling $ 7 .8 million were made by the Corporation to protect depositors in four banks which failed during the year. Deposits in the four banks amounted to almost $11 million and were held by 4 ,7 2 9 depositors. Full recovery was re ceived by 4 ,6 4 5 depositors representing more than 9 8 percent of the total number. Table 1 gives names and locations of the four banks with dates of closing and dates of first payments to the depositors. The four were placed in receivership with the Corporation serving as receiver in each case. Following the pattern of failures in recent years, the four banks failed largely as a result of managerial weaknesses and illegal prac tices rather than as a result of an unfavorable economic environment. Illegal practices included fraudulent use of unissued stock certifi cates, fictitious loans and self-serving financial operations by leading officers of the banks. Table 1. INSURED BANKS CLOSED DURING 1967 REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION' Deposit pay-off case number Name and location Date of closing .......................... Number of de positors Amount of deposits (in thou sands) Date of first payment to depositors Depositors Deposits receiving paid full re (in thou covery sands) 2 4,729 $10,878 4,645 $10,075 280 Bank of Pine Apple, Pine Apple, Alabama January 31,1967 1,265 3,885 February 6, 1967 1,229 3,558 281 Southern Bank of St. Petersburg, St. Petersburg, Florida February 17, 1967 1,277 2,451 February 21, 1967 1,273 2,396 282 Sacul State Bank, Sacul, Texas June 23, 1967 617 724 June 30, 1967 611 665 283 The Cedar Vale National Bank, Cedar Vale, Kansas July 7, 1967 1,570 3,818 July 13, 1967 1,532 3,456 T o ta l1 1 Figures adjusted to and as of December 31, 1967. 2 Includes $7,864 thousand paid by FDIC claim agents. Banks failing, 1934-1967. Since the beginning of Federal deposit insurance the Corporation has made disbursements to protect deposi tors in 4 7 0 banks experiencing financial difficulty. These banks had slightly over 1.6 million deposit accounts and total deposits of $ 8 1 6 million. Data on the extent and method of protection are shown in Table 2. Corporation disbursements and losses, 1934-1967. When the Corporation makes disbursements to aid depositors of failing banks, it acquires assets, which it liquidates, or the claims of depositors 20 FEDERAL DEPOSIT INSURANCE CORPORATION whose insured deposits are paid. When an insured bank is closed and placed in receivership, the Corporation shares equally with other cred itors in the proceeds from the liquidation. At the end of 1967, there were 36 failed bank cases containing assets to be liquidated. These active cases account for most of the accounts and deposits indicated as not yet paid in Table 2. In its insurance operations through 1967, the Corporation dis bursed $430 million. Recoveries, actual and anticipated, through the end of 1967 totaled $377 million, leaving an estimated $53 million loss, excluding $9 million of interest and allowable return which was recovered on the Corporation's advances. Details of Corporation dis bursements, recoveries and losses are shown in Table 3. Deposit insurance participation and coverage. National banks and State banks that are members of the Federal Reserve System are au tomatically covered by Federal deposit insurance. State banks that are not members of the Federal Reserve System become insured upon apTable 2. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1967 A ll c a s e s (470 b a n k s ) D e p o s it p a y o f f cases (280 b a n k s ) D e p o s it a s s u m p t io n c a s e s (190 b a n k s ) I te m Num ber or P e rc e n t am ount N um ber of depositors or accoun ts— t o t a l1. Full recovery received or a v a ila b le ........ From From From From FDIC2................................................. offset4................................................. security or preference5................... asset liquidation6............................. Full rec o v ery not received as of D ecem ber 31, 1967......................................... 1,632,606 1,627,973 1,582,337 39,824 2,957 2,854 100.0% 99.7 96.9 2.4 .2 .2 4,633 3,298 1,335 Am ount of deposits (in thousands)— to tal $816,245 Paid or made a v a ila b le .................................. 790,189 734,147 12,661 26,316 17,065 96.8 89.9 26,055 1,858 24,197 3.2 FDIC2..................................................... offset9.................................................... security or preference10...................... asset liquidation11................................ Not paid as of Decem ber 31, 1967.......... Terminated cases....................................... Active cases12............................................. P e rc e n t .3 .2 .1 100.0% 1.6 3.2 2.1 .2 3.0 502,007 497,374 451,73831 39,824 2,957 2,854 4,633 3,298 1,335 $245,997 N um ber or P e rc e n t am ount am ount Terminated cases........................................ Active cases7.............................................. By By By By N um ber or 100.0% 99.1 90.0 7.9 1.130.599 1.130.599 1.130.599 100.0% $570,248 100.0%, 100.0 100.0 .6 .6 .9 .6 .3 100.0% 219,941 163,8998 12,661 26.316 17,065 89.4 26,055 1,858 24,197 10.6 66.6 570.248 570.248 100.0 100.0 5.2 10.7 6.9 .8 9.8 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 $212,888 thousand, in deposit assumption cases. 3 Includes 58,483 depositors in terminated cases who failed to claim their insured deposits (see note 8). 4 Includes only depositors with claims offset in fu ll; 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 8,098 of these depositors. 8 Includes $209 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 the Corporation. 11 Includes unclaimed deposits paid to authorized public custodians. 12 Includes $10,250 thousand representing deposits available but unclaimed, expected through offset, or expected from proceeds of liquidations; and $168 thousand representing up to the $10,000 prevailing insurance maximum of each of certain certificates of deposit whose insured status is in litigation. DISBURSEMENTS TO PROTECT DEPOSITORS 21 Table 3. ANALYSIS OF DISBURSEMENTS, RECOVERIES AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS, JANUARY 1, 1934 - DECEMBER 31, 1967 (In thousands) Type of disbursement Disbursements Recoveries1 Losses $430,087 $377,174 $52,913 376,841 327,012 49,829 212,887 187,237 6,346 19,304 163,147 807 121,794 11,635 30,525 Advances and expenses in deposit assum ption and payoff ca s e s—to tal......................................................... 51,130 47,725 3,405 Expenses in liquidating assets in 190 deposit assumption cases: Advances to protect assets.................................................................. Liquidation expenses........................................................................... Insurance expenses.............................................................................. Field payoff and other insurance expenses in 280 deposit payoff cases 32,893 14,832 399 3,006 32,893 14,832 (2) (2) 399 3,006 Other disbu rsem ents—to tal............................................... 2,116 2,437 (321) 1,772 2,422 15 (2) (665) All disbu rsem ents—to ta l........................................................ Principal disbursem ents in deposit assum ption and payoff ca se s—to tal......................................................... Loans and assets purchased (190 deposit assumption cases): To December 31, 1967......................................................................... Estimated additional............................................................................ Deposits paid (280 deposit payoff cases): To December 31, 1967......................................................................... Estimated additional............................................................................ Assets purchased to facilitate termination of liquidations: To December 31, 1967......................................................................... Estimated additional ............................................ Unallocated insurance expenses............................................................ 344 344 1 Excludes amounts returned to closed bank equity holders and $9.3 million of interest and allowable return received by F.D.I.C. 2 Not recoverable. plication to and approval by the Corporation’s Board of Directors. The numbers of banks and branches in the United States, classified by in surance status, are shown in Table 101. The number of banks not participating in Federal deposit insurance continued to decline in 1967, and totaled 394 at the end of the year. One hundred and seventy of these were mutual savings banks, virtually all of which were in Massachusetts and insured by their own State’s insurance system. Commercial banks and mutual savings banks grouped according to insured status and class, and by States, are shown in Table 103. The amount of insurance afforded each depositor in an insured bank is limited by statute. Initially, this limitation was $2,500; in mid-1934 it was raised to $5,000, in 1950 to $10,000, and on Octo ber 16, 1966, to the present maximum of $15,000. Within an insured bank, a depositor is currently protected up to $15,000 on the aggre gate of all deposits maintained in the same right and capacity. The number of accounts fully protected within the insurance limitation has always been high. On June 30, 1966, the date of the latest full-scale survey of deposits undertaken by the Corporation, 97 per cent of the 193 million accounts in insured banks were fully pro tected under the applicable $10,000 maximum. The subsequent in crease to the $15,000 maximum is estimated to have raised the pro portion of accounts fully protected to nearly 99 percent of all accounts. The roughly one percent of all accounts that exceed the insurance 22 FEDERAL DEPOSIT INSURANCE CORPORATION limitation typically do so by a substantial amount. Consequently, the proportion of total deposits that is insured has always been sub stantially less than the proportion of accounts fully protected. The June 30, 1966 survey showed that 54 percent of the dollar amount of de posits in insured banks was within the $10,000 limitation. As of De cember 30, 1967, insurance coverage within the $15,000 limitation is estimated to have increased to about 58.2 percent of the $448.7 billion in total deposits in all insured banks on that date. SUPERVISORY ACTIVITIES It has been generally accepted that the activities of banks uniquely affect the public interest, and, therefore, are properly subject to gov ernmental supervision. At present, the majority of banks in the United States are chartered and supervised by the banking agencies of the individual States. Under the existing system of Federal supervision, national banks are chartered and supervised by the Comptroller of the Currency. Insured State banks that are members of the Federal Re serve System are supervised by the Federal Reserve authorities in ad dition to the States. The authority and responsibilities of the FDIC that are related to deposit insurance extend to all insured banks. To avoid duplication of effort among the Federal supervisory agencies the principal examination activities of the Corporation apply to insured State banks that are not members of the Federal Reserve System. These banks are examined regularly by the Corporation, and must make various reports and comply with rules and regulations of the Corporation. Various activities by the banks, such as the establish ment of branches or changing their location, or acquiring other banks through merger, require the Corporation’s approval. Applications for deposit insurance. With respect to applications of banks which will be covered by Federal deposit insurance, the ap propriate Federal agency is required by statute to consider several factors: (1) the financial history and condition of the bank, (2) the ad equacy of its capital structure, (3) its future earnings prospects, (4) the general character of its management, (5) the convenience and needs of the community to be served by the bank, and (6) the consist ency of its corporate powers with the purposes of the Act. Banks char tered by the States and not members of the Federal Reserve System must apply to and be approved by the Corporation to obtain deposit insurance. Banks beginning operations either as national banks or State member banks become insured upon certification by the ap propriate agency that the above six factors have been given consideration. During 1967, the Corporation approved 95 banks for admission to deposit insurance, 76 of which were new banks and 19 of which were SUPERVISORY ACTIVITIES 23 existing banks. Of the new banks acquiring insured status, eight were in Illinois, six in Louisiana, and five each in New Jersey and Virginia. The remainder were divided among 27 States. Applications for branches. The six factors enumerated above must also be considered before applications for new branches are approved by Federal supervisory agencies. Most of the increase in banking of fices in 1967 and in recent years has resulted from the establishment of new branches. The extent of branching, however, as well as its geo graphical pattern, is influenced by differing State laws and regula tions. Applications for 380 new branches were approved by the Corporation in 1967, about 4 percent fewer than the number ap proved in 1966. A total of 35 new branches were established in con nection with mergers approved by the Corporation, while 21 branches of absorbed banks were continued in operation under these reorgani zations. Mergers. The responsibilities of the Federal supervisory agencies were broadened by the Bank Merger Act of 1960 requiring the con sent of one of the Federal supervisory agencies before an insured bank may engage in a merger. Banks must obtain the Corporation’s approval for any merger, consolidation, acquisition of assets or as sumption of liabilities in which the resulting bank is a nonmember in sured bank, outside the District of Columbia, or for a merger involving any insured bank and a noninsured institution. An amendment to the Act in 1966 sought to establish a uniform set of standards to be taken into account by the bank supervisory authorities, Department of Justice and the courts with respect to their actions on mergers. Before approving an application the supervisory agencies are required to consider several specific factors, including the effect of the transaction on competition, financial and managerial resources, future prospects of the existing and proposed institutions, and the convenience and needs of the community to be served. A merger which has anti-competitive effects may be approved if this fac tor is clearly outweighed from the standpoint of the public interest by the probable effect with respect to the convenience and needs of the community. Activities of the supervisory agencies in recent years reflect their increased responsibilities under the 1960 legislation. In the eight year period, mergers approved by the Corporation have involved 522 banks. Two hundred and seventy-five of these were absorbed banks, with assets of approximately $4.4 billion. One hundred fifty-seven of these absorbed banks were nonmember insured banks, 96 were mem ber banks, and 22 were noninsured institutions. The volume of bank merger activity continued to be large in 1967, 24 FEDERAL DEPOSIT INSURANCE CORPORATION as indicated in Table 4 showing the approvals of the three Federal agencies during the year. A total of 238 banks were involved, includ ing 116 absorbing banks and 122 absorbed banks. The absorbed banks had combined resources of over $2.8 billion, and operated 260 offices prior to the merger transactions. Other applications. The Corporation’s approval is required before nonmember insured banks may undertake certain other activities, including any change in the location of the main office or branch, retirement or adjustment of capital, or changes in a bank’s corporate powers. Bank examinations. In general the examination process affords the Table 4. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c) OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1967 Offices operated2 Banks Number of banks1 Resources (in thousands)2 Prior to transaction After transaction 2383 116 1223 55 12 53 2 $24,084,092 21,194,715 2,889,377 1,501,325 460,252 915,865 11,935 2,048 1,788 260 116 32 109 3 2,041 2,041 138 67 71 37 7 27 $15,076,590 12,739,195 2,337,395 1,359,494 406,200 571,701 1,212 1,040 172 84 24 64 1,210 1,210 26 13 13 7 2 4 $ 5,130,400 4,991,100 139,300 52.800 18,700 67.800 364 336 28 13 2 13 363 363 74 36 383 11 3 22 23 $ 3,877,102 3,464,420 412,6825 89,031 35,352 276,364 11,935 472 412 605 19 6 32 3 468 468 ALL CASES Banks in vo lve d ............................................. Absorbing banks......................................................... Absorbed banks.......................................................... National.................................................................... State banks members FRS................................... Not members FRS.................................................. Noninsured in stitu tio n s .................................................. CASES WITH RESULTING BANK A NATIONAL BANK Banks in vo lve d ............................................. Absorbing banks......................................................... Absorbed banks.................... .......................... National.................................................................... State banks members FRS................................... Not members FRS.................................................. Noninsured institutions......................................... CASES WITH RESULTING BANK A STATE BANK MEMBER OF THE FEDERAL RESERVE SYSTEM Banks in vo lve d ............................................. Absorbing banks......................................................... Absorbed banks.......................................................... National.................................................................... State banks members FRS................................... Not members FRS.................................................. Noninsured institutions.......................................... CASES WITH RESULTING BANK NOT A MEMBER OF THE FEDERAL RESERVE SYSTEM4 Banks in vo lve d ............................................. Absorbing banks......................................................... Absorbed banks.......................................................... National.................................................................... State banks members FRS ........................ Not members FRS.................................................. Noninsured institutions......................................... 1 The number of absorbing banks is smaller than the number of cases, because a few banks participated 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 latest transaction. 3 Includes two savings and loan associations. 4 Includes one case approved by the Corporation of anabsorption of a noninsured institution by a member bank. 5 In one case a branch of a national bank was absorbed,and in another a branch of a State member bank was absorbed; resources and offices of branches are included in this table. SUPERVISORY ACTIVITIES 25 principal means of contaet between the Corporation and the banks un der its supervisory authority. Under the Federal Deposit Insurance Act, the Corporation may examine any insured bank for insurance purposes; however, in the case of national banks and State member banks, a review of the examination reports of the other Federal agen cies has been satisfactory for the Corporation’s needs. It is the Corporation's policy to examine banks at least annually— and more often if necessary— in order to be regularly informed of each bank's financial condition, and to be alerted to any conditions which may require correction. In over one-half of the States, the Corporation's examinations are usually conducted jointly or concurrently with the State authorities, a practice which helps to minimize the burden of examination activity and furthers the coordi nation of supervisory activities among the various agencies. Banks examined by the Corporation and the State authorities com prise slightly over one-half of all banks in the country, but since most of these banks fall into the small-to-medium size category they ac count for only about one-fourth of bank assets. Approximately onethird of the banks are examined by the Comptroller of the Currency, about nine percent by the Federal Reserve Banks and the States, and the remaining three percent by the State authorities. Table 104 pro vides data on the number and size distribution of banks by supervisory status. During 1967 the Corporation examined 7,148 banks including 129 re-examinations. The number of examinations and investigations con ducted by the Corporation in 1966 and 1967 are listed in Table 5. Realignment of FDIC districts. During 1967 the Corporation made several changes in the distribution of States among FDIC Districts, at Tables. BANK EXAMINATION ACTIVITIES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1966 AND 1967 Number Activity 1967 1966 Field exam inations and investigations—to tal ................................................ 13,577 13,663 Exam inations of main offices—total....................................................... 7,148 6,980 6,962 129 44 13 6,815 144 21 Regular examinations of insured banks not members of Federal Reserve System ... Re-examinations; or other than regular examinations................................................... Entrance examinations of operating noninsured banks.................................................. Special examinations .................................................................................................... Exam inations of departm ents and b ra n ch e s...................................... 4,662 4,832 Examinations of trust departments................................................................................... Examinations of branches................................................................................. ................. 1,092 3,570 1,114 3,718 In vestig atio ns.................................................................................................. 1,767 1,851 New bank investigations..................................................................................................... S ta te b a n k s m e m b e rs o f Fe d e ra l R e s e rv e S y s t e m .......................... B a n k s n o t m e m b e r s of F e d e r a l R e s e rv e S y s t e m ............................. New branch investigations.................................................................................................. Mergers and consolidations................................................................................................ Miscellaneous investigations............................................................................................ .. 165 169 14 151 14 155 412 146 1,044 462 160 1,060 26 FEDERAL DEPOSIT INSURANCE CORPORATION the same time increasing the number of Districts from 12 to 14. The restructuring of Districts, based upon an extensive study by the Divi sion of Examination, was designed to achieve a more balanced work load among the Corporation’s field offices and to contribute to the efficiency of its various field operations. The newly created Districts were: Philadelphia, comprising the States of Pennsylvania and Delaware; and Memphis, consisting of Tennessee, Mississippi, Arkansas, and Louisiana. Other changes were the transfer of Arizona to the San Francisco District office, Colorado and Oklahoma to Dallas, Wyoming to Minneapolis, Kansas to St. Louis, Iowa to Kansas City, Indiana to Chicago, and West Virginia and Kentucky to Columbus. The new alignment of States within Districts, shown on page vi, became fully operational on July 1, 1967. Citations contem plating term ination of insurance. If an examiner’s report discloses that an insured bank is engaging in a violation of banking regulations or laws, or other unsound practices, correction is first sought through the usual supervisory action. An Act effective on October 16, 1966, authorizes the Corporation, when corrective action is not obtainable by the State supervisory authority, to issue cease and desist orders directed to specific violations or practices. The Cor poration may suspend or remove personnel in situations where per sonal dishonesty is involved. When unsound practices or violations of law or regulations persist, the Corporation is authorized under Section 8(a) of the Federal De posit Insurance Act to commence proceedings which may result in termination of the deposit insurance of the bank. The offending bank is given formal notification and a time limitation is specified for the corrective action, with due notification given also to the State supervi sory authority. If this step fails to bring compliance, the bank is given an opportunity to present its case at an administrative hearing before Table 6. ACTIONS TO TERMINATE INSURED STATUS OF BANKS CHARGED WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIONS OF LAW OR REGULATIONS, 1936-1967 Disposition or status Started during 1967 Total banks against which action w as taken. C a se s c lo se d ...................................................................................................... Corrections made.................................................................................................................... Banks absorbed or succeeded by other banks.................................................................. W it h fi n a n c i a l a i d of th e C o r p o r a t i o n ........................................................ W it h o u t fi n a n c i a l a i d of th e C o r p o r a t i o n ................................................... Banks suspended prior to setting date of termination of insured status by Corporation. I nsured status terminated, or date for such termination set by Corporation, for failure to make corrections........................................................................................................ B a n k s s u s p e n d e d p r io r to or on d a t e of t e r m i n a t i o n o f i n s u r e d s t a t u s ............................................................................................... B a n k s c o n ti n u e d in o p e r a t io n 2 ........................................................................ 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. SUPERVISORY ACTIVITIES 27 insurance may be terminated. In the event of termination of insur ance, each depositor continues to be insured for two years with res pect to insured funds on deposit at the time of termination. Table 6 shows that action was taken against 195 banks between 1936 and 1967, and that all cases were closed at the end of 1967. In most cases the required corrections were made, or the cases were closed because the bank suspended operations or was absorbed by another bank. There were no cases begun during 1967. Two cases which were open at the end of 1966 were closed when corrections were effected. Regulation of bank securities. In 1964, Public Law 88-467 ex tended the provisions of the Securities Exchange Act of 1934 to cover securities traded in the over-the-counter market. Responsibility for ad ministering the Act with respect to insured banks was given to the Federal bank regulatory agencies. Originally applicable to those corpo rations having 750 or more shareholders and over $1 million in as sets, the minimum shareholder requirement was reduced to 500, ef fective July 1, 1966. As a result of the lower shareholder requirement, the Corporation, during 1967, received registration statements from 89 insured State nonmember banks to bring the year-end total to 169. The latter figure reflects the withdrawal from registration of two banks through merger. In addition to the registration statements filed by banks, the Corpo ration also receives periodic and current reports required by the Se curities Exchange Act, and in addition, regulates proxy solicitation for annual and special meetings of shareholders of the banks. Another section of the Act requires the filing of beneficial ownership reports by every director, officer and large shareholder of a registered bank. As of the end of the year, 4,200 such reports had been received. Changes in bank ownership and loans secured by bank stock. Pub lic Law 88-593 requires a report to the appropriate Federal banking agency whenever a change occurs in the outstanding voting stock of any insured bank which would result in a change in control of the bank. When such a change does occur, the bank involved must report promptly any changes or replacement of its chief executive officer or any director occurring in the next twelve-month period. A supplemen tary provision requires a report whenever an insured bank makes a loan secured by 25 percent or more of the outstanding voting stock of an insured bank. During 1967 there were over 270 changes in control involving in sured nonmember banks reported to the Corporation. In those few cases where new ownership was not already known or could not be checked readily, an immediate investigation was made, and the bank involved was accorded special supervisory attention until the effect of 28 FEDERAL DEPOSIT INSURANCE CORPORATION the change was determined and the sound operation of the bank as sured. Other reports from banks. The Corporation obtains statistical and other information from banks through regular calls for reports of con dition and through special data requests. Every insured bank reports its financial condition four times each year to one of the Federal su pervisory agencies; nonmember insured banks report directly to the Corporation. Income and dividend statements are obtained from banks once each year. In 1947 the Corporation was given responsi bility for collection and publication of all-bank statistics under an agreement arranged by the Bureau of the Budget with the Federal banking agencies. Statistics covering assets and liabilities of all banks and income and dividend statements of insured banks are included in Part IV of this report. In connection with its collection and tabulation of data from the June 30, 1967 Report of Condition, the Corporation initiated a policy of providing individual banks with data comparing their asset distribu tion with that of other banks within their State. Work was initiated in 1967 to enable the Corporation to distribute comparative banking sta tistics to all insured commercial banks based on the December, 1967 Report of Condition and the 1967 Income and Dividend Report. Indi vidual bank figures were contrasted with comparable figures for all banks in the same State and in the same local area where branching regulations make the latter data meaningful. During 1967 the Corporation conducted three surveys of time and savings deposits of insured nonmember banks. These surveys were designed to obtain information on savings flows and on interest rates offered on various savings instruments by individual institutions. The Corporation made available early in 1967, in a series of 15 booklets, the results of its June, 1966 Survey of Deposits. These sur veys are conducted every two years to inform the Corporation of the extent of insurance coverage and its insurance liability under the Fed eral Deposit Insurance Act. The surveys also provide detailed informa tion on the structure of bank deposits. The 1966 survey obtained, for the first time, data for noninsured banks and for individual offices of all banks. The data were classified by geographic area, size of bank, and type of account, providing a kind and degree of detail not pre viously available. Conferences with supervisors of State banks. Conferences with State bank supervisory officials were held in April and October of 1967, continuing a series of such meetings initiated in 1964 to pro vide State banking department and Corporation officials an oppor tunity to review banking and bank supervisory developments. The April meeting was attended by the supervisors and staff aides of 13 States in the Corporation’s Districts of Boston, Richmond and Chicago. In at SUPERVISORY ACTIVITIES 29 tendance at the October meeting were state banking department officials of 14 of the 15 States in the Districts of Columbus, Memphis, New York, Philadelphia and St. Louis. FEDERAL LEGISLATION Regulation of interest rates. The most significant Federal banking legislation enacted in 1967 was Public Law 90-87, approved Septem ber 21, 1967 (81 Stat. 226), which extended for one year the tempo rary legislation (80 Stat. 823) enacted in 1966 to authorize more flexi ble regulation by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation of maximum rates of interest payable by insured banks on deposits and to give to the Federal Home Loan Bank Board authority for the first time to reg ulate rates payable by insured savings and loan associations. The legislation which was extended also authorizes the Board of Governors of the Federal Reserve System to increase reserve requirements on time and savings deposits to a maximum of 10 percent and authorizes Federal Reserve open-market operations in obligations of agencies of the United States Government. This legislation originally was enacted on September 21, 1966 and was to expire at the end of one year com mencing on that date. Loans to executive officers. Section 22(g) of the Federal Reserve Act was amended by Public Law 90-44, approved July 3, 1967 (81 Stat. 109), to liberalize the restrictions on loans by member banks to their executive officers. Under this amendment, a member bank may now make (1) a loan not exceeding $30,000 to any executive officer if it is secured by a first lien on the officer’s home; (2) extensions of credit to any executive officer not exceeding the aggregate amount of $10,000 to finance the education of the officer's children, and (3) other extensions of credit to any executive officer not exceeding the aggregate amount of $5,000. The terms of any such loan cannot be more favorable than those afforded to other borrowers and the officer receiving the loan is required to submit a detailed current financial statement. Bank participation in gam bling activities. Public Law 90-203, to prohibit insured banks and savings and loan associations from foster ing or participating in certain gambling activities, was approved by the President on December 15, 1967, to take effect on April 1, 1968 (81 Stat. 608). This legislation prohibits insured banks and savings and loan associations from selling or otherwise dealing in lottery tick ets, from advertising lotteries, and from advertising or publicizing the existence or identity of any participant or winner in a lottery. How ever, it does not prohibit such institutions from accepting deposits, cashing checks, or performing other lawful banking services for a 30 FEDERAL DEPOSIT INSURANCE CORPORATION State operating a lottery or an officer or employee of that State who is charged with the administration of the lottery. Administrative enforce ment of this law is the responsibility of the Federal agency having primary supervisory authority with respect to the financial institution involved. Criminal penalties also are prescribed. Purchase of small business investment company stock. Among nu merous amendments to the Small Business Investment Company Act of 1958 contained in Public Law 90-104, approved October 11, 1967 (81 Stat. 268), was an amendment to section 302(b) of that Act (15 U.S.C. 682(b)) relating to the purchase of stock of small business in vestment companies by banks. Under section 302(b), the stock of such companies had been eligible for purchase by national banks, and by insured State banks to the extent permitted by State law, except that a bank was not permitted to hold the stock in an amount aggre gating more than two percent of the bank’s capital and surplus. The amendment increased the amount of stock of small business invest ment companies which may be held by a bank to five percent of the bank’s capital and surplus, but prescribed a new limitation under which a bank may not acquire such stock if, after making the acquisi tion, it will hold fifty percent or more of any class of equity securities of the company having actual or potential voting rights. Anti-trust exemptions. On August 9, 1967, the President approved Public Law 90-62 (81 Stat. 165) which extended until June 30, 1969, the temporary legislation enacted in 1965 (79 Stat. 674) to provide standby authority to exempt from the anti-trust laws voluntary agree ments and programs formulated by banks and other lending institutions to curtail the flow of funds to foreign countries in order to improve the balance-of-payments position of the United States. RULES AND REGULATIONS OF THE CORPORATION Deposit insurance coverage. The Corporation issued new regula tions, effective September 1, 1967, to define and clarify the insurance coverage afforded deposits in insured banks. The basic purpose of these regulations is to carry out the intent of Congress in providing limited insurance coverage for each depositor, with a maximum now of $15,000. The regulations (which are included in revised Part 330 of the Corporation’s regulations) interpret the Federal Deposit Insurance Act to limit various devices which had been used to increase the in surance coverage beyond that meant to be provided by law. In defining the term “ insured deposit” , section 3(m) of the Federal Deposit Insurance Act speaks of deposits “ maintained in the same ca pacity and the same right.” An amendment to this section enacted on October 16, 1966, authorized the Corporation to issue regulations to clarify and define the extent of the insurance coverage, and the new RULES AND REGULATIONS OF THE CORPORATION 31 regulations were issued pursuant to that authority. Similar regulations applicable to shareholders in institutions insured by the Federal Sav ings and Loan Insurance Corporation were adopted concurrently by the Federal Home Loan Bank Board. In general, the regulations of both agencies provide for parallel treatment of insurance on various types of accounts. Specifically, the regulations set forth certain general principles re garding record-keeping requirements and the valuation of trust inter ests which provide a basis for determining the amount of insurance available to deposits held by depositors in the same or in different rights or capacities. As to each right or capacity, the regulations state the various ownership interests and the amount of insurance applica ble thereto. Single ownership accounts, including those held by an in dividual or someone acting for him, testamentary accounts, accounts owned and held by executors or administrators, corporations, partner ships and unincorporated associations, public unit accounts, jointly owned accounts and trust accounts are defined and the amount of in surance coverage available to each such category of ownership is specified. Advertisement of membership. Part 328 of the Corporation’s regu lations relating to advertising by insured banks was amended effective August 1, 1967, to include the new official sign and to restate the re quirements with regard to its display and the use of the official advertising statement. A new official sign was adopted by the Corpora tion for use by insured banks in view of the increase in deposit insur ance coverage from $10,000 to $15,000 for each depositor. As was formerly the case, the official sign must be displayed at each station or window where deposits are received. The use of a substitute sign, in lieu of the official sign, is not permitted. The mandatory requirements with regard to the official advertising statement— “ Member of the Federal Deposit Insurance Corporation" — were relaxed to permit, at an insured bank’s option, the use of the short title, “ Member FDIC,” or a reproduction of the official sign. Pro motional items which are of the type or character making it impracti cal to include the official statement are included in advertisements which are exempted from the requirements as to the official advertis ing statement. Published and unpublished records and inform ation. For the purpose of complying with section 3 of the Administrative Procedure Act, as amended by the so-called “ Freedom of Information Act," which became effective July 4, 1967, the Corporation, effective on that date, revised Part 309 of its regulations, which contains provi sions relating to the availability of Corporation records and informa tion to the public. In the same connection, sections 301.1, 303.10, 32 FEDERAL DEPOSIT INSURANCE CORPORATION 305.1, 307.3, and 334.4 of the Corporation's regulations were amended in minor respects and the Corporation published a revised “ Description of Central and Field Organization" in the Federal Regis ter on July 4, 1967. Rules of practice and procedures. Effective August 1, 1967, Part 308 of the Corporation’s regulations was revised in the light of amendments to section 8 of the Federal Deposit Insurance Act con tained in the Financial Institutions Supervisory Act of 1966. Subpart A of the revised Part 308 prescribes rules of practice and procedure applicable to all hearings held pursuant to the provisions of section 8 pertaining to (1) involuntary termination of the insured status of any bank, (2) the issuance of cease-and-desist orders against any insured State nonmember bank, and (3) the issuance of orders removing or suspending from office or prohibiting from further participation in the conduct of the bank’s affairs, any director or officer of an insured State nonmember bank or any other person participating in the con duct of the affairs of such a bank. Subparts B, C, and D prescribe rules and procedures applicable to each of the three classes of pro ceedings. Securities of insured State nonmember banks. Part 335 of the Cor poration's regulations, which relates to securities of insured State nonmember banks that are subject to the registration requirements of section 12(b) or 12(g) of the Securities Exchange Act of 1934, was amended effective December 31, 1967. The amendments were de signed (a) to clarify the meaning of the term “ beneficial ownership” as it relates to the reporting of ownership of bank stock held by family members or relatives who reside in the homes of directors, officers and principal stockholders and (b) to provide for the inclusion of mi nority stockholder proposals in banks’ proxy-soliciting material, sub ject to proper safeguards. Payment of deposits and interest. As set forth in greater detail in the Corporation’s Annual Report for 1966, Parts 327 and 329 of the Corporation's regulations were amended effective January 1, 1967, to sharpen the technical distinctions between time deposits and savings deposits. Part 329 also was amended effective July 1, 1967, to re duce the maximum rate of interest or dividends which insured non member mutual savings banks in the State of Alaska may pay on de posits from 5 1 4 to 5 percent per annum. This placed the Alaska banks on the same basis generally as similar banks in other States which had been subject to a 5 percent maximum rate since October 1, 1966. An existing “ grandfather clause” permitting the Alaska banks to pay a higher rate on certain funds received prior to September 22, 1966, remained in effect. Employee responsibilities and conduct. Effective October 7, 1967, the Corporation amended Part 336 in numerous respects. Part 336, RULES AND REGULATIONS OF THE CORPORATION 33 which was adopted in April, 1966, pursuant to Executive Order 11222, prescribes standards of conduct and responsibilities for Corporation employees. It also contains requirements concerning the reporting of employment and financial interests, and the principal amendments were designed to restrict these requirements so as to make them ap plicable only to employees in positions where the possibility of conflict-of-interest involvement is clear. Other amendments. Primarily for editorial reasons and to reflect re cent statutory changes, there were a number of minor amendments made to Parts 303, 304, and 307 and sections 306.2, 325.0, 327.3(c), and 331.1(d) of the Corporation’s regulations effective July 19, 1967. ADM INISTRATIO N 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, with the advice and consent of the Senate. Of the two directly appointed members, one serves as Chairman of the Board. The Comptroller of the Currency serves ex-officio as the third member of the Board. Mr. William W. Sherrill, Director of the Corporation since March 4, 1966, resigned on April 30, 1967 to accept appointment as a member of the Board of Governors of the Federal Reserve System. Mr. K. A. Randall, appointed as a Director on March 10, 1964, and elected Chairman of the Board on April 25, 1965, continues in that position. Mr. William B. Camp, whose appointment as Comptroller of the Cur rency was confirmed by the Senate on February 1, 1967, continues as the ex-officio member. The organization of the Corporation and officials, Supervising Exam iners and District offices are shown on pages iv, v and vi. Employment of the Corporation on December 31, 1967 was 340 higher than a year earlier, with the increase consisting of 300 perma nent and 40 nonpermanent employees. Additions to the examiner force accounted for most of this increase, while other significant in creases occurred in the Division of Liquidation and the Division of Re search. An expanded work load contributed to the need for additional per sonnel. The number of employees located in the Washington office and field offices, classified by division, are shown in Table 7. Of the Corporation’s total employment, about 72 percent are Exam ination Division personnel, of whom over 92 percent are assigned to the field offices. From an average employment of 964 field examiners in 1967, 153 left the Corporation during the year, including 34 who left to enter military service. This gave rise to a turnover rate for field 34 FEDERAL DEPOSIT INSURANCE CORPORATION examiners of 15.9 percent, compared with 16.7 percent in 1966. The turnover rate for all permanent employees of the Corporation was 21.3 percent in 1967 compared with 20.8 percent during the previous year. Table 7. NUMBER OF OFFICERS AND EMPLOYEES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1966 AND 1967 Washington Office Total District and other field offices Unit 1967 1966 1967 1966 1967 1966 T o ta l................................................................... 1,869* 1,52s1 550 426 1,319 1,103 Directors...................................................................... Executive Offices......................................................... Legal Division.............................................................. Division cf Examination............................................. Division of Liquidation.............................................. Division of Research.................................................. Office of Controller..................................................... 2 49 38 1,341 143 132 164 3 44 41 1,111 112 89 129 2 49 38 105 70 132 154 3 44 41 66 64 89 119 0 0 0 1,236 73 0 10 0 0 0 1,045 48 0 10 1 Includes 108 non-permanent employees in 1967 serving on a short-term appointment or a when actually employed basis, and 68 in 1966. Employee benefits and programs. Corporation personnel are cov ered by the benefit plans generally available to Federal employees. Amendments to the Federal Employees Group Life Insurance Act in 1967 provided additional group life insurance to all personnel, and also additional optional coverage for eligible personnel. FINANCES OF THE CORPORATION Assets and liabilities. Assets and liabilities of the Corporation on December 31, 1967 are shown in Table 8. Total assets of the Corporation amounted to $3,692 million at the end of 1967. U.S. Government securities, valued at amortized cost and including accrued interest, accounted for over 99 percent of total assets. Most of the remaining assets were various claims and other assets acquired in insurance transactions, which were valued at slightly under $18 million after reserves for losses. Land and office building, less depreciation, were valued at about $8 million. Cash bal ances were slightly over $4 million. Total liabilities at the end of 1967 amounted to $206 million of which almost $202 million were assessment credits due insured banks. The difference between the total assets and total liabilities, $3,485 million on December 31, 1967, constituted the deposit insurance fund. This fund, consisting of the Corporation’s accumulated net in come,, is the basic cash reserve available to the Corporation for the protection of depositors. Additional resources are available to the Cor poration through its borrowing power. The Corporation is authorized 35 FINANCES OF THE CORPORATION by statute to borrow from the U.S. Treasury, and the Secretary of the Treasury is authorized and directed to lend up to $3 billion, on such terms as they agree upon, when in the judgment of the Corporation’s Board of Directors the funds are needed for insurance purposes. The Corporation has not had occasion to use this borrowing authority. Income and expenses in 1967. Income and expenses of the Corpo ration in 1967 are shown in Table 9. Total income for the year was Table 8. STATEMENT OF FINANCIAL CONDITION > FEDERAL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1967 ASSETS Cash . $ 4,158,907 U. S. Governm ent obligations: Securities at amortized cost (face value $3,639,437,000; cost $3,615,647,815). Accrued interest receivable...................................................................................... $3,624,822,460 36,618,947 3,661,441,407 A ssets acquired in receiversh ip and deposit assum ption tra n s actions: > Special assistance to insured banks.............................................................................. 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 ility ........................................................................................... Loans to insured banks.................................................................................................... Equity in assets acquired under purchase agreements.............................................. Assets purchased ou trig h t............................................................................................... $ 806,789 1,941,517 2,831,695 14,711 $ Less reserves for losses. 10,000,000 26,360,255 41,954,967 23,959,500 $ 17,995,467 M iscellaneous a s s e t s ................................................................... 357,787 Land and office building, less depreciation on building. 7,770,107 Furniture, fixtures and eq uip m en t......................................... 1 Total a s s e ts ............................................................... $3,691,723,676 LIABILITIES AND DEPOSIT INSURANCE FUND2 Accounts payable and accrued lia b ilitie s...................................... $ 1,729,947 Earn est money, escrow funds and collections held for others. 301,134 Accrued annual leave of e m p lo y e es................................................ 1,567,709 Due insured banks: Net assessment income credits available July 1, 1968 (See Table 10). Other assessment credits available im m ediately.................................... Net insured b alances of depositors in closed insured b ankssee related a s s e t ................................................................................ Total lia b ilitie s. Deposit in su ran ce fund, net incom e accum ulated sin ce incep tion 3 (S ee Table 9 ).............................................................................. Total liabilities and deposit insurance fund. $ 182,354,257 19,477,625 201,831,882 806,789 $ 206,237,461 $3,485,486,215 $3,691,723,676 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 Capital stock was retired by payments to the United States Treasury in 1947 and 1948. 3 The deposit insurance fund represents the accumulated net income of the Corporation and is available for insuring deposits and payment of expenses. The borrowing authority of $3 billion from the United States Treasury has never been used. NOTE: These statements do not include accountability for the assets and liabilities of the closed insured banks for which the Corporation acts as receiver or liquidating agent. FEDERAL DEPOSIT INSURANCE CORPORATION 36 Table 9. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE FUND, FEDERAL DEPOSIT INSURANCE CORPORATION YEAR ENDED DECEMBER 31, 1967 incom e: Deposit insurance assessments: Assessments earned in 1957.......................................................... Less net assessment income credits to insured banks........................................... Adjustments of assessments earned in prior years.......... $302,953,719 182,348,551 34,141 ........ 120,639,309 $ 142,302,102 Net income from U. S. Government securities........................................................ Other income................................................................................................................ Total in com e........ $ 120,605,168 8,240 $ 262,949,651 ... . Exp enses and losses: 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 1967................................................ Adjustments applicable to banks assisted in prior years...................................... $ 15,154,233 959,380 3,950,527 4,330,424 $ $ 2,035,000 2,571,000 4,606,000 415,329 Non-recoverable insurance expenses incurred to protect depositors— net ......... Total expenses and lo s s e s .................................. 24,404,564 $ 29,425,893 Net addition to the deposit insurance fund—1967.......................... $ 233,523,758 Deposit in suran ce fund, Janu ary 1, 1967............................................ $3,251,962,457 Deposit insurance fund, Decem ber 31, 1987, net income accum u lated since inception (See Table 8 and note 3 of Table 8). . . $3,435,485,215 $263 million, consisting of $121 million from net assessments on de posits of insured banks and $142 million from income on U.S. Government securities. Assessments earned amounted to almost $303 million in the year. As provided by statute, the assessments are levied at an annual rate of of one percent of assessable deposits. However, a portion of the difference between assessments and the Corporation’s administrative and operating expenses and insurance losses each year is returned to banks in the form of a credit against future assessments. This share was established at 60 percent under the Act of 1950, and raised to 66% percent in 1961. The total credit in 1967 amounted to about $182 million, and had the effect of reducing the net assessment rate to about one thirty-second of one percent of assessable deposits. The computation of net assessment income in 1967 is shown in Table 10. The Corporation’s administrative and operating expenses and provi sion for insurance losses totaled $29 million in 1967. The net addi tion to the insurance fund for the year was $234 million. FINANCES OF THE CORPORATION 37 Table 10. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT INCOME, FEDERAL DEPOSIT INSURANCE CORPORATION, YEAR ENDED DECEMBER 31, 1967 Determ ination of net asse ssm en t incom e: $302,953,719 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 1967............................................................................. Adjustments to provisions for banks assisted in prior years........................ Insurance expenses.................... Total deductions................................... $ 24,404,564 $ 2,035,000 2,576,000 4,611,000 ........ 415,329 ........ $ 29,430,893 $273,522,826 Net a sse ssm en t incom e for 1967 Distribution of net asse ssm en t incom e, D ecem ber 31, 1967: Net assessment income for 1967: 33V3% transferred to the deposit insurance fu n d .............................................. 662/3% credited to insured banks.......................................................................... $ 91,174,275 182,348,551 $273,522,826 Tot al . . . Percentage of total assessment becoming due in 1967 Allocation of net asse ssm en t income credit among insured banks, D ecem ber 31, 1967: Credit for 1967.............................................................................................................. Adjustments of credits for prior years...................................................................... T o ta l...................................... ...... $182,348,551 5,707 60.19023% .00189 $182,354,258 60.19212% Table 11. SOURCES AND APPLICATION OF FUNDS, FEDERAL DEPOSIT INSURANCE CORPORATION, YEAR ENDED DECEMBER 31, 1967 Funds provided 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........................................................ Total funds provided $120,639,309 139,609,938 298,083,390 2,516,418 13,703,534 $574,552,589 Funds applied to: Administrative, operating and insurance expenses, less miscellaneous credits Acquisition of assets in receivership and deposit assumption transactions___ Purchase of U. S. Government securities................................................................ Net changes in other assets and lia b ilitie s ......................................................... Total funds applied $ 24,676,449 8,135,926 541,271,115 469,099 $574,552,589 FEDERAL DEPOSIT INSURANCE CORPORATION 38 The Corporation's financial transactions during 1967 are summa rized in Table 11, showing the sources and application of funds. Over three-fourths of total funds available were provided through the turn over of the Corporation's portfolio of U.S. Government securities and interest received on the securities. Purchases of such securities repreTable 12. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS, SEPTEMBER 11, 1933, TO DECEMBER 31, 1967 ADJUSTED TO DECEMBER 31, 1967 (In millions) Expenses and losses Income Year Total Deposit insurance assess m ents1 Invest ments and other sources2 Total Deposit insurance losses and expenses Interest on capital stock3 Adminis trative and operating expenses $80.6 Net income added to deposit insurance fu n d 4 1933-67.. $3,897.0 $2,412.4 $1,484.6 $411.5 $52.8 $278.1 $3,485.5 1 9 6 7 .... 1 9 6 6 .... 1 9 6 5 .... 1 9 6 4 .... 262.9 241.0 214.6 197.1 120.6 93.0 142.3 129.3 112.4 104.1 29.4 25.0 24.4 18.9 5.0 5.2 6.7 3.4 24.4 19.8 17.7 15.5 233.5 216.0 190.2 178.2 1 9 6 3 .... 1962. . . . 1 9 6 1 .... 1 9 6 0 .... 1 9 5 9 .... 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 2.0 12.1 .2 14.4 13.7 13.2 12.4 11.9 165.5 147.3 132.5 132.1 124.4 1958.. .. 1 9 5 7 .... 1956. . .. 1955.. .. 1954. . .. 126.8 117.3 111.9 105.7 99.7 73.8 69.1 11.6 62.4 53.0 48.2 43.7 39.6 37.3 11.6 9.6 9.1 8.7 7.7 115.2 107.6 102.3 96.7 91.9 1 9 5 3 .... 1952. . .. 1 9 5 1 .... 1950. . .. 1 9 4 9 .... 94.2 60.2 57.3 54.3 54.2 122.7 34.0 31.3 29.2 30.6 28.4 7.3 7.8 7.2 7.0 6.6 6.4 6.1 86.9 80.8 76.9 77.0 144.7 119.3 114.4 107.0 93.7 80.9 26.3 43.1 23.7 27.3 18.4 70.0 56.5 51.4 46.2 40.7 16.6 9.8 12.6 10.1 .5 10.6 10.1 .6 9.7 10.5 12.9 16.4 3.5 7.2 9.4 9.4 11.3 2.5 3.7 8.2 20.8 38.3 38.8 35.6 11.5 10.9 11.3 7.0 (4) 1948. . .. 1 9 4 7 .... 1 9 4 6 .... 1 9 4 5 .... 1 9 4 4 .... 1 9 4 3 .... 1 9 4 2 .... 1 9 4 1 .... 1 9 4 0 .... 1 9 3 9 .... 1938.. .. 1937.. .. 1 9 3 6 .... 1935.. .. 1933-34.. 88.6 83.5 84.8 151.1 145.6 157.5 130.7 121.0 99.3 86.6 69.1 62.0 55.9 51.2 47.7 48.2 43.8 111.7 102.2 68.2 66.1 9.3 7.0 .1 1.6 .1 9.7 9.6 9.0 7.8 6.6 7.8 6.4 1.4 .3 7.0 9.9 .7 .6 .1 10.0 .1 9.4 9.3 .1 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 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 5.8 5.8 5.8 5.8 5.6 3.0 2.7 2.5 2.7 4.25 36.4 36.0 32.9 9.5 - 3 .0 12.2 10.0 .1 .2 2.6 2.8 .2 1 For the period from 1950 to 1967, 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 $1,970 million. 2 Includes $9.3 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases by the Corporation. 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 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 sub sequent 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. 5 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 1934. 39 FINANCES OF THE CORPORATION sented by far the largest share of the application of funds. Income and the deposit insurance fund, 1 9 3 3 -1 9 6 7 . The Corpora tion’s net income, expenses and additions to the insurance fund since 1933 are shown in Table 12. Assessments have provided almost two-thirds of the Corporation’s income during the entire period. However, the accumulation of the fund over the years and its investment in U.S. Government securities have brought the Corporation an increasing volume of earnings from this source. By 1961, investment income was providing about one-half of total income, and subsequently its proportionate contribution has increased. Administrative and operating expenses have climbed grad ually, while insurance losses have been moderate. Since its inception, the Corporation has been able to retain over 89 percent of its income for additions to the deposit insurance fund. Table 13. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1934-1967 Deposits in insured banks (in millions) Year (Dec. 31) 1967....................... 1966...................... 1965...................... 1964...................... Total Insured1 $448,709 401,096 377,400 348,981 $261,149 234,150 209,690 191,787 Percent of deposits insured Deposit insurance fund (in millions) Total deposits Insured deposits 58.2% 58.4 55.6 55.0 $3,485.5 3,252.0 3,036.3 2,844.7 •78% .81 .80 •82 1.33% 1.39 1.45 1.48 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. 40 FEDERAL DEPOSIT INSURANCE CORPORATION Deposits in banks insured by the Corporation and the amount of the deposit insurance fund each year since 1934 are shown in Table 13. The size of the fund and its immediate availability for the protec tion of depositors have contributed importantly to the confidence of depositors and the stability of the banking system. Following its first full year of operation, the Corporation has reported net earnings for transfer to the fund each year, and, except for two years, the fund has continually grown. The growth of the fund has approximately kept pace with the growth in insured deposits and total deposits in insured banks, as indicated by the stability of the percentages in the last two columns in Table 13. Audit. A continuous internal audit is provided by the Auditor of the Corporation. In addition, the financial transactions of the Corporation are audited each year by the General Accounting Office, a practice be gun in 1945. Previously, an audit was conducted each year by private accounting firms engaged by the Corporation. 41 BANK ABSORPTIONS APPROVED BY THE CORPORATION BANKS INVOLVED IN ABSORPTIONS APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1967 No. (Table 14) State Town or C ity Bank Arizona Connecticut Casa Grande Mesa Phoenix Tempe Littleton Littleton Danielson Delaware Willimantic Wilmington Central Arizona Bank First Security Bank The Guaranty Bank The Saguaro Bank Arapahoe Bank Valley National Bank County Bank and Trust Company of Danielson W illimantic Trust Company Brandywine-Mechanics Savings and Loan Association Wilmington Savings Fund Society North Madison Bank The Madison Bank and Trust Company The Farmers State Bank The First State Bank of Ransom Bank of Dayton The Farmers Bank The Fort Thomas-Bellevue Bank The Hartford Bank The Hughesville Savings Bank, Incorporated The Southern Maryland National Bank of La Plata Commerce Bank and Trust Company Melrose Trust Company Shrewsbury Bank and Trust Company Wakefield Trust Company Farmers State Bank of Alto Wayland State Bank Bank of Clarksdale Bank of Lambert, Lambert, Mississippi Farmers Savings Bank of Clifton Hill Salisbury Savings Bank The Central Jersey Bank and Trust Company The Edison Bank The First National Bank of South Plainfield The Sea Bright National Bank Chemical Bank New York Trust Company Empire City Savings Bank Excelsior Savings Bank Bank of Davie Branch Banking & Trust Company Colorado Indiana Kansas Kentucky Maryland Wilmington Madison Madison Ransom Ransom Dayton Centertown Fort Thomas Hartford Hughesville La Plata Massachusetts Worcester Melrose Shrewsbury Michigan Mississippi Wakefield Alto Wayland Clarksdale Lambert Missouri Clifton Hill New Jersey Salisbury Freehold Township Edison South Plainfield New York North Carolina Sea Bright New York New York New York Mocksville Wilson 34 34 34 34 10 10 22 22 23 23 9 9 1 1 15 25 15 25 2 2 35 37 35 37 8 8 38 38 14 14 36 6 6 36 26 16 16 32 32 42 FEDERAL DEPOSIT INSURANCE CORPORATION BANKS INVOLVED IN ABSORPTIONS APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1967— (Cont.) State Smithfield Reidsville Ohio Bank Town or City Sylvania Delaware Good Hope Jeffersonville Ostrander Sylvania No. (Table 14) First-Citizens Bank & Trust Company The Commercial Bank of Reidsville, North Carolina 11 The Community Savings and Loan Association The Delaware County Bank The Farmers Bank of Good Hope The Milledgeville Bank The Ostrander Banking Company The Sylvania Savings Bank Company 18 19 5 7 5 7 19 21 3 3 21 18 Oregon Cave Junction Shedd Eugene Albany Eugene Coos Bay Bank of Bank of Citizens Citizens Emerald Western Pennsylvania Reading American Bank and Trust Co. 20 of Pa. Bank of Hanover and Trust 4 Company Continental Bank and Trust 30 Company Industrial Valley Bank and 13, 17 Trust Company Myerstown Bank and Trust 20 Company National Bank of Malvern 13 National Bank of Union City 12 Northwest Pennsylvania Bank 31 & Trust Co. Peoples Trust City Bank 24 Sonsitaly Bank and Trust 30 Company The Elkins Park National Bank 17 The Farmers National Bank and 24 Trust Company of Boyertown The Grove City National Bank 31 The Pennsylvania Bank and 12 Trust Company The Wellsville National Bank 4 Hanover Norristown Jenkintown Myerstown Malvern Union City Oil City Reading Philadelphia Elkins Park Boyertown Grove City Titusville Wellsville Illinois Valley Shedd Bank Valley Bank National Bank Bank 11 South Carolina Lynchburg Florence The Peoples Bank The Peoples Bank of South Carolina, Inc. 27 27 Tennessee Humboldt Gibson Merchants State Bank The Bank of Gibson 28 28 Washington Bellevue Renton Bank of the West Highlands National Bank of Renton 33 33 Puerto Rico San German San Juan Banco de San German Banco Popular de Puerto Rico 29 26, 29 43 BANK ABSORPTIONS APPROVED BY THE CORPORATION Table 14. DESCRIPTION OF EACH MERGER, CONSOLIDATION, ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES APPROVED BY THE CORPORATION DURING 1967 Resources (in thousands of dollars) No. 1 The First State Bank of Ransom Ransom, Kansas to merge with The Farmers State Bank Ransom B anking Offices In operation 1,394 1 1,512 1 To be operated 1 S u m m a ry repo rt by A tto rn e y G e n e ra l, N o vem b er 17, 1 9 6 6 The proposed merger would combine the only banks doing business within a 30 mile radius of Ransom, a small town in the rural area of west central Kan sas. The two banks are direct competitors to each other and this merger would eliminate that competition, the only competition which now exists in that area for any type of banking service. B a s is fo r C o rp o ratio n ap p ro val, J a n u a ry 5 , 1 9 6 7 The proposal would merge the only banks in Ransom, Kansas, a rural com munity of 432 population. The banks are small independent units whose com bined resources aggregate less than $3.0 million and their offices are situated one-half block apart. Under State banking laws one banking office would be eliminated and it is proposed that the resulting bank will occupy the quarters of Farmers, the bank which is to be absorbed. The merging banks are under a degree of common ownership to the extent that eight individuals, including six directors of Farmers, own more than 20 per cent of the applicant's stock and 48 percent of the stock of the Farmers. Appli cant's lack of an executive officer and a qualified replacement has weakened the bank's management to a considerable extent. The merging banks do not en gage in active solicitation of customers and competition between them is de scribed as mild. The addition of Farmers' IPC deposits would more than double the appli cant's volume and the resulting bank would hold $2.2 million of such deposits. The size disparity between applicant and the larger of its two closest competi tors, which has IPC deposits of $3.7 million, would be significantly narrowed and the resulting bank would continue to be smaller than four of the six banks within 27 miles of Ransom. The population of Ransom has been static for about 15 years and the popu lation of the county has declined since 1950. The combined average total de posits for the merging banks was smaller in 1965 than in either of the two previous years. Prospects for future growth in the area are not favorable and there does not appear to be adequate support or need for the two small banks in this community. Each bank has lending lim its which are not adequate to ac commodate the loan requirements of the increasingly larger agricultural units in the area. The resulting bank would have a legal lending lim it twice that of each of the merging banks and it is planned that the community will be provided with new banking quarters which would furnish additional and improved cus FEDERAL DEPOSIT INSURANCE CORPORATION 44 tomer services and conveniences, including a night depository, drive-up window and additional safe deposit boxes. Furthermore, the proposal would provide stronger, more aggressive management to the applicant and the community would be more efficiently and economically served by a single banking office. The degree of competition which will be eliminated between the two small merging banks is clearly outweighed in the public interest by the benefits which will result from the proposal. Following consummation of the merger there would remain six banking alternatives, in addition to the resulting bank, within 27 miles from Ransom and the proposal would not tend to create a monopoly or in any other manner be in restraint of trade. Resources (in thousands of dollars) No. 2 The Hughesville Savings Bank, Incorporated Hughesville, Maryland (change title to Bank of Southern Maryland) to merge with The Southern Maryland National Bank of La Plata La Plata B anking Offices In operation 9,016 1 13,136 1 To be operated 2 S u m m a ry repo rt by A tto rn e y G e n e ra l, N o vem ber 2 3 , 1 9 6 6 The proposed merger of Hughesville Savings and Southern Maryland will eliminate existing competition between two banks in a common service area. While the information given in the application does not permit us to measure the present concentration and the increase resulting from this proposal, it is clear that there will be an increase in concentration. B a s is fo r C o rp o ratio n ap p ro val, J a n u a ry 18, 1 9 6 7 The proposal would merge two relatively small banks whose combined re sources aggregate little more than $22.0 million. Applicant is the smaller bank and its only office is located in Hughesville, 12 miles from the sole office of the National bank in La Plata, which is to be merged. The merging banks operate in a common service area, described as southern Maryland, which extends north ward within 10 miles of the District of Columbia line. No banking locations in tervene the offices of the merging banks, however, the National bank's primary competition is furnished by the La Plata branch of a bank with more than $600 million IPC deposits; the same bank is the applicant's closest competitor with a branch 8 miles from Hughesville. The proposal would eliminate only a moderate amount of competition between the merging banks. On June 30, 1966 there were 24 offices of 11 banks operating in the south ern Maryland service area. In 1960 and 1961 two large city banks entered the northern portion of this service area. The largest bank, Maryland National Bank with IPC deposits exceeding $600 million, operates four branches in this area in addition to the La Plata branch and the branch located 8 miles from the appli cant. The second largest bank has two branches presently in operation in the service area and holds almost $300 million in IPC deposits; in addition, it has two applications pending for branches to be located within 6 and 9 miles from La Plata. The resulting bank would have total IPC deposits of $17.3 million. Although the resulting institution will be a small bank compared with the large city banks in the area, the increase in financial resources and the legal lending lim it will be substantial relative to those of the separate merging banks. The resulting bank, by virtue of its larger financial resources and increased BANK ABSORPTIONS APPROVED BY THE CORPORATION 45 managerial resources, would be able to more adequately serve the larger credit requirements of the community, enlarge the services presently offered to the depositors and borrowers in the area, and thereby offer more effective competi tion in this increasingly competitive service area. The proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 3 The Farmers Bank of Good Hope Good Hope, Ohio (change title to The Fayette County Bank) to merge with The Milledgeville Bank Jeffersonville Banking Offices In operation 1,173 1 1,501 1 To be operated 2 S u m m a ry repo rt by A tto rn e y G e n e ra l, D e ce m b e r 2 9 , 1 9 6 6 The Farmers Bank of Good Hope, located in Fayette County, Ohio, proposes to acquire the Milledgeville Bank, which operates in a different part of the same County. The latter had, as of June 30, 1966, total assets of $1.5 million, total deposits of $1.3 million, and loans and discounts of $701,000. It operates no branches, provides normal banking services on a relatively limited scale, and does not exercise trust powers. The Farmers Bank of Good Hope, like The Milledgeville Bank, functions through a single office, located in a small rural community. Its resources and services are even more limited than those of Milledgeville. The merging banks do not directly compete. They operate under common ownership, with the same officers and directors. Three other banks in Fayette County will continue to be substantially larger than the Resulting Bank. There will also be two other institutions of comparable size, and one smaller bank in the area. It is concluded that the effects on competition resulting from this merger will not be adverse. B a s is fo r C o rp o ratio n ap p ro val, F e b ru a ry 2 , 1 9 6 7 The proposal would merge two unit banks with combined resources of $2.7 million which are located 18 miles apart. The applicant and Jeffersonville Bank serve separate areas intervened by two significantly larger banks located in the county seat town. There is no existing competition between the merging banks and recent acquisition of control of both banks by the same management pre cludes competition between them in the future. The resulting bank would hold only 5.2 percent of the aggregate IPC deposits held by the nine banks competing in the overall service area. The two largest banks each hold more than 26 percent of such deposits. Competition in both merging banks' service areas should be stimulated to some degree by the larger financial resources of the resulting bank under the existing aggressive common management. The increased lending lim it would permit more adequate accommodation of the agricultural credit needs in the areas of both banks. The present and antici pated industrial development in the Jeffersonville area would be better served and, in general, more comprehensive banking services would be offered both communities. The proposed merger would not substantially lessen competition, tend to cre ate a monopoly or, in any other manner, be in restraint of trade. FEDERAL DEPOSIT INSURANCE CORPORATION 46 Resources (in thousands of dollars) No. 4 Bank of Hanover and Trust Company Hanover, Pennsylvania to acquire the assets and assume the deposit liabilities of The Wellsville National Bank Wellsville Banking Offices In operation 23,335 2 1,810 1 To be operated 3 Approved under emergency provisions. No report requested from the Attorney General. B a s is fo r C o rp o ratio n ap p ro val, J a n u a ry 2 6 , 1 9 6 7 Loan losses exceed Wellsville National's total capital account and management has failed to present a suitable recapitalization plan. The Comp troller of the Currency has advised the Corporation that he will appoint a Con servator on January 28, 1967 to enter into an agreement with applicant fo r the sale of all assets of the Wellsville National Bank in consideration of the as sumption by the applicant of all deposits and all other obligations and liabilities of Wellsville National on such terms as a court of record of competent jurisdiction shall direct. The participating banks’ offices are located 20 miles apart. Each bank is faced with competition from larger banks at closer locations and there has been virtually no competition between them. The increase in applicant's IPC deposit size as the result of the transaction would have little competitive effect in either bank's service area. Wellsville National has been operating since 1907 and in view of the serious asset and management problems now in evidence it cannot survive as a unit bank. Under these circumstances it is found that an emergency exists and the Corporation must act immediately in order to prevent the probable failure of the bank. There is no other bank in Wellsville and the proposals would continue uninterrupted banking service in the community. Resources (in thousands of dollars) No. 5 Citizens Valley Bank Albany, Oregon to merge with Bank of Shedd Shedd Banking Offices In operation 24,564 5 3,493 2 To be operated 7 S u m m a ry repo rt by A tto rn e y G e n e ra l, O cto b er 3 1 , 1 9 6 6 Citizens Valley Bank, Albany, Oregon, is the resulting bank of a 1965 merger between Citizens Bank of Albany and Bank of Lebanon, Lebanon, Oregon. As of August 15, 1966, Citizens had assets of $24,564,000, loans and discounts of $15,163,000, deposits of $22,084,000, and capital accounts of $1,842,000. Bank of Shedd, organized in 1913, has no history of mergers or consolida tions. It had, as of August 15, 1966, assets of $3,493,000, loans and discounts of $2,224,000, deposits of $3,084,000, and capital accounts of $390,000 (ad justed August 25, 1966). These banks are located 12 miles apart and deal in the same service area. Competition between them is present and will be eliminated by the proposed merger. However, in view of the number and size of the competing banks serv 47 BANK ABSORPTIONS APPROVED BY THE CORPORATION ing this area, and of Bank of Shedd's relatively small size, we conclude that the proposed merger will not adversely affect the structure of commercial banking in the area. B a s is fo r C o rp o ratio n ap p ro val, M arch 2 , 1 9 6 7 The merging banks are located in an area served by a number of branches of the two largest banks in the State, each of which has more than $1.2 billion in deposits. Applicant, the third largest bank with $23 million in total deposits, would acquire by the proposed merger the smallest bank in the area, Bank of Shedd, which has total deposits of $3.1 million. Bank of Shedd's two offices serve a small area within that served by the five offices of the applicant, howev er, a close working relationship has existed between the two banks since 1961 and there is little competition between the merging banks. Bank of Shedd's fu ture prospects for developing into an effective com petitor are minimal. The two statewide branch banks represented in the resulting service area hold the largest proportions (41.9 percent and 24.0 percent) of the aggregate total deposits held by the banking offices located in the area. Applicant would increase its percentage from 17.9 percent to 20.3 percent and would continue to be the third largest bank in terms of total deposits as well as proportionate shares held. The small increase in the applicant's size would have no adverse effect on competition in the service area. Bank of Shedd's small size does not permit it to accommodate the size of credits demanded in the area it serves. The latter's offices, as branches of the larger resulting bank, would be able to provide a far greater scope of financing directly in the communities served. The proposed merger would not substantially lessen competition, tend to cre ate a monopoly or, in any other manner, be in restraint of trade. No. 6 The Edison Bank Edison, New Jersey to merge with The First National Bank of South Plainfield South Plainfield Resources (in thousands of dollars) Banking Offices In operation 43,307 4 7,371 3 To be operated 7 S u m m a ry report by A tto rn e y G e n e ra l, D e ce m b e r 2 8 , 1 9 6 6 First National and The Edison Bank are both located in Northern Middlesex County, a rapidly growing residential and industrial area in Central New Jersey. First National is the smallest of five banks operating in its service area and of three banks headquartered in that area. It has two branches in addition to its principal office, all of which are located in South Plainfield. As of June 30, 1966, it had total assets of $7,371,000, total deposits of $6,863,000, total loans of $3,012,000, and total capital accounts of $476,000. The Edison Bank is the third largest of five banks operating in its service area and the second largest of four banks headquartered in that area. In addi tion to its main office in Edison, it has three branches. Application for a fourth office was filed in 1964 but has been held in abeyance at The Edison Bank's re quest pending development of the area. According to the application, the service areas of the merging banks are con tiguous, but there appears to be some present competition between them, and head offices of the two banks are only 4.5 miles apart. If and when the fourth branch for which The Edison Bank has applied is established, additional compe tition would be probable, since that location is only about 2 miles from the 48 FEDERAL DEPOSIT INSURANCE CORPORATION head office and one branch of First National. From these facts, it would appear that the merger will eliminate a degree of existing competition and an even greater degree of potential competition. B a s is fo r C o rp o ratio n ap p ro val, M arch 2 3 , 1 9 6 7 The proposal would combine a $7 million bank operating a total of three of fices with a $43 million bank operating a total of four offices. The resulting bank would continue to operate the three offices of First National. The partici pating banks have been under common ownership since 1964. There is no common management but the president of app.icant attends board meetings of First National in an advisory capacity. Both the applicant and First National consider their trade areas to be contig uous but not overlapping. Neither of the participating banks has a significant volume of business in the other bank’s trade area and there is little effective competition between the two banks. Applicant’s main office and two branches in Edison Township compete with the main office and three branches of First Bank and Trust Company, National Association which has a total of nine offices and total deposits of over $100 million. Other commercial bank competition in the Edison area consists of two single-unit banks with resources less than the applicant and one branch of a larger bank. First National’s three offices compete with Plainfield Trust State National Bank, Plainfield, which operates its main office and four branches in Plainfield. All of these offices are within 2 miles of the nearest office of First National. Plainfield Trust State National Bank has total resources of $112.7 million. Sub urban Trust Company, Westfield, with total resources of $66,504,000 and eight offices also operates a branch in Plainfield. In September of 1966 the former National State Bank of Plainfield was merged into The National State Bank, Eliz abeth, New Jersey, which had total resources of $203 million as of June 30, 1966 and now operates three branches in Plainfield. Applicant has 13.8 percent of the IPC deposits in the resulting bank’s trade area and would have 16.7 percent after the merger. Applicant is second to Plainfield Trust State National Bank which has 48.4 percent of the IPC deposits in the trade area. The other banks and branches in the trade area have less IPC deposits than the applicant but one bank with IPC deposits almost equal to the resulting bank operates a branch in the trade area and two larger banks also operate branches in the resulting bank’s trade area. This proposed merger would enable the resulting bank to compete more ef fectively in the market and thereby increase competition. The benefits of in creased lending limits, improved managerial resources and automation would accrue mainly to the South Plainfield area but would also permit the applicant to compete more effectively with the larger banks operating in the Edison area. The proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 7 Citizens Bank Eugene, Oregon to merge with Emerald National Bank Eugene B anking Offices In operation 23,867 2 5,263 2 To be operated 4 S u m m a ry rep o rt by A tto rn e y G e n e ra l, F e b ru a ry 10, 1 9 6 7 Emerald National Bank, Eugene, Oregon (hereinafter Emerald), with its main office in the Bethel-Danebo area of Eugene and a branch in nearby Veneta, Ore BANK ABSORPTIONS APPROVED BY THE CORPORATION 49 gon, proposes to merge with- Citizens ESank, Eugene, Oregon (hereinafter C iti zens), with its main office in Eugene and a branch in adjoining Springfield, Oregon. As of November 23, 1966, Emerald had total deposits of $4,788,000 and Citizens had total deposits of $20,742,000. The closest offices of the two banks are about 3 miles apart. The merger would eliminate existing and potential competition between the banks and would increase the concentration of banking resources in the Eugene - Springfield area. B a s is fo r C o rp o ratio n ap p ro val, M arch 2 3 , 1 9 6 7 The proposal would merge the two smallest banks serving the Eugene-Springfield area. Applicant holds total deposits of $20.7 million and National holds to tal deposits of almost $4.8 million. The two largest banks in the State, each of which is headquartered in Portland and operates more than 100 offices and holds more than $1.1 billion in total deposits, operate an aggregate of 14 offi ces in this area. One other bank serves the area; it is headquartered in Port land, holds total deposits of almost $61 million and operates a branch in Eugene. National has a branch in the small farm community of Veneta, 12 miles west from its main office in Eugene. The applicant's only branch is located in Spring field, 4 miles east of Eugene. Surrounding the applicant's main office and within a radius of eight blocks are six branches of the large competing banks. National’s chief competition is from three branches of the State's two largest banks. Applicant’s Springfield branch faces competition from three branches of the two largest banks in the State. The merging banks' main offices, which are their closest offices, are 3 miles apart and are intervened by a branch of each of the three larger banks serving the area. There is little competition between the merging banks. The two largest banks in the State operate 14 of the 19 offices in the service area and, in the aggregate, these offices hold almost 85 percent of the total de posits held by all bank offices in the area. The relatively nominal increase in the applicant’s share of the aggregate deposits, from 11.7 percent to 14.2 percent would have no significant effect on competition in the resulting service area. The serious asset, capital and managerial problems of National substantially diminish its ability to provide effective competition and adequately serve the community. These problems would be resolved under the satisfactory financial and managerial resources of the applicant and the comm unity would be better served by National's offices as branches of the resulting bank. The proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 8 Wayland State Bank Wayland, Michigan to acquire the assets and assume the deposit liabilities of Farmers State Bank of Alto Alto B anking Offices In operation 10,186 3 3,877 2 To be operated 5 S u m m a ry rep o rt by A tto rn e y G e n e ra l, N o vem ber 17, 1 9 6 7 The proposed acquisition would join two relatively small banks (assets of $10,096,00 and $3,716,100, respectively) doing business in a predominantly agricultural area within a radius of 25 miles of Grand Rapids, Michigan. The banks are located 25 miles apart and there is apparently no competition be FEDERAL DEPOSIT INSURANCE CORPORATION 50 tween them. We conclude that the acquisition would not adversely affect the banking structure in the area. B a s is fo r C o rp o ratio n ap p ro val, A p ril 6, 1 9 6 7 This proposed transaction would combine two banks whose main offices are 18 miles apart. The applicant operates three offices and has total assets of $10,186,000 and Farmers with total assets of $3,877,000 operates two offices. The trade areas of the participating banks do not overlap and they are not di rectly competitive. There are two unit banks located in the area between the participating banks. The president and cashier of Farmers have decided to retire and no provision has been made for management succession. The proposed transaction would result in better banking services for the two small communities now served by Farmers. With aggressive management and larger financial resources the Result ing Bank would be in a position to offer more complete banking services which should stimulate competition in Farmers’ trade area rather than lessen it. This proposed transaction would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 9 The Madison Bank and Trust Company Madison, Indiana to acquire the assets and assume the deposit liabilities of North Madison Bank Madison Banking Offices In operation 20,789 4 3,590 1 To be operated 5 S u m m a ry repo rt by A tto rn e y G e n e ra l, J a n u a ry 2 6 , 1 9 6 7 The Madison Bank and Trust Company, Madison, Indiana, with total assets of $20,035,000 and three branch offices, proposes to purchase the assets and as sume the liabilities of the North Madison Bank, Madison, Indiana, which has total assets of $3,306,000, and to operate the acquired properties as a branch office. Applicant bank is the largest bank in Madison, Indiana and in its service area. The participating banks are two of only three competitor banks located in Madison, Indiana. The area is mixed industrial, residential and agricultural. Nei ther bank has merged, consolidated or effected an acquisition of assets or as sumption of liabilities with any other bank within the past 10 years. The proposed acquisition will eliminate existing competition between the par ticipating banks, and increase the already high level of banking concentration within the county. Banking alternatives in Madison, Indiana will be reduced from three to two, and the applicant bank’s dominant position in the service area in which it does the major part of its business will be materially enhanced. B a s is fo r C o rp o ratio n ap p ro val, A p ril 6, 1 9 6 7 Applicant, which has $16.8 million IPC deposits, would acquire the assets and assume the Selling Bank’s liabilities, including IPC deposits of almost $2.8 million, under the proposed transaction. Applicant’s main office and the sole of fice of the Selling Bank are 3 miles apart in the city of Madison. Selling Bank's closest competitor is the national bank headquartered in Madison which has IPC deposits of $6.9 million and a branch less than one mile east from Selling Bank. Applicant's office closest to Selling Bank is i y 2 miles west. There are six commercial banks, in addition to the participating banks, within a 15-mile radius of Madison. Considerable competition is furnished by two sav BANK ABSORPTIONS APPROVED BY THE CORPORATION 51 ings and loan associations in Madison which together hold withdrawable bal ances of $18.2 million. One other association, in Carrollton, Kentucky, holds withdrawable balances of $3.7 million. The relative increase in applicant’s size would not have significant adverse effects on competition in Madison or in the overall service area. Commercial banks outside the service area, particularly in Kentucky, furnish competition to the participating banks for savings deposits; these and other banks outside the service area also provide some competition for commercial and other loans. Existing competition between the small, single office Selling Bank and the applicant would be eliminated, however, it is not considered substantial relative to the overall competition provided by the nu merous commercial banks in the service area, the commercial banks outside the area and the nonbank sources in Madison and throughout the service area. Each of the three banks in Madison has been in operation for more than 50 years. The limited resources attained by the Selling Bank during its history prevents it from adequately serving the industrial segment of the community which has undergone expansion in recent years. Selling Bank is presently under the active management of a 75 year-old president and its executive vice presi dent is in ill health and on leave of absence. Under this situation, and in view of the lack of management succession which the bank has been unable to re solve by other means over an extended period of time, the future prospects for Selling Bank to aggressively compete and adequately meet the expanding indus trial needs of the community are minimal. The proposal would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Any unfavorable competitive effects that could result from the merger would be outweighed by the resolution of the management succession problem confronting the Selling Bank and by the increased support which the resulting bank would give to the community, particularly its industrial sector. Resources (in thousands of dollars) No. 10 Arapahoe Bank Littleton, Colorado (change title to Arapahoe Valley Bank) to acquire the assets and assume the deposit liabilities of Valley National Bank Littleton B anking Offices In operation 7,470 1 5,070 1 To be operated 1 S u m m a ry repo rt by A tto rn e y G e n e ra l, F e b ru a ry 15, 1 9 6 7 Arapahoe Bank with assets of $7,205,000 proposes to acquire the assets and assume the liabilities to pay deposits made in Valley National Bank, a bank with assets of $4,951,000. The banks are both located in the town of Littleton, Colo rado, population about 21,500, about 10-1/2 miles distant from Denver, Colorado. The town of Littleton is included in the Denver metropolitan area. Well over 70 percent of the deposits and loans of each bank originate in the primary service area of the other bank, and the two banks would appear to compete actively with one another. The resulting bank would control 43 percent of the deposits and 52 percent of the loans and discounts of the remaining three banks in Littleton. Arapahoe Bank is presently a subsidiary of Denver U. S. Bancorporation, a registered bank holding company controlling five banks in Colorado with depos its in excess of $435,254,000. These deposits represent 14.9 percent of the to tal deposits held by commercial banks in Colorado. Three of the subsidiary 52 FEDERAL DEPOSIT INSURANCE CORPORATION banks of Denver Bancorporation are located in the Denver metropolitan area and one of these three banks is the second largest bank in Denver with total deposits of over $385,000,000. Both the entire Denver metropolitan area— and the narrower suburban Little ton area— may represent relevant markets for certain classes of customers in Colorado, a unit banking State. Some smaller Littleton business borrowers and many individual depositors may be limited to the more convenient suburban community while larger and better known business firms probably have access also to financing within the entire Denver area. Within the Denver metropolitan area the proposed merger would appear to re sult in a further increase in banking concentration and a lessening of present and potential competition. This results from the merging bank's present asso ciation with Denver Bancorporation, which now controls 24 percent of deposits within the Denver market. Also, Denver Bancorporation would, through this proposed acquisition by its subsidiary (Arapahoe Bank), acquire a dominant competitive position within the narrower Littleton suburban community as well, affecting im portant classes of smaller local customers. Finally, the proposed merger would result in the complete elimination of sub stantial present competition between the participating banks, within both the Littleton and Denver markets. B a s is fo r C o rp o ratio n ap p ro val, M ay 2 , 1 9 6 7 The purchase of Valley’s assets by the applicant would result in a bank with $12 million in resources and comparable in size to The Littleton National Bank, the participating banks’ closest commercial bank competitor. The applicant and Valley are located one mile apart and no commercial bank offices intervene. Branch banking is prohibited by statute. Applicant will abandon its present quarters and move to those presently occupied by Valley. In addition to the ap plicant, there are five commercial banks, two industrial banks and six offices of five savings and loan associations located within a 3-mile radius of Valley. Applicant would substantially increase its IPC deposit size by the assumption of Valley's liabilities but would remain smaller than the closest competitor in Littleton, The Littleton National Bank. In addition, two other commercial banks competing in the service area, located in Englewood, are significantly larger than the resulting bank in deposit size. The resulting bank would be a subsidi ary of applicant’s parent company, Denver U. S. Bancorporation, Inc., Denver, a registered bank holding company. Each of the two larger banks in Englewood are also subsidiaries of two other registered bank holding companies and a fourth competitor, the First National Bank of Southglenn, is an affiliate of a na tional bank in Denver which is the largest bank in the State. Valley was opened for business in 1963. Serious loan problems have developed and its management is regarded as unsatisfactory. Consummation of the purchase and assumption agreement would resolve the asset and manage rial problems of Valley. The proposal would eliminate one of the banking alter natives in Littleton, however, its problems lim it its ability to adequately serve the community and effectively compete in the service area. The resulting bank, under applicant's management and with increased financial resources and the services available through the holding company, would be in a position to offer improved services to Valley's customers and to the community as a whole, especially the local business sector. Although this proposal involves a reduction in competition, it is not believed the overall effect would be to substantially lessen competition in view of the loan problems and unsatisfactory management of Valley, the total competition provided by the commercial banks and nonbank sources located directly in the resulting service area, and the competitive influence on the area from banks and other financial institutions in nearby Denver. Any unfavorable competitive effects which would result from the proposal are outweighed in the public inter BANK ABSORPTIONS APPROVED BY THE CORPORATION 53 est by the resolution of the asset and managerial problems of Valley, the selling bank. No. 11 First-Citizens Bank & Trust Company Smithfield, North Carolina to merge with The Commercial Bank of Reidsville, North Carolina Reidsville Resources (in thousands of dollars) In operation To be operated 516,900 108 109 2,753 1 B anking Offices S u m m a ry report by A tto rn e y G e n e ra l, Ja n u a ry 2 0 , 1 9 6 7 First-Citizens was organized in 1898. It presently operates 108 offices in 49 North Carolina communities and has received regulatory permission to open eight additional de novo branches. As of September 20, 1966, First-Citizens had total assets of $512,433,000 and net loans and discounts of $274,141,000, to tal deposits of $453,843,000 and total capital accounts of $30,111,000. Commercial Bank was organized in 1927. Its only office is in Reidsville, North Carolina (population— 14,267). Reidsville is the principal city of Rockingham County, which is in the center of the northern tier of counties in North Carolina. As of September 20, 1966, Commercial Bank had total assets of $2,509,000 and net loans and discounts of $1,582,000, total deposits of $2,165,000 and total capital accounts of $145,000. There appears to be little if any existing competition between the merging banks, as indicated by the relatively small size of Commercial Bank and the dis tance between it and the nearest offices of First-Citizens (25 miles). The proposed merger would eliminate potential competition between the merging banks. North Carolina banking laws permit unrestricted de novo branching. First-Citizens would appear to be one of the most likely de novo en trants into the Reidsville area, in view of the proximity of its nearest office to the area and the fact that since its organization First-Citizens has established over 100 de novo branches. B a s is fo r C o rpo ratio n ap p ro val, A p ril 2 5 , 1 9 6 7 Commercial was organized in 1927 as an industrial bank; although it con verted to the status of a commercial bank in 1960, its operations and policies continue largely unchanged. Instalment loans represent more than 80 percent of total loans and time deposits comprise 70 percent of total deposits. It operates neither branches nor a trust department. Within Reidsville there are also head quartered two other banks, both considerably larger than Commercial, serving this industrial community of 14,300 population with five offices. Non-bank competition includes two savings and loan associations in Reidsville. Applicant is the fourth largest bank in North Carolina and the instant proposal will not change this rank. It operates 107 branches in 51 communities in 28 of the State’s 100 counties and approval has been obtained for the establish ment of 10 additional offices which have not yet opened for business. Its main office is at Smithfield, 115 miles southeast of Reidsville, and is branches nearest to Commercial are the six located in Greensboro, 24 miles southwest of Reids ville. Within Greensboro are represented also the first, second and third largest banks of the State with 7, 11 and 6 branches respectively. The subject proposal would have insignificant effect on competition in the areas presently served by applicant. Commercial and applicant are not presently in competition with each other and there is small likelihood they would become competitive in the future. Ap plicant would gain an office in a county in which it is not now represented. The 54 FEDERAL DEPOSIT INSURANCE CORPORATION Reidsville community would benefit from the substitution of a bank branch sup ported by all the resources and specialized departments of the applicant. Appli cant would offer trust facilities, a considerably wider range of credit services and a much larger lending capacity than presently afforded by Commercial. In the Reidsville area, the effect on bank competition would be favorable. The proposal would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 12 The Pennsylvania Bank and Trust Company Titusville, Pennsylvania to merge with National Bank of Union City Union City Banking Offices In operation 62,412 6 5,931 2 To be operated 8 S u m m a ry repo rt by A tto rn e y G e n e ra l, F e b ru a ry 2 7 , 1 96 7 This is a proposal to merge the six-office Pennsylvania Bank and Trust Com pany (deposits of $54,395,000) and the two-office National Bank of Union City (deposits of $5,375,400) some 20 miles northwest of Titusville, in northwestern Pennsylvania. The application indicates that the service areas of the Charter and Merging Banks overlap only to a very small extent, and we conclude that the merger would not adversely affect competition. B a s is fo r C o rp o ra tio n a p p ro v a l, A p ril 2 5 , 1 9 6 7 This proposal would combine two banks whose main offices are 22 miles apart which is the shortest distance between offices of the participating banks. The applicant operates six offices and has total assets of $62,412,000 and Bank of Union with total assets of $5,931,000 operates two offices. Applicant has one office at Pleasantville, 6 miles southeast of the main office, and its other four offices are located in the central and northern sections of Warren County. The closest of these four offices in Warren County is 32 miles from ap plicant's main office in Crawford County and the trade area served by these of fices does not extend beyond Warren County. Bank of Union is located in the southeastern portion of Erie County and its one office at Wattsburg is 8 miles northeast of Union City. The two offices of Bank of Union and the four offices of applicant in Warren County are separated by two other commercial banks' of fices and they are not regarded as being directly competitive. The Resulting Bank's extensive trade area is in the northwestern section of the State where competition is intense and while this proposed transaction would eliminate an insignificant amount of competition between the participat ing banks it would also enable the applicant to compete more effectively with its larger competitors and thereby stimulate competition. Other competition in the trade area consists of four branches of banks whose main offices are located outside of the trade area and 13 offices of banks headquartered in the trade area. Of the other commercial banks operating in the trade area, five are larger than the applicant and one is almost equal in size. In addition to Bank of Union, the Union Bank & Trust Co., Erie, which is almost as large as the appli cant, has an office in Union City and it is becoming increasingly difficult for Bank of Union to cope with this competition. This proposed transaction would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. BANK ABSORPTIONS APPROVED BY THE CORPORATION Resources (in thousands of dollars) No. 13 Industrial Valley Bank and Trust Company Jenkintown, Pennsylvania to acquire a portion of the assets and assume a portion of the deposit liabilities of National Bank of Malvern Malvern 248,273 3,977* 55 B anking Offices In operation To be operated 28 29 2 1 S u m m a ry repo rt by A tto rn e y G e n e ra l, M arch 17, 1 9 6 7 This is a proposal whereby the Industrial Valley Bank and Trust Company ( “ Industrial Valley") would acquire about 59 percent of the assets of the Na tional Bank of Malvern ( ‘ Malvern Bank") and would assume the same propor tion of its liabilities. The assets to be transferred to Industrial Valley include one of Malvern Bank’s two offices (at Paoli, Pennsylvania). The proposed transaction would eliminate any direct competition which exists between Malvern Bank's Paoli office and Industrial Valley's offices (the closest of which is 9 miles to the north in Phoenixville). At the same time, it should create at least the possibility of competition between Malvern Bank's two exist ing offices— which are 2 miles apart— since one of them will be operated by In dustrial Valley and the other by Malvern Bank. Thus, provided the proposed transaction leaves Malvern Bank sufficiently strong to be a viable competitor, the two opposite effects would probably offset each other. Industrial Valley appears to be the largest bank operating in Chester County, Pennsylvania (where it has five of its 28 offices and Malvern Bank has both its offices). Its acquisition of the Paoli office of Malvern Bank would appear to in crease by about 2 percent its share of the county's IPC demand deposits. B a s is fo r C o rp o ratio n ap p ro val, A p ril 2 5 , 1 9 6 7 Applicant has $248 million in resources and operates 28 offices in four southeastern Pennsylvania counties. Its main office and one branch are in Jenkintown, Montgomery County, which is about 12 miles north from downtown Philadelphia. Nine other branches are located in Montgomery County, 10 branches are located in Philadelphia County, six are in Chester County and one is in Delaware County. Applicant would acquire 58.733 percent of the assets and liabilities of Malvern, a bank with resources of $6.8 million, including the latter's only branch at Paoli which is 2 miles from Malvern. The main office at Malvern would continue to operate as an independent bank. Applicant's branch at Phoenixville is 9 miles north of Paoli and is appli cant's nearest office to either of Malvern's locations. Phoenixville and Paoli are intervened by the east-west Pennsylvania Turnpike and the volume of business which each derives from the other's service area is negligible. The proposal would eliminate only minimal competition between the participating banks. Mal vern is the smallest bank in its service area and faces competition from seven offices of four commercial banks and one office of a mutual savings bank which holds deposits of almost $1.7 billion. One commercial bank is headquartered in Paoli and has deposits of more than $30 million. Two other commercial banks in the area have deposits o f'm ore than $350 million and $1.5 billion and pre sently compete with the applicant at other locations. Competition in the Malvern-Paoli area should be significantly enhanced, and the convenience and needs of the comm unity would be much better served. The applicant derives the major portion of its business from the three coun ties of Montgomery, Philadelphia and Chester. In addition to the participating banks, there are 29 competing commercial and mutual savings banks in these 56 FEDERAL DEPOSIT INSURANCE CORPORATION counties which operate 410 offices. Applicant is eighth largest bank and has to tal deposits of $225.6 million. Six of the larger commercial banks are in Phila delphia and one is located in Montgomery County; four of these competitors have deposits ranging from $334 million to $842 million and three hold depos its exceeding $1.0 billion. Each of the four mutual savings banks in Philadelphia is larger than the applicant and hold deposits ranging from $256 million to $1.7 billion. Applicant's assumption of about $3.3 million of Malvern's total deposits would have little effect on competition in applicant's service area. The proposal would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands o f dollars) No. 14 Salisbury Savings Bank Salisbury, Missouri to acquire the assets and assume the deposit liabilities of Farmers Savings Bank of Clifton Hill Clifton Hill B anking Offices In operation 8,739 1 975 1 To be operated 1 S u m m a ry rep o rt by A tto rn e y G e n e ra l, M arch 2 7 , 1 9 6 7 Salisbury Savings Bank ("Salisbury Savings"), Salisbury, Missouri— which holds over 50 percent of the IPC demand deposits in Chariton County, Missouri — proposes to acquire the assets and assume the liabilities of Farmers Savings Bank of Clifton Hill (“ Farmers” ), Clifton Hill, Missouri, a small bank in neigh boring Randolph County. The proposed acquisition would eliminate existing competition between these two banks— which are only 7 miles apart and are the only banks within this immediate area. The existence of competition between the two banks is under scored by the fact that the Salisbury Savings Bank will have to close the former Farmers office in Clifton Hill, and transfer customer accounts to the Salisbury office, in order to comply with the prohibitions against branch banking under the Missouri law. On the other hand, Farmers may be such a small institution that it is not, in reality, able to offer effective competition at this time. The proposed acquisition will cause some increase in concentration. It will in crease by about 3 percent Salisbury Savings’ share (now about 33 percent) of demand deposits in the service area defined in the application. B a s is fo r C o rp o ratio n ap p ro val, A p ril 2 5 , 1 9 6 7 The selling bank is located in a community with a population of about 200 and has resources of less than $1.0 million. The applicant, an $8.7 million bank, would purchase the assets and assume the liabilities of the selling bank which is located 8 miles distant. The two banks have been under the control of a charitable trust since 1964 (common ownership reportedly has existed for more than 50 years) and have worked in close association with each other. The small selling bank cannot obtain management and other personnel to operate the bank, and its stockholders desire to liquidate. There is no effective competi tion between the participating banks which would be eliminated by this pro posal. Applicant is the largest of four banks in the resulting service area. The as sumption of selling bank's small volume of deposits would not materially alter the competitive situation in the resulting service area. The areas are agricultural in nature and the increasing size of the farm units require larger credit accom 57 BANK ABSORPTIONS APPROVED BY THE CORPORATION modations than the selling bank can provide. The proposal would eliminate the selling bank's office but two banking alternatives are available 6 and 8 miles from selling bank's location. The proposal would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands o f dollars) No. 15 The Fort Thomas-Bellevue Bank Fort Thomas, Kentucky to acquire the assets and assume the deposit liabilities of Bank of Dayton Dayton B anking Offices In operation 15,233 2 3,711 1 To be operated 3 S u m m a ry repo rt by A tto rn e y G e n e ra l, M arch 3 , 1 9 6 7 The Fort Thomas-Bellevue Bank, Fort Thomas, Kentucky, proposes to acquire the assets and assume the liability to pay deposits of the Bank of Dayton, Day ton, Kentucky. The Fort Thomas-Bellevue Bank operates its only branch office approximately 5 miles northwest of Fort Thomas in Bellevue, four city blocks south of the only office of Dayton Bank. The transaction, if approved, will eliminate all competi tion presently existing between the Bank of Dayton and the Fort Thomas-Bellevue Bank as well as increase substantially the level of banking concentration within Campbell County, although some additional competition is provided by the Cincinnati, Ohio banks just across the Ohio River. B a s is fo r C o rp o ratio n ap p ro val, M ay 2 , 1 9 6 7 The applicant is a $15 million bank with two offices in Campbell County, Ken tucky within easy access of downtown Cincinnati, Ohio. The single office selling bank has $3.7 million in resources and is located in the comm unity of Dayton, about 4 miles from applicant's main office in Fort Thomas. Applicant's branch is in Bellevue, a comm unity adjacent to Dayton, 0.7 mile from selling bank's o f fice. The communities of Dayton and Bellevue are located along the Ohio River opposite the city of Cincinnati and are part of the Cincinnati metropolitan area. Most of the residents of the participating banks' locations commute to Cincin nati for employment. While no commercial bank offices intervene any of the participating banks' locations, each of the latters' offices are directly competitive with other com mercial banks at closer locations. The participating banks compete not only with the large commercial banks and savings and loan associations in Cincin nati, but with 13 other commercial bank offices in Campbell County, 12 savings and loan associations in that County including six which are located in Fort Thomas, Dayton and Bellevue, and numerous other nonbank financial institu tions. While the proposal would eliminate competition between the participating banks, the amount thereof is not considered to be substantial. Moreover, it ap pears to be insignificant relative to the total competition furnished by the nu merous commercial banks and nonbank sources located in Campbell County and in downtown Cincinnati. The increased size of the applicant would not have material adverse effects on competition in the Campbell County service area and would permit it to compete more effectively with the other financial institu tions. The proposal would resolve the selling bank's management succession problem. The resulting bank's aggressive management, by virtue of its greater 58 FEDERAL DEPOSIT INSURANCE CORPORATION capital resources, would more adequately meet the convenience and needs of the communities to be served and offer more effective competition, especially to the larger Cincinnati, Ohio banks and other financial institutions which repre sent a strong competitive influence in Campbell County. The proposed transaction would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 16 Excelsior Savings Bank New York, New York (change title to Excelsior Empire Savings Bank) to merge with Empire City Savings Bank New York B anking Offices In operation 250,960 3 170,976 3 To be operated 6 S u m m a ry repo rt by A tto rn e y G e n e ra l, J a n u a ry 19, 1 9 6 7 Excelsior Savings Bank was incorporated in 1869; its past 10-year history shows no mergers or consolidations. Excelsior had, as of June 30, 1966, assets of $250,955,000, loans of $204,548,000, deposits of $222,539,000, surplus of $12,691,000 and undivided profits of $11,601,000. It operates two branch of fices in addition to its head office at 221-223 West 57th Street, all of which are located in the borough of Manhattan. Empire City Savings Bank, incorporated in 1889, operates its head office at 826-836 Third Avenue and two branch offices. All offices are in Manhattan. Its past 10-year history reveals no mergers or consolidations. As of June 30, 1966, Empire City had assets of $170,976,000, deposits of $154,290,000, loans of $146,380,000, surplus of $11,431,000, and undivided profits of $3,113,000. The head offices of the two banks and their branches are in close proximity, and they appear to be direct competitors. This competition would be eliminated by the proposed merger. The merging savings banks face competition from some 16 other savings banks controlling deposits exceeding $11 billion. The merging banks are the smallest and the third smallest in the area and the resulting bank would con trol approximately 3.3 percent of total savings bank deposits. The resulting increase in concentration would not be substantial. B a s is fo r C o rp o ratio n ap p ro val, M ay 2 2 , 1 9 6 7 Both applicant and Empire City operate three offices each, two each in the midtown section of Manhattan and one each in the upper west side section of the borough. The respective offices of the two banks are relatively distant and separated by numerous offices of competing institutions, including branches of far larger savings banks. The shortest distance between offices of the combining banks is 0.9 mile, sufficient in these circumstances to render them largely non competitive and to confine their operations to separate and distinct areas. Any competition between the two merging banks is small and indirect. Common bor rowers and depositors are few although legal limitations and deposit insurance ceilings on deposits generally tend to promote some duplication of accounts at mutual savings banks that are truly competing against each other. Applicant and Empire City are among the smallest of the 18 mutual savings banks in the borough of Manhattan and the 50 in New York City, numbering 14th and 16th, respectively, in the borough and 33rd and 42nd in the city. The resulting bank would rank 13th in size in the borough and 24th in the city. By their field of operation, restricted by law largely to the acceptance of savings 59 BANK ABSORPTIONS APPROVED BY THE CORPORATION deposits and the extension of real estate and certain specified other loans, ap plicant and Empire City face vigorous competition from the city’s concentration of commercial banks, savings and loan associations and insurance companies. Financial and managerial resources and future prospects of both banks are satisfactory although it is maintained that improved banking locations must be acquired. The resulting bank would begin operations on a sound basis. Certain improvements in services afforded the community would be made practicable by the proposed merger, including the installation of an on-line EDP deposit ac counting system such as employed by considerably larger competing mutual savings banks. There would also be gained an increased capacity to handle large real estate loan requests. Various economies are expected to accrue to the resulting bank which would tend to strengthen dividend-paying ability and competitive power. This proposal would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 17 Industrial Valley Bank and Trust Company Jenkintown, Pennsylvania to merge with The Elkins Park National Bank Elkins Park Banking Offices In operation To be operated 251,589 28 29 4,443 1 S u m m a ry repo rt by A tto rn e y G e n e ra l, M ay 8 , 1 9 6 7 This is a proposal to merge the single-office Elkins Park National Bank (“ El kins National"), located 10 miles north of Philadelphia, with Industrial Valley Bank and Trust Company ( “ Industrial Valley"), which operates 28 offices in Philadelphia, Montgomery, Chester, and Delaware counties. The two banks appear to be in direct competition. Their head offices are only 2 miles apart in neighboring communities in Montgomery County and Industrial Valley has six other offices within the primary service area of Elkins National. This existing competition would be eliminated by the merger; nevertheless, the adverse effect would be considerably mitigated by the presence in the area of a considerable number of other banks, including branches of the large Philadel phia-based banks. The merger would also involve some relatively slight increase in banking concentration. Elkins National has 0.7 percent of the IPC demand deposits in Montgomery County and less than 0.1 percent of such deposits in the Philadel phia Metropolitan Area. Industrial Valley (whose figures are not broken down by branch) would appear to hold between 10 and 15 percent of the IPC demand deposits in Montgomery County and 2.9 percent of such deposits in the Phila delphia Metropolitan market as a whole. B a s is fo r C o rp o ratio n ap p ro val, M ay 2 2 , 1 9 6 7 National is a $4.4 million single office bank located in Elkins Park, Pennsylva nia, which is experiencing serious liquidity, asset, capital, earnings and management problems. The bank's common capital is impaired substantially and its blanket bond has been terminated. The applicant is a well-managed, aggressive institution with resources of more than $200 million. Its main office at Jenkintown is in Montgomery County and about 12 miles north from down town Philadelphia; it operates a total of 28 offices in four southeastern Pennsyl vania counties. Elkins Park is about 2 miles from Jenkintown and within applicant's service FEDERAL DEPOSIT INSURANCE CORPORATION 60 area. There is little competition between the merging banks since their deposit and loan structures reflect major differences. Moreover, National's many serious problems lim it its effectiveness as a competitor. National and the applicant each face competition from numerous significantly larger commercial and mu tual savings banks. The relatively nominal increase in applicant's size and its acquisition of a branch in Elkins Park would have little competitive effect in the resulting service area. The Comptroller of the Currency has certified that an emergency condition exists and the Corporation finds it must act immediately in order to prevent the probable failure of National. The proposal would resolve National's problems and would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 18 The Sylvania Savings Bank Company Sylvania, Ohio to acquire the assets and assume the deposit liabilities of The Community Savings and Loan Association Sylvania Banking Offices In operation 41,818 7 8,919 2 To be operated 9 S u m m a ry rep o rt by A tto rn e y G e n e ra l, A p ril 3 , 1 9 6 7 The proposed merger involves acquisition by one of two commercial banks in Sylvania, Ohio, a suburb of Toledo, Ohio, of the assets of Sylvania's only sav ings and loan institution. Total deposits of the acquiring bank, Sylvania Savings, are $41.8 million and share accounts of the Community Savings and Loan Asso ciation amount to $8.7 million. Both institutions operate branches in western Toledo, which is immediately adjacent to Sylvania, and they compete with branches of four major Toledo commercial banks and four major Toledo savings and loan institutions. The proposed merger would eliminate some competition with respect to time deposits and mortgage loans, which are the only services which both institu tions offer; the areas which would be most immediately affected are Sylvania and the western part of Toledo. The two institutions are nevertheless not major factors in either product market, and the resulting increase in concentration would not be substantial. B a s is fo r C o rp o ratio n ap p ro val, Ju n e 13, 1 9 6 7 The proposed purchase and assumption transaction would combine Sylvania Bank, a $41.8 million commercial bank headquartered in Sylvania, Ohio, with seven offices in the Sylvania-Toledo, Ohio area, and an $8.9 million Sylvania savings and loan association which has one branch in Toledo. Association's main office will serve as the mortgage department and trust department of the resulting bank. Its present branch will be closed at expiration of a six-m onth transition period following consummation of the proposal. The branch is about one block from an office of Sylvania Bank and its closing will cause no incon venience to customers in that vicinity. Competition between the participating institutions is limited to mortgage loans and time deposits. There is no competition between them with respect to the numerous other commercial banking activities. Moreover, the degree of competition between Sylvania Bank and Association is curtailed by their close relationship through common ownership and long-existing common manage ment. BANK ABSORPTIONS APPROVED BY THE CORPORATION 61 Sylvania is a fast-growing suburb of the highly industrial City of Toledo in Lu cas County, Ohio. Competition for both participating institutions is furnished primarily by five other commercial banks and four other savings and loan asso ciations which operate numerous offices in and near Toledo. Sylvania Bank is the fifth largest of the commercial banks and Association is by far the smallest savings and loan association in the Sylvania-Toledo service area. The $8.5 m il lion total deposits of Association to be assumed would raise Sylvania Bank’s po sition to fourth but it would continue to face competition from three substan tially larger banks which hold total deposits ranging between $150 million and $400 million and four savings and loan associations holding withdrawable bal ances ranging between $70 million and $200 million. The increase in Sylvania Bank's size would have no significant effect on competition in the service area. Association has experienced net deposit losses in recent years and its future prospects for growth and earnings appear to be limited. This proposal would re solve these problems. Association's customers will continue to receive generally the same mortgage loan and time deposit services which were available at As sociation plus the numerous additional services offered by a commercial bank. There will remain 21 offices of the other savings and loan associations in the Sylvania-Toledo area which would be accessible to any customers of Association who may prefer to deal with a savings and loan association. The proposal would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Resources (in thousands of dollars) No. 19 Western Bank Coos Bay, Oregon to merge with Bank of Illinois Valley Cave Junction B anking Offices In operation 21,934 6 2,965 1 To be operated 7 S u m m a ry repo rt by A tto rn e y G e n e ra l, M arch 2 4 , 1 9 6 7 The proposed merger of the Western Bank ( “ Western Bank"), Coos Bay, Ore gon (total deposits $19.9 m illion), and the Bank of Illinois Valley ("Illin o is Val ley"), Cave Junction, Oregon (total deposits $3.0 m illion), involves two banks operating in essentially different banking markets; their head offices are 145 miles apart in nonadjacent counties; and Western Bank's nearest branch to Illi nois Valley’s only office is about 40 miles away and in a different county. In Josephine County, Illinois Valley holds about 7 percent of total IPC demand deposits; in Coos County and Curry County, together, Western Bank holds about 20 percent of total IPC demand deposits. It appears unlikely that there is any present direct competition between the merging banks. There are no common depositors or borrowers. Each bank operates in what would appear to be essentially distinct service areas, involving separate counties, with a dis tance between nearest offices of 40 miles. We conclude that the proposed merger would not adversely affect competi tion. B a s is fo r C o rp o ratio n ap p ro val, J u ly 2 7 , 1 9 6 7 Western Bank, Coos Bay, Oregon, a State nonmember bank, with total depos its of $19.6 million, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to merge with Bank of Illinois Valley, Cave Junction, Oregon (Valley), a State non member bank which has total deposits of $2.7 million. The banks would merge under the charter and title of applicant, and as an incident of the merger the 62 FEDERAL DEPOSIT INSURANCE CORPORATION sole office of Valley would become a branch of applicant, increasing the number of its offices to seven. Competition. Applicant's six offices are located in five communities spanning about 118 miles along the southern coastline of the State of Oregon. The site of the main office and one branch is the deepwater port of Coos Bay, estimated population 13,800. Valley's sole office is situated in the southeastern Oregon community of Cave Junction, population 330. This Josephine County community is located in the Siskiyou Mountains, 14 miles north of the California bound ary. Valley's sole office is 75 road miles to the east of applicant's nearest branch, at Brookings, in adjacent Curry County, and there is nothing to indicate any competition existing between the merging banks. Valley's nearest competi tors are situated to the northeast at Grants Pass, 30 miles distant. Four of the five communities in the two-county area now served by the of fices of the applicant have at least one competing bank office. The principal competitors of each of the merging banks are the State's two banking giants which in aggregate hold by far the major portion of its banking business. The resulting bank, which would serve a three-county area, would have less than 15 percent of the total deposit volume in the resulting service area. The merger would have no adverse effects on competition. Financial and managerial resources and prospects. The banking factors are favorable with respect to each of the merging banks, as they would be with respect to the resulting bank. Convenience and needs of the community to be served. The merger would not have a substantial effect on the convenience and needs of the areas now served by applicant but it would benefit Cave Junction by providing larger lend ing limits, and that form er Valley office will have available to it management depth, audit services and sim ilar benefits which the larger institution can pro vide. Conclusion. The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner, be in restraint of trade, and would benefit the banking convenience and needs in the Cave Junction area. No. 20 American Bank and Trust Co. of Pa. Reading, Pennsylvania to merge with Myerstown Bank and Trust Company Myerstown Resources (in thousands of dollars) Banking Offices In operation To be operated 310,749 17 19 24,814 2 S u m m a ry repo rt by A tto rn e y G e n e ra l, F e b ru a ry 2 3 , 1 9 6 7 American Bank and Trust Co. of Pa. ( “ American") is the largest bank in Berks County and adjacent counties of Lebanon, Lancaster, and Schuylkill, an area within which branching by banks with head offices in Berks is permitted by State law. As of November 30, 1966, American had assets of $298,445,000 and deposits of $262,852,000. Myerstown Bank and Trust Company, Myerstown, Lebanon County, Pennsylvania (“ Myerstown Bank") as of November 30, 1966, had assets of $24,006,000 and deposits of $21,031,000. Within the service area of Myerstown Bank (Lebanon County) there are 10 banking offices holding between them $163 million of deposits (as of June 30, 1966). The three largest banks, combined, in Lebanon County (including the Myerstown Bank) accounted for slightly over half the total county deposits. Alone, the Myerstown Bank accounted for approximately 12 percent of total county deposits, and is the third largest bank in the County. BANK ABSORPTIONS APPROVED BY THE CORPORATION 63 The acquiring bank (American) derives only a very small amount of demand deposits ($27,000) from within Lebanon County, constituting a negligible share of total county deposits (about .03 percent); its loans to Lebanon County cus tomers ($1.4 m illion) comprise the higher but still small proportion of about 1 percent of total county loans. It may be concluded that the present degree of competition between the American and Myerstown Banks is probably not signifi cant. However, the proposed merger will eliminate all future potential competition between these two banks. American is by far the largest bank in the four-county area. It has grown to a considerable extent by the merger process. In expanding from $5 million of deposits in 1929 to $263 million currently, American has ac quired $67 million, or approximately 25 percent by absorbing other banks. Some $45 million of deposits have been acquired in six mergers since 1960. Lebanon County is surrounded by the area presently served by American. If this merger is not approved, therefore, Arperican would be the most likely entrant into Lebanon County by de novo branching or by merger with a smaller bank in the area. Moreover, if this merger is authorized, further acquisitions involving other in dependent banks within the area may be stimulated, and there are indications that this process of consolidation has already commenced. If, however, any reason exists to warrant elimination of Myerstown Bank by merger— and none is apparent on the facts presented— less anticompetitive al ternatives are available. The Bank’s directors state, "The bank has been approached by several institutions [to merge].” B a s is fo r C o rp o ratio n ap p ro val, J u ly 2 7 , 1 9 6 7 American Bank and Trust Co. of Pa., Reading, Pennsylvania (applicant), a State nonmember bank with total deposits of about $275.4 million, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insur ance Act, for the Corporation's prior approval to merge with Myerstown Bank and Trust Company, Myerstown, Pennsylvania (Myerstown Bank), a State mem ber bank which has total deposits of about $21.6 million. The banks would merge under applicant's charter and as an incident to the merger the two of fices of Myerstown Bank would become branches of the applicant, increasing the number of its offices to 19. Competition. Applicant is headquartered in Reading (population 98,177), the principal city and seat of Berks County, Pa. Eleven of its branches are located in Reading and general vicinity, three are in Schuylkill County, north of Berks, and two are in Lancaster County, southwest of Berks. Both offices of Myerstown Bank are located in Myerstown (population about 3,300), Lebanon County, west of Berks. They are 21 miles distant from West Reading, site of applicant’s clos est office. Six offices of other banks are located in the intervening area, includ ing four offices of the $114.5 million deposit Peoples Trust City Bank, Reading, Pa., and an office of the $84.6 million deposit Reading Trust Co. The applicant derives only a very small portion of its demand deposits and loans from Lebanon County and existing competition between it and Myerstown Bank is not significant. The latter competes primarily with 10 other banks w ith in 15 miles of Myerstown. Since Myerstown Bank is located about 3 miles from the Berks County line, it has some Berks County business, e.g., about 12 per cent in demand deposits and a somewhat larger percentage in loans. Its largest competitor is the Berks-based Peoples Trust City Bank. Myerstown Bank also re ceives competition from two larger banks located in the City of Lebanon, about 6 1/ 2 miles west of Myerstown. Applicant has been expanding over the years and could legally apply to es tablish a de novo branch in Myerstown Bank’s area. But it is not clear that applicant could obtain regulatory approval for such a branch. According to ap plicant, it has attempted to branch de novo where it believed this feasible but there is no area in western Berks County and eastern Lebanon County which lacks a convenient banking facility. In February, 1967, the State denied appli FEDERAL DEPOSIT INSURANCE CORPORATION 64 cant's request to establish a de novo branch in Chester County, and earlier, in September, 1965, denied its request for such a branch in the City of Lancaster. Myerstown Bank, on the other hand, claims to be interested not in expanding into other areas but in merging with a substantially larger bank, primarily be cause of the loss of business accounts whose credit needs have outstripped its loan limits. Even if applicant succeeded in penetrating the Myerstown area de novo, the result could be to worsen this situation rather than produce signifi cant competition between the merging institutions. Myerstown Bank indicates it decided to confine its merger discussions to applicant because of the sim ilarity of their loan policies in promoting local economic welfare, and it is a fact that applicant has a good record in this respect. In view of the foregoing circum stances, it does not appear that this merger is likely to foreclose any meaning ful potential competition. The merger would increase applicant’s share of the deposits in the resulting bank's service area by 1.1 percent, giving it 17 percent of the aggregate. While applicant is the largest bank, there are 70 other banks in the service area and some of these are sizable competitors. So are the out-of-area banks which solicit the prosperous local industries and commercial establishments. No objections to the merger were offered during the field interviews with banking officials, which included the Myerstown area where any harmful impact of this proposal would be mainly felt. The merger would have no significant adverse effects on competition. Financial and managerial resources and prospects. The banking factors are favorable with respect to the merging banks as they would be with respect to the resulting bank. Convenience and needs of the community to be served. Applicant is a well managed, progressive bank with a good record of service to the community, particularly in providing financial and other support for industrial diversification and expansion. The principal effect of the merger on convenience and needs would be to bring to the Myerstown area banking credit ample fo r its require ments. The economy of the area is prospering and its outlook is favorable, with existing industries developing rapidly and others seeking plant locations. As noted, the credit needs of a number of firms have surpassed Myerstown Bank's capabilities. Applicant would also offer the area generally more complete bank ing and fiduciary services, including electronic data processing facilities. Conclusion. The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade, and would benefit the banking convenience and needs in the Myerstown area. Resources (in thousands of dollars) No. 21 The Delaware County Bank Delaware, Ohio to merge with The Ostrander Banking Company Ostrander B anking Offices In operation 14,082 3 1,835 1 To be operated 4 S u m m a ry rep o rt by A tto rn e y G e n e ra l, M ay 9 , 1 9 6 7 The Delaware County Bank, with two offices in the town of Delaware and one office in the town of Galena, 12 miles east of Delaware, proposes to merge with the Ostrander Banking Company. The latter is located in the small comm unity of Ostrander, 8 miles southwest of the town of Delaware. The proposed merger will eliminate some existing competition between the two banks, whose main offices are 8 miles apart in what still is a rural part of the county. BANK ABSORPTIONS APPROVED BY THE CORPORATION 65 There are three banks competing in Delaware County: Delaware Bank, Ostran der Bank, and The First National Bank of Delaware (also in the town of Dela ware). Thus, the merger would reduce the total number of commercial banks in the county from three to two. It would also increase concentration in banking resources in Delaware County. Delaware Bank already holds about 38 percent of the total IPC demand deposits in the county, and the proposed merger with Ostrander Bank would add another 5.5 percent to its market share. After the merger, it and The First National Bank of Delaware would have all the county’s IPC deposits. B a s is fo r C o rp o ratio n ap p ro val, J u ly 2 7 , 1 9 6 7 The Delaware County Bank, Delaware, Ohio (applicant), an insured State non member bank with total deposits of $13.1 million, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge The Ostrander Banking Company, Ostran der, Ohio (Ostrander Company), an insured State nonmember bank which has total deposits of $1.6 million. The banks would merge under the charter and title of applicant and as an incident of the merger the sole office of Ostrander Company would become a branch of applicant, increasing the number of its o f fices to four. Competition. Ostrander Company is 8 miles from applicant’s nearest office, at Delaware to the east, and the same distance from banking offices in Marys ville, Ohio, to the west. Ostrander Company's service area extends in a radius about 4 miles from Ostrander and adjoins those of the Delaware and Marysville bank. Competition between the participating banks is not substantial, nor apt to become so. Applicant's two Delaware, Ohio offices are in direct competition with three of fices of The First National Bank of Delaware, a $25 million affiliate of BancOhio Corporation, a registered bank holding company with 23 banks in Ohio having total resources of about $900 million. First National's Sunbury, Ohio office is only 2 miles distant from applicant’s Galena branch. Another BancOhio affiliate is located in Marysville, Ohio. Some additional, but less significant, competition stems from the northern portion of Franklin County where offices of large banks headquartered in Columbus, Ohio are located. The resulting bank will compete with banks in Delaware County as well as those with nearby offices in the counties adjoining Delaware to the east, west and south. The relevant service area is considered by the Corporation to include 19 banking offices, nine in Delaware County, six in Franklin County and two each in Union and Licking Counties; the resulting bank would be the sixth larg est of the 11 banks operating such offices. Applicant’s share of the area depos its would increase from about 15 to 17 percent, and the resulting bank would rank third in area deposit volume. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources and Prospects. The banking factors are favorable with respect to each of the merging banks. These factors with respect to the resulting bank would likewise appear to be favorable, subject to strength ening the bank's capital as set forth in the final paragraph of the accompanying order. Convenience and Needs of the Community. The resulting bank will have a lending lim it of $85,000 as opposed to $60,000 for the applicant, and this higher lim it would benefit the Delaware community. It would also to some extent benefit the Ostrander community in meeting an indicated need for increased credit capacity to serve the larger farm operations and sizable residential m ort gage customers. This need could be accentuated if the population growth from Franklin County (Columbus), now under way in southern Delaware County, be comes more significant in the Ostrander area. 66 FEDERAL DEPOSIT INSURANCE CORPORATION Resources (in thousands o f dollars) No. 22 W illimantic Trust Company Willimantic, Connecticut to merge with County Bank and Trust Company of Danielson Danielson Banking Offices In operation 21,651 2 3,409 1 To be operated 3 S u m m a ry repo rt by A tto rn e y G e n e ra l, J u n e 2 0 , 1 9 6 7 The Willimantic Trust Co. proposes to merge with the County Bank and Trust Co., of Danielson. The two banks are located in towns 22 miles apart in Wind ham County in northeastern Connecticut. The 1960 population of Windham County was 56,223, and that of the towns of Willimantic and Danielson 13,881 and 4,642, respectively. The Connecticut Development Commission projects a doubling of population by the year 2000. Windham County has five banks with nine banking offices. In both Willimantic and Danielson the only banking alternative to the applicants are two branches of Connecticut Bank and Trust Co., the State's second largest bank. There are no other banks in the 22 miles between the two communities, which are con nected by U.S. Route 6. These two banks are 22 miles apart in different communities in Windham County. However, because there are no other banks in the intervening area (ex cept for the two branches of Connecticut Bank and Trust), the proposed merger may eliminate some direct competition between Willimantic Trust and County. Willimantic Trust now holds 20.5 percent of total deposits within Windham County and its acquisition of County would increase its market share by 4.0 per cent. (It is not possible to calculate the market shares in terms of IPC demand deposits because W illimantic Trust failed to include separate branch allocation of such deposits.) B a s is fo r C o rp o ratio n ap p ro val, A u g u st 4 , 1 9 6 7 Willimantic Trust Company, Willimantic, Connecticut (applicant), an insured State nonmember bank with total deposits of about $19,710,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with County Bank and Trust Company of Danielson, Danielson (Town of Killingly), Connecticut (County Bank), an insured State nonmember bank which has total deposits of about $2,978,000. The banks would merge under the charter and with the title of the applicant, and as an incident of the merger, the sole office of County Bank would become a branch of the applicant, increasing the number of its offices to three. Competition. Applicant is headquartered in Willimantic (population about 14,400) and operates one branch in Storrs, 9 miles north of the main office. County Bank's office is located in Danielson (population 4,642), 20 miles north east of Willimantic. The primary service areas of the merging banks are sep arate but contiguous. The 20 miles intervening their offices are sparsely populated and neither bank derives an appreciable amount of business from the other's service area. No significant competition exists between them, nor is there any reasonable potential for such competition indicated by the record. Both banks compete directly in their main office communities with branches of the State's largest commercial bank. Additional competition is furnished by a mutual savings bank in each of the communities of Willimantic and Danielson. The State's largest bank holds 61.5 percent of the IPC demand deposits held by the seven bank offices in the resulting service area. Following the merger, applicant would hold 37.4 percent of such deposits. With respect to IPC tim e 67 BANK ABSORPTIONS APPROVED BY THE CORPORATION deposits, the resulting bank would be the smallest and hold 20.2 percent of the aggregate. Applicant would operate three of the seven banking offices. The effect of the proposed merger on competition would not be adverse. Financial and managerial resources and prospects. These factors are favora ble with respect to the resulting bank, as they have been with respect to appli cant. County Bank, which was opened in 1962, experienced some initial losses but in general its financial condition and management have been regarded as satisfactory. Convenience and needs of the community to be served. The principal effect of the merger on banking needs and convenience would be in Danielson. Applicant would provide a significantly larger lending limit, and in general more complete and convenient banking services, including trust services which are not presently available at County Bank. The larger loan lim it would benefit the improving economy in the Town of Killingly. Conclusion. The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade, and would benefit the banking convenience and needs in the Danielson area. Resources (in thousands of dollars) No. 23 Wilmington Savings Fund Society Wilmington, Delaware to acquire the assets and assume the liabilities of Brandywine-Mechanics Savings and Loan Association Wilmington Banking Offices In operation 223,176 6 3,016 1 To be operated 7 S u m m a ry repo rt by A tto rn e y G e n e ra l, M arch 2 , 1 9 6 7 Wilmington Savings Fund Society is the larger of the two mutual savings banks that are presently located in the State of Delaware. It has assets of $218.6 million and operates six offices, four of which are in or close to the city of Wilmington. The Brandywine-Mechanics Savings and Loan Association has as sets of $3.2 million and operates one office in the City of Wilmington, a little over one mile from Wilmington Savings Fund Society's head office and some what less than a mile from one of the latter's branches. It appears from the application that there is considerable existing competi tion between these institutions, particularly with respect to mortgage loans. It also appears that Wilmington Savings Fund Society would like to have an office in the Brandywine-Mechanics service area and might open a de novo branch therein absent this transaction. On the other hand, the directors of Brandywine-Mechanics have allegedly de cided that their institution will “ merge, consolidate or in some other way cease to exist in its present fo rm ." From the competitive standpoint, it might be preferable for Brandywine-Mechanics to be purchased by or merge with the smaller of the State's mutual savings banks or with one of the smaller savings and loan associations. B a s is fo r C o rp o ratio n ap p ro val, A u g u st 4 , 1 9 6 7 Wilmington Savings Fund Society, Wilmington, Delaware, (Society) with total deposits of about $193 million, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to acquire the assets and assume the liabilities of BrandywineMechanics Savings and Loan Association, Wilmington, Delaware (S & L), which has total share accounts of about $2.7 million. As of the effective date of the sale, the share accounts of seller, including serial, full paid, and instalment full 68 FEDERAL DEPOSIT INSURANCE CORPORATION paid, will be converted to deposit accounts of the buyer without loss of interest a n d /o r earnings. The resulting bank would be under the charter and title of Wil mington Savings Fund Society. As an incident to the transaction, the sole office of S & L would become a branch of Society, increasing the number of its offices to seven. Competition. The main office and one branch of Society are located within the city limits of Wilmington; two of its branches are located in the city's sub urbs and the remaining two are in Dover and Newark, outside the Wilmington trade area. S & L's sole office is located in an industrial-residential section in the northwestern part of Wilmington, an area which has experienced steady population decline. Society's branch at 3rd and Union Streets in Wilmington is slightly less than one mile distant from S & L and its main office is a little over a mile away. The records of S & L indicate that the bulk of its accounts originate within one-half mile of its office. There are no other financial institutions within this area, however, one commercial bank operates a branch 0.7 of a mile distant and has received approval to establish another two blocks distant from S & L. Within a radius of i y 2 miles of S & L there are seven other savings and loan associations, the main office and the 3rd and Union Streets branch of Society and four operating commercial bank offices. About 4.5 percent of Society's de posit accounts bear addresses located in S & L's service area, however, these accounts are principally carried at the main office of Society and would appear to evidence the convenience of that location to the depositors' place of busi ness rather than a degree of competition between Society and S & L. S & L is the fourth smallest of the 10 savings and loan associations in the City of Wilmington and after several years of negligible growth, is experiencing a decline. Its directors have indicated that the organization will definitely merge, consolidate, or in some other way cease to exist in its present form. Society, on the other hand, is a well established institution with a record of consistent growth and sound operation. It would increase in size only nominally as the re sult of this proposal. Competition between the participating institutions is not significant, nor apt to become so if they did not merge. The Board of Directors is of the opinion that the proposed transaction would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources and Future Prospects. While Society’s re cord under these factors is favorable, S & L is experiencing a decline in its share accounts, its surplus (capital) protection is below generally accepted standards and the prospects for increasing it are poor. Its management, while capable of operating on the present scale, has made no provision for succes sion and is determined to withdraw from the field of competition. The resulting bank would be satisfactory under all these factors. Convenience and Needs of the Community. The subject transaction would have little effect on the services offered to the community. S & L’s office would continue in operation but as a branch of a larger and much stronger savings in stitution and there would be no reduction in the services offered the community by such institutions. No. 24 Peoples Trust City Bank Reading, Pennsylvania to merge with The Farmers National Bank and Trust Company of Boyertown Boyertown Resources (in thousands of dollars) In operation To be operated 138,415 11 13 17,256 2 Banking Offices BANK ABSORPTIONS APPROVED BY THE CORPORATION 69 S u m m a ry repo rt by A tto rn e y G e n e ra l, M arch 13, 1 9 6 7 Peoples Trust City Bank (“ Peoples") is the second largest bank in Berks County, Pennsylvania. Its head office and two branches are located in Reading, which is the commercial and industrial center of Berks County; it also has four branches in the Reading suburbs, and four other branches located elsewhere in the county. The Farmers National Bank & Trust Company of Boyertown ( “ Farm ers"), Boyertown, Pennsylvania, is one of two banks serving a small community, and its surrounding rural area, located about 15 miles east of Reading, in Berks County. The distance between Farmers and the closest branch of Peoples is ap proximately 10 miles. The proposed merger would eliminate a certain amount of direct competition, particularly in the market for industrial and commercial loans, where Farmers has been active. Also, the proposed merger would significantly increase Peoples’ share of the already concentrated Berks County market, where Peoples and the largest bank together have more than 75 percent of total deposits. Peoples has total IPC de mand deposits of $39.2 million and Farmers has $4.2 million in such deposits. These represent 24.4 percent and 2.6 percent, respectively, of the $160.1 m il lion in total IPC demand deposits for the county as a whole, as reported in the most recent published study. Although the distance between the two banks and the proximity of Boyertown to Montgomery County (in which the major Philadelphia banks have branches) indicate that the foregoing market shares may overstate somewhat the competi tive significance of the proposed Peoples-Farmers merger, we think it plain that the proposed merger would increase in concentration an already highly concen trated banking market. The application reveals no compelling countervailing considerations; Farmers is plainly a well managed and profitable bank, which has been able to serve the needs of its customers directly or through participa tion loans. B a s is fo r C o rp o ratio n ap p ro val, S e p te m b e r 8 , 1 9 6 7 Peoples Trust City Bank, Reading, Pennsylvania (applicant), an insured State nonmember bank with total deposits of about $124 million, has applied, pur suant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to merge with The Farmers National Bank and Trust Company of Boyertown, Boyertown, Pennsylvania (Farmers), which has total deposits of about $15 million. The banks would merge under the charter and title of applicant, and as an incident thereof, the two offices of Farmers would become branches of applicant, increasing the number of its offices to 13. Competition. Seven of applicant's 11 offices, including the main office, are lo cated in Reading, Pennsylvania, population 98,000, or its immediate vicinity. The remaining offices are located to the west, northwest and southeast of Read ing. All of applicant's offices are within Berks County. Farmers’ main office is situated at Boyertown, population 4,000, 14 miles east of Reading and just in side the eastern boundary of Berks County. Farmers' branch is located about 1.5 miles east of Boyertown just inside Montgomery County. The nearest offices of the merging banks are the main office of Farmers and the Birdsboro branch of applicant. They are 12 miles apart, not directly connected by highway, and intervened by offices of other banks. Existing competition between the merging banks, if any, is nominal and there appears to be no reasonable potential for significant competition between them. Applicant competes directly with 13 offices of a Reading-based bank morethan twice applicant's size. This bank would hold 39.2 percent, or the greatest proportion of the deposit volume held by the banks operating within the result ing service area, and the resulting bank would hold 21.2 percent. Farmers’ principal competitor is a Boyertown-based bank whose deposit volume is double that of Farmers. Farmers also receives competition from three sizable Philadel 70 FEDERAL DEPOSIT INSURANCE CORPORATION phia area banks which operate nine offices in the Pottstown area, 6 miles south of Boyertown. Applicant's 2.4 percent gain in deposits would not signifi cantly alter the competitive picture in the resulting service area. Wnile banking in that area is somewhat concentrated, 12 other banks operate 40 offices in the area. Several of these banks are large and formidable competitors. There is also substantial competition from nonbank institutions as well as some competition from out-of-area banks. The resulting bank would be the fifth largest serving the overall trade area and its presence in Boyertown should stimulate competition. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and managerial resources and prospects. These factors are favora ble with respect to applicant, as they will be with respect to the resulting bank. While the financial and managerial resources of the merging bank, Farmers, are satisfactory, its future prospects are clouded to some extent by its inability to meet the larger credit requirements of a growing comm unity with consequent adverse effect on its demand deposit volume. Convenience and needs of the community. The merger would have little im pact on the convenience and needs of the area now served by applicant, but should significantly benefit the area served by Farmers by providing much greater credit to meet the needs of the area's larger business and industrial concerns. In addition, the applicant with its computer services and generally more complete banking and fiduciary services, would enhance the banking facil ities in Boyertown. For these reasons and on the basis of the above information and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. Resources (in thousands of dollars) No. 25 The Hartford Bank Hartford, Kentucky to merge with The Farmers Bank Centertown Banking Offices In operation 4,954 1 1,085 1 To be operated 2 S u m m a ry rep o rt by A tto rn e y G e n e ra l, J u n e 2 9 , 1 9 6 7 The proposed merger would combine two of the six commercial banks operat ing in Ohio County in West Central Kentucky. The proposed merger would elim i nate some direct competition between the applicant banks and would reduce the number of commercial banking alternatives from six to five. The bank which would be eliminated by this merger is presently the county's smallest commer cial bank. The acquiring bank holds 22 percent of the county’s IPC demand deposits and the acquired bank 6 percent. B a s is fo r C o rp o ratio n ap p ro val, O cto b er 12, 1 9 6 7 The Hartford Bank, Hartford, Kentucky (applicant), an insured State non member bank with total deposits of $4,539,000, has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with The Farmers Bank, Centertown, Kentucky (Farmers), an insured State nonmember bank which has total deposits of $1,012,500. The banks would merge under the charter and with the title of the applicant, and as an incident to the merger, the sole office of Farmers would become a branch of the applicant, increasing the number of its offices to two. Competition. Applicant is located in Hartford (population 1,618), the seat of 71 BANK ABSORPTIONS APPROVED BY THE CORPORATION Ohio County. Farmers’ office is located 6 miles southwest in Centertown (popu lation 327). Applicant’s influence extends throughout the county and encompasses the service area of Farmers which consists of a small area around Centertown in the southwestern corner of the county. However, there is no sig nificant competition between the merging banks. They have been commonly owned and managed for about 15 years and the possibility of competition de veloping between them in the future is limited not only by this but by the size and nature of the Centertown area. This area has been declining in population and appears too small in deposit potential to continue to support a viable unit bank. Applicant’s principal competitor is a bank in Beaver Dam which is the largest bank in the county and located 4 miles southeast. Applicant would remain sec ond in size in the county and would have $5.2 million IPC deposits following consummation of the proposal. The Beaver Dam bank has IPC deposits of $6.3 million. The addition of $1 million to applicant's present IPC deposit size would cause little change in competition throughout the county since the merging banks have operated under the same ownership and management for many years. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are favora ble with respect to the resulting bank as they have been with respect to the ap plicant. The financial and managerial resources with respect to Farmers are satisfactory, however, its future prospects as a unit bank are unsatisfactory because of its inadequate lending lim it of $12,000, deposit growth potential and the burden on its earnings which has been imposed by the recent increase in time deposit interest rates. Convenience and Needs of the Community to be Served. There would be some benefit to the convenience and needs of the comm unity now served by the applicant in that increased lending capacity would be available. The Center town area would benefit by the availability of additional and improved deposit and loan services directly in the community. For these reasons and on the basis of the above information and other infor mation available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. No. 26 Banco Popular de Puerto Rico San Juan, Puerto Rico to acquire a portion of the assets and assume a portion of the deposit liabilities of Chemical Bank New York Trust Company New York, New York Resources (in thousands of dollars) In operation To be operated 397,838 58 58 5,149 2 Banking Offices 1 S u m m a ry repo rt by A tto rn e y G e n e ra l, O cto b er 1 3, 1 9 6 7 This transaction will result in the purchase by Banco Popular of Chemical's lease on banking facilities located at 90 Delancey Street in Manhattan, together with the bulk of that branch office's assets and deposit liabilities. Banco will transfer its banking operation now conducted at 111 Essex Street (one block away) to the Delancey Street location. At the same time, Chemical’s banking operation in this now predominantly Spanish-speaking area will be closed. Because of the relative nearness of the two banks to each other, it is probable 72 FEDERAL DEPOSIT INSURANCE CORPORATION that direct competition exists between them, and this competition would be foreclosed by consummation of the instant transaction. However, we do not be lieve that the transaction would adversely affect over-all area competition, nor do we think that its consummation would result in a significant increase in area concentration. B a s is fo r C o rp o ratio n ap p ro val, O cto b er 13, 1 9 6 7 Banco Popular de Puerto Rico, San Juan (Hato Rey), Puerto Rico (applicant), an insured nonmember bank with total deposits of about $345 million, has ap plied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to purchase a portion of the assets and assume the liability to pay a portion of the deposits made in the 90 Delancey Street branch of Chemical Bank New York Trust Company, New York (Manhattan), New York (Chemical), which has total deposits of about $6.3 bil lion including $6.5 million in deposits at the branch. As an incident of the pro posed transaction, the present office of applicant at 111 Essex Street would be closed. Its operations would be relocated to the 90 Delancey Street branch of Chemical and there would be no change in the existing number of applicant's offices. Competition. Applicant’s Essex Street branch and Chemical’s Delancey Street office are 150 feet apart in the Lower East Side section of the Borough of Man hattan in New York City. The population of the service area was 50,473 in 1960. Applicant operates two other branches in Manhattan, one in the Bronx, 42 permanent branches in Puerto Rico and 6 mobile units serving 11 locations on the Island, for a total of 58 outlets, including the main office. Chemical oper ated a total of 139 offices on June 30, 1967. Its main office and 76 of its branches are located in Manhattan. There are seven banking offices of six other commercial banks and two branches of a mutual savings bank located in the area served by the participat ing banks’ branches involved in the proposal. The neighborhood is predomi nantly Puerto Rican and applicant’s branch is eminently suited to compete for the business of this segment of the population. Chemical’s Delancey Street branch deposits have leveled off since 1962 and it apparantly is not competing effectively in this service area. Competition between the participating banks' branches involved in the proposal would not appear to be substantial. More over, relative to the total competition generated among the bank offices in the service area, the elimination of Chemical’s branch as a competitor would not substantially reduce overall competition. Applicant’s Essex Street branch would assume about $5.1 million in IPC de posits held by Chemical’s Delancey Street branch and the resulting office would hold 11.8 percent of the aggregate IPC deposits held by the eight commercial banking offices remaining in the service area. Two large New York banks, with total deposits of $4 billion and $6 billion, each hold 29.1 percent of the IPC de posits through their three branches in the area. Applicant's branch would hold the fourth largest proportion of IPC deposits and the applicant would be the fifth largest commercial bank represented there. The remaining four largest commercial banks having branches in the area hold total deposits ranging be tween $1.0 billion and $11.0 billion. The Board of Directors is of the opinion that the proposed transaction would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are favora ble with respect to the applicant as they will be with respect to the resulting bank. The future prospects of Chemical’s Delancey Street branch are clouded to some extent by its apparent lack of deposit growth. Convenience and Needs of the Community to be Served. Discontinuance of bank operations at applicant’s Essex Street branch has been necessitated by condemnation proceedings of its property by the City of New York. Its reloca tion to a site only 150 feet distant should not cause significant inconvenience 73 BANK ABSORPTIONS APPROVED BY THE CORPORATION to its customers. The proposed branch and its Spanish-speaking staff will occupy a more prominent location from which to serve the predominantly Puerto Rican neighborhood. The number of bank offices in the area will be reduced by one, however, seven branches of six other commercial banks and two offices of a mutual savings bank will be located within the service area and within 2,000 feet of the proposed branch office. For these reasons and on the basis of the above information and other infor mation available to the Corporation, the Board of Directors has concluded that approval of the bank’s application is warranted. Resources (in thousands of dollars) No. 27 The Peoples Bank of South Carolina, Inc. Florence, South Carolina to merge with The Peoples Bank Lynchburg B anking Offices In operation 9,182 2 924 1 To be operated 3 S u m m a ry rep o rt by A tto rn e y G e n e ra l, J u ly 2 5 , 1 9 6 7 Peoples Bank of South Carolina ("Florence Bank") proposes to merge with Peoples Bank of Lynchburg ( “ Lynchburg Bank"). Florence Bank’s operations are centered in the City of Florence (population 24,722), which is the county seat of Florence County (population 84,438). The county is located in the northeastern portion of the State of South Carolina and is primarily an agricultural area, although industry is becoming increasingly im portant. The county has 10 banks with 22 banking offices; and Florence Bank has about 8.4 percent of the IPC demand deposits of such banks. Within the City of Florence itself, there are four banks with 11 offices: Florence Bank is the smallest of these in terms of total deposits— competing with four branches of The South Carolina National Bank of Charleston (total deposits, $378.3 m illion), two branches of The Citizens and Southern National Ban!' of South Carolina (to tal deposits, $203.5 million), and the head office and two branches of Guaranty Bank and Trust Company (total deposits, $22.1 m illion). Lynchburg Bank is located in Lynchburg (population 544), which is located in adjacent Lee County (population 21,832), about 20 miles southwest of Flor ence. Lynchburg Bank is the only bank in Lynchburg and the surrounding agricultural areas. Lee County, an area of declining population, has three bank ing offices operated by three banks; and Lynchburg Bank accounts for about 15 percent of the IPC demand deposits of these three banks. The offices of the two merging institutions are about 20 miles apart in differ ent counties. Since there is only one bank lying between the communities of Florence and Lynchburg, it may well be that the four Florence banks compete to some extent with Lynchburg Bank for business from the intervening area; nevertheless, the amount of direct competition between the merging banks would not appear to be substantial. While South Carolina law permits statewide branch banking, there is no evi dence that either of the merging banks (which appear to be the smallest institutions in their respective areas) is one of the most probable entrants into the market of the other by de novo branching. Therefore, in view of the size of the merging banks and the distance between them, we believe that any adverse effect on competition would be slight. 74 FEDERAL DEPOSIT INSURANCE CORPORATION B a s is fo r C o rp o ratio n ap p ro val, O cto b er 18, 1 96 7 The Peoples Bank of South Carolina, Inc., Florence, South Carolina (appli cant), an insured State nonmember bank, with total deposits of about $6.3 m il lion, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with The Peoples Bank, Lynchburg, South Carolina (Lynchburg Bank), which has total de posits of about $900,000. The banks would merge under the charter and title of applicant and as an incident thereof the sole office of Lynchburg Bank would become a branch of applicant, increasing the number of its offices to three. Competition. Applicant's main office and sole branch are located in Florence, South Carolina, population 24,700. Lynchburg Bank is located 20 miles south west of Florence in the farming community of Lynchburg, population 540. The two banks operate in separate and distinct service areas without apparent over* lap. There are no other banking offices in Lynchburg but Lynchburg Bank com petes against seven other banks with 11 banking offices, including a bank located almost midway between Lynchburg and Florence. Applicant competes against one other bank headquartered in Florence which has two in-town branches, as well as against three larger Charleston and Columbia based banks which operate a total of six branches in Florence and two in Darlington, 10 miles northwest of Florence, but within the trade area served by applicant There is little competition existing between the two participating banks which would be eliminated by their merger. Applicant holds 9.8 percent of the aggre gate deposits of its service area as compared with the 1.7 percent share held by Lynchburg Bank in its service area. Because of Lynchburg’s small size and history of decline, there appears to be no reasonable potential for significant competition between the two subject banks. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and managerial resources and future prospects. These factors are all favorable with respect to applicant as they would be with respect to the re sulting bank. Lynchburg Bank, on the other hand, is facing a management succession problem, inasmuch as the two dominant individuals in management are both over 70 years of age. Its future prospects, furthermore, are clouded by the rising cost of tim e deposits and the growing need to increase staff salaries to realistic levels. Convenience and needs of the community. The proposed merger would bring a wider range of banking services to the Lynchburg area including an increase in the legal lending lim it from $16,500 to $170,600. Local customers would get the benefit of generally higher rates of interest paid on tim e deposits and of ex changing checks on a par basis. Resources (in thousands of dollars) No. 28 Merchants State Bank Humboldt, Tennessee to merge with The Bank of Gibson Gibson Banking Offices In operation 11,933 3 970 1 To be operated 4 S u m m a ry repo rt by A tto rn e y G e n e ra l, Ju n e 2 7 , 1 96 7 Merchants State Bank of Humboldt, Tennessee, proposes to merge with The Bank of Gibson, Gibson, Tennessee. Both banks are located within Gibson County, Tennessee (population 44,699), which has 14 banks with 20 banking offices. BANK ABSORPTIONS APPROVED BY THE CORPORATION 75 The head offices of the two banks are 5 miles apart, with no other banks in the intervening area. Gibson Bank clearly competes with Merchants, as well as with the other two banks in Humboldt, and the proposed merger would elim i nate this competition with Merchants. Gibson was created by Merchants in 1903, and for many years Merchants has owned about 40 percent of Gibson's stock. This affiliation may in fact re duce the degree of actual competition between them. Concentration in commercial banking would be increased slightly by the pro posal. Within Gibson County, Merchants now has 17 percent of total county IPC demand deposits; its merger with Gibson Bank would add another 2 percent to its market share. B a s is fo r C o rp o ratio n ap p ro val, O cto b er 18, 1 9 6 7 Merchants State Bank, Humboldt, Tennessee (State Bank), an insured State nonmember bank with total deposits of about $11 million, has applied, pur suant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with The Bank of Gibson, Gib son, Tennessee (Merging Bank), also an insured State nonmember bank which has total deposits of about $900,000. The banks would merge under the charter and title of State Bank and as an incident thereof, the sole office of Merging Bank would become a branch of State Bank, increasing the number of its o f fices to four. Competition. Humboldt, Tennessee, the location of the main office and one branch of State Bank (its only other branch is at Rutherford, well outside the service area relevant to this proposal) is in the extreme southern part of Gibson County and has a population in excess of 10,000. The Town of Gibson, the lo cation of Merging Bank, is situated some 5 miles northeast of Humboldt, and is a small farming community with a population of about 300. The service areas of the participating banks overlap; however, competition between them is m ini mal. State Bank was instrumental in the founding of Merging Bank in 1903, and has since held in excess of 40 percent of that bank's outstanding stock. Merg ing Bank has been more of a satellite of State Bank than a competitor. The present concentration of deposits and loans in the service area and in Gibson County would be relatively undisturbed by this merger. State Bank pre sently has 18.9 percent of the IPC deposits and 23.7 percent of the loans in the service area. The resulting bank would have 20.8 percent and 24.3 percent of the IPC deposits and of the loans, respectively. There would continue to be vig orous competition from nine other banking offices in the primary service area, three of which combined hold 49.0 percent of the IPC deposits and 44.2 per cent of the loans. There is also considerable competition from nonbank institu tions in the area. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are favora ble with respect to State Bank, as they will be with respect to the resulting bank. When considering Merging Bank, the financial and managerial resources are satisfactory and its future prospects, although satisfactory also, are some what less favorable than State Bank, inasmuch as its size tends to circumscribe the services it is able to render. Convenience and Needs of the Community. The merger would have little im pact on the convenience and needs of the area now served by State Bank, but should benefit the community of Gibson through the resulting bank's ability to handle larger lines of credit and through the introduction of par banking and trust services on a local basis. Based on the foregoing and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. 76 FEDERAL DEPOSIT INSURANCE CORPORATION No. 29 Banco Popular de Puerto Rico San Juan, Puerto Rico to acquire the assets and assume the liabilities of Banco de San German San German Resources (m thousands of dollars) In operation To be operated 402,987 58 59 3,763 1 Banking Offices Approved under emergency provisions. No report requested from Attorney General. B a s is fo r C o rp o ratio n ap p ro val, N o vem b er 7 , 1 9 6 7 Banco Popular de Puerto Rico, San Juan (Hato Rey), Puerto Rico, an insured nonmember bank with total deposits of about $350.4 million, has applied, pur suant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to purchase the assets and assume the liability to pay deposits of Banco de San German, San German, Puerto Rico, an insured nonmember bank with total deposits of about $4.5 million. As an inci dent of the proposed transaction, the present sole office of the Banco de San German would become a branch of the resulting bank. Substantial shortages have been discovered in the accounts of the Banco de San German, far exceeding capital and reserves and destroying liquidity. The Board of Directors has found that it must act immediately in approving the ap plication to prevent the probable failure of the Banco de San German. Resources (in thousands of dollars) No. 30 Continental Bank and Trust Company Norristown, Pennsylvania to acquire the assets and assume the liabilities of Sonsitaly Bank and Trust Company Philadelphia B anking Offices In operation To be operated 443,476 39 40 5,705 1 S u m m a ry repo rt by A tto rn e y G e n e ra l, S e p te m b e r 2 6 , 1 9 6 7 The proposed transaction would combine the sixth largest commercial bank in the Philadelphia area, Continental, with one of the smallest commercial banks in that area, Sonsitaly. In the entire Philadelphia Standard Metropolitan Area, a market probably too broad for analysis in this particular case, the proposed merger would increase Continental’s share of total deposits from 4.7 to 5.3 percent, and its effect on concentration in this area would not be substantial. On the other hand, since the Tasker Street branch of Continental is directly adjacent to Sonsitaly’s sole office and is certainly the closest competitor, the proposed merger would eliminate considerable direct competition between these two banks for mortgage loans and certain deposit customers. B a s is fo r C o rp o ratio n ap p ro val, N o vem b er 7 , 1 9 6 7 Continental Bank & Trust Company, Norristown, Pennsylvania (Continental), an insured State nonmember bank with total deposits of about $383 million, has applied, pursuant to Section 18(c) and other provisions of the Federal De posit Insurance Act, for the Corporation's prior approval to acquire the assets 77 BANK ABSORPTIONS APPROVED BY THE CORPORATION and assume the liabilities of Sonsitaly Bank and Trust Company, Philadelphia, Pennsylvania (Sonsitaly), also an insured State nonmember bank, which has to tal deposits of about $5 million. The banks would effect this transaction under the charter and title of Continental and as an incident thereof the sole office of Sonsitaly would become a branch of Continental, increasing the number of its offices to 40. It also has one approved but unopened branch. Competition. Continental’s service area is located in the southeastern corner of Pennsylvania and consists of all of Philadelphia and Montgomery Counties and portions of four other counties contiguous to Montgomery County. The population of the service area is estimated to be in excess of 2.3 million. Sonsitaly’s service area, a section of South Philadelphia, contains 11 offices of six other commercial banks, including a Continental branch, 2 blocks from Sonsitaly. The resulting bank's share of the aggregate commercial bank depos its of this area would be fourth largest. Continental's nearest other office to Sonsitaly is i y 2 miles to the northeast and separated by a competing bank of fice. Competition between Continental's local branch and Sonsitaly is minimized by the limited range of services that Sonsitaly offers. Its three basic services are checking accounts, savings accounts, and residential mortgage loans and even these limited services are offered principally to the ethnic group related to the ownership interest. The bank’s growth has been virtually static and its fu ture appears less than bright. Conversely, Continental is a large institution with broader experience and capacity in all banking functions. The aggressive man agement and policies of Continental would promote competition in all fields of operation. The present concentration of banking in the Philadalphia area would be largely unaffected by this transaction. In addition, mutual savings banks and nonbank institutions offer considerable competition. The Board of Directors is of the opinion that the proposed transaction would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. Although Continental's re cord under these factors is favorable, Sonsitaly has experienced only nominal growth, has suffered a decline in the past three years in its adjusted capital and has demonstrated weak earnings. It lacks the management and facilities to compete as a full-service bank. The resulting bank would be satisfactory under all these factors. Convenience and Needs of the Community. The transaction would have v ir tually no effect on the services offered in the trade area of Continental. It would, however, result in a significant expansion of the services offered to Sonsitaly's customers at its present location. A small limited-service bank would be replaced by a branch of a large full-service bank. Based on the foregoing and on other information available to the Corpora tion, the Board of Directors has concluded that approval of the bank's applica tion is warranted. iy No. 31 Northwest Pennsylvania Bank & Trust Co. Oil City, Pennsylvania to merge with The Grove City National Bank Grove City Resources (in thousands of dollars) B anking Offices In operation To be operated 103,611 14 16 14,004 2 S u m m a ry repo rt by A tto rn e y G e n e ra l, J u ly 2 4 , 1 9 6 7 Northwest Pennsylvania Bank & Trust Company ("N orthw est” ), a 14-office bank in northwestern Pennsylvania, proposes to acquire Grove City National 78 FEDERAL DEPOSIT INSURANCE CORPORATION Bank ("Grove City Bank") in Grove City, Pennsylvania. The latter bank operates its main office and a branch in Grove City, Mercer County, Pennsylvania. Grove City (population, 8,368) has three banking offices: the two offices of Grove City Bank and a branch of First Seneca Bank & Trust Company. There are no other banks in the immediate area. Mercer County as a whole (population, 127,591) has eight banks with 29 banking offices. This total includes two Northwest branches in the town of Mer cer, and a third in the town of Fredonia. The proposed merger would eliminate at least some direct competition be tween Northwest and Grove City Bank. Of the six banking offices closest to Grove City, three are branches of Northwest— two located 10 miles to the northwest at Mercer (in Mercer County) and one located 13 miles to the east at Clintonville (in Venango County). Mercer and Grove City are connected by a main highway and there are no towns or banks in between. The three other banks are located 4, 7, and 10 miles away, respectively. It would thus appear that Northwest’s offices are close enough to compete with Grove City Bank and First Seneca Bank and Trust Co. for business in Grove City. There has been a substantial bank merger trend in the four counties— Ve nango, Clarion, Crawford and Mercer— where Northwest’s 14 offices are located. The leading bank in this four-county area is Northwest (deposits of $92.5 m il lion), with First Seneca Bank & Trust Company (deposits of approximately $90 m illion) a close second. Both Northwest and First Seneca have engaged in ex tensive merger activity in recent years. Since 1953, Northwest has acquired eight banks, and First Seneca has acquired nine. Other banks have also partici pated in the area's merger trend— which has resulted in the elimination of more than 21 independent banks in the four-county area, and has contributed to the concentration of about 40 percent of the area's deposits in the hands of the area's two largest banks. Within the four-county area in which Northwest operates, Northwest has 20.1 percent of $425.4 million in IPC deposits (demand and tim e), and Grove City Bank has 2.8 percent. In Mercer County alone, Northwest’s three branches ac count for 9.8 percent of the county's $159.7 million in IPC deposits, and Grove City Bank has 7.8 percent. Thus the proposed merger involves significant increase in concentration— particularly in Mercer County— in the context of a long-term trend toward in creased concentration in banking resources resulting from mergers. For the reasons stated above, we find the proposed merger between Northwest and Grove City Bank to be significantly anti-competitive. B a s is fo r C o rp o ratio n ap p ro val, N o vem ber 7, 1 9 6 7 Northwest Pennsylvania Bank & Trust Co., Oil City, Pennsylvania (applicant), an insured State nonmember bank with total deposits of $92,537,000, has ap plied, pursuant to Section 18(c) and other provisions of the Federal Deposit In surance Act, for the Corporation’s prior approval to merge with The Grove City National Bank, Grove City, Pennsylvania (Grove City Bank), which has total de posits of $12,517,000. The banks would merge under the charter and with the title of the applicant, and as an incident to the merger, the two offices of Grove City Bank would become branches of the applicant, increasing the number of its offices to 16. Competition. Applicant is headquartered in Oil City (population 17,700), which is situated in the central section of Venango County. It operates 14 offi ces throughout Venango, Clarion, Mercer, and Crawford Counties. Grove City Bank's two offices are in the community of Grove City (population 8,400), which is situated in the southeastern corner of Mercer County. The merging banks' main offices are about 35 miles apart. Applicant's offices closest to Grove City are its branches in Mercer and Clintonville, 10 and 13 miles distant. Primary competition to Grove City Bank is furnished by First Seneca Bank and Trust Company which has IPC deposits of $87 million and two branches in 79 BANK ABSORPTIONS APPROVED BY THE CORPORATION Grove City. First Seneca Bank is headquartered in Oil City and is applicant's principal competitor. Four miles from Grove City, in Harrisville, is a branch of the $2.3 billion IPC deposit bank, Mellon National Bank and Trust Company, Pittsburgh. The merging bank’s closest offices derive only a small portion of their business from each other's service areas. Applicant is the fourth largest bank in absolute size in the resulting service area and the proposal would not significantly increase its share of the aggre gate IPC deposits. Applicant presently holds the largest proportion, 19.4 per cent, which exceeds by a narrow margin the 19.2 percent held by its principal competitor, First Seneca Bank and Trust Company. The resulting bank would have 22.2 percent. The largest bank in absolute size represented in the area is Mellon National Bank. The increase in applicant's size would not materially af fect the existing competitive relationships in the communities it presently serves. The entry of applicant into Grove City would tend to stimulate competi tion in that community where the applicant's principal com petitor is presently represented. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are favora ble with respect to the resulting bank as they have been with respect to the merging banks. The proposal would resolve a problem of management succes sion at the Grove City Bank and provide managerial resources of adequate depth and quality. Convenience and Needs of the Community to be Served. Consummation of the merger will introduce an aggressive management with expanded and more competitive banking services which should benefit the Grove City community. In dustry in the area is expanding and recent loan demands have been higher than Grove City Bank could independently accommodate. The applicant will provide more comprehensive and complete trust services than Grove City Bank now of fers. The residents of the area will continue to have a good choice of banking facilities with two banking alternatives in Grove City and four others at four lo cations within 10 miles. Based on the foregoing and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. No. 32 Branch Banking & Trust Company Wilson, North Carolina to merge with Bank of Davie Mocksville Resources (in thousands of dollars) Banking Offices In operation To be operated 157,706 40 42 10,230 2 S u m m a ry rep o rt by A tto rn e y G e n e ra l, S e p te m b e r 2 9 , 1 9 6 7 The Branch Banking and Trust Co. ( “ BB&T") proposed to merge with the Bank of Davie (“ Davie” ). BB&T, the sixth largest bank in North Carolina, oper ates 40 banking offices primarily in Eastern North Carolina. Davie has two of fices in Mocksville, which is in Davie County in the Piedmont region of the State. 80 FEDERAL DEPOSIT INSURANCE CORPORATION At present, the expanding banking market of Davie County is served by only two banks— Davie and a branch of Central Carolina Bank and Trust Co., a Durham-based bank with total deposits of $80.8 million. Davie is the dominant in stitution in the market, accounting for over 85 percent of both total deposits and IPC demand deposits in the county. Since the nearest office of BB&T is approximately 120 miles from the nearest office of Davie, at the opposite end of the State, it is unlikely that there is d i rect substantial competition between the merging banks which would be foreclosed by the proposed merger. The proposed merger would eliminate BB&T as a source of potential competi tion in Davie County, since North Carolina law permits statewide branch bank ing (N.C. Gen. Stat. §53-62). Since BB&T is the sixth largest bank in the State it would appear to be one of the most likely entrants into Davie County, an area of expanding economic growth. The proposed merger is part of a continuing trend of acquisitions and merg ers by North Carolina's largest commercial banks. This merger trend has already had an adverse effect on potential competition in the State by inhibiting the establishment of de novo branches by the largest banks, and thereby re tarding the development of a more competitive banking structure in North Caro lina. B a s is fo r C o rp o ratio n ap p ro val, N o vem ber 2, 1 9 6 7 Branch Banking & Trust Company, Wilson, North Carolina (applicant), an in sured State nonmember bank, with total deposits of about $134.5 million, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge Bank of Davie, Mocksville, North Carolina which has total deposits of about $8,9 million. The banks would merge under the charter and title of applicant and as an incident thereof the two offices of the Bank of Davie would become branches of appli cant, increasing the number of its offices to 42. Competition. Applicant’s main office is located in Wilson, North Carolina, 160 miles east of Mocksville and its closest office to Mocksville is at Cary, 102 miles to the east. Applicant is the State’s sixth largest bank, operating 40 of fices in 18 separate service areas throughout eastern North Carolina in competi tion with the State’s four largest banks and numerous smaller institutions. Bank of Davie is the only bank in Mocksville, population 2,400. It competes with the only other bank in Davie County which has a branch in Cooleemee, 5 miles dis tant, and approval to establish a branch in Mocksville which is now nearing completion. There is no competition existing between applicant and Bank of Davie which would be eliminated by their merger. Because of several factors, including the long distance between Mocksville and applicant's nearest offices, any potential for competition between the two participating banks through de novo branching in each other’s area is slight. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Future Prospects. These factors are favorable for applicant and Bank of Davie as they would be with respect to the resulting bank. Convenience and Needs of the Community. The effect of the proposed merger on the community would be to introduce the wider services of appli cant into the Mocksville and Davie County area, including trust and other specialized banking and greatly expand legal lending limitations and capacity. Based on the foregoing and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. BANK ABSORPTIONS APPROVED BY THE CORPORATION Resources On thousands of dollars) No. 33 Bank of the West Bellevue, Washington to merge with Highlands National Bank of Renton Renton 81 Banking Offices In operation 7,925 1 3,032 1 To be operated 2 S u m m a ry repo rt by A tto rn e y G e n e ra l, S e p te m b e r 1, 1 9 6 7 The proposed merger involves two small banks that opened fo r business in 1965, located in King County, Washington (which also contains the City of Seat tle). There appears to be little present direct competition between the merging banks, located approximately 9 miles apart in two different suburbs of Seattle. There are several smaller communities, and a considerable number of banking alternatives, situated between Bellevue and Renton. Within the Bellevue-Renton area (in King County), the bank resulting from the proposed merger would hold 4.5 percent of total IPC deposits individually; Highlands now holds 1.4 and West 3.1 percent of such deposits. If the merger were approved, there would continue to be eight banks with 25 offices in this area. Among them are banks with considerably larger market shares than the resulting bank, including Seattle-First National Bank, Washington Mutual Sav ings Bank, Peoples National Bank, and National Bank of Commerce, with about 38, 20, 13, and 12 percent, respectively, of IPC deposits within the BellevueRenton area. Within King County as a whole (which we believe overstates the market), the combined share of IPC demand deposits of the merging banks is only about 0.2 percent. We conclude that the proposed merger will have little, if any, effect upon competition within the Bellevue-Renton area, King County or the broader Seattle Metropolitan Area. B a s is fo r C o rpo ratio n ap p ro val, N o vem ber 15, 1 9 6 7 Bank of the West, Bellevue, Washington (applicant), an insured State non member bank with total deposits of $6.5 million has applied, pursuant to Sec tion 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior approval to merge with Highlands National Bank of Renton, Renton, Washington (National), which has total deposits of $2,451,000. The banks would merge under the charter and with the title of the applicant and, as an incident to the merger, the sole office of National would become a branch of the applicant, increasing the number of its offices to two. Competition. Bellevue (population 22,000) is located 10 miles east from downtown Seattle. Renton (population 23,000) is located 11 miles south from Bellevue and 12 miles southeast from downtown Seattle. Both banks are new institutions opened in 1965; they primarily serve separate although contiguous areas. Several offices of other banks intervene their locations, and competition between them is minimal. Several offices of some of the largest banks headquartered in the State are located in each merging bank's service area. Eight commercial banks presently operate 22 offices in the combined service area. These offices include 19 oper ated by five of the State's eight largest commercial banks. The largest bank has eight offices in the area which hold almost 47 percent of the aggregated depos its. Three other banks hold proportions ranging between 12 percent and 17 per cent. The resulting bank’s two offices would hold but 5.7 percent. The resulting bank would be smallest in absolute size in the combined service area. The next larger bank has $12.5 million in deposits, and the remaining banks have total FEDERAL DEPOSIT INSURANCE CORPORATION 82 deposits ranging from $117 million to $1.4 billion. The proposed merger would have no adverse effect on competition in either merging bank's service area. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. These factors have been favorable with respect to the merging banks and are so projected fo r the result ing bank. Future deposit growth prospects for National, as a branch of the ap plicant, would be enhanced under the latter's more aggressive management. Convenience and Needs of the Community to be Served. The increased lend ing lim it would be of benefit to customers of both merging banks which are located in economically expanding areas. The resulting bank will offer, to a greater extent, complete mortgage loan services demanded by the heavy resi dential building activity in both service areas. It is anticipated that National's inadequate quarters will be replaced by a new and larger building which would better serve the needs of the community. It is planned to concurrently extend the daily hours of the proposed branch in Renton for the convenience of the commuter population. On the basis of the above information and other information available to the Corporation, the Board of Directors has concluded that the approval of the bank’s application is warranted. Resources (in thousands of dollars) No. 34 The Guaranty Bank Phoenix, Arizona (change title to United Bank of Arizona) to merge with Central Arizona Bank, Casa Grande, First Security Bank, Mesa, and The Saguaro Bank Tempe Banking Offices In operation 68,333 6 4,949 2 19,592 3 9,543 1 To be operated 12 S u m m a ry repo rt by A tto rn e y G e n e ra l, A u g u st 2 8 , 1 9 6 7 There is no doubt that a certain amount of direct competition exists between Guaranty, First Security and Saguaro, since the distances between Phoenix, Tempe and Mesa are short and the number of commuters may be significant. On the other hand, there would appear to be very little direct competition be tween Central (in Casa Grande) and the other three banks in Metropolitan Phoe nix, 38, 44, and 57 miles away, respectively. Guaranty is presently the fifth largest bank in Arizona and the fourth largest in the Phoenix area. The other big Arizona banks (Valley National, Arizona Bank, First National Bank of Arizona, and Southern Arizona Bank, the latter two being under common ownership), also operate in the Phoenix area. Banking is already highly concentrated in the Phoenix metropolitan area, with the four larg est banks (including Guaranty) holding 92.7 percent of total commercial bank deposits. Guaranty alone holds 4.2 percent of IPC demand deposits within the Phoenix metropolitan area (which may overstate market area somewhat); its proposed acquisition of First Security and Saguaro would increase its market share to 5.8 percent. (Expressed in terms of total deposits, the combined market share would be about the same, or 5.7 percent.) BANK ABSORPTIONS APPROVED BY THE CORPORATION 83 Guaranty's proposed acquisition of these two relatively new banks in Mesa and Tempe does not give it individually a high market share, but it would re duce the number of banking alternatives in the Phoenix metropolitan area from 11 to nine. Proposed transaction would also eliminate, at the same time, three of the newer banking entrants in a State with a highly concentrated banking structure and only 16 banks altogether; all of these banks being acquired now possess unusual strength and recent growth and an even greater competitive potential for the future. B a s is fo r C o rp o ratio n ap p ro val, N o vem b er 15, 1 96 7 The Guaranty Bank, Phoenix, Arizona (applicant), an insured State nonmem ber bank with total deposits of $57,467,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corpo ration’s prior consent to merge with Central Arizona Bank, Casa Grande, Arizona (Central), an insured State nonmember bank which has total deposits of $4,079,000, First Security Bank, Mesa, Arizona (First Security), an insured State nonmember bank which has total deposits of $17,151,000, and The Saguaro Bank, Tempe, Arizona (Saguaro), an insured State nonmember bank which has total deposits of $8,547,000. The banks would merge under the charter of the applicant and with the title “ United Bank of Arizona" and, as an incident to the merger, applicant and Saguaro would retire part of their common capital and the six offices of Central, First Security and Saguaro would become branches of the applicant, increasing the number of its offices to 12. Competition. Applicant is headquartered in Phoenix (population 518,000), the seat of Maricopa County. It has four branches in Phoenix and one branch in Scottsdale, 12 miles east from the main office. The applicant primarily serves the Phoenix-Scottsdale area. Central's main office is in Casa Grande, 57 miles southeast from the applicant’s main office. Central's sole branch is located in Coolidge, 22 miles northeast from Casa Grande. The Casa Grande-Coolidge area has a combined population of 13,500 and is more than 30 miles from any of fices of the other participating banks. First Security's three offices are located in Mesa (population 57,000). Mesa is 19 miles southeast of Phoenix. Saguaro’s sole office is located in Tempe (population 50,000), 6 miles west from Mesa. Saguaro's office is Ay2 miles from the nearest office of First Security and these are the closest of any of the participating banks' offices. The Phoenix-Scottsdale area is separated from the Tempe and Mesa areas by the Salt River bed and numerous bank offices intervene each of the merging banks' locations. This and other evidence indicates that there is little direct competition between Central and any of the other three banks involved in the proposal and that competition between applicant, First Security and Saguaro is not substantial. Two or more of the State's four largest banks operate offices in each of the areas served by the merging banks. In each case, the offices of the large banks hold the majority of the aggregate deposits held by the bank offices in the res pective service areas. In the combined service area 11 banks operate 127 offices. The State's four largest banks operate 109 of these offices and in the aggregate hold almost 90 percent of the deposits. These banks range in abso lute deposit size from $180 million to $1.0 billion. There is little potential for any significant competition between these large banks and the merging banks. But, in consequence of this merger the resulting bank would have 12 offices and $87.2 million in deposits, or 6.0 percent of the aggregate, and would be a stronger institution than any of its components. This should tend to enhance its competition with the State’s banking giants represented in each participating bank's service area. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are found to be generally satisfactory with respect to the resulting bank as they have been 84 FEDERAL DEPOSIT INSURANCE CORPORATION with respect to the merging banks. The proposal would result in stronger overall management and would resolve First Security's undercapitalized position. Convenience and Needs of the Community to be Served. Most of the State's growth has occurred in the resulting bank’s service area and economic pros pects are highly favorable. The resulting bank, with resources of almost $100 million, a lending lim it in excess of $1.0 million, trust services, a computer de partment and loan specialists, will be better able to serve this expanding region than could the four banks independently. Based on the above information and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. Resources (in thousands of dollars) No. 35 Commerce Bank and Trust Company Worcester, Massachusetts to merge with Shrewsbury Bank and Trust Company Shrewsbury B anking Offices In operation 13,157 2 5,375 1 To be operated 3 S u m m a ry repo rt by A tto rn e y G e n e ra l, J u ly 2 5 , 1 9 6 7 The Commerce Bank and Trust Company, Worcester, Massachusetts, pro poses to merge with the Shrewsbury Bank and Trust Company, Shrewsbury, Massachusetts. The Shrewsbury Bank probably competes with Commerce to some extent, al though its principal com petitor is the local Shrewsbury branch of Worcester County National. Within the entire Worcester Metropolitan Area (an area which probably overstates the market in this case) the merging banks together hold only about 3 percent of total IPC demand deposits. It should be noted that the merging banks are largely owned by one family who hold 95 percent of the stock of Commerce and 89 percent of that of Shrewsbury Bank. B a s is fo r C o rp o ratio n ap p ro val, N o vem ber 15, 1 9 6 7 Commerce Bank and Trust Company, Worcester, Massachusetts (Commerce), an insured State nonmember bank with total deposits of about $11.2 millon, has applied pursuant to Section 18(c) and other provisions of the Federal De posit Insurance Act, for the Corporation’s prior approval to merge with Shrewsbury Bank and Trust Company, Shrewsbury, Massachusetts (Merging Bank), also an insured State nonmember bank, which has total deposits of about $4.6 million. The banks would effect this transaction under the charter and title of Commerce and as an incident thereof the sole office of Shrewsbury would become a branch of Commerce, increasing the number of its offices to three. Competition. The primary service area of Commerce is the City of Worcester but touches on parts of six towns, including Shrewsbury, the location of Merg ing Bank. The primary service area of Merging Bank is the Town of Shrewsbury and portions of adjacent Worcester. Because of this overlapping of service areas, some competition exists between the participating banks but it does not appear to be substantial. The banks, moreover, are 3 miles apart in a populous area and are separated by a number of offices of other much larger banks. In addition, Merging Bank’s principal competitor, only one-tenth mile away, is a branch of the largest bank in Worcester County. Commerce is the second smallest and Merging Bank the smallest in their res pective primary service areas. The resulting bank would continue to be one of the smallest in the entire area, with only 5.2 percent of the commercial bank deposits while the next largest commercial bank would be four times as large 85 BANK ABSORPTIONS APPROVED BY THE CORPORATION with 20.9 percent. In addition, several large mutual savings banks offer compe tition in the area. This merger should enhance the resulting bank's capacity to compete with the larger banks in its service area. The Board of Directors is of the opinion that the proposed transaction would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. The banking factors with respect to both participating banks are satisfactory, as they would be following the proposed merger. Convenience and Needs of the Community. This merger would give the re sulting banks a significantly higher lending limit. In addition, trust services may be introduced at a future date. The comm unity's needs should be better served through combining the operations of these two relatively small banks. Based on the foregoing and on other information available to the Corpora tion, the Board of Directors has concluded that approval of the bank’s applica tion is warranted. No. 36 The Central Jersey Bank and Trust Company Freehold Township, New Jersey to merge with The Sea Bright National Bank Sea Bright Resources (in thousands of dollars) In operation To be operated 148,233 16 18 7,738 2 Banking Offices S u m m a ry rep o rt by A tto rn e y G e n e ra l, S e p te m b e r 2 9 , 1 9 6 7 The Central Jersey Bank and Trust Company is the second largest of 12 banks located in Monmouth County, New Jersey, where it operates 15 branch offices. Three branches of Central Jersey— in the towns of Long Branch, Eatontown, and Fort Monmouth— are located from about 5 to 7 miles distant from Sea Bright National. This distance is sufficiently short that we believe the merging banks to be in direct competition with one another for at least certain classes of business. This competition would, of course, be eliminated by the proposed merger. The proposed merger would also increase the market share of Monmouth County's second largest bank by about 1.2 percent of total IPC deposits to 22.1 percent, and further increase concentration in this already concentrated banking market. B a s is fo r C o rp o ratio n ap p ro val, N o vem b er 2 2 , 1 9 6 7 The Central Jersey Bank and Trust Company, Freehold Township (P.O. Free hold), New Jersey (applicant), an insured State nonmember bank with total deposits of $133,835,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior ap proval to merge with The Sea Bright National Bank, Sea Bright, New Jersey (National) which has total deposits of $7,315,000. The banks would merge un der the charter and with the title of the applicant and, as an incident to the merger, the two offices of National would become branches of the applicant, in creasing the number of its offices to 19, including applicant's approved, but unopened, de novo branch. Competition. Applicant is headquartered in Freehold Township (population 6,500), which completely surrounds the Borough of Freehold (population 9,100), the seat of Monmouth County. Applicant's 16 offices are in Monmouth County and it has approval for an additional branch in Freehold Township. National's 86 FEDERAL DEPOSIT INSURANCE CORPORATION main office is in the coastal resort community of Sea Bright (year-round popula tion 1,400) and its sole branch is located in Rumson (population 7,400). Mon mouth County, the relevant service area, has an estimated population of 420,800. The merging banks' nearest offices are 6 and 7 miles apart. Other op erating or approved banking offices intervene these areas. National's conservative policies indicate that it is not a strong competitive force in the area it serves. This and other evidence indicates that existing competition and the potential for significant competition between the merging banks is minimal. The increase of 1.2 percent in the applicant's share of the aggregate IPC de posits held by the banks in Monmouth County would not change its position as second largest bank. The resulting bank would have 22.1 percent of such de posits. The largest bank in the county holds 24.8 percent. National's nearest competitor, located 2 miles from its Rumson branch, is a branch of the coun ty's third largest bank. The county's largest bank has approval to establish a branch 2 miles from National's main office. The increased resources of the ap plicant would not significantly affect competition in Monmouth County. Appli cant’s entry into the communities of Sea Bright and Rumson should stimulate competition in those areas. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are satis factory with respect to the merging banks and are so projected for the resulting bank. Convenience and Needs of the Community to be Served. The Sea Bright and Rumson areas are not being adequately served by the National Bank. There is a demand in these areas for many services not now provided by National, includ ing a much larger lending lim it and types of loans other than those offered by National, which the resulting bank can provide. In addition, the resulting bank will offer computer and trust services. On the basis of the above information, and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. Resources (in thousands of dollars) No. 37 Wakefield Trust Company Wakefield, Massachusetts (change title to Melrose-Wakefield Trust Company) to consolidate with Melrose Trust Company Melrose B anking Offices In operation 16,077 2 14,328 3 To be operated 5 S u m m a ry repo rt by A tto rn e y G e n e ra l, N o vem ber 7, 1 9 6 7 The proposed consolidation involves Wakefield Trust Company, Wakefield, Massachusetts, and the Melrose Trust Company, Melrose, Massachusetts. The closest offices of the merging banks are about 2 l/ 2 miles apart in the ad jacent communities of Wakefield and Melrose. In the Wakefield-Melrose area, Wakefield Trust is the fourth largest bank and Melrose Trust is the fifth largest. In view of the fact, however, that both banks have for many years been con trolled by the same bank holding company, we conclude that the effect of the proposed merger on competition would not be substantial. B a s is fo r C o rp o ratio n ap p ro val, N o vem b er 2 8 , 1 9 6 7 Wakefield Trust Company, Wakefield, Massachusetts (Charter Bank), an in 87 BANK ABSORPTIONS APPROVED BY THE CORPORATION sured State nonmember bank with total deposits of about $14 million, has ap plied, pursuant to Section 18(c) and other provisions of the Federal Deposit In surance Act, for the Corporation's prior approval to consolidate with Melrose Trust Company, Melrose, Massachusetts (Merging Bank), also an insured State nonmember bank, which has total deposits of about $12.5 million. The banks would consolidate under the charter of Wakefield Trust Company and with the title Melrose-Wakefield Trust Company, and as an incident thereof, the three of fices of Merging Bank would become branches of the resulting bank, increasing the total number of offices to five. Competition. Wakefield, the location of Charter Bank's main office and its sin gle branch, is located 10 miles north of Boston. Wakefield's population was ap proximately 24,000 in 1960. Melrose, where Merging Bank's main office and two branches are situated, is 3 miles nearer to Boston, and its population at the 1960 census was approximately 30,000. Both of the service areas are lo cated in the Boston metropolitan area. Competition between the participating in stitutions is nominal and is further minimized by the fact that both institutions have long been controlled by The Shawmut Association, Inc., a registered bank holding company. It owns 75.7 percent of the outstanding stock of Charter Bank and acquired control in 1947, and 76.6 percent of the outstanding stock of Merging Bank, which it has controlled since 1937. In view of this long-stand ing common ownership, the intense competition from two much larger mutual savings banks in the combined service area, and the fact that Wakefield and Melrose are satellite municipalities in a large urban complex centering about Boston, the proposed consolidation would not have a significant effect upon competition. Although the large Boston banks may not legally branch into Wake field or Melrose, they actively solicit business from those areas and many Wake field and Melrose residents commute to Boston. The Board of Directors is of the opinion that the proposed consolidation would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. The banking factors with respect to each participating bank are satisfactory as they would be with res pect to the resulting bank following the proposed consolidation. Convenience and Needs of the Community. Present and potential customers in both communities should benefit from the increased lending power of the re sulting bank and the generally expanded services it would be able to offer. Based on the foregoing and on other information available to the Corpora tion, the Board of Directors has concluded that approval of the application is warranted. No. 38 Bank o f Clarksdale Clarksdale, Mississippi to merge with The Bank of Lambert, Lambert Mississippi Lambert Resources (in thousands of dollars) B anking Offices In operation 34,087 4 4,692 2 To be operated 6 S u m m a ry repo rt by A tto rn e y G e n e ra l, N o vem b er 13, 1 9 6 7 The Bank of Clarksdale ( “ Clarksdale Bank"), with $30.5 million in total de posits, proposes to merge Bank of Lambert ( “ Lambert Bank"), which holds total deposits of $4.3 million. Two of Clarksdale Bank's four offices are situated in Clarksdale, Mississippi (population 22,000), the county seat of Coahoma County (population 46,212). Its two new offices, if approved, will also be located in that county. Lambert FEDERAL DEPOSIT INSURANCE CORPORATION 88 Bank’s two offices are situated in adjacent Quitman County (population 21,019). This two-county area is still predominantly agricultural, although there is a gradual trend toward industrial growth. Prospects for continued economic growth are favorable. Within Coahoma County, Clarksdale Bank competes directly with the four of fices of two other commercial banks and is the dominant bank. Lambert Bank competes directly with the two offices of one other commercial bank in Quitman County but is the smaller of the two, holding about 40 percent of total deposits in the county. The closest offices of the merging banks are about 22 miles apart, and there does not appear to exist a substantial amount of actual competition between them which would be eliminated by the proposed merger. Mississippi law would permit Clarksdale Bank to expand by de novo branch ing into any community in adjacent Quitman County with a population of 3,500 or more. However, since the largest community in Quitman County appears to be Marks (1960 population 2,600), the proposed merger would apparently not at this time involve the loss of Clarksdale Bank as a potential entrant into this county where only two banks presently operate. B a s is fo r C o rp o ratio n ap p ro val, N o vem ber 2 8 , 1 9 6 7 Bank of Clarksdale, Clarksdale, Mississippi (applicant), an insured State non member bank with total deposits of $30,513,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to merge with The Bank of Lambert, Lambert, Mis sissippi, Lambert, Mississippi (Bank of Lambert) which has total deposits of $4,292,000. The banks would merge under the charter and with the title of the applicant and, as an incident to the merger, the two offices of Bank of Lambert would become branches of the applicant, increasing the number of its offices to eight, including applicant’s two approved, but unopened de novo branches at Lula and Jonestown. Competition. Applicant operates a main office and one branch in Clarksdale, population 21,100, the seat of Coahoma County, population 46,200, in the Delta region of northwestern Mississippi. Two other branches are presently in operation, at Friars Point and at Drew, 14 miles northwest and 32 miles south, respectively, of Clarksdale. Bank of Lambert operates only one branch, at Sledge, population 440, 17 miles north of Lambert, a small agricultural center with a population of 1,180. The nearest offices of the merging banks are their main offices which are separated by 22 miles, with Bank of Lambert’s primary competitor and the only other bank in Quitman County located 4 miles to the north of Lambert in the intervening area on the primary highway to Clarksdale. Because of the distance between the merging banks, the proximity of other banks and the small size of Bank of Lambert and the communities it serves, there is little competition between them that would be eliminated by this pro posal. The evidence further indicates there is little potential for competition. There are two other effectively competing banks in Clarksdale, and although applicant is the largest bank headquartered in the overall service area, numer ous banking alternatives are readily accessible, including branches of a consid erably larger bank, based elsewhere. The relatively small increase in applicant's resources would not adversely affect competition in the relevant area. The Board of Directors is of the opinion that the proposed merger would not substantially lessen competition, tend to create a monopoly or, in any other manner, be in restraint of trade. Financial and Managerial Resources and Prospects. These factors are satis factory with respect to applicant as they would be for the resulting bank. Bank of Lambert recently lost, through death, illness, and resignation, its active man agement and three of its directors. Prospects for rebuilding management are poor. BANK ABSORPTIONS APPROVED BY THE CORPORATION 89 Convenience and Needs of the Community to be Served. The evidence indi cates applicant is a well-established bank, able and anxious to expand the services it offers and to extend them into new areas. Bank of Lambert’s main office is sorely in need of replacement which applicant is prepared to provide, along with trust services, an increase in lending lim itations from $45,000 to $386,000, safe deposit box service and exchange of checks on a full-par basis. On the basis of the above information, and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. 1 Resources acquired in tra n s fe r of Malvern Bank’ s Paoli office. 2 Resources acquired w ith tra n s fe r of Chemical Bank’s Delancey Street office. LEGISLATION AND REGULATIONS PART THREE 93 FEDERAL BANKING LEGISLATION— 1967 P u b lic L a w 9 0 —4 4 9 0 th C o n g re ss, S . 7 1 4 J u ly 3 , 1 9 6 7 An A ct To amend section 22(g) of the Federal Reserve Act relating to loans to execu tive officers by member banks of the Federal Reserve System, and to amend the Federal Credit Union Act to modify the loan provisions relating to direc tors, members of the supervisory committee, and members of the credit committee of Federal credit unions. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “ (g)(1) Except as authorized under this subsection, no member bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “ (A) the bank would be authorized to make it to borrowers other than its officers; “ (B) it is on terms not more favorable than those afforded other borrow ers; “ (C) the officer has submitted a detailed current financial statement; and “ (D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respec tively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be ex tended to him by the bank of which he is an officer. “ (2) With the specific prior approval of its board of directors, a member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “ (A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his resi dence, and “ (B) no other loan by the bank to the officer under authority of this para graph is outstanding. “ (3) A member bank may make extensions of credit to any executive officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “ (4) A member bank may make extensions of credit not otherwise specifi cally authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. 94 FEDERAL DEPOSIT INSURANCE CORPORATION "(5 ) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive of ficers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a mem ber of the partnership. “ (6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggre gate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the secu rity thereof, and the purposes fo r which the proceeds have been or are to be used. “ (7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank fo r the purpose of protecting the bank against loss or giving financial assistance to it. “ (8) Each day that any extension of credit in violation of this subsection ex ists is a continuation of the violation for the purposes of section 8 of the Fed eral Deposit Insurance Act. “ (9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection ijiade by the bank since its previous report of condition. “ (10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems neces sary to effectuate the purposes and to prevent evasions of this subsection.” Sec. 2. Section 8 of the Federal Credit Union Act (12 U.S.C. 1757) is amended— (1) by changing, in paragraph (5) thereof, “ shall exceed the amount of his holdings in the Federal Credit Union as represented by shares thereof plus the total unencumbered and unpledged shareholdings in the Federal Credit Union of any member pledged as security for the obligation of such director or committee member” to read “ may be made except as authorized under paragraph (6) of this section” ; (2) by redesignating paragraphs (6) through (13) of that section as para graphs (7) through (14), respectively; and (3) by inserting, immediately after paragraph (5), the following new para graph: “ (6) to make loans to its own directors and to members of its own super visory or credit committee, but all such loans shall be reported to the Director at least annually, and such a loan may be made only if— “ (A) the loan complies with all lawful requirements under this Act with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; “ (B) upon the making of the loan, the aggregate amount of loans out standing to the borrower will not exceed the total amount of shareholdings in the credit union, not otherwise encumbered or pledged, which are pledged as security for loans to the borrower, or $5,000, whichever is greater; “ (C) upon the making of the loan, the aggregate amount of loans out standing under authority of this paragraph will not exceed 20 per centum of the unimpaired capital and surplus of the credit union; “ (D) the loan is approved by the credit committee and by the board of directors after the submission to them of a detailed current financial state ment by the borrower; and FEDERAL BANKING LEGISLATION— 1967 95 “ (E) the borrower takes no part in the consideration of his application and does not attend any committee or board meeting while his application is under consideration;". Sec. 3. Paragraph (D) of section 8(8) of the Federal Credit Union Act is amended to read: “ (D) in shares or accounts of savings and loan associations or mutual savings banks, the accounts of which are insured by the Federal Sav ings and Loan Insurance Corporation or the Federal Deposit Insurance Corpora tio n ;". Approved July 3, 1967. P u b lic L a w 9 0 —6 2 9 0 th C o n g re ss, S . 1 6 4 8 A u g u st 9 , 1 9 6 7 An Act To extend the authority fo r 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 America in Congress assembled, That section 6 of the Act of Septem ber 9, 1965 (79 Stat. 674; 31 U.S.C., Supp. I, 936) is amended by striking out “ twenty months after it becomes law" and inserting in lieu thereof “ on June 30, 1969". Approved August 9, 1967. P u b lic L a w 9 0 —8 7 9 0 th C o n g re ss, S . 1 9 5 6 S e p te m b e r 2 1 , 1 9 6 7 An Act To extend fo r one year the authority for more flexible regulation o f maximum rates o f interest or dividends, higher reserve requirements, and open market operations in agency issues. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 7 of the Act of Septem ber 21, 1966 (80 Stat. 823), is hereby amended by striking “ one-year" and in serting in lieu thereof “ two-year". Approved September 21, 1967. P u b lic L a w 9 0 — 1 0 4 9 0 th C o n g re s s , S. 1 8 6 2 O c to b e r 1 1 , 19<67 An A ct To amend the authorizing legislation o f the Small Business Administration, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, $ $ « $ « Sec. 204. Section 302(b) of the Small Business Investment Act of 1958 is amended by striking “ except th a t in no event shall any such bank hold shares FEDERAL DEPOSIT INSURANCE CORPORATION 96 in small business investment companies in an amount aggregating more than 2 percent of its capital and surplus.” and inserting "except that in no event may any such bank acquire shares in any small business investment company if, upon the making of that acquisition. “ (1) the aggregate amount of shares in small business investment compa nies then held by the bank would exceed 5 percent of its capital and surplus, or “ (2) the bank would hold 50 percent or more of any class of equity secu rities issued by that investment company and having actual or potential voting rights." Approved October 11, 1967. P u b lic L a w 9 0 —2 0 3 9 0 th C o n g re ss, H . R . 1 0 5 9 5 D e cem b er 15, 1 9 6 7 An Act To prohibit certain banks and savings and loan associations from fostering or participating in gambling activities. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Section 1. (a) Chapter 1 of title LXII of the Revised Statutes is amended by inserting, immediately after section 5136, the following new section: “ Sec. 5136A. (a) A national bank may not— “ (1) deal in lottery tickets; “ (2) deal in bets used as a means or substitute for participation in a lot tery; “ (3) announce, advertise, or publicize the existence of any lottery; “ (4) announce, advertise, or publicize the existence or identity of any par ticipant or winner, as such, in a lottery. “ (b) A national bank may not permit— “ (1) the use of any part of any of its banking offices by any person for any purpose forbidden to the bank under subsection (a), or “ (2) direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a). “ (c) As used in this section— “ (1) The term 'deal in' includes making, taking, buying, selling, redeem ing, or collecting. “ (2) The term ‘lottery’ includes any arrangement whereby three or more persons (the ‘participants’) advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the partici pants (the ‘winners') will receive by reason of their advances more than the amounts they have advanced, the identity of the winners being determined by any means which includes— “ (A) a random selection; “ (B) a game, race, or contest; or “ (C) any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possi bility that he may become a winner. “ (3) The term ‘lottery ticket’ includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery. “ (d) Nothing contained in this section prohibits a national bank from accept ing deposits or cashing or otherwise handling checks or other negotiable FEDERAL BANKING LEGISLATION— 1967 97 instruments, or performing other lawful banking services for a State operating a lottery, or for an officer or employee of that State who is charged with the ad ministration of the lottery. “ (e) The Comptroller of the Currency shall issue such regulations as may be necessary to the strict enforcement of this section and the prevention of eva sions thereof.” (b) The table of sections at the beginning of that chapter is amended by in serting “ 5136A. Participation in lotteries prohibited." immediately above “ 5137. Power to hold real property.” Sec. 2. The Federal Reserve Act is amended by inserting immediately after section 9 the following new section: “ SECTION 9A. PARTICIPATION IN LOTTERIES PROHIBITED “ (a) A State member may not— “ (1) deal in lottery tickets; “ (2) deal in bets used as a means or substitute for participation in a lot tery; “ (3) announce, advertise, or publicize the existence of any lottery; “ (4) announce, advertise, or publicize the existence or identity of any par ticipant or winner, as such, in a lottery. “ (b) A State member bank may not permit— “ (1) the use of any part of any of its banking offices by any person for any purpose forbidden to the bank under subsection (a), or “ (2) direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a). “ (c) As used in this section— “ (1) The term ‘deal in' includes making, taking, buying, selling, redeem ing, or collecting. “ (2) The term 'lottery' includes any arrangement whereby three or more persons (the ‘participants') advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the partici pants (the ‘winners') will receive by reason of their advances more than the amounts they have advanced, the identity of the winners being determined by any means which includes— “ (A) a random selection; “ (B) a game, race, or contest; or “ (C) any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possi bility that he may become a winner. “ (3) The term ‘lottery ticket' includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery. “ (d) Nothing contained in this section prohibits a State member bank from accepting deposits or cashing or otherwise handling checks or other negotiable instruments, or performing other lawful banking services for a State operating a lottery, or for an officer or employee of that State who is charged with the ad ministration of the lottery. “ (e) The Board of Governors of the Federal Reserve System shall issue such regulations as may be necessary to the strict enforcement of this section and the prevention of evasions thereof.” Sec. 3. The Federal Deposit Insurance Act is amended by redesignating sec tions 20 and 21 as 21 and 22, respectively, and by inserting immediately after section 19 the following new section: “ Sec. 20. (a) A State nonmember insured bank may not— “ (1) deal in lottery tickets; 98 FEDERAL DEPOSIT INSURANCE CORPORATION “ (2) deal in bets used as a means or substitute for participation in a lottery; "(3 ) announce, advertise, or publicize the existence of any lottery; “ (4) announce, advertise, or publicize the existence or identity of any par ticipant or winner, as such, in a lottery. “ (b) A State nonmember insured bank may not permit— “ (1) the use of any part of any of its banking offices by any person for any purpose forbidden to the bank under subsection (a), or “ (2) direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a). “ (c) As used in this section— “ (1) The term 'deal in ’ includes making, taking, buying, selling, redeem ing, or collecting. “ (2) The term ‘lottery’ includes any arrangement whereby three or more persons (the ‘participants’) advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the partici pants (the ‘winners’) will receive by reason of their advances more than the amounts they have advanced, the identity of the winners being determined by any means which includes— “ (A) a random selection; “ (B) a game, race, or contest; or “ (C) any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possi bility that he may become a winner. “ (3) The term ‘lottery ticket’ includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery. “ (d) Nothing contained in this section prohibits a State nonmember insured bank from accepting deposits or cashing or otherwise handling checks or other negotiable instruments, or performing other lawful banking services fo r a State operating a lottery, or for an officer or employee of that State who is charged with the administration of the lottery. “ (e) The Board of Directors shall prescribe such regulations as may be ne cessary to the strict enforcement of this section and the prevention of evasions thereof." Sec. 4. Title IV of the National Housing Act is amended by adding the follow ing new section at the end: “ Sec. 410. (a) An insured institution may not— “ (1) deal in lottery tickets; “ (2) deal in bets used as a means or substitute for participation in a lot tery; “ (3) announce, advertise, or publicize the existence of any lottery; “ (4) announce, advertise, or publicize the existence or identity of any par ticipant or winner, as such, in a lottery. “ (b) An insured institution may not permit— “ (1) the use of any part of any of its own offices by any person fo r any purpose forbidden to the institution under subsection (a), or “ (2) direct access by the public from any of its own offices to any prem ises used by any person for any purpose forbidden to the institution under subsection (a). “ (c) As used in this section— “ (1) The term ‘deal in' includes making, taking, buying, selling, redeem ing, or collecting. “ (2) The term ‘lottery’ includes any arrangement whereby three or more persons (the ‘participants’) advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the partici pants (the ‘winners’) will receive by reason of their advances more than the RULES AND REGULATIONS OF THE CORPORATION 99 amounts they have advanced, the identity of the winners being determined by any means which includes— "(A ) a random selection; “ (B) a game, race, or contest; or “ (C) any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possi bility that he may become a winner. “ (3) The term ‘lottery ticket' includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery. “ (d) Nothing contained in this section prohibits an insured institution from accepting funds from, or performing any lawful services for, a State operating a lottery, or an officer or employee of that State who is charged with the adminis tration of the lottery. “ (e) The Federal Home Loan Bank Board shall prescribe such regulations as may be necessary to the strict enforcement of this section and the prevention of evasions thereof.” Sec. 5. (a) Chapter 61 of title 18 of the United States Code is amended by adding the following new section at the end: “ §1306.. Participation by financial institutions “ Whoever knowingly violates section 5136A of the Revised Statutes of the United States, section 9A of the Federal Reserve Act, section 20 of the Federal Deposit Insurance Act, or section 410 of the National Housing Act shall be fined not more than $1,000 or imprisoned not more than one year, or both." (b) The table of sections at the beginning of that chapter is amended by adding the following at the end: “ 1306. Participation by financial institutions." Sec. 6. The amendments made by this Act shall take effect on April 1, 1968. Approved December 15, 1967. RULES AND REGULATIONS OF THE CORPORATION— 1967 TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED NONMEMBER BANKS Mutual Savings Banks in Alaska Effective July 1, 1967, paragraph (e) of §329.7 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 329.7) is amended to read as follows: §329.7 Maximum rates of interest or dividends payable on deposits by insured nonmember mutual savings banks. (e) Banks in Alaska. Notwithstanding paragraph (b) of this section, any in sured nonmember mutual savings bank located in the State of Alaska may pay for any tim e on or after October 1, 1966, and prior to July 1, 1967, a rate of interest or dividends not in excess of 5 % percent per annum on any deposit, and for any time on or after October 1, 1966, may continue to pay a higher rate of interest or dividends in accordance with any tim e certificate of deposit, savings certificate, or sim ilar certificate issued by the bank prior to September FEDERAL DEPOSIT INSURANCE CORPORATION 100 22, 1966, requiring maintenance of the deposit for a stated period or making the rate of interest or dividends dependent thereon, and on any renewals or ex tensions of such certificates on the same terms and conditions. For the purposes of paragraphs (c) and (d) of this section, the applicable maximum rate for any tim e prior to July 1, 1967, for any such bank located in the State of Alaska is that prescribed by this paragraph. [F.R. Doc. 67-6717; Filed, June 14, 1967; 8:47 a.m.] TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION RECORDS AND INFORMATION Miscellaneous Amendments Effective July 4, 1967, §§301.1, 303.10, 305.1, 307.3, 334.4, and Part 309 of the rules and regulations of the Federal Deposit Insurance Corporation are amended as follows: PART 301— INTRODUCTORY 1. Section 301.1 is amended to read as follows: §301.1 Scope. The rules contained in this subchapter are promulgated pursuant to the pro visions of the Administrative Procedure Act (5 U.S.C. 551-559), the Federal De posit Insurance Act (12 U.S.C. 1811-1831), and other applicable laws. In accordance with the provisions of section 3(a) of the Administrative Procedure Act they state (1) the established places at which, the officers from whom, and the methods whereby, the public may secure information, make submittals or requests, or obtain decisions, (2) the general course and method by which the Corporation's functions are channeled and determined, including the nature and requirements of all formal and informal procedures available, and (3) rules of procedure, descriptions of forms available, or the places at which forms may be obtained, and instructions as to the scope and contents of all papers, reports, or examinations, except to the extent exempted by law. This subchapter also in cludes appropriate provisions with respect to rule making, adjudications, and hearings, as prescribed by law. A current description of the Corporation’s cen tral and field organization is separately published in the FEDERAL REGISTER. Proceedings by the Corporation within the meaning of this subchapter include: (a) The formulation and promulgation of rules and regulations, including amendments thereto or the repeal thereof; (b) The disposition of applications, requests, and submittals; (c) Formal and informal hearings and adjudications. PART 303— APPLICATIONS, REQUESTS, AND SUBMITTALS 2. Add to 303.10 after the words "Board of Review" the words "w ith respect to matters referred to it" and the following three paragraphs: §303.10 Procedure on applications. (c) The Chief of the Division of Examination and the Supervising Examiner of the District in which the bank is located have been authorized to take final ac tion with respect to the approval of certain applications, such as applications by a State nonmember insured bank to move its main office or branch or to obtain an extension of a time limitation imposed in connection with a previous applica tion. This delegated authority is subject to certain limitations set forth in the RULES AND REGULATIONS OF THE CORPORATION 101 delegations of authority which are available at the office of each Supervising Ex aminer. The Chief of the Division of Examination is also authorized to act upon applications by State nonmember insured banks for extensions of tim e of 90 days or less within which to register securities pursuant to the provisions of section 12(g) of the Securities Exchange Act of 1934, as amended. (d) For the purpose of assuring the performance and continuity in the man agement functions and activities of the Corporation, the Board of Directors has delegated, to the extent deemed necessary, authority with respect to the man agement of the Corporation’s affairs to certain designated officers, such author ity to be exercised only in the event of an emergency, involving an enemy attack on the continental United States or other warlike occurrence, which renders the Board of Directors unable to perform the management functions and activities normally performed by it. (e) With respect to any application, the Board of Directors will afford the ap plicant or other properly interested persons, including Government agencies, an opportunity to present views orally before the Board of Directors or its desig nated representative or representatives, either at informal conference discus sions or at informal presentation of evidence. PART 305— PAYMENT OF INSURED DEPOSITS §305.1 [Amended] 3. Amend the seventh sentence of §305.1 to read as follows: " It is the policy of the Corporation to make such payment by issuing its check for the amount of the insured deposit." PART 307— VOLUNTARY TERMINATION OF INSURED STATUS §307.3 [Amended] 4. At the beginning of paragraph (c) of §307.3 substitute the words " It is the policy of the Corporation to " for the words "The Corporation w ill". PART 334— BANK SERVICE ARRANGEMENTS §334.4 [Amended] 5. In the first sentence of §334.4 substitute the words " I t is the policy of the Corporation that assurances" for the word "Assurances". 6. Amend Part 309 as follows: PART 309— PUBLISHED AND UNPUBLISHED RECORDS AND INFORMATION §309.1 Published and unpublished information. (a) Information published or made available to the public— (1) Federal Register publication. To the extent required by sections 3 and 4 of the Administrative Procedure Act, as amended (5 U.S.C. 552, 553), and subject to the exemptions set forth in subsection (e) of section 3 of said Act the Corporation publishes in the FEDERAL REGISTER for the guidance of the public (i) descriptions of its central and field organization and the established places at which, the officers from whom, and the methods whereby, the public may secure information, make submittals or requests, or obtain decisions; (ii) statements of the general course and method by which its functions are channeled and determined, including the nature and requirements of all formal and informal procedures available; (iii) rules of procedure, descriptions of forms available or the places at which forms may be obtained, and instructions as to the scope and contents of all such papers and reports or examinations; (iv) substantive rule of general applicability adopted as authorized by law, and statements of general policy 102 FEDERAL DEPOSIT INSURANCE CORPORATION or interpretations of general applicability formulated and adopted by the Cor poration; (v) every amendment, revision or repeal of the foregoing; and (vi) general notices of proposed rule making, unless the persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. (2) Other published information— annual reports, (i) The Corporation pub lishes an annual report of its operations to Congress pursuant to the require ments of section 17(a) of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)). The Corporation also publishes an annual report to insured banks as of June 30 of each year which presents the current financial statements of the Corporation and its activities during the preceding 6 months, and an annual report on operating banking offices insured by the Corporation as of January 1 of each year which lists the names and locations of all insured banking offices, grouped by city and State. (ii) Other information: The Corporation also issues the following publications: Assets, Liabilities, and Capital Accounts, Commercial and Mutual Savings Banks (semiannually). Presents detailed data from condition statements, by State. Federal Deposit Insurance Act and Rules and Regulations (of the FDIC). Up dates the laws relating to the Federal Deposit Insurance Corporation and rules and regulations made by the Board of Directors. Your Insured Deposit. Questions and answers on applicability of insurance to particular circumstances. How to Get Your Money. Questions and answers on how to obtain an insured deposit when a bank fails. A Career in Bank Supervision. Describes employment opportunities for bank examiners in the Federal Deposit Insurance Corporation. Symbol of Confidence. Popular perspective on the background, function, and operations of the Federal Deposit Insurance Corporation. Survey of Deposits of Commercial and Mutual Savings Bank (June 30, 1966). A set of booklets consisting of: Insurance Coverage of Bank Deposits; National Summary of Accounts and Deposits in all Commercial Banks. Summary of Accounts and Deposits in All Commercial Banks, FDIC Districts 1-12 (1 booklet for each District). Summary of Accounts and Deposits in All Mutual Savings Banks. Assets and Liabilities of all Insured Banks. A semiannual release summarizing for the United States the assets and liabilities of all insured banks. Data for June published the following fall; data for December published following spring. Income of Insured Commercial Banks. Released once a year in April (data on the previous year) giving leading items of income for all insured commercial banks. Weekly Press Release. Lists actions taken by the Board of Directors with re spect to applications by insured State nonmember banks. (3) Information made available to the public. Except to the extent that the matters set forth in this paragraph relate to or contain information which is ex empted from the public disclosure provisions of section 3 of the Administrative Procedure Act, as amended (5 U.S.C. 552), or other law, the Corporation makes available for public inspection and copying, upon request to the Secretary of the Corporation in its office in Washington, D.C., during normal business hours, (i) all final opinions (including concurring and dissenting opinions) and all orders made in the adjudication of cases, (ii) those statements of policy and interpretations which have been adopted by the Corporation and are not pub lished in the FEDERAL REGISTER, and (iii) Manual of Examination Policies and Instructions to Liquidators. To the extent required to prevent a clearly un warranted invasion of personal privacy, the Corporation may delete identifying details when it makes available or publishes an opinion, statement of policy, in RULES AND REGULATIONS OF THE CORPORATION 103 terpretation, or staff manual or instruction. In each case the justification for the deletion will be fully explained in writing. The Corporation also maintains and makes available for public inspection and copying a current index providing information for the public as to any matter which is issued, adopted, or promulgated after July 4, 1967, and which is required by the Administrative Procedure Act to be made available or published. The Corporation makes available at its Washington office and at each of the 12 Federal Reserve banks for public inspection and copying reports from insured State nonmember banks required under the provisions of section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78). All requests fo r copies of records enumer ated in subdivisions (i), (ii), and (iii) of this subparagraph must be accom panied by a deposit with the Corporation of the estimated costs of copying such records at the rate of 10 cents per page. Such requests must provide a reasonably specific description of the record sought which will enable the Corporation to locate the record or records without undue difficulty. Except to the extent that the records relate to or contain information which is exempted from the public disclosure provisions of section 3 of the Adminis trative Procedure Act, as amended (5 U.S.C. 552) or other law, the Corporation upon request for identifiable records of the Corporation to the Secretary of the Corporation in its office in Washington, D.C., during normal business hours, will make such records available to any person who agrees to pay the costs of searching, preparing and copying such records at the rate of $5 per hour for searching and preparing and 10 cents per page for copying and has paid in ad vance to the Corporation the estimated costs thereof. Such requests must provide a reasonably specific description of the record sought which will enable the Corporation to locate the record w ithout undue difficulty. Any denial by an officer or employee of the Corporation of a request for any information or rec ord made under this part by any member of the public may be appealed by a written request to the Board of Directors of the Corporation from the person whose request is denied. (b) Unpublished information; confidential and privileged information. All files, documents, reports, books, accounts, and records (collectively referred to as “ records" in this section) pertaining to any bank, or the internal operations and affairs of the Corporation, in the possession or control of the Corporation or any officer, employee, or agent thereof, which are (1) exempt from disclosure by statute or executive order; (2) contained in or related to examination, oper ating, or condition reports prepared by or on behalf of, or for the use of the Corporation or any agency responsible for the supervision of financial institutions; (3) related solely to the internal personnel rules and practices of the Corporation; (4) privileged or relate to the business, personal, or financial affairs of any person and are furnished in confidence; (5) proceedings for cease and desist and suspension or removal orders or for the termination of the insured status of any bank; (6) interagency or intraagency memorandums or letters which would not be available by law to a private party in litigation with the Corporation; (7) investigatory records compiled for enforcement of the Federal Deposit Insurance Act and other statutes, except to the extent available by law to a private party; (8) personnel files and sim ilar files (including finan cial files) the disclosure of which would constitute a clearly unwarranted invasion of personal privacy; and (9) records of deliberations and discussions at meetings of the Board of Directors and any committee established by the Board of Directors and exhibits filed therewith, and all facts or information relating to such exempt matters acquired by the officers, employees or agents of the Corporation in the performance of their official duties (collectively referred to as “ inform ation" in this section) are confidential and privileged and the disclosure thereof is prohibited except in the manner and to the extent provided for in this section. (c) Disclosure prohibited. (1) Officers, employees, and agents of the Corpo ration are prohibited from allowing any person to inspect, examine, or copy any 104 FEDERAL DEPOSIT INSURANCE CORPORATION of said confidential or privileged records, or furnishing copies thereof, or dis closing any confidential and privileged information except as herein provided: (i) The Chief of any Division having custody thereof, in his discretion, may release or furnish any records or information, other than the records enumer ated in paragraph (b) of this section, and information acquired in reference thereto, to any governmental agency, State or Federal, in the exercise of its o f ficial duties and to any other person: Provided, however, That when such rec ords or information are requested by any person other than a governmental agency, the Division Chief shall find that the release or disclosure is not ex empted from public disclosure by law or detrimental or prejudicial to the bank or banks or person or persons from whom the records or information were ob tained or received. (ii) The Chief of the Division of Examination may furnish to any bank copies of any reports of examination or investigation of such bank (except the section of the report designated “ confidential") and other information pertaining to its affairs: Provided, That copies of such reports of examination and other informa tion so furnished to any bank shall remain the property of the Corporation and under no circumstances shall the bank or any of its directors, officials, or em ployees disclose or otherwise make public in any manner such reports or any portion thereof or other information so furnished. (iii) The Chief of the Division of Examination may furnish to the Comptroller of the Currency, to any Federal Reserve bank, and to any commission, board, or authority having supervision of a State nonmember bank, copies of reports of examination made on behalf of the Corporation and other information pertain ing to insured nonmember banks for use in the exercise of their official duties: Provided, That such reports of examination and other information so furnished to such officials or agency shall remain the property of the Corporation and un der no circumstances shall any such official or agency disclose or make public in any manner such reports or any portion thereof or other information so fu r nished. (iv) The Chief of the Division of Examination may furnish to any official of the Department of Justice or to any State prosecuting authority any information regarding defalcations, burglaries, or robberies affecting insured banks. (v) The Chief of the Division of Research may furnish to the Comptroller of the Currency, to any Federal Reserve bank, and to any commission, board, or authority having supervision of a State nonmember bank, copies of reports of condition made by insured banks to the Corporation including statements of as sets, liabilities, and capital accounts, and of earnings, expenses and distribution of profits for use in the exercise of their official duties: Provided, That under no circumstances shall such Federal or State officials make public the contents of such reports or any portion thereof, except in the publication of general statisti cal reports. (vi) The General Counsel of the Corporation may disclose to the proper Federal or State prosecuting authorities any and all records and information re lating to irregularities discovered in open and closed insured banks believed to constitute violations of any Federal or State statute. (vii) (a) The General Counsel may authorize the production of any record, the disclosure of any information, and the giving of any testimony with respect thereto, by any officer, employee, or agent of the Corporation, upon any pro ceeding, hearing, or trial, civil or criminal, in any Federal or State court or be fore any administrative board, commission, or committee, on behalf of or at the request of the Corporation or the United States where either is a party to or has an interest in the proceeding, hearing or trial, or any State prosecuting official, or the bank or person from whom such confidential and privileged rec ords and information were received or obtained. (b) The authorization hereunder may be given only in response to a sub poena or other legal process duly issued and served upon the Corporation at its RULES AND REGULATIONS OF THE CORPORATION 105 principal office, which service may be by registered mail addressed to the Cor poration at Washington, D.C., specifying the record requested, the nature and scope of the testimony to be elicited, the name of the witness and the place and time of appearance: Provided, That the General Counsel, in his discretion, may waive the requirement of service of subpoena or process when he believes it to be in the interest of justice to do so. Without such prior authorization, any officer, employee or agent of the Corporation required to respond to a subpoena or other legal process shall attend at the time and place therein mentioned and respectfully decline to produce any record or disclose any information or give any testimony with respect thereto, basing his refusal upon this rule. (d) Service of process on officer, employee, or agent. Any officer, employee, or agent of the Corporation served with a subpoena, order, or other process re quiring his personal attendance as a witness or the production of records or in formation upon any proceeding mentioned in paragraph (c) (1) (vii) of this section shall promptly advise (1) the court or tribunal which issued the process, and the attorney for the party at whose instance the process was issued, if known, of the substance of this rule, and (2) the General Counsel of the Corpo ration at Washington, D.C., of such service and of the records and information requested and of any facts which may be of assistance to the General Counsel in determining whether such records and information should be made available. (e) Authority of Chairman of Board of Directors. Notwithstanding any of the foregoing provisions, the Chairman of the Board of Directors, in his discretion and pursuant to law, may authorize the production, examination, or inspection of any records, or the furnishing of copies thereof, or the disclosure of any in formation, or the Chairman, in his discretion, may direct the General Counsel or the Chief of any Division to refuse to permit the production, examination, or in spection of any records, or the furnishing of copies thereof, or the disclosure of any information, if he shall find such action to be in the best interests of the Corporation and consistent with the public interest and applicable law. (f) Publication of data. The Board of Directors or the Chairman may from time to time authorize and direct the publication and public distribution of in formation and data compiled from the records of the Corporation. [F.R. Doc. 67-7535; Filed, July 3, 1967; 8:45 a.m.] TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION SUBCHAPTER A— PROCEDURE AND RULES OF PRACTICE PART 303— APPLICATIONS, REQUESTS, AND SUBMITTALS Effective July 19, 1967, Part 303 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR Part 303) is revised to read as follows: Sec. 303.1 303.2 303.3 303.4 303.5 303.6 303.7 303.8 Application by nonmember bank for deposit insurance. Application by insured State nonmember bank to establish a branch. Application by insured State nonmember bank to move main office or branch. Application by insured State nonmember bank to reduce or retire capi tal. Application for conversion, merger, consolidation, assumption, and sale of asset transactions. Application by insured State nonmember bank to extend its corporate or charter powers. Application to continue or resume insured status. Application for exemption from or exception to advertising require ments. 106 303.9 303.10 303.11 FEDERAL DEPOSIT INSURANCE CORPORATION Other applications. Procedure on applications. Notice of disposition of application. §303.1 Application by nonmember bank 1 for deposit insurance. Application for deposit insurance by an existing or proposed State nonmember bank should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation District in which the bank or proposed bank is or will be located. Any such application by an existing bank must be accompanied by separate applications for the consent of the Corporation to the continued op eration of each branch which it proposes to continue to operate. Any such ap plication by a proposed bank must be accompanied by a separate application for the consent of the Corporation to establish and operate each proposed branch. The appropriate forms of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this title for list of forms and instructions.) §303.2 Application by insured State nonmember bank to establish a branch.2 Application by an insured State nonmember bank (except a District bank) to establish and operate a new branch should be filed with the Supervising Exam iner of the Federal Deposit Insurance Corporation District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the Dis trict in which the application originates. (See Part 304 of this title for list of forms and instructions.) §303.3 Application by insured State nonmember bank to move main office or branch. Application for the consent of the Corporation to move the main office or branch of an insured State nonmember bank (except a District bank) should be filed with the Supervising Examiner of the Federal Deposit Insurance Corpora tion District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this title for list of forms and instructions.) §303.4 Application by insured State nonmember bank to reduce or retire capi tal. Application for the consent of the Corporation to the reduction in the amount, or retirement of any part, of the common or preferred capital stock, or retirement of any of the capital notes or debentures, of an insured State non member bank (except a District bank) should be filed with the Supervising Ex aminer of the Federal Deposit Insurance Corporation District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this title for list of forms and instructions.) §303.5 Application for conversion, merger, consolidation, assumption and sale of asset transactions. (a) With noninsured bank or institution. Application by an insured bank for the consent of the Corporation to merge or consolidate with a noninsured bank or institution, or to convert into a noninsured institution, or to assume liability 1 A nonm em ber bank is a bank which is not a m em ber of the Federal Reserve System. - "The term 'branch' includes any branch bank, branch office, branch agency, additional office, or any branch place of business located in any State of the United States or in any T e rritory of the United States, Puerto Rico, Guam, or the V irgin Islands at w hich deposits are received or checks paid or money lent.” (Sec. 3(o) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813(o)).) RULES AND REGULATIONS OF THE CORPORATION 107 to pay any deposits made in, or sim ilar liabilities of, any noninsured bank or in stitution, or to transfer assets to any noninsured bank or institution in consideration of the assumption of liability for any portion of the deposits made in such insured bank, together with copies of all agreements or proposed agree ments relating thereto, should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation District in which the insured bank is lo cated. The appropriate form of application and instructions fo r completing the form, as well as instructions concerning notice to depositors, may be obtained upon request from the office of said Supervising Examiner. (b) Conversion with diminution of capital or surplus. Application fo r the con sent of the Corporation to convert into an insured State nonmember bank (except a D'istrict bank)— when the conversion will result in the converted bank's having less capital stock or surplus than the converted bank at the time of the shareholders' meeting approving such conversion— together with copies of the charter a n d /o r articles of association of the converted bank, should be filed with the Supervising Examiner of the Federal Deposit Insurance Corpora tion District in which the insured bank is located. The appropriate form of appli cation and instructions for completing the form may be obtained upon request from the office of said Supervising Examiner. (c) Merger, consolidation, asset acquisition or assumption transaction be tween insured banks. Application by an insured bank fo r the consent of the Corporation to merge or consolidate with, acquire the assets of, or assume the liability to pay any deposits made in, another insured bank— when the resulting or assuming bank is to be an insured State nonmember bank (except a District bank)— together with copies of all agreements or proposed agreements relating thereto, including the charter or articles of incorporation of the resulting or as suming bank, should be filed with the Supervising Examiner of the Federal De posit Insurance Corporation District in which the resulting or assuming bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the office of said Supervising Exam iner. §303.6 Application by insured State nonmember bank to extend its corporate or charter powers. Application for the consent of the Corporation to the extension of the corpo rate or charter powers of an insured State nonmember bank (except a District bank) should be filed with the Supervising Examiner of the Federal Deposit In surance Corporation District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this title for list of forms and instructions.) §303.7 / Application to continue or resume insured status. Application under § 327.3(c) of this title by a bank whose insured status has been terminated for permission to continue or to resume its status as an in sured bank should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation District in which the bank is located. Such appli cation should (a) be in writing, (b) be signed by the president, or cashier, or other managing officer of the bank, (c) be accompanied by a certified copy of the resolution of its board of directors authorizing the submission of such appli cation, (d) contain a statement that the bank's insured status has been term i nated (including the date thereof and the basis therefor), that the insurance of its deposits has not ceased, and th a t it applies for permission to continue or re sume its status as an insured bank, and (e) state the reasons why the continu ance or resumption of such status should be permitted by the Corporation. §303.8 Application for exemption from or exception to advertising require ments. Any application made by an insured bank under any of the provisions of Part 108 FEDERAL DEPOSIT INSURANCE CORPORATION 328 of this title should be filed with the Division of Examination of the Corporation at its principal office. Such application should (a) be in writing, (b) be signed by the president, or cashier, or other managing officer of the bank, and (c) state, in conformity with the particular provision in respect of which the application is made, the reason for the request in detail and the reason why the application should be granted. §303.9 Other applications. Except as otherwise provided by rule or regulation, all applications, requests, and submittals for which no form of application has been prescribed by the Corporation should (a) be in writing, (b) be signed by the applicant or his duly authorized agent, (c) contain a statement of the applicant's interest therein, a complete and concise statement of the action requested and the reasons and facts relied upon as the basis for such requested action, and (d) be addressed to the Secretary at the principal office of the Corporation. The applicant shall furnish such other pertinent information as may be required by the Corporation. Whenever applicable, the forms specified in Part 304 of this title should be used, the instructions issued with respect thereto should be followed, and sub mission should be made as therein provided. §303.10 Procedure on applications. (a) With respect to applications for deposit insurance under §303.1, the Di vision of Examination of the Corporation will cause an investigation to be con ducted and an examination to be made of the bank or proposed bank. Thereafter, the Board of Directors, in accordance with applicable provisions of law, will act upon such application after considering the report of such investi gation and examination, the recommendations thereon of the examiner and Su pervising Examiner of the District in which the bank is or will be located, the rec ommendations of the Division of Examination, the recommendations of the Board of Review with respect to matters referred to it, and the legal opinion of counsel for the Corporation. The applicant bank will be duly advised of the Board's decision upon such application. (b) With respect to all other applications, requests, or submittals, the Board of Directors will cause such an investigation or examination, or both, to be made by the proper Divisions of the Corporation as the Board shall deem ap propriate, and upon the report of such investigation and examination, and the recommendations thereon, will take such action as it shall deem necessary or appropriate in the premises. (c) The Chief of the Division of Examination and the Supervising Examiner of the District in which the bank is located have been authorized to take final ac tion with respect to the approval of certain applications, such as applications by an insured State nonmember bank to move its main office or branch or to ob tain an extension of tim e lim itation imposed in connection with a previous application. This delegated authority is subject to certain lim itations set forth in the delegations of authority which are available at the office of each Supervising Examiner. The Chief of the Division of Examination is also authorized to act upon applications by insured State nonmember banks for extensions of time of 90 days or less within which to register securities pursuant to the provisions of section 12(g) of the Securities Exchange Act of 1934, as amended. (d) For the purpose of assuring the performance and continuity in the man agement functions and activities of the Corporation, the Board of Directors has delegated, to the extent deemed necessary, authority with respect to the man agement of the Corporation’s affairs to certain designated officers, such author ity to be exercised only in the event of an emergency, involving an enemy attack on the continental United States or other warlike occurrence, which renders the Board of Directors unable to perform the management functions and activities normally performed by it. (e) With respect to any application, the Board of Directors will afford the ap plicant or other properly interested persons, including Government agencies, an RULES AND REGULATIONS OF THE CORPORATION 109 opportunity to present views orally before the Board of Directors or its desig nated representative or representatives, either at informal conference dis cussions or at informal presentation of evidence. §303.11 Notice of disposition of application. Prompt notice will be given of the grant or denial, in whole or in part, of any written application, petition, or other request of any interested person made in connection with any agency proceeding. In the case of a denial, except in af firm ing a prior denial, or where the same is self-explanatory, such notice will be accompanied by a simple statement of procedural or other grounds. [F.R. Doc. 67-8315; Filed, July 18, 1967; 8:48 a.m.] PART 304— FORMS, INSTRUCTIONS, AND REPORTS Effective July 19, 1967, Part 304 of the rules and regulations of the Federal Deposit Insurance Corporation (12 C.F.R. 304) is revised to read as follows: Sec. 304.1 304.2 304.3 Certified statements. Reports of condition, etc. Forms and instructions. §304.1 Certified statements. The certified statements required to be filed by insured banks in accordance with the provisions of section 7 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1817), shall be filed with the Fiscal Agent of the Corpora tion upon the forms, and in the manner, prescribed by the Board of Directors. The assessments required to be certified must be paid to the Corporation at the time such statements are required to be filed. The form of certified statement will be furnished to all insured banks by, or may be obtained upon request from, the Fiscal Agent. §304.2 Reports of condition, etc. Whenever required, insured State nonmember banks (except District banks) shall file reports of condition, reports of income and dividends, and summaries of deposits with the Division of Research upon the forms, in the manner, and pursuant to the instructions prescribed by the Board of Directors from time to time. The form of such reports and instructions for completing the same will be furnished to all such banks by, or may be obtained upon request from, the Divi sion of Research. Each insured national bank and each insured District bank at the time of making reports of condition to the Comptroller of the Currency and each insured State member bank at the time of making reports of condition to the Federal Reserve bank, required under the Federal Deposit Insurance Act, shall furnish an executed and attested copy thereof to the Corporation. §304.3 Forms and instructions. The following forms and instructions have been prepared by the Corporation for the use of banks and may be obtained by any person properly and directly concerned therewith upon request at the office designated in this chapter: (a) Form 82: Application of proposed bank (other than mutual savings) for Federal deposit insurance. The proposed incorporators are required to make statements and representations and to submit information with respect to the several factors enumerated in section 6 of the Federal Deposit Insurance Act (12 U.S.C. 1816). The application on Form 82 must be executed in quadrupli cate. Three applications signed by the proposed incorporators must be forwarded to the Supervising Examiner and the other application may be re tained by the prospective incorporators. Applications filed on Form 82 must be accompanied by a certified copy of the proposed articles of incorporation or as sociation and the requisite number of properly executed Forms 83. If the pro 110 FEDERAL DEPOSIT INSURANCE CORPORATION posed bank contemplates the establishment of a branch or branches, its application on Form 82 must be accompanied by a properly executed Form 85 for each branch. After incorporation is duly effected, the bank must submit a properly executed Form 82a. (b) Form 82-M: Application of proposed mutual savings bank for Federal de posit insurance. Form 82-M, which is substantially the same as Form 82, should be used when the proposed bank is to be a mutual savings bank and should be prepared and submitted in the same manner as Form 82. If the proposed bank contemplates the establishment of a branch or branches, its application on Form 82-M must be accompanied by a properly executed Form 85-M for each branch. (c) Form 82a and Form 82a-M: Certificate of adoption of resolution. Form 82a is a copy of the resolution of the board of directors (or trustees) of the bank approving the action of the prospective incorporators in preparing and pre senting its application for Federal deposit insurance on Form 82 or 82-M, certi fied to be a true and correct copy by the president or vice president and cashier or secretary. After incorporation has been duly effected and the bank is chartered to do business by the proper State authority, four properly executed Forms 82a must be transmitted to the Supervising Examiner. If not previously submitted, Form 82a must be accompanied by a copy of the bank's articles of incorporation or association and a copy of the bank's license or authorization to engage in the business of receiving deposits. (d) Form 84: Application for Federal deposit insurance by an existing nonin sured State bank (other than mutual savings). The applicant bank is required to submit statements, representations, and information with respect to the several factors enumerated in section 6 of the Federal Deposit Insurance Act (12 U.S.C. 1816) and a copy of the resolution of its board of directors authorizing the bank's president or vice president and cashier or secretary to make the applica tion. The application must be executed in quadruplicate, signed by such officers, and the bank's corporate seal affixed thereto. Three signed applications must be forwarded to the Supervising Examiner and the other application may be retained by the bank. Applications filed on Form 84 must be accompanied by the requisite number of properly executed Forms 83 and a certified copy of the articles of incorporation or association, including any amendments thereto. If the bank has a branch or branches, its application on Form 84 must be ac companied by a properly executed Form 85 for each branch. (e) Form 84-M: Application for Federal deposit insurance by an existing non insured mutual savings bank. Form 84-M, which is substantially the same as Form 84, should be used by mutual savings banks and should be prepared and submitted in the same manner as Form 84. If the bank has a branch or branches, its application on Form 84-M must be accompanied by a properly executed Form 85-M for each branch. (f) Form 83 and Form 83-M; Financial statement. Form 83 must be executed in triplicate and certified to be true and correct by each individual director (or trustee) and officer of the bank or proposed bank (who is solely responsible for its contents) for the benefit of the Board of Directors of the Corporation in de termining, with respect to the applicant bank, the general character of its man agement in accordance with section 6 of the Federal Deposit Insurance Act (12 U.S.C. 1816). The requisite number of properly executed and signed Forms 83 must accompany each application on Form 82, Form 82-M, Form 84, or Form 84-M. (g) Form 85, Form 85a, and Form 85b: Application of insured State non member bank (except District bank and mutual savings bank) to establish or move its main office or branch. (1) Form 85 is an application to establish a branch. The applicant bank is required to submit statements, representations, and information with respect to the several factors enumerated in section 6 of the Federal Deposit Insurance Act (12 U.S.C. 1816) and a copy of the resolu RULES AND REGULATIONS OF THE CORPORATION 111 tion of its board of directors authorizing the bank's president or vice president and cashier or secretary to make the application. The application must be exe cuted in quadruplicate, signed by the president or vice president, have the corporate seal of the bank affixed thereto, and be attested by the cashier or secretary. Three signed applications must be forwarded to the Supervising Ex aminer and the other application may be retained by the bank. The application must be accompanied by a certified copy of the bank's articles of incorporation or association, including any amendments thereto unless previously submitted to the Corporation and not subsequently amended. (2) Form 85a is an application to move main office or branch. It is similar to Form 85 and should be prepared and submitted in the same manner as Form 85. (3) Form 85b is an application to establish a branch pursuant to designation as depositary and financial agent of the United States Government. It is similar to Form 85 and should be prepared and submitted in the same manner as Form 85. (h) Form 85-M and Form 85a-M: Application by insured nonmember mutual savings bank to establish a branch or move its main office or branch. (1) Form 85-M is substantially the same as Form 85 and should be prepared and subm it ted in the same manner as Form 85. (2) Form 85a-M is substantially the same as Form 85a and should be pre pared and submitted in the same manner as Form 85. (i) Form 86: Application for merger, consolidation, asset acquisition, or as sumption. The bank applying for prior written consent to merge with, consolidate with, acquire the assets of, or assume liability to pay deposits made in, another bank or institution, pursuant to section 18(c) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1828(c)), and for the establishment of branches incident thereto pursuant to section i8 (d ) of the Act is required to submit statements, representations, and information with respect to the several factors enumerated in said section 18(c). Twelve copies of the application and all documents, schedules, and exhibits, including the agreement between the participating banks and the charter or articles of incorporation of the resulting or assuming bank, are to be executed by an authorized officer with the bank’s corporate seal affixed and forwarded to the Supervising Examiner. The Corpora tion will furnish the applicant bank with a form of the notice (Form 116) for publication provided for in said section 18(c). (j) Form 100: Application for consent to retirement of common or preferred stock, capital notes, or debentures. The applicant bank is required to submit statements with respect to the nature of the proposal, source of funds to effect the proposal, and other steps involved in the retirement. The application con tains a statement of assets and liabilities and the disposition of certain assets adversely classified in the preceding report of examination made of the bank by examiners of the Corporation. Three applications certified to be true and correct and signed by the president or cashier of the bank must be forwarded to the Supervising Examiner. (k) Form 102: Application. Form 102 should be used by all banks applying for the consent of the Corporation with respect to any application requiring such consent and for which no specific form is prescribed by this section or otherwise. The form contains a copy of the resolution of the bank's board of d i rectors describing the proposal and authorizing the application, a statement of the action taken upon the proposal by the proper State banking authority where such action is required, and must be signed by the president or vice president and attested by the cashier or secretary. The application must be accompanied by a copy of the bank's articles of incorporation or association including any amendments thereto unless previously submitted to the Corporation and not subsequently amended. The application must be executed in quadruplicate. Three signed applications must be submitted to the Supervising Examiner of 112 FEDERAL DEPOSIT INSURANCE CORPORATION the District wherein the bank is located and one copy may be retained by the bank. (I) Form 64: Report of condition (from banks other than mutual savings). Form 64 is a report in the form of a standard statement of the assets and lia bilities of the reporting bank together with additional detailed breakdown of se lected items and information for assessment purposes. When special circumstances so require, additional detail with respect to specific asset or lia bility items may be required. Reports of condition must be prepared in accor dance with the instructions contained in the booklet entitled “ Instructions for the preparation of Report of Condition on Form 64", copies of which are furnished by the Corporation to all insured State nonmember banks (except District banks) and which may be obtained on request from the Division of Research. (m) Form 64 (Savings): Report of condition (from mutual savings banks). Form 64 (Savings) is substantially the same as Form 64 and should be used by mutual savings banks. (n) Form 73: Report of income and dividends (from banks other than mutual savings). Report of income and dividends, Form 73, is a report in the form of a standard profit and loss statement and a reconciliation of changes in total capi tal accounts during the year. When special circumstances so require, additional detail with respect to specific income or expense items, charge-offs or recov eries, profits on assets sold, or changes in total capital account may be required. Reports of income and dividends must be prepared in accordance with the instructions contained in the booklet entitled “ Instructions for the preparation of Report of Income and Dividends on Form 73", which is fu r nished by the Corporation to all insured State nonmember banks (except District banks) and which may be obtained on request from the Division of Research. (o) Form 73 (Savings): Report of income and dividends (from mutual sav ings banks). Form 73 (Savings) is substantially the same as Form 73 and should be used by mutual savings banks. (p) Form 89: Summary of deposits. Report of summary of deposits is a re port of the number of deposit accounts and the amount of deposits in such ac counts grouped by size of account and type of deposit. Summary of deposit reports must be prepared in accordance with instructions contained in the pam phlet entitled ‘ Instructions for preparation of Form 8 9 ", which is furnished by the Corporation to all insured banks and which may be obtained on request from the Division of Research. (q) Form 545: Certified statement (for banks other than mutual savings). A Form 545 must be submitted on or before January 31 and July 31 of each year by every insured bank, except any newly insured banks which must submit their first certified statement on Form 645, and any mutual savings banks which must use Form 545 (Savings). Form 545 shows the deposit liabilities, less au thorized deductions, reported in two reports of condition in each semiannual as sessment period. The form will show the computation of the assessment base and the amount of the assessment due the Corporation. It must be prepared in duplicate, certified by the president of the bank or any other officer designated by its board of directors, and an original must be forwarded to the Fiscal Agent. The duplicate copy should be retained in the bank’s file.1 The forms are mailed to all insured banks each six months in ample tim e to permit compliance with the law, but if not received on or before January 1 or July 1, they should be obtained from the Fiscal Agent. Any questions in respect to such forms should 1 Section 7(b)(6) of the Federal Deposit Insurance Act, which relates to assessment base deductions, provides, in part, as follow s: “ Each insured bank, as a condition to the righ t to make any such deduction in determ in ing its assessment base, shall m aintain such records as w ill readily pe rm it verification of the correctness of its assessment base. No insured bank shall be required to retain such records fo r such purpose fo r a period in excess of five years from the date of the filin g of any certified statem ent, except th a t when there is a dispute between the insured bank and the Corporation over the am ount o f any assessment the bank shall retain such records until final de term ination of the issue." RULES AND REGULATIONS OF THE CORPORATION 113 be directed to the Fiscal Agent. (r) Form 545 (Savings): Certified statement (for mutual savings banks). This form is substantially the same as Form 545 and should be used by mutual sav ings banks. (s) Form 645: First certified statement (for banks other than mutual sav ings). The first certified statement, Form 645, must be submitted on or before July 31 or January 31 following the semiannual period in which the bank began operation as an insured bank. The form shows the deposit liabilities, less au thorized deductions, as provided by law, on the last date within such period for which it was required to submit a report of condition or, if such bank became an insured bank after the last date in such period for which a report of condi tion was required, such bank shall make a report of condition as of the last day of such semiannual period, and shall file with the Corporation a certified state ment showing, as its assessment base for such period, its assessment base for the date of such special report. The form will show the computation of the assessment base and the amount of the assessment due the Corporation. It must be prepared in duplicate, certified by the president of the bank or any other officer designated by its board of directors, and the original must be forwarded to the Fiscal Agent. The duplicate copy shall be retained in the bank's file.1 The forms will be mailed by the Fiscal Agent to newly insured banks with appropriate instructions for their preparation. (t) Form 645 (Savings): First certified statement (for mutual savings banks). This form is substantially the same as Form 645 and should be used by mutual savings banks. (u) Form 845: Final certified statement— for use by an insured bank (except mutual savings banks) whose deposits are assumed by another insured bank. This statement, Form 845, shows the deposit liabilities, less authorized deduc tions, of the bank in the report or reports of condition prior to the assumption date. Form 845, accompanied by appropriate letter of explanation and instruc tions, will be mailed by the Fiscal Agent to each insured bank whose deposit lia bilities are assumed by another insured bank. The form must be prepared in duplicate, certified by the president of the bank or any other officer designated by its board of directors, and the original must be forwarded to the Fiscal Agent. The duplicate copy should be retained in the bank's files.1 If the deposits of the liquidating bank are assumed by a newly insured bank, the liquidating bank is not required to file Form 845 or to pay any assessments upon the de posits so assumed after the semiannual period in which the assumption takes effect. (v) Form 845 (Savings): Final certified statement (for mutual savings banks). This form is substantially the same as Form 845 and should be used by mutual savings banks. (w) Form 845A: Final certified statement— for use of an insured bank (other than mutual savings banks) whose deposit liabilities are assumed by another in sured operating bank. (To be used when the assuming bank executes the certified statement for the bank whose deposits were assumed.) Form 845A may be substituted for Form 845 described in paragraph (u) of this section if the assuming bank is executing the certified statement for the bank whose de posit liabilities were assumed. Form 845A is prepared in the same manner as Form 845 except the certification is executed by an official of the assuming bank. (x) Form 845A (Savings): Final certified statement— for use of an insured mutual savings bank whose deposit liabilities are assumed by another insured operating bank. (To be used when the assuming bank executes the certified statement for the bank whose deposits were assumed.) Form 845A (Savings) may be substituted for Form 845 (Savings) described in paragraph (v) of this section if the assuming bank is executing the certified statement for the bank whose deposit liabilities were assumed. Form 845A (Savings) is prepared in the 114 FEDERAL DEPOSIT INSURANCE CORPORATION same manner as Form 845 (Savings) except the certification is executed by an official of the assuming bank. (y) Amended and corrected certified statements. Forms for use in amending or correcting previously submitted certified statements are identical in number and form with Forms 545, 645, 845, 845A (for other than mutual savings banks), 545 (Savings), 645 (Savings), 845 (Savings), and 845A (Savings) de scribed above, except the title of the forms contains the additional word “ Amended” or “ Corrected". These forms may be obtained on request from the Fiscal Agent. [F.R. Doc. 67-8318; Filed, July 18, 1967; 8:49 a.m.] PART 306— RECEIVERSHIPS AND LIQUIDATIONS National Bank Receiverships Effective July 19, 1967, the fifth and sixth sentences and footnote 1 of §306.2 National bank receiverships of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 306.2) are amended by substituting the figure “ $15,000" for the figure “ $10,000". [F.R. Doc. 67-8319; Filed, July 18, 1967; 8:49 a.m.] PART 307— VOLUNTARY TERMINATION OF INSURED STATUS Miscellaneous Amendments Effective July 19, 1967, Part 307 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR Part 307) is amended as follows: 1. Footnote 2 is amended by striking out the words “ and to the Reconstruc tion Finance Corporation if it owns or holds as pledgee any preferred stock, capital notes, or debentures of such bank,". 2. Footnote 8 is amended by substituting the words “ Section 8 (o )" for the words “ Section 8 (b )". 3. Paragraph (a) of §307.3 is amended by substituting the words “ section 8 (q )" for the words “ section 8 (d )" in the form for notice to depositors. 4. Footnote 9 is amended by substituting the words “ Section 8 (q )" for the words “ Section 8 (d )". [F.R. Doc. 67-8320; Filed, July 18, 1967; 8:49 a.m.] SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY PART 325— INTRODUCTORY Scope Effective July 19, 1967, §325.0 Scope of the rules and regulations of the Fed eral Deposit Insurance Corporation (12 CFR 325.0) is amended by substituting the words “ subchapter II of chapter 5 of title 5, United States Code" for the words “ the Administrative Procedure Act (60 Stat. 2 3 7 )" and by substituting the words “ section 552(a)(1)(D) of title 5, United States Code" fo r the words “ section 3(a)(3) of the Administrative Procedure A ct". [F.R. Doc. 67-8321; Filed, July 18, 1967; 8:49 a.m.] PART 327— ASSESSMENTS Payment of Assessments by Banks Whose Insured Status Has Terminated Effective July 19, 1967, the firs t sentence of paragraph (c) of §327.3 Pay ment of assessments by banks whose insured status has terminated of the 115 RULES AND REGULATIONS OF THE CORPORATION rules and regulations of the Federal Deposit Insurance Corporation is amended by substituting the words “ section 8(a) or (o )” fo r the words “ section 8 (a ) or (b )” [F.R. Doc. 67-8322; Filed, July 18, 1967; 8:49 a.m.] PART 331— INSURANCE OF TRUST FUNDS Claim by Fiduciary Bank fo r Insured Deposits of Trust Estates Effective July 19, 1967, §331.1(d) of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 331.1(d)) is amended to read as fo l lows: §331.1 * Claim by fiduciary bank for insured deposits of trust estates. * $ * $ (d) Insured deposit of a trust estate. In arriving at the total insured deposit of a fiduciary bank or tru st company with respect to any tru st estate, the de posit of such estate as determined in accordance with any paragraph of this section shall be combined with that determined under any other paragraph of this section and the insured deposit shall be the total less any amount thereof in excess of $15,000. [F.R. Doc. 67-8323; Filed, July 18, 1967; 8:49 a.m.] TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION SUBCHAPTER A— PROCEDURE AND RULES OF PRACTICE PART 308— RULES OF PRACTICE AND PROCEDURES Effective August 1, 1967, Part 308 of the rules and regulations is amended as follows: SUBPART A— RULES OF PRACTICE APPLICABLE TO ALL HEARINGS Sec. 308.1 Scope. 308.2 Appearance and practice before the Corporation. 308.3 Notice of hearing. 308.4 Answer. 308.5 Conduct of hearings. 308.6 Subpenas. 308.7 Rules of evidence. 308.8 Motions. 308.9 Proposed findings and conclusions and recommended decision. 308.10 Exceptions. 308.11 Briefs. 308.12 Oral argument before the Board of Directors. 308.13 Notice of submission to the Board of Directors. 308.14 Decision of Board of Directors. 308.15 Filing papers. 308.16 Service. 308.17 Copies. 308.18 Computing time. 308.19 Documents in proceedings confidential. 308.20 Formal requirements as to papers filed. 116 FEDERAL DEPOSIT INSURANCE CORPORATION SUBPART B— RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS FOR THE INVOLUNTARY TERMINATION OF INSURED STATUS 308.21 Scope. 308.22 Grounds for termination of insurance. 308.23 Notice of intention to terminate insured status. 308.24 Order terminating insured status. 308.25 Consent to termination of insured status. 308.26 Notice of termination of insured status. 308.27 Termination of insured status of banking institution not engaged in the business of receiving deposits other than trust funds. SUBPART C— RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RE LATING TO CEASE-AND-DESIST ORDERS 308.28 Scope. 308.29 Grounds for cease-and-desist orders. 308.30 Notice of charges and hearing. 308.31 Issuance of order. 308.32 Effective date. 308.33 Temporary cease-and-desist orders. 308.34 Effective date of temporary order. SUBPART D— RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RE LATING TO REMOVAL AND SUSPENSION ORDERS 308.35 Scope. 308.36 Grounds for removal order. 308.37 Grounds for suspension order. 308.38 Effective date of suspension order. 308.39 Notice of intention to remove and hearing. 308.40 Issuance of removal order and effective date. 308.41 Suspension and removal where felony charged. SUBPART A— RULES OF PRACTICE APPLICABLE TO ALL HEARINGS §308.1 Scope. (a) This subpart prescribes rules of practice and procedure followed by the Federal Deposit Insurance Corporation in hearings held pursuant to the provi sions of section 8 of the Federal Deposit Insurance Act pertaining to (1) invol untary termination of the insured status of any bank, (2) the issuance of cease-and-desist orders against any insured State nonmember bank, and (3) the issuance of orders removing or suspending from office a n d /o r prohibiting from further participation in the conduct of the bank's affairs, any director or officer of an insured State nonmember bank or any other person participating in the conduct of the affairs of such a bank. (b) In connection with any proceeding under Subpart C or D of this part, the Corporation will provide the appropriate State supervisory authority with timely notice of its intent to institute such a proceeding and the grounds therefor. Un less within such time as the Corporation deems appropriate in the light of the circumstances of the case (which time will be specified in the notice) satis factory corrective action is effectuated by action of the State supervisory auth ority, the Corporation will proceed as provided in Subparts C and D of this part. §308.2 Appearance and practice before the Corporation. (a) Power of attorney and notice of appearance. Any person who is a mem ber in good standing of the bar of the highest court of any State, possession, territory, Commonwealth, or the District of Columbia, may represent others be fore the Corporation upon filing with the Secretary a written declaration that he is currently qualified as provided by this paragraph, and is authorized to repre sent the particular party on whose behalf he acts. Any other person desiring to appear before or transact business with the Corporation in a representative ca pacity may be required to file with the Secretary of the Corporation a power of RULES AND REGULATIONS OF THE CORPORATION 117 attorney showing his authority to act in such capacity, and he may be required to show to the satisfaction of the Board of Directors that he has the requisite qualifications. Attorneys and representatives of parties to proceedings shall file a written notice of appearance with the Secretary or with the trial examiner. (b) Summary suspension. Contemptuous conduct at an argument before the Board of Directors or at a hearing before a trial examiner shall be ground for exclusion therefrom and suspension for the duration of the argument or hear ing. §308.3 Notice of hearing. Whenever a hearing is ordered by the Board of Directors in any proceeding pursuant to section 8 of the Federal Deposit Insurance Act, a notice of hearing shall be given by the Secretary or other designated officer acting for the Board of Directors to the party afforded the hearing and to the appropriate supervisory authority. Such notice shall state the time, place, and nature of the hearing, the trial examiner, and the legal authority and jurisdiction under which the hearing is to be held, and shall contain a statement of the matters of fact or law consti tuting the grounds for the hearing, and shall be delivered by personal service, by registered or certified mail to the last known address, or other appropriate means, sufficiently in advance of the date set for hearing to comply with the provisions of the Federal Deposit Insurance Act. The term “ party"-means a per son or agency named or admitted as a party, or any person or agency who has filed a written request and is entitled as of right to be admitted as a party; but a person or agency may be admitted for a limited purpose. §308.4 Answer. (a) When required. In any notice of hearing issued by the Board of Directors, the Board of Directors may direct the party or parties afforded the hearing to file an answer to the allegations contained in the notice, and any party to any proceeding may file an answer. Except where a different period of not less than 10 days after service of a notice of hearing is specified by the Board of Directors, a party directed to file an answer, or a party who elects to file an answer, shall file the same with the Secretary within 20 days after service upon him of the notice of hearing. (b) Requirements of answer; effect of failure to deny. An answer filed under this section shall specifically admit, deny, or state that the party does not have sufficient information to admit or deny each allegation in the notice of hearing. A statement of lack of information shall have the effect of a denial. Any allega tion not denied shall be deemed to be admitted. When a party intends to deny only a part or a qualification of an allegation, he shall specify so much of it as is true and shall deny only the remainder. (c) Admitted allegations. If a party filing an answer under this section elects not to contest any of the allegations of fact set forth in the notice of hearing, his answer shall consist of a statement that he admits all of the allegations to be true. Such an answer shall constitute a waiver of hearing as to the facts al leged in the notice, and together with the notice will provide a record basis on which the trial examiner shall file with the Secretary his recommended decision containing his findings of fact, conclusions of law and proposed order. Any such party may, however, upon service of the recommended decision, findings, con clusions and proposed order of the trail examiner, file exceptions thereto within the time provided in §308.10(a). (d) Effect of failure to answer. Failure of a party to file an answer required by this section within the tim e provided shall be deemed to constitute a waiver of his right to appear and contest the allegations of the notice of hearing and to authorize the trial examiner, without further notice to the party, to find the facts to be as alleged in the notice and to file with the Secretary a recom mended decision containing such findings and appropriate conclusions. The Board of Directors or the trial examiner may, for cause shown, permit the filing of a delayed answer after the time for filing the answer has expired. 118 FEDERAL DEPOSIT INSURANCE CORPORATION (e) Opportunity for informal settlement. Any interested party may at any time submit to the Secretary, for consideration by the Board of Directors, w rit ten offers or proposals for settlement of a proceeding, w ithout prejudice to the rights of the parties. No such offer or proposal, or counteroffer or proposal, shall be admissible in evidence over the objection of any party in any hearing in connection with such proceeding. The foregoing provisions of this section shall not preclude settlement of any proceeding through the regular adjudicatory process by filing of an answer as provided in this section, or by submission of the case to the trial examiner on a stipulation of facts and an agreed order. §308.5 Conduct of hearings. (a) Selection of trial examiner. Any hearing shall be held before a trial exam iner selected by the Civil Service Commission and designated by the Board of Directors and, unless otherwise provided in the notice of hearing, shall be con ducted as hereinafter provided. (b) Authority of trial examiner. All hearings governed by this part shall be conducted in accordance with the provisions of chapter 5 of title 5 of the United States Code. The trial examiner designated by the Board of Directors to preside at any such hearing shall have complete charge of the hearing, and he shall have the duty to conduct it in a fair and impartial manner and to take all necessary action to avoid delay in the disposition of proceedings. Such examiner shall have all powers necessary to that end, including the following: (1) To administer oaths and affirmations; (2) To issue subpenas and subpenas duces tecum, as authorized by law, and to revoke, quash, or modify any such subpena; (3) To receive relevant evidence and to rule upon the admission of evidence and offers of proof; (4) To take or cause depositions to be taken; (5) To regulate the course of the hearing and the conduct of the parties and their counsel; (6) To hold conferences for the settlement or simplification of issues or for any other proper purpose; and (7) To consider and rule upon, as justice may require, all procedural and other motions appropriate in an adversary proceeding, except that a trial exam iner shall not have power to decide any motion to dismiss the proceedings or other motion which results in final determination of the merits of the proceed ings. Without lim itation on the foregoing provisions of this paragraph, the trial exam iner shall, subject to the provisions of this part, have all the authority of section 556(c) of title 5 of the United States Code. (c) Prehearing conference. The trial examiner may, on his own initiative or at the request of any party, direct counsel for all parties to meet with him at a specified tim e and place prior to the hearing, or to submit suggestions to him in writing, for the purpose of considering any or all of the following: (1) Simplification and clarification of the issues; (2) Stipulations, admissions of fact and of the contents and authenticity of documents; (3) Matters of which official notice will be taken; and (4) Such other matters as may aid in the orderly disposition of the proceed ing, including disclosure of the names of witnesses and of documents or other physical exhibits which will be introduced in evidence in the course of the pro ceeding. Such conferences shall, at the request of any party, be recorded and at the con clusion thereof the trial examiner shall enter in the record an order which re cites the results of the conference. Such order shall include the examiner's rulings upon matters considered at the conference, together with appropriate di rections to the parties, if any; and such order shall control the subsequent course of the proceedings, unless modified at the hearing to prevent manifest RULES AND REGULATIONS OF THE CORPORATION 119 injustice. Except as authorized by law, the trial examiner shall not consult any person or party on any fact in issue unless upon notice and opportunity for all parties to participate, nor be responsible to or subject to the supervision or di rection of any officer, employee, or agent engaged in the performance of inves tigative or prosecuting functions. No officer, employee, or agent engaged in the performance of investigative or prosecuting functions in any case shall, in that case or a factually related case, participate or advise in the decision of the trial examiner except as a witness or counsel in the proceedings. (d) Attendance at hearings. A hearing shall ordinarily be private and shall be attended only by the parties, their representatives or counsel, witnesses while testifying, and other persons having an official interest in the proceedings: Pro vided, however, That on written request by a party or representatives of the Board of Directors, or on the Board's own motion, the Board, in its discretion and to the extent permitted by law, may permit other persons to attend or may order the hearing to be public. (e) Transcript of testimony. Hearings shall be recorded and transcripts will be made available to any party upon payment of the cost thereof and, in the event the hearing is public, shall be furnished on sim ilar payment to other in terested persons. A copy of the transcript of the testimony taken at any hearing, duly certified by the reporter, together with all exhibits, all papers and requests filed in the proceeding, and any briefs or memoranda of law thereto fore filed in the proceeding, shall be filed with the Secretary of the Corporation, who shall transm it the same to the trial examiner. The Secretary shall promptly serve notice upon each of the parties of such filing and transm ittal. The trial examiner shall have authority to rule upon motions to correct the record. (f) Order of procedure. The counsel for the Corporation shall open and close. (g) Continuances and changes or extensions of time and changes of place of hearing. Except as otherwise expressly provided by law, the Board of Directors may by the notice of hearing or subsequent order provide tim e lim its different from those specified in this part, and the Board of Directors may, on its own initiative or for good cause shown, change or extend any time lim it prescribed by these rules or the notice of hearing, or change the time and place for begin ning any hearing hereunder. The trial examiner may continue or adjourn a hearing from time to tim e and, as permitted by law or agreed to by the parties, from place to place. Extensions of time for making any filing or performing any act required or allowed to be done within a specified time in the course of a proceeding may be granted by the trial examiner for good cause shown. (h) Call for further evidence, oral argument, briefs, reopening of hearing. The trial examiner may call for the production of further evidence upon any is sue, may permit oral argument and submission of briefs at the hearing and, upon appropriate notice, may reopen any hearing at any tim e prior to the certi fication of his recommended decision to the Secretary. The Board of Directors shall render its decision within 90 days after the Secretary has notified the par ties, pursuant to §308.13, that the case has been submitted to the Board of Di rectors for final decision, unless within such 90-day period the Board of Direc tors shall order that such notice be set aside and the case reopened for further proceedings. %308.6 Subpenas. (a) Issuance. The trial examiner, or in the event he is unavailable, the Board of Directors, shall issue subpenas at the request of any party, requiring the attendance of witnesses or the production of documentary evidence at any designated place of hearing; except th a t where it appears to the trial examiner or the Board of Directors that the subpena may be unreasonable, oppressive, excessive in scope, or unduly burdensome, the party seeking the subpena may be required, as a condition precedent to the issuance of the subpena, to show the general relevance and reasonable scope of the testim ony or other evidence sought. In the event the trial examiner or the Board of Directors, after consider 120 FEDERAL DEPOSIT INSURANCE CORPORATION ation of all the circumstances, determines that the subpena or any of its terms are unreasonable, oppressive, excessive in scope, or unduly burdensome, he or it may refuse to issue the subpena, or issue it only upon such conditions as fairness requires. (b) Motion to quash. Any person to whom a subpena is directed may, prior to the time specified therein for compliance but in no event more than five days after the date of service of such subpena, with notice to the party requesting the subpena, apply to the trial examiner, or, if he is unavailable, to the Board of Directors, to revoke, quash, or modify such subpena, accompanying such ap plication with a statement of the reasons therefor. (c) Service of subpena. Service of a subpena upon a person named therein shall be made by delivering a copy of the subpena to such person and by ten dering the fees fo r 1 day's attendance and the mileage as specified in paragraph (d) of this section, except that when a subpena is issued at the in stance of the Board of Directors fees and mileage need not be tendered at the tim e of service of the subpena. If service is made by a U.S. marshal, or his deputy, or an employee of the Corporation, such service shall be evidenced by his return thereon. If made by any other person, such person shall make affida vit thereto, describing the manner in which service is made, and return such af fidavit on or with the original subpena. In case of failure to make service, reasons for the failure shall be stated on the original subpena. The original subpena, bearing or accompanied by the required return, affidavit or statement, shall be returned w ithout delay to the trial examiner. (d) Attendance of witnesses. The attendance of witnesses and the production of documents pursuant to a subpena, issued in connection with a hearing pro vided for in Subpart Bf C, or D of this part, may be required from any place in any State or in any territory at any designated place where the hearing is being conducted. Witnesses subpenaed in any proceeding under this part shall be paid the same fees and mileage that are paid witnesses in the district courts of the United States. (e) Depositions. The Board of Directors or trial examiner, by subpena or subpena duces tecum, may order evidence to be taken by deposition in any pro ceeding at any stage thereof. Such depositions may be taken by the trial exam iner or before any person designated by the Board of Directors or trial examiner and having power to administer oaths. Unless notice is waived, no deposition shall be taken except after at least 5 days' notice to the parties to the proceed ing. (f) Application and order to take oral deposition. Any party desiring to take the oral deposition of a witness, in connection with any hearing provided for in this part, shall make application in writing to the trial examiner or, in the event he is unavailable, to the Board of Directors, setting forth the reasons why such deposition should be taken, the name and post office address of the witness, the matters concerning which the witness is expected to testify, its relevance, and the tim e when, the place where, and the name and post office address of the person before whom it is desired the deposition be taken. A copy of such application shall be served upon every other party to the proceeding by the party making such application. Upon a showing that (1) the proposed witness will be unable to attend or may be prevented from attending the hearing because of age, sickness or infirmity, or will otherwise be unavailable at the hearing, (2) his testim ony will be material, and (3) the taking of the deposition will not result in any undue burden to any other party or in undue delay of the proceeding, the trial examiner or the Board of Directors may, in his or its dis cretion, by such subpena or subpena duces tecum, order the oral deposition to be taken. Such subpena will name the witness whose deposition is to be taken and specify the tim e when, the place where, and the person before whom the witness is to testify, but such time and place, and the person before whom the deposition is ordered to be taken, may or may not be the same as those named in the application. Notice of the issuance of such subpena shall be served upon RULES AND REGULATIONS OF THE CORPORATION 121 each of the parties a reasonable time, and in no event less than five days, in advance of the time fixed for the taking of the deposition. (g) Procedure on deposition; objections. Each witness testifying upon oral deposition shall be duly sworn, and the adverse party shall have the right to cross-examine. Objections to questions or evidence shall be in short form, stat ing the grounds of objection relied upon; but the person taking the deposition shall not have power to rule upon questions of competency or m ateriality or rel evance of evidence. Failure to object to questions or evidence shall not be deemed a waiver except where the ground of the objection is one which might have been obviated or removed if presented at that time. The questions pro pounded and the answers thereto, together with all objections made (but not in cluding argument or debate) shall be recorded by the person taking the deposi tion, or under his direction. The deposition shall be subscribed by the witness, unless the parties by stipulation waived the signing or the witness is ill or can not be found or refused to sign, and certified as a true and complete transcript thereof by the person taking the deposition. If the deposition is not subscribed to by the witness, such person shall state on the record this fact and the rea son therefor. Such person shall promptly send the original and two copies of such deposition, together with the original and two copies of all exhibits, by reg istered mail to the Secretary of the Corporation unless otherwise directed in the order authorizing the taking of the deposition. Interested parties shall make their own arrangements with the person taking the deposition fo r copies of the testimony and the exhibits. (h) Introduction as evidence. Subject to appropriate rulings on such objec tions to questions of evidence as were noted at the time the deposition was taken or as would be valid were the witness personally present and testifying (except objections waived under the third sentence of paragraph (g) of this sec tion), the deposition or any part thereof may be read in evidence by any party to the proceeding. Only such part or the whole of a deposition as is received in evidence at a hearing shall constitute a part of the record in such proceeding upon which a decision may be based. (i) Payment of fees. Witnesses whose oral depositions are taken shall be en titled to the same fees as are paid for like services in the courts of the United States. Fees of persons taking such depositions and the fees of the reporter shall be paid by the person upon whose application the deposition was taken. §308.7 Rules of evidence. (a) Evidence. Every party shall have the right to present his case or defense by oral and documentary evidence, to submit rebuttal evidence and to conduct such cross-examination as may be required for a full and true disclosure of the facts. Irrelevant, immaterial, or unduly repetitious evidence shall be excluded. (b) Objections. Objections to the admission or exclusion of evidence shall be in short form, stating the grounds of objections relied upon, and the transcript shall not include argument thereon except as ordered, allowed, or requested by the trial examiner. Rulings on such objections and on any other matters shall be a part of the transcript. Failure to object to admission or exclusion of evi dence or to any ruling shall be considered a waiver of such objection. (c) Official notice. All matters officially noticed by the trial examiner shall ap pear on the record. §308.8 Motions. (a) In writing. An application or request for an order or ruling not otherwise specifically provided for in this part shall be made by motion. After a trial ex aminer has been designated to preside at a hearing and before the filing with the Secretary of his recommended decision, pursuant to §308.9, such applica tions or requests shall be addressed to and filed with him. At all other times motions shall be addressed to the Board of Directors and filed with the Secre tary. Motions shall be in writing, except that a motion made at a session of a 122 FEDERAL DEPOSIT INSURANCE CORPORATION hearing may be made orally upon the record unless the trial examiner directs that it be reduced to writing. All written motions shall state with particularity the order or relief sought and the grounds therefor. (b) Objections. Within 5 days after service of any written motion, or within such other period of time as may be fixed by the trial examiner or the Board of Directors, any party may file a written answer or objection to such motion. The moving party shall have no right to reply, except as permitted by the trial exam iner or the Board of Directors. As a matter of discretion, the trial examiner or the Board of Directors may waive the requirements of this section as to mo tions for extensions of time, and may rule upon such motions ex parte. (c) Oral argument. No oral argument will be heard on motions except as otherwise directed by the trial examiner or the Board of Directors. Written memoranda or briefs may be filed with motions or answers or objections thereto, stating the points and authorities relied upon in support of the position taken. (d) Rulings on motions. Except as otherwise provided in this part, the trial examiner shall rule upon all motions properly addressed to him and upon such other motions as the Board of Directors may direct, except that if the trial ex aminer finds that a prompt decision by the Board of Directors on a motion is essential to the proper conduct of the proceeding, he may refer such motion to the Board of Directors for decision. The Board of Directors shall rule upon all motions properly submitted to it for decision. (e) Appeal from rulings on motions. All motions and answers or objections thereto and rulings thereon shall become part of the record. Rulings of a trial examiner on any motion may not be appealed to the Board of Directors prior to its consideration of the trial examiner’s recommended decision, findings and conclusions except by special permission of the Board of Directors; but they shall be considered by the Board of Directors in reviewing the record. Requests to the Board of Directors for special permission to appeal from such rulings of the trial examiner shall be filed promptly, in writing, and shall briefly state the grounds relied on. The moving party shall immediately serve a copy thereof on every other party to the proceeding. (f) Continuation of hearing. Unless otherwise ordered by the trial examiner or the Board of Directors, the hearing shall continue pending the determination of any motion by the Board of Directors. §308.9 Proposed findings and conclusions and recommended decision. (a) Proposed findings and conclusions by parties. Each party to a hearing shall have a period of 15 days after service of the Secretary's notice of the fil ing and transm ittal of the record, as provided in paragraph (e) of §308.5, or such further time as the trial examiner for good cause shall determine, to file with the trial examiner proposed findings of fact, conclusions of law and order, which may be accompanied by a brief or memorandum in support thereof. Such proposals shall be supported by citation of such statutes, decisions and other authorities, and by page references to such portions of the record, as may be relevant. All such proposals, briefs and memoranda shall become a part of the record. (b) Recommended decision and filing of record. The trial examiner shall, within 30 days after the expiration of the time allowed for the filing of proposed findings, conclusions, and order, or within such further time as the Board of Di rectors for good cause shall determine, file with the Secretary and certify to the Board of Directors for decision the entire record of the hearing, which shall include his recommended decision, findings of fact, conclusions of law, and pro posed order, the transcript, exhibits (including on request of any of the parties any exhibits excluded from evidence or tenders of proof), exceptions, rulings, and all briefs and memoranda filed in connection with the hearing. Promptly upon such filing the Secretary shall serve upon each party to the proceeding a copy of the trial examiner's recommended decision, findings, conclusions, and RULES AND REGULATIONS OF THE CORPORATION 123 proposed order. The provisions of this paragraph and §308.10 shall not apply, however, in any case where the hearing was held before the Board of Directors. §308.10 Exceptions. (a) Filing. Within 15 days after service of the recommended decision, find ings, conclusions, and proposed order of the trial examiner, or such further tim e as the Board of Directors for good cause shall determine, any party (other than a party who has not filed an answer in accordance with paragraphs (a) and (d) of §308.4, unless no answer was required of such party by the Board of Directors) may file with the Secretary exceptions thereto or any part thereof, or to the failure of the trial examiner to make any recommendation, finding, or conclusion, or to the admission or exclusion of evidence, or other ruling of the trial examiner, supported by such brief as may appear advisable. (b) Waiver. Failure of a party to file exceptions to the recommended deci sion, findings, conclusions, and proposed order of the trial examiner or any portion thereof, or to his failure to adopt a proposed finding or conclusion, or to the admission or exclusion of evidence or other ruling of the trial examiner, within the time prescribed in paragraph (a) of this section, shall be deemed to be a waiver of objection thereto. §308.11 Briefs. (a) Contents. All briefs shall be confined to the particular matters in issue. Each exception or proposed finding or conclusion which is briefed shall be sup ported by a concise argument or by citation of such statutes, decisions or other authorities and by page reference to such portions of the record or recommend ed decision of the trial examiner as may be relevant. If the exception relates to the admission or exclusion of evidence, the substance of the evidence admitted or excluded shall be set forth in the brief with appropriate references to the transcript. (b) Reply briefs. Reply briefs may be filed with the Secretary of the Corpora tion within 10 days after service of briefs and shall be confined to matters in original briefs of opposing parties. Further briefs may be filed only with the per mission of the Board of Directors. (c) Delays. Briefs not filed on or before the tim e fixed in this subpart will be received only upon special permission of the Board of Directors. §308.12 Oral argument before the Board of Directors. Upon its own initiative, or upon the written request of any party made within the time prescribed fo r the filing of exceptions, a brief in support thereof, or a reply brief, if any, for oral argument on the findings, conclusions, and recom mended decision of the trial examiner, the Board of Directors, if it considers justice will best be served, may order the matter to be set down for oral argu ment before the Board of Directors or one or more members thereof. Oral argument before the Board of Directors shall be recorded unless otherwise or dered by the Board of Directors. §308.13 Notice of submission to the Board of Directors. Upon the filing of the record with the Secretary of the Corporation, and upon the expiration of the tim e for the filing of exceptions and all briefs, including re ply briefs or any further briefs permitted by the Board of Directors and upon the hearing of oral argument by the Board of Directors, if ordered by the Board of Directors, the Secretary shall notify the parties that the case has been sub mitted to the Board of Directors for final decision. §308.14 Decision of Board of Directors. Appropriate members of the staff, who are not engaged in the performance of investigative or prosecuting functions in the case, or in a factually related case, may advise and assist the Board of Directors in the consideration of the case and in the preparation of appropriate documents for its disposition. Copies of the decision and order of the Board of Directors shall be furnished by the 124 FEDERAL DEPOSIT INSURANCE CORPORATION Secretary of the Corporation to the parties to the proceedings, the bank in volved and to the appropriate State supervisory authority, in the case of a State bank. Where the proceedings involve the involuntary termination of the insured status of a bank, copies of the decision and order shall also be furnished to the Board of Governors of the Federal Reserve System in the case of a State mem ber bank, or to the Comptroller of the Currency in the case of a national bank or a District bank. §308.15 Filing papers. Recommended decisions, exceptions, briefs and other papers required to be filed with the Board of Directors or Secretary in any proceedings shall be filed with the Secretary, Federal Deposit Insurance Corporation, Washington, D.C. 20429. Any such papers may be sent to the Secretary by mail or express but must be received in the office of the Corporation in Washington, D.C., or post marked by a post office, within the time lim it fo r such filing. §308.16 Service. (a) By the Board of Directors. All documents or papers required to be served by the Board of Directors upon any party afforded a hearing shall be served by the Secretary of the Corporation unless some other person shall be designated for such purpose by the Board of Directors. Such service, except for service on counsel for the Board of Directors, shall be made by personal service or by reg istered mail, addressed to the last known address as shown on the records of the Board of Directors, on the attorney or representative of record of such party, provided that if there is no attorney or representative of record, such service shall be made upon such party at the last known address as shown on the records of the Board of Directors. Such service may also be made in such other manner reasonably calculated to give actual notice as the Board of Directors may by regulation or otherwise provide. (b) By the parties. Except as otherwise expressly provided in this part, all documents or papers filed in a proceeding under this part shall be served by the party filing the same upon the attorneys or representatives of record of all other parties to the proceeding, or, if any party is not so represented, then upon such party. Such service may be made by personal service or by regis tered, certified, or regular first-class mail addressed to the last known address of such parties, or their attorneys or representatives of record. All such docu ments or papers shall, when tendered to the Board of Directors or the trial ex aminer for filing, show that such service has been made. §308.17 Copies. Unless otherwise specifically provided in the notice of hearing, an original and seven copies of all documents and papers required or permitted to be filed or served upon the Secretary of the Corporation under this part, except the transcript of testimony and exhibits, shall be furnished to the Secretary of the Corporation. §308.18 Computing time. (a) General rule. In computing any period of time prescribed or allowed by this part, the date of the act, event or default from which the designated period of time begins to run is not to be included. The last day so computed shall be included, unless it is a Saturday, Sunday, or legal holiday in the District of Co lumbia, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, nor such legal holiday. Intermediate Saturdays, Sundays, and legal holidays shall be included in the computation unless the time within which the act is to be performed is 10 days or less in which event Saturdays, Sundays, and legal holidays shall not be included. (b) Service by mail. Whenever any party has the right or is required to do some act or take some proceeding, within a period of time prescribed in this part, after the service upon him of any document or other paper of any kind, and such service is made by mail, 3 days shall be added to the prescribed RULES AND REGULATIONS OF THE CORPORATION 125 period from the date when the matter served is deposited in the United States mail. §308.19 Documents in proceedings confidential. Unless and until otherwise ordered by the Board of Directors, the notice of hearing, the transcript, the recommended decision of the trial examiner, excep tions thereto, proposed findings or conclusions, the findings and conclusions of the Board of Directors and other papers which are filed in connection with any hearing shall not be made public, and shall be for the confidential use only of the Board of Directors, the trial examiner, the parties and appropriate supervis ing authorities. §308.20 Formal requirements as to papers filed. (a) Form. All papers filed under this subpart shall be printed, typewritten, or otherwise reproduced. All copies shall be clear and legible. (b) Signature. The original of all papers filed by a bank shall be signed by an officer thereof, and if filed by another party shall be signed by said party, or by the duly authorized agent or attorney of the bank or other party, and in all such cases shall show the signer's address. Counsel for the Corporation shall sign the original of all papers filed by him. (c) Caption. All papers filed must include at the head thereof, or on a title page, the name of the Corporation, the name of the party, and the subject of the particular paper. SUBPART B— RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS FOR THE INVOLUNTARY TERMINATION OF INSURED STATUS §308.21 Scope. Under the authority of section 8 of the Federal Deposit Insurance Act, the Board of Directors of the Corporation may terminate the insured status of an insured bank upon the grounds set forth therein and enumerated in §§308.22 and 308.27. The procedure for terminating the insured status of a bank as therein prescribed will be followed and hearings required thereunder will be con ducted in accordance with the rules and procedures set forth in this subpart and Subpart A of this part. §308.22 Grounds for termination of insurance. Whenever the Board of Directors finds that an insured bank or its directors or trustees have engaged or are engaging in unsafe or unsound practices in conducting the business of such bank, or that such bank is in an unsafe or un sound condition to continue operations as an insured bank, or that such bank or its directors or trustees have violated an applicable law, rule, regulation or order, or any condition imposed in writing by the Corporation in connection with the granting of any application or other request by the bank, or any written agreement entered into with the Corporation, the Board of Directors will first give to the Comptroller of the Currency in the case of a national bank or a Dis tric t bank, to the authority having supervision of the bank in the case of a State bank, and to the Board of Governors of the Federal Reserve System in the case of a State member bank, a statement with respect to such practices or viola tions for the purpose of securing the correction thereof and will forward a copy thereof to the bank. §308.23 Notice of intention to terminate insured status. Unless correction of the practices, condition or violations set forth in the statement prescribed in §308.22 is made within 120 days, or such shorter period not less than 20 days fixed by the Corporation in any case where the Board of Directors in its discretion has determined that the insurance risk of the Corporation is unduly jeopardized, or fixed by the Comptroller of the Currency in the case of a national bank, or the State authority in the case of a State bank, or Board of Governors of the Federal Reserve System in the case 126 FEDERAL DEPOSIT INSURANCE CORPORATION of a State member bank, as the case may be, the Board of Directors, if it determines to proceed further, will give to the bank not less than 30 days' written notice of its intention to terminate the status of the bank as an insured bank, and will fix a tim e and place for a hearing before the Board of Directors or before a person designated by it to conduct such hearing, at which evidence may be produced, and upon such evidence the Board of Directors will make written findings which shall be conclusive. §308.24 Order terminating insured status. If the Board of Directors finds that any unsafe or unsound practice or condi tion or violation specified in such statement has been established and has not been corrected within the time prescribed under §308.23, in which to make such corrections, the Board of Directors may order that the insured status of the bank be terminated on a date subsequent to such finding and to the expira tion of the time specified in the notice of intention issued under §308.23. §308.25 Consent to termination of insured status. Unless the bank appears at the hearing designated in the notice of hearing by a duly authorized representative, it shall be deemed to have consented to the termination of its status as an insured bank. In the event the bank fails to appear at such hearing, the trial examiner shall forthwith report the matter to the Board of Directors and the Board may thereupon issue an order terminating the bank's insured status. §308.26 Notice of termination of insured status. Prior to the effective date of the termination of the insured status of a bank under section 8(a) of the Federal Deposit Insurance Act and at such tim e as the Board of Directors shall specify, the bank shall mail to each depositor at his last address of record on the books of the bank and publish in not less than two issues of a local newspaper of general circulation and shall furnish the Cor poration with proof of publication of notice of such termination of insured sta tus. The notice shall be as follows: NOTICE (Date) 1. The status of the ............................................ , ................................................... , as an insured bank under the provisions of the Federal Deposit Insurance Act, will terminate as of the close of business on the .... day of ..................... , 19....; 2. Any deposits made by you after that date, either new deposits or addi tions to existing deposits, will not be insured by the Federal Deposit Insurance Corporation; 3. Deposits in the bank on the .... day of ..................... , 19...., up to a maxi mum of $15,000 for each depositor, will continue to be insured, as provided by the Federal Deposit Insurance Act, for 2 years after the close of business on the .... day of ..................... , 19....; Provided, however, That any withdrawals af ter the close of business on the . .. day of ..................... , 19...., will reduce the insurance coverage by the amount of such withdrawals. (Name of banking institution) (Address) There may be included in such notice any additional information or advice the banking institution may deem desirable. §308.27 Termination of insured status of banking institution not engaged in the business of receiving deposits other than trust funds. Whenever the Board of Directors shall have evidence indicating that an in sured banking institution is not engaged in the business of receiving deposits, RULES AND REGULATIONS OF THE CORPORATION 127 other than trust funds, it will give notice in writing to the banking institution of such fact, and will direct the banking institution to show cause why the insured status of the banking institution should not be terminated under the provisions of section 8(p) of the Federal Deposit Insurance Act. The banking institution shall have 30 days, or such greater period of time as the Board of Directors shall prescribe, after receipt of such notice to submit affidavits or other written proof that it is engaged in the business of receiving deposits, other than trust funds. The Board of Directors may, in its discretion, upon written request of the banking institution, authorize a hearing before it or any person designated by it. If upon consideration of the evidence, the Board of Directors finds th a t the banking institution is not engaged in the business of receiving deposits, other than trust funds, such finding shall be conclusive and the Corporation will noti fy the banking institution that its insured status will terminate at the expiration of the first full semiannual assessment period following such notice. Prior to the date of the termination of the insured status of a banking institution under section 8(c) of the Federal Deposit Insurance Act, and within the tim e specified by the Board of Directors, the banking institution shall mail to each depositor at his last address of record on its books and publish in not less than two is sues of a local newspaper of general circulation, a notice of such termination in form substantially as follows: NOTICE (Date) ............................................, ..............................................., (Name of banking institution) (City or town) ..................................... , as an insured bank, under the Federal Deposit Insurance (State) Act, will terminate on the. .. day of ..................... , 19...., and its deposits will thereupon cease to be insured. The status of the (Name of banking institution) (Address) There may be included in such notice any additional information or advice the banking institution may deem desirable. SUBPART C— RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RE LATING TO CEASE-AND-DESIST ORDERS §308.28 Scope. The rules and procedures set forth in this subpart are applicable to proceed ings by the Board of Directors with a view to ordering an insured State non member bank (other than a District bank) to cease and desist from practices and violations described in section 8 of the Federal Deposit Insurance Act and enumerated in §308.29. The procedures for issuing such orders prescribed in section 8 of said Act will be followed and hearings required thereunder will be conducted in accordance with the rules and procedures set forth in this subpart and Subpart A of this part. §308.29 Grounds for cease-and-desist orders. If, in the opinion of the Board of Directors, any insured State nonmember bank (other than a District bank) or bank which has insured deposits is engag ing or has engaged, or the Board of Directors has reasonable cause to believe that the bank is about to engage, in an unsafe or unsound practice in conduct ing the business of such bank, or is violating or has violated, or the Board of Directors has reasonable cause to believe th a t the bank is about to violate, a law, rule, or regulation, or any condition imposed in writing by the Board of Di 128 FEDERAL DEPOSIT INSURANCE CORPORATION rectors in connection with the granting of an application or other request by the bank, or any written agreement entered into with the Corporation, the Board of Directors may issue and serve upon the bank a notice of charges in respect thereof. §308.30 Notice of charges and hearing. The notice referred to in §308.29 will contain a statement of the facts consti tuting the alleged violation or violations or the unsafe or unsound practice or practices, and fix a time and place at which a hearing will be held to determine whether an order to cease and desist therefrom should issue against the bank. The hearing will be fixed for a date not earlier than 30 days nor later than 60 days after service of such notice unless an earlier or a later date is set by the Board of Directors at the request of the bank. Unless the bank appears at the hearing by a duly authorized representative, it will be deemed to have consent ed to the issuance of the cease-and-desist order. §308.31 Issuance of order. In the event of such consent, or if upon the record made at any such hear ing, the Board of Directors finds that any violation or unsafe or unsound practice specified in the notice of charges has been established, the Board of Directors may issue and serve upon the bank an order to cease and desist from any such violation or practice. Such order may, by provisions which may be mandatory or otherwise, require the bank and its directors, officers, employees, and agents to cease and desist from the same and, further, to take affirmative action to correct the conditions resulting from any such violation or practice. §308.32 Effective date. A cease-and-desist order will become effective at the expiration of 30 days after the service of such order upon the bank concerned (except in the case of a cease-and-desist order issued upon consent, which will become effective at the tim e specified therein), and will remain effective and enforceable as provided therein, except to such extent as it is stayed, modified, terminated, or set aside by action of the Board of Directors or a reviewing court. §308.33 Temporary cease-and-desist orders. Whenever the Board of Directors determines that the violation or threatened violation or the unsafe or unsound practice or practices, specified in the notice of charges referred to in §308.28, or the continuation thereof, is likely to cause insolvency or substantial dissipation of assets or earnings of the bank, or is likely to otherwise seriously prejudice the interests of its depositors, the Board of Directors may issue a temporary order requiring the bank to cease and desist from any such violation or practice. §308.34 Effective date of temporary order. Such order will become effective upon service upon the bank and, unless set aside, limited, or suspended by a court in proceedings authorized under the Federal Deposit Insurance Act will remain effective and enforceable pending the completion of the administrative proceedings held pursuant to such notice and until such time as the Board of Directors dismisses the charges specified in such notice, or if a cease-and-desist order is issued against the bank pursuant to §308.29, until the effective date of any such order. SUBPART D— RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RE LATING TO REMOVAL AND SUSPENSION ORDERS §308.35 Scope. The rules and procedures set forth in this subpart are applicable to proceed ings by the Board of Directors to remove or suspend directors or officers of an insured State nonmember bank (other than a District bank) or any other person participating in the conduct of the affairs of such a bank, a n d /o r prohibit such director, officer or other person from further participation in the conduct of the RULES AND REGULATIONS OF THE CORPORATION 129 affairs of such a bank, upon the grounds set forth in section 8 of the Federal Deposit Insurance Act and enumerated in this subpart. The procedures fo r is suing such orders prescribed in section 8 of said Act will be followed and hear ings required thereunder will be conducted in accordance with the rules and procedures set forth in this subpart and Subpart A of this part. §308.36 Grounds for removal order. (a) Whenever, in the opinion of the Board of Directors, any director or officer of an insured State nonmember bank (other than a District bank) has com m it ted any violation of law, rule, or regulation, or of a cease-and-desist order which has become final, or has engaged or participated in any unsafe or unsound practice in connection with the bank, or has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as such director or officer, and the Board of Directors determines that the bank has suf fered or will probably suffer substantial financial loss or other damage or that the interests of its depositors could be seriously prejudiced by reason of such violation or practice or breach of fiduciary duty, and that such violation or prac tice or breach of fiduciary duty is one involving personal dishonesty on the part of such director or officer, the Board of Directors may serve upon such director or officer a written notice of its intention to remove him from office. (b) Whenever, in the opinion of the Board of Directors, any director or officer of an insured State nonmember bank (other than a District bank), by conduct or practice with respect to another insured bank or other business institution which resulted in substantial financial loss or other damage, has evidenced his personal dishonesty and unfitness to continue as a director or officer and, whenever, in the opinion of the Board of Directors, any other person participat ing in the conduct of the affairs of an insured State nonmember bank (other than a District bank), by conduct or practice with respect to such bank or other insured bank or other business institution which resulted in substantial financial loss or other damage, has evidenced his personal dishonesty and unfitness to participate in the conduct of the affairs of such insured bank, the Board of Di rectors may serve upon such director, officer, or other person a written notice of its intention to remove him from office a n d /o r to prohibit his further partici pation in any manner in the conduct of the affairs of the bank. §308.37 Grounds for suspension order. In respect to any director or officer of an insured State nonmember bank (other than a District bank) or any other person referred to in paragraph (a) or (b) of §308.36 the Board of Directors may, if it deems it necessary for the pro tection of the bank or the interests of its depositors, by written notice to such effect served upon such director, officer, or other person, suspend him from office and /o r prohibit him from further participation in any manner in the con duct of the affairs of the bank. §308.38 Effective date of suspension order. Any suspension a n d /o r prohibition which is subject to the notice prescribed in §308.37, shall become effective upon service of such notice and, unless stayed by a court in proceedings authorized by the Federal Deposit Insurance Act, shall remain in effect pending the completion of the administrative pro ceedings held pursuant to the notice served under paragraph (a) or (b) of §308.36 and until such time as the Board of Directors shall dismiss the charges specified in such notice, or if an order of removal a n d /o r prohibition is issued against the director or officer or other person, until the effective date of any such order. Copies of any such notice will also be served upon the bank of which he is a director or officer or in the conduct of whose affairs he has parti cipated. §308.39 Notice of intention to remove and hearing. A notice of intention to remove a director, officer, or other person frorn office a n d /o r to prohibit his participation in the conduct of the affairs of an insured 130 FEDERAL DEPOSIT INSURANCE CORPORATION bank, will contain a statement of the facts constituting grounds therefor and will fix a tim e and place at which a hearing will be held thereon. Such hearing will be fixed for a date not earlier than 30 days nor later than 60 days after the date of service of such notice, unless an earlier or a later date is set by the Board of Directors at the request of (a) such director or officer or other person, and for good cause shown, or (b) the Attorney General of the United States. Unless such director, officer, or other person appears at the hearing in person or by a duly authorized representative, he shall be deemed to have consented to the issuance of an order of such removal a n d /o r prohibition. §308.40 Issuance of removal order and effective date. In the event of such consent, or if upon the record made at any such hearing the Board of Directors finds that any of the grounds specified in such notice has been established, the Board of Directors may issue such orders of suspen sion or removal from office, a n d /o r prohibition from participation in the con duct of the affairs of the bank, as it may deem appropriate. Any such order shall become effective at the expiration of 30 days after service upon such bank and the director, officer, or other person concerned (except in the case of an order issued upon consent, which shall become effective at the time specified therein). Such order shall remain effective and enforceable except to such ex tent as it is stayed, modified, terminated, or set aside by action of the Board of Directors or a reviewing court. §308.41 Suspension and removal where felony charged. (a) Whenever any director or officer of an insured State nonmember bank (other than a District bank), or other person participating in the conduct of the affairs of such bank, is charged in any information, indictment, or complaint au thorized by a U.S. attorney, with the commission of or participation in a felony involving dishonesty or breach of trust, the Board of Directors may, by written notice served upon such director, officer, or other person suspend him from of fice a n d /o r prohibit him from further participation in any manner in the conduct of the affairs of the bank. A copy of such notice will also be served upon the bank. Such suspension a n d /o r prohibition shall remain in effect until such information, indictment, or complaint is finally disposed of or until te rm i nated by the Board of Directors. (b) In the event that a judgment of conviction with respect to such offense is entered against such director, officer, or other person, and at such time as such judgment is not subject to further appellate review, the Board of Directors may issue and serve upon such director, officer, or other person an order removing him from office a n d /o r prohibiting him from further participation in any manner in the conduct of the affairs of the bank except with the consent of the Board of Directors. A copy of such order will also be served upon such bank, whereup on such director or officer shall cease to be a director or officer of such bank. A finding of not guilty or other disposition of the charge will not preclude the Board of Directors from thereafter instituting proceedings to remove such direc tor, officer, or other person from office a n d /o r to prohibit further participation in bank affairs, pursuant to the provisions of this subpart. [F.R. Doc. 67-8385; Filed, July 31, 1967; 8:45 a.m.] TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY PART 328— ADVERTISEMENT OF MEMBERSHIP Effective August l r 1967, Part 328 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR Part 328) is amended to read as fo l lows: RULES AND REGULATIONS OF THE CORPORATION Sec. 328.0 328.1 328.2 131 Scope. Mandatory requirements with regard to the official sign and its display. Mandatory requirements with regard to the official advertising state ment and manner of use. %328.0 Scope. The regulation contained in this part prescribes the requirements with regard to the official sign insured banks must display and the requirements with regard to the official advertising statement insured banks must include in their adver tisements. It also prescribes an approved short title which insured banks may use at their option. It imposes no limitations on other proper advertising of in surance of deposits by insured banks and does not apply to advertisements published in foreign countries by insured banks which maintain offices in such foreign countries in which offices the deposits are not insured. §328.1 Mandatory requirements with regard to the official sign and its dis play (a) Insured banks to display official sign. Each insured bank shall contin uously display an official sign as hereinafter prescribed at each station or window where insured deposits are usually and normally received in its principal place of business and in all its branches: Provided, That no bank becoming an insured bank shall be required to display such official sign until twenty-one (21) days after its first day of operation as an insured bank. The official sign may be displayed by any insured bank prior to the date display is required. Additional signs in other sizes, colors, or materials, incorporating the basic design of the official sign, may be displayed in other locations within an insured bank. (b) Official sign. The official sign referred to in paragraph (a) of this section shall be of the following design: E a c h d e p o s ito r in s u r e d to $15,000 FEDERAL DEPOSIT IN SU R A N C E CO R P O R ATIO N The “ sym bol" of the Corporation shall be that portion of the official sign repre sented by the letters and the Corporation seal contained upon the sign. (1) Any insured bank may procure official signs from the Corporation. Varia tions in size, color, and materials in the official sign, as described in the “ Official Catalog of Insured Bank Signs"— No. EDI, may be procured at no charge from the Corporation by insured banks for official use. The Corporation shall furnish to banks an order blank for use in procuring the official signs. Any bank which promptly, after receipt of the order blank, fills it in, executes it, and properly directs and forwards it to the Federal Deposit Insurance Corporation, Washington, D.C. 20429, shall not be deemed to have violated this regulation on account of not displaying an official sign, or signs, unless the bank shall om it to display such official sign or signs after receipt thereof. (2) Official signs reflecting variations in color and materials and additional 132 FEDERAL DEPOSIT INSURANCE CORPORATION signs reflecting variations in size, color, and materials may be procured by in sured banks from commercial suppliers. (c) Receipt of deposits at same teller's station or window as noninsured bank or institution. An insured bank is forbidden to receive deposits at any te ll er’s station or window where any noninsured bank or institution receives depos its or similar liabilities. (d) Required changes in official sign. The Corporation may require any in sured bank, upon at least 30 days' written notice, to change the wording of its official signs in a manner deemed necessary for the protection of depositors or others. §328.2 Mandatory requirements with regard to the official advertising state ment and manner of use. (a) Insured banks to include official advertising statement in all advertise ments except as provided in paragraph (c) of this section. Each insured bank shall include the official advertising statement, prescribed in paragraph (b) of this section, in all of its advertisements except as provided in paragraph (c) of this section. (1) An insured bank is not required to include the official advertising state ment in its advertisements until thirty (30) days after its first day of operation as an insured bank. (2) In cases where the Board of Directors of the Federal Deposit Insurance Corporation shall find the application to be meritorious, that there has been no neglect or willful violation in the observance of this section and that undue hardship will result by reason of its requirements, the Board of Directors may grant a temporary exemption from its provision to a particular bank upon its written application setting forth the facts. For the procedure to be followed in making such application see §303.8 of this chapter. (3) In cases where advertising copy not including the official advertising statement is on hand on the date the requirements of this section become op erative, the insured bank may cause the official advertising statement to be in cluded by use of a rubber stamp or otherwise. (b) Official advertising statement. The official advertising statement shall be in substance as follows: “ Member of the Federal Deposit Insurance Corpora tio n ". The word “ th e " or the words “ of th e " may be omitted. The words “ This bank is a" or the words “ This institution is a" or the name of the insured bank followed by the words “ is a" may be added before the word “ member". The short title “ Member of FDIC" or “ Member FDIC" or a reproduction of the “ symbol" may be used by insured banks at their option as the official advertis ing statement. The official advertising statement shall be of such size and print to be clearly legible. Where it is desired to use the “ symbol" of the Corporation as the official advertising statement, and the “ symbol" must be reduced to such proportions that the small lines of type and the Corporation seal therein are indistinct and illegible, the Corporation seal in the letter C and the two lines of small type may be blocked out or dropped. (c) Types of advertisements which do not require the official advertising statement. The following is an enumeration of the types of advertisements which need not include the official advertising statement: (1) Statements of condition and reports of condition of an insured bank which are required to be published by State or Federal law; (2) Bank supplies such as stationery (except when used for circular letters), envelopes, deposit slips, checks, drafts, signature cards, deposit passbooks, cer tificates of deposit, etc.; (3) Signs or plates in the banking office or attached to the building or build ings in which the banking offices are located; (4) Listings in directories; (5) Advertisements not setting forth the name of the insured bank; RULES AND REGULATIONS OF THE CORPORATION 133 (6) Display advertisements in bank directory, provided the name of the bank is listed on any page in the directory with a symbol or other descriptive matter indicating it is a member of the Federal Deposit Insurance Corporation; (7) Joint or group advertisements of banking services where the names of in sured banks and noninsured banks or institutions are listed and form a part of such advertisements; (8) Advertisements by radio which do not exceed th irty (30) seconds in time; (9) Advertisements by television, other than display advertisements, which do not exceed thirty (30) seconds in time; (10) Advertisements which are of the type or character making it impractical to include thereon the official advertising statement including, but not limited to promotional items such as calendars, matchbooks, pens, pencils, and key chains; (11) Advertisements which contain a statement to the effect that the bank is a member of the Federal Deposit Insurance Corporation, or that the bank is in sured by the Federal Deposit Insurance Corporation, or that its deposits or de positors are insured by the Federal Deposit Insurance Corporation to the maximum of $15,000 for each depositor; (12) Advertisements relating to the making of loans by the bank or loan services; (13) Advertisements relating to safekeeping box business or services; (14) Advertisements relating to tru st business or trust department services; (15) Advertisements relating to real estate business or services; (16) Advertisements relating to armored car services; (17) Advertisements relating to service charges or analysis charges; (18) Advertisements relating to securities business or securities department services; (19) Advertisements relating to travel department business, including travel er's checks on which the bank issuing or causing to be issued the advertise ment is not primarily liable; (20) Advertisements relating to savings bank life insurance. (d) Outstanding billboard advertisements. Where an insured bank has bill board advertisements outstanding which are required to include the official advertising statement and has direct control of such advertisements either by possession or under the terms of a contract, it shall, as soon as it can consist ent with its contractual obligations, cause the official advertising statement to be included therein. (e) Official advertising statement in non-English language. The non-English equivalent of the official advertising statement may be used in any advertise ment: Provided, That the translation has had the prior written approval of the Corporation. [F.R. Doc. 67-7385; Filed, July 10, 1967; 8:45 a.m.] TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY PART 330— CLARIFICATION AND DEFINITION OF DEPOSIT INSURANCE COVER AGE Effective September 1, 1967, Part 330 of the rules and regulations of the Federal Deposit Insurance Corporation (12 C.F.R. 330) is revised to read as fo l lows: Sec. 330.1 General principles applicable in determining insurance of deposit ac counts. 134 330.2 330.3 330.4 330.5 330.6 330.7 330.8 330.9 330.10 330.11 330.12 330.13 330.14 FEDERAL DEPOSIT INSURANCE CORPORATION Single ownership accounts. Testamentary accounts. Accounts held by executors or administrators. Accounts held by a corporation or partnership. Accounts held by an unincorporated association. Independent activity. Public unit accounts. Joint accounts. Trust accounts. Deposits evidenced by negotiable instruments. Deposit obligations for payment of items forwarded fo r collection by bank acting as agent. Continuation of prior coverage. Notification. §330.1 General principles applicable in determining insurance of deposit accounts. (a) General. This Part 330 provides for determination by the Corporation of the insured depositors of an insured bank and the amount of their insured de posit accounts. The rules for determining the insurance coverage of deposit ac counts maintained by depositors in the same or different rights and capacities in the same insured bank are set forth in the following provisions of this part. Insofar as rules of local law enter into such determinations, the law of the ju r isdiction in which the insured bank's principal office is located shall govern. (b) Records. (1) The deposit account records of the insured bank shall be conclusive as to the existence of any relationship pursuant to which the funds in the account are deposited and on which a claim for insurance coverage is founded. Examples would be trustee, agent, custodian or executor. No claim for insurance based on such a relationship will be recognized in the absence of such disclosure. (2) If the deposit account records of an insured bank disclose the existence of a relationship which may provide a basis for additional insurance, the details of the relationship and the interests of other parties in the account must be as certainable either from the records of the bank or the records of the depositor maintained in good faith and in the regular course of business. (3) The deposit account records of an insured bank in connection with a trust account shall disclose the name of both the settlor (grantor) and the trus tee of the trust and shall contain an account signature card executed by the trustee. (4) The interests of the co-owners of a joint deposit account shall be deemed equal, unless otherwise stated on the insured bank's records in the case of a tenancy in common. (c) Valuation of trust interests. (1) Trust interests in the same tru st depos ited in the same account will be separately insured if the value of the trust inter est is capable of determination, without evaluation of contingencies, except for those covered by the present worth tables and rules of calculation for their use set forth in §20.2031-7 of the Federal Estate Tax Regulations (26 CFR 20.2031-7). (2) In connection with any trust in which certain trust interests are not capa ble of evaluation in accordance with the foregoing rule, payment by the Corporation to the trustee with respect to all such trust interests shall not ex ceed the basic insured amount of $15,000. (3) Each trust interest in any trust established by two or more settlors shall be deemed to be derived from each settlor pro rata to his contribution to the trust. (4) The term “ trust interest” means the interest of a beneficiary in an irrev RULES AND REGULATIONS OF THE CORPORATION 135 ocable express trust, whether created by trust instrument or statute, but does not include any interest retained by the settlor. (5) With respect to trust funds held by an insured bank in a fiduciary capac ity pursuant to section 7(i) of the Act, the term ‘ ‘trust interest" shall mean the same as the term “ trust funds" as used in section 3(p) of the Act. §330.2 Single ownership accounts. Funds owned by an individual and deposited in the manner set forth below shall be added together and insured up to $15,000 in the aggregate. (a) Individual accounts. Funds owned by an individual (or by the community between husband and wife of which the individual is a member) and deposited in one or more deposit accounts in his own name shall be insured up to $15,000 in the aggregate. (b) Accounts held by agents or nominees. Funds owned by a principal and deposited in one or more deposit accounts in the name or names of agents or nominees shall be added to any individual deposit accounts of the principal and insured up to $15,000 in the aggregate. (c) Accounts held by guardians, custodians, or conservators. Funds held by a guardian, custodian, or conservator for the benefit of his ward or fo r the benefit of a minor under a Uniform Gifts to Minors Act and deposited in one or more deposit accounts in the name of the guardian, custodian, or conservator shall be added to any individual deposit accounts of the ward or minor and insured up to $15,000 in the aggregate. §330.3 Testamentary accounts. (a) Funds owned by an individual and deposited in a revocable trust ac count, tentative or “ Totten" trust account, “ payable-on-death" account or sim i lar account evidencing an intention th a t on his death the funds shall belong to his spouse, child or grandchild shall be insured up to $15,000 in the aggregate as to each such named beneficiary, separately from any other accounts of the owner. (b) If the named beneficiary of such an account is other than the owner’s spouse, child or grandchild, the funds in such account shall be added to any in dividual accounts of such owner and insured up to $15,000 in the aggregate. §330.4 Accounts held by executors or administrators. Funds of a decedent held in the name of the decedent or in the name of the executor or administrator of his estate and deposited in one or more deposit accounts shall be insured up to $15,000 in the aggregate, separately from the individual deposit accounts of the beneficiaries of the estate or of the executor or administrator. §330.5 Accounts held by a corporation or partnership. Deposit accounts of a corporation or partnership engaged in any independent activity shall be insured up to $15,000 in the aggregate. A deposit account of a corporation or partnership not engaged in an independent activity shall be deemed to be owned by the person or persons owning such corporation or com prising such partnership and, for deposit insurance purposes, the interest of each person in such a deposit account shall be added to any other deposit ac counts individually owned by such person and insured up to $15,000 in the aggregate. §330.6 Accounts held by an unincorporated association. Deposit accounts of an unincorporated association engaged in any independ ent activity shall be insured up to $15,000 in the aggregate. A deposit account of an unincorporated association not engaged in an independent activity shall be deemed to be owned by the persons comprising such association and, for deposit insurance purposes, the interest of each owner in such a deposit ac count shall be added to any other deposit accounts individually owned by such person and insured up to $15,000 in the aggregate. 136 FEDERAL DEPOSIT INSURANCE CORPORATION §330.7 Independent activity. The term "independent activity” means any activity other than one directed solely at increasing insurance coverage. §330.8 Public unit accounts. (a) General. Where different officers, agents or employees of the same public unit, having by law the official custody of public funds of the unit, deposit the same in an insured bank, each such officer, agent or employee shall be sep arately insured up to $15,000 in such custodial capacity. An officer, employee, or agent of a public unit shall be deemed to be insured only up to $15,000 with respect to all public funds of the same unit held by him, regardless of how many offices he holds in such unit or the purposes for which such funds are held or designated. If the same person is an officer, employee, or agent of more than one public unit, he shall be separately insured up to $15,000 with respect to the public funds held by him of each such unit. (b) Public bond issues. Where an officer, agent or employee of a public unit has custody of certain funds which by law or under the bond indenture are re quired to be paid to the holders of bonds issued by the public unit, any deposit of such funds in an insured bank shall be deemed to be a deposit by a trustee of trust funds of which the bondholders are pro rata beneficiaries, and each such beneficial interest shall be separately insured up to $15,000. §330.9 Joint accounts. (a) Separate insurance coverage. Deposits owned jointly, whether as joint tenants with right of survivorship, as tenants by the entireties, as tenants in common, or by husband and wife as community property, shall be insured sep arately from deposit accounts individually owned by the co-owners. (b) Qualifying joint accounts. A joint deposit account shall be deemed to ex ist, for purposes of insurance of accounts, only if each co-owner has personally executed a deposit account signature card and possesses withdrawal rights. The restrictions of this subsection shall not apply to holders in due course of a de posit obligation of a bank evidenced by a negotiable instrument which had, in fact, been negotiated prior to the closing of the bank. (c) Failure to qualify. A deposit account owned jointly which does not quali fy as a joint account for purposes of insurance of accounts shall be treated as owned by the named persons as individuals and the actual ownership interest of each such person in such account shall be added to any other accounts indi vidually owned by such person and insured up to $15,000 in the aggregate. (d) Same combination of individuals. All joint deposit accounts owned by the same combination of individuals shall first be added together and insured up to $15,000 in the aggregate. (e) Interest of each co-owner. The interests of each co-owner in all joint de posit accounts owned by different combinations of individuals shall then be added together and insured up to $15,000 in the aggregate. §330.10 Trust accounts. All trust interests for the same beneficiary deposited in deposit accounts es tablished pursuant to valid trust agreements created by the same settlor (gran tor) shall be added together and insured up to $15,000 in the aggregate, sep arately from other deposit accounts of the trustee of such tru st funds or the settlor or beneficiary of such trust arrangements. §330.11 Deposits evidenced by negotiable instruments. If any insured deposit obligation of a bank be evidenced by a negotiable cer tificate of deposit, negotiable draft, negotiable cashier's or officer’s check, nego tiable certified check, or negotiable traveler's check or letter of credit, the own er of such deposit obligation will be recognized for all purposes of claim for insured deposits to the same extent as if his name and interest were#disclosed on the records of the bank provided the instrument was in fact negotiated to RULES AND REGULATIONS OF THE CORPORATION 137 such owner prior to the date of the closing of the bank. Affirmative proof of such negotiation must be offered in all cases to substantiate the claim. §330.12 Deposit obligations for payment of items forwarded for collection by bank acting as agent. Where a closed bank has become obligated for the payment of items fo r warded for collection by a bank acting solely as agent, the owner of such items will be recognized for all purposes of claim for insured deposits to the same extent as if his name and interest were disclosed on the records of the bank when such claim for insured deposits, if otherwise payable, has been estab lished by the execution and delivery of prescribed forms. Such bank forwarding such items for the owners thereof will be recognized as agent for such owners for the purpose of making an assignment of the rights of such owners against the closed insured bank to the Federal Deposit Insurance Corporation and for the purpose of receiving payment on behalf of such owners. §330.13 Continuation of prior coverage. All deposit accounts insured under the rules and interpretations heretofore in effect shall continue to be insured, anything in this part to the contrary notwith standing, until April 15, 1968. §330.14 Notification of depositors. Each insured bank is required to provide notice of these revisions to the Rules and Regulations for Clarification and Definition of Insurance Coverage of Deposit Accounts, Part 330, prior to February 1, 1968, to the depositors of each deposit account which had a balance in excess of $5,000 on any date se lected by the bank between September 1, 1967, and February 1, 1968. Such no tice shall consist of mailing to such depositors at their last known address as shown on the records of the insured bank, a question and answer brochure on insurance of deposit accounts prepared by the Federal Deposit Insurance Corpo ration. Such brochure shall also be made available to the public at each teller's station or window where deposits are normally received and at new account sta tions of an insured bank. Additional explanatory materials may also be sent to depositors at the option of the insured bank. INTERPRETATION §330.101 Recognition of deposit ownership in custodial accounts. (a) The opinion of the Board of Directors has been requested as to whether a fractional or percentage computation of the interests of owners of comm in gled funds on deposit in custodial accounts in banks insured by the Federal De posit Insurance Corporation meets the requirements of §330.1. (b) Section 330.1 provides that if the name and interest of an owner of any portion of a specifically designated custodial deposit is disclosed on the records of the person in whose name the deposit is maintained and such records are maintained in good faith and in the regular course of business, such owner will be recognized for all purposes of claim for insured deposits to the same extent as if his name and interest were disclosed on the records of the bank. (c) The Board of Directors has concluded that, if the records of the deposi tor, maintained in good faith and in the regular course of business, reflect, at all times, the name and ascertainable interest of each owner in a specifically designated custodial deposit, such interest may be determined on a fractional or percentage basis. This may be accomplished in any manner which indicates that where the funds of an owner are commingled with other funds held in cus tody and a portion thereof is placed on deposit in one or more insured banks, his interest in a custodial deposit in any one insured bank would represent at any given time the same fractional share as his share of the total commingled funds. [F.R. Doc. 67-8195; Filed, July 13, 1967; 8:50 a.m.] 138 FEDERAL DEPOSIT INSURANCE CORPORATION TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY PART 335— SECURITIES OF INSURED STATE NONMEMBER BANKS Effective December 31, 1967, Part 335 is amended as follows: 1. Amend §335.2 by adding §335.2(ff) immediately following §335.2(ee) to read as follows: §335.2 Definitions. # # * * * (ff) The terms "beneficial ownership," "beneficially owned," and the like, when used with respect to the reporting of ownership of the bank's equity se curities in any statement or report required by this regulation, shall include, in addition to direct and indirect beneficial ownership by the reporting person, ownership of such securities (1) by the spouse (except where legally separated) and minor children of such reporting person, and (2) by any other relative of the reporting person who has the same home as such person. 2. Amend §335.5(d)(1) and (3) and add a new paragraph (k) to read as fo l lows: §335.5 Proxies, proxy statements, and statements where management does not solicit proxies. * * * * * (d) Requirements as to proxy. (1) The form of proxy (i) shall indicate in boldface type whether or not the proxy is solicited on behalf of the manage ment of the bank, (ii) shall provide a specifically designed blank space for dating proxy, and (iii) shall identify clearly and impartially each m atter or group of related matters intended to be acted upon, whether proposed by the man agement or by security holders. No reference need be made, however, to matters as to which discretionary authority is conferred pursuant to subpara graph (3) of this paragraph. * * * * (3) A proxy may confer discretionary authority with respect to other matters tha t may come before the meeting, if (i) the persons on whose behalf the soli citation is made are not aware a reasonable time prior to the tim e the solicita tion is made that any such other matters are to be presented for action of the meeting and (ii) a specific statement to that effect, except with respect to pro posals omitted pursuant to paragraph (k) of this section for which discretionary authority may also be conferred, is made in the proxy statement or in the form of proxy. * # * * * (k) Proposals of security holders. (1) If any security holder entitled to vote at a meeting of security holders of the bank shall submit to the management of the bank, within the time hereinafter specified, a proposal which is accompa nied by notice of his intention to present the proposal for action at the meet ing, the management shall set forth the proposal in its proxy statement and shall identify it in its form of proxy and provide means by which security hold ers can approve or disapprove the proposal. The management of the bank shall not be required by this section to include the proposal in its proxy statement for an annual meeting unless the proposal is submitted to management not less than 60 days in advance of a day corresponding to the first date on which the management's statement was released to security holders in connection with the preceding annual meeting of security holders. A proposal to be pre RULES AND REGULATIONS OF THE CORPORATION 139 sented at any other meeting shall be submitted to the management of the bank a reasonable time before the solicitation is made. This paragraph (k) shall not apply, however, to elections to office. (2) If the management opposes the proposal, it shall also, at the written re quest of the security holder, include in the proxy statement (i) the name and address of the security holder, or a statement that such name and address will be furnished upon request, and (ii) a statement of the security holder, which shall not include such name and address, of not more than 100 words in sup port of the proposal. The statement and request of the security holder shall be furnished to the management at the same time that the proposal is furnished. Neither the management nor the bank shall be responsible for such statement. (3) Notwithstanding subparagraphs (1) and (2) of this paragraph, the man agement may om it a proposal and any statement in support thereof from its proxy statement and form of proxy under any of the following circum stances: (i) If the proposal is impossible to accomplish or, under applicable law, is not a proper subject for action by security holders; or (ii) If the proposal consists of a recommendation or request that the man agement take action with respect to a m atter relating to the conduct of the ordinary business operations of the bank; or (iii) If it appears that the proposal is submitted by the security holder princi pally for the purpose of enforcing a personal claim or redressing a personal grievance against the bank or its management, or principally for the purpose of promoting general economic, political, racial, religious, social, or similar causes; or (iv) If the management has at the security holder’s request included a pro posal in its proxy statement and form of proxy relating to either of the two preceding annual meetings of security holders or any special meeting held sub sequent to the earlier of such two annual meetings, and such security holder has failed without good cause to present the proposal, in person or by proxy, for action at the meeting; or (v) If substantially the same proposal has previously been submitted to secu rity holders in the management's proxy statement and form of proxy relating to any meeting of security holders held within the preceding 5 calendar years, it may be omitted from the proxy statement relating to any meeting of security holders held within the 3 calendar years after the latest such previous submis sion: Provided, That (a) if the proposal was submitted at only one meeting dur ing such preceding period, it received less than 5 percent of the total number of votes cast in regard thereto, or (b) if the proposal was submitted at only two meetings during such preceding period, it received at the time of its second submission less than 10 percent of the total number of votes cast in regard thereto, or (c) if the proposal was submitted at three or more meetings during such period, it received at the time of its latest submission less than 20 per cent of the total number of votes cast in regard thereto; or (vi) If, prior to the receipt of such proposal, substantially the same proposal has been received by the management from another security holder and is to be included in the bank's proxy soliciting material. (4) Whenever the management asserts that a proposal and any statement in support thereof may properly be omitted from the proxy statement and form of proxy, it shall file with the Corporation, not later than 20 days prior to the date the preliminary copies of the proxy statement and form of proxy are filed pursuant to paragraph (f)(1 ) of this section or such shorter period prior to such date as the Corporation may permit, a copy of the proposal and any state ment in support thereof as received from the security holder, together with a statement of the reasons why the management deems such omission to be proper in the particular case, and, where such reasons are based on matters of law, a supporting opinion of counsel. The management shall at the same time, FEDERAL DEPOSIT INSURANCE CORPORATION 140 if it has not already done so, notify the security holder submitting the proposal of its intention to om it the proposal from its proxy statement and shall forward to him a copy of the statement of the reasons why the management deems the omission of the proposal to be proper and a copy of such supporting opinion of counsel. [F.R. Doc. 67-14057; Filed, Dec. 5, 1967; 8:45 a.m.] TITLE 12— BANKS AND BANKING CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION PART 336— EMPLOYEE RESPONSIBILITIES AND CONDUCT Miscellaneous Amendments Effective October 7, 1967, Part 336 is amended as follows: Section 336.735-11(c) is deleted and the provisions thereof transferred to §336.735-10; §336.735-11(d) is amended to indicate the circumstances under which a gift to an official superior may be allowed; the heading of §336.735-12 is amended for clarity and paragraph (f)(1 ) of that section is deleted and the provisions thereof transferred to §336.735-11(f) and amended to show that the exception does not allow non-Corporation reimbursement fo r travel on official business under Corporation orders; §§336.735-11(d) and (e) and 336.735-19 are amended to correct statutory references made obsolete by the codification of Title 5, United States Code; paragraph (r) is added to §336.735-19 to include reference to 18 U.S.C. 219; §§336.735-13(a)(l), 336.735-31, and 336.735-32 are amended, and §336.735-31a is added, to restrict the requirements relative to reporting employment and financial interests to those employees in positions in which the possibility of conflicts-of-interest involvement is clear and to evi dence the availability of the Corporation’s grievance procedure for settling questions concerning the applicability of the reporting requirement. Section 336.735-34 is amended to eliminate quarterly supplementary statements; §336.735-38 is amended to insure the confidentiality of statements submitted; and §336.735-40 (a)(2) is amended to clarify the Corporation’s discretionary authority relative to which financial interests are to be reported by a special Corporation employee. These amendments were approved by the Civil Service Commission on September 20, 1967. Effective upon publication in the Federal Register, Part 336 is amended as set out below. §336.735-10 Proscribed actions. An employee shall avoid any action, whether or not specifically prohibited by this subpart which might result in, or create the appearance of: (a) Using public office fo r private gain; (b) Giving preferential treatment to any person; (c) Impeding Corporation efficiency or economy; (d) Losing complete independence or impartiality; (e) Making a Corporation decision outside official channels; or (f) Affecting adversely the confidence of the public in the integrity of the Corporation. §336.735-11 Gifts, entertainment, and favors. (a) Except as provided in paragraphs (b) and (f) of this section, an em ployee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who: * * * * $ (c) [Deleted] (d) An employee shall not solicit a contribution from another employee for a RULES AND REGULATIONS OF THE CORPORATION 141 gift to an official superior, make a donation as a g ift to an official superior, or accept a g ift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, ill ness, or retirement. (e) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in Public Law 89-673, 80 Stat. 952. (f) Neither this section nor §336.735-12 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Corporation payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other per sonal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Corporation orders when reimbursement is prescribed by the Corporation. §336.735-12 Outside employment and other activity. sfc sjs * (f) • * • (1) [Deleted] js v §336.735-19 Miscellaneous statutory provisions. ❖ * (d) 1918). * sjs The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. (g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352). (h) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a (c)). (j) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917). * * * * * (p) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608. * * * * * (r) The prohibition against an employee acting as the agent of a foreign prin cipal registered under the Foreign Agents Registration Act (18 U.S.C. 219). §336.735-13 Financial interests. (a) * * * (1) Own, directly or indirectly, or control the ownership of stock in an in sured bank, without full disclosure in writing to, and with the approval of, the Board of Directors of the Corporation. §336.735-31 Employees required to subm it statements. Except as provided in §336.735-32, statements of employment and financial interests will be filed by the following employees: 142 FEDERAL DEPOSIT INSURANCE CORPORATION (a) Those paid at a level of the Executive Schedule in subchapter II of chap ter 53 of title 5, United States Code. (b) Those receiving compensation equivalent to that prescribed under section 5332 of title 5, United States Code for grade GS-13 or above whose positions are specifically identified in appendix A to this part which are included by rea son of meeting the following criteria: (1) Positions the incumbents of which are responsible fo r making a Corpora tion decision or taking a Corporation action in regard to: (1) Contracting or procurement; (ii) Administering or monitoring grants or subsidies; (iii) Regulating or auditing private or other non-Federal enterprise; or (iv) Other activities where the decision or action has an economic impact on the interests of any non-Federal enterprise. (2) Positions which the Corporation determines require the incumbent to re port employment and financial interests in order to carry out the purpose of law, Executive order, this part, and the Corporation’s regulations. (c) Alterations to, deletions from and other amendments of the list of posi tions in appendix A to this part may be made under the criteria in paragraph (b) of this section and are effective upon approval by the Chairman of the Board and actual notification to the incumbents. Amendments to the list in ap pendix A to this part shall be submitted annually for publication in the Federal Register. §336.735-31a Employee's complaint on filing requirem ent An employee may complain to the Counselor designated in the regulations in this part that his position has been improperly included in the regulations in this part as one requiring the submission of a statement of employment and financial interests. When a complaint cannot be resolved or explained satisfacto rily to the employee he shall be granted a review of the matter through the Cor poration’s grievance procedure. §336.735-32 Employees not required to subm it statements. Employees subject to separate reporting requirements under section 401 of the Executive order. §336.735-34 Supplementary statements. Changes in, or additions to, the information contained in an employee’s statement of employment and financial interests shall be reported in a supple mentary statement as of June 30 each year. If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report re quired by this section, each employee shall at all times avoid acquiring a finan cial interest that could result, or taking an action that would result, in a violation of the conflicts-of-interest provisions of section 208 of title 18, United States Code, or Subpart B of this part. §336.735-38 Confidentiality of employees' statements. The Corporation shall hold statements of employment and financial interest, and each supplementary statement, in confidence. All statements shall be re ceived, reviewed, and retained in the office of the assistant to the Chairman of the Board of Directors who is responsible for maintaining the statements in confidence and shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purpose of this part. The Corporation may not disclose information from a statement except as the Chairman of the Corporation or the Civil Service Commission may determine for good cause shown. §336.735-40 Specific provisions of regulations for special Corporation employ ees. (a) * * * RULES AND REGULATIONS OF THE CORPORATION 143 (2) The financial interests of the special Corporation employee which the Corporation determines are relevant in the light of the duties he is to perform. APPENDIX A— EMPLOYEES WHO MUST FILE STATEMENTS SPECIFIC POSITIONS A Head, Associate Head or Assistant Head of a Division or Office of the Cor poration (regardless of his specific title ). An Adviser or Assistant to the Board of Directors. A Supervising Examiner. An Assistant Supervising Examiner. [F.R. Doc. 67-11859; Filed, Oct. 6, 1967; 8:47 a.m.] STATE B A N K IN G L E G IS L A T IO N -1 9 6 7 In 1967, the legislatures of 47 States held regular sessions. Some of the more im portant State banking legislation enacted during 1967 is listed below on a State-by-State basis. ALABAM A Uniform Gifts to Minors Act amendments ............................ Establishment and operation of branch offices ................. State banks— examination fees ................................................ Equalization of State and national banks .............................. Common trust funds .................................................................. HB 14 HB 728 HB 260 HB 919 SB 333 SB 579 SB 442 SB 43-X SB 197 SB 200 SB 256 HB 156-X SB 201 ALASKA Uniform Gifts to Minors Act ..................................................... Veterans' loans ........................................................................... HB SB 30 113 Fiduciaries— voting of corporation stock .................... A R IZ O N A Enactment of Uniform Commercial Code ..................... Banking law amendments regarding disclosure of information, branch offices, fees, etc.......................... SB 23 SB 109 ARKANSAS Enactment of the Uniform Gifts to Minors Act ..................... Cease and desist orders ......................................................... Bank service corporations— computer services ..................... Destruction of bank records after six years ........................ Maximum interest rates ............................................................ Uniform Commercial Code amendments .............................. Capital notes ................................................................................ Banking law study ....................................................................... Title to bank property— subsidiaries ....................................... State banks given same privileges as national banks .......... Pension funds— investment in bank certificates of deposit .. HB HB HB HB HB SB SB SB SB SB SB 87 144 295 237 543 307 272 161 140 358 104 144 FEDERAL DEPOSIT INSURANCE CORPORATION Contracts by minors ............................................ Guardianship deposits— bond unnecessary if deposited in an insured bank ................... C A L IF O R N IA Bank service corporations ......................................................... School district security deposits .............................................. Government deposits .................................................................. Insured loans ................................................................................ Trust investments ....................................................................... Credit cards ........................................................................ Claims on bank accounts ......................................................... Safe deposit boxes ..................................................................... Taxation ................................................................................ Savings bank investments ......................................................... Transmission of money abroad ................................................ Loans to bank officers ................................................................ Stock holdings .............................................................................. Bank investments in foreign banks ....................................... Commercial bank reserves ......................................................... Loans— fraud ................................................................................ Corporate Securities Law— exemptions ................................... C O LO R ADO Banking law amendments relating to loans and interest on savings and time deposits ................................. Enactment of the Uniform Gifts to Minors Act ..................... Bank liquidation funds— transfer ............................................ Bank employees— stock option and purchase plans ............ Investment of bank funds in Inter-American Development Bank ................................................................ Colorado Trust Company Act ..................................................... Insufficient funds ...................................................................... SB 138 HB HB 320 528 SB AB AB AB AB AB AB SB AB AB AB AB AB SB SB SB SB SB SB SB SB SB SB SB SB SB 1494 1076 1075 1381 1585 1806 1714 1055 1822 1851 1852 2257 1994 192 339 556 519 116 901 694 1040 1183 1264 568 538 865 HB SB SB SB 1015 62 283 250 HB SB SB HB SB 1255 50 153 1210 354 SB HB HB HB SB SB SB SB SB SB SB SB 641 3887 5410 5091 403 737 404 406 427 470 471 473 C O N N E C T IC U T Savings banks— student loans ................................... Uniform Gifts to Minors Act amendments .............................. Bank loans and investments ..................................................... Banking commissioner— expenses .......................................... Banking law amendments ......................................................... Limited power branch banks ..................................................... Capital stock ................................................................................ Powers of State banks and trust companies .............. ....... Deposit segregation ..................................................................... STATE BANKING LEGISLATION— 1967 Credit cards .................................................................................. Savings bank deposits ................................................................ Secured loans ................................................................................ 145 SB SB SB SB SB SB SB SB SB HB HB 524 591 644 643 642 743 1005 1008 1170 2628 5384 HB 184 SB HB HB SB HB SB SB SB SB HB HB SB HB SB SB HB SB SB 316 40 750 1406 1283 682 742 1183 1002 769 749 375 1373 61 59 2459 683 1061 Banks insured by FDIC authorized depositories for Florida scholarship program ........................................ SB 1292 G E O R G IA Uniform Commercial Code amendments .............................. Bank reserves ............................................................................. Place of business ....................................................................... Branch banks ................................................................................ HB HB HB SB 48 634 585 170 Banking law amendments ......................................................... Uniform Sale of Securities Act ................................................ Bank shareholders— votes ......................................................... Unclaimed property .................................................................... Branch banks ................................................................................ Foreign banks ............................................................................. Investment of common trust funds ....................................... HB HB HB HB HB SB SB SB SB SB 237 356 297 829 1005 468 997 1002 35 1022 ID A H O Deposit of trust funds ........................................ ..................... Uniform Gifts to Minors Act ..................................................... Abandoned property .................................................................. HB HB HB 130 136 145 Real estate investments— savings banks .............................. State bank investments .............................................................. Bank directors .............................................................................. Savings banks— time deposits ................................................ Reserve funds .............................................................................. Finance charges— disclosure ..................................................... Joint tenants ................................................................................ Branches .... D ELAW ARE ........................................ F L O R ID A Trust fund investments .............................................................. Unclaimed property ..................................................................... Examination fees of State banks & trust companies ............ Bank employee stock option plans ......................................... Legal investments ....................................................................... Non-par banking ......................................................................... Credit cards .................................................................................. FDIC as liquidator ....................................................................... Industrial savings banks ............................................................ Audit of State banks .................................................................. Public fund depositories .............................................................. Stockholders' meetings .............................................................. Payment of item by payor bank .............................................. State financial law study ........................................................... Uniform Sale of Securities Act ............................................... H A W A II Uniform Gifts to Minors Act ............................................. Uniform Commercial Code amendments .............................. 146 FEDERAL DEPOSIT INSURANCE CORPORATION Branch banking— investigation fee ......................................... Independent audit ....................................................................... Bank fees— authority to do business ................................... Maximum interest rates ............................................................ Uniform Commercial Code enacted .. Legal investments ............................. IL L IN O IS Illinois Gifts to Minors Act amendments ......... Uniform Commercial Code amendments .............................. Credit cards ...................................................................... Installment loans— interest rates ... Negotiable instruments— bank holidays .............................. Safety deposit boxes .................................................................. Disposition of unclaimed property ......................................... IN D IA N A Disposition of unclaimed property ............................................ Branch banks .............................................................................. Mutual savings banks— organization ..................................... Financial Institutions Act amendments .... Certificates of deposit— interest .............................................. Student loans .............................................................................. Purchase of stock ....................................................................... Shareholders’ meetings .............................................................. IO W A Disposition of unclaimed property ............................................ Bank parking lot offices .............................................................. Installment loans ......................................................................... Interest— savings and time deposits ....................................... Uniform Commercial Code amendments .............................. Power of State banks to own and lease certain personal property .................................................................................... Banking law study ....................................................................... Capital notes and debentures ................................................... Debt management ....................................................................... KANSAS Auxiliary teller facilities ..................................................... Banking law amendments— equalization of powers of State and national banks ................................................ Credit cards— fraudulent use ................................................... Taxation of banking associations ............................................ Bank investments ....................................................................... Money orders— transmission of money ................................. Deposit of public monies ......................................................... Uniform Commercial Code amendments ................................. Trust companies ......................................................................... Student loans .... L O U IS IA N A .......................................... HB HB HB SB HB SB SB HB 205 208 207 62 370 2 8 36 HB HB HB SB HB SB HB SB HB SB 1563 363 1254 190 2282 30 2071 980 830 344 HB HB SB SB SB SB SB SB SB SB 1682 1461 95 97 100 462 320 241 319 284 HB HB SB SB SB SB 101 474 184 298 561 560 SB SCR SB HB 729 41 436 284 HB 1474 HB HB HB SB SB SB SB SB 1461 1229 1628 57 145 356 427 146 SB 35 STATE BANKING LEGISLATION— 1967 M A IN E Uniform Gifts to Minors Act amendments ............................ Savings banks— power to act as trustee .............................. Use of name "industrial bank" prohibited .......................... Uniform Commercial Code amendments .............................. Loans— disclosure of interest charges ................................... Joint accounts .................................................. ......................... Consolidation of banks and savings and loan associations .. Insurance of industrial loans .................................................. Sale of checks and money orders ............................................ Authorization of out-of-state banks as fiduciaries ............... Savings banks— participation loans ....................................... Guaranteed loans— savings banks .......................................... Disclosure of interest and finance charges .......................... M AR YLAN D Dormant accounts ....................................................................... False pretenses— bad checks ................................................... 147 HB 320 SB 614 HB 467 HB 582 HB 964 SB 373 HB 345 HB 1001 HB 1002 HB 1035 HB 1246-X SB 77 SB 105 SB 325 SB 390 HB 1215 SB HB HB HB HB SB SB SB SB HB SB SB 179 313 312 154 434 387 566 388 389 459 68 146 Cooperative bank branches ....................................................... Check stop payment .................................................................. Group Insurance Fund investments in bank s to c k ................. HB HB HB HB HB SB HB HB HB HB HB SB HB SB SB HB 713 715 4694 1329 1330 1144 4703 4594 4691 4662 4694 1459 4672 213 1278 62 M IC H IG A N Loans— participation with other financial institutions ........ Credit cards— wrongful use ..................................................... Foreign operations ....................................................................... HB HB HB 2791 2319 2656 M IN N E S O T A Reserves ......................................................................................... Pledging of bank assets ............................................................ Investment of trust funds in certificates of deposit ............ HB SB HB 645 47-X 1395 Credit cards .................................................................................. Property leases ........................................................................... Secondary mortgage loan law ................................................... Demand deposits ......................................................................... Currency exchanges .................................................................. Joint deposits .............................................................................. Disposition of unclaimed property ......................................... Student loans .............................................................................. M ASSACHUSETTS Cooperative banks— safe deposit vaults .............................. Cooperative bank investments ................................................ Savings banks— dividends ......................................................... Banks prohibited from engaging in travel agency business .. Study on impairment of bank capital or deposits ............... Investments— savings banks .................................................. Study on bank mortgages in depressed areas ................. 148 FEDERAL DEPOSIT INSURANCE CORPORATION Loan limitations ........................................................................... Worthless checks— issuance ..................................................... Banking act amendments ......................................................... Non-par banking ......................................................................... Trust investments ....................................................................... Student loans ................................................................................ Corporate existence ..................................................................... SB HB HB HB HB HB SB 433 966 646 645 1383 820 325 M IS S O U R I Revision of banking laws ......................................................... Uniform Gifts to Minors Act amendments .............................. Credit cards— fraud ..................................................................... Taxation ......................................................................................... SB SB SB SB 1 100 156 3 M ONTANA Capital notes or debentures— issuance ................................... Joint deposits— right of survivorship ....................................... Equalization of State and national banks ............................ Uniform Disposition of Unclaimed Property Act ................. Reserve requirements ................................................................ Uniform Gifts to Minors Act amendments ............................ Bank stock tax ........................................................................... HB HB HB HB HB HB HB 46 44 52 396 45 393 205 NEBRASKA Interest rates ................................................................................ Uniform Commercial Code amendments .............................. Computer center stock— legal investments for banks ........ Banking law amendments ......................................................... Charter applications .................................................................. Banking fees— safekeeping of securities .............................. Bank officers' tenure .................................................................. Credit cards— unlawful use ....................................................... Corporate name requirements ................................................ LB LB LB LB LB LB LB LB LB 13 17 124 197 788 749 882 409 787 AB SB AB AB AB AB SB SB SB SB AB SB SB 10 101 32 85 419 527 275 130 402 472 225 131 414 HB HB HB HB HB HB HB HB HB 34 35 37 78 227 284 282 298 712 NEVADA Uniform Gifts to Minors Act amendments .............................. Commercial instruments recording fees ................................. Certificates of deposit as security bonds .............................. Bank stock tax— valuation of shares ....................................... Credit cards .................................................................................. Stockholders’ meetings .............................................................. Branch banking ........................................................................... Installment loans ......................................................................... Bank examination fees ................................................................ Non-resident bank may not act as sole executor ................. Depreciation rates on bank property ....................................... Corporate fiduciaries .................................................................. N E W H A M P S H IR E Savings bank charters ................................................................ Savings deposits accounts— verification ................................ Bank examinations ..................................................................... Reserves of State banks ............................................................ Uniform Commercial Code amendments ................................ Uniform Gifts to Minors Act ..................................................... Savings bank investments ......................................................... STATE BANKING LEGISLATION— 1967 Bank notes— signatures ........................................................... Abandoned property ........................................................ NEW JE R S E Y Uniform Commercial Code amendments .............................. Mergers and consolidations ....................................................... Unclaimed property ................................................................ Loans and investments of savings banks ............. N E W M E X IC O Interest rates on bank installment loans .............................. Uniform Commercial Code amendments .............................. Disposition of abandoned property ....................................... Credit cards .................................................................................. Uniform Gifts to Minors Act amendments ............................ Student loans ............................................................................. NEW Y O R K Savings bank investments ....................................... Common trust funds .................................................................. Safe deposit boxes .................................................................... Uniform Commercial Code amendments ................................ Publication of reports of condition ......................................... Savings banks— student loans ................................................ Credit cards— liability for lost or stolen cards ..................... Savings banks— computation of tax ....................................... Foreign banking corporations— protection of depositors .... Banking law study ....................................................................... Bank holding companies— consolidated returns ................... Nondiscriminatory treatment of State and national banks . Safe deposit boxes— access by fiduciaries ............................ Reports of superintendent of banks ....................................... Trust law amendments .............................................................. Payment of moneys held in bank at infant’s maturity ........ Savings banks— insurance ....................................................... N O R T H C A R O L IN A Worthless checks ......................................................................... Uniform Commercial Code amendments .............................. Interest on loans ......................................................................... Credit cards— illegal use ........................................................... Joint tenancy ownership ............................................................ Banking law amendments ......................................................... State banks— securities .............................................................. 149 HB HB HB SB HB 369 356 295 114 477 AB SB SB SB SB AB 756 456 402 419 442 136 HB SB HB SB SB SB SB 124 115 253 158 211 266 201 SB 1466 SB 121 SB 122 AB 486 AB 487 AB 488 AB 779 AB 1962 AB 3643 AB 4605 AB 4622 AB 4772 AB 4853 AB 5303 AR 175 SB 3930 SB 246-A SB 681 SB 916 AB 1962 SB 3302-A SB 3808 AB 779 AB 1517 AB 3004 HB HB HB HB HB HB SB SB 31 251 465 1076 1144 959 210 535 150 FEDERAL DEPOSIT INSURANCE CORPORATION NORTH DAKOTA Uniform Commercial Code amendments ................................ Taxation of banks ....................................................................... Use of bank assets ..................................................................... Investment of fiduciary funds .................................................. Uniform Gifts to Minors Act amendments ............................ Bank examination fees .............................................................. Powers ........................................................................................... Farm loans by Bank of North Dakota ..................................... Retention of decedent’s assets ................................................ HB HB HB SB SB SB SB HB SB 705 729 811 67 98 231 322 863 99 SB SB HB SB HB 97 245 909 411 470 HB HB SB HB HB SB SCR SB SB 532 603 96 717 823 23 33 123 62 SB SB SB SB 122 209 219 428 SB SB SB SB SB SB HB HB HB HB 227 232 295 401 465 400 1300 1146 1299 1663 HB 1525 SB SB SB HB 533 821 819 1278 HB SB 1798 600 O H IO Revised banking code enacted ................................................ Educational loans ....................................................................... Veterans’ loans ........................................................................... Unclaimed funds ......................................................................... Taxable deposits— listing date ................................................ O KLAHO M A Uniform Disposition of Unclaimed Property Act ........ Reports by bank commissioner .............................................. Reserve banks .............................................................................. Uniform Gifts to Minors Act amendments ............................ Issuance of bad checks ........................................................... Student loans .............................................................................. Conflict of interest by employees of Oklahoma Banking Department ................................................................................ Rental of bank premises ............................................................ Limitation of loans on real estate ............................................ Banking code amendments ....................................................... OREGON Security deposits ......................................................................... Mutual savings banks— investments ....................................... Stockholders' meetings .............................................................. Uniform Gifts to Minors Act amendments .............................. Foreign banks .............................................................................. Unclaimed property ..................................................................... Loans— prepayment privilege .................................................. Sale of Securities Act .................................................................. Election offenses ......................................................................... P E N N S Y L V A N IA State depositories ................................................................ Banks authorized to act as deposit administrator for county retirement funds ......................................................... Investment powers of fiduciaries ............................................ Capital stock— taxation ..................................................... RHODE IS L A N D Interest ........................................................................................... Uncollectible checks .................................................................. STATE BANKING LEGISLATION— 1967 S O U T H C A R O L IN A Foreign banking corporations prohibited from acting as trustees ............................................... 151 HB HB SB SB SB HB 1611 1609 542 198 200 1602 State banks as depositories of public moneys ..................... Fraudulent checks ....................................................................... Uniform Trust Law amendments ............................................ HB SB HB SB SB SB 529 82 761 108 215 230 TENNESSEE Common stock increases ......................................................... Power of banks to acquire and lease personal property ..... Investment powers .................................................................. Banking law study ....................................................................... Fraudulent checks, drafts and credit cards .......................... HB HB HB HJR HR 519 520 430 61 644 HB HB HB SB SB SB SB SB HB 452 758 697 41 133 132 459 550 293 HB HJR SB SB SB SB SB HJR 7 30 3 17 18 21 172 31 HB 402 HB SB SB SB SB SB HB 12 42 622 65 178 338 224 Worthless checks ......................................................................... Uniform Commercial Code amendments .............................. Loans . ................................................... SOUTH D AKO TA Uniform Commercial Code amendments .............................. Installment loans ......................................................................... TEXAS Interest— consumer protection ........................ State banks— cash reserves ..................................................... Stock option plans .................................................................... Trust companies ......................................................................... Business Corporation Act amendments ................................ Uniform Commercial Code amendments .............................. State depositories of public funds ............................................ Business and Commerce Code enacted ................................ UTAH Bank credit— exchange of information ................................... Branch banking study ................................................................ Uniform Gifts to Minors Act amendments .............................. Bank reserves ............................................................................. Banking law amendments .................................................. .... Banking law study .................................................. VERM ONT Banking corporations— taxes ................................. W A S H IN G T O N Investment of funds by fiduciaries ......................................... Uniform Commercial Code amendments .............................. Banking law amendments ......................................................... Mutual savings banks ............................. .................................. Uniform Gifts to Minors Act enacted ..................................... Bad Checks— usurious contracts .............................................. W E S T V IR G IN IA Computer services ....................................................... HB 706 152 FEDERAL DEPOSIT INSURANCE CORPORATION Fiduciary investments SB SB 35 36 Branch banks— change of location ............................ ..................... AB AB Uniform Gifts to Minors Act amendments .............................. ........SB Credit card fraud ......................................................................... ........SB Loans to veterans ...............................................................................AB 283 123 131 190 223 W IS C O N S IN W Y O M IN G Fiduciary investments ................................................................ ........SB Uniform Gifts to Minors Act ............................................................. HB Maximum indebtedness of State banks ................................ ........ HB Uniform Commercial Code amendments .............................. ........ HB Taxation ................................................................................................. HB 2 109 146 49 357 STATISTICS OF B A N K S AND DEPOSIT INSUR ANC E PART FOUR 154 NUMBER OF BANKS AND BRANCHES INSURANCE CORPORATION 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. DEPOSIT Tabulations fo r 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, tru st 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. FEDERAL Table 101. Changes in number and classification of banks and branches in the United States (States and other areas) during 1967 Table 102. Changes in number of commercial banks and branches during 1967, by State Table 103. Number of banking offices in the United States (States and other areas), December 30, 1967 Grouped according to insurance status and class of bank, and by State or area and type of office Table 104. Number and deposits of all commercial and mutual savings banks (States and other areas), December 30, 1967 Grouped by class and by deposit size OF BANKS AND BRANCHES 155 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 sim ilar 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 sim ilar 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 “ de posits" as that term is commonly understood; Institutions chartered under banking or trust company laws, but operating as investment or title insurance companies and not 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. NUMBER Commercial banks include the following categories of banking institutions: National banks; Incorporated State banks, tru st 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; regulated certificated banks, and a savings and loan com pany operating under Superior Court charter, in Georgia; govern ment operated banks in American Samoa, North Dakota, and Puerto Rico; a cooperative bank, usually classified as a credit union, oper ating under a special charter in New Hampshire; a savings insti tution, known as a “ tru s t com pany," operating under special charter in Texas; an employee's mutual banking association in Pennsylvania; the Savings Banks Trust Company in New York; and branches of foreign banks engaged in a general deposit business 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 tru st 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. Com m ercial banks and no n d e p o sit tru s t com panies All banks Total M e m bers F. R. Not System m em bers F. R. Na State Sys tio n a l te m N on Banks d e p o sit tru s t of com de posit panies Total In sured N on insured Net change during y ea r. O ffices c lo s e d . B a n k s ............ B ran ches. . . . 14,974 14,436 4,983 4,867 11,613 11,241 235 251 1,334 1,264 1,004 947 330 317 +988 +1,026 +538 +116 +372 -16 +70 +57 +13 1,261 1,243 602 224 417 18 74 57 17 109 1,152 94 1,149 584 221 73 344 15 3 129 65 64 42 67 13 17 25 57 13 +21 +21 +65 -66 10 +22 +59 -2 4 -4 2 +39 -1 7 +2 +2 -2 -2 13,741 13,785 13,517 13,541 4,758 4,799 1,312 1,350 7,447 7,392 177 196 503 506 333 332 170 174 -23 -44 -24 -41 -38 +55 -19 -3 +1 109 18 73 15 107 18 73 13 +1,058 +1,083 1,335 1,300 109 1,226 1,206 94 277 240 156 140 121 100 +23 Change in classificatio n A m on g b a n k s ................. A m on g b ra n c h e s ........... +23 620 645 35 15 20 37 16 21 273 238 153 139 99 120 -2 3 -2 3 18 +6 3 "7 4 BANKS N um ber of banks, D ecem b er 30, 1967 . N um ber of banks, D ecem ber 31, 1966 . 14,244 14,291 Net change during year 13,850 13,873 394 418 B a n k s beginning operation. New b a n k s ............................ B anks ad d e d to c o u n t. . .. 109 107 94 94 B a n k s ceasing o p era tio n ...................................... A bsorptions, co n so lid a tio n s, and m ergers. C losed-fin ancial d iffic u ltie s ............................. O ther liq u id a tio n s ..................................i............ D is c o n tin u e d d e p o s it o p e ra tio n s ................... B anks dele ted fro m c o u n t............................... 156 140 153 139 13 137 4 7 4 4 132 134 4 7 4 4 131 4 4 3 N oninsured banks becoming in sured 2 4 4 +23 2 +21 +21 2 +2 CORPORATION 31,570 30,544 32,574 31,491 INSURANCE O ffices o p en ed . B a n k s .............. B ra n c h e s ........ 31,860 30,872 33,194 32,136 DEPOSIT ALL B AN K IN G OFFICES N um ber of offices, D ecem ber 30, 1967 2. N um ber of offices, D ecem ber 31, 1966 2. FEDERAL N on In sured insured Total Total M u tual savings banks N oninsured Insured Type o f change 156 Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES (STATES AND OTHER AREAS) DURING 1967 O ther ch ang es in c la ss ific a tio n .............................. N ational s u c c e e d in g S tate b a n k ......................... S tate s u c c e e d in g na tional b a n k ......................... A dm ission o f insured ba nk to F. R. S y s te m .. W ithdraw al fro m F. R. System w ith continued in s u ra n c e ................................................................ 184 18 9 3 53 53 18,950 17,845 18,724 17,618 7 +1 +18 — 7 +5 -1 -2 1 +21 178 18 9 3 53 53 226 227 18,119 17,087 18,053 17,003 10,216 9,637 3,671 3,517 4,166 3,849 58 55 -1 +1,032 +1,050 +579 +15 4 +317 +3 1,152 7 113 21 997 14 1,149 7 113 21 996 12 584 4 73 8 496 3 221 3 14 1 205 1 344 3 26 12 295 8 120 14 75 31 99 14 75 10 64 11 50 3 25 2 18 5 10 1 7 2 +59 -4 2 +8 -7 -1 -1 6 + 16 +51 -1 9 -3 2 77 9 6 3 15 4 86 5 3 7 6 6 8 29 831 758 671 615 160 143 -2 1 +73 +56 +17 74 57 17 3 i 2 70 1 55 1 15 1 1 1 1 3 12 2 10 53 BRANCHES N um ber of b ran ch es, D ecem ber 30, 1967 2. N um ber of b ran ch es, D ecem ber 31, 1966 2. Net change during year. +1,106 1,226 7 116 21 1,067 15 1,206 7 114 21 1,051 13 20 B ra n ch e s d isco n tin u e d ............................................... Facilities d e s ig n a te d by T re a s u ry ....................... B ra n c h e s ..................................................................... B ranches a n d fa c ilitie s d e le te d fro m c o u n t.... 121 14 76 31 100 14 76 10 21 2 16 2 21 O ther ch ang es in cla ss ific a tio n .............................. B ranches c h a n g in g class as re s u lt o f conver sion ............................................................................ B ranches o f in su re d b a nks w ith d ra w in g from F. R. S y s te m ........................................................... B ranches tra n s fe rre d th ro u g h ab sorptio n, c o n s o lid a tio n or m e rg e r..................................... Changes not involving num ber in any cla ss C hanges in o p e ra tin g pow ers o f b ra n c h e s ... . B ranches tra n s fe rre d th ro u g h ab sorptio n, co n s o lid a tio n or c o n v e rs io n ............................ C hanges in title , location , or na m e o f lo c a tio n . 9 9 65 411 64 409 1 2 9 9 4 5 62 399 62 399 59 241 1 83 1 2 21 21 -1 7 2 75 1 2 157 1 Includes one tru st company member of the Federal Reserve System. 2 Includes facilities established at request of the Treasury or Commanding Officer of Government installations, and also a few seasonal branches that were not in operation as of December 31. 3 Branches opened prior to 1967 but not included in count as of December 31, 1966. BRANCHES +1,105 B ra n ch e s opened for b u s in e s s ............................... Facilities d e s ig n a te d by T re a s u ry ....................... A bsorbed b a n ks co n ve rte d to b ra n c h e s ........... B ranches re p la c in g head o ffic e s re lo c a te d .. . . New b ra n c h e s ............................................................ B ranches a n d fa c ilitie s a d d e d to c o u n t3........... AND 185 18 9 3 OF BANKS 191 18 9 3 -2 4 -4 NUMBER Changes not involving num ber in any cla ss . . . . Change in t i t l e ........................................................... Change in lo c a tio n ................................................... Change in title and lo c a tio n .................................. Change in nam e o f lo c a tio n .................................. Change in c orpora te powers: G ranted tru s t p o w e rs .......................................... +6 +11 -5 In o p eratio n S tate Dec. 30, 1967 Banks Net change du ring 1967 B eginn ing operatio n in 1967 Dec. 31, 1966 B ranches B anks B ranches Banks Bra nches Banks C easing op eratio n in 1967 B ranches O ther New B anks O ther A b so rp tio n s New 158 Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES DURING 1967, BY STATE B ranches Other 17,087 -44 1,032 107 2 1,009 143 134 13,766 16,907 -45 1,024 105 2 1,001 142 133 119 O th e r A re a s ....................... 20 188 19 180 1 8 2 8 1 1 1 S tate 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 ............................ 266 12 17 248 178 211 54 265 130 2,692 267 12 18 246 193 186 55 282 119 2,537 1 25 — 1 -17 11 155 24 1 - C o lo ra d o ............................. C o n n e c tic u t....................... D elaw are............................. D is tric t o f C o lu m b ia ........ F lo rid a ................................. 256 67 19 14 450 7 357 74 96 21 252 67 20 14 447 9 336 71 94 19 - Georgia .............................. H a w a ii.................................. Id a h o .. ............. Illin o is ......... In d ia n a ................................ 426 11 26 1,067 417 227 123 141 18 542 426 11 25 1,061 419 211 120 140 5 507 Iowa ......... K ansas ....................... K e n tu c k y ............................ L o u is ia n a ............................ M a in e . ............... 674 601 346 226 44 260 58 268 305 194 674 601 348 220 44 250 53 243 286 183 M a ryland ......... M a s s a c h u s e tts ......... M ic h ig a n ............................. M in n e so ta .. . M is s is s ip p i. ............... 122 159 341 723 188 442 647 1,049 9 281 122 162 347 723 190 415 614 988 9 259 M is s o u r i............................ M o ntan a . . N ebraska ............... N evada ... New H a m p s h ire ................ 664 133 439 9 76 78 5 33 75 37 661 132 439 9 75 71 3 29 70 33 - NA 1 2 -15 4 3 - 2 21 3 2 2 4 1 16 3 1 13 35 8 1 5 NA 10 5 25 19 11 - 3 - 6 27 33 61 1 NA 3 NA 1 6 - 2 - 2 6 NA 22 3 1 7 2 4 5 4 1 5 1 7 1 6 1 1 1 1 17 1 15 21 3 2 2 1 1 1 1 1 1 1 17 3 2 12 34 1 2 6 2 9 6 25 19 11 1 3 1 3 1 1 1 2 3 2 1 120 1 23 2 18 2 1 1 2 ........ 1 2 4 1 2 1 3 6 1 6 9 3 2 2 1 1 1 26 36 63 2 3 7 21 .............. NA - 2 NA 6 12 156 19 4 2 1 1 9 1 6 5 3 1 2 1 2 CORPORATION 13,785 17,931 INSURANCE 18,119 13,721 DEPOSIT 13,741 FEDERAL T o ta l U n ite d S ta te s ........ 50 S tates and D.C.............. O h io .................... O k la h o m a ......... O re g o n .............. P e n n s y lv a n ia .. R hode Is la n d .. 531 422 50 522 14 1,069 46 285 1,421 149 537 420 52 546 S outh C a ro lin a . South D a k o ta .. Te nne ssee. T e x a s .................. U ta h ................... 125 166 299 1,149 55 328 87 404 59 46 250 95 194 599 69 67 656 452 V e rm o n t........ V irg in ia ........... W a s h in g to n .. W est V irg in ia . W isconsin W y o m in g ........ Other A reas Pacific Is la n d s ........... Panam a Canal Zone. Puerto R ico ................ Virgin Is la n d s ............ " i7 1 1 - 4 - NA 9 9 1,009 42 273 1,338 128 - 128 167 298 1,147 55 302 83 378 53 - 48 251 95 190 591 69 59 612 424 11 13 2 12 7 160 13 101 - 2 -2 4 3 - “ 3 1 1 2 111 NA - 2 - 1 " ' 4 173 8 NA 13 NA NA 1 2 12 6 2 6 2 154 11 1 45 8 76 69 3 4 6 2 2 60 4 12 83 21 2 2 1 26 4 26 6 1 1 8 44 28 NA - 2 NA NA NA 6 2 7 4 4 38 9 79 62 3 54 4 9 63 23 9 8 10 12 1 13 11 7 8 3 24 3 24 24 3 26 3 1 4 1 4 4 3 1 1 4 6 37 23 2 7 5 2 7 4 2 2 1 13 5 1 1 4 2 1 2 1 4 1 2 1 1 6 2 1 1 1 N.A.— No activity. 159 112 712 2,060 790 61 BRANCHES 232 64 336 137 167 AND 757 109 2,136 859 64 OF BANKS 228 64 327 128 169 NUMBER New J e rs e y ....... New M e x ic o ... New Y o rk ........... N orth C a ro lin a . N orth D a k o ta .. Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967 GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE S tate and ty p e o f ba nk or o ffic e Total In N on sured insured Total M u tu a l savings banks N oninsured M em bers F. R System N on N ot m e m B anks d e p o sit Total bers o f de tru s t F. R. p o sit 2 co m Sys panies 3 te m Total Na tiona l S tate 14,974 4.983 11,613 235 13,850 394 13,741 289 10,181 105 3,560 13,517 9,982 3,535 4,758 7,447 177 B ra n ch e s............................... 3.229 1,529 1.312 3,832 10,123 3,727 18,950 18,724 226 18,119 18,053 10,216 3.671 4,166 50 States and D .C.— all offices B a n k s ..................................... 32,983 32,394 31,652 31,393 14,940 4.983 11,470 14,222 10,401 13,840 280 13,721 9,981 3,528 4,757 1.312 7,440 102 10,171 3,550 13,509 3,821 10,121 3,719 589 382 B ra n c h e s............................... 18,761 18,554 207 17,931 17,884 10,183 O ther a re a s—all offices. . . B a n k s ...................................... 211 22 180 31 208 177 34 10 12 20 10 10 B ra n ch e s............................... 2 8 170 9 3 8 11 11 189 19 188 169 477 477 266 477 477 244 200 266 266 88 156 Unit banks .......................................... Banks operating branches ............ Unit banks .......................................... Banks operating branches ............ 1 7 3.229 1,528 1 854 458 854 458 3.671 5,899 1,548 5,898 1,542 157 205 166 17 1,004 330 98.3 333 170 97.6 99.3 98.7 831 671 160 98.8 99.7 80.7 1,331 501 1,001 330 170 98.4 75.2 97.6 99.4 98.8 160 98.9 99.8 80.7 100.0 100.0 231 272 230 271 141 192 331 140 191 97.6 97.4 97.7 97.5 98.5 99.4 98.5 99.5 4,030 39 830 670 143 30 3 3 85.7 85.5 2 2 47.6 20.0 42.1 11.1 89.9 89.9 100.0 100.0 7 1 6 136 11 8 3 19 75.3 1,334 503 1 1 1 1 1 1 72.7 70.0 66.2 61.0 70.6 66.1 60.9 70.5 100.0 100.0 CORPORATION 620 31,860 31,570 10,412 INSURANCE 32,574 14,244 Unit banks .......................................... Banks operating branches ............ 100.0 100.0 State A labam a—all o ffice s............. B a n k s ...................................... Unit banks .......................................... Banks operating branches ............ 266 199 67 B ra n ch e s............................... 211 A lask a—all o ffice s................. B a n k s ...................................... 14 Unit banks .......................................... Banks operating branches ............ 199 67 211 199 67 211 66 199 67 4 97.1 97.0 5 85.7 83.3 5 100.0 100.0 100.0 100.0 100.0 100.0 282 17 17 17 7 7 10 10 265 10 A rk a n sa s—all o ffice s............ B a n k s ..................................... Unit banks .......................................... Banks operating branches ............ http://fraser.stlouisfed.org/ B ra n ch e s............................... Federal Reserve Bank of St. Louis 378 248 180 68 130 265 54 282 282 17 194 4 1 3 70 12 100.0 6 6 100.0 100.0 50.0 100.0 100.0 100.0 265 190 58 100.0 100.0 138 201 67 36 31 162 99.5 99.2 99.5 99.2 71 39 378 248 375 245 68 130 68 130 68 130 180 66.7 46 375 245 177 100.0 100.0 51 54 10 265 100.0 64 282 B ra n ch e s............................... 100.0 100.0 B ra n ch e s................................ 7 100.0 100.0 A rizona— all o ffic e s............... B a n k s ...................................... 7 100.0 156 8 54 Unit banks .......................................... Banks operating branches ............ 131 211 10 12 51 37 177 133 29 98.9 100.0 100.0 98.9 10 0 .0 100.0 DEPOSIT 33,194 United States—all o f f ic e s ... B a n k s ..................................... Com All N on ba nks m ercial M utual In banks savings sured insured of banks de of posit d e posit FEDERAL Insured P ercentage insured 1 160 C om m ercial banks and no ndep osit tru s t com panies All b a nks 100.0 100.0 Californ ia— all o ffice s............ B a n k s ........................................ 2,870 178 2,859 172 B ra n ch e s................................. 2,692 2,687 Colorado— all o ffice s.............. B a n k s ........................................ 263 256 224 217 Unit banks ............................................... Banks operating branches ................. Unit banks ............................................... Banks operating branches ................. 250 6 39 39 39 2,870 178 509 12 333 80 11 6 100.0, 100.0 100.0 100.0 2,692 11 497 253 5 100.0 100.0 263 256 18 17 84 82 85.2 84.8 85.2 84.8 49 129 250 6 424 67 606 134 47 87 21 46 B ra n ch e s................................. 472 472 357 D elaw are— all o ffice s.............. B a n k s ........................................ 104 104 93 19 10 Unit banks ............................................... Banks operating branches ................. B ra n ch e s................................. Dist. of Colum bia—all offices B a n k s ........................................ 21 10 21 . 10 , 11 83 11 . 9 83 . 74 110 110 110 105 6 100.0 100.0 100.0 100.0 100.0 100.0 31 39 2 2 9 9 100.0 100.0 100.0 8 2 100.0 100.0 100.0 100.0 100.0 100.0 99.6 99.6 99.6 99.6 '' '2 468 447 471 450 B ra n ch e s................................... 20 21 20 21 20 21 Georgia—all o ffic e s.................. B a n k s ......................................... 653 426 635 408 B ra n ch e s................................... 227 227 111 H awaii—all o ffic e s..................... B a n k s ......................................... 134 129 7 134 Unit banks ................................................. Banks operating branches .................... B ra n ch e s................................... 3 8 123 '' • "7 122 1 5 6 247 239 2 2 2 1 1 1 8 390 335 285 50 18 18 18 100.0 100.0 55 100.0 100.0 100.0 100.0 99.5 100.0 99.5 100.0 100.0 100.0 97.2 95.8 97.2 95.8 94.7 100.0 100.0 5 4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 11 8 123 5 3 1 79 1 100.0 100.0 100.0 94.7 100.0 100.0 84 5 3 41 29 41 100.0 100.0 2 231 8 29 161 11 2 BRANCHES 11 2 471 450 339 87 100.0 100.0 11 2 Florida— all o ffice s.................. B a n k s....................................... 653 426 90.0 100.0 51 12 7 2 32 18 95.9 100.0 99.5 97.0 33 96 18 18 99.7 98.5 100.0 13 . 321 87 185 70 100.0 96 . 3S9 87 185 70 100.0 96 Unit banks ............................................... Banks operating branches ................. 1 1 115 B ra n c h e s................................. 430 2 2 100 0 100.0 115 35 3 427 97 28 84.4 100.0 100.0 69 1 13 430 84.4 2 99 14 Unit banks ............................................... Banks operating branches ................. 39 ’’ 6 14 . 1 . 1 15 39 39 100.0 100.0 10 18 14 Unit banks ............................................... Banks operating branches ................. 80 2 100.0 100.0 4 AND 50 87 16 1 1 18 62 OF BANKS 609 137 1 NUMBER Unit banks ............................................... Banks operating branches ................. 211 11 1 B ra n ch e s................................. Connecticut— all o ffice s........ B a n k s ........................................ 45 127 162 Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967— CONTINUED GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE C om m ercial banks and no ndep osit tru s t com panies All ba nks Total In N on sured insured Total Total N oninsured M em bers F. R, System Not Non m e m B anks de p o sit Total bers o f de tru s t F. R. p o sit co m Sys panies te m Na tiona l Idaho— all o ffice s........ B a n k s .......................... Unit banks ........................... Banks operating branches S tate 167 167 167 167 112 31 26 26 12 26 12 26 12 3 7 12 n U u U 9 6 4 3 C om All In N on banks m ercial M utual banks savings sured insured of banks de of p osit d e p o sit 24 10 100.0 5 5 100.0 100.0 100.0 100.0 100.0 100.0 99.8 100.0 141 141 141 103 24 14 100.0 Illin o is—all offices. . . B a n k s .......................... 1,085 1,080 1,085 1,080 435 101 544 99.8 1,067 1,050 17 1,062 1,067 1,062 1,045 17 422 98 542 99.8 12 95 3 18 18 18 , 18 13 3 2 963 959 959 955 411 146 421 417 237 180 417 413 123 79 398 211 542 542 Unit banks ........................... Banks operating branches B ra n ch e s.................... In dian a— all o f f ic e s .. . B a n k s .......................... Unit banks ........................... Banks operating branches B ra n c h e s.................... Iowa— all o ffic e s........... B a n k s .......................... Unit banks ........................... Banks operating branches B ra n ch e s.................... K a n sa s— all o f f ic e s ... B a n k s ...................... Unit banks ........................... Banks operating branches B ra n ch e s.................... Kentucky— all offices. B a n k s .......................... Unit banks ........................... Banks operating branches B ra n ch e s..................... 241 180 542 1,045 17 1,050 17 237 180 233 180 410 542 54 69 288 67 187 700 502 921 934 921 145 76 674 661 460 674 661 102 201 260 201 201 64 57 201 473 260 260 260 38 43 19 659 658 659 658 198 601 600 601 600 171 545 56 544 56 58 58 614 346 2 51 28 934 473 540 460 43 U 48 40 128 83 99.7 99.7 100.0 99.3 99.3 100.0 98.7 98.7 98.2 198 99.8 99.8 389 99.8 27 23 348 99.0 346 340 246 98.3 268 268 268 268, 118 41 123 366 23 177 69 43 97.5 412 203 222 98.2 100.0 608 228 118 100.0 97.5 100.0 100.0 353 149 58 118 98.7 100.0 614 228 118 100.0 98.8 100.0 100.0 146 25 340 99.8 100.0 544 56 .58 32 99.8 99.8 100.0 100.0 99.8 100.0 100.0 545 56 100.0 102 97.4 100.0 100.0 100.0 99.8 99.8 100.0 100.0 99.0 98.3 97.4 100.0 100.0 100.0 CORPORATION 141 INSURANCE B ra n c h e s.................... DEPOSIT Insured P ercentage insured 1 FEDERAL S tate and ty p e o f b a n k or o ffic e M u tu a l savings ba nks 531 226 530 225 B ra n c h e s .................................. 305 305 M a in e— a ll o ffic e s ..................... B a n k s ........................................ 287 76 279 71 8 5 B ra n c h e s .................................. 211 208 M a ry la n d — a ll o ffic e s ............... B a n k s ........................................ 611 128 603 127 Unit banks ................................................. Unit ba?iks ................................................. Banks operating branches .................... Banks operating branches .................... 120 106 33 43 55 73 119 106 29 42 55 72 1 1 531 226 530 225 195 47 43 10 292 168 305 305 148 33 124 238 44 IX f 100 21 61 6 71 14 6 3 49 32 47 30 3 194 191 79 55 57 3 17 17 8 564 556 1 122 121 261 48 63 7 232 66 1 4 1 B ra n c h e s .................................. 483 476 1 1 M a ssa c h u s e tts — a ll o f f ic e s . .. B a n k s ......................................... 1,171 335 835 162 336 173 37 125 91 82 11 33 55 67 119 106 41 9 32 55 66 15 32 6 15 17 31 1 9 2 4 1 6 103 65 1 13 37 29 166 7 178 49 6 4 673 163 647 644 373 142 129 1,386 339 4 1,390 341 1,386 339 590 98 486 111 310 130 1,049 1,047 2 1,049 M in n e s o ta — a ll o ffic e s ............. B a n k s ........................................ 733 724 729 720 4 4 732 723 728 719 ........ Unit banks ................................................. Banks operating branches .................... 9 469 188 87 101 715 5 9 281 M is s o u ri— a ll o ffic e s ................ B a n k s ........................................ 742 664 734 656 B ra n c h e s .................................. 78 78 M o n ta n a — a ll o ffic e s ................ B a n k s ........................................ B ra n c h e s .................................. 138 133 128 5 5 87 101 578 78 137 132 127 5 5 8 8 8 1 1 1 711+ 5 JL 469 188 87 101 52 59 68 62 499 496 4 4 6 147 36 7 18 6 29 1 5 97 79 518 479 78 78 21 18 39 137 132 51 48 44 42 5 5 3 40 2 2 328 168 189 29 160 98.7 98.6 99.2 100.0 88 80 1 1 1 1 440 39 98.4 48.5 99.3 97.5 80.6 99.7 99.8 99.8 99.7 28.9 60.7 42 42 42 3 3 5 100.0 99.8 99.8 99.5 99.4 99.5 99.4 100.0 100.0 994 1 99 4 100.0 100.0 100.0 100.0 100.0 100.0 99.3 99.3 99.2 99.2 99.1 100.0 100.0 100.0 100.0 10.1 4.5 2.2 7.0 15.3 100.0 100.0 100.0 99.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 90.9 100.0 100.0 100.0 100.0 100.0 95.9 93.8 99.5 100.0 100.0 1 1 92.1 99.2 99.7 100.0 100.0 5 5 98.5 71.4 100.0 5 81.8 97.0 98.6 99.5 1 1 79 67 119 98 45 3 98.5 100.0 734 656 127 5 98.6 100.0 742 664 61 18 37 8 2 6 97.5 93.2 87.9 97.7 3 158 77 21 41 99.2 100.0 93.4 98.6 41 90 86 97.2 99.2 100.0 365 176 1 4 2 2 304 146 12 128 5 1 28 28 111 138 133 1 1 201 195 281 578 78 1 2 493 3 1 2 180 28 2 1 3 1 375 281 586 78 3 1 492 193 2 100.0 100.0 100.0 100.0 100.0 163 Unit banks ................................................. Banks operating branches .................... 586 78 469 188 87 101 281 718 5 9 469 188 B ra n c h e s .................................. Unit banks ................................................. Banks operating branches .................... 4 30 68 100.0 BRANCHES B ra n c h e s . . . . M is s is s ip p i— a ll o ffic e s ............ B a n k s ........................................ 719 5 151 190 16 99.8 99.6 AND B ra n c h e s .................................. 150 189 W7 Unit banks ................................................. Banks operating branches .................... 6 56 836 1 1 6 158 16 1,390 341 150 189 1 462 89 M ic h ig a n — a ll o ffic e s ............... B a n k s ........................................ 151 190 47 6 213 14 35 20 10 47 6 79? 154 21 68 22 10 8 1 435 35 119 99.6 99.2 2 1 806 159 38 121 99.8 100.0 442 Banks operating branches .................... B ranches * ................................ Unit banks ................................................. Banks operating branches.................... 1 1 1 OF BANKS 128 207 120 106 NUMBER L o u is ia n a — a ll o ffic e s .............. B a n k s ........................................ Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967— CONTINUED GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE Com m ercial ba nks and nondeposit tru s t com panies All b a nks N on In sured insured Total T otal Insured N oninsu red M em bers F. R. System N on N ot m e m B anks d e p o sit Total bers o f d e tru s t F. R. po sit 2 c o m Sys panies 3 te m Total Na tiona l ................. ...................... Unit banks Banks operating branches .................... Nevada—‘all offices B anks ......... ...................... Unit banks Banks operating branches ................. 466 433 33 33 84 9 84 9 407 32 2 7 401 32 6 6 6 2 472 439 466 433 33 33 84 9 84 9 407 32 2 7 7 401 32 2 7 787 787 757 62 166 59 166 J 57 .... 173 64 173 64 173 64 ............... 109 109 New York—all offices .. B a n k s ... ............... 2,862 452 2,829 428 B ranches New Mexico— all offices B a n k s .. Unit banks ................................................. Banks operating branches B ran ches. Unit banks ................. Banks operating branches. . . B ranches 4................................ 72 17 7 22 42 182 270 2,410 69 177 3 3 22 166 262 2,401 16 8 9 100.0 100.0 3 100.0 1 2 3 3 42 32 42 32 98.1 97.2 97.3 96.1 24 10 8 100.0 100.0 100.0 100.0 10 51 21 51 21 100.0 100.0 100.0 100.0 100.0 100.0 30 30 100.0 100.0 100.0 95.8 93.6 30 1 985 228 982 225 645 144 206 40 501 166 32 H 27 173 64 94 34 14 7 65 23 100.0 100.0 100.0 100.0 100.0 100.0 22 14 8 3 4 20 60 7 42 2,463 327 2,430 303 1,267 184 1,027 80 136 39 947 97 183 2,136 101 2,127 _ 1,083 26 54 10 11 10 11 19 20 100.0 100.0 100.0 100.0 100.0 5 18 42 83 3 90 109 128 175 3 3 131 41 109 144 8 6 27 19 12 6 5 4 7 1 8 1 100.0 100.0 24 37 37 107 3 100.0 100.0 37 1 15 5 100.0 100.0 99.8 100.0 29 23 42 33 24 100.0 100.0 99.8 5 44 29 47 29 22 42 100.0 100.0 1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 399 125 399 125 99.1 95.7 98.9 94.1 100.0 100.0 274 274 99.7 99.6 100.0 38 87 38 87 93.3 97.4 91.4 96.2 100.0 100.0 CORPORATION 1,033 246 Unit banks ................................................. Banks operating branches .................... 12 3 26 20 1,036 249 3 31 3 1 2 2 1 New J e r s e y —all offices . .. B anks ........... 37 3 41 3 82 52 47 68 100.0 110 73 47 B ran ches. 71 37 100.0 113 76 ............... Unit banks . ...................... Banks operating branches .................... 14 9 152 105 3 3 1 28 155 108 99.8 99.8 18 281 13 38 New H am p sh ire—all o f f ic e s .. B anks ... 99.8 99.8 308 294 11 1 75 75 5 5 13 12 109 18 75 75 B ranches 1 1 145 127 INSURANCE Branches 472 439 C om All N on banks m ercial M u tual In banks savings sured insured of banks de of po sit d e p o sit DEPOSIT B a n k s ... S tate P ercentage insured 1 FEDERAL S tate and ty p e o f ba nk or o ffic e M u tu a l savings banks North C aro lin a— all offices. B a n k s ..................................... 987 128 981 127 987 128 981 127 326 25 7 118 4 537 98 6 1 B ra n c h e s .............................. 18 1 3 1 100.0 98.7 859 854 859 J354s 301 114 439 5 99.4 99.4 North Dakota— all offices. B a n k s ................................. 233 169 122 228 166 233 169 228 166. 53 42 6 4 169 120 97.9 98.2 64 62 64 46 62 2 1 97.9 98.2 B ra n c h e s ........................... 85 35 5 3 11 2 49 2 96.9 96.9 1,60 1 532 1,600 531 1,600 531 1,599 530 831 223 438 125 330 182 1 1 99 .9 99.8 99.9 99.8 Unit banks ............................................ Banks operating branches ............... Unit banks ..................................... Banks operating branches . . . . Ohio— all o ffic e s........... B a n k s ........................... 47 279 253 51 76 278 253 51 77 122 47 278 253 51 76 120 277 253 32 10 89 134 3 1 74 51 43 55 114 68 1,069 1.069 1,069 608 313 148 468 422 467 421 468 422 467 421 256 220 27 24 184 177 B ra n c h e s ..................... 46 46 46 46 36 3 170 7 1 14 2 85 33 13 20 1,069 98.4 97.9 1 1 1 1 1 1 1 99.6 100.0 99 .4 99.2 100.0 98.7 98.4 97.9 99.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 9 9 .4 96.0 100.0 100.0 100.0 «W- - Unit banks .............................. Banks operating branches. Oregon— all o f f ic e s .. . . B a n k s ........................... Unit banks .............................. Banks operating branches. B ranches * .................. 334 48 378 44 377 44 186 34 335 50 "332 47 233 12 7 21 3 5 1 1 286 286 285 285 221 12 52 2,020 529 2,008 519 1,943 522 1,931 512 1,226 336 261 36 444 140 24 27 21 27 277 242 276 236 182 154 18 18 76 1 2 2 2 9 7 64 6 1 1 1 1 3 3 3 100.0 100.0 2 1 2 1 100.0 100.0 99.4 95.9 91.3 100.0 100.0 100.0 100.0 100.0 1 1 91.3 100.0 1 1 100.0 100.0 77 7 77 7 99 .6 98.7 99.5 98.7 1 6 1 6 97.9 99.6 97.9 99.6 100.0 100.0 100.0 100.0 B ranches 4........................ 1,491 1,489 1,421 1,419 890 225 304 2 70 70 99.9 99.9 100.0 Rhode Isla n d — all offices. B a n k s ................................. 218 209 19 163 14 154 61 4 29 1 64 7 9 2 55 7 55 7 95 .9 90.5 94.5 85.7 100.0 19 14 4 1 2 1 7 7 90.5 85.7 48 48 3 3 Unit banks ....................................... Banks aperating branches.......... 21 12 12 197 190 149 142 57 28 South C aro lin a—all offices. B a n k s .................................... 453 125 450 122 453 125 450 122 239 26 11 6 200 90 68 328 68 B ra n c h e s .............................. 68 328 328 68 328 213 5 110 South Dakota— all offices. B a n k s ................................. 253 166 252 165 253 166 252 165 83 35 21 3 141 106 B ra n c h e s ........................... 25 10 28 24 87 87 87 87 48 4 35 Unit banks ............................................ Banks operating branches ............... Unit banks ..................................... Banks operating branches . . . . 57 127 39 54 126 39 57 127 39 54 126 39 5 21 3 3 46 44 80 26 3 1 1 1 96.4 95.3 99 .3 97.6 99.3 97.6 94.7 100.0 94.7 100.0 100.0 100.0 99 .6 99.4 99.6 99.4 99.2 100.0 99.2 100.0 100.0 100.0 100.0 100.0 100.0 165 B ra n c h e s ........................... 7 57 BRANCHES Unit banks ..................................... Banks operating branches . . . . 337 51 377 44 AND P en nsylvan ia— all offices. B a n k s ................................. 378 44 1 1 OF BANKS B ra n c h e s ..................... Oklahom a— all offices. B a n k s ........................... 9 9 .4 99.2 NUMBER Unit banks .............................. Banks operating branches. 51 77 166 Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967— CONTINUED GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE C om m ercial ba nks and nondeposit tru s t com panies All b a n ks In N on sured insured Total M em bers F. R. System Total T e n n e sse e — all offices. B a n k s .............................. Unit banks ................................ Banks operating b/anches.. 703 299 174 125 698 295 171 124 703 299 174 125 698 295 171 124 S tate N on Banks d e p o sit Total o f d e tru s t p o sit 2 co m panies 3 C om All Non banks m ercial M u tual In banks savings of sured insured banks de of po sit d e p o sit 337 208 99.4 57 146 62 99.4 99.0 99.8 322 77 20 99.0 98.8 99.2 404 403 404 403 245 129 Texas— all o ffic e s........... B a n k s .............................. 1,208 1,149 1,198 1,139 1,208 1,149 1,198 1,139 564 542 561 529 99.2 99.1 99.2 100.0 100.0 59 59 59 Utah— all o ffic e s............. B a n k s .............................. 167 55 167 55 167 55 167 55 112 21 21 B ra n c h e s........................ 21 112 Verm ont— all o f f ic e s ... B a n k s .............................. 121 120 52 51 Unit banks ................................ Banks operating branches.. Unit banks ................................ Banks operating branches.. B ra n ch e s....................... V irginia— all offices. . .. B a n k s .............................. Unit banks ................................ Banks operating branches.. 1,093 56 34 21 69 906 250 105 145 1,083 56 34 25 26 69 906 250 105 145 1,093 56 34 112 113 46 67 906 250 105 145 34 112 112 45 21 24 M 906 250 105 145 522 71 498 31 20 22 12 4 32 100.0 59 33 100.0 100.0 59 26 65 27 47 18 8 100.0 10 29 38 522 113 37 76 159 48 111 225 89 43 46 33 25 375 33 44 100.0 100.0 100.0 100.0 100.0 4 5 452 100.0 100.0 100.0 100.0 15 452 100.0 100.0 100.0 42 9 476 100.0 100.0 100.0 402 27 12 476 100.0 100.0 98.9 409 546 94 Branches A ..................... 100.0 99.8 656 547 95 49 45 100.0 100.0 100.0 99.8 99.0 656 575 99 50 45 100.0 100.0 100.0 656 576 50 49 100.0 136 656 51 49 100.0 100.0 100.0 100.0 100.0 102 B ra n ch e s....................... Unit banks ................................ Banks operating branches . . 100.0 100.0 100.0 W ashington— all offices B a n k s .............................. 100 100.0 100.0 100.0 100.0 13 14 99.1 100.0 21 12 8 99.1 58 98.0 100.0 98.0 100.0 100.0 100.0 CORPORATION B ra n ch e s....................... 1,083 56 . 59 Unit banks ................................ Banks operating branches. . INSURANCE B ra n c h e s........................ 99.8 99.1 DEPOSIT Na tiona l Not m em bers F. R. Sys te m FEDERAL Total Percentage insured 1 N oninsured Insured S tate and ty p e o f bank or o ffic e M u tu a l savings banks 194 194 194 194 194 194 194 194 80 80 34 34 80 W isconsin— all offices. B a n k s ........................... 773 602 770 599 770 599 767 596 140 116 66 52 561 428 B ra n c h e s ..................... 106 493 106 171 171 171 171 24 70 69 70 69 68 70 69 70 69 41 40 Unit banks ..................................... Banks operating branches . . . . 194 194 194 194 80 100.0 100.0 100.0 100.0 99.9 99.8 99.9 99.8 100.0 34 100.0 B ra n c h e s ........................... 1 1 B ra n c h e s ..................... 68 1 1 13 13 13 2 2 3 3 133 100.0 100.0 16 16 100.0 100.0 100.0 100.0 100.0 100.0 9 1 35.7 35.7 8 38.5 38.5 16 3 100.0 100.0 100.0 100.0 O ther A rea s P acific Isla n d s— all offices 5. B a n k s ....................................... Unit banks 6............................................ Banks operating branches ................. B ranches 7.............................. 1 1 13 14 1 1 1 100.0 167 14 100.0 100.0 99.8 100.0 1 3 3 3 99.8 100.0 12 39 1 1 1 1 BRANCHES I— all o ffices. U nit banks .............................. Banks operating branches. 106 104 AND W 493 106 OF BANKS Unit banks .............................. Banks operating branches. NUMBER West Virginia— all offices. B a n k s ................................. Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967— CONTINUED C o m m e r c 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 A ll b a n k s In s u re d T o ta l In s u re d Non in s u r e d M e m b e r s F. R . S y s te m T o ta l T o ta l Na tio n a l B a n k s ................................................. Unit banks ................................................. Banks operating branches .................... B r a n c h e s 8...................................... B a n k s ................................................. Unit banks ................................................. Banks operating branches .................... B r a n c h e s 9....................................... Virgin Isla n d s—all offices. . . . 2 173 13 159 8 6 160 151 22 8 16 2 14 14 4 9 6 2 2 2 2 2 172 12 16 3 3 9 158 7 9 160 151 16 6 6 20 7 14 1 14 1 13 13 6 1 Non in s u re d A ll banks of de p o s it Com m e r c ia l M u tu a l b a n k s s a v in g s of banks d e p o s it 2 1 6 1 142 7 14 5 135 9 1 6 .......... 1 13 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, operating one branch. 4 Massachusetts: 1 branch operated by a noninsured bank in New York. New York: 7 branches operated by two insured banks in Puerto Rico (not members of F. R. System). Oregon: 1 branch operated by a national bank in California. Pennsylvania : 2 branches— 1 operated by a noninsured bank in New York and 1 operated by a national bank in New Jersey. Washington: 2 branches operated by 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 Pacific Islands: 13 branches. Caroline Islands on Truk Atoll (Moen Is la n d ); 1 noninsured branch— operated by a national bank in California. In s u re d 2 14 5 6 Non B a n k s d e p o s it T o t a l of de tru s t p o s it 2 c o m p a n ie s 3 1 1 2 3 5 5 5 1 1 1 1 2 1 1 1 1 1 1 2 1 1 1 91.9 61.5 91.9 58.3 94.4 94.4 76.2 28.6 73.7 16.7 50.0 66.7 33.3 66.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 j 100.0 100.0 100.0 Mariana Islands: 5 branches — (4 insured on Guam and 1 noninsured on Saipan)— oper ated by a national bank in California. Guam: 1 insured branch— operated by an insured bank in Hawaii (not member of F. R. System). Caroline Islands: 2 noninsured branches (1 each on Palau Islands (Koror) and Ponape Island (Kolonia)— operated by a bank in Hawaii (not member of.F. R. System). Marshall Islands: Kwajalein Atoll— 2 noninsured branches operated by a bank in Hawaii (not member of F. R. System). Midway Islands on Sand Island: 1 noninsured branch operated by a bank in Hawaii (not member of F. R. System). Wake Island: 1 noninsured branch operated by an insured bank in Hawaii (not member of F. R. System). 8 Panama Canal Zone: 2 noninsured branches operated by 2 national banks in New York. 9 Puerto Rico: 16 insured branches operated by 2 natmnal banks in New York. 10 Virgin Islands: 10 insured branches operated by 2 national banks in New York. Back figures: See the Annual Report for 1966, pp. 128-139 and earlier reports. CORPORATION B a n k s ................................................. Unit banks ................................................. Banks operating branches .................... B r a n c h e s 10..................................... 2 Not m em b e rs F. R . S ys te m INSURANCE Puerto Rico— all o ffic e s........... 2 N o n in s u r e d DEPOSIT Panam a Can al Z one— all o ffice s................................... S ta te P e r c e n ta g e in s u r e d 1 FEDERAL S ta te a n d ty p e o f b a n k o r o f f ic e M u t u a l s a v in g s b a n k s 168 GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE Table 104. NUMBER AND DEPOSITS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS, (STATES AND OTHER AREAS), DECEMBER 30, 1967 BANKS GROUPED BY CLASS AND BY DEPOSIT SIZE I n s u r e d c o m m e r c ia l b a n k s A ll banks T o ta l M e m b e r s F .R . S y s t e m N a tio n a l 354 1,462 3,888 3,418 2,663 871 404 355 102 32 194 1,000 1,280 1,254 472 230 226 70 12 66 320 331 292 112 66 83 30 310 1,202 2,568 1,807 1,117 287 108 46 2 121 29 19 18 12 13 5 7 7,447 224 14,244 13,517 4,758 298,016 2,269,067 13,270,666 24,822,667 43,625,085 34,428,988 33,983,105 95,452,494 210,551,031 261 603 2,220,737 13,153,095 24 423 680 41,316,705 29,847,719 27,601,511 73,855,396 182,115,477 25 603 301,961 3,528,022 9 319,988 19,696,675 16,290,831 15,721,593 46,713,301 120,485,419 9 229 100,628 1,113,340 2,381,418 4,648,017 3,814,873 4,593,839 17,673,666 61,302,148 226 771 1,818,148 8,511,733 12,722,274 16,972,013 9,742,015 7,286,079 9,468,429 1,327,910 36 413 43,948 60,864 119,698 208,613 541,581 310,605 1,086,806 T o ta l.............................................................................................. 453,701,119 395,795,923 232,083,393 95,637,158 68,075,372 2,408,528 2 12 18 80 58 56 79 28 1 3 19 45 56 32 13 1 333 170 3,128 45,448 141,013 1,355,321 2,076,905 3,875,775 18,528,056 26,887,316 1,254 11,259 138,276 744,446 1,962,783 2,195,214 1,982,236 548,238 52,912,962 7,583,706 169 1,312 (In Thousands) N on in s u r e d In s u r e d BRANCHES T o ta l............................................................................................... A m oun t o f Deposits 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 M ore...................................................................... M u t u a l s a v in g s b a n k s AND 475 1,494 3,922 3,473 2,800 998 497 454 131 N on in s u r e d banks a nd tru s t c o m p a n ie s OF BANKS N um ber o f Banks 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...................................................................... S ta te Not m e m b e rs F .R . S y s t e m NUMBER D e p o s it s iz e ASSETS AND LIABILITIES OF BANKS Table 105. Table 106. Table 107. Table 108. Table 109. Table 110. Table 111. Assets and liabilities of all banks in the United States (States and other areas), June 30, 1967 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 30, 1967 Banks grouped according to insurance status and type of bank Assets and liabilities of insured commercial and insured mutual savings banks in the United States (States and other areas), December call dates, 1963 through 1967 Assets and liabilities of insured commercial banks in the United States (States and other areas), December 30, 1967 Banks grouped by class of bank Assets and liabilities of insured commercial banks operating throughout 1967 in the United States (States and other areas), December 30, 1967 Banks grouped according to amount of deposits Percentages of assets and liabilities of insured commercial banks operating throughout 1967 in the United States (States and other areas), December 30, 1967 Banks grouped according to amount of deposits Distribution of insured commercial banks in the United States (States and other areas), December 30, 1967 Banks grouped according to amount of deposits and by ratios of selected items to assets or deposits AND LIABILITIES Sources of data OF BANKS National banks and State banks in the District of Columbia not members of the Federal Reserve System: Office of the Comptroller of the Currency. 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. 171 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 de tailed 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, 1967, and December 30, 1967, are shown in the Corporation’s semiannual publication, “ Assets, Liabilities, and Capital Accounts, Commercial and Mutual Savings Banks,” Report of Call No. 80, and Report of Call No. 82. Data from Call No. 79, April 25, 1967, and Call No. 81, October 4, 1967, 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 commercial banks upon either a cash or an accrual basis, depend ing upon the bank’s method of bookkeeping. Assets reported repre sent aggregate book value, on the date of call, less valuation and premium 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 tru st 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 tru st 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 fo r 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 105. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1967 172 B A N K S G R O U P E D A C C O R D IN G T O IN S U R A N C E S T A T U S A N D T Y P E O F B A N K ( A m o u n t s in t h o u s a n d s o f d o lla r s ) C o m m e r c 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 A ll b a n k s M u t u a l s a v in g s b a n k s N o n in s u r e d A s s e t, lia b ilit y , o r c a p it a l a c c o u n t it e m In s u re d Non in s u r e d 300,152 64,153,299 55,810,484 8,342,815 703,045 65,244,375 64,677,419 501,753 65,203 1,152,435 1,016,346 136,089 4,98b,036 18,999,192 14,028,234 934,952 245,024 26,500,327 46,333 4,879,041 18,999,192 13,98b,090 b29,715 280,547 26,4b9,790 4,860,227 18,999,192 13,573,566 576,354 245,024 26,423,056 18,283 531 153,328 125,809 27,519 384,236 17,242 35,515 46,477 28,288 36,119 534,607 374,350 454,668 358,598 79,939 15,752 257 90,150 77,271 12,879 3,235,413 111,214,261 110,220,353 824,842 1,680,562 327,098 255,423 972,330 343,525 256,871 138,307 86,139 58,b90,9o3 47,236,439 8,827,428 8,339,138 4,558,892 57,010,401 46,909,341 8,572,005 7,366,808 4,539,570 281,094,988 273,480,582 104,b24,393 3,325,260 22,343,789 14,262,407 42,406,690 98,715,605 3,297,671 21,293,212 13,209,280 39,499,247 21,416,195 492,463 69,113 35,523 59,613 54,387,116 46,993,979 7,5o4,130 2,2b9,036 53,976,042 46,679,334 7,415,557 2,149,420 7,595,084 226,515,813 224,791,795 1,687,708 19,322 10,209 4,403,172 4,413,495 7,614,406 230,929,308 229,194,967 1,697,917 5,908,788 55,497,309 55,730,974 223,415 27,589 1,050,577 1,053,127 2,907,443 870,052 3,274,391 7,396,481 2,494,609 25,595,709 16,969,784 3,251,309 7,324,088 2,463,566 25,524,909 16,933,437 22,378 71,812 30,967 64,117 8 169,066 11,879,707 67,549 57,774 10,266 33,477 3,034,359 230,007 1,150,448 5,217,388 l,2b9,488 12,453 10b,850 852,714 36,310 50,020,283 44,149,217 5,871,066 114 136,398 8,999 10,250 48,893,419 145,397 43,218,296 5,675,123 23,685 27,923 23,685 27,822 76,081 7,442 1,822 252,435 853,775 29,098 75,904 4,399 1,822 242,964 669,370 21,353 9,471 184,405 7,745 1,100,874 1,006,719 94,155 499,884 600,990 439,008 567,711 60,876 33,279 36,424 50,165,680 44,285,615 5,880,065 704 4,507 50,869 581 14,947,308 13,969,124 978,184 76 11,767,798 10,745,714 1,022,084 6,683 16,810,981 13,974,338 2,836,643 2,206 5,316,463 4,482,758 833,705 22,286,24 7 1,808,486 12,305,242 3,949,900 4,674,789 3,338,174 9,346,155 85,295,727 50,624,776 5,127,346 1,724,905 12,185,711 3,87b,314 4,459,3b9 3,279,757 9,325,325 84,bl3,519 50,241,417 5,058,660 83,581 119,531 73,586 215,420 58,417 20,830 682,208 383,359 68,686 1,784,801 12,277,319 3,949,900 4,598,708 3,330,732 9,344,333 85,043,292 49,771,001 5,098,248 1,701,220 12,157,889 3,876,314 4,383,465 3,275,358 9,323,503 84,370,555 49,572,047 5,037,307 83,314 118,814 72,950 208,151 49,773 20,674 665,604 196,149 59,073 267 616 636 7,092 5,601 156 7,133 2,805 13,562,954 13,233,683 329,271 12,462,080 12,226,964 205,543 6,479,268 7,083,686 6,378,774 6,854,909 100,494 228,777 5,979,384 6,482,696 5,939,766 6,287,198 24,629 180,914 29,573 14,989 14,584 34,141 4,303,847 242,460 1,263,298 6,070,102 9,638,202 2,241,505 1,868 101 177 3,043 CORPORATION 65,693,765 276,536,096 268,941,012 T o ta l 5,032,3o9 18,999,192 14,520,b97 1,004,065 280,547 26,559,940 Loans and d is c o u n ts , ne t— to t a l.......................................... V aluation re s e rv e s ..................................................................... Loans and d is c o u n ts , g ro ss— t o t a l ...................................... Real estate loans— to t a l....................................................... O th e r assets— t o t a l................................................................... B ank prem ises, fu rn itu re and fix tu re s , and real estate All o th e r m iscellaneo us a s s e ts ............................................ Non B a n k s d e p o s it of tru s t d e p o s it 1 c o m p a n ie s 66,396,810 123,093,968 119,858,555 Loans to com m ercial and foreign b a n k s ........................ Loans to o th e r finan cia l in s titu tio n s ................................ Federal fu n d s sold (lo a n e d )3 .............................................. Loans to brokers and de alers in s e c u ritie s .................... O ther loans fo r carrying s e c u ritie s ................................... Loans to fa rm e rs (e x c lu d in g real e s ta te )....................... C om m ercial and in d u s tria l lo a n s ...................................... O ther loans to in d iv id u a ls ................................................... All o th e r loans (in c lu d in g o v e rd ra fts ).............................. In s u re d 479,589,828 467,727,015 11,862,813 415,436,529 411,916,531 3,219,846 S e c u ritie s — t o t a l........................................................................ U . S. G ov’t, o b lig a tio n s (in c lu d in g g u a ra n te e d )......... O bligation s o f S tates and s u b d iv is io n s ........................... S ecurities o f Federal agencies an d c o rp o ra tio n s ....... O ther s e c u ritie s ...................................................................... Secured by farm lan d ................................................................................................. Secured by residential properties: Insured by F H A .................................................................................................... Guaranteed by V A ................................................................................................. Not insured or guaranteed by FHA or V A ................................................ Secured by other properties ...................................................................................... T o ta l INSURANCE Cash, b a la nces w ith o th e r b a n ks, and cash c o lle c tio n ite m s — t o t a l......................................................................... C urrency and c o in ................................................................. Reserve w ith F. R. Banks (m e m b e r b a n ks). . ............... Dem and balances w ith ba nks in U . S .............................. O ther balances w ith banks in U . S................................... Balances w ith banks in foreign c o u n trie s ...................... Cash ite m s in process o f c o lle c tio n ................................. N on in s u r e d DEPOSIT T o ta l a s s e ts ..................................................................................... In s u r e d FEDERAL T o ta l Total liabilities and capital accounts. Business and personal deposits— to ta l............................ I n d iv id u a ls , p a r t n e r s h ip s , a n d c o r p o r a t io n s — d e m a n d Deposits of savings and loan associations ........................................................ Other deposits of individuals, partnerships, and corporations ................. I n d iv id u a ls , p a r t n e r s h ip s , a n d c o r p o r a t io n s — t i m e . . . Savings deposits ........................................................................................................... Deposits accumulated for payment of personal loans .................................. Deposits of savings and loan associations ........................................................ Other deposits of individuals, partnerships, and corporations ................. C e r t if ie d a n d o f f i c e r s ’ c h e c k s , le t t e r s o f c r e d it , t r a v e le r s ’ c h e c k s , e t c ................................................................... G overnm ent deposits— to ta l..................... S ta te s G o v e rn m e n t— d e m a n d . S t a t e s G o v e r n m e n t — t i m e .......... a n d s u b d iv is io n s — d e m a n d a n d s u b d iv is i o n s — t i m e ................ Domestic interbank deposits— to ta l................... U. U. th e th e S .— S .— U. U. dem and. . . . t i m e ................ S .— d e m a n d . S .— t i m e ......... Foreign governm ent and bank deposits— to ta l.............. e n ts , c e n tra l b a n k s , e tc .— d e m a n d . e n t s , c e n t r a l b a n k s , e t c . — t i m e ......... c o u n t r ie s — d e m a n d ................................... c o u n t r i e s — t i m e ............................................ Total d ep o sits. Dem and .................. T im e ........................ F e d e ra l f u n d s p u r c h a s e d ( b o r r o w e d ) 4 O th e r lia b ilit ie s f o r b o r r o w e d m o n e y . . A ll o t h e r m is c e lla n e o u s l ia b i lit ie s . . . . Total liabilities (excluding capital accounts). Capital accounts— to ta l................. C a p ita l n o t e s a n d d e b e n t u r e s . . P r e f e r r e d s t o c k ................................... C o m m o n s t o c k .................................... S u r p l u s ..................................................... U n d iv id e d p r o f it s a n d r e s e r v e s . N u m b e r o f b a n k s 5...................................... 137,522,507 2,255,300 2,253,264 136,150,m 135,269,243 212,713,146 204,705,522 149,435,764 141,808,959 1,276,296 1,272,411 822,227 822,065 61,178,859 60,802,087 883,780 137,942,098 137,094,184 2,036 2,255,300 2,253,264 881,744 135,686,798 134,840,920 8,007,624 154,973,753 154,311,036 7,626,805 91,769,473 91,461,550 1,276,052 3,885 1,272,374 822,227 162 822,065 376,772 61,106,001 60,755,047 769,326 2,036 767,290 620,839 282,736 3,678 162 334,263 78,588 464,189 428,323 35,866 78,588 428,323 464,189 35,866 41,878 57,739,393 50,394,486 7,344,907 25,187 57,666,291 50,347,409 7,318,882 37 207 244 16,691 47,040 72,858 25,818 7,565,225 7,455,023 110,202 7,551,563 7,441,361 110,179 23 13,662 13,662 36,558,843 36,344,186 214,657 36,515,231 36,302,339 212,076 5,183,633 290,459 15,319,338 15,765,413 816 41,847 5,156,186 286,847 15,204,948 15,696,205 43,612 1,765 27.447 3,612 114,390 69,208 5,176,614 290,044 15,316,304 15,732,269 5,149,778 286,546 15,201,915 15,664,100 26,020 3,498 114,389 68,169 816 7,019 415 3,034 33,144 6,408 301 3,033 32,105 611 114 17,604,562 17,399,383 205,179 17,603,332 17,398,153 204,752 427 15,439,249 709,272 929,361 526,680 15,405,734 708,747 807,393 477,509 1,230 1,230 33,515 525 121,968 15,405,574 707,677 807,393 477,509 33,088 525 121,968 49,171 427 160 1,070 160 1,070 49,171 15,439,089 708,202 929,361 526,680 7,899,561 7,662,665 236,896 7,899,561 7,662,665 236,675 823,278 5,114,136 1,692,231 269,916 770,569 5,049,945 1,594,003 248,148 52,709 64,191 98,228 21,768 823,278 5,114,136 1,692,231 269,916 770,569 5,049,945 1,594,003 248,148 52,489 64,191 98,227 21,768 221 420,747,624 411,089,286 185,358,602 183,916,363 235,389,022 227,172,923 20,491,027 19,515,473 4,417,635 831,983 15,241,409 4,416,135 687,279 14,412,059 9,658,338 362.485.538 360,209,738 2,153,847 1,442,239 184.870.538 183,464,777 1,325,686 8,216,099 177,615,000 176,744,961 828,161 975,554 1,500 144,704 829,350 19,532,462 4,417,635 790,368 14,324,459 1 1,039 220 121,953 58,262,086 50,879,548 7,382,538 80,075 488,064 451,586 36,478 41,878 57,774,022 50,427,962 7,346,060 18,775,668 733,672 23,122 958,565 739,805 218,760 4,416,135 645,673 13,713,860 1,500 142,448 589,724 2,247 20,875 41,615 916,950 41,606 698,199 9 218,751 441,238,651 430,604,759 10,633,892 382,018,000 378,985,406 2,887,519 145,075 59,220,651 51,619,353 7,601,298 38,351,177 37,122,256 1,228,921 33,418,529 32,931,125 332,327 1,991,174 65,197 9,259,094 17,973,416 9,062,296 155,077 1,943,352 61,723 9,123,981 17,381,027 8,612,173 4,932,648 1,988,062 65,197 9,259,094 14,548,615 7,557,561 1,940,240 61,723 9,123,981 14,371,528 7,433,653 47,672 3,324 84,534 109,711 87,086 150 150 50,579 67,376 36,822 3,112 4,191,131 3,112 741,517 47,822 3,474 135,113 592,389 450,123 3,424,801 1,504,735 3,009,499 1,178,520 415,302 326,215 14,267 13,867 400 13,762 13,533 182 47 505 334 171 173 1 Includes asset and lia b ility figures for 13 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 uninvested trust funds with the latter classified as demand deposits of individuals, partnerships and corporations. 3 Also includes securities purchased under agreements to resell. 4 Also includes securities sold under agreements to repurchase. . 5 Includes 3 noninsured banks of deposit for which asset and liability data are not available. Back figures: See the A nnual R eport for 1966, pp. 142-143, and e arlier reports. OF BANKS O ther liabilities— to ta l............................... 138,406,287 LIABILITIES F o r e ig n g o v e r n m F o r e ig n g o v e r n m B a n k s in f o r e ig n B a n k s in f o r e ig n 120,489 58,217,244 50,836,471 7,380,773 9,001,606 300,467,414 298,846,581 1,500,344 AND C o m m e r c ia l b a n k s in t h e C o m m e r c ia l b a n k s in t h e M u t u a l s a v in g s b a n k s in M u t u a l s a v in g s b a n k s in 300,152 64,153,299 55,810,484 8,342,815 358,684,658 349,683,052 ASSETS U n it e d U n it e d S ta te s S ta te s 479,589,828 467,727,015 11,862,813 415,436,529 411,916,531 3,219,846 Table 106. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967 174 BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK (A m o unts in tho usan ds o f dollars) C o m m e r c 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 A ll b a n k s M u t u a l s a v in g s b a n k s N o n in s u r e d A s s e t, lia b ilit y , o r c a p it a l a c c o u n t it e m Cash, balances with other banks, and cash collection items— to ta l........................................................................... C u r r e n c y a n d c o i n ................................................................................. Securities— to ta l.......................................................................... U . S. G o v 't , o b li g a t i o n s ( i n c l u d i n g g u a r a n t e e d ) ............. O b lig a t io n s o f S t a t e s a n d s u b d i v i s i o n s .................................. S e c u r it ie s o f F e d e ra l a g e n c ie s a n d c o r p o r a t i o n s ........... O th e r s e c u r i t i e s ...................................................................................... 79,151,117 6,155,069 20,275,051 17,506,073 816,045 329,092 34,069,787 78,414,188 6,106,794 20,275,051 16,981,438 746,983 280,249 34,023,673 136,974,174 133,710,653 66,956,584 65,339,997 50,340,975 50,026,296 9,951,128 10,208,523 9,468,092 8,393,232 290,252,700 282,202,282 4,859,395 4,881,656 295,134,356 287,061,677 R e a l e s t a t e lo a n s — t o t a l .................................................................... 109,508,874 103,273 821 3,530,031 Secured by farm lan d ................................................................................................... 3,562,552 Other assets— to ta l .................................................................................. B a n k p r e m is e s , f u r n i t u r e a n d f ix t u r e s , a n d re a l e s t a t e . A ll o t h e r m is c e lla n e o u s a s s e t s .................................................... In s u re d Non in s u r e d 311,557 66,365,763 57,867,208 8,498,555 Non B a n k s d e p o s it tru s t of d e p o s it 1 c o m p a n ie s 2 T o ta l 77,532,592 5,953,155 20,275,051 16,520,060 544,658 280,249 33,959,419 555,370 19,768 66,519 396 996,636 181,750 881,596 153,639 115,040 28,111 420,467 29,373 48,834 36,928 29,222 36,638 9 254 536,324 205,376 461,378 202,325 74,946 3,051 73,186 64,254 8,932 3,263,521 124,332,114 123,263,625 1,616,587 62,229,348 62,676,745 314,679 49,820,973 50,124,099 257,395 8,901,164 9,051,177 2,312,140 1,074,860 2,480,093 897,414 379,148 245,595 140,410 132,261 171,075 12,642,060 10,447,028 2,195,032 3,110,649 1,169,190 4,279,839 68,249 11,553 205,323 57,531 216,876 107,382 1,049,964 9,603 1,157,346 6,081,092 906,907 6,987,999 35,692 8,050,418 238,660,065 236,709,837 1,907,278 4,744,763 4,732,606 22,261 11,761 8,072,679 243,404,828 241,442,443 1,919,039 330,662 58,678,014 6,235,053 59,018,966 42,950 51,592,635 45,492,445 6,100,190 126,789 10,104 136,893 396 43,346 51,729,528 45,619,234 6,110,294 10,290 50,489,908 44,595,807 5,894,101 736,929 48,275 524,635 69,062 48,843 46,114 78,154,481 5,973,319 20,275,051 16,969,749 610,669 329,092 33,996,601 25,635 6,153 110,695 116,848 733 591 15,073,547 14,057,536 1,016,011 5 11,794,675 10,756,786 1,037,889 6,596 17,771,794 14,824,567 2,947,227 2,365 5,733,044 4,846,223 886,821 22,782,632 14,491.033 45,008,417 23,664,240 21,660,636 13,369,846 41,982,199 22,731,109 32,521 1,121,996 1,121,187 3,026,218 933,131 3,445,704 7,709,085 2,696,358 27,236,623 17,931,196 3,419,336 7,603,100 2,613,060 27,157,632 17,884,886 105,394 83,293 72,395 43,945 1,913,871 12,603,290 4,061,542 6,296,390 3,792,673 9,283,160 89,151,015 52,764,372 5,759,169 1,859,339 12,456,909 3,924,357 6,098,580 3,728,633 9,261,903 88,416,016 52,363,056 5,679,063 54,532 146,381 137,185 197,810 64,040 21,257 734,999 401,316 80,106 1,902,215 12,593,389 4,061,542 6,214,828 3,786,373 9,281,477 88,979,351 51,845,017 5,721,670 1,847,683 12,447,077 3,924,357 6,017,418 3,724,055 9,260,220 88,257,588 51,628,083 5,657,948 54,514 146,127 136,805 189,865 53,941 21,110 710,926 214,135 60,954 18 185 380 7,545 8,377 147 10,837 2,799 2,768 11,656 9,901 11,656 9,832 81,562 6,300 1,683 171,664 919,355 37,499 81,162 4,578 1,683 158,428 734,973 21,115 13,236 184,382 16,384 14,590,455 6,853,280 7,737,175 14,252,663 6,749,270 7,503,393 337,792 104,010 233,782 13,456,023 6,329,664 7,126,359 13,206,524 6,289,874 6,916,650 218,486 24,797 193,689 31,013 14,993 16,020 1,134,432 523,616 610,816 1,046,139 459,396 586,743 88,293 64,220 24,073 69 400 1,722 CORPORATION Loans and discounts, net— to ta l............................................ Loans and discounts, gross— to ta l........................................ L o a n s t o c o m m e r c ia l a n d f o r e ig n b a n k s ............................... L o a n s t o o t h e r f in a n c ia l i n s t i t u t i o n s ......................................... F e d e ra l f u n d s s o ld ( lo a n e d ) 3.......................................................... L o a n s t o b r o k e r s a n d d e a le r s in s e c u r i t i e s .......................... O th e r lo a n s f o r c a r r y in g s e c u r i t i e s ............................................. L o a n s t o f a r m e r s ( e x c lu d in g re a l e s t a t e ) .............................. C o m m e r c ia l a n d in d u s t r ia l l o a n s ................................................ O th e r lo a n s t o i n d i v i d u a l s ................................................................ A ll o t h e r lo a n s ( in c lu d in g o v e r d r a f t s ) ....................................... In s u r e d 520,968,446 508,579,786 12,388,660 454,602,683 450,712,578 3,578,548 V a lu a t io n r e s e r v e s ..................................................................................... Secured by residential properties: Insured by F H A ..................................................................................... Guaranteed by V A .................................................................................. Not insured or guaranteed by FHA or V A .......................................... Secured by other properties ......................................................................... T o ta l INSURANCE D e m a n d b a la n c e s w i t h b a n k s in U . S ...................................... O th e r b a la n c e s w ith b a n k s in U . S ............................................ B a la n c e s w i t h b a n k s in f o r e ig n c o u n t r i e s ............................ C a s h it e m s in p r o c e s s o f c o l l e c t i o n .......................................... N on in s u r e d DEPOSIT Total a sse ts....................................................................................... In s u r e d FEDERAL T o ta l T o ta l lia b ilitie s an d c a p ita l a c c o u n ts .................................... B u sin e s s and p e rs o n a l d e p o s its — t o t a l............................ In d iv id u a ls , p a rtn e rs h ip s , and co rp o ra tio n s— dem and 520,968,446 508,579,786 12,388,660 454,602,683 450,712,578 3,578,548 311,557 66,365,763 392,033,205 382,730,034 159,865,777 158,903,429 128,157 60,451,835 52,870,001 84,769 412,089 432,105 Deposits of savings and loan associations ........................................................ 2,669,681 2,666,882 Other deposits of individuals, partnerships, and corporations ................. 157,196,096 156,236,547 In d iv id u a ls , p a rtn e rs h ip s , and c orpora tions— tim e .. . 223,438,231 215,171,503 Savings deposits ........................................................................................................... 154,729,669 146,842,397 Deposits accumulated for payment of personal loans .................................. 1,288,380 1,283,997 Deposits of savings and loan associations ........................................................ 553,893 553,739 Other deposits of individuals, partnerships, and corporations ................. 66,866,289 66,491,370 9,303,171 331,581,370 329,860,033 1,593,180 962,348 159,433,672 158,491,340 857,563 2 7QQ 2,669,681 2,666,882 959,549 156,763,991 155,824,458 8,266,728 163,432,828 7,887,272 4,383 154 374,919 94,783,181 1,288,286 553,893 66,807,468 2,799 854,764 57,867,208 8,498,555 84,769 432,105 412,089 20,016 162,727,918 661,549 43,361 60,005,403 52,443,585 94,451,458 1,283,923 553,739 66,438,798 306,570 4,363 154 350,462 25,153 59,946,488 52,390,939 7,555,549 20 94 74 7,561,818 58,821 52,572 8,655,102 74,095 8,714,870 8,640,775 74,068 27 14,327 14,327 G o v e rn m e n t d e p o s its — t o t a l ................................................. U nited S tates G ove rnm ent— d e m a n d ............................. U n ite d S tates G ove rnm ent— t im e .................................... S tates and s u b d ivisio n s— d e m a n d .................................. States and s u b d ivisio n s— tim e .......................................... 37,242,368 5,272,983 289,215 15,688,935 15,991,235 37,031,822 5,244,746 285,856 15,580,596 15,920,624 210,546 28,237 3,359 108 339 70,611 37,198,797 5,266,446 288,853 15 686,280 15,957,218 36,990,123 5,238,918 285,533 15,577,942 15,887,730 208,029 26,883 3,320 108,338 69,488 645 645 43,571 6,537 362 2,655 34,017 41,699 5,828 323 2,654 32,894 D om e stic in te rb a n k d e p o s its — t o t a l................................... C om m ercial banks in th e U. S.— d e m a n d ..................... C om m ercial ba nks in th e U. S.— t im e ............................ M u tu a l savings b a nks in th e U. S.— d e m a n d ............... M u tu a l savings b a n ks in th e U. S.— tim e ...................... 20,869,345 18,828,832 729,814 1,062,408 248,291 20,661,349 18,788,543 728,139 935,212 209,455 207,996 40,289 1,675 127,196 38,836 20,868,083 18,828,695 728,689 1,062,408 248,291 20,660,087 18,788,406 727,014 935,212 209,455 207,523 39,816 1,675 127,196 38,836 473 473 1,262 137 1,125 1,262 137 1,125 F o re ig n g o v e rn m e n t and b a n k d e p o s its — to t a l.............. Foreign g o v e rn m e n ts , cen tral ba nks, etc.— de m and . Foreign g o v e rn m e n ts , cen tral ba nks, etc.— tim e ....... B anks in foreign c o u n trie s — d e m a n d ............................. B anks in foreign c o u n trie s — tim e ..................................... 8,556,201 906,371 5,267,265 2,030,106 352,459 8,285,680 874,451 5,166,228 1,909,911 335,090 270,521 31,920 101,037 120,195 17,369 8,556,201 906,371 5,267,265 2,030,106 352,459 8,285,680 874,451 5,166,228 1,909,911 335,090 269,358 31,862 100,037 120,090 17,369 1,163 58 1,000 105 T o ta l lia b ilitie s (e x c lu d in g c a p ita l a c c o u n ts )......... 22,752,361 4,991,456 916,787 16,844,118 21,627,346 4,980,322 636,953 16,010,071 1,125,015 11,134 279,834 834,047 21,870,225 4,991,456 847,541 16,031,228 20,910,731 4,980,322 568,797 15,361,612 935,364 11,134 276,732 647,498 481,453,480 470,336,231 11,117,249 420,074,676 416,706,654 3,213,454 130,438 60,496,668 52,912,962 7,583,706 86,077 455,761 435,035 20,726 44,361 60,040,907 52,477,927 7,562,980 24,130 882,136 716,615 165,521 2,012 22,118 69,246 812,890 68,156 648,459 1,090 164,431 154,568 61,378,804 53,629,577 7,749,227 C a p ita l ac c o u n ts — t o t a l........................................................... C apital notes and d e b e n tu re s ........................................... P referred s to c k ....................................................................... C om m on s to c k ....................................................................... S u rp lu s ...................................................................................... U ndivided p ro fits and re s e rv e s ......................................... 39,514,966 2,035,275 92,050 9,401,080 18,650,245 9,336,316 38,243,555 1,987,454 87,076 9,253,642 18,055,718 8,859,665 1,271,411 47,821 4,974 147,438 594,527 476,651 34,528,007 2,032,211 92,050 9,401,080 15,172,077 7,830,589 34,005,924 1,984,390 87,076 9,253,642 14,983,375 7,697,441 365,094 47,671 3,324 94,683 123,851 95,565 156,989 150 1,650 52,755 64,851 37,583 4,986,959 3,054 4,237,631 3,064 749,328 3,478,168 1,505,727 3,072,343 1,162,224 405,825 343,503 N um b er o f ba nks 5 ......................................................................... 14,244 13,850 394 13,741 13,517 177 47 503 333 170 175 1 Includes asset and lia b ility figures for 13 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to those branches by the parent banks. 2 Amounts shown as deposits are special accounts and uninvested trust funds with the latter classified as demand deposits of individuals, partnerships, and corporations. 3 Also includes securities purchased under agreements to resell. 4 Also includes securities sold under agreements to repurchase. 5 Includes 3 uninsured banks for which asset and liab ility data are not available. Back figures, 1934-1966: See preceding ta b le and the Annual Report for 1966, pp. 144-145, and ea rlie r reports. OF BANKS O th e r lia b ilitie s — t o t a l ............................................................ Federal fu n d s pu rchase d (b o rro w e d )4 ............................ O ther lia b ilitie s fo r borrow ed m o n e y ............................... All o th e r m iscellaneo us lia b ilitie s ..................................... 9,992,234 398,204,451 395,795,923 2,278,090 1,492,619 211,928,848 210,456,955 1,385,816 8,499,615 186,275,603 185,338,968 892,274 1,872 709 39 1 1,123 LIABILITIES 458,701,119 448,708,885 Dem and ..................................................................................................................... 212,384,609 210,891,990 T im e ........................................................................................................................... 246,316,510 237,816,895 6,249 AND 18,208 8,729,197 ASSETS C ertified and o ffic e rs ’ checks, le tte rs o f credit, tra v e le rs ' ch e cks, e tc ........................................................ T o ta l d e p o s its ..................................................................... 7,581,834 20,016 176 Table 107. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER CALL DATES, 1963 THROUGH 1967 (A m o unts in tho u sa n d s o f dollars) Insured com m ercial banks Dec. 31, 1965 Dec. 31, 1966 Dec. 30, 1967 T o t a l a s s e t s .................................................................................... 311,790,848 345,130,205 375,394,111 402,946,336 450,712,578 C a s h , b a la n c e s w i t h o t h e r b a n k s , a n d c a s h c o l l e c t i o n i t e m s — t o t a l .............................................. C u r r e n c y a n d c o i n ............................................................. R e s e rv e w i t h F e d e ra l R e s e rv e B a n k s ( m e m b e r b a n k s ) .......................................................................... D e m a n d b a la n c e s w it h b a n k s in t h e U n it e d S t a t e s ( e x c e p t p r iv a t e b a n k s a n d A m e r i c a n b r a n c h e s o f f o r e ig n b a n k s ) ......................... O th e r b a la n c e s w it h b a n k s in t h e U n it e d S t a t e s .................................................................................. B a la n c e s w i t h b a n k s in f o r e ig n c o u n t r i e s . . . C a s h it e m s in p r o c e s s o f c o l l e c t i o n .................... O t h e r s e c u r i t i e s — t o t a l ...................................................... O b lig a t io n s o f S t a t e s a n d s u b d i v i s i o n s ............ S e c u r it ie s o f F e d e ra l a g e n c ie s a n d c o r p o r a t io n s ..................................................................................... O th e r b o n d s , n o t e s , a n d d e b e n t u r e s ................ F e d e ra l R e s e r v e B a n k s t o c k .................................... O th e r c o r p o r a t e s t o c k s ................................................ T o t a l s e c u r i t i e s ....................................................... Dec. 31, 1964 Dec. 31, 1965 Dec. 31, 1966 Dec. 30, 1967 43,018,983 47,044,184 50,499,716 53,049,468 57,867,208 721,513 104,083 893,139 138,843 904,000 142,598 847,825 145,587 881,596 153,639 50,445,462 4,053,057 60,032,916 4,551,889 60,436,719 4,865,803 68,651,850 5,457,281 77,532,592 5,953,155 17,149 613 17,580,743 17,992,395 19,068,820 20,275,051 11,644,517 14,090,586 14,354,186 15,136,611 16,520,060 441,946 476,644 493,600 474,276 461,378 367,817 298,992 16,931,466 558,335 300,841 22,950,522 484,817 255,865 22,483,653 257,066 250,872 28,481,200 544,658 280,249 33,959,419 141,043 224,274 212,193 166,743 202,325 34,441 53,378 55,609 61 219 64,254 62,811,737 62,588,052 59,209,832 55,903,996 62,229,348 4,324,018 4,110,452 3,759,961 3,323,662 3,110,649 12,650,993 13,301,211’ 227,842 232,494 309,700 306,712 365,205 7,062,518 9,001,237 231,424 139,679 178,142 132,570 179,084 29,334,529 12,244,036 1,137,045 277,927 104,689 26,638,335 12,481,688 778,067 247.362 140,152] C1) 891,708 1,423,462 1,296,853 115,721 137,008 1,130 798 1,107,233 1,241,155 92,527 166,566 941,780 975,170 1,177,097 67,037 111,035 1,012,437 680,603 998,066 61,857 131,417 1 087,857 384,276 896,128 36,129 161,970 34,660,292 29,611,314 38,371,648 33,343,807 61,034,277 49,820,973 5,040,575 410,862 5,014,656 367‘846 5,010,410 300,273 5,352,088 236,697 7,336,379 205,323 712,425 3,003,773 749,219 2 904,732 842,356 2,731,805 1,009,066 2,932,706 1,049,964 4,703,008 3,503,243 784,083 491,175\ 270,477/ 3,446,144 762,790] 818,907 ^ I 0 44,440,876 38,480,349 0 48,381,827 40,831,664 4,513,114 5,959,194 8,901,164 21,447,413 n , 590,969 2,312,140 97,472,029 100,959,700 103,650,708 104,285,823 123,263,625 913,515 992,859 1,135,976 1,173,619 1,378,084 9,364,593 9,125,108 8,770,371 8,675,750 10,447,028 CORPORATION O b lig a t io n s o f t h e U . S . G o v e r n m e n t , d i r e c t a n d g u a r a n t e e d — t o t a l ............................................ D ire c t : T r e a s u r y b ills a n d c e r t if ic a t e s o f in d e b t e d n e s s ................................................................................... T r e a s u r y n o t e s a n d o t h e r b o n d s m a t u r in g in 1 y e a r o r l e s s ....................................................... T r e a s u r y n o t e s a n d o t h e r b o n d s m a t u r in g in 1 t o 5 y e a r s ............................................................ O th e r b o n d s m a t u r in g in 5 t o 10 y e a r s ......... O th e r b o n d s m a t u r i n g a f t e r 10 y e a r s ............. U n it e d S t a t e s n o n - m a r k e t a b le b o n d s .......... G u a r a n t e e d o b l i g a t i o n s ............................................... Dec. 20, 1963 INSURANCE Dec. 31, 1964 DEPOSIT Dec. 20, 1963 Insured m u tu a l savings ba nks FEDERAL A ssets Loans and d is c o u n ts , n e t— t o t a l.............................. V alu a tio n re s e rv e s ........................................................ Loans and d is c o u n ts , gross— t o t a l......................... Real estate loans— t o t a l.......................................... 155,933,367 175,096,194 201,114,143 218,455,698 236,709,837 2,994,811 3,552,676 4,011,273 4,336,933 4,732,606 158,928,178 178,648,870 205,125,416 222,792,631 241,442,443 39,088,205 43,733,086 49,393,933 54,099,590 58,678,014 32,299,615 36,233,052 39,964,343 42,593,177 45,492,445 218,740 209,774 32,518,355 36.442.826 40,173,674 42,733,660 35,823,288 45,619,234 39,435,679 209,331 140,483 126,789 Secured by farm lan d .............................................................................. 2,303,251 Secured by residential properties: Insured by F H A ................................................................................... 7,047,238 Guaranteed by V A .............................................................................. 2,817,152 Not insured or guaranteed by FHA or V A ............................. 16,380,889 Secured by other properties ..................................................................... 10,539,675 7,441,201 2,556,527 24,659,845 16,329,595 9,969,510 9,500,673 46,819 12,911,024 10,427,383 12,245,612 3,804,841 47,719 13,563,472 10,473,930 13,490,913 4,232,369 44,595,807 7,592,405 2,637,439 21,929,584 14,346,493 48,629 11.527.827 10,129,274 10,739,893 3,377,665 41,808,403 7,243,497 2 , 684,468 18,810,798 12.377.719 3,419,336 7,603,100 2,613,060 27,157,632 17,884,886 31,892,036 3,594,633 9,441,479 3,420,989 10,849,646 2,095,012 13,186,038 2,064,215 5,087,694 3,175,076 2,132,957 13,186,453 2,460,941 5,643,112 3,149,552 1,847,683 12,447,077 3,924,357 6,017,418 3,724,055 15,617 7,016 16,228 9,322 12,505 14,342 33,368 10,905 11,656 9,832 24,278 11,579 25,759 4,807 21,585 4,812 42,245 4,329 81,162 4,578 Total loans and securities. Bank prem ises, fu rn itu re and fixtures, and other real estate— to ta l...................................... M iscellaneous assets— to ta l..................................... C u s to m e r s ’ lia b ility on a c c e p ta n c e s o u t s t a n d i n g ................................................................................... O th e r a s s e t s .............................................................................. (5) (5) 816,838 513,580 533,948 6,644,575 6,982,643 7,669,065 8,549,399 9,260,220 2,499 2,152 1,913 1,809 1,683 52,984,200 34,531,746 60,040,383 39,814,778 71,235,183 45,497,461 80,408,482 47,992,068 88,257,588 51,628,083 156,977 391,145 144,698 515,673 191,599 617,747 158,428 734,973 3,200,612 2,909,590 5,718,920 10,265,352 3,748,783 3,012,861 6,441,204 11,950,210 4,176,950 3,126,804 7,388,640 13,665,853 4,692,533 3,216,162 8,091,439 13,701,770 18,890,458 828,313 521,909 4,781,232 3,351,554 8,361,180 14,893,437 160,682 388,211 923 66,450 4,024,100 5,143,998 5,187,791 1,016 75,397 126,027 164,335 5,170,077 5,657,948 2,039 88,646 199,220 190,213 3,769 105,998 244,976 220,125 6,378 119,569 297,131 258,105 14.661.720 17,139,214 18,290,164 253,405,396 276,055,894 304,764,851 322,741,521 359,973,462 4,394,800 4,305,466 89,334 4,753,588 (7) 13,978 ,!!$ 24,370 35,555 42,879 53,790 16,437 13,148 22,467 23,255 21,115 41,664,208 45,358,160 48,734,714 51,268,927 55,939,473 65,144,222 65,619,987 66,289,874 312,897 342,898 381,225 415,193 459,396 (7) (7) 6,007,170 282,704 290,072 22,825 316,189 26,709 353,930 27,295 387,395 27,798 428,779 30,617 3,545,190 4,287,807 5,048,319 5,932,978 6,916,650 320,365 449,987 479,777 517.523 586,743 1,591,458 1,953,732 1,697,120 2,590,687 1,862,571 3,185,748 2,178,017 3,754,961 2,314,772 4,601,878 ' 320,365 ' 449,987 ’ 479,777 517.523 ' 586,743 ‘ OF BANKS B a n k p r e m is e s , a n d f u r n i t u r e a n d f ix t u r e s , a n d o t h e r a s s e t s in d i r e c t ly r e p r e s e n t in g b a n k p r e m is e s o r o t h e r re a l e s t a t e .................................... R e a l e s t a te o w n e d o t h e r t h a n b a n k p r e m i s e s . . 5,355,550 2,794,217 LIABILITIES All o th e r loans (in c lu d in g o v e rd ra fts )................. 5,325,642 2,476,760 (4) 110,695 14,057,536 10,756,786 14,824,567 AND Passenger automobile instalment loans ........................................... Retail (charge account) credit card plan s ....................................... Check credit and revolving credit plans ........................................... Other retail consumer instalment loans ........................................... Residential repair and modernization instalment loans ........... Other instalment loans for personal expenditures ....................... Single-payment loans for personal expenditures ........................ (4) 3,112,422 ASSETS Loans to d o m e s tic com m ercial and foreign b a n k s .......................................................................... Loans to o th e r fin a n c ia l in s titu tio n s ................... Federal fu n d s sold (lo a n e d )3 ................................ Loans to brokers and de alers in s e c u ritie s ... O th er loans fo r p u rc h a s in g s e c u ritie s ............... Loans to fa rm e rs d ire c tly g u a ra n te e d by the C o m m o d ity C re d it C o rp o ra tio n ......................... O ther loans to fa rm e rs (e x c lu d in g loans on real e s ta te )....................................................................... C om m ercial and in d u s tria l loan s (in c lu d in g open m a rk e t p a p e r).............................................. O th er loans to in d iv id u a ls — t o t a l.......................... 2 ,616,604 PERCENTAGES To total assets: To total assets other than cash and U. S. Gov ernm ent obligations: T o t a l c a p it a l a c c o u n t s ...................................................... 16.2% 17.4% 16.1% 17.0% 17.2% 20.1 18.2 15.8 13.9 50.0 50.7 2.6 2.6 53.6 2.7 13.8 13.5 52.5 2.9 7.5 10.9 11.1 11.1 11.8 12.0 8.1 8.0 8.0 54.2 2.9 7.9 12.8 12.4 11.7 11.4 1.79 10.0 1.9% 1.8% 11.7 75.1 1.5 8.3 8.7 10.7 77.0 1.7 7.9 7.5 9.9 79.1 1.7 7.8 9.4 8.9 8.6 1.6% 6.3 10.1 80.3 1.7 7.8 1.5% 5.4 12.7 78.6 1.8 7.3 7.9 177 C a s h a n d b a la n c e s w it h o t h e r b a n k s .................. U .S . G o v e r n m e n t o b li g a t i o n s , d ir e c t a n d g u a r a n t e e d ..................................................................................... O t h e r s e c u r i t i e s ..................................................................... L o a n s a n d d i s c o u n t s ........................................................... O t h e r a s s e t s ............................................................................ T o t a l c a p it a l a c c o u n t s ........................................................ 178 Table 107. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER CALL DATES, 1963 THROUGH 1967— CONTINUED ( A m o u n t s in t h o u s a n d s o f d o lla r s ) I n s u r e d m u t u a l s a v in g s b a n k s I n s u r e d c o m m e r c ia l b a n k s L ia b ilit i e s a n d c a p it a l D e c . 31, 1964 Total lia b ilities and capital a c c o u n ts.................... B u sin e ss and p erson al dep o sits—to ta l............ 311,790,848 345,130,205 375,394,111 402,946,336 450,712,578 I n d iv id u a ls , p a r t n e r s h i p s , a n d c o r p o r a t io n s — d e m a n d ......................................................................... Dom estic interbank and postal savings d e posits — to ta l.......................................................... C o m m e r c ia l b a n k s in t h e U . S .— d e m a n d . .. C o m m e r c ia l b a n k s in t h e U . S .— t i m e .............. M u t u a l s a v in g s b a n k s in t h e U . S .— d e m a n d . M u t u a l s a v in g s b a n k s in t h e U . S .— t i m e . . . P o s ta l s a v in g s Foreign governm ent and bank total ............................. D e c . 31, 1966 D e c . 30, 1967 43,018,983 47,044,184 50,499,716 53,049,468 57,867,208 329,860,033 38,627,061 42,714,295 45,848,773 48,212,477 52,870,001 139,077,920 2,294,862 144,323,672 158,491,340 281,375 312,703 345,204 366,110 412,089 281,375 312,703 345,204 366,110 412,089 130,195,436 142,261,089 162,727,918 38,337,379 42,389,690 42,374,371 800 45,491,617 45,477,204 28 47,834,854 47,812,107 38 52,443,585 52,390,939 74 52,572 123,561,302 134,300,734 2,666,882 2,298,371 ( 136,783,058 142,025,301 155,824,458 [ (7) 100,033,046 (7) 112,804,696 82,966,971 956,410 28,881,315 f 92,554,897 1,078,207 922,485 ( 90,076,746 1,223,553 620,601 94,451,458 1,283,923 553,739 38,324,849 631 f 35,639,847 50,340,189 66,438,798 11,899 14,519 14,385 22,709 4,447,964 5,877,973 5,932,001 6,980,996 8,640,775 8,307 11,902 11,952 11,513 14,327 27,142,510 6,729,214 268,203 12,261,389 7,883,704 30,068,312 6,500,876 270,832 13,497,662 9,798,942 32,216,843 5,523,816 281,330 14,241,724 12,169,973 33,768,382 4,990,164 257,599 15,059,104 13,461,515 36,990,123 5,238,918 285,533 15,577,942 15,887,730 28,767 5,025 97 2,046 21,599 34,844 6,574 152 1,584 26,534 37,131 6,795 407 2,079 27,850 41,829 6,148 297 3,265 32,119 41,699 5,828 323 2,654 32,894 14,268,764 13,323,080 268,710 610,294 49252 17,428 16,754,488 15,492,798 382,943 740,382 118 835 19,530 17,311,718 15,779,062 510,159 860 378 162119 18,355,321 16,947,228 476,896 782,525 148672 1,236 32 1,204 1,960 88 1,872 1,387 122 1,265 1,330 126 1,204 1,262 137 1,125 (7)' (7)' 20,660,087 18,788,406 727,014 935,212 209 455 (7) 5,193,043 6,424,074 6,778,763 7,150,699 8,285,680 55 841,590 826,137 892,867 869,268 874,451 22 3,045,415 1 177 311 128727 3,893,693 1 454 685 249^559 4,086,126 1 529 097 270^673 4,212,084 1 784 407 '284,940 5,166,228 1 909 911 335,090 33 274,646,629 306,230,277 331,512,681 352,840,159 395,795,923 38,657,119 42,751,099 45,887,291 48,255,636 52,912,962 deposits— F o r e ig n g o v e r n m e n t s , c e n t r a l b a n k s , e t c . — dem and F o r e ig n g o v e r n m e n t s , c e n t r a l b a n k s , e t c . — tim e ...................... B a n k s in f o r e ig n c o u n t r ie s — d e m a n d B a n k s in f o r e ig n c o u n t r ie s — t i m e Total d e p o sits...................................................... Demand ............................................................................................... 162,952,144 178,691,247 183,836,865 191,737,364 210,456,955 T im e .................................................................................................... 111,694,485 127,539,030 147,675,816 161,102,795 185,338,968 296,807 38,360,312 332,851 42,418,248 366,152 45,521,139 387,162 47,868,474 435,035 52,477,927 CORPORATION S t a t e s G o v e r n m e n t — d e m a n d ............... S t a t e s G o v e r n m e n t — t i m e ........................ a n d s u b d iv is io n s — d e m a n d ...................... a n d s u b d iv is io n s — t i m e ............................... D e c . 31, 1965 INSURANCE U n it e d U n it e d S ta te s S ta te s D e c . 30, 1967 DEPOSIT Governm ent d epo sits—to ta l.................................. D e c . 31, 1966 293,565,757 76,413,701 836,450 ) Deposits of savings and loan associations Other deposits of individuals, partnerships, and corpora \ 22,782,895 tions ....................................................................................................... J C e r t if ie d a n d o f f i c e r s ’ c h e c k s , le t t e r s o f c r e d it , t r a v e l e r s ’ c h e c k s , e t c ................................ D e c . 31, 1965 228,042,312 252,983,403 275,205,357 Other deposits of individuals, partnerships, and corpora 1 tions ...................................................................................................... I n d iv id u a ls , p a r t n e r s h i p s , a n d c o r p o r a t io n s — t i m e .................................................................................. Savings deposits .................................................................................... Deposits accumulated for payment of personal loans .......... D e c . 31, 1964 FEDERAL D e c . 20, 1963 D e c . 20, 1963 O ther liab ilities— to ta l............................................... 11,821,823 11,461,821 3,576,530 2,591,133 1,620,293 6,625,000 1,737,101 7,133,587 18,413,009 2,824,088 1,904,513 2,234,455 11,449,953 20,910,731 4,980,322 568,797 2,382,072 12,979,540 790,247 562,242 655,013 653,735 37,647 20,402 90,800 68,876 68,156 752,600 541,840 564,213 584,859 648,459 Total lia b ilities (excluding capital a c co u n ts).................................................................. 286,468,452 317,692,098 345,489,177 371,253,168 F e d e ra l f u n d s p u r c h a s e d ( b o r r o w e d ) 8................ } O th e r l ia b ilit ie s f o r b o r r o w e d m o n e y .................. A c c e p t a n c e s o u t s t a n d i n g ............................................ O th e r l i a b i l i t i e s .................................................................... 13,976,496 (2,438,413 11,898,290 1,897,569 7,742,224 716,615 48,909,371 53,629,577 34,005,924 11,325,108 14,983,375 6,610,743 1,086,698 3,571,617 533 2,473,815 828,115 269,154 3,730,843 674 2,658,871 759,920 311,378 3,957.412 2,759 2,798,625 822,112 333,916 4,140,097 3,112 2,923,692 821,662 391,631 4,237,631 3,064 3,072,343 774,284 387,940 7,450,833 7,282,980 130,014 37,839 8,738,836 7,886,432 810 657 41,747 10,200,361 8,507,770 1,652,701 39,890 10,648,322 8,856,837 1,729,902 61,513 11,325,108 9,253,642 1,984,390 87,076 1P C d e m a n d .......................................................................... IP C t i m e a n d s a v i n g s ..................................................... G o v e r n m e n t d e p o s i t s ..................................................... D o m e s t ic in t e r b a n k & p o s t a l s a v i n g s ................. F o r e ig n g o v e r n m e n t s a n d b a n k s ............................ O th e r d e p o s i t s ..................................................................... 45.0% 36.4 9.9 5.2 1.9 1.6 43.9% 36.8 9.8 5.5 2.1 1.9 42.0% 39.3 9.7 5.2 2.0 1.8 40.9% 40.3 9.6 5.2 2.0 2.0 N u m b e r o f b a n k s ....................................................................... 13,291 13,493 13,547 13,541 C a p ita l s t o c k , n o t e s , a n d d e b e n t u r e s ................ S u r p l u s ...................................................................................... U n d iv id e d p r o f i t s ............................................................... R e s e r v e s .................................................................................. MEMORANDA Capital stock, notes, and debentu res: P ar or face value—to ta l......................................... C o m m o n s t o c k ................................................................ C a p ita l n o t e s a n d d e b e n t u r e s ............................. P r e f e r r e d s t o c k ............................................................... 533 674 2,759 3,112 3,064 533 674 2,759 3,112 3,064 40.0% 41.1 9.4 5.2 2.1 2.2 0-7% 99.2 0.1 0.7% 99.2 0.1 0.8%, 99.1 0.1 0.8% 99.1 0.1 0.8% 99.1 0.1 13,517 330 327 329 332 333 P ER C EN T A G ES To total d epo sits: 1 Available only on a par value basis. ? Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "Other assets." 3 As of December 30, 1967 also includes securities purchased under agreements to resell. 4 Prior to December 31, 1965, “ Federal funds sold (loaned)” not reported separately; most were included with loans to banks. 6 Included with “ Securities of Federal agencies and corporations.” 6 Net of mortgages and other liens; previously included with “ Other liabilities.” 7 Not available. 8 As of December 30, 1967 also includes securities sold under agreements to repurchase. Back fiqures, 1934-1962: See the Annual Report for 1962, pp. 130-133, and earlier reports. 179 OF BANKS 46,542,304 31,693,168 10,648,322 13,998,697 6,166,477 879,672 LIABILITIES 43,313,341 29,904,934 10,200,361 13,464,797 5,437,575 802,201 AND 39,447,366 27,438,107 8,738,836 12,893,189 5,113,007 693,075 ASSETS 46,706,654 25,322,396 7,450133 12,163,471 5,113,403 594,989 Capital accounts—to ta l............................................. 180 Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967 BANKS GROUPED BY CLASS OF BANK (A m o u n ts in th o u sa n d s o f dollars) A sset or lia b ility item M e m bers F. R. S ystem Total S tate 264,098,743 111,175,202 75,438,633 Cash and du e fro m b a n k s ........................................................................ O bligation s o f th e U . S. G o v e rn m e n t.................................................... O b lig a tio n s o f S tates and s u b d iv is io n s ...................... .......................... O ther s e c u ritie s ............................................................................................ 77 532,592 62,229,348 49,820,973 11,213,304 46,675,689 34,307,948 29,002,600 6,345,823 22,311,693 12,639,952 12,514,782 1,448,707 8,545,210 15,281,448 8,303,591 3,418,774 Loans and d is c o u n ts , n e t— to t a l............................................................. Real e s ta te ................................................................................................. To b a n ks and o th e r fin a n c ia l in s titu tio n s ........................................ Federal fu n d s sold (lo a n e d ) 1 ............................................................... To p u rchase or carry s e c u ritie s ........................................................... To fa r m e r s .................................................................................................. C om m ercial and in d u s tria l.......................................... C onsu m er in s ta lm e n t................................................... S ingle p a y m e n t to in d iv id u a ls ................................... O ther lo a n s ....................................................................... Less: V alu a tio n re s e rv e s .............................................. 236,709,837 58,678,014 14,294,760 3,924,357 9,741,473 9,260,220 88,257,588 36,734,646 14,893,437 5,657,948 4,732,606 139,811,402 33,148,218 8,593,499 2,561,629 4,703,721 4,594,173 55,323,678 21,160,002 8,873,776 3,693,420 2,840,714 58,512,721 12,583,501 4,767,410 876,693 4,219,242 1,110,878 24,181,754 6,894,261 3,586,678 1,541,432 1,249,128 38,385,714 12,946,295 933,851 486,035 818,510 3,555,169 8,752,156 8,680,383 2,432,983 423,096 642,764 13,206,524 7,955,281 3,747,347 1,503,896 450,712,578 264,098,743 111,175,202 75,438,633 D epo sits— t o t a l................................................................... ........... In d iv id u a ls , p a rtn e rs h ip s , and c o rp o ra tio n s — d e m a n d ............... In d iv id u a ls , p a rtn e rs h ip s , a n d c o rp o ra tio n s — savings and tim e U . S. G o v e rn m e n t.................................................................................... S tates and s u b d iv is io n s ......................................................................... D om e stic in te rb a n k ................................................................................. Foreign g o v e rn m e n t and b a n k ............................................................ O ther d e p o s its .......................................................................................... 395,795,923 158,491,340 162,727,918 5,524,451 31,465,672 20,615,754 6,040,679 8,640,775 232,083,393 92,392,694 95,414,825 3,309,417 18,552,526 13,427,880 3,515,162 4,339,315 95,637,158 39,102,513 35,227,179 1,569,246 6,202,325 6,381,640 2,475,765 3,609,440 68,075,372 26,996,133 32,085,914 645,788 6,710,821 806,234 49,752 692,020 Federal fu n d s purchased (b o rro w e d ) 2 ................................................. O ther lia b ilitie s for borrow ed m o n e y ..................................................... O ther lia b ilitie s .............................................................................................. Capital stock, notes, and d e b e n tu re s ................................................... O ther cap ita l a c c o u n ts ............................................................................... 4,980,322 568,797 15.,361,612 11,325,108 22,680,816 3,181,502 296,821 8,807,411 6,601,287 13,128,329 1,700,344 191,165 5,289,781 2,829,550 5,527,204 98,476 80,811 1,264,420 1,894,271 4,025,283 13,517 4,758 1,312 7,447 N um b er o f b a n k s ............................................................................................ 1 Also includes securities purchased under agreements to resell. sold under agreements to repurchase. 2 Also includes securities CORPORATION O ther a s s e ts ........................................................................ T o ta l lia b ilitie s and c a p ita l a c c o u n ts ............................. INSURANCE 450,712,578 DEPOSIT T o ta l a s s e ts ....................................................................................................... FEDERAL N ational N ot m em bers F. R. System Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1967 IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967 BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS ASSETS ( A m o u n t s in t h o u s a n d s o f d o lla r s ) B a n k s w ith d e p o s it s o f — A ll banks1 A s s e t o r li a b i l i t y it e m $2,000,000 to $5,000,000 $5,000,000 to $10,000,000 $10,000,000 $25,000,000 $50,000,000 $100,000,000 $500,000,000 to to or to to $25,000,000 $50,000,000 $100,000,000 $500,000,000 more 2,449,021 14,582,295 26,926,333 45,592,268 33,013,140 30,484,477 52,583 82,806 7,198 22,236 350,091 711,014 82,207 187,956 1,912,192 3,725,814 1,025,549 871,066 3,408,943 5,890,109 2,789,784 1,328,473 5,612,055 8,932,291 5,532,869 1,853,886 4,114,667 5,785,895 4,127,542 1,213,107 4,043,957 5,087,162 3,859,175 993,068 13,484,121 11,314,282 9,867,407 1,778,224 44,264,347 20,470,779 22,411,402 2,911,411 L o a n s a n d d is c o u n t s , n e t — t o t a l ................................. 236,097,510 R e a l e s t a t e ............................................................................. 58,547,547 T o b a n k s a n d o t h e r f in a n c ia l i n s t i t u t i o n s . . . . 14,278,490 F e d e ra l f u n d s s o ld ( l o a n e d ) ? .................................... 3,905,657 T o p u r c h a s e o r c a r r y s e c u r i t i e s ............................... 9,733,096 T o f a r m e r s .............................................................................. 9,251,362 C o m m e r c ia l a n d i n d u s t r i a l .......................................... 88,045,204 C o n s u m e r i n s t a l m e n t ..................................................... 35,605,311 S in g le p a y m e n t t o i n d i v i d u a l s .................................. 14,820,228 O th e r l o a n s ............................................................................ 5,633,552 4,722,937 L e s s : V a lu a t io n r e s e r v e s ............................................. 116,551 23,543 1,340 380 1,245 50,201 13,363 19,402 6,177 1,787 887 1,091,890 275,584 10,056 2,278 7,153 419,677 127,405 184,872 61,993 13,780 10,908 6,837,916 2,110,180 63,285 47,522 60,946 1,873,370 984,124 1,293,540 413,323 81,394 89,768 13,036,766 4,298,102 161,888 152,494 172,661 2,153,391 2,42-8,329 2,838,321 874,561 156,446 199,427 22,764,401 7,690,619 353,108 397,765 367,809 1,784,223 5,057,399 5,563,140 1,633,365 308,001 391,028 17,051,567 5,775,470 396,096 465,057 325,112 556,987 4,332,177 3,990,294 1,309,194 217,805 316,625 15,769,853 5,125,596 517,333 327,453 400,628 362,709 4,616,340 3,364,956 1,091,125 272,743 309,030 43,738,544 12,237,145 2,285,857 771,047 1,495,821 752,388 14,198,400 8,239,979 3,464,140 1,183,816 890,049 115,690,022 21,011,308 10,489,527 1,741,661 6,901,721 1,298,416 56,287,667 11,110,807 5,966,350 3,397,780 2,515,215 2,464 25,863 209,758 472,258 896,766 720,362 731,262 2,088,785 8,013,528 O th e r a s s e t s . . . . 13,161,046 181 ........... 82,271,363 213,761,489 OF BANKS 283,838 77,242,956 62,000,152 49,703,133 11,159,427 C a s h a n d d u e f r o m b a n k s ............................................... O b lig a t io n s o f t h e U . S . G o v e r n m e n t ....................... O b lig a t io n s o f S t a t e s a n d s u b d i v i s i o n s .................. O t h e r s e c u r i t i e s ....................................................................... LIABILITIES T o ta l a s s e ts ...................................................................... 449,364,224 $1,000,000 to $2,000,000 AND Less than $1,000,000 182 Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1967 IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967— CONTINUED FEDERAL BANKS GROUPED ACCORDING TO A M O U N T OF DEPOSITS (A m o u n ts in tho u sa n d s o f do llars) B a n k s w it h d e p o s it s o f — A s s e t o r lia b i l i t y it e m A ll banks1 $5,000,000 to $10,000,000 $10,000,000 to $25,000,000 Total lia b ilities and cap ital a c c o u n ts....................... 449,364,224 283,838 2,449,021 14,582,295 26,926,333 45,592,268 33,013,140 30,484,477 82,271,363 213,761,489 D e p o s it s — t o t a l ......................................................................... 394,615,206 Demand deposits .................................................................................... &09,781,109 Time and savings deposits .................................................................. 184,834,097 I n d iv id u a ls , p a r t n e r s h ip s , a n d c o r p o r a t io n s — d e m a n d .............................................. 158,016,249 I n d iv id u a ls , p a r t n e r s h i p s , a n d c o r p o r a t io n s — t i m e a n d s a v i n g s .......................... 162,291,785 5,511,113 U . S . G o v e r n m e n t .............................................................. S t a t e s a n d s u b d i v i s i o n s ................................................ 31,323,338 D o m e s t ic i n t e r b a n k .......................................................... 22,800,570 6,039,169 F o r e ig n g o v e r n m e n t a n d b a n k ................................. 8,632,982 O th e r d e p o s i t s ..................................................................... 245,369 170,165 75,204 2,169,755 1,257,093 912,662 13,090,121 24,385,979 41,306,621 29,847,719 27,536,767 73,538,184 182,494,691 146,302 1,070,480 5,642,431 9,913,935 16,153,438 11,726,652 10,633,516 29,804,081 72,925,413 66,495 814 29,530 1,321 834,164 8,578 237,415 7,102 11,528,790 188,165 2,428,240 120,811 100 205,937 20,161,350 422,829 3,785,051 376,342 2,740 404,871 14,301,261 328,707 2,618,880 539,945 4,879 327,395 12,792,455 335,026 2,599,983 839,733 32,819 303,235 30,785,164 1,133,458 6,207,729 4,641,617 89,190 876,945 65,944,537 3,018,061 12,064,845 16,222,210 5,908,916 6,410,709 6,731,797 6,358,324 11,952,763 12,433,216 19,563,936 21,742,685 $25,000,000 $50,000,000 $100,000,000 $500,000,000 to to or to $50,000,000 $100,000,000 $500,000,000 more 14,324,265 15,523,454 13,360,688 14,176,079 39,455,150 102,965,252 34,083,034 79,529,439 907 12,016 5,877,569 75,475 1,351,665 51,489 525 90,967 F e d e ra l f u n d s p u r c h a s e d ( b o r r o w e d ) 3...................... O th e r l ia b ilit ie s f o r b o r r o w e d m o n e y ......................... O th e r l i a b i l i t i e s .......................................................................... C a p ita l s t o c k , n o t e s , a n d d e b e n t u r e s ...................... O th e r c a p it a l a c c o u n t s ........................................................ 4,979,897 568,774 15,331,054 11,265,351 22,603,942 100 1,285 10,602 26,482 150 1,544 11,920 67,797 197,855 5,687 10,710 112,256 363,997 999,524 14,251 19,384 302,011 631,684 1,573,024 42,546 22,225 752,790 1,039,981 2,428,105 32,123 31,350 716,737 763,567 1,621,644 72,326 13,963 699,988 728,703 1,432,730 585,739 122,684 2,022,624 1,989,560 4,012,572 4,227,075 346,814 10,711,443 5,669,460 10,312,006 N u m b e r o f b a n k s ........................................................................ 13,419 327 1,424 3,866 3,412 2,662 871 403 353 101 1 This group of banks is the same as the group shown in Table 115 under the heading “ Operating throughout the year.” 2Also includes securities purchased under agreements to resell. 3 Also includes securities sold under agreements to repurchase. Note: For income and expense data by size of bank, see Tables 116 and 117, pp. 194-197. Back figures, 1941-1966: See the Annual Report for 1966, p. 151, and earlier reports. CORPORATION $2,000,000 to $5,000,000 INSURANCE $1,000,000 to $2,000,000 DEPOSIT Less than $1,000,000 Table 110. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1967 IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967 BANKS GROUPED ACCORDING TO AM O U N T OF DEPOSITS A sset or lia b ility item All banks’ B anks w ith de p o sits o f— Less than $1,000,000 $1,000,000 to $2 ,000,000 $2 ,000,000 to $5,000,000 $5,000,000 $10,000,000 $25,000,000 $50,000,000 $100,000,000 $500,000.00C to to to to to or $10,000,000 $25,000,000 $50,000,000 $100,000,000 $500,000,000 more 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 11.1 14.3 29.0 3.4 7.7 13.1 25.6 7.0 12.7 21.9 10.4 4.9 12.3 19.6 12.1 13.3 16.7 12.7 3.3 16.4 13.8 4.1 12.5 17.5 12.5 3.7 20.7 9.6 10.5 1.4 Loans and d is c o u n ts , ne t— t o t a l............................ Real e s ta te ................................................................ To banks and o th e r fin a n c ia l in s titu tio n s . . . . Federal fu n d s sold (lo a n e d ) 2 ............................... To pu rchase or carry s e c u ritie s .......................... To fa rm e rs ................................................................. Com m ercial and in d u s tria l................................... C onsum er in s ta lm e n t............................................ Single p a y m e n t to in d iv id u a ls ............................ O ther lo a n s ............................................................... Less: V aluation re s e rv e s ...................................... 52.5 13.0 3.2 .9 41.1 8.3 .5 44.6 11.3 .4 48.4 16.0 49.9 16.9 51.7 17.5 51.7 16.8 1.7 53.2 14.9 54.1 9.8 4.9 2.2 2.1 19.6 8.1 .4 17.7 4.7 .3 17.1 5.2 7.5 2.5 46.9 14.5 .4 .3 .4 1.1 .3 2.5 3.3 1.3 .1 6.8 2.2 .6 2.9 .9 100.0 100.0 D eposits— t o t a l............................................................ 87.8 86.4 Demand deposits .................................................................................... Time and savings deposits ................................................................. Ind ividu als, pa rtne rships, and corpora tions— d e m a n d ...................................... In d ivid u a ls, pa rtn e rsh ip s, and corpora tions— tim e and s a v in g s ..................... U. S. G o v e rn m e n t................................................... States and s u b d iv is io n s ....................................... D om e stic in te r b a n k ................................................ Foreign g o v e rn m e n t and b a n k ........................... O ther d e p o s its ......................................................... Footnotes to this table: See Table 109. 60.0 26.5 6.7 8.9 .6 2.8 .6 .6 1.1 100.0 88.6 100.0 .4 1.4 89.8 9.0 10.5 3.2 .8 .9 .8 3.9 11.1 12.2 .6 .7 3.6 .7 .9 1.8 100.0 2.0 100.0 90.6 90.6 51.3 37.3 46.2 43.6 44-4 46.2 42.9 47.7 1.2 1.4 1.0 1.7 13.1 12.1 4.0 .7 1.0 2.2 100.0 90.4 43.4 47.0 2.8 .9 1.8 1.1 1.3 1.2 15.1 11.0 10.0 1.0 1.1 3.6 .9 .9 17.3 4.2 1.4 .8 .6 3.2 26.3 5.2 2.8 1.6 1.2 2.4 2.5 3.7 100.0 100.0 100.0 43.8 46.5 90.3 48.0 41.4 48.2 37.2 89.4 85.4 35.2 51.5 43.7 38.7 36.8 35.4 35.5 34.9 36.2 34.1 36.1 23.4 .3 10.4 .5 34.1 .4 9.7 .3 40.3 .5 9.3 .4 42.8 .7 9.0 .4 44.2 .9 8.3 43.3 42.0 7.9 8.5 37.4 1.4 7.5 5.6 30.8 1.4 5.6 7.6 .3 .5 .0 .0 .0 .1 2.8 8.1 1.2 7.0 5.1 1.3 1.9 1.1 .1 3.4 2.5 5.0 .0 .5 3.7 9.3 .0 .5 .0 .6 .0 .1 .8 2.5 6.9 .0 .8 .1 .1 1.1 2.3 5.8 .8 .0 .9 .1 .0 1.7 2.3 5.3 1.0 1.6 .0 1.0 .1 .1 2.2 2.3 4.9 1.1 2.8 .1 1.0 .2 .0 2.3 2.4 4.7 .1 1.1 .7 .1 2.5 2.4 4.9 2.8 3.0 2.0 .2 5.0 2.7 4.8 183 Federal fu n d s purchased (b o rro w e d ) 3................. O ther lia b ilitie s fo r borrow ed m o n e y .................... O ther lia b ilitie s ............................................................. C apital stock, notes, and d e b e n tu re s ................. O ther cap ita l a c c o u n ts .............................................. 46.7 41.1 12.8 .6 .6 .6 8.0 OF BANKS O ther a s s e ts ................................................................. Total liabilities and capital a cc o u n ts ...................... .1 6.0 12.0 2.2 LIABILITIES 100.0 % 18.5 29.2 2.5 7.8 AND 100.0 % 17.2 13.8 ASSETS 100.0 % Cash and du e fro m b a n k s ....................................... O bligation s o f th e U. S. G o v e rn m e n t................... O bligation s o f S tate s and s u b d iv is io n s ............... O ther s e c u ritie s ........................................................... Total a s s e t s ........................................................................ 184 Table 111. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 30, 1967 BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS N u m b e r o f b a n k s w ith d e p o s it s o f R a tio s A ll banks $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 $500,000,000 to or $500,000,000 more Ratios of obligations of S ta tes and su b d ivisio n s to total a sse ts 372 275 281 202 205 70 36 21 473 359 432 659 992 552 263 158 214 92 145 287 1,003 962 459 256 80 29 45 169 680 850 577 233 7 10 14 47 212 310 192 79 6 1 4 20 88 159 90 36 1 251 1,083 4,716 4,292 2,101 470 604 13 21 66 89 75 39 51 23 57 302 446 341 97 196 66 218 1,005 1,293 864 203 239 66 252 1,207 1,239 486 92 76 55 255 1,151 874 261 30 37 16 101 477 221 47 6 3 3 64 223 90 20 2 2 183 700 2,086 4,478 4,312 1,557 201 38 60 75 91 61 22 7 49 156 304 462 345 128 18 58 257 724 1,262 1,105 407 75 24 151 540 1,192 1,064 392 55 10 60 339 942 916 362 34 2 8 64 285 368 138 6 2 5 28 127 184 54 4 3 10 98 198 45 1 2 19 71 9 1 192 1,386 2,794 5,079 2,480 1,004 582 5 10 33 87 76 57 86 29 140 248 484 301 136 124 49 433 800 1,424 727 310 145 41 376 775 1,326 609 194 97 48 286 621 1,091 422 140 55 16 88 184 372 145 54 12 1 37 85 151 87 34 9 3 16 45 125 79 55 32 3 19 34 24 22 3 12 102 129 84 24 1 1 2 40 32 23 3 Ratios of U. S. Governm ent obligations to total a sse ts L e s s t h a n 5 p e r c e n t .................................................. 5 t o 9.99 p e r c e n t .......................................................... 10 t o 19.99 p e r c e n t ..................................................... 20 t o 29.99 p e r c e n t ...................................................... 30 t o 39.99 p e r c e n t ...................................................... 40 t o 49.99 p e r c e n t ...................................................... 50 p e r c e n t o r m o r e .................................................... 6 73 231 38 7 3 42 54 2 1 Ratios of loans to total a sse ts L e ss th a n 20 t o 29.99 30 t o 39.99 40 t o 49.99 50 t o 59.99 60 t o 69.99 70 p e r c e n t 20 p e r c e n t ................................................ p e rc e n t . . .............................. p e r c e n t ..................................................... p e r c e n t ...................................................... p e r c e n t ...................................................... p e r c e n t ...................................................... o r m o r e .................................................... Ratios of cash and due from banks to total asse ts L e s s t h a n 5 p e r c e n t .................................................. 5.0 t o 7.49 p e r c e n t .... .............................. 7.5 t o 9.99 p e r c e n t ...................................................... 10.0 t o 14.99 p e r c e n t .................................................. 15.0 t o 19.99 p e r c e n t .................................................. 20.0 t o 24.99 p e r c e n t .................................................. 25.0 p e r c e n t o r m o r e ................................................. CORPORATION 158 53 39 44 38 15 4 3 INSURANCE 1,311 820 964 1,442 3,360 3,079 1,728 813 DEPOSIT Z e r o ...................................................................................... M o r e t h a n z e r o — le s s t h a n 1 p e r c e n t .......... 1.0 t o 2.49 p e r c e n t ....................................................... 2.5 t o 4.99 p e r c e n t ...................................................... 5.0 t o 9.99 p e r c e n t ...................................................... 10.0 t o 14.99 p e r c e n t ................................................. 15.0 t o 19.99 p e r c e n t ................................................... 20.0 p e r c e n t o r m o r e ................................................. FEDERAL Less than $1,000,000 80 167 676 986 1,010 496 219 254 88 155 639 1,003 815 480 146 92 69 125 552 849 636 338 64 30 14 38 178 286 208 111 26 10 7 17 90 120 96 53 17 4 2 6 53 97 88 73 27 9 Ratios of total cap ital accounts to total a sse ts other than cash and due from banks, U. S. G overnm ent obligations, and FHA and VA real estate loans Less th a n 7.5 p e rc e n t........................................ 7.5 to 9.99 p e rc e n t............................................... 10.0 to 12.49 p e rc e n t........................................... 12.5 to 14.99 p e rc e n t........................................... 15.0 to 19.99 p e rc e n t........................................... 20.0 to 24.99 p e rc e n t........................................... 25.0 to 34.99 p e rc e n t........................................... 35.0 pe rcent or m o re .......................................... 360 2,364 3,618 2,597 2,584 1,003 649 342 2 13 25 75 68 75 96 46 147 224 402 262 231 150 16 275 784 886 1,150 442 255 80 67 660 1,101 776 583 166 58 7 144 773 938 456 272 48 23 9 79 315 288 128 49 9 3 31 148 162 36 20 4 3 20 125 135 43 27 4 1 3 20 50 23 6 Ratios of total capital accounts to total a sse ts Less th a n 5 p e rc e n t........................................... 5 to 5.99 p e rc e n t.................................................. 6 to 6.99 p e rc e n t.................................................. 7 to 7.99 p e rc e n t.................................................. 8 to 8.99 p e rc e n t.................................................. 9 to 9.99 p e rc e n t.................................................. 10 to 11.99 p e rc e n t.............................................. 12 to 14.99 p e rc e n t.............................................. 15 percent or m o re ............................................ 303 1,048 2,248 2,766 2,296 1,657 1,778 934 487 1 4 19 28 26 86 86 104 2 11 80 170 204 213 333 282 167 27 111 405 655 774 620 782 365 149 64 288 672 805 625 440 358 125 41 113 352 633 673 421 236 156 56 23 54 161 222 192 126 68 34 11 3 28 65 110 114 50 19 13 5 12 52 95 105 49 25 13 4 3 7 27 33 19 10 3 N u m b e r o f b a n k s ................................................... 13,517 354 1,462 3,888 3,418 2,663 871 404 355 102 3 9 18 23 36 13 OF BANKS 15 35 178 280 338 266 147 203 LIABILITIES 6 2 16 32 58 69 52 119 AND 281 548 2,391 3,671 3,272 1,922 711 721 ASSETS Ratios of total dem and depo sits to total deposits Less th a n 25 p e rc e n t......................................... 25 to 29.99 p e rc e n t.............................................. 30 to 39.99 p e rc e n t.............................................. 40 to 49.99 p e rc e n t.............................................. 50 to 59.99 p e rc e n t.............................................. 60 to 69.99 p e rc e n t.............................................. 70 to 79.99 p e rc e n t.............................................. 80 p e rcent or m o re ............................................. Back figures, 1958-1966: See Annual Report for 1966, pp. 154-155, and earlier reports. 185 186 INCOME OF INSURED BANKS Table 112. Table 114. Table 117. Table 119. Table 120. Table 121. Table 122. CORPORATION Table 118. INSURANCE Table 116. DEPOSIT Table 115. FEDERAL Table 113. Income of insured commercial banks in the United States (States and other areas), 1959-1967 Ratios of income of insured commercial banks in the United States (States and other areas), 1959-1967 Sources and disposition of total income, insured commercial banks in the United States (States and other areas), 1959-1967 Income of insured commercial banks in the United States (States and other areas), 1967 Banks grouped by class of bank Income of insured commercial banks operating throughout 1967 in the United States (States and other areas) Banks grouped according to amount of deposits Ratios of income of insured commercial banks operating throughout 1967 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, 1967 Income of insured mutual savings banks, 1959-1967 Ratios of income of insured mutual savings banks, 1959-1967 Sources and disposition of total income, insured mutual savings banks, 1959-1967 Income of insured mutual savings banks in the United States (States and other areas), by State, 1967 The income data received and published by the Corporation relate to commercial and mutual savings banks insured by the Corporation. Commercial Banks 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. OF INSURED Sources o f 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. 187 Mutual savings banks INCOME Reports of income and dividends are submitted to the Federal supervisory agencies on either a cash or an accrual basis. Income data are included fo r all insured banks operating at the end of the respective years, unless indicated otherwise. In addition, appropriate adjustments have been made for banks in operation during part of the year but not at the end of the year. Data for 5 insured branches in Guam of 2 insured banks in California and Hawaii, for 7 insured branches in New York of 2 insured banks in Puerto Rico, fo r 16 insured branches in Puerto Rico and for 7 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 cate gories. 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 combined 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 be half of building employees, and recurring depreciation on banking house are now included under occupancy expense of bank prem ises. Other social security taxes are included with officer and em ployee 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" ^nd “ In terest and discount on borrowed money," respectively. In addition to other minor changes in classification, new desig nations 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 112. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1959-1967 188 (A m o u n ts in th o u sa n d s o f do llars) In c o m e ite m 1959 1960 1961 1962 1963 1964 1965 1966 1967 1 12,218,959 13,509,713 15,024,487 16,817,187 19,508,414 21,781,611 1,732,174 546,253 5,856,688 111,991 531,916 205,935 426,016 258,381 1,790,341 578,783 6,698,655 108,655 589,954 218,566 460,251 278,340 1,901,732 629,134 6,891,442 117,259 630,458 223,283 502,871 2173,425 2,093,207 759,030 7,578,200 139,645 681,243 237,446 543,916 2186,272 2,176,454 921,060 8,516,837 155,478 728,857 248,362 573,252 2189,413 2,240,389 1,085,334 9,612,079 173,159 781,405 280,289 629,694 2222,138 2,224,711 1,285,287 10,999,867 204,996 842,775 304,276 689,628 2265,647 2,317,794 1,531,517 13,042,757 243,643 915,049 354,036 756,130 2347,488 2,601,900 1,904,886 14,351,421 295,216 987,187 411,021 820,269 2409,711 C u rre n t operating ex p en ses—to ta l............................................. S alaries— o ffic e r s ........................................................................... S alaries and wages— o th e r e m p lo y e e s ................................... O ffic e r and em ployee b e n e fits ................................................. Fees paid to d ire c to rs and c o m m itte e s ................................. In te re s t on tim e and savings d e p o s its ................................... In te re s t on borrow ed m o n e y ..................................................... Taxes o th e r th a n on n e t in c o m e .............................................. R ecurring d e preciation on b a n k in g house, fu rn itu re and fix tu re s .......................................................................................... O ccupancy expense o f ba nk prem ises— n e t....................... F u rniture and e q u ip m e n t........................................................... O ther c u rre n t op e ra tin g e x p e n s e s ........................................... 6,264,207 6,932,820 7,440,492 8,589,177 9,714,980 10,897,460 12,486,120 14,561,852 16,553,642 892,657 1,684,159 (4) 51,866 1,580,250 78,350 252,763 966,643 1,831,323 (4) 56,292 1,785,086 87,385 285,801 31,028,869 31,869,961 377,494 59,794 2,106,645 37,997 (5) 31,098,146 31,975,406 419,098 63,236 2,845,283 64,325 (5) 31,183,264 32,101,111 457,033 67,469 3,464,308 106,517 (5) 31,284,140 32,234,922 490,732 72,176 4,088,061 127,277 (5) 31,392,765 32,369,259 525,692 77,093 5,070,781 189,519 (5) 31,526,300 32,569,442 598,768 83,791 6,259,472 301,768 (5) 31,674,955 32,862,941 667,345 92,074 7,379,863 266,476 (5) 191,424 (7) (8) 1,532,739 212,493 (7) (8) 1,707,797 (6) 510,691 224,852 91,224,189 (6) 555,670 267,885 91,300,128 (6) 608,462 311,518 •1,415,298 (6) 670,243 362,301 91,567,608 (6) 731,573 411,889 ®1,717,549 (6) 802,060 458,695 91,961,556 (6) 873,541 533,846 92,202,601 Net cu rren t operating e a rn in g s .................................................... 3,405,145 3,790,725 3,629,112 3,629,782 3,794,733 4,127,027 4,331,067 4,946,562 5,227,969 328,889 574,826 708,171 467,061 468,450 322,104 390,368 341,711 417,624 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 62,464 5,077 100,950 150,238 3,986 62,089 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 15,585 55,762 101,873 14,307 44,439 142,565 1,361,515 978,422 935,461 836,665 883,637 1,017,299 1,177,540 1,574,027 1,326,581 /44.290 \21,354 224,678 58,939 12,603 95,039 49,887 12,827 63,530 88,397 11,256 72,213 85,045 9,224 63,370 454,911 10,198 78,932 154,550 32,385 31,251 R ecoveries, tra n sfers from valuation re se rv es, and profits— to ta l................................................................................................... On secu ritie s: P rofits on secu ritie s sold or re d e e m e d .............................. R e c o v e rie s................................................................................... T ra n sfe rs fro m va lu a tio n re s e rv e s ....................................... On loans: R ecove ries.................................................................................... T ra n sfe rs fro m v a lu a tio n re s e rv e s ....................................... All o th e r ............................................................................................ L o sse s, charge-offs, and tra n sfe rs to valuation reserves— to ta l.................................................................................................. On secu ritie s: Losses on se cu ritie s s o ld ........................................................ C harge-offs prior to s a le .......................................................... T ra n sfe rs to valua tio n re s e rv e s ............................................ On loans: Losses and c h a rg e -o ffs ........................................................... T ransfe rs to v alua tio n re s e rv e s ............................................ All o th e r ............................................................................................ Net incom e before related t a x e s ................................................. 745,081 219,767 168,003 156,232 25,459 318,965 104,006 35,760 451,667 114,996 31,194 481,200 132,745 30,107 528,710 111,267 29,588 609,059 118,746 666,040 147,008 36,188 846,877 136,836 775,792 222,943 28,341 885,885 174,830 2,372,519 3,387,129 3,401,822 3,260,178 3,379,546 3,431,832 3,543,895 3,714,246 4,319,012 8,403 74,572 CORPORATION 11,069,604 INSURANCE 10,723,545 DEPOSIT 9,669,352 FEDERAL C u rre n t operating revenue—to ta l................................................ In te re s t on U. S. G o v e rn m e n t o b lig a tio n s ............................ In te re s t and d iv id e n d s on o th e r s e c u ritie s ........................... In te re s t and d is c o u n t on lo a n s ................................................. Service charges and fees on lo a n s .......................................... S ervice charges on d e p o s it a c c o u n ts ..................................... O ther charges, c o m m is s io n s , fees, e tc .................................... T ru s t d e p a rtm e n t.......................................................................... O ther c u rre n t o p e ra tin g re v e n u e .............................................. Taxes on net incom e—to ta l............................................................ F e d e ra l............................................................................................. S ta te .................................................................................................. 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 1,029,906 911,585 118,321 1,177,154 1,020,988 156,166 1,488,061 2,002,732 1,995,720 2,003,796 2,152,763 2,283,629 2,514,733 2,684,340 3,141,858 776,386 774,167 831,546 829,522 895,053 893,230 941,189 939,426 993,374 990,039 1,088,310 1,062,561 1,202,349 1,146,186 1,307,387 1,240,048 1,426,202 1,342,538 2,219 2,024 1,823 1,763 3,335 25,749 56,163 67,339 83,664 Net additions to cap ital from in co m e ........................................ 711,675 1,171,186 1,100,667 1,062,607 1,159,389 1,195,319 1,312,384 1,376,953 1,715,656 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 3,300 143,859 5,638 168,680 207,061 122,315 47,716 264,405 22,463 249,500 16,305 238,825 17,314 323,475 43,683 394,181 25,761 429,490 60,282 545,647 29,072 601,194 M em oranda R ecoveries c re d ite d to v a lu a tio n reserves (n o t included in recoveries above): On s e c u ritie s .................................................................................. On lo a n s ........................................................................................... Losses charged to v a lu a tio n reserves (n o t included in losses above): On s e c u ritie s .................................................................................... On lo a n s ............................................................................................. Liab ilities and cap ita l—to ta l........................................................... 237,577,389 246,776,722 254,198,199 274,220,778 298,940,778 325,490,626 357,214,409 387,113,663 421,128,433 Total d e p o s its .................................................................................. 213,428,979 220,099,028 225,214,703 243,319,550 264,069,489 287,988,560 315,643,533 340,336,714 368,906,501 Demand deposits ...................................................................................................................... 146,599,745 150,451,481 147,556,175 153,849,494 159,561,973 168,382,122 178,089,360 185,336,407 194,982,924 Time and savings deposits ................................................................................................... 66,829,334 69,647,547 77,658,528 89,470,056 104,507,516 119,606,438 137,554,173 155,000,307 173,923,577 5,410,250 18,738,160 6,712,522 19,965,172 7,694,509 21,288,987 8,197,420 22,703,808 10,587,389 24,283,900 11,110,692 26,391,374 12,750,015 28,820,861 15,926,263 30,850,686 19,345,258 32,876,674 N u m b e r o f e m ployees (in c lu d in g b u ild in g em ployees), D ecem ber 30: A ctive o ffic e r s .................................................................................. O ther e m p lo y e e s ............................................................................. 98,934 481,666 103,211 506,596 107,279 526,101 112,458 543,695 117,147 531,820 124,351 578,307 130,486 601,677 138,206 639,155 145,346 669,691 N u m b e r o f ba nks, D ecem ber 30................................................... 13,114 13,126 13,115 13,124 13,291 13,493 13,547 13,541 13,517 Note: Due to rounding differences, data for 1959 may not add to totals. 189 1 The figures for 1967 may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences in rounding techniques. 2 Excludes rentals from bank premises; included with "Occupancy expense of bank premises— net.” 3 Excludes compensation of building officers and other employees; included with "Occupancy expense of bank premises— net." 4 Included w ith “ Other current operating expenses", except Social Security taxes paid on bank’ s account which were included with ‘ ‘Taxes other than on net income " 5 Included with “ Officer employee benefits", “ Occupancy expense of bank premises— net", and “ Other current operating expenses.” 6 Included w ith “ Occupancy expense of bank premises— net” , and “ Furniture and equipment.” 7 Included w ith “ Taxes other than on net income” , “ Recurring depreciation on banking house, furniture and fixtures", and “ Other current operating expenses.’’ 8 Included w ith “ Recurring depreciation on banking house, furniture and fixtures” , and “ Other current operating expenses.” 9 Not comparable with amounts reported for previous years; see footnotes 4, 5, 7, and 8. 10 For 1959 through 1960 and for 1964 through 1967, 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 w ith 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. BANKS B orrow ings and o th e r lia b ilitie s ................................................. Total ca p ita l a c c o u n ts ................................................................... OF INSURED A verage a sse ts and liabilities 10 A ssets—to ta l.......................................................................................... 237,577,389 246,776,722 254,198,199 274,220,778 298,940,778 325,490,626 357,214,409 387,113,663 421,128,433 Cash and due fro m b a n k s ........................................................... 46,881,654 49,317,003 46,613,211 49,438,670 50,997,566 54,449,343 59,013,596 62,867,398 70,248,679 U nited S tates G ove rnm ent o b lig a tio n s ................................... 61,878,548 57,773,429 61,792,135 64,519,914 64,058,431 61,439,390 59,419,551 56,088,649 57,357,584 O ther s e c u ritie s ............................................................................... 20,284,525 20,092,632 21,660,321 25,761,084 31,421,875 36,360,062 41,540,772 47,054,812 55,213,293 Loans and d is c o u n ts ..................................................................... 103,872,351 114,275,450 117,969,985 127,789,110 145,028,233 164,816,703 187,661,591 210,240,170 226,145,245 6,162,547 6,712,000 7,434,673 8,425,128 9,578,899 10,862,634 12,163,632 5,318,208 4,660,311 All o th e r a s s e ts ................................................................................ INCOME Net incom e after related t a x e s .................................................... D ividends and in terest on cap ita l—to ta l.................................. Cash d iv id e n d s de cla red on co m m o n s to c k ........................ D ivide nds declared on pre fe rre d sto ck and in te re st on ca p ita l no tes an d d e b e n tu re s ............................................... In c o m e ite m 1959 1960 1961 1962 A m o u n ts p e r $100 o f c u r re n t o p e ra tin g re ve n u e C u rr e n t o p e ra tin g re venue -— t o t a l............................................................................................ In te re s t on U. S. G o ve rn m e n t o b lig a tio n s ....................................................................... In te re s t and d iv id e n d s on o th e r s e c u ritie s ..................................................................... Inco m e on lo a n s .......................................................................................................................... Service charges on d e p o sit a c c o u n ts ................................................................................... O ther charges, com m ission s, fees, e tc ............................................................................. O ther c u rre n t o p e ra tin g re v e n u e ............................................................................................ $100.00 17.91 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 $100.00 17.13 C u rr e n t o p e ra tin g expenses— t o t a l.......................................................................................... Salaries, wages, and fe e s ................. ................................................................................. O fficer and em ployee b e n e fits ................................................................................................ In te re s t on tim e and savings d e p o s its ................................................................................. Taxes o th e r th a n on ne t in c o m e ............................................................................................ R ecurring d e p re c ia tio n on b a n k in g house, fu rn itu re and fix tu re s ............................... O ccup ancy expense o f b a nk prem ises— n e t...................................................................... F u rniture and e q u ip m e n t.......................................................................................................... O ther c u rre n t op e ra tin g e x p e n s e s ......................................................................................... 64.78 27.19 (3) 16.34 2.61 1.98 (6) (7) 16.66 64.65 26.62 (3) 16.65 2.66 70.29 225.67 3.43 23.28 (4) (5) 4.55 2.19 m.17 71.91 224.81 3.38 25.64 (? (5) 4.50 2.31 811.27 72.53 223.90 3.27 27.21 (4) (5) 4.46 2.41 811.28 74.25 222.83 3.13 30.15 (4) (5) 4.35 2.45 811.34 220.99 1.98 (6) (7) 16.74 67.22 226.73 3.41 19.03 (4) (5) 4.61 2.03 811.41 3.07 32.09 (4) (5) 4.11 2.35 812.03 76.00 221.26 3.06 33.88 (4) C5) 4.01 2.45 811.34 N et c u r re n t o p e ra tin g e a rn in g s ................................................................................................ 35.22 35.35 32.78 29.71 28.09 27.47 25.75 25.36 24.00 A m o u n ts p e r $100 o f to ta l assets 9 C urrent o p e ra tin g revenue— t o t a l...................................................... .................................. C urrent o p e ra tin g expenses— t o t a l........................................................................................ N et c u rre n t op e ra tin g e a rn in g s ............................................................................................... Recoveries, tra n s fe rs fro m va lu a tio n reserves, and pro fits — to t a l............................... Losses, cha rge-offs, and tra n s fe rs to va lu a tio n reserves— to t a l................................... N et incom e before related ta x e s ............................................................................................ N et incom e a fte r related ta x e s ............................................................................................... 4.07 2.64 1.43 .14 .57 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 4.71 3.50 5.17 3.93 1.24 .32 1.05 .70 .33 .99 .70 5.04 3.76 1.28 .09 .41 .96 .69 18.99 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 15.64 16.03 112, p. 189, Nos. 2 -1 0 . 4.72 7.94 4.14 3.80 5.96 3.10 1967 $100.00 $100.00 $100.00 13.23 11.88 11.95 7.64 8.74 7.85 68.11 67.24 66.63 5.01 4.69 4.53 1.81 1.81 1.89 15.68 l 5.66 *5.65 1.21 .11 74.64 .10 .31 1.03 .75 1.22 4.09 4.77 8.86 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 5.10 12.04 3.34 8.70 4.24 4.46 15.90 1.27 4.03 13.14 3.58 9.56 4.34 5.22 1.11 5.75 2.80 2.69 .36 2.36 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 6.32 4.13 3.25 .49 4.04 6.48 4.54 3.45 .51 4.24 13,114 13,126 13,115 13,124 13,291 13,493 13,547 13,541 13,517 CORPORATION Note: For footnotes, see Table 12.66 2.88 4.90 16.97 6.94 10.03 4.16 5.87 .10 1966 INSURANCE N um b er o f banks, D ecem ber 30..................................................................................... 18.17 1.76 7.27 $100.00 14.91 7.22 65.13 5.20 1.87 *5.67 1965 DEPOSIT S pecial ra tio s 9 Inco m e on loans per $100 o f lo a n s ......................................................................................... Inco m e on U. S. G ove rnm ent o b lig a tio n s per $100 o f U. S. G overnm ent ob ligatio ns. Inco m e on o th e r secu ritie s per $100 o f o th e r s e c u ritie s .................................................. Service charges per $100 o f d e m and d e p o s its ................................................................... In te re s t paid per $100 o f tim e and savings d e p o s its ........................................................ .63 $100.00 16.11 6.82 64.19 63.16 5.58 5.39 1.94 1.84 *5.65 *5.98 6.21 1964 FEDERAL A m o u n ts p e r $100 o f to ta l c a p ita l a cco u n ts 9 Net c u rre n t o p e ra tin g e a rn in g s ............................................................................................... Recoveries, tra n s fe rs fro m v alua tio n reserves, and p ro fits— to t a l............................... Losses, charge-offs, and tra n s fe rs to va lu a tio n reserves— to t a l................................... N et incom e before related ta x e s ........................................................................................ Taxes on net in c o m e .............................................................................................................. N et incom e a fte r related ta x e s ............................................................................................... Cash d iv id e n d s d e c la re d ........................................................................................................... N et a d d itio n s to capital fro m in c o m e ................................................................................... 1.00 2.02 x6.11 1963 190 Table 113. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1959-1967 Table 114. SOURCES AND DISPOSITION OF TOTAL INCOME, INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1959-1967 (A m o u n ts in m illions o f do llars) Inco m e item 1959 1960 1961 1962 1963 1964 1965 1966 1967 Amount 11,298 11,778 12,686 13,978 15,347 17,208 19,850 22,199 5,969 1,732 546 532 *890 329 6,807 1,791 579 590 *957 575 7,009 1,902 629 630 900 708 7,718 2,093 759 681 968 467 8,672 2,176 921 729 468 9,785 2,240 1,086 781 1,132 322 11,205 2,225 1,285 843 1,260 390 13,286 2,318 1,532 915 1,457 342 14,647 2,602 1,905 987 1,641 418 D isposition Salaries and w ages 2 .................................................................................................................... In te re s t on d e p o s its ................................................................................................................... O ther c u rre n t e x p e n s e s ............................................................................................................. C harge-offs, e tc ........................................................................................................................... Inco m e ta x e s ................................................................................................................................ D ivide nds and in te re s t on c a p ita l.......................................................................................... A d d itio n s to ca p ita l a c c o u n ts .................................................................................................. 2,629 1,580 32,055 1,362 884 776 712 2,854 1,785 32,293 979 1,384 832 1,171 3,336 2,107 1,998 935 1,406 895 3,556 2,845 2,188 837 1,256 941 1,063 3,808 3,464 2,442 884 1,227 993 1,159 4,082 4,088 2,728 1,017 1,148 1,088 1,195 4,365 5,071 3,051 1,178 1,029 4,778 6,259 3,524 1,574 1,030 1,307 1,377 5,297 7,380 3,876 1,327 1,177 1,426 1,716 1,101 1,011 1,202 1,312 Percentage distribution Total in co m e ...................................................................................... ......................... 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 59.7 17.3 5.5 5.3 8.9 3.3 60.2 15.9 5.1 5.2 8.5 5.1 59.5 16.2 5.3 5.4 7.6 60.8 16.5 62.0 15.6 5.4 7.6 3.7 5.2 7.2 3.4 Disposition Salaries an d w a g e s ..................................................................................................................... In te re s t on d e p o s its ................................................................................................................... O ther c u rre n t e x p e n s e s ............................................................................................................. C harge-offs, e tc ............................................................................................................................ Inco m e ta x e s ................................................................................................................................ D ivide nds and in te re s t on c a p ita l.......................................................................................... A d d itio n s to c ap ita l a c c o u n ts .................................................................................................. 20.6 13.6 8.8 26.3 15.8 25.3 15.8 20.3 28.3 17.9 17.0 7.9 11.9 7.6 9.4 28.0 22.4 17.2 7.4 8.4 7.8 7.1 8.6 12.2 7.4 10.4 6.0 6.0 6.6 10.0 63.8 14.6 7.1 5.1 7.3 66.9 11.7 7.7 4.6 7.4 1.7 66.0 11.7 8.6 2.1 65.1 12.9 7.5 4.9 7.3 2.3 27.2 24.8 17.5 6.3 26.6 26.6 17.8 25.4 29.5 17.7 24.0 31.5 17.7 23.9 33.2 17.5 7.1 8.3 7.5 7.1 7.8 7.0 7.6 7.0 5.3 6.4 7.7 6.6 8.8 6.6 6.8 6.0 8.0 5.2 6.6 4.4 7.4 1.9 6.0 191 1 For description of changes in report form made in 1961, see p. 187. Rentals from bank premises are included in "other current income” in 1959-1960, and in net "other current expenses" in 1961XJO/. 2 Includes in each year fees paid to directors and committees. In 1961-1967 includes officer and employee benefits; these were included in “ other current expenses” in 1959-1960. In 1961-1967 excludes salaries, wages, and benefits of officers and employees in building department which are included in “ other current expenses.” 3 Not comparable with amounts shown in 1961-1967; see footnotes 1 and 2. Note: Due to rounding differences, components may not add to totals. BANKS S o u rces L o a n s ............................................................................................................................................... U. S. G ove rn m e n t o b lig a tio n s ................................................................................................. O ther s e c u ritie s ............................................................................................................................ Service cha rges on d e p o s its .................................................................................................... O ther c u rre n t in c o m e ................................................................................................................. Recoveries, e tc ............................................................................................................................. OF INSURED 9,998 INCOME ................. S o u rce s L o a n s ............................................................................................................................................... U. S. G ove rn m e n t o b lig a tio n s ................................................................................................. O ther s e c u ritie s ........................................................................................................................... Service cha rges on d e p o s its .................................................................................................... O ther c u rre n t in c o m e ................................................................................................................. Recoveries, e tc ............................................................................................................................. Total in co m e ....................................................................... 192 Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1967 BANKS GROUPED BY CLASS OF BANK (A m o u n ts in th o u sa n d s o f do llars) M e m bers F.R. S ystem In co m e item Total N ational State Not m e m bers F.R. S ystem O pe rating th ro u g h o u t th e year O perating less tha n fu ll year 3,933,121 667,926 343,514 2,462,643 56,433 230,038 95,653 35,631 41,283 21,725,712 2,593,756 1,899,401 14,316,233 294,176 985,180 410,407 817,992 408,567 55,899 8,144 5,485 35,188 1,040 2,007 614 2,277 1,144 C u rrent operating exp en ses—to ta l........................................................................... Salaries— o ffic e r s ........................................................................................................ Salaries and w ages— o th e r e m p lo y e e s ................................................................ O fficer and em ployee b e n e fits ............................................................................... Fees paid to dire ctors and c o m m itte e s ............................................................... In te re s t on tim e and savings d e p o s its ................................................................ In te re s t on borrow ed m o n e y ................................................................................... O ccupancy expense o f bank prem ises— n e t..................................................... Furniture and e q u ip m e n t......................................................................................... O ther c u rre n t op e ra tin g e x p e n s e s ........................................................................ 16,553,642 1,674,955 2,862,941 667,345 92,074 7,379,863 266,476 873,541 533,846 2,202,601 9,649,628 901,887 1,673,178 391,406 43,483 4,416,753 153,860 489,588 313,345 1,266,128 3,849,403 355,312 715,439 170,952 13,542 1,672,927 105,179 219,198 116,334 480,520 3,054,611 417,756 474,324 104,987 35,049 1,290,183 7,437 164,755 104,167 455,953 16,508,575 1,670,204 2,855,091 664,970 91,882 7,362,516 265,861 870,934 531,886 2,195,231 45,067 4,751 7,850 2,375 192 17,347 615 2,607 1,960 7,370 Net cu rren t operating e a rn in g s .................................................................................. 5,227,969 3,002,228 1,347,231 878,510 5,217,137 10,832 Recoveries, tra n sfe rs from valuation re se rv es, and profits—total.............. On secu ritie s: P ro fits on secu ritie s sold or re d e e m e d ............................................................ R e co ve rie s................................................................................................................. T ra n s fe rs fro m v a lu a tio n re s e rv e s ........... .... On loans: R e c o v e rie s ................................................................................................................. T ra n s fe rs fro m v a lu a tio n re s e rv e s ..................................................................... All o th e r ......................................................................................................................... 417,624 252,755 98,755 66,114 416,272 1,352 150,238 3,986 62,089 91,305 2,566 36,703 29,572 176 22,454 29,361 1,244 2,932 149,858 3,978 62,089 380 14,307 44,439 142,565 6,700 28,715 86,766 1,625 5,619 39,309 5,982 10,105 16,490 14,269 44,420 141,658 38 19 907 Lo sse s, charge-offs, and tra n sfe rs to valuation rese rv es—to tal................... On secu ritie s: Losses on secu ritie s s o ld ..................................................................................... C harge-offs prior to s a le ..................................................................................... T ra n sfe rs to valu a tio n re s e rv e s ........................................................................ On loans: Losses and c h a rg e -o ffs ......................................................................................... T ra n s fe rs to v a lu a tio n re s e rv e s .......................................................................... All o th e r ......................................................................................................................... 1,326,581 770,868 317,409 238,304 1,319,426 7,155 154,550 8,403 74,572 76,039 4,472 52,165 56,463 906 151,784 8,403 74,572 2,766 11,686 22,048 3,025 10,721 28,341 885,885 174,830 13,564 519,200 105,428 1,594 207,103 39,657 13,183 159,582 29,745 28,338 883,194 173,135 3 2,691 1,695 Net incom e before related ta x e s ................................................................................ 4,319,012 2,484,115 1,128,577 706,320 4,313,983 5,029 8 CORPORATION 5,196,634 532,744 439,134 3,430,284 69,220 180,165 85,187 349,260 110,640 INSURANCE 12,651,856 1,401,230 1,122,238 8,458,494 169,563 576,984 230,181 435,378 257,788 DEPOSIT 21,781,611 2,601,900 1,904,886 14,351,421 295,216 987,187 411,021 820,269 409,711 FEDERAL C u rre n t operating revenue—to ta l.............................................................................. In te re s t on U. S. G ove rnm ent o b lig a tio n s .......................................................... In te re s t and d iv id e n d s on o th e r s e c u ritie s ........................................................ In te re s t and d is c o u n t on lo a n s .............................................................................. Service charges and fees on lo a n s ....................................................................... Service charges on d e p o s it a c c o u n ts .................................................................. O ther charges, com m ission s, fees, e tc ................................................................ T ru st d e p a rtm e n t........................................................................................................ O ther c u rre n t o p e ra tin g re v e n u e ........................................................................... T ax es on net incom e—to ta l.......................................................................................... F e d e r a l................................................................................................................................................... S t a t e ........................................................................................................................................................ 1,177,154 1,020,988 156,166 680,154 594,209 85,945 Net incom e after related t a x e s ................................................................................... 3,141,858 D ividends and in terest on cap ital—to ta l................................................................ 1,426,202 1,342,538 C a s h d iv id e n d s d e c la r e d o n c o m m o n s t o c k ................................................................. D iv id e n d s d e c la r e d o n p r e f e r r e d s t o c k a n d in t e r e s t o n c a p it a l n o t e s a n d d e b e n t u r e s ...................................................................................................................................... 325,190 269,971 55,219 171,810 156,808 15,002 1,175,919 1,019,796 156,123 1,235 1,192 43 1,803,961 803,387 534,510 3,138,064 3,794 842,490 794,308 404,345 374,914 179,367 173,316 1,422,080 1,338,416 4.122 4.122 6,051 83,664 355,143 1,715,984 328 144,868 637,511 75,808 369,780 26,357 144,622 42,703 123,109 144,408 635,491 460 2,020 5,638 168,680 3,839 105,914 771 29,899 1,028 32,867 5,638 168,363 317 29,072 601,194 21,875 363,169 1,291 123,053 5,906 114,972 29,072 599,725 1,469 873,541 186,244 1,059,785 3,574 103,430 12,989 189,818 128,505 177,785 295,006 148,678 489,588 121,929 611,517 2,175 62,132 7,981 115,361 78,470 100,445 156,241 88,712 219,198 46,160 265,358 949 26,155 3,939 42,433 26,528 42.457 87,439 35.458 164,755 18,155 182,910 450 15,143 1,069 32,024 23.507 34,883 51,326 24.508 870,934 185,088 1,056,022 3,571 103,077 12,940 189,517 127,984 177,305 293,554 148,074 2,607 1,156 3,763 3 353 49 301 521 480 1,452 604 N u m b e r o f b u il d in g e m p lo y e e s , D e c e m b e r 30: O f f i c e r s ................................................................................................................................................ O th e r e m p lo y e e s ........................................................................................................................... 478 32,180 274 17,730 109 6,634 95 7,816 478 32,080 100 N u m b e r o f b a n k s , D e c e m b e r 3 0 .................................................................................... 13,517 4,758 1,312 7,447 13,419 98 N u m b e r o f b a n k in g e m p lo y e e s ( e x c lu s iv e o f b u ild in g e m p lo y e e s ), D e c e m b e r 30: A c t iv e o f f i c e r s .................................................................................................................................... O th e r e m p lo y e e s ............................................................................................................................. Memoranda R e c o v e r ie s c r e d it e d t o v a lu a t io n r e s e r v e s ( n o t in c lu d e d in re c o v e r ie s a b o v e ): O n s e c u r i t i e s ................................................................................................................................ O n l o a n s ................................................................................................................................................. L o s s e s c h a r g e d t o v a lu a t io n r e s e r v e s ( n o t in c lu d e d in lo s s e s a b o v e ): O n s e c u r i t i e s ....................................................................................................................... O n l o a n s ................................................................................................................................................ O ccupancy expense of bank p rem ises O ccupancy expense of bank p re m ises, net—total............................................. R e n ta l a n d o t h e r i n c o m e ............................................................................................................. O ccupancy expense of bank p rem ises, gross—total........................................ S a la r ie s — b u il d in g d e p a r t m e n t o f f i c e r s ......................................................................... S a la rie s a n d w a g e s — b u il d in g d e p a r t m e n t e m p lo y e e s .......................................... B u ild in g d e p a r t m e n t p e r s o n n e l b e n e f i t s ..................................................................... R e c u r r in g d e p r e c i a t i o n ............................................................................................................. M a in t e n a n c e a n d r e p a i r s ................................................................................................... I n s u r a n c e a n d u t i l i t i e s .............................................................................................................. R e n ts p a i d ........................................................................................................................................... T a x e s ....................................................................................................................................................... BANKS 29,431 399,042 OF INSURED 48,182 961,471 INCOME 83,664 1,715,656 Net additions to capital from in co m e...................................................................... These figures may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences in rounding techniques. Back figures, 1934-1966: See the Annual Report for 1966 pp. 162-163, and earlier reports. 193 Table 116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1967 IN THE UNITED STATES (STATES AND OTHER AREAS) 194 B A N K S G R O U P E D A C C O R D IN G T O A M O U N T O F D E P O S IT S ( A m o u n t s in t h o u s a n d s o f d o lla r s ) B a n k s w i th d e p o s it s o f — 2 14,544 3,905 675 8,305 91 624 542 205 197 125,778 32,395 7,315 74,601 532 5,399 4,339 45 1,152 S a la r ie s — o f f i c e r s .................................................................... S a la r ie s a n d w a g e s — o t h e r e m p l o y e e s .................... O f f ic e r a n d e m p lo y e e b e n e f i t s ...................................... F e e s p a id t o d ir e c t o r s a n d c o m m i t t e e s .................. I n t e r e s t o n t i m e a n d s a v in g s d e p o s i t s .................... I n t e r e s t o n b o r r o w e d m o n e y .......................................... O c c u p a n c y e x p e n s e o f b a n k p r e m is e s — n e t . . . . F u r n it u r e a n d e q u i p m e n t .................................................. O th e r c u r r e n t o p e r a t in g e x p e n s e s .............................. 16,508,575 1,670,204 2,855,091 664,970 91,882 7,362,516 265,861 870,934 531,886 2,195,231 10,881 3,898 1,163 351 327 2,545 11 637 278 1,671 Net cu rrent operating e a rn in g s................................. 5,217,137 R ecoveries, tra n sfers from valuation rese rv es, and profits—to tal..................................................... C u rrent operating exp en ses—to ta l.......................... O n s e c u r it ie s : P r o f it s o n s e c u r it ie s s o ld o r r e d e e m e d ............... R e c o v e r ie s .............................................................................. T r a n s f e r s f r o m v a lu a t io n r e s e r v e s ....................... O n lo a n s : R e c o v e r ie s .............................................................................. T r a n s f e r s f r o m v a lu a t io n r e s e r v e s .......................... A ll o t h e r ......................................................................................... L o sse s, charge-offs, and tra n sfe rs to valuation re se rv e s—to ta l.......................................................... O n s e c u r it ie s : L o s s e s o n s e c u r it ie s s o l d ............................................. C h a r g e - o f f s p r io r t o s a l e ................................................ T r a n s f e r s t o v a lu a t io n r e s e r v e s ................................ O n lo a n s : L o s s e s a n d c h a r g e - o f f s .................................................. T r a n s f e r s t o v a lu a t io n r e s e r v e s ............................... A ll o t h e r ......................................................................................... Net incom e before related t a x e s ............................... $2,000,000 to $5,000,000 $5,000,000 to $10,000,000 $10,000,000 to $25,000,000 740,425 167,076 52,171 451,378 4,354 36,569 21,945 583 6,349 1,368,613 258,867 117,870 853,656 10,701 80,870 30,622 2,300 13,727 2,315,326 377,621 217,315 1,460,941 25,225 149,777 43,558 16,857 24,032 1,670,376 241,683 160,145 1,067,943 21,804 101,168 29,048 29,571 19,014 1,536,438 208,727 148,197 985,085 25,468 81,868 28,317 36,936 21,840 4,044,783 453,580 362,541 2,660,910 64,642 194,572 76,040 176,270 56,228 9,909,429 849,902 833,172 6,753,414 141,359 334,333 175,996 555,225 266,028 94,091 26,344 10,136 2,854 2,499 31,619 136 4,314 2,431 13,758 564,106 116,223 70,006 17,128 12,266 222,691 703 27,076 16,329 81,684 1,052,269 162,204 150,778 34,051 17,330 442,928 1,655 54,460 32,775 156,088 1,796,353 226,596 277,221 60,847 20,842 780,495 3,146 95,598 57,999 273,609 1,301,188 147,867 214,467 46,889 10,546 564,511 4 642 69,856 45,148 197,262 1,210,252 127,953 201,200 44,852 7,176 534,447 5,838 68,295 46,329 174,162 3,074,033 299,869 579,855 134,308 11,655 1,282,000 31,354 168,351 123,993 442,648 7,405,402 559,250 1,350,265 323,690 9,241 3,501,280 218,376 382,347 206,604 854,349 3,663 31,687 176,319 316,344 518,973 369,188 326,186 970,750 2,504,027 416,272 559 2,133 13,067 22,816 40,144 31,537 31,389 76,451 198,176 149,858 3,978 62,089 317 9 463 36 20 3,707 181 571 9,426 618 419 17,194 1,168 3,681 13,802 498 3,434 13,910 423 2,381 37,890 327 9,580 53,149 718 42,003 14,269 44,420 141,658 197 4 32 1,123 200 291 4,153 1,803 2,652 3,807 3,062 5,484 2,132 5,773 10,196 780 2,842 10,181 397 5,534 8,744 918 7,956 19,780 762 17,246 84,298 1,319,426 696 6,681 46,234 90,483 146,615 101,943 88,793 218,664 619,317 151,784 8,403 74,572 15 6 4 451 53 71 4,310 884 800 8,957 1,777 1,956 13,673 2,651 4,599 11,370 783 5,543 8,691 341 4,717 22,851 516 12,979 81,466 1,392 43,903 28,338 883,194 173,135 342 259 70 2,001 3,225 880 8,158 26.515 5,567 8,218 58,373 11,202 6,009 100,137 19,546 1,692 70,354 12,201 886 61,486 12,672 809 150,775 30,734 223 412,070 80,263 4,313,983 3,526 27,139 143,152 248,677 412,502 298,782 268,782 828,537 2,082,886 $25,000,000 $50,000,000 $100,000,000 $500,000,000 to to to or $50,000,000 $100,000,000 $500,000,000 more CORPORATION 21,725,712 2,593,756 1,899,401 14,316,233 294,176 985,180 410,407 817,992 408,567 I n t e r e s t o n U . S . G o v e r n m e n t o b l i g a t i o n s ............ I n t e r e s t a n d d iv id e n d s o n o t h e r s e c u r i t i e s .......... I n t e r e s t a n d d is c o u n t o n l o a n s .................................... S e r v ic e c h a r g e s a n d f e e s o n l o a n s ............................ S e r v ic e c h a r g e s o n d e p o s i t a c c o u n t s ....................... O th e r c h a r g e s , c o m m i s s io n s , f e e s , e t c .................... T r u s t d e p a r t m e n t ................................................................... O th e r c u r r e n t o p e r a t in g r e v e n u e ................................. $1,000,000 to $2,000,000 INSURANCE C u rre n t operating revenue—to ta l............................. Less than $1,000,000 DEPOSIT banks 1 FEDERAL In c o m e it e m 5,532 4,968 564 32,557 29,723 2,834 59,616 55,070 4,546 Net incom e after related t a x e s .................................. 3,138,064 2,815 21,607 110,595 D ividends and in terest on cap ital—to ta l............... Cash divid e n d s declared on c o m m o n s to ck. . . . D ivide nds declared on preferred stock and in te re s t on cap ita l notes and d e b e n tu re s ....... 1,422,080 1,338,416 830 830 7,232 7,221 33,950 33,900 11 50 275 1,141 1,531 2,613 12,043 66,000 Net additions to capital from in co m e ..................... 1,715,984 1,985 14,375 76,645 128,063 203,501 139,818 124,158 327,827 699,612 N u m b e r o f b a n k in g em ployees (exclusive o f b u ild in g em ployees), D ecem ber 30: A ctive o ffic e rs .............................................................. O th er e m p lo y e e s ......................................................... 144,408 635,491 784 451 4,076 3,478 13,817 20,131 16,954 40,681 21,441 73,028 54,060 12,688 10,323 48,614 23,519 130,911 40,806 264,137 5,638 168,363 46 1,190 1 26 6,869 180 15,074 722 25,364 310 14,535 727 13,251 1,988 29,799 1,684 62,235 29,072 599,725 158 2,603 1 184 19,068 163 43,949 1,029 77,908 617 51,491 2,174 48,858 2,976 110,133 21,928 245,557 870,934 185,088 637 21 4,314 301 27,076 1,978 54,460 4,027 95,598 10,184 69,856 10,737 68,295 15,903 168,351 52,035 382,347 89,902 1,056,022 3,571 658 47 4,615 77 29,054 58,487 105,782 80,593 84,198 55Salaries—39b u ild in g d54e p a rtm e n89 t o ffic e rs 189 220,386 878 472,249 2,143 103,077 12,940 189,517 127,984 177,305 293,554 148,074 13 316 59 77 297 73 92 798 635 1,785 397 605 N um b er o f b u ild in g em ployees, D ecem ber 30: O ffic e rs ........................................................................... O ther e m p lo y e e s ......................................................... 478 32,080 60 609 12 44 2,901 24 3,406 N um b er o f banks, D ecem ber 30................................ 13,419 327 1,424 3,866 3,412 M emoranda Recoveries cre d ite d to valua tio n reserves (n o t included in recoveries above): On s e c u ritie s ................................................................ On lo a n s ........................................................................ Losses charged to valua tio n reserves (n ot in cluded in losses above): On s e c u ritie s ................................................................ On lo a n s ........................................................................ O ccupancy expense of bank p rem ises O ccupancy expense of bank p rem ises, net— tota1............................................................................... Rental and o th e r in c o m e ............................................. O ccupancy expense of bank p rem ises, gross— to tal........................................ .......... ............... Salaries and w ages— b u ild in g d e p a rtm e n t e m p lo y e e s ................................................................. B u ild in g d e p a rtm e n t personnel b e n e fits . .. ............................................. M a in te n a n ce and re p a irs ......................................... Insu ran ce and u tilitie s .............................................. R ents p a id .................................................................... T a x e s .............................................................................. 83,664 2 104,875 97,907 6,968 77,037 71,954 5,083 189,061 307,627 221,745 60,998 60,723 104,126 102,985 81,927 80,396 2,861 5,969 10,640 51 180 817 6,273 R ecurring 12,514 d e p re22,023 c ia tio n 3,566 7,212 13,348 7,810 12,739 20,033 3,647 10,340 22,081 4,791 9,494 16,786 231,082 68,376 213,429 63,611 4,76517.653 596,133 482,473 113,660 200,406 597,455 1,486,753 76,248 73,635 269,628 257,585 787.141 721.141 8,454 884 15,173 10,659 13,736 18,700 12,898 8,478 949 15,055 11,412 12,561 23,723 11,831 25,114 3,387 38,192 26,980 32,899 63,284 29,652 41,232 6,670 79,430 54,095 75,445 151,309 61,925 43 4,041 28 2,754 25 2,720 115 7,027 187 8,562 2,662 871 403 353 101 195 1 This group of banks is the same as the group shown in Table 115 under the heading "Operating throughout the year” . 2 For asset and lia b ility data, see Table 109, p. 181. 3 The figures in this table may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences in rounding techniques. Back figures, 1941-1966: See the A nnual Report for 1966, pp. 164-165, and earlier reports. BANKS 711 661 50 OF INSURED 1,175,919 1,019,796 156,123 INCOME Taxes on net incom e—to ta l......................................... F e d e ra l........................................................................... S ta te ............................................................................... 196 Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1967 IN THE UNITED STATES (STATES AND OTHER AREAS) ’ BANKS GROUPED ACCORDING TO A M O U N T OF DEPOSITS Banks w ith de posits o f — 2 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 $50,000,000 100.00 14.47 9.59 65.24 6.06 1.74 2.91 100.00 13.59 9.65 65.77 5.33 1.84 3.83 100.00 100.00 25.76 5.82 59.73 4.29 3.45 .95 100.00 22.56 7.05 61.55 4.94 2.96 .94 100.00 18.91 8.61 63.16 5.91 2.24 1.17 100.00 16.31 9.39 64.19 6.47 C u rrent operating ex p en ses—to ta l.............................. Salaries, wages, and fe e s ............................................ O fficer and em ployee b e n e fits .................................. In te re s t on tim e and savings d e p o s its .................... O ccupancy expense o f ba nk p re m ise s— n e t........ Furniture and e q u ip m e n t............................................ O ther c u rre n t op e ra tin g e x p e n s e s ............................ 74.81 37.05 2.41 17.50 4.38 1.91 11.56 74.81 30.99 2.27 25.14 3.43 1.93 11.05 76.19 26.81 2.31 30.08 3.66 77.59 22.66 11.13 76.89 24.13 2.49 32.36 3.98 2.39 11.53 2.63 33.71 4.13 2.50 11.95 77.90 22.32 2.81 33.80 4.18 2.70 12.09 Net cu rrent operating e a rn in g s .................................... 25.19 25.19 23.81 23.11 22.41 5.12 3.83 1.29 5.14 3.84 1.29 5.08 3.87 5.08 3.91 1.17 5.08 3.94 1.14 Memoranda Recoveries cre d ite d to v a lu a tio n reserves (n o t in clude d in recoveries above): On se cu ritie s .................................................................. On lo a n s ............................................................................ Losses charged to valua tio n reserves (n o t in c lu d e d in losses above): On s e c u ritie s .................................................................... On lo a n s ............................................................................ 1.21 .20 .09 .09 .08 .09 .25 1.24 .99 .27 .32 .98 .76 .34 .92 .70 .32 .91 .02 .06 1.11 .88 (3) (3) .05 .11 (3) (3) .05 .13 (3) (3) .06 .16 (3) .06 .17 78.77 21.89 2.92 34.78 4.45 3.02 11.72 76.00 22.04 3.32 31.70 4.16 3.07 11.72 74.73 19.36 3.27 35.33 3.86 2.08 10.83 22.10 21.23 24.00 25.27 5.07 3.95 5.05 3.98 1.07 4.95 3.76 1.19 4.64 3.46 1.17 .10 .09 .09 .31 .91 .67 .29 .27 .29 .97 .70 1.12 .10 .68 (3) 5.75 (3) (3) .04 .16 11.21 8.96 67.38 4.81 1.88 .88 .66 (3) .04 .01 .16 1.01 .73 (3) .04 (3) .13 (3) .03 .01 .11 CORPORATION Am ounts per $100 of total a sse ts2 C urrent op e ra tin g re venue— t o t a l.................................. C urrent o p e ra tin g expenses— t o t a l............................... Net cu rre n t op e ra tin g e a rn in g s ..................................... R ecoveries, tra n s fe rs fro m v a lu a tio n reserves, and p ro fits — to t a l.................................................................... Losses, cha rge-offs, and tra n s fe rs to va lu a tio n reserves— to t a l................................................................ Net incom e before related ta x e s ................................... Net incom e a fte r related ta x e s ...................................... 2.21 1.88 1.77 100.00 8.58 8.41 69.58 3.37 1.78 8.29 INSURANCE 100.00 26.85 4.64 57.73 4.29 3.73 2.76 DEPOSIT Am ounts per $100 of cu rre n t operating revenue C u rre n t operating revenue—to ta l................................ In te re s t on U.S. G o ve rnm ent o b lig a tio n s ............... In te re s t and d iv id e n d s on o th e r s e c u ritie s ............ Inco m e on lo a n s ............................................................. Service charges on d e p o sit a c c o u n ts ...................... O ther service charges, co m m is s io n s , fees, e t c . . .. O ther c u rre n t o p e ra tin g re v e n u e ............................... $50,000,000 $100,000,000 $500,000,000 to to or $100 ,000,000 $500,000,000 more FEDERAL Incom e item Am ounts per $100 of total cap ital accounts2 N et c u rre n t o p e ra tin g e a rn in g s ..................................... R ecoveries, tra n s fe rs fro m valu a tio n reserves, and p ro fits — to t a l.................................................................... Losses, cha rge-offs, an d tra n s fe rs to valua tio n reserves— to t a l................................................................ N et incom e before related ta x e s .................................. Taxes or net in c o m e ......................................................... N et incom e a fte r ta x e s .................................................... Cash dividend s d e c la re d ................................................. Net a d d itio n s to cap ita l fro m in c o m e ......................... N um b er o f banks, D ecem ber 30................................... 14.35 14.96 15.48 15.09 16.17 .96 1.03 1.16 1.32 1.45 1.27 1.24 1.88 2.51 3.39 10.50 2.39 2.49 5.62 4.10 11.28 2.70 8.58 2.77 5.81 4.23 11.89 3.02 8.87 3.00 5.87 4.27 12.53 3.23 9.30 3.43 5.86 4.11 12.44 3.16 9.27 3.53 5.74 3.64 13.80 3.85 9.95 4.49 5.46 3.88 13.03 3.73 9.30 4.93 4.38 .50 .01 .68 .73 .61 .01 .03 .61 .03 .50 .39 1.99 .01 .03 2.25 .03 2.16 2.26 .10 .05 1.83 .14 1.54 9.51 1.92 7.59 2.24 5.35 .12 .43 10.22 2.08 8.13 2.72 5.41 (3) (3) .45 .98 8.11 (3) .01 1.40 6.81 6.58 6.53 6.42 6.29 6.30 6.17 5.83 4.72 2.29 .37 3.38 4.56 2.71 .43 3.46 4.48 2.75 .54 3.50 4.39 3.56 2.86 .68 4.23 2.94 .77 3.59 4.18 3.00 .71 3.65 4.10 3.05 .61 3.78 4.01 3.11 .50 3.81 4.15 3.29 .32 4.40 4.38 .14 4.52 3.43 .24 3.67 3.66 .27 3.92 3.98 .29 4.27 4.13 .44 4.57 4.18 .64 4.82 4.45 1.04 5.48 4.16 1.29 5.45 3.86 .91 4.77 .51 .05 .91 .64 .82 .77 .56 .06 .98 .74 .82 1.54 .77 .64 .08 .94 .67 .81 1.56 .73 .44 .07 .80 .55 .76 1.53 .62 871 403 353 101 .41 .31 .39 .44 .41 .53 2.04 .50 .63 .63 .50 1.42 .32 .48 .85 .48 1.05 .49 .65 .91 .53 .93 .76 .69 .46 .04 .95 .58 .87 .95 .72 327 1,424 3,866 3,412 2,662 .01 .01 S ee th e A nnual R eport fo r 1966, pp. 166-167, and earlier reports. 1.12 197 .01 7.15 1 This group of banks is the same as the group shown in Table 115 under the heading “ Operating throughout the year.” 2 For asset and lia b ility data, see Table 109, p. 181. 3 Less than .005. Back figures, 1941-1966: .02 15.67 BANKS O ccupancy expense of bank p re m ises per $100 of cu rren t operating revenue O ccupancy expense of bank p re m ises, net—total. Rental and oth er in c o m e ................................................ O ccupancy expense of bank p re m ises, gross—total Salaries and w ages— b u ild in g d e p a rtm e n t officers and e m p lo y e e s ........................................................... B u ild in g d e p a rtm e n t personnel b e n e fits ............... R ecurring d e p re c ia tio n ................................................ M a in te n a n ce and re p a irs ............................................ Insurance and u tilitie s ................................................. Rents p a id ........................................................................ T a x e s ................................................................................. 12.93 .80 OF INSURED Sp ecial ratios2 Inco m e on loans per $100 o f lo a n s ............................... Inco m e on U.S. G ove rnm ent o b lig a tio n s per $100 of U.S. G overnm ent o b lig a tio n s ..................................... 1ncom e on oth er secu ritie s per $100 o f o th e r securities Service charges per $100 o f d e m and d e p o s its ........ In te re s t paid per $100 o f tim e and savings deposits 11.93 1.51 INCOME Memoranda Recoveries cre dited to reserve a cco unts (n o t in cluded in recoveries above): On s e c u ritie s ...................................................... On lo a n s ............................................................................ Losses charged to reserve a c c o u n ts (n o t included in losses above): On s e c u ritie s ................................................................... On lo a n s ............................................................................ 9.88 198 Table 118. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1967 (A m o u n ts in th o u sa n d s o f do llars) Inco m e item Total U nited States Puerto Rico Virgin Islands 2,968 21,710,529 327 2,596,091 295 1,901,136 1,743 14,302,363 409 289,098 45 984,479 79 408,705 820,212 70 408,445 56,502 5,565 11,933 2,664 183 20,482 465 3,222 1,847 10,141 Net cu rren t operating e a rn in g s ............................... 5,227,969 11,612 499 417,624 2,322 150,238 3,986 62,089 1,571 14,307 44,439 142,565 90 165 496 1,326,581 154,550 8,403 74,572 28,341 885,885 174,830 410 2,423 399 4,319,012 10,218 R ecoveries, tra n sfe rs from valuation re se rv e s, and profits—to ta l................................................... On se cu ritie s: P rofits on sec u ritie s sold or re d e e m e d ........... R e co ve rie s............................................................... T ransfe rs fro m valua tio n re s e rv e s ................... On loans: R e c o v e rie s............................................................... T ransfe rs fro m valua tio n re s e rv e s ................... All o th e r ........................................................................ Lo sse s, charge-offs, and tra n sfe rs to valuation re se rv e s—to ta l........................................................ On securities: Losses on secu ritie s s o ld .................................... C harge-offs prior to s a le ...................................... T ransfe rs to valua tio n re s e rv e s ........................ On loans: Losses and c h a rg e -o ffs ....................................... T ransfe rs to valua tio n re s e rv e s ........................ All o th e r ........................................................................ Net incom e before related t a x e s ............................. 2,469 16,494,671 232 1,669,158 562 2,850,446 125 664,556 10 91,881 1,045 7,358,336 44 265,967 66 870,253 46 531,953 339 2,192,121 C alifor C onn ecti Colorado nia cu t 163,592 13,487 11,252 114,697 3,422 11,151 3,456 3,963 2,164 125,991 17,278 12,697 83,379 441 6,856 2,913 1,099 1,328 2,532,687 204,248 222,240 1,710,815 58,085 154,337 47,781 256,738 21,907 23,784 166,610 2,344 14,758 4,653 20,014 66,533 207,459 23,815 12,145 134,209 3,648 15,651 4,397 8,739 4,855 95,071 14,342 15,100 3,456 1,337 35,552 713 5,409 3,466 15,686 2,051,179 191,586 359,117 76,699 1,952 1,015,404 36 484 113,101 58,841 207,995 162,580 19,825 28,264 5,830 1,329 63,882 946 10,027 7,217 25,260 194,451 22,247 42,019 10,023 1,150 68,042 68,668 2,668 155,236 21,041 28,550 6,792 1,369 59,911 371 7,372 6,181 23,649 19,990 2,937 4,671 706 61 6,410 51 1,364 2,768 135,003 14,080 26,213 5,160 244 57,269 1683 8,147 5,694 16,513 5,215,858 61,491 5,346 28,589 30,920 471,508 44,879 62,287 104 415,198 5,581 494 2,425 2,002 54,116 3,693 2,975 1 148,666 3,986 62,089 3,716 17 140 392 1,538 1 802 34 23 17,020 5 8,667 1,805 391 86 1,315 4 334 103 14,217 44,274 141,966 223 566 919 5 97 13 873 328 349 466 955 1,023 26,446 331 99 981 11 100 1,211 3,716 203 1,322,662 13,297 2,046 14,241 8,038 158,244 10,887 14,556 479 2 154,069 8,403 74,567 702 134 218 35 947 616 140 195 17,810 44 15,323 632 60 81 500 172 29 27,931 883,290 174,402 495 10,198 1,550 1,766 245 7 11,060 2,227 479 5,382 1,226 1,838 94,438 28,791 905 7,686 1,523 4 10,880 3,050 400 4,308,394 53,775 3,794 16,773 24,884 367,380 37,685 50,708 5 1,022 888 13,024 8,418 28,640 6 116 CORPORATION 16,553,642 1,674,955 2,862,941 667,345 92,074 7,379,863 266,476 873 541 533,846 2,202,601 25,336 3,374 1,428 15,358 1,737 2,085 851 148 355 Arizona A rkansas INSURANCE C u rrent operating exp en ses—to ta l....................... S alaries— o ffic e r s ....................................................... Salaries and w ages— o th e r e m p lo y e e s ............. O fficer and em ployee b e n e fits ............................. Fees paid to dire c to rs and c o m m itte e s ............. In te re s t on tim e and savings d e p o s its ............. In te re s t on borrow ed m o n e y ................................ O ccupancy expense o f b a nk p re m is e s — n e t . . . F u rniture and e q u ip m e n t...................................... O ther c u rre n t o p e ra tin g e x p e n s e s ....................... 216,727 34,218 19,497 136,944 1,923 12,944 4,216 4,339 2,646 Alaska DEPOSIT 68,114 5,482 3,455 47,315 5,709 2,663 2,237 57 1,196 50 S tates and Alabam a D.C. FEDERAL C u rre n t operating revenue—to ta l........................... 21,781,611 In te re s t on U. S. G o ve rnm ent o b lig a tio n s ........ 2,601,900 In te re s t and d iv id e n d s on o th e r s e c u ritie s .. . . 1,904,886 In te re s t and d is c o u n t on lo a n s ............................. 14,351,421 295,216 Service charges and fees on lo a n s ..................... 987,187 Service charges on d e p o s it a c c o u n ts ................. 411,021 O ther charges, com m is s io n s , fee s, e tc ............. 820,269 T ru s t d e p a rtm e n t...................................................... O ther c u rre n t o p e ra tin g re v e n u e ......................... 409,711 O ther areas Taxes on net incom e—to ta l....................................... F e d e ra l.......................................................................... S ta te .............................................................................. 1,177,154 1,020,988 156,166 Net incom e after related t a x e s ................................ 458 379 79 47 47 1,176,649 1,020,562 156,087 15,430 13,005 2,425 1,198 1,193 5 3,397 2,989 408 5.457 5.457 92,044 55,418 36,626 353 3,131,745 38,345 2,596 13,376 19,427 1,422,567 1,339,513 12,695 12,692 575 575 9,636 5,909 5,781 11,741 9,575 2,166 15,263 9,287 5,976 275,336 25,944 35,443 154,461 140,368 11,999 11,632 17,357 16,655 3 1,516 128 14,093 367 702 1,715,656 6,125 353 1,709,178 25,650 2,021 3,740 13,518 120,875 13,945 18,086 144,868 637,511 586 3,075 19 136 144,263 634,300 1,928 7,642 180 838 1,241 5,806 1,516 4,049 16,887 72,124 1,732 11,956 1,680 8,881 5,638 168,680 1,272 73 5,638 167,335 127 2,692 418 2,223 1,608 8 525 18,902 2,305 30 1,192 29,072 601,194 2,629 127 29,072 598,438 79 10,789 1,911 8,944 5 3,738 14,758 85,888 6,865 7,110 3,222 459 66 870,253 185,780 7,372 763 1,364 384 8,147 1,472 5,409 660 113,101 12,287 10,027 3,436 13,024 1,845 3,681 17 71 1,056,033 3,557 8,135 26 1,748 2 9,619 61 6,069 14 125,388 453 13,463 41 14,869 27 103,191 12,954 189,324 128,020 177,221 293,320 148,446 863 83 1,514 893 1,473 2,897 386 36 612 98 1,670 856 2,255 3,139 928 712 396 424 363 275 241 1,798 543 1,186 926 824 66 4,672 731 15,581 19,517 16,344 53,512 14,578 1,144 118 1,633 1,397 2,029 5,560 1,541 1,233 156 2,575 1,614 3,011 4,062 2,191 475 32,111 13 371 7 5 140 3 328 31 981 298 6 3 333 13,509 266 10 17 245 172 217 64 M em oranda R ecoveries c re d ite d to v a lu a tio n reserves (n o t in c lu d e d in re coveries above): On s e c u ritie s .............................................................. On lo a n s ............................................................. Losses charged to va lu a tio n reserves (n ot in cluded in losses above): On s e c u ritie s .............................................................. On lo a n s ....................................................................... O ccupancy expense of bank p re m ises O ccupancy expense of bank p rem ises, n e t total ......................................................................... 873,541 Rental and oth er in c o m e ........................................... 186,244 O ccupancy expense of bank p re m ises, gro ss— to ta l............................................................................. 1,059,785 Salaries— b u ild in g d e p a rtm e n t o ffic e rs ............. 3,574 Salaries and w ages— b u ild in g d e p a rtm e n t e m p lo y e e s ............................................................... 103,430 B u ild in g d e p a rtm e n t personn el b e n e fits ......... 12,989 R ecurring d e p re c ia tio n ............................................ 189,818 M a in te n a n c e and re p a irs ....................................... 128,505 Insu ran ce and u tilitie s ............................................ 177,785 Rents p a id ................................................................... 295,006 T a x e s .............................................. 148,678 610 239 35 486 479 551 1,645 229 N um b er o f b u ild in g em ployees, D ecem ber 30: O ffic e rs .................................................. O ther e m p lo y e e s ............................. 478 32,180 3 69 N um b er o f banks, D ecem ber 30.......................... 13,517 7 8 6 13 41 3 1 11 199 5 122 BANKS 83,054 Net additions to capital from in co m e ................... N u m b e r o f b a n k in g em p lo ye e s (exclusive o f b u ild in g em ployees), D ecem ber 30: A ctive o ffic e r s ............................................................ O ther e m p lo y e e s ....................................................... 8,120 OF INSURED 9,760 3,635 3,025 INCOME 3,141,858 D ividends and interest on cap ital—to tal.............. 1,426,202 Cash d iv id e n d s declared on com m on s to c k .. . 1,342,538 D ividends declared on preferred stock and in te re s t on cap ita l notes and de benture s 83,664 Table 118. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1967— CONTINUED ^ g ( A m o u n t s in t h o u s a n d s o f d o lla r s ) D e la w a r e D is tr ic t of C o lu m b ia 64,347 7,413 7,069 36,701 1,077 1,611 713 8,375 1,388 137,038 25,084 5,905 86,792 2,477 7,241 1,330 7,443 766 515,304 84,751 52,358 296,552 9,548 35,724 10,365 15,232 10,774 358,651 39,739 23,820 229,398 8,210 24,141 16,939 11,089 5,315 77,298 6,113 5,735 53,899 3,768 2,752 2,776 781 1,474 62,920 7,018 4,245 42,615 1,136 5,043 1,834 445 584 1,580,718 237,722 150,694 1,000,079 14,598 45,993 19,890 71,407 40,335 450,829 84,243 32,448 282,974 4,552 18,404 11,825 11,296 5,087 274,232 46,549 22,735 177,990 1,151 13,264 5,999 3,650 2,894 213,646 41,212 19,294 131,115 1,042 12,554 4,015 2,249 2,165 209,492 38,152 17,346 131,863 2,255 7,849 2,593 6,925 2,509 41,005 5,746 10,063 2,127 282 12,097 60 2,497 2,216 5,917 95,814 9,903 18,392 3,101 583 39,657 820 6,022 3,459 13,877 406,852 45,579 73,573 14,262 3,399 162,923 2,789 20,186 19,360 64,781 269,908 32,552 51,652 12,618 2,663 95,802 2,321 17,065 10,939 44,296 59,128 5,760 11,086 3,465 312 24,042 134 3,416 2,737 8,176 48,216 6,313 8,366 2,061 181 19,772 132 2,261 2,333 6,797 1,193,290 110,466 181,569 45,015 6,950 575,462 27,468 50,499 32,710 163,151 339,115 40,702 58,802 12,394 3,059 133,633 4,640 18,109 12,516 55,260 208,105 36,171 28,378 7,234 1,615 87,068 1,018 9,921 7,167 29,533 150,918 27,519 21,587 5,288 1,851 59,919 561 7,291 5,376 21,526 150,496 20,777 25,103 5,475 1,736 59,483 508 7,681 5,756 23,977 Net cu rren t operating e a rn in g s............................. 23,342 41,224 108,452 88,743 18,170 14,704 387,428 111,714 66,127 62,728 58,996 R eco veries, tra n sfe rs from valuation re se rv e s, and profits—to ta l................................................. 1,711 3,280 7,996 10,837 800 749 36,081 16,682 4,595 3,709 4,259 969 2 108 927 8 2,926 88 289 4,888 50 367 500 67 2 222 11,490 777 6,100 4,824 56 3,858 2,480 15 149 1,584 24 251 1,455 37 324 53 253 326 69 40 2,236 278 732 3,683 176 3,662 1,694 1 299 73 7 378 592 1,201 15,921 389 2,100 5,455 376 925 650 602 161 1,087 209 403 1,831 2,512 9,555 32,300 22,979 4,555 4,200 86,115 31,475 14,404 14,355 14,982 377 1 724 2 54 3,827 57 503 1,145 96 428 410 1,375 28 11,931 1,199 6,655 2,309 266 5,583 2,093 198 311 1,168 353 189 710 334 1,014 I n c o m e it e m C u rre n t operating ex p en ses—to ta l..................... Lo sse s, charge-offs, and tra n sfe rs to valuation rese rv e s—to ta l...................................................... I llin o is I n d ia n a Io w a Kansas K e n tu c k y O n s e c u r it ie s : L o s s e s o n s e c u r it ie s s o l d ......................................... C h a r g e - o ff s p r io r t o s a l e ........................................... T r a n s f e r s t o v a lu a t io n r e s e r v e s ......................... O n lo a n s : L o s s e s a n d c h a r g e - o f f s ............................................. T r a n s f e r s t o v a lu a t io n r e s e r v e s ........................... A ll o t h e r .................................................................................... 43 1,457 634 431 7,494 850 1 946 21,857 4,110 396 16,199 4,715 3,598 547 332 2,205 260 1 198 55,244 9,888 547 19,349 3,421 552 9,378 1,872 1,287 8,790 2,568 631 9,161 3,132 Net incom e before related ta x e s ........................... 22,541 34,949 84,148 76,601 14,415 11,253 337,394 96,921 56,318 52,082 48,273 CORPORATION O n s e c u r it ie s : P r o f it s o n s e c u r it ie s s o ld o r r e d e e m e d ............. R e c o v e r ie s .......................................................................... T r a n s f e r s f r o m v a lu a t io n r e s e r v e s ..................... O n lo a n s : R e c o v e r ie s .......................................................................... T r a n s f e r s f r o m v a lu a t io n r e s e r v e s ..................... A ll o t h e r .................................................................................... Id a h o INSURANCE S a la r ie s — o f f i c e r s ............................................................... S a la rie s a n d w a g e s — o t h e r e m p lo y e e s .............. O f f ic e r a n d e m p lo y e e b e n e f i t s ................................ F e e s p a id t o d ir e c t o r s a n d c o m m i t t e e s .............. I n t e r e s t o n t i m e a n d s a v in g s d e p o s i t s .............. I n t e r e s t o n b o r r o w e d m o n e y ..................................... O c c u p a n c y e x p e n s e o f b a n k p r e m is e s — n e t . . F u r n it u r e a n d e q u i p m e n t ............................................ O th e r c u r r e n t o p e r a t in g e x p e n s e s ......................... H a w a ii DEPOSIT I n t e r e s t o n U . S . G o v e r n m e n t o b l i g a t i o n s . .. . I n t e r e s t a n d d iv id e n d s o n o t h e r s e c u r i t i e s . .. I n t e r e s t a n d d is c o u n t o n lo a n s ................................ S e r v ic e c h a r g e s a n d f e e s o n lo a n s ....................... S e rv ic e c h a r g e s o n d e p o s it a c c o u n t s .................. O th e r c h a r g e s , c o m m i s s io n s , f e e s , e t c ............. T r u s t d e p a r t m e n t .............................................................. O th e r c u r r e n t o p e r a t i n g r e v e n u e ........................... G e o r g ia FEDERAL C u rre n t operating revenue—to ta l......................... F lo rid a Taxes on net in c o m e — to ta l. . . F e d e r a l............................................... S t a t e .................................................................. . . N et incom e a fte r re la te d ta x e s .......... D ivid e n d s and in te re s t on c a p ita l— t o t a l......... C a s h d iv id e n d s d e c la r e d o n c o m m o n s t o c k . . D i v id e n d s d e c la r e d o n p r e f e r r e d s t o c k a n d i n t e r e s t o n c a p it a l n o t e s a n d d e b e n t u r e s . . . 19.020 21.418 3,865 13.886 3,536 92.546 27.171 13.512 14,137 19.020 14.279 21.418 3.070 795 2.793 743 92.546 27.171 13.512 12,610 1.527 14.279 14,438 21,063 65,128 55,183 10,550 7,717 244,848 69,750 42,806 37,945 33,994 8,049 10,662 21,646 22,149 7,020 8.049 3,842 82,809 10.068 20.971 ' 21,455 14,425 12,195 11,953 19,605 5.728 3.689 82.481 20.723 14,398 12.061 11.797 594 675 ' 2.544 1.292 153 328 732 27 134 156 162,039 48,295 28,381 25,750 22,041 6,389 10,401 43,482 33,034 3,530 3,875 N u m b e r o f b a n k in g e m p lo y e e s ( e x c lu s iv e o f b u il d in g e m p lo y e e s ) , D e c e m b e r 3 0 : A c t iv e o f f i c e r s ........................................................................ O th e r e m p lo y e e s .................................................................. 453 2.328 697 3.783 4.252 18.330 2.965 11,695 | 501 2.421 573 ■ 2.030 8.521 38.107 3.615 14,340 3.585 7.671 2,755 5.608 2.314 6.775 ’ 85 622 198 104 11.872 52 5.078 4 2.092 28 2,410 24 1.444 328 5.281 28 20,617 79 7.266 11 2.321 1.026 730 42.925 926 12.836 52 4.933 7 7.250 165 5.066 O ccupancy expense of bank p re m is e s O ccupancy expense o f bank p re m is e s , n e tto ta l ........................................................................... 2,497 17,065 3,416 2,261 50,499 18,109 271 6,022 20,186 R e n ta l a n d o t h e r i n c o m e .................................................... 9,921 7,291 7,681 O ccupancy expense o f bank p re m is e s , g r o s s to ta l ........................................................................... 1.336 371 8,310 3.379 1.404 1.455 1.429 4,752 2,632 58,809 21,488 11,325 8,746 9,110 M e m ora nda R e c o v e r ie s c r e d it e d t o v a lu a t io n r e s e r v e s ( n o t i n c lu d e d in r e c o v e r ie s a b o v e ) : O n s e c u r i t i e s ......................................................................... O n l o a n s ................................................................................... L o s s e s c h a r g e d t o v a lu a t io n r e s e r v e s ( n o t in c lu d e d in lo s s e s a b o v e ): O n s e c u r i t i e s ......................................................................... O n l o a n s ............................................................................ S a la r ie s — b u il d in g d e p a r t m e n t o f f i c e r s ............... S a la r ie s and w a g e s — b u i l d in g d e p a rtm e n t e m p lo y e e s ............................................................................ B u ild in g d e p a r t m e n t p e r s o n n e l b e n e f i t s ........... R e c u r r in g d e p r e c i a t i o n .................................................... M a in t e n a n c e a n d r e p a i r s ............................................... I n s u r a n c e a n d u t i l i t i e s ..................................................... R e n ts p a i d ................................................................................ T a x e s ........................................................................................... i 48 4.530 ! 125 2.720 389' 1.179 6.211 2,768 7,201 26,397 2 103 38 56 5 112 50 28 68 12 182 29 371 : 234 I 421 1.367 164 1.239 110 972 722 996 2.377 783 2.411 279 4.815 3.708 5,056 5,577 4,448 1.352 137 2.792 2.214 2.983 6,492 3.529 231 62 705 561 959 1.760 418 235 15 635 242 511 658 331 8.929 936 10.345 7.671 7.829 14.261 8.726 2.912 266 4.081 2.996 3.779 4,727 2.677 1.425 110 2.251 1.408 2.091 2.402 1.610 1.041 58 1.810 1.136 1.776 1.742 1.115 1.338 105 1.724 1.233 1.758 1.804 1.136 2.472 ! 19,537 47 1 296 9 674 3 486 4 86 1 66 13 2.200 10 1.031 9 796 7 483 6 583 N u m b e r o f b a n k s , D e c e m b e r 3 0 .................................... 19 14 447 408 7 26 1,062 413 661 600 340 201 N u m b e r o f b u il d in g e m p lo y e e s , D e c e m b e r 30: O f f i c e r s ............................................... . . . O th e r e m p lo y e e s .................................................................. BANKS N et a d d itio n s to c a p ita l fro m incom e OF INSURED 13.886 7.544 559 INCOME 8,103 202 Table 118. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1967— CONTINUED (A m o u n ts in th o u sa n d s o f do llars) Inco m e item Louisiana M ary land M aine M a ssa c h u s e tts M ich i gan M in n e sota M issis sippi M issouri M o n tana 531,988 47,126 37,122 345,292 5,346 29,861 21,460 32,276 13,505 951,771 124,408 87,102 641,217 15,672 34,289 13,485 25,337 10,261 411,248 60,709 38,054 253,800 3,451 21,225 19,241 10,610 4,158 136,202 18,547 14,327 86,277 629 8,091 5,426 1,178 1,727 508,702 82.472 49,870 323,813 3,705 18,684 7,348 12,842 9,968 75.558 12,068 5,910 47,901 1,044 5,069 C u rrent operating ex p en ses—to ta l..................... Salaries— o ffic e r s ..................................................... Salaries and wages— o th e r e m p lo y e e s ........... O fficer and em ployee b e n e fits ........................... Fees paid to dire cto rs and c o m m itte e s ........... In te re s t on tim e and savings d e p o s its ........... In te re s t on borrow ed m o n e y .............................. O ccupancy expense o f b a n k p re m ise s— n e t . . F u rn itu re and e q u ip m e n t.................................... O ther c u rre n t o p e ra tin g e x p e n s e s ..................... 204,215 22,892 34,791 7,116 2,498 76,854 2,820 12,506 8,086 36,652 48,244 5,446 9,729 1,990 455 17,267 263 2,960 1,902 8,232 166,732 15,780 36,318 7,137 1,239 59,567 2,080 11,342 7,227 26,042 382,317 40,456 89,548 19,667 1,775 117,480 8,646 26,202 16,210 62,333 785,596 52,191 125,696 26,240 3,067 421,872 9,928 36,123 19,983 90,496 321,538 41,179 43,652 11,423 2,670 152,817 3,218 13,669 9,380 43,530 99,666 14,261 17,430 4,481 1,244 34,161 1,476 4,172 4,683 17,758 Net cu rren t operating e a rn in g s............................. 71,103 13,894 65,859 149,671 166,175 89,710 6,314 1,080 3,684 47,742 10,648 3,993 7 731 685 2 1,920 48 317 4,338 49 12,559 4,300 16 742 283 236 1,064 28 96 202 221 87 512 762 23,742 3,060 1,244 204 2,664 375 16 4 671 14,839 4,120 2 53,675 R ecoveries, tra n sfe rs from valuation re se rv e s, and p rofits—to ta l................................................. On secu ritie s: P rofits on se cu ritie s sold or re d e e m e d ........ R e co ve rie s ............................................................. T ransfe rs fro m valua tio n re s e rv e s ................. On loans: R ecove ries............................................................. T ransfe rs fro m valua tio n re s e rv e s ................. All o th e r ...................................................................... Lo sse s, charge-offs, and tra n sfe rs to valuation re se rv e s—to ta l...................................................... On securities: Losses on secu ritie s s o ld .................................. C harge-offs prior to s a le .................................... T ransfe rs to valua tio n re s e rv e s ...................... On loans: Losses and c h a rg e -o ffs ..................................... T ra n sfe rs to v a lu a tio n re s e rv e s ...................... All o th e r ...................................................................... Net incom e before related t a x e s ........................... N ebraska Nevada 721 734 152,103 21,795 11,400 101,297 652 7,549 4,169 2,974 2,267 51,444 6,437 4,018 33,264 1,370 3,488 664 1,304 899 369,675 43,198 59,931 11,957 3,122 163,140 4,826 16,950 12,430 54,121 58,571 8,726 8,046 2,523 508 22,910 750 2,736 1,917 10,455 111,486 20,900 15,974 4,724 1,302 40,734 936 5,185 4,761 16,970 40,327 4,694 7,217 1,182 36,536 139,027 16,987 40,617 11,117 3,752 4,323 12,683 1,574 3,532 2,449 1,343 285 272 857 481 734 4,752 100 1,914 63 332 1,334 5,415 377 316 243 8,725 21,869 189 1,803 3,598 474 402 976 262 1,026 963 425 1,037 954 312 125 201 208 576 439 187 13,376 41,454 52,580 22,199 13,516 27,879 3,818 9,101 5,191 695 75 1,190 1,051 13 1,663 8,746 103 359 2,873 417 116 719 841 1,955 2,927 333 3,157 280 163 443 606 358 825 393 2,105 558 242 7,698 3,476 97 25,604 13,026 391 38,290 4,691 15,348 2,344 1,101 604 7,947 1,450 1,077 17,966 2,419 405 1,916 611 454 5,661 1,197 3,456 502 11,914 56,167 155,959 124,243 71,263 27,343 123,831 14,743 35,048 8,375 86 2,111 118 16,228 97 2,863 1,808 6,120 928 840 CORPORATION 232,591 30,842 16,598 152,545 5,238 15,970 4,386 4,622 2,390 INSURANCE 62,138 6,072 5,520 42,343 697 3,618 746 2,412 730 DEPOSIT 275,318 46,926 24,025 172,128 2,527 15,386 8,254 2,092 3,980 FEDERAL C u rre n t operating revenue—to ta l......................... In te re s t on U. S. G o ve rnm ent o b lig a tio n s .. . . In te re s t and d iv id e n d s on o th e r s e c u ritie s ... In te re s t and d is c o u n t on lo a n s ........................... Service charges and fees on lo a n s ................... Service charges on d e p o s it a c c o u n ts ............... O ther charges, c o m m is s io n s , fees, e tc ........... T ru s t d e p a rtm e n t.................................................... O ther c u rre n t o p e ra tin g re v e n u e ....................... Tax es on net incom e—to ta l................ F e d e ra l................................................... S ta te ....................................................... 15.708 15.708 2.315 2.315 20.003 20.003 45,254 34,090 11,164 17.412 17.412 21,267 14,449 6,818 6.709 6.709 35,203 32,646 2,557 4,262 4,034 228 10.141 10.141 1.156 1.156 Net incom e after related ta x e s.............................. 37,967 9,599 36,164 110,705 106,831 49,996 20,634 88,628 10,481 24,907 7,219 D ividends and in terest on cap ital—to ta l............ Cash d iv id e n d s declared on co m m o n s to c k .. D ivide nds de clared on preferred s to c k and in te re s t on ca p ita l n'otes and d e b e n tu re s ___ 14,897 14,305 4,337 4,256 14,891 14,349 39,009 38,909 46,439 43,941 21,482 21,295 8,362 8,064 34,956 33,499 6,026 6,026 9,728 9,570 3,665 3,304 592 81 542 100 2,498 187 298 1,457 158 361 Net additions to capital from in co m e................. 23,070 5,262 21,273 71,696 60,392 28,514 12,272 53,672 4,455 15,179 3,554 N u m b e r o f b a n k in g em ployees (exclusive o f b u ild in g em ployees), D ecem ber 30: A ctive o ffic e rs ......................................................... O ther e m p lo y e e s ..................................................... 2,006 8,399 537 2,443 1,450 8,586 3,229 19,309 4,106 27,511 3,838 10,926 1,396 4,471 4,087 14,819 782 1,950 2,169 4,265 468 1,663 INCOME 1 6 OF INSURED Memoranda R ecoveries cre d ite d to v a lu a tio n reserves (n o t inclu d e d in recoveries above): On s e c u ritie s ....................................................... On lo a n s ..................................................................... Losses charged to v a lu a tio n reserves (n o t in clude d in losses above): On s e c u ritie s ............................................................. On lo a n s ................................................................... 1 2 498 3 968 535 4,256 7,443 2,350 114 1,158 113 2,921 4 1,558 33 1,874 302 147 10,684 3 1,632 3,843 12 162 16,814 13 27,682 5,482 790 4,317 2,910 10,535 4 1,975 3,680 9 2,780 12,506 2,679 2,960 550 11,342 1,402 26,202 3,752 36,123 4,275 13,669 5,265 4,172 1,981 16,950 2,310 2,736 672 5,185 1,271 2,863 704 15,185 34 3,510 5 12,744 14 29,954 186 40,398 208 18,934 35 6,153 1 19,260 81 3,408 6,456 48 3,567 18 1,753 167 2,294 1,650 2,672 3,494 3,121 493 40 637 341 596 914 484 691 119 2,484 1,890 2,243 4,134 1,169 2,701 446 4,543 3,027 5,460 8,579 5,012 5,114 661 7,818 6.328 6,669 8,271 5.329 1,496 89 2,857 2,325 3,673 5,664 2,795 624 72 918 1,053 1,318 827 1,340 2,474 284 4,430 2,751 3,649 3,830 1,761 440 43 724 366 554 507 774 789 84 736 1,115 1,721 861 311 3 766 320 644 1,057 448 N u m b e r o f b u ild in g em ployees, D ecem ber 30: O ffic e rs ....................................................................... O ther e m p lo y e e s ..................................................... 5 536 230 295 1 46 745 26 1,500 701 264 872 187 7 403 76 N u m b e r o f ba nks, D ecem ber 3*0............................ 225 41 121 154 339 719 188 656 132 433 9 O ccupancy expense of bank p re m ises O ccupancy exp en se of bank p re m ises, n ettotal ........................................................................... R ental and o th e r in c o m e ......................................... O ccupancy exp en se of bank p re m ise s, g ro sstotal ........................................................................... Salaries— b u ild in g d e p a rtm e n t o ffic e rs ........... S alaries and w ages— b u ild in g d e p a rtm e n t e m p lo y e e s ............................................................. B u ild in g d e p a rtm e n t personnel b e n e fits R ecurring d e p re c ia tio n .......................................... M a in te n a n ce and re p a irs ..................................... Insu ran ce and u tilitie s .......................................... R ents p a id ................................................................. T a x e s .......................................................................... 6 2 11 2 203 1 1,102 BANKS 3,012 204 Table 118. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1967— CONTINUED (A m o u n ts in th o u sa n d s o f dollars) Inco m e ite m New H am p shire New Jersey New Mexico New York North C arolina N orth Dakota Ohio O kla hom a Oregon Pennsyl vania Rhode Island 43,882 4,062 2,533 31,878 333 3,011 644 742 679 648,760 69,647 72,750 429,061 8,238 34,899 8,466 19,489 6,210 65,731 9,089 4,383 43,251 570 4,984 1,614 875 965 4,009,286 337,821 331,221 2,759,938 43,667 101,549 54,515 261,768 118,807 325,087 30,614 34,098 207,251 9,744 16,946 12,098 9,593 4,743 63,694 12,531 6,960 36,554 430 3,102 3,206 437 474 974,450 147,974 100,727 620,639 7,976 41,681 12,349 33,575 9,529 234,568 35,746 19,697 151,413 1,958 14,545 4,356 3,824 3,029 199,420 21,109 16,378 131,034 3,560 16,596 2,447 4,562 3,734 1,322,169 146,264 118,854 897,420 13,886 38,384 14,316 71,633 21,412 86,810 6,503 8,591 59,110 705 3,574 994 6,099 1,234 C u rrent operating exp en ses—to ta l....................... S alaries— o ffic e r s ..................................................... Salaries and w ages— o th e r e m p lo y e e s ........... O fficer and em ployee b e n e fits ........................... Fees paid to dire cto rs and c o m m itte e s ............ In te re s t on tim e and saving s d e p o s its ........... In te re s t on borrow ed m o n e y .............................. O ccupancy expense o f b a n k p rem ises— n e t . . F u rniture and e q u ip m e n t.................................... O ther c u rre n t o p e ra tin g e x p e n s e s ..................... 33,510 4,049 5,584 1,245 401 13,630 87 1,814 1,207 5,493 508,906 46,642 94,984 21,833 3,530 220,261 1,671 30,691 17,473 71,821 51,148 7,201 9,480 1,596 469 17,771 175 2,878 2,358 9,220 2,929,361 209,121 540,943 141,783 5,946 1,381,873 88,553 171,503 68,047 321,592 253,729 30,743 48,435 10,912 1,154 101,720 2,582 13,073 9,733 35,377 49,379 7,660 5,695 1,805 591 23,640 173,552 28,242 27,273 6,464 1,633 67,458 1,928 9,046 6,687 24,821 163,277 19,249 28,319 5,959 359 76,797 11,201 DEPOSIT 8,581 5,532 17,370 993,485 86,922 165,204 43,944 6,676 459,677 15,079 49,483 34,134 132,366 64,181 4,876 2,135 1,375 6,390 724,724 63,957 118,370 24,021 3,749 345,350 8,143 30,821 20,759 109,554 Net cu rren t operating e a rn in g s............................. 10,372 139,854 14,583 1,079,925 71,358 14,315 249,726 61,016 36,143 328,684 22,629 INSURANCE 1,608 13,924 1,545 37,900 7,999 633 20,909 4,196 1,391 16,840 1,153 319 57 499 4,866 84 3,620 293 13,478 371 2,699 4,154 16 1,344 339 9 7,885 1,780 667 8 7,388 60 4,067 815 3,299 22 744 54 48 631 363 1,862 3,129 912 202 499 3,438 17,415 47 549 1,889 82 30 173 332 4,321 4,950 928 146 653 54 4 581 409 1,583 3,333 4 50 284 2,411 32,035 4,365 240,397 17,171 2,552 57,365 17,385 12,076 79,881 5,386 262 23 55 4,640 89 462 574 10 1,333 61 924 502 54 596 94 591 15,533 340 3,078 180 2 9,577 185 10,318 333 77 35,590 609 3,202 82 1,733 256 435 19,972 6,437 161 2,676 867 137 182,381 18,478 185 11,636 3,032 184 1,444 366 719 32,125 4,441 1,770 12,911 1,423 115 7,160 4,468 591 53,157 7,182 4,169 987 9,569 121,743 11,763 877,428 62,186 12,396 213,270 47,827 25,458 265,643 18,396 Lo sse s, charge-offs, and tra n sfe rs to valuation re se rv e s—to ta l...................................................... On secu ritie s: Losses on se cu ritie s s o ld .................................. C harge-offs prior to sale ... T ra n sfe rs to valua tio n reserves .......... On loans: Losses and cha rge-offs T ransfe rs to va lu a tio n re s e rv e s ...................... All o th e r ...................................................................... Net incom e before related t a x e s ........................... 25 113 122 1,111 50 CORPORATION R ecoveries, tra n sfe rs from valuation re se rv e s, and profits—to ta l.................................................. On secu ritie s: P rofits on secu ritie s sold or re d e e m e d ......... Recoveries .... T ra n sfe rs fro m valu a tio n reserves On loans: R ecove ries............................................................. T ransfe rs fro m valua tio n re s e rv e s................. All o th e r ...................................................................... 88 3,762 280 31,363 552 3,253 1,907 6,987 FEDERAL C u rre n t 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 s t and d ividend s on o th e r s e c u ritie s ... In te re s t and d is c o u n t on lo a n s ........................... Service charges and fees on lo a n s ................... Service charges on d e p o s it a c c o u n ts ............... O ther charges, co m m issio n s, fees, e tc ........... T ru s t d e p a rtm e n t.................................................... O ther c u rre n t o p e ra tin g re v e n u e ....................... T ax es on net incom e—to ta l...................................... F e d e ra l.......................................................................... S ta te .............................................................................. 2.965 2.965 Net incom e after related t a x e s ................................ 6,604 99,337 D ividends and in terest on cap ital—to ta l.............. Cash d iv id e n d s de cla red on c om m on s to c k .. . D ivid e n d s de clared on pre fe rre d s to c k and in te re s t on ca p ita l no tes and d e b e n tu re s .. .. 2,182 2,182 42,743 40,649 2,094 90 41,141 1,415 Net additions to cap ital from in co m e ................... 4,422 56,594 5,428 267,397 N u m b e r o f b a n k in g e m ployees (exclusive o f b u ild in g em ployees), D ecem ber 30: A ctive o ffic e r s ............................................................. O ther e m p lo y e e s ....................................................... 374 1,458 3,811 21,478 658 2,300 313 4,558 1,485 9 999 7 15,148 1,814 205 22.406 22.406 2.694 2.694 3,144 2,806 338 56.582 56.582 13,670 12,015 1,655 46,775 9,252 156,688 34,157 18,084 16,669 3.756 3.756 61,932 60,621 16,094 15,162 1,311 932 53 1,644 28,691 5,496 94,756 18,063 7,226 95,507 6,690 13,466 97,914 2,907 12,851 789 1,596 5,305 26,920 2,662 6,803 6,343 1,868 7,670 37,518 403 2,683 617 25,282 435 1,152 281 351 7,424 4,111 856 93 7,889 546 4,181 2,421 97,937 2,138 4,186 1,076 1,662 17,994 24 12,433 3,720 113 25,265 40 2,096 30,691 3,432 2,878 573 171,503 32,889 13,073 2,199 2,135 488 30,821 13,702 9,046 3,972 8,581 351 49,483 7,301 3,253 1,716 00 > 2,109 34,123 44 3,451 2 204,392 559 15,272 41 2,623 10 44,523 193 13,018 37 8,932 92 56,784 303 4,969 49 £ 208 14 362 14,534 2,676 38,321 17,982 35,716 63,416 31,188 1,429 150 2,557 1,722 2,855 5,281 1,237 22 310 550 375 471 57 672 381 496 1,003 369 293 200 3,356 474 5,889 5,461 5,204 7,135 6,560 611 199 608 484 396 6,623 685 7,927 6,229 7,349 12,004 3,513 1,580 158 2,570 1,349 2,380 4,031 913 741 97 2,308 1,556 1,580 1,296 1,262 8,742 1,268 10,845 6,017 9,156 13,973 6,480 1,117 236 734 475 605 920 833 N u m b e r o f b u ild in g em ployees, D ecem ber 30: O ffic e rs ......................................................................... O ther e m p lo y e e s ....................................................... 92 5 913 147 95 2,949 3 599 175 6 17 2,135 7 578 7 205 30 2,800 4 305 N u m b e r o f ba nks, D ecem ber 30.............................. 73 225 64 303 127 166 530 421 47 512 12 M em oranda Recoveries c re d ite d to v a lu a tio n reserves (n o t in c lu d e d in recoveries above): On s e c u ritie s ............................................................... On lo a n s ....................................................................... Losses charged to v a lu a tio n reserves (n o t in clude d in losses above): On s e c u ritie s ............................................................... On lo a n s ....................................................................... O ccupancy exp en se of bank p re m ises O ccupancy expense of bank p re m ises, net— to ta l............................................................................. Rental and o th e r in c o m e ........................................... O ccupancy expense of bank p re m ise s, g r o s s total ............................................................................. S alaries— b u ild in g d e p a rtm e n t o ffic e r s ............. Salaries and w ages— b u ild in g d e p a rtm e n t e m p lo y e e s ............................................................... B u ild in g d e p a rtm e n t personn el b e n e fits ......... R ecurring d e p re c ia tio n ............................................ M a in te n a n c e and re p a irs ....................................... In su ra n ce and u tilitie s ............................................ R ents p a id ................................................................... T a x e s ............................................................................. 264,794 194,913 69,881 15,411 13,447 1,964 9,069 612,634 3,641 3,551 345,237 304,096 2 8 7,325 4,862 2,463 65.661 65.661 5,099 4,021 1,078 18,133 199,982 13,297 10,907 10,854 104,475 102,831 6.607 6.607 ^ ^ O m c: 73 m D IS) O 206 Table 118. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1967— CONTINUED (A m o u n ts in th o u sa n d s o f do llars) Inco m e item South Carolina Ten nessee South Dakota W est Virginia 399 31,612 3,261 4,777 987 376 16,247 34 1,548 898 3,484 3,177 277,942 29,645 47,199 11,271 2,242 123,734 1,683 13,651 9,091 39,426 3,312 220,394 23,976 47,326 9,857 515 87,424 1,326 12,205 29,898 18,247 80,049 271,484 21,105 7,388 1,141 786 8,114 13,533 1,446 436 404 37 3,792 127 907 1,221 15 6,763 77 174 Net cu rrent operating e a rn in g s ............................... 2 20 111 2 4 28,877 1,383 82,048 10,405 13,457 2,897 1,087 34,384 338 3,786 2,567 13,127 5,273 316,433 38,505 43,695 11,245 3,326 155,255 787 13,587 11,426 38,607 380 28,275 4,089 3,998 870 444 12,360 180 1,408 1,057 3,869 82,385 62,902 34,415 83,867 8,169 439 6,645 6,948 2,144 5,537 601 196 2,870 302 172 831 10 2,557 25 699 90 2,860 72 171 164 3 50 8,888 1,886 12 6,000 2,169 24,146 409 2,026 971 343 46 241 315 353 231 737 122 2,685 1,517 4,505 26 27 168 39 31 163 489 194 2,681 74 2,558 972 324 288 599 1,666 117 651 135 95 154 5,416 2,672 19,190 74,248 4,818 1,970 25,660 16,912 7,034 17,314 1,747 760 15 303 347 38 3,947 688 941 16 440 19 1,642 77 4,357 1,746 24 438 1,237 46 89 3,034 90 1,306 3,098 390 5,644 145 59 116 3,166 1,056 48 1,829 410 475 10,368 2,406 5,368 52,504 7,244 3,496 299 66 29 1,293 189 404 15,735 3,445 178 12,137 2,389 303 3,989 1,370 173 11,234 2,527 257 1,203 127 25,623 16,361 68,973 210,769 17,733 5,857 63,370 52,938 29,525 72,090 7,023 66 201 11 CORPORATION 580 71,548 7,148 10,851 2,422 453 34,579 823 3,177 2,769 9,326 745 53,277 9,348 7,034 2,274 683 22,986 36,444 2,756 400,300 72,234 32,899 255,088 2,725 15,411 7,236 9,434 INSURANCE 14,729 792,371 99,229 119,337 26,633 7,799 320,322 17,914 41,822 28,414 130,901 983 71,986 12,404 17,920 3,860 719 16,049 272 4,135 3,657 12,970 W yom ing DEPOSIT 2,523 1,673 6,645 2,209 228,809 25,217 38,527 8,760 1,378 96,098 5,903 11,033 8,506 33,387 C u rre n t operating ex p en ses—to ta l....................... S alaries— o ffic e r s ....................................................... Salaries and wages— o th e r e m p lo y e e s ............. O fficer and em ployee b e n e fits ............................ Fees paid to dire cto rs and c o m m itte e s ............. In te re s t on tim e and savings d e p o s its ............. In te re s t on borrow ed m o n e y ................................ O ccupancy expense o f ba nk p re m ise s— n e t . . F u rniture and e q u ip m e n t...................................... O ther c u rre n t op e ra tin g e x p e n s e s ....................... 6,666 W is consin FEDERAL 283,296 27,447 22,619 185,083 5,280 23,255 8,293 8,007 116,463 24,547 9,475 71,402 1,505 3,509 6,439 360,327 42,103 28,686 242,599 7,421 19,104 7,212 10,025 308,858 41,927 27,373 208,333 4,382 11,529 W ash ington 39,000 3,988 2,900 28,169 476 2,035 307 726 71,524 13,982 5,111 44,006 352 3,613 3,079 636 Net incom e before related t a x e s ............................. V erm ont V irginia 92,653 8,577 8,484 60,682 2,251 6,725 3,246 2,108 101,884 13,150 9,274 65,115 650 7,036 3,645 2,031 Lo sse s, charge-offs, and tra n sfe rs to valuation re se rv e s—to ta l........................................................ On secu ritie s: Losses on se cu ritie s s o ld .................................... C harge-offs prior to s a le ...................................... T ransfe rs to v a lu a tio n re s e rv e s ........................ On loans: Losses and c h a rg e -o ffs ....................................... T ra n sfe rs to v a lu a tio n re s e rv e s........................ All o th e r........................................................................ U tah 1,063,855 127,051 97,316 718,324 10,855 55,377 17,323 22,880 C u rre n t operating revenue—to ta l........................... In te re s t on U. S. G ove rn m e n t o b lig a tio n s ........ In te re s t and d iv id e n d s on o th e r se c u ritie s . .. . In te re s t and d is c o u n t on lo a n s ............................ Service charges and fees on lo a n s ..................... Service charges on d e p o sit a c c o u n ts ................. O ther charges, co m m issio n s, fees, e tc ............. T ru s t d e p a rtm e n t...................................................... R ecoveries, tra n sfe rs from valuation re se rv e s, and profits—to ta l................................................... On secu ritie s: P rofits on secu ritie s sold or re d e e m e d .......... ...................................... R ecoveries T ransfe rs fro m valua tio n reserves .. . On loans: R ecoveries............................................................... T ransfe rs fro m valua tio n re s e rv e s ................... All o th e r ........................................................................ Texas 8,948 8,334 614 5,310 4,776 534 18,646 18,178 468 58.211 58.211 4,150 3,659 491 1,672 1,564 108 17.080 17.080 16,186 16,186 9.658 9.658 Net incom e after related t a x e s ................................ 16,675 11,051 50,327 152,558 13,583 4,185 46,290 36,752 D ividends and interest on capital—to ta l.............. Cash divid e n d s declared on com m on s to c k .. . D ividends declared on preferred stock and in te re s t on cap ita l notes and d e b e n tu re s ....... 7,351 7,323 4,347 4,329 16,216 15,242 71,269 68,799 7,065 6,897 1,936 1,867 23,121 22,989 13,743 13,701 28 18 974 2,470 168 69 132 42 10 689 56 Net additions to cap ital from in co m e................... 9,324 6,704 34,111 81,289 6,518 2,249 23,169 23,009 13,182 32,052 2,910 N u m b e r o f b a n k in g em ployees (exclusive o f b u ild in g em ployees), D ecem ber 30: A ctive o ffic e rs ............................................................. O ther e m p lo y e e s ....................................................... 1,203 4,791 937 1,881 2,607 9,840 9,085 28,975 713 2,941 343 1,280 2,899 12,168 2,187 10,165 1,058 3,389 3,474 11,306 381 974 1 19,867 52,643 4,866 6,685 6,675 20,591 19,902 1,956 1,900 352 531 1,760 1 585 16,061 408 248 6 1,607 2,335 1,052 46 729 2,320 522 1,316 1,843 2 23 6,848 1,070 50,911 2,440 72 672 395 9,749 50 4,333 2,001 16 16 7,452 1,320 4,135 302 2,523 486 11,033 3,367 41,822 33,230 3,177 1,076 1,548 175 13,651 1,528 12,205 1,199 3,786 900 13,587 2,902 1,408 262 4,437 1 3,009 3 14,400 56 75,052 222 4,253 13 1,723 15,179 13 13,404 80 4,686 27 16,489 79 1,670 5 391 54 1,039 568 1,013 1,080 291 354 35 459 273 661 650 574 1,873 185 3,453 1,534 2,587 2,359 2,353 7,266 741 15,245 9,112 13,101 13,218 16,147 561 38 864 379 665 1,231 502 234 26 298 175 268 515 207 2,009 193 2,732 1,307 2,938 4,801 1,186 965 167 3,588 2,526 2,269 2,379 1,430 753 73 1,115 536 826 740 616 2,057 215 3,124 1,679 2,880 3,561 2,894 370 204 341 157 400 4 181 12 N u m b e r o f b u ild in g em ployees, D ecem ber 30: O ffic e rs ......................................................................... O ther e m p lo y e e s ....................................................... 203 221 7 712 23 2,318 1 220 118 867 6 14 294 3 341 9 844 60 N u m b e r o f ba nks, D ecem ber 30.............................. 122 165 295 1,139 55 45 250 94 194 596 69 See T h e A nnual R eport fo r 1966, pp. 168-177, and earlier reports. 2 207 Back figures, 1946-1966: 1 BANKS O ccupancy expense of bank p rem ises O ccupancy expense of bank p rem ises, n e t total ............................................................................. Rental and o th e r in c o m e ........................................... O ccupancy exp en se of bank p re m ise s, g r o s s total ............................................................................. S alaries— b u ild in g d e p a rtm e n t o ffic e rs ............. Salaries and w ages— b u ild in g d e p a rtm e n t e m p lo y e e s ............................................................... B u ild in g d e p a rtm e n t personnel b e n e fits ......... R ecurring d e p re c ia tio n ............................................ M a in te n a n ce and re p a irs ....................................... Insu ran ce and u tilitie s ............................................ Rents p a id ................................................................... T a x e s ............................................................................ 1 2.157 2.157 OF INSURED M em oranda Recoveries c re d ite d to v a lu a tio n reserves (n o t in clu d e d in recoveries above): On s e c u ritie s .............................................................. On lo a n s ....................................................................... Losses charged to valua tio n reserves (n ot in clude d in losses above): On s e c u ritie s ................................................ On lo a n s ....................................................................... 19,447 14,951 4,496 INCOME Taxes on net incom e—to ta l....................................... F e d e ra l......................................................................... S ta te .............................................................................. Table 119. INCOME OF INSURED MUTUAL SAVINGS BANKS, 1959-1967 ( A m o u n t s in t h o u s a n d s o f d o lla r s ) C u rre n t operating ex p en ses—total D e p o s it in s u r a n c e a s s e s s m e n t s ..................................................... F u r n it u r e a n d f ix t u r e s ( in c lu d in g r e c u r r in g d e p r e c ia t io n ) . A ll o t h e r c u r r e n t o p e r a t in g e x p e n s e s ............... .... Net cu rren t operating incom e S t a t e f r a 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 ................................................ Net cu rrent operating incom e after taxes 216 217 1963 1964 1965 1966 1967 ’ 22.733 -5 2 27.576 -1 0 8 541 63 S 53.172 -2 5 5 2,391.646 63.405 1.9 6 i 421 41.773 -9 7 2,203.133 59.996 2.036 296 4r>4 33.538 -1 2 2 2.009.214 56,165 2,119 142.509 226.023 2,141.099 18.767 -3 8 1,790.316 49,756 1.911 147,751 211,278 1.950.930 2,884,789 1,580,276 44.1:4 l/'5 6 153.368 207,164 1,738.621 2,606,012 1,363,735 39,263 1.556 153.659 203.720 1,534.446 2,391,753 1,231,774 36,045 l .44' 156.410 206.367 1,342,896 2,164,115 1,104,100 151,931 205,751 1,194,282 1,946,776 67',925 —209 152,458 199.258 1,070,173 32,343 1.584 18.407 27 397 370 379 41 7 302 35 4 513 766 130.873 301.218 2.326.459 7,486 11.990 7.474 13 966 9.081 15 409 9.777 17.451 9,984 17,499 13.121 18.425 543 18.713 21.405 18.095 25.369 25.248 33.275 976 201,402 32.082 64.396 20,006 3.366 22.695 224,789 36,608 71,295 22,656 3,731 25,255 241,685 38.158 75,303 24.134 3.994 27,369 252,963 40.466 79.165 25.419 4,158 29.269 274,544 42.792 84.514 27,202 4.404 32.160 290,471 45.391 89.514 28.138 4.604 34,683 311,755 48.514 93.680 30.080 4.720 37.219 334,451 52.085 98.421 33.593 4.855 38.855 353,947 32.266 9.573 39.297 1o'?j26 49.093 11.671 51.38 7 12.532 55.631 13.219 55.510 105,612 34.243 4,945 42,412 35.120 9.665 45.671 11.707 4.740 48.797 37.296 0.929 4 2.563 11.316 4.445 43,096 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 16.810 11.777 78.055 17,712 13.799 79.714 1,078,945 1,236,974 1,353,498 1,502,619 1,672,232 1,873,644 2,079,998 2,271,561 2,530,842 11,649 13,637 16,011 17,966 22,587 26,022 29,487 22.048 7,439 37,480 31,426 6.054 37,708 11.172 477 13.190 447 15.277 734 17.502 464 10.423 19.168 3.419 11,166 21.657 4.365 33.737 3.971 1,067,296 1,223,337 1,337,487 1,484,653 1,649,645 1,847,622 2,050,511 2,234,081 2,493,134 Dividends and interest on deposits. . 897,469 1,073,542 1,147,767 1,334,005 1,481,869 1,653,768 1,809,350 2,087,072 2,395,762 Net cu rrent operating incom e after taxes and dividends 169,827 149,795 189,720 150,648 167,776 193,854 241,161 147,009 97,372 91,205 142,009 113,763 105,907 113,085 105,454 75,130 177,612 93,536 Non-recurring income, realized profits and recoveries credited to profit and loss, and tra n sfers from valua tion adjustm ent provisions—total N o n - r e c u r r in g in c o m e ............................................................... R e a liz e d p r o f it s a n d r e c o v e r ie s o n : S e c u r it ie s s o ld o r m a t u r e d ................................................................ R e a l e s t a te m o r t g a g e l o a n s ............................................................. O th e r re a l e s t a t e ...................................................................................... A ll o t h e r a s s e t s ................................................................................ T r a n s f e r s f r o m v a lu a t io n a d j u s t m e n t p r o v is io n s 2 o n : S e c u r it ie s .................................................................................................. R e a l e s t a te m o r t g a g e l o a n s ......................................................... O th e r re a l e s t a t e ...................................................................................... FRASER A ll o t h e r a s s e t s ........................................................................... Digitized for 21.147 39,498 192 646 2.498 14.270 12,021 17 916 31.133 34,860 283 535 6.576 57.588 10.480 86 468 17.567 54,263 629 337 459 10.873 29.068 36 531 20.453 55.751 739 462 957 5.460 21.465 66 554 28.678 28.752 2.465 807 871 26.995 24.342 46 129 18.048 36.472 1,088 571 1.096 22.029 25.786 92 272 15.242 27.375 1.266 719 1.532 11.817 16.365 121 693 20,211 59,173 773 1,548 3.429 13.635 78.458 20 365 20.377 47.292 705 2.059 1.114 7.774 13.435 64 716 CORPORATION Fran ch ise and incom e taxes—total. . 12,669 -1 1962 1,755,582 INSURANCE Occupancy, maintenance, etc. of bank premises (including taxes and re curring depreciation )—gross........................................................................ Less: Income {rom bank building.................................................................... 951,952 29,154 1,463 1961 1,595,183 DEPOSIT S a la r ie s — o f f i c e r s .............................................. S a la r ie s a n d w a g e s — o t h e r e m p lo y e e s ....................................... P e n s io n , h o s p it a liz a t io n a n d g r o u p in s u r a n c e p a y m e n t s , a n d o t h e r e m p lo y e e b e n e f i t s ................................................... F e e s p a id t o t r u s t e e s a n d c o m m i t t e e m e m b e r s .................... O c c u p a n c y , m a in t e n a n c e , e tc . o f b a n k p r e m is e s ( in c lu d in g t a x e s a n d r e c u r r in g d e p r e c ia t io n ) — n e t ...................... 146,353 180,535 921,315 1960 1,461,763 FEDERAL I n t e r e s t o n U . S . G o v e r n m e n t o b li g a t i o n s .................................. I n t e r e s t a n d d iv id e n d s o n o t h e r s e c u r i t i e s ................................ I n t e r e s t a n d d is c o u n t o n re a l e s t a t e m o r t g a g e lo a n s — n e t Interest and discount on real estate mortgage loans— gross........................... Less: Mortgage servicing fees........................................................................... Premium amortization ............................................................................ I n t e r e s t a n d d is c o u n t o n o t h e r lo a n s a n d d i s c o u n t s — n e t. I n c o m e o n re a l e s t a te o t h e r t h a n b a n k b u i l d in g — n e t ......... Income on real estate other than bank building— gross.................................. Less: Operating exvense................................................................................... I n c o m e o n o t h e r a s s e t s .................................................... I n c o m e f r o m s e r v ic e o p e r a t i o n s ............................. 1959 1,280,347 208 I n c o m e it e m C u rre n t operating incom e—to ta l................................................. N on-recurring ex p en ses, realized lo sses charged to profit and loss, and tra n sfe rs to valuation adjustm ent pro vision s—to ta l.............................................................. N o n - r e c u r r in g e x p e n s e s ................................................. R e a liz e d lo s s e s o n : S e c u r it ie s s o l d ........................................................................................ R e a l e s t a te m o r t g a g e lo a n s .......................................................... O th e r re a l e s t a t e .......................................................................... A ll o t h e r a s s e t s ......................................................................... T r a n s f e r s t o v a lu a t io n a d j u s t m e n t p r o v is io n s 2 o n : S e c u r it ie s ....................................................... R e a l e s t a te m o r t g a g e l o a n s ............................................................. O th e r re a l e s t a t e ................................................................................... A ll o t h e r a s s e t s ........................................................................................ Net additions to total su rp lu s accounts from o p era tio n s.. 109,192 18,941 101,611 17,331 88,234 12,991 93,036 15,306 147,688 10,499 94,744 12,458 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 3,037 886 927 100,585 7.015 1,644 2,646 63,624 4,891 1,850 1,932 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 13.015 11,590 97 597 5,229 3,796 127 837 134,156 168,140 187,340 147,363 179,250 211,074 223,255 176,933 96,164 173 99 2 37 471 136 278 53 1,658 48 3,389 201 756 64 341 85 1,277 212 585 6 35 14 13 24 46 2,726 231 1 89 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 6,811 1,220 257 341 2,172 4,040 204 1,016 31,248,671 689,698 5,236,825 4,677,222 19,937,652 244,010 7,002 456,262 34,339,564 721,308 5,092,512 5,036,291 22,628,058 355,327 11,555 494,513 35,916,590 757,912 4,791,909 5,228,022 24,255,437 353,474 18,955 510,881 38,152,221 794,362 4,748,691 5,151,555 26,435,337 441,994 19,640 560,642 41,180,616 786,298 4,563,328 5,115,637 29,538,513 543,458 21,114 612,268 44,609,410 768,719 4,351,966 5,057,794 33,121,502 588,196 28,389 692,844 48,466,656 891,727 4,030,731 5,069,343 36,991,670 672,117 27,228 783,840 51,399,898 838,855 3,594,830 5,153,130 40,095,486 842,896 29,263 845,438 55,173,023 953,843 3,156,304 6,312,183 42,794,592 1,003,436 27,987 924,678 Memoranda R ecoveries credited to valuation adjustm ent p ro visio n s2 (not included in reco veries above) on: S e c u r it ie s ........................................................................................................ R e a l e s t a t e m o r t g a g e l o a n s ................................................................. O th e r re a l e s t a t e .................................................................. A ll o t h e r a s s e t s ..................................................................... Realized lo sses charged to valuation adjustm ent provi s io n s 2 (not included in realized losses above) on: S e c u r it ie s ............................................................................. R e a l e s t a t e m o r t g a g e l o a n s ................................................................ O th e r r e a l e s t a t e .......................................................................................... A ll o t h e r a s s e t s ............................................................................................. Average a sse ts and lia b ilitie s 3 A ssets—to tal........................................................... C a s h a n d d u e f r o m b a n k s .................................................................... U n it e d S t a t e s G o v e r n m e n t o b l i g a t i o n s ...................................... O th e r s e c u r i t i e s .................................................................... .... R e a l e s t a t e m o r t g a g e l o a n s ......................................... . . O th e r lo a n s a n d d i s c o u n t s ................................................ .. . O th e r re a l e s t a t e ........................................................................................ A ll o t h e r a s s e t s ................................................................ Liab ilities and su rp lu s accounts—to tal.................................... 31,248,671 28,136,390 28,106,089 30,301 30,790,599 32,240 34,339,564 30,822,839 35,916,590 32,320,488 38,152,221 34,350,820 41,180,616 37,175,285 44,609,410 40,334,274 48,466,656 43,985,749 51,399,898 46,590,719 55,173,023 50,247,915 512,192 2,600,089 598,011 2,918,714 506,744 3,089,358 537,630 3,263,771 588,622 3,416,709 660,037 3,615,099 653,614 3,827,293 764,445 4,044,734 730,825 4,194,283 N u m b e r o f a c t iv e o f f ic e r s , D e c e m b e r 3 0 .......................................... N u m b e r o f o t h e r e m p lo y e e s , D e c e m b e r 3 0 ................................... 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 3,602 19,609 3,708 20,367 N u m b e r o f b a n k s , D e c e m b e r 3 0 ............................................................ 268 325 330 331 330 327 329 332 333 T o t a l d e p o s i t s ...................................................... Savings and time deposits ................................................................................................. Demand deposits ............................................................ O th e r l i a b i l i t i e s ............................................................................................ T o t a l s u r p lu s a c c o u n t s ............................................................................ 32,113,129 207,359 3 !>,070,511 280,309 36,870,906 304,379 39,997,217 337,057 43,609,062 376,687 46,172,242 418,477 49,805,468 442,447 209 1 Figures for 1967 may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences in rounding techniques. 2 Includes “ Valuation reserves” and "O ther asset valuation provisions (direct write-downs).” 3 For 1959 and 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1967, 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. BANKS 116,143 17,692 OF INSURED 123,664 16,981 INCOME 126,876 11,385 Table 120. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS, 1959-1967 I n c o m e it e m 1959 Interest on U. S. Government obligations................................................................................................................. Interest and dividends on other securities............................................................................................................... Interest and discount on real estate mortgage loans— n e t.................................................................................... Interest and discount on other loans and discounts— n e t..................................................................................... Income on other assets................................................................................................................................................. Income from service operations.................................................................................................................................. C u rre n t o p e ra tin g expenses— t o t a l................................................................................................................................ 11.43 14.10 71.96 .99 .58 .94 1961 1962 1963 1964 1965 1966 1967 $100.00 10.43 13.63 73.21 1.25 .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 7.09 9.57 80.34 1.55 .60 .85 $100.00 6.18 9.83 81.57 1.75 .78 .89 $100.00 5.47 8.67 82.16 2.04 .69 .97 $100.00 4.54 10.44 80.65 2.35 .87 1.15 14.41 2.30 4.51 1.45 .24 1.67 .69 .34 3.21 14.10 2.20 4 34 1.40 .23 1.65 .65 .39 3.24 13.42 2.10 4.14 1.30 21 1.60 .65 .42 3.00 13.03 2.03 3 92 1 26 .20 1.55 .66 .43 2.98 12.83 2.00 3.78 1.29 .19 1.49 .64 .45 2.99 12.27 1.93 3.66 1.19 17 1.47 .61 .48 2.76 N e t c u rre n t o p e ra tin g in c o m e ................................................................................................................................................... 84.27 84.62 84.85 85.59 85.90 85.58 86.97 87.17 87.73 .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 1.44 1 21 .23 1.31 1.17 .14 N e t c u rre n t o p era tin g income a fte r t a x e s ......................................................................... 83.36 83.69 83.85 84.57 84.74 85.38 85.73 85.73 86.42 D ivid end s and in te re s t on d e p o s its ............................................................................... 70.10 73.44 71.95 75.99 76.12 76.42 75.65 80.09 83.04 N e t c u rre n t o p era tin g incom e a fte r tax e s and d iv id e n d s .......................................................................................... 13.26 10.25 11.90 8.58 8.62 8.96 10.08 5.64 3.38 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 5.07 .65 4.42 07 4.35 4.06 .29 5.23 .64 4 39 .07 4.52 4.34 .18 .................. State franchise and income taxes................................................................................................. Federal income taxes.................................................................................................................................................... A m ounts per $100 of to ta l assets Current operating income— to ta l....................................................................................... Current operating expenses— to ta l................................................................................................................................. 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 provisions - to ta l....................................................................................... Non-recurring expenses, realized losses charged to profit and loss, and transfers to valuation adjustment provisions — to ta l.......................................................................................................................................................... Net additions to total surplus accounts from operations............................................................................................ .29 .41 .31 .28 .27 .24 .15 .34 .16 .41 .43 .36 .49 .32 .52 28 .39 24 .44 20 .47 .19 .46 .29 .34 .17 .17 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................. 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 3.96 4.39 5.34 6.31 4.52 4.37 4.15 4.77 5.44 6.77 4.81 2.29 Number of banks, December 30........................................................................................ 268 325 330 331 330 327 329 332 333 S pecial ratio s Note: For footnotes to this Table, see Table No. 119, p. 209. CORPORATION 15.15 2.39 4.72 1.51 .25 1.72 .80 .34 3.42 INSURANCE 15.38 2.50 4.88 1.55 .26 1.73 .80 .32 3.34 DEPOSIT 2.51 5.03 1.56 .26 1.77 .88 .35 3.37 FEDERAL Salaries— officers........................................................................................................................................................... Salaries and wages— other employees........................................................................... Pension, hospitalization and group insurance payments, and other employee benefits................................... Fees paid to trustees and committee m embers....................................................................................................... Occupancy, maintenance, etc. of bank premises (including taxes and recurring depreciation)— net............. Deposit insurance assessments..................................................................................................... Furniture and fixtures (including recurring depreciation)..................................................................................... All other current operating expenses........................................................................... F ra n ch ise and incom e tax e s — t o t a l ....................................................................................................... 1 5 .7 3 ^ 1960 210 A m o unts per $100 of c u rre n t o p e ra tin g incom e C u rre n t o p e ra tin g incom e— t o t a l............................................................................................................................................. $100.00 Table 121. SOURCES AND DISPOSITION OF TOTAL INCOME, INSURED MUTUAL SAVINGS BANKS, 1959-1967 (A m o unts in m illions o f d o llars) Inco m e item 1959 1960 1961 1962 1963 1964 1965 1966 1967 Amount Disposition S alaries and w a g e s 1 ........................................................................... D iv id e n d s and in te re s t on d e p o s its ...................................... O ther c u rre n t e x p e n s e s ............................................................ N on-recu rring expenses, losses, e tc ............................. In co m e ta x e s ........................................................................ A d d itio n s to ca p ita l a c c o u n ts .................................. 1,372 1,604 1,709 1,861 2,060 2,270 2,467 2,783 2,978 934 146 181 19 91 1,089 153 199 1,213 152 206 24 114 1,366 156 206 27 106 1,562 154 204 27 113 1,772 153 207 32 105 1,993 148 211 40 75 2,194 143 226 43 177 2,394 131 301 58 94 120 134 1,073 91 124 14 168 142 1,148 149 1,334 104 109 18 147 159 1,482 115 168 1,654 177 1,809 135 93 29 223 189 2,087 146 148 37 177 2,396 154 95 37 96 200 OF INSURED S o u rce s L o a n s ....................................................................................... U.S. G o v e rn m e n t o b lig a tio n s ............................................................. O ther s e c u ritie s ...................................................................................... O ther c u rre n t in c o m e ........................................................................ N o n-recu rring incom e, recoveries, e tc ............................................ INCOME Total in co m e ............................................................................... 897 81 127 12 134 21 142 100 116 16 187 102 23 179 122 88 26 211 P ercentage distribution S o u rce s L o a n s ........................................................................... U.S. G ove rnm ent o b lig a tio n s ........................... O ther s e c u ritie s ..................................................... O ther c u rre n t in c o m e .............................................. N o n -re cu rrin g incom e, recoveries, e tc .. . Disposition Salaries and w age s 1 .............................. D ivide nds and in te re s t on d e p o s its . .. O ther c u rre n t e x p e n s e s ............................................. N on-recu rring expenses, e tc ..................... Inco m e ta x e s .......................................... A d d itio n s to ca p ita l a c c o u n ts .................................. 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 68.1 71.0 8.9 6.6 67.9 9.5 12.4 1.3 8.9 8.7 65.4 5.9 9.3 .9 9.8 8.3 66.9 5.7 7.7 .9 10.5 8.3 67.1 5.9 10.7 13.2 1.4 1.4 6.7 6.8 1.0 10.9 73.3 8.4 75.8 7.5 9.9 1.3 5.5 78.1 9.1 1.4 4.6 3.0 71.6 5.6 5.9 7.7 71.9 5.6 5.0 7.4 72.9 5.4 3.9 7.2 73.3 5.5 3.8 7.9 8.7 9.3 9.0 11.1 1.5 5.7 8.0 1.0 1.1 6.8 1.1 80.8 6.0 8.6 1.6 1.2 78 8 5.1 80.4 4.4 6.4 1.9 3.2 8.1 1.6 68 75.0 5.2 5.3 13 6.4 10.1 6.7 80.5 5.2 3.2 12 3.2 211 1 Includes pension, hospitalization and other employee benefits and fees paid to trustees and committee members. Note: Due to rounding differences, components may not add to totals. 12.0 BANKS Total in co m e ............................................................ 212 Table 122. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES, BY STATE, 1967 ( A m o u n t s in t h o u s a n d s o f d o lla r s ) I n c o m e it e m C o n n e c t ic u t M a in e I n d ia n a M assachu New H a m p s h ir e s e tts 11,090 8,204 1,417 1,729 312 875 731 2,533 241 678 1,233 555 329 201 2,249 35,238 7,263 9.410 3,279 514 4,237 4,746 509 1.410 1,650 8,187 1,402 5,529 7,649 37 32 36 363 1,147 1,379 332 169 653 767 114 244 223 1,382 2,530,842 201,440 3,618 32,838 37,708 33.737 3.971 6,753 6,515 238 106 Net cu rren t operating incom e after taxes. 2,493,134 D ividends and interest on d e p o sits......................................... C u rre n t operating e x p en ses—total S a la r ie s — o f f i c e r s ................................................................................................ S a la r ie s a n d w a g e s — o t h e r e m p lo y e e s ................................................ P e n s io n , h o s p it a li z a t io n a n d g r o u p in s u r a n c e p a y m e n t s , and o t h e r e m p lo y e e b e n e f it s ...................................................................................... F e e s p a id t o t r u s t e e s a n d c o m m i t t e e m e m b e r s ........................................ O c c u p a n c y , m a in t e n a n c e , e t c . o f b a n k p r e m is e s ( in c lu d in g ta x e s a n d r e c u r r in g d e p r e c ia t io n ) — n e t ................................................................. O c c u p a n c y , m a in t e n a n c e , e t c . o f b a n k p r e m is e s ( in c lu d in g ta x e s a n d r e c u r r in 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 i l d i n g ................................................................... D e p o s it in s u r a n c e a s s e s s m e n t s ........................................................................... F u r n it u r e a n d f ix t u r e s ( in c lu d in g r e c u r r in g d e p r e c ia t io n ) .................... A ll o t h e r c u r r e n t o p e r a t in g e x p e n s e s ................................................................ Net cu rrent operating in co m e ............. F ra n ch ise and incom e taxes—total. S t a t e f r a 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 ........................... Net cu rren t operating incom e after taxes and dividends. 237,390 353,947 55.510 105,612 34,243 4,945 42,412 55,631 13,219 17,712 13,799 79,714 35,950 11,108 28,721 185,833 188,424 2,518 73 8,774 11 87 76 670 2,273 5,020 1,023 442 3,258 3,271 13 103 2 2 " "l 420 315 42 113 150 4,444 4,607 25,398 25,502 101 3 10 2 2,562 93,609 1,597 2,974 853 110 1.918 1,962 626 82,519 47,572 635 216 419 1,467 106 121 7 114 1,326 141 380 194,687 3,512 32,717 34,603 81,052 47,080 2,395,762 176,115 2,917 28,795 32,121 81,925 42,712 97,372 18,572 595 3,922 2,482 -873 4,368 492 112 CORPORATION 1,023 2,494 631 60 870 933 63 264 90 2,217 185 130.873 301,218 2,326,459 2,391,848 63,405 1,984 67.925 -209 767 976 25.248 33,275 INSURANCE 55,776 3.975 5,752 41,296 41,944 626 22 3.976 -2 1 34 55 200 598 42,887 2,884,789 DEPOSIT 11,622 7,592 71,639 73,530 1,511 380 1,892 6 17 11 475 383 3,857 5,681 26,785 27,224 439 1,683 22 61 39 13 326 I n t e r e s t o n U . S. G o v e r n m e n t o b li g a t i o n s ............................................. i n t e r e s t a n d d iv id e n d s o n o t h e r s e c u r i t i e s ........................................... I n t e r e s t a n d d is c o u n t o n re a l e s t a t e m o r t g a g e lo a n s — n e t . . . . I n t e r e s t a n d d is c o u n t o n re a l e s t a t e m o r t g a g e lo a n s — g ro s s . L e s s : M o r t g a g e s e r v ic in g f e e s .................................................................. P r e m iu m a m o r t i z a t i o n ..................................................................... I n t e r e s t a n d d is c o u n t o n o t h e r lo a n s a n d d is c o u n t s — n e t ......... in c o m e o n re a l e s t a te o t h e r t h a n b a n k b u il d in g — n e t .................. I n c o m e o n re a l e s t a t e o t h e r t h a n b a n k b u i l d in g — g r o s s ......... L e s s : O p e r a t in g e x p e n s e .............................................................................. In c o m e o n o t h e r a s s e t s ..................................................................................... I n c o m e f r o m s e r v ic e o p e r a t i o n s ................... .................................... 38,367 M a r y la n d FEDERAL C u rre n t operating incom e—to ta l.......................................................... A ll S ta te s a n d o th e r a re a s N o n -re c u rrin g in c o m e , re a liz e d p r o fits and re coveries c re d ite d to p r o fit and loss, and tra n s fe r s fro m v a lu a tio n a d ju s tm e n t p ro vis io n s — t o t a l.............................................................................................. N on-recu rring in c o m e .................................................................................. Realized p ro fits and recoveries on: S ecurities sold or m a tu re d ..................................................................... Real esta te m o rtga ge lo a n s ............... O ther real e s ta te ...................................................................................... All oth er a s s e ts .......................................................................................... T ransfers fro m valua tio n a d ju s tm e n t provisions on: S e c u ritie s ..................................................................................................... Real estate m ortgage lo a n s .................................................................. O ther real e s ta te ...................................................................................... All oth er a s s e ts .......................................................................................... 8,696 1,386 20,377 1,175 89 47,292 705 2,059 1,114 5,235 83 181 173 1,180 18 27 7,774 13,435 64 716 1,452 193 66 94,744 2,973 57 983 28 37 634 30 6 204 81 1 149 52 2,455 39 "3 4 4 49 2,549 204 1,515 12 16 173 201 428 8,851 423 1,985 535 3,248 12,458 1,290 3 253 114 217 219 63,624 4,891 1,850 1,932 4,341 891 53 664 97 1,124 37 52 43 245 18 2,777 93 25 81 978 7 62 107 5,229 3,796 127 837 1,102 122 214 96 238 189 45 4 128 36 ii5 N et a d d itio n s to to ta l s u rp lu s acco unts fro m o p e ra tio n s .................. 96,164 18,417 187 3,323 4,920 -3,138 5,025 2,172 4,040 204 1,016 N um b er of banks, D ecem ber 3 0 ............................................................................... 333 1 403 2,726 231 5 89 50 1 66 85 70 30 856 32 213 19 30 BANKS M e m o ra n d a Recoveries c re d ite d to v a lu a tio n a d ju s tm e n t provisions (n o t included in recoveries ab ove) on: S e c u ritie s ......................................................................................................... Real esta te m ortgage lo a n s ...................................................................... O ther real e s ta te ........................................................................................... All oth er a s s e ts .............................................................................................. Realized losses charged to valua tio n ad ju s tm e n t provisions (not included in realized losses above) on: S e c u ritie s ......................................................................................................... Real estate m ortgage lo a n s ..................................................................... O ther real e s ta te ........................................................................................... All oth er a s s e ts .............................................................................................. 62 326 1,892 OF INSURED N o n -re c u rrin g expenses, re a lize d losses charged to p r o fit and loss, and tra n s fe rs to v a lu a tio n a d ju s tm e n t p ro visio n s— to t a l........... N on-recu rring e x p e n s e s .............................................................................. Realized losses on: S ecurities s o ld ............................................................................................ Real esta te m o rtga ge lo a n s ................................................................... O ther real e s ta te ....................................................................................... All o th e r a s s e ts .......................................................................................... T ransfe rs to valu a tio n a d ju s tm e n t provisions on: S e c u ritie s ..................................................................................................... Real esta te m o rtgage lo a n s ................................................................... O ther real e s ta te ...................................................................................... All oth er a s s e ts .......................................................................................... INCOME 93,536 214 Table 122. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES, BY STATE, 1967— CONTINUED (A m o unts in tho usan ds o f dollars) In co m e item New York P ennsyl vania W iscon sin Other S tates or areas 1 51,883 2,426 6,907 39,667 41,318 1,649 12,453 896 224 10,396 10,485 89 48,335 2,915 5,051 39,280 39,551 271 1,794 189 126 1,360 1,379 19 50,121 1,827 7,974 38,537 39,695 1,148 786 4 5 466 16 16 49 817 -7 1,124 1,063 2,430 -55 87 142 40 468 90 57 224 383 6 19 271 702 216,196 30,739 66,908 23,516 2,895 7,831 8,485 1,778 2,058 1,883 516 441 6,772 1,425 2,148 415 112 7,758 1,414 2,071 1,918 403 22,043 2,978 2,170 60 904 130 126 58 714 70 19 9 547 2,103 27,745 2,101 885 145 602 54 809 2,244 141 793 963 4,129 35,936 8,191 11,697 7,970 46,116 4,360 2,259 1,091 1,079 6,289 1,197 312 320 304 2,106 191 46 77 75 445 860 258 266 56 1,345 2 11 21 94 1,229 420 303 254 2,259 Net cu rren t operating in co m e ......................................................................... 105,971 1,729,913 152,460 43,398 10,570 41,563 1,379 42,363 Fra n ch ise and incom e taxes—to ta l................................................................ S tate fra n c h is e and incom e taxes Federal incom e ta x e s ....................... ................................. 621 471 431 40 1,585 1,541 44 113 1 112 703 2 703 2 171 621 24,468 23,196 1 272 Net cu rren t operating incom e after t a x e s .................................................. 105,350 1,705,445 151,989 41,813 10,457 40,860 1,377 42,192 D ividends and interest on d e p o sits............................................................... 98,948 1,666,840 140,135 38,387 9,514 36,690 1,230 39,424 Net cu rren t operating incom e after taxes and d iv id e n d s.................... 6,402 38,605 11,854 3,426 943 4,161 147 2,768 C u rre n t operating incom e—to ta l.................................................................. In te re s t on U. S. G ove rnm ent o b lig a tio n s ............................................. In te re s t and d iv id e n d s on o th e r s e c u ritie s ........................................... In te re s t and d is c o u n t on real esta te m ortgage loans— n e t.............. In te re s t and d is c o u n t on real estate m ortgage loans— g ross....... Less: M ortgage servicing fe e s .............................................................. P rem iu m a m o rtiz a tio n ............. . ... In te re s t and d is c o u n t on o th e r loans and d is c o u n ts — n e t............... Inco m e on real esta te o th e r th a n bank b u ild in g — net. Inco m e on real esta te o th e r th a n ba nk b u ild in g — gross Less: O pe rating e x p e n s e .......................................................................... Inco m e on o th e r a s s e ts ................................................................................ Inco m e fro m service o p e ra tio n s ................................................................. 125,069 10,294 15,444 96,268 98,588 1,830 490 916 -17 21 6 8 2 2 1 202 10 12 64 95 101 122 49 CORPORATION 19,098 3,263 5,526 W ash ington INSURANCE C u rre n t operating ex p en ses—to ta l................................................................ S alaries— o ffic e rs ............................................................................................. S alaries and w ages— o th e r e m p lo y e e s ..................................................... Pension, h o s p ita liz a tio n and group in su ra n ce paym ents, and o th e r em ployee b e n e fits .......................................................................... Fees paid to tru s te e s and c o m m itte e m e m b e rs ................................... O ccupancy, m a in tena nce, etc. o f bank prem ises (including taxes and re curring de p re cia tio n )— n e t............................................................ Occupancy, m a in tena nce, etc. o f bank prem ises (including taxes and re curring d e p re cia tio n )— g ro s s .................................................... Less: Incom e fro m bank b u ild in g .......................................................... D eposit insurance a s s e s s m e n ts ................................................................. F urniture and fix tu re s (in c lu 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 x p e n s e s ........................................................ V erm ont DEPOSIT 175,976 8,884 32,737 130,722 137,555 6,797 36 1,440 38 235 1,929 1,946,109 67,413 179,960 1,616,020 1,663,382 46,394 968 39,713 -184 407 591 19,331 23,856 Rhode Island FEDERAL New Jersey N on-recurring incom e, realized profits and recoveries credited to profit and loss, and tra n sfe rs from valuation adjustm ent pro vision s—to tal.................................................................................................. N on-recu rring in c o m e ................................................................................... Realized p ro fits and recoveries on: S ecurities sold or m a tu re d ....................................................................... Real estate m ortgage lo a n s .................................................................... O ther real e s ta te .................................................................................... All o th e r a s s e ts ........................................................................................ T ransfers fro m valua tio n a d ju s tm e n t provisions on: S e c u ritie s ................................................................................................... Real estate m ortgage lo a n s ..................................................................... O ther real e s ta te ........................................................................................ All o th e r a s s e ts ............................................................................................ N u m b e r o f ba nks, D ecem ber 30.................................................................... 107 44 1,067 456 2 526 74 1,574 47 34,488 290 1,734 318 786 1,130 48 5,390 10,219 58 119 569 1,533 395 68,096 9,442 5,835 136 1,092 175 72 27 241 153 41 3 900 31 776 44 7 35 47,643 3,708 1,046 878 5,129 30 47 266 4 551 82 19 16 3 4 41 15 3 37 151 27 1 23 50 226 2,613 2,571 16 179 463 1 28 4 25 500 159 14 2 7,553 38,092 7,808 5,749 993 1 222 12 88 64 1 31 8 4 177 6 1 23 78 3,906 1 21 125 2,102 1 6 1 2 15 3 11 41 5 134 1 1 8 4,174 126 2,935 2,382 3 258 i 5 112 1 873 7 7 200 50 12 10 1 28 6 5 16 4 11 3 9 215 1 Other States or areas include Alaska, Delaware, Minnesota, Ohio, Oregon, Puerto Rico, and Virgin Islands. 83 7 20 3,415 BANKS Memoranda Recoveries cre dited to valua tio n a d ju s tm e n t provisions (n ot included in recoveries above) on: S e c u ritie s ........................................................................................................... Real esta te m ortgage lo a n s ........................................................................ O ther real e s ta te ............................................................................................. All oth e r a s s e ts . . . . ................................................................................ Realized losses charged to valua tio n a d ju s tm e n t provisions (not included in realized losses above) on: S e c u ritie s ........................................................................................................... Real estate m ortgage lo a n s .................................................. .................... O ther real e s ta te ............................................................................................. All o th e r a s s e ts ................................................................................................ 254 55 1,789 239 OF INSURED Net additions to total su rp lu s accounts from operations..................... 25 67,583 14,947 INCOME Non-recurring exp en ses, realized losses charged to profit and loss, and tra n sfers to valuation adjustm ent provisions—total............. N on-recu rring e x p e n s e s ............................................................................... Realized losses on: S ecurities s o ld .............................................................................................. Real estate m ortgage lo a n s ..................................................................... O ther real e s ta te ......................................................................................... All oth e r a s s e ts ............................................................................................ T ransfe rs to valua tio n a d ju s tm e n t provisions on: S e c u ritie s ....................................................................................................... Real estate m ortgage lo a n s ..................................................................... O ther real e s ta te ......................................................................................... All oth er a s s e ts . . . ............................................................................... 122 2,684 911 BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES; DEPOSIT INSURANCE DISBURSEMENTS Table 123. Number and deposits of banks closed because of financial difficulties, 1934-1967 Table 124. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1967 Table 125. Depositors, deposits, and disbursements in insured banks requiring disburse ments by the Federal Deposit Insurance Corporation, 1934-1967 Banks grouped by class of bank, year of deposit payoff or deposit assump tion, amount of deposits, and State Table 126. Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements for protection of depositors, 1934-1967 BANKS No noninsured bank failed in 1967. For detailed data regarding noninsured banks which suspended in the years 1934-1962, see the Annual Report for 1963, pp. 27-41. For 1963-1966, see Table 123 of this Report, and previous Reports for respective years. Sources of data INSURANCE DISBURSEMENTS 217 Insured banks: books of bank at date of closing; and books of FDIC, December 31, 1967. DEPOSIT Noninsured bank failures 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. AND CLOSED Deposit insurance disbursements Table 123. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1967 D eposits (in th o u s a n d s o f do llars) Insured Year N on in s u re d T otal Total Insu red With d isb u rse m ents by FD IC 3 Total N on insured 1 Total 475 467 908,029 61,973 846,056 52 9 9 25 69 74 73 60 43 14 37,332 13,987 28,100 34,141 60.444 160,211 142,787 18,805 19,541 12,525 1,915 5,695 494 7,207 10,674 9,217 5,555 6,464 3,313 45,101 2,948 11,953 11,689 12,502 10,413 2,593 7,965 10,611 4,231 23.444 23,867 45,256 106,171 10,878 35,364 583 592 528 1,038 2,439 358 79 355 1,968 13,404 27,508 33,613 59,406 157,772 142,429 18,726 19,186 12,525 1,915 5,695 347 7,040 10,674 6,665 5,513 3,408 3,170 44,711 998 11,953 11,329 11,247 8,240 2,593 6,930 8,936 3,011 23,444 23,438 43,861 103,523 10,878 2 1 2 6 3 9 5 5 4 5 4 5 3 3 9 3 2 9 3 2 6 3 7 7 12 5 2 3 26 69 76 73 60 43 14 20 5 2 1 1 5 3 5 4 2 3 4 20 5 2 1 1 5 3 4 4 2 3 2 2 2 5 5 4 3 4 3 5 5 2 2 1 1 2 7 5 7 4 2 1 1 147 167 2,552 42 3,056 143 390 1,950 360 1,255 2,173 1,035 1,675 1,220 429 1,395 2,648 41,147 804,909 85 328 1,190 26,449 10,084 1,968 13,319 27,508 33,285 59,406 157,772 142,429 18,726 19,186 12,525 1,915 5,695 347 7,040 10,674 5,475 5,513 3,408 3,170 18,262 998 11,953 11,329 1,163 8,240 2,593 6,930 8,936 3,011 23,444 23,438 43,861 103,523 10,878 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, page 179 of the report for 1965, and page 183 of the 1966 report. One noninsured bank placed in receivership in 1934, with no deposits at tim e 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. Deposits are adjusted as of December 31, 1967, and exclude deposits for three cases requiring disbursements by the Corporation; 1 bank in voluntary liquidation in 1937 (payoff case no. 9 0); 1 noninsured bank in 1938 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). CORPORATION 131 61 32 72 83 80 72 48 16 23 5 W ith d is b u rs e m e nts by F D IC 3 INSURANCE 606 W ith o u t d is b u rs e m e n ts by FDIC 2 DEPOSIT 1934.. 1935.. 1936.. 1 937.. 1938.. 1939.. 1940.. 1941.. 1942.. 1943.. 1944.. 1945.. 1946.. 1 947.. 1948.. 1949.. 1 950.. 1951.. 1 9 5 2 ... 1953.. 1954.. 1955.. 1956.. 1957.. 1958.. 1959.. 1960.. 1961.. 1 962.. 1 963.. 1964.. 1965.. 1 966.. 1967.. W ith o u t disb u rse m e nts by FDIC 2 FEDERAL Total 1 218 N um ber First p a ym e n t to d e positors or d is b u rs e m e n t by FDIC D ate o f closing B ank o f Pine A pple, Pine A pple, A labam a SM 1,265 Jan uary 31, 1967 281 S outhern B ank o f St. P etersburg, St. P etersburg, Florida NM 1,277 February 17,1967 February 21, 1967 282 Sacul S tate B ank, Sacul, Texas NM 617 283 The C edar Vale N ational Bank, Cedar Vale, K ansas N Receiver or liq u id a tin g ag ent D is b u rs e m e n t 2 D eposit Pa2y8°0ff 1,570 Cash and due fro m banks U. S. Gov e rn m e n t o b lig a tio n s O ther secu ritie s 6 , 1967 Jun e 23, 1967 June 30, 1967 Ju ly 7, 1967 Ju ly 13, 1967 1 Loans, discou nts, and o ve rdra fts $2,304,479 Federal D eposit Insu ran ce C orporation 1,902,958 Federal D eposit Insu ran ce C orporation 582,953 Federal D eposit In su ra n ce C orporation 3,073,810 Federal D eposit In su ra n ce C orporation L iab ilitie s and cap ita l acco unts B anking house, fu rn itu re & fixtu re s O ther real esta te O ther assets 1 Total D eposits O ther lia b ilitie s C apital stock Other capital a cco unts pT o ,f 365,709 987,920 281 183,577 1,368,467 37,491 2,878,325 1 19,741 4,289,187 3,884,599 150.000 254,588 912,626 414,675 4,380 2,883,725 2,451,411 500.000 -67,686 282 141,455 113,622 30,000 462,813 5,416 283 560,282 580,812 6,000 2,849,111 37,200 23,126 8,665 761,971 723,985 25.000 12,986 1,720 4,058,251 3,818,263 50.000 189,988 DISBURSEMENTS D epo sit INSURANCE A ssets Case num ber February DEPOSIT N um ber o f d e p o s ito rs ' AND Class o f bank N am e an d location CLOSED Case num ber BANKS Table 124. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1967 1 Figures as determined by FDIC agents after adjustment of books of the bank immediately following its closing. 2 Includes disbursements made to December 31, 1967, plus additional disbursements estimated to be required in these cases. 219 Table 125. DEPOSITORS, DEPOSITS, AN D DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1967 B A N K S G R O U PE D BY CLASS OF BA NK , YEAR OF DEPOSIT PAYOFF OR DEPOSIT A SSU M PT IO N , AM O UN T OF D E PO SIT S, AND STATE C la ssific a tio n A s su m p tion Total T otal Pc aa ys oe ffs ca ses D isb u r se m e n ts b y FDIC’ (in th o u s a n d s o f d o lla rs) Principal d isb u r se m e n ts A de xv pa ne nc es se sa n2 d mp A ssu m p P a y o ff A ssu P a y o ff n tion Total c a s e s s u m p P a y o ff A ssu m p c a s e s ctio a ses c a s e s Total P a y o ff A s tion c a s e s 3 c a s e s 4 c a s e s 5 c ation ses 6 85 25 360 30 9 241 55 16 119 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 7 4 9 24 42 50 50 32 19 8 6 4 1 Banks with deposits of— 107 109 61 72 52 41 16 6 5 1 83 86 37 35 17 14 4 3 1 L e ss th a n $100,000.................. $100,000 to $250,000................. $250,000 to $500,000................. $500,000 to $1,000,000............. $1,000,000 to $2,000,000 $2,000,000 to $5,000,000 $5,000,000 to $10,000,000. . . . $10,000,000 to $25,000,000.. . $25,000,000 to $50,000,000.. . $50,000,000 to $100,000,000. . 4 1 1 3 3 1 5 2 7 3 1 4 1 27 25 24 28 24 7 14 1 1 1 1 5 3 4 4 2 3 2 2 1 1 1 2 6 24 23 24 37 35 27 12 3 4 1 332,675 84,215 3/3,810 88,204 926,112 329,579 248,460 184,000 80,597 285,606 194,421 33,303 596,533 437,823 132,097 15,767 44,655 89,018 130,387 203,961 392,718 256,361 73,005 60,688 27,371 5,487 12,483 1,383 10,637 18,540 5,671 6,366 5,276 6,752 24,469 1,811 17,790 15,197 2,338 9,587 3,073 11,171 8,301 36,430 19,934 15,817 95,424 4,729 15,767 32,331 43,225 74,148 44,288 90,169 20,667 38,594 5,717 16,917 899 1,968 12,234 13,319 45,793 27,508 56,239 33,349 159,673 59,684 302,549 157,772 235,694 142,429 34,411 29,718 54,971 19,186 10,454 12,525 4,588 1,915 5,695 12,483 1,383 347 10,637 7,040 18,540 10,674 5,671 5,475 6,366 5,513 5,276 3,408 6,752 3,170 24,469 18,262 1,811 998 9,710 11,953 9,732 11,329 1,163 8,240 5,207 2,593 6,930 8,936 23,444 23,438 1,454 43,861 94,412 103,528 10,878 38,347 83,370 91,218 161,923 211,161 257,640 222,948 198,137 284,809 83,044 29,695 65,512 57,287 74,870 66,768 73,531 32,665 89,189 12,481 8,080 5,465 2,338 4,380 3,073 11,171 8,301 36,430 19,934 14,363 1,012 4,729 8,652 17,858 33,391 87,053 144,393 184,109 190,283 108,948 272,328 83,044 6,418 17,759 21,881 55,972 74,044 128,929 105,189 113,498 199,594 92,960 1,968 9,091 11,241 14,960 10,296 32,738 5,657 14,730 1,816 6,637 456 6,503 4,702 1,163 4,156 2,593 6,930 8,936 23,444 23,438 42,889 774 10,878 4,947 13,920 12,921 27,935 22,210 46,744 27,715 49,429 40,176 103,403 78,716 161,119 105,888 305,726 192,239 38,407 25,617 99,931 941 8,891 14,781 19,161 30,479 67,770 74,134 23,880 10,825 7,172 1,503 1,768 265 1,724 2,990 2,552 3,986 1,885 1,369 5,017 913 6,784 3,333 1,031 3,026 1,835 4,765 6,200 19,242 13,770 11,506 15,075 8,272 941 6,026 8,056 12,045 9,092 26,196 4,895 12,278 1,612 5,500 404 4,229 16,267 18,389 49,388 125,034 136,773 14,987 17,369 5,888 1,459 5,695 347 7,040 10,674 5,475 5,513 3,408 3,170 18,262 998 5,450 6,628 4,084 972 102,749 1,471 3,839 8,961 28,037 51,834 82,185 77,474 64,068 159,418 92,960 5,000 12,906 14,993 36,675 41,103 69,111 44,112 59,514 83,427 10,000 4,438 2,795 1,031 2,796 1,835 4,765 6,200 19,242 13,770 11,033 735 8,272 4,309 11,554 10,550 20,957 17,085 32,454 17,828 39,444 9,774 212,888 3,005 48,126 40,309 80,271 92,308 820 196 1,989 6,395 19,273 22,458 272 934 905 4,902 17,603 17,237 1,479 1,076 72 37 96 11 365 200 166 524 127 195 428 145 665 51 31 2,865 6,725 7,116 21,387 41,574 69,239 11,602 9,213 1,672 1,099 1,768 265 1,724 2,990 2,552 3,986 1,885 1,369 5,017 913 2,346 538 230 473 14,340 691 1,352 4,443 15,718 24,018 36,657 26,284 20,070 73,653 10,000 43 108 67 103 93 162 89 50 38 53 9 106 87 20 38 51 82 154 274 570 486 188 134 88 209 163 383 353 479 434 309 422 108 495 154 173 611 2,288 3,545 5,733 5,491 5,404 24,723 82 CORPORATION N ation al b a n k s ......................... 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 . Year 7 1934 . . 1935.................................................... 1936.................................................... 1937.................................................... 1938.................................................... 1939.................................................... 1940.................................................... 1941.................................................... 1942.................................................... 1943.................................................... 1944.................................................... 1945 ........................ 1946 ................................. 1947 ................... 1948 ............................. 1949 1950 ............................ 1951 ...................................... 1952 ................... 1953 ............................ 1954 . . 1955.................................................... 1956.................................................... 1957 ........................ 1958.................................................... 1959 . . I960 ........................ 1961 1963 ........................ 1964 1965.................................................... 1966.................................................... 1967 570,248 376,843 163,955 INSURANCE 190 1,632,597 501,998 1,130,599 816,244 245,996 DEPOSIT 280 Class of bank FEDERAL 470 All banks............................... 220 D e p o sits 1 N u m b er o f d e p o sito r s ' (in th o u s a n d s o f dollars^ N u m b er o f b a n k s S ta te A la b a m a ............ A r k a n s a s ........... C a lifo r n ia ........... C o lo ra d o ............ C o n n e c tic u t. . . . 4 7 4 3 ? 4 Io w a ..................... K a n s a s ................. K e n tu c k y ............ L o u is ia n a ............ M a in e ................... 23 3 O re g o n ................. P e n n s y lv a n ia . . . S o u th C a ro lin a .. S o u th D a k o ta . . . T e n n e s s e e ......... 10 2 5 3 4 5 3 49 5 36 3 6 1 39 26 7 29 4 11 2 29 2 23 12 32 3 9 W is c o n s in ........... W y o m in g ............. 31 1 3 1 3 2 2 8 1 8 1 22 8 18 26 2 4 3 20 3 2 6 13 2 1 27 23 5 11 2 3 1 21 1 1 4 6 1 5 1 11 1 5,991 9,410 2,451 79,721 30,006 1,725 8,797 2,451 41,802 12,549 4,266 613 5,908 1,959 1,894 50,765 13,593 16,055 6,715 36,139 6,087 9,710 4,066 3,824 18,490 6,087 22,567 9,046 115,863 2,650 1,651 6,643 2,084 2,650 1,651 29,478 849 6,069 37,919 17,457 11,989 2,891 17,649 9,401 5,052 9,710 1,652 5,450 8,888 15,924 9,046 113,779 .4,566 3,019 107,727 818 334 11,799 651 11,107 1,095 8,145 296 194,630 3,985 1,942 46,220 2,262 1,526 2,668 1,870 1,894 25,081 3,932 4,383 4,357 3 953 1,652 828 1,394 818 334 7,240 215 8,145 2,185 596 1,078 725 1,089 4,335 13,881 1,410 1,242 94 4,191 13,020 938 1,242 995 144 861 472 46 40 517 39 91 48 138 61 3,240 89 2,145 1,551 1,493 20,484 3,096 1,314 69 7,982 3,101 45 33 29 303 39 151 33 25,684 9,662 3,459 1,620 1,493 28,466 6,197 791 384 5,018 694 4,934 3,875 4,093 5,455 2,804 3,601 3,329 1,071 492 2,126 46 33 44 201 5,450 2,346 3,738 3,019 106,332 3,109 1,564 17,461 640 257 3,867 880 7,678 639 5,008 117 82,125 668 41,277 1,500 6,069 1,780 522,563 103,797 1,780 418,766 33,128 296 161,502 269,621 10,408 14,103 13,751 25,070 28,440 3,677 6,760 7,585 20,149 241,181 6,731 7,343 6,166 4,921 145,439 3,266 3,830 7,223 13,765 13,286 1,421 1,552 2,345 11,053 132,153 1,845 2,278 4,877 2,712 67,872 2,387 2,656 2,098 9,247 3,439 166,894 1,848 12,515 12,358 1,230 43,828 403 11,412 9,993 2,209 123,066 1,445 1,103 2,365 2,670 75,756 849 2,987 1,942 1,368 14,340 136 2,862 1,620 1,302 61,416 714 126 322 42,784 11,057 35,715 4,179 8,346 35,848 8,687 12,638 6,936 2,370 23,077 4,179 25,108 3,725 17,778 1,538 2,006 19,185 3,375 7,652 26,898 3,212 18,739 8,159 3,212 9,512 2,033 5,966 8,346 668 735 1,311 640 257 6,011 186 5,008 2,346 2,374 1,564 16,150 1,667 453 8 10 9 206 17 5 99 6 46 113 72 665 371 1,030 760 233 21 8 26,468 117 55,657 161 20,154 10,836 1,156 1,397 1,610 7,936 57,036 1,231 1,259 488 1,311 32 23 24 7 178 10,847 179 203 44 104 1,948 51,292 274 2,411 1,278 986 10,133 136 2,388 1,164 962 41,159 138 23 114 5,922 350 10,127 1,538 15,637 3,445 8,285 935 1,458 13,241 3,259 3,889 2,396 186 4,396 935 446 292 286 505 512 3,545 2,033 7,188 5,096 2,092 54 2,006 202 1,458 202 11 75 81 9,524 26 28 9 25 21 11 10 22 423 19 221 1Adjusted to December 31, 1967. In assumption cases, number of depositors refers to number of deposit accounts. 2 Excludes $344 thousand of non-recoverable insurance expenses in cases which were resolved without payment of claims or a disbursement to facilitate assumption of deposits by another insured bank, and other expenses of field liquidation employees not chargeable to liquidation activities. in c lu d e s estimated additional disbursements in active cases. 4 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation. 5These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses. * Includes advances to protect assets and liquidation expenses of $47,725 thousand, all of which have been fully recovered by the Corporation, and$399thousand of non-recoverable expenses. 7 No case in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years. Note: Due to rounding differences, components may not add to totals. DISBURSEMENTS T e x a s .................... V e r m o n t ............... V ir g in ia ................. W a s h in g to n W e s t V irg in ia . . . 6 12 1 6,170 2,538 47,298 2,987 1,526 INSURANCE N ew Y o r k ............. 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 ........... 5 ? 3 4 5 7,111 905 3,169; 712 DEPOSIT M is s o u r i............... M o n t a n a .............. N e b ra s k a ............ N ew H a m p s h ire N ew J e r s e y ......... 1 4 6 18 3 5 2,059 4,541 17,890 1,382 5,379 AND M a r y 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......... 7 10 15 2 2 12 9,170 5,446 21,059 2,094 5,379 CLOSED 10 ? 20 20 2 1 1 1 BANKS F lo r id a ................ G e o rg ia ............... Id a h o ................... I llin o is ................... I n d ia n a ............... 2 6 3 2 2 2 8 2 8 Table 126. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1934-1967 ( A m o u n t s in t h o u s a n d s o f d o ll a r s ) T o ta l. 194 194 194 194 194 4 5 6 2 3 7 8 376,841 309,028 17,983 49,829 280 163,954 121,794 11,635 30,525 190 212,887 187,237 6,346 19,304 36 434 121,125, 255,716 79,482 229,546 17,983 23,659 26,170 21 60,188 103,765 33,319 88,472 11,635 15,232 15,293 15 175 60,937 151,951 46,163 141,074 6,347 259 8,427 10,877 9 25 69 75 74 941 8,891 14,781 19,161 30,479 734 6,196 12,325 15,610 28,055 207 2 689 2,455 3,549 2,425 9 24 42 50 50 941 6,026 8,056 12,045 9,092 734 4,274 6,595 9,520 7,908 207 1,751 1,460 2,524 1,184 2,865 6,725 7,116 21,387 1,922 5,730 6,090 20,147 60 43 15 20 5 67,770 74,134 23,880 10,825 7,172 60,618 70,246 23,290 10,136 7,048 7,153 3,767 591 688 123 32 19 26,196 4,895 12,278 1,612 5,500 20,399 4,313 12,065 1,320 5,376 5,798 582 213 292 123 41,574 69,239 11,602 9,213 1,672 40,219 65,933 11,225 8,816 1,672 2 1,503 1,768 265 1,724 2,990 1,462 1,768 265 1,634 2,349 404 363 40 1,099 1,768 265 1,724 2,990 1,099 1,768 255 1,634 2,349 2,552 3,986 1,885 1,369 5,017 2,183 2,601 1,792 577 5,017 91 2,552 3,986 1,885 1,369 5,017 2,183 2,601 1,792 577 5,017 913 6,784 3,333 1,031 3,026 654 6,554 3,038 1,031 2,998 55 913 2,346 538 654 2,346 538 230 230 1,738 4,765 4,652 15,775 10,129 41 1,522 1,441 1,508 1.945 2,197 657 2,741 389 3,664 6,213 4,812 473 14,340 300 2,130 3,070 1 1 5 3 194 195 195 195 195 9 0 1 4 4 2 3 3 2 195 195 195 195 195 4 5 6 2 2 8 4 195 196 196 196 196 9 0 1 3 4 3 7 1,835 4,765 6,200 19,242 13,767 196 5 196 6 196 7 5 7 4 11,506 15,075 8,272 7 2 5 1 1 5 2 120 40 8 6 4 72 641 369 1,385 3 792 258 230 240 7,185 6,121 4,438 2.795 1,031 2.796 4,208 2,500 1,031 2,768 1,835 4,765 19,242 13,767 1,738 4,765 4,652 15,775 10,129 41 1,522 1,441 1,508 1,945 2,197 11,033 735 8,272 357 611 389 3,661 104 4,812 3,070 6,200 55 230 240 7,015 20 1 Includes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fu lly recovered. 2 Includes estimated additional disbursements in active cases. 3 Excludes excess collections turned over to banks as additional purchase 4 No case in 1962 required disbursements. http://fraser.stlouisfed.org/ Note: Due to rounding differences, components may not add to totals. Federal Reserve Bank of St. Louis price at termination of liquidation. 938 995 1,025 1,241 120 19 91 1,355 3,185 378 396 72 641 369 1,385 3 792 258 3 6,109 170 6,101 CORPORATION 470 INSURANCE 9 0 1 Re c o v e r ie s E s t im a te d t o D e c . a d d it io n a l L o s s e s 1 31, 1967 r e c o v e r ie s DEPOSIT 193 194 194 194 194 D e p o s it a s s u m p t io n c a s e s R e N u m P r in c ip a l c o v e r ie s E s t im a te d N u m P r in c ip a l L o s s e s 1 b e r o f d is b u r s e t o D e c . a d d it io n a l L o s s e s 1 b e r o f d is b u r s e m e n t s 2 31, 1967 banks m e n ts 3 r e c o v e r ie s banks FEDERAL S ta tu s A c tiv e ........ T e rm in a te d Y e a r4 193 4 193 5 193 6 193 7 193 8 D e p o s it p a y o f f c a s e s 222 L iq u id a t io n A ll c a s e s s ta tu s a n d year o f de R e p o s it p a y o f f N u m P r in c ip a l c o v e r ie s E s t im a t e d b e r o f d is b u r s e t o D e c . a d d it io n a l o r d e p o s it a s s u m p t io n b a n k s m e n ts r e c o v e r ie s 31, 1967 INDEX 225 INDEX Absorptions: Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties. Of operating banks, 1967 .................................................................. 23-24, 156 Of operating banks approved by FDIC, 1967 ....................................24, 41-84 Regulation o f ............................................................................ 23, 106-110, 111 Admission of banks to insurance (see also Applications from banks): Applications for, 1967 .................................................................................. 22 Number of banks admitted, by class of bank, 1967 .............................. 157 Advertising of Participation in FDIC Insurance. See Federal Deposit Insur ance Corporation Applications from banks ..........................................22-25, 100-101, 105-109, 111 Areas outside continental United States, banks and branches located in: Earnings, expenses, profits, and dividends, 1967 ..............................198-199 Number, December 30, 1967 ..............................................159, 160, 167-168 Assessments for deposit insurance..........................................35-38, 109, 112-114 Assets, liabilities, and capital of banks (see also Deposits): All banks, June 30, and December 30, 1967 ........................................172-175 Commercial banks, June 30, and December 30, 1967 ....................... 172-175 Insured commercial banks: Amount, December call dates, 1963-1967 ....................................176-179 Amount, December 30, 1967, by class of b a n k ............................ 180 Amount, December 30, 1967, by deposit size of b a n k ................. 181 Distribution of banks with given ratios of selected items to total assets, by size of bank, December 30, 1967 ............... 184-185 Insured mutual savings banks: Amount, and percentage distributions, December call dates, 1963-1967 .................................................................................... 176-179 Major categories, average, 1959-1967 ............................................ 209 Mutual savings banks: Banks grouped by insurance status, June 30, and December 30, 1967 ........................................................................................ 172-173 Sources of data .............................................................................. 171, 187 Assets and liabilities of FD IC ................................................................................ 34-35 Assets purchased by FDIC from banks in financial difficulties ....19-21, 35, 222 Assumption of deposits of insured banks with financial aid of FDIC (see also Banks in financial d iffic u ltie s )......................... 20-21, 217, 219-222 Attorney General of the United States, summary reports on absorptions..... 43-84 Audit of FDIC ........................................................................................................... Bad-debt reserves. See Valuation reserves. Bank Supervision. See Supervision of banks; Examination of insured banks. 40 226 FEDERAL DEPOSIT INSURANCE CORPORATION Banking data, classification of: Assets and liabilities of b a n k s .................................................................... Deposit insurance disbursements............................................................... 171 217 Income of insured b a n ks.............................................................................. 187 Number of banks and branches ............................................................ 154-155 Number of Banks and D eposits.................................................................. 169 Banking offices, number of. See Number of banks and branches. Banks, applications from, acted on by FDIC ................................................. 22-24 Banks in financial difficulties: Insured banks requiring disbursements by FDIC: Assets and Liabilities o f ...................................................................... Deposit size o f ...................................................................................... 219 219 Deposits protected, 1934-1967 ..............................19-21, 218, 220-221 Disbursements by FDIC, 1934-1967 ............................. 19-21, 217-222 Loans made and assets purchased by FD IC .................................... 21 Location by State, 1934-1967 ............................................................ 221 Losses incurred by F D IC ............................................................ 20-21, 222 Losses incurred by depositors .......................................................... 20 Name and location of, 1 9 6 7 ............................................................ 19, 219 Number of, 1934-1967 ..................................................19, 218, 220-221 Number of deposit accounts, 1934-1967 ......................................220-221 Recoveries by FDIC on assets acquired, 1934-1967 ................. 21, 222 Noninsured banks: Number and deposits of commercial banks closed, 1934-1967.. 218 Suspensions, 1967 .................................................................... 156, 217 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. Branches (see also Number of banks and branches): Establishment approved by FDIC, 1967 .................................................... 23 Examination of, 1966 and 1967 ................................................................ 25 Increase, branches of all banks, 1967 ....................................15-16, 157-159 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; Examination of insured banks. Cease-and-desist authority ...................................................................... 26, 127-128 Certificates of deposit (see also D e p o sits).................................................... 10, 136 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: Absorptions .......................................................................................... 23-24, 156 INDEX 227 Admissions to and terminations of insurance......................................156*157 Assets and liabilities of insured commercial banks ...... ....................... 180 Income of insured commercial banks, 1967 ........................................162-163 Insured banks requiring disbursements by FDIC, 1934-1967 ............... 220 Number of banks and banking offices, 1967 ..................... 156-157, 160-168 Number of banks and d e p o s its .................................................................. 169 Classification of b a n k s ...................................................................................... 154-155 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 of the Currency ................... IV, V, 22, 25, 33, 97, 103, 171, 187 Conferences with supervisors of State b a n k s .................................................... 28-29 Consolidations. See Absorptions. Control of banks, changes in .............................................................................. 27 Credit, bank. See also Assets, liabilities, and capital of b a n k s ..................... 7-8 Demand deposits. See Assets, liabilities, and capital of banks; Deposits. Deposit insurance coverage ........................................................20-22, 31, 133-137 Deposits, insured by FDIC: Definition of deposit insurance coverage..............................................133-137 Estimated insured deposits, December 31, 1934-1967 ......................... 39 Increase in maximum per d e p o s ito r..................................................2.1-22, 31 Deposits of: (See also Assets, liabilities, and capital of banks): All banks: By insurance status and type of bank, and type of account, December 30, 1967 ........................................................................ 175 By insurance status and type of bank, and type of account, June 30, 1967 ................................................................................ 173 Banks closed because of financial difficulties, 1934-1967 ............... 217-221 Insured banks, December call dates, 1934-1967 ............................... 39 Insured commercial banks: Average demand and time desposits, 1959-1967 ....................... 189 By class of bank, December 30, 1967 ............................................ 180 By deposit size of bank, December 30, 1967 .............................. 181 December call dates, 1963-1967 .................................................... 178 Insured mutual savings banks: Average demand and time deposits, 1959-1967 .......................... 209 December call dates, 1963-1967 .................................................... 178 Sources of data concerning ...................................................................... 171 Deposits, number of insured commercial banks with given ratios of demand to total deposits .............................................................................. 185 Directors of FDIC. See Federal Deposit Insurance Corporation. Disbursements, See Banks in financial difficulties. Districts, FDIC, Realignment of ........................................................................ 25-26 228 FEDERAL DEPOSIT INSURANCE CORPORATION Dividends: To depositors in insured mutual savings banks ....... 208, 210, 212, 214 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 and banking developments in 1967 ................................................ 3-9 Employees: FDIC .............................................................................................. 33-34, 140-142 Insured commercial banks: Number and compensation, 1959-1967 ......................................188-189 Number and compensation, by class of bank, by size of bank, and by State, 1967 ........................................................ 193, 195, 199 Insured mutual savings banks, number and compensation ............................................................................. 208-212, 214 Examination of insured banks: Banks examined by FDIC, 1967 ................................................................ 25 District offices and supervising examiners ........................................VI, 25-26 Expenses of banks. See Income of insured commercial banks; Income of insured mutual savings banks. Expenses of FDIC ...................................................................................................36-37 Failures. See Banks in financial difficulties. Federal bank supervision ........................................................................ 22-30, 93-99 Federal Deposit Insurance Corporation (FDIC): Actions on applications ................................................................................ 22-24 Advertising of membership by insured banks ............................31, 130-133 Assessments on insured banks ................................................................ 35-38 Assets ...............................................................................................................34-35 Audit ............................................................................................................... 40 Banks examined by, and submitting reports to ......................................22-28 Borrowing power .......................................................................................... 35 Capital stock ................................................................................................. 35n Cease-and-desist authority .............................................................. 26, 127-128 Coverage of deposit insurance, banks participating ..15, 20, 156, 160-168 Deposit insurance fund (surplus) .............................................................. 35-39 Directors (members of the Board) ............................................................ V, 33 Disbursements for protection of depositors ..........................19-21, 217-222 Districts .....................................................................................................VI, 25-26 Divisions .........................................................................................................IV, 34 Employees .................................................................................... 32-34, 140-143 Examination of banks ................................................................................ VI, 25 Financial statements, 1967 ........................................................................ 35-37 Income and expenses, 1933-1967 ............................................................ 36-38 INDEX 229 Information and records available to the public ............... 101-105, 109-114 Insured banks requiring disbursements by. See Banks in financial difficulties. Liabilities .........................................................................................................34-35 Loans to, and purchase of assets from, insured banks ....... 217, 220-221 Losses incurred, 1934-1967 .................................................................. 21, 222 Methods of protecting depositors .................................................... 19-21, 217 Organization and staff .................................................................... IV-VI, 33-34 Payments to insured de positors........................................................ 19-21, 222 Publications ................................................................................................... 102 Recoveries .............................................................................................20-21, 222 Regulation of interest rates .................................................... 10, 29, 30, 32 Reports from banks .................................................................... 27-28, 109-114 Reserve for losses on assets acquired ...................................................... 35-36 Rules and regulations ................................................................ 30-33, 99-143 Rules of practice and procedures applicable to hearings and proceedings ...........................................................................................115-130 Sources and uses of funds ........................................................................ 37 Standards of conduct for employees ....................................32-33, 140-143 Supervisory a c tiv itie s .....................................................................................22-29 Federal Home Loan Bank Board ............................................................ 29, 31, 99 Federal Reserve authorities ............................................22, 24, 29, 93, 94, 97 Federal Reserve member banks. See Class of bank, banking data presented by. Federal Savings and Loan Insurance Corporation .......................................... 31 Financial Developments— See Economic and Financial Developments, 1967 40 Gambling Activities, Prohibition of Bank Participation in....................... 29, 96-99 General Accounting Office .................................................................................... 40 Income of FDIC ...................................................................................................... 35-39 Income of insured commercial banks: Amounts of principal components: Annually, 1959-1967 .............................................................. 188-189, 191 By class of bank, 1967 .................................................................. 192-193 By size of bank, 1967 .................................................................... 194-195 By State, 1967 ................................................................................ 198-207 Classification of income data .................................................................... 187 Earnings, 1967 ...............................................................................................12-15 Ratios of income items: Annually, 1959-1967 .................................................................................... 190 By size of bank, 1967 .................................................................... 196-197 Sources of data ............................................................................................. 187 Income of insured mutual savings banks: Amounts of principal components, 1959-1967 ......................... 208-209, 211 230 FEDERAL DEPOSIT INSURANCE CORPORATION Ratios of income and expense items, 1959-1967 .................................. Sources of data ............................................................................................ 210 187 Insolvent banks. See Banks in financial difficulties. Insurance status, banks classified by: Assets and liabilities of, June 30 and December 30, 1967 ............. 172-175 Changes in number of, 1967 .................................................................. 156-157 Deposits of, June 30 and December 30, 1967 ..................................173, 175 Number of, December 30, 1967 ............................................................ 156-168 Percentage of banks insured, by State, December 30, 1967 ........... 160-168 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. Interest rates paid by insured banks: Authority to regulate amended ..................................................29, 30, 31, 95 Maximum rates revised ...................................................................... 10, 32, 95 Mutual savings banks in Alaska .............................................................. 32, 99 Survey of, by FD IC .................................................................................... 28, 102 Investments. See Assets, liabilities, and capital of banks; Assets and lia bilities of FDIC; Banks in financial difficulties; Small business invest ment company stock. Legislation relating to deposit insurance and banking: Federal, enacted in 1967 ................................................................ 29*30, 93-99 State, enacted in 1967 ............................................................................ 143-152 Loans. See Assets, liabilities, and capital of banks; Banks in financial difficulties. Loans to bank executive o ffic e rs .................................................................. 29, 93-94 Losses: Of banks. See income of insured commercial banks; Income of in sured mutual savings banks. Of FDIC .................................................................................................19-21, 222 On loans, reserves for. See Valuation reserves. Provision for, in insured banks, 1959-1967 ....................... 188-189, 208-209 Lotteries. See Gambling Activities Mergers. See Absorptions. Methods of tabulating banking data. See Banking data, classification of. Mutual savings banks. See Assets, liabilities, and capital of banks; De posits; Income of insured mutual savings banks; Number of banks and branches. INDEX 231 National banks. See Class of bank, banking data presented by. New banks, 1967 ...............................................................................................156-159 Noninsured banks (see also Absorptions; Admission of banks to insur ance; Assets, liabilities, and capital of banks; Banks in financial diffi culties; Classification of banks; Class of bank, banking data presented by; Deposits; Number of banks and branches; Reports from banks) Number of banks and branches: Banks: By insurance status, type of bank, number of branches, and State, December 30, 1967 ........................................................160-168 156 By insurance status and type of bank, December 30, 1967....... Changes during 1967 ................................................................ 15-16, 156 Branches: By insurance status, type of bank, and State, December 30, 1967 .............................................................................................. 160-168 Changes during 1967 .......................................................................... 157 Commercial banks and branches, December 30, 1966 and 1967, by State ........................................................................................ 158-159 Insured commercial banks: December 30, 1959-1967 ..............................................................189-190 December 30, 1967, by class of bank and deposit size of bank .............................................................................................. 193-194 December 30, 1967, by State....................... 199, 201, 203, 205, 208 Distributed by capital ratios and distribution of assets and deposits, December 30, 1967 ..................................................184-185 Insured mutual savings banks, December 30, 1967 ..... 209, 210, 213, 215 Mutual savings banks, by State, December 30, 1967 ....................... 160-168 Noninsured banks, by State, December 30, 1967 ..............................160-168 Unit banks, by insurance status and State, December 30, 1967 ..... 160-168 Obligations of banks. See Assets, liabilities, and capital of banks; De posits. Officers of insured banks. See Employees. Officials of F D IC .................................................................................................V, 33-34 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; Deposit Insur ance coverage. 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. 232 FEDERAL DEPOSIT INSURANCE CORPORATION Reports from banks .................................................................. 27-28, 109-114, 187 Reserves: Of FDIC, for losses on assets acquired .................................................. 35 Of insured banks for losses on assets. See Valuation reserves. With Federal Reserve Banks. See Assets, liabilities, and capital of banks. Rules and Regulations of the FDIC. See Federal Deposit Insurance Cor poration. Salaries and wages: FDIC ............................................................................................................... 36 Insured banks. See income of insured commercial banks; Income of insured mutual savings banks. Savings and loan associations........... ........................................................ 11, 31, 96 Savings and time deposits. See also Deposits 9-10, 29, 32, 173, 175, 178, 179, 182, 183 Securities. See Assets, liabilities, and capital of banks; Assets and liabili ties of FDIC; Banks in financial difficulties. Securities, registration and reporting of b a n k ................................27, 32, 138-140 Size of bank, data for banks classified by amount of deposits: Assets and liabilities, insured commercial banks, 1967 ................... 181-182 Banks requiring disbursements by FDIC, 1934-1967 ........................... 220 Disbursements for protection of depositors, 1934-1967 ..................... 220 Income data of insured commercial banks, 1967 ................................194-195 Income ratios of insured commercial banks, 1967 ........................... 196-197 Number and deposits of all banks ............................................................ 169 Number of employees of insured commercial banks, 1967 ............... 195 Number of insured commercial banks, 1967 ................................... 195, 197 Number of insured commercial banks, grouped by ratios of selected items to assets and deposits, December 30, 1967 ....................... 184-185 Small business investment company stock, bank purchase of ............. 30, 95-96 Standards of conduct for FDIC employees ........................................................32-33 State, banking data classified by: Disbursements, deposits, and depositors in insured banks requiring disbursements by FDIC, 1934-1967 .................................................... 221 Income of insured commercial banks, 1967 ..................................... 177-198 Number of banks and branches, by class of bank and type of office, December 30, 1967 ............................................................................ 160-168 Percentage of banks insured, December 30, 1967 ........................... 160-168 State banking legislation enacted in 1967 ....................................................143-152 State banks. See Class of bank, banking data presented by. Stockholders of banks, net profits available for. See Income of insured commercial banks. Supervision of banks (see also Examination of insured banks): By FDIC .................................................................................... VI, 22-29, 99-143 INDEX 233 Federal legislation ............................................................................ 29-30, 93-99 State legislation, 1967 ............................................................................ 143-152 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 ..................... 26-27 Time and savings deposits. See also Deposits 9-10, 29, 32, 173, 175, 178, 179, 182, 183 Unit banks, by insurance status and State, December 30, 1967 ............. 160-168 Unsafe and unsound banking practices ............................................26-27, 125-130 Valuation reserves (see also Assets, liabilities, and capital of banks): Amounts held, June 30 and December 30, 1967 ........................... 172, 174 Amounts held, December call dates, 1959-1967 ............. 188-189, 208-209 Violations of law or regulations, banks charged with ......................................26-27